Marcellus Drilling News

Energy Companies | Range Resources Corp

Range Resources 1Q12 Production Results, PA Impact Fees
April 12, 2012April 12, 2012

Range Resources reports today their natural gas production for the first quarter of 2012 increased 20 percent over the same period last year. Range CEO Jeff Ventura says the company is well on the way to achieving their 2012 goal of a 30-35 percent increase in production. Range also said the new impact fee in Pennsylvania will cost them $13.6 million for the first three months of 2012, as well as an additional one-time expense of $24 million, a retroactive fee to cover previous drilling (required under the new Act 13 law).

From the Range press release:

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Broome County | Industrywide Issues | Jobs | Meetings | New York

NY’s First NatGas Career Expo Today in Binghamton
April 11, 2012April 11, 2012

If you live anywhere near the Binghamton, NY area, you might want to swing by Broome Community College this afternoon (April 11) between 3-7 pm. The Joint Landowners Coalition of New York together with Broome-Tioga Workforce NY is sponsoring the “Natural Gas Career and Education Expo” – reported to be the first such shale gas career expo in New York State. Over 40 vendors will have booths at the expo. (MDN was at first offered a booth, then the offer was retracted. We’re disappointed, but will still be attending to cover the event.)

There’s a full agenda of seminar sessions—see the agenda and list of vendors lucky enough to get a booth (embedded below). The event will be a great opportunity for those interested in jobs in the shale gas industry to gather and find out more. And yes, there are many New York residents in Broome County and surrounding areas who are landing jobs in the the drilling industry—because of the drilling that’s happening just across the border in Susquehanna County, PA and other northeastern PA counties. Thank you PA!

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

Olive, NY Town Board Votes to Ban Fracking
April 11, 2012April 11, 2012

Another town in New York has decided to ban hydraulic fracturing—this one in Ulster County:

Read More “Olive, NY Town Board Votes to Ban Fracking”
Chenango County | Lease & Royalty Payments | New York

TX Land Company Preys on Chenango County, NY Landowners
April 11, 2012April 11, 2012

Perhaps sensing an opportunity with an ongoing, now four-year-old drilling moratorium and the desperation of some landowners in New York State, a Texas-based land company is soliciting property owners in Chenango County, NY to purchase a 50 percent share of their mineral rights for $1,000 per acre. While it may technically be legal, county officials warn landowners that such a deal will damage the value of their property:

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Hydraulic Fracturing | Industrywide Issues | Public Opinion

Fox News Poll: Does Fracking Pollute Well Water?
April 11, 2012April 11, 2012

The Fox News website is currently running a poll which asks the question: Do you believe ‘fracking’ pollutes well water? Head on over and vote.

Here are the results so far, as of early Wednesday morning:

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Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA

New PA Bill Would Require Real-Time Monitoring of Gas Wells
April 11, 2012April 11, 2012

On Monday, Pennsylvania State Representative Duane Milne, a Republican from Chester, PA (near Philly) held a press conference in his district to announce new Marcellus Shale legislation he will soon introduce. The legislation would require all natural gas wells—wells yet to be drilled and wells already drilled—to install real-time safety monitoring using technology called a wireless mesh network (WMN). The bill will also include real-time monitoring of natural gas pipelines using WMN.

WMN is a series (or network) of wireless transmitters that doesn’t need the Internet in order to “talk” with each other. The transmitters would automatically alert the Department of Environmental Protection and county emergency management organizations if it detects a problem.

Read More “New PA Bill Would Require Real-Time Monitoring of Gas Wells”
Economic Impact | Education | Industrywide Issues | Pennsylvania | Statewide PA

The Economic Impact of Marcellus Drilling on PA Schools
April 11, 2012April 11, 2012

Penn State Cooperative Extension and Penn State University researchers continue their research into how the Marcellus Shale gas drilling boom affects the state. Recently they issued findings from a survey of 940 school districts across PA (see this MDN story). Earlier this week, they issued another report in their Marcellus Education Fact Sheet series, titled: “Marcellus Shale Gas Development and Pennsylvania School Districts: What Are the Implications for School Expenditures and Tax Revenues?” (full report embedded below).

Read More “The Economic Impact of Marcellus Drilling on PA Schools”
Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Apr 11, 2012
April 11, 2012April 11, 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, Apr 11, 2012”
Chesapeake Energy | Commodity Price | Energy Companies | Industrywide Issues

At What Commodity Price Does NatGas Drilling Stop?
April 10, 2012April 10, 2012

How low might the commodity price of natural gas go before drillers really will quit drilling and wait for the price to go up? We’ll give you “the magic number” in a moment. But first, the (rather sketchy) rationale for how we calculate that number.

