Marcellus Drilling News

Chesapeake Energy | Energy Companies

Chesapeake Pays $15.4M to Prevent Exodus of Top Talent
February 5, 2013February 5, 2013

Last week MDN told you the news that Chesapeake Energy founder and CEO Aubrey McClendon was given the pink slip by the Chesapeake board of directors (see Breaking: Chesapeake Energy CEO Aubrey McClendon Gets Pink Slip). At the time we theorized that Chesapeake may rue the day they let him go—we fully expect to see McClendon turn up again, running a new company to compete with Chesapeake. He’s young (53 years old), he’s charismatic, and he’s full of energy and determination.

Although it was pure speculation at the time, perhaps we weren’t so far off the mark. Chesapeake has awarded big (big) stock option “retention” bonuses worth $15.4 million to three members of McClendon’s leadership team to keep them right where they are—at Chesapeake:

Read More “Chesapeake Pays $15.4M to Prevent Exodus of Top Talent”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Litigation | New York | Pipelines | Spectra Energy | Statewide NY

Judge Tosses Out Lawsuit Against Spectra NYC Pipeline Project
February 5, 2013February 5, 2013

Spectra Energy continues to battle environmental extremists who want nothing to do with more natural gas (especially “filthy” shale gas) coming into New York City, even though NYC Mayor Michael Bloomberg calls more natural gas “vital” to the city. Spectra has had to battle nutty protesters that strip down (see NYC Pipeline Protesters Get Naked, Paint Themselves Green), and even protesters who don’t tell themselves they’re about to break the law (see Nutjob Protester Stops NYC Pipeline Construction for 2 Hours).

The protesters and their more adult-acting supporters took Spectra to court in New York State to stop the 16-mile pipeline from New Jersey to New York City from being built. A judge has just tossed the lawsuit telling the protesters, “wrong court”…

Read More “Judge Tosses Out Lawsuit Against Spectra NYC Pipeline Project”
Industrywide Issues | Ohio | Statewide OH | Taxation

OH Gov. Kasich Budget Soaks Drillers & Farmer Landowners
February 5, 2013February 5, 2013

Ohio Gov. John Kasich (supposedly a Republican) just released his biennial budget and as promised, it’s a socialistic masterpiece that raises taxes on shale drillers and farmers in order to fund a massive expansion in Medicaid and provide a state income tax cut.

When liberals like what you’re doing and you’re a Republican, that’s not a good sign…

Read More “OH Gov. Kasich Budget Soaks Drillers & Farmer Landowners”
Chenango County | Cortland County | Delaware County | Lease & Royalty Payments | New York | Ohio | Otsego County | Statewide OH | West Virginia | Wirt County

WV Group Largest Landowner Coalition in Marcellus/Utica
February 5, 2013February 5, 2013

A group of landowners in Wirt County, WV have just taken the crown as the largest landowner coalition MDN is aware of in the entire Marcellus and Utica Shale. The Wirt County Oil and Gas Group closed the door on new signups as of Monday, and the total acreage represented by the group is an astonishing 227,000 acres—almost 1/4 million acres! The really attractive part for potential drillers? The land is located in the wet gas area of the Marcellus.

The next largest group MDN is aware of is in Upstate New York—the CNY (Central New York) Landowners Coalition—with 194,500 acres. Both the Wirt County and CNY coalitions have representatives in Houston this week for the NAPE Winter Expo, shopping the acreage looking for a lease.

More details on the Wirt County group:

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Accidents | Energy Services | Industrywide Issues | Litigation | MarkWest Energy | Pennsylvania | Washington County

MarkWest Sues Enerflex Over Compressor Station Fire in Western PA
February 5, 2013February 5, 2013

Midstream powerhouse MarkWest filed a lawsuit on Monday in Washington County, PA seeking $1.1 million from Enerflex Energy Systems, manufacturer of equipment for compressor plants. MarkWest says Enerflex sold them defective equipment that led to a fire, and a lot of damage, in their compressor facility in Avella, PA last year:

Read More “MarkWest Sues Enerflex Over Compressor Station Fire in Western PA”
About MDN | Calendar

Calendar of Events for Feb 4-17, 2013 [Free]
February 5, 2013February 5, 2013

Below are upcoming events for this week and next.

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Best of the Rest

Marcellus & Utica Shale Story Links: Tue, Feb 5, 2013
February 5, 2013February 5, 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, Feb 5, 2013”
Antero Resources | Energy Companies

Antero Resources Goes “All In” on Marcellus/Utica
February 4, 2013February 7, 2013

Last week MDN told you we noticed references that Denver-based Antero Resources’ plans for the Marcellus Shale in 2013 would be “aggressive” (see Antero Says 2013 Plans for WV Drilling are “Aggressive”). We now know just how aggressive.

Antero’s capital budget for 2013 is $1.65 billion. They plan to spend all of it drilling in the Marcellus and Utica Shale. We’d call that “all in” on the Marcellus/Utica…

Read More “Antero Resources Goes “All In” on Marcellus/Utica”
Columbiana County | Lease & Royalty Payments | Ohio

Caution: The Timeline for Leasing Your Land is Finite
February 4, 2013February 4, 2013

A cautionary tale for landowners (and governments) looking to lease property. There is a finite window of time when your property is desirable and once that window closes, it may be tough to find a lease.

