The Daily Digger

From The Intelligencer: Heavy rain continues to stall the efforts to cap a well at XTO Energy’s Schnegg well pad near Captina Creek, the site of an explosion on Feb. 15, but the majority of the evacuees have returned home.   “We’re still working. Obviously the weather has been a factor slowing us down. We’re still trying to move that big crane. We want to do that very carefully because it’s near a well that had been producing before the master valve was shut after the incident,”  XTO spokeswoman Karen Matusic said.  “Weather forecasts are continued rain. Its supposed to get even heavier tomorrow I’ve heard …We’re still working even though it’s raining, but there’s access roads. We have to be careful everything is still safe and secure. A couple times the working crew has been pulled off the pad by emergency responders.”   Matusic said the process involves using the access roads to remove debris and heavy equipment. The high winds and rain may impact safety of t...

New permits issued last week:   9   (Previous week:  2 )  +7 Total horizontal permits issued:  2765   (Previous week:  2755 )  +10 Total horizontal wells drilled:  2274   (Previous week:  2273 )  +1 Total horizontal wells producing:  1848  (Previous week:  1844 )  +4 Utica rig count:  22  (Previous week:  22 )   +-0 Connect with us on Facebook and Twitter! Follow @EnergyNewsBlog

From NGI: FERC on Wednesday authorized Rover Pipeline LLC to bring its Mainline Compressor Station 2 in Ohio into service, raising total project capacity to just over 2 Bcf/d as the designed 3.25 Bcf/d interstate pipeline readies for full service later this year.  In a letter order posted to the project docket, Federal Energy Regulatory Commission staff gave Rover the go-ahead to start up the approximately 38,000 hp station, which is located in Wayne County, OH.  In a request submitted earlier this month, Rover said it had finished installing and commissioning the station’s six units. The additional compression will grow Rover’s mainline capacity to 2,015 MMcf/d “and enhance its operational efficiency,” the pipeline told FERC. View the original article and read more by clicking here. Connect with us on Facebook and Twitter! Follow @EnergyNewsBlog

Press release:  Honeywell To Provide Natural Gas Liquids Fractionation Plant For MarkWest's Hopedale Plant    -    "Honeywell (NYSE: HON ) today announced that its UOP Russell business will provide a fractionation plant capable of producing 60,000 barrels per day of natural gas liquids (NGLs) to MarkWest Energy Partners. The company, which is a wholly owned subsidiary of MPLX LP (NYSE: MPLX), will install the plant at its Hopedale facility located in Jewett, Ohio. The fractionation system will recover propane, isobutane, normal butane and pentane – or natural gasoline -- from mixed natural gas liquids for use..." The Columbus Dispatch:  Columbia Gas Ready to Tap Regional Gas Supplies, Possibly Saving Customers Money    -    "Starting in April, much of the natural gas provided by Columbia Gas of Ohio will be coming from sources closer to home, a development that might contribute to low prices for consumers. The utility will start at th...

From the Akron Beacon Journal: Disgruntled Green residents are trying to reverse the city’s settlement with Nexus by placing the issue before voters.  A petition drive to obtain at least 735 signatures of valid Green voters is underway and must be filed by March 9 with the Summit County Board of Elections. If the signature drive is successful, the issue would be put before voters during an August special election or on the Nov. 6 general election ballot.  The city had been fighting plans by Nexus to build a 36-inch, high-pressure natural gas pipeline through Green.  Under the settlement, the city is getting $7.5 million in cash, around-the-clock monitoring of the pipeline and 20 acres west of Boettler Park that the city can use to extend a trail from the park to Koons or Thursby roads. Read more by clicking here. Connect with us on Facebook and Twitter! Follow @EnergyNewsBlog

New permits issued last week:   2   (Previous week:  4 )  -2 Total horizontal permits issued:  2755   (Previous week:  2752 )  +3 Total horizontal wells drilled:  2273   (Previous week:  2267 )  +6 Total horizontal wells producing:  1844  (Previous week:  1845 )  -1 Utica rig count:  22  (Previous week:  24 )   -2 Connect with us on Facebook and Twitter! Follow @EnergyNewsBlog

