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    “Talk About It” Substitutes for Real Science in Marcellus Study

    This is one of those zany Friday kind of stories. Yet another so-called study on the Marcellus Shale industry recently caught our attention. We’ve often pointed out the “bought and paid for” research that abounds on shale drilling. This one goes to a whole new metaphysical plane. Instead of researching and drawing conclusions from research data, the recently published study “Engaging over data on fracking and water quality” (University of Pittsburgh and Penn State University) talks about talking about the issue of Marcellus Shale drilling. Yeah. How do you *feel* about drilling? Here, lie down on this sofa while we ask you some questions about your childhood and fracking practices. OK, so maybe a study about how people talk about the issues involved with Marcellus Shale drilling isn’t so far-fetched–if such a “study” were to appear in the Journal of Idiosyncratic Sociology. This “study” however, was published in the journal Science. As in hard science–not social science. So now it no longer matters what real science finds–whether or not fracking actually pollutes water and air. Whether or not living near a fracking site will stunt your growth. Whether or not fracking carves up forests or increases automobile accidents or any of a plethora of other issues. What REALLY matters is what you *think* about all that. That’s what now passes for science in Science…
    Read More ““Talk About It” Substitutes for Real Science in Marcellus Study”

  • Other Energy Stories of Interest: Fri, Feb 9, 2018

    The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Pipelines have econ benefits for WV; Atlanta energy law firm opens office in Pittsburgh; natgas bills for Massachusetts homeowners on the rise; some locals oppose proposed natgas-fired electric plant in Michigan; Exxon’s reserves jump 19%; analysis of pipeline assets & outlooks; Carl Icahn claims another CEO scalp at SandRidge Energy; and more!
    Read More “Other Energy Stories of Interest: Fri, Feb 9, 2018”

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    Pin Oak Energy Buys 70K Utica Acres in OH & PA + Pipeline Assets

    Pin Oak Energy Partners has just more than doubled the leased acreage it owns in the Marcellus/Utica, adding 70,000 Utica acres in both Ohio and Pennsylvania to its portfolio. MDN previously ran several stories about this relatively new entrant to our region (see our Pin Oak Energy stories here). While Pin Oak is a “new” company, the people running it have been around. CEO Chris Halvorson says Pin Oak is comprised of folks who were formerly with AB Resources. You may recall that AB Resources built a position in the southwestern “core” of the Marcellus and sold out to Chevron several years ago. Pin Oak is “what’s next” for for the former AB folks. Their target: the Appalachian basin. They buy both conventional and unconventional wells and acreage. Pin Oak announced yesterday that in a series of transactions with various sellers (all unnamed, amounts not disclosed), the company picked up a total of 70,000 acres in Mahoning and Trumbull counties in Ohio, and Mercer County in Pennsylvania. They also bought gas processing facilities and “multiple taps” into interstate gas pipelines, including two taps into the mighty Tennessee Gas Pipeline. Here’s the details on the purchase, which includes 33 conventional wells that target the Knox formation in southern OH…
    Read More “Pin Oak Energy Buys 70K Utica Acres in OH & PA + Pipeline Assets”

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    NG Advantage Loses Zoning Vote for Virtual Pipe Near Binghamton

    MDN reported on a heated meeting several weeks ago near our home base. The Town of Fenton Zoning Board of Appeals (ZBA) met to hear arguments against a zoning decision that would allow a proposed virtual pipeline/compressor station from NG Advantage to be zoned as a trucking/freight facility (see NG Advantage Virtual Pipe Hearing in Fenton an Eye-Opener for MDN). We won’t rehash the entire history of this facility and its quest to get built (see our NG Advantage stories here). In brief, after a local court forced NG to reapply for a permit to build the plant, as part of the process NG sought to be recognized as a trucking/freight facility, which is an allowed use for the piece of real estate where they want to build the plant. Local residents, including a local school district which is adamantly opposed to the project, appeared before the ZBA several weeks ago to argue the facility is more than a simple truck/freight facility. It’s also a compressor station that does not conform to the existing ordinance. The ZBA voted Tuesday night and agreed with those opposing the project. In a close 3-2 vote, the ZBA said the facility does not qualify under current land use regulations. So what happens now? NG can do one of three things: (1) appeal the ZBA decision in court, (2) ask the Fenton Town Board to reclassify the land where they want to build–essentially override the local zoning ordinance, or (3) look someplace else. Which option will NG choose?…
    Read More “NG Advantage Loses Zoning Vote for Virtual Pipe Near Binghamton”

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    CNX Adds 31 Marcellus/22 Utica Wells, Boosts Reserves 21% in 2017

    Click image for larger version

    CNX Resources (formerly CONSOL Energy) released a 2017 recap yesterday–a high level overview of the company’s accomplishments last year. The main point of the announcement was to point out that proved reserves–the gas and oil and other hydrocarbons the company can extract at today’s prices using today’s technology–went up a healthy 21% in 2017 over 2016. CNX figures they own 7.6 trillion cubic feet equivalent (Tcfe) of natural gas, oil, condensate and NGLs–sitting in the ground under CNX leased acreage. As you dig further into the announcement you find that CNX turned-in-line (TIL) 31 Marcellus wells and 22 Utica wells last year. Laterals (the horizontal part of the well) in the Marcellus averaged 8,400 feet long, and Utica laterals averaged 8,800 feet long. Here’s the 2017 roundup and proved reserve report from CNX…
    Read More “CNX Adds 31 Marcellus/22 Utica Wells, Boosts Reserves 21% in 2017”

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    CNX Sells WV Gathering System to Former CONE Midstream for $265M

    CNX Resources, in addition to issuing an announcement about proved reserves yesterday (see today’s companion story), also issued an announcement about CNX the drilling company selling its Shirley-Pennsboro gathering system in West Virginia to CNX the pipeline company (CNX Midstream) for $265 million. Yes, in a sense it is moving assets around on paper. However, this seemingly innocuous announcement is interesting to MDN for a couple of reasons. First, there is a trend of splitting companies apart–to spin out the pipeline/midstream stuff into its own standalone company, separate from the drilling part of the company. EQT, a major CNX competitor, is going through the process of evaluating whether or not to spin off their pipeline subsidiary into its own company (see EQT Begins Process of Separating Midstream…into New Company?). When we see moves like this from CNX, we wonder if they too are also preparing for such a split. We have no evidence that such a move is in the cards–just idle speculation on our part. However, the fact that CNX is moving pipeline assets into the midstream subsidiary certainly sets up the possibility that the pipeline subsidiary may (one day) become a standalone company. Second, the pipeline subsidiary is called CNX Midstream. That’s a new name. As of early January you would have known it as CONE Midstream. CNX bought out its joint venture partner in CONE (Noble Energy) late last year and now owns all of CONE. CNX renamed CONE as CNX Midstream in early January (see CONE Midstream Gets a New Name: CNX Midstream Partners). We’ve not seen anyone else point out the fact that the former CONE is the buyer of this asset. For those two reasons–the trend of splitting drilling and pipelines into different companies, and the fact that CONE was the buyer–our interest was piqued in CNX’s seemingly innocuous announcement yesterday…
    Read More “CNX Sells WV Gathering System to Former CONE Midstream for $265M”

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    SWPA Antis Twist State Laws in Bid to Declare Shale Drilling Illegal

    In November 2015 MDN reported on a seemingly obscure zoning court case in Westmoreland County, PA (see 3 Western PA Antis Weigh Appeal of Court Ruling in Zoning Case). Three ladies brought a lawsuit against Allegheny Township because the town approved a permit for CNX Gas–to drill a well on a farm owned by John and Anne Slike. Since the farm is about 1,200 feet from where the ladies live, they objected. We thought the case was long over with. But it’s not. As we recently pointed out, the ladies and their radical fractivist lawyer appealed using a novel legal argument (see SWPA Antis Breathe New Life into Old Zoning Lawsuit). Based on recent PA Supreme Court cases that uphold so-called environmental rights for all PA citizens, the ladies and their lawyer claim that allowing Marcellus drilling violates their environmental rights and they will experience mythical harms. The problem with the case is that if they win, it’s not much of a stretch for antis everywhere to claim the same thing–promptly ending the miracle of Marcellus drilling in the Keystone State…
    Read More “SWPA Antis Twist State Laws in Bid to Declare Shale Drilling Illegal”

