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Marcellus Drilling News
  • Anti-Drilling/Fossil Fuel | Energy Services | Equitrans/EQT Midstream | Industrywide Issues | Litigation | Pipelines

    Part of Jefferson Natl Forest Closed to Keep MVP Protesters Out

    March 13, 2018March 13, 2018

    Last week MDN told you about a couple of rabid antis who climbed trees in Jefferson National Forest and have perched themselves in homemade tree stands in an attempt to block tree cutting for the Mountain Valley Pipeline (see Radicals Go Up a Tree in Quest to Illegally Block MVP Construction). Time is ticking. Tree felling must happen by the end of March, or the builder (EQT Midstream) will need to wait until October to fell the trees due to a ban on cutting trees during “bat season” (don’t ask). The antis are still, literally, up a tree–still blocking tree cutting in the forest. Last week a judge issued a restraining order that instructs the tree sitters to come down. But they haven’t–not yet, anyway. Following the judge’s order, the U.S. Forest Service, in charge of Jefferson National Forest, issued an emergency closure order, closing the forest along the 3.5 miles of MVP’s path through the forest. The Forest Service is trying to prevent any more tree sitters from invading the forest and setting up what will no doubt be a police action to remove the demented tree sitters already up a tree…
    Read More “Part of Jefferson Natl Forest Closed to Keep MVP Protesters Out”

  • Pennsylvania | Statewide PA

    Witch Hunt Continues to Oust Wolf Aide Tied to Marcellus Industry

    March 13, 2018March 13, 2018

    We’re in a position we don’t typically find ourselves in–defending a member of liberal Democrat PA Gov. Wolf’s staff. We don’t have much respect for Wolf and his administration, but sometimes there’s an injustice that simply can’t be ignored. We find this injustice particularly loathsome. A Big Green supporter and far-left radical environmentalist who lives in Chester County, PA, Caroline Hughes, filed a complaint with the Pennsylvania State Ethics Commission against PA Gov. Tom Wolf’s deputy chief of staff, Yesenia Bane, late last year (see Antis Target PA Gov Wolf Aide as Payback, Husband Works for EQT). The complaint is a ginned up allegation that Bane “was regularly involved in meetings and travel related to her husband’s natural gas industry clients.” The so-called evidence comes from a copy of Bane’s travel schedule in 2016, obtained by Big Green mouthpiece StateImpact Pennsylvania. Bane attended various shale meetings and conferences, on behalf of Gov. Wolf, and because she did so, Ms. Hughes would like to see Ms. Bane lose her job. Nice people those antis. The latest development is that the Pennsylvania State Ethics Commission is officially investigating the matter, which tickles StateImpact PA pink…
    Read More “Witch Hunt Continues to Oust Wolf Aide Tied to Marcellus Industry”

  • Industrywide Issues | Research

    Study: Volcanic Ash Linked to Shale Oil & Gas

    March 13, 2018March 13, 2018

    Did you know that once upon a time, around 100 million years ago when dinosaurs roamed the earth, that mom earth had no permanent polar ice caps, and that the amount of greenhouse gas (carbon dioxide, CO2) in the atmosphere was 10 times (i.e. 1000%) higher than it is today? And yet, somehow, life survived. Who knew? Contrary to the scaremongering balderdash being pedaled today, the amount of CO2 we humans pump in the atmosphere today by burning fossil fuels is puny compared to what volcanoes used to pump into the atmosphere eons ago. Humans today are pikers–bush league–compared to the volcanoes of old when it comes to warming up mother earth. That’s what we learned in reading a newly published study on the link between the formation of today’s shale oil and gas deposits and ash from long-ago volcanoes. “Nutrient-rich ash from an enormous flare-up of volcanic eruptions toward the end of the dinosaurs’ reign kicked off a chain of events that led to the formation of shale gas and oil fields from Texas to Montana.” So says “Volcanic ash as a driver of enhanced organic carbon burial in the Cretaceous”–a new study just published in the journal Nature…
    Read More “Study: Volcanic Ash Linked to Shale Oil & Gas”

