M-U Spot Prices Near $1 Push Drillers to Curtail Production

The pipeline got fixed. The price didn't. In midday trading on Monday, Eastern Gas South (the M-U pricing point formerly known as Dominion South) sold for $1.005 per MMBtu, while Henry Hub in Louisiana sat at $2.960. That's a $1.955 haircut. Gas sold in our backyard fetched about one-third of the national benchmark price. And M-U drillers are doing what smart business people do: leaving gas in the ground until someone offers a fair price for it.

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