• Marcellus & Utica Shale Story Links: Mon, Nov 27, 2017

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Utica rig count stands at 23; Shell signs another 10 landowners for Falcon ethane pipeline; Burrell School District OKs seismic testing on school property; RIL closes on Marcellus shale asset sale for $126M; PA Girl Scouts get PennEast Pipeline STEM grant; Keystone XL Pipeline lawsuit advances; evil corporate raider Carl Icahn sinks claws into SandRidge Energy; Michigan O&G industry “looking up”; weather jitters send natgas prices down; using multilaterals in shale plays; first Canadian LNG shipment heads to China; big oil pledges to cut down on methane emissions; OPEC/Russia showdown over US shale; and more!
    Read More “Marcellus & Utica Shale Story Links: Mon, Nov 27, 2017”

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    Update on PA Severance Tax Bill – More Progress, House Leaves Town

    We have a brief respite, but are still in a dangerous position. The Pennsylvania House continued to debate and vote on amendments to House Bill (HB) 1401 yesterday–the Frankenstein bill introduced by RINOsaur Gene DiGirolamo (“Republican” from the Philadelphia area) that would tack a 3.2% severance tax on top of the existing ~5% impact tax (called a “fee”) already levied on Marcellus drillers, thereby effectively killing any new Marcellus drilling in the state (see PA Frankenstein House Bill Merges Severance Tax & Minimum Royalty). Debate on the bill began Monday, making quick progress (see Disastrous PA Severance Tax Bill Debated in House, Makes Progress). More progress was made yesterday. Some amendments to the bill passed, some failed–and then the House “abruptly adjourned” late last night without voting on the full bill itself. They got outta Dodge. The House returns to Harrisburg for more voting on Dec. 4th, so we have nearly two weeks of a reprieve before the battle begins again. It is vital this bill NOT PASS–for the future of Marcellus drilling in PA. Below is a list of the amendments that have, so far, passed and not passed, and how they tweak and change the overall Marcellus-killing HB 1401 bill…
    Read More “Update on PA Severance Tax Bill – More Progress, House Leaves Town”

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    DRBC Lawyer Nearly Faints 2nd Time When Questioned by Fed Judges

    This is getting pretty old, fast. Two weeks ago MDN told you about a lawsuit that finally got it’s day in court–a case brought by a Wayne County, PA landowner against the Delaware River Basin Commission (DRBC) over its ongoing, 10+ year ban on fracking in the Delaware River Basin (see DRBC Attorney Faints in Federal Court During Questioning). Under “heaving questioning” the attorney for the DRBC fainted in the court room, ending the session that day. Both sides were back in court yesterday to finish what began two weeks ago, and the judges once again turned up the heat on the DRBC attorney–and he almost fainted again, having to sit down (delaying proceedings for a time). Every time this lawyer gets tough questions that he doesn’t like, he pulls this fainting routine. Is it legitimate? Does he have a “condition?” Frankly, we don’t care. His “condition”–if that’s what it is–keeps blocking justice. If he’s not up to the job, remove him. Get someone who can handle the pressure. At least the session yesterday finished. Oral arguments are now done. MDN friend Tom Shepstone listened to a recording of the session and filed a fantastic report, recounting the back and forth–and how the DRBC’s defense collapsed (metaphorically) under the sharp eye of the judges doing the questioning. The DRBC and its shill leader Steve Tambini (a MAJOR disappointment since he was appointed in 2014) were exposed yesterday as the obstructionists they are…
    Read More “DRBC Lawyer Nearly Faints 2nd Time When Questioned by Fed Judges”

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    Belmont County, OH Passes Carroll County for Most Utica Permits

    Since Aubrey McClendon and Chesapeake Energy first burst on the scene to announce the Utica Shale is “the best thing to hit the state of Ohio economically since maybe the plow” and Chesapeake leased and drilled in Carroll County, OH, Carroll has been the single most Utica drilled county in the state. Activity in Carroll remains strong, but as the play has matured and drillers have experimented in other counties, the “sweet spot” for Utica drilling moved south, to places like Belmont, Monroe and Guernsey counties. The most productive Utica wells drilled are in those southern counties. So it was not all that big a surprise, but certainly noteworthy, to read that Belmont County has now passed Carroll for total number of permits issued to drill Utica wells. A “changing of the guard.” We hasten to add Carroll still has more drilled and producing Utica wells than Belmont–at this point in time. At some point that dynamic will change. Below we have the latest numbers, and a special sneak preview of MDN’s forthcoming Marcellus & Utica Shale Almanac showing a breakdown of numbers for Carroll County, still (for now) the most drilled Utica Shale county in the Buckeye State…
    Read More “Belmont County, OH Passes Carroll County for Most Utica Permits”

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    Report: Utica Drillers Spend $300M (so far) on Fixing Ohio Roads

    The Ohio Oil and Gas Association (OOGA) and Energy In Depth (EID) Ohio recently published a new report that shows Utica drillers have spent more than $300 million in eight Ohio counties from 2011 until earlier this year improving and fixing 630 miles of Ohio’s roadways. The study, titled “Ohio’s Oil & Gas Industry Road Improvement Payments” (full copy below) takes a close look at Road Usage Maintenance Agreements (RUMAs) in eight counties. You read that right. The O&G industry has spent over $300 million in eight counties over the past seven years. That’s $300 million in PRIVATE (not government-confiscated-via-taxes) money to fix up roads. Those living in eastern Ohio are lucky dogs…
    Read More “Report: Utica Drillers Spend $300M (so far) on Fixing Ohio Roads”

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    Basin Energy Buys/Merges in Marcellus-Utica Co. Katko

    Basin Energy, which acts as a holding company to invest in (and run) other companies located in the Marcellus/Utica, is based in Bridgeport (Harrison County), WV. Basin’s first acquisition was ProActive Services, an operator of natural gas pipeline compressor stations and other related oilfield services. In September 2015, Basin closed a deal on their second subsidiary–the Jane Lew (Lewis County), WV-based Starett’s Well Service, a specialty roustabout services firm, focused on well site and midstream natural gas infrastructure in the Marcellus and Utica Shale regions (see WV Roustabout Company Sells Itself to Another WV Company). Since that time Basin has been busy. In January of this year, Basin closed on acquiring Appalachian Production Services (APS), a company focused on focused on providing services for producers in the Marcellus and Utica Shale. A few weeks ago Basin did it again, closing a deal to acquire Katko, LTD. Katko is focused on providing well hook up services, maintenance of midstream and production assets and specialty welding services in OH, PA and WV. The the owner and founder of Katko, John Bettem, will join Basin’s board of directors. Terms of the private deal were not disclosed. Basin Energy has come out of nowhere in a few short years to become an important oilfield services player in the Marcellus/Utica…
    Read More “Basin Energy Buys/Merges in Marcellus-Utica Co. Katko”

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    XNG Virtual Pipeline Defends Itself Against Antis in Otsego Co. NY

    Earlier this year Xpress Natural Gas (XNG) spent $18.6 million to build a “virtual pipeline” facility in Susquehanna County, PA that employs ~90 people and loads up to 100 compressed natural gas (CNG) tanker trucks each day with PA Marcellus gas, for deliveries to customers across the Northeast and Mid-Atlantic states (see Major CNG Virtual Pipeline Coming to Susquehanna County, PA). Many of XNG’s trucks (40 per day) head up Interstate 81, catch Interstate 88 in the Binghamton area, and keep on going, eventually arriving in Herkimer County where the trucks unload the gas into the Iroquois Pipeline. Iroquois gets up to 50 million cubic feet per day (MMcf/d) from XNG’s trucks, using it for resale to customers further on down the pipeline in New York and New England (see XNG Virtual Pipe Delivering 50 MMcf/d of PA NatGas to NY Pipeline ). However, some residents in Upstate NY, in Otsego County (we suspect the same anti-fossil fuel nutters who lobbied to ban fracking and ban new pipelines) are up in arms with XNG’s daily truck trips. In order to shave miles and money from having to use Interstate 90 (NY Thruway with big tolls), XNG instead leaves I-88 and uses several state highways, routing the trucks through small towns. An eyewitness who lives along the route emailed MDN back in September said, “these [XNG drivers] are very considerate to the speed limits in the small towns they go through, I think these drivers are well disciplined…(maybe disciplined is not the right word) and the trucks are very quiet.” However, a group of antis turned up at a meeting last Thursday night in Otsego County to gripe and moan about the truck traffic. They don’t want fracking. They don’t want pipelines. And now they don’t want trucks hauling natural gas coming past their front door. Maybe they should just quit using all fossil fuels themselves and begin living like cavemen again?…
    Read More “XNG Virtual Pipeline Defends Itself Against Antis in Otsego Co. NY”

