Marcellus Drilling News

Hydraulic Fracturing | Industrywide Issues | Ohio | Research | Statewide OH | Statewide WV | West Virginia

WVU & OSU Score $2M from NSF for Shale Energy Research
October 31, 2013October 31, 2013

The Marcellus and Utica Shale is not only good for landowners (big bonuses, lucrative royalties), for drillers (can’t drill fast enough, making boatloads of money), and of course the rest of us (all that money ripples throughout local economies and gets reinvested). The Marcellus/Utica is also good for academic types too. West Virginia University and Ohio State University together have just been awarded an eye-popping $2 million grant by the National Science Foundation (NSF) for shale energy research.

Some of that money will go to a researcher MDN previously highlighted back in 2011–Dr. Shikha Sharma, an assistant professor at WVU. At the time Dr. Sharma delivered what was bad news for anti-drillers: methane found in water samples she analyzed was not from shale drilling but is naturally occurring (see WVU Prof: Methane in Water Supplies is Not from Fracking). Dr. Sharma has been awarded $351K from the NSF grant to “probe the chemical and isotopic biomarkers that microorganisms leave behind during their growth and respiration process.” Er, right. A bit beyond our comprehension, but we’re sure it’s valuable research nonetheless! Here’s the announcement from WVU about the grant and what researchers will be doing with the money (if you understand it)…
Read More “WVU & OSU Score $2M from NSF for Shale Energy Research”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Susquehanna County

PA Anti-Driller Claims She was Disrespected at County Meeeting
October 31, 2013October 31, 2013

A few days ago MDN told you about Susquehanna County, PA’s minor anti-fracking celebrity Vera Scoggins (see NE PA Anti-Driller Slapped with Trespassing Injunction). We’ve recounted a number of instances of Vera’s bad behavior. Being slapped with a court order hasn’t slowed her down. Vera showed up at the recent Susquehanna County Commissioner’s meeting to continue her antics.

The following story is self-explanatory. Here’s the real laugh line: Vera says she was disrespected at the meeting! That’s after she refused to stand for the Pledge of Allegiance…
Read More “PA Anti-Driller Claims She was Disrespected at County Meeeting”
Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Oct 31, 2013
October 31, 2013October 31, 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: Thu, Oct 31, 2013”
Energy Companies | Ethane | Exporting | Hydraulic Fracturing | Industrywide Issues | NGLs | Pennsylvania | Pipelines | Processing Plants | Range Resources Corp | Statewide PA | Washington County

Range Resources’ Top 10 Wet Gas Wells, New Company Presentation
October 30, 2013October 30, 2013

Yesterday Range Resources released their financial and operations update for third quarter 2013 (see our companion story from today). Nestled in that update is reference to a new company presentation released yesterday as well, available on the Range website. MDN downloaded it (full copy embedded below) and wow! What a presentation it is. This sucker is loaded with useful charts, maps, bullet points and more. Range has done the industry (and their investors) a great service with this presentation.

Below we will highlight some of our favorite “don’t miss it” slides from the presentation, so you know which ones to zero in on right away. However, the one slide many will want to view first is the list of Range’s Top 10 Liquids Rich (“wet gas”) wells. That slide lists the wells and their locations (hint: they’re all found in a single PA county), initial production levels, production mix (how much oil, NGLs, gas), lateral length, and number of frac stages. With lots of maps and lots of charts, here are some of our favorites, including the Top 10 Wells slide:
Read More “Range Resources’ Top 10 Wet Gas Wells, New Company Presentation”
Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Pipelines | Range Resources Corp | Statewide PA

Range Resources 3Q13: Nearing 1 Bcf/d, Rev Up 29%, Costs Down 12%
October 30, 2013October 30, 2013

Range Resources, the heavyweight Marcellus driller that was the very first company to drill a Marcellus well (back in 2004), continues the flurry of third quarter updates with their own yesterday. Range reports that revenues (or cash flow) were up 29% vs one year ago, costs were down 12% vs one year ago, and the Marcellus was their date to the ball and they’re still dancing with her. They also report record production of 960 million cubic feet per day (Mmcf/d)–getting close the one billion cubic feet per day (Bcf/d) mark.

