A new set of rules governing pipeline construction permits issued by the U.S. Army Corps or Engineers is causing extreme delays in getting gas from wells to market according to Chesapeake Energy. The new rules have turned what was an average 45-day process to file paperwork into a 300-day process.
The bottom line is that wells that are drilled and completed sit idle because gathering pipelines aren’t being built to them, and consequently landowners are not receiving royalty checks.
On Monday, Pennsylvania Lt. Gov. Jim Cawley, the head of Gov. Tom Corbett’s Marcellus Shale Advisory Commission, did a Q&A session via text chat with readers of the Philadelphia Inquirer to answer questions about the final report of 96 recommendations filed by the Commission and about the work they performed to arrive those recommendations. The questions covered jobs, taxes, regulation, pollution and more. Among the Q&A was this excellent exchange on taxes that puts to bed the widespread misunderstanding that the drilling industry is not paying taxes and “if only PA had a severance tax it would solve the budget problems in the state”:
Lawrence County, a western Pennsylvania county which borders Ohio, has just had its first Marcellus Shale gas well drilled, with hydraulic fracturing of the well under way now. With 815 land leases signed since last year, it’s a pretty safe bet more wells are coming to Lawrence County soon.
MarkWest Energy Partners and its subsidiary companies concentrate on what the industry calls the “midstream” area of natural gas drilling—that is, gathering, processing and transporting natural gas. MarkWest’s quarterly report includes an update on their expanding capacity to process natural gas and natural gas liquids in the Marcellus Shale of Pennsylvania and West Virginia as well as news about a new pipeline to Canada:
Just an observation, but you know the New York Times is in trouble when political blog sites like the Politico, a popular (and leftist) website has to write puff pieces to prop up the journalistic malpractice being printed by the Times against the natural gas industry. Case in point: