Industrywide Issues

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    OH Attorney Predicts DMA Ruling to Come Soon, Settle Now

    David J Wigham
    David J Wigham

    MDN has been reporting on the Ohio Dormant Minerals Act (DMA) for years (see Video: OH Lawyers Explain Dormant Minerals Act & Impact on Utica). In a nutshell, there are two DMAs in Ohio–one passed in 1989 that went into effect in 1992, and another in 2006 which added certain additional procedural requirements to the 1989 version. The DMA in its various versions provides for mineral rights that had previously been separated from surface rights to transfer back to the surface owner under certain conditions. The problem, for drillers and for landowners in Ohio, is in knowing which set of DMA rules to use (1989 or 2006) in determining who owns the mineral rights. A number of DMA cases have gone before the Ohio Supreme Court. Some of the minor cases have been decided (see Ohio Supreme Court Rules in Important Dormant Mineral Act Case). However, most of the big cases remain stalled at the Supreme Court. That is, until now. Ohio attorney David Wigham (Roetzel & Andress law firm) says there are signs that the Supremes are about to release a massive, all-in-one-go ruling on the DMA. He says if landowners (and drillers) were waiting to see which way the wind will blow, they may want to settle now before the Big Decision comes down…
    Read More “OH Attorney Predicts DMA Ruling to Come Soon, Settle Now”

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    Open Season to Expand 2 Midwest Pipelines for More Marc/Utica Gas

    NGPL Chicago Market Expansion Project
    NGPL Chicago Market Expansion Project – click for larger version

    In October 2014 MDN told you about plans by Kinder Morgan subsidiary Natural Gas Pipeline Company of America (NGPL) to expand their Gulf Coast mainline pipeline from the Rockies Express Pipeline (REX) interconnection in Moultrie County, Illinois, to points north on NGPL’s pipeline system, called the Chicago Market Expansion Project (see Kinder Morgan Plans Chicago Pipeline Expansion for Marcellus/Utica). In March of this year, the Federal Energy Regulatory Commission (FERC) approved it (see FERC Approves Pipeline to Move More Marcellus/Utica Gas to Chicago). Kinder Morgan is also planning a second project called the Gulf Coast Southbound Expansion Project to send Marcellus/Utica (and other shale locations) gas to the Gulf Coast. Two days ago NGPL announced a non-binding open season–a period of time when drillers and others seeking capacity for each project–can register their interest in each project. NGPL already has customers signed up for the Chicago Market Expansion Project. This new open season is an attempt to see if there’s interest in expanding the Chicago Market Expansion project even more–and to register interest from drillers going the other way–to the south–via the Gulf Coast Southbound Expansion Project. The timing of the announcement is interesting. Observers theorize that Kinder Morgan is trying to make up for recently announced canceled Northeast Energy Direct (NED) pipeline project in New England (see NED is Dead – Kinder Morgan Suspends $3.3B New England Pipeline). Kinder won’t comment. Here’s the details on the new open season…
    Read More “Open Season to Expand 2 Midwest Pipelines for More Marc/Utica Gas”

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    OH Landowners Urge BLM to Proceed with Wayne Natl Forest Drilling

    Wayne National Forest
    Wayne National Forest

    As MDN told you last week, the Bureau of Land Management (BLM) is currently seeking public comments on a plan to allow drilling in Ohio’s Wayne National Forest, or WNF (see Another Baby Step in Fracking Ohio’s Wayne National Forest). WNF is a “patchwork” of public land scattered among private land. Some 60% of the mineral rights below WNF are privately owned. Those mineral rights owners have been denied the use of their property rights going on a decade. Ohio landowners are fed up with waiting for the federal bureaucracy to get off its rear-end and allow drilling. In response to the latest BLM call for public input, a group of Ohio landowners calling themselves LEASE–Landowners for Energy Access and Safe Exploration–praising the BLM for its favorable Environmental Assessment (EA) on WNF drilling, and calling on Ohio landowners to provide comments to the BLM during this period. LEASE is hoping a strong showing from Ohio landowners may push the groaning, creaking federal bureaucracy into action to allow drilling…
    Read More “OH Landowners Urge BLM to Proceed with Wayne Natl Forest Drilling”

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    PA-Based CELDF Looks for New Dupes in Meigs County, OH

