Marcellus Drilling News

Chesapeake Energy Gets $3 Billion Loan from Goldman Sachs

May 14, 2012May 14, 2012

In an attempt to boost investor confidence and boost the stock price, Chesapeake Energy received a $3 billion unsecured loan last Friday from Goldman Sachs. They also provided a quick update on efforts to sell off their assets in the Permian Basin and their Mississippi Lime joint venture, hoping to raise upward of $10 billion, part of which will be used to pay back the short-term Goldman loan.

From the Chesapeake press release:

Boone Pickens Sells Chesapeake Stock, Strange Comment on NatGas

May 14, 2012May 14, 2012

Has T. Boone Pickens, Texas oil billionaire and author of “The Pickens Plan” that calls for America to use natural gas to reduce our dependency on OPEC oil and as a bridge to a renewable energy future, now turned his back on natural gas? His investment company, BP Capital Management, has sold off all of its Chesapeake Energy stock. Pickens’ comment on the reason for selling off Chesapeake was a tad strange:

CONSOL Energy | Energy Companies | Lease & Royalty Payments | Mahoning County | Ohio

CONSOL Starts Work on Their First Well in Mahoning County, OH

May 14, 2012May 14, 2012

CONSOL Energy has started work on its first drill pad in Mahoning County, OH. And although the landowner where they’re drilling sold his mineral rights years ago and will receive next to nothing in the way of royalties or lease payments, he’s still happy about it.

Location for OH NGL Processing Plant Identified

May 14, 2012May 14, 2012

We now know the specific location of a previously announced $400 million shale gas collection and processing plant being built in Columbiana County, Ohio by a joint venture between Chesapeake Energy, M3 Midstream and EV Energy Partners.

O&G Countersues Landowners Claiming Lease Slander

May 14, 2012May 14, 2012

In late March, seven Beaver County, PA families (18 people) filed a lawsuit 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 leases were sold to Chesapeake Energy and at the eleventh hour, just before the leases were set to expire, Chesapeake attempted to initiate drilling to retain the leases, which prompted the lawsuit (see this MDN story for background). Late last week O&G countersued the families:

OH Judge Rules in Case on Ethane Pipeline Survey

May 14, 2012May 14, 2012

MDN highlighted a story last week in which Enterprise Products Partners, the company building a new ethane pipeline across Ohio, sued a farmer to gain access to his land in order to survey it to chart a route for the pipeline (see this MDN story). The farmer offered alternative routes to avoid prime hay fields but Enterprise turned him down. A common pleas court judge, on Friday, sided with…

Frack Wastewater Treatment Plant in Blossburg, PA Expands

May 14, 2012May 14, 2012

Hydro-Recovery operates a shale gas fracking wastewater treatment facility in Blossburg (Tioga County), PA. It’s just announced a $15 million expansion of the plant with plans to add an additional 20-25 employees and ramp up to 24/7 operations. Construction is set to start as soon as permits are received on a “crystalizer and six 500,000 gallon storage tanks.”

Best of the Rest

Marcellus & Utica Shale Story Links: Mon, May 14, 2012

May 14, 2012May 14, 2012

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

Energy Companies | Marathon Oil | Ohio | Statewide OH | Utica Shale

Marathon Petroleum’s Plans for Utica Shale Oil

May 11, 2012May 11, 2012

oil drops Marathon Petroleum President Gary Heminger, speaking at the Hancock County Republican Party Century Club Dinner in Ohio on Thursday, predicted a great future for Utica Shale oil. He also offered some interesting insights into how much, and where, Utica Shale oil Marathon will be refining this year and next.

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

Another New York Town Considers Fracking Ban

May 11, 2012May 11, 2012

Yet another New York town, this one squarely in the Marcellus Shale “hot zone” of the Southern Tier area (Chemung County), is considering a ban on fracking if the state moves forward with allowing it.

Hydraulic Fracturing | Industrywide Issues

Study of Fracking Released by Irish EPA

May 11, 2012May 11, 2012

The Irish Environmental Protection Agency (EPA) today released a report, a “preliminary study” that seeks to gather up what is known, and not known, about hydraulic fracturing. The 26-page study (full copy embedded below) was authored by Dr. David Healy from the University of Aberdeen’s School of Geosciences. Titled “Hydraulic Fracturing or ‘Fracking’: A Short Summary of Current Knowledge and Potential Environmental Impacts,” the study provides a good general backgrounder on what hydraulic fracturing is, how it works, and the main issues and objections to its use.

The main findings of the study are set out under three headings: (1) potential environmental impacts, (2) regulatory approaches used in other countries and (3) establishing best practice. Ireland has not seen fracking of any kind, but expects it may happen in Ireland within the next few years, hence this report and another that is planned.

A summary of the report’s findings:

Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Taxation

PA PUC Adopts Guidelines for Impact Fee Collection/Disbursement

May 11, 2012May 11, 2012

The Pennsylvania Public Utility Commission (PUC) yesterday finalized provisions of Act 13 of 2012 related to the collection and disbursement of the impact fee for unconventional natural gas well drilling. Known as Chapter 23 of Act 13, the PUC voted 5-0 to finalize the procedures they would use to implement, collect and distribute the impact fee. A copy of the “Chapter 23 Final Implementation Order” as adopted is embedded below.

Because of an active lawsuit by seven townships and others against zoning provisions in Act 13 (known as Chapter 33 of Act 13), the PUC delayed action on that section of the new law.

Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Statewide PA | Wastewater

NRDC Releases Report Critical of PA Fracking Wastewater

May 11, 2012May 11, 2012

Advocating for stricter government controls, the National Resources Defense Council (NRDC) earlier this week released a “comprehensive review” of how fracking wastewater is handled in Pennsylvania’s Marcellus Shale with recommendations for how it can be handled better. The NRDC says that the current methods of wastewater disposal are not adequate to protect drinking water supplies, and present a risk to the health of both humans and animals. A copy of the report is embedded below.

From the NRDC press release:

Blair County | Chevron | Energy Companies | Pennsylvania

Chevron Tells PA Town No Plans to Drill – For Now

May 11, 2012May 11, 2012

A representative from Chevron told Logan Township supervisors and residents at a meeting on Thursday that Chevron has no plans to drill on a Logan site for which they previously received a permit. Logan is located in Blair County, near Altoona, PA. The permit expires today and Chevron said there are no plans, at present, to apply for a new one.

Altoona Scores a New Pump Plant for the Marcellus

May 11, 2012May 11, 2012

Gardner Denver, a 150 year-old global manufacturer of industrial compressors, blowers, pumps, loading arms and fuel systems has a new manufacturing facility to add to the 40 it already owns around the world. The new 70,000 foot facility is located at Tipton, near Altoona, PA. The new plant will manufacture and repair pumps used in hydraulic fracturing in the Marcellus Shale. Gardner Denver expects to employ 100 people at the new plant within a year.

But why locate the plant in Altoona, where there’s very little nearby drilling?

Best of the Rest

Marcellus & Utica Shale Story Links: Fri, May 11, 2012

May 11, 2012May 11, 2012

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