Chesapeake Energy | Energy Companies | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA
New Pipeline Permit Rules Delay Landowner Royalties in PA
A new set of rules governing pipeline construction permits issued by the U.S. Army Corps or Engineers is causing extreme delays in getting gas from wells to market according to Chesapeake Energy. The new rules have turned what was an average 45-day process to file paperwork into a 300-day process.
The bottom line is that wells that are drilled and completed sit idle because gathering pipelines aren’t being built to them, and consequently landowners are not receiving royalty checks.
Read More “New Pipeline Permit Rules Delay Landowner Royalties in PA”
The New York Department of Environmental Conservation (DEC) leased 19,000 acres of state forestland to Chesapeake Energy and Fortuna Energy (now Talisman Energy) in 2006 to allow gas drilling. The deal provided state coffers with $9 million and the promise of 12.5 percent royalties on any gas produced. Those leases are due to expire Nov. 15 of this year, but Chesapeake has let the DEC know it believes the leases for its share (15,472 acres) should be extended, a legal phrase called force majeure, because of the moratorium that has been in place since 2008 on hydraulically fractured gas drilling. In a letter to the DEC, Chesapeake implied they will sue the state to extend the lease agreements if the state does not willingly agree to an extension.
Those opposed to Marcellus drilling in New York and Pennsylvania continue to use the court system in an attempt to either delay or outright ban drilling. The latest instance came just yesterday with a lawsuit filed in federal court in New York:
Canadian Stephen Murgatroyd has penned a sterling guest column in the Ponoka News (Alberta, Canada) on the subject of oil, natural gas and renewable energy. The column refutes the notion that fossil fuels, in particular oil, have reached their “peak”—the idea that we have reached a situation where we are using more oil and natural gas in the world than can be found in new reserves—and that we will run low or run out in the not-too-distant future (perhaps a generation or two from now).
The kick-off meeting for Maryland Gov. Martin O’Malley’s recently appointed Marcellus Shale Advisory Commission happened yesterday at Rocky Gap State Park in western Maryland. It was the first meeting in what will be a three year process—a final report from the Commission is due in August of 2014. Such a long delay puts Maryland at the back of the pack for Marcellus shale drilling (
Even though the New York Times’ own public editor has written two articles criticizing the Times for its slanted and inaccurate coverage of the natural gas drilling industry (
Just last week, MDN wrote about New Martinsville, WV enacting a Marcellus drilling ban (
Pittsburgh City Councilman Doug Shields, who will soon be leaving office, is staunchly anti-drilling. He led the successful effort to have hydraulic fracturing and shale gas drilling banned in the City of Pittsburgh. The ban was enacted by City Council last November. Now that Mr. Shields has landed on the happy shores of no drilling, he wants to burn the ships to ensure future Council members can’t undo all of his good work. His method? Amend the City’s Home Rule Charter to permanently ban drilling anywhere in the city limits.
Texas-based GreenHunter Energy, Inc. announced they’ve purchased acreage in West Virginia where they will establish a facility to treat and dispose of fracking wastewater. Part of GreenHunter’s plan includes disposing wastewater using an existing injection well with plans for additional injection wells. The press release (in full below) does not mention the exact location for the new facility and injection wells.
On May 31 of this year, NY Attorney General Eric T. Schneiderman filed a lawsuit in federal court seeking to force the federal government “to commit to a full environmental review of proposed regulations that would allow natural gas drilling – including the potentially harmful "fracking" technique – in the Delaware River Basin” (
The U.S. Department of Energy is funding a number of research projects to help find ways to extract more energy from unconventional oil and gas resources while reducing environmental risks. The DOE grants amount to $12.4 million.