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Wednesday, July 31, 2013

Links for 7/31/13: Dodds Caring for Carroll County's Economic Future, Pipelines Not Being Inspected, and Much More

Shale Reporter:  Message is mixed on fracking

Energy in Depth:  Boulder Congressman: A "Poster Boy" for Hypocrisy

Pittsburgh Post-Gazette:  Pennsylvania drillers eye shale layers atop Marcellus

The Hill:  Fracking fears are appalling

Energy Outlook:  A First-Hand View of Fracking in Pennsylvania's Marcellus Shale

Canton Repository:  Dodds helping to plot Carroll County's future

The Morning Journal:  Kensington plant fired up

Central Valley Business Times:  Report: Feds fail to inspect 2 Million miles of pipelines

Shale Gas Review:  Record shows EPA staff warned of Dimock water pollution

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Harrison County Officials Upset With the Way Shale Activity is Affecting Roadways

Is all of the truck traffic ruining Harrison County roadways?
From the Tribune Chronicle:
"Don't get me wrong, I still feel the gas boom is a positive for the county and we have a good relationship with all of the companies doing business in Harrison County," said Norris. "However, it is a relationship that should be based on mutual respect and I feel the county has been taken advantage of in several instances." 
Norris passed around a stack of photos from a weekend road tour of the county. Citing several county highways with sagging patches, culverts blocked by debris and rough travel, Norris said, "This is a safety concern for our citizens who travel these roads and we feel that it should be our primary focus to protect the taxpayers. I feel we should hold up all road-use maintenance agreements until the road work which has already been promised is done." 
"We never claimed we would have 100 percent compliance," said Ryan Dean, senior coordinator of corporate development for Chesapeake Energy who responded to charges of vehicles using non-bonded routes to access sites and responsibility for contractors by their corporate employers. "It's a blurry line. It is a little bit of science and a little bit of art."
Read the entire article here.

What are your impressions of how shale activity affects area roads?  Some of this article makes it sound like a free-for-all, where the companies are abusing the lack of enforcement power and using whatever roads they feel like using, regardless of what sort of mess it will leave behind.  Is it a big concern for you?  Feel free to sound off in the comments.

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High Demand for Nuverra's Services Costs Company Money in 2nd Quarter

From The Motley Fool:
Nuverra Environmental Solutions (NYSE: NES  ) decided it was best not to wait until its scheduled earnings release on Aug. 8 to deliver the bad news. Instead, the company chose to preliminarily release second-quarter results and get all its bad news out in the open. Let's break down the release to see if there is anything positive for investors. 
Nuverra noted that several factors have been negatively affecting its business. The company pointed out that activity levels in some of the shale plays it operates in were below its internal forecasts because its customers worked at a slower pace than expected. It did allow that it sees some revenue being pushed into the second half of this year and even 2014.
Later in the article:
In an odd twist, the company was actually affected negatively in another fast-growing shale play because it couldn't keep up with demand. The company's Marcellus and Utica operations were stronger than anticipated which forced it to subcontract some work, which had a negative effect on margins. Nuverra is aggressively hiring in the region and recently acquired a competitor in the Utica to expand its operations.
Read the rest of the article here. 

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Coalition Begins Fight Early Against Resurrected Youngstown Fracking Ban Amendment

From Business Journal Daily:
The coalition was formed just weeks before the primary election and lobbied against the measure. However this time, the group is telling the community not to sign petitions so it does not receive the necessary signatures to place it on the November ballot.
"We're trying to be proactive," said Thomas Humphries, Youngstown/Warren Regional Chamber president and CEO. "If you look at the issue, it hasn't really changed that much."
Humphries said it’s the coalition's objective to remind the public why they voted the amendment down the first time, and consider withholding their signatures. "People didn’t support it the last time, and we encourage them not to support it by signing it," he said.
Wenger said this charter proposal is practically identical to the one that was voted down three months ago.
Read the whole article by clicking here.

