Marcellus Drilling News

American Energy Partners | Energy Companies | Industrywide Issues | Litigation | Ohio | Statewide OH

McClendon Gets Sued in OH Over New Company’s Name
September 3, 2013September 3, 2013

It’s no secret that coal has taken a beating from abundant, cheap shale gas. Natural gas burns cleaner than coal–there’s just no disputing that fact. And because of it, natural gas has displaced coal at a number of electrical generating plants around the country. However, coal remains a very important fossil fuel that powers much (in fact most) of American electricity. So it’s no surprise that the owner of a number of Ohio coal mines is a bit miffed with Aubrey McClendon.

Robert Murray operates a coal mine near Beallsville (Monroe County), OH under the name American Energy Corp. Aubrey McClendon named his new shale oil & gas company American Energy Partners. Murray is miffed enough with McClendon to sue him for misappropriation of the name American Energy. He believes McClendon has intentionally tried to confuse the marketplace…
Read More “McClendon Gets Sued in OH Over New Company’s Name”
Belmont County | Energy Companies | Energy Services | Harrison County | Hess | Industrywide Issues | Jefferson County (OH) | Ohio | Pipelines | PVR Midstream | PVR Partners | Utica Shale

PVR Partners to Build $150M Utica Shale Pipeline System for Hess
September 3, 2013September 3, 2013

Midstream company PVR Partners has been selected by Hess to construct 45 miles of gathering pipelines in eastern Ohio’s Utica Shale region. In an announcement issued today, PVR said the new pipelines will be built to cover Belmont, Jefferson and Harrison Counties where Hess holds a substantial acreage position. The new pipeline project will end up costing somewhere in the neighborhood of $125-$150 million and will be completed in 2015.

The PVR announcement:
Read More “PVR Partners to Build $150M Utica Shale Pipeline System for Hess”
Hydraulic Fracturing | Industrywide Issues | Regulation

ASTM Intl Announces Proposed Standard for Shale Oil/Gas Fracking
September 3, 2013September 3, 2013

There’s no end of governmental, quasi-governmental and private organizations that want to impose some sort of regulation on fracking. From the federal EPA on down, they all want to get their licks in. Regulation (at the state level) is of course absolutely necessary. Strong regulations to protect citizens and the environment is a must–and the responsibility for doing it lies solely with the states as a matter of Constitutional law. As for the plethora of other would-be regulators? Not needed. But that doesn’t stop them from trying anyway.

The latest organization to toss their hat in the fracking regulation ring is ASTM International–formerly known as the American Society for Testing and Materials. A very fine organization with superb standards used by many industries. However, they’re now working on a proposed standard and “best practices” for shale oil and gas drilling and fracking. We have to ask: Is it really needed?
Read More “ASTM Intl Announces Proposed Standard for Shale Oil/Gas Fracking”
Antero Resources | Energy Companies

Antero Resources Gets Extra $250 Million Credit Line
September 3, 2013September 3, 2013

Antero Resources was recently crowned as the driller with the most productive Utica Shale well in Ohio, a single well that will provide the company with an enormous amount of revenue (see WVU Prof Says Antero Well will Generate $300K Revenue…Per Day!). Apparently the publicity has been good for Antero, who announced today they’ve upped their line of credit at the bank–from $1.75 billion to a whopping $2 billion. So far Antero has used about $1 billion from their line of credit to finance drilling operations in the Utica and Marcellus Shale.

Must be the bankers at JPMorgan Chase and Wells Fargo were impressed with the performance of Antero’s latest wells–$250 million impressed…
Read More “Antero Resources Gets Extra $250 Million Credit Line”
American Energy Partners | Energy Companies | Ohio | Statewide OH | Utica Shale

More Evidence that Aubrey McClendon Loves OH’s Utica Shale
September 3, 2013September 3, 2013

Aubrey McClendon is former CEO of Chesapeake Energy and now CEO of an upstart competitor he started named American Energy Partners (see AEP’s just launched website here). Aubrey is high on the Ohio Utica Shale. He’s rumored to be close to signing a deal with Shell for 50,000 OH Utica Shale acres, and is also rumored to be the unnamed buyer for EnerVest’s 22,535 OH Utica Shale acres sold just a few weeks ago (see He’s Baaaack! Aubrey McClendon is Back in OH Shale Country).

