Marcellus Drilling News

Brooke County | Chesapeake Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | West Virginia

WV Landowners *with* Lease Sue Chesapeake for Drilling Next Door
March 6, 2013March 6, 2013

A mother and son have filed a lawsuit against Chesapeake Energy in Brooke County, WV charging them with illegal trespass under their property and taking some of the natural gas that exists in the Marcellus Shale from under their property. West Virginia does not have a pooling law—the right of drillers to “force pool” parcels of land into a drilling unit if a majority of surrounding neighbors have agreed to allow it.

The strange thing about this case is that the mother and son have a signed lease with Chesapeake—a lease which they renewed for an additional 5-year term. For some reason they don’t want their property pooled with their neighbors into a unit for Marcellus drilling—they refused it. So Chesapeake drilled next door to their property, essentially ignoring them. The landowners say Chesapeake’s close-by drilling has caused them economic harm. It’s now a case in federal court…

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Crosstex Energy | E2 | Energy Services | Enerven Compression Services | Industrywide Issues | Monroe County | Noble County | Ohio | Pipelines | Processing Plants | Utica Shale

Crosstex Energy to Build New Compressors, Processing Plant in OH
March 6, 2013March 6, 2013

Crosstex Energy has formed a joint venture with Enerven Compression Services called E2 to build and operate new compressor stations and a condensate processing plant in the Ohio Utica Shale. In their announcement today, Crosstex says the company has set up a new $75 million line of credit and will invest an initial $50 million from it in the new JV. First up is building two compressor stations in Noble and Monroe counties in Ohio—they already have an unnamed customer lined up for those. After that, they’ll build a condensate (“natural gasoline”) processing plant. Crosstex will own 93% of the JV and Enerven will own the other 7%.

The Crosstex announcement from this morning:

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Carroll County | Columbiana County | Guernsey County | Harrison County | Monroe County | Ohio | Utica Shale

Another 20 Utica Shale Permits Issued Last Week in OH
March 6, 2013March 6, 2013

The latest permit numbers released from the Ohio Dept. of Natural Resources shows 20 new permits for the week ending March 2nd.

Here’s where the latest round of permits were issued, along with an update on how many wells have been drilled and are now in production in Ohio:

Read More “Another 20 Utica Shale Permits Issued Last Week in OH”
1st NRG | Energy Companies | Utica Shale

1st NRG Still Looking for $ to Drill 7K Acres in Utica Shale
March 6, 2013March 6, 2013

1st NRG Corp. is one of the newer “players” in the Ohio Utica Shale. MDN previously pointed out their press statements seem to be heavy on fluff and light on specifics for how and when they’ll begin drilling (see 1st NRG Corp Gets $7M Loan to Begin Drilling in Utica, Other Plays). They issued a press release last week almost identical to the one from last November. Instead of saying we’re about to finalize an agreement for the Utica, they changed it to say we have finalized an agreement for the Utica. Again, no further specifics, other than they have their hand out looking for money (i.e. investors).

Here’s the latest slightly-tweaked and re-worked version of their previous press release:

Read More “1st NRG Still Looking for $ to Drill 7K Acres in Utica Shale”
Energy Companies | Energy Corporation of America | Kanawha County | West Virginia

ECA Moving/Expanding NE Headquarters to Charleston, WV
March 6, 2013March 6, 2013

Energy Corporation of America (ECA) will unveil plans today to move its eastern regional headquarters from “over the river” in Kanawha City, WV into Charleston, WV proper—at the Northgate Business Park. The new 60,000 square-foot facility is a good sign that ECA will continue to expand its presence in the Marcellus Shale. Headquartered in Denver, CO, ECA owns over 1 million acres of leases from New York to Tennessee, and operates over 4,600 wells (mostly conventional) and over 5,000 miles of pipeline. Most of their northeast operations are in West Virginia.