Range’s most interesting comments (to MDN) are about the Mariner West Project, an ethane pipeline that runs from the Marcellus all the way to Sarnia, Canada. Range is one of the main customers for Mariner West which is due to be “fully operational” in November. However, Range said in early September their first delivery of ethane had already reached Sarnia, which made us scratch our heads (see Sunoco Says Mariner West Opening Soon, but Range Already Using??). After reading Range’s statements below, we now understand that Sunoco Logistics has been testing the new pipeline and it will be fully up to speed sometime in November…
Read More “Range Resources 3Q13: Nearing 1 Bcf/d, Rev Up 29%, Costs Down 12%”
Industrywide Issues | Litigation | Pennsylvania | Regulation | Warren County | Wastewater

Waste Treatment, PA DEP Respond to CWA Lawsuit
October 30, 2013October 30, 2013

Yesterday MDN told you about a wastewater treatment plant in Warren, PA that has been sued by Clean Water Action with claims the plant continues to receive, process and dump frack wastewater into the Allegheny River (see CWA Sues/Accuses Waste Treatment Corp of Continued Shale Pollution). Waste Treatment Corporation’s Warren operation was supposed to have stopped that practice in May 2011. The lawsuit says it’s still happening, based on the results of tests from last year by the state Dept. of Environmental Protection (DEP).

Both Waste Treatment Corp. and the PA DEP have responded with statements addressing the CWA allegations and lawsuit. Waste Treatment says they did stop processing Marcellus Shale wastewater in 2011. The PA DEP says the agency filed its own lawsuit against Waste Treatment in September of this year. Frankly, it’s not at all clear to MDN what the real facts are in this case–yet. After reading the responses, we have more questions than answers…
Read More “Waste Treatment, PA DEP Respond to CWA Lawsuit”
Beck Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Monroe County | Ohio | Utica Shale

Beck Energy Sues OH Attorneys for Lease “Interference”
October 30, 2013October 30, 2013

An interesting court case that landowners in Monroe County, OH with old (30 year-old) non-Utica gas leases will be interested in following. Beck Energy holds many of those old leases (originally signed for an average $50/acre) which allows them to drill vertically into the Clinton sandstone for natural gas. However, the old leases prevent landowners from signing new leases (at much higher signing bonuses) to allow Utica Shale drilling. Apparently some enterprising attorneys have taken up the cause by shopping (i.e. advertising) for plaintiffs and Beck is none to happy about it. Beck has filed a lawsuit against the attorneys and their law firms to stop them from making mischief with “their” leases.

After reading the details of whose done what to whom (below), it seems to MDN no one will come out of this one smelling clean…
Read More “Beck Energy Sues OH Attorneys for Lease “Interference””
Access Midstream Partners | Energy Companies | Energy Services | EnerVest | Harrison County | Industrywide Issues | M3 Midstream | Ohio | Processing Plants | Utica East Ohio Midstream | Utica Shale

Gov. Kasich “Turns the Valves” at Scio Fractionation Plant
October 30, 2013October 30, 2013

MDN told you that Ohio Gov. John Kasich went foreigner-hunting on Monday and was glad to find no “foreigners” (i.e. out-of-state workers) lurking around the Hickory Bend processing plant in Mahoning County that he was visiting for a dedication ceremony (see OH Gov. Kasich Dedicates Hickory Bend Plant, No Foreigners Found). While he was in the general neighborhood, Gov. Kasich also slipped over to Harrison County on Monday to check out the Scio fractionation plant (now being called the Harrison Hub), to see if there were any foreigners hiding there. Nope! A banner day for Gov. Kasich!

