Rex Energy Updates

Rex Energy Updates
Updated 08.18.16

The following communications regarding the Geyer Well Pad project were received by Mars Area School District from Rex Energy. As a public service and to ensure that the community remains informed, the District will publish its communications with Rex Energy regarding this project on this page of the District's website. The most recent communications will be posted at the top of the page.

 

Please note that the following communications are provided for informational purposes only and do not constitute any endorsement by Mars Area School District. All questions regarding any of the following communications should be directed to Rex Energy at the company's "Well Site Inquiry" webpage at www.rexenergy.com/well-site-operations.html 

 

 

Communications


Received:
Aug. 18, 2016

Subject: Final Geyer Operational Update 

 

Rex Energy has completed the well development process at the Geyer Pad and has placed the two wells into production. All major operations (site construction, drilling, fracing) have been completed, and traffic on the site should be fairly minimal as school starts back up later this month. 

 

Over the coming weeks, Rex will finish removing any remaining equipment, disassemble the soundwall, fence in the well pad and reclaim the freshwater impoundment.  The final pad reclamation will be finished in accordance with all applicable local, state, and federal regulatory requirements in addition to our company’s best practices.  As we finish reclaiming the pad, our employees and contractors will continue to observe the right in/right out protocol for vehicle traffic accessing the location and a security guard will remain at the location for the public’s safety until the fencing of the well pad is complete.

 

Two years ago Rex made a commitment to the school board and other community stakeholders that we would keep you informed as the development process progressed and that we would work around the school calendar the best we could to responsibly develop this location. Now, with these wells in production and all major operations complete, I believe we can all agree that Rex has fulfilled that commitment. 

 

This will be the last of the regular updates that Rex will provide this group; however, we look forward to continuing the open dialogue should you have any questions or if any other matters may arise.

 

Thank you,

 

Joseph Negaard
Counsel
Rex Energy Corporation 

 

 

Received: July 5, 2016
Subject: Industry trucks on school property

 

Rex Energy has finished investigating the incident where two trucks were seen in the school parking lot earlier this morning.  Our investigation has confirmed that they belonged to one of our contractors.  The trucks made a wrong turn while driving to the Geyer site.  Once they realized their mistake, two trucks pulled into the closest empty parking lot to consult the directions and GPS coordinates of the Geyer pad that were provided to them by Rex.  They then turned around and left for the Geyer site.  The trucks were in the parking lot for less than 15 minutes.  The contractor takes full responsibility for the incident and apologizes for the mistake. 

 

While regrettable, it is not likely this will happen again, and we would like to assure everyone that at no point was anyone’s safety ever at risk.

 

Thanks,

 

Joseph Negaard

Counsel

Rex Energy Corporation 

 

 

Received: July 5, 2016
Subject: Industry trucks on school property

 

Thank you for bringing this to our attention.  The trucks (parked at Mars Area High School) belonged to a contractor and have been removed from the school parking lot.  The trucks were not there at the direction of Rex, and we are currently trying to determine why the trucks were parked at the school.  I apologize for this incident and for any impact on the parking lot or school.  I will pass on any new information about the incident as I receive it.

 

If you have any other questions or if there is anything else you need from me while we are working through this just let me know.

 

Thanks,

 

Joseph Negaard

Counsel

Rex Energy Corporation 

 

Received: July 5, 2016

Subject: Geyer Operational Update

 

Ladies and Gentleman,

 

This week, Rex Energy will begin to prepare the Geyer well pad for the completions phase of the well development process.

 

This final stage of the development process should be completed by the end of July.  As previously communicated, Rex has installed a temporary fresh water line and a fresh water impoundment at the Geyer well pad. This temporary fresh water impoundment will significantly reduce the level of truck activity needed to complete these wells. Additionally, our “right-in, right-out” protocol on Rt. 228 remains in effect.

 

We hope you and your families had a nice Fourth of July holiday and as always, please do not hesitate to contact me with any questions.

 

Thank you,

 

Joseph Negaard

Counsel

Rex Energy Corporation 

 

Received: May 20, 2016

Subject: Geyer Operational Update

 

Ladies and Gentlemen, 

 

Since my last communication, Rex Energy has drilled the horizontal portion of the two Geyer wells, installed the impoundment liner, fenced in the impoundment, and delivered the tanks and a gas production unit.  Now that the wells have been drilled, operations on the Geyer pad will be much lighter and more sporadic in the coming weeks. 

 

As we have previously communicated, we remain committed to completing these two wells this summer after the school year ends.  I will update everyone on this distribution list once I have more information about completion operations. 

 

Please let me know if you have any questions or concerns.

