Marcellus & Utica Shale Story Links: Mon, Mar 18, 2013
The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading:
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OH Utica’s “Best Oil Window” Boundaries Taking Shape
With more and more wells being drilled in the Ohio Utica Shale, drillers are starting to zero in on the best places to drill for oil.Where is the “best oil window” in the Utica/Point Pleasant? A recent article describes its boundaries…
Read More “OH Utica’s “Best Oil Window” Boundaries Taking Shape”
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USGS: Best Places in NY Southern Tier to Get Water for Fracking
The U.S. Geological Survey (USGS) has identified three large-scale groundwater supply sources along the Susquehanna River in Broome and Chenango counties (New York State) in an announcement about a newly completed study (full copy of the study is embedded below). The USGS says these three potential groundwater supply locations are in areas where there may be future shale gas drilling activities.
Essentially, the USGS has provided the drilling industry and regulators at the DEC and SRBC with a helpful “best places to get water for fracking” guide…
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2nd Forced Pooling Order in OH Utica, Landowner Gets No Bonus
For the second time since the Utica Shale drilling boom began, the Ohio Dept. of Natural Resources (ODNR) Division of Oil and Gas Resources Management (DOGRM) has issued a forced pooling order (in Carroll County). In Ohio it’s called a “unitization order.” No matter what you call it, it means that the driller—Chesapeake Energy—will be allowed to drill under someone’s property that doesn’t want it because a majority of the surrounding property (88% in this case) is leased and the property in question is needed to complete a drilling unit.
Not only is this news because it’s only the second unitization order issued for Utica Shale drilling, it’s news because in this case DOGRM is not forcing Chesapeake to pay a leasing bonus to the reluctant landowner—a change from the first unitization order:
Read More “2nd Forced Pooling Order in OH Utica, Landowner Gets No Bonus”
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Energy Services | GreenHunter Resources | Industrywide Issues | Marshall County | Ohio County | Wastewater | West Virginia
GreenHunter Buys Barge Terminal in Wheeling for Frack Wastewater
Yesterday, GreenHunter Water announced they have purchased a 10.8 acre barge terminal site in Wheeling, WV that sits along the Ohio River. GreenHunter plans to convert the former gasoline storage facility into a shale wastewater handling and storage facility that will recycle wastewater so drillers can reuse it, or ship it by barge to other locations (like injection wells) for disposal. The GreenHunter announcement raises a number of questions and observations. MDN will add its analysis below.
First, the announcement from GreenHunter issued yesterday:
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NatGas Prices Inching Higher, $4 Mcf This Summer?
This is not a story about the Marcellus/Utica per se, but it has a direct bearing on landowners (how big their royalty checks are) and the drilling industry (whether or not they’re willing to sink a hole) in Appalachia.
The enormous success of the shale drilling industry has been its own worst enemy in one respect: Demand for natural gas as not kept pace with the enormous flood of new supplies, and that has led to a commodity price “collapse” since 2011. Even though domestic supplies of natural gas are now at an all-time high, prices are once again inching up and it’s expected the commodity price will hit $4 per thousand cubic feet (Mcf) sometime this year—perhaps this summer. Why? The switch from coal to natgas in electric power generating plants…
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Accidents | Carrizo Oil & Gas | Energy Companies | Industrywide Issues | Pennsylvania | Wyoming County (PA)
Carrizo Problem Fracking NE PA Well, Evacuates 3 Nearby Families
Carrizo Oil & Gas temporarily lost control of a Marcellus Shale gas well they were fracking in Wyoming County, PA on Wednesday. The company was in the 23rd stage Wednesday about 6:00 pm when wastewater and brine started to flow at a rate of about 800 gallons per minute—too fast to control. The concern was that natural gas (methane) would start pouring out of the hole too, so Carrizo and a specialty well control crew worked through the night and by early Thursday had the problem contained, and by Thursday afternoon they had the well capped. No methane was released into the atmosphere and the wastewater was contained.
During the episode three families that lived within 1,500 feet of the well were evacuated as a precaution. They returned on Thursday. Here’s the details about the accident as we know them:
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Beck Energy | Belmont County | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Monroe County | Ohio | XTO
XTO, Beck Energy Appeal OH Case Allowing Lease Termination
Earlier this week MDN told you about 600-700 landowners in Ohio who won a lawsuit allowing them to terminate leases held with Beck Energy and XTO Energy (see OH Lawsuit Victory: 600-700 Landowners Can Terminate Beck, XTO Leases).
Beck and XTO are none too happy with the decision and have appealed it to the Ohio Court of Appeals:
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Marcellus Supply Chain: How Credit Union Targets PA Shale Workers
MDN always marvels at the innovative ways businesses figure out how to market and do business in the Marcellus and Utica Shale drilling industry. Often referred to as “the supply chain,” businesses doing business in the shale industry is an often overlooked success story. We often hear about restaurants and hotels seeing a large increase in business, but numerous other businesses also benefit. Case in point: Utilities Employees Credit Union.
