IFO Projects 2019 PA Impact Fee Revenue Fell by $53.6M (21%)

In 2019 Pennsylvania raised a record high of $247 million from its version of a severance tax, called an impact fee, based on drilling activity from 2018 (see PA IFO Report Says Record High Impact Tax for 2018 – $247M). The state’s Independent Fiscal Office (IFO) is out with projections for how much revenue will be raised this year (based on drilling in 2019). Given we hit a downturn last year, you won’t be surprised to learn the impact fee will drop by $53.6 million (21%), to a projected $198.2 million.
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Corning Gas Buys Out JV Partner in PA Leatherstocking Gas & Pipe

Corning Natural Gas (based in Corning, NY) has a 50% joint venture partnership in Leatherstocking Gas Company and Leatherstocking Pipeline Company with another Upstate NY-based company, Mirabito. Leatherstocking runs gas mains to residents and businesses in small, mainly rural communities–like Montrose, PA (see PA Rural Residents Burn Marcellus Gas, Save Big Bucks on Heating). Corning announced yesterday they are buying out Mirabito’s 50% interest on the PA side of the border.
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Platts: Nat Gas Production in M-U Declined 1 Bcf/d Last 30 Days

Three weeks ago MDN told readers the U.S. Energy Information Administration (EIA) predicts a slight reduction in Marcellus/Utica production will happen this month–that M-U will produce an estimated 74 million cubic feet per day (MMcf/d) less in January than we did in December (see EIA Dec ’19 Drilling Report: M-U Production Drops 1st Time in Yrs). However, Platts Analytics says over the past 30 days the M-U has produced roughly 1 billion cubic feet per day (Bcf/d) less than it did over the average in 4Q19.
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Trump Seeks to Speed Up Pipeline Projects by Tweaking NEPA Law

regulations

Yesterday President Trump announced a list of proposed changes to the 50-year-old National Environmental Policy Act (NEPA) in an effort to strip away some of the governmental red tape that’s built up over the years like plaque in an artery, preventing important infrastructure projects like pipelines, dams, bridges and roads from getting built. Over the past 20 years or so the left has become adept in their use of NEPA to block new projects, claiming environmental harms. Trump wants to reverse that trend. And that drives extremist greens berserk.
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EIA: 2019 Natural Gas Prices Lowest in 3 Years

The researchers at the U.S. Energy Information Administration (EIA) have done a deep dive into natural gas prices from 2019 and found the average spot price at the Henry Hub last year was $2.57 per thousand cubic feet (Mcf), down about 60 cents from 2018’s average price. Ouch. The researchers tease out the factors that influenced prices last year, pushing it higher (in some cases) and lower (in others). It is useful analysis, giving us a window into what may happen this year.
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Shale Energy Stories of Interest: Fri, Jan 10, 2020

MARCELLUS/UTICA REGION: Natural gas company donates to West Liberty Elementary’s STEM program; Montage Resources – Too many buffalo at the same waterhole; NATIONAL: Net US oil, gas rig count falls one to 835, gas rigs lowest since late 2016; U.S. weekly LNG exports jump; FERC continues with two vacancies — for now; Parsley energy boss says shale will finally deliver returns this year; Cummins Westport natural gas engine receives near zero emissions certification; Medical journal declares war on natural gas; INTERNATIONAL: The world’s next energy bonanza.
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