The Corporations

November 14, 2010

Some of the largest and most profitable corporations in the world continue to flock into Pennsylvania — emphasizing the folly of the Commonwealth being the only major gas drilling state without a severance tax or fee. 

Chevron is the latest behemoth to enter the Marcellus Shale field in Pennsylvania, following in the footsteps of Exxon-Mobil, Royal Dutch Shell, Halliburton, Chesapeake and Range Resources, among others. Chevron will purchase Atlas Energy and its Marcellus holdings for $3.2 billion plus another billion or so in assumed debt. Chevron will join Reliance Industries Ltd., India’s largest corporation, in a joint venture. 

While the Marcellus “play" may be all smiles for these corporate giants, the lack of a severance tax means further burdens for Pennsylvania’s taxpayers and property owners.

Halliburton is the world's second largest oilfield services corporation and one of the largest providers of fracking fluids.

I heard on the Radio yesterday that Chevron just purchased a Marcellus Shale Gas Company for 3+  Billion dollars.


A high-growth, low-cost leader in unconventional natural gas production, Encana is reshaping North America's energy portfolio by providing a clean, affordable, abundant resource for future generations. By helping to grow the North American economy, Encana helps build sustainable communities.  We have the land, the resources, the people, technology, culture and financial strength to win the changing natural gas game.  

Cabot Oil & Gas Corporation, headquartered in Houston, Texas, is a leading independent North American natural gas producer. The company’s reserves are focused in both conventional and unconventional basins in Appalachia, the Rocky Mountains, the Mid-Continent and the Gulf Coast.  

This are clips from the Cabot Annual Report

"In 2009, Cabot’s Marcellus program quadrupled in producing wells (increasing horizontal producing wells from one to 15), added over 20,000 acres to its focus Marcellus position and doubled its pipelineand compression capability."

2010 Initiatives:
In 2009 Cabot’s Marcellus program was in a research and development stage, testing ideas and working to understand spacing and optimal stimulation intervals. In 2010 this program will transition into a full development stage while continuing to explore new techniques to enhance efficiencies in timing, costs and performance. Changes in 2010 to contribute to these efficiencies include:

Increasing number of horizontal wells per pad to six, up from two per pad in 2009                                                                                                              Downspacing to 1,000' in 2010 from 2,000' in 2009
Drilling longer laterals with shorter stage spacing
Multiple back-to-back stimulations on same pad

The Company plans to more than double the number of horizontal Marcellus wells drilled in 2009, with 73 horizontal wells plus eight vertical wells currently planned for 2010. Even though lease bonuses have escalated in the last few months, Cabot continues to be competitive in acquiring leases. In 2010 the Company is committed to acquiring acreage to fill in its existing blocks and consolidating and growing its position in Susquehanna County.Cabot’s focus remains on this highly coveted area with some of the thickest sections of the Marcellus at over 400'. The Company’s existing portfolio of acreage in this area has over a 10 Tcf resource potential of high quality gas. Cabot is currently shooting 110 square miles of 3-D seismic survey and plans to expand the survey by 225 square miles during 2010. This new data will enhance the Company’s location selection process. Much of the leased property is not immediately adjacent to major natural gas pipelines, however, Cabot has done an excellent job of expanding infrastructure to handle the physical production and to connect individual wells to the major pipelines. The Company has laid 23 miles of pipe with an additional 30.5 miles anticipated to be completed in 2010. At year end 2009, capacity at Cabot’s Teel compression station was 110 Mmcf per day. An additional compression station with capacity of 165 Mmcf per day is scheduled to be completed by this summer. The Company has secured 275 Mmcf per day of firm take-away with anoption for an additional 100 Mmcf

East Resources is an independent exploration and development company with more than 1.25 million acres of land holdings. East Resources owns and operates more than 2,500 producing oil and gas wells in New York, Pennsylvania, West Virginia, and Colorado and is actively exploring drilling programs in Wyoming.

Newsworks has done a lot of research.

Anadarko Petroleum Corporation Anadarko is a Fortune 500 company active in drilling oil and gas from around the world, including Asia, Africa, Brazil, and the Marcellus shale in Pennsylvania. Anadarko holds a 25% non-operating interest in the Macondo well in the Gulf of Mexico that exploded this year, killing 11 people and leading to largest oil spill in American history. In May this year, Anadarko paid Pennsylvania $120 million to lease 32,000 acres of state forest for gas drilling.

