Marcellus Drilling News

Anti-Drilling/Fossil Fuel | Energy Companies | Hydraulic Fracturing | Industrywide Issues | New York | Norse Energy | Otsego County | Regulation | Statewide NY | Tompkins County

Breaking: NY Court Upholds Local Town Frack Bans
May 3, 2013May 3, 2013

It is a day of disappointment, but also a day of resolve, for landowners in New York State. Yesterday, the NY Supreme Court Appellate Division in a 4-0 decision ruled towns have the right to ban hydraulic fracturing and natural gas drilling. MDN has previously chronicled the long fight against a simple majority of three town board members unilaterally stripping away the rights of all property owners in a township to allow natural gas drilling. The matter came to a head when lawsuits were filed in two of those cases, the towns of Dryden (Tompkins County, near Ithaca), and Middlefield, (Otsego County, near Cooperstown)–see Town Frack Ban Cases Heard in NY Supreme Court Appellate Division for important background information.

The 77,000-member Joint Landowners Coalition of New York, whose lawyer, Scott Kurkoski, represented a JLCNY member in the Middlefield case, has responded to the loss (below) by saying they intend to appeal the decision to the next, and highest, court in New York–the Court of Appeals. MDN has a copy of the court’s decision (embedded below), reaction from the near-orgasmic anti-drilling eco-nuts, and our view of what it all means for the future of drilling in NY…
Read More “Breaking: NY Court Upholds Local Town Frack Bans”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | New York | Sullivan County

Mark Ruffalo Invited to Upstate NY Screening of FrackNation
May 3, 2013May 3, 2013

MDN received the following notice from documentary filmmaker Phelim McAleer, creative force behind the excellent FrackNation documentary. Phelim will be speaking at a screening of FrackNation in Sullivan County, NY on May 8, and he (and the residents of Sullivan County) have invited movie star Mark Ruffalo (one of his many homes is located in Sullivan County) to attend the screening…
Read More “Mark Ruffalo Invited to Upstate NY Screening of FrackNation”
Industrywide Issues | Ohio | Pennsylvania | Pipelines | Statewide OH | Statewide PA | Statewide WV | West Virginia

List of “Things to Consider” Before You Sign a Pipeline Lease
May 3, 2013May 3, 2013

The rapid ramp-up in Utica Shale drilling in Ohio, and Marcellus drilling in Pennsylvania and West Virginia, has meant a shortage of “infrastructure” like pipelines to carry all of the bountiful shale gas being mined. Infrastructure development–pipelines and processing plants–are not being built at a furious pace across both the Utica and Marcellus–but particularly in the Utica. That means a pipeline company landman may come knocking on your door, if you’re a landowner. What are the things to watch out for, before you sign a lease to allow a pipeline?

The attorneys at Bricker & Eckler (with several offices in Ohio) have a handy list of “things to consider” before you sign on the dotted line to allow a pipeline across your property…
Read More “List of “Things to Consider” Before You Sign a Pipeline Lease”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Regulation | UGI Energy Services | Wyoming County (PA)

Anti-Drillers Try to Stop Pipeline Connector in NE PA
May 3, 2013May 3, 2013

Even though a pipeline connection, known as a “gate station,” has existed in Wyoming County, PA (northeastern part of the state) for the past 50 years, apparently no one noticed it existed (see Back to Kindergarten: UGI Explains NatGas Gate Stations). A small number of anti-drillers oppose a plan by local utility company UGI to build a second pipeline connector/gate station in the area. It’s not a compressor plant–just a connector. And even though it will lower their natural gas bills, they don’t want it. Why? They (erroneously) believe it’s a back-door way for UGI to build a new compressor plant in the area, apparently:
Read More “Anti-Drillers Try to Stop Pipeline Connector in NE PA”
Economic Impact | Industrywide Issues | Ohio | Statewide OH

OH Company Builds Units to Convert NatGas to Diesel
May 3, 2013May 3, 2013

Ohio company Velocys, located in Plain City, just outside Columbus, has just opened for business and the impact for both the Utica and Marcellus Shale region could be huge. The company makes machines (based on 1920s technology from Germany) that convert natural gas into diesel fuel. Right now diesel is about 6 times more expensive than an equivalent amount of natural gas. Liquefied natural gas (LNG) is starting to come on strong–witness UPS’ announcement last week to purchase 700 new tractor trailers that run on LNG (see UPS to Grow NG Fleet with Additional 700 LNG Tractor Trailers). That’s certainly one very necessary solution.

