Marcellus Drilling News

Allegheny County | Energy Companies | EQT Corp | Forced Pooling | Industrywide Issues | Litigation | Pennsylvania | Statewide PA

Bad News: EQT Sues 70 Landowners Using New PA Forced Pooling Law
August 1, 2013

The recently signed Pennsylvania Royalty Bill SB259 provides extra transparency for landowners in how royalties are calculated, but it also introduces forced pooling for some landowners with old, pre-Marcellus leases (see PA Gov Corbett Signs Back-Door Forced Pooling Bill into Law). As MDN and landowner groups like the National Association of Royalty Owners (NARO) feared, this legislation is now being used against landowners. Earlier this week, EQT Corp. used the new law to sue 70 landowners to force them to allow EQT to get on their land to conduct survey work for future drilling on or under the land. Bye bye negotiations. Bye bye fairness. Hello steamroller.

This lawsuit is bad news for PA landowners and bad news for pro-drilling Gov. Tom Corbett who mouthed platitudes that this type of thing would not happen when he signed it into law…
Read More “Bad News: EQT Sues 70 Landowners Using New PA Forced Pooling Law”
Accidents | Energy Services | Industrywide Issues | MarkWest Energy | Pennsylvania | Processing Plants | Washington County

MarkWest Served Violation Notice for Chartiers Processing Plant
August 1, 2013August 1, 2013

Two weeks ago a MarkWest Energy natural gas processing plant in Chartiers Township (Washington County), PA started belching out black smoke. According to MarkWest, “several events” happened as workers were attempting to bring online some new equipment (see Smoke at MarkWest Chartiers, PA Gas Processing Plant). On Monday, the PA Dept. of Environmental Protection (DEP) slapped MarkWest with a notice of violation.

The DEP continues to investigate whether or not the Chartiers plant is still malfunctioning…
Read More “MarkWest Served Violation Notice for Chartiers Processing Plant”
Energy Companies | Energy Services | Hydraulic Fracturing | Industrywide Issues | Litigation | MarkWest Energy | Pennsylvania | Range Resources Corp | Washington County | Williams

Last Document Released in Hallowich v Range $750K Settlement
August 1, 2013August 7, 2013

It’s been a long struggle for the Pittsburgh Post-Gazette and the Washington (PA) Observer-Reporter, but they finally won–if you can call it a win. Last year, both newspapers sued to have a sealed court case opened. The case involves an off-the-record settlement between the Hallowich family in Washington County, PA and Range Resources, MarkWest Energy and Williams (see Pittsburgh Newspapers Sue to Unseal Drilling Court Case). The Hallowiches claimed nearby drilling and pipeline activity threatened the health of their family–in particular their two children. Range and the other plaintiffs elected to settle, but the case and all of the documents were closed as part of the settlement. So the newspapers sued to have the record opened.

In March of this year, a different judge reviewed the case and ordered the court documents be opened (see Judge Orders Range/Landowner Settlement in PA Made Public). Anti-drillers were disappointed to learn that there were no smoking guns–no admissions or evidence of any kind that drilling activity had polluted water, air, etc. In fact, among the documents was an affidavit signed by the Hallowiches stating that drilling had not caused any adverse health impacts for their family (see Affidavit in Range PA Settlement Shows No Drilling Health Impacts). However, there was one final document not made public by the court and the newspapers kept hounding. Success at last! The final document was released this week (copy embedded below). What does it say?…
Read More “Last Document Released in Hallowich v Range $750K Settlement”
Ohio | Statewide OH | Utica Shale

Latest OH Utica Numbers: 819 Permits, 460 Wells Drilled
August 1, 2013August 1, 2013

The latest numbers of permits and wells drilled in the Ohio Utica Shale, courtesy the Akron Beacon Journal:
Read More “Latest OH Utica Numbers: 819 Permits, 460 Wells Drilled”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues

Witch Hunt: NRDC Goes Looking for Enviro Apostates at EPA
August 1, 2013August 1, 2013

Predictable. MDN told you about a sham story that recently appeared in the Los Angeles Times. The reporter claims to have a PowerPoint slide (which the Times calls a “report”) from the EPA that some people inside the EPA really do think fracking caused water problems in Dimock, PA after all, and the LA Times’ conclusion is that Godfather “big oil & gas” has “gotten” to the EPA and hushed them up (see LA Times Attempts New Hatchet Job on Fracking in Dimock).