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    NEPA Republican Lawmaker Intros Marcellus Health Registry Bill

    In 2011, then-Gov. Tom Corbett’s Marcellus Shale Advisory Commission filed a final report with 96 recommendations (see PA Marcellus Shale Advisory Commission Final Report with 96 Recommendations). One of those recommendations is to establish a population-based health registry. The aim would be to collect and evaluate clinical data from health care providers and monitor citizens living near drilling sites. Sounded good to us then, still sounds good now. One of the early attempts at this came from the private sector. Geisinger Health Systems proposed to use data already in the files to begin tracking potential issues related to shale drilling (see PA Marcellus Health Study by Geisinger Turns into Data Warehouse). But as we later learned, Geisinger was in it for the money (can’t blame them). They wanted $24 million and didn’t get it, so that effort flopped. A Republican State legislator from Scranton, PA, Rep. Karen Boback, is attempting to reignite interest in the health registry issue. On Monday, Rep. Boback introduced House Bill (HB) 2055 (full copy below) that would establish a health registry to collect health-related data from those living near shale drilling. The PA Dept. of Health would be the agency tasked with the data collection. Rep. Boback figures it will take $1 million per year to fund the initiative, far less than what Geisinger wanted…
    Read More “NEPA Republican Lawmaker Intros Marcellus Health Registry Bill”

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    PennEast Files Eminent Domain Against 44 Landowners, Wants Marshals

    As we told you last week, Monday (Feb. 5) was the final day for landowners who live along the path of the PennEast Pipeline to accept an offer from PennEast to lease their land for the pipeline (see PennEast Pipe Gives Holdout Landowners Feb 5 Deadline to Sign). The landowners have had nearly three years to deal in good faith negotiations with PennEast, and their time has now run out. On Tuesday PennEast regrettably was forced to file eminent domain lawsuits against 44 holdout landowners. PennEast also asked the court to approve the use of federal marshals to protect workers due to threats the company has received from landowners and radical antis who say they will hassle workers and block construction. A prudent request given the sometimes violent nature of the Big Green movement (e.g. Dakota Access Pipeline violence). Here’s the latest on PennEast, as they get ready to begin construction…
    Read More “PennEast Files Eminent Domain Against 44 Landowners, Wants Marshals”

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    Construction Co. Files Lawsuit Against MarkWest, Claims $40M Owed

    A construction company based in North Dakota, Bilfinger Westcon, has filed several lawsuits against MarkWest Energy (now owned by Marathon Petroleum) claiming MarkWest has failed to pay more than $40 million for work done on a number of projects. Bilfinger Westcon says MarkWest used a “time & materials cap” scheme to cap the amount of money they paid for various projects, but then slipped in last-minute change orders. Essentially, it was a way of getting more work for free–that’s the charge being made. Bilfinger says MarkWest was getting ready to sell itself to Marathon and wanted to rush to complete several projects and using time & materials cap was how they did it without breaking the bank. We have to say this is the first time we’ve heard or read anything negative about MarkWest’s business practices. We suspect there’s another side to this story, but MarkWest says they won’t comment on pending litigation. Here’s the Bilfinger Westcon side of the story…
    Read More “Construction Co. Files Lawsuit Against MarkWest, Claims $40M Owed”

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    New Federal Sand Dust Rules Affect NatGas Drillers This Year

