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New Resource for WV Landowners on Leasing for Pore Space

In February, MDN brought readers the news that Tenaska, one of the largest privately operated companies in the U.S., is building a carbon capture and sequestration (CCS) hub spanning tens of thousands of acres in Pennsylvania, Ohio, and West Virginia (see Landmen Knocking Doors in PA, OH, WV to Sign for CCS, Pore Rights). Landmen are “knocking on doors again” in all three states, looking to sign up landowners to store carbon dioxide deep underground. The West Virginia Surface Owners’ Rights Association (WVSORA) has done some research and is offering its advice to landowners about leasing pore space.
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Baker Hughes U.S. Rig Count Loses 7 @ 622, M-U Even @ 44

Last week, the Baker Hughes rig count lost seven rigs after gaining three rigs the week before. The count went from 629 active rigs two weeks ago to 622 last week. The national count has consistently stayed between 620 and 625 (or one or two above or below that range) since last October until recently, when it went higher for a few weeks. But now it’s back in the same long-term range. The Marcellus/Utica remained the same last week with Pennsylvania at 24 rigs (the most since last June), Ohio with 12 rigs, and West Virginia with 8 rigs. The M-U combined is running 44 rigs, which it has run in four of the last five weeks.
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Dog Research Debunks Link Between Fracking and Cancer

Last year, University of Pittsburgh (Pitt) researchers released three studies commissioned by the State Dept. of Health supposedly investigating whether or not there is a connection between shale drilling and childhood diseases, including cancer (see Pitt Releases Fake Research, Claims PA Fracking Linked to Kid Cancer). It was fake research, as we pointed out in a follow-up post (see Serious Flaws Revealed in Pitt’s So-Called Fracking/Cancer Studies). A new set of researchers with access to real data about cancer rates in dogs decided to see if a connection exists between dogs with cancer and their nearness to fracking operations. The new research finds no such correlation.
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Sale of East Ohio Gas Co. from Dominion to Enbridge Now Complete

Last September, Dominion Energy and Enbridge co-announced that Dominion had agreed to sell the company’s remaining natural gas local distribution companies (LDCs) that Dominion owns to Enbridge for $14.0 billion, which includes $9.4 billion in cash plus the assumption of debt (see Dominion Energy Loses Mind – Sells Remaining LDC NatGas Businesses). The deal includes three LDCs — The East Ohio Gas Company, Public Service Company of North Carolina, and Questar Gas Company (along with Wexpro Company). The first of the three, the East Ohio Gas Company, officially changed hands yesterday. Of the $14 billion being spent for all three, East Ohio Gas represents $6.6 billion — roughly half.
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Rhode Island Neighbors Prefer Gas Outages to Permanent LNG Plant

In 2019, the Rhode Island Energy Facility Siting Board waived a licensing requirement for a “temporary” LNG storage facility in Portsmouth to prevent another gas outage episode from happening again (see With “Backs Against Wall” Rhode Island Approves LNG Facility). Board members complained they had no choice, that “we have our backs against the wall” and “people’s lives could be in danger” if they didn’t approve the LNG facility. The “temporary” facility has remained operating since that time. Rhode Island Energy recently submitted a proposal to make the facility permanent instead of an ongoing temporary installation. The people who live nearby and for whom it keeps them warm in the winter oppose the plan. They prefer to freeze.
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Maine U-Turn: Bill Banning New Gas Hookups Changed to Study Issue

In January, we told you the State of Maine was actively considering a new law, L.D. 2077, that would prohibit natural gas companies from charging ratepayers for the construction and expansion of gas service mains and gas service lines beginning Feb. 1, 2025 (see Maine Debates Democrat Bill to Limit New Natural Gas Customers). Under the bill, business and residential customers who seek new gas mains and service lines would pay the entire cost to hook up for the service themselves. In other words, nobody would pay to connect (far too expensive), resulting in a de facto ban on connecting new customers for natural gas service. However, the bill’s language has been altered drastically to remove that provision and instead requires three different, separate studies of the issue.
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DRBC’s Disappointing Executive Director Steve Tambini is Retiring

DRBC Executive Director Steve Tambini

Wow, does time fly! Exactly ten years ago, MDN reported that the Executive Director of the Delaware River Basin Commission (DRBC), Carol Collier (a hardened leftist), was retiring. In her place, the DRBC had selected Steve Tambini, then the vice president of operations at Pennsylvania American Water (see DRBC Selects Steve Tambini as New Leader, Enviro Groups Unsure). Big Green was unsure of Tambini and concerned about how he would lead the commission, which gave us hope he might be a good change. As it turned out, Big Green had nothing to worry about. Tambini turned out to be a patsy for their cause.
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PA DEP Claims Progress in Reducing Out-of-Control Permit Backlog

Permitting in Pennsylvania, especially permits overseen by the Dept. of Environmental Protection (DEP), has been broken for years. A Chapter 102 Erosion and Sedimentation permit sometimes takes two, three, or even six to eight months for approval — instead of the law-mandated 14 days. It got so bad that in the fall of 2019, PA State Sen. Gene Yaw introduced a bill to allow third-party reviews of these permits in an attempt to speed it up (see PA Sen. Yaw Intros Bill to Allow 3rd Party Review of Erosion Permits). In June 2023, then-DEP Sec. Rich Negrin told lawmakers at a Senate hearing that he was making good progress on his 10-point plan to speed up permits and cut down on red tape (see DEP Sec. Negrin Focused on Cutting Red Tape, Speeding New Permits). PA Gov. Josh Shapiro introduced a “money-back guarantee” on slow permits last November, which we exposed as bogus (see Shapiro’s DEP Money-Back Guarantee for Permit Delays is Bogus). The DEP says thanks to the guarantee and other changes, the agency is getting much better with turnaround times for permits.
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OFS Co. with 75 Jobs Moves from Washington, PA to Chester, WV

Here’s something you don’t read about every day. An oilfield services company, Heavy Iron Oilfield Services, recently moved from its birthplace (founded in 2011) in Washington (Washington County), PA, across the border to a new location in Chester (Hancock County), WV. Washington County is a hotbed of drilling activity in Southwestern PA. But then again, Hancock County sees a lot of drilling, too. The reason for the move? Easier access to multiple job sites in the tri-state area and a pool of qualified workers to expand the business.
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Utilities Charge More for “Certified Gas” – Will Consumers Pay It?