UECU has begun new marketing strategies to attract customers from those working in the Pennsylvania Marcellus Shale industry. Here’s their strategies to increase business from the Marcellus:
Read More “Marcellus Supply Chain: How Credit Union Targets PA Shale Workers”
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Columbia Pipeline Group | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Statewide PA
Columbia’s SE PA Pipeline Project Includes Compressor Upgrade
Columbia Gas Transmission, a subsidiary of Nisource, has applied to the Federal Energy Regulatory Commission (FERC) to add 16 miles of new pipeline in southeastern PA and NJ to help fire a natural gas-fired electricity generating plant with cheap Marcellus Shale gas. As part of that project, Columbia is upgrading a compressor station in Forks Township (Northampton County), PA. The interesting thing about the upgrade? The compressor station’s next door neighbors don’t mind at all…
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Marcellus & Utica Shale Story Links: Fri, Mar 15, 2013
The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading:
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JLCNY Issues Update, Begins Fundraising to Finance NY Lawsuit
The Joint Landowners Coalition of New York (JLCNY), an organization representing 77,000 landowners with over 1 million acres, issued an extensive update late yesterday on: the status of their lawsuit (which is proceeding); their need for fundraising to finance the lawsuit; and the rationale/strategy for the lawsuit. Even though recent comments by Gov. Cuomo offer a “tease” that he may soon approve fracking, the JLCNY says it’s moving forward with the lawsuit anyway, essentially telling Cuomo “we’ll believe it when we see it.”Landowners in NY have had too many broken promises and too much double-speak from Albany politicians (see NY Assemblywoman Donna Lupardo: Fracking Friend or Foe?). Through the JLCNY, landowners are now acting to protect their Constitutional property rights. It seems Cuomo, Lupardo and other Democrats have miscalculated when it comes to NY landowners and they will now pay the political and economic price. Here’s the entire update from the JLCNY, worth the read:
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Allegheny County | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Sunoco Logistics
PA Town First to Try Regulating Pipelines – Will Ordinance Stand?
On Monday, supervisors for Forward Township (Allegheny County), PA unanimously approved what is believed to be the first (and perhaps an illegal) zoning ordinance targeting and extensively regulating both gathering and transmission pipelines in the township. Sunoco is building a low-pressure liquid-gas transmission pipeline from a processing plant in Houston, Washington County that passes through about 275 properties in Forward to a distribution point in Delmont, Westmoreland County.
The town solicitor has said existing pipelines are not affected by the new ordinance. Problem is, interstate transmission lines are regulated by the federal government, and smaller gathering pipelines are regulated by the state. Pipelines are not regulated by municipalities. A lawyer at Babst Calland makes this observation on the ShaleEnergyLawBlog.com:
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OH Utica Shale ODNR Numbers: 567 Permits, 268 Drilled
The latest numbers from the ever-expanding Utica Shale in Ohio, for permits and wells drilled:
Read More “OH Utica Shale ODNR Numbers: 567 Permits, 268 Drilled”
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Anti-Drilling/Fossil Fuel | Forced Pooling | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY
Bloomberg Tries to Stir-up NY over Compulsory Integration Issue
Mainstream media sources, like Bloomberg, often tip their hand as to which way they think the wind is blowing on an issue. You just have to take time to observe. For example, someone at Bloomberg believes New York Gov. Andrew Cuomo is about to decide in favor of fracking. How do we know they think that? Because they run hit pieces that try to scare readers as a tactic to “stir-up the natives” so they’ll make noise.
The latest stir-up-the-natives-against-fracking hit piece from Bloomberg is on the topic of compulsory integration. If 60% of your neighbors sign a lease in New York, and fracking is allowed, and if your property is in a drilling unit (640 acres or one square mile), your land may be included in the fracking operation. Nothing would be built on top of your land, but drilling may be done under it—a mile or more down—even if you don’t want it. Bloomberg found an anti-driller—someone who has bought the lies from the anti-drilling left hook, line and sinker—and they’ve milked it (or should we say slaughtered it) for all it’s worth…
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Zeits Takes A Closer Look at the Bluegrass NGL Pipeline
Energy analyst Richard Zeits, writing on the Seeking Alpha website, turns his attention to the recently announced Bluegrass Pipeline which will transport natural gas liquids (NGLs) from the Marcellus/Utica region to the Gulf Coast for processing (see Williams, Boardwalk Announce Marcellus-to-Gulf Coast NGL Pipeline for background and MDN’s analysis). Zeits begins his deep dive on the Bluegrass (and the wider issue of NGLs) this way:
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With more and more wells being drilled in the Ohio Utica Shale, drillers are starting to zero in on the best places to drill for oil.
The Joint Landowners Coalition of New York (JLCNY), an organization representing 77,000 landowners with over 1 million acres, issued an extensive update late yesterday on: the status of their lawsuit (which is proceeding); their need for fundraising to finance the lawsuit; and the rationale/strategy for the lawsuit. Even though recent comments by Gov. Cuomo offer a “tease” that he may soon approve fracking, the JLCNY says it’s moving forward with the lawsuit anyway, essentially telling Cuomo “we’ll believe it when we see it.”