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    New England Lawsuit Claims Utilities “Constrained” NatGas Pipeline

    A class action lawsuit was filed last week by 12 New England power customers who claim that two New England utility companies–Eversource and Avangrid–intentionally manipulated the flow of gas along the Algonquin natural gas pipeline by placing and later withdrawing orders, in order to spike the cost of gas which then spiked the cost of electricity generated by the resulting higher cost gas. It is a convoluted, cockamamie charge first brought by the radical antis at the Environmental Defense Fund (see EDF Accuses New England Gas Utilities of $3.6B Market Manipulation). EDF published a “report” that makes the preposterous claim that New England customers have overpaid utility bills by $3.6 billion due to collusion between the natural gas and electricity industries. EDF spins the outlandish theory that Avangrid and Eversource brilliantly conspired to create Enron-style fake gas shortages involving a whopping 3.5% of the capacity of the Algonquin pipeline–all in order to drive up electric clearing prices for a wind farm Avangrid didn’t yet own, a rarely dispatched Avangrid oil peaker, and three crappy, rarely operated oil and coal plants in New Hampshire (plus nine little hydro dams that Eversource was trying to unload for years, sold recently). EDF’s tall tale is so bizarre (and hard to follow) it’s laughable. Yet now a class action lawsuit has launched based on EDF’s fictional report…
    Read More “New England Lawsuit Claims Utilities “Constrained” NatGas Pipeline”

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    New England Grid Operator: Region Needs More NatGas, Pipelines

    In a companion story today, MDN tells you about a frivolous lawsuit that claims two New England utilities have been manipulating gas flows along the Algonquin Pipeline, by “constraining” those flows (see New England Lawsuit Claims Utilities “Constrained” NatGas Pipeline). It’s bupkis. That is, the utilities are not the ones constraining pipelines in New England. What is constraining New England pipelines is high demand for natural gas–and NOT ENOUGH PIPELINES to flow it–both for end users like residences and business, and major users like electric generating plants. So says the head of the electric grid in New England, Gordon van Welie. Speaking at a recent energy conference in Rhode Island, van Welie said, “regional pipelines were built for gas distribution companies’ heating demands, not for power generation. [van Welie] says they’re at, or near capacity, in winter and generators have to use more expensive fuels, including oil and liquefied natural gas.” van Welie also said, “The gas problem [lack of it] is going to live with us for a long time” because more than 50% of New England’s electric power generation comes from gas-fired plants. What about Big Green favorites, wind and solar? van Welie rained on Big Green’s parade, saying wind and solar can’t replace gas because they’re “intermittent sources of power.” Whoops! Big Green’s bubble just got burst by reality and good old common sense. Here’s more about the meeting, and van Welie’s remarks…
    Read More “New England Grid Operator: Region Needs More NatGas, Pipelines”

  • MDN Off Thanksgiving, Black Friday

    Marcellus Drilling News typically takes Thanksgiving and the day after off to rest and relax with family. We will be sure to keep an eye on the news and if there is anything earth-shattering, we will bring you that news. Otherwise, we’ll see you next Monday. Have a great Thanksgiving! – Jim Willis, Editor

