Marcellus Drilling News

Youngstown Wastewater Dumper Pleads Not Guilty in Federal Court

March 18, 2013March 18, 2013

Some truly amazing chutzpah from the Youngstown, OH company caught dumping untreated frack wastewater down a drain that eventually emptied into the Mahoning River (see Youngstown Shale Wastewater Dumper Faces Jail and Big Fines for background).

Ben Lupo, the owner of the company who concocted the “allegedly” illegal plan, and Michael Guesman, the employee he co-opted into participating, both pled “not guilty” in federal court on Friday to the very acts they’ve already admitted doing:

Some OH Counties Happy Their Oil Prospects Improve on ODNR Map

March 18, 2013March 18, 2013

The new “best places to drill” map from the Ohio Dept. of Natural Resources (ODNR) continues to generate buzz. Some counties, like Meigs, are happy they’re back on the map for natural gas drilling (see related article from today). Other counties are saying, “Hey look, we’re on the map for oil!”

Four counties along the western edge of the Utica on the map for potential oil drilling include…

Meigs County | Ohio

Meigs County, OH “Back on the Map” for Possible Utica Drilling

March 18, 2013March 18, 2013

The prospects for Utica Shale drilling in Meigs County, OH may have just improved. Last year the Ohio Dept. of Natural Resources (ODNR) released a revised “best places to drill” map that pretty much removed Meigs County from contention for Utica Shale drilling. Leasing in the county tanked. Two weeks ago, that same map was revised and a good portion of Meigs (located in southeastern OH) is once again “back on the map”…

Energy Companies | PDC Energy | Utica Shale

PDC Nearly Doubles Utica Shale Drilling Budget for 2013

March 18, 2013March 18, 2013

PDC Energy announced today they are nearly doubling their drilling investment in the Utica Shale—this year—from $53 million to $96 million. They plan to keep one drilling rig busy at all times in the Utica this year and drill a total of 11 Utica Shale wells. Their plans also include a deal with MarkWest Energy to provide midstream services for the wells they drill. PDC also plans to use a small amount—$9 million—for drilling in the Marcellus Shale.

PDC’s announcement today:

Cracker Talk: WV Says Small/Regional Ethane Cracker on the Way

March 18, 2013March 18, 2013

The Marcellus 2 Manufacturing (or M2M) Conference convenes this week in Charleston, WV (see this MDN calendar announcement). One of the main topics of conversation for the event? You guessed it—West Virginia will soon get its own ethane cracker plant. The talk now is that WV will get a “baby cracker” online long before Shell builds a full-sized cracker in Monaca, PA.

Joe Eddy, chairman of the West Virginia Manufacturers Association (chief sponsor of the M2M conference), is president and CEO of Eagle Manufacturing in Wellsburg, WV. Here’s what he said about a small/regional ethane cracker recently announced for WV:

Blue Ridge Mtn Res/Magnum Hunter | Energy Companies

Overview of Magnum Hunter’s Operations in Marcellus/Utica

March 18, 2013March 18, 2013

An article on the Seeking Alpha website takes a close look at Magnum Hunter Resources and offers the author’s opinion on where the company should focus in 2013 (the author believes Kentucky and Tennessee should be the focus). As part of the article, we get this overview of how much acreage Magnum Hunter holds in the Marcellus and Utica, how many wells they’ve drilled thus far (hint: not many), and a map of their acreage position in Appalachia:

WVU Study Finds Potential Problems with Frack Wastewater Pits

March 18, 2013March 18, 2013

As part of the West Virginia Natural Gas Horizontal Well Control Act passed and signed into law in December 2011, the state legislature directed the WV Dept. of Environment Protection to conduct several studies. One of those studies, due by Dec. 31, 2012, was the Impoundment and Pit Safety Study. The study was done on Dec. 17, but only recently released to the public (February 15, 2013).

Details are now emerging from the study (full copy of the study is embedded below), including a warning there may be problems with the way oil and gas drillers are building waste pits for shale drilling, and with how state inspectors are checking them:

PA Enviro Groups Oppose Using Acid Mine Water for Fracking

March 18, 2013March 18, 2013

The Pennsylvania Dept. of Environmental Protection and elected officials want Marcellus drillers to help them with a big problem in the state: acid mine drainage. To solve two “problems” at once—lessen the amount of acid mine water that drains into PA waterways and supply water for fracking—PA encourages drillers to use acid mine water with the Environmental Good Samaritan Act and with a Consent Order and Agreement (see PA Wants Drillers to Use Acid Mine Water in Fracking – Will They?). PA’s efforts have started to pay off. Seneca Resources and at least 10 other drillers have started to use acid mine water for fracking.

However, just like a bad Western movie, extremist environmental organizations have ridden in to ruin the day. Legislation to encourage more use of acid mine water for fracking was recently introduced by a Democrat (!) Senate member. PennEnvironment and other “environmental activists” have sidelined the legislation…

Are Celebrities Breaking NY Law in Anti-Fracking Activities?

March 18, 2013March 18, 2013

Are anti-drilling one-percenters like Yoko Ono, Sean Lennon and Susan Sarandon breaking the law because they haven’t registered as lobbyists in New York State? According to the AP, maybe…

Range Gets Violation Notice for Wastewater Spill in SW PA

March 18, 2013March 18, 2013

A very small spill (about 40 barrels, or 1,680 gallons) of recycled fracking water with no chemical additives in it was spilled in Cross Creek County Park (Washington County), PA on Feb. 12 by Range Resources. The state Dept. of Environmental Protection has issued Range a notice of violation and is investigating…

OH Congressmen Form LNG Working Group to Encourage Exports

March 18, 2013March 18, 2013

Ohio Congressman Tim Ryan announced last week that he and Ohio Congressman Bill Johnson have founded the “Liquefied Natural Gas (LNG) Export Working Group” for the 113th Congress. The purpose of the group is to encourage the Obama administration (specifically the Dept. of Energy) to get off it’s collective rear-end and start approving some of the many requests for permits to export natural gas.

Congressman Ryan’s press announcement:

About MDN | Calendar

Calendar of Events for Mar 18-31, 2013 [Free]

March 18, 2013March 18, 2013

Below are upcoming events for this week and next.

Best of the Rest

Marcellus & Utica Shale Story Links: Mon, Mar 18, 2013

March 18, 2013March 18, 2013

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

Ohio | Statewide OH | Utica Shale

OH Utica’s “Best Oil Window” Boundaries Taking Shape

March 15, 2013March 15, 2013

choosing the best 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…

USGS: Best Places in NY Southern Tier to Get Water for Fracking

March 15, 2013March 15, 2013

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…

Carroll County | Forced Pooling | Industrywide Issues | Ohio | Statewide OH

2nd Forced Pooling Order in OH Utica, Landowner Gets No Bonus

March 15, 2013March 15, 2013

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: