Marcellus Drilling News

Industrywide Issues | Pennsylvania | Statewide PA | Taxation

PA Landowners: Planning for the Tax Man in PA
December 5, 2012December 5, 2012

End of the year means it’s time to consider taxes (bloody awful if you ask us!). If you live in Pennsylvania and if you’ve leased your property for drilling (and perhaps even have royalties from drilled wells), you need to plan for the tax man—especially if you’ve sold your lease rights/property. All we can say is, a) it’s complicated, and b) find a lawyer/accountant to help you.

The law firm of McNees Wallace & Nurick LLC, with offices throughout PA, publishes a monthly newsletter. In the December issue they highlight a recent guidance document from the PA Dept. of Revenue dealing with Marcellus-related transfers and income taxes. If you’re a landowner with leases, you may find it interesting. If you’re a lawyer or accountant specializing in the Marcellus, you’ll definitely find it interesting:

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Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Dec 5, 2012
December 5, 2012December 5, 2012

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

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Hydraulic Fracturing | Industrywide Issues | New York | Onondaga County | Regulation

Town of Onondaga, NY Votes to Permanently Ban Fracking
December 4, 2012December 4, 2012

In a purely political move, the Town of Onondaga, NY (Syracuse suburb) voted last night to permanently ban hydraulic fracturing—even though a) the Syracuse watershed area, which Onondaga is part of, is expressly off limits for drilling in the DEC’s draft drilling rules, and b) such a permanent ban may not be legal (two similar cases are on appeal in NY courts).

The town had previously passed a temporary ban. Last night’s vote makes it “permanent”—although Onondaga’s ban will be ruled null and void if the two aforementioned cases are decided in favor of landowners (look for a decision in Spring 2013).

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Energy Companies | Energy Services | EQT Corp | Equitrans/EQT Midstream

EQT Unveils 2013 Plans for Marcellus & Utica Shale
December 4, 2012December 4, 2012

EQT Corporation, with major drilling and pipeline projects in both the Marcellus and Utica Shale, released their 2013 crystal ball today (i.e., their 2013 “operational forecast”). According to the plan, EQT will spend $820 million to drill 153 Marcellus Shale wells in 2013, and $40 million to drill 8 liquids-rich Utica Shale wells. They’re also spending $320 million on various midstream (pipeline) projects too.

The full EQT forecast for 2013:

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Broome County | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY | Tompkins County

NY Politicians Mad at DEC for Filing Fracking Rule Extension
December 4, 2012December 4, 2012

Binghamton’s failed mayor, Matt Ryan, and other anti-drilling politicians went to Albany yesterday (presumably using taxpayer money to fund the trip) to carp and complain about the Dept. of Environmental Conservation’s filing for a 90-day rule extension which keeps the process of new fracking regulations alive—at least for another few months. Mayor Matt and Assemblywoman Barbara Lifton (from where else? Ithaca) want the DEC to knock it off:

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Accidents | Chesapeake Energy | Energy Companies | Industrywide Issues | Regulation | West Virginia | Wetzel County

Chesapeake Fined $600K by EPA for Building Road in Swamp
December 4, 2012December 4, 2012

The federal Environmental Protection Agency (EPA) is on a tear. Last week the EPA announced a settlement and fine of $177,500 with PDC Mountaineer for draining a one-acre swamp in West Virginia (see this MDN story). Yesterday the EPA settled another Clean Water Act (CWA) case in the WV Marcellus—this one with Chesapeake Energy.

Chesapeake is getting fined a whopping $600,000 and put on two years probation for building a road through a Wetzel County, WV swamp. Seems like the EPA has a fixation on swamps (which are euphemistically called “wetlands”). Here’s the details for the Chesapeake settlement from the U.S Attorney’s office:

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Economic Impact | Industrywide Issues | Processing Plants

Northeast Oil Refineries, Powered by…
December 4, 2012December 4, 2012

PBF Energy, headquartered in Parsippany, NJ, purchased three northeast oil refineries over the past two years—two of them belonged to Valero (Paulsboro, NJ and Delaware City, DE), and the other was Sunoco’s Toledo, OH refinery. PBF paid a combined $1 billion for all three (and hundreds of millions to update them).

