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Marcellus Drilling News
  • 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.

    Read More “PA DEP Announces New Study of Radiation in Shale Drilling”

  • 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”…

    Read More “NY Democrat Senators (Yet Again) Push Fracking Ban Legislation”

  • 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

    push back 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”

  • Belmont County | Energy Companies | Industrywide Issues | Litigation | Ohio | Oxford Oil Company

    Belmont County Landowners with Lease Sue to Stop Well Drilling

    January 24, 2013January 24, 2013

    A Barnesville (Belmont County), OH couple have sued the company they signed a lease with in 2008, Oxford Oil Company, to prevent Oxford from drilling a new well on a hayfield on their property.

    The details as we know them:

    Read More “Belmont County Landowners with Lease Sue to Stop Well Drilling”

  • Commodity Price | Industrywide Issues

    Marcellus NatGas Production Predicted to Increase 44% by 2014

    January 24, 2013January 24, 2013

    The perennial topic of conversation around the natural gas water cooler is, “How much supply will there be in the next X timeframe, and how will that affect the price of natural gas?”

    Financial advisory firm Raymond James is the latest to weigh in with their thinking on the topic, and it’s no surprise the Marcellus Shale figures big in their thinking about how much supply is coming down the pipeline, and how prices will be affected:

    Read More “Marcellus NatGas Production Predicted to Increase 44% by 2014”

  • Energy Services | Equitrans/EQT Midstream

    EQT Midstream 4Q12: Revenue Up 14%, IPO Complete

    January 24, 2013January 24, 2013

    EQT’s pipeline subsidiary EQT Midstream Partners released their fourth quarter 2012 results today. EQT Midstream has extensive pipeline and compressor plant operations in the Marcellus Shale.

    Although the update is largely about the money and intended for investors (revenues are up 14%), the update does contain a few interesting bits about EQT Midstream’s operations in the Marcellus, including information about the recently acquired Sunrise Pipeline, a federally regulated transmission line that runs from Wetzel County, WV to Greene County, PA:

    Read More “EQT Midstream 4Q12: Revenue Up 14%, IPO Complete”

  • Chesapeake Energy | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Research

    Chesapeake will Allow EPA Access to Well Site for Fracking Study

    January 24, 2013January 24, 2013

    The Wall Street Journal reports that Chesapeake Energy has agreed to allow the federal EPA to access one of their drilling sites to be used as a guinea pig for before and after testing of water supplies near a fracked gas well. The EPA is conducting a years-long study, due to be completed in 2014, to evaluate whether or not they can try and claim fracking affects water. If they can make a case that fracking does affect water supplies, they plan to invoke the federal Clean Water Act to start regulating shale drilling via the back door which would, of course, trample on states’ rights as granted under the Constitution.

    Apparently Chesapeake is willing to “pull back the kimono” and let the EPA have a peak. Their reasoning appears to be, “Hey, there’s nothing to fear since fracking does not affect water supplies, so why not?” From the WSJ:

    Read More “Chesapeake will Allow EPA Access to Well Site for Fracking Study”

  • Best of the Rest

    Marcellus & Utica Shale Story Links: Thu, Jan 24, 2013

    January 24, 2013January 24, 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: Thu, Jan 24, 2013”

  • Industrywide Issues | Pennsylvania | Statewide PA | Supply Chain

    Marcellus Drillers Look for Partners to Supply Products/Services

    January 23, 2013January 23, 2013

    supply chain The Altoona-Blair County Development Corp. (ABCD) and the Blair County Chamber of Commerce partnered to host a seminar yesterday to help local businesses get a piece of the natural gas industry pie—or “plug into the supply chain” as it’s commonly referred to. The seminar was aimed at helping companies find business opportunities in the Marcellus Shale drilling industry, and although it was aimed at businesses in south central PA, the information shared will help businesses throughout the Marcellus/Utica region.

    According to speakers at the seminar, one driller in particular who is new to the Marcellus is looking for business partners in the Marcellus to provide them with products and services. Who is that driller and whom should you talk to there? What types of businesses stand a good chance of getting business in the shale drilling industry? And where, geographically, are the best opportunities in PA? Read on…

    Read More “Marcellus Drillers Look for Partners to Supply Products/Services”

  • Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

    A Sad Milestone: NY Fracking Moratorium Turns 4.5 Years Old Today

    January 23, 2013January 23, 2013

    The current moratorium on high volume hydraulic fracturing (“fracking”) in New York is exactly 4 years and 6 months old today. MDN keeps a handy “Moratorium Clock” in the right sidebar to remind people how long New York landowners have been denied their Constitutional property rights to allow drilling on their land in the People’s Republic of New York. Here’s how it looked this morning:

    NY Moratorium Clock

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