Both sides of the drilling debate in New York are still coming to grips with both the fact, and the way, the state Dept. of Environment Conservation (DEC) filed for a 90-day extension to the fracking rulemaking process—keeping the possibility of fracking alive in New York.
Anti-drillers, never at a loss for things to complain about, mostly complain the DEC’s revised proposed rules don’t indicate where the rules have changed from previous versions (i.e. redline), making them flip back and forth between previous versions and the new version (perhaps they have a case for carpel tunnel syndrome?)…
CORRECTION: MDN has just been alerted by our friends at the Akron Beacon Journal that our information about quarterly reporting coming from ODNR is not correct. The proposed legislation which contained language about filing quarterly updates to production numbers ultimately did not pass the state legislature and therefore Ohio will (for now) stay on yearly reporting—which is unfortunate. Our thanks to Bob Downing for the heads-up on this.
On Monday the Ohio Dept. of Natural Resources (ODNR) issued its annual Ohio Mineral Industries Report. A very small part of that report covers drilling and production for oil and gas in Ohio (see that section of the report below). ODNR has taken a lot of criticism lately over the fact that shale oil and gas production numbers are only required to be filed and reported once per year by drilling companies. Apparently the criticism has prompted ODNR to change the reporting requirement.
Starting in 2013, the ODNR will require (and will itself) report oil and gas production numbers on a quarterly basis.
The Appalachia-to-Texas (ATEX) Express Pipeline, a 1,230 mile ethane pipeline which will run from the Marcellus and Utica region to the Gulf Coast is about to ink a deal with Fairfield County, OH Airport to allow the pipeline to run under airport property. If the deal is signed, as expected in the near future, the airport will receive $450,000 to allow the pipeline under its property.
Anadarko, one of the largest independent oil and natural gas E&P (exploration and production) companies in the world, issued an update yesterday for it’s onshore drilling. Among Anadarko’s onshore drilling locations is the Marcellus Shale, which has shown a dramatic increase in production over the past several years.
Anadarko’s full update is included below. The main point of the update is to crow that they’ve now passed the 100,000 barrels of oil equivalent per day for onshore production (a great milestone to be sure). The interesting thing (to MDN) are the charts that go with the update, which we’ve embedded below. The Marcellus chart shows Anadarko’s massive increase in production from virtually nothing in 2009 to more than 300 million cubic feet feet per day in 2012.
Last Friday, the Federal Energy Regulatory Commission (FERC) issued an “environmental assessment” (EA) covering two Marcellus pipeline projects proposed by Dominion Transmission: The 19-mile Tioga Area Expansion project, spanning five counties in Pennsylvania and New York, and the nearby 3.5-mile Sabinsville to Morrisville project.
FERC’s EA says neither project will adversely affect the environment, giving the projects what amounts to a green light to move forward with construction next year.
Russell (“Rusty”) Braziel is one of the country’s most respected authorities on energy information and markets. He’s the former vice president of BENTEK Energy (bought out by Platts in 2010). He speaks, he writes, and he’s now President & Principal Consultant at RBN Energy, LLC.
Rusty presented at the LDC NGL (natural gas liquids) Forum in San Antonio yesterday, and he had some interesting things to say about the future of NGL and crude oil prices in the U.S. When Rusty speaks, people listen.
End of the year means it’s time to consider taxes (bloody awful if you ask us!). If you live in Pennsylvania and if you’ve leased your property for drilling (and perhaps even have royalties from drilled wells), you need to plan for the tax man—especially if you’ve sold your lease rights/property. All we can say is, a) it’s complicated, and b) find a lawyer/accountant to help you.
The law firm of McNees Wallace & Nurick LLC, with offices throughout PA, publishes a monthly newsletter. In the December issue they highlight a recent guidance document from the PA Dept. of Revenue dealing with Marcellus-related transfers and income taxes. If you’re a landowner with leases, you may find it interesting. If you’re a lawyer or accountant specializing in the Marcellus, you’ll definitely find it interesting: