Marcellus Drilling News

Industrywide Issues | Lackawanna County | Landfills | Pennsylvania

Scranton Suburb Ends Objection to Shale Cuttings at Landfill
May 1, 2012May 1, 2012

Opposition from a local township to a landfill outside of Scranton, PA that sought and was granted a permit to accept more shale cuttings has ended. Keystone Sanitary Landfill, a privately owned and operated municipal solid waste landfill located in Dunmore, PA applied to increase the daily volume of shale cuttings (leftover rock waste from drilling) from 600 to 1,000 tons per day. They also requested the Department of Environmental Protection (DEP) change their permit so they could receive the cuttings in an “unprocessed or unsolidified form” (see this MDN story).

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Best of the Rest

Marcellus & Utica Shale Story Links: Tue, May 1, 2012
May 1, 2012May 1, 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, May 1, 2012”
Energy Services | Energy Transfer Partners | Sunoco Logistics

Stop Press: ETP Acquires Sunoco for $5.3 Billion
April 30, 2012April 30, 2012

Just this morning Energy Transfer Partners (ETP), a huge pipeline company that owns 23,500 miles of pipelines and gathering systems, including the largest intrastate pipeline in Texas, announced they are buying Sunoco for $5.3 billion. One of the main reasons for the purchase? ETP said they have a growing interest in the Marcellus Shale and they want Sunoco’s assets in the Marcellus region—a sure sign that midstream and downstream will be where the action is for the foreseeable future. Infrastructure to move gas from point A to point B, and even to end users (consumers) will drive much of the activity in the Marcellus. In that light, the buyout/merger makes sense.

Sunoco is not a driller (“upstream”) but instead is mostly a downstream company, owning pipelines, terminals and marketing assets. Sunoco also has a network of approximately 4,900 retail locations in 23 states.

From the press release:

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Carrizo Oil & Gas | Columbia County | Encana Energy | EXCO Resources | Lackawanna County | Luzerne County | Pennsylvania | WPX Energy

The Marcellus “Line of Death” in NE PA
April 30, 2012April 30, 2012

Terry Engelder, Penn State geosciences professor and “father of the Marcellus Shale” once coined the term “line of death” for the point where shale stops being productive. He was specifically talking about the coal region in Pennsylvania where once-upon-many-millennia-ago high temperatures that hardened the anthracite coal also “cooked out” methane natural gas from the shale. Geologists and gas companies know the area around the Lackawanna Syncline—a banana-shaped formation that runs through Luzerne and Lackawanna counties—is likely to be devoid of methane, but what they don’t how is how far from the Syncline the line of death will be found.

We now have another plugged well that helps indicate where shale is unproductive—this one in Sugarloaf Township in neighboring Columbia County:

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Coterra Energy (Cabot O&G) | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Susquehanna County

PA DEP Continues Investigating 2 Water Wells Near Dimock
April 30, 2012April 30, 2012

Old news being reported as new news: The PA Department of Environmental Protection continues its investigation into a possible case of methane migration in two water wells just outside of Dimock Township. The investigation started in 2010 and is not part of the ongoing Dimock situation. The “new news” part of the story is that Cabot Oil & Gas added more cement in the casing of a nearby Greenwood 1 well (in March).

DEP officials are now monitoring to see if the additional cemented casing cuts down on methane in the two water wells. If it does, it will be obvious that Cabot’s Greenwood 1 well is the cause. If it does not reduce methane in the water wells, back to the drawing board and the investigation continues.

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Chesapeake Energy | Energy Companies | New York | Statewide NY

NYS Comptroller Threatens Chesapeake Energy
April 30, 2012April 30, 2012

New York State Comptroller Thomas DiNapoli, who is anti-drilling, “scolded” Chesapeake last week (according to the headlines) over the program that allows CEO Aubrey McClendon to participate in every well drilled by the company, with up to 2.5 percent ownership in each well. Although DiNapoli released a press statement to his favored mainstream media (MSM) buddies, he has yet to publicly release the statement “scolding” Chesapeake.

Here’s what we have from MSM accounts:

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Economic Impact | Industrywide Issues | Ohio | Statewide OH

Gov. Kasich: Shale Drilling is Good, but OH Needs Diversity
April 30, 2012April 30, 2012

Speaking at the Eastern Ohio Development Alliance’s annual meeting last Friday, Ohio Gov. John Kasich said that although he supports shale oil and gas drilling in the Marcellus and Utica Shales in his state, he doesn’t want to put all of Ohio’s economic eggs in one basket. He said the state needs to focus on more than just the energy sector to help elevate Ohio out of its current economic doldrums.