    CELDF logoWe’ve written plenty in the past about the PA-based radical anti-drilling group called CELDF–Community Environmental Legal Defense Fund (see our CELDF stories here). CELDF seems to have a lot of success in tricking people in Ohio into believing they can pass a so-called Community Bill of Rights to ban fracking, injection wells, etc.–illegal under Ohio state law. When such legislation is passed and then gets challenged, it loses in court. Every time. And when private companies sue for damages, taxpayers end up footing the bill and the CELDF is nowhere to be found (see Anti Group CELDF Won’t Help Grant Twp Pay $1M Judgement). The CELDF is trying their trickery again–this time in Meigs County, OH and in the City of Waterville (in Meigs County). As Forrest Gump said: Stupid is as stupid does…
    Read More “PA-Based CELDF Looks for New Dupes in Meigs County, OH”

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    Marcellus/Utica Keeps Trailer Park Operator Busy AND Profitable

    UMH Properties logoWe occasionally write about a New Jersey-based real estate investment company, UMH Properties, Inc., because they keep buying trailer parks in the Marcellus/Utica with the express hope that drilling activity in the region will lead to high occupancy rates (see our UMH stories here). You might think with the rapid slowdown in drilling UMH’s strategy is in peril. But you would be wrong. Net income for the company was up 165%–from $718,517 in the first quarter of 2015 to $1,906,469 in 1Q16. How can that be? Samuel Landy, president and CEO of UMH, says that the abundance of cheap shale gas has improved the economic lives of people living in their trailer parks. He also said even though there’s less drilling, there’s more pipeline work going on and in those areas UMH’s trailer parks have strong demand. The future looks bright for UMH–thanks to hitching its wagon to the Marcellus/Utica…
    Read More “Marcellus/Utica Keeps Trailer Park Operator Busy AND Profitable”

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    EIA: By 2040 World Energy Use Goes up 48%, Fossil Fuels Provide 75%

    EIALet’s put this “keep it in the ground” and “we can use 100% renewables now” nonsense to rest, once and for all. Environmentalists–some of them well-meaning (some just stark raving mad) believe fossil fuels are evil and the cause of all sorts of problems. The opposite is true. Fossil fuels are what run this world, and without them, we’d be living in the Stone Ages again. Nothing points out the fallacy and fantasy of ridding ourselves of fossil fuels more than the International Energy Outlook 2016 (IEO2016), released yesterday by the U.S. Energy Information Administration (EIA). IEO2016 predicts that energy use across the planet will go up 48% from 2010 to 2040, based on their research. The fastest growing (percentage-wise) power source will be renewables. Yeah! But by the end of that 30-year period, fossil fuels will STILL be providing some three-fourths of all the earth’s energy needs. There is no escaping the fact that fossil fuels will be around, powering the planet, for the next 2-3 generations–minimum. Here’s what the EIA said yesterday…
    Read More “EIA: By 2040 World Energy Use Goes up 48%, Fossil Fuels Provide 75%”

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    TETCO Pipeline Up & Running Post-Explosion; Antis Exploit Accident

    Spectra blazeAn update on Spectra Energy’s Texas Eastern Transmission’s “Delmont Line 27” which exploded in Westmoreland County, PA on April 29 (see Texas Eastern Pipeline Explodes near Pittsburgh, Antis Celebrate). We previously told you that not only was Line 27 out of commission, so too were three other pipelines running through the same corridor, meaning 1 billion cubic feet of natural gas per day is not reaching certain mid-Atlantic markets (see Update on Spectra Pipeline Explosion Near Pittsburgh). The early evidence points to corrosion along welded seams, although the jury is still out and the exact cause may not be known for months (see Preliminary Guess on TETCO Pipeline Explosion Cause: Corrosion). That doesn’t stop antis from engaging in wild speculation and “I told you so” statements, as they are now engaged in. THE Delaware Riverkeeper, which opposed the expansion of horsepower/capacity at a compressor station close to the explosion, is now saying the increased flow rate through the pipeline caused the corrosion. Which all sounds reasonable–until you read the words “I can’t say for certain there is a cause-effect relationship between the increases in [compressor] horsepower and the pipeline explosion, but it is information that should be part of the public discussion about this incident and pipeline safety in general.” Translation: “We won’t let this crisis go to waste. It doesn’t matter what the real cause was, we’ll amp up this explosion in sympathetic anti-drilling news outlets like the Pittsburgh Post-Gazette and spread fear everywhere we can–so we can shut down natural gas in this country.” Below is an update from Spectra Energy that one of the four pipelines is now operating again, along with the latest attempt to demagogue and unfortunate accident with absolutely no evidence…
    Read More “TETCO Pipeline Up & Running Post-Explosion; Antis Exploit Accident”

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    Gov Cuomo Turns NY into Sacrifice Zone with Frack & Pipeline Bans

