Marcellus Drilling News

Crime | Industrywide Issues | Landfills | Mahoning County | Ohio | Wastewater

Alleged New Case of Illegal Shale Waste Dumping in OH
May 1, 2013May 1, 2013

An Ohio company close to the Pennsylvania border has been accused of illegally accepting and disposing of (burying) drilling wastewater and drill cuttings. Since the landfill where the material is buried sits close to the Mahoning River, there is a concern that some nasty substances may have or are leaking into the river.

An alphabet soup of OH state and federal government agencies served Soil Remediation Inc. in Lowellville (Mahoning County), OH with a search warrant early last week…
Read More “Alleged New Case of Illegal Shale Waste Dumping in OH”
Best of the Rest

Marcellus & Utica Shale Story Links: Wed, May 1, 2013
May 1, 2013May 1, 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 1, 2013”
Chesapeake Energy | Energy Companies | Lease & Royalty Payments | Pennsylvania | Southwestern Energy | Statewide PA

Southwestern Energy Buys 162K PA Marcellus Acres from Chesapeake
April 30, 2013April 30, 2013

Southwestern Energy announced yesterday that they’ve picked up 162,000 Marcellus Shale acres in northeastern Pennsylvania from Chesapeake Energy for $93 million. Along with the acreage comes 17 producing (1.2 net) wells with a (very small) 2 million cubic feet of net production per day. The Southwestern purchase nearly doubles the amount of their Marcellus Shale acreage.

The first interesting thing to MDN about the deal is that all of this new acreage–as well as all of Southwestern’s existing Marcellus acreage–is squarely in the “dry gas” area of NE PA. Obviously Southwestern, like Cabot Oil & Gas, believes there is money to be made in the dry gas window of the play. The second interesting thing is that Southwestern got the acreage at the fire sale price of $574 per acre…
Read More “Southwestern Energy Buys 162K PA Marcellus Acres from Chesapeake”
Energy Companies | Pennsylvania | Susquehanna County | WPX Energy

PA DEP Says Drilling Did NOT Contaminate Water in Franklin Forks
April 30, 2013April 30, 2013

As Paul Harvey used to say, here is “the rest of the story” about the contaminated well water for three homes in Franklin Forks (Susquehanna County), PA… In December 2011, three families complained to the PA Dept. of Environmental Protection (DEP) that their well water looked and smelled like it was polluted. Since WPX was drilling natural gas wells nearby at the time, and since two of those wells had been cited by the DEP as having substandard well casings, the assumption was the drilling activity was polluting the water wells (see PA DEP Asks WPX to Help Families with Water/Methane Issues for background).

The rest of the story: After a 16-month thorough investigation, the DEP announced yesterday what residents of Susquehanna County already know–the water in Franklin Forks (and indeed most of Susquehanna County) sucks and has sucked for generations. The DEP found, contrary to the bleating of celebrities, that drilling did NOT pollute the Franklin Forks wells. Those wells are polluted from natural causes, the same natural causes that closed a nearby trailer park more than a decade ago (BGD, before gas drilling)…
Read More “PA DEP Says Drilling Did NOT Contaminate Water in Franklin Forks”
Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Susquehanna County

Cabot Monster Well in NE PA Yields 8 Bcf in 667 Days
April 30, 2013April 30, 2013

Energy analyst and Seeking Alpha blogger Richard Zeits listened in to the recent Cabot Oil & Gas investor’s conference call and came away with some mind-blowing numbers. The bottom line from the call and from Zeits’ analysis is that Cabot has indeed found a “super-productive” location in Susquehanna County, PA where they own leases on about 200,000 acres. New wells they’ve recently drilled prove that all of their acreage is in this sweet spot.

One startling find by Zeits: A well drilled by Cabot in Susquehanna County has, in just 667 days, produced a cumulative 8 billion cubic feet of natural gas–a single well! That equates to an average of 12 million cubic feet of natural gas per day from that one well. Astonishing. (No wonder Southwestern just picked up an additional 51,000 acres from Chesapeake in Susquehanna County earlier this week, for an average of $574 per acre. Chesapeake was taken to the cleaners).

Here’s some of Zeits’ analysis of the Cabot call, with lots of facts and figures:
Read More “Cabot Monster Well in NE PA Yields 8 Bcf in 667 Days”
Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell | Statewide PA

Did PBT “Badger” PA Gov Corbett on Shell Cracker Plant Date?
April 30, 2013April 30, 2013

Yesterday MDN told you about comments from PA Gov. Tom Corbett that seemed to indicate he’s changed his story about when a final final final decision may come from Shell about whether or not they will move forward with building an ethane cracker plant in Monaca, PA (see Corbett Story Changes: Decision on PA Cracker Plant Delayed Again). However, Corbett’s may not be the only story that got changed. According to a spokesman for the governor, the editorial board of the Pittsburgh Business Times “badgered” Corbett into forecasting the 2014 date when a decision may be made, and then shaded their coverage to make it seem as though Corbett has changed his story…

Read More “Did PBT “Badger” PA Gov Corbett on Shell Cracker Plant Date?”
Ethane | Industrywide Issues | Processing Plants | Statewide WV | West Virginia

WV Says Deal for Ethane Cracker Coming This Year
April 30, 2013April 30, 2013

The race to secure an ethane cracker between Pennsylvania, Ohio and West Virginia continues. Last week, WV’s Secretary of Commerce, Keith Burdette, said he is “100% certain” that WV will have a deal for an ethane cracker plant signed sometime this year. Bluster or quiet confidence? We’d bet the later if we were betting…

MDN friends from the excellent Gas Business Briefing attended a conference last week in WV and filed this report:
Read More “WV Says Deal for Ethane Cracker Coming This Year”
Ohio | Statewide OH | Utica Shale

OOGA Rep Says Bloomberg Wrong About OH Shale Boom
April 30, 2013April 30, 2013

The executive vice president of the Ohio Oil & Gas Association, Thomas Stewart, isn’t buying the Bloomberg News theory that Ohio’s Shale boom is over before it’s really even begun (see Bloomberg Says Ohio Utica Shale is Gassy, Not Oily). Stewart says the oil is there but may present some challenges in retrieving it–challenges that technology can solve.

