Marcellus Drilling News

Columbiana County | Economic Impact | Energy Services | Industrywide Issues | M3 Midstream | Momentum | Ohio | Processing Plants

Columbiana County NGL Plant Creates Economic Boom
January 28, 2013January 28, 2013

More evidence of just how much the shale drilling industry impacts local businesses (the “supply chain” effect) comes from the new $400 million natural gas liquids processing plant being built in Columbiana County, OH. We reported in December the plant was on track for an “aggressive” May 2013 start date (see Columbiana County NGL Plant On Track for May Opening). The company building the plant, M3 Midstream (also known as Momentum), has revised the start date slightly to June.

Momentum’s construction coordinator Baron John gives an update on progress in building the plant, and offers a few examples of how far and wide the project has already impacted the local economy:

Read More “Columbiana County NGL Plant Creates Economic Boom”
BP | Energy Companies | Mahoning County | Ohio | Trumbull County | Utica Shale

BP in OH Utica Shale: The Prospectivity of Producibility
January 28, 2013January 28, 2013

The regional president for BP North America Gas, Tim Harrington, say’s it’s early days yet for exploiting the Utica Shale for gas, oil and liquids. In a presser on Friday, Harrington used a few words MDN hasn’t heard before—words like “producibility” and “prospectivity.”

The upshot of Harrington’s talk? BP will figure out what their prospects look like in Ohio’s Utica Shale over the next two years…

Read More “BP in OH Utica Shale: The Prospectivity of Producibility”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

New PA Emergency Response Planning Reg for Shale Wells Adopted
January 28, 2013January 28, 2013

The Pennsylvania Environmental Quality Board (EQB) and Pennsylvania Emergency Management Agency on Saturday published final regulations covering Emergency Response Planning at Unconventional (i.e. Marcellus) Well Sites (a copy of the new regulation is embedded below).

The regulation was adopted by the EQB in November following a review by the PA Dept. of Environmental Protection’s Oil and Gas Technical Advisory Board last September. The regulation sets requirements for the preparation and implementation of emergency plans at Marcellus Shale drilling sites.

Read More “New PA Emergency Response Planning Reg for Shale Wells Adopted”
Allegheny County | CONSOL Energy | Energy Companies | Lease & Royalty Payments | Pennsylvania

Pittsburgh Airport to Hold Public Hearing on Lease Deal
January 28, 2013January 28, 2013

Since the middle of December MDN has been squawking about the Pittsburgh Airport’s decision to accept the (much) lower bid from CONSOL Energy to drill on 900 acres of airport-owned property (see Inside Job? Pittsburgh Airport Leases Land to CONSOL). Apparently others squawked too because a more recent story reported the airport is negotiating with CONSOL to double the bonus payment they just accepted (see Pittsburgh Airport Wants More $ from CONSOL…After Accepting Bid).

We expect board members from the Allegheny County Council—the people in charge of the airport and approving the deal—are about to get an earful at a public hearing about the deal being held on Feb. 7. Here’s the details for that hearing:

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About MDN | Calendar

Calendar of Events for Jan 28 – Feb 10, 2013 [Free]
January 28, 2013January 28, 2013

Below are upcoming events for this week and next.

Read More “Calendar of Events for Jan 28 – Feb 10, 2013 [Free]”
Best of the Rest

Marcellus & Utica Shale Story Links: Mon, Jan 28, 2013
January 28, 2013January 28, 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, Jan 28, 2013”
Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

IOGA NY Becomes “Adversarial” – DEC Must Revise Fracking Rules
January 25, 2013January 25, 2013

Although the latest public comment period for proposed new drilling rules in New York officially closed on Jan. 11, we’re just now learning about the “comments” (more like a treatise) made by the Independent Oil and Gas Association of New York (IOGA of NY) to the Dept. of Environmental Conservation (DEC), filed on the closing day of Jan. 11.