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Shale Activity Already Changing Hanoverton, With More Impacts Expected

From Business Journal Daily:
Between drilling activity in Columbiana and neighboring Carroll County to the south, the thoroughfare has become an artery that carries the lifeblood of the Utica shale, and Don Hofmeister is smack in the middle of it.
From the vantage point of his business, Hanoverton Motorcars Inc. on Route 30 in Hanoverton, Hofmeister says he’s seen and heard it all. Managers, rig workers, neighbors and farmers – all stop in these days either to buy a vehicle or chat about the biggest industry to hit this region in decades.
“I’m 48 years old and I’ve never seen anything like this,” Hofmeister says of the oil and gas industry. Wells are popping up to the north and south of his business, while less than a mile away UEO Buckeye – a partnership between M3 Midstream, Access Midstream and EV Energy Partners – is putting the final touches on the first phase of its huge cryogenic plant near the crossroads of Kensington.    Read the rest of this article by clicking here....


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Natural Gas-Fueled Power Plants Helping to Cut Down on Smog in Ohio

From The Columbus Dispatch:
In terms of making electricity, coal is still king in Ohio, but it is taking a beating from a cleaner rival.
And the growing popularity of this other fuel — natural gas — has helped make the summer air easier on your lungs.
Central Ohio had six straight 90-degree days this month without a single smog alert. The only two alerts this year were on June 21 and 22. By this time last year, there had been 14 alerts, according to the Mid-Ohio Regional Planning Commission, which issues them.
Many factors contribute to smog, and experts are reluctant to place too much emphasis on any one, but big changes in the state’s power plants have played an important role.
Coal was the fuel for 67 percent of the power produced in the state last year, down from 85 percent in 2008, according to the Energy Information Administration. Most of coal’s losses have been gains for cleaner-burning natural gas.
Click here to read the rest of the article. 

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Another Day, Another Researcher Arguing Against Cornell Activist/Professor Ingraffea

From The Energy Collective:
As Ingraffea pointed out, while natural gas emits about half as much carbon dioxide as coal per unit of energy, the global warming impact of methane is about 20 times more potent than coal on a 100-year basis. As a result, methane emissions have the potential to erode most or all of the CO2 emissions benefit resulting from coal-to-gas switching. According to a study from the National Center for Atmospheric Research, if methane leakage exceeds 2 percent of total production, the greenhouse gas footprint of shale gas could exceed that of coal (scientists at the Environmental Defense Fund estimated that this threshold is actually 3.2 percent, and Lawrence Cathles of Cornell University has suggested that it could be as high as 18 percent).
But the best available studies suggest that leakage rates do not exceed 2 percent. Ingraffea ignored the latest data from the US Environmental Protection Agency, which estimated nationwide fugitive methane emissions at 1.5 percent of natural gas production and indicated that leaks have been on the decline in recent years. A 2012 study published by the Joint Institute for Strategic Energy Analysis estimated leakage at 1.3 percent. Our review of estimates of fugitive methane emissions from shale gas production range from 1 percent to 7 percent, with most recent estimates in the 1–to–2 percent range (see graph below). The two leakage studies cited by Ingraffea, which both estimated leakage rates well above 2 percent, are outliers and have been faulted for selective bias and poor measurement and statistical techniques.
Read more, and view the graph referenced in that second paragraph, by clicking here. 

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Hanger: Flaring Practices in North Dakota Reveal Disturbing Attitude of Industry

From John Hanger's Facts of the Day blog:
While the companies flaring vast volumes of gas in North Dakota may think that they are just burning gas to make oil money, they are also burning the reputation of their industry and state regulation.
http://www.ceres.org/press/press-releases/new-report-north-dakota-natural-gas-flaring-more-than-doubles-in-two-years

The drilling in North Dakota is for oil, much more valuable oil, and the gas released comes with the oil production.  Oil currently sells for about 30 times more than natural gas. Instead of producing the gas commercially, the drilling companies burn it off so that they can speed the oil from the well to market.  The gas being flared amounts to $100 million per month or more than a billion dollars a year.