Comments from Stewart, including his view on where the Utica “fairway” is located:
Read More “OOGA Rep Says Bloomberg Wrong About OH Shale Boom”
Cambria County | Chevron | Energy Companies | Pennsylvania

Chevron to Start Marcellus Drilling in Cambria County, PA
April 30, 2013April 30, 2013

Chevron is about to ramp up drilling on some of their half million plus Marcellus Shale acres located in Cambria County, PA. Construction will begin this summer and drilling will begin in the fall at the Goldenrod Sportsmen’s Club in Jackson Township:
Read More “Chevron to Start Marcellus Drilling in Cambria County, PA”
Accidents | Energy Companies | Industrywide Issues | Lycoming County | Pennsylvania | Pennsylvania General Energy

PA DEP Fines PGE for Spills, Discharges in Lycoming County
April 30, 2013April 30, 2013

The PA Dept. of Environmental Protection (DEP) has fined Pennsylvania General Energy Co. $125,500 for two different sets of violations in Lycoming County, PA that occurred in 2011 and 2012. The fines were for three spills and for excessive sediment discharges into a local creek.

The details from the DEP:
Read More “PA DEP Fines PGE for Spills, Discharges in Lycoming County”
Best of the Rest

Marcellus & Utica Shale Story Links: Tue, Apr 30, 2013
April 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: Tue, Apr 30, 2013”
Beaver County | Economic Impact | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell | Statewide PA

Corbett Story Changes: Decision on PA Cracker Plant Delayed Again
April 29, 2013April 29, 2013

In what looks to be like more backpedaling, PA Gov. Tom Corbett told the Pittsburgh Business Times on Friday he now doesn’t expect a final decision on whether Shell will build a new $2 billion ethane cracker plant in Monaca, PA until 2014. Last December he said Shell needed another six months (until the end of June) for lawyers “dotting I’s and crossing T’s” (see Gov Tom Corbett: Shell Cracker Plant in PA Not “Off the Rails”). Now the story is, “I’ve always thought it would be early next year,” meaning 2014. Hmmm. Then why didn’t he say that last December?

From the Pittsburgh Business Times:

Read More “Corbett Story Changes: Decision on PA Cracker Plant Delayed Again”
Forced Pooling | Industrywide Issues | Ohio | Statewide OH

Ohio Force Pooling Requests: 4 Granted, 5 Pending, 2 Other
April 29, 2013April 29, 2013

An extensive article on “unitization” (what MDN calls “forced pooling”) in Ohio appeared in the Sunday Youngstown Vindicator. The article gives a good overview of the history of unitization in Ohio, along with current requests pending with the ODNR.

The article begins this way:

Read More “Ohio Force Pooling Requests: 4 Granted, 5 Pending, 2 Other”
Antero Resources | Belmont County | Energy Companies | Lease & Royalty Payments | Ohio | Utica Shale

OH School District Gets $400K Lease Bonus from Antero Resources
April 29, 2013April 29, 2013

The Barnesville Exempted Village School District in Belmont County, OH has just signed a lease with Antero Resources for $5,700 per acre plus 20% royalties. Antero also kicked in an extra gift of $37,500 making the grand total for the lease bonus just over $400,000 for the school district. The school’s superintendent Randy Lucas said Antero plans to start drilling “sometime over the next two years”…

Read More “OH School District Gets $400K Lease Bonus from Antero Resources”
Economic Impact | Energy Services | Industrywide Issues | Kinder Morgan | Ohio | Processing Plants | Tuscarawas County

New Processing/Fractionation Plant Coming to Tuscarawas County OH
April 29, 2013April 29, 2013

MDN first told you about a new natural gas processing and fractionation plant that may be coming to Tuscarawas County, OH back in early March (see Kinder Morgan to Build Processing & Fractionation Plants in OH?). Good news for Ohioans—Kinder Morgan has confirmed that the necessary EPA permits have been secured and once they have customers lined up, they plan to move forward with construction…

Read More “New Processing/Fractionation Plant Coming to Tuscarawas County OH”
Industrywide Issues | Ohio | Regulation | Statewide OH

Ohio Moves One Step Closer to Quarterly O&G Production Reports
April 29, 2013April 29, 2013

It looks like Ohio may finally move from reporting oil and gas production every 12 months to every three months. A provision in the state budget (passed by the Ohio House nearly two weeks ago) will require drillers in Ohio to provide production numbers every three months. According to the head of Ohio’s Oil and Gas Resources division at the Dept. of Natural Resources, Rick Simmers, drillers have dropped their opposition to more frequent reporting…

Read More “Ohio Moves One Step Closer to Quarterly O&G Production Reports”