    One of the primary ingredients in fracking is sand–a special kind of very fine sand called silica. When silica gets airborne and into a person’s lungs, it’s not good news. Silica behaves like asbestos, with the potential to cause lung cancer. The shale industry is keenly aware of it and takes steps to ensure workers are not exposed. The federal Occupational Safety and Health Administration (OSHA) developed a new rule for respirable silica (tiny tiny sand) that will go into effect for the shale industry in June of this year. We have the details below…
    Read More “New Federal Sand Dust Rules Affect NatGas Drillers This Year”

  • Other Energy Stories of Interest: Thu, Feb 8, 2018

    The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Six OH fractivists trash economic development; industry group touts assets in energy-rich OH; Clinton, PA commissioners look to future of natgas; Shale Support opens new Louisiana rail terminal for shale industry; Permian Basin is ‘Saudi Texas’; Chesapeake stock plunges after flat production outlook; U.S. electric mix depends on the price of natgas; big talk at City Hall can’t replace fossil fuels; energy stocks hit hard; oil world turns upside down as U.S. exports oil to Middle East; and more!
    Read More “Other Energy Stories of Interest: Thu, Feb 8, 2018”

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    Ascent Resources’ Marcellus Unit Files for Chapter 11 Bankruptcy

    Please see comments from Ascent Resources below in the 2/7/18 update…

    We have to confess, we did not see this one coming. Ascent Resources Marcellus, a company founded by Aubrey McClendon after he left Chesapeake Energy, has filed for Chapter 11 bankruptcy. Note that Ascent, which was spun off from the McClendon company American Energy Partners, has a split corporate structure. On paper there are a number of “Ascent Resources” companies: Ascent Resources, LLC; Ascent Resources Utica Holdings, LLC; Ascent Resources – Utica, LLC; Ascent Resources Management Services, LLC; and, Ascent Resources Marcellus Holdings, LLC. Same management team for all and frankly, as a practical matter, they are all one company. But it is the last one in the list, Ascent Marcellus, that is seeking bankruptcy protection. According to the company website, Ascent Marcellus focuses its drilling activity on 43,000 leased acres in West Virginia. Ascent Marcellus has a couple of loans it can’t repay, so it’s taking the bankruptcy route which will transfer ownership of that portion of the company from existing shareholder to debtholders. We’ve seen this movie before. Nobody gets screwed except existing shareholders–at least, that’s the theory. According to an announcement by Ascent, the “restructuring” as it’s called, will not affect landowners or vendors. This is “an operational restructuring and is not intended to restructure or compromise any vendor, service provider, contractor, lessor, working interest owner or royalty owner obligations.” Of course “intent” and reality are sometimes two different things. We’ll keep a close eye out as this develops…

    2/7/18 Update: Ascent Resources sent clarifications to our statements and assumptions above. Below are Ascent’s comments as provided, verbatim. We thank Ascent for taking the time to comment.

    Regarding the comment that they are basically the same company:

    It isn’t all the same company. This is a very important distinction. There are several different companies with similar names that are managed by another separate company that also has a similar name. The Marcellus company always had separate assets in West Virginia, a separate capital structure and separate debt that was collateralized solely by the West Virginia assets. It’s not all the same company.

    Regarding the comment that “Nobody gets screwed except existing shareholders–at least, that’s the theory.”

    You should know that Marcellus private equity owners hold more than 75% of the stock and control the board, so they were integrally involved in determining the most appropriate outcome for shareholders as part of the Chapter 11 discussions. So “in theory” does not apply to the detailed plan of reorganization that has been worked out between the company’s owners and the creditors. Read More “Ascent Resources’ Marcellus Unit Files for Chapter 11 Bankruptcy”

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    PA Gov. Wolf Broken Record: Proposes Budget with Severance Tax

