Marcellus Drilling News

Belmont County | Energy Companies | Guernsey County | Harrison County | Hess | Jefferson County (OH) | Ohio | Statewide OH | Utica Shale

Hess: Frackin’ and Flarin’ in Eastern Ohio
June 27, 2013June 27, 2013

It looks like Hess has come alive in Ohio’s Utica Shale. According to the Marcellus and Utica Shale Databook – Volume 1, Hess received 2 permits to drill in Belmont County for the period January – April, 2013. They also received 5 permits to drill in Guernsey County, and 8 permits to drill 3 wells in Harrison County for the same period. Hess recently completed drilling one of the Belmont wells and that well is now being flared.

From this news account, we get more insight into Hess’ recent Utica Shale drilling activities and production:
Read More “Hess: Frackin’ and Flarin’ in Eastern Ohio”
Energy Companies | EnerVest | EV Energy Partners | Ohio | Statewide OH | Utica Shale

EV Energy: Changing from Big Deals to Small for Utica Land Sale
June 27, 2013June 27, 2013

In September last year, EV Energy Partners/EnerVest put more than a half million acres of Utica Shale acreage on the market. A deal for 104,000 of those acres seemed to be almost done, but in April of this year, the deal fell apart (see EV Energy Partners Deal to Sell 104K Utica Acres Dead, What Now?). According to EVEP’s president and CEO, Mark Houser, last year everyone wanted deals for large blocks of acreage. This year? People want small acreage deals. So EVEP is changing their strategy in order to dump some of their Utica Shale holdings.

Houser gave a presentation yesterday at the Credit Suisse MLP and Energy Logistics Conference. In his speech and the following Q&A, he gave a comprehensive update on EVEP’s Utica Shale program. MDN has extracted out his comments about the Utica (see below), and grabbed the slide deck he refers to (embedded below)…
Read More “EV Energy: Changing from Big Deals to Small for Utica Land Sale”
Allegany County | Hydraulic Fracturing | Industrywide Issues | Maryland | Regulation | Statewide MD

Maryland Releases Draft “Best Practices” in Shale Drilling Report
June 27, 2013June 27, 2013

On Tuesday, the Maryland Department of the Environment (MDE) and the Department of Natural Resources (DNR) released a draft report (dated August 2013) of “best practices for drilling and production that should be required” if (really big if) horizontal drilling and hydraulic fracturing for natural gas is permitted in the Marcellus shale in Maryland (full copy of the draft report is embedded below). At least one county official in one of the two Maryland counties that actually has Marcellus Shale under it is concerned that drillers will take one look at the proposed regulations and say “no thanks” to Maryland when it comes to drilling. He’s right to be concerned…
Read More “Maryland Releases Draft “Best Practices” in Shale Drilling Report”
Economic Impact | Industrywide Issues | Ohio | Trumbull County | Utica Shale

New Utica Rail Transloading Facility Opens in Trumbull County, OH
June 27, 2013June 27, 2013

MDN recently told you about a revitalization coming to the Lordstown rail yard in Trumbull County, OH thanks to Utica Shale drilling (see Revamped Trumbull County, OH Rail Yard Coming for Utica Shale). That effort has now borne fruit with the launch of a new bulk material handling and rail transloading service from Savage to handle oil and gas field products…
Read More “New Utica Rail Transloading Facility Opens in Trumbull County, OH”
Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Jun 27, 2013
June 27, 2013June 27, 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, Jun 27, 2013”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Taxation

Rendell Paints Hanger into Corner on PA Democrat Moratorium Vote
June 26, 2013June 26, 2013

Finally (finally!) some news outlets grudgingly, dragging their feet every step of the way, had to cover one of the biggest stories to ever come from the Marcellus Shale region: Two weeks ago the Pennsylvania Democrat party voted to support a statewide moratorium on all Marcellus drilling–in effect, an ongoing ban. They want to shut down drilling in the state. MDN stood alone for days in making this news known (see PA Democrat Party Votes to End Marcellus Shale Drilling Statewide). Finally, the Harrisburg Patriot-News and Associated Press covered the story when former PA governor (and Democrat) Gov. Ed Rendell spoke out against the vote, calling it “ill-advised.”

