Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell
30-Story Quench Tower Set in Place for Shell Ethane Cracker
On Sunday, what will be the tallest and heaviest piece of equipment that’s part of the mighty $6 billion Shell ethane cracker in Monaca (Beaver County), PA was hoisted into place. It’s called a “quench tower” and it looks like a humongous silo. It’s 300-feet high, which translates into about 30 stories. One of the world’s largest cranes had to be reserved a year ago in order to do the lifting. It took all day, but by 3:30 pm, the quench tower was standing upright–yet another monument to the power of the Marcellus Shale.
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Antero Resources, one of the biggest drillers in the Marcellus/Utica, is the latest in a string of companies to shed its master limited partnership (MLP) structure. Antero uses an MLP for two different pipeline subsidiaries. The company announced yesterday that one of the subsidiaries will buy out the other, and then convert the merged entity into a corporation. The move simplifies Antero’s midstream operations. Here’s the details.
Our country sacrifices a lot on the altar of so-called safety. Crises are often used as an excuse for “the government” to use a heavy hand in controlling people and actions they (“the government”) deem a threat. Usually it’s a threat to their power. But the justification offered by the government is to protect the well-being of the citizenry. And the citizenry, convinced they are in mortal peril, is only too happy to yield their hard-won rights as free citizens–in the name of “safety.” It’s happening again–this time in the People’s Republic of Massachusetts, where unelected regulators have ordered a private business, National Grid, to cease all work on its natural gas pipeline system following a minor incident of too much pressure.
The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: Cabot Oil & Gas Corporation provides operational update; Oakmont residents demand stricter gas and oil well regulations; WV PSC orders lower natural gas rates; Dallas Cowboys owner Jerry Jones seeks shale gas deals in Haynesville; Trial starts for climate protesters in Trump, pipeline country; Anti-pipeline activists play a cynical, costly game; China blinks first in LNG face-off with U.S.; QP CEO: LNG shortage to hit sooner than expected; Big Oil’s bet on natural gas is a slow burn.
More bad news for EQT Midstream’s Mountain Valley Pipeline (MVP). Last week the U.S. Court of Appeals for the Fourth Circuit overturned a permit issued by the U.S. Army Corps of Engineers for MVP in West Virginia (see 
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.
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 
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.