Shell Asks Court to Toss Big Green Cracker Suit: DEP Already Acted
Shell Chemical Appalachia wants a federal judge in Pittsburgh to throw out a lawsuit Philadelphia-based Big Green group Clean Air Council filed more than three years ago over air emissions at Shell’s ethane cracker plant in Monaca (Beaver County), PA. Shell’s main argument is simple: the PA Department of Environmental Protection (DEP) has already gone after Shell for the very same violations, not once but twice, collecting nearly $25 million in penalties and “community” payments. Federal law, says Shell, doesn’t let a private group pile on when the state is already on the case. Shell also argues the Council never showed that a single member was actually harmed. Shell filed its motion last Friday, Oct. 9, and the Council has agreed to pause the case while the judge decides. Read More “Shell Asks Court to Toss Big Green Cracker Suit: DEP Already Acted”
Here’s a case that slipped under our radar, and it shouldn’t have. On Monday, Nov. 9, the U.S. Supreme Court will hear arguments in Hoffmann v. WBI Energy Transmission, a fight between a group of North Dakota ranchers and an interstate pipeline company. The question sounds dry: when a pipeline company uses eminent domain to take land, does state law or federal law decide how much the landowner gets paid? However, the answer could put money in, or take money out of, the pockets of landowners in Pennsylvania and Ohio. Yesterday, the Court agreed to let the Trump administration take part in the argument, on the side of the pipeline company. 
Here’s a story you won’t read anywhere else. Strata Petroleum, LLC buys oil and gas mineral rights, and it has quietly sold its mineral interests in 116 producing Ohio Utica wells to Dallas-based Rising Phoenix Royalties. The deal closed effective October 5. Strata managing partner Justin Wainwright reached out to MDN with the news. He won’t disclose the exact price, but he told us it was “well into 7 figures.” The wells are operated by two of the biggest names in the Ohio Utica, EOG Resources and Ascent Resources, and they’re spread across six of the play’s core counties. Strata says it isn’t leaving the region. It plans to keep buying minerals across Ohio, West Virginia, and Pennsylvania. 
PJM Interconnection, the outfit that runs the electric grid for 13 states (including PA, OH and WV) plus DC, has picked its first three projects for a brand-new fast lane to get big power plants hooked up to the grid. Two of the three are giant battery projects from ENGIE. The third is the one that caught our eye: LS Power plans to add 455 megawatts (MW) to its existing Hunterstown natural gas-fired power plant near Gettysburg, in Adams County, PA. By MDN’s math, that expansion will need roughly 60 million cubic feet of natural gas per day once it’s up and running. Guess where that gas is coming from? 
Last Wednesday, MDN told you about the Allegheny County Board of Health’s latest move against shale drilling (see 
The rest of the country is heading into winter swimming in natural gas. Production is at record highs, storage is above average, and Henry Hub January futures are trading below $4. Yet traders are paying more than $20 per MMBtu for gas delivered into parts of New England in January. That’s more than five times the national benchmark. The problem isn’t a shortage of gas. It’s a shortage of pipe. New England sits just a few hundred miles from the Marcellus Shale, one of the most prolific gas fields on the planet, but more than a decade of blocked pipeline projects means it can’t get enough of our gas when the weather turns cold. 
Finally, a little justice. An international arbitration panel ruled that Venture Global (VG) breached its contract with Portugal’s Galp by delaying the declaration of its Calcasieu Pass LNG export plant in Louisiana as “commercially operational.” That official start date, called COD (commercial operation date), is what triggers deliveries to long-term customers. For more than three years, VG shipped cargo after cargo of LNG from Calcasieu Pass, much of it sold on the sky-high spot market after Russia invaded Ukraine, all while insisting the plant was still in its “commissioning” (startup) phase. Galp, which signed up in 2018 to buy 1 million tonnes per year (MTPA) of LNG for 20 years, waited. Galp now joins BP as the second customer to beat VG in arbitration. The catch? Galp’s payday is capped at $170 million, and the check won’t be written until after a damages hearing in 2027 or 2028. 