The Scio plant, built by the Utica East Ohio Buckeye joint venture (M3 Midstream, Access Midstream and EnerVest) held a “turn the valves” dedication on Monday to take advantage of Kasich being in the area. Phase 2 of the plant went online in July adding an additional 45,000 barrels per day of NGL processing capacity. Phase 3 is now being build and due to go online in early 2014. Highlights from the Kasich visit and more details about the plant from UEO officials…
Read More “Gov. Kasich “Turns the Valves” at Scio Fractionation Plant”
Energy Services | Enterprise Products Partners | Ethane | Industrywide Issues | Pipelines

ATEX Ethane Pipeline to Begin Pumping Dec 2013, Ahead of Schedule
October 30, 2013October 30, 2013

Good news for drillers in the Marcellus and Utica Shale “wet gas” areas. The Appalachia to Texas (or ATEX) Express $1.3 billion ethane pipeline being built by Enterprise Products Partners from the Marcellus and Utica Shale region to the U.S. Gulf Coast, will begin flowing ethane this December, way ahead of schedule.

Speaking at the Platts Appalachian Oil and Gas Conference in Pittsburgh yesterday, an ATEX official said the ATEX is “nearly ready to go”…
Read More “ATEX Ethane Pipeline to Begin Pumping Dec 2013, Ahead of Schedule”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Pipelines | Regulation | Transco

Anti-Drillers Try to Slow New Transco Pipeline Near Princeton, NJ
October 30, 2013October 30, 2013

Several so-called environmental groups, including the odious Food & Water Watch, have filed a notice of intervention with the Federal Energy Regulatory Commission (FERC) in an attempt to stop Transco from building 1.3 miles of new natural gas pipeline near Princeton, NJ.

FERC now has to review the objection and render a decision, a process that will further delay the project, which of course is the intent…
Read More “Anti-Drillers Try to Slow New Transco Pipeline Near Princeton, NJ”
Hydraulic Fracturing | Industrywide Issues | Regulation | Research

Congressional Research Service Issues Updated Report on Fracking
October 30, 2013October 30, 2013

From time to time our brilliant leaders in Washington need an update on a given topic, a “Cliff Notes” summary they can scan to supposedly bring themselves up to date on a given weighty and pressing issue. Where do they turn? To their very own Congressional Research Service, of course. The CRS has been producing reports for, well, as long as there’s been a CRS (predating MDN’s Jim Willis’ time on Capitol Hill in the 1980s). Last week an updated report was issued by the CRS titled “Hydraulic Fracturing: Selected Legal Issues” (full copy embedded below). The previous version of the very same report, R43152, was issued in July (see New Congressional Report: How Federal Laws Govern Fracking).

Since these reports only get created and issued when requested by a member of Congress, we’re guessing someone requested an update. Which makes us nervous because the federal government should have NO role in the regulation of fracking (Constitutionally it belongs to the individual states, not the federal government). We don’t know what may have changed between July and today, but we include the new version of the report below for your reading and scanning pleasure…
Read More “Congressional Research Service Issues Updated Report on Fracking”
Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Oct 30, 2013
October 30, 2013October 31, 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: Wed, Oct 30, 2013”
Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Regulation | Statewide NY

When Will We Know if NY Will See Fracking? June 2014
October 29, 2013

A question MDN is frequently asked… Q: When will the issue of fracking in New York State really and truly be decided–and by whom? A: June 2014, by the NY Court of Appeals. “Not by Gov. Cuomo?” you ask. Nope. He’ll come around, eventually. The real issue has always been whether or not entire towns can ban fracking based on the vote of 3 or 4 people who sit on a town board–a vote that denies every citizen in that town their Constitutional private property rights. Two cases now before the New York Court of Appeals will decide the issue once and for all.