However, Velocys believes there’s a market to convert natural gas to diesel to feed the already existing market of millions of diesel engines on the roads today. And they’re right…
Read More “OH Company Builds Units to Convert NatGas to Diesel”
Energy Companies | Southwestern Energy

Southwestern Energy 1Q13: Marcellus Production Exceeds 400 Mmcf/d
May 3, 2013May 3, 2013

The parade of first quarter earnings/operations updates continues. Southwestern Energy reported yesterday that their Marcellus Shale production surpassed 400 million cubic feet per day in April, the first time that has happened. Select portions of their update, including a detailed section on their Marcellus drilling program:
Read More “Southwestern Energy 1Q13: Marcellus Production Exceeds 400 Mmcf/d”
Energy Companies | Halcon Resources | Utica Shale

Halcón Resources 1Q13: Drilled & Completed 4 Utica Wells
May 3, 2013May 3, 2013

Halcón Resources, a Utica Shale driller, issued their first quarter financial and operational update yesterday. With regard to the Utica, the company reports they operated two drilling rigs in Ohio and Pennsylvania (yes, there is Utica in PA too!), drilling and completing four wells in 1Q13.

Select portions of the Halcón update:
Read More “Halcón Resources 1Q13: Drilled & Completed 4 Utica Wells”
Energy Companies | Seneca Resources

National Fuel/Seneca FY 2Q13: Marcellus Production Up 57%
May 3, 2013May 3, 2013

National Fuel just finished the second quarter of their fiscal year–what we would call the first quarter of the calendar year–which ended March 31. Yesterday, National Fuel (and their Marcellus drilling subsidiary Seneca Resources) filed their FY 2Q13 fiscal and operating update. Earnings for the company were up an impressive 27% year over year. Even more impressive, natural gas and crude oil production for Seneca Resources (in the Marcellus Shale) was up 57% year over year. They attribute it to Seneca’s “strong well results in Lycoming County” (PA).

Here’s the full report issued by National Fuel yesterday:
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Best of the Rest

Marcellus & Utica Shale Story Links: Fri, May 3, 2013
May 3, 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: Fri, May 3, 2013”
Economic Impact | Hydraulic Fracturing | Industrywide Issues | Jobs | New York | Regulation | Statewide NY

Cuomo: We’re Not Touching the Frack Issue During Economic Talks
May 2, 2013May 2, 2013

Logic has taken a vacation in Albany, NY. Gov. Andrew “The Ditherer” Cuomo is holding closed-door meetings to discuss how to spark economic development in the most taxed, most regulated, least business-friendly and most welfare beneficent state in the country (does that give you a hint why we’re in trouble?).

The one thing Cuomo and the “brains” sitting around the table are not discussing–the one that that would create thousands of new jobs and create billions in economic impact throughout the state? Fracking for clean-burning natural gas…
Read More “Cuomo: We’re Not Touching the Frack Issue During Economic Talks”
Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

Cuomo Underling Shah: “No Timetable” on Fracking Decision
May 2, 2013May 2, 2013

It’s now painfully obvious for all to see that NY Gov. Andrew Cuomo has instructed his underlings–DEC Commissioner Joe Martens and Health Commissioner Nirav Shah–to drag their feet on releasing a recommendation with regard to fracking. Starting in February and then again in March, Shah said he anticipated being done with his review “in a few weeks” (see NY Health Com. Nirav Shah Says Fracking Health Review Almost Done).

This week? Shah says there’s “no timetable” for a decision. Obviously Shah has already completed his review and likely discussed it with Andy the Ditherer and Andy, just like dear old dad, just doesn’t want to commit. Too bad–this issue has ruined any small chance Cuomo may have had in the 2016 presidential sweepstakes. Here’s the latest “I’m covering my boss’ rear-end” statements from Shah:

Read More “Cuomo Underling Shah: “No Timetable” on Fracking Decision”
Chesapeake Energy | Energy Companies

Chesapeake 1Q13: Marcellus Production Hits 2 Bcf/d, 14 Utica Rigs
May 2, 2013May 2, 2013

Chesapeake Energy released their first quarter 2013 financial and operational update yesterday. The big news, for MDN readers, is that Chesapeake has now hit 2 billion cubic feet of production per day (Bcf/d) from their Marcellus Shale acreage. That’s a huge milestone. They also are still gung ho on the Utica Shale operating 14 drilling rigs in the Utica, and say they’re just waiting for infrastructure (pipelines and processing plants) to catch up and then production will take off for the Utica.