    Karen Moreau
    Karen Moreau

    Yesterday API (American Petroleum Institute) New York Executive Director Karen Moreau held a conference call with reporters to discuss the importance of investing in energy infrastructure in the Empire State. By the way, API New York used to be called the API New York State Petroleum Council. Moreau spoke about Gov. Cuomo’s reckless actions in banning shale drilling, and now in preventing an important pipeline project–the Constitution–from being built. She pointed out that New Yorkers pay an average of 50% more for our electricity than residents in other states–mostly because of lack of pipelines and infrastructure in the state. When everyone thought Cuomo was about to allow fracking in select counties on a trial basis, antis called those counties “sacrifice zones.” We’re going to borrow their own language and use it against them. Gov. Cuomo has turned upstate NY into one, big economic sacrifice zone–sentencing residents to a life of poverty and enslavement. Why? To appease the people who vote him into office every four years (mostly located in New York City). A quid pro quo. Here’s an update on what Moreau said yesterday to reporters…
    Read More “Gov Cuomo Turns NY into Sacrifice Zone with Frack & Pipeline Bans”

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    Latest Case of Duke U Bought & Paid “Research” by Park Foundation

    Duke logoIt’s good to know that “research” can still be purchased at the once-great Duke University. For years now the radical Park Park Foundation has been buying its research from a few select professors at a few select universities. One of the scientists for sale is Avner Vengosh, professor of geochemistry and water quality at Duke University’s Nicholas School of the Environment (see Duke Hit Piece on Shale Water Usage from Same Park-Sponsored Prof). Here’s how it works: Park funds Dr. Vengosh’s “research,” and he conveniently “discovers” all sorts of nasty things about shale fracking, publishing his “research” in obscure, peer reviewed journals. Mainstream media picks it up and runs it. Readers who only scan headlines get the impression fracking is evil. Mission accomplished for Park (another hit on fracking) and for Vengosh (another buck in his pocket). That’s how it works in the world of bought-and-paid-for fractivism. The latest is Vengosh’s claim that he found evidence of shale wastewater contamination downstream from a wastewater injection well in Fayette County, WV…
    Read More “Latest Case of Duke U Bought & Paid “Research” by Park Foundation”

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    Radical NJ Democrats Want to “Constitution” the PennEast Pipeline

    PennEast in NJ
    Click map for larger version

    Anti-drillers (most of them liberal Democrats) haven’t wasted any time in adopting Gov. Andrew Cuomo’s tactic of delay, deny and death. Antis in New Jersey took notice of how Cuomo first delayed, then denied the Constitution Pipeline stream crossing permits, effectively killing the project (see NY Gov. Cuomo Refuses to Grant Permits for Constitution Pipeline). The leaders of radical Big Green groups in NJ, including the New Jersey Conservation Foundation and the New Jersey Sierra Club, along with several Democrat members of the NJ legislature, want the state Department of Environmental Protection to deny permits for a different pipeline project–the PennEast Pipeline. Hey, if it worked in NY, why wouldn’t it work in NJ? Problem is, NJ has a Republican governor and the DEP is an executive agency. That won’t stop the antis from trying…
    Read More “Radical NJ Democrats Want to “Constitution” the PennEast Pipeline”

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    Sec. of Interior Calls “Keep it in the Ground” Protesters “Naïve”

    Sally Jewell
    Sally Jewell

    Sally Jewell, Obama’s Secretary for the Dept. of the Interior, has not endeared herself with anti-drilling zealots who inhabit (infest?) her own Democrat Party. Last week Jewell told a reporter that the “keep it [i.e. fossil fuels] in the ground” movement is “naïve” and there is NO WAY we will transition to 100% renewables any time soon. Oooo, harsh words! From an Obamadroid! One of the key issues, according to Jewell, is transportation. She said we don’t yet have solar-powered automobiles. And before someone embarrasses themselves to ask “What about electric cars?”…we’ll remind you that more than 70% of all electricity produced in the U.S. comes from burning fossil fuels. The electric in the battery of an electric car got there by burning coal and/or natural gas. If we “leave it in the ground” it won’t be long before you’re walking or riding horseback to get from point A to point B. You’d also have to give up television, radio and a host of other things powered by electricity. Unless you want to watch and listen when the sun is out. Here’s some tough words from Sec. Jewell for the crazies in her own party…
    Read More “Sec. of Interior Calls “Keep it in the Ground” Protesters “Naïve””

