Appalachia

Pennsylvania Gov. Tom Corbett said Friday the state has appealed to the state Supreme Court a ruling by the Commonwealth Court that struck down portions of Act 13, the state’s new omnibus Marcellus Shale law.

In a 4-3 decision on Thursday, the Pennsylvania Commonwealth Court ruled that portions of Act 13, the state’s new omnibus Marcellus Shale law, were “unconstitutional, null and void” on the grounds that its limits on local zoning violate municipalities’ right to substantive due process.

Penn Virginia Corp. (PVA) on Tuesday agreed to sell “substantially all” of its gassy Appalachian Basin portfolio, except the Marcellus Shale assets, to help fund development in the oily Eagle Ford Shale in South Texas.

Attorneys involved with a legal challenge to portions of Act 13, Pennsylvania’s new omnibus Marcellus Shale law, say a decision by the state’s Commonwealth Court could come within a month and will have far-reaching consequences regardless of which way the court rules.

Chevron U.S.A. Inc. and EQT Corp. marketing unit EQT Energy LLC have stepped up to be anchor shippers on Texas Eastern Transmission LP’s Texas Eastern Appalachia to Market (TEAM) 2014 expansion, Spectra Energy Corp.’s Texas Eastern said last week. The project is intended to deliver more Appalachian shale gas to markets in the Northeast, Midwest and southern United States.

Chevron U.S.A. Inc. and EQT Corp. marketing unit EQT Energy LLC have stepped up to be anchor shippers on Texas Eastern Transmission LP’s Texas Eastern Appalachia to Market (TEAM) 2014 expansion, Spectra Energy Corp.’s Texas Eastern said Thursday. The project is intended to deliver more Appalachian shale gas to markets in the Northeast, Midwest and southern United States.

Ohio is a “long shot” for a world class ethane cracker planned for Appalachia, but the state would still benefit if the facility lands anywhere in the region, Ohio Gov. John Kasich said Tuesday.

Fort Worth, TX-based Range Resources Corp. plans to focus 75% of its $1.6 billion capital budget for 2012 on liquids-rich plays in Appalachia and the Midcontinent. Range is adding five “enhancements” this year: the “super-rich” Marcellus Shale, the “super-rich” Upper Devonian Shale, the wet Utica Shale, the horizontal Mississippian plays and the Cline Shale in the Permian Basin. In the fourth quarter Range recorded a net loss of $3 million (minus 2 cents/share) versus a net loss of $318 million (minus $2.02) in the year-ago quarter. Range said the increase in quarterly net income from a year ago was driven by a 46% increase in production and lower costs per Mcfe. The company earned $58 million for full-year 2011 (36 cents/share) compared with a net loss of $239 million (minus 52 cents) in 2010. Cash flow from operations increase 28% to $737 million from $577 million in 2010. Although it lost 20% of its production by selling its Barnett Shale assets in 2011, Range posted a 12% increase in production to 554 MMcfe/d. The company expects 30-35% production growth this year.

Enterprise Products Partners LP said Tuesday an open season has shown that enough shippers are interested in taking capacity on its proposed Appalachia to Texas (Atex Express) ethane pipeline to support the 1,230-mile project. The pipeline would deliver ethane from the Marcellus/Utica Shale areas of Pennsylvania, West Virginia and Ohio to the U.S. Gulf Coast.