Marcellus Drilling News

Economic Impact | Ethane | Industrywide Issues | Processing Plants | Statewide WV | West Virginia

I’m Hooked on an (Ethane) Feeling, High on (Cracker) Believing
October 16, 2013October 16, 2013

Will the northeast ever get an ethane cracker plant to handle the massive amount of ethane being produced in wet gas areas of western PA, eastern OH and the panhandle of WV? Some people think so (MDN among them), although each year that goes by without a cracker it seems less likely because of new ethane and NGL pipelines being built to haul ethane out of the northeast. Still, people “in the know” say they have a feeling. Kind of reminds us of the old BJ Thomas song, “Hooked on a Feeling.”

Yesterday at the Wheeling (WV) Economic Outlook Conference, Don Rigby, executive director of the Wheeling-based Regional Economic Development Partnership, was the latest “in the know” person to say he’s hooked a cracker feeling…
Read More “I’m Hooked on an (Ethane) Feeling, High on (Cracker) Believing”
Blue Racer Midstream | CNX Resources | CONSOL Energy | Energy Companies | Energy Services | Industrywide Issues | Noble County | Ohio | Pipelines

CONSOL’s Excellent Q3 Results, New Deal with Blue Racer Midstream
October 16, 2013October 16, 2013

CONSOL Energy issued an extensive operations update yesterday, for the quarter ending Sept. 30. The company says they sold more natural gas (and coal) than they had expected to during the quarter. They also said they have just signed an agreement with Blue Racer Midstream to ramp up infrastructure buildout for CONSOL’s drilling in Ohio’s wet gas area–specifically in Noble County, OH.

During 3Q13 CONSOL drilled 15 horizontal wells–12 of them targeting the Marcellus Shale, 3 of them in the Utica Shale. Here’s everything you ever wanted to know about CONSOL’s northeast drilling for 3Q13…
Read More “CONSOL’s Excellent Q3 Results, New Deal with Blue Racer Midstream”
Butler County | Crime | Industrywide Issues | Lease & Royalty Payments | Pennsylvania | Washington County

2nd Landman Pleads Guilty to Single Count in $2.4M Fraud Scheme
October 16, 2013October 16, 2013

A month ago MDN told you that one of two landmen accused of stealing mineral rights from unsuspecting landowners by forging signatures and using fake companies had plead guilty (see PA Landman Pleads Guilty to Defrauding Landowners, Off to Jail). His name is William Ray and he’ll not only do three years in the big house, he’ll also pay back over a half million dollars of what he stole.

At the time, Ray’s partner in crime (and the mastermind behind the scheme), Derek Candelore, plead not guilty. Yesterday Candelore plead guilty to one charge of mail fraud…
Read More “2nd Landman Pleads Guilty to Single Count in $2.4M Fraud Scheme”
Bradford County | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Are Marcellus Drilling Regs Killing Conventional Drilling in PA?
October 16, 2013October 16, 2013

A pair of north central PA Republicans from the Pennsylvania House of Representatives along with “hundreds” of independent oil producers are sending a message to PA politicians and regulators: You can’t use the same broad brush you’re using with unconventional shale drilling to paint the traditional conventional drilling in the state. The independents say that new regulations crafted for Marcellus Shale (deep) drilling should not apply to conventional (shallow) drilling and if this ongoing “unfair” situation continues, it will drive conventional drilling in the state, which has been around for 150 years, out of existence.

Do the independents have a point? Are they an “apple” being regulated by unfair and overly strict “orange” standards? Or to change up the metaphors, is this a case of the buggy whip industry grumbling about those newfangled automobiles?…
Read More “Are Marcellus Drilling Regs Killing Conventional Drilling in PA?”
Energy Services | Industrywide Issues | Pennsylvania | Regulation | TerrAqua Resource Mgmt | Washington County | Wastewater

TerrAqua Gets Conditional Approval for PA Frack Wastewater Plant
October 16, 2013October 16, 2013

MDN has been watching the progress of a proposed new frack wastewater processing facility proposed by TerrAqua for Smith Township (Washington County), PA. A month ago the town held a somewhat bumpy public hearing about the proposed facility (see TerrAqua a Half Step Closer to New Frack Wastewater Facility).

Last night Smith Township supervisors voted to grant a zoning variance to TerrAqua for the plant–contingent on the plant gaining approval from the state Dept. of Environmental Protection and provided TerrAqua agrees to the same terms MAX Environmental follows in that vicinity–terms that limit the number of trucks coming and going and the hours of operation. TerrAqua says they need to study the variance before commenting…
Read More “TerrAqua Gets Conditional Approval for PA Frack Wastewater Plant”
eCORP International | eCORP Stimulation Technologies | Energy Companies | Energy Services | Hydraulic Fracturing | Industrywide Issues

ecorpStim Tries to Interest France in Waterless Fracking Tech
October 16, 2013October 16, 2013

In April, MDN told you about progress with a new waterless method of fracking that uses 100% nonflammable propane fracking fluid. The technique was developed by eCORP Stimulation Technologies, a subsidiary of eCORP International (see Non-Flammable Liquid Propane Used for 100% Waterless Fracking). ecorpStim, as they call themselves, doesn’t seem to have had much luck in finding drillers in the U.S. to use their technology–no doubt because it’s so cheap to use water for fracking.

