Just got my EQT royalty check for the month. They SOLD my OIL for 23.48 a barrel????/ and my Gas for 2.28??????. Obviously selling to a company they own to SCREW the landowner.Then they had the guts to take 25% in deductions after the scam on the sales???  If anyone know of a Class Action Suit please post it here.

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Josie,

Thank you and happy to share.  The best of the best in terms of resource potential is the northern Marcellus without a doubt.  There are a couple of factors however that are negative in terms of that location.  

Firstly, there are several new pipes/expansions that will add incremental takeaway options to the northern Marcellus.  The first is Atlantic Sunrise (Transco pipeline) that will add 1.7 BCF of takeaway in late 2018. One half of the 1.7 bcf/day (850K) makes its way all the way to the gulf coast but unfortunately 850K does not and it stays in the NE where there seems to be ample supply that is often priced very cheap.  There is a potential for 2 other projects - Constitution and Penn East but both pipelines face major hurdles with regulators.  Constitution has been essentially blocked by NY State officials that are rogue and have one desire which is to see any pipeline effort fail.  NJ regulators are currently holding up the Penn East project but that one probably has a chance to make it eventually but will be 2020 in my opinion at the earliest.  NFG Northern Access (unknown date) and Nexus (late 2018) are also projects that could provide some additional takeaway options for producers, but these also run into the cheap Canadian supply from Montney Shale in western Canada.  Beyond these options the northern Marcellus really doesn't have a way to grow materially and looks to be in a maxed-out situation beyond 2020 time period.  

Great rock and very economic to develop but no real way to gain incremental market share.  The region is very complicated and truly hard to understand how it all plays out from a price perspective but the capability of the region to grow production is astounding.  It is a world class resource!!!  Arguably the best natural gas play in the world.

We are leased to Shell/Swepi and they recently completed building and drilling the largest well pad in our county. it turned into 3 production units: NW, NE and SW. Each unit is about 635 acres. The NW Unit has 2 wells, the NE Has 3 wells and the SW has 3 wells. The 5 wells Drilled northerly have bore lateral in excess of 9500 feet. This well pad size and the long laterals set records for size in the county. Holding our breath...production has yet to be reported and we are looking at perhaps Dec for the first. Swepi/Shell is premiere in our area.

Good to know you sir.

Josie,

That is great to hear and I am hopeful that you will soon see some very meaningful revenue.  I agree Shell is a great company to be leased with and they are certainly doing a fine job of exploiting the acreage you're in.  I'm curious if you know were the Shell wells Utica or Marcellus.  I'm thinking you must be in Tioga county correct?  Shell has test the Utica in that region sometime back but this could be some of their first full scale development efforts if these were indeed Utica wells.  The longer laterals and multi-well pads have really changed the economics for the producers but have also increased the production as well which contributes to the oversupply problem the region has historically been plagued with.  Too much of a good thing is a real problem.

Very happy to make your acquaintance and thanks for sharing the "on the ground" perspective.  I'm sure you saw the CHK news about their Rambo well.  These things are just monsters.

Mr Brown, There was no "reply" ability to your last reply so I am here.

Our wells are Marcellus. The Utica wells you mention are at the GEE wells and are about 5 miles NE of us as the crow flies. Swepi brought in another Utica Pad (Fuller) and just went in line with it...not has big as Gee but respectable. They are permitting another in the same area (Cruttenden) with 4 Utica. Swepi is very aggressive in drilling and permitting and doesn't seem to be to concerned about over production. 

Take care.

P.S. The forum in Tioga Co is almost dead.....people seem to have lost interest 

Chevron & People’s Natural Gas Team Up to Map Out PA’s $60B Future

 
 

One of the big announcements coming from Shale Insight 2017 on the first day was the release of a new study tag-team researched by Chevron Appalachia and People’s Natural Gas. As People’s CEO Morgan O’Brien explained it–everyone assumes “someone else” has a master plan, a statewide strategy for how to develop this phenomenal resource. But when you look around you come to the realization that no one has such a plan. So Chevron Appalachia CEO Stacey Olson approached People’s CEO O’Brien and asked for help to research and author a study that would provide such a plan–a plan to unlock what they believe is a $60 BILLION opportunity for Pennsylvania that will create 100,000 new jobs statewide. The result is a study called “Forge the Future: Pennsylvania’s Path To An Advanced, Energy-Enabled Economy” (full copy below), released yesterday. We now have, according to Chevron’s Olson and People’s O’Brien, the road map. What we need is for people in the industry to step up and seize the day and take action to create that amazing future…

A report released Wednesday by two of the region’s biggest natural gas companies lays out a strategy to help boost Pennsylvania’s economy, including a comprehensive plan to supercharge the burgeoning petrochemical industry.

Chevron Appalachia and Peoples Natural Gas commissioned the “Forge the Future” study, which was unveiled by Chevron Appalachia President Stacey Olson and Peoples CEO Morgan O’Brien during the first day of the Shale Insight conference in downtown Pittsburgh. The companies hope to start a private sector-led effort to get natural gas- and manufacturing-friendly policies to unlock what they called a potential $60 billion economic windfall and 100,000 more jobs over the course of the next 10 years.

“I think it paints an incredibly exciting picture of the region’s economic future and lays out simple and achievable strategies that should serve as a road map,” Olson said. “… That’s if and only if we can realize the full potential of a natural resource under our feet. And that’s not necessarily a given.”

“Forge the Future” includes three recommendations:

[1] Create energy-based industry clusters — around petrochemicals, advanced manufacturing and large data centers.

“These can be clustered together to catalyze growth,” Olson said.