Some in the oil and gas industry express bewilderment that it regularly scores public approval levels below lawyers and journalists and just a bit above Congress.  Yet, the flaring in North Dakota is just one example of behavior that is perfectly calculated to turn off many people across America and does more damage to the industry than its most demagogic or ill-informed critics.
Read the rest of the article here.

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Tuesday, July 30, 2013

Links for 7/30/13: Dueling Rallies in Warren, Cornell Professors Disagree on Drilling Emissions, and Much More

With a host of other things happening today, we didn't get to post individual articles for all of these different stories.  However, these links will help you keep up-to-date on what's going on.

StateImpact Pennsylvania:  Silenced Critic of Dimock's Water Problems Switches to Air Pollution Concerns  (AKA: After settling their case with Cabot, a landowner decides that the settlement money is nice but they miss the attention they got when they were complaining about drilling)

WFMJ News:  Attorney withdraws from Youngstown illegal dumping case

Business Journal Daily:  Coalition Holds Rally to Counter "Don't Frack"

Natural Gas Now:  Josh Fox and Friends Claim the Land From Farmers

Star Tribune:  Sierra Club sues feds over shale development

Columbus Dispatch:  State forest proposed as fracking site

Energy in Depth:  Bill McKibben's Hypocritical Rally in Warren

New York Times:  Another View on Gas Drilling in the Context of Climate Change

Akron Beacon Journal:  Summary of Ohio rally in Warren against injection wells

Akron Beacon Journal:  MarkWest: Turbo expanders, cracker plants, $2.2 billion investment

Beaver Countian:  Op-Ed: Thrown Into the Deep End of the Pooling  (Disgraced PA State Rep Jesse White, who attacked constituents who disagreed with his ideology under false identities over the internet, thinks that people can still take him seriously)

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Monday, July 29, 2013

7/29/13 Links of the Day: Fracking Protest in Warren, Gas Industry's Evil Plan Includes Free Hot Dogs, and More

Youngstown Vindicator:  200 protest fracking at Warren rally

Shale Reporter:  Food, fun and fracking: Cabot Annual Picnic

New York Times:  Gangplank to a warm future (Cornell's Anthony Ingraffea continues his anti-gas activist efforts)

Grand Forks Herald:  Fracking does not put N.D. groundwater at serious risk

Youngstown Vindicator:  Son of anti-fracking initiative deserves to be dead on arrival (the case is made against the reintroduction of defeated fracking ban charter amendment)

Oil & Gas Law Report:  Part 2: Who Owns the Minerals Under Ohio Township Section 16?

Maryland Daily Record:  Devonian: Another player in natural gas boom

Akron Beacon Journal:  Limited Upper Devonian drilling in Southeast Ohio

The Argus:  Two more arrests at Balcombe fracking protest

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Study Suggests Water Contamination From Drilling in Texas, But Questions Remain

From RTCC:
A high level of water contamination has been discovered in the water wells near a natural gas extraction site in the US.
The toxic substances, including arsenic, selenium and strontium, were all found at levels higher than recommended levels in wells in and around the Barnett Shale, an important reservoir of natural gas in North Texas.
The study, led by Kevin Schug, professor of chemistry and biochemistry at the University of Texas (UT) at Arlington, took water samples from 100 private wells.
Of these, 91 were taken from wells that were within a five kilometre radius of a natural gas drilling site, while another nine were taken from “reference areas” of more than 14 kilometres from a drilling site.
Read the rest of the article here.

Energy in Depth, of course, was quick to weigh in with questions about the study.  Amazingly, Duke professor Rob Jackson, who has been working to try and prove that fracking can contaminate water, echoes some of EID's points.

