Marcellus Drilling News

Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania | Statewide PA

PA Judge Rules on When Drilling “Begins” & Extends a Lease
June 5, 2013June 5, 2013

An important question for PA landowners whose leases are set to expire soon: When, exactly, does the law consider a driller has begun drilling? Sometimes drillers will do the bare miniumum to prepare a site without doing any actual drilling and declare they’ve met their lease obligation, and those very basic actions reset the clock, giving the driller more time (sometimes years) to actually drill the well. Such was the case with Range Resources and Good Will Hunting Club in southwestern PA. Last week a district court judge ruled and said the drill bit doesn’t have to touch the ground for drilling to have “commenced”…
Read More “PA Judge Rules on When Drilling “Begins” & Extends a Lease”
Energy Services | GreenHunter Resources | Industrywide Issues | Marshall County | Wastewater | West Virginia

Wheeling Councilwoman Softens Stand Against Frack Wastewater Plant
June 5, 2013June 5, 2013

When anti-drillers shut up and actually listen, they tend to learn things. Case in point: The recent tour given by GreenHunter Water of their proposed frack wastewater recycling plant along the Ohio River in Wheeling, WV (see GreenHunter Gives Tour to ‘Wheeling Water Warriors’) seems to have softened the opposition of at least one anti-drilling Wheeling City Council member–Gloria Delbrugge. After touring the proposed plant and getting answers to her questions, Delbrugge said: “It was interesting. … I’m still not sure how I feel about it. I learned a lot more that I didn’t know.” That’s quite a change in attitude from just two months ago (see Wheeling Councilwoman Vows to Prevent Frack Water Treatment Plant).

So perhaps it was “mission accomplished” with Ms. Delbrugge. As for the obtuse “Wheeling Water Warriors,” it seems their mouths remain opened and their minds remain closed…
Read More “Wheeling Councilwoman Softens Stand Against Frack Wastewater Plant”
Energy Services | Industrywide Issues | Jobs | Ohio | Schlumberger | Tuscarawas County

OH Gov. Kasich Goes Foreigner-Hunting in Strasburg
June 5, 2013June 5, 2013

Never mind that under Barack H. Obama illegal aliens continue to pour across an unprotected border along Texas, Arizona, New Mexico and California (new Democrat voters streaming across to assist in the next election). Ohio Gov. John Kasich has far more important work to do in personally securing Ohio’s borders by investigating “foreigners” (i.e. American citizens) from exotic locations like Louisiana, Arkansas, Oklahoma and yes, Texas who come to Ohio to operate oil and gas drilling equipment. Kasich is on a mission to keep them out! (See OH Gov. Kasich Continues Trash Talk Out-of-State Workers.)

Kasich’s latest excursion in foreigner-hunting led him to Strasburg (Tuscarawas County), Ohio, to Schlumberger–pronounced shlum-bur-zhay, kinda Frenchy soundin’ y’know. Inquiring minds want to know… Did Kasich find any foreigners working there?
Read More “OH Gov. Kasich Goes Foreigner-Hunting in Strasburg”
Energy Companies | EQT Corp | Industrywide Issues | Pennsylvania | Seismic Testing | Washington County

Siesmic Testing, Drilling (?) Coming to New Eagle, PA
June 5, 2013June 5, 2013

Some thumping and bumping is coming to New Eagle (Washington County), PA. EQT presented plans last night at a council meeting to conduct seismic testing in the borough in late August/early September. Seismic testing, depending on what it finds, usually precedes drilling…
Read More “Siesmic Testing, Drilling (?) Coming to New Eagle, PA”
Antero Resources | Chesapeake Energy | Energy Companies | Gulfport Energy | Ohio | Statewide OH | Utica Shale

Utica Shale Potpourri: Gulfport, Chesapeake, Antero & More…
June 5, 2013June 5, 2013

The Akron Beacon Journal‘s Bob Downing does a great job, as usual, of jamming a lot of useful facts and figures into a single article. He posted a story on Monday that we would call “Utica Shale potpourri”…a round-up of interesting tidbits from the world of Utica Shale drilling from recent analyst and investor phone calls.