From NGI: Appalachian pure-play Rex Energy Corp. disclosed in a regulatory filing this month that it is exploring financial alternatives to strengthen its balance sheet, including the possibility of filing for bankruptcy to restructure.  The small-cap company disclosed in a U.S. Securities and Exchange Commission Form 8-K filing that the talks began last September with financial advisers that represent a group of investors holding a “substantial portion” of the company’s senior notes.  While Rex management stressed in the filing that no deal has been reached with noteholders during the ongoing negotiations, possibilities include restructuring, refinancing, asset sales or some type of debt forbearance, among other things.  Some second lien noteholders, Rex said, have agreed to a voluntary, pre-packaged Chapter 11 bankruptcy filing as a way to reorganize in exchange for debt and equity securities. According to the filing, the company has various bond debts of more t...

by Jackie Stewart, Energy in Depth The Wayne National Forest (WNF) announced this week that it  will begin revising  its Land Management Plan in April. In a  press release  issued Tuesday, the WNF explained that its decision was prompted by its desire to improve compatibility with the Ohio Department of Natural Resources (ODNR) and other state agencies: “With ODNR’s intention of revising Ohio’s Forest Action Plan by 2020, we have decided the time is right to revise our Land Management Plan, so that we can work more collaboratively with the State.” But not surprisingly, the  Center for Biological Diversity  (CBD) — one of the groups that filed a  lawsuit  against the BLM and United States Forest Service (USFS) last year for “failure to account for the impacts of fracking on public health, water, endangered species and the climate” in the WNF — is claiming the decision was prompted by its lawsuit, while also using the announcement as an opp...

New permits issued last week:   4   (Previous week:  6 )  -2 Total horizontal permits issued:  2752   (Previous week:  2754 )  -2 Total horizontal wells drilled:  2267   (Previous week:  2254 )  +13 Total horizontal wells producing:  1845  (Previous week:  1806 )  +39 Utica rig count:  24  (Previous week:  23 )   +1 Connect with us on Facebook and Twitter! Follow @EnergyNewsBlog

by Jackie Stewart, Energy in Depth For the past few years, we have watched the Community Environmental Legal Defense Fund (CELDF) and other “Keep It In the Ground” (KIITG) activists employ  bait-and-switch tactics  to try (unsuccessfully) to stop pipeline development and ban fracking. After epic failures across the state, fringe environmental activists have turned to launching  fake landowner coalitions  in a new attempt to mislead the public, with a prime example being the Tri-County Landowners Coalition. But these so-called “landowner” coalitions are nothing more than front groups for a small group of well-coordinated activists who have no interest in leasing or protecting royalty owner interests — but instead want to stop all oil and gas development in its tracks. And their overall goal is even more far-reaching than the oil and gas industry, as they have publicly stated they want to “ decide what industries come in here .” In response to these fake landown...

From Reuters: The U.S. Federal Energy Regulatory Commission on Tuesday authorized Energy Transfer Partners LP to recommence a horizontal drill under the Tuscarawas River in Ohio as the company works to complete its Rover natural gas pipeline by the end of the first quarter.  FERC said in a filing it allowed Rover to start drilling again after the company provided a revised drilling plan for the second pipe under the Tuscarawas River on Sunday and some analysis on Monday of residential water wells in the vicinity of the drill. Rover will monitor the quality of the water in the wells during and for a period of time after the drill.  FERC ordered Rover to cease drilling of the second pipe under the river on Jan. 24 and asked the company to evaluate alternatives to the drill after Rover lost some drilling fluid - a mixture of clay and water - in the hole. View the rest of the article by clicking here. Connect with us on Facebook and Twitter! Follow @EnergyNewsBlog

From the Akron Beacon Journal: The Green City Council voted 4-3 Wednesday to drop the city’s legal challenges and accept money, land and other conditions to allow the Nexus natural gas pipeline to travel through the city.  About 100 people attended a standing-room-only meeting — the third special meeting the council held to discuss the Nexus offer.  All but one of 19 residents who addressed the council spoke against the agreement that includes $7.5 million in cash, around-the-clock monitoring of the pipeline and 20 acres west of Boettler Park that the city can use to extend a trail from the park to Koons or Thursby roads.  Justin Leonti of East Nimisila Road said he wanted the council to continue the fight against the Nexus project. He scoffed at the money portion of the deal, saying Nexus would recoup the $7.5 million in 4½ hours of gas flowing through the Green portion of the line. Read more by clicking here. Connect with us on Facebook and Twitter! Follo...

