Marcellus Drilling News

Belmont County | Blue Racer Midstream | Caiman Energy | Dominion Energy | Energy Services | Industrywide Issues | Marshall County | NGLs | Ohio | Pipelines | Processing Plants | West Virginia

Bomb Threat at Natrium, WV NGL Plant Doesn’t Slow Construction
February 19, 2013February 19, 2013

A $500 million natural gas liquids processing plant in Natrium (Marshall County), WV will go online in the next few weeks—even with a temporary stoppage of construction last Saturday due to a bomb threat (no word on who made the threat or why). The Natrium plant is part of Blue Racer Midstream, a $1.5 billion joint venture between Dominion and Caiman Energy (see Dominion, Caiman in $1.5B Utica JV: Blue Racer Midstream). The new plant was originally scheduled to go online by end of 2012.

Some of the construction for the plant is happening across the border in Belmont County, Ohio:

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Bradford County | Energy Services | Eureka Resources | Industrywide Issues | Pennsylvania | Wastewater

Eureka Resources Building PA’s Biggest Marcellus Wastewater Plant
February 19, 2013March 7, 2019

Eureka Resources currently operates a Marcellus Shale wastewater treatment facility in Williamsport, PA that processes 8,000 barrels of wastewater per day. The company announced today it is building a new, second facility near Towanda, PA. The new plant will have the capacity to treat up to 10,000 barrels of wastewater per day. Target completion date is October of this year…

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Energy Services | Industrywide Issues | Litigation | Ohio | Patriot Water Treatment | Regulation | Statewide OH | Wastewater

Patriot Water in Warren, OH Objects to ODNR Directive
February 19, 2013February 19, 2013

A feud that stretches back to June 2011 between shale wastewater treatment company Patriot Water Treatment of Warren, Ohio and the Ohio Dept. of Natural Resources continues.

The latest skirmish in what has become a legal battle is over the ODNR’s order to D&L Energy to stop shipping wastewater to Patriot’s Warren plant:

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Coshocton County | Holmes County | Industrywide Issues | Ohio | Taxation | Wealth Management

Landowners: Make Lease Payments You Receive Tax-Free
February 19, 2013February 19, 2013

MDN ran across a story in the local Zanesville, Ohio newspaper that makes an interesting boast. A group of three financial advice firms have joined forces to offer workshops for landowners in the Coshocton, OH area that supposedly instructs landowners on how to save “virtually every tax dollar” on lease bonus payments. The technique, which involves setting up some sort of special legal structure, will also “save taxes” on royalty payments. We are 100% in favor of landowners keeping their money!

But, is it too good to be true? We don’t know. However, it does sound interesting, and if you live somewhere in the Coshocton vicinity, we’d encourage you to check it out. Let us know if you do…

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Hydraulic Fracturing | Industrywide Issues | Regulation | Statewide WV | West Virginia

New Rules/Laws for Shale Drilling Will Come to WV in 2013
February 19, 2013February 19, 2013

Last week a set of legislative rules crafted to regulate the horizontal gas well industry cleared an important committee hurdle when the WV joint Legislative Rule-Making Review Committee gave its qualified blessing to rules proposed by the WV DEP. In addition, some 60 bills related to the energy industry were introduced in the first two days of the new West Virginia legislative session—24 of them concerning natural gas. Conclusion: More regulation of shale drilling is on the way in 2013.

First, details about the DEP fracking rules recently approved by the joint committee:

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Arrowhead Utica Pipelines | Columbiana County | Energy Companies | Energy Services | Hilcorp Energy | Industrywide Issues | Ohio | Trucking | Utica Shale

Hilcorp Subsidiary Leases Property for Utica Transfer Facility
February 19, 2013February 19, 2013

The Columbiana County Port Authority operates an industrial park in Wellsville, Ohio. Tucked into a story about road improvements the Port Authority is making at the park we learn that two subsidiaries of Utica Shale driller Hilcorp have leased two different parcels in the park: Arrowhead Utica Pipelines and Harvest Pipeline Co. The Port Authority is spending over $900,000 on road upgrades, largely to expand a road to the future site of a new shale gas transfer facility that will be built by Arrowhead.

