Marcellus Drilling News

BP | Columbiana County | Energy Companies | Lease & Royalty Payments | Ohio

BP Landmen Very Active in Columbiana County, OH
September 5, 2012September 5, 2012

More evidence of BP expanding their lease purchases in Ohio: Gunter Land Services, a landman agent for BP, has set up offices in Lisbon, Canton and Poland, OH. BP has also set up offices in Warren, OH. The landmen are actively canvassing landowners in the area in hopes of stringing together a new large block of acreage that BP can begin drilling “sometime next year.”

From the Youngstown Business Journal:

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Energy Services | GreenHunter Resources | Industrywide Issues | Ritchie County | Wastewater | West Virginia

New Shale Wastewater Injection Well Opens in WV
September 5, 2012September 5, 2012

A new deep injection well for oil and gas drilling wastewater has just opened for business in West Virginia. GreenHunter Energy today announced the beginning of official operations for their new 6,100 foot deep injection well in Ritchie County, WV. According to GreenHunter CEO Jonathan Hoopes, they’re already near full capacity with incoming Marcellus and Utica Shale wastewater.

From the press announcement:

Read More “New Shale Wastewater Injection Well Opens in WV”
Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Steuben County | Yates County

Anti-Drillers Hijack the Keuka Watershed Improvement Cooperative
September 5, 2012September 5, 2012

The board that oversees the Keuka Watershed Improvement Cooperative has voted to request Gov. Andrew Cuomo grant the Keuka watershed (Finger Lakes area of New York) protection against hydraulic fracturing—to put it “off limits”—as will be done with both the New York City and Syracuse watershed areas (if the draft version of the SGEIS drilling rules are passed as written).

But at least one village trustee in the area is concerned that the board has turned the Keuka watershed group into a lobbying (i.e. political) organization, and Penn Yan’s village attorney says the request’s language goes well beyond drilling restrictions.

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Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

PA Lawyers in Act 13 Lawsuit Say State Legislature has “Supreme Authority”
September 5, 2012September 5, 2012

A quick update on the Act 13 lawsuit before the Pennsylvania Supreme Court: Lawyers for the state, on behalf of the governor, the Dept. of Environmental Protection and the Public Utility Commission, filed a 45-page brief yesterday defending the law. The seven towns suing the state to overturn the zoning portions of Act 13 (the part that disallows local municipal control over the siting of drilling and compressor plants, etc.) will file their brief later this month.

Among the arguments made by the state in defending the zoning portion of Act 13:

Read More “PA Lawyers in Act 13 Lawsuit Say State Legislature has “Supreme Authority””
Energy Companies | Gulfport Energy | Harrison County | Ohio | Utica Shale

Another Gulfport Utica Well in Harrison County Coming Online
September 5, 2012September 5, 2012

Gulfport yesterday reported initial peak results for its Utica Shale well called Boy Scout 1-33H, located in Deersville (Harrison County, OH). Although the flow rates are not as great as Gulport’s recently reported “alpha dog” well, the Wagner 1-H, also in Harrison County (see this MDN story), the new Boy Scout 1-33H is turning in respectable numbers:

Read More “Another Gulfport Utica Well in Harrison County Coming Online”
Dominion Energy | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Statewide PA | Statewide WV | West Virginia

Dominion Turns On Appalachian Gateway Project Pipeline
September 5, 2012September 5, 2012

Dominion Transmission “threw the switch” (or rather opened the valve) to the Appalachian Gateway Project yesterday. The project was 3/4 of a billion dollars spent by Dominion to upgrade and expand existing infrastructure, and to build 110 miles of new pipeline. The end result is a big increase in the amount of Marcellus Shale gas flowing from West Virginia and southwestern Pennsylvania to markets along the eastern seaboard.

From the Dominion press release:

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BP | Chesapeake Energy | Energy Companies | Lease & Royalty Payments | Ohio | Statewide OH | Utica Shale

An Update on Ohio’s Utica Shale – Facts & Figures
September 5, 2012September 5, 2012

An article in Crain’s Cleveland Business yesterday takes a look at the pattern of investment in the Utica Shale play in Ohio. According to the article, the Utica follows the same model found in other areas of the world: First smaller independent oil and gas companies invest doing the “retail” work of going house to house to get leases signed. They may even drill a few wells. But soon after, larger o&g companies, the “majors” descend and buy up many of those investments.

The article shares some interesting facts and figures about the current status of investment and development of the Utica in Ohio, among them:

Read More “An Update on Ohio’s Utica Shale – Facts & Figures”
Energy Services | Industrywide Issues | Luzerne County | Pennsylvania | Pipelines | Regulation | UGI Energy Services

Luzerne County Denies UGI Permit to Build Compressor Station
September 5, 2012September 5, 2012

Sadly, the Luzerne County, PA zoning hearing board has voted to deny UGI Energy Services a permit to build a much-needed compressor station in West Wyoming. The station would help bring low-cost shale gas to local customers. Apparently local customers in Luzerne County prefer paying higher costs for their natural gas.

Here’s what happened last night:

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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:

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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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