Marcellus Drilling News

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:

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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:

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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”…

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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…

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Crime | Industrywide Issues | Lycoming County | Pennsylvania | Pipelines

Fired Pipeliner Sentenced to Year in Prison, Fined for Vandalism
April 29, 2013April 29, 2013

Henry Benton, a fired pipeline worker used a backhoe to intentionally damaged a buried pipeline in northern Lycoming County, PA on three separate occasions in June 2011. He recently plead guilty and has just been sentenced. Benton was ordered to pay $150,000 to the company installing the pipeline ($50K in damages from what he did). He’s also been sentenced to a year in prison:

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CNX Resources | CONSOL Energy | Energy Companies

CONSOL 1Q13 Update: Transition from Coal to NatGas Continues
April 29, 2013April 29, 2013

CONSOL Energy is one of the largest drillers in the Marcellus Shale. Headquartered in Pittsburgh, CONSOL is also one of the country’s largest coal producers–and the coal portion of the company weighs down its financial performance, as evidenced by their most recent financial update. Last week, CONSOL released its first quarter 2013 financial and operational update and although earnings were disappointing, Marcellus Shale gas production was up a very healthy 60% over the same period in 2012. CONSOL is transforming itself from coal company to natural gas company that concentrates on the Marcellus and Utica Shale region.

Portions of the 1Q13 update, including a very interesting breakdown of the costs to extract gas, which shows in that CONSOL sold gas for an average $4.30 per thousand cubic feet in 1Q13, of which $0.77 per Mcf was profit:

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Hydraulic Fracturing | Industrywide Issues | Regulation | Research

House Members to EPA: More Details on Fracking Research or No $$
April 29, 2013April 29, 2013

On Friday, House Republicans at a hearing of the Energy and Environment subcommittee focusing on fracking raked the EPA representative over the coals because of the agency’s so-called research that has “misled the public” on the environmental and health risks of fracking. The House spent $45 million last year on said research, and the EPA is requesting another $38 million this year. House Republicans want to know more about that research before they’ll spend another dime on it…

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Air Quality | Hydraulic Fracturing | Industrywide Issues | Regulation

EPA Says Oops, Methane Leaks Much Less than We Thought
April 29, 2013April 29, 2013

The federal Environmental Protection Agency (EPA) has “dramatically lowered” its estimate of just how much methane leaks into the atmosphere during the drilling/extracting process. The EPA considers methane a potent so-called greenhouse gas with the power to elevate the earth’s temperature.

The EPA data is “kind of an earthquake” in the drilling debate according to the Breakthrough Institute. Of course the unreasonable anti-drilling nutters like 350.org refuse to believe it, calling natural gas the energy equivalent of a “fad diet”…

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Industrywide Issues | Pipelines | Regulation

Feds Win Court Case for Pipeline Agency to Inspect NGL Plants
April 29, 2013April 29, 2013

A recent U.S. District Court case has decided that the U.S. Dept. of Transporation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) has the right not only to inspect pipelines, but also natural gas liquids (NGL) plants as well. ONEOK Partners argued that PHMSA does not have the right to inspect the pipes and equipment inside NGL plant boundaries at its facility in Bushton, Kansas. However, the District Court said “yes they do.” And so just like that, a new law is born (forget about going through proper legislative channels) and the feds now have the right to inspect NGL plants when they want to…

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Industrywide Issues | Regulation | Research

Obama Slashes EIA Budget, Nixes Annual Energy Review
April 29, 2013April 29, 2013

The Obama administration, in a juvenile, punitive exercise to punish as many Americans as possible to make a political point about the recent budget sequestration vote to reduce the rate of increase in federal spending by 2%, continues to select key agencies like the Transportation Safety Administration (TSA) and now the Energy Information Administration (EIA) to make highly visible, draconian cuts, instead of shaving a dollar or two off the monthly welfare checks for those who refuse to work.

