PA Senator Predicts Chesapeake Energy Goes Bankrupt Within a Year
The failed Governor of Pennsylvania, Tom Wolf, “100 percent guarantees” an oil and gas severance tax will be part of next year’s state budget. That’s the claim made by Wolf’s inept Policy Secretary, John Hanger, last Friday. What hubris. Wolf and Hanger can’t even get THIS YEAR’S budget done! Nearly six months late!! And already they’re trying to grab money for next year. Democrats have a heroin-like addiction to OPM–Other People’s Money. (Coincidentally, when John Hanger ran for governor himself, he ran on a platform of legalizing marijuana, see Pass One Last Joint for John Hanger.) The problem (for Wolf and Hanger) is this: the shale industry in PA is in retrograde. It’s receding, not expanding. Drilled wells are either not being hooked up in the first place, or they’re being turned off, called being shut-in. When that happens, less gas flows–less gas to tax. Another lesson Dems never learn: You ALWAYS get less of what you tax, not more. It’s simple economics. A Republican State Senator from York, PA (Wolf’s home town) wrote Wolf a little love letter to school him in the economic realities of his bogus claim that “next year” he’ll get a severance tax. State Sen. Scott Wagner predicts, among other things, that Chesapeake Energy, PA’s largest natural gas producer, will file for bankruptcy within a year…
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In a somewhat complicated scam, a former landman for XTO Energy, Steven E. Fisackerly (33 years old) defrauded XTO out of more than $1 million with fake lease deals in the West Virginia Marcellus Shale region. He cooked up bogus documents and passed them off as real, pocketing commissions. He even worked with a supposed/fake mineral rights owner to pocket kickbacks from lease payments sent to the fake rights owner. It was elaborate and convoluted–and ultimately stupid. Fisackerly plead guilty in May and will enter prison on January 4. His sentence? Pay back more than $1 million he defrauded from XTO, and serve 63 months (over 5 years) in federal prison…
Yesterday National Fuel Gas Company, the utility giant headquartered in Buffalo, NY and parent of Marcellus driller Seneca Resources, announced that Seneca has partnered up with energy investor IOG Capital to essentially fund Seneca’s Marcellus drilling program in Elk, McKean and Cameron counties in north-central Pennsylvania. The outlines of the deal are thus: IOG will provide the cash and Seneca will do the drilling on up to 80 Marcellus wells on 10,500 acres in the Clermont/Rich Valley area of PA. IOG will get an 80% working interest in the wells. In addition to drilling the wells, National Fuel’s midstream subsidiary will connect the wells and get the gas to market. What this deal means is that Marcellus drilling activity in the Clermont/Rich Valley area will pick up over the few years. Here’s the details of this somewhat complicated deal…