Marcellus Drilling News

Chemung County | Dominion Energy | Energy Services | Industrywide Issues | Millennium Pipeline | New York | Pipelines

Millennium Pipeline Looks to Move More Marcellus Gas with Dominion
September 9, 2013September 9, 2013

The story of the northeast: Too much Marcellus Shale natural gas, not enough pipelines to move it all to market. More pipelines are on the way like the Constitution, but in the meantime, how to move the enormous amount of gas already flowing?

On Friday, the Millennium Pipeline, a major transmission pipeline that traverses New York State from Steuben County in the western part of the state to Rockland County in the southeastern part of the state, announced a binding open season through September 13 on a proposal to ship more Marcellus gas by creating an interconnect between Dominion Transmission’s pipeline and the Millennium at or near Horseheads, NY (close to Elmira)…
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About MDN | Calendar

Calendar of Events for Sep 9-22, 2013 [Free]
September 9, 2013September 9, 2013

Below are upcoming events for this week and next.
Read More “Calendar of Events for Sep 9-22, 2013 [Free]”
Best of the Rest

Marcellus & Utica Shale Story Links: Mon, Sep 9, 2013
September 9, 2013September 9, 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: Mon, Sep 9, 2013”
Chesapeake Energy | Columbiana County | Energy Companies | Lease & Royalty Payments | Ohio | Utica Shale

Is Chesapeake Robbing Graves in OH Village…or Getting Robbed?
September 6, 2013September 6, 2013

We can see the headlines now: Chesapeake Energy is a (Gas) Grave Robber! Wait until the anti-drillers get hold of this story… Chesapeake has struck a deal with the Village of Salineville (Columbiana County), OH to lease and drill under 17 acres at the Woodland Cemetery. The deal stipulates no surface disturbance of any kind (a very good idea).

But who is robbing whom? Listen to the deal the village got: Chesapeake is paying Salineville $44,145 annually for five years, plus 15% royalties. The annual payments add up to $220,725, or if you think of it as a signing bonus stretched over 5 years, it’s $12,984 per acre. Wow!! That’s perhaps the highest per acre signing bonus we’ve heard of in the entire Marcellus or Utica Shale. Kudos to the Salineville board members who ~~suckered~~ negotiated the deal with Chesapeake…
Read More “Is Chesapeake Robbing Graves in OH Village…or Getting Robbed?”
Energy Services | GreenHunter Resources | Industrywide Issues | Regulation | Wastewater

Federal Approval for Barging Frack Wastewater Very Close
September 6, 2013September 6, 2013

Has there been movement at the federal level to approve barge shipments of fracking wastewater? Going by the recent comments of John Jack, vice president of business development and operations for GreenHunter Water, we would say the answer to that question is very much a “yes”. MDN has told you about GreenHunter’s fracking wastewater recycling/barge facilities–now seven of them in the Marcellus/Utica region. The most recent such facility to win approval (and now being built) is in Wheeling, WV (see Wheeling, WV Approves GreenHunter Frack Wastewater Facility).

The holdup on barging frack wastewater down the Ohio River to locations where there are injection wells for permanent disposal has been an alphabet soup of federal government agencies who need to approve it, including the EPA, OMB, DOE, DOT and Coast Guard (see The Long (Federal) Road to Approve GreenHunter’s Barge Terminals). Going by John Jack’s recent comments, the long wait is almost over…
Read More “Federal Approval for Barging Frack Wastewater Very Close”
Boardwalk Pipeline Partners | Energy Services | Industrywide Issues | Pipelines | Regulation | Williams

Bluegrass NGL Pipeline Hits Brick Wall in the Bluegrass State
September 6, 2013September 6, 2013

In a touch of irony, the Bluegrass Pipeline–a proposed new natural gas liquids (NGL) pipeline that will stretch from the Utica/Marcellus region all the way to the Gulf Coast (see Williams, Boardwalk Announce Marcellus-to-Gulf Coast NGL Pipeline)–has hit a brick wall in the Bluegrass State–Kentucky.

