Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania | Range Resources Corp | Washington County
Range Resources Sued by PA Landowner re Post-Production Deductions
In the absence of a guaranteed minimum royalty in Pennsylvania–an issue which continues to divide landowners and drillers–individual landowners are left to litigate in order to get what they are fairly due. Such litigation is time consuming and expensive, and without a certain outcome, which is why most landowners don’t do it. In Washington County, PA a couple who signed a lease with Range Resources have just filed a lawsuit against Range in county court alleging Range violated the terms of the lease by deducting post-production expenses.
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Reliable One Resources, a wastewater treatment company headquartered in Texas, has just purchased an existing/functioning wastewater injection well in Athens, OH. Reliable does not say in their announcement who sold them the well. They do say they intend to drill a second well next to the first one (which is the big news for us), and that they (Reliable) is in the process of buying “multiple trucking companies” that will hauling wastewater from Marcellus/Utica drillers to their facility.
Williams is expanding its mighty, 10,500-mile Transcontinental Gas Pipe Line Co (Transco), again. Sometime this month Williams will prefile a request with the Federal Energy Regulatory Commission for the Leidy South expansion project. The new project will bump up “compression” (either build new compressors or refit existing compressors) and build new “looping” pipeline in Pennsylvania, in order to increase capacity of Transco in the northeast Marcellus region by another 580 million cubic feet per day (MMcf/d).
Some of the most important, and slowest, permits issued to drill a new shale well in Pennsylvania are “Erosion and Sediment Control” permits. Well pads and the roads built to access them involve such permits. When sediment/erosion permits are delayed, the whole project is delayed. The PA Dept. of Environmental Protection published an updated general permit covering Oil and Gas Development Erosion and Sedimentation Control (ESCGP-3) in the Pennsylvania Bulletin on Saturday, Oct. 6. The new permit is supposed to streamline and make the approval process faster. We’ll see about that.
The actions of political leaders have consequences. Sometimes dire consequences. People like New York Gov. Andrew Cuomo believe they can wave a magic wand and proclaim, “No more fossil fuels, we’ll just use solar and wind instead.” But proclaiming it doesn’t make it so. Proclaiming it doesn’t exempt you from the consequences of your actions. In recent years Cuomo has blocked new natural gas pipeline projects that would deliver Marcellus gas from Pennsylvania, claiming we need to move to so-called renewable energy. Now the chickens have come home to roost.
We’re feeling better and better that President Trump is ready to take action to overrule states like New York that abuse the federal Clean Water Act in order to block interstate pipeline projects. We first picked up on comments by Energy Secretary Rick Perry back in May (see 
The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: Permitting drops in Pennsylvania amid strong production, tighter purse strings; Rising up: After a year, Shell cracker project is taking shape; House Environment Committee Oct 9 meeting on royalty bill postponed; To meet demand for shale well cement, idled WV site restored; Pennsylvania offers a key midterm test for Trumpism; Dominion gets NC approval for merger with SC’s SCANA; Despite record demand, Wisconsin frac sand mines shutting down, laying off workers; National Grid facing new state scrutiny over gas safety following Woburn incident; Weather is the only thing holding back an upward explosion in natural gas prices; Shale oil is not a Ponzi scheme: evidence from decline curves; UK’s Cuadrilla to begin shale gas fracking in NW England ‘in next week’; Putin says Trump should blame himself for high oil prices; Why China may soon regret its tariffs on US natural gas.
It’s Columbus Day! MDN will not publish our regular list of stories today–but have no fear, we will be back tomorrow (Tuesday) with a full lineup. Today we bring you (a) information about the annual Northeast Oil & Gas Awards, being held in March 2019 (with a special offer for those interested in entering the awards); and (b) our list of events you may be interested in attending.
Each year MDN partners with the Oil & Gas Awards to promote their Northeast Awards–a way for companies in the oil and gas industry that operate with distinction to get recognized by their peers. In March 2019 the Northeast Oil & Gas Awards will celebrate their 7th year! We hope that you and your colleagues will be able to share *your* successes and participate in the greatest celebration of our industry at the Oil & Gas Awards in Pittsburgh in March 2019. The deadline to enter is Dec. 12. MDN has what we consider a way you and your company can gain an “unfair” advantage–stacking the deck in favor of your company winning.
Events related (or of interest) to the Marcellus and Utica Shale, primarily pro-drilling events. To have your event included (or if you are aware of a worthy event you believe should be on this page), please send the details and/or a link to have it included to the calendar@marcellusdrilling.com email address.
Yesterday the Federal Energy Regulatory Commission (FERC) finally (finally!) granted Williams permission to open the taps up and let natural gas flow along the Atlantic Sunrise Pipeline, a 200-mile greenfield pipeline from northeastern to southeastern PA. Startup was delayed two months from Williams’ original estimate (due to Williams, not FERC). But that’s all behind us now. Beginning tomorrow, Marcellus molecules from Cabot Oil & Gas, Chief Oil & Gas, and Seneca Resources will begin flowing along the pipeline, heading out of our region where those molecules will fetch higher prices.
PTT Global Chemical announced in April 2015 they want to build a $6 billion ethane cracker plant complex in Belmont County, OH (see 
There’s only so much you can cram into a 65 character headline. We wanted to say more. Catalyst Energy was, until 2017 (when it quit drilling new wells) a conventional-only oil driller focused mainly on western Pennsylvania. It quit drilling due to low oil prices. Catalyst has just announced that, pending the outcome of a new round of investments it’s seeking, the company will restart its drilling program–but this time with a twist. Catalyst is transforming itself from a conventional to an unconventional driller.
