Marcellus & Utica Shale Story Links: Thu, May 30, 2013
The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading:
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Some PA Landowners Resell Royalty Rights – Good or Bad Idea?
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…
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Dueling Documentaries: FrackNation v Gasland 2 Counter Screenings
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.
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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
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…
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Ohio Hits Milestone: 100 Utica Wells Now Online & Producing
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:
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Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | Marion County | West Virginia | XTO
Judge Rescinds Request for WV Supremes to Rule on Surface Rights
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…
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The Most Popular Shale Play in America? The Marcellus!
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:
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Halcón Resources Issues Utica Shale Well Production Update
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:
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ACC: Shale-Related Petrochem Projects Mean $72B Invest, 530K Jobs
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.
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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Maryland | New York | Statewide MD | Statewide NY
Americans Against Fracking Targets/Pressures Democrat Governors
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).
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Marcellus & Utica Shale Story Links: Wed, May 29, 2013
The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading:
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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY
Gov. Cuomo Delivers 2-Punch Bad News to NY Landowners
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:
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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Luzerne County | Pennsylvania | Statewide PA
Scranton Newspaper Plays Both Sides of Fracking – For Profit?
Last week MDN told you about a non-story story written by the Scranton Times-Tribune which was immediately picked up and amplified by the AP (see AP’s Non-Story About PA Water Wells “Contaminated” by Drilling). The story tries (and fails) to say Marcellus drilling is causing a huge number of instances of methane contamination of water supplies in PA. We debunked it of course. But now we may know the real reason for that story. The owner of the Times-Tribune recently purchased an environmental services company that supposedly investigates and fixes such water-related issues. What a racket: Scare the *#$! out of people, then sell them a fix for their fears.
We get the story about this slimy setup by the Times-Tribune from a Wayne County landowner writing on the Natural Gas Now blog site:
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Energy Services | GreenHunter Resources | Industrywide Issues | Marshall County | Wastewater | West Virginia
GreenHunter to Offer “Free” Recycled Frackwater at Wheeling Plant
An article in The State Journal (WV) says the new shale wastewater treatment facility GreenHunter Water wants to build in Wheeling will grant generous discounts–in essence a rebate–to drillers who haul their wastewater to the facility and on the same trip fill up with recycled wastewater to haul back for re-use in drilling and fracking operations. GreenHunter will save money because they won’t have to pay to haul it away for disposal, and drillers get what is, in essence, free water for use in drilling. It’s a win/win for everyone:
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How Much Does Water Cost to Drill a Single Marcellus Well?
How much money do drillers spend to acquire, truck and dispose of water for drilling and fracking a single Marcellus Shale well? The exact number varies by driller. However, we get a general estimate from an article published in the Fort Worth Star-Telegram–and the number may shock you (as it did us):
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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | New York | Ontario County | Regulation
Canandaigua, NY Extends Frack Ban with Aim to Make it Permanent
The Town of Canandaigua, NY (Ontario County, between Syracuse and Rochester) voted last week to extend a moratorium on fracking. A similar moratorium signed into law by failed Binghamton Mayor Matt Ryan was tossed out by a judge last October (see NY Judge Throws Out Binghamton Fracking Moratorium). Apparently judicial precedent holds no sway with the wizards of smart on Canandaigua’s town board. They want to try their own moratorium–even though there is no drilling in New York. However, the real aim, according to the town’s director of development, is a permanent ban, i.e., the stripping away of landowners’ Constitutional rights.
Hopefully the taxpayers of Canandaigua will enjoy paying higher taxes to defend the indefensible in court:
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