Monday, April 4, 2016

4: 2007-2008: Early History: When did Cabot begin drilling in Dimock?



This post is intended to fix the date of when wells were drilled in the impacted area along Carter Road in Dimock. Cabot is claiming on their blog that prior to Sept 25, 2008 is "Before Drilling Began".

Is this true?

Figure 1: Cabot clams on their blog in at least three places [1] - [2] - [3] that the complaints by the Ely and Hubert families between June 2008-Aug 2008 were reported "before drilling began", and that "Drilling Began" Sept 25, 2008. Document author: Brittany N. Thomas , Coordinator of External Affairs for Cabot Oil & Gas Corporation, and by George Stark Director, External Affairs at Cabot Oil & Gas Corporation published on the Well Said Cabot blog. The reference to support this claim is a Guest Blog written by FrackNation producer Phelim McAleer, published on the industry-funded Marcellus Drilling News , published by Jim Willis.


As you read this, please refer to this graphic (Figure 2), a screenshot of the PA DEP Spud Database, which shows when the Cabot wells in Dimock were first drilled (spudded).


Figure 2: Refer to this graphic, screen shot of PA DEP Spud Database.

This report also relies upon information from the PA DEP O+G Compliance Database.

Early Dimock Timeline:
  • 9-27-2007: Greenwood 1 SPUD  (NOTE: Here "Greenwood 1" is the name of the well. Spud means they began to drill the well)
  • 11-1-2007: Greenwood 1 VIOLATION 527463 
  • 1-17-2008: Teel 2 VIOLATION 530944

  • 2-26-2008: Teel 2 SPUD
  • 3-27-2008: Ely 4H SPUD
  • 4-7-2008: Teel 2 VIOLATION 536692
  • 4-7-2008: Ely 4H VIOLATION 555027
  • 4-11-2008: Craig and Julie Sautner purchase 1101 Carter Road in Dimock from Andrew and Jacqueline Nunez.

  • 4-18-2008: Ely 6H  SPUD

  • 4-23-2008: Ely 6H VIOLATION 538185


  • 5-1-2008: Dan Dinges, CEO of Cabot, report to investors Cabot has "drilled four vertical wells and are currently drilling our first horizontal test. This well spud in mid April and should reach total depth by approximately a week. The third vertical well has been frac'd.... The fourth vertical well was drilled on the same pad as horizontal well we have currently drilling. It will be completed after the rig is moved off. "

    These statements are confirmed in the PA DEP Spud Database. (See analysis below)
  • 5-6-2008: Teel 2 VIOLATION 538625 CIVIL PENALTY: $4,700
  • 5-6-2008: Hubbard 1 VIOLATION 538704

  • 5-28-2008: Gesford 3 SPUD
    (Note: Gesford 3/9 implicated in Ely & Hubert contamination)
  • 5-28-2008: Lewis 2 SPUD
  • 6-3-2008: Ely 2 VIOLATION 541430
  • 6-3-2008: Gesford 3 VIOLATION 541432 (Note: Gesford 3/9 implicated in Scott Ely & Hubert contamination)
  • 6-3-2008: Heitsman 2 VIOLATION 541433
  • 6-3-2008: Ely 1 VIOLATION 541438
  • 6-3-2008: Lewis 2 VIOLATION 541442
  • 6-3-2008: Gesford 2 VIOLATION 541445
  • 6-3-2008: Ely 4H VIOLATION 555026
  • 6-3-2008: Lewis 1 VIOLATION  541448
  • 6-3-2008: Costello 1 VIOLATION 541449
  • 6-3-2008: Gesford 1 VIOLATION 541457
  • 6-3-2008: Ely 6H VIOLATION 541458

  • 6-16-2008: Lewis 1 SPUD
  • 6-??-2008: Hubert family first reports water quality changes. (Note: Gesford 3/9 implicated)

  • 7-8-2008: Lewis 1 VIOLATION 543967
  • 7-16-2008: Costello 1 SPUD
  • 7-8-2008: Lewis 1 VIOLATION 543533
  • 7-24-2007: Ely 2 SPUD
  • 7-25-2008: Dan Dinges, CEO of Cabot Oil and Gas, reports this to investors: "To-date, we have drilled eight wells and we have three rigs operating in the project area. One of these rigs is currently drilling our first horizontal well (++) and we will be down on this first horizontal in August. " These statements are confirmed by the PA Spud Database, however Mr. Dinges reports eight, when it's really nine.  (he may not have been aware the Ely 2 had just been spudded the day prior)

  • 7-30-2008: Heitsman 2 VIOLATION 545573
  • 7-30-2008: Costello 2 VIOLATION 545574
  • 8-11-2008: Baker 1 SPUD
    (Note: Baker 1 implicated in Sautner Contamination)
  • 8-16-2008: Costello 2 SPUD
  • 8-??-2008: Ely's first report water quality changes. (Note: Gesford 3/9 implicated)
  • 8-20-2008: Baker 1 VIOLATION 545935 (Note: Baker 1 implicated in Sautner Contamination)
  • 8-20-2008: Lewis 1 VIOLATION 545932
  • 9-3-2008:   Heitsman 2 VIOLATION 546826
  • 9-3-2008:   Ely 1 VIOLATION 548326
  • 9-3-2008:   Ely 4H VIOLATION 555023




  • 9-3-2008:   Ely 6H VIOLATION  548348
  • 9-3-2008:   Ely 1H VIOLATION 548991

  • 9-10-2008:  Teel 2 VIOLATION 549004
  • 9-10-2008:  Gesford 1 VIOLATION 549008

  • 9-11-2008: Sautner's first report water quality changes.
    (Baker 1 implicated)

  • 9-23-2008: Gesford 2 SPUD
  • 9-25-2008: Gesford 9  SPUD
  • 9-25-2008: Cabot blog post made after the Ely trial (Mar 10, 2016), which refutes verdict, makes claim this is when drilling began!

    Cabot claims that prior to Sept 25, 2008
    is "Before Drilling Began"!
    Figure 3: Actual graphic from Well Said Cabot blog.
    http://wellsaidcabot.com/get-the-facts/legal/

  • ... lots more drilling and violations and water contamination problems reported ...

    Just a few more noteworthy events:


  • 4-15-2010: in the 2nd Consent Agreement, PA DEP orders Baker-1, Gesford 3, and Gesford 9 to be Plugged and Abandoned
  • 8-30-2012: Cabot uses a shell company ("Susquehanna Real Estate 1 Corp.") to purchase Sautner Home.
  • 9-4-2013: Cabot demolishes former Sautner home.

  • 4-2014: Cabot uses shell company to purchase Mike Ely property.


  • Figure 4: Graphic from the First Consent Agreement which maps the contaminated water wells to the gas wells with recent activity within 1,000 ft.

    Here is what Cabot says in their blog:
    It’s all about the timing : The timeline of concerns does not match up with Cabot’s operations. Mr. Ely’s claims of contaminated water began in August 2008 (the exact time varies depending on when he was asked) while Cabot began drilling the gas wells in question until late September 25, 2008.[4] Other plaintiffs claimed their water problems began even earlier in July 2008. Effectively, they are alleging an effect before there was a cause.  
    [4] Guest Post: Dimock Plaintiff Exposed Under Cross Examination, Phelim McAleer
    http://marcellusdrilling.com/2016/02/guest-post-dimock-plaintiff-exposed-under-cross-examination/


    Source 1 : http://wellsaidcabot.com/get-the-facts/legal/
    Source 2: http://wellsaidcabot.com/wp-content/uploads/2016/04/WEBSITE-Dimock-Trial-Facts.pdf




    ANALYSIS of statements made 5-1-2008: Dan Dinges, Dan Dinges, CEO of Cabot Oil and Gas, report to investors:

    The Susquehanna area has the thickest and richest Marcellus we are aware of, and we believe our initial wells bear this out. To-date, we have drilled eight wells(+) and we have three rigs operating in the project area. One of these rigs is currently drilling our first horizontal well (++) and we will be down on this first horizontal in August. We are also utilizing smaller rigs to drill the up-hole portion of future horizontal wells, which afterwards we will move in larger rigs to complete the horizontal section.

    -- Dan Dinges 2Q2008 Earnings Call, 25 July 2008
    http://seekingalpha.com/article/87129-cabot-oil-and-gas-corp-q2-2008-earnings-call-transcript?part=single
    NOTES:

    These statements are confirmed by the PA Spud Database, however Mr. Dinges reports eight, when it's really nine.
    (Ely 2 had just been spudded the day prior)
    + Greenwood 1, Teel 2, Ely 4H, Ely 6H,  Gesford 3, Lewis 2, Lewis 1, Costello 1, Ely 2 
    ++ Ely 6H

    (source: PA DEP Spud Database)
    ANALYSIS of statements made 7-25-2008: Dan Dinges, CEO of Cabot Oil and Gas, report to investors:



    The Susquehanna area has the thickest and richest Marcellus we are aware of, and we believe our initial wells bear this out. To-date, we have drilled eight wells(+) and we have three rigs operating in the project area. One of these rigs is currently drilling our first horizontal well (++) and we will be down on this first horizontal in August. We are also utilizing smaller rigs to drill the up-hole portion of future horizontal wells, which afterwards we will move in larger rigs to complete the horizontal section.

    -- Dan Dinges 2Q2008 Earnings Call, 25 July 2008
    http://seekingalpha.com/article/87129-cabot-oil-and-gas-corp-q2-2008-earnings-call-transcript?part=single

    NOTES:

    These statements are confirmed by the PA Spud Database, however Mr. Dinges reports eight, when it's really nine.
    (Ely 2 had just been spudded the day prior)

    + Greenwood 1, Teel 2, Ely 4H, Ely 6H,  Gesford 3, Lewis 2, Lewis 1, Costello 1, Ely 2 
    ++ Ely 6H

    (source: PA DEP Spud Database)




    POP QUIZ!
    Refer to the PA DEP Spud database
    Refer to the PA DEP Compliance Database
    Refer to the 1Q2008 and 2Q2008 Earnings Calls Transcripts
    1. How many wells were drilled by Cabot in Dimock prior to Sept 25, 2008?
    2. When was Gesford 3 spudded? 
    3. What did CEO of Cabot Dan Dinges tell investors after 1Q of 2008 about their drilling activity at that time?
    4. Is it true that Cabot's drilling began Sept 25, 2008?

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