Every major (and most minor) drillers in the Marcellus/Utica have, over the past couple of years, signed on to one or more of the responsible gas certification authorities. Responsible or “certified” or “differentiated” gas is gas that is produced with lower methane emissions as certified by an outside organization like Project Canary, MiQ, or Equitable Origin. Given certification reviews cost big money, you would think (hope) there are actually customers on the other end who *want* to buy the certified natgas, and may be willing to pay a premium to get it. Utility companies are some of those customers who want to buy certified gas in order to comply with various mandates to lower emissions. But certified gas comes at a price — a price that gets passed on to end-user customers. How do they feel about paying more for certified gas?
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Low Prices Bite – U.S. NatGas Producers Drop Output 7% Past Mo.

Earlier this week, MDN told you that EQT, the country’s largest natural gas producer, had implemented an immediate cutback on natural gas production of 1 billion cubic feet per day (see Boom! EQT is Curtailing 1 Bcf/d of Gas Production Effective Now). Other M-U companies have announced similar reductions, including a 25% reduction by Chesapeake Energy (see Chesapeake Dropping 1 Rig in Marcellus as it Waits to Merge with SWN) and a 6% reduction by Coterra Energy (see Coterra Energy Slashing Marcellus Budget 55%, Production by 6%). Antero Resources said it will spend 26% less on drilling this year (see Antero 4Q – Production Up 6%, Profits Down 87%, 21 New Wells). So, with all of these cutbacks, when might we see a slowdown in gas production? Actually, it’s already happening.
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Report Claims Associated Gas Cheaper to Produce than M-U Dry Gas

Bayou City Energy (BCE), an E&P-focused private equity firm, yesterday published a VERY INTERESTING white paper titled “Natural Gas Producers: Why Don’t You Stay?” (full copy below). The thesis of the white paper (or report) is that drillers in gas-focused plays can’t produce natural gas as cheaply as oil producers who produce gas as a side benefit (called associated gas). Therefore, gas-focused drillers need to drastically, immediately change their capital allocation strategies (spend less on new drilling, for now). The author also makes the case that gas-focused drillers should look for opportunities to merge with a “liquids-rich producer.”
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MVP Protesters Reveal Themselves as Anti-Semites

On Tuesday, we reported on yet another illegal protest that happened Monday, blocking work for a time on the last bits of the Mountain Valley Pipeline (see 2 “Protesters” Locked to Car Block Road to MVP Construction Site). Two protesters locked themselves to an old junk car and had to be removed, a process that took police hours. Both were charged with misdemeanors. We didn’t have much in the way of information. Fortunately, the protesters themselves issued a full report on the incident, and what we saw in a photo accompanying that report shocked us (but perhaps should not have). These people are hate-filled anti-Semites.
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Woke SEC Adopts Modified Version of Climate Disclosure Reg

In March 2022, the U.S. Securities and Exchange Commission (SEC), corrupted by the Bidenistas, said it would begin to force all publicly traded companies to disclose their so-called greenhouse gas (GHG) emissions and the imaginary climate risks their businesses face (see SEC Votes to Force Public Companies to Disclose Mythical GHG Risks). The original plan called for publicly traded companies to disclose their own direct (“Scope 1”) and indirect (“Scope 2”) GHG emissions. It would also require companies to disclose greenhouse gases generated by suppliers and partners, known as Scope 3 emissions. Yesterday, the SEC voted 3-2 (three Democrats vs. two Republicans) to issue a final regulation that will soon go into effect. The final version dumped Scope 3 emissions but kept Scopes 1 and 2 — in a massive 886-page regulatory rule.
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OH Drillers Win Case Against Landowners re Drilling Deeper

Back in the summer of 2020, MDN told you about a lawsuit brought by an Ohio rights owner called TERA, an organization that owns the royalty rights for a number of leases with wells in Belmont County, OH, drilled by different producers, suing the producers for drilling into the Point Pleasant shale layer when the lease only mentions the Utica layer (see OH Landowners Sue Rice, Ascent, XTO, Gulfport for Drilling Too Deep). The case took nearly four years and hundreds of filings by both sides, but last week, a jury found in favor of the drillers (the defendants) and against the rights owner (the plaintiffs). This case likely has far-reaching consequences for landowners and drillers in Ohio.
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Chesapeake HSR Paperwork to Buy Southwestern Pulled & Refiled

In early January, Chesapeake Energy and Southwestern Energy, two companies with major assets in the country’s two leading gas plays — the Marcellus/Utica and the Haynesville — announced an agreement to merge into one company (see Deal is Done! Chesapeake & Southwestern Announce $7.4B Merger). Such a merger would create the country’s largest natural gas producer, bypassing EQT for the top slot. The deal is supposed to be completed in the second quarter of this year, but that all depends on a review by the Federal Trade Commission and Dept. of Justice (populated with Bidenistas). There’s already rumored to be a wrinkle in the review process. Not a setback, just a wrinkle, a slight delay, so far.
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