  • Best of the Rest

    Other Energy Stories of Interest: Tue, Mar 13, 2018

    March 13, 2018March 13, 2018

    The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: Anti-pipe agenda in New England leads to higher costs, less reliability, Russian LNG; Tellurian to acquire 15 Tcf of gas for Driftwood LNG; Cheniere building 3rd berth for Sabine Pass LNG; the permanence of the Permian; Georgia fracking regs waiting for gov’s signature; former Exxon CEO Rex Tillerson out as Secretary of State; is LNG the next world energy sector the U.S. will disrupt?; Mickey Mouse getting LNG powered cruise ships; natgas is the fossil fuel of choice; Canada to slap border tax on gas?; and more!
    Read More “Other Energy Stories of Interest: Tue, Mar 13, 2018”

  • Industrywide Issues | Lease & Royalty Payments | Regulation | Statewide WV | West Virginia

    WV Gov Justice Signs Bill to Guarantee 12.5% Minimum Royalty

    March 12, 2018March 12, 2018

    While everyone was focused on the passage of a co-tenancy bill in West Virginia (see WV Gov. Justice Does 180 – Says He’ll Sign Co-Tenancy Bill), another bill, with arguably more impact on both rights owners and drillers, quietly made its way through the legislative process and was signed into law by Gov. Jim Justice on Friday. We’re talking about a bill that guarantees that rights owners (i.e. landowners) will get an actual, guaranteed minimum royalty of 12.5%–regardless of post production deductions. WV Senate Bill (SB) 360 is now the law! The bill was proposed to counter what landowners say was a miscarriage of justice at the hands of the WV Supreme Court in the Leggett v. EQT Production, a case in which the Supremes (in a very unusual move) reversed their own decision from a few months before and allowed EQT to deduct post-production expenses (see WV Supreme Court Reverses Itself, Post-Production Deductions OK). While this is fantastic news for landowners/rights owners in WV, you can’t escape the larger implications, which is that there is now no reason (no excuses left) why the PA version of this bill, introduced for the past three consecutive two-year sessions (six years total), can’t also get passed…

    Important Note: SB 360 does NOT apply across the board, to all WV leases. It only applies to limited cases, like Leggett v. EQT, which are “flat rate royalty leases.” See a further explanation below.
    Read More “WV Gov Justice Signs Bill to Guarantee 12.5% Minimum Royalty”

  • Allegheny County | Electrical Generation | Industrywide Issues | Pennsylvania

    Pittsburgh Airport Plans NatGas Microgrid to Attract New Business

    March 12, 2018March 12, 2018

    Seems like we increasingly see the word “microgrid” popping up. What, exactly, is a microgrid? Microgrids are small electric generating plants, most often powered by natural gas. They usually produce a few megawatts of electricity and are often used for “peaking”–which means they are used during times of high electricity demand. During times of high demand these small microgrids kick on and produce electricity to help meet the demand (see One of Nation’s Largest NatGas Microgrids Coming to Philly Navy Yard). Sometimes microgrids outright replace reliance on the local electric utility. Such is what is being proposed for the Pittsburgh International Airport. You may recall that CONSOL Energy (now CNX Resources) drilled a bunch of wells on Airport property and produces a boatload of natgas every day. The plan is to use some of that gas to power a microgrid to lower the cost of electricity at the airport complex–a complex where officials are attempting to attract businesses to locate. Having super cheap electricity generated by your own natgas helps…
    Read More “Pittsburgh Airport Plans NatGas Microgrid to Attract New Business”

  • Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Lancaster County | Pennsylvania | Pipelines | Williams

    5 Old Hippies Arrested for Blocking Pipeline in Lancaster County

    March 12, 2018March 12, 2018

    It’s been a while since we’ve heard anything from the so-called “more than 1,000” protesters willing to get themselves arrested in Lancaster County in their holy mission to stop the Williams Atlantic Sunrise Pipeline. As of last November, the unofficial tally we could determine is that 45 people who belong to Lancaster Against Pipelines (LAP) have gotten themselves arrested for illegal actions in attempting to stop the pipeline (see 5 More Protesters Arrested in Lancaster Co. Blocking Pipeline Work). LAP is a small but committed group. It’s hard to stick to your so-called principles when there’s a foot of snow on the ground–so all winter long there hasn’t been much in the way of protests. But spring is beginning to break in Amish country. On Saturday, a busload of around 50 protesters visited Williams’ Lancaster County headquarters in an attempt to terrorize the workers by entering the building, walking the halls singing and plastering “Do Not Cross” police tape on the doors (and leaving behind a fake pipeline). The protesters then visited a construction site where five of the nuttier nutjobs, ranging in age from 55-72 (most of them from Philly), climbed onto a piece of equipment and refused to come down, delaying construction by three hours, forcing state troopers to arrest them…
    Read More “5 Old Hippies Arrested for Blocking Pipeline in Lancaster County”