Williams and Boardwalk Pipeline, co-owners of the project, maintain that because the Bluegrass Pipeline is an interstate pipeline they can (if need be) invoke eminent domain to force landowners to let them lay the pipeline under their property. Kentucky Energy Secretary Len Peters says not so fast. His team of legal beagles has researched it and they say the Bluegrass Pipeline does not have eminent domain status in the Bluegrass State. We see a legal show-down on the horizon…
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Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Research | York County

PA Researcher: Breakthrough Fracking Technique Reduces Water Need
September 6, 2013September 6, 2013

Paul Krumrine, a PA-based researcher for SiGNa Chemistry, is working on a new technique for extracting shale gas. It appears he’s on the verge of a breakthrough. The new technique has progressed to the point it’s now patented and SiGNa is shopping it around to drillers for field tests. The technique developed by Krumrine uses sodium silicide (SiGNa specializes in uses of sodium silicide) in a chemical reaction to create incredible amounts of pressure and lower the amount of water needed to hydraulically fracture a well. It also dramatically reduces the concentrations of certain materials in flowback water that returns to the surface.

A bit more about this intriguing new innovation:
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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA Auditor General Spreads Rumor of Problems at DEP
September 6, 2013September 6, 2013

Pennsylvania’s Auditor General, Eugene DePasquale, is an anti-drilling Democrat who took office in January 2013. On his very first day on the job he targeted the Marcellus Shale industry and the state Dept. of Environmental Protection (see Newly Elected PA Auditor General Targets DEP First Day on Job). DePasquale wasted no time in issuing a letter to the DEP, telling them he was about to launch a year-long anal exam of the agency and its “protection” of PA’s water resources as relates to shale drilling. Mike Krancer was the Secretary of the DEP at the time and told DePasquale in so many words, “bring it on” (see PA Auditor General Targets State’s Marcellus Drilling Industry).

DePasquale has issued an–update? Guidance? Interim report? Helpful suggestions? Nope. He’s issued innuendo and unspecific rumors against the DEP to the reliably anti-drilling editorial board at the Scranton Times-Tribune. Here’s what he said to a group of sycophantic and unquestioning reporters yesterday–or rather what he didn’t say but insinuated…
Read More “PA Auditor General Spreads Rumor of Problems at DEP”
Hydraulic Fracturing | Industrywide Issues | Michigan | Research | Statewide MI

Univ of Michigan Reports Explore Future of Fracking in MI
September 6, 2013September 6, 2013

The University of Michigan is in the midst of a two-year project called the Hydraulic Fracturing in Michigan Integrated Assessment. The project, which ultimately hopes to help guide policy on shale drilling in the state, is being overseen and under the umbrella of the Graham Sustainability Institute at U-M (a potential red flag if you ask us). The first round of analysis is now done. Yesterday, researchers released seven technical reports–think of them as tutorials or backgrounders or “get the facts established” reports. In our brief scan they look helpful and unbiased (we’ve gathered all the reports together in one document, embedded below so you can read or download it).

The upshot from the reports? Michigan has lots of shale gas, particularly in the Utica-Collingwood shale layer, that may one day be mined. However, Michigan’s shale gas is located deep, and with the current low price of natural gas and the abundance of gas in shallower plays (like the Marcellus), Michigan won’t see significant drilling for a long time, which gives policy makers time to “get it right” when it comes to regulations…
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Industrywide Issues | Pennsylvania | Statewide PA | Taxation

Partisan PA Budget & Policy Center Pushes Extreme Tax on Marcellus
September 6, 2013September 6, 2013

Look at this asinine headline from the Philadelphia Tribune: “Policy Center reports Marcellus Shale not beneficial.” And this equally asinine opening sentence: “Pennsylvania Budget and Policy Center – a nonpartisan policy research that provides analytical data on a host of statewide initiatives – has waded into the controversial Marcellus Shale drilling in the state…” The PA Budget and Policy Center (PBPC) is anything but nonpartisan. It is an extreme leftist, partisan, liberal organization where anything that moves or breathes (and even if it doesn’t move or breathe) needs to be taxed so politicians can use the money for their own walking-around purposes. In keeping with their philosophy, the PBPC’s prescription for Marcellus Shale drilling in PA is to ramp up the tax on it–or it’s no good. No benefit at all for PA residents.

What utter absurdity. Did the PBPC even bother to visit places like Susquehanna County, PA before making such ludicrous pronouncements? We doubt it…
Read More “Partisan PA Budget & Policy Center Pushes Extreme Tax on Marcellus”
Best of the Rest

Marcellus & Utica Shale Story Links: Fri, Sep 6, 2013
September 6, 2013September 6, 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: Fri, Sep 6, 2013”
Accidents | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Susquehanna County | Williams

Williams Evaluating Pipeline “Incident” in Dimock, PA
September 5, 2013

Residents in Dimock Township, PA near Carter Road–an area made infamous by Josh Fox in his Gasland movies–had a bit of a scare last Thursday when they heard a loud noise, like “a 747 jet plane.” As it turns out, it was noise coming from scheduled maintenance of a natural gas pipeline in the area owned and operated by Williams. A Williams spokeswoman says, “The process did not go as it should have.” Oops.

