Marcellus Drilling News

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

The “Compendium of its Meaning” for NY Fracking
December 5, 2012December 5, 2012

Both sides of the drilling debate in New York are still coming to grips with both the fact, and the way, the state Dept. of Environment Conservation (DEC) filed for a 90-day extension to the fracking rulemaking process—keeping the possibility of fracking alive in New York.

Anti-drillers, never at a loss for things to complain about, mostly complain the DEC’s revised proposed rules don’t indicate where the rules have changed from previous versions (i.e. redline), making them flip back and forth between previous versions and the new version (perhaps they have a case for carpel tunnel syndrome?)…

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Energy Companies | Ohio | Triad Hunter | Washington County (OH)

Washington County, OH’s First Utica Well Slated for 2013
December 5, 2012December 5, 2012

Triad Hunter says it will be the first driller to sink a new Utica Shale well in Washington County, Ohio—and it will happen next year:

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Carroll County | Chesapeake Energy | Energy Companies | Gulfport Energy | Harrison County | Ohio | Utica Shale

Latest Permits Issued in Ohio’s Utica Shale, Week of Nov 25
December 5, 2012December 5, 2012

Here’s where the latest round permits have been issued for Utica Shale drilling by the Ohio Dept. of Natural Resources, for the week of Nov. 25, 2012:

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Industrywide Issues | Ohio | Regulation | Statewide OH

[Corrected] ODNR Moving to Quarterly Production Numbers for O&G
December 5, 2012December 5, 2012

CORRECTION: MDN has just been alerted by our friends at the Akron Beacon Journal that our information about quarterly reporting coming from ODNR is not correct. The proposed legislation which contained language about filing quarterly updates to production numbers ultimately did not pass the state legislature and therefore Ohio will (for now) stay on yearly reporting—which is unfortunate. Our thanks to Bob Downing for the heads-up on this.

On Monday the Ohio Dept. of Natural Resources (ODNR) issued its annual Ohio Mineral Industries Report. A very small part of that report covers drilling and production for oil and gas in Ohio (see that section of the report below). ODNR has taken a lot of criticism lately over the fact that shale oil and gas production numbers are only required to be filed and reported once per year by drilling companies. ~~Apparently the criticism has prompted ODNR to change the reporting requirement.~~

~~Starting in 2013, the ODNR will require (and will itself) report oil and gas production numbers on a quarterly basis.~~

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Economic Impact | Energy Services | Enterprise Products Partners | Fairfield County | Industrywide Issues | Lease & Royalty Payments | Ohio | Pipelines

ATEX Express Ethane Pipeline Will Pay OH Airport $450K
December 5, 2012December 5, 2012

The Appalachia-to-Texas (ATEX) Express Pipeline, a 1,230 mile ethane pipeline which will run from the Marcellus and Utica region to the Gulf Coast is about to ink a deal with Fairfield County, OH Airport to allow the pipeline to run under airport property. If the deal is signed, as expected in the near future, the airport will receive $450,000 to allow the pipeline under its property.

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Anadarko | Energy Companies

Anadarko’s Big Marcellus Growth in Past 4 Years
December 5, 2012December 5, 2012

Anadarko, one of the largest independent oil and natural gas E&P (exploration and production) companies in the world, issued an update yesterday for it’s onshore drilling. Among Anadarko’s onshore drilling locations is the Marcellus Shale, which has shown a dramatic increase in production over the past several years.

Anadarko’s full update is included below. The main point of the update is to crow that they’ve now passed the 100,000 barrels of oil equivalent per day for onshore production (a great milestone to be sure). The interesting thing (to MDN) are the charts that go with the update, which we’ve embedded below. The Marcellus chart shows Anadarko’s massive increase in production from virtually nothing in 2009 to more than 300 million cubic feet feet per day in 2012.

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Dominion Energy | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Statewide PA

FERC Green-Lights 2 Dominion Pipeline Projects in PA
December 5, 2012December 5, 2012

Last Friday, the Federal Energy Regulatory Commission (FERC) issued an “environmental assessment” (EA) covering two Marcellus pipeline projects proposed by Dominion Transmission: The 19-mile Tioga Area Expansion project, spanning five counties in Pennsylvania and New York, and the nearby 3.5-mile Sabinsville to Morrisville project.

FERC’s EA says neither project will adversely affect the environment, giving the projects what amounts to a green light to move forward with construction next year.

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Commodity Price | Crude Oil | Economic Impact | Exporting | Industrywide Issues | NGLs

Rusty Braziel Sketches Scenarios for U.S. NGL/Crude Prices
December 5, 2012December 5, 2012

Russell (“Rusty”) Braziel is one of the country’s most respected authorities on energy information and markets. He’s the former vice president of BENTEK Energy (bought out by Platts in 2010). He speaks, he writes, and he’s now President & Principal Consultant at RBN Energy, LLC.

Rusty presented at the LDC NGL (natural gas liquids) Forum in San Antonio yesterday, and he had some interesting things to say about the future of NGL and crude oil prices in the U.S. When Rusty speaks, people listen.

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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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