Marcellus Drilling News

Accidents | Energy Companies | Industrywide Issues | Lycoming County | Pennsylvania | Wastewater | XTO

PA AG Abuses Her Authority, Files Criminal Charges Against XTO
September 11, 2013September 11, 2013

In November 2012, the day after the general election, MDN asked the question if Pennsylvania’s newly elected anti-drilling attorney general, Kathleen Kane, would target the Marcellus Shale drilling industry (see Will New PA AG Go After the Marcellus Drilling Industry?). We now know the answer. Yesterday Kane’s office announced it had filed criminal charges against XTO Energy related to the spill of fracking wastewater at a site in Lycoming County, PA that happened more than three years ago–before she took office.

XTO has already responded that the area where the spill occurred suffered no long-term adverse environmental effects and that Kane has far exceeded the bounds of her authority (in fact is abusing her authority) in seeking criminal charges. We agree with XTO…
Read More “PA AG Abuses Her Authority, Files Criminal Charges Against XTO”
Belmont County | Energy Companies | Gulfport Energy | Ohio | Utica Shale

Delayed Pipeline to Single Gulfport Utica Well Impacts Market
September 11, 2013September 11, 2013

Can delays in building a pipeline to a single Utica Shale well be enough to affect the stock price of the driller? You bet it can. Analysts from Sterne Agee issued revised estimates of how much production Gulfport Energy will see in the third quarter of this year based on Gulfport’s pre-announcement to the markets yesterday that they’ve had to lower their own estimates of production in 3Q13–because of a delay in hooking up the Irons 1-4H Utica Shale well in Belmont County, OH.

To be fair, Gulfport’s stock price only slipped a little bit on yesterday’s news (down less than 1/2 of one percent), and Sterne Agee remains bullish on the stock. Still, it’s incredible to us that the scheduling of a pipeline hookup for a single well can create such an impact on a multi-billion dollar energy company…
Read More “Delayed Pipeline to Single Gulfport Utica Well Impacts Market”
Accidents | Belmont County | Energy Companies | Gulfport Energy | Harrison County | Industrywide Issues | Ohio | Statewide OH

Gulfport Pays $250K Fine for Leaky Pad Liners at 7 OH Utica Sites
September 11, 2013September 11, 2013

The Ohio Dept. of Natural Resources (ODNR) investigated Gulfport’s shale drilling sites in eastern Ohio after an inspector found ground contamination at a Harrison County well. ODNR found evidence of brine–naturally occurring underground water that comes to the surface after drilling is done–escaping from (leaking from) the well–which is not supposed to happen. Each well pad has a big rubber pad liner that’s supposed to catch anything that happens to leak. Gulfport’s pad liners did not do the job.

In addition to a $250,000 fine, Gulfport has to rebuild each of the seven drill pads where there are defective liners before they can continue drilling at those locations…
Read More “Gulfport Pays $250K Fine for Leaky Pad Liners at 7 OH Utica Sites”
Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Range Resources Corp | Washington County | Wastewater

Range Water Impoundment Public Hearing Postponed 2nd Time
September 11, 2013September 30, 2013

In August MDN told you about the latest kerfuffle between Range Resources and Mt. Pleasant township in Washington County, PA. Range had built and maintains four water impoundments (think “pond”)–one for frack wastewater and three for fresh water storage. Range uses the impoundments to store and haul water to/from drill sites for use in fracking (see Range Resources Argues with Mt Pleasant over Water Impoundment). Residents object to the impoundments on the grounds that their original use–drilling wells in that immediate area–is long over. Range continues to use them to drill other wells, not only in Washington County but also in Ohio and West Virginia. Residents say Range has overstayed their welcome with the impoundments.

A public hearing was continued from August to September when the public didn’t get a chance to vent at the August meeting. Last night, the hearing was continued yet again–to October–because Range wants a witness to appear at the hearing that couldn’t make it last night…
Read More “Range Water Impoundment Public Hearing Postponed 2nd Time”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Mahoning County | Ohio | Regulation

Niles, OH Considers Vote to Rescind Ill-Advised Frack Ban
September 11, 2013September 11, 2013

When you rush to do a dumb thing, you later regret it. City council members in Niles, OH have learned that hard lesson after voting last month to implement a ban on shale drilling. In their haste to “protect residents” from drilling, they didn’t bother to read the fine print of the bill they passed (no doubt drafted by a helpful anti-driller). In addition to banning shale drilling in the city–something that wouldn’t happen anyway–the bill also bans businesses that operate in the city and the city itself from doing business with the drilling industry. Oops. The city does a lot of business with the drilling industry.

