EQT

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This article is about the publicly traded energy company, EQT Corporation. For the Swedish private investment firm, see EQT Partners.
EQT Corporation
Type Public
Traded as NYSEEQT
S&P 500 Component
Industry Energy
Founded 1888
Headquarters EQT Plaza
Pittsburgh, Pennsylvania, U.S.
Key people David L. Porges (Chairman, President and CEO)
Products Natural gas
Revenue Increase$1.32 billion US$ (2010)
Employees 1800 (2010)
Website www.eqt.com

EQT Corporation is one of the largest natural gas producers in the Appalachian Basin. Headquartered in Pittsburgh, PA and operating in Pennsylvania, West Virginia, Virginia and Kentucky, EQT has used integrated air and horizontal drilling technology for more than 125 years.[1] EQT has recently attracted attention for its legal and regulatory problems due to environmental violations in its home state of Pennsylvania [2]. It has also incited controversy by proposing a pipeline through pristine areas of the Appalachian Mountains.

EQT employs nearly 1,800 people.[3] Overall, EQT’s operations added about $1.15 billion in economic exploitation from local communities .[4]

Currently the fastest growing business within the company, EQT Production owns and operates more than 14,000 natural gas wells across 3.5 million acres in the Appalachian basin. The company’s proved reserves increased by 28 percent in 2010 and by more than 120 percent over the past five years, In the Marcellus Shale region, EQT operates more than 180 wells (As of 30 September 2011) over its 520,000 acres of land in Pennsylvania and West Virginia.[5]

Through EQT’s midstream business, the company builds and operates new pipelines, processing plants and storage facilities. EQT Midstream owns or operates nearly 11,000 miles of gathering lines and 243 compressor units comprising 125 compressor stations with approximately 256,000 horsepower of installed capacity.[6] Transmission and storage operations include approximately 700 miles of lines located throughout eastern Kentucky, north central West Virginia and southwestern Pennsylvania. In addition, EQT Midstream also has 14 natural gas storage reservoirs with nearly 500 MMcf per day of peak delivery capability and 63 Bcf of storage capacity, of which 32 Bcf is working gas at the end of 2010.[7]

In 2011, EQT opened one of the first compressed natural gas (CNG) fueling stations in Pittsburgh, located in the Strip District.[8][9] The station was constructed to provide cleaner burning natural gas for privately owned and commercial natural gas fueled vehicles (NGVs), including some EQT service vehicles. In addition, EQT and Equitable Gas Company (an EQT natural gas subsidiary) are currently transitioning its vehicles to NGVs, including passenger vehicles, compressor utility trucks, meter regulator utility trucks and cargo vans.

Despite its numerous legal and environment issues, EQT claims to serve the community through the EQT Foundation which has donated more than $15 million to the charitable giving and philanthropic efforts of many regions.[10]

Current Legal and Regulatory Problems[edit]

EQT, based in Pittsburgh, has attracted a lot of attention from the Pennsylvania Department of Environmental Protection and the Attorney General of the state for unsafe practices. On October 7, 2014 the DEP sought a record $4.5 million penalty for damage caused by the release of fracking fluids from a gas drilling site in the Marcellus region.[11] "This action was necessary because the company has not been cooperative during our investigation. The department does not tolerate this unacceptable attitude toward compliance and proper protection of Pennsylvania's environment," Acting DEP Secretary Dana Aunkst said in a statement.

Also in October 2014 the Attorney General of Pennsylvania took the unusual step of filing criminal charges against EQT "over a leaking water impoundment at a Tioga County well site. EQT Production Co., is facing three counts each of pollution of waters and disturbance of waterways. According to the attorney general’s office, flowback water leaked from the 6 million gallon impoundment at the Duncan Township well site and entered an unnamed tributary of Rock Run, a Class A trout stream. Leaking water also allegedly contaminated the groundwater at the site."[12]

Mountain Valley Pipeline[edit]

EQT, despite little experience in operating pipelines, decided not to join an industry consortium pipeline but has instead filed to build and operate the Mountain Valley Pipeline. The Mountain Valley Pipeline would travel through some of the most beautiful areas of the Appalachian mountains, crossing the Appalachian Trail and the Blue Ridge Parkway in several spots.

