OH Dem House Member Proposes OH Version of PA Impact Fee
Every now and again an elected Democrat surprises us. Such is the case with Ohio State Rep. Jack Cera, Democrat from Bellaire (Belmont County), OH. In December of last year, Rep. Jack Cera was peddling the party line that Ohio needs to raise its severance tax, and we took him to task for it (see Don’t Know Jack: Politician Lobbies for High OH Severance Tax). However, Jack has seen the light. Don’t get us wrong, he’d still vote for a high severance tax in a heartbeat (zebras can’t change their stripes). But Jack has wised up, just a bit. Instead of working for a high severance tax that isn’t going to happen any time soon, Jack is now proposing to reallocate the existing severance tax under a different formula. In House Bill 540 (full copy below), Jack wants to funnel more money to those communities–in his district, of course–that are actually affected by shale drilling. Makes sense that communities with trucks lumbering over their roads, and more emergency services being used, and more strain on the local county clerk’s office, should see more of the tax revenue come to them to offset those impacts. In other words, Jack is proposing a system pretty much like what former PA Gov. Tom Corbett (a Republican) set in place in the Keystone State: an impact fee. See–Democrats can learn!…
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Last December Pennsylvania’s felony-indicted Attorney General, Kathleen Kane, brought a lawsuit against Chesapeake Energy, Anadarko and Williams accusing them of, among other things, royalty fraud (see 
Every now and again it’s fun to delve into some of the technical aspects of drilling a Marcellus (and Utica) Shale well. We pick up on some of those particulars from a survey conducted by Hart Energy. Hart surveyed Marcellus and Utica drillers and found that, unsurprisingly, what has worked continues to work: When a Marcellus driller drills and fracks a well, the driller uses slickwater and up to 11 million pounds of white sand. What IS surprising to learn is that Utica drillers who had favored ceramic beads instead of sand are moving away from using ceramic beads and toward the Marcellus tried-and-true slickwater with sand approach. Here’s a few more interesting tidbits, including the fact that Halliburton is king of refracks in the Marcellus…
There are precisely two counties in all of the State of Maryland that contain Marcellus Shale deposits under them–Garrett and Allegany counties, in the far western tip of the state. Maryland is currently under an idiotic temporary ban (see 
The reason the price of natural gas is so low, as we’ve long pointed out, is simple economics. Supply and demand. We have a steady-to-slightly-increasing demand, but we have a whole boatload of new supply–thanks to the miracle of hydraulic fracturing. How does this supply/demand imbalance get corrected? You either need more demand, or less supply. We can assure you the less-supply thing ain’t happenin’. That leaves more demand. Yes, there is some interest from other countries who want our cheap natural gas. But let’s face it–we need to create more demand right here at home. Will that happen any time soon? Perhaps. We’d long hoped that natural gas vehicles would come along to dramatically increase demand of our domestic gas. So far, that hasn’t happened. NGVs haven’t taken off. But there is one source that can’t seem to get enough natgas: electric power generation. Coal plants are shutting down at an alarming rate, thanks to Obama’s war on coal. Nuclear plants are also shutting down because they can’t compete with cheap natgas. The fantastic trend recently has been the planning and building of new natgas-fired electric plants. Will demand for natgas-fired electricity continue to grow? For a partial answer to that, we turn to the number crunchers at our favorite government agency, the U.S Energy Information Administration…
Both Energy Transfer Equity (ETE) and Williams yesterday issued statements about their proposed/impending merger that say Form S-4 filed with the Securities and Exchange Commission (SEC) has been ruled “effective.” As we so often point out, we’re not Wall Street wizards. From what we can determine, an S-4 is a filing between companies that propose to merge. The SEC is (we think) saying that the proposed stock swap between ETE and Williams can move forward, when and if the merger closes. That is, the SEC is cool with the proposed plan to merge. ETE points out there are still roadblocks to such a merger, and Williams continues to press several lawsuits to force ETE into the merger they (ETE) wanted in the first place. Below we have yesterday’s statement about the S-4 along with ETE’s continued “but but but” statement. We also include some interesting and insightful analysis from a writer on the Seeking Alpha investors website…
In February Shell completed the merger with/purchase of BG Group–the largest such megamerger since Exxon bought Mobil in the 1990s (see 
Last July MDN told you about a group of so-called religious leaders from the Boston area who have taken to worshiping Mother Earth (the creation) instead of worshiping the Creator (see 
The climate changer crazies were in full regalia outside of the Dallas, TX facility where Exxon Mobil was holding its annual meeting yesterday morning. Sporting signs that said “Keep It in the Ground” and “System Change not Climate Change” (which was from “an ecosocialist coalition”) and many others, these nutjobs shouted at investors filing in to the facility. Christopher Helman, a reporter from Forbes, was on hand–both inside the meeting and outside to talk with the crazies (give that man hazard pay!). Helman files this report…
As MDN has previously pointed out, even during the downturn in the oil and gas market, there is at least one sub-sector that’s expanding: wastewater. Long after a well is drilled and fracked, once it begins producing, that well will continue to produce not only natural gas and/or oil and other hydrocarbons–it will also produce water from the depths. We’re not talking about groundwater or aquifers that sit several hundred feet down. Those water sources are well-protected by well casing. There is also abundant supplies of mineral-laden water deep in the earth that comes out of the borehole for years after a well is drilled. When drillers were sinking holes as fast as they could–and fracking them–that salty/minerally water from the depths (often called brine or saltwater) would be recycled and used for more drilling. But when there’s little or no drilling–what do you do with all that brine/wastewater? You still have to get rid of it. So the wastewater hauling/recycling/disposal industry is actually expanding. BlueJack Energy Solutions is one such new company, begun to service several shale plays including the Marcellus/Utica. Yesterday BlueJack announced it has received $100 million in investment capital from Energy Spectrum Partners–to help get the company launched quickly and into a full gallop…
In April MDN brought you the news that Mountaineer NGL Storage launched a non-binding open season for drillers who want to reserve storage capacity in a new underground storage facility to be built in Monroe County, Ohio, near Clarington, along the Ohio River (see 
In December MDN called attention to a newly published study by researchers at Dartmouth College (see