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    District Court Judge Tosses PA Landowner’s Lack-of-Drilling Case

    court-gavel.jpgThis is the tale of landowners who negotiated a lease without consulting a qualified oil and gas attorney, and later regretted the decision. In 2008 the owners of a small hunting and fishing camp in Tioga County, PA negotiated and signed a lease with East Resources, which was later sold to SWEPI (i.e. the shale drilling arm of Shell). The lease, so the landowners thought, guaranteed that 11 wells would be drilled on the 240-acre property, and that a pipeline would be used to flow gas only from those wells. The landowners got a nice signing bonus–$287,000. They also got $164,000 for a pipeline right-of-way. But only one well was ever drilled–and it’s capped. And there is a pipeline–flowing other people’s gas through it. The landowners sued and a district court judge ruled last week that the landowners don’t have a case for their “shattered dreams” as they thought they did. It all comes down to a poorly worded lease and signing a lease without running it by a lawyer first…
    Read More “District Court Judge Tosses PA Landowner’s Lack-of-Drilling Case”

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    Pittsburgh Paper Roasts Wolf Over Sky-High Severance Tax Proposal

    Sky HighPittsburgh, PA has two major newspapers–the Post-Gazette and the Tribune-Review. We’re talking general interest newspapers. There’s also the Pittsburgh Business Times, a great paper but niche and focused on business only. Of the two general interest newspapers, the Post-Gazette is obviously owned and operated by liberal Democrats. They tilt somewhere left of Vlad Putin on the editorial page. The Tribune-Review, however, is a balanced paper and not beholden to the Democrat machine in PA the way their rival is. There’s no better way to illustrate that then the Post-Gazette’s love and adoration of current Dem Gov. Tom Wolf and his proposed punitive taxes the Marcellus Shale industry. The Post-Gazette LOVES Wolf’s idea for a severance tax and berates the gas industry for not “doing its part.” The Tribune-Review, on the other hand, takes a more balanced approach. In a recent editorial, the Tribune-Review points out Wolf’s latest severance tax proposal, if passed, would be the highest in the nation. They also point out Wolf’s income tax increase and minimum wage proposal would decimate the state economically…
    Read More “Pittsburgh Paper Roasts Wolf Over Sky-High Severance Tax Proposal”

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    PennEast Pipeline Requests NJ’s Help with “Green Acres” Process

    Green AcresThe PennEast Pipeline, a $1 billion, 118-mile pipeline from Luzerne County, PA to Mercer County, NJ, continues to bend over backwards, forwards and into yoga knots in order to accommodate the wishes of various special interest groups. The latest in that effort is PennEast’s invitation to several New Jersey municipalities and non-profit groups to provide feedback on PennEast’s open space initiative. Part of the PennEast route will traverse 15 acres of encumbered “Green Acres” parcels–open spaces meant to stay open and not be developed. PennEast plans to lay their pipe four feet down, cover it up, and the green/open spaces will remain green and open, forever. In fact, according to PennEast, when the pipeline installation is done and dusted, there will be “significantly more open space” than there is today. Look for THE Delaware Riverkeeper (Maya van Rossum) and other radical leftists to demagogue this latest effort by PennEast to be a good neighbor…
    Read More “PennEast Pipeline Requests NJ’s Help with “Green Acres” Process”

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    9 of 10 Biggest Marc/Utica Drillers Increase Production in 1Q16

    Achilles_heel
    Statue of Achilleas thniskon (Dying Achilles) at the Corfu Achilleion.

    Although we often read of drillers in the northeast curtailing (shutting in) production to wait for higher natural gas prices, nine of the top ten publicly traded drillers in the Marcellus/Utica produced MORE natgas in the first quarter of 2016 than they did in the first quarter of 2015. Some of them, like Gulfport and Rice Energy, produced a LOT more (up 63% and 53% respectively). However, the Achilles heel for some drillers in our region is lack of pipeline capacity to get their gas out of the immediate region. The winners in the Marcellus/Utica are those drillers who have locked in pipeline capacity to move their gas to other regions–the northeast, south, Midwest and Gulf Coast. The losers are those who haven’t–and (potentially) those who were relying on pipeline projects that are either dead or delayed–including the Constitution and Northeast Energy Direct…
    Read More “9 of 10 Biggest Marc/Utica Drillers Increase Production in 1Q16”

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    Energy Law Firm Blank Rome Lands 2 Big Fish

    Big FishBlank Rome is a big, important energy law firm. The firm went on our radar in 2013 when then-Secretary of the PA Dept. of Environmental Protection Mike Krancer resigned his post to rejoin his old law firm, Blank Rome (see Developing… PA DEP Sec. Krancer Resigns). Blank Rome has just landed two more big fish: former Senator from Michigan and former Secretary of Energy Spencer Abraham, and former Vice-Chairman of the International Energy Agency and former Chief of Staff at the U.S. Department of Energy Joseph McMonigle. Blank Rome is an important player in the Marcellus/Utica, so this announcement is important for our region…
    Read More “Energy Law Firm Blank Rome Lands 2 Big Fish”