  • Anti-Drilling/Fossil Fuel | Chester County | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Sunoco Logistics

    Grumpy Antis Protest at ME2 Sinkhole Site – Jeer Sunoco Workers

    March 12, 2018March 12, 2018

    A third sinkhole related to Mariner East 2 pipeline work and the uncovering (and subsequent shutdown) of the Mariner East 1 pipeline has some folks in Chester County, PA stirred up and rather grumpy (see PA PUC Shuts Down Mariner 1 Pipeline Due to Mariner 2 Sinkhole). A group of some 150 anti-pipeline protesters (perhaps a better word is “mob”) gathered Saturday in Chester County near the sinkhole sites, carry signs and chanting. Did they demand that the DEP and Gov. Wolf force Sunoco Logistics Partners, the builder of ME2, to find a different route around a geography known for sinkholes for decades? Or force Sunoco to slow down in an attempt to prevent any more sinkholes? Or demand Sunoco come to the table to talk about how they will prevent any more issues in the area–and compensate properties near the sinkhole? No. Their demand of Wolf: Shut it down, now. And keep it shut down. Cancel the entire multi-billion dollar ME2 project that is 93% complete. In other words, their demand is unreasonable, not realistic, not the way adults behave when they have disagreements and concerns…
    Read More “Grumpy Antis Protest at ME2 Sinkhole Site – Jeer Sunoco Workers”

  • Allegheny County | Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Shell | Washington County

    PA DEP Schedules 3 Hearings for Shell Ethane Pipeline

    March 12, 2018March 12, 2018
    Click for larger image

    In February, MDN told you the Pennsylvania State Dept. of Environmental Protection (DEP) had caved to pressure from anti-fossil fuelers with regard to Shell’s proposed Falcon Ethane Pipeline project (see PA DEP Caves to Pressure, Extends Comment Period for Shell Pipeline). Shell is working on an ethane “pipeline system” with two “legs” to feed the mighty cracker plant being built in Monaca, Beaver County (see Shell Working on 94-Mile Ethane Pipeline to Feed PA Cracker). The DEP advertised an official comment period for the project on Jan. 20, giving interested parties until Feb. 20 to file their comments–an entire month. However, one month isn’t enough time for anti-drillers to marshal the faithful to try and sink the project. FracTracker Alliance, an anti-fossil fuel organization, colluded with other groups to put the word out to flood the DEP with demands to keep the comment period open. The DEP caved and extended the comment period to April 17th along with three public hearings (circus freak shows), to give the FracTracker faithful time to mount publicity and legal offensives to try and stop the project. The DEP has just announced the dates and locations for the three public hearings…
    Read More “PA DEP Schedules 3 Hearings for Shell Ethane Pipeline”

  • Economic Impact | Industrywide Issues

    “Free” NatGas in Texas Permian Changes Shale Gas Economics in M-U

    March 12, 2018March 12, 2018

    We spotted an article appearing on the Forbes magazine website that has a chart that stopped us cold in our tracks. The article was written by Jude Clemente, one of our favorite contributors to the Forbes website. He includes three charts in the article to update folks who have an interest in the natural gas space (the article is titled 3 Natural Gas Charts To End Winter 2018). The first chart in the list is “U.S. Natural Gas Wellhead Breakevens by Basin” and shows how much money a driller must make in order to break even–still make a profit. How much money, on average, does a driller have to make per thousand cubic feet (Mcf) in, for example, the Marcellus Shale basin in order to stay profitable? That number would be $2.15/Mcf. Anything above $2.15 and the driller makes money. (Bear in mind these are averages. Some drillers, like Cabot Oil & Gas, have lower expenses and can make money at much lower prices per Mcf than others.) What about the Utica? Drillers need to make an average of $2.41/Mcf in the Utica to break even. But at the top of the chart is a rather wild number. Drillers in the Permian Basin (in Texas) can LOSE or spend up to $2.36/Mcf and still “break even.” What? How can that be?…
    Read More ““Free” NatGas in Texas Permian Changes Shale Gas Economics in M-U”