Headquarters: The Woodlands, TX Employees (est.): 4300 Marcellus wells drilled in 2010: 60



Atlas Energy Atlas Energy drills and operates wells in the New Albany Shale in Indiana, the Antrim Shale in Michigan, the Chattanooga Shale in Tennessee, and controls mineral rights to 519,000 acres of Marcellus Shale. Recently Atlas entered into a joint venture with India-based Reliance Industries, to develop the Marcellus holdings. Earlier this year the Pennsylvania Department of Environmental Protection fined the company $85,000 for discharging waste and improperly building well facilities.

Headquarters: Moon Township, PA Employees: 872 Marcellus wells drilled in 2010: 24




Cabot Oil & Gas Corporation Cabot’s natural gas production is focused on Northeastern Pennsylvania, though the company also operates in Texas and Colorado. Cabot was fingered for a widely-publicized string of drinking water contaminations in Dimock, Pennsylvania that resulted in explosions and flammable tap water. The Pennsylvania Department of Environmental Protection forced the company to shut down production at several wells and provide clean water for residents. The company has said it is willing to cooperate with DEP’s orders, but insists that its operations were not responsible for methane seepage into residents’ water.

Headquarters: Houston, TX Employees: 567 Marcellus wells drilled in 2010: 23



Chesapeake Energy Chesapeake calls itself the second largest natural gas producer in the United States. According to the company, it paid $2 billion in royalties to 130,000 landowners who leased property to Chesapeake. Earlier this month, Pennsylvania's Department of Environmental Protection said bubbles of methane gas in the Susquehanna River were likely due to nearby drilling by Chesapeake.

Headquarters: Oklahoma City, OK Employees: 6850 Marcellus wells drilled in 2010: 93



Chief Oil and Gas Chief Oil and Gas is a private corporation that operates in the Appalachian basin, northern Texas and Central Utah. Earlier this summer a Chief gas well exploded in West Virginia and injured several workers. The company website says Chief is proud of its environmental record, but it has racked up some of the most violations from the Pennsylvania Department of Environmental Protection of any gas company this year. Chief is part of an industry group called the Appalachian Shale Water Conservation and Management Committee. Chief’s leasehold in the Marcellus is 560,000 acres.

Headquarters: Dallas, TX Marcellus wells drilled in 2010: 29



CNX Gas Corporation CNX is a publicly traded, Pittsburgh-based gas exploration and production company that merged in 2005 with CONSOL Energy Inc of Canonsburg. The merger was almost botched when a court ruled this May that it was unfair to minority stockholders. A monetary penalty was imposed but the merger went through. CNX claims to be the safest company in the exploration and production industry, but the Environmental Protection Agency plans to fine CNX $157,500 for violations of the Safe Drinking Water Act stemming from improper use and faulty reporting at an underground injection well facility for hydraulic fracturing (“fracking”) fluids in Greene County. The move also requires CNX to close down that disposal well.

Headquarters: Pittsburgh, PA Employees: 350 Marcellus wells drilled in 2010: 13



East Resources East Resources is one of a handful of operators in the Marcellus shale gas play that is based in Pennsylvania, though oil company Shell is purchasing the company for $4.7 billion. Earlier this year the Department of Agriculture quarantined cattle on a Pennsylvania farm where wastewater from an East Resources well leaked. An August report (pdf link) from the Pennsylvania Land Trust shows East Resources had the most environmental violations of any gas company this year.

Headquarters: Warrendale, PA Employees: 230 Marcellus wells drilled in 2010: 86



Energy Corporation of America ECA is a privately held Colorado oil and gas company that claims to operate a total of 5200 wells and 5000 miles of pipeline on one million acres of land. The company operates in Pennsylvania as Eastern American Energy Corporation. A Pennsylvania Department of Environmental Protection report on Marcellus drillers found more than 1400 violations from 2008 to June of 2010, but ECA landed close to the bottom of that list, with less than one violation per well. ECA operates facilities near the Whiteley Creek in Greene County, where the Environmental Protection Agency last year discovered golden algae. The find came after a massive fish kill caused by golden algae in the nearby Dunkard Creek made headlines. Range Resources also operates in the area.

Headquarters: Denver, CO Employees (Est.): 190 - 250 Marcellus wells drilled in 2010: 11



EOG Resources EOG --formerly Enron Oil and Gas -- ranks 40 in Fortune's top 100 companies to work for (Chesapeake Energy also made the list). Most of EOG's natural gas reserves are in the United States, but it also operates in China, Canada, UK and Trinidad. Environmental officials attributed EOG's lax safety adherence to a natural gas well blow-out in Clearfield County, Pennsylvania in July.

