Marcellus Drilling News

Anti-Drilling/Fossil Fuel | Chautauqua County | Electrical Generation | Industrywide Issues | New York | Regulation | Tompkins County

Anti-Drillers Oppose Converting 2 NY Electric Plants to NatGas
December 10, 2013December 10, 2013

This is the tale of two electrical generating power plants. Both are located in New York State–on opposite sides of the state. One is in Tompkins County (near Ithaca, NY), the other in Chautauqua County (Dunkirk, near Buffalo, NY). Both are powered by coal and both will either need to convert to natural gas or close down.

Something else both have in common: anti-drilling nutters want them closed rather than converted from burning coal to burning natural gas–even though closure means school and property taxes in both areas will go through the roof–higher than the nosebleed rates they already are. In both cases the power plants are the single largest taxpayer in their respective municipalities. Makes no difference to the nutters because most of them don’t live there and could care less. An update for both the Cayuga Power Plant and the Dunkirk Power Plant…
Read More “Anti-Drillers Oppose Converting 2 NY Electric Plants to NatGas”
Hydraulic Fracturing | Industrywide Issues | Research

EIA’s Dec DPR: Marcellus Now Provides 18% of US NatGas
December 10, 2013December 10, 2013

Our new favorite monthly report from the ace analysts at the U.S. Energy Information Administration (EIA) was issued yesterday–the latest and third installment of the Drilling Productivity Report (DPR). We’ve embedded a full copy of the report below for your viewing pleasure (love the charts they use). The monthly DPR provides key information about how quickly wells decline in production–it’s one report you want to keep a close eye on.

In addition to the latest DPR below, we’ve also included screenshots for two tables with the raw numbers EIA uses to generate the reports (tables we wish they would include in the monthly DPR). Below the DPR we’re including a bit of analysis work done by the EIA based on the DPR. The EIA analysts say their research shows the mighty Marcellus, as of this month, is producing 18% of all natural gas produced in the U.S. A single play! Truly astonishing. It shows the incredible importance of the Marcellus to our country’s energy infrastructure…
Read More “EIA’s Dec DPR: Marcellus Now Provides 18% of US NatGas”
Belmont County | Lease & Royalty Payments | Ohio | Utica Shale

Utica Shale Lease May Pull OH Volunteer Fire Dept from Bankruptcy
December 10, 2013December 10, 2013

We’re not sure of the circumstances that led the Neffs (Belmont County), OH Volunteer Fire Department to go more than $1 million in the hole–but that’s where they are. The miracle that may lift them out of bankruptcy and put them back on firm financial footing is the Utica Shale. Specifically, the opportunity to lease fire department-owned land for Utica Shale drilling.

The interesting (to MDN) aspect of this story is the very generous terms Neffs VFD is getting for the lease of 56.4 acres…
Read More “Utica Shale Lease May Pull OH Volunteer Fire Dept from Bankruptcy”
CONSOL Energy | Dominion Energy | Energy Companies | Energy Services | Industrywide Issues | NGLs | Pipelines | Statewide WV | West Virginia

CONSOL/Dominion Acreage Deal Includes Pipeline Contract Too
December 10, 2013December 10, 2013

MDN brought you today’s CONSOL press announcement that they have closed a deal with Dominion Resources to take over 90,000 acres of Marcellus and Upper Devonian Shale leases for $190 million (see separate story today). Not mentioned in the CONSOL announcement is the deal also includes CONSOL using Dominion to pipeline their West Virginia production to market. Dominion reports in addition to the deal with CONSOL they’ve signed agreements with several other companies too, and will deliver WV production to pipelines in Ohio.

Here’s the “complimentary/competing” press announcement issued today from Dominion. Their side of the story, if you will…
Read More “CONSOL/Dominion Acreage Deal Includes Pipeline Contract Too”
Barbour County | CONSOL Energy | Energy Companies | Lease & Royalty Payments | Pennsylvania | Statewide WV | Washington County | West Virginia

CONSOL Buys 90K WV Marcellus/Upper Devonian Acres, Well Report
December 10, 2013December 10, 2013

CONSOL Energy issued a press release today updating their Marcellus Shale well results from wells drilled in Washington County, PA. In addition to PA, CONSOL owns leases for and is actively drilling in the West Virginia Marcellus area–most of it in the “wet gas” (natural gas liquids) area of the Marcellus. The update says they just completed their first pad in Barbour County, WV, a pad with six wells on it.

The big news in today’s announcement: CONSOL has just purchased another 90,000 acres of leases in WV–from Dominion Resources–for $190 million ($2,111 per acre). The deal will allow CONSOL to not only drill in the Marcellus layer, but also the Upper Devonian shale layer as well. CONSOL is one of the few drillers (so far) targeting the Upper Denonian (see MDN’s Upper Devonian category for stories about who else is targeting that layer)…
Read More “CONSOL Buys 90K WV Marcellus/Upper Devonian Acres, Well Report”
Energy Companies | Greene County (PA) | Pennsylvania | Rice Energy

Alpha Natural Resources Sells 50% Marcellus Stake to Rice Energy
December 10, 2013December 10, 2013

Alpha Natural Resources, a coal company, formed a 50/50 joint venture with Rice Energy in 2010 to drill Marcellus Shale gas wells in Greene County, PA. Yesterday Alpha announced they’re bailing out and selling their 50% stake to Rice Energy for $300 million. The terms are Alpha gets $100 million in cold, hard cash now, and stock in Rice Energy once Rice goes public.