  • Marcellus & Utica Shale Story Links: Wed, Nov 22, 2017

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Man accused of stealing from shale biz in OH; Univ. at Buffalo invests in fracking, ticks off green snowflakes; Cornell prof wants NY to go climate berserk with new regs; TransCanada still investigating Keystone leak; growing gas glut threatens W TX oil boom; OPEC-U.S. shale showdown continues; Trump & antis both want court to leave BLM frack ruling intact; natgas inventories down; Poland signs deal to buy US LNG; Norway isn’t turn away from fossil fuels; and more!
    Read More “Marcellus & Utica Shale Story Links: Wed, Nov 22, 2017”

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    Disastrous PA Severance Tax Bill Debated in House, Makes Progress

    Warning: Pennsylvania House Republicans are about to kill Marcellus drilling in PA by adopting a severance tax on top of the existing impact tax–creating the highest taxation of the oil and gas industry in the United States. Is PA ready to trade away an entire industry propping up its sorry finances–just to give money to Philly teacher’s unions? This is a TRAGEDY in the making. RINOsaur Gene DiGirolamo (“Republican” from the Philadelphia area) introduced a Frankenstein bill earlier this year called House Bill (HB) 1401 (see PA Frankenstein House Bill Merges Severance Tax & Minimum Royalty). The bill would tack a 3.2% severance tax on top of the existing ~5% impact tax (called a “fee”) already levied on Marcellus drillers. As soon as the bill made its way out of committee to the full House for consideration, over one hundred amendments were attached to it. Most of those amendments have been ruled “out of order” and removed from the bill, reviving the bill which is now under active consideration. A number of important amendments still remain and some of those were voted on yesterday. What you need to know front and center is that this bill is about a massive transference of wealth from those who produce wealth by working hard (drilling companies and landowners) to those who don’t (teacher’s unions). One of the amendments to HB 1401 passed yesterday reserves the first $150 million of the new severance tax solely for Big Education. The entire amount of revenue raised from a new severance tax, according to RINOsaur DiGirolamo, is expected to be $150 million. That is, ALL of the severance tax will go to Big Education, as payback. And you thought MDN was just spouting off, using hyperbole, ignorant or just plain mistaken all these years we’ve been screaming at the top of our lungs that the severance tax is nothing more than payback to Philly teachers for voting Tom Wolf into office. We (don’t) hate to say it: we were right. And now traitorous Republicans are making it possible for this to happen–for Wolf to get his way and corruptly funnel money back to the unions that elected him. Is any one else outraged at this? Are House Republicans asleep at the wheel???…
    Read More “Disastrous PA Severance Tax Bill Debated in House, Makes Progress”

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    FERC Approves WB Xpress Pipeline Across WV, VA

    The Federal Energy Regulatory Commission (FERC) on Friday granted final approval for Columbia’s WB Xpress pipeline project. In Jan. 2016, Columbia Pipeline Group (now owned by TransCanada) filed a full, official application with FERC for the $850 million WB XPress Project (see Columbia Pipeline Files to Build $850M WB XPress Project in WV/VA). WB XPress consists of two new compressor stations, 26 miles of pipeline replacement located along existing corridors (11.6 miles of it in Monongahela National Forest), and 2.9 miles of new pipeline in Virginia and West Virginia. The WB XPress Project will expand capacity of the Columbia Gas Transmission pipeline system in the region by 1.3 billion cubic feet per day (Bcf/d), linking Marcellus gas supplies to new markets. FERC issued a favorable environmental assessment for the project in March of this year (see FERC Gives Columbia WB XPress Enviro Thumbs Up). In September, the U.S. Forest Service gave their blessing (see WB XPress Pipeline Gets Important USDA Approval for Natl Forest). And now the fat lady has sung: FERC has issued a final approval for the project, meaning the next step is for construction to begin…
    Read More “FERC Approves WB Xpress Pipeline Across WV, VA”

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    NFG and NY DEC Go At It in Federal Court Over Pipeline Rejection