Revenue for the company is up by 35% to $1.1 billion in 1Q13, although what’s left over for common shareholders was a pitiful $15 million (2 cents per share). Still, the numbers overall are looking much better, and new Chesapeake CEO Steve Dixon says the company is on track to sell off another $4-$7 billion in assets this year in their attempt to reduce the high debt load.

Below are select portions of the Chesapeake 1Q13 update, with MDN comments sprinkled in to provide context…
Read More “Chesapeake 1Q13: Marcellus Production Hits 2 Bcf/d, 14 Utica Rigs”
Accidents | Energy Companies | Industrywide Issues | Pennsylvania | Susquehanna County | WPX Energy

PA DEP Not Releasing Report on Franklin Forks Contamination
May 2, 2013May 2, 2013

If you thought (like we did) that the matter of potential water well methane contamination in Franklin Forks, PA was put to rest with the recent announcement by the state Dept. of Environmental Protection (DEP) that drilling is not to blame, you would be wrong. In December 2011, three families in the Franklin Forks (Susquehanna County) area complained their well water had gone bad. Nearby drilling by WPX was to blame, according to the homeowners. But after an exhaustive 16-month investigation, the state DEP announced earlier this week that WPX’s drilling is not to blame (see PA DEP Says Drilling Did NOT Contaminate Water in Franklin Forks). The DEP said the same natural conditions that closed down a nearby trailer park more than a decade ago was the cause. Case closed, right?

No. And here’s why… According to at least one news source, the DEP refuses to release a copy of the report that discloses their findings and the methodology they used to arrive at the conclusions they did. You can bet that anti-drillers will attack this like vultures picking over a dead carcass. Here is what the Epoch Times is reporting about the “missing report”:
Read More “PA DEP Not Releasing Report on Franklin Forks Contamination”
Allegheny County | Chevron | Economic Impact | Energy Companies | Industrywide Issues | Jobs | Pennsylvania

Chevron to Build New (Big) Regional HQ in Pittsburgh Suburb
May 2, 2013May 2, 2013

Chevron has just stepped up its commitment to the Marcellus (and Utica) Shale region by purchasing 61 acres, including a Kmart that’s about to close, in Moon Township, PA, a suburb of Pittsburgh. Rumor has it that Chevron will build a new 350,000 square foot office complex that will house upward of 1,750 employees when it’s done. They currently employ around 650 employees in the region, housed at several locations.

Here’s the details that are known:
Read More “Chevron to Build New (Big) Regional HQ in Pittsburgh Suburb”
Economic Impact | Erie County | Industrywide Issues | Jobs | Pennsylvania

NW PA Hose Company Expands, Hires 35 People for Marcellus Work
May 2, 2013May 2, 2013

Yet another example of how the Marcellus and Utica Shale supply chain is putting people back to work–this time in northwestern Pennsylvania’s Millcreeek Township (Erie County). All-American Hose recently hired 25 full-time employees and 10 temps and has reopened a closed plant in the process. Why? To manufacture polyurethane hoses used in the Marcellus and Utica Shale…
Read More “NW PA Hose Company Expands, Hires 35 People for Marcellus Work”
Energy Companies | Rex Energy

Rex Energy 1Q13: Production Up 24%, Revenue Up 40%
May 2, 2013May 2, 2013

Rex Energy Corporation, headquartered in State College, PA, released their first quarter 2013 operational and financial update on Tuesday. MDN calls Rex the “little oil & gas company that not only could, but has”–has made a success in the low-price natural gas environment, that is. Rex mostly drills in the PA Marcellus and the OH Utica Shale regions, with some conventional drilling in Illinois.

Rex reports revenue was up 40% in 1Q13 over the same period in 2012, and production volumes were up 24% over the same period last year. Very impressive. Rex is forecasting they will bring 21 new Marcellus wells and 12 new Utica Shale wells online in 2013. Here’s the complete 1Q13 update from Rex:
Read More “Rex Energy 1Q13: Production Up 24%, Revenue Up 40%”