Yesterday’s announcement with the details:
Read More “Alpha Natural Resources Sells 50% Marcellus Stake to Rice Energy”
Industrywide Issues | Ohio | Statewide OH | Taxation | Utica Shale

OH Repubs Offer Excuses Why This Time High Utica Taxes are OK
December 10, 2013December 10, 2013

Speaker of the Ohio House William G. Batchelder (Republican-Medina), Speaker Pro Tempore Matt Huffman (Republican-Lima), and other members of the Ohio House Republican Caucus offered their pathetic excuses on why this time it’s a-OK to steal money from Ohio landowners and drilling companies and give it to other residents of Ohio–in the form of an income tax break. Apparently there’s lack of spine to do the right thing and reduce spending in Ohio (although that particular disease is not endemic to Ohio).

Here’s the Republican so-called leadership’s bland, generic ~~excuses~~ statement about why it’s OK to raise taxes on drilling this time:
Read More “OH Repubs Offer Excuses Why This Time High Utica Taxes are OK”
Belmont County | Energy Companies | Lease & Royalty Payments | Ohio | Rice Energy | Utica Shale

Belmont County, OH Waiting for $3M Lease Check from Rice Energy
December 10, 2013December 10, 2013

In early October MDN told you Rice Energy had cut a deal with Belmont County to pay the county a $7,500 per acre signing bonus, more than the $5,900 per acre it promised to private landowners in the area (see Rice Pays Belmont County Higher Signing Bonus than Landowners). The lower per acre no doubt rankled some landowners–but many of them already have their money. So far, the county does not.

When will Belmont County get its $3 million check from Rice Energy? Because they really need it…
Read More “Belmont County, OH Waiting for $3M Lease Check from Rice Energy”
Boardwalk Pipeline Partners | Energy Services | Industrywide Issues | NGLs | Pipelines | Williams

Open Season for Bluegrass NGL Pipeline Extended Extra 30 Days
December 10, 2013December 10, 2013

In October MDN told you the proposed Bluegrass Pipeline, a natural gas liquids (NGL) pipeline that will be built from the Marcellus/Utica to the Gulf Coast, was far enough along that joint venture partners in building the Bluegrass Williams and Boardwalk Pipeline launched an open season to lock in drillers who want to ship their NGLs out of the northeast (see Bluegrass Pipeline Launches Open Season, on Track for 2015 Launch). The open season was due to end next week, Dec. 16.

Late yesterday Williams/Boardwalk extended the open season another month, to Jan. 17, 2014. They say the extension is at the request of shippers who need more time to decide. Is that just blowing smoke? For real? How would you read the tea leaves? Here’s the announcement:
Read More “Open Season for Bluegrass NGL Pipeline Extended Extra 30 Days”
Energy Services | Industrywide Issues | Pennsylvania | Philadelphia Energy Solutions | Processing Plants | Statewide PA

Owner of Former Sunoco Refinery Speaks on Marcellus, Future
December 10, 2013December 10, 2013

The new owner of the former Sunoco refinery in South Philadelphia says purchasing the refinery did not start out as a rescue operation (saving 850 jobs), but it did end up being one. Philip Rinaldi, CEO of Philadelphia Energy Solutions, was the guest of honor at a United Steelworkers Local 10-1 banquet last Saturday. His comments reveal him to be plain spoken and not without a surprise or two. Rinaldi fancies himself an old-style industrialist–he likes businesses that make things, saying you can’t have a society that only flips hamburgers.

Rinaldi also said the Marcellus will play a key part in his future plans. Here’s the interesting Q&A with Philip Rinaldi, his comments about why he chose the Philly refinery and about what the future may hold:
Read More “Owner of Former Sunoco Refinery Speaks on Marcellus, Future”
Best of the Rest

Marcellus & Utica Shale Story Links: Tue, Dec 10, 2013
December 10, 2013December 10, 2013

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading:
Read More “Marcellus & Utica Shale Story Links: Tue, Dec 10, 2013”
Anti-Drilling/Fossil Fuel | Crestwood Midstream | Energy Services | Industrywide Issues | Inergy | New York | Schuyler County

Inergy: Boycott NY Businesses that Support ‘Gas Free Seneca’
December 9, 2013December 9, 2013

It’s interesting to MDN that when anti-fracking protesters call for boycotts of businesses that either support or (gasp) are part of the shale drilling industry, such a boycott is considered brave and courageous and a-OK. But when someone on the pro-drilling side suggests those who support fracking and the natural gas industry may want to boycott the businesses donating money and time to fight the natural gas industry, that’s “bullying” and mean and evil. Anyone else smell a hypocritical rat? We’re referring to a recent brouhaha over Inergy Midstream’s (now part of Crestwood Midstream) plan to develop a liquid propane storage facility using depleted salt caverns along the edge of Seneca Lake near Watkins Glen, NY. MDN has long covered the fight by Inergy to bring the only new storage facility proposed in the northeast (badly needed), and the people who want to stop it (see NY Protesters Arrested for Blocking NatGas Storage Facility).

