Drilling and Development

i20080516125101_72Gov. Corbett Stays Positive About Cracker Plant in Beaver County

Beaver County, noted for its access to rivers, rails and highways make it the perfect location for Shell’s multibillion-dollar proposed ethane Cracker Plant*.

Gov. Corbett made mention of it twice during his budget address.

Although Shell still hasn’t decided whether to make the investment in the facility, Gov. Corbett stays positive that the site would be built at the soon-to-be-closed Horsehead Holding Corporation’s zinc factory. Horsehead has to vacate the site by April 30, 2014.

Corbett told lawmakers it would mean thousands of jobs “when we succeed in attracting the new petrochemical plant and the hundreds of new businesses that will spring up around it.” Once operational, the plant alone will employ several hundred full time employees. The site will be Shell’s fifth domestic cracker plant. Experts say that cracker plant facilities tend to multiply once one is built. That is certainly the hope to increase continued job growth in Pennsylvania.

Corbett said a bipartisan effort has helped Pennsylvania save refineries in eastern Pennsylvania and secure the cracker plant. The state’s proposed 1.65 billion incentive package was crucial in Pennsylvania’s efforts to win the cracker plant instead of Ohio or West Virginia.

If all goes well, construction on the plant is thought to be less than two years away.

“PAOG Report editors have noticed that while Shell still hasn’t formerly committed to Beaver County for the site of the cracker plant, Governor Corbett appears to remain very optimistic, which may be a good sign that the cracker will indeed come to Beaver County. PAOG Report editors’ own discussions with landowners lead us to believe that the cracker plant will be welcomed by western PA residents, and losing the cracker plant to another state would be a big disappointment. Share your thoughts on the cracker plant by posting a comment here!”

*Cracking refers to a process that allows the production of “light” products such a liquified petroleum gas (know as LPG)  and gasoline from heavier crude oil such as gas oils and residues. Fluid catalytic cracking produces a high yield of gasoline and LPG, while hydrocracking is a major source of jet fuel, diesel, naphtha and LPG.

 

 

EQT Acquiring Additional Marcellus Acres

Posted by on May 8, 2013 in Drilling & Development | Comments Off on EQT Acquiring Additional Marcellus Acres

EQT Acquiring Additional Marcellus Acres

EQT Corporation has agreed to purchase 99,000 net acres in southwestern Pennsylvania and 10 horizontal Marcellus wells in Washington County, Pa., from Chesapeake Energy Corporation and its partners. The $113 million transaction remains subject to closing conditions. The acreage includes 67,000 Marcellus acres and 32,000 dry Utica acres.  $60 million is allocated to the undeveloped acreage, while the rest is for the existing Marcellus wells in the area. The acquisition is expected to close on May 30. It will include approximately 25,000 acres...

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PA Supreme Court Reaffirms Property Rights

Posted by on May 6, 2013 in Home, Legal News, Top News | Comments Off on PA Supreme Court Reaffirms Property Rights

PA Supreme Court Reaffirms Property Rights

Marcellus Shale Formation is not a “mineral”… In a unanimous opinion by Justice Baer issued April 24, 2013, the Pennsylvania Supreme Court reaffirmed the Dunham Rule, holding that a reservation of minerals in a deed does not reserve the gas in unconventional formations, such as the Marcellus Shale. The Pennsylvania Supreme Court reaffirmed the state’s 131-year history of the mineral rights law, ruling in favor of a Susquehanna County couple that had filed suit over the rights to the Marcellus Shale gas under their property....

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Seismic Surveys To Start in Dunbar Twp, Fayette County in Autumn

Posted by on Mar 21, 2013 in Drilling & Development | Comments Off on Seismic Surveys To Start in Dunbar Twp, Fayette County in Autumn

Seismic Surveys To Start in Dunbar Twp, Fayette County in Autumn

Seismic surveys will begin in autumn in Dunbar Township, Fayette County in order  to determine the best locations for Marcellus shale gas drilling operations. Dunbar Township supervisors told residents that testing will begin in October to allow Chevron to select drilling sites. McDonald Land Services will send letters to property owners that agreed to the surveys, notifying them of the procedures. The survey will take place in six phases in mid-October until the survey is complete, according to a letter from McDonald Land Services. Activity...