Many of IOGA of NY’s members are small and medium-sized drillers, and according to IOGA, the DEC’s latest draft of proposed drilling rules simply go too far for smaller drillers. They also say some of the new proposals are illegal. IOGA of NY provided a detailed, 119-page response/critique to the DEC which outlines chapter and verse the changes they believe must be made to the proposed new rules from the DEC before fracking in New York would be viable. A copy of the entire 119-page response is embedded below.

Read More “IOGA NY Becomes “Adversarial” – DEC Must Revise Fracking Rules”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Research | Soil | Statewide PA | Wastewater

PA DEP Announces New Study of Radiation in Shale Drilling
January 25, 2013January 25, 2013

Although the Pennsylvania Dept. of Environmental Protection (DEP) “routinely reviews radioactivity data in wastes the oil and natural gas industry and other industries generate,” they announced yesterday a new 12-14 month in-depth study to examine radiation levels more closely in PA’s shale drilling industry to ensure “that public health and the environment continue to be protected.”

The DEP is currently seeking a peer review of the proposed study plan (plan embedded below) and will then start sampling and analyzing naturally occurring radioactivity levels in drilling wastewater, drill cuttings, and the equipment used to transport, store and dispose of drilling wastes. The study will be conducted by the DEP working with an outside firm—Perma-Fix Environmental Services of Pittsburgh.

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Energy Services | Industrywide Issues | Luzerne County | Pennsylvania | Pipelines | Regulation | UGI Energy Services | Wyoming County (PA)

UGI Plans Start of PA Marcellus Pipeline Despite Zoning Appeal
January 25, 2013January 25, 2013

Pennsylvania energy utility UGI is working hard to bring low-cost, locally produced Marcellus Shale gas to its customers in the Wilkes-Barre/Scranton area. Currently UGI gets natural gas for its northeast PA customers from the Gulf of Mexico, which is crazy given the abundant, local Marcellus natural gas supplies all around them. But the Luzerne County zoning board last September denied UGI the right to build a much-needed compressor station that would help bring local gas to local customers (see Luzerne County Denies UGI Permit to Build Compressor Station).

UGI appealed that decision in court, and in the meantime, they’re moving forward with building a 28-mile pipeline anyway—an extension of the Auburn Pipeline from Wyoming County to Luzerne County (see the map below for the route of the new pipeline). If UGI’s appeal for the compressor station for the new pipeline fails, they do have a backup plan…

Read More “UGI Plans Start of PA Marcellus Pipeline Despite Zoning Appeal”
Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

NY Democrat Senators (Yet Again) Push Fracking Ban Legislation
January 25, 2013January 25, 2013

Perhaps sensing the fracking issue is about to become moot if the New York Dept. of Environmental Conservation releases new fracking rules in a few weeks, a group of anti-fracking/anti-drilling Democrat state senators are once again pushing for a law to permanently ban fracking in the Empire State.

A pair of newly-elected Democrat senators joined their colleagues on the left to try and force the issue to a vote on the Senate floor—before it’s “too late”…

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Energy Companies | Energy Services | Ethane | Exporting | Industrywide Issues | Pennsylvania | Pipelines | Range Resources Corp | Statewide PA | Sunoco Logistics

Philly Refinery Strikes Deal to Export SW PA Marcellus Ethane
January 25, 2013January 25, 2013

Marcellus Shale ethane, a valuable hydrocarbon recovered from natural gas wells in areas of southwestern Pennsylvania, will be exported to Norway from the recently reopened Sunoco Logistics terminal in Marcus Hook (near Philadelphia). Ethane and propane exports from the terminal are expected to ramp up in about two years once the new Mariner East pipeline from southwest PA is completed.

So who’s buying the ethane, and who’s selling it?…

Read More “Philly Refinery Strikes Deal to Export SW PA Marcellus Ethane”
Energy Companies | EQT Corp

EQT 2012 Report: Marcellus Production Way Up, Profits Way Down
January 25, 2013January 25, 2013

Marcellus driller EQT reported their 2012 full-year earnings yesterday (full copy below), and in the report, we get details about their massive increase in Marcellus Shale gas production—up 85% over the previous year (150.6 billion cubic feet produced). They drilled 135 new wells last year, and all but eight of them were in the Marcellus Shale.

