Marcellus Drilling News

Industrywide Issues | Ohio | Statewide OH | Taxation

OH Gov Kasich Latest Frack Tax Plan – Third Time’s the Charm?
June 7, 2013June 7, 2013

Ohio Gov. John Kasich is trying to make his plan to hike severance taxes on oil and gas drilling in the fledgling Utica Shale a little more palatable with a ~~bribe~~ plan to kick back 25% of the taxes raised to the eastern Ohio counties most affected by drilling. The other 75% would, of course, be spent on lowering everyone else’s income taxes a tiny fraction–instead of making the tough choices of cutting obscene government spending. Typical political sleaze–and shameful coming from a so-called conservative Republican.

This is the third such tax increase plan Kasich has tried to push through. Here’s the details of the latest plan, such that they are, being floated by Kasich’s office:
Read More “OH Gov Kasich Latest Frack Tax Plan – Third Time’s the Charm?”
Industrywide Issues | Pipelines | Regulation

EPA to Investigate Itself on Methane Leaks from Pipelines
June 7, 2013June 7, 2013

The federal Environmental Protection Agency (EPA) just keeps trying to do what they Constitutionally are not allowed to do: regulate oil and gas drilling. Their latest effort to do so comes from the EPA’s Inspector General office, which announced plans to investigate whether the EPA is taking enough action to reduce methane leaks from natural gas pipelines. Kind of like a person kicking himself in his own rear-end…
Read More “EPA to Investigate Itself on Methane Leaks from Pipelines”
Accidents | Energy Services | Industrywide Issues | Lycoming County | Pennsylvania | Pipelines | PVR Midstream | PVR Partners

PA DEP Slaps PVR Gathering with $150K Fine for Illegal Discharges
June 7, 2013June 7, 2013

PVR Marcellus Gas Gathering, a PA-based midstream company, was fined $150,000 this week by the PA Dept. of Environmental Protection for four episodes of “discharge violations” that happened while PVR was constructing the Coal Mountain pipeline in Lycoming County, PA in 2011. The DEP slapped them hard because, says the DEP, the company kept repeating the same violation–discharging bentonite (impure clay) into a local creek. PVR Marcellus Gas Gathering is a subsidiary of PVR Partners (formerly Penn Virginia Resource Partners).

The DEP announcement:
Read More “PA DEP Slaps PVR Gathering with $150K Fine for Illegal Discharges”
Alternative Energy | Industrywide Issues | Research

New Report: NatGas + Renewables = Lower GHG Emissions
June 7, 2013June 7, 2013

The Center for Climate and Energy Solutions (C2ES) has just published a new report titled, “Leveraging Natural Gas To Reduce Greenhouse Gas Emissions.” The 116-page report (full copy embedded below) looks the recent success of using natural gas and at how it can be used in conjunction with other energy sources to cut the use of greenhouse gases even further. Former Secretary of the PA Dept. of Environmental Protection, John Hanger, is practically orgasmic in his effusive praise of the study, primarily because it mirrors his own philosophy of regulate natural gas drilling a lot more (but still do it), and at the same time work hard to develop renewable sources like wind and solar (see John’s comments here).

The C2ES posts this helpful overview and summary of the study on their website:
Read More “New Report: NatGas + Renewables = Lower GHG Emissions”
Chesapeake Energy | Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Statewide PA

PA Landowner Says Chesapeake Trespassed, Court Decides for Chessy
June 7, 2013June 7, 2013

In yet another case of “be careful how you word your lease,” the Valley Rod & Gun Club (in Pennsylvania) leased land to Chesapeake Energy for drilling. The two disagreed over where the drill pad should be located and Chesapeake moved forward with a site they wanted against the wishes of the landowner. The landowner sued saying Chesapeake trespassed in building the pad. Earlier this week U.S. District Court in PA ruled…
Read More “PA Landowner Says Chesapeake Trespassed, Court Decides for Chessy”
Broome County | Economic Impact | Energy Services | Industrywide Issues | Laser Northeast Gathering | New York | Pipelines | Taxation | Williams

More Good News for Windsor, NY Taxpayers from Shale Gas Pipeline
June 7, 2013June 7, 2013

Last October, MDN told you about the Town of Windsor (where we write from!) in Broome County, NY, along the border of Pennsylvania. Windsor saw a new 9-mile section of natural gas pipeline and a compressor station go online, and the tax revenue from that small project was enough to lower the property and school taxes for everyone in the town. We asked/continue to ask the question–when was the last time you heard about school and property taxes in any NY community going down? Yeah, we’ve never heard of it either.