Now that the mainstream media has done their job of lighting the fire with a new lie about Dimock, along comes fossil fuel-haters to pile on and accuse the Obama EPA–one of their own!–of being complicit in a nefarious plot to cover up “the truth” about fracking in Dimock–and while they’re at it, not just Dimock, but cover-ups in Wyoming, Texas…even the moon (if the moon had fracking). Prime example A is this missive from the National Resources Defense Council (NRDC):
Read More “Witch Hunt: NRDC Goes Looking for Enviro Apostates at EPA”
Hydraulic Fracturing | Industrywide Issues | Muskingum County | Ohio | Regulation | Utica Shale

Not So Fast: Blue Rock State Forest Fracking on Hold
August 1, 2013August 1, 2013

A few days ago MDN told you that the federal Bureau of Land Management (BLM) had plans to auction off shale drilling rights for Blue Rock State Forest in eastern Ohio (see Surprise! Blue Rock State Forest in Eastern OH to be Fracked). As we pointed out, most federal land auctioned for drilling is located in the western U.S.–this is the first such instance of BLM land being auctioned in the Marcellus/Utica region that we are aware of. The federal government owns the mineral rights in Blue Rock, and the state of Ohio owns the surface rights.

Ohio state officials complained they were not consulted by the BLM about the mineral rights auction or the possibility that the forest will be fracked. So the BLM has (for now) halted their planned auction for later this year…
Read More “Not So Fast: Blue Rock State Forest Fracking on Hold”
Chesapeake Energy | Energy Companies

Chesapeake 2Q13: Dramatic Turnaround from One Year Ago
August 1, 2013August 1, 2013

It appears that the great ship of Chesapeake Energy is, ever so gradually, turning around. We won’t recount how Chesapeake’s founder Aubrey McClendon was unceremoniously dumped by corporate raider Carl Icahn, nor how some of his closest long-time “friends” betrayed him. All water under the bridge now. The news is that Chesapeake released their second quarter update today and the numbers are mostly good–very good. The company’s EBITDA (net income) increased 77% from the same time last year, and operating cash flow was up 53%.

With respect to the Marcellus, Chesapeake says they connected an astonishing 131 wells during 2Q13, more than double the 52 they connected in 2Q12. Dry gas production in the northern part of the Marcellus averaged 780 million cubic feet per day, and wet gas production in the southern Marcellus averaged 208 mmcf/d, for a total of 988 mmcf/d–almost 1 bcf/d! (Cabot and EQT are the first two companies to average more than a billion cubic per day.) Chesapeake reports they have 11 active drilling rigs in the Utica Shale and 5 in the Marcellus.
Read More “Chesapeake 2Q13: Dramatic Turnaround from One Year Ago”
Belmont County | Energy Companies | Harrison County | Hess | Ohio | Statewide OH | Utica Shale

Hess Drills 10 Wells in OH Utica Shale in 2Q13
August 1, 2013August 1, 2013

As part of their 2Q13 update, Hess reports the following details about their Utica Shale drilling program in Ohio for the past three month period:
Read More “Hess Drills 10 Wells in OH Utica Shale in 2Q13”
Energy Services | Williams

Williams 2Q13: Marcellus Profit $12M, Gathered Volumes Up 76%
August 1, 2013August 1, 2013

Williams Partners, a subsidiary of midstream behemoth Williams company, reported their second quarter financials and operational update yesterday. They report revenue for 2Q13 was up 5.3% from last year this time. The northeast (Marcellus) portion of Williams’ operations reports a profit of $12 million for 2Q13. In 2Q12 they had a $20 million loss–so this year shows a dramatic $32 million turnaround–no doubt due to the fact that Williams’ gathered volumes in the Marcellus shot up 76% from last year this time.

Select portions of yesterday’s update dealing with the Marcellus:
Read More “Williams 2Q13: Marcellus Profit $12M, Gathered Volumes Up 76%”
Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Aug 1, 2013
August 1, 2013August 1, 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, Aug 1, 2013”
Hydraulic Fracturing | Industrywide Issues | Research

UTA Research: High Levels of Arsenic in Water Wells Near Drilling
July 31, 2013

Technically this is not a story about the Marcellus or Utica Shale, but it is a story about fracking in shale, and making a splash among anti-drillers, so it deserves our attention and consideration. Researchers at the University of Texas at Arlington (UTA) have just published a peer-reviewed study in the journal Environmental Science & Technology titled, “An evaluation of water quality in private drinking water wells near natural gas extraction sites in the Barnett Shale Formation” (full copy embedded below for MDN subscribers). The study looks at 100 water wells in the Barnett Shale region of north Texas. UTA researchers used data from the 1990s–before horizontal drilling and fracking began in the region–and data from their own tests conducted in 2011.

