Marcellus Drilling News

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”
Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Regulation | Statewide NY

JLCNY Fact Sheet on “Takings” Lawsuit – We Need More $$
September 5, 2013September 5, 2013

The Joint Landowners Coalition of New York (JLCNY) is ready to sue New York State on behalf of landowners for “takings”–the concept that the state has illegally stopped property owners from using their land and therefore must compensate them for it. The only thing the JLCNY needs now is money–and lots of it–to pay legal and research expenses. Once they have the cash, the lawsuit will go forward.

Dan Fitzsimmons, president of the JLCNY, sent an email yesterday with a “fact sheet” about the lawsuit (see it below). The fact sheet attempts to clear up lingering questions about the lawsuit–its purpose, the way it will go forward, and when it will go forward. Please take time to donate to the JLCNY’s legal fund (MDN is a proud contributor)…
Read More “JLCNY Fact Sheet on “Takings” Lawsuit – We Need More $$”
Lease & Royalty Payments | Pennsylvania | Susquehanna County | Wyoming County (PA)

NARO-PA Hosting Two Meetings in NE PA in September
September 5, 2013September 5, 2013

MDN strongly supports the great work of NARO–the National Association of Royalty Owners. The Pennsylvania chapter of NARO will host two meetings for landowners in northeastern PA over the next several weeks. The first meeting will be held in Montrose (Susquehanna County) on Sept. 10. The second meeting will be held in Laceyville (Wyoming County) on Sept. 18.

The details:
Read More “NARO-PA Hosting Two Meetings in NE PA in September”
Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Sep 5, 2013
September 5, 2013September 5, 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, Sep 5, 2013”
Crime | Industrywide Issues | Mahoning County | Ohio

Youngstown, OH Illegal Wastewater Dumping Happened “At Least” 24X
September 4, 2013

A long, sad chapter is about to close on the case of wastewater dumping in the Youngstown, OH area last year and earlier this year. MDN previously told you about Ben Lupo, the owner of Hardrock Excavating and its sister company D&L Energy, who instructed a one of his Hardrock employees to dump shale drilling wastewater into a storm drain (under cover of darkness) that eventually ended up in the Mahoning River. Early on it was thought there were something like six instances of illegal dumping (see Youngstown Business Dumped >200K Gal of Untreated Wastewater).

Under oath, the employee who did the illegal dumping, Michael Guesman, admitted it was “at least” 24 times. Ouch…
Read More “Youngstown, OH Illegal Wastewater Dumping Happened “At Least” 24X”
Energy Companies | Energy Services | Ethane | Industrywide Issues | Pipelines | Range Resources Corp | Sunoco Logistics

Sunoco Says Mariner West Opening Soon, but Range Already Using??
September 4, 2013September 4, 2013

Although not publicly announced by Sunoco Logistics Partners, MDN told you back at the end of July that we spotted an admission from Range Resources that the first batch of ethane had been piped from the Marcellus Shale in western PA to Sarnia, Ontario (Canada) via the Mariner West pipeline (see Big News: Marcellus Ethane Now Exporting to Canada Cracker Plant). Was Range lying? We don’t think so–but today we noticed a small article published by Bloomberg (known to fudge the truth) that says the Mariner West pipeline will begin service in late September or early October. Huh?…
Read More “Sunoco Says Mariner West Opening Soon, but Range Already Using??”
Economic Impact | Hydraulic Fracturing | Industrywide Issues | Jobs | Research

IHS Research: Every US Household Saves Avg $1,200/Year from Shale
September 4, 2013September 4, 2013

In October 2011, global research company IHS released the first (of three) volumes in a new study titled America’s New Energy Future: The Unconventional Oil and Gas Revolution and the US Economy (see Shale Drilling will Create 3.5M Jobs, $5.1T in Investment). In December 2012, they released the second volume (see New Report: Fracking Creates Jobs in States with No Drilling). Today, September 4, 2013, IHS releases the third and final volume, which deals with the manufacturing renaissance currently under way because of shale gas and oil (see it below).

The surprise finding in this latest research study: Because shale oil and gas have lowered the cost of energy by so much in America, lower costs are passed along to consumers not only in lower utility bills, but also in lower costs for manufactured goods because the cost of manufacturing has decreased (from lower energy bills). All told, the average household in America saved $1,200 per year in 2012–a number that will grow to $2,000 per year by 2015 and $3,500 by 2025. Bottom line: Every single citizen in this country is benefiting–right now–from the shale revolution. This is not “just a few farmers and drillers get rich” phenomenon. We all realize a significant monetary benefit from shale…
Read More “IHS Research: Every US Household Saves Avg $1,200/Year from Shale”
Carrizo Oil & Gas | Energy Companies

Carrizo Dumps “Non-Core” Assets in Barnett, E Texas & Marcellus
September 4, 2013September 4, 2013

Carrizo Oil & Gas, a driller in the Marcellus Shale as well as in other shale plays, announced today it has sold the rest of its remaining Barnett Shale properties (the first shale play for Carrizo’s drilling) as well as selling off other “non-core” assets in East Texas and in the Marcellus itself. Proceeds from the sales: $268 million, which Carrizo plans to use to pay back loans and for more drilling mostly in the Eagle Ford Shale. The Utica Shale is in Carrizo’s sites for 2014.