    Here we go again. Supposedly striking a more “cooperative tone,” Pennsylvania Gov. Wolf’s sympathetic media buddies are trying to spin, as best they can, Wolf’s state budget proposal delivered yesterday. Wolf is a hyper-partisan who, in this latest budget, continues to demand a $250 million/year Marcellus-killing severance tax–on top of the existing impact tax. It is the only new tax in the budget, a budget that increases the already wildly overspent state budget by an additional $1 billion! Spending in Harrisburg is completely out of control–a disaster. The last governor (frankly the only governor in a generation) who tried to correct Harrisburg’s voracious appetite to spend more, Tom Corbett, got voted out of office after one term. Wolf is hoping to score a second term by continuing his Santa Claus routine–by pulling money from the pockets of those who earn it (landowners and drillers) to give away to those who don’t (teacher’s unions in Philadelphia). We are not exaggerating–this is fact. In his proposed $32.9 million budget, Wolf claims a “modest” severance tax will generate $248.7 million this year, and ALL OF IT will go to “education”–meaning teachers and their unions in the Philadelphia region. It’s political payback for their ongoing support and for their efforts to get Wolf elected in the first place. Why is this FACT not discussed openly in the media? It is repugnant to use the gun barrel of the state to steal the wealth of one group and transfer it to another as political patronage. Yet that is Wolf’s mission. Republican legislators reacted negatively to Wolf’s wildly overspent budget (and severance tax), as did the Marcellus industry…
    Read More “PA Gov. Wolf Broken Record: Proposes Budget with Severance Tax”

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    FERC Gives Rover Pipe OK to Restart Drilling Under Tuscarawas River

    Looks like asking “Pretty please, with a cherry on top” (along with providing requested information) works! MDN previously told you that on Friday, the Federal Energy Regulatory Commission (FERC) asked Rover Pipeline for more information before FERC would allow the project to restart drilling under the Tuscarawas River (see Rover Again Asks FERC for OK to Restart Tuscarawas Drilling). FERC asked for a review of three different options, including drill in a different place under the river and forget about drilling for a second pipe at all. Rover didn’t like either of those options and lobbied, hard, to get FERC to allow them to restart drilling in the same place where they’ve now lost 200,000 gallons of drilling mud down hole. Rover responded (on Sunday) to FERC’s Friday request, providing the information FERC requested. Rover specifically asked FERC for permission to restart drilling by 3 pm Monday–at the original location. The Monday deadline came and went. However, something in Rover’s appeal must have convinced FERC, because the OK to restart drilling came a day later–on Tuesday. Work has now resumed at the site, much to the consternation of Ohio EPA’s Craig Butler, who continues to oppose the project…
    Read More “FERC Gives Rover Pipe OK to Restart Drilling Under Tuscarawas River”

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    Antis of Green, OH Finally Face Reality – Will Allow NEXUS Pipe

    In the end, it came to down to cold, hard cash. Last May, MDN told you about antis running the City of Green, Ohio who were/are hellbent on stopping the NEXUS Pipeline (see Green, OH Paying Lawyers $100K to Fund Stop NEXUS Crusade). Green City Council voted to use $100,000 of taxpayer money to hire a Cleveland law firm to file a lawsuit “aimed at stopping the pipeline from being built or stopping the project altogether.” NEXUS, a $2 billion, 255-mile interstate pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada, was the first major pipeline project to get approved after the Federal Energy Regulatory Commission (FERC) once again had a quorum of three members (see New FERC Quorum Votes Final Approval for NEXUS Pipeline). Green’s high-priced lawyers filed their lawsuit in the 6th U.S. Circuit Court of Appeals, requesting an emergency stay blocking construction, which they got in November (see Fed Court Grants Green, OH Request to Stop NEXUS Pipe Construction). Everyone has their price. For the antis in Green, the price is $7.5 million and 20 acres of land that sit next to an existing city park. While the Green antis hate the idea of the pipeline getting built at all (especially Green’s anti-pipeline mayor), the writing is on the wall. They will lose and they know it–so to save face, the mayor negotiated a deal with NEXUS that City Council will vote on tonight to accept…

    2/8/18 Update: Green Council voted 4-3 to accept the NEXUS deal. More below.
    Read More “Antis of Green, OH Finally Face Reality – Will Allow NEXUS Pipe”