Well, more good news for those of us fortunate enough to live in the Town of Windsor: A regional gas distribution company is building smaller pipelines locally and by 2014, the local high school, one of the local elementary schools and the town hall will all be hooked up and heating with natural gas. Estimated savings to taxpayers: $350,000 per year. Thank you Marcellus Shale and the miracle of hydraulic fracturing. And thank you pipelines and compressor plants…
Read More “More Good News for Windsor, NY Taxpayers from Shale Gas Pipeline”
Best of the Rest

Marcellus & Utica Shale Story Links: Fri, Jun 7, 2013
June 7, 2013June 7, 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, Jun 7, 2013”
Chesapeake Energy | Columbiana County | Energy Companies | Hilcorp Energy | Ohio | Utica Shale

Chesapeake Sells Utica Leases in Columbiana County, OH to Hilcorp
June 6, 2013

A great piece of investigative journalism from the Youngstown Business Journal has found that Chesapeake Energy, the largest leaseholder in the Utica Shale, transferred nearly 1,100 leases (representing tens of thousands of acres) in Columbiana County, OH to Hilcorp earlier this year. No announcements of any kind from either Chesapeake or Hilcorp about the deal. Which is interesting, because not long after the deal was signed, sealed and delivered, Chesapeake on an earnings call singled out Columbiana as one of two Utica counties that they are committed to (see Chesapeake Earnings Call Highlights Utica Results in 2 OH Counties).
Read More “Chesapeake Sells Utica Leases in Columbiana County, OH to Hilcorp”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | New York | Oneida County | Regulation

Utica, NY Bans Shale Drilling in the Utica (and Marcellus)
June 6, 2013June 6, 2013

It seems life in New York State is full of irony. The Marcellus Shale is named after the town of Marcellus, NY, where there is an outcropping of shale at ground level and the reason that particular shale layer was so-named. A while back the Town of Marcellus banned shale drilling. In like manner, the Utica Shale is named for Utica, NY. Tuesday night, the City of Utica Common Council banned drilling and fracking within city limits. Not that it would happen there anyway–but still, Et tu, Brute?

We find this brief reference on the blog site of the local Utica newspaper:
Read More “Utica, NY Bans Shale Drilling in the Utica (and Marcellus)”
Belmont County | Carroll County | Columbiana County | Harrison County | Ohio | Statewide OH | Utica Shale | Washington County (OH)

Latest OH Utica Permit Numbers, Rig Count Discrepancy
June 6, 2013June 6, 2013

As of June 1, Ohio has issued 693 Utica Shale drilling permits. Of the permits now issued, 339 (about half) of the wells have been drilled. Of the half now drilled, Utica has 102 wells (almost one-third) now online and producing natural gas, gas liquids and oil. According to the Ohio Dept. of Natural Resources (ODNR), there are currently 37 drilling rigs operating in the Utica Shale. That number is different from the Baker Hughes weekly tracking number which reports for the last week of May there were 32 active rotary rigs in Ohio. Why the difference? We don’t know. (We’ve included the Baker Hughes monthly averages in a handy chart below for OH, PA and WV.)

