Marcellus Drilling News

Aither Chemicals | Energy Services | Industrywide Issues | Kanawha County | Processing Plants | West Virginia

New Movement on the Aither Chemicals Cracker Plant in WV?
May 3, 2012May 3, 2012

A month and a half ago it seemed imminent that Aither Chemicals would announce they would build a new ethane cracker plant at the Bayer CropScience plant site at Institute Industrial Park, located in Kanawha County, near Charleston, WV (see this MDN story). Bayer CropScience, owner of the site, and MarkWest Energy, a huge pipeline company, were named as potential partners in the deal. But the expected announcement never came, and all has been silent since.

An article in the Charleston Daily Mail caught MDN’s eye, an article that says the local city of Nitro, WV have filed a petition with Kanawha County to annex 44 properties surrounding the Bayer CropScience plant. The properties in that area of the county are unincorporated—no official town or city municipal government control—and if Nitro annexes the property surrounding the plant, it prevents any other communities from trying to annex the plant itself at some future date.

Read More “New Movement on the Aither Chemicals Cracker Plant in WV?”
Broome County | Chenango County | Coterra Energy (Cabot O&G) | Delaware County | Energy Companies | Energy Services | Industrywide Issues | New York | Pennsylvania | Pipelines | Schoharie County | Susquehanna County | Williams

Williams & Cabot Partner on New 120-Mile PA to NY Pipeline
May 3, 2012May 3, 2012

Williams Partners and Cabot Oil & Gas are working on a new 120-mile natural gas pipeline, dubbed the Constitution Pipeline, that will stretch from Susquehanna County, PA through Broome County, NY, and on through Chenango County, Delaware County, and terminate in Schoharie County, connecting to the Iroquois Gas Transmission pipeline and the Tennessee Gas pipeline (see the map embedded below).

Read More “Williams & Cabot Partner on New 120-Mile PA to NY Pipeline”
Energy Companies | EXCO Resources | Lycoming County | Pennsylvania

EXCO Resources Marcellus Production Up 7% from 2011
May 3, 2012

EXCO Resources released their first quarter operational update on Tuesday. In the Marcellus Shale, EXCO is currently operating three drilling rigs with plans to drill 49 wells this year in the Marcellus. Most of EXCO’s drilling happens in Lycoming County, PA (Williamsport area).

The relevant portion of the EXCO update concerning the Marcellus:

Read More “EXCO Resources Marcellus Production Up 7% from 2011”
Best of the Rest

Marcellus & Utica Shale Story Links: Thu, May 3, 2012
May 3, 2012May 3, 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: Thu, May 3, 2012”
eCORP International | Energy Companies | Lease & Royalty Payments | New York | Tioga County (NY)

Tioga County, NY Lease Deal with eCORP Falls Apart
May 2, 2012May 2, 2012

It looks like it’s time to put away the champagne bottle and glasses that New Yorkers had brought out to toast a deal in Tioga County, NY that would use LPG (waterless) fracking and perhaps herald an early end to more than four years of a horizontal drilling moratorium.

In March, MDN reported on a deal announced between eCORP International and the Tioga County (NY) Landowners Group, also known as Southern Tier Energy Partners (STEP), to lease 135,000 acres in Tioga County with an eye to using LPG waterless fracking (see this MDN story). After the initial announcement, eCORP released another press statement outlining the deal that both sides had supposedly worked out, a somewhat complicated arrangement in which the approximately 2,000 landowners would be split into 13 independent operating companies and would become part-owners in those companies (see this MDN story).

Read More “Tioga County, NY Lease Deal with eCORP Falls Apart”
Lease & Royalty Payments | Resources

Innovative New Way for Landowners to Attract Lease Offers
May 2, 2012May 2, 2012

ShaleNavigator is a web-based natural gas mapping system MDN has highlighted before (see this MDN story). The ShaleNavigator website allows users to display various “layers” of information on a map, including where wells have been permitted, who the driller is, where pipelines are located, and more. Users can zoom in or out and turn layers on or off. A cool service.