Thanks to the lead attorney for one of those cases–Scott Kurkoski, attorney for the “Middlefield” case–we now have insight into how and when this will all progress from now through June of next year. It started yesterday when briefs were filed by Kurkoski (for Middlefield) and by Albany-area attorney Tom West (for the “Dryden” case) with the Court of Appeals…
Read More “When Will We Know if NY Will See Fracking? June 2014”
CONSOL Energy | Economic Impact | Energy Companies | Industrywide Issues | Pennsylvania | Statewide PA | Statewide WV | West Virginia

CONSOL Sells More Coal Mines, Investing $24B(!) in Shale Drilling
October 29, 2013October 29, 2013

CONSOL Energy continues what seems to be its inevitable transformation from being a coal mining company to being a natural gas drilling company. The federal government (EPA) is killing the coal industry by killing electric power generating plants that run on coal with onerous new “pollution” standards. It is intentional–Obama’s EPA wants to kill coal. CONSOL is feeling the heat–losing more and more customers for their coal. And so CONSOL has announced they’re selling five more of their coal mines located in West Virginia and Pennsylvania and using the money to expand their natural gas drilling operation.

In fact, CONSOL says it plans to invest an eye-popping $24 billion in West Virginia and Pennsylvania natural gas drilling over the next 10 years. By comparison, MDN found in the most recent volume of the Marcellus and Utica Shale Databook that announced midstream infrastructure projects in the northeast add up to a $40 billion investment. CONSOL, a single driller, will spend more than half that amount on new drilling alone! These are truly staggering numbers and very good news for the states involved. Too bad New York (where MDN is located) is seeing NONE of this investment…
Read More “CONSOL Sells More Coal Mines, Investing $24B(!) in Shale Drilling”
Economic Impact | Energy Companies | Energy Services | Hilcorp Energy | Industrywide Issues | Jobs | Mahoning County | NGLs | NiSource | Ohio | Pennant Midstream | Pipelines | Processing Plants | Utica Shale

OH Gov. Kasich Dedicates Hickory Bend Plant, No Foreigners Found
October 29, 2013October 29, 2013

Ohio Gov. John Kasich was on hand yesterday for a ceremonial ribbon cutting for the Hickory Bend cryogenic processing plant in Mahoning County, OH. Pennant Midstream, a joint venture of NiSource and Hilcorp’s Harvest Pipeline subsidiary, dedicated the plant by inviting Kasich and a number of state and local officials. The Hickory Bend processing plant separates natural gas liquids (NGLs or “wet gas”) from methane (or “dry gas”). It has been up and running since summer, however, it won’t begin shipping separated NGLs to the M3 Momentum fractionation plant in Kensington until December. Hickory Bend is also a network of 55 miles of wet gas gathering pipelines in the region.

Gov. Kasich had plenty to say as he dedicated the plant. In typical fashion he was there sniffing out “foreigners” and was happy to pronounce he didn’t find any. (For an example of Kasich’s obsession with “foreigners”–i.e. out of state workers–see OH Gov. Kasich Goes Foreigner-Hunting in Strasburg.) Kasich also dissed Pennsylvania in his comments. A handful of protesters were on hand for the ceremony, bleating about methane migration, but they were far enough away that nobody heard them…
Read More “OH Gov. Kasich Dedicates Hickory Bend Plant, No Foreigners Found”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Regulation | Warren County | Wastewater

CWA Sues/Accuses Waste Treatment Corp of Continued Shale Pollution
October 29, 2013October 29, 2013

Is a municipal waste treatment facility in Warren County, PA (northwestern part of the state) still accepting and treating Marcellus Shale frack wastewater that is polluting the Allegheny River? That is the very serious charge made in a federal lawsuit filed yesterday by the radical anti-drilling organization Clean Water Action (CWA). Waste Treatment Corporation’s facility near Warren was supposed to have stopped receiving frack wastewater from Marcellus Shale drilling in May 2011, after a deal was made with then-Dept. of Environmental Protection Secretary Michael Krancer (see PA DEP, Marcellus Shale Coalition Admit Drilling Wastewater Likely Contaminating Drinking Water). According to CWA, Waste Treatment continues to accept Marcellus frack wastewater, process it and dump it into the Allegheny, thereby polluting it. The Allegheny is the source of drinking water for Pittsburgh and other municipalities.

The CWA also charges that the PA DEP knows about said dumping and is sitting on its hands, attempting to work out a new deal rather than shut the plant down or otherwise pull their permits to get them to stop…
Read More “CWA Sues/Accuses Waste Treatment Corp of Continued Shale Pollution”