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Polls

New MDN Poll: Will McClendon be CEO One Year from Now?
April 30, 2012April 30, 2012

MDN launches a new poll today. Over the past several weeks, Chesapeake Energy has been in the midst of a public relations storm. Chesapeake operates a program called the Founders Well Participation Program (FWPP) which allows CEO Aubrey McClendon to invest his own money, and reap the financial rewards, of up to a 2.5 percent stake in every well drilled by Chesapeake. He must help fund his 2.5 percent of drilling costs. Reuters disclosed a few weeks ago that McClendon has been borrowing—big time—in order to meet his obligations to the program. He has borrowed (i.e. mortgaged his interest) to the tune of $1.1 – $1.4 billion, depending on the news source.

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Best of the Rest

Marcellus & Utica Shale Story Links: Mon, Apr 30, 2012
April 30, 2012April 30, 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: Mon, Apr 30, 2012”
Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

NY DEC Chief Says Supportive Towns More Likely to be Drilled
April 27, 2012April 27, 2012

MDN reported earlier this week that certain key New York State senators (and others) were signaling that if/when hydraulic fracturing is allowed to go forward in the state, it may only happen in communities that support it (see this MDN story). We now have further confirmation that indeed that will likely be the case from none other than Joe Martens, the Commissioner of the Department of Environmental Conservation (DEC).

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

Woodstock & Fracking Have One Thing in Common
April 27, 2012April 27, 2012

The Town of Bethel, in Sullivan County, NY, was home to the Woodstock “music festival” in 1969. Bethel is also the latest New York township to ban hydraulic fracturing. Both events have at least one thing in common: They’re both supported by hippies and hippie-wannabes.

Last night, the Bethel town board voted 5-0 to ban fracking before a “crowd” of 70 in attendance:

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Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Susquehanna County

New Video about Dimock, PA Tells the Real Story
April 27, 2012April 27, 2012

There’s been no shortage of pejorative media coverage painting the small town of Dimock, PA (in Susquehanna County) as the new Love Canal—a chemical wasteland. The image portrayed in a constant drumbeat by mainstream media, and Hollywood celebrities, is that Marcellus Shale gas drilling has fouled the water in and around Dimock. MDN will not recount the history of Dimock, just do a search on MDN for a myriad of background stories.

What you need to know is that the water is clean (proven clean by multiple tests, the latest of which is from the federal EPA themselves). And what you further need to know is that anti-drillers, in their zeal to find one place, anyplace, they can point to where water was affected by drilling, has unfairly destroyed the reputation of this innocent town.

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Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

Yet Another PA Township “Supports” Act 13 Lawsuit
April 27, 2012April 27, 2012

Wednesday night, Scott Township, PA commissioners unanimously voted to pass a resolution showing symbolic (but no real) support for the PA townships that have sued the State of Pennsylvania over provisions in the new Act 13 Marcellus drilling law. The lawsuit takes exception to state rules replacing local zoning laws that control oil and gas drilling.

Scott is just the latest municipality, in addition to Pittsburgh, Tullytown, Wilkinson, Luzerne, Buffalo, Hanover and other municipalities who have also expressed support, but refuse to actually join the lawsuit (see this MDN story).

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Dominion Energy | Energy Services | Exporting | Industrywide Issues | Litigation | Maryland | Statewide MD

Sierra Club Will Try to Block Maryland LNG Export Terminal
April 27, 2012April 27, 2012

The Sierra Club will oppose and attempt to block a facility that will liquefy and export natural gas from Cove Point, Maryland. The very same facility from which Sumitomo and Tokyo Gas are trying to negotiate a deal to receive LNG from Dominion Resources (see this MDN story).

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Dominion Energy | Energy Services | Exporting | Industrywide Issues

Japan Negotiates to Buy Marcellus Gas
April 27, 2012April 27, 2012

Japan needs natural gas and they need it badly. After the Fukushima nuclear disaster last year, Japan has shut down 49 of their 50 nuclear reactors. That spells an impending shortage of electricity in the country. One of the ways to make it up is by using natural gas. Natural gas currently costs over $17 per million BTUs (mmBtu) in Asia. The U.S. commodity price of natural gas is currently under $2 mmBtu. So Japanese trading house Sumitomo Corp and Tokyo Gas Co Ltd are in talks with Dominion Resources to import up to 2.3 million tons of liquefied natural gas (LNG) per year for 20 years starting in 2017.

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Chesapeake Energy | Energy Companies

Chesapeake Energy Ends Special Deal for CEO Aubrey McClendon
April 27, 2012April 27, 2012

Chesapeake Energy announced yesterday that the program they’ve had in place with CEO Aubrey McClendon that grants him 2.5 percent ownership and participation in every well drilled by the company (called the Founder Well Participation Program) will end in 2015 at the latest, and possibly sooner. The company also seemed to backpedal a bit from an earlier statement that the board was “fully aware” of McClendon’s private financing deals, deals that he used to cover his 2.5 percent portion of drilling expenses.

From the Chesapeake press release:

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