That includes the creation of a petrochemical hub, along the lines of what the tri-state region is attempting, that will build a number of petrochemical plants in the region that would include three to five more ethane crackers beyond Shell’s $6 billion plant in Beaver County as well as facilities to make olefins, ammonia and other inorganic chemicals, as well as attracting manufacturers that make specialty products.

[2] Move forward quickly with pipeline projects to take natural gas from the Marcellus and Utica shales to market.

“Key pipelines are needed now,” Olson said. “A viable upstream sector is the key to unlocking the economic development of the downstream (manufacturing).”

[3] Increase the use of natural gas power and heating programs across Pennsylvania.

Peoples’ O’Brien asked the Shale Insight audience to help with the Forge the Future effort, and said that no one was taking the initiative right now at any level. He said that’s why Peoples was enthusiastic about “Forging the Future.”

“We want to be a part of … the excitement of what the future of the incredible resource we have and trying to connect the dots for people, and help them literally see the opportunity we have in front of us,” he said.

He said it was a nonpartisan effort and it didn’t matter what party was in charge.

“If we all work together, we’ll execute this,” O’Brien said. “This is the future of the state, and all of you can play a helpful part in that.”*

*Pittsburgh (PA) Business Times (Sep 27, 2017) – Chevron, Peoples launch effort to boost energy, manufacturing industry

 
 

Are there any pipelines better than Dominion South that EQT to get the gas out of Greene and Wetzel?

Those #s are horrible?

There are multiple pipelines that service that area and whether gas actually flows on any one in particular or a combination of pipes what happens in reality is that gas in a specific region trades off an index or combo of indexes.  For instance you may be a seller of gas off of Columbia or TETCO or Equitrans but the pricing that you receive could be Dom South or TETCO M2 related because those are the alternatives and those indexes offer the most liquidity and fair value for gas in that specific area.  It is quite complex and very difficult to sort it all out honestly.  Not that you or anyone couldn't understand it but more that you have to really look at exactly what location you have production located to determine the price that the market will pay.  In some cases a matter of simply having a better interconnect or building a few miles of pipe may offer a material uplift in price but that cannot always be said.  Once that infrastructure is in place things tend to equalize so that spread in pricing may disappear.  Producers are always evaluating these opportunities as no one is more motivated to get the best price than they are so they definitely do their homework on this stuff.  

I liken it to a growing city where you build the shopping, neighborhoods, schools and churches all before the roads widen.  Why does this happen?  Well you have to have the tax base to support the cost of the roads, bridges and infrastructure and that is the sad reality.  In time things will get better but it may take a lot longer than a year or two or even 5 to really happen.  The growth is not slowing it is ramping up so its just difficult for the infrastructure to catch up from what is in reality a runaway truck..........

(2) Clarksburg (WV) The State Journal (Sep 28, 2017) – Planner Pa. complex to bring jobs, manufacturing to Appalachia

From the WV State Journal:

A new petrochemical complex under construction by Shell Chemical Appalachia, LLC in western Pennsylvania aims to bring back manufacturing to the region.

Such was the subject kicking off the second and final day of the 2017 Shale Insight conference in Pittsburgh Thursday. The facility, being built over the grounds of an old smelter in Beaver County, is a planned an ethylene ‘cracker’ using gas from the Marcellus and Utica shale that will produce 1.6 million tonnes of polyethylene per year.

Todd Whittemore, global tech manager Shell Global Solutions, said the chemical reactions at this complex will transform a gas to a powder to solid polyethylene pellets which can then be sold to manufacture film, piping and even plastic bottles among other things. Two byproducts will be produced: methane which will be recycled to heat the facility’s furnaces and hydrogen which will also be sold.

While most polyethylene producing plants move their goods by rail, Whittemore said this one will also have loading silos for trucks to enable wider and cheaper distribution for clients. Extra access lanes near the site have are also a factor to allow more goods and personnel to move in and out.

Six thousand jobs, he said, will be created by this center in construction work while the plant will offer 600 permanent, family-sustaining jobs. However, for those 600 jobs inside the fence, three to four times that number of jobs is expected to be created outside in the form of manufacturing, transportation, support, etc.

David Ruppersberger, president of the Pittsburgh Regional Alliance, said the complex will be a more reliable and cheaper supply source than those along the Gulf Coast particularly in view of the recent hurricanes.

“Recent events in the Gulf Coast have highlighted how important it is to have an alternate source,” he said. “There are definitely advantages to being local.”

Ruppersberger said the ethylene cracker can also pave the way for several rings of downstream infrastructure development. Among these, he said, is the creation of underground storage facilities for liquid natural gas, something researchers from West Virginia University have been leading the way on.

Anne Blankenship, executive director of the West Virginia Oil and Natural Gas Association (WVONGO), opened the second the day of the conference. She noted that the ethylene cracker complex is a regional initiative and expects to pay for the Mountain State to come in the form of downstream development.

2017 marked the seventh Shale Insight convention. Blankenship said the gathering was a great chance for companies in West Virginia, Ohio and Pennsylvania to network, share technologies and learn from each other’s experiences.

“It’s an opportunity for us all to learn from each other’s stories, which are very similar,” she said.

Maribeth Anderson, president of WVONGA’s board of directors, reminded the industry representatives that there are still obstacles going forth in tapping the region’s shale wealth in the form of burdensome regulations by states and severance taxes. (2)

If your lease with Stone had no deductions, then EQT MUST honor the same language.   As long as it is really in the lease.  

Exactly. BUT EQT said they had two different opinions in their legal dept so they decided to go with the atty who would say deductions were allowed. BIG Surprise I know.

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