Marcellus Drilling News

Sudden Resignation of Enerplus President Dana Johnson

March 29, 2012March 29, 2012

Enerplus Corporation, a Denver-based exploration and production company, announced yesterday that its president has resigned “to pursue other opportunities.” No word on what those other opportunities are. According to MDN’s newly published Marcellus and Utica Shale Databook 2012 – Volume 1, Enerplus had active Marcellus drilling operations in both Clinton County, PA and Preston County, WV in 2011.

South Fayette School Passes on Offer from Range Resources

March 29, 2012March 29, 2012

The South Fayette School District in South Fayette Township (Allegheny County), PA has decided to pass on an offer from Range Resources to transfer a Marcellus Shale drilling lease previously signed with Chesapeake Energy.

Why Sunbury, PA Mayor Supports Marcellus Waste Facility

March 29, 2012March 29, 2012

As MDN reported yesterday, Clean Harbors Environmental Services of Norwell, Mass. wants to build a Marcellus Shale waste processing facility in Sunbury, PA (see this MDN story). Some area residents are not happy about it, but not so with Mayor David Persing. He supports it and offers his thinking and rationale for supporting the proposed project:

New Compressor Station Near Pittsburgh Hits Opposition

March 29, 2012March 29, 2012

Superior Appalachian Pipeline LLC has filed for a permit to construct a new compressor station in northern Allegheny County, PA (near Pittsburgh):

Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Mar 29, 2012

March 29, 2012March 29, 2012

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

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

BP’s Big Utica Shale Deal, Leases 84K Acres in Ohio

March 28, 2012March 28, 2012

keeping secrets BP has entered the Utica Shale play by signing a lease agreement with with the Associated Landowners of the Ohio Valley (ALOV) group to lease 84,000 acres in Trumbull County, OH. Not sure why, but BP and the ALOV group officially are not disclosing the terms of the deal (as you’ll see in the press release below). However, terms have already leaked:

Industrywide Issues | Ohio | Statewide OH | Taxation

OOGA Comes Out Swinging Against Kasich Tax Proposal

March 28, 2012March 28, 2012

The Ohio Oil and Gas Association (OOGA) issued a press release on Monday taking Ohio Gov. John Kasich to task for his proposal to slap a severance tax increase on the nascent Utica Shale drilling industry and use the proceeds to give taxpayers an income tax reduction. The new tax increase on drillers has been tentatively removed from budget discussions, but OOGA believes Kasich won’t let it rest and will likely try to resurrect it.

From the OOGA press release:

After 7 Years of No Drilling, PA Families Sue to End Contract

March 28, 2012March 28, 2012

Seven Beaver County, PA families filed a lawsuit yesterday in Common Pleas Court accusing O&G Investments of Wooster, Ohio of not drilling on their land (and not paying them) for the past seven years. The lawsuit also names Chesapeake Energy, who purchased the leases from O&G last year and who now, “at the last minute,” is trying to tie up the land and continue the contract by moving in equipment to start a drill pad—even though they haven’t received any permits to drill.

Marcellus Waste Processing Facility Planned for Sunbury, PA

March 28, 2012March 28, 2012

Clean Harbors Environmental Services of Norwell, Mass. has applied for a permit to build a “waste processing facility” in Sunbury (Northumberland County), PA. The facility will accept up to 1,000 tons of Marcellus Shale drill cuttings, drilling mud and other materials per day. Although the waste is not toxic, some local officials are concerned and upset that the state DEP alone will make a decision about whether or not to approve the permit (Sunbury has no say in the matter). Sunbury mayor David Persing supports the new facility.

Change in Location for MarkWest Processing Plant in Ohio

March 28, 2012March 28, 2012

A new natural gas processing plant to be built by MarkWest Energy was supposed to be built in Monroe County, Ohio, but the geography has now shifted west and the plant will be built in neighboring Noble County, Ohio instead.

Industrywide Issues | Pipelines | Processing Plants

Private Investors Aim Their Money at Pipelines/Midstream

March 28, 2012March 28, 2012

Pipelines and the “midstream” are the next big investment opportunities for investors—so says an article by Bloomberg.

A quick primer on the oil and gas business. Drilling for oil and gas, often referred to as exploration and production (or E&P) is what is usually called “upstream.” The term “midstream” refers to the pipelines, compressor stations and processing plants that move and refine oil and gas. “Downstream” is the distribution and marketing of oil and gas to end customers. There’s some blurring of those lines; for example, big oil refineries are usually considered downstream. But you get the idea.

Alternative Energy | Industrywide Issues

Fracking’s Existential Threat to Green Energy

March 28, 2012March 28, 2012

Check out an excellent column today by Paul Driessen on the TownHall.com website. Paul is a senior policy adviser for the Committee For A Constructive Tomorrow (CFACT), and a senior policy adviser to the Congress of Racial Equality. He’s also author of Eco-Imperialism: Green Power – Black Death.

In today’s column, Paul makes the point that the Sierra Club and other so-called environmental groups oppose clean-burning natural gas and shale drilling because it’s a threat to their alternative-energy-nirvana ideology (something MDN has long pointed out). The column starts this way:

Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Mar 28, 2012

March 28, 2012March 28, 2012

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

Economic Impact | Industrywide Issues | Jobs | Pennsylvania | Statewide PA

Wells Fargo Study: 60% of New PA Jobs from Gas Drilling

March 27, 2012March 27, 2012

jobs Wells Fargo Securities economists recently issued a report on the effects of Marcellus Shale drilling on Pennsylvania jobs (a copy of the 12-page report is embedded below). The report offers both an optimistic and pessimistic forecast of job growth, along with what they believe to be a realistic forecast. And all of their numbers are backed up with plenty of commentary so the reader understands why they predict what they predict. The bottom line?

Shell’s ‘Silent’ Partner in Building Cracker Plant: The EPA

March 27, 2012March 27, 2012

Shell will decide whether or not to build an ethane cracker plant in Beaver County, PA over the next two years (see this MDN story). If they decide to build, which seems likely, it will take between four and 10 years and $3 billion to build it. It’s a massive project. And Shell will have the federal Environmental Protection Agency looking over their shoulder the whole time, according to an EPA rep from Texas:

New York | Statewide NY

NY Anti-Fracking Groups Join Forces

March 27, 2012March 27, 2012

Sensing that Gov. Andrew Cuomo may be close to moving forward with issuing permits for shale gas drilling, anti-drilling groups are joining forces in New York State to form a coalition called New Yorkers Against Fracking. Movie star Mark Ruffalo, who plays Bruce Banner (the Hulk) in the upcoming movie The Avengers, is on board with the effort. (Those who support drilling may want to consider bypassing The Avengers to send a message to Mr. Ruffalo and Hollywood.)