ShaleNavigator has just added an important new layer to their mapping system called the “Available Property” layer (see image below). This new layer shows properties from landowners that are available for lease, with the actual property boundaries. Here’s the neat thing: users can turn on the other layers, like recent permits, pipelines, etc. so those interested in leasing property for drilling, like drilling companies and landmen, can visually see the “context” of the offered property. Now that’s really cool.

Read More “Innovative New Way for Landowners to Attract Lease Offers”
Hydraulic Fracturing | Industrywide Issues

New “Research” Says Fracking will Contaminate Aquifers
May 2, 2012May 2, 2012

A new research paper titled “Potential Contaminant Pathways from Hydraulically Fractured Shale to Aquifers,” bought and paid for by anti-drilling organizations Catskill Mountainkeeper and the Park Foundation, christened “peer-reviewed” and published in an obscure journal called Ground Water, concludes that fracking fluids won’t stay put a mile below solid rock and will instead travel uphill, through that mile of solid rock, and contaminate water aquifers—within a few years.

What scientific method was used to conduct this all-important research that foretells the end of safe drinking water as we know it? Computer models. Yeah, the author of this “important new study” sat and played with computer models, got a few of his buddies to sign off on his “research,” got paid a boatload of money from anti-drilling organizations and published it. And now, shazam, everyone is supposed to run for the hills and end all fracking everywhere. Nice try.

Read More “New “Research” Says Fracking will Contaminate Aquifers”
Chesapeake Energy | Commodity Price | Energy Companies | Industrywide Issues

Chesapeake’s NatGas Production Cuts Never Materialized
May 2, 2012May 2, 2012

In January 2012, Chesapeake Energy announced they would curtail (reduce) their natural gas production by 1/2 billion cubic feet (bcf) per day. In February, they announced they would double it to 1 bcf per day (see this MDN story). Other energy companies also announced they would cut production, all in an attempt to reduce supply and boost the price of natural gas. But commodities traders were wary of those announcements, saying in essence, “We’ve heard this before,” and that real cuts in production were never forthcoming (see this MDN story). Looks like the wary traders were right.

Read More “Chesapeake’s NatGas Production Cuts Never Materialized”
Brooke County | Chesapeake Energy | Energy Companies | Lease & Royalty Payments | West Virginia

Brooke County School District Signs Lease with Chesapeake
May 2, 2012May 2, 2012

The Brooke County, WV Board of Education on Monday approved a lease deal with Chesapeake Energy that will allow natural gas drilling beneath school-owned property. The deal allows Chesapeake to drill under any of the school’s collective 189 acres, which is scattered throughout the county at different locations. The signing bonus is $3,500 per acre for each acre drilled, plus 18 percent royalties.

Read More “Brooke County School District Signs Lease with Chesapeake”
Best of the Rest

Marcellus & Utica Shale Story Links: Wed, May 2, 2012
May 2, 2012May 2, 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, May 2, 2012”
Chesapeake Energy | Energy Companies

Breaking: Chesapeake to End FWPP Early, Searches for New Chairman
May 1, 2012May 1, 2012

Still reeling from a press pounding, the Chesapeake Energy board of directors today announced that they and CEO Aubrey McClendon will end the Founders Well Participation Program (FWPP) early—on June 30, 2014 (18 months before it was due to end). The program grants McClendon the right to up to 2.5 percent ownership in each well drilled by the company, but also requires him to kick in his portion of the drilling costs. McClendon was using loans or mortgages to come up with his portion of the cash needed to drill—loans which now total nearly $1.4 billion. So stung by the revelation of just how much McClendon has borrowed, the board and McClendon will end the program.

But also part of today’s announcement is that the board of directors is looking for a non-executive chairperson. Currently, McClendon is the chairman of the board in addition to his role as CEO. When a new non-executive chairperson is found, McClendon will relinquish his role as chairman but stay at the helm as CEO. This is, no doubt, an effort to show the company is being more rigorous and impartial when it comes to the decisions by the board. That is, they want to reassure stockholders that everything is fine in the company, and that no financial funny business is going on behind the scenes.

