Marcellus Drilling News

Energy Companies | Industrywide Issues | Ohio | Pennsylvania | Processing Plants | Shell | Statewide OH | Statewide PA | Statewide WV | West Virginia

Waiting Game: Cracker Plants Talk to Property Owners
February 3, 2012February 3, 2012

West Virginia, Pennsylvania and Ohio are all in the hunt to land an ethane cracker plant in their respective states (see the long list of MDN stories on a potential cracker plant in the Marcellus/Utica Shale region). According to WV Commerce Secretary Keith Burdette, Shell and another unnamed company are now in talks with private property owners. That is, the deals are now being negotiated, and it’s a waiting game to see the outcome.

All three states have offered huge tax incentives to land the plant. Shell originally set January for an announcement, but changed it a few weeks ago to be February.

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Economic Impact | Energy Services | Harrison County | Industrywide Issues | MarkWest Energy | Monroe County | Ohio | Processing Plants

More on MarkWest’s New Investment in Ohio’s Utica Shale
February 3, 2012February 3, 2012

Yesterday, Ohio Gov. John Kasich and others provided more details about MarkWest’s Tuesday announcement that they will build two new natural gas liquids (NGL) processing plants and a new fractionation plant in Ohio’s Utica Shale (see MDN’s story on the original announcement here).

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Energy Companies | Seneca Resources

Seneca Resources Marcellus Well Output up 91.5% in Q1 2012
February 3, 2012February 3, 2012

Seneca Resources, the exploration and production division of National Fuel Gas Company, just reported their first quarter earnings for 2012. As part of the report, we get the following operational update which shows a 91.5 percent increase in production in Seneca’s Marcellus Shale wells.

Read More “Seneca Resources Marcellus Well Output up 91.5% in Q1 2012”
Economic Impact | Industrywide Issues | New York | Pennsylvania | Steuben County | Tioga County (PA)

RailAmerica Buys Wellsboro & Corning Short Line Railroad
February 3, 2012February 3, 2012

One of the interesting but often-overlooked stories of the rapid growth of Marcellus and Utica Shale drilling is the revival of short line railroads. As drillers enter an area, equipment and materials need to be shipped to that area. Sand, especially, is used in large quantities, and short lines are the most economical way of getting sand to an active drilling area.

One of the short line railroads to came roaring back to life not so long ago is the Wellsboro and Corning Railroad (WCOR), running from Wellsboro in northeastern PA to just across the border connecting to Corning, NY.

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Best of the Rest

Marcellus & Utica Shale Story Links: Fri, Feb 3, 2012
February 3, 2012February 3, 2012

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

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Hydraulic Fracturing | Industrywide Issues

Gasland Creator Josh Fox Arrested at House Hearing
February 2, 2012February 2, 2012

Funny how those who oppose drilling want there to be plenty of rules (i.e. regulations) that would govern every aspect of drilling, but when it comes to following rules themselves, they don’t want to. Witness the arrest yesterday of Josh Fox, so-called documentary film maker and creator of the anti-fracking propaganda film Gasland when he tried to film a House Science, Space and Technology subcommittee hearing without proper credentials:

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Accidents | Hydraulic Fracturing | Industrywide Issues

EPA Backpedals on Pavillion Fracking Contamination
February 2, 2012February 2, 2012

In a U.S. House subcommittee hearing yesterday, EPA Regional Administrator James Martin backed off EPA’s previous stance that fracking causes groundwater contamination—at least not anywhere outside of Pavillion, Wyoming. You may recall the hubbub when the EPA released a preliminary report in December that “theorized” hydraulic fracturing in the Pavillion, WY area “may have” caused chemical contamination of “some” water wells in the Pavillion area (see this MDN story).

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Commodity Price | Industrywide Issues

Predicting the Price (and Production) of Natural Gas
February 2, 2012February 2, 2012

According to David Sterman, a 20-year investment analyst writing on the Seeking Alpha website, the commodity price for natural gas has likely bottomed out in the U.S. and will now slowly rebound. Natural gas is currently trading around $2.45 per thousand cubic feet (mcf). Goldman Sachs believes by the end of this year prices should be around $3.75 mcf, moving to $4.25 in 2013, and $5.50 in 2014.

