Marcellus Drilling News

Economic Impact | Industrywide Issues

Delaware Utility Cuts NatGas Rate 14.4% Thanks to Marcellus
September 5, 2012September 5, 2012

Delmarva Power is a utility company serving over a half million residents throughout the state of Delaware. Some 124,000 of those residents also purchase natural gas from Delmarva, and the price they pay for natural gas is plunging 14.4% thanks to the Marcellus Shale and the miracle of hydraulic fracturing. And no, there is no Marcellus drilling in Delaware! The shale gas comes from Pennsylvania and other states.

This is just one (of many) examples of how shale gas benefits everyone—not just energy companies and the landowners who allow drilling on their land and the hundreds of thousands who have jobs because of drilling. Natural gas customers are big beneficiaries too.

Read More “Delaware Utility Cuts NatGas Rate 14.4% Thanks to Marcellus”
Coterra Energy (Cabot O&G) | Economic Impact | Energy Companies | Health Impacts | Industrywide Issues | Pennsylvania | Susquehanna County

Cabot Effort Raises $4.4 Million for PA Physicians Clinic [Free]
September 5, 2012September 5, 2012

Earlier this year, Cabot Oil & Gas committed to donate up to $2 million to help fund building a new physicians clinic and hospital for the Montrose, PA area (see this MDN story).

This is “the rest of the story” as Paul Harvey used to say. Cabot indeed contributed an initial $1 million and then worked hard to encourage others to give. Local businesses and organizations like the VFW stepped up with big contributions and gave $1.2 million on top of Cabot’s initial $1 million. Cabot then went above and beyond, matching their donations with another $1.2 million! In addition, the Weinberg Foundation wrote a check for $1 million too. Total raised? $4.4 million. (Be sure to watch the video below.)

Read More “Cabot Effort Raises $4.4 Million for PA Physicians Clinic [Free]”
Energy Companies | Stone Energy

Stone Energy CEO Gives Marcellus Update at Barclays Event
September 5, 2012September 5, 2012

Dave Welch, Chairman, President and CEO of Stone Energy presented at the Barclays Capital CEO Energy-Power Conference yesterday. In his prepared remarks, Mr. Welch had a fair bit to say about Stone’s drilling activities and future plans for the Marcellus and Utica Shale (variously called Appalachia and the Devonian shale below).

Among his remarks: Stone has drilled 55 Marcellus Shale wells to date, 25 of which are currently online and producing about 56 million cubic feet of natural gas per day. They have another 200 drilling locations in Marcellus/Utica wet gas areas. For now, they’re going to stick with one drilling rig in the Marcellus region because it’s “gotten so efficient.”

Here’s a transcript (courtesy of Seeking Alpha) of Mr. Welch’s comments relevant to the Marcellus and Utica region:

Read More “Stone Energy CEO Gives Marcellus Update at Barclays Event”
Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Statewide PA

New Production Milestone Achieved by Cabot Oil & Gas
September 5, 2012September 5, 2012

Cabot Oil & Gas CEO Dan Dinges released a statement yesterday highlighting a new milestone just achieved by the driller: Natural gas production for Cabot averaged over 700 million cubic feet per day (Mmcf) for the last two weeks, reaching as high as 752 Mmcf during one 24-hour period. Cabot is one of the largest producers in Pennsylvania’s Marcellus Shale.

From the press release:

Read More “New Production Milestone Achieved by Cabot Oil & Gas”
Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Sep 5, 2012
September 5, 2012September 5, 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: Wed, Sep 5, 2012”
Industrywide Issues | Pennsylvania | Property Value | Statewide PA

Have a Marcellus Lease? Forget a Mortgage with ESB Bank
September 4, 2012September 4, 2012

It appears that ESB Bank (located in the Pittsburgh, PA area) is running a scam on Pennsylvania landowners with Marcellus Shale leases. ESB doesn’t tell landowners with leases looking to finance or refinance a mortgage that they won’t approve the application because of the lease—until after the homeowner has spent $500 to have an appraisal done. Oh, and ESB keeps the $500—sorry, no refunds.

Fortunately, ESB Bank seems to be one of the only banks (if not the only) refusing to finance/refinance properties with Marcellus leases. Here is one Pennsylvanian’s story of being fleeced by ESB Bank:

Read More “Have a Marcellus Lease? Forget a Mortgage with ESB Bank”
Hydraulic Fracturing | Industrywide Issues | Ohio | Regulation | Statewide OH

Ohio Home Rule Movement to Regulate Drilling Picks up Steam
September 4, 2012September 4, 2012

The Akron Beacon Journal reports there’s a new movement gaining steam in Ohio to return “home rule” to local municipalities when it comes to oil and gas drilling. Home rule, for those unfamiliar, grants municipalities a say in whether, and where, drilling for natural gas and oil can occur within a township. Think of it as zoning, which is precisely what it is. The home rule debate is currently red hot in New York State where, similar to Ohio, the state previously passed a law removing the right of local municipalities to regulate drilling in any way (including bans). It’s also a hot topic in Pennsylvania where zoning provisions in the newly passed Act 13 law are now in PA Supreme Court awaiting a final decision.

Ohio passed a law in 2004 taking the right away from municipalities to regulate drilling. Now, some residents are trying to get the state legislature to reconsider it:

Read More “Ohio Home Rule Movement to Regulate Drilling Picks up Steam”
Hydraulic Fracturing | Industrywide Issues | Wastewater

Is Marcellus/Utica Shale Wastewater Dangerously Radioactive?
September 4, 2012September 4, 2012

The Columbus Dispatch attempts to gin up anti-fracking sentiment by using a year-old study by the U.S. Geological Survey. The Dispatch’s argument, in a nutshell: A lot of Marcellus Shale wastewater coming from Pennsylvania to Ohio for disposal via deep injection wells is “radioactive” (i.e. dangerous if it should leak onto the ground). The Utica Shale in Ohio is like the Marcellus in Pennsylvania, ergo, fracking shale in the Utica will produce radioactive waste. Conclusion: Don’t frack.