More evidence that Aubrey is focusing on Ohio: A bunch of advertisements AEP is running in OH media seeking to sign leases in the following counties…
Read More “More Evidence that Aubrey McClendon Loves OH’s Utica Shale”
Belmont County | Industrywide Issues | Ohio | Seismic Testing | Utica Shale

Belmont County, OH Seismic Charges: Trespass or Honest Mistake?
September 3, 2013September 3, 2013

Sandy Putorek, who lives in Pittsburgh but owns a 30-acre farm in Lansing (Belmont County), OH, is anti-drilling. It is her American right to refuse what she claims are many offers to lease her property for Utica Shale drilling. It is also her right (so long as she owns the mineral rights) to refuse seismic testing on her property. However, while recently visiting her land she noticed tracks across her property. When she followed them, she had a surprise: someone had installed small explosive charges used for seismic testing–without her permission. Now Sandy is (understandably) fighting mad.

The company that installed the charges is removing them, claiming bad maps from the county led to the charges being mistakenly placed on Sandy’s land…
Read More “Belmont County, OH Seismic Charges: Trespass or Honest Mistake?”
Industrywide Issues | Lycoming County | Pennsylvania | Supply Chain

Supply Chain Success: From Roller Coasters to Marcellus Well Pads
September 3, 2013September 3, 2013

What do roller coasters and Marcellus drilling sites have in common? It seems they have more in common than you might imagine.

MDN never ceases to be amazed at the ingenuity of America’s small businesses. The latest small business to amaze us is a custom plastics manufacturer in Montoursville, PA–Ralph S. Alberts Co–known for making plastic replacement parts for amusement park rides. Lately, the company has retooled the same plastic products used for amusement parks to be used as impregnable barriers at well pad sites. How cool (and innovative) is that?…
Read More “Supply Chain Success: From Roller Coasters to Marcellus Well Pads”
Alternative Energy | Economic Impact | Industrywide Issues

How Fairhaven, MA Residents Got Fleeced by Wind Power
September 3, 2013September 3, 2013

A Fairhaven, MA resident writes that Marcellus and Utica Shale have made natural gas so cheap that a wind energy project funded by Fairhaven town taxpayers has not, nor ever will, produce revenue anywhere near what was promised by the project’s developers–developers, we might add, that continue to get a guaranteed 2.3% increase in revenue each year even though the town is not getting the minimum profits they were told they would get.

Now the residents of Fairhaven are left holding the bag of diminishing revenue and escalating costs–and the Fairhaven residents who are unfortunate enough to live near the project have to endure the never-ending wumpf, wumpf, wumpf noise that comes from the turbines…
Read More “How Fairhaven, MA Residents Got Fleeced by Wind Power”
Best of the Rest

Marcellus & Utica Shale Story Links: Tue, Sep 3, 2013
September 3, 2013September 3, 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: Tue, Sep 3, 2013”
Antero Resources | Energy Companies | Lease & Royalty Payments | Monroe County | Utica Shale | West Virginia

WVU Prof Says Antero Well will Generate $300K Revenue…Per Day!
August 30, 2013August 30, 2013

The Yontz 1H well may not produce at these unheard-of levels for an extended period, but heck, if a gas well is bringing in $300,000 per day in revenue, it doesn’t have to last long! That’s the staggering amount of revenue that a West Virginia University professor predicts will be produced by the monster well recently drilled by Antero Resources in Monroe County, WV (see Antero Resources Utica Well Produces Stratospheric 38.9 Mmcf/d). At the rate the gas and gas liquids are flowing from the well right now, it will bring in over $2 million per week in revenue for Antero. If royalties are 20% for the landowner, that’s $400,000 per week for the Yontz family!

With those kinds of numbers, no wonder Antero is willing to “roll the dice” and spend a half billion dollars to build a new water pipeline (see Antero Resources Rolls Dice on 1/2 Billion Dollar Marcellus Pipe)…
Read More “WVU Prof Says Antero Well will Generate $300K Revenue…Per Day!”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

Anti-Drillers Attempt a Brave Face with NY Appeals Court Decision
August 30, 2013August 30, 2013

MDN was one of the first news/blog sites yesterday to break the news that the New York Court of Appeals has decided to hear the Dryden and Middlefield appeals. This is the best possible news landowners could receive (see BREAKING: NY Court of Appeals will Hear Dryden/Middlefield Case). As promised, below is MDN’s explanation of why we believe the Court of Appeals decision is the single most positive development NY landowners have had in several years (not hyperbole!).