Sensing there may be an opportunity, ecorpStim recently went on a field trip–to France–to present their technological “break through” to members of the French Parliament. You may recall the French Supreme Court recently upheld a countrywide ban on hydraulic fracturing–at least fracking that uses water (see France’s Fracking Ban ‘Absolute’ After Court Upholds Law). Since water fracking isn’t an option in France, ecorpStim is hoping the French will consider a slightly more expensive, non-water option for fracking…
Read More “ecorpStim Tries to Interest France in Waterless Fracking Tech”
Energy Companies | Halcon Resources | Ohio | Trumbull County | Utica Shale

Halcon’s $70M Oil/Rail Terminal in Lordstown, OH Advances
October 16, 2013October 16, 2013

In July, MDN told you about Halcon Resources’ plan to build a $70 million oil storage and rail-loading terminal in Lordstown, OH (see Halcon Resources Plans $70M Oil Terminal in Lordstown, OH). That project will be one step closer to reality with the completion of a 12,000-foot loop train track at the Ohio Commerce Center in Lordstown (Trumbull County).

An update on the Halcon project…
Read More “Halcon’s $70M Oil/Rail Terminal in Lordstown, OH Advances”
Hydraulic Fracturing | Industrywide Issues | Landfills | Ohio | Soil | Statewide OH

Radioactive Bilge Emanates from ‘Radioactive Waste Alert’ in OH
October 16, 2013October 16, 2013

Unfortunately the old Chinese proverb has come true: We live in interesting times. We live in a day and age when thinking, contemplation and logic are foreign concepts to many people. Instead, we get the pablum of headlines, sound bites and billboards. The latest pristine example of non-thinking comes from a billboard near Columbus, OH that targets a business doing great work for the shale drilling industry by recycling drill cuttings–the leftover dirt and rock from drilling a bore hole.

The billboard (see our Pinterest pics on right) says, “Don’t Frack My Water – Protect Columbus” and is sponsored by “RadioactiveWasteAlert.org” with a picture of a girl drinking what appears to be contaminated water from a bottle with a radioactive symbol on the side. It’s aimed at stopping Ohio Soil Recycling from doing the important work that they do (see OH Company Turns Drill Cuttings into Clean Fill Dirt in 24 Hours). What’s the average Columbus commuter going to think? Hopefully at least some of them won’t fall for this cheap shot–this un-thinking gimmick–from a fringe group of anti-fossil fuel nutters…
Read More “Radioactive Bilge Emanates from ‘Radioactive Waste Alert’ in OH”
Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Oct 16, 2013
October 16, 2013October 16, 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 16, 2013”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Statewide PA

Bobby Vagt Out as Pres of Heinz Endowments – Fracking Connection?
October 15, 2013October 15, 2013

In August MDN told you about a shake-up taking place at the Heinz Endowments with the firing of “longtime head” of environmental grant making for the Heinz Endowments, Caren Glotfelty (see Heinz Endowments Fires Head of Enviro Grants – Change Coming?). The story is an important one because of the role played by the Heinz Endowments in funding anti-fracking causes. Earlier this year, president of the Heinz Endowments, Bobby Vagt, dared to strike up first a conversation, then a pact, with drillers and a few other brave environmental organizations to found the Center for Sustainable Shale Development (see Important: Drillers & Enviros Form New Group, Launch Cert Program). Apparently Vagt’s “sell-out” to the drilling industry was the beginning of the end and the enviro-nut long knives came out for him (see Heinz Endowments President Owns $1.2M in Kinder Morgan Stock).

In what appears to be a move by one of the Endowments’ board members–one of the Heinz boys, Andre–Vagt announced he is “retiring” from his job as president of the Endowments. Looks like the long knives finally found their mark…
Read More “Bobby Vagt Out as Pres of Heinz Endowments – Fracking Connection?”
Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

Can Donald Trump Save Fracking in NY?
October 15, 2013October 15, 2013

While NY Gov. Andrew Cuomo continues to delay his decision about whether to go up against the nutjobs of his own party–to “man up” and allow fracking, or not–he continues to dream about running for president in 2016. But before he can do that, he has to win re-election as governor of NY next year, in 2014. A shoo-in? A fait accompli? Foregone conclusion? Don’t be so sure. There are a LOT of angry landowners in Upstate NY. And now, there’s Donald Trump.

Rumors are circulating that NY state Republicans are teeing up Trump to run against Cuomo next year, and so far, Trump is not saying “no” to the idea. Could it be that Trump will be the savior of fracking in NY?…
Read More “Can Donald Trump Save Fracking in NY?”
Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

Unexpected News in Latest BH Rig Counts – 42% Jump in Rigs in…
October 15, 2013October 15, 2013

From time to time MDN takes a look at the Baker Hughes “rig count”–the number of rotary drilling rigs operating in Pennsylvania, Ohio and West Virginia. The “received wisdom” in the drilling industry that is as goes the rig count, so goes production numbers. Used to be if you saw a decrease in the number of rigs in a given geography, maybe 6-12 months later you would see a corresponding decrease in production from that area. No more. Shale drilling has changed all of that. Nowadays the rig counts go down, and production (in PA anyway), doubles! Why? A lot of wells previously drilled are still waiting to be hooked up to pipelines and begin their production. And shale well production is different from conventional well production. The once simple measurement of more rigs/more production (and the reverse) no longer holds completely true.