According to some concerned local pro-drilling residents, this is not the first Williams mishap in the area…
Read More “Williams Evaluating Pipeline “Incident” in Dimock, PA”
Broome County | Chesapeake Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | New York | Tioga County (NY)

Chesapeake to Release 12K Acres of NY Leases Next Week
September 5, 2013September 5, 2013

About a month ago, MDN told you that Chesapeake has decided to end their fight with New York landowners over extending their leases (see Chesapeake Energy Throws in the Towel on NY Shale Drilling). Although it’s taken the past month to iron out the paperwork, it seems that Chesapeake (and NY landowners) will finalize and sign an agreement “sometime next week” to release 12,000 acres of leases in Broome and Tioga counties.

Chesapeake walking away from these leases is bittersweet. Sweet because it releases landowners from old leases signed before fracking was even contemplated, allowing them to re-sign a new lease with better terms. Bitter because it indicates Chesapeake is unwilling to put up with Gov. Andrew “Ditherer” Cuomo any longer as he agonizes over whether he will or whether he won’t allow fracking…
Read More “Chesapeake to Release 12K Acres of NY Leases Next Week”
Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Susquehanna County

Cabot Investor Presentation from August: Cool Maps & More
September 5, 2013September 5, 2013

A few weeks back Cabot Oil & Gas released their latest Investor Presentation, prepared for the EnerCom Oil & Gas Conference held in Denver (August 12, 2013). We always enjoy Cabot’s PowerPoint presentations because they’re so informative. This latest presentation doesn’t disappoint.

We’ve embedded the full presentation below. Our favorite slides: Cabot’s Marcellus Summary map on page 12, which overlays a map of Susquehanna County, PA with township boundaries and flags showing not only where their wells are located (by township), but also which ones are producing the most (by color). Very cool. We also like the Interstate Pipeline map on page 18, showing how Cabot gets all that gas–now over 1 billion cubic feet per day–to market…
Read More “Cabot Investor Presentation from August: Cool Maps & More”
Industrywide Issues | Litigation | Preston County | Statewide WV | West Virginia

Landmen & Drillers: 6 Steps to Keep a Lease Out of WV Court
September 5, 2013September 5, 2013

The JDSupra Law News website reports on a West Virginia court case that may have far-reaching consequences for landowners in WV and for landmen and drillers operating in the state. The case is called Barber v. Magnum Land Services, LLC, a recent case filed in Preston County, WV, now transferred to the Northern District. The Barber case, according to JDSupra, has the potential to settle many other outstanding cases along the same lines and is being used as a proxy and precedent for other cases.

The Barber case alleges a landman (from Magnum Land Services) pressured a landowner into signing a lease to allow drilling with the statement that if the landowner did not sign, their land would be drilled under anyway and they would not receive any royalties–a veiled (and inaccurate) reference to “the law of capture” in WV. The landman also did not make the landowner aware of other signed offers, withholding important information about the potential value of the lease. The plaintiffs in Barber are using several legal arguments to nullify the lease. We won’t delve into the technicalities of the case (click below to read about it on the JDSupra website). However, JDSupra’s conclusion offers six steps landmen and drillers should adopt in the way they interact with landowners–steps that will help keep their leases out of court:
Read More “Landmen & Drillers: 6 Steps to Keep a Lease Out of WV Court”
Crime | Industrywide Issues | Ohio County | West Virginia

Transient Pipeline Workers in WV Charged with Murdering Student
September 5, 2013September 5, 2013

Very sad news. Two out-of-state natural gas pipeline workers (and possibly a third still at large) are accused of murdering a Wheeling, WV university student. News reports from Wheeling state that another student who was attacked at the same time and survived said there had been “unpleasantries” exchanged (i.e. arguing) not long before the pair were attacked around 1:45 am in the morning. Diligent work by local investigators made the connection to the out-of-state pipeline workers living in an RV park a few miles from where the attack occurred.

According to local police, this is the first time they’ve had criminal problems with natgas workers. Pittsburgh KDKA’s Andy Sheehan reports on this breaking news…
Read More “Transient Pipeline Workers in WV Charged with Murdering Student”