Marcellus Drilling News

Hydraulic Fracturing | Industrywide Issues

Sustainable Investments Institute Issues Report on Fracking

March 9, 2012March 9, 2012

The Sustainable Investments Institute (Si2) and the IRRC Institute yesterday released a new report titled “Discovering Shale Gas: An Investor Guide to Hydraulic Fracturing” (a copy of the 74-page report is embedded below). The report provides an in-depth look at the environmental and social impacts of shale gas development, identifies key questions for investors and includes 10 drilling company profiles. An expert panel representing industry, environmental groups and investor activists provided input to the report.

NY Republican Senator Introduces Fracking Wastewater Bill

March 9, 2012March 9, 2012

On the issue of hydraulic fracturing and shale gas drilling, the New York Republican party keeps shooting itself in the head. The latest example is a ridiculous bill just introduced into the state legislature by Long Island Republican Senator Jack Martins, 7th Senate District:

Energy Companies | Gastar Exploration

Gastar’s Marcellus Production has Huge Increase in Q411

March 9, 2012March 9, 2012

Gastar Exploration released fourth quarter 2011 results yesterday. The fourth quarter was very good for Gastar in the Marcellus, with a 1700 percent increase in average daily gas production from fourth quarter 2010, and a 179 percent increase from just the previous (third) quarter 2011. As is typical of other companies, Gastar is dedicating $88.9 million of a planned $103 million Marcellus budget (86 percent) for drilling in the liquids-rich area of the Marcellus.

Here’s the Marcellus play update from the Gastar press release:

Exxon, GE Donate $1M Each for Shale Best Practices Training

March 9, 2012March 9, 2012

Exxon Mobil and General Electric announced yesterday that each company is investing $1 million to help fund training in shale development best practices at three universities, including PennState.

Industrywide Issues | Ohio | Regulation | Statewide OH | Wastewater

OH Bill Tightens Regulation of Wastewater Injection Wells

March 9, 2012March 9, 2012

Ohio State Rep. Jay Goyal introduced legislation yesterday to tighten regulation of injection wells used for disposing Marcellus and Utica Shale wastewater. Key provisions of the bill include:

Best of the Rest

Marcellus & Utica Shale Story Links: Fri, Mar 9, 2012

March 9, 2012March 9, 2012

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading:

Hydraulic Fracturing | Industrywide Issues | Regulation

DRBC Update: When Will New Rules Come to a Vote?

March 8, 2012March 8, 2012

Large areas of the Marcellus Shale play not only have state oversight and regulation of drilling, but also oversight from two quasi-governmental organizations: the Susquehanna River Basin Commission (SRBC) and the Delaware River Basin Commission (DRBC). Wells drilled in an area covered by the SRBC must go through an approval process with the SRBC first. The SRBC gets to oversee major industrial activities (not just gas drilling) anywhere in the region of tributaries—creeks and rivers—that flow into the Susquehanna River that starts near Cooperstown and flows all the way to the Chesapeake Bay in Maryland.

The SRBC meets regularly, considers requests for drilling and water withdrawals from rivers and streams, and acts on those requests in a timely manner. Not so with the DRBC.

Belmont County, OH Landowner Sues Hess Over $100/Acre Lease

March 8, 2012March 8, 2012

Rebecca Bench, a landowner in Belmont County, Ohio is representing herself in a lawsuit she has brought against Hess. The lawsuit alleges that Mason Dixon Energy, whom she signed a lease with (that lease was eventually purchased by Hess) had no legal standing to conduct business in Ohio at the time they convinced Rebecca and her husband Kevin Bench to sign a lease in 2008 for $100 per acre. By comparison, recent lease agreements for Utica Shale leases in the county have gone as high as $5,200 per acre.

Bluescape Resources Co | Energy Companies | Nicholas County | West Virginia

Prolonged Well Flaring in Nicholas County, WV to End May 31

March 8, 2012March 8, 2012

Three gas wells drilled in Nicholas County, WV last year began flaring gas, or burning it at the wellhead, on August 28, 2011. They’re still flaring and those who live close enough to see the orange glow at night have had enough. WV state law limits gas flaring to 30 days per year for each well, but the driller, Bluescape Resources Co. (BRC), says with no pipelines in the area it has been necessary to continue the flaring. They also say the state Department of Environmental Protection (DEP) knew about their flaring plans and told BRC no special permits would be needed for extended flaring. The DEP has given BRC until May 31st to end the flaring. The DEP has also assessed a $50,000 fine.

