Marcellus Drilling News

Ethane | Industrywide Issues | Processing Plants | Statewide WV | West Virginia

Gov Tomblin Comments on WV Prospects for a Cracker Plant
May 30, 2013May 30, 2013

At a ceremony to launch the new Appalachian Petroleum Technology Training Center yesterday in Fairmont, WV, Gov. Earl Ray Tomblin was asked the perennial question by reporters: Hey, what about an ethane cracker plant? To which he responded, “I am confident we will eventually get one.” His response seems to indicate, disappointingly, a cracker plant in WV won’t happen any time soon. Of course even if an agreement were announced today, it would take several years to build even a small cracker plant.

A quick update on the status (or rather non-status) of a cracker plant in West Virginia:
Read More “Gov Tomblin Comments on WV Prospects for a Cracker Plant”
Education | Industrywide Issues | Marion County | Marshall County | Statewide WV | West Virginia

New Appalachian Petroleum Technology Training Center in WV
May 30, 2013May 30, 2013

West Virginia Gov. Earl Ray Tomblin traveled to Fairmont, WV yesterday to announce the establishment of the Appalachian Petroleum Technology Training Center. The new program will offer students either a one-year certificate or a two-year associates degree in Petroleum Technology at both Pierpont Community and Technical College (in Fairmont) and at WV Northern Community College (in Wheeling). According to officials at the ceremony announcing the new center, people can earn starting annual salaries ranging from $60,000-$100,000 for working in natural gas drilling fields. This new program will help make that happen.

A “key feature” of the program are both indoor and outdoor drilling simulation laboratories, to give students hands-on field training…

Read More “New Appalachian Petroleum Technology Training Center in WV”
Air Quality | Industrywide Issues | Pennsylvania | Statewide PA | Taxation

Drillers in PA Have Tax Advantage on New EPA Pollution Regs
May 30, 2013May 30, 2013

In the coming months and years, Marcellus (and Utica) drillers will spend more money–a lot more money–to comply with new air pollution regulations coming from the federal Environment Protection Agency (see EPA’s Draconian Air Pollution Rules Go into Effect, Sort of). Drillers will have to buy new equipment to comply. However, drillers in PA’s Marcellus Shale may be able reduce some of the high cost burden by not paying sales and use tax on pollution-control devices. Tax attorneys from Reed Smith explain:
Read More “Drillers in PA Have Tax Advantage on New EPA Pollution Regs”
Bucks County | Economic Impact | Industrywide Issues | Jobs | Pennsylvania | Supply Chain

PA Marcellus Supply Chain Company Cuts Ribbon on New Plant
May 30, 2013May 30, 2013

The PA Marcellus Shale continues to be an economic rocket ship for businesses in the supply chain–businesses that sell their products and services to the drilling industry. Latest example: MATCOR, a company that provides products and services for “cathodic protection” (corrosion resistance for pipelines, tanks and other equipment) just cut the ribbon on a new 47,000 square foot manufacturing plant in Chalfont, PA. PA’s Lieutenant Governor Jim Cawley was on hand for the celebration…
Read More “PA Marcellus Supply Chain Company Cuts Ribbon on New Plant”
Best of the Rest

Marcellus & Utica Shale Story Links: Thu, May 30, 2013
May 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: Thu, May 30, 2013”
Lease & Royalty Payments | Pennsylvania | Statewide PA

Some PA Landowners Resell Royalty Rights – Good or Bad Idea?
May 29, 2013May 29, 2013

A few weeks ago the Pittsburgh Post-Gazette ran an article about a relatively new trend happening in shale country: landowners reselling their already leased royalty rights (see the PPG story Pennsylvania landowners can get cash on spot for mineral rights). It’s sometimes referred to as “flipping” their royalty rights. In essence, it works like when a person wins the lottery but the payments are stretched over a period of years–like 15-20 years–but the winner would prefer to have their money now. There are companies that will pay the winner a discounted price for the right to receive the future payments. Maybe the winner would have ended up getting $1 million when all payments are made, but the company is willing to pay them, say, $600,000 right now. So the winner takes the money now and signs over the future payments to the company. The winner gets half or more now, the company pockets a nifty sum but has to wait to get it.

Something similar is happening with potential (not even actual) royalties from shale drilling in the Marcellus–except the stakes are higher, and the risk much greater…
Read More “Some PA Landowners Resell Royalty Rights – Good or Bad Idea?”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues

Dueling Documentaries: FrackNation v Gasland 2 Counter Screenings
May 29, 2013May 29, 2013

The fantastic, fact-filled (pro-fracking) documentary FrackNation will go toe-to-toe against the newly released, fact-deficient (anti-fracking) documentary Gasland 2 with “counter screenings” across the country, according to FrackNation creator and director Phelim McAleer. First up is a counter screening in Santa Barbara, CA later this week, on May 31. Next week: a counter screening in Binghamton, NY on June 5 (yeah!). MDN is written from Binghamton, so we look forward to the dueling documentaries that will be in town next Wednesday. Phelim McAleer will be in Binghamton for the FrackNation screening. Josh Fox will also be in town screening Gasland 2.
Read More “Dueling Documentaries: FrackNation v Gasland 2 Counter Screenings”
Barbour County | CONE Gathering | CONSOL Energy | Energy Companies | Energy Services | Noble Energy | Upshur County | West Virginia

New Pipeline, Wells Coming to Upshur & Barbour Counties in WV
May 29, 2013May 29, 2013

Drilling for natural gas in the largely dry gas West Virginia counties of Upshur and Barbour is about to pick up–a lot. How do we know? CONE Gathering, the midstream part of a joint venture between CONSOL Energy and Noble Energy, is constructing a new 24-inch, 37-mile gathering pipeline through the heart of both counties. When that pipeline is done, it will start to connect a flurry of new wells drilled by CONSOL and Noble.