 

Thank you,

 

Joseph Negaard

Counsel

Rex Energy Corporation 

 

 

Received: April 8, 2016

Subject: Geyer Operational Update

 

Ladies and Gentlemen,

 

As you may recall, Rex Energy drilled the vertical portion of the two Geyer wells in December of 2015.  Rex Energy will begin drilling the horizontal portion of those two wells next week.   In anticipation of these activities, we will be completing site prep and moving the horizontal drilling rig onto the Geyer location this weekend.  Once the rig is on location, we will rig it up, and we hope to begin drilling the first well by the middle of next week.  It takes roughly seven to eight days to drill each horizontal wellbore, and we anticipate that the rig will be on the Geyer location a total of approximately three weeks.

 

The safety of our employees and the communities where we operate has always been and continues to be our first and foremost priority.  We remain committed to mitigating the impact our operations may have on the community.  As a result, we have enhanced our sound abatement walls to further reduce the noise level from the location.  In addition, we will continue to adhere to the on the “right-in, right-out” protocol on Rt. 228 and limit heavy truck activity to and from the site during school arrival and departure times. 

 

Please let me know if you have any questions or concerns.

 

Thank you,

 

Joseph Negaard

Counsel
Rex Energy Corporation

 

 

Received: March 28, 2016

Subject: Geyer Operational Update

 

Ladies and Gentlemen,

 

Rex was able to take advantage of the long weekend to move construction equipment onto the Geyer well pad, while minimizing the traffic impact on the community and the Mars Area Schools.  We are expecting to begin earthwork on the fresh water impoundment either today or tomorrow.  There will be a slight increase in activity during this period, but it should not have a noticeable impact on the schools or traffic on Route 228. 

 

Although the construction activity for the impoundment should be fairly light, our other activity on the site will increase over the next several months.  We will be laying an above-ground temporary water line to provide fresh water to the impoundment and moving in the horizontal drilling rig.  I will continue to keep this group updated as I know more about the expected timing of the waterline and the arrival of the horizontal rig. 

 

As the level of activity at the Geyer well pad temporarily increases over the next few months, we remain committed to mitigating the impact our operations may have on the community.  Rex employees, contractors, and subcontractors have been briefed on the “right-in, right-out” protocol on Rt. 228, and as we have previously communicated, we will limit heavy truck activity to and from the site during school arrival and departure times.

 

Please let me know if you have any questions or concerns. 

 

Thank you,

  

Joseph Negaard

Counsel

Rex Energy Corporation 

 

 

Received: March 8, 2016

Subject: Geyer Operational Update

 

Ladies and Gentlemen,

 

Rex Energy is planning to re-commence operations at the Geyer well pad, and our commitment to keeping the School Board informed of our operational schedule remains unchanged.  As a result, we will resume providing periodic status reports to this group coincident with our operations.

 

Today, marks the beginning of our resumption of activities at the Geyer site. Today, the trucks will deliver and unload the portions of the additional sound wall that Rex is installing. 

 

The actual construction of the sound walls is expected to begin in about two weeks. 

 

I will provide additional updates as operations commence on the Geyer site.

 

Thank you,

 

Joseph Negaard

Counsel

Rex Energy Corporation 

 

Received: Dec. 22, 2015

Subject: Geyer Operational Update


All
,

The “top-hole” rig finished drilling the upper portion of the Geyer wells last Wednesday.  Once the drilling was complete, the drilling rig was broken down and tanks were hauled off the pad.  On Sunday evening, the final equipment was removed from the site and the wellheads and cellars were secured with grates, gates, and barriers.

Now that the first phase of drilling is complete, the Rex Energy operations team is assessing the 2016 drilling schedule to determine the larger drilling rig’s availability so it can be brought in to finish drilling the wells.  Until the bigger rig is brought in, operations will be lighter and more sporadic.  Although we will continue to conduct routine safety/security inspections of the property and engage in other non-intensive preparation work, our operations should have no noticeable impact on traffic or the surrounding area.


I will not be communicating as frequently during this slow period of operations, but I will provide advanced notice prior to the resumption of significant operations on the Geyer site.  I hope everyone has a safe and happy holidays.

As always, please do not hesitate to contact me with any additional questions.

Thanks,

Joseph Negaard
Counsel
Rex Energy Corporation

 

 

Received: Dec. 8, 2015

Subject: Geyer Operational Update

 

All,

 

Over the weekend, Rex Energy completed site preparation and moved a “top-hole” rig to the Geyer pad site. This rig began drilling the vertical portion of the wells yesterday afternoon. This stage of the development phase should take between two and three weeks, barring any unforeseen matters.