From a press release: Utica Shale   During 2018, Gulfport plans to run on average approximately 2.5 operated horizontal rigs in the Utica Shale. Gulfport has budgeted to drill approximately 36 to 40 gross (26 to 29 net) horizontal Utica wells with an average lateral length of 11,200 feet. In addition, Gulfport plans to turn-to-sales 33 to 37 gross and net horizontal Utica wells with an average lateral length of 8,000 feet.  Gulfport intends to participate in non-operated activities taking place on its acreage by other operators that plan to drill approximately 7 to 8 horizontal wells and turn-to-sales 9 to 10 horizontal wells, in each case net to Gulfport’s interest. Read the whole release by clicking here. Connect with us on Facebook and Twitter! Follow @EnergyNewsBlog

From WKSU: An environmental group and an oil and gas industry lobbying group are both praising a bill that passed the Ohio House that would streamline the process of capping some 600 old, unused wells that don’t have owners. Statehouse correspondent Karen Kasler reports they also want more money put toward that process.  The Ohio Environmental Council and the Ohio Oil and Gas Association say the bill will triple the money set aside for capping those so-called “orphan” wells . Tom Stewart with the Oil and Gas Association says that’s needed, noting $62 million in severance tax revenue was transferred out of the Ohio Department of Natural Resources in recent years.  “That includes paying for lawsuits unrelated to oil and gas development and budget transfers to other funds. The budget director said that severance tax should be used to pay for issues such as Medicaid.” Click here to read more, or to listen to this report. Connect with us on Facebook and Twitter! Foll...

From a press release: The Company has established an initial capital budget for 2018 of between $300 - $320 million, allocated approximately 84% for drilling and completions activities, 8% for midstream activities, 6% for land activities and 2% for other capital requirements. This budget incorporates the Company’s drilling joint venture with Sequel Energy, in which the Company made a pre-carry working interest election of 50% in the first 16 well program and a pre-carry working interest election of 30% in the second 17 well program. The initial capital budget assumes the drilling of 17 net (33 gross) horizontal Utica Shale wells and the completion of 18 net (35 gross) horizontal Utica Shale wells, including the drilling and completion of 1 net (1.0 gross) Flat Castle area well. The wells to be drilled in 2018 are expected to average over 16,800 feet in lateral length. Read the whole release by clicking here. Connect with us on Facebook and Twitter! Follow @EnergyNewsBlog

From a press release: Blue Ridge Mountain Resources, Inc. (“BRMR”) announced today it has entered into a definitive Purchase and Sale Agreement (“PSA”) with an undisclosed buyer (“Buyer”) pursuant to which Buyer will acquire from BRMR a 40% non-operated working interest in approximately 21,000 net undeveloped leasehold acres within the Utica and Marcellus shale formations located in Monroe and Washington Counties, Ohio.  The total sales price is $56 million, subject to customary closing adjustments.  At closing, approximately 22% of the unadjusted total sales price will be placed into escrow to be released on an on-going basis to BRMR as BRMR renews, replaces, or extends certain term leases in 2018 or brings such term leases to their secondary term through development and production activities.  The total sales price represents a value of approximately $7,500 per net leasehold acre for leases in their secondary term and approximately $6,000 per net leasehold acre for l...

From the Energy and Environmental Law Blog: On January 30, 2018, the Supreme Court of Ohio rejected a constitutional challenge to a statutory unitization order issued by the Ohio Department of Natural Resources, Division of Oil and Gas Resources Management. In State ex rel. Kerns v. Simmers , the Division issued an order under Ohio’s unitization statute, R.C. 1509.28, that consolidated the relators-landowners’ lands with other lands into a unit for oil and gas development. The landowners unsuccessfully challenged the issuance of the order before the Ohio Oil and Gas Commission. Afterwards, they commenced a mandamus action before the Supreme Court of Ohio, alleging that the Division’s order resulted in an unconstitutional taking of their property and asked the Court to require the Division to commence appropriations proceedings.  In its decision, the Court denied the landowners’ mandamus request on procedural grounds, concluding that the landowners were not entitled to the wri...

