Plans by Moundsville Power LLC to build a natural gas power plant were approved by members of the Marshall County Commission on April 22, 2014. The proposed 549 megawatt natural gas power plant is considered the first “downstream” project of its kind in West Virginia, is expected to use more than $100 million worth of natural gas per year, and will replace recently closed and retiring power plants in the area. As planned, the plant will generate power 24 hours a day and enough electricity to power approximately 549,000 homes. Current plans for construction are expected to begin in 2015 to bring the plant online in 2018, with the estimated cost of the plant to be $615 million. The project still requires state and federal approvals prior to development.
TransCanada Corporation’s ANR Pipeline system has secured nearly 2.0 billion cubic feet per day of natural gas transportation commitments for the movement of oil and gas produced from the Utica and Marcellus formations through its Southeast Main Line. These contracts involve transporting natural gas to points both north and south within ANR’s system, as well as increasing their flow capability to the Gulf Coast. ANR is one of the few existing pipeline systems with access to both the Upper Midwest and the Gulf Coast, and they are exploring further opportunities to transport gas produced from the Utica Shale to these areas.
The Pittsburgh Business Times reports that Allegheny County has reached a deal with Range Resources and Huntley & Huntley as to leasing the oil and gas under Deer Lakes Park in Allegheny County, Pennsylvania. Allegheny County Executive Rich Fitzgerald announced the county will receive $4.7 million in bonus payments, $3 million for the Park Improvement Fund, and a 18% royalty. He also announced that operations in Deer Lake Park are prohibited by the terms of the lease. The deal must be approved by Allegheny County Council.
The West Virginia University College of Law is now offering a Master of Laws in Energy and Sustainable Development Law set to begin during the Fall Semester 2014. With the addition of the one-year LL.M. program, the College of Law is focusing on West Virginia’s important role in the development of the Marcellus shale and supplementing the existing WVU Law Center for Energy & Sustainable Development as well as the National Energy & Sustainability Moot Court Competition, which occurs this year on March 27, 28 and 29 in Morgantown. The College of Law recognizes that “[e]nergy is the foundation of our nation’s future, both economically and environmentally. West Virginia is as the center of energy production in the country.” The LL.M. curriculum includes a variety of energy related courses including Oil and Gas Law, Energy Regulation, Markets and Environment, Land Use and Sustainable Development, Natural Resources Law and Environmental Protection Law, among others, and is designed to prepare attorneys to work on a broad spectrum of energy related issues. Review of applications began on March 1 but the LL.M. Program maintains a rolling admissions process.
On January 13th, the Pennsylvania Senate Appropriations Committee voted in favor of a senate bill that encourages oil and gas operators to re-use mine-influenced water for hydraulic fracturing. Senator Kasunic (D-Fayette/Somerset) re-introduced the bill, known as Senate Bill 411 (previously Senate Bill 1346 of last session). The bill is set to move to the full Senate floor for a vote in the near future.
The New York State Energy Planning Board released its Draft 2014 State Energy Plan on January 7, 2014. Although one of the draft plan’s key initiatives includes expanding access to natural gas as an alternative to petroleum products for heating and power generation, the Energy Planning Board does not take a position on whether the State should allow Marcellus Shale drilling. The Energy Planning Board notes in the draft plan that, although “both horizontal drilling and hydraulic fracturing are not new to natural gas development in New York, Marcellus Shale drilling using these techniques is on hold pending additional review.” According to the Energy Planning Board, natural gas production in other states currently satisfies 97 percent of New York’s demand, with a growing proportion of that supply coming from the Marcellus and other shale plays.
The Energy Planning Board predicts that New York’s natural gas production will continue to decrease significantly unless the State’s Marcellus Shale reserves are developed. Regardless of New York’s decision on whether to lift its five-year moratorium on hydraulic fracturing, the Energy Planning Board concluded that sufficient natural gas supplies should be available from other states to meet future demand, as long as interstate pipeline capacity exists to serve New York. The Energy Planning Board intends to hold public hearings in several cities and is currently accepting public comments in writing or electronically at energyplan.ny.gov.