From the article:

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DTE Energy | Enbridge | Energy Services | Industrywide Issues | Pipelines | Spectra Energy | Utica Shale

New Utica Shale Pipeline to Midwest Announced
September 4, 2012September 4, 2012

Three companies have formed a joint venture to build a new Utica Shale pipeline from Ohio through Michigan and eventually into Canada, delivering Utica Shale gas to Midwestern markets. The three companies are DTE Energy—a Detroit-based energy company, Enbridge—Canada’s largest natural gas distribution company, and Spectra Energy—one of North America’s largest pipeline companies and a member of the Fortune 500 list. The partners plan an open season to lock in customers for the new pipeline later this year. The pipeline won’t be built and in service until late 2015 at the earliest.

From the joint press release issued this morning:

Read More “New Utica Shale Pipeline to Midwest Announced”
Pennsylvania | Statewide PA

PA State Geologist Talks about Shale Gas in Gettysburg Basin
September 4, 2012September 4, 2012

The Harrisburg Patriot-News has an excellent article (well worth your time to read) on the topic, Is there shale gas in the mid-state area of PA? The article’s author, Donald Gilliland, first introduces us to the state geologist, George Love, painting an interesting picture of where he works and what he does. Gilliland then skewers the southeastern Republicans (properly so) for inserting an eleventh-hour moratorium on drilling in their part of the state into the recent state budget (see MDN’s dim view of their action in this article). The moratorium prevents drilling in the South Newark Basin, located around the Philadelphia area, until a study is completed. George Love is the man in charge of that study.

But it is the article’s focus on another nearby shale basin, formed at roughly the same time as the South Newark Basin, that is fascinating to MDN. It’s called the Gettysburg Basin, so-named for the historic place under which part of it lies. Would there, could there be drilling under the hallowed ground at Gettysburg and other mid-state locations like Harrisburg? Mr. Love’s study of the South Newark will also look at other basins in the state and will help answer those questions.

Read More “PA State Geologist Talks about Shale Gas in Gettysburg Basin”
Health Impacts | Industrywide Issues | Pennsylvania | Statewide PA

Much-Ballyhooed Marcellus Health Impact Study Not Funded
September 4, 2012September 4, 2012

MDN recently reported on the big story that two large health care systems are working together to conduct what is believed to be the first widespread health impact study of residents living in areas where there is active Marcellus drilling (see this MDN story). The two health care systems, Guthrie Health and Geisinger Health System, serving a combined 2.4 million patients, have good intentions. But now comes the word they don’t have the money (yet) to conduct the study. Oops. That’s embarrassing.

Read More “Much-Ballyhooed Marcellus Health Impact Study Not Funded”
Armstrong County | Energy Services | Industrywide Issues | Ion GX Technology | Pennsylvania | Seismic Testing

Manor Township, PA Denies ION Access for Seismic Survey
September 4, 2012September 4, 2012

Houston-based ION Geophysical GX Technologies recently made a request to Manor Township (Armstrong County, PA) to allow them onto town property to conduct seismic mapping of the Marcellus and other underground structures. The board of supervisors for the town turned them down.

Here’s what ION told the supervisors at a meeting in July about what they hoped to do:

Read More “Manor Township, PA Denies ION Access for Seismic Survey”
Commodity Price | Industrywide Issues

Latest EIA Numbers Show NatGas Production Still High
September 4, 2012September 4, 2012

Energy industry consultant and investment analyst Richard Zeits writes on the Seeking Alpha website about the U.S. Energy Information Administration’s latest natural gas production statistics released on Friday. He observes that natural gas production in May and June for the lower 48 states remained virtually unchanged. Which means the commodity price for natural gas is likely not going up any time soon. Huge quantities of supply with the same demand equals low prices—Econ 101.

Read More “Latest EIA Numbers Show NatGas Production Still High”
Best of the Rest

Marcellus & Utica Shale Story Links: Tue, Sep 4, 2012
September 4, 2012September 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, Sep 4, 2012”
About MDN | Calendar

Calendar of Events for Sep 3-16, 2012 [Free]
September 3, 2012

MDN will not be published today, Labor Day (Sept. 3). However, we are sending out the calendar for this week and next, which is listed below.

Read More “Calendar of Events for Sep 3-16, 2012 [Free]”
Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

NY Landowner Coalition Sounds Alarm on New Delay Request
August 31, 2012August 31, 2012

The Joint Landowners Coalition of New York (JLCNY) yesterday emailed an “urgent call to action” to New York landowners and those in the state who support natural gas drilling. The JLCNY has received a tip from “credible sources” that Gov. Andrew Cuomo has been asked to once again delay the release of new drilling rules in New York, known as the SGEIS, until after the election on Nov. 6—effectively meaning “not until 2013.” The JLCNY call to action asks landowners and gas supporters to phone the governor’s office, along with the offices of other prominent politicians, asking them to not delay the release of new drilling rules.

The JLCNY does not comment on who the credible sources are, nor who is doing the asking for another delay. MDN has its own theories, but we’ll hold off for now on the speculation. The important thing (for those of us who support drilling and want the new DEC rules released NOW), is to pick up the phone and start calling.

Here’s the call to action email received by MDN:

Read More “NY Landowner Coalition Sounds Alarm on New Delay Request”