There’s nothing in today’s statement that indicates Carrizo is abandoning the Marcellus, although their recent 2Q13 financial/operational update indicates they have scaled back a great deal on the Marcellus (see Carrizo Oil & Gas 2Q13: Scaling Back in the Marcellus…for Now). Carrizo’s statement (below) does not indicate where the 2,850 “non-core” acres they’ve just sold in the Marcellus are located…
Read More “Carrizo Dumps “Non-Core” Assets in Barnett, E Texas & Marcellus”
Ohio | Statewide OH | Utica Shale

OH’s Utica Shale Drillers Go South
September 4, 2013September 4, 2013

Ace reporter Bob Downing from the Akron Beacon Journal does a great job in an article published yesterday with reviewing the most recent permit (and drilling) trends in Ohio. What did he find? Most drillers are moving their permits and their drilling rigs to the southern part of the state. Carroll County remains the current champ for Utica Shale drilling with 319 wells permitted (38% of all Utica Shale wells in Ohio). However, at some point in the not-too-distant-future that will change…
Read More “OH’s Utica Shale Drillers Go South”
Energy Services | Heckmann | Industrywide Issues | Litigation

Nuverra Environmental Sued Over Stock Price Tumble
September 4, 2013September 4, 2013

At the end of July, MDN told you (sort of tongue-in-cheek) that Nuverra Environmental Solutions (formerly Heckmann), a company that recycles and otherwise disposes of shale drilling wastewater and leftover rock and dirt from drilling, was blaming “too much success” in the Marcellus/Utica for their poor quarterly earnings report (see Wastewater Company Nuverra: Too Much Success in Marcellus/Utica). Nuverra’s rapidly expanding Marcellus operation led to more outsourcing and less profitability, it seems. It also seems Nuverra now has a much bigger problem than a bustling Marcellus–they’re being sued in a class action by investors.

The class action, filed by very active law firm Robbins Geller, alleges that Nuverra previously “issued materially false and misleading statements regarding the Company’s financial performance and future prospects.” Because of the alleged false statements, Nuverra’s stock traded at artificially inflated prices. What went up (the stock price) has now come down (see the chart below), and investors (or at least the lawyers) are not pleased…
Read More “Nuverra Environmental Sued Over Stock Price Tumble”
Alternative Energy | Industrywide Issues | Mahoning County | Ohio

Poor Biofuels are Feeling Picked-on…Boo Hoo
September 4, 2013September 4, 2013

The biofuel industry is in a pout. So-called biofuels have long been known to be way more expensive than other forms of energy, like fossil fuels. Biofuels also drive up the price of food staples like corn, creating shortages in poor countries like Mexico. Feeling picked-on by others who point out such inconvenient truths, the biofuel industry has just launched a propaganda advertising campaign called “You’re no Dummy” in Youngstown, OH and in other markets across the U.S. It’s an attempt to smear the oil and gas industry which has taken off like a rocket over the past few years because of shale drilling.

The new ad campaign from “advocacy group” Growth Energy is truly rich…
Read More “Poor Biofuels are Feeling Picked-on…Boo Hoo”
About MDN | Calendar

Calendar of Events for Sep 2-15, 2013 [Free]
September 4, 2013September 4, 2013

Below are upcoming events for this week and next.
Read More “Calendar of Events for Sep 2-15, 2013 [Free]”
Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Sep 4, 2013
September 4, 2013September 4, 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, Sep 4, 2013”
Chesapeake Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania | Statewide PA

Chesapeake Settles PA Royalty Lawsuit for Pittance: $7.5M
September 3, 2013September 3, 2013

In July, MDN told you about a class action lawsuit by some Pennsylvania landowners against Chesapeake Energy over the issue of deducting certain costs from post-production when calculating royalties–costs that the landowners say are not listed in the original lease and for which Chessy does not have the right to deduct (see Some PA Landowners Mull Decision to Sue Chesapeake over Royalties). A number of landowners joined the class action lawsuit. The lawyers worked feverishly and both sides have now settled.

Chesapeake will pay $7.5 million to settle the lawsuit, to be share with the lawyers (of course) and then amongst the landowners. Apparently the settlement will benefit “several thousand leaseholders” who have the option to either accept the settlement or continue on their own by filing their own lawsuit…
Read More “Chesapeake Settles PA Royalty Lawsuit for Pittance: $7.5M”
Industrywide Issues | Jobs | New York | Ohio | Pennsylvania | Statewide NY | Statewide OH | Statewide PA | Statewide WV | West Virginia

Marcellus/Utica Industry Looking to Hire More Locals
September 3, 2013September 3, 2013

Do you live in Pennsylvania, Ohio or West Virginia (or perhaps the Southern Tier of sad New York) and want a job working for the growing shale drilling industry? According to The Motley Fool, your chances of landing a job in the Marcellus/Utica industry have never been better. The Fool even has a few suggestions of companies looking to hire…
Read More “Marcellus/Utica Industry Looking to Hire More Locals”