What does the data show? It shows about one-third of the water wells have dangerously high levels of arsenic in them–levels that did not exist in the 1990s. The study’s authors theorize the high levels of arsenic can be tied to fracking and drilling, although they are quick to admit the arsenic did not come from drilling fluid contamination. How then, can you blame fracking?…
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CONSOL Energy | Energy Companies | EQT Corp | Range Resources Corp | Upper Devonian Shale

Different Strokes for Different Upper Devonian-Drilling Folks
July 31, 2013July 31, 2013

Different drillers have (surprise!) different opinions when it comes to whether or not drilling in the Upper Devonian Shale (UD) layer is a good idea to do now or later. They all seem to indicate the UD will get drilled, it’s only a question of when.

The three different strategies of EQT, CONSOL and Range Resources with respect to the UD:
Read More “Different Strokes for Different Upper Devonian-Drilling Folks”
Harrison County | Industrialization | Industrywide Issues | Ohio | Regulation | Roads | Trucking

Harrison County Ticked Off at Road Damage from Drilling Trucks
July 31, 2013July 31, 2013

Trucks going to and from Utica Shale drilling sites in Harrison County, OH are damaging the roads, and County Commissioner Dale Norris says “the honeymoon is over” with respect to shale drilling in the county.

Norris says commissioners will consider adopting new regulations in the next few weeks to assess a permit fee for trucks using local roads, so they have money to fix the damage caused by the drilling industry…
Read More “Harrison County Ticked Off at Road Damage from Drilling Trucks”
Economic Impact | Industrywide Issues | Pennsylvania | Pipelines | Processing Plants | Statewide PA | Statewide WV | West Virginia

“Notable Increase” in WV/PA NatGas Production from New Pipelines
July 31, 2013July 31, 2013

The U.S. Energy Information Administration (EIA) published a brief article in their online “Today in Energy” publication that points out natural gas production for both dry gas and wet gas has gone up in West Virginia and southwestern Pennsylvania because of new infrastructure–pipelines and processing plants.

Here is the EIA article, complete with nifty chart showing the rather dramatic increase in daily production:
Read More ““Notable Increase” in WV/PA NatGas Production from New Pipelines”
Energy Services | Heckmann | Industrywide Issues | Wastewater

Wastewater Company Nuverra: Too Much Success in Marcellus/Utica
July 31, 2013July 31, 2013

Nuverra Environmental Solutions (formerly Heckmann), a company that recycles and otherwise disposes of shale drilling wastewater and leftover rock and dirt from drilling, decided to release the “bad news” ahead of an earnings call on August 8 that 2Q13 profits will not meet expectations. They’ll show earnings of a measly $165.5 million. Nuverra has a growing presence in the Marcellus and Utica Shale region.

So what were the challenges in 2Q13 that caused Nuverra to falter financially? Believe it or not, one of the reasons for their “poor” financial showing is stronger than predicted growth for their business in the Marcellus/Utica. The strong growth forced them to parcel out work to subcontractors, which costs more than having your own employees do the work. Nuverra says they’re now ramping up and expanding their own people in the Marcellus/Utica…
Read More “Wastewater Company Nuverra: Too Much Success in Marcellus/Utica”
Access Midstream Partners | Energy Services

Access Midstream 2Q13: Marcellus Throughput Passes 2 Bcf/d Mark
July 31, 2013July 31, 2013

Access Midstream Partners (formerly the midstream division of Chesapeake Energy) released its financial and operating results for the second quarter of 2013. The report shows revenue was up a whopping 70.9% from 2Q12, with natural gas throughput on their pipelines increasing 27.9% from 2Q12. The Marcellus is credited with some of that increase.

Access says their gas throughput recently sailed past 2 billion cubic feet per day in the Marcellus…
Read More “Access Midstream 2Q13: Marcellus Throughput Passes 2 Bcf/d Mark”