In his comments, Rendell painted his former Secretary of the Dept. of Environmental Protection, John Hanger, into a corner (see below). Shockingly, Hanger has still not renounced this act of political suicide by his fellow Democrats. In fact, he refuses to criticize the eco-nuts in his own party, preferring to sit on the fence with regard to a moratorium (see his equivocating response below). We’d call that a “stunning fact,” John. Wouldn’t you?
Read More “Rendell Paints Hanger into Corner on PA Democrat Moratorium Vote”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Research | Statewide PA

Duke Study #2: Drilling Causes Methane Migration in Water Wells?
June 26, 2013June 26, 2013

Two years ago researchers at Duke University, funded by the anti-drilling Park Foundation (i.e. agenda-driven science), released research that supposedly showed a link between Marcellus Shale drilling and methane (natural gas) contamination of nearby water wells (see MDN In-depth: Duke University Study Links Marcellus Shale Gas Drilling with Methane Contamination of Water Wells). The research was later shown to be shoddy (see Former PA DEP Officials, Industry Group Point Out Problems with Duke University Study Linking Methane in Water with Fracking).

Most of the same researchers are back with a second study titled “Increased stray gas abundance in a subset of drinking water wells near Marcellus shale gas extraction” (see full copy embedded below). This time the Duke researchers were sure to keep Park Foundation funding well hidden with no direct grants (to layer on a veneer of impartiality), and on Monday they released a new study with new methodologies and new tests and oh-so-much that is new…and guess what? Same old conclusions. And, same old problems and weaknesses with the research and its conclusions…
Read More “Duke Study #2: Drilling Causes Methane Migration in Water Wells?”
Crime | Industrywide Issues | Litigation | Mahoning County | Ohio | Wastewater

OH Wastewater Dumper D&L Energy Gets Business Death Sentence
June 26, 2013June 26, 2013

The sad story of D&L Energy, a Youngstown, OH operator of several wastewater injection wells, has come to an ignominious end. It’s owner was (is?) Ben Lupo, who also owns sister company Hardrock Excavating, operating both companies under the D&L Energy Group umbrella. Starting last September, Lupo instructed a Hardrock employee to dump untreated fracking wastewater down a sewer drain that emptied into the Mahoning River. Lupo and the driver were found out earlier this year (see Youngstown Business Dumped >200K Gal of Untreated Wastewater).

The Ohio Dept. of Natural Resources (ODNR) promptly shut down both D&L Energy and Hardrock in February (see OH Company Dumping Frack Wastewater in Drain May Appeal Shut-Down). The shut-down led to a filing for bankruptcy in a desperate attempt to re-open and keep D&L afloat. Lupo appealed the ODNR ruling claiming D&L Energy is separate from Hardrock and just because he behaved badly at Hardrock does not mean D&L should be punished too. The Ohio Oil & Gas Commission (OOGC) has now ruled on that appeal…
Read More “OH Wastewater Dumper D&L Energy Gets Business Death Sentence”
Crime | Industrywide Issues | Litigation | Mahoning County | Ohio | Wastewater

Youngstown Democrat Gets “Return to Sender” Over D&L Letters
June 26, 2013June 26, 2013

An interesting story related to the business death sentence handed down to D&L Energy by the Ohio Oil & Gas Commission (see today’s related story). State Rep. Robert Hagan (Democrat from Youngstown) tried to improperly influence the OOGC, technically a court body, by sending letters directly to members ruling on the D&L appeal. He requested that they reject the appeal. The OOGC didn’t fall for it and instead sent the letters on to the OOGC attorney and the attorney for D&L. That is, Hagan got a “return to sender” from the OOGC, along with a rap on the knuckles. He was (eventually) cleared of wrongdoing by the Ohio Ethics Commission.

Oh, this is the same Rep. Robert Hagan who wants to more than double the oil and gas drilling tax in Ohio (see Youngstown Democrat State Rep Wants to Hike Severance Tax to 7.5%). Here’s the D&L/Hagan kerfuffle:
Read More “Youngstown Democrat Gets “Return to Sender” Over D&L Letters”
Energy Companies | Ohio | Rex Energy | Statewide OH | Utica Shale

Rex Energy Production Numbers/Update for Utica Shale
June 26, 2013June 26, 2013

Late last week, Rex Energy released production information for the wells they’ve recently drilled in Ohio’s Utica Shale, along with an operational update:
Read More “Rex Energy Production Numbers/Update for Utica Shale”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Pittsburgh Paper Takes Soros Group to Task over CSSD & Heinz
June 26, 2013June 26, 2013

A few weeks ago, MDN told you about a sham report from the George Soros-backed (and anti-drilling) Public Accountability Initiative (PAI), which took aim at the new Center for Sustainable Shale Development (CSSD) claiming to “out” the head of the Heniz Endowments–one of the environmentalist organizations in the CSSD–as having deep ties to the drilling industry (see Heinz Endowments President Owns $1.2M in Kinder Morgan Stock). The Pittsburgh Post-Gazette has (surprisingly) taken aim at PAI’s criticism of the CSSD. Summarizing the tone of the P-G editorial (our words): “Everybody already knew Bobby Vagt of the Heniz Endowments gets industry money–lighten up PAI. The CSSD is a good thing.”