 

Rex employees, contractors and subcontractors have been briefed on the “right-in, right-out” protocol on Rt. 228, and as we have previously communicated, we will limit heavy truck activity to and from the site during school arrival and departure times.

 

As always, please don’t hesitate to contact me with any additional questions.

 

Thank you,

 

Joseph Negaard

Counsel

Rex Energy Corporation 

 

Received: Dec. 1, 2015

Subject: Geyer Operational Update

 

Ladies and Gentlemen,


As we informed you last week, Rex Energy is preparing to recommence operations at the Geyer site.  The general timeline for activities over the next few weeks is as follows:

 

Rex will resume operations at the Geyer Pad Site on December 2, 2015.  Rex plans to conduct some additional site prep in the next few days and then move a “top hole” rig onto the site to drill the vertical portions of 3 wells on the pad.  After completing this portion of the drilling, the rig will be broken down and removed from the site.  Barring any unforeseen issues, all these activities should take no longer than 3 to 4 weeks to complete. First responders have been notified.

 

If you have questions or would like additional information, please contact me or Joe Negaard.

 

Thank you,

 

Jennifer McDonough

SVP, General Counsel and Secretary

Rex Energy Corporation

 

Received: Nov. 30, 2015

Subject: Geyer Operational Update

 

All,

 

On Thursday afternoon, the Butler County Court of Common Pleas affirmed the Middlesex Township Zoning Hearing Board decision of May 27, 2015. This decision will allow Rex Energy to re-commence operations at the Geyer well pad.

 

Our commitment to keeping the School Board informed of our operational schedule remains unchanged and we will continue to provide periodic status reports to this group. Currently our executive team is planning and coordinating the necessary resources to resume operations on the Geyer site. Once those plans are finalized we will keep the group updated on any new activity.

 

I hope everyone has a great holiday season and enjoys the time off with family and friends this week. Please don’t hesitate to contact me with any additional questions.

 

Thanks,

 

Joseph Negaard

Counsel

Rex Energy Corporation

 

 

 

Received: July 6, 2015

Subject: Geyer Operational Update

 


All,


On June 26, the Court of Common Pleas Butler County, Pennsylvania issued a preliminary injunction which immediately stays all activity related to unconventional natural gas development on the Geyer Well Pad. The preliminary injunction has caused Rex to cease operations on the Well Pad. At this time, the duration of the delay in operations is not known and leaves Rex’s operations in an indeterminate state.


I will not be sending regular communications while operations at the Geyer site are halted. However, I will update you if or when something changes that will allow us to re-commence operations.


Thanks,


Joseph Negaard

Counsel

Rex Energy Corporation

 

Received: June 19, 2015
Subject: Geyer Operational Update

 

All,

 

Rex Energy completed the drilling of the conductors this week.  We are now digging to install the cellars, which are 8 feet diameter steel pipes dug around the conductors to a depth of 8 feet.  We expect the cellars to be completed and cemented by the end of the week. 

 

Now that we have finished with the conductor rig, operations will be lighter and more sporadic in the coming weeks.  For next week, we are not  anticipating any significant level of operations, although we will be conducting routine safety/security inspections of the property and engaging in other non-intensive reparation work.  Our operations should have no noticeable impact on traffic or the surrounding area. 

 

As we move into a period of non-intensive, lower-level operations, I will provide an update approximately every two-three weeks until more significant operations resume.  I will provide advance notice of more intensive activities, however, and will resume weekly updates during any period of significant operations.  If you have any questions or concerns that arise in the meantime, please do not hesitate to contact me.

 

Thank you.

Joseph Negaard
Counsel
Rex Energy Corporation


 

Recieved: June 12, 2015

Subject: Geyer Operational Update

 
All,
 
This past week we moved in, rigged up, and began drilling with the conductor rig.  We anticipate finishing those operations and moving off of the well pad early next week.  At this point, no other significant activity is planned at the well pad for the rest of next week.
 
As always, if you have any questions, please let me know.
 
Thanks,
 

Joseph Negaard

Counsel

Rex Energy Corporation

 

 

Recieved: June 11, 2015

Subject: Geyer Operational Update

 

 

Dr. Pettigrew,

 

Thank you for forwarding Ms. Tomcik’s presentation.  We have reviewed it, and it appears to be substantially the same presentation she gave at a meeting on July 15th with the DEP and members of the community. 

 

Rather than address these issues again, I have attached our formal response to that initial meeting, and I reiterate our commitments as outlined.    As you will see, we agreed to a number of site-specific enhancements for the Geyer wells that go further, in some instances, than local, state and federal regulatory requirements, and that are designed to protect the health and safety of the public. 

 

Above all, Rex Energy is committed to the health and safety of the communities where we operate. As you know, we have drilled, completed, and now have producing over 100 unconventional wells across Butler County and in some cases closer to schools than this proposed well site.  These wells have been developed and are operating safely.  We are proud of our safety and environmental compliance record and are committed to safely and responsibly developing this well site.

 

Please don’t hesitate to contact me with any additional questions.

 

Thanks,

 

 

Joseph Negaard

Counsel

Rex Energy Corporation


 

 

Recieved: June 5, 2015

Subject: Geyer Operational Update

 

All,

 

Site preparation activities continued on the Geyer pad throughout this week.  A contractor of Rex Energy has completed the resampling of nearby water wells, and we have commenced construction of the sound abatement walls.  Additionally, the secondary containment for the conductor rig has been delivered and will be installed by the end of the week. 

 

Once school has been dismissed for the summer, our activity on the Geyer site will increase a bit.  Early next week, we anticipate that the construction of the sound abatement walls will be finished.  Once the construction of the sound abatement walls and the installation of secondary containment for the conductor rig have been completed, we will begin moving in and rigging up the conductor rig.  A conductor rig is a small, truck mounted rig that typically drills to about 100 feet in depth.  Drilling and setting the conductor is the first step in the drilling process.  If everything goes as planned, the conductor rig will take about a week to complete this phase of the drilling process. 

 

The conductor rig is relatively small and traffic accessing the site should remain light for the rest of this week and next.  Even with the slight increase in activity, our operations should not have a noticeable impact on the school or the community. 

 

If you have any questions or concerns that arise as our operations began to pick up, please do not hesitate to contact me.

 

Thank you,

 

Joseph Negaard

Counsel

Rex Energy Corporation 

 

 

Recieved: June 2, 2015

Subject: Geyer Operational Update

 

Dr. Pettigrew,

 

Thank you for speaking with me regarding Rex Energy’s development plans for the Geyer well pad.  I wanted to follow up regarding your question about timing of development plans for the wells.  We are currently working to incorporate the Geyer wells into our overall drilling schedule - taking into account our financial, legal, operational and contractual positions - in a manner and timeframe that allows us to meet our obligations and commitments in each of those areas.  We remain committed to conducting our operations in a manner that minimizes our impact on the school district wherever feasible.  Because of that commitment, we have already began preparing the site for drilling and related activities once school is dismissed for the summer.  I apologize that we are not yet in a position to provide a more definitive timeline, and assure you that we will keep you apprised of our development plans as they progress, with advance notice via periodic operational updates to the school district, the township, and other local constituencies whenever possible.

 

You also asked if we had a resource available for anyone with questions or concerns about the construction, drilling, completions, or production of the wells.  The best place for people to ask those sorts of questions is the well site inquiry page on our website, at http://www.rexenergy.com/well-site-operations.html.  Inquiries submitted through the website are responded to as promptly as possible.

 

Again, I appreciate your questions and reiterate our commitment to you to keep you apprised of our current and long term development plans with respect to the Geyer properties.  You can feel free to contact me at any time if you have questions or concerns.   

 

Thanks,

 

Joseph Negaard

Counsel

Rex Energy Corporation 

 

 

Received: May 29, 2015 

Subject: Geyer Operational Update

 

All,

 

Following the Middlesex Township Zoning Hearing Board’s favorable decision, Rex is resuming Geyer well pad operations.  Given this recent development, and our continued focus on operational transparency and openness, I will be sharing periodic updates with this group. 

 

Some minor groundwork has already begun on the site this week.  Rex has verified that all permits are on-site and that the required signing was replaced along Route 228.  Additionally, Rex had contractors survey and stake the final location of each of the permitted wells on the well pad site. 

 

Next week, a contractor will begin laying the containment system on the well pad.  The containment system is an environmental protective barrier that covers the active working area surrounding the well. 

 

In addition, next week, the installation of a sound abatement wall will begin.  The sound wall will be 16 feet high and will surround the perimeter of the well pad.  The sound wall will help to minimize noise and light leaving the site, reducing the short term community impact.  Rex anticipates that the sound wall should be installed within about one week. 

 

Throughout this process we remain committed to right in/right out for vehicular traffic accessing the well pad site.  In addition, we anticipate that our operations over the next few weeks should not be substantial enough to have a noticeable impact on traffic or the school or the surrounding community.

 

I will continue to keep you updated as we progress with the Geyer wells.  Please feel free to contact me with any questions you may have.

 

Joseph Negaard

Counsel

Rex Energy Corporation