However, even with phenomenal Marcellus growth, the company’s profits tanked year over year—down from $479.8 million in 2011 to $183.4 million in 2012. Why the huge decrease? EQT explains in their report.

Read More “EQT 2012 Report: Marcellus Production Way Up, Profits Way Down”
Energy Companies | EQT Corp

EQT’s Estimated Reserves Increase 21% to 25.9 Trillion Cubic Feet
January 25, 2013January 25, 2013

EQT released their 2012 profits and production report yesterday (see EQT 2012 Report: Marcellus Production Way Up, Profits Way Down). In addition, EQT also released information about their “proved” and estimated reserves—the best estimate of how much gas is available to recover from their leased acreage.

Based on 2012 drilling results, EQT estimates their proved reserves (those reserves about which they are nearly 100% confident) have increased by 12% to 6 trillion cubic feet (tcf). But when you add to it “probable” and “possible” reserves, or “3P reserves,” the number goes to 25.9 tcf, a jump of 21%.

Read More “EQT’s Estimated Reserves Increase 21% to 25.9 Trillion Cubic Feet”
Best of the Rest

Marcellus & Utica Shale Story Links: Fri, Jan 25, 2013
January 25, 2013January 25, 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, Jan 25, 2013”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Taxation

PA DEP Pushes Back: We Did NOT Undercount Wells for Impact Fee
January 24, 2013January 24, 2013

A newly-minted Ph.D. from Penn State, Joel Gehman, got his first teaching job last year as an assistant business professor at the University of Alberta in Canada. He wasted no time in addressing the issue of “publish or perish” in academe. In May of 2012, even before he began his official duties at UA, he co-authored and published a paper titled, “Fracking Patents: The Emergence of Patents as Information Containment Tools in Shale Drilling.” The title itself tells you about Dr. Gehman’s proclivities when it comes to the issue of fracking. (Learn more about his views on his blog). This month Dr. Gehman is back as lead author of a new paper published in the journal Environmental Practice titled, “An Analysis of Unconventional Gas Well Reporting under Pennsylvania’s Act 13 of 2012.”

Dr. Gehman’s new paper makes the strong claim that the DEP did not exploit loopholes in the new Act 13 law to drain every last penny they could via the new impact fee/tax on oil and gas wells, thereby leaving up to $303 million uncollected (see our story Did PA DEP Undercount Act 13 Wells & Forfeit $303M in Revenue?). Michael Krancer, Sec. of the DEP, sent a letter to Gehman on Tuesday with some pretty strong claims of his own…

Read More “PA DEP Pushes Back: We Did NOT Undercount Wells for Impact Fee”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Statewide PA

Controversy Continues Over PA DEP Water Testing Near Frack Sites
January 24, 2013January 24, 2013

In November, MDN told you about a new controversy that began when PA State Rep. Jesse White (Democrat from the Pittsburgh area) claimed the PA Dept. of Environmental Protection was knowingly covering up water well testing data that may “prove” fracking activities in some cases are contaminating groundwater supplies (see PA DEP Accused of Skewing Water Tests from Wells Near Drilling). The DEP immediately responded that White and those claiming there’s a cover-up are wrong. The Marcellus Shale Coalition also jumped into the debate to shine a light on White’s anti-drilling tendencies (see MSC Responds to Allegations PA DEP Skews Drilling Water Tests). It does appear White has an ongoing blood feud with Range Resources, but in fairness, he contacted MDN to assert he is not anti-drilling.

The latest round in this controversy comes from an article that appears in the Beaver County Times on Tuesday. The article is perhaps the best we’ve seen that outlines what the controversy involves (although the article tends to the anti- side). In brief, it’s all about “Suite Codes” and whether or not the DEP intentionally did not order the appropriate tests in some cases of suspected water contamination—and in other cases did not report back full results from tests done. There are three Suite Codes potentially used by the DEP when ordering and reporting on water testing, as described in the article:

Read More “Controversy Continues Over PA DEP Water Testing Near Frack Sites”