Here is some of what the industry's PR arm had to say about the study:
Make no mistake: this new research from UTA could inform better risk management techniques. But there were a few questions that come to mind as we read through this latest study (and the initial news reports about its release).
Question 1: Why is ‘Fracking’ Being Implicated?
In order to determine if the hydraulic fracturing process has contaminated groundwater, samples will usually be tested for benzene, toluene, ethylbenzene, and xylenes – BTEX, for short. The researchers did test for those, and they concluded:
We found no evidence of BTEX compounds using both LC-UV-MS 192 and GCMS.” (p. 9)
So why, then, did the first story out of the gate put “fracking” in the headline alongside findings of “elevated levels of heavy metals”? The researchers themselves pointed to a variety of different causes (more on that in a moment), which could include increased industrial activity and even changes in the water table due to drought. But apparently, as with the discussion on earthquakes, the obsession around the word “fracking” – and the associated need to include it inevery headline – trumped any interest in accuracy.
The rest can be read here. 

View details of the study here.

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Utica Shale Bottleneck Starts to Ease Up As Midstream Project Begins Operating

From The Canton Repository:
The billion-dollar Utica East Ohio midstream project has begun taking natural gas from Utica Shale wells, easing a bottle-neck that has kept production from getting to market. 
Phase one of the three-phase project started processing natural gas liquids and sending residue natural gas to interstate markets on Sunday, the companies behind the project announced Monday. 
The Utica East Ohio system includes gathering pipelines, a cryogenic processing plant near Kensington in Columbiana County  and a natural gas liquids fractionator, storage and rail facility in Scio in Harrison County. 
The project is a joint venture owned by Access Midstream (49 percent), M3 Midstream (30 percent) and EV Energy Partners (21 percent).
Read the whole article here.

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Activists Look to Revive the Dimock Storyline Yet Again

From DeSmogBlog:
Though EPA said Dimock's water wasn't contaminated by fracking in a 2012 election year desk statement, internal documents obtained by LA Times reporter Neela Banerjee show regional EPA staff members saying the exact opposite among friends. 
"In an internal EPA PowerPoint presentation...staff members warned their superiors that several wells had been contaminated with methane and substances such as manganese and arsenic, most likely because of local natural gas production," writes Banerjee.
"The presentation, based on data collected over 4 1/2 years at 11 wells around Dimock, concluded that 'methane and other gases released during drilling (including air from the drilling) apparently cause significant damage to the water quality.' The presentation also concluded that 'methane is at significantly higher concentrations in the aquifers after gas drilling and perhaps as a result of fracking [hydraulic fracturing] and other gas well work," Banerjee further explained.
You can read more from that article here.

The EPA did respond to questions about these internal documents.  According to that LA Times article:
The EPA confirmed the authenticity of the presentation about the Dimock wells but said it was the work of one employee. 
"This presentation represents one [on-scene coordinator's] thoughts regarding 12 samples and was not shared with the public because it was a preliminary evaluation that requires additional assessment in order to ascertain its quality and validity," said EPA spokeswoman Alisha Johnson. 
"The sampling and an evaluation of the particular circumstances at each home did not indicate levels of contaminants that would give EPA reason to take further action," Johnson said. "Throughout EPA's work in Dimock, the agency used the best available scientific data to provide clarity to Dimock residents and address their concerns about the safety of their drinking water."
You can read that whole article here.

The anti-drilling Natural Resources Defense Council responded with an article too, which you can read here. 

So, what do you think.  Is this another point of proof in the intricate web that Josh Fox and the rest of the fracktivists are warning people about, wherein the EPA is ignoring imminent fatal danger to millions and millions of people because Obama wants natural gas to be used as a bridge fuel?  Or is it really, as the agency itself says, one person's preliminary evaluation which didn't stand up under increased scrutiny of the litany of research and study that was done in regards to Dimock's water?

UPDATE:  Energy in Depth has responded to this latest round of Dimock reporting now as well.

