Regulation

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    WVONGA Delivers ~1,000 at Rally to Support Co-Tenancy, Joint Dev.

    The West Virginia Oil & Natural Gas Association (WVONGA) has just raised the stakes significantly in a bid to pass new “forced pooling lite” legislation. In the past six years, the oil and gas industry in WV has pushed for a forced pooling law five times. It’s failed every time. So this year the industry, represented by WVONGA, said it would not push forced pooling but instead would try to get a bill passed to address two of the issues that were previously part of a larger forced pooling bill–something called co-tenancy and joint development (see WV Won’t Push Forced Pooling, Will Push Joint Dev. & Co-Tenancy). Co-tenancy says 51% of the rights owners can vote to accept a lease for drilling. It corrects a situation in which multiple rights owners are listed for a property–and sometimes (often?) it’s difficult to track them all down and get them to sign on the dotted line. Joint development is a bit more nuanced. Currently there are a number of existing old leases, signed before shale drilling began, that prevents drillers from drilling a horizontal well across an individual property boundary line–until a new lease is signed. Joint development says if the driller already owns the leases on all adjoining properties they want to combine into a drilling unit, they can do so without signing a new lease. WVONGA says it corrects a loophole that prevents more drilling from happening. Rights owners say joint development legislation lets drillers have a freebie–instead of signing a new lease (for more money), the driller gets something never envisioned when the original lease was signed. Yesterday WVONGA bused a bunch of people (mostly oil & gas workers) from across the state to the Capitol steps in Charleston for a rally in support of new legislation to pass co-tenancy and joint development. Depending on the news source, “several hundred” or “nearly 1,000” attended the rally. It was a lot of people. One of the star speakers was newly minted Gov. Jim Justice (a Democrat who supports the industry). Justice came out in full-throated support of co-tenancy and joint development. The rally certainly seemed to have an impact on WV legislators, some of whom attended…
    Read More “WVONGA Delivers ~1,000 at Rally to Support Co-Tenancy, Joint Dev.”

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    PA DEP Launches Online Access to Shale Driller Documents

    The Pennsylvania Dept. of Environmental Protection (DEP) yesterday released a new online search tool for the public which enables anyone to search through electronic documents filed by Marcellus Shale drillers. Last year the DEP created new regulations for shale drillers called Chapter 78a (see PA’s New Chapter 78a Drilling Regs Go into Effect Oct 8). Some of the new regulations were challenged in court by the Marcellus Shale Coalition in a lawsuit that is not yet resolved (see Marc. Shale Coalition Files Lawsuit to Block PA Chapter 78a Regs). However, a portion of 78a that requires drillers to file paperwork electronically was not challenged and has gone into effect. The DEP wants to share that information with the public via a new website (found here). While more information faster is generally a good thing, in this case we expect antis to use the information to try and spin and lie about the industry. Perhaps that’s the cost of free speech? Here’s the announcement about the new tool, along with a screenshot…
    Read More “PA DEP Launches Online Access to Shale Driller Documents”

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    OH Lawmakers Propose Their Own Version of a PA Impact Fee

    We find it kind of amusing. Anti-drillers and Democrats (usually one and the same) in Pennsylvania bellyache and moan and groan that PA is “the only oil and gas state without a severance tax” and how life would be SO much better if only PA had a severance…blah blah blah. They point out that Ohio has a severance tax. West Virginia has a severance tax. EVERYBODY has a severance tax. Of course they conveniently ignore (or lie about) the fact that PA has an impact fee, or an impact tax, if you will. The impact fee levies a charge on new wells for a number a years on a sliding scale. Think of the impact fee like a property tax, and a severance tax like a sales tax on goods sold. The beauty of the impact fee is that 60% of it stays in the communities where drilling actually happens. Impact fee revenue goes to local municipalities to offset the “impacts” of drilling in those communities, money used