Headquarters: Houston, TX Employees: 2100 Marcellus wells drilled in 2010: 34



EQT Corporation Pittsburgh-based EQT, which was known as Equitable Resources until February 2009, holds 500,000 acres in the Marcellus Shale region. The company posts sample hydraulic fracturing recipes on its website.

Headquarters: Pittsburgh, PA Employees: 1,800 full-time Marcellus wells drilled in 2010: 27



Exco Resources Pa. Inc Exco is a publicly traded Texas oil and natural gas company formed in 1955 that operates in East and West Texas, North Louisiana and the Appalachian Basin region along the eastern United States. In May, Exco sold a 50 percent interest in 654,000 acres of Marcellus Shale leases in Pennsylvania and West Virginia for $950,000 to BG Group, a large natural gas company traded on the London Stock Exchange. In January Greenfield Township, Pennsylvania enforced a zoning violation on the first Marcellus Shale well in Lackawanna County – an Exco well. The township is forcing Exco to close the operation down, following a recent Pennsylvania Supreme Court decision that clarified municipal zoning rights with regard to gas drilling.

Headquarters: Dallas, TX Employees: 802 Marcellus wells drilled in 2010: 13



Pennsylvania General Energy PGE is a privately held company founded in 1978 in Warren, Pennsylvania that has focused on developing natural gas and oil in the Appalachian Basin. PGE claims to hold leases on 439,000 acres in the Marcellus Shale region of Pennsylvania and New York. Those include several Marcellus drill sites in the Allegheny National Forrest. News headlines for PGE include wracking up 45 violations on 18 Marcellus wells since 2008, and teaming up with Exxon Mobile for its Marcellus operations.

Headquarters: Warren, PA Employees: About 100 Marcellus wells drilled in 2010: 18



Range Resources Range is a public company that extracts oil and natural gas in the southwestern United States and in the Marcellus shale. The firm considers itself the discoverer of the Marcellus natural gas resource, first tapping the shale in 2004. Range has led the effort to lift the proprietary veil off hydrofracturing chemicals, though many still criticize the industry for not being forthcoming. Eighty-one percent of its capital budget is directed toward drilling in the Marcellus shale.

Headquarters: Fort Worth, TX Employees: 787 full time Marcellus wells drilled in 2010: 100



Rex Energy Operating Corporation Rex is a publicly traded oil and gas company working in the Appalachian region of the east coast as well as in Illinois, Colorado and Wyoming. The company reports 170,000 total acres of leased land and revenues of $68 million. On August 31 Rex announced a joint venture deal with Sumitomo Corporation of Japan that will garner about $138 million for 12,900 acres of Marcellus leases in Pennsylvania. The company expects the move to take care of its $65 million debt and then some. Rex made headlines July 2009 when several landowners in Westmoreland County, near Pittsburgh, alleged the company used landmen to secure lease agreements with landowners to boost the company’s apparent value, but then refused to pay on those leases. In March of this year the Pennsylvania Department of Environmental Protection shut down two of Rex’s operations and fined the company $45,000 for building a well pad too close to a wetland, and for constructing a hydraulic fracturing (“fracking”) fluid impoundment incorrectly.

Headquarters: State College, PA Employees: 163 Marcellus wells drilled in 2010: 16



Seneca Resources Corporation Seneca Resources, a subsidiary of National Fuel Gas Company, produces natural gas from around the United States, including 2,500 wells in Pennsylvania and New York. National Fuel, which is headquartered in Amherst, New York, is investing hundreds of millions of dollars in the Marcellus shale, partly through a joint venture with EOG. The company controls 750,000 acres in the Marcellus shale.

Headquarters: Houston, TX Employees: 147 Marcellus wells drilled in 2010: 28



Snyder Brothers Based in Kittanning, Pennsylvania, Snyder Brothers is a privately-funded exploration and production company focused on natural gas drilling in the state. The company was part of the minority of firms that reported production data on time (.txt link) this year to the Pennsylvania Department of Environmental Protection.

Headquarters: Kittaning, PA Employees (est): 45 Marcellus wells drilled in 2010: 13



Southwestern Energy Production Company Southwestern is a publicly traded natural gas company with offices in Arkansas and Texas. It holds 888,000 acres in the Fayetteville Shale area of Arkansas and claims responsibility for pioneering that gas play. In addition the company claims to hold 115,000 acres in the Northeastern Pennsylvania Marcellus. Thirteen families in Lenox Township sued Southwestern in Susquehanna County Court, September 14, claiming the company well ruined their drinking water and made them sick. The Pennsylvania Department of Environmental Protection hit Southwestern with four violations on the site, for things like erosion problems and problems with a waste pit, according a Scranton Times-Tribune article.

