Marcellus Briefs

March 31, 2015

Cabot cutting rigs in the Marcellus

Cabot Oil & Gas Corp. executives said they would cut two of the company’s five rigs drilling in the Marcellus shale this year. The rig count will be cut by midyear, and the company plans to drill 70 wells and put at least 65 wells on stream this year.

Low commodity prices prompted Cabot to take what it describes as "a more measured approach" to production this year in the Marcellus.

Cabot Chief Executive Officer Dan O. Dinges said he will focus on "maximizing price realizations and returns while at the same time managing growth." His comment came during a fourth-quarter and full-year earnings conference call in February.

Pennsylvania Department of Environmental Protection statistics showed Cabot produced 1.5 MMcfd of gas during the second half of 2014.

Enterprise ethane line burns in West Virginia

An ethane pipeline owned by Enterprise Products LP ruptured and ignited in a remote area of Brooke County, W. Va., earlier this year.

Cause of the Jan. 26 explosion was under investigation, said Enterprise Products spokesman Rick Rainey.

The Appalachia-to-Texas Express ethane line started operating during 2014. It originates in Pennsylvania and brings ethane from the Marcellus and Utica shale plays to be stored in Mont Belvieu, Tex.

No one was injured during the incident, said Enterprise Products, which isolated and shut off the affected portion of the line.

Laurel Mountain Energy formed in Pittsburgh

Laurel Mountain LLC, an independent in Pittsburgh, was formed to acquire and develop oil and gas properties across the Appalachian basin, focusing on the Marcellus, Upper Devonian, and Utica formations in western Pennsylvania.

Clark Nicklas is chief executive officer and David Nicklas is president. The father-son team previously worked together at Vista Resources, an independent founded by Clark Nicklas in 1987.

The Laurel Mountain management team received financial support from TPH Partners, a private equity funds manager in Houston that is the private equity division of Tudor, Pickering, Holt & Co. LLC, an energy investment bank.

GE finances Penn State gas innovation center

GE agreed to invest up to $10 million to establish an innovation center at Penn State University.

The Center for Collaborative Research on Intelligent Natural Gas Supply Systems at Penn State will involve researchers from various disciplines in collaborative projects with industry stakeholders.

The goal of the collaboration is to advance efficiency and environmental sustainability through technological innovations and improved supply chain management.

Penn State Pres. Eric Barron said, "The center will aim to produce tangible benefits to the natural gas industry as well as the communities impacted by that industry."

He said interdisciplinary collaboration "can potentially lead to a more seamless integration of the technologies into the natural gas infrastructure" and can acquaint Penn State students with industry professionals.

American Energy Partners names chief executive

American Energy Partners LP named Jeffrey A. Fisher as chief executive officer of American Energy Appalachia Holdings LLC (AEA), which was formed through the combination of American Energy Utica LLC and American Energy Marcellus LLC.

AEA has more than 300,000 net acres in the Utica and Marcellus shale plays in eastern Ohio and northern West Virginia.

Fisher previously was chief executive officer of American Energy Partners LP, which he joined in November 2013. Before that, he was Chesapeake Energy Corp. executive vice-president of production. Prior to joining Chesapeake, Fisher was asset manager for resource manager for BP PLC.

Michigan CC supports OK for Rover Pipeline

The Michigan Chamber of Commerce supports Energy Transfer Partners LP’s formal application to the Federal Energy Regulatory Commission seeking permission to build the proposed Rover Pipeline LLC natural gas system.

Rover is an interstate pipeline designed to transport gas from processing plants in the Marcellus and Utica shale areas to the US Midwest, Gulf Coast, and Northeast. It also would reach Canada. The system seeks permission to move 3.25 bcfd across 710 miles via 24-in., 30-in., 36-in., and 42-in. pipeline sections.

Jim Holcomb, Michigan Chamber of Commerce senior vice-president for business advocacy, said the chamber was "encouraged that the Rover Pipeline is one step closer to reality." Michigan is at a crossroads for its energy future, Holcomb said, adding that expanding the state’s infrastructure will help lower energy costs.

Pennsylvania considers revising well rules

Pennsylvania’s Department of Environmental Protection proposed changes to regulations governing oil and gas well sites.

The proposals aim to improve water resource protection, add public resource considerations, protect public safety, address landowner concerns, and enhance transparency by improving data management, DEP said.

The draft regulations include separate regulatory chapters to differentiate conventional and unconventional well development.

The proposals were scheduled to be opened for a 30-day public comment period starting Apr. 4.

"So the added production has to equal depletion if we are to stay even with no additional growth....I think we’ve seen the bottom" of low oil prices. "We could revisit that, but I think the question is not how low but rather how long."--Peter Robertson, Independant Senior Advisor Deloitte, former Chevron Corp. vice-chairman