  • Calendar

    Calendar of Marcellus/Utica Events for Mar 12 – Jun 11

    March 12, 2018March 12, 2018

    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. Thank you!
    Read More “Calendar of Marcellus/Utica Events for Mar 12 – Jun 11”

  • Best of the Rest

    Other Energy Stories of Interest: Mon, Mar 12, 2018

    March 12, 2018March 12, 2018

    The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: $597K maintenance agreement between Allegheny Twp and Huntley & Huntley; PA’s CNG project lauded by engineers; PA DEP wants input on drilling under I-79 for pipes; PA DEP Secretary tells PA Senator fracking in SRBC has been fine; Chesapeake may sell Haynesville assets to Tellurian; fraudulent climate litigation shakedowns; huge Chinese demand fuels next U.S. shale boom; and more!
    Read More “Other Energy Stories of Interest: Mon, Mar 12, 2018”

  • Industrywide Issues | Ohio | Research | Statewide OH

    OH Utica Production 4Q17: Ascent Tops in Gas, Eclipse Tops in Oil

    March 9, 2018March 9, 2018

    The Ohio Dept. of Natural Resources (ODNR) has just issued production numbers for the fourth quarter of 2017. Production was up for both natural gas AND oil, as it was in the third quarter (see OH Utica Production 3Q17: Ascent Res. Dominates Top Producers). Utica natgas production saw a gigantic percentage increase–up 38% over the same period last year. Oil production was up a healthy 16% over the previous year’s 4Q. However, when looking at the full year, Ohio’s Utica oil production was lackluster in 2017–down 9% from 2016. Natgas production for all of 2017 was up 24% in 2017 compared to 2016. Which drillers dominated natural gas production, and which dominated oil production, in 4Q17? We have the answers…
    Read More “OH Utica Production 4Q17: Ascent Tops in Gas, Eclipse Tops in Oil”

  • Belmont County | Jefferson County (OH) | Monroe County | Ohio

    Top 3 Most-Drilled Counties in Ohio Utica for 2017

    March 9, 2018March 9, 2018

    If you look at the number of Utica wells drilled in 2017, Belmont, Monroe and Jefferson counties were the top 3 counties in the state for new Utica wells drilled. However, if you dig a little further, you’ll find that two of those three counties saw more wells drilled in 2017 than in 2016, while one of them saw a 45% drop in new wells drilled in 2017–indicating that county has “fallen out of favor,” at least to some extent. Which is which? For that, you have click to continue reading…
    Read More “Top 3 Most-Drilled Counties in Ohio Utica for 2017”

  • Pennsylvania | Statewide PA

    PA Marcellus Production Shifting from NE to SW PA

    March 9, 2018March 9, 2018
    Click image for larger version

    Every now and again it’s good to step back and look at the macro shale trends in a given state. Pennsylvania is the largest shale gas producing state in the country (yes, even bigger than Texas), so it’s good to take stock of what’s happening in PA. The Pittsburgh Business Times has done some excellent analysis of gas production in PA. Their analysis shows that regionally, production of shale gas in PA over the past four years (2014-2017) has gone up in both regions. However, it’s gone up more/faster in southwestern PA than in northeastern PA. Why? More pipeline infrastructure is available or has come online in southwestern PA over that period, while northeastern PA remains pipeline starved…
    Read More “PA Marcellus Production Shifting from NE to SW PA”

  • CNX Resources | Energy Companies | Industrywide Issues | NGLs | Pennsylvania | Pipelines | Range Resources Corp | Regulation | Statewide PA

    Range, CNX Look for Alternatives to ME1 Pipe Following Shutdown

    March 9, 2018March 9, 2018

    MDN reported yesterday that due to underground horizontal direction drilling (HDD) in Chester County, PA (near Philadelphia) for the Mariner East 2 (ME2) Pipeline project, a third sinkhole had developed (see PA PUC Shuts Down Mariner 1 Pipeline Due to Mariner 2 Sinkhole). ME2 is being built close to the existing Mariner East 1 (ME1) pipeline. The sinkhole exposed a portion of the ME1 pipeline to the open air. Not a good situation, which is why the state Public Utility Commission has temporarily shut down the propane and ethane flowing through ME1. The shutdown is for 10-14 days. Problem is, both Range Resources and CNX Gas pump propane and ethane through ME1. With the shutdown, both companies are “scrambling” to find alternative means to get their NGLs to market…
    Read More “Range, CNX Look for Alternatives to ME1 Pipe Following Shutdown”

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