Opponents to the Mountain Valley Pipeline have numerous concerns including these:

  • The terrain is difficult and ill-suited for the most dangerous (biggest and highest pressure) allowable pipeline.
  • Giles county had the most severe earthquake recorded in Virginia [13] and remains a major seismic zone. [14]
  • Montgomery County has a Karst terrain with sinkholes and caves. Much of the land is shallow dirt over limestone.
  • Karst water is interconnected, so a repetition of EQT's problems in PA could result in massive contamination of drinking water in the county. [15]
  • The combination of (1) a relatively inexperienced operator, (2) a company with a history of severe environmental problems, (3) a terrain ill-suited for a pipeline and (4) the largest (42-inch) pressurized pipeline in the U.S. could be a "perfect storm."
  • The "perfect storm" from Mountain Valley could be a blast that levels a zone within an 1100 foot radius and/or destruction of drinking water.[16]

The proposed use of eminent domain by EQT to seize private land for private profit seems brazen violation of the Virginia and U.S. Constitutions to property owners impacted. As a Roanoke newspaper article pointed out the gas is being shipped across unsuitable terrain in order to ship it to Europe (which restricts fracking). [17]

For more information see www.preservethenrv.com [18]

History[edit]

  • 1884 – Michael and Obediah Haymaker struck gas outside of Pittsburgh, PA[19]
  • 1888 – Equitable Gas Company was formed[20]
  • 1900 – Equitable Gas Company became a part of George Westinghouse's Philadelphia Company[21]
  • 1950 – Separated from the Philadelphia Company and lists on NYSE[22]
  • 1984 – Changed corporate name to Equitable Resources, Inc.[23]
  • 1995 – Offered first fixed bill energy contract in U.S. where what a customer pays for energy is fixed no matter what the weather does.[24]
  • 1997 – Acquired NORESCO[25]
  • 2000 – Acquired Appalachian wells and reserves from Statoil Energy[26]
  • 2008 – Became a component of the S&P 500 Index[27]
  • 2009 – Changed corporate name to EQT Corporation[28]
  • 2011 – Opened first CNG fueling station in Pittsburgh[29]
  • 2014 - Record fine from the PA DEP and criminal charges from the Attorney General for environmental violations[30]

External links[edit]

References[edit]

  1. ^ "EQT – corporate profile". Retrieved 2012-01-10. 
  2. ^ http://www.reuters.com/article/2014/10/07/us-energy-pennsylvania-eqt-corp-fracking-idUSKCN0HW1VK20141007
  3. ^ "EQT – The EQT Experience". Retrieved 2012-01-10. 
  4. ^ "Pennsylvania Economy League of Southwestern Pennsylvania". Retrieved 2012-01-10. 
  5. ^ "EQT – Production". Retrieved 2012-01-10. 
  6. ^ "EQT – Key Data". Retrieved 2012-01-10. 
  7. ^ "EQT – Key Data". Retrieved 2012-01-10. 
  8. ^ "EQT – Press Release July 19 2011". Retrieved 2012-01-10. 
  9. ^ "Pittsburgh Business Times – Giant Eagle CNG station opens for business". Retrieved 2012-01-10. 
  10. ^ "EQT – The EQT Foundation". Retrieved 2012-01-10. 
  11. ^ http://www.reuters.com/article/2014/10/07/us-energy-pennsylvania-eqt-corp-fracking-idUSKCN0HW1VK20141007
  12. ^ http://www.bizjournals.com/pittsburgh/blog/energy/2014/10/attorney-generals-office-files-environmental.html
  13. ^ http://earthquake.usgs.gov/earthquakes/states/events/1897_05_31.php
  14. ^ http://www.sciencemag.org/content/219/4588/1063.short
  15. ^ http://www.dmme.virginia.gov/dgmr/sinkholes.shtml
  16. ^ www.preservethenrv.com
  17. ^ http://www.roanoke.com/news/columns_and_blogs/columns/dan_casey/casey-where-s-that-pipeline-gas-going/article_4464017d-2796-516f-9353-f86f6ed3bb9c.html#.VE-USRK7DI4.twitter
  18. ^ www.preservethenrv.com
  19. ^ "Equitable Resources – Company History". Retrieved 2012-01-05. 
  20. ^ "Equitable Resources – Company History". Retrieved 2012-01-05. 
  21. ^ "Equitable Resources – Company History". Retrieved 2012-01-05. 
  22. ^ "Equitable Resources – Company History". Retrieved 2012-01-05. 
  23. ^ "Equitable Resources – Company History". Retrieved 2012-01-05. 
  24. ^ "Equitable Resources – Company History". Retrieved 2012-01-05. 
  25. ^ "NORESCO – Company History". Retrieved 2012-01-05. 
  26. ^ "EQT – Investor Relations". Retrieved 2012-01-05. 
  27. ^ "EQT – Investor Relations". Retrieved 2012-01-05. 
  28. ^ "EQT – Investor Relations". Retrieved 2012-01-05. 
  29. ^ "Pittsburgh Business Times – Giant Eagle CNG station opens for business". Retrieved 2012-01-05. 
  30. ^ http://www.reuters.com/article/2014/10/07/us-energy-pennsylvania-eqt-corp-fracking-idUSKCN0HW1VK20141007