Here’s Bob’s latest information feast!…
Read More “Utica Shale Potpourri: Gulfport, Chesapeake, Antero & More…”
Energy Companies | EV Energy Partners | Ohio | Statewide OH | Utica Shale

EV Energy Partners’ Extensive Utica Shale Investment
June 5, 2013June 5, 2013

As part of a larger story on investors website Seeking Alpha about EV Energy Partners, we get this interesting update about EV’s investments in drilling, midstream and even royalty investments in the Utica Shale:
Read More “EV Energy Partners’ Extensive Utica Shale Investment”
Fayette County | Hydraulic Fracturing | Industrialization | Industrywide Issues | Lycoming County | Pennsylvania | Research

USGS Report on Drilling’s Effects on PA Landscape
June 5, 2013June 5, 2013

The U.S. Geological Survey (USGS) has just released a new study titled, “Landscape consequences of natural gas extraction in Fayette and Lycoming Counties, Pennsylvania, 2004-2010” (full copy embedded below). The study is the fourth in a series by the USGS related to landscape disturbance from natural gas drilling activity. Drilling is an industrial activity and no one, least of all MDN, claims there is no impact from such an activity. There is. And it’s a good thing there’s some actual science going on by the USGS to measure some of the impacts–so we have good, objective information on which to base future decisions about where and how much drilling should take place.

The USGS in their research looks at not only unconventional (or shale) drilling, but conventional as well. It is important to consider the effects of both types of drilling together, which are often performed in the same geography…
Read More “USGS Report on Drilling’s Effects on PA Landscape”
Energy Services | Industrywide Issues | Luzerne County | Pennsylvania | Pipelines | Transco | Williams

FERC Hearing Near Wilkes-Barre for Transco Pipeline Expansion
June 5, 2013June 5, 2013

The Federal Energy Regulatory Commission (FERC), the agency tasked with approving new interstate pipeline construction, will conduct a public hearing near Wilkes-Barre, PA on Wednesday, June 12 to consider an application by Williams to expand the Transco natural gas pipeline in the area. The proposed expansion in Luzerne County, PA (and in several other locations) will allow Williams to use more Marcellus Shale gas to service an addition 2 million homes along the pipeline’s route…
Read More “FERC Hearing Near Wilkes-Barre for Transco Pipeline Expansion”
Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Jun 5, 2013
June 5, 2013June 5, 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 5, 2013”
Energy Companies | Hydraulic Fracturing | Industrywide Issues | New York | Norse Energy | Regulation | Statewide NY

Norse Energy 1Q13: Still Holding on in NY…by a Thread
June 4, 2013June 4, 2013

Did NY Gov. Andrew Cuomo kill off driller Norse Energy by refusing to allow fracking and drilling in the state? We would argue the answer to that question is “Yes!”. Of course there’s no one reason why a company sinks or swims, but clearly the root cause of Norse Energy’s impending sinking is because New York has refused to let them drill on the 130,000 acres they currently hold under lease. According to MDN’s reading of Norse’s first quarter 2013 report (full copy embedded below), Norse is very close to turning out the lights. A single politician–Cuomo–is the person most responsible.
Read More “Norse Energy 1Q13: Still Holding on in NY…by a Thread”
Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Regulation | Statewide NY

Landowner, Norse File Appeal with NY’s Highest Court on Town Bans
June 4, 2013June 4, 2013

In a very high stakes game, a New York landowner and Norse Energy have rolled the dice and last week asked New York’s highest court, the New York York Court of Appeals, to accept their appeal of two lower court losses on the issue of so-called home rule. A copy of both appeals are embedded below.

In early May, a mid-level NY court upheld a mid-level court ruling that says local towns can willy nilly ban all drilling at the pleasure of a simple majority vote at the town board level (see Breaking: NY Court Upholds Local Town Frack Bans). Anti-drillers call it “democracy” and a victory for self-determination. MDN calls it unchecked mob rule because it allows a simple majority to violate the Constitutional rights of the minority–in this case landowners.
Read More “Landowner, Norse File Appeal with NY’s Highest Court on Town Bans”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Washington County

Local Newspaper Kind-of Turns Against PA Rep White over Fake IDs
June 4, 2013June 4, 2013

In the curious case of Jesse White, the PA House member who used fake online IDs to smear his own pro-drilling constituents who disagreed with his positions (see How the Mighty Have Fallen: PA Rep White Admits Guilt, Not Sorry), the local newspaper of record in White’s district, the Washington Observer-Reporter, has penned an editorial that has the feeling of (our words) “we really liked Jesse, but his latest tirade has gone too far, so we now have to throw him under the bus, dang it!” They so wanted his tough talk on drilling to be accurate, good and righteous, but now with White’s unapologetic apology, which is to say his admission that (after lying about it) that he did use fake online IDs to attack his pro-drilling constituents, all of his anti-drilling rants are utterly discredited. Dang it.