The Pittsburgh Business Times reports that CONSOL Energy Inc. will use electric engines when it drills at the Pittsburgh International Airport. On Tuesday December 17, the Findlay Township Planning Commission gave an affirmative recommendation to approve four well pad sites and two impoundments. The public hearing before the Township Board of Supervisors may occur in January 2014, and drilling may commence by the end of 2014.
The Pittsburgh Business Times reported yesterday that Rice Energy Inc. is planning for an initial public offering sometime during the first quarter of 2014. Rice confirmed that it filed a Form S-1 with the Securities and Exchange Commission. Pipeline reports that Rice’s registration statement will be made public in a few weeks. The Business Times further reports that Alpha Natural Resources will be selling its 50 percent stake in a joint venture, Alpha shale Resources, to Rice for $300 million. A portion of the payment for that transaction will include stock from the upcoming IPO.
The U.S. House of Representatives passed a bill prohibiting the Interior Department from enforcing regulations on hydraulic fracturing in any state that already has regulations in place. The bill recognizes the states’ authority to regulate hydraulic fracturing within their borders and was passed in reaction to recent federal regulations that have been proposed to regulate hydraulic fracturing. The House bill would not prevent the federal government from implementing baseline standards in states where none exist. However, under the legislation federal regulations would not be permitted to supersede the applicable states’ laws.
As reported by The Intelligencer, MarkWest Energy and Kinder Morgan Inc. are planning to convert 1,000 miles of pipeline connecting Pennsylvania and Louisiana to allow Marcellus and Utica Shale gas to be transported to the Gulf Coast. The project is estimated to have an initial capacity to ship 150,000 barrels of natural gas liquids per day, with potential expansion to 400,000 barrels per day. The conversion is expected to be complete by 2016.
The United States Coast Guard is accepting public comments on a proposal that would allow wastewater from hydraulic fracturing to be transported on barges using the Ohio River. According to the Coast Guard there is commercial interest in transporting shale gas extraction wastewater from northern Appalachia to storage and reprocessing centers in Ohio, Texas and Louisiana via inland waterways, rather than by truck or rail service.
Workforce West Virginia Investment Council has released findings that cite a 20 percent jump in oil and gas industry employment last year, the West Virginia Gazette reports. During the same period, the average wage for workers in the industry has also risen by nearly $5,500. The rise in employment is focused in the regions where Marcellus Shale activity is the highest, and the growth can be seen in ancillary industries as well. Particularly, the pipeline and storage tank construction sector has experienced significant growth corresponding to the oil and gas industry.
Devon Energy Corporation, Crosstex Energy, Inc. and Crosstex Energy, L.P. announced that they have entered into a definitive agreement to combine midstream assets, including gathering and transportation pipelines, gas processing, fractionation and logistics assets, the Pittsburgh Business Times reports. The transaction, which is scheduled to close in the first quarter of 2014, includes assets in many of North America’s largest oil and gas regions, including the Utica and Marcellus. The combination will lead to the formation of a new company, the name of which will be announced prior to the closing of the transaction. Devon, with a strong upstream portfolio, is expected to be the new company’s largest customer.
The Marcellus Shale Coalition announced today that David Spigelmyer has been named as the organization’s new president. Mr. Spigelmyer will assume the position effective Monday. The Wall Street Journal reports that Mr. Spigelmyer is a former Chesapeake Energy executive and Marcellus Shale Coalition chairman. He succeeds Kathryn Klaber, who helmed the Marcellus Shale Coalition from 2009 until last Friday.
The Marcellus Shale Coalition (MSC) announced that it has updated its recommended practices to include the Drilling and Completions phases of natural gas exploration. These recommendations cover a wide range of topics with regard to bringing a well into production, including regulatory planning and well flowback. The MSC had previously released seven additional sets of guidelines that cover site planning, motor vehicles, water pipelines, and more. The addition of the Drilling and Completions documents will help exploration and production companies in the region carry out their business in a safe, responsible manner, according the MSC.