Rig counts are still, however, a useful metric to track. And sometimes they reveal something surprising, as MDN found out today in reviewing the latest numbers. Rig counts are an indication of where there is an increase (or decrease) in new drilling activity. Landowners eager to have a well drilled on their property can use rig counts to gauge how quickly (or not) that may happen. Supply chain companies that sell services to drillers are also interested in tracking rig counts. So what, exactly, did MDN find that surprised us? The big surprise is where rig counts have recently spiked–significantly. It’s in a Marcellus/Utica state you may not expect…
Read More “Unexpected News in Latest BH Rig Counts – 42% Jump in Rigs in…”
Energy Services | Enterprise Products Partners | Industrywide Issues | Muskingum County | Ohio | Roads

ATEX Pipeline Ponies Up $572K to Repair Damaged Roads in Muskingum
October 15, 2013October 15, 2013

Under the “ask and ye shall receive” department… Muskingum County was not happy that heavy truck traffic from companies working for Enterprise Products Partners, building the new ATEX Express ethane pipeline through the county, had damaged some of the county’s roadways. So the county asked Enterprise to pony up over $700K to fix the damaged roads.

Enterprise did not pay the amount requested, but they did agree to pay over a half million smakaroos. Not a bad result for just asking…
Read More “ATEX Pipeline Ponies Up $572K to Repair Damaged Roads in Muskingum”
Energy Services | Industrywide Issues | Luzerne County | Lycoming County | Pennsylvania | Pipelines | Statewide PA | Transco | Williams

Williams Takes Next Step with Transco Leidy Pipeline Expansion
October 15, 2013October 15, 2013

Williams is hard at work on expanding their Transco Leidy interstate natural gas pipeline–especially in northeast PA around the Scranton area. The “Transco Leidy Southeast Expansion Project” is a massive $610 million project designed to increase the pipeline’s capacity by 525,000 decatherms per day–enough natural gas to serve 2 million homes. The expansion will pipe Marcellus Shale gas to points from New York City to the southeastern U.S. The project includes construction of approximately 30 miles of additional pipe segments, called loops, in PA and NJ, in addition to modifying some existing compressor stations and valve sites.

The Transco Leidy Southeast Expansion is a multi-year project that Williams hopes will be in service by the end of 2015. They recently took the next step in the project with an official filing with the Federal Energy Regulatory Commission (FERC). An update on the project’s status and what will happen next…
Read More “Williams Takes Next Step with Transco Leidy Pipeline Expansion”
Energy Services | Industrywide Issues | Pipelines | Spectra Energy

Spectra Energy’s Algonquin Pipeline Expansion in CT
October 15, 2013October 15, 2013

Spectra Energy wants to bring more of the northeast’s Marcellus and Utica Shale gas to markets in…the northeast! Now there’s a novel idea. In order to do that, Spectra is looking to spend at least $500 million (MDN’s estimate) to expand the pipeline capacity of their existing Algonquin Gas Transmission system. The project calls for 25.6 miles of various segments of existing mainline relay and loop that includes 1.2 miles of new pipeline to be installed beneath the Hudson River using a horizontal directional drill; construction of approximately 18 miles of lateral pipeline relay, loop and expansion; modifications to existing compressor stations in New York, Connecticut and Rhode Island; construction of three new meter stations; and modifications to existing meter stations. The upgrades and expansion will increase the pipeline’s capacity by up to 433,000 dekatherms per day.

One of the markets Spectra will take the extra gas to is Connecticut. We get an update on Spectra’s Algonquin project in that state from the Connecticut Post…
Read More “Spectra Energy’s Algonquin Pipeline Expansion in CT”
Economic Impact | Industrywide Issues | Processing Plants

Gas-to-Liquids Trend Picks Up Steam in Northeast
October 15, 2013October 15, 2013

An interesting trend to keep an eye on: gas-to-liquids (or GTL). Gas-to-liquids converts natural gas into other hydrocarbon compounds–like diesel fuel and chemicals used in manufacturing. If the economics are right, GTL may well become an important market for an abundance of very cheap natural gas in the Marcellus/Utica region. In fact, MDN has brought you stories about three such facilities that have been announced in the Marcellus/Utica region (see Chemical Manufacturer to Build Gas-to-Liquids Plant in PA; Altoona Area Getting $200M Marcellus Gas-to-Liquids Plant; and Utica Shale Gas-to-Liquids Plant Planned for Ashtabula, OH).

An article by SNL Financial highlights the fact that GTL is not just a northeastern U.S. trend and not just a national trend, but indeed it is an international trend…
Read More “Gas-to-Liquids Trend Picks Up Steam in Northeast”