From Reuters: Energy Transfer Partners said it was “frustrated” by an order by U.S. federal energy regulators to stop drilling under the Tuscarawas River in Ohio as the company works to complete the Rover natural gas pipeline by the end of the first quarter:  * “Rover is frustrated by the inaccurate central premise underlying the letter received from the Federal Energy Regulatory Commission (FERC) ... directing operations to cease at the Tuscarawas River,” ETP said in a filing made available on Monday  * ETP wants FERC to allow the company to continue drilling the second hole under the river as per the pre-approved plan  * “Rover and the capacity it represents are badly needed,” ETP said about its $4.2 billion project designed to carry up to 3.25 billion cubic feet per day of gas from the Marcellus and Utica shale fields in Pennsylvania, Ohio and West Virginia to the U.S. Midwest and Ontario in Canada And further from another Reuters article: Energy Transfer Pa...

New permits issued last week:   6   (Previous week:  10 )  -4 Total horizontal permits issued:  2754   (Previous week:  2748 )  +6 Total horizontal wells drilled:  2254   (Previous week:  2246 )  +8 Total horizontal wells producing:  1806  (Previous week:  1801 )  +5 Utica rig count:  23  (Previous week:  21 )   +2 Connect with us on Facebook and Twitter! Follow @EnergyNewsBlog

Connect with us on Facebook and Twitter! Follow @EnergyNewsBlog

From CNBC: Chesapeake Energy  has announced it will lay off hundreds of employees as the debt-burdened natural gas driller continues to overhaul its business.   In a letter to employees, Chesapeake said it will let go about 13 percent of its workforce, which stood at 3,247 people as of September. A company spokesperson confirmed the Oklahoma City-based company would trim back about 400 positions.  The layoffs will occur primarily at Chesapeake's Oklahoma City campus.   BREAKING: Here's the layoff letter sent to employees at @Chesapeake . 13% = about 400 employees. pic.twitter.com/tLzh3XBOeu — Grant Hermes News 9 (@GrantHermesKWTV) January 30, 2018 Click here to view the whole article. Connect with us on Facebook and Twitter! Follow @EnergyNewsBlog

From WTOV9: First responders were on the scene of a pipeline explosion and fire in Noble County early Wednesday morning.  Officials say the incident happened around 2:30 a.m. about 3 miles north of Summerfield along State Route 513.  The pipeline has been identified as Seneca Lateral and operated by Tallgrass Energy, although officials say there are multiple pipelines in the same footprint and several facilities in the area. The explosion awoke a number of local residents, many of whom say the night sky was lit up like daytime. Click here to view the whole article. Connect with us on Facebook and Twitter! Follow @EnergyNewsBlog

by Jackie Stewart, Energy in Depth PTT Global Chemical America LLC (PTTGCA) announced today in a  press release  that it is teaming up with South Korean construction and chemical company Daelim Chemical USA, LLC, on its proposed $6 billion world-class petrochemical complex in Belmont County, Ohio. The company also announced that it will make its final investment decision on the cracker facility “by the end of 2018.”  This comes after PTTGCA  announced  last month that additional news would be forthcoming, which initially garnered headlines citing only  “delays”  of the project, today’s announcement is a signal that  Ohio is “all in”  to secure this multi-billion project, which would create  thousands of jobs . EID has been tracking the timeline of the PTTGCA decision compared to the Shell Chemical Appalachia timeline, and as you can see, it’s clear that the PTTGCA timeline is strikingly similar. According to the  Pittsburgh...

From Reuters : U.S. crude oil production topped 10 million barrels per day (bpd) in November, according to monthly estimates published by the Energy Information Administration on Wednesday. Crude output was the highest in 47 years and just 6,000 bpd below the record set in November 1970 (“Petroleum Supply Monthly”, EIA, Jan. 31).  Production has doubled over the last 10 years, from a low of around 5 million bpd in 2007, reversing decades of decline since the 1970s.  The most recent surge in output confounded some observers, who had forecast production was about to level off, though the EIA had predicted it for some time. Even as production increases, though, there are concerns about the profitability of shale drilling.  Another article from Reuters : U.S. shale producers are facing rising costs for everything from drilling rigs to pressure pumping equipment and labour as the cyclical expansion in oil prices and drilling matures.  The cost of drilling oil a...