Read More “Breaking: Chesapeake to End FWPP Early, Searches for New Chairman”
Energy Companies | Hydraulic Fracturing | Industrywide Issues | Range Resources Corp | Regulation

EPA Administrator Al Armendariz Resigns over Crucify Comment
May 1, 2012May 1, 2012

Al Amrendariz, EPA Region 6 administrator (Texas and surrounding states) has been hoist by his own petard. Yesterday he resigned—in disgrace. It seems nearly everyone (but anti-drillers) were calling for his resignation after a video of Armendariz came to light where he outlined his philosophy of enforcement against energy company “violators” to that of the Romans who used to enter a village, find the first five men, and crucify them—which had the effect of, shall we say, making everyone else behave themselves (see MDN’s previous story on Armendariz to watch the infamous video).

Read More “EPA Administrator Al Armendariz Resigns over Crucify Comment”
Commodity Price | Industrywide Issues

Graph Showing NatGas Rig Count vs NatGas Price
May 1, 2012May 1, 2012

In a Reuters news story about the Energy Information Administration’s (EIA) latest report showing natural gas production fell slightly in February, we get the following graphic which MDN found interesting. It shows the Baker Hughes rig count (number of natural gas drilling rigs) plotted as one line, with the second plotted line representing natural gas futures prices. The natural gas rig count—drilling rigs dedicated to drilling for natural gas in the lower 48 states—is now at a 10-year low. The count as of last Friday was 613, the lowest it’s been since April 2002. Gas prices are also at 10-year lows.

Read More “Graph Showing NatGas Rig Count vs NatGas Price”
Bradford County | Hydraulic Fracturing | Industrywide Issues | Luzerne County | Lycoming County | Pennsylvania | Susquehanna County | Tioga County (PA)

SRBC Lifts PA Water Withdrawal Restrictions, Drilling Resumes
May 1, 2012May 1, 2012

There is no official notice posted on the Susquehanna River Basin Commission’s (SRBC) website, but according to a Reuters news story, the SRBC has lifted its temporary ban on water withdrawals implemented two weeks ago on April 18. Hydraulic fracturing uses a lot of water. Drillers get the water from various sources, most often rivers and streams. If that river or stream happens to be located in the Susquehanna River Basin, withdrawals are overseen by the SRBC, which ensures water levels do not get too low.

Read More “SRBC Lifts PA Water Withdrawal Restrictions, Drilling Resumes”
Chesapeake Energy | Energy Companies

Chesapeake’s Stock Moves Higher on Analyst Comment
May 1, 2012May 1, 2012

A little good news for Chesapeake Energy. Chesapeake’s stock opened at $18.05 yesterday, and closed at $18.44, a 2.2 percent boost. The price remains significantly down from the over $35 per share price it had been trading it within the past year, but still, a movement up is a good thing.

If you’ve been reading MDN for any length of time, you know about the current public relations firestorm Chesapeake finds itself in over it’s Founders Well Participation Program (FWPP), a program in which CEO Aubrey McClendon gets up to a 2.5 percent ownership interest in each well drilled by the company. The controversy surrounds how he finances his portion of the drilling cost. He’s taken out loans (in essence mortgages) against his 2.5 percent interest—to the tune of $1.4 billion. That “revelation” caused the Chesapeake stock price to take a tumble (see below).

Read More “Chesapeake’s Stock Moves Higher on Analyst Comment”
Aqua America | Energy Services | Hydraulic Fracturing | Industrywide Issues | Lycoming County | Pennsylvania | Pipelines | PVR Partners

New Water Pipeline Reduces Water Truck Trips in PA
May 1, 2012May 1, 2012

Aqua America and Penn Virginia Resource Partners (PVR) issued a press release yesterday to call attention to a recently completed private pipeline project in the Marcellus Shale in north-central PA. What’s new and different about this pipeline is what it carries: water. The newly completed pipeline supplies water to drilling sites without the need for water trucks—and that’s the “angle” Aqua America and PVR are pushing. They tout the fact that already, in less than a month of operation, the pipeline has eliminated more than 2,000 water truck trips.

Read More “New Water Pipeline Reduces Water Truck Trips in PA”