However, before our analysis, some background on yesterday’s decision as given by an objective news source (the Wall Street Journal) and by a not-so-objective news source (the Albany Times Union)…
Read More “Anti-Drillers Attempt a Brave Face with NY Appeals Court Decision”
Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

RINO NY Sen Greg Ball Comes Out in Favor of Fracking…Sort of
August 30, 2013

Anti-drilling New York State Sen. Greg Ball (a Republican-In-Name-Only from Putnam County), perhaps sensing his next election prospects slipping away, has had a conversion of sorts to becoming a teeny, tiny little bit pro-drilling. In January 2012, Ball introduced a bill that would extend New York’s fracking moratorium until June 1st of this year (Bill to Extend Fracking Moratorium until 2013 Hits NY Senate). Obviously the law didn’t pass and wasn’t even needed. However, it showed the true colors of Greg Ball. Now he’s “seen the light,” supposedly…

Ball “came out” yesterday with an editorial published on his website and picked up by several media outlets. Here is his explanation for his change of heart and new-found, lukewarm, conditional support for fracking in NY:
Read More “RINO NY Sen Greg Ball Comes Out in Favor of Fracking…Sort of”
Allegheny County | CONSOL Energy | Economic Impact | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pennsylvania

NIMBY Town to Provide Water for Fracking at Pittsburgh Airport
August 30, 2013August 30, 2013

Two towns located near the Pittsburgh Airport are set to make big money from the drilling that will happen at the airport–even though the drilling is not within their own boundaries. How? They’re going to sell water to CONSOL Energy to be used for fracking 47 wells at the airport–up to 300 million gallons of water.

One of the towns selling water, Findlay, recently approved three new shale wells in the town–the first three to be drilled there (see Findlay Twp, PA Approves First 3 Marcellus Wells, Range to Drill). Findlay’s approval of Marcellus wells indicates they are favorable to shale drilling. The second town that will sell water for fracking at the airport, Moon Township, is not so favorable toward fracking. Last December the Moon Board of Supervisors voted to ban drilling in 75% of the their town (see Moon Twp, PA Votes to Ban Fracking in 75% of the Town). We find it interesting that a town that leans against drilling is willing to sell water for drilling–as long as the drilling is not in their backyard…

Read More “NIMBY Town to Provide Water for Fracking at Pittsburgh Airport”
Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Norse Energy | Regulation | Statewide NY

Norse Energy 2Q13: Concerned About Remaining ‘a Going Concern’
August 30, 2013August 30, 2013

MDN told you a few days ago about the sad state of affairs at Norse Energy (see Norse Can’t Dump NY Leases at Auction, Creditors Get Ready to Sue). The company released their second quarter update today (full copy embedded below). The update is based on the assumption the company will remain “a going concern.” They state that if they can’t sell their 130,000 acres of New York leases at a decent price, they’ll have to turn the lights off and walk away. The company is currently under bankruptcy protection and has been ordered to sell their last remaining asset–the leases.

One item from the 2Q13 update that caught our attention is that a group of approximately 60 landowners with a collective 6,000 acres are suing Norse to end their leases. Norse had invoked force majeure on the leases–a legal maneuver that states, roughly, “due to a circumstance beyond our control we’re extending the original lease term.” Of course the unforeseen circumstance is the now 5+ year moratorium on drilling in New York. If Norse starts losing already-signed leases left and right, they’ll have no assets left to sell at auction, so they are vigorously fighting the action by the landowners…
Read More “Norse Energy 2Q13: Concerned About Remaining ‘a Going Concern’”
Best of the Rest

Marcellus & Utica Shale Story Links: Fri, Aug 30, 2013
August 30, 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, Aug 30, 2013”
Economic Impact | Ethane | Industrywide Issues | Processing Plants | West Virginia | Wood County

Wood County, WV “Still in the Running” for a Cracker Plant
August 30, 2013August 30, 2013

West Virginia continues to make noise about an ethane cracker plant for the state, even though Shell is looking to build one in Pennsylvania. Earlier this week WV Gov. Earl Ray Tomblin was once again talking up a cracker for WV (see WV Gov. Tomblin Beats the Ethane Cracker Drum Once Again).

Now, another WV voice has joined the cracker chorus. Wood County, WV says they have a site under serious consideration by an unnamed company as a possible location for a $3 billion ethane cracker plant. According to a Wood official, they’re “definitely still in the running”…
Read More “Wood County, WV “Still in the Running” for a Cracker Plant”