The Observer-Reporter (O-R) amusingly compares Jesse White to the utterly discredited New York City politician Anthony Weiner, who famously tweeted pictures of his, well, wiener to some online dollies…
Read More “Local Newspaper Kind-of Turns Against PA Rep White over Fake IDs”
Ashtabula County | Economic Impact | Geauga County | Industrywide Issues | Mahoning County | Ohio | Pipelines | Portage County | Processing Plants | Statewide OH | Trumbull County | Utica Shale

Ohio Group Promotes NE Counties for New Midstream Projects
June 4, 2013June 4, 2013

A group of business and political leaders from northeastern Ohio have crafted and are now marketing a plan to bring midstream infrastructure to the Mahoning Valley. A new report written and distributed by this committed group, titled “Mahoning Valley Midstream” (full copy embedded below) points out that currently there are no wet natural gas gathering lines in Trumbull, Mahoning, Geauga, Portage, or Ashtabula counties. This enterprising group has an ingenious plan to remedy that situation: repurpose abandoned or partially used rail lines, as well as use a web of strategic, divided (limited access) highways that converge on the closed “rust belt” steel mills.

They even have a site picked out for an ethane cracker plant…
Read More “Ohio Group Promotes NE Counties for New Midstream Projects”
Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Range Resources Corp | Washington County

Cecil Township Re-Votes to Not Meet with Range Resources
June 4, 2013June 4, 2013

In the on-again, off-again antics of Cecil Township (Washington County), PA, things are “off again” when it comes to having a civil, private meeting with Range Resources to try and resolve the lawsuits Range filed against the town. Supervisors last night re-voted on a proposed meeting they previously approved (see When We Get Behind Closed Doors…Range Resources & Cecil Twp). One of the supervisors, Andy Schrader, was stomping mad about the vote to meet, behaving like a petulant child (see Cecil Twp Dysfunctional Family Feud over Range Meeting). Little Andy finally got his way last night…
Read More “Cecil Township Re-Votes to Not Meet with Range Resources”
Chesapeake Energy | Energy Companies | Gulfport Energy | Halcon Resources | Ohio | Statewide OH | Utica Shale

3 Important Questions Asked/Answered about Utica Shale Potential
June 4, 2013June 4, 2013

Investors website The Motley Fool does a good job of asking, and answering, three important questions about the Utica Shale play, especially in light of the recent 2012 production report issued by the Ohio Dept. of Natural Resources.

The Fool article takes a look at: (1) Which other play(s) is the Utica like? (2) Were the 2012 numbers really a disappointment? And, (3) Why are producers holding back production?…
Read More “3 Important Questions Asked/Answered about Utica Shale Potential”
Energy Services | Stallion Oilfield

Stallion Oilfield Looks for $350M Loan, Moody’s Not Impressed
June 4, 2013June 4, 2013

Stallion Oilfield Holdings, an oilfield services company that provides wellsite support, completion, production and logistics services to onshore oil and gas drillers, announced yesterday they’re shopping for a $350 million loan (due payable in 2018) to pay off other loans, issue stockholder dividends, and keep the lights turned on. Stallion operates in the Marcellus and Utica Shale, among other plays. The company filed for bankruptcy protection in 2009. They also had their hands out last November, looking for a half billion dollars (see Stallion Oilfield Holdings Seeks Half Billion Dollar Loan).

Moody’s Investors Service has taken a dim view of this latest appeal, giving the proposed loan a low rating–B3, which means: “Judged as being speculative and a high credit risk.” B3 is just one step above Caa1, which is “poor quality and very high credit risk.”
Read More “Stallion Oilfield Looks for $350M Loan, Moody’s Not Impressed”