Last week the EIA announced because of budget cuts they will no longer publish their Annual Energy Review and its companion publication, Energy Perspectives—publications they’ve issued for decades. Once again the Obama administration behaves like a petulant child…

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Energy Services | GreenHunter Resources | Industrywide Issues | Utica Shale | Wastewater

GreenHunter Water Sells First "MAG Tank" to Utica Driller
April 29, 2013April 29, 2013

GreenHunter Water is crowing about the sale of its first MAG Tank, a new above-ground storage tank that uses a unique design and is modular, letting drillers add to or subtract from the tank as needed at the drill pad site. The new tank was sold to an unidentified “large independent oil and gas producer” that will use the new tank at a multi-well Utica Shale drill pad site in southeast Ohio. MDN’s guess is that it was sold to either Chesapeake Energy or Gulfport Energy. Increasingly, open pits (so-called “frack ponds”) used to store fracking fluids and brine are being regulated out of existence, which means tanks will be required to replace them. Enter the MAG Tank.

Today’s announcement from GreenHunter:

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Best of the Rest

Marcellus & Utica Shale Story Links: Mon, Apr 29, 2013
April 29, 2013April 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: Mon, Apr 29, 2013”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Taxation

John Hanger’s Proposals for PA Shale Drilling: Tax & Regulate
April 26, 2013April 26, 2013

John Hanger is currently a lawyer in private practice in Harrisburg, but previously served as the Secretary of the PA Dept. of Environmental Protection under then Democrat Gov. Ed Rendell, prior to the Republican Tom Corbett administration. Last year, John Hanger was the featured speaker for MDN’s very first webinar (watch it here: Webinar Replay: John Hanger on Gas Drilling and Energy Choices). John is also running for the Democrat nomination for PA governor, to run against Corbett. He’s a serious guy and although the list of Dems running in PA is long, he stands a good chance of being the nominee. When John talks about shale drilling in the state and what he would do if elected governor, you need to pay attention.

John has just released a list of how he would do things differently to restore “public confidence” in the PA drilling industry, should he be elected the Keystone state’s governor this fall. Top of that list? Implement an expensive severance tax. Next in line? Heavy regulation. We’re not quite sure how taxes inspire so-called lost confidence—other than the sleazy aspect of buying off people who didn’t earn it (primarily politicians). As for regulation, air pollution seems to be at the top of his agenda. He also wants to ban drilling in all state parks. Here’s exactly what John says he’ll do if elected:

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Energy Companies | Hydraulic Fracturing | Industrywide Issues | Lenape Resources | Litigation | Livingston County | New York | Regulation

Lenape Appeals Ruling, Seeks to Overturn Frack Ban in Avon, NY
April 26, 2013April 26, 2013

Lenape Resources Inc., a small independent oil and gas company located in western NY, and its president John Holko, have “guts.” The Town of Avon, NY (Livingston County) where Lenape has a good portion of its operations voted last year to ban fracking. The poorly written law violates existing New York State law which says towns can’t regulate oil and gas drilling. It also was so broadly written it affects conventional/vertical drilling as well as unconventional/horizontal drilling. Lenape has used vertical fracking in Avon for decades (for background, see Fracking Ban in NY Town Closes Conventional Wells Too). Lenape shut down operations in Avon and sued to have the ban overturned.

Unfortunately, in March an “acting” judge in a lower court decision (misleadingly and quirkily called “Supreme” Court in NY) supported Avon’s illegal law (see Third NY Town Wins Court Approval to Ban Fracking). Lenape has received overwhelming support from the oil and gas industry and landowners, so they’ve decided to appeal the lower court ruling to the next level up in an effort to resolve this mess for all drillers in NY:

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Air Quality | Hydraulic Fracturing | Industrywide Issues | Regulation

New Federal Effort to Regulate Shale Drilling via NETL & NIOSH
April 26, 2013April 26, 2013

The feds are once again sniffing around shale gas drilling done in the individual states with an eye toward regulating it. This latest effort does not come from the EPA, which is on its own mission to regulate shale drilling via the Clean Air and Clean Water Acts, nor does it come from the Dept. of Interior with onerous new rules for fracking on federal lands. This effort comes from the Dept. of Energy’s National Energy Technology Laboratory (NETL) and the National Institute for Occupational Safety and Health (NIOSH). The two agencies have signed a “memorandum of understanding” (MOU) to “identify and monitor the potential impact of shale gas production on air quality and [mythical] greenhouse gas emissions.”

Sprinkle in important sounding phrases like “science-based,” “core competencies,” and “human health,” pull in an alphabet soup of other agencies like DOI and EPA, and voilà: A brand new way is born to regulate oil and gas drilling by the feds…

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