How does the commodity price of natural gas affect landowners? It costs drillers roughly $2.30 mcf to drill, pipeline and sell natural gas, so if prices hit that level, production stops. As the price falls into the sub $3.00 range, drillers slow production, stop production, or shift production from dry gas (methane-only) areas to more lucrative wet gas (natural gas liquids) areas.

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Energy Companies | Hydraulic Fracturing | Industrywide Issues | Range Resources Corp

Flaring of Gas Wells – Still Used, But Not as Much Anymore
February 2, 2012February 2, 2012

In areas where there is active drilling, like northeast and southwest Pennsylvania, near the end of completing a gas well is a process called flaring—when some of the gas and other impurities are burned off. Sometimes flaring a well, which results in a large flame coming out of the well, can be seen up to 10 miles away, which catches neighbors by surprise. Tony Gaudlip from Range Resources explains the flaring process, and why it’s not used as much as it once was.

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Energy Companies | Lease & Royalty Payments | Pennsylvania | Range Resources Corp | Washington County

Washington County Commissioners to Vote on Modifying Gas Lease
February 2, 2012February 2, 2012

Commissioners for Washington County, PA will vote today on modifying an agreement they have with Range Resources to allow drilling for gas at a county-owned park. The revisions will limit how much time Range has to complete drilling and extracting natural gas, and it also ups the royalty percentage.

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Energy Services | Industrywide Issues | NiSource | Pennsylvania | Pipelines | Statewide PA

NiSource to Build New $145M Marcellus Pipeline in PA
February 2, 2012February 2, 2012

NiSource, which owns and operates over 15,000 miles of interstate natural gas pipelines, will build a new Marcellus Shale pipeline “through western Pennsylvania” they announced yesterday. Details, including the one driller signed on so far, are thin. Here is what we know:

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Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Feb 2, 2012
February 2, 2012February 2, 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: Thu, Feb 2, 2012”
Accidents | Coterra Energy (Cabot O&G) | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Susquehanna County

Cabot Accuses EPA of Cherry Picking Old Water Test Data
February 1, 2012February 1, 2012

Cabot Oil & Gas has accused the federal Environmental Protection Agency (EPA) of “cherry picking” old water test data to justify its intrusion into Dimock, PA. For a quick backgrounder on the situation in Dimock and why Cabot is being blamed by some for pollution of a handful of local water wells in the area, see this MDN story.

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

Dimock Residents Petition EPA to Stop Their Investigation
February 1, 2012February 1, 2012

A group of residents from the Dimock, Pennsylvania area have formed a group called “Enough is Enough” to combat the negative image being painted of their quaint, rural town in the Endless Mountains region of northeast PA. A steady drumbeat of negative press over the past three years, instigated by anti-drilling organizations, has created an image of Dimock as a chemical wasteland a la “Love Canal” (the Niagara Falls neighborhood that became famous in the 1970s because of widespread underground chemical contamination) in the minds of those who have never visited the area.

Dimock residents want to dispel that image.

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Industrywide Issues | Maryland | Regulation | Statewide MD | Wastewater

New Maryland Bill Would Ban Imports of Fracking Wastewater
February 1, 2012February 1, 2012

With the support of anti-drilling group Food & Water Watch, Maryland House of Delegates member Shane Robinson (representing the DC suburb of Montgomery County) has introduced a bill into the Maryland legislature that would ban importing fracking wastewater for treatment in the state.

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CONSOL Energy | Energy Companies | Energy Services | Harrison County | Industrywide Issues | MarkWest Energy | Marshall County | Monroe County | Noble Energy | Ohio | Pennsylvania | Processing Plants | Range Resources Corp | Utica Shale | Washington County | West Virginia

MarkWest to Expand/Build NGL Plants on New Agreements
February 1, 2012February 1, 2012

MarkWest Energy Partners, a major midstream player in the Marcellus and Utica Shales, just announced major expansion plans that will add an additional 600 million cubic feet per day (mmcf/d) of natural gas processing capacity which includes natural gas liquids (NGLs). Most of the new capacity will come from expansion of its Majorsville, WV plant. The expansion is made possible by new long-term agreements MarkWest signed with CONSOL Energy, Noble Energy and Range Resources to process NGLs.

MarkWest also announced they will build two new processing plants in Ohio’s Utica Shale—in Harrison and Monroe counties.

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