One shoe has dropped. Yesterday (Oct. 8), Devon Energy announced it is selling its entire Eagle Ford position in South Texas to Houston-based Crescent Energy for $4.2 billion in cash. It’s Devon’s first big asset sale since it swallowed Coterra Energy in May. It’s also not the sale most of us expected a few months ago. The old Cabot Oil & Gas Marcellus position in Susquehanna County, which Devon now owns, stays put. For now. The question we keep hearing from Northeast PA landowners: Is the Marcellus next? Below we read the tea leaves. 
The Natural Gas Supply Association (NGSA) released its 26th annual Winter Outlook yesterday, and the bottom line is music to the ears of anyone who pays a heating bill: NGSA sees “downward market pressure” on natural gas prices this winter compared to last. Henry Hub futures for November through March average $3.43 per MMBtu, down $1.08 (23.9%) from $4.51/MMBtu realized last winter. That’s less happy news for landowners hoping for fat royalty checks. But buried on page 5 of the report is a nugget every MDN reader should notice: last winter, while nearly every other U.S. shale basin grew, Marcellus and Utica production actually shrank. The reason? Pipes. Or rather, the lack of them. 
Big Tech has a new problem, and it isn’t computer chips. It’s the neighbors. In Hazle Township (Luzerne County, PA), a data center developer offered $10,000 to every one of the town’s 4,500 households if they’d just let the project go forward. Most residents said “no thanks,” the township said no, and the developer is now suing. A week later, Amazon announced it will spend more than $1 billion over five years in communities that host its data centers, in an effort to cool a national backlash. Here’s why that matters to anyone who makes a living from Marcellus/Utica gas. 
A Pennsylvania House committee held a hearing on Monday about spreading brine from conventional oil and gas wells on township dirt roads. Former Department of Environmental Protection (DEP) Secretary David Hess testified and proposed a fix aimed squarely at Marcellus drillers: make the shale industry recycle all brine from Pennsylvania’s conventional wells, “at no cost to conventional well owners.” Shale isn’t the problem here, but it could end up with the bill. 
Expand Energy, the largest natural gas producer in the country (born from the 2024 merger of Chesapeake Energy and Southwestern Energy), is going all-in on artificial intelligence (AI). Recently, tech consulting firm Thoughtworks announced that Expand has hired it to build AI capability across the entire company. Not just out in the field, but in the office and on the gas marketing desk, too. Expand wants a working AI tool in “production” (i.e., actually being used, not just tested) by the end of this year. That’s about 12 weeks from now! This is not Expand’s first AI rodeo. Back in January, Expand signed a deal with Baker Hughes to put AI-powered software on thousands of its Marcellus, Utica, and Haynesville wells. 
Here’s a head-scratcher for you. The Henry Hub spot (physical, not futures) price, the national benchmark for natural gas down in Louisiana, closed yesterday at $3.155 per MMBtu (million British thermal units, roughly the same as 1 Mcf, or a thousand cubic feet). Up here in the Marcellus/Utica, the very same molecule of gas sold for 88.5 cents. That’s not a typo. Our gas traded at a $2.27 discount to Henry Hub, fetching just 28 cents on the dollar. Why? The short answer is the same one we’ve given for 15 years: not enough pipelines. 
The radical green groups trying to ban new Marcellus/Utica drilling in Pennsylvania through the back door haven’t gone away. They push shale well “setbacks” out to as much as a mile. Yesterday (Oct. 7), a coalition led by the Clean Air Council and Environmental Integrity Project (EIP) marked the two-year anniversary of its rulemaking petition and pushed in Harrisburg, calling on the Shapiro administration to act. The Department of Environmental Protection (DEP) still plans to deliver its recommendation to the Environmental Quality Board (EQB) by the end of this year. The antis are making noise. We need to make more.