Here’s part of the P-G editorial:
Read More “Pittsburgh Paper Takes Soros Group to Task over CSSD & Heinz”
Crosstex Energy | Energy Services | Industrywide Issues | Muskingum County | NGLs | Ohio | Utica Shale

Crosstex Ships Utica Condensate with OH Rail Loading Terminal
June 26, 2013June 26, 2013

Yesterday, Crosstex Energy re-activated and started to use its Black Run rail loading terminal in Frazeysburg (Muskingum County), OH. The facility will let Crosstex load and ship 24,000 barrels a day of light oil condensate. The condensate is produced by Utica Shale wells.

The rail loading terminal sits on the short line Ohio Central Railroad (OHCR), which in turn connects with the Columbus and Ohio River Railroad, CSX, Norfolk Southern and the Wheeling and Lake Erie Railway. Plenty of markets for drillers to now access for their Utica condensate production…
Read More “Crosstex Ships Utica Condensate with OH Rail Loading Terminal”
Hydraulic Fracturing | Industrywide Issues | New York | Ohio | Pennsylvania | Statewide NY | Statewide OH | Statewide PA

Energy in Depth Websites Consolidate with National Website
June 26, 2013June 26, 2013

For those wondering (like we did) what the heck happened to the Energy in Depth – Marcellus and Energy in Depth – Ohio websites, they’ve been merged into the national Energy in Depth website. Each of those original websites and their excellent articles are still around–they’re just part of the main site, found at //energyindepth.org.

EID is a vitally important voice in the drilling debate. It is the voice of the drilling industry–backed by the Independent Petroleum Association of America. Those who hate fossil fuels are quick to point out that EID is the voice of “big oil.” Well, uh, yeah, it is. It’s also the voice of little oil and gas companies. But let’s not quibble–all oil is big oil for the eco-nuts. The anti-fossil fuel gang would love nothing better than to put a muzzle on EID. Fortunately for the vast majority of Americans who love fossil fuels and the prosperity we derive from them as a nation (fossil fuels provide virtually all of our energy), EID is not going anywhere. They’re still around setting the record straight. They’ve just done a bit of housekeeping and consolidation of their many websites into one, according to this press release:
Read More “Energy in Depth Websites Consolidate with National Website”
Industrywide Issues | Supply Chain

Drilling Supply Chain: Trade Your Accounts Receivable for Cash
June 26, 2013June 26, 2013

Businesses in the Marcellus and Utica Shale supply chain–from drillers to those who supply them with services–now have a new way of getting their hands on money to keep business moving (or expanding). Transfac Capital, a finance company with offices scattered across the country, has just announced they have expanded into Ohio, Pennsylvania and West Virginia with cash in hand ready to make loans in the drilling industry. Transfac is a “factoring” company–meaning they are not a bank but make loans based on a business’ accounts receivable list. That is, they purchase accounts receivable, paying cash now to businesses that would otherwise have to wait to receive that cash–perhaps up to 90 days or more…
Read More “Drilling Supply Chain: Trade Your Accounts Receivable for Cash”
Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Jun 26, 2013
June 26, 2013June 26, 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, Jun 26, 2013”
Hydraulic Fracturing | Industrywide Issues | Research

EPA Abandons Pavillion, Can’t Prove Fracking/Water Contamination
June 21, 2013June 21, 2013

The federal Environmental Protection Agency (EPA) has been desperate to make a connection between fracking and groundwater contamination from chemicals and thought they had a winner in Pavillion, Wyoming (see EPA Keeps Investigating Fracking/Water Contamination in WY). Don’t tell Josh Fox of Gasland and Gasland 2 infamy (who prominently featured Pavillion in both his movies), but yesterday the EPA announced they’ve thrown in the towel and given up on trying to prove a fracking/water contamination connection in Pavillion. It is a tacit admission they screwed up in their testing, as maintained all along by the American Petroleum Institute (see API Says EPA Botched Pavillion, WY Fracking Tests).

The EPA now says, essentially: “We’ll let Wyoming take over the investigation so its done right.” No doubt EPA’s decision to abandon Pavillion will provide the tinfoil hat brigade with lots of fodder for how “big oil and gas” has infiltrated and corrupted the activist Obama EPA. Here’s the full EPA statement issued yesterday:
Read More “EPA Abandons Pavillion, Can’t Prove Fracking/Water Contamination”