    Last week lawyers for National Fuel Gas Company and the New York Dept. of Environmental Conservation (DEC) were in federal court doing battle over the DEC’s arbitrary and capricious rejection of an important Marcellus pipeline project. Three years ago NFG proposed and filed to build the Northern Access Pipeline project–a $455 million project includes building 97 miles of new pipeline along a power line corridor from northwestern Pennsylvania up to Erie County, NY. The project also calls for 3 miles of new pipeline further up, in Niagara County, along with a new compressor station in the Town of Pendleton. The Federal Energy Regulatory Commission (FERC) granted final approval for the project in February of this year (see NFG’s Northern Access Pipe in NY/PA Gets FERC Approval). However, in April of this year, the DEC ruled against granting the project stream crossing permits, effectively killing it, at least for now (see Cuomo’s Corrupt NY DEC Blocks NFG Northern Access Pipeline Permit). In April, NFG sued the DEC in the Second Circuit of the U.S. Court of Appeals to overturn the denial (see NFG Sues NY DEC in Fed Court re Northern Access Pipe Rejection). That case was argued last week before a panel of three judges from the Second Circuit…
    Read More “NFG and NY DEC Go At It in Federal Court Over Pipeline Rejection”

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    Sunoco Continues to Rack Up ME2 Drilling Mud Spill Violations

    Sunoco Logistics Partners (part of and owned by Energy Transfer Partners) has had its fair share of “inadvertent returns” (i.e. leaks of drilling mud) while drilling underground for the Mariner East 2 pipeline project that stretches across the width of Pennsylvania. Some would say Sunoco has had more than its fair share of mud spills. Bear in mind that drilling mud is otherwise known as bentonite–the nontoxic clay mixture used to cool the drill bit as it chews away underground. Bentonite is the same chemical compound used to make kitty litter, toothpaste and all sorts of cosmetics. It’s totally safe for the environment–unless you spill a lot of it and smother little critters like salamanders and fishies. When installing a pipeline, you don’t just dig a trench across a roadway or dam up a creek or river. Instead, you use horizontal directional drilling (HDD) to dig under it. ME2 is some 350 miles long, so there are a number of places where HDD must be used. There are always small drilling mud spills, or inadvertent returns, associated with HDD work. However, Sunoco has had, at last count, 96 such instances (see the list below). Antis seek to make the most of each and everyone spill episode. The most recent such spill is associated with a sink hole believe caused by HDD drilling in Delaware County last week (see ME2 Drilling in Delaware Co. Creates Small Sinkhole, Antis Swarm). The PA Dept. of Environmental Protection (DEP) sent a notice of violation for last week’s mud spill (see it below). DEP officials admit they are somewhat overwhelmed with trying to keep an eye on the project and are considering “additional enforcement” actions against Sunoco LP for ME2…
    Read More “Sunoco Continues to Rack Up ME2 Drilling Mud Spill Violations”

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    Paid Agitators Shut Down Traffic at Energy Co Offices Near Pittsburgh

    One of the crazies protesting in front of Southpointe

    Hey, it’s Thanksgiving break, woo hoo! Time for brainwashed college kids to break the law and claim they’re doing their civic duty by shutting down traffic in front of “evil” companies that are part of the Marcellus industry. A lawless mob of perhaps two dozen maleducated young people along with some old hippies (most of whom were from out-of-state, i.e. paid agitators) set up roadblocks and other elaborate structures in front of the Southpointe business park in Washington County, PA, near Pittsburgh. A variety of Marcellus-related companies have offices in Southpointe, including Range Resources, CONSOL Energy, Halliburton, and Chesapeake Energy. The malcontents’ complaint? They have a psychological disorder in which they irrationally hate fossil fuels, and by extension, those who extract and sell them. Even though the clothes on their bodies and the sneakers on their feet come from fossil fuels. And even though they woke up in homes and apartments heated by fossil fuels. And even though they arrived at the protest in vehicles powered by fossil fuels. And even though the signs they made and carried were made from fossil fuels. Yeah, totally nutso. The lawlessness went on for about four hours before local police finally ejected the last of the nutters. They had a chance to make their statement and disrupt legitimate, salary-paying and valued businesses for a while, all in the name of anarchy and mob rule–driven by abject hatred. We often wonder if this is how it felt during the rise of the Nazi Party in the 1920s…
    Read More “Paid Agitators Shut Down Traffic at Energy Co Offices Near Pittsburgh”