Headquarters: Houston, TX Employees: 1702 Marcellus wells drilled in 2010: 12



Talisman Energy Talisman operates oil and gas production world-wide and is headquartered in Calgary, Alberta, Canada. The company has spent $3 billion since 2009 developing its gas business in the Marcellus, Montney and Lorraine/Utica shales. In August the Pennsylvania Department of Environmental Protection fined Talisman $15,000 for spilling hydraulic fracturing (“fracking”) fluids.

Headquarters: Calgary, Alberta, Canada Employees: 2800 Marcellus wells drilled in 2010: 181



Ultra Petroleum Ultra controls 320,000 acres of land across North Central Pennsylvania, in addition to its other operations in Southwest Wyoming. This year the company invested $170 million in facilities in Pennsylvania and $400 million in land acquisitions in the state.

Headquarters: Houston, TX Employees: 94 Marcellus wells drilled in 2010: 21



XTO Energy Exxon Mobile recently purchased XTO Energy for $41 billion. According to the Pennsylvania Land Trust Association XTO is ranked 15 (pdf link) for Marcellus shale gas drillers with the most violations from the Pennsylvania Department of Environmental Protection. This month XTO voluntary abandoned gas drilling near Glacier National Park in Montana to preserve the pristine landscape.

Headquarters: Fort Worth, TX Employees: 3300 Marcellus wells drilled in 2010: 11           This company manufactures some of the hardware used in Natural Gas Hydrofracturing                                                                   This Advertisement site is of the opinion that gas drilling is a good thing.                                              BP will close it’s US Safety program for concerned employees.  (Nice Touch).  
Arctic ice is melting so soon it will be  time to fight over the land and then drill for more Oil and Gas   It is clear that we must somehow decrease demand.

2010 Wells Drilled by Operator as of 11/01/2010

Operator Non Marcellus Marcellus Total
A & S Prod Inc 10   10
Abarta Oil & Gas Co Inc 20 20
Airdale Oil & Gas Llc 12 12
Alcove Investments 1 1
Allegheny Enterprises Inc 25 25
Allegheny Natural Resources Inc 5 5
Alta Opr Co Llc   3 3
Alvin L Cochran Dba A C Oil 1 1
Anadarko E&P Co Lp   74 74
Andrea & Holden Oil Co 4 4
Antero Resources Apalachian Corp   2 2
Ardent Resources Inc 22 22
Arg Resources Inc 31 31
Armac Resources 6 6
Armstrong Gas Co Llc 5 5
Arrington Natural Resources Llc 1 1
Atlas Resources Llc   32 32
B & B Resources 4 4
Baker Gas Inc 2 2
Baron Group Inc 1 1
Beatty Robert H Jr 1 1
Benson Energy Llc 4 4
Bf Adventures Llc 5 5
Bittinger Drilling L A Bittinger Dba 1 1
Blx Inc 7 4 11
Branch John D 5 5
Burnett Oil Co Inc   2 2
C & D Gas Co 3 3
Cabot Oil & Gas Corp   39 39
Carrizo (Marcellus) Llc   1 1
Catalyst Energy Inc 56 56
Chesapeake Appalachia Llc   131 131
Chestnut Oil Llc 3 3
Chief Oil & Gas Llc   38 38
Citrus Energy Corp   1 1
Cnx Gas Co Llc 1 16 17
Coal Gas Recovery Lp 4 4
Cobra Resources Llc 3 3
Consol Gas Co 2 13 15
Cougar Energy Inc 5 5
Curtis & Son Oil Inc 3 3
Curtis Oil Inc 1 1
D & S Energy Corp 2 2
Dallas Energy Llc 3 3
Daniel P Hornburg 1 1
Dannic Energy Corp 10 10
David E Mealy 1 1
David L Hill 1 1
De Ltd Family Partnership 1 2 3
Devonian Resources Inc 12 12
Dominion Exploration & Prod Inc 50 50
Dorso Lp 8 1 9
Duhring Resource Co 27 27
East Resources Inc   104 104
East Resources Mgt Llc   38 38
Eastern Amer Energy Corp   3 3
Encana Oil & Gas Usa Inc   2 2
Energy Corp Of Amer   15 15
Energy Resources Of Amer Inc 1 1
Enervest Opr Llc 19 1 20
Eog Resources Inc   47 47
Eqt Production Co   27 27
Eqt Production Llc   4 4
Exco Resources Pa Inc   23 23
Exley Oil & Gas Corp 3 3
Exotic Oil & Gas Llc 3 3
Fairman Corp 1 1
Farrington & Hepler Gas & Oil Inc 4 4
Fortress Energy Corp 2 2
Fortuna Energy Inc   6 6
Frederick Drilling Co & Sons Inc 1 1
G & G Gas Inc 2 2
Gary Lee Northime 1 1
Gas & Oil Mgmt Assn Inc 9 9
Gastar Expl Usa Inc 1 1
Glenn D Gavin & John R Gavin Iii 2 2
Great Oak Energy Inc   1 1
H & S Gas & Oil 1 1
Hanley & Bird Inc 2 2
Hess Corp   2 2
Highhouse James R 2 2
Highpointe Oil & Gas Llc 3 3
Homeland Energy Ventures Llc 43 43
Howard Drilling Inc 32 32
Idc Energy Corp 1 1
Imod Oil Prod Llc 9 9
Indian Hill Gas Co Inc 1 1
Interstate Gas Mkt Inc 9 9
Intrepid Expl Llc 1 1
James E Mead Mead Oil Co 2 2
Jesmar Energy Inc 1 1
Jj Bucher Producing Corp 1 1
Juart Exploration Inc 2 2
Kahle Barbara A & David A 1 1
Kastle Resources Enterprises Inc 15 15
Kcs Energy Inc 5 5
Khrm Llc 1 1
Kis Oil & Gas Inc 4 4
Kriebel Minerals Inc 55 1 56
L & H Energy Co Inc 1 1
Lindell & Maney Llc 7 7
Maple Grove Enterprises Inc 6 6
Marathon Oil Co   1 1
Marco Drilling Inc 2 2
Mark A & Michael J Midlik 1 1
Mds Energy Ltd 18 2 20
Mealy D Scott 1 1
Msl Oil & Gas Corp 14 14
Mtn V Oil & Gas Inc 6 6
Natural Energy Dev Corp 2 2
New Era Petro Llc 1 1
Novus Operating Llc   4 4
O & R Drilling & Expl Inc 1 1
Oesterlings Sandblasting & Painting Inc 1 1
Oil & Gas Mgmt Inc 3 3
Open Flow Gas Supply Corp 4 4
Oz Gas Ltd 2 2
Pa Gen Energy Co Llc 35 24 59
Patricia A & Robert S Emhoff 1 1
Penn View Exploration Corp 10 10
Penneco Oil Co Inc 46 46
Peoples Natural Gas Co Llc 1 1
Phillips Exploration Inc 76 7 83
Phoenix Energy Prod Inc 2 2
Pierce & Petersen 20 20
Quail Energy Corp 1 1
Questa Petro Co 1 1
Range Resources Appalachia Llc   121 121
Rb Robertson & Son Gas & Oil 1 1
Red Oak Energy Llc 1 1
Remnant Group Inc 1 1
Rex Energy Operating Corporation   28 28
Rice Drilling B Llc   4 4
Richard H Burkland 1 1
Ristau Ricky J 3 3
Rs Gas Co Inc 1 1
Russ Holden Well Svc 2 2
Ryoil Inc 1 1
Sandstone Dev Llc 3 3
Schrecengost Fred M 1 1
Seneca Resources Corp 40 44 84
Sheffield Land & Timber Co 5 5
Shelly Oil & Gas Inc 1 1
Snyder Bros Inc 25 16 41
Southwell William R 2 2
Southwestern Energy Prod Co   17 17
St Mary Land & Exploration Co   1 1
Stephenson Group Natural Gas Co 2 2
Stone Energy Corp   2 2
Susquehanna Expl & Prod Llc 3 3
Sv Abs Interest Wetmore Proj 5 5
Talisman Energy Usa Inc   200 200
Tanglewood Expl Llc   3 3
Texas Keystone Inc 8 8
The Gas & Oil Company Llc 2 2
Titusville Oil & Gas Assoc Inc 67 67
Triana Energy Llc   4 4
Turm Oil Inc 2 2
Ultra Resources Inc   26 26
Universal Resources Holdings Inc 8 8
Us Energy Dev Corp 101 101
Us Energy Exploration Corp 13 13
Vessels Coal Gas Inc 1 1
Victory Energy Corp 2 2
Vista Opr Inc 21 21
Wgm Gas Co Inc 7 7
Willard M Cline 3 3
William H Brawand 2 2
William Mcintire Coal Oil & Gas 6 6
William S Burkland 1 1
Williams Production Appalachia Llc   13 13
Wilmoth Interests Inc 8 1 9
Windfall Oil & Gas Inc 1 1
Winfall Energy Inc N V 1 1
Xto Energy Inc   14 14
Grand Total 1,246 1,177 2,423

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