Chesapeake Energy | Commodity Price | Energy Companies | Industrywide Issues

Traders Skeptical that Chesapeake, Others Cut Gas Production

March 8, 2012March 8, 2012

The commodity price of natural gas continues to hover near it’s 10-year low. That’s great news for consumers whose heating bills are lower, but not-so-great news for landowners with leases in the Marcellus Shale. Why? Because low prices mean it’s not profitable for drillers to go after shale gas. They are in it to make money, and if you lose money in mining natural gas, well, you stop doing it. And that’s what is happening in many Marcellus areas. Drilling hasn’t stopped—but it has slowed down.

Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Mar 8, 2012

March 8, 2012March 8, 2012

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading:

Economic Impact | Industrywide Issues | Jobs | Resources

New Website Connects Businesses to Marcellus Drilling Industry

March 7, 2012March 7, 2012

Marcellus on Main Street website Here’s a great idea: Why not start a website where companies already involved in the Marcellus drilling industry, and those companies who want to work with them, service them, do business with them, can also be listed, so they can “connect.” Sort of Facebook or LinkedIn for Marcellus-related businesses. The Marcellus Shale coalition has done just that! The new website they’ve created to connect businesses interested in the Marcellus is called Marcellus on Main Street and is located at: www.MarcellusOnMainStreet.org.

The website just launched yesterday, so it’s not full of listings yet. It does contain Marcellus Shale Coalition member firms, which is a great start. If you work at or own a business and want to list it on the site, ~~the listing is free~~. (Sorry! I was wrong, the listing is not free but $25.) Your business may be trucking, or haircutting—it makes no difference. If you want to provide a service or sell something to the drilling industry, get your business listed in this new directory.

Can Ohio Regulations Handle the Coming Shale Gas Boom?

March 7, 2012March 7, 2012

The question of whether or not Ohio is ready for a drilling boom in the Utica Shale may be moot, since the boom has already started. But an official from the Ohio Department of Natural Resources (ODNR) says with new laws passed last year, and more laws set to be passed this year, Ohio is more than ready to handle a rapid expansion of Utica and Marcellus Shale drilling in the state.

MarkWest Tells Cecil Township It’s Time to Grant Permit

March 7, 2012March 7, 2012

A long-running dispute between MarkWest and Cecil Township (in PA) may soon be resolved. Last May, MDN reported that MarkWest wanted to build a Marcellus Shale gas compressor station in Cecil Township (Washington County). They filed an application for a “special exception” to allow them to build the plant but were denied by the zoning board. MarkWest then filed a lawsuit in Washington County civil court (see this MDN story).

The lawsuit is due to go to mediation next week, but MarkWest said in a letter dated March 1 to the Cecil zoning board that the new Act 13 law recently passed means the zoning board’s decision of last year is now null and void, mediation is therefore not necessary, and that they (Cecil) should move forward with granting the permit.

Economic Impact | Industrywide Issues | Jobs | New York | Statewide NY

The Best Economic Hope for NY? Marcellus Gas Drilling

March 7, 2012March 7, 2012

MDN friend Tom Shepstone (from Energy in Depth) has a viewpoint article in today’s Binghamton Press & Sun-Bulletin. Titled “Best hope for N.Y. economy is gas drilling,” Tom makes a strong case for Marcellus drilling in New York. Among the eye-opening facts he brings to light, Tom points out:

New MarkWest Deal to Develop Infrastructure in OH Utica Shale

March 7, 2012March 7, 2012

A joint venture between MarkWest Energy and The Energy and Minerals Group (EMG), called MarkWest Utica EMG, has just signed a deal with Gulfport Energy to build new gathering pipelines for Utica wells in Harrison, Guernsey and Belmont counties (Ohio). The deal also includes MarkWest Utica processing the gas produced by Gulfport, including natural gas liquids, at its Harrison County processing complex.