In June, a VP for Inergy sent an email to 25 people suggesting they may want to boycott the businesses using their time and money to actively oppose the Inergy facility. Those businesses are part of the “Business Coalition” of the organization called Gas Free Seneca (GFS). The email sent by the Inergy VP–now six months old but but just coming to light–has GFS in a tizzy. GFS has responded with their own email that they are “extremely disturbed” by this “bullying” from Inergy. That is, GFS doesn’t like the shoe being on the other foot for a change (poor babies). We have the story of the email, and the list of the (current) 181 NY businesses that Inergy (and you) may want to consider boycotting…
Read More “Inergy: Boycott NY Businesses that Support ‘Gas Free Seneca’”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Statewide PA

PA Media Continues to Henpeck Corbett Admin on Warming Mythology
December 9, 2013December 9, 2013

The reliably anti-drilling StateImpact Pennsylvania (left-leaning NPR affiliate) continues to henpeck PA Gov. Tom Corbett’s administration over the fantasy of “global warming.” They’re trying to fabricate an issue out of the fact that some on the Corbett team don’t believe in global warming as strongly as they do. Some in the Corbett administration have the temerity (we’d say the guts) to challenge the notion that Planet Earth is about to fry to a crisp because of the carbon-producing activities of humans. The whole notion is so silly it’s beyond belief, but saying so out loud will earn you the badge of being a quack–a badge that MDN proudly wears.

StateImpact PA tried to tar & feather Acting Secretary of the Dept. of Environmental Protection Chris Abruzzo last week (see PA DEP Sec. Abruzzo Grilled by PA Senate on Global Warming). StateImpact PA thought they might as well do a 2-for-1 drive-by reporting special, so they also went after Corbett energy adviser Patrick Henderson. Here’s how that went…
Read More “PA Media Continues to Henpeck Corbett Admin on Warming Mythology”
Economic Impact | Ethane | Industrywide Issues | Jobs | Ohio | Processing Plants | Statewide OH | Statewide WV | West Virginia | Wood County

More Details Leak About Proposed WV Ethane Cracker Plant
December 9, 2013December 9, 2013

A few weeks ago WV and Brazilian-based Odebrecht announced plans to build an ethane cracker plant near Parkersburg, WV (see WV Announces Brazilian Company to Build Ethane Cracker Complex). Wayne Dunn, the president of the commission that governs Wood County, WV where the cracker would be built, recently said some very interesting things about the cracker. One comment: he’s known about the Odebrecht cracker for more two years! Congratulations to a politician that can keep a secret that long.

Dunn also said he pegs the chances that the Odebrecht cracker will be built at somewhere between 60-80%. He says it’s far from a done deal, but the odds are better that it will be built than not. Here’s a few more interesting “insider” insights into the proposed cracker plant coming to Parkersburg, WV:
Read More “More Details Leak About Proposed WV Ethane Cracker Plant”
Accidents | Delaware County | Energy Services | Industrywide Issues | Millennium Pipeline | New York | Pipelines

Minor Incident in with Millennium Pipeline NY Compressor Station
December 9, 2013December 9, 2013

The Millennium Pipeline was supposed to have completed a new compressor station near Hancock (Delaware County), NY in November. They’re getting close to being done, but not quite there yet. The new 15,900 horsepower compressor facility will add an additional 107.5 million cubic feet per day of capacity to the Millennium Pipeline, allowing them to pump more Marcellus Shale gas to the Algonquin Gas Transmission interconnect at Ramapo, NY.

Whether it was part of normal work to get the facility ready or there was a “problem” with bringing the compressor online, last Thursday Millennium personnel knocked on the door of the only residence living close to the facility and requested the family either stay inside for the next several hours, or immediately evacuate for a few hours while Millennium vented natural gas from the facility. The family (wisely) decided to evacuate for several hours…
Read More “Minor Incident in with Millennium Pipeline NY Compressor Station”
Energy Services | Industrywide Issues | Ion GX Technology | Pennsylvania | Seismic Testing | Westmoreland County

Thumper Trucks Coming to Murrysville – Make a (Very) Few Bucks?
December 9, 2013December 9, 2013

It’s certainly not a lot of money, but landowners in the Murrysville (Westmoreland County), PA area may have the opportunity to pick up some pocket change. One method used in seismic testing–finding out what’s down there–is to use “thumper trucks” that pound the ground, sending sound waves into the earth that are recorded with special equipment which allows geologists to draw maps of underground rock structures.

ION Geophysical Corporation of Houston, TX is sending thumper trucks to the Murrysville area in February, and landowners who are selected and agree to allow the trucks access on their land can get a one-time payment of $5 per acre. Depending on how much land you own, it will at least buy a few cups of coffee at Starbucks…
Read More “Thumper Trucks Coming to Murrysville – Make a (Very) Few Bucks?”