During the week of May 26 – June 1, the ODNR issued 18 new permits, most of them to the usual suspects. Here’s where the permits were issued, and the companies that received them:
Read More “Latest OH Utica Permit Numbers, Rig Count Discrepancy”
Doddridge County | Energy Services | Industrywide Issues | MarkWest Energy | Pipelines | Summit Midstream | West Virginia

MarkWest Sells Doddridge County, WV Pipeline System to Raise Cash
June 6, 2013June 6, 2013

From the “hmm, that’s interesting” department: MarkWest Energy Partners yesterday announced they have sold their pipeline gathering system (but not their gas processing plant) in Doddridge County, WV to Summit Midstream Partners for $210 million in cash. MarkWest is the largest midstream company in the Marcellus and is quickly becoming the largest in the Utica as well. MDN previously reported on funding shortages for some of MarkWest’s projects in the Utica, a situation which we thought had been resolved in February (see MarkWest: We Just Banked $450M from EMG, Another $2.8B Available). Perhaps it was not resolved. This latest sale sure seems like MarkWest is trying to raise more money to keep some of their new projects afloat…
Read More “MarkWest Sells Doddridge County, WV Pipeline System to Raise Cash”
Energy Companies | Lease & Royalty Payments | Olympus/Huntley & Huntley | Pennsylvania | Westmoreland County

Conventional Driller Eyes Marcellus Under Murrysville, PA Park
June 6, 2013June 6, 2013

A privately-held, small conventional driller from southwestern PA near Pittsburgh, Huntley & Huntley, wants to begin drilling unconventional wells that target the Marcellus Shale. They’ve chosen Westmoreland County, PA as the place to do it. Huntley & Huntley has already leased land surrounding the Murrysville Community Park and now wants to lease the 305-acre park too. They plan to set up drill pads outside of the park, on adjoining land, and drill under the park.
Read More “Conventional Driller Eyes Marcellus Under Murrysville, PA Park”
Anti-Drilling/Fossil Fuel | Fayette County | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation

Perry Twp Anti-Driller Trots Out Same Old Lies about Drilling
June 6, 2013June 6, 2013

A local anti-drilling, anti-fossil fuel resident of Perry Township (Fayette County), PA asked the town board on Tuesday to institute a five-year drilling moratorium in the town. A quick check of the Marcellus and Utica Shale Databook 2013 (Vol. 1) shows no permits issued in Perry for drilling for the first four months of 2013, although a few permits were issued in neighboring towns. The anti-driller used the old, worn-out fear tactics of cancer-causing sand and chemicals (run for the hills!) to try and convince town officials into acting unwisely…
Read More “Perry Twp Anti-Driller Trots Out Same Old Lies about Drilling”
Anti-Drilling/Fossil Fuel | Crime | Industrywide Issues | Ohio | Statewide OH | Wastewater

Anti-Drilling Group Tries to Connect Harch to Radioactive Issue
June 6, 2013June 6, 2013

Unfortunately when someone from “our side” violates the public trust as happened with yesterday’s revelation that Harch Environmental Resources had been caught dumping frack wastewater on the ground in Ohio (see Another OH Company Shut Down for Illegal Frack Wastewater Dumping), it gives the irrational anti-fossil fuel opposition ammunition. The pro-fracking side is held to a standard of near-perfection, while the other side plays fast and loose with facts, truth and lies.

So it was no surprise to MDN that the odious and misnamed organization Food & Water Watch (FWW) issued a statement yesterday calling for…we’re not quite sure. Less regulation? More regulation? Hard to tell with that bunch what they really mean/want…
Read More “Anti-Drilling Group Tries to Connect Harch to Radioactive Issue”
Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Jun 6, 2013
June 6, 2013June 6, 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 6, 2013”
Belmont County | Crime | Energy Companies | Gulfport Energy | Industrywide Issues | Ohio | Wastewater

Another OH Company Shut Down for Illegal Frack Wastewater Dumping
June 5, 2013June 5, 2013

Yesterday the Ohio Dept. of Natural Resources (ODNR) shut down St. Clairsville (Belmont County), OH company Harch Environmental Resources saying the company was caught illegally dumping fracking wastewater on the ground in Ohio. ODNR also rapped Gulfport Energy on the knuckles but good as well. Gulfport used Harch but, according to ODNR, “failed to meet its responsibility to monitor” frack wastewater from cradle to grave. Both Harch and Gulfport are now being investigated by Ohio’s attorney general for civil and criminal charges.

The notice issued yesterday from ODNR:
Read More “Another OH Company Shut Down for Illegal Frack Wastewater Dumping”