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Driessen: Activist Organizations Need to Make People Scared of Fracking to Keep the Money Rolling In

From ESR:
Then why do Hollywood and radical greens celebrate misleading films like Gasland and Promised Land – even after Phelim McAleer and Ann McElhinney's documentaryFrackNation completely demolished Gasland‘s lies and half-truths? Why do outfits like Food and Water Watch and the Sierra Club, and ill-informed activists like Yoko Ono, continue to scream hysterical nonsense about the process? 
Follow the money – and the ideology. Big Eco is big business, and big egos. It seeks ever more power and every greater control over our lives. Fracking threatens all of that. 
"What you get in your mailbox is a never-ending stream of crisis-related shrill material designed to evoke emotions," former National Audubon Society COO Dan Beard once admitted, "so that you will sit down and write a check" – or click the "Donate Now" button. This multi-billion-dollar-per-year industry would collapse without the crisis du jourit conjures up, with help from the news media, politicians and regulators. 
Deep Ecology adherents view fossil fuels as evil incarnate, and believe fervently in "peak oil" and Climate Armageddon. They are frustrated that fracking guarantees a hydrocarbon renaissance and predominance for decades to come, and helps reduce carbon dioxide emissions without massive economic sacrifice. 
They also tend to be well-off, and clueless about the true sources of modern living standards. They have disturbingly callous attitudes about people who have lost their jobs because of Mr. Obama's war on coal and cheap energy – and about poor rural New York families that are barely hanging onto their farms, unable to tap the Marcellus Shale riches beneath their land, because Governor Cuomo refuses to lift his moratorium on fracking. Many don't give a spotted owl hoot about the world's impoverished billions, whose hope for better lives depends on the reliable, affordable electricity that "frack gas" can help bring.
Read the rest of the article here.

Do you agree?  Are these organizations driven by self-preservation when coming up with the latest item to target with their initiatives?  Or are they sincere?

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AP: Industry Arrogance is Driving the Activist Anger Over Drilling

From The Associated Press:
But some experts say arrogance, a lack of transparency and poor communication on the part of the drilling industry have helped fuel public anger over the process of hydraulic fracturing, or fracking.
"It's a big issue for the industry. I have called for greater transparency. That is the only way to have an honest conversation with the public," said John Hofmeister, a former Shell Oil Co. president and author of "Why We Hate Oil Companies."
As an example, Hofmeister said, some industry leaders have suggested that the fracking boom has never caused water pollution. But while the vast majority of wells don't cause problems, "everybody knows that some wells go bad," Hofmeister said.
Over the last five years, advances in technology have led to a surge of drilling in states such as Pennsylvania, Colorado, Arkansas and North Dakota. Previously inaccessible deposits of shale oil and gas have been unlocked by fracking, a process in which large amounts of water and sand along with chemicals are injected deep underground to break apart the rock.
One of the biggest promoters of the Marcellus Shale drilling boom in Pennsylvania says that while fracking opponents have exaggerated some risks, the industry hasn't always handled key issues well, either.
Read more of this story here. 

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Science Is the Key to Finding Utica Shale Treasures

From The Motley Fool:
So far, Gulfport Energy (NASDAQ: GPOR  ) has had the best success rate in targeting the liquids rich part of the play. The company is spending $499 million of its $570 million capital budget this year on the Utica. Those funds will help drive the company's production from just over 7,000 barrels of oil equivalent per day last year to more than 21,000 barrels of oil equivalent per day this year. This is mainly due to the fact that Gulfport has been drilling some of the best wells in the play.
Chesapeake has also found some of the more successful areas of the play. It expects to see its production jump from 60 mmfce/d, where it ended the first quarter, all the way to 300 mmcfe/d by the end of the year. Chesapeake has not only found some of the better spots, but by moving to multi-well pad drilling, it expects to shave about 30% off its well costs, which will help to boost its returns.
Range and EQT are relative newcomers to the play, as both have focused more extensively on the Marcellus. That focus has enabled them to be among the lowest cost natural-gas producers in the country, which enables both to profit even as natural gas prices stay low. The joint project in the Utica is designed to find the most economical ways to target that play, so that overall returns won't be harmed. 
The takeaway for investors is pretty clear: the potential to earn solid returns from the Utica remains. The trick will be finding the best ways to develop the play. As first movers, Chesapeake and Gulfport have already laid claim to some great spots in the play, which is a reminder of the rewards of being a first mover. On the other hand, Devon's big miss highlights the risk of being a first mover. That's why Range and EQT are banding together with a couple other peers and using science as leverage to find the right techniques to develop the play. That will help both companies deliver returns, but with less risk of coming up dry. 
Read the entire article here.

