Marcellus Drilling News

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

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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”
Industrywide Issues | Regulation | Statewide WV | West Virginia

WV Gov. Justice Does 180 – Says He’ll Sign Co-Tenancy Bill
March 9, 2018March 9, 2018

West Virginia Gov. Jim Justice has done a complete 180 degree turn around with respect to signing a co-tenancy bill. As we previously reported, the co-tenancy bill was passed first by the House, and then the Senate (see WV Co-Tenancy Bill Passes in Senate – Now Waits for Gov to Sign). However, on the way to final passage, Justice wanted to link co-tenancy with joint development, which would allow drillers who own existing (old) leases on adjoining properties to pool them into a unit without signing new shale leases with the owners. He threatened to veto a co-tenancy bill if there is no joint development bill too (see WV Gov. Justice Kills Co-Tenancy Bill by Linking it to Joint Dev). Justice got a lot of blowback, from everyone, and soon after his shoot-from-lip comments, he backed off his threat to veto. Yesterday Justice said he will sign the co-tenancy bill, that there are a lot of “positive benefits” to the legislation. What a turnaround!…
Read More “WV Gov. Justice Does 180 – Says He’ll Sign Co-Tenancy Bill”
Anti-Drilling/Fossil Fuel | Electrical Generation | Industrywide Issues | Lackawanna County | Pennsylvania

More on Yellow Smoke Coming from Gas-Fired Plant Near Scranton
March 9, 2018March 9, 2018

We spoke too soon. In a story MDN published yesterday, we said that Big Green propagandist mouthpiece PBS StateImpact Pennsylvania was the only “news” outlet reporting on “yellow smoke” released as part of the commissioning process for the Lackawanna Energy Center, a Marcellus gas-fired electric plant being built near Scranton (see Gas-Fired Power Plant Near Scranton Nears Startup; Yellow Smoke). We said yesterday that not even the Democrat-controlled Scranton Times-Tribune found the “yellow smoke” report newsworthy. A day later, the Times-Tribune was shamed into releasing a story about it. Once again, the only people quoted as experiencing ill health effects following the “yellow smoke” are long-time local activists, people who oppose the project…
Read More “More on Yellow Smoke Coming from Gas-Fired Plant Near Scranton”
Anti-Drilling/Fossil Fuel | Columbia Pipeline Group | Energy Services | Industrywide Issues | Maryland | Pipelines | Statewide MD | TC Energy/TransCanada

Maryland Antis Oppose 13th Pipeline Under Potomac as “Dangerous”
March 9, 2018March 9, 2018

Anti fossil fuel nutters have been on a holy mission to stop a 3.5-mile, 8″ pipeline from being installed under the Potomac River since last summer (see Mountaineer Pipeline Under Potomac Latest Focus of Anti Movement). To hear them talk, you’d think this is the first time a pipeline has been drilled under the Potomac River–that drilling and installing a pipeline under the Potomac will result in an environmental holocaust. However, TransCanada, via its Columbia Pipeline subsidiary, has already built and operates 12 other pipelines that go under the Potomac River–just in the State of Maryland! Yet the president of the Washington County (MD) Board of County Commissioners, Terry Baker, says “the dangers are high” and “real” if this, the 13th pipeline, gets installed. Why, Mr. Baker, are the dangers “high” and “real” now–but they weren’t high and real the 12 other times a pipeline was installed under the river?…
Read More “Maryland Antis Oppose 13th Pipeline Under Potomac as “Dangerous””