Marcellus Drilling News

Best of the Rest

Other Energy Stories of Interest: Wed, Mar 21, 2018
March 21, 2018March 21, 2018

The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: Indiana company buys Pittsburgh pipe company; OH Democrat lawmaker proposes frack ban in state parks; Appalachian Storage Hub is WV’s foundation for future investment; feds lighten up on bird & bat rules, extend tree-cutting windows; oil drillers look to Oklahoma for cheaper prices; Wisconsin frac sand industry roars back; FERC’s Powleson lectures New England to learn from PA; big data in big oil is big business; and more!
Read More “Other Energy Stories of Interest: Wed, Mar 21, 2018”
Accidents | Blair County | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Sunoco Logistics

ME2 Drilling at 2 Locations Near Altoona Shut Down for Leaks
March 20, 2018March 20, 2018

In early March MDN reported that Sunoco Logistics’ underground horizontal drilling (HDD) work on its massive Mariner East 2 NGL pipeline near Philadelphia had resulted in several sinkholes developing (see 3rd Sinkhole Appears Near ME2 Construction in Chester County, PA). Yesterday we reported the Pennsylvania Dept. of Environmental Protection (DEP) had stopped ME2 HDD work in Lebanon County following a 50 gallon drilling mud leak (see ME2 Construction in Lebanon County Stopped for 50 Gal Mud Spill). And now, more trouble for ME2 HDD work. This time Sunoco’s work at two different locations in Blair County (Altoona area) has resulted in the DEP shutting down further HDD work at both sites. In one case, around 200 gallons of drilling mud leaked out where it wasn’t supposed to (called an “inadvertent return”)–into a wetland. In the other case, a drill pit overflowed and leaked diluted drilling fluid into the Frankstown Branch of the Juniata River. Here’s the latest in Sunoco’s series of unfortunate events…
Read More “ME2 Drilling at 2 Locations Near Altoona Shut Down for Leaks”
CNG/LNG | Dominion Energy | Energy Services | Exporting | Industrywide Issues | Maryland | Statewide MD

Cove Point LNG: BP Ship Coming for 1st M-U Pickup; India Wants Swap
March 20, 2018March 20, 2018

“Hey Jim, what’s happening with Cove Point LNG? Didn’t you say a ship was on the way to pick up the very first cargo of Marcellus molecules?” Great question. Cove Point did see its first cargo set sail in early March (see Cove Point Ships First LNG Cargo – But Not M-U Gas). However, that first cargo was imported gas (from Nigeria) used to test the facility as part of the commissioning process. The plant chilled the Nigerian gas and loaded it onto a waiting LNG tanker and the tanker left. So yes, the plant works, but the first batch wasn’t M-U molecules, so in our book it doesn’t really count. We also told you that a second LNG tanker, called Methane Spirit, was on the way to Cove Point and would be the first ship to load and distribute M-U molecules to distant shores. Orders have changed. Methane Spirit is no longer en route to Cove Point. However, a BP-chartered ship by the name of Patris is on the way to Cove Point. Meanwhile, those who keep an eye on these things say there is currently very little feed gas (i.e. Marcellus gas) flowing into the Cove Point facility. Meaning what? Meaning it looks like the original rumor from January that Cove Point won’t be up and running, shipping Marcellus gas until April, was correct (see Uh-Oh: Cove Point LNG Exports Possibly Delayed Until April). The Patris is not due to dock at Cove Point until April 9th. Meanwhile, as India gets ready for its first contracted shipment of LNG from Cove Point, the country no longer wants it! They want to swap their Cove Point shipments with someone else. We explain it below…
Read More “Cove Point LNG: BP Ship Coming for 1st M-U Pickup; India Wants Swap”
Economic Impact | Industrywide Issues | Jobs | Lycoming County | Pennsylvania

Is Lycoming County, PA in Midst of “Natural Gas Resurgence”?
March 20, 2018March 20, 2018

Lycoming County, PA

In a recent interview, the CEO of the Williamsport/Lycoming Chamber of Commerce said that in Lycoming County the “natural gas industry is enjoying a resurgence.” Which struck us as odd, given our own recent research into the number of wells being drilled (or lack thereof), and the decrease in natural gas production in Lycoming County. We suppose it all depends on what you mean by resurgence. A resurgence in drilling and production? We’d have to answer that with a “no.” However, if you’re talking about a resurgence in jobs related to the natgas industry because of new pipeline projects? Apparently that answer would be a big “yes”…
Read More “Is Lycoming County, PA in Midst of “Natural Gas Resurgence”?”
Accidents | Belmont County | Energy Companies | Industrywide Issues | Ohio | XTO

