ODNR Drops “Market Enhancement” Clause in Forced Pooling Orders
Ohio mineral rights owner Gateway Royalty researched unitization (aka force pooling) in the state and discovered a disturbing change introduced in existing unitization beginning three years ago. Since February 13, 2018, a “market enhancement” clause has been included in Ohio Dept. of Natural Resources’ (ODNR) forced pooling unitization orders, which allows the unit operator to deduct post-production costs from the royalties owed to mineral owners. These post-production costs are sometimes as much as 95% of the gross sale price. Gateway called attention to the practice and ODNR has since backed down and no longer includes the market enhancement clause in new unitization orders.
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Although quarter after quarter and year after year natural gas production in the Pennsylvania Marcellus continues to go up (see 
The New York State Dept. of Environmental Conservation (DEC), completely corrupted by radicals under the thumb of outgoing Gov. Andrew Cuomo, has struck again. The DEC has filed a letter with the Federal Energy Regulatory Commission (FERC) blasting a plan to boost capacity at two existing compressor stations along the Iroquois Gas Transmission System pipeline. DEC says more natural gas flowing along the pipeline (desperately needed in both New York City and in New England) will cause more mythical global warming and therefore FERC should reject the request. How sad. How intellectually bankrupt.
Mariner East 2 (ME2) Pipeline is the gift that keeps on giving…for the Pennsylvania Dept. of Environmental Protection (DEP). The DEP keeps assessing fines for alleged construction violations that happened a year or more ago. This time the DEP has fined ME2 for supposed violations happening in early 2020 in four Pennsylvania counties: Blair, Cumberland, Juniata, and Lebanon. The problems were “inadvertent returns” of drilling mud in several swamps (“wetlands”) and creeks. Yes, ME2 is once again up Snitz Creek…
Epsilon Energy concentrates most of its effort on the Marcellus in Susquehanna County, PA. Epsilon doesn’t typically do its own drilling. The company joint venture partners with (gives money to) other companies, like Chesapeake Energy, and the other company typically does the drilling. Epsilon issued its second quarter update last Thursday. The company’s Marcellus net gas production averaged 27.6 million cubic feet per day (MMcf/d) in 2Q21, compared to 30.6 MMcf/d of net gas production in 2Q20 (a 10% decrease). However, revenues were $7.1 million in 2Q21, compared to $6.3 million in 2Q20 (a 13% increase).
OTHER U.S. REGIONS: El Paso natural gas pipeline segment shut Monday after deadly blast; NATIONAL: IPAA joins API, other oil & gas trade associations in lawsuit over illegal federal leasing ban; Natural gas price forecast – natural gas shoots straight up in the air.