The village of East Palestine (Columbiana County), OH with 130 acres of village-owned land to lease is finding that out—the hard way:

Read More “Caution: The Timeline for Leasing Your Land is Finite”
Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Range Resources Corp | Regulation | Washington County

Robinson Twp, PA Drags Feet on Approving New Permits to Drill
February 4, 2013February 4, 2013

Why are drilling permits from Range Resources not being approved in Robinson Township (Washington County), PA? You may recall that Robinson is one of seven towns in PA that sued the State of Pennsylvania over Act 13, a new shale drilling law passed in February 2012. Robinson and the other towns object to a provision in Act 13 that replaces the right of local towns to enact zoning restrictions on oil and gas drilling and instead replace local rules with a uniform set of zoning rules from the state (see Lawsuit Filed: PA Towns Sue State over Marcellus Act 13 Law).

Robinson and the other towns went to court over the provision and won their case in the lower courts. The decision was appealed by the state all the way to the PA Supreme Court where a everyone eagerly awaits a decision (see PA Supreme Court Hears Testimony on Act 13 Zoning).

Read More “Robinson Twp, PA Drags Feet on Approving New Permits to Drill”
Hydraulic Fracturing | Industrywide Issues | Regulation

Obama Energy Sec. Steven Chu Resigns
February 4, 2013February 4, 2013

The third shoe has finally dropped (if that’s even a legitimate metaphor!). Obama’s Secretary of Energy, Steven Chu, has resigned. You may recall MDN reported early on that the three Obama cabinet members who most directly affect shale drilling—Chu, EPA chief Lisa Jackson and Dept. of Interior Sec. Ken Salazar were all rumored to be departing a second Obama term (see 3 Top Officials Rumored to be Leaving Obama Administration).

Of the three, Chu was the one rumormongers were most sure about. Yet Jackson was the first to go, and Salazar the second. On Friday, Chu announced he too would depart. His tenure at Energy has been marked by crony capitalism with the government handing out big big money to politically-connected Obama donors—Solyndra being the most famous example. It’s “so long and don’t let the door hit you on the way out” to Sec. Chu…

Read More “Obama Energy Sec. Steven Chu Resigns”
Medina County | Ohio

Will Medina County, OH See Any Fracking? Probably Not
February 4, 2013February 4, 2013

It seems that residents of the City of Medina, OH, and indeed residents of Medina County at large, may not have to worry about fracking in the county, regardless of whether they are for or against.

According to ODNR and industry group Energy in Depth Ohio, the shale under Medina is too thin to bother with…

Read More “Will Medina County, OH See Any Fracking? Probably Not”
Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

Home Stretch for NY Fracking Generates New Ad Campaign
February 4, 2013February 4, 2013

In what may be the final stretch of four and a half long years to win approval for New York State to begin using the miracle of hydraulic fracturing as has Pennsylvania, Ohio, West Virginia, Texas, Louisiana, Wyoming, Oklahoma, Colorado and so many other states, the New York State Petroleum Council (NYSPC) has launched a new ad campaign aimed at one person: Gov. Andrew Cuomo. Listen and watch the new commercials below.

Last Friday the NYSPC issued this press announcement about the new ad campaign:

Read More “Home Stretch for NY Fracking Generates New Ad Campaign”
Air Quality | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Research | Statewide PA

2 New Studies of Marcellus Drilling’s Impact on PA Air Quality
February 4, 2013February 4, 2013

Marcellus Shale drilling in Pennsylvania was responsible for just a small fraction of PA’s air pollution in 2011 according to newly released data (the first full year of data we have) from the Dept. of Environmental Protection, and from a private study by Rand Corporation (see below). How much did it contribute? PA’s shale gas industry was responsible for about 4% of total air pollution emitted by all industrial facilities in 2011.

Although the overall numbers are low, that’s not to say there aren’t concerns or things to improve…

Read More “2 New Studies of Marcellus Drilling’s Impact on PA Air Quality”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Statewide PA

PA Wants Drillers to Use Acid Mine Water in Fracking – Will They?
February 4, 2013February 4, 2013

Pennsylvania has a big problem with water seeping from abandoned coal mines—the water mixes with minerals from the mine and is highly acidic. Some 300 million gallons of it flow—every day—into Pennsylvania’s waterways, killing off fish and plant life in 4,000 miles of rivers and streams. The PA Dept. of Environmental Protection (DEP) recently launched a plan to encourage shale drillers in the state to use “mine influenced water” (MIW) for drilling and fracking operations. It kills two birds with one stone: it helps to get rid of MIW and it gives drillers a steady source of water for fracking (see PA DEP Finalizes Procedure for Using Acid Mine Water in Fracking).

Just one problem: Drillers are scared to death of “if you touch it, you own it for evermore.” That is, drillers are rightly concerned about liability in this day and age of litigate everything. Who wants to get sued for doing the right thing? What can PA do to reassure drillers to give MIW a shot?

Read More “PA Wants Drillers to Use Acid Mine Water in Fracking – Will They?”
Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA Legislation Would Release Untapped Acreage for New Lease
February 4, 2013February 4, 2013

Help may be on the way for Pennsylvania landowners who have leased their land, but not all of their land is part of a “production unit.” PA State Sen. Gene Yaw has introduced legislation what would release the land not in production so it could, theoretically, be leased again, or leased to someone else.

This update from one of our favorite blogs, ShaleEnergyLawBlog:

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