XTO Well Explosion in Ohio Still Under Investigation Month Later
March 20, 2018March 20, 2018

On Feb. 15, XTO Energy was drilling a Utica Shale well on the Schnegg well pad near Captina Creek (York Township, Belmont County, OH) when they “lost control” of the well and it exploded and caught fire (see XTO Energy Utica Well Explosion in Belmont County – 100 Evacuated). Fortunately no one was injured. It took XTO 20 days to get the well capped so it would stop venting methane into the atmosphere (see Exploded XTO Well in Belmont County Finally Capped After 20 Days). It’s now 35 days from the initial explosion and XTO and state officials investigating the incident still don’t know why it happened. An XTO spokesperson updated Belmont Count commissioners last week on the aftermath of the explosion and how XTO is working hard to ensure area residents are well taken care of. Here’s the latest on the aftermath, and the ongoing investigation…
Read More “XTO Well Explosion in Ohio Still Under Investigation Month Later”
Energy Services | Industrywide Issues | Marshall County | Sand/Proppant | U.S. Silica | West Virginia

CIG Logistics Buys Sand Transload Terminal in WV from US Silica
March 20, 2018March 20, 2018

CIG Logistics is a company in the business of moving sand used in fracking from point A to point B. CIG owns and operates a series of transloading terminals, along with trucks to deliver sand to well sites. A transloading terminal is a place where sand arrives via one form of transportation, say on a rail car, and leaves via another form of transportation, like a truck. U.S. Silica is the country’s largest sand producer. U.S. Silica also owns some of its own transloading terminals. CIG announced yesterday it has cut a deal to buy three U.S. Silica transloading facilities–two in Texas and one in the Marcellus, in Marshall County, West Virginia. CIG claims that with this deal they have become the “preferred transload provider to U.S. Silica” in the Permian Basin and Eagle Ford in Texas, and the Marcellus Shale via the facility in WV. Terms of the deal were not disclosed…
Read More “CIG Logistics Buys Sand Transload Terminal in WV from US Silica”
Blue Racer Midstream | Chesapeake Energy | Energy Companies | Energy Services | Industrywide Issues | NGLs | Pipelines | Regulation | Statewide WV | West Virginia

FERC Rejects Blue Racer Midstream Plan to Change NGL Pipe Rates
March 20, 2018March 20, 2018

We have to confess this story is a bit complex to understand. We will take a stab at making the complex understandable. Blue Racer Midstream has a subsidiary called Blue Racer NGL Pipelines LLC. The subsidiary operates the G-150 pipeline system, which provides batched propane and butane service. G-150 currently, located in West Virginia, connects a Natrium, WV processing plant to the TE Products Pipeline Co. (TEPPCO). The G-150 pipeline will also have a connection to the Mariner East 2 Pipeline when it goes into service, theoretically in June of this year. Currently the G-150 is flowing about 6,300 barrels per day of product through it–only 20% of its capacity. When the connection with ME2 is up and running, Blue Racer says it can handle 30,000 bbl/d through the G-150. However, Blue Racer itself signed up for most of the capacity (27,000 bbl/d). Blue Racer recently asked the Federal Energy Regulatory Commission (FERC) to allow it to have two different rate structures–a lower rate for “committed” shippers (Blue Racer itself with its 27,000 bbl/d) and a higher rate for uncommitted shippers. FERC rejected the request pointing out that existing shippers with contracts–namely Chesapeake Energy–would be left out in the cold in favor of Blue Racer moving its own volumes at lower prices. Yes, it’s complicated. Bottom line, Blue Racer can’t do what it wants and has to go back to the drawing board…
Read More “FERC Rejects Blue Racer Midstream Plan to Change NGL Pipe Rates”
Dominion Energy | Energy Services | Industrywide Issues | North Carolina | Pipelines | Regulation | Statewide VA | Statewide WV | Virginia | West Virginia

Atlantic Coast Pipe Asks FERC for More Time to Cut Trees
March 20, 2018March 20, 2018

Dominion Energy’s $6.5 billion Atlantic Coast Pipeline (running from West Virginia through Virginia and into North Carolina) is supposed to get built this year. ACP began to cut trees along the pipeline’s path in late January (see Atlantic Coast Pipeline Begins Cutting Trees in WV & VA (Not NC)). ACP chainsaws have been busy since that time. Due to restrictions for species like the threatened Indiana bat, tree cutting season is limited–from November 16 to March 31. ACP says it won’t be done by March 31 and is asking the Federal Energy Regulatory Commission (FERC) for permission to continue clearing trees in WV, VA and NC until May 15th. Antis are making loud noises that FERC should deny the request. What will FERC do? If they don’t grant permission, ACP will be delayed–perhaps by a year…
Read More “Atlantic Coast Pipe Asks FERC for More Time to Cut Trees”
Best of the Rest