It seems almost every day we hear in the mainstream news that the low commodity price of natural gas is forcing drillers to suspend or slow drilling operations—especially in the “dry gas” areas of the Marcellus Shale. Contrary to what “everyone” seems to be doing, Shell, Chevron and others have said they will continue drilling regardless of the low price of natural gas. And more than one analyst has said announcements of drilling cutbacks by Chesapeake and others is so much hot air and that they will believe it when they see it.

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Chesapeake Energy | Energy Companies

Chesapeake Asset Sale Raises Another $2.6B
April 10, 2012April 10, 2012

After the trading markets in the U.S. closed yesterday, Chesapeake Energy announced three deals that will convert some of their considerable assets into $2.6 billion of cash to help fund development and cut down on debt. In a climate of continuing low commodity natural gas prices, Chesapeake has adopted a strategy of selling “non-strategic” assets to keep the momentum going.

Yesterday’s announcement included:

Read More “Chesapeake Asset Sale Raises Another $2.6B”
Hydraulic Fracturing | Industrywide Issues | Regulation

The EPA and Pavillion: Sloppy or Criminal?
April 10, 2012April 10, 2012

An exceptionally well written article about the EPA and their backpedaling on their own tests in Pavillion, Wyoming appears on today’s American Thinker blog. You may recall that the EPA tried to say there is a direct link between chemical contamination of ground water supplies around Pavillion and hydraulic fracturing of gas wells in the area. MDN pointed out early on that even if such a link is eventually made, the geology where those wells were drilled is sandstone (not shale), and the wells are shallow (not deep, like the Marcellus). In other words, the EPA was trying to gin up hysteria by using an apples and oranges comparison (see this MDN story).

Read More “The EPA and Pavillion: Sloppy or Criminal?”
Commodity Price | Hydraulic Fracturing | Industrywide Issues | New York | Pennsylvania | Statewide NY | Statewide PA | Steuben County

NY Customers See 50% Price Decrease from PA Marcellus Gas
April 10, 2012April 10, 2012

Utility customers of Corning Natural Gas Corp. in New York State’s Finger Lakes region can thank their neighbors south of the border in Pennsylvania that they are now paying 50 percent less for their natural gas than they paid just one year ago. And they can also thank the energy companies who use hydraulic fracturing in the Marcellus Shale.

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Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

PA Act 13 Lawsuit and its “Supporters”
April 10, 2012April 10, 2012

The Pittsburgh newspapers want us to believe there is a huge surge of support behind a lawsuit recently filed against what is known as Act 13—a new law passed just a few months ago in Pennsylvania that updates Marcellus oil and gas drilling rules in the state. Although the law brought much-needed new regulations to the Commonwealth, it also contained two measures that have particularly irked those who oppose drilling: an impact fee instead of a severance tax, and preemption of local oil and gas zoning ordinances with a “one size fits all” set of ordinances from the state. MDN will not recount the arguments for and against, you can read them by doing a search for “Act 13 lawsuit” in our search box (upper right corner).

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Chief Gathering | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | PVR Partners | Statewide PA

PVR Buys Chief Gathering/Marcellus Pipelines for $1B
April 10, 2012April 10, 2012

Calling it a “transformational transaction” for the company, Penn Virginia Resource Partners (PVR) today announced they are buying Chief Gathering for $1 billion in cash and stock. Chief Gathering is a midstream pipeline company with assets (pipelines) located mostly in northeastern Pennsylvania in the Marcellus Shale. The deal includes existing pipeline agreements with drilling heavyweights like Chesapeake, Anadarko, Statoil, Exxon Mobil and others. PVR CEO William Shea says the new combined pipeline operation for PVR will represent 75 percent of its business by the end of next year (it’s currently 40-45 percent of their business).

From the PVR press release:

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Energy Services | GASFRAC

GASFRAC 1Q12 Revenues/Profits Down 25% from 4Q11
April 10, 2012April 10, 2012

GASFRAC Energy Services, the Canadian company who pioneered and holds a patent on waterless LPG (liquefied petroleum gas) fracking technology, reports that revenues and profits for the first quarter of 2012 were disappointing. GASFRAC, you may recall, will be the vendor of choice when/if the Tioga County Landowners Group, in New York State, starts drilling on their collective 135,000 acres (see this MDN story).

Read More “GASFRAC 1Q12 Revenues/Profits Down 25% from 4Q11”
Best of the Rest

Marcellus & Utica Shale Story Links: Tue, Apr 10, 2012
April 10, 2012April 10, 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, Apr 10, 2012”