Last year the three refineries were profitable, brining in revenue of $16 billion—and this year they’ve already brought in $15 billion. PBF recently leased 2,500 rail cars to bring in Bakken Shale crude oil to help expand the operation. But the really interesting thing (to MDN) is how the three plants are powered:

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

Stupidest Quote of the Year Goes to…Yoko Ono
December 4, 2012December 4, 2012

As part of a story on a new “fashion line” designed by Yoko Ono (and we use the word “fashion” very loosely—it’s really nothing more than men dressed up in pornographic attire), we came across what has to be the stupidest quote of the year from that towering intellect Ono:

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Best of the Rest

Marcellus & Utica Shale Story Links: Tue, Dec 4, 2012
December 4, 2012December 4, 2012

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: Tue, Dec 4, 2012”
Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

NY DEC: We’ll Have our Cake and Eat it Too
December 3, 2012December 3, 2012

Last week when the New York Dept. of Environmental Conservation (DEC) filed for a 90-day extension to the rulemaking process for new fracking rules, the DEC issued a press statement to some media outlets (but still has not posted it on their website). A Gannett reporter provides us with the four paragraph statement, which contains several curious comments.

The following statement was made last week by DEC spokesperson Emily DeSantis:

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

Pro-, Anti-Drillers Comment on NY DEC Revised Fracking Rules
December 3, 2012December 3, 2012

Following the release of a revised set of “tweaked” drilling rules last week by the New York Dept. of Environmental Conservation (DEC), both sides of the drilling debate had observations about the revised rules. In general, some of the language was tightened, tweaked or expanded. In some cases rules were made more strict (on setbacks, for example). What do pro- and anti-drillers think of the DEC’s 90-day rule extension and the documents released as part of it?

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Industrywide Issues | Lackawanna County | Pennsylvania | Trucking

Clarks Summit, PA Targets Marcellus Trucks for Violations
December 3, 2012December 3, 2012

Warning to Marcellus trucks passing through Clarks Summit, PA: The local police department is watching you. And if your truck has a taillight out or appears to be “sitting low,” you may well be pulled over and ticketed.

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Energy Companies | Halcon Resources | Industrywide Issues | Mahoning County | Ohio | Seismic Testing | Trumbull County

Halcon Resources to Perform Seismic Testing in Eastern OH
December 3, 2012December 3, 2012

Halcon Resources continues to step up its presence (and telegraph its intentions) with drilling in Trumbull and Mahoning counties, Ohio. The latest indicator that Halcon is serious about eastern OH? The presence of 25 workers seeking permission from landowners to take seismic readings in the area:

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Energy Services | Harrison County | Industrywide Issues | Ohio | Processing Plants | Utica East Ohio Midstream | Utica Shale

Ohio RR Company Signs Deal with Utica East to Ship NGLs
December 3, 2012December 3, 2012

Utica East Ohio Midstream’s new $900 million natural gas liquids (NGL) processing plant in Scio, Ohio is about to become connected—but not by pipelines alone. Genesee & Wyoming announced today that their subsidiary, Columbus & Ohio River Rail Road Company has signed a long-term agreement with Utica East to ship some 10,000 carloads of NGLs annually. The new NGL processing plant is due to go online in May 2013.

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Hydraulic Fracturing | Industrywide Issues | Maryland | Regulation | Statewide MD

MD Fracking Commission Casts First Vote – in 15 Months!
December 3, 2012December 3, 2012

Fifteen long months after it was created, Maryland’s Marcellus Shale Safe Drilling Initiative Advisory Commission, set up by Gov. Martin O’Malley, has cast its first formal vote. The vote came in western Maryland at a regularly scheduled meeting of the group.

The vote by the Commission proposes four broad principles revolving around (surprise!) money. Maryland legislators are making noise about passing new laws concerning the future of drilling during the next legislative session (due to meet in January), and the Commission apparently wanted to get out in front of some of the ideas being tossed around with their opinion.

Read More “MD Fracking Commission Casts First Vote – in 15 Months!”
Allegheny County | Industrywide Issues | Pennsylvania | Research

CMU Researching Ways to Convert Shale Gas to Petrochemicals
December 3, 2012December 3, 2012

Carnegie Mellon University in Pittsburgh is hard at work figuring out how to convert Marcellus Shale gas directly into “aromatic” chemical compounds used by chemical and pharmaceutical manufacturers. From a CMU press release:

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