Other Energy Stories of Interest: Tue, Mar 20, 2018
March 20, 2018March 20, 2018

The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: ME1 pipeline remains offline 12 days later; CNX Midstream completes purchase of gathering pipeline from CNX parent; NY spending money on natgas-powered vehicles; Louisiana gas market gets turned upside down; Arizona regulators sour on natgas, prefer so-called renewables; bill to ban fracking in Florida dies; o&g gets loophole in Trump tariff; natgas is under attack; Germany wants LNG imports; and more!
Read More “Other Energy Stories of Interest: Tue, Mar 20, 2018”
Accidents | Energy Services | Industrywide Issues | Lebanon County | Pennsylvania | Pipelines | Regulation | Sunoco Logistics

ME2 Construction in Lebanon County Stopped for 50 Gal Mud Spill
March 19, 2018March 19, 2018

The Pennsylvania Dept. of Environmental Protection (DEP) has just shut down further drilling for the Mariner East 2 Pipeline project at Snitz Creek in Lebanon County, PA because of a 50 gallon spill of non-toxic drilling mud. This isn’t the first time the DEP has stopped underground horizontal directional drilling (HDD) work at Snitz Creek. Last November they did the same thing for a piddly 1 gallon spill (see PA DEP Shuts Down ME2 Drilling in Lebanon, PA for 1 Gal Mud Spill). In the parlance of today, leaking 50 gallons of drilling mud into Snitz Creek is a nothing-burger. Biased reporters like those at PBS StateImpact Pennsylvania make it out to be the environmental crime of the century. There’s more environmental damage from overfilling a gas tank at the local Sheetz that spills two gallons of gasoline onto the pavement than there is from spilling 50 gallons of non-toxic kitty litter (or toothpaste, or lipstick) into Snitz Creek. But there you go. Sunoco voluntarily reported the incident, and was promptly shut down at that site until further notice. Meanwhile, a few weeks ago a farmer in nearby Lancaster County spilled 100,000 gallons of manure into two creeks–with zero consequences. Why didn’t the DEP shut down the farm?…
Read More “ME2 Construction in Lebanon County Stopped for 50 Gal Mud Spill”
Columbia Pipeline Group | Energy Services | Industrywide Issues | Maryland | Pipelines | Regulation | Statewide MD

Maryland Approves NatGas Pipeline Under Potomac River
March 19, 2018March 19, 2018

Anti-fossil fuel nutters have been on a holy mission to stop a 3.5-mile, 8-inch pipeline from being built under the Potomac River by Columbia Gas (see Maryland Antis Oppose 13th Pipeline Under Potomac as “Dangerous”). The pipeline will be built to feed a larger pipeline project being built by Mountaineer Gas called the Eastern Panhandle Expansion–a pipeline to deliver natural gas via local distribution channels to a new industrial facility in Berkeley County, WV, and to provide gas to other local businesses and residents in the Tri-State area. Last week MDN reported that Mountaineer has just begun work on their project (see Mountaineer Gas Begins Work on Morgan County, WV Pipeline). We commented that Maryland, under RINO Gov. Larry Hogan, had not (yet) caved to radical antis and their pressure to block the Columbia project–which would be the 13th pipeline Columbia has built under the Potomac River (see Maryland Antis Oppose 13th Pipeline Under Potomac as “Dangerous”). Good news. On Friday Maryland (surprisingly) granted the necessary permits for the Columbia project…
Read More “Maryland Approves NatGas Pipeline Under Potomac River”
Empire Pipeline | Energy Services | Industrywide Issues | New York | Ontario County | Pennsylvania | Pipelines | Regulation | Tioga County (PA)

Empire Pipe Plans 2 Compressors in PA & NY to Move Marcellus Gas
March 19, 2018March 19, 2018