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Marcellus Drilling Cleaning Up Abandoned Mine Drainage

Posted by on Mar 15, 2013 in Home, Legal News, Top News | Comments Off on Marcellus Drilling Cleaning Up Abandoned Mine Drainage

Marcellus Drilling Cleaning Up Abandoned Mine Drainage

Abandoned mine drainage is destroying the environment everyday! Marcellus drilling may be able to change that… More than 4,000 miles of streams polluted by abandoned coalmine drainage flow through Pennsylvania’s forests, killing all aquatic and invertebrate life. And it would take an estimated $15 billion to clean up these dead streams. Some environmentalists and at least one Marcellus driller have decided there’s an opportunity here to kill two birds with one stone. Using the abandoned mine drainage to hydro-frack wells, they say, could...

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Marcellus Resources Pipeline to Gulf Coast

Posted by on Mar 14, 2013 in Top News | Comments Off on Marcellus Resources Pipeline to Gulf Coast

Marcellus Resources Pipeline to Gulf Coast

The volume of natural gas liquids in the Northeast is expected to exceed 1.2 million barrels per day by 2020. A pair of energy companies has announced a joint venture to transport natural gas liquids from the Marcellus regions to processing facilities in Texas and Louisiana. Boardwalk Pipeline Partners LP, and the energy infrastructure firm Williams plan to upgrade existing pathways and build a new “Bluegrass Pipeline”, which could transport up to 400,000 barrels of the natural gas liquids per day. The company said exact locations have not...

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What Is Act 13 (Impact Fee)?

Posted by on Mar 14, 2013 in Home, Marcellus Utica Shale | Comments Off on What Is Act 13 (Impact Fee)?

What Is Act 13 (Impact Fee)?

April 1, 2013: 2012 impact fees are due. Legislative leaders estimate the second fee payment will generate about $211 million. After years of deliberation on the issue, Pennsylvania legislators passed a bill overhauling the state’s natural gas drilling laws on February 8, 2012. Act 13 became law when Governor Corbett signed House Bill 1950 on Feb. 14, 2012. The Fee The legislation places an impact fee on every well drilling for gas in the Marcellus Shale formation. The levy will change from year to year based on natural gas prices and the...

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New Yorkers Await PA Health Study

Posted by on Mar 14, 2013 in Drilling & Development | Comments Off on New Yorkers Await PA Health Study

New Yorkers Await PA Health Study

Gov. Andrew Cuomo of New York  will wait for a Pennsylvania health study before deciding whether to allow drilling while landowners are preparing to sue New York over lost gas-leasing opportunities and an industry group warned Sunday that a business exodus from the state will worsen. Landowners hoping to lease to gas-drilling companies and earn royalties on gas production are preparing a lawsuit against the state because of the moratorium. The lawsuit will allege that the state has taken property rights in violation of the state and federal...

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Shale Drilling at Pgh International Airport

Posted by on Feb 13, 2013 in Drilling & Development, Home, Top News | Comments Off on Shale Drilling at Pgh International Airport

Shale Drilling at Pgh International Airport

Shale Drilling Date Becomes a Reality at Pittsburgh International Airport Consol Energy has agreed to pay an estimated $500 million over the next 20 years for shale drilling rights on the 900 plus acres surrounding the airport located in Moon Township.  This would include a bonus payment of $50 million and an estimated $450 million in anticipated royalties over the next 20 years. The FAA mandates that all gas proceeds be used towards improving the airport and its facilities. The next step is that the agreement will go before the County...

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Drilling heating up in Pennsylvania’s Utica Shale Region

Posted by on Jan 18, 2013 in Drilling & Development, Top News | Comments Off on Drilling heating up in Pennsylvania’s Utica Shale Region

Drilling heating up in Pennsylvania’s Utica Shale Region

Here at PAOGreport, we have been closely monitoring drilling and development in Pennsylvania’s frontier of the “Utica Shale” region. Public records and folks on the ground report that there are up to six companies that are drilling exploratory wells in Pennsylvania’s “Northern Utica Shale Sweetspot”, in the search for natural gas, natural gas liquids and of course, oil. Chevron, Hilcorp Energy, Halcon Energy, Range Resources, Seneca Resources, and Shell Appalachia have all filed permits to begin drilling...

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Infrastructure Update 1.9.2013

Posted by on Jan 10, 2013 in Drilling & Development, Top News | Comments Off on Infrastructure Update 1.9.2013

Infrastructure Update 1.9.2013

Here at PAOGR we have received many reports from landowners concerning pipeline and infrastructure development in their area. Washington, Greene, Beaver, Lawrence and now Mercer Counties appear to be the leading hotbeds of activity. For drillers and royalty owners alike to be able to make money from oil and gas development, pipeline and processing must be built to get oil and gas products to market and sold. MarkWest and NiSource appear to be the leaders in developing pipeline routes and processing facilities in Western Pennsylvania. We have...

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