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Friday, July 26, 2013

7/26/13 Links: Activists Hold Gas Fracking Protest at Conventional Oil Drilling Site and More

No Hot Air:  Can Shale Safely Host Nuclear Waste?

Ask Chesapeake:  Ohio Manufacturing Company Expands Workforce (from 10 to 90 employees thanks to shale activity)

Upstream:  Police break up Balcombe blockade (amusing article about people protesting unconventional drilling for gas at a site where the company is doing conventional drilling for oil)

Akron Beacon Journal:  Limited Upper Devonian drilling in southeast Ohio

Associated Press:  Halliburton Co. contacted in federal anti-trust investigation

The New American:  Despite Federal Study, Fracing (Fracking) Safety Still in Dispute

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Pittsburgh-Based EQT to Spend $40 Million in Guernsey County

PITTSBURGH--(BUSINESS WIRE)-- EQT Corporation (NYSE: EQT) today announced the Company's 2013 capital expenditure (CAPEX) forecast of $1.5 billion. The CAPEX forecast includes $1.15 billion forEQT Production$320 million for EQT Midstream, and $45 million for distribution infrastructure projects and other corporate items. The forecast does not include CAPEX for EQT Midstream Partners, LP(NYSE: EQM), which is a publicly traded entity controlled by EQT Corporation and consolidated in its financial statements. Funding will be provided by cash-on-hand at year-end, cash generated from operations, and proceeds from expected midstream asset sales (dropdowns) to EQT Midstream Partners, LP.
2013 GUIDANCE:
Operating cash flow is projected to be approximately $1.0 billion in 2013, based on current NYMEX natural gas prices. This estimate will increase or decrease by approximately $55 million per $0.25 change in the average NYMEX price.
Sales of produced natural gas in 2013 are projected between 335 and 340 Bcfe, 31% higher than the 2012 estimate of 257 Bcfe. Liquids volumes, included in this sales guidance, are expected to total between 3,300 and 3,400 Mbbls. The increase in volumes throughout the year is not expected to be uniform as a result of multi-well pad drilling.
Marcellus sales volumes in 2013 are projected between 242 and 247 Bcfe, representing a 63% increase over 2012. Non-Marcellus sales volumes are expected to be approximately 93 Bcfe, which is approximately 14 Bcfe lower than 2012.
The Company forecasts consolidated EQT Midstream 2013 EBITDA, which includes the results of EQT Midstream Partners, LP, of approximately $335 million compared to a 2012 EBITDA forecast of$300 million. Net operating revenues in 2013 will be approximately$325 million for gathering, $145 million for transmission, and $30 million for storage, marketing and other.
EQT Midstream Partners, LP announced its 2013 financial and CAPEX forecast today in a separate press release which can be found at www.eqtmidstreampartners.com.
EQT Production:
EQT Production 2013 CAPEX is projected to total $1.15 billion, excluding land acquisitions; $915 million for well development; $27 million for geological and geophysical activities, which will focus on central Pennsylvania and Guernsey County, Ohio; with the remainder for capitalized overhead, well maintenance and compliance.
Marcellus Development
The Company plans to spend approximately $820 million on Marcellus well development in 2013 to drill 153 Marcellus wells with an average lateral length of 4,500 feet. All of the wells will be on multi-well pads to maximize operational efficiency and well economics. EQT Production plans to drill 88% of its 2013 wells with 30-foot cluster spacing. Approximately one-third of EQT's Marcellus acreage can be developed using 30-foot cluster spacing.
The Company broadly defines its Marcellus acreage in three categories: Tier 1, Tier 2, and Tier 3. The Tiers are defined by the expected Estimated Ultimate Recovery (EUR) given a 5,300 foot lateral length well that utilizes the standard 60-foot cluster spacing. The expected EUR for wells drilled in Tier 1 acreage is 9.0 Bcf; Tier 2 is 7.4 Bcf; and Tier 3 is 6.4 Bcf. Utilization of 30-foot cluster spacing is estimated to have a 20% to 25% increase in EUR.
The 2013 drilling plan includes 11 wells in the Tier 3 dry acreage in central Pennsylvania to gather more data for infrastructure planning and to quantify the resource potential. Expected Marcellus well count by acreage type is as follows:

2013 Drilling Plan   Tier 1   Tier 2   Tier 3   Total
Dry Gas:                
60' Cluster Spacing   11   -   8   19
30' Cluster Spacing   41   8   3   52
Wet Gas:                
30' Cluster Spacing   -   36   46   82
Total   52   44   57   153
                 
The Company plans to operate six horizontal rigs and two top-hole rigs in 2013. In 2012, the Company commissioned two Marcellus drilling rigs powered by clean burning natural gas, and expects to retrofit four additional rigs to utilize natural gas in 2013. EQT estimates a fuel cost savings of approximately $400,000 annually per converted rig, as well as an expected 20% to 30% reduction in carbon dioxide emissions, which helps minimize the Company's overall environmental footprint.
Utica Development
The Company plans to spend approximately $40 million on Utica well development in 2013 to drill 8 wells on its liquids rich acreage located in Guernsey County, OhioEQT Production has approximately 16,000 gross Utica acres (13,600 net acres) in the liquids rich development area of Ohio. The 2013 Utica wells are expected to have an average lateral length of 6,000 feet, with two of the wells utilizing 30-foot cluster spacing.
Upper Devonian Development
The Company plans to spend approximately $55 million to drill 11 Upper Devonian wells in 2013 with an average lateral length of 4,200 feet, each of which will share a pad with Marcellus wells. Ten of the wells drilled in 2013 will utilize 30-foot cluster spacing. The Upper Devonian shale formation sits above the Marcellus shale zone across a substantial portion of EQT's existing acreage position. EQT Production estimates that it has approximately 170,000 acres in the Upper Devonian that can be developed independently. The 2013 drilling program is intended to delineate the Upper Devonian position.
EQT Midstream:
EQT Midstream plans to invest $320 million in 2013; $190 million for Marcellus gathering lines; $110 million for a Marcellus header project; and the remainder for maintenance and compliance activities.
The Marcellus gathering investments are focused on EQT Productiondevelopment areas in Pennsylvania and will increase gathering capacity by 400 MMcf per day. EQT Midstream also plans to construct a Marcellus header that will connect liquids rich Marcellus acreage, including the Company's acreage, in north central West Virginia with the Mobley processing plant (owned and operated by MarkWest Energy Partners). The 32-mile header system will have 265 MMcf per day of capacity.
About EQT Corporation:
EQT Corporation is an integrated energy company with emphasis on Appalachian area natural gas production, gathering, transmission, and distribution. EQT is the general partner and majority equity owner of EQT Midstream Partners, LP. With more than 120 years of experience, EQT is a technology-driven leader in the integration of air and horizontal drilling. Through safe and responsible operations, the Company is committed to meeting the country's growing demand for clean-burning energy, while continuing to provide a rewarding workplace and enrich the communities where its employees live and work. Company shares are traded on the New York Stock Exchangeas EQT.
Visit EQT Corporation on the Internet at www.EQT.com.

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