Marcellus Drilling News

Columbiana County | Industrywide Issues | Jobs | Ohio

Roustabout: Long Hours, Hard Manual Work, But Good Pay + Benefits
April 9, 2013April 9, 2013

Roustabouts are the "do it all" manual laborers that work in drilling operations—typically on and around a drilling rig. They pick up the garbage, repair things, carry things…anything that needs doing of a manual natural. It’s hard, long, dirty work—typically 12-hour (or more) shifts for two weeks straight. However, if you’re young, in good health and in good shape, getting work as a roustabout can pay well—very well. Just ask Brian Rose who works as a roustabout on a rig in Lisbon, OH:

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Forced Pooling | Industrywide Issues | Regulation | Statewide WV | West Virginia

WV “Forced Pooling with a Twist” Dies in Senate for 2013
April 9, 2013April 9, 2013

Less than two weeks ago, MDN reported that "forced pooling" in very limited circumstances may soon be approved in West Virginia, in cases where the mineral rights owner for land adjacent to already-leased land either can’t be determined or can’t be found (see WV Legislation Would Create Forced Pooling – with a Twist). MDN thought the proposal was a common sense approach to solve an existing problem. However, the WV Senate apparently did not agree.

Senate Bill 616 never even made it to committee for consideration. It’s now a dead issue for this session of the legislature, which is nearing the end of its 60-day term for this year:

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Antero Resources | Energy Companies | Harrison County | Industrywide Issues | NG Vehicles | Statewide WV | West Virginia

Antero Res 2nd Marcellus Driller to Use 100% NatGas Rig Engines
April 9, 2013April 9, 2013

The parade of rig conversions in the Marcellus Shale to run on liquefied natural gas (LNG) continues. MDN previously told you about first EQT, then CONSOL switching to duel-fuel LNG/diesel engines. After EQT and CONSOL, Seneca Resources started to convert drilling rigs to run on 100% LNG (see Seneca Boasts First 100% LNG-Powered Drill Rig in Marcellus). You may now add Antero Resources to the club.

Antero recently converted the first of three rigs in West Virginia to run on 100% natural gas engines manufactured (as they were for Seneca) by General Electric. The engines will run on LNG, propane or even dry "field gas" that comes from the well itself. Kewl. From the Antero/GE press release:

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Energy Companies | Rhino Resource Partners | Utica Shale

Rhino Flips 20% of Utica Investment to Undisclosed 3rd Party
April 9, 2013April 9, 2013

Rhino Resource Partners is a master limited partnership (MLP) that produces coal in various basins throughout the U.S. They also invest in oil and gas acreage in both the Utica and Cana Woodford shale plays. MDN previously told you about a joint venture investment made by Rhino with both Gulfport and Wexford Capital in the Utica just last year—investing in 125,000 Utica Shale acres (see Rhino Resource Ups Investment in Utica Shale JV). Rhino has decided to “flip” part of their Utica investment and has sold a 20% portion of their ownership interest to an undisclosed third party.

The very brief and light-on-details Rhino press release from yesterday:

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Best of the Rest

Marcellus & Utica Shale Story Links: Tue, Apr 9, 2013
April 9, 2013April 9, 2013

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading:

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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

The Toxic Fight over Fracking: AP Hints MDN an “Extreme Voice”
April 8, 2013April 8, 2013

An AP story in today’s Washington, PA Observer-Reporter takes a look at the natural gas drilling and fracking debate through the lens of those who either support or don’t support the new “voluntary” Center for Sustainable Shale Development (CSSD). The author made a statement that seemed, to us, to perfectly encapsulate the debate: “The fight is so toxic in part because fracking has become a symbol for the even bigger debate over climate change. Both sides see a historic crossroads, like an energy version of D-Day or Waterloo, in which the winner will determine energy and climate policy for decades to come.” We wish we had said it that way!

Two paragraphs later in the same story (and much to our surprise), the AP writer uses a quote from your humble drilling news source, MDN. The quote aptly (and fairly) represents our view of the CSSD…

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Economic Impact | Industrywide Issues | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

Baker Hughes Rig Counts Hit New Low, But There’s More to Story…
April 8, 2013April 8, 2013

Energy analyst and Seeking Alpha blogger Richard Zeits has authored a new “required reading” article titled, “Natural Gas: Sharp Recent Drop In Baker Hughes Gas Rig Count Explained.” In his new article, Zeits says that although the Baker Hughes rig count (number of active drilling rigs in the U.S.) has reached a new low as of last Friday—only 375 active rigs—the rig count itself does not tell the whole story. With a series of stunning charts, Zeits explores the big change from rigs drilling for natural gas to rigs drilling for oil…

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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Regulation

Yes, Virginia, There are Some Democrats Who Want Fracking
April 8, 2013April 8, 2013

Is the recalcitrant Democrat party actually starting to turn around on the issue of fracking and (gasp) support it? That seems to be the theme and tone of an article published in yesterday’s Washington Times. The article points out the recent in-your-face op-ed from former PA Gov. Ed Rendell to current NY Gov. Andrew Cuomo (see Former PA Gov. Rendell to Gov. Cuomo: Get Fracking). The Times article also uses other prominent Democrats who support fracking as examples: CO Gov. John Hickenlooper. For goodness sake, even CA Gov. Jerry “Moonbeam” Brown supports fracking…

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Lease & Royalty Payments | Ohio | Perry County