Click image for larger version

Empire Pipeline, the midstream (pipeline) subsidiary of National Fuel Gas Company (based in Buffalo, NY), earlier this month filed an application with the Federal Energy Regulatory Commission (FERC) to build two new compressor stations along the Empire Pipeline–one in Tioga County, PA, the other in Ontario County, NY. Without building any new pipeline, the addition of these two compressor stations will allow an extra 205,000 dekatherms per day (or 205 million cubic feet/day) of PA Marcellus gas to flow through the Empire Pipeline system. The project, called Empire North Project, will provide much-needed natural gas for Upstate NY and Canada. It will also connect to the Tennessee Gas Pipeline, so who knows? Maybe some Marcellus molecules will find their way into New England too. The gajillion dollar questions is, will the Andrew Cuomo-corrupted NY Dept. of Environmental Conservation try to stop this project as they have just about all other Marcellus-to-NY projects?…
Read More “Empire Pipe Plans 2 Compressors in PA & NY to Move Marcellus Gas”
Energy Services | Industrywide Issues | Pipelines | Regulation | Transco | Williams

FERC OKs Transco Garden State Expansion Phase 2 for Startup
March 19, 2018March 27, 2018

In April 2016, three Obama-appointed Federal Energy Regulatory Commission (FERC) commissioners approved the $116 million Williams Transco Garden State Expansion pipeline project (see FERC Approves NJ Pipeline – More Marcellus Gas on the Way!). The project was created to address supply disruptions following Superstorm Sandy in 2012. By upgrading compressor stations and adding a new meter station, the Garden State Expansion project will supply an extra 180 million cubic feet per day (MMcf/d) of natural gas to a new delivery point on Transco’s existing Trenton Woodbury Lateral pipeline. However, two towns in Burlington County, NJ (Bordentown and Chesterfield), where some of the work would be done for Phase 2 of the project, filed a lawsuit last year asking the U.S. Court of Appeals for the Third Circuit to overturn FERC’s previous decision to allow the project (see FERC Fights NJ Town Effort to Decertify Garden State Expansion). We’re happy to report the lawsuit was unsuccessful. We’re even happier to report that both compressors are built and as of Friday, FERC granted permission for both stations to come online and begin pumping extra Marcellus gas through the system…
Read More “FERC OKs Transco Garden State Expansion Phase 2 for Startup”
Industrywide Issues | Monroe County | Pennsylvania | Pipelines

PA State Program Spends $980K for NatGas Pipe in Monroe County
March 19, 2018March 19, 2018

Monroe County, PA

Every now and again Pennsylvania spends money to build new local distribution pipeline systems to bring home-grown Marcellus Shale gas to PA residents. The state has a program called the Pipeline Investment Program (PIPE). Last November the PIPE program committed $1 million (out of a $2.4 million project) to fund natural gas lines in Tunkhannock Township (Wyoming County), to provide Marcellus Shale gas to 102 residential homes, 13 businesses and several civic buildings (see PA Approves $2.4M Project to Run NatGas Pipes in Wyoming County). The program continues. On Friday the state announced another such investment–this time in Monroe County. The PIPE program is chipping in $980,000 as part of a $2.7 million project to construct a natural gas line extension along the Route 611 corridor in Pocono Township to the Monroe County Transit Authority…
Read More “PA State Program Spends $980K for NatGas Pipe in Monroe County”
Industrywide Issues | Pennsylvania | Potter County | Wastewater

Spirited Defense of Proposed Potter County Shale Wastewater Plant
March 19, 2018March 19, 2018

In January MDN told you that a new shale wastewater treatment facility that works in tandem with a local sewage treatment plant may be on the way in Coudersport (Potter County), PA (see Shale Wastewater Treatment Plant Planned for Potter County, PA). Epiphany Water Solutions, via a subsidiary company called Epiphany Allegheny, plans to build a centralized water treatment facility in Coudersport. That brought out the antis who made all sorts of wild accusations, including the Seneca Indians which live 65 miles down the Allegheny River from the proposed site (see Seneca Indians Fighting Proposed Potter County Wastewater Facility). The Pittsburgh Post-Gazette recently published an update on the controversy. It is an extensive article written by anti-fossil fuel “reporter” Don Hopey. The way it’s spun: shale wastewater has high levels of radioactivity (a false assertion, but it’s made nonetheless), and over time even treated wastewater with radioactivity will “degrade” the Allegheny River–a river that provides drinking water for “millions of people downstream, including Pittsburgh.” That’s the anti argument against this project, in a nutshell. Scare millions of people that their drinking water supply will be threatened by this nasty, filthy, vile recycling plant. However, the article uncharacteristically presents the Epiphany side of the argument, the counterargument to these false claims…
Read More “Spirited Defense of Proposed Potter County Shale Wastewater Plant”
Calendar

Calendar of Marcellus/Utica Events for Mar 19 – Jun 18
March 19, 2018March 19, 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 19 – Jun 18”