Another Look at “Rule of Capture” Case that Threatens PA Marcellus
MDN brought you important news in April that the Pennsylvania Superior Court had handed down a decision (known as the “Briggs” case) that has the power to greatly restrict, perhaps even stop, Marcellus drilling in PA (see PA Superior Court Overturns “Rule of Capture” for Marcellus Well and PA “Rule of Capture” Case has Power to Limit Marcellus Drilling). The issue, in brief, is that the Superior Court decision disallows using an age-old principle called the “rule of capture” when it comes to shale drilling and fracking. It opens the door to a myriad of frivolous lawsuits claiming that a fracture, a crack created during fracking, is draining gas from a neighbor’s property without justly compensating the neighbor for the gas. Southwestern successfully argued in a lower court that the odd crack here and there that may slip under a neighbor’s property is permissible. The landowner appealed to Superior Court and three judges heard the case. Southwestern, following the decision, petitioned the Superior Court to have all of the sitting justices (called en banc) hear the case (see Southwestern Appeals “Trespass” Case to Entire PA Superior Court). No word yet on whether the Superiors will do it. In the meantime, we spotted an article by the ace lawyers at the Blank Rome law firm discussing the case and its implications. We can’t stress enough just how critical this case is to the future of drilling in Pennsylvania, which is why we bring you the following…
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Every three months publicly traded companies, including those with major operations in the Marcellus/Utica, issue a required quarterly update for stockholders. It’s often referred to as “earnings season.” We like to cull through the updates to share items of interest with MDN readers. For drilling companies we dedicate an entire post to each company. We typically don’t cover midstream (i.e. pipeline) companies as much. However, there are a number of important projects cooking with companies like Williams, MarkWest Energy (MPLX), Summit Midstream and Tallgrass (REX Pipeline). We culled through the press releases and analyst phone call transcripts to pick out comments and portions that we think are helpful in understanding where some of these important projects are, and how they impact the bottom line of said companies. Below is our 1Q18 midstream potpourri…
This story should make every patriotic American good and angry–at how Russia continues to try to defeat the American shale miracle (for Russia’s own selfish economic reasons). And it should make anti-fossil fuelers ashamed at how easily they’re played (and how stupid they really are), to fall for the propaganda campaigns run by Russia against American shale energy. An article recently appearing on the McClatchy news service exposes how Russian operatives, using false identities on Twitter and other social media platforms, convinced a handful of stupid anti-fossil fuelers in Miami to turn up at a fake rally, and then a Russian television network swooped in to film it, circulating that footage, convincing even more antis to organize and rise up against the Sabal Trail pipeline. It was a resistance movement generated whole cloth from nothing by Russia. All in an effort to get the pipeline shut down. Which may now happen! Bottom line: a bunch of stupid American antis allowed themselves to be played by Russians against their own country. Russian money also pours into groups like the Sierra Club via offshore accounts. The Sierra Club turns around and uses that money to oppose American infrastructure projects in the oil and gas industry. Call Robert Mueller! Somebody needs to investigate!…
The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: Crawford County CNG fueling station opens; Broome County admits solar farm deal was bad; Green, OH hosts town hall to discuss NEXUS pipe safety; power plant projects invest $4.6B in Mahoning Valley; Susquehanna County training kids for careers in the gas fields; anti-frackers hope to fool Youngstown voters with lies; for 40 years Hollywood tried to kill nuke energy–now its trying to save it; natgas to flow to Scugog Island; China is getting better at fracking; and more!
