Seneca Sells California Oil Drilling to Concentrate More on Marcellus
National Fuel Gas Company (NFG), headquartered in Buffalo, NY, is the only fully integrated energy company operating in the Marcellus/Utica, by which we mean NFG is a driller (Seneca Resources), a midstream/pipeline company (Empire Pipeline), and a downstream end-user via its local distribution company (LDC), otherwise known as the local gas utility company (National Fuel). Little known fact: NFG’s Seneca Resources subsidiary owns an oil drilling operation in California. But not for much longer…
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An interesting case recently decided by Ohio’s Fourth District Court of Appeals has a significant impact for both surface landowners and drillers. The case is Zimmerview Dairy Farms, LLC v. Protégé Energy III LLC and establishes, under Ohio law, that a general release of damages contract (typically signed by landowners when they lease land for drilling or pipelines) does not release a driller or pipeline company from its ongoing obligation to remediate (fix) and restore damage to a landowner’s property.
As we told you last week, Energy Transfer, during its first quarter update, spoke about the now-completed Mariner East pipeline system that flows NGLs, including ethane, propane, and butane, from eastern Ohio and southwestern Pennsylvania all the way to southeastern PA and the Marcus Hook terminal (see 
In December, Tennessee Gas Pipeline (TGP), a subsidiary of Kinder Morgan, filed a proposal with the Federal Energy Regulatory Commission (FERC) to implement a “responsibly sourced natural gas (RSG) supply aggregation pooling service” at select locations across the TGP system (see 
LNG seems to be the word on everyone’s lips these days–everyone in the oil and gas space, that is. Two weeks ago TC Energy (formerly TransCanada), a huge midstream/pipeline company, issued its first quarter update and held a conference call with analysts. We’re just now learning about some of the chatter coming from that update–very interesting chatter. LNG was a hot topic–flowing more molecules, especially Marcellus/Utica molecules–to LNG export facilities along the Gulf Coast. TC Energy CEO Francois Poirier said during a conference call that roughly one-quarter (25%) of all the molecules that flow to U.S. LNG export facilities get to those facilities by traveling through TC’s pipelines.
Sometimes U.S. Joe Manchin from West Virginia makes us nervous. He’s done great work in blocking Joe Biden’s radicalized agenda to destroy fossil energy by blocking the Build Back Worse program Biden and the Dems desperately wanted (saving the country from complete ruin with runaway hyperinflation). But then we read about Manchin tinkering with the idea to assess a tariff on foreign imported goods, like steel and cement, that are made in countries (like China) that don’t give a flip about environmental controls. Supposedly such a tariff would encourage those countries to use more natural gas, or encourage more American manufacturing of those goods (because our plants use clean natgas). We’re not sure what to make of Manchin’s efforts.
MARCELLUS/UTICA REGION: American Energy announces Nicholas S. Haden as its CCO; NATIONAL: OPEC antitrust effort revived by USA Senate; U.S. shale swings from losses to record cash flows; Natural gas house of the year: Macquarie; INTERNATIONAL: Russia may completely redirect gas exports from Europe to Asia.