Now city council members are planning a vote to rescind the ban they just passed last month…
Read More “Niles, OH Considers Vote to Rescind Ill-Advised Frack Ban”
Antero Resources | CONSOL Energy | Energy Companies | Ohio | PDC Energy | Statewide OH

Eastern OH Shale Drillers Donate to Local Schools
September 11, 2013September 11, 2013

Several high schools in eastern Ohio have received a surprise gift: money from drillers. Antero Resources recently donated $2,500 to each of five high schools for use in their athletics programs. PDC Energy recently donated $5,000 to the Wolf Creek school. And CONSOL Energy is running a contest for select Ohio schools with a $10,000 first prize.

All of these efforts come under the umbrella of what we call “the industry gives back”…
Read More “Eastern OH Shale Drillers Donate to Local Schools”
Ohio | Statewide OH | Summit County | Utica Shale

Ohio Utica Shale Blog Takes Top Honor in Statewide Contest
September 11, 2013September 11, 2013

A huge congratulations are in order for Bob Downing (whom we have met and like a great deal) and Jim Mackinnon (whom we’ve not met but are sure we would like) for winning the contest as the No. 1 newsblog in Ohio for 2012 for their Ohio Utica Shale blog (published by the Akron Beacon Journal). MDN editor Jim Willis reads a lot–every day–and one of his favorite “must read” websites (that we often quote from) is the Ohio Utica Shale blog/Akron Beacon Journal.

The award is well-deserved and we can’t think of a better pair who deserve the recognition from their peers in the Society of Professional Journalists, the organization making the award. So, “Way to go, guys!”…
Read More “Ohio Utica Shale Blog Takes Top Honor in Statewide Contest”
Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Sep 11, 2013
September 11, 2013September 11, 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 11, 2013”
Earthquakes | Hydraulic Fracturing | Industrywide Issues | Statewide WV | West Virginia

Seismologist: Fracking Does NOT Cause Earthquakes
September 10, 2013September 10, 2013

$fracking & earthquakes$ Finally, an AP reporter who listens and accurately reports the news. Wait, has hell frozen over? When AP starts reporting accurately, we become suspicious. But let’s not become distracted at this unusual turn of events…

On the first day of a two-day conference being hosted by West Virginia University on Marcellus Shale drilling in Morgantown, a seismologist from the University of Texas had the guts to set the record straight. He said: (1) Fracking does not cause earthquakes; (2) injection wells that dispose of fracking wastewater sometimes cause earthquakes; and (3) earthquakes triggered by injection wells are rare–extremely rare. And the AP reported it–accurately. Huh…
Read More “Seismologist: Fracking Does NOT Cause Earthquakes”
Broome County | Chesapeake Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | New York | Tioga County (NY)

Done Deal: Chesapeake Drops Leases on 13K Acres in NY
September 10, 2013September 10, 2013

Last week MDN told you that Chesapeake was set to release 12,000 acres of leases in the Southern Tier of New York, abandoning a legal fight to extend those leases (some of which they paid $2-3 per acre for) by using a legal concept called force majeure (see Chesapeake to Release 12K Acres of NY Leases Next Week). Major media outlets from AP to Reuters are reporting Chesapeake, as of Monday, has officially dropped those leases.

One slight update: it was actually 13,000 acres, not 12,000 acres as originally reported…
Read More “Done Deal: Chesapeake Drops Leases on 13K Acres in NY”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Statewide PA | Wastewater

MDN Processes its Own Frack Wastewater Comments
September 10, 2013September 10, 2013

Apparently MDN left a wrong impression with an article we ran yesterday. We told you about a new study just released by the U.S. Geological Survey (USGS) that takes a look at discharges from wastewater plants in Pennsylvania and concludes they don’t do a good job of cleaning up fracking wastewaster (see USGS Study Says Drilling Wastewater Not Fully Treated by Plants). Our criticism of the study left the impression with one reader that we believe municipal sewage treatment plants are capable of processing fracking wastewater. Let us be clear: We do NOT believe that nor do we advocate for it! Just the opposite.

We want to clear up our viewpoint on frack wastewater treatment…
Read More “MDN Processes its Own Frack Wastewater Comments”
Pennsylvania | Statewide PA | Susquehanna County

A Few Dimock Families Who Sued Cabot Endorse Hanger for PA Gov
September 10, 2013September 10, 2013

John Hanger was Secretary of the Pennsylvania Dept. of Environmental Protection from 2008 to 2011 under then Gov. Ed Rendell (both Democrats). In all that time Rendell and Hanger could not get a reasonable tax on drilling passed nor did they modernize PA’s decades-old drilling laws to account for shale drilling and provide new protections for the environment. It took Gov. Tom Corbett and new DEP Sec. Michael Krancer (both Republicans) to accomplish those things.

Today at 11 am at a press conference in Harrisburg, John Hanger, who is running in a primary for the Democrat nomination for Governor, will be endorsed by a few families from Dimock, PA–families who thought they could sue Cabot Oil & Gas for “contaminating” their water supplies and retire in style. Unfortunately for them, it didn’t happen. Those are the “brave” people who will endorse Hanger today. That tells you all you need to know about John Hanger and how he will govern if he wins…
Read More “A Few Dimock Families Who Sued Cabot Endorse Hanger for PA Gov”
Boardwalk Pipeline Partners | Energy Services | Industrywide Issues | NGLs | Pipelines | Williams

Thank God the Bluegrass Pipeline will Bypass Marion County Nuns
September 10, 2013September 10, 2013

Thank God the Bluegrass Pipeline will avoid running through property owned by a bunch of liberal Catholic nuns in Marion County, KY. No really, thank the good Lord! (Can I hear an Amen?) Williams and Boardwalk Pipeline Partners–the joint partners building the Bluegrass natural gas liquids (NGL) pipeline, a pipeline that carries (gasp!!) “flammable liquids”–say the NGL pipeline will not cross the holy ground of the Sisters of Loretto. But have no fear, the sisters say they’ll oppose it wherever it goes anyway.

Don’t tell the sisters or the AP reporter writing the very slanted article (below), but natural gas running through bazillions of miles of natgas pipelines buried under the ground in every major and minor city across America is just as “flammable” as what will run through the Bluegrass Pipeline when it’s built and operating…
Read More “Thank God the Bluegrass Pipeline will Bypass Marion County Nuns”
Hydraulic Fracturing | Industrywide Issues | Regulation | Statewide VA | Statewide WV | Virginia | West Virginia

Charleston Gazette Editorial: Drill Washington National Forest
September 10, 2013September 10, 2013

The debate continues to rage over whether or not to allow shale drilling in the George Washington National Forest. Later this month, the U.S. Forest Service will decide whether or not to allow it (see WashPo Takes Aim at Fracking in the George Washington Natl Forest). Counter to the claptrap published in the Washington Post a few days ago, the Charleston Gazette provides powerful arguments in favor of drilling in a tiny sliver (12,000 acres out of 2 million) of the Washington Forest in today’s editorial.

One gem from the Gazette: The “pristine” Jefferson National Forest with it’s own “leafy cradles” and “gurgling brooks” sits adjacent to and south of the Washington National Forest–in the very same watershed. The Jefferson Forest has had active conventional (vertical) gas drilling for decades–with absolutely no problems…
Read More “Charleston Gazette Editorial: Drill Washington National Forest”
Energy Companies | Rhino Resource Partners | Utica Shale

Rhino Resources Issues 1.1M Common Units to Repay Debt
September 10, 2013September 10, 2013

Rhino Resource Partners is a master limited partnership (MLP) that produces coal in various basins throughout the U.S. They also invest in oil and gas acreage in both the Utica and Cana Woodford shale plays. In April MDN told you that Rhino had decided to “flip” 20% of their Utica royalty interests to an undisclosed third party for $10.5 million (see Rhino Flips 20% of Utica Investment to Undisclosed 3rd Party).

Yesterday Rhino issued another brief press statement–this one stating they are issuing a public offering of 1.1 million shares of common units (rough equivalent of stock). They’re issuing the new units in order to pay off loans they previously borrowed under their revolving line of credit. No word on how much money they hope to raise…
Read More “Rhino Resources Issues 1.1M Common Units to Repay Debt”
Industrywide Issues | Marion County | Sand/Proppant | West Virginia

New Frack Sand Terminal Opens in Fairmont, WV
September 10, 2013September 10, 2013

If there’s one thing beside water that frackers need, it’s sand. A very special kind of sand used in fracking. Last week saw the grand opening of a new frack sand terminal in Fairmont (Marion County), West Virginia. The new facility is owned and operated by TRANSFLO, a subsidiary of CSX Corporation…
Read More “New Frack Sand Terminal Opens in Fairmont, WV”