Driller Offers 10X Less for Vertical Leases than Horizontal in OH
April 8, 2013April 8, 2013

In Ohio, oil and gas drilling has been going on for decades, long before Chesapeake Energy “discovered” oil in the Utica Shale a few years ago (see Major Discovery – Chesapeake Energy Strikes Oil (and Gas) in Ohio’s Utica Shale). An article from an Ohio newspaper mentions the amount landowners in Perry County are being offered in the way of signing bonuses for traditional, vertical (or “conventional”) drilling leases. It’s a tiny fraction of what landowners receive for leasing Utica Shale acreage:

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New York | Sullivan County

Engelder’s Blunt Assessment of Sullivan County Drilling Potential
April 8, 2013April 8, 2013

Penn State University professor Terry Engelder, the geologist who first discovered the potential of the Marcellus (and called “the Father of the Marcellus Shale”), has a blunt assessment of potential drilling for Marcellus (or Utica) gas in Sullivan County, NY: It’s not worth doing…

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Blue Racer Midstream | Dominion Energy | Energy Services | Exporting | Industrywide Issues | Marshall County | Maryland | Processing Plants | Statewide MD | West Virginia

Will NatGas Processed at New Natrium, WV Plant End Up in Asia?
April 8, 2013April 8, 2013

Dominion, via it’s Blueracer Midstream joint venture with Caiman Energy, is building a $1.5 billion natural gas liquids processing plant in Natrium, WV. The plant is a bit behind schedule but due to go online later this spring (see Natrium, WV NGL Plant Behind Schedule, Will Open “Late Spring”). Dominion is also set to build a liquefied natural gas (LNG) export facility in Cove Point, MD as soon as certain government approvals are issued. They will invest a staggering $3.4-$3.8 billion to build it (see Dominion’s Cove Point LNG Facility Achieves Important Milestones).

With Dominion building both the Natrium and Cove Point facilities, it only makes sense some of the Utica and Marcellus natural gas that flows through the Natrium facility for processing will end up at Cove Point, and then on to either Japan or India:

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Blair County | Economic Impact | Energy Services | Industrywide Issues | Marcellus GTL | Pennsylvania | Taxation

Altoona Gas to Liquids Plant Will Qualify for 7-Year Tax Break
April 8, 2013April 8, 2013

Marcellus GTL announced a few weeks ago they plan to build a $200 million gas to liquids (GTL) plant near Altoona, PA that will convert natural gas into gasoline and propane (see Altoona Area Getting $200M Marcellus Gas-to-Liquids Plant). If they start building by the end of this year, the company will qualify for up to seven years of tax abatement. That’s a pretty powerful reason to get building…

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Accidents | Carrizo Oil & Gas | Energy Companies | Industrywide Issues | Pennsylvania | Wastewater | Wyoming County (PA)

Carrizo Resumes Fracking at Site of Spill in Wyoming County, PA
April 8, 2013April 8, 2013

On March 13, Carrizo Oil & Gas temporarily lost control of a Marcellus Shale gas well they were fracking in Wyoming County, PA, leading to a spill of over 200,000 gallons of fracking water. The frack water was contained and trucked away (see Carrizo Problem Fracking NE PA Well, Evacuates 3 Nearby Families). Since then, Carrizo has tested local water sources and has found “nothing unusual,” so the state PA Dept. of Environmental Protection has given them the green light to resume fracking the well:

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Best of the Rest

Marcellus & Utica Shale Story Links: Mon, Apr 8, 2013
April 8, 2013April 8, 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 8, 2013”
Hydraulic Fracturing | Industrywide Issues | Public Opinion

Pew Research Poll Finds 2/3 of Americas Support More Fracking
April 5, 2013April 5, 2013

$frack here frack now$ Earlier this week Pew Research released the results of an extensive new national poll on several environmental-related issues, fracking among them. The results were not all that surprising, if you’re an MDN reader for any length of time. The poll found a majority favors the increased use of the miracle of hydraulic fracturing. Women are evenly split on whether to frack more—men are definitely in favor of more fracking. Also not surprising, Republicans and Independents favor fracking by wide margins, and Democrats oppose it by wide margins.

In addition to the fracking question, Pew also polled on the XL Keystone oil pipeline from Canada (two-thirds of Americans favor it), and whether or not global warming is real (most Democrats believe global warming hokum, most Republicans don’t). Here’s the detailed results on the fracking question:

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Crime | Industrywide Issues | Mahoning County | Ohio | Wastewater

Youngstown Frackwater Dumper’s New Strategy to Reopen Business
April 5, 2013April 5, 2013

We have the next chapter in the ongoing, very sad story of Ben Lupo, the Youngstown, OH man who ordered an employee to dump fracking wastewater down a sewer drain—wastewater that ended up in the Mahoning River (see Youngstown Business Dumped >200K Gal of Untreated Wastewater). The Ohio Dept. of Natural Resources promptly closed down both of the companies he owns and controls, D&L Energy and Hardrock Excavating (see OH Company Dumping Frack Wastewater in Drain May Appeal Shut-Down). Lupo and his lawyers have been desperately trying to get the “death sentence” for his companies lifted—at least for D&L Energy, a sizable operation with dozens of employees.

Lupo is now trying a new strategy in his attempt to reopen D&L Energy: He’s resigned from both D&L and Hardrock and has turned over ownership and control of the companies to his wife. D&L has officially “severed all ties” with Lupo. Question is, will it work?

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