The details:

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Industrywide Issues | New York | Oneida County | Regulation | Wastewater

Oneida County, NY Bans Fracking Wastewater as De-Icer for Roads
February 19, 2013February 19, 2013

In what is becoming a more frequent occurrence, another municipality has banned the use of treated fracking wastewater as a de-icer on its roadways. This time it’s Oneida County, NY:

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

Anatomy of a Moratorium – Why Some NY Towns Ban Fracking
February 19, 2013February 19, 2013

Ill-informed (we would call them willfully ignorant) people show up at a town board meeting and make false statements about the shale drilling industry and ask the board to ban fracking. It’s a scene that plays out repeatedly across New York State, and has just happened again—this time in Pomfret (Chautauqua County), NY, in the western part of the state:

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Alternative Energy | Industrywide Issues | NG Vehicles | Statewide WV | West Virginia

WV Gov. Tomblin Proposes Ending Tax Credit for Electric Cars
February 19, 2013February 19, 2013

West Virginia Gov. Earl Ray Tomblin signed into law a tax credit in 2011 that covers 35% of the cost for “alternative fuel vehicles”—up to $7,500 for passenger cars and $25,000 for large trucks. His “good intentions” are costing too much. The original bill covered many types of alternative fuels, including electric and coal liquids. Gov. Tomblin wants to change that. He’s proposing new legislation that eliminates the tax credit—now—for all vehicle types except those that run on natural gas.

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Best of the Rest

Marcellus & Utica Shale Story Links: Mon, Feb 19, 2013
February 19, 2013February 19, 2013

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

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Air Quality | Industrywide Issues | Pennsylvania | Research | Statewide PA

PA DEP Report: Counties with Fracking Have More Air Pollution
February 18, 2013February 18, 2013

Last week the Pennsylvania Dept. of Environmental Protection (DEP) reported they filed a required every-three-year air pollution study with the federal Environmental Protection Agency (EPA). The results? Because of fracking and a change away from burning coal to burning natural gas for electrical power generation, all major forms of air pollution, including carbon monoxide, nitrogen oxide and volatile organic compounds, have gone down—significantly (see “Thank You for Fracking” – Air Pollution Goes Down in PA).

MDN now has a copy of the official numbers filed by the DEP to the EPA (see the files embedded below showing the data). It appears to us there is a “rest of the story” in the DEP’s numbers. While air pollution numbers are extremely positive and have gone down significantly as a statewide average, in counties with a lot of Marcellus Shale drilling, air pollution numbers have gone up. Compared to the levels found in other counties, we’d call it a “significant” increase. Is there cause for concern?

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

What Did Martens Mean – Issuing NY Permits Ahead of New Rules?
February 18, 2013February 18, 2013

Last week New York Dept. of Environmental Conservation Commissioner Joe Martens dropped a bombshell. He said even if new fracking rules are not officially adopted, he has the power to move forward with issuing permits for horizontal shale drilling/fracking (see Deadline for NY Fracking Regs Slips Again…Or Does It?). Was Martens being truthful? Is he mistaken? Or is he simply trying to get landowners to hold off on filing a lawsuit for “takings” that, if successful, might bankrupt the state over their illegal actions? Martens’ comments from last week are an ongoing source of debate and speculation. What, exactly, did he mean? Can he really do that?

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Antero Resources | Energy Companies | Guernsey County | Hydraulic Fracturing | Industrywide Issues | Lease & Royalty Payments | Noble County | Ohio

Muskingum Watershed District Signs with Antero for $40.3M Bonus
February 18, 2013February 18, 2013

Nearly a month ago MDN told you the directors of the Ohio Muskingum Watershed Conservancy District (MWCD) would consider a deal with Antero Resources to allow drilling and fracking on 6,700 acres under and around the Seneca Lake area (see OH Muskingum Watershed District to Sign Drilling Lease in Feb.). At the time, details of the deal were still not disclosed, but we theorized based on past deals the MWCD would probably make around $40 million in new lease payments.

The directors at the Watershed District voted to pass the deal last Friday. The amount they’ll get for a signing bonus? $40.3 million—or $6,200 per acre for leasing 6,500 acres (acreage number was adjusted down a bit). Plus 20% royalties.

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Elk County | Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Seneca Resources | Wastewater

Seneca Resources Threatens to Sue PA Town over Injection Well
February 18, 2013February 18, 2013

Marcellus Shale driller Seneca Resources, the exploration and production division of National Fuel Gas Company, is threatening to sue Highland Township (Elk County), PA if they block an injection well Seneca plans to drill on their own property. The details from SNL:

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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Sullivan County | Ulster County

NY Towns in Hudson Valley Ban Fracking, Olive the Latest
February 18, 2013February 18, 2013

Last week the Town of Olive, in Ulster County (Hudson Valley area) became the latest New York town to ban fracking—even though the town sits in the New York City watershed and the DEC has declared watershed areas off-limits for fracking. Why ban it then? Environmentalism run amok, and sheer ignorance:

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Economic Impact | Guernsey County | Hydraulic Fracturing | Industrywide Issues | Jobs | Ohio | Taxation | Utica Shale

Guernsey County Shale: Businesses Expand, Millionaires Created
February 18, 2013February 18, 2013

More tales of companies starting, companies expanding, and new millionaires being created at a rapid rate—all because of Utica Shale drilling. This time it’s happening in Guernsey County, Ohio…

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