More on the new office building:

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Economic Impact | Industrywide Issues | Jobs | Pennsylvania | Statewide PA

PA Leads NE in Corporate Facilities Expansion – TY Shale!
March 6, 2013March 6, 2013

What does Pennsylvania have that New York doesn’t? For one thing, fewer welfare deadbeats sucking off the public teat. For another, PA has shale gas drilling and NY does not. Shale gas drilling has propelled PA, for the second year in a row, to third place in the entire country for the number of new and expanded corporate facilities built. PA is #1 for new corporate facilities in the Northeast—thanks to Marcellus drilling. Too bad NY is missing out—the very real cost of not drilling is loss of infrastructure projects like these.

PA had 430 new or expanded corporate facilities built in 2012 with a minimum investment of at least $1 million and with each facility adding at least 50 new jobs. Translation: On the low end, PA had $430 million in new investment and 21,500 new jobs—most of which came from the shale industry. The actual number for new investment/jobs was more like double…

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Economic Impact | Energy Services | Harrison County | Industrywide Issues | MarkWest Energy | Ohio | Pipelines | Processing Plants | Statewide OH | Utica Shale

MarkWest’s Multi-Billion Dollar Investment in Utica/Marcellus
March 6, 2013March 6, 2013

As we’ve been hearing for some time now, midstream (pipelines and processing plants) will be the dominant theme and focus of the Marcellus and Utica Shale for 2013 and likely beyond. A lot of wells have been and continue to be drilled in the Utica and Marcellus. Those wells now require pipelines to carry the gas and gas liquids to market, and processing plants to get the gas and gas liquids ready for market. MarkWest Energy is one of the midstream companies answering the call.

MarkWest plans to invest $1.8 billion in new infrastructure this year in the Utica Shale region, after investing nearly $2 billion last year:

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Industrywide Issues | Pennsylvania | Statewide PA | Taxation

Self-Serving Sierra Club Wants PA to Raise Taxes on Shale Drillers
March 6, 2013March 6, 2013

People like the Sierra Club have an interesting concept of what “fair” means. When it comes to other people’s money (OPM), the Sierra Club is only too ready to spend it—especially if they didn’t earn it. But that’s the way it is with socialists who like (their words) “spreading it around.”

The Pennsylvania Chapter of the extremist environmental group Sierra Club isn’t happy with “only” $200 million in impact fees/taxes. Oh no…they think a severance tax could easily more than double that amount—so it can be “spread around” among the enviro faithful—most particularly for themselves:

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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

The Andy & Junior Show: Part Deux
March 5, 2013March 5, 2013

If the situation with fracking in New York weren’t so tragic, it would be funny. Shakespearian, even. MDN told you yesterday about the Andy and Junior show—how Gov. Andrew Cuomo’s ex-brother-in-law Robert F. Kennedy, Jr. spilled the beans that Cuomo was ready to allow fracking last month and then it was (trumpet fanfare ta da da da) Junior to the rescue! RFK aka Junior says he talked Andy clean out of it (see The Andy & Junior Show: Why NY Fracking is Delayed Yet Again).

But what’s this? Being stung by having the truth aired to the press by what he thought was his confidant, his amigo (never trust a narcissist like Junior), Gov. Andy told the press yesterday Junior’s talk was not why fracking is still on hold…

Read More “The Andy & Junior Show: Part Deux”
Brooke County | Chesapeake Energy | Energy Companies | Lease & Royalty Payments | Ohio County | West Virginia

Chesapeake Energy Tardy with Royalty Payments in WV
March 5, 2013March 5, 2013

According to two at least two West Virginia landowners, Chesapeake Energy has been in no hurry to pay them the royalties they are owed. In each case, the landowner has had to contact Chesapeake. Even after calling Chesapeake, the landowners are still waiting for their first royalty checks to arrive.

Here’s the story of two landowners, one in Ohio County, the other in Brooke County:

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Energy Services | Industrywide Issues | Kinder Morgan | Ohio | Processing Plants | Tuscarawas County | Utica Shale

Kinder Morgan to Build Processing & Fractionation Plants in OH?
March 5, 2013March 5, 2013

The Akron Beacon Journal reports that Kinder Morgan, the country’s largest pipeline company, is seriously considering Tuscarawas County, Ohio as the location to build both a new natural gas processing plant and a new fractionation (separating) plant. If true, it could mean up to $1 billion in new investment for Tuscarawas County.

Here’s what the Beacon Journal is reporting:

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Energy Services | Hydraulic Fracturing | Industrywide Issues | Winner Water Services

New Venture Converts Acid Mine Drainage to Shale Drilling Water
March 5, 2013March 5, 2013

Battelle, the world’s largest nonprofit research and development organization (based in Columbus, OH), and Winner Global LLC, a privately-held energy and environmental technology company (based in Sharon, PA), formed a joint venture in January called Winner Water Services that will purify acid mine drainage from abandoned coal mines into water that can be used for drilling and fracking operations in the Marcellus and Utica Shale.

Winner has not finalized the site of its first plant, but expects to soon. The first of seven plants should be operational by this fall…

Read More “New Venture Converts Acid Mine Drainage to Shale Drilling Water”
Crime | Industrywide Issues | Mahoning County | Ohio | Wastewater

Youngstown Wastewater Dumper Says He’ll Plead Not Guilty
March 5, 2013March 5, 2013

Ben Lupo, owner of both Hardrock Excavating and D&L Energy in Youngstown, OH, will plead “not guilty” when he appears in U.S. District Court on March 15, according to his lawyer. Lupo has been charged with instructing one of his employees to illegally dump untreated shale drilling wastewater down a sewer drain—after hours and in the dark of night (see Youngstown Shale Wastewater Dumper Faces Jail and Big Fines). The water ended up in the Mahoning River.

Lupo’s lawyer is appealing the decision of the Ohio Dept. of Natural Resources to rescind all operating permits for D&L and effectively shut it down. The attorney says the “alleged” actions were done by D&L’s sister company, Hardrock, and D&L should not be penalized for it—even though D&L and Hardrock share the same owner and some of the same facilities. The attorney claims no D&L employees have been charged in the case. Here’s the latest:

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

Josh Fox Makes First Public Response to FrackNation
March 5, 2013March 5, 2013

The Washington Examiner picked up on Josh Fox’s first known public response to Phelim McAleer’s documentary FrackNation, the devastating critique of Fox’s documentary Gasland. Fox didn’t say much, but what he did say is illuminating:

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

Food & Water Watch Pushes for Fracking Ban in Maryland
March 5, 2013March 5, 2013

The anti-drilling group Food & Water Watch believes they have a sympathetic ear with legislators in the State of Maryland—so they’re making an all-out push to get the miracle of fracking banned in the state. Yesterday they released a faux “report” enumerating what they believe are the negatives of fracking. According to FWW, some of the ills fracking will visit upon the pristine state of Maryland include: “air pollution, water pollution, noise pollution, light pollution, marred landscapes and caravans of trucks full of toxic waste.” You mean, just like it hasn’t in PA, OH and WV?

The propaganda (i.e. press release) issued by FWW yesterday:

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Cumberland County | Industrywide Issues | Pennsylvania | Statewide PA | Taxation

The Folly of PA’s Impact Fee/Tax
March 5, 2013March 5, 2013

A number of stories coming from PA for the past several months revolve around how towns and counties will spend a windfall they’ve received from the state since instituting the first-ever shale well impact “fee” last year (for background on the fee-which-is-really-just-a-tax, see: List of PA Impact Fee Disbursements by County/Town). We’ve spared you the boring details. However, we bring you one of those stories to illustrate a point.

Cumberland County, PA has no active shale drilling, yet they will receive $200,000 in “walking around” money from the hard work of energy companies and landowners who are drilling. And what do the wise leaders of Cumberland County intend to do with this new-found pile of cash? Buy a new fire truck or two? Refurbish school classrooms? Refit snowplows with new equipment? Maybe convert some county vehicles to run on natural gas? Nope. They plan to put $149,000 of it into a program to give away (blow) on “green projects.” The squabbling over how to distribute it has already begun…

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