Yesterday Chesapeake Energy, now the #2 natural gas producer in the U.S. (after EQT), released its first quarter 2018 financial and operational update. The company reported 1Q18 profits of $268 million, up 257% from the $75 million in profits during 1Q17. The key for increased profits was an increase in production while lowering costs. As we scanned over the numbers, one thing stood out for us: 26% of Chesapeake’s production comes from the Marcellus Shale, and 19% comes from the Utica. Add them together (45%) and no other region comes close. M-U success is Chesapeake’s success. It shows just how key the M-U region is for the mighty Chesapeake. During 1Q18 the company drilled and placed into production 10 wells in the Ohio Utica and 6 wells in the PA Marcellus. 2Q18 plans are to drill and bring online 7 Utica wells and 17 Marcellus wells. However, Chesapeake’s head has been turned. Their primary 2018 focus appears to be the Texas Eagle Ford Shale–an oil play. The company is currently running 5 drilling rigs in the Eagle Ford. They drilled and brought online 23 Eagle Ford wells in 1Q18, with plans to drill and bring online another 50 wells in 2Q18. Chessy has fallen and fallen hard for the siren song of oil. Here’s the latest from the #2 natural-gas producing company in the U.S. that now loves oil…
In yet another very good sign that the proposed PTT Global Chemical ethane cracker plant in Belmont County, OH is headed for a positive final investment decision (FID), PTT has just purchased another 300+ acres to go along with the previous acreage they purchased as the site for the future cracker/petrochemical project. Last July MDN reported PTT had spent $13.8 million to buy 168 acres at the proposed site for a second Appalachia ethane cracker, in Belmont County, OH (see 
As we reported yesterday, Big Green radicals in Pennsylvania are grumpy that the PA House passed five bills meant to fix the dysfunctional PA Dept. of Environmental Protection (see 
In June 2014, New York’s highest court, the Court of Appeals, reaffirmed two lower court rulings that empowers townships and municipalities across the state to strip away property owners’ rights to allow drilling and other energy projects (see 
You might think people who are not leased and live close to shale drilling activity, that is, those with the most “impacts” from that activity, would be the ones most opposed to it. However, you would be wrong. That’s according to a new study just published by the ultra liberal Oregon State University. A study appearing in monthly peer reviewed academic journal Risk Analysis titled, “The Effect of Geographic Proximity to Unconventional Oil and Gas Development on Public Support for Hydraulic Fracturing,” finds that the closer you live to shale drilling, even those who are not leased, the more supportive of it they are. Why is that? Because they understand it–they’re more familiar with it. MDN has spoken to residents in Susquehanna County, PA who live close to drilling yet are not, themselves, drilled on/under. Their opinion? Sure they’d like it if they got money. After all, they incur the impacts (trucks, noise, lights, dust), but don’t directly benefit with money in their pockets. Yet, when asked if they had a choice and could wave a magic wand so there never would have been drilling, the answer is swift and universal: NO! They still prefer nearby drilling, because it benefits their neighbors and, to some degree, the community at large via tax revenue and charitable contributions. Here’s news of a study that proves the closer you are to drilling, the more you like it…
An order from the Federal Energy Regulatory Commission (FERC) issued yesterday allows Energy Transfer (ET) to begin full operations along the North Market Segment of the Rover Pipeline–a $3.7 billion, 711-mile natural gas pipeline that runs from PA, WV and eastern OH through OH into Michigan and on to Canada via the Vector Pipeline. On April 13 ET asked FERC for permission to start up service along another major chunk of it’s massive Rover Pipeline (see 
In March the Pennsylvania House State Government Committee debated and voted to approve a slate of five bills aimed at fixing not only the slowmo way the state Dept. of Environmental Protection (DEP) approves shale permits, but also roll back some of the egregious regulatory overreach that now exists in PA (see 
West Virginia Secretary of Commerce, Woody Thrasher, once again addressed the issue of an ongoing trade war with China at yesterday’s West Virginia Oil and Natural Gas Association (WVONGA) conference at Oglebay Park. Last November Thrasher signed a memorandum of understanding with the Chinese government, an agreement in which the Chinese pledged to spend $83.7 billion over the next 20 years in WV’s shale and petrochemical sectors (see 
Late last week Dominion Energy issued its first quarter 2018 financial and operational update. Dominion is not only a large utility company (electric and gas), but also a huge pipeline company. Dominion has it’s fingers in a lot of Marcellus/Utica pies, so we like to keep track of the company and what it says about various critical projects for our region. Dominion CEO Tom Farrell had a lot of interesting updates, including updates for: Atlantic Coast Pipeline, a $6.5 billion Dominion pipeline from West Virginia through Virginia and into North Carolina; Cove Point, the $4 billion LNG export facility that began commercial operations in April; Greensville County (VA) Power Station, a $1.3 billion natural gas-fired combined cycle power plant; and the proposed merger with SCANA Corporation, the main electric and gas company for much of South Carolina. Buckle up, there’s lots of news here…