Construction on the new pipeline is set to start in six to nine months and will be completed another six to nine months after that. So the new pipeline may be online as early as a year from now…
Read More “New Pipeline, Wells Coming to Upshur & Barbour Counties in WV”
Carroll County | Columbiana County | Noble County | Ohio | Statewide OH | Utica Shale

Ohio Hits Milestone: 100 Utica Wells Now Online & Producing
May 29, 2013May 29, 2013

As of May 25, Ohio has issued 686 Utica Shale drilling permits. Of the permits now issued, 335 (half) of the wells have been drilled. And of the half now drilled, Utica has 100 wells (15% of those permitted, 30% of those drilled) now online and producing natural gas, gas liquids and oil. Hitting the 100-mark is a true milestone.

During the week of May 19-25, the Ohio Dept. of Natural Resources (ODNR) issued 10 new permits. Here’s where the permits were issued, and the companies that received them:
Read More “Ohio Hits Milestone: 100 Utica Wells Now Online & Producing”
Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | Marion County | West Virginia | XTO

Judge Rescinds Request for WV Supremes to Rule on Surface Rights
May 29, 2013May 29, 2013

In early April, MDN told you about a case referred to the West Virginia Supreme Court by a federal district court judge. Judge Irene Keeley requested the WV Supreme Court rule in a case over whether or not a driller can build a drill pad on a surface owner’s land for the purpose of getting the gas underneath a neighbor’s property (for background, see District Court Judge Asks WV Supremes to Rule in Surface Rights Case).

We have a new development in the case. Judge Keeley has changed her mind and told the supremes to forget about it–at least for now. She wants the lawyers for both sides in the case to submit more “facts” before she decides on whether she’ll rule or resubmit it to the high court…
Read More “Judge Rescinds Request for WV Supremes to Rule on Surface Rights”
Economic Impact | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Statewide PA

The Most Popular Shale Play in America? The Marcellus!
May 29, 2013May 29, 2013

A recent article on The Motley Fool investors website christened the Marcellus Shale as, “The most popular natural gas play in America.” Cool. Here’s why they say that:
Read More “The Most Popular Shale Play in America? The Marcellus!”
Energy Companies | Halcon Resources | Ohio | Statewide OH | Utica Shale

Halcón Resources Issues Utica Shale Well Production Update
May 29, 2013May 29, 2013

Last week Halcón Resources issued an operational update for their Utica Shale wells. The company attempted to put a good spin on the news, but since then, some analysts have reacted with less than glowing remarks about the performance of the wells (see NGI’s Shale Daily article: Halcon’s Utica Test Wells Disappoint Analysts; EVEP Charges On).

Here is the Utica update from Halcón from last week, along with a handy map of their well locations:
Read More “Halcón Resources Issues Utica Shale Well Production Update”
Economic Impact | Hydraulic Fracturing | Industrywide Issues | Jobs | Research

ACC: Shale-Related Petrochem Projects Mean $72B Invest, 530K Jobs
May 29, 2013May 29, 2013

Last week the American Chemistry Council (ACC) released the third report in a series that examines the economic benefits of U.S. chemical industry investments linked to abundant and affordable supplies of shale gas. The latest report, titled “Shale Gas, Competitiveness, and New U.S. Chemical Industry Investment—An Analysis of Announced Projects” (full copy embedded below), analyzes 97 chemical industry investment projects that have been announced through the end of March 2013.

According to ACC, in just five short years the U.S. has gone from one of the world’s highest-cost producers of petrochemicals to one of the world’s lowest-cost producers–thanks to the miracle of hydraulic fracturing and horizontal drilling. The economic implications are as astonishing as they are profound. According to the report, the U.S. is on track for $71.7 billion in investment and more than half a million permanent new jobs due to just 97 chemical industry projects related to shale gas.
Read More “ACC: Shale-Related Petrochem Projects Mean $72B Invest, 530K Jobs”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Maryland | New York | Statewide MD | Statewide NY

Americans Against Fracking Targets/Pressures Democrat Governors
May 29, 2013May 29, 2013

With apologies to the inimitable Judy Collins: Where are the clowns, Send in the clowns, Don’t bother, They’re here…

MDN recently introduced you to the confederation of mostly small and single-member “groups” flying under the banner of Americans Against Fracking (see 100 “Americans Against Fracking” Badmouth Energy Nominee Moniz). The clowns are at it again. In an undated but recent press release (we assume from May 23), the so-called Americans Against Fracking (AAF) targeted five Democrat governors and the Democratic Governors Association–accusing the DGA of taking $3.5 million of “dirty” money from legitimate American corporations (oil and gas companies).
Read More “Americans Against Fracking Targets/Pressures Democrat Governors”
Best of the Rest

Marcellus & Utica Shale Story Links: Wed, May 29, 2013
May 29, 2013May 29, 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, May 29, 2013”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

Gov. Cuomo Delivers 2-Punch Bad News to NY Landowners
May 28, 2013May 28, 2013

Two stories from last week are harbingers of bad news for landowners and businesses who want to see fracking begin in New York: (1) Gov. Andy “Ditherer” Cuomo told the Syracuse Post-Standard editorial board he’s pushing off a decision on fracking until next year’s 2014 elections, and (2) when Gov. Ditherer was asked by public radio about whether or not fracking would be part of his attempted resurrection of upstate from the economic dead, he said “no.” He’d rather dither around with casinos and using something you never, ever thought you’d hear from a Democrat’s mouth: tax free zones.

His comments about delaying the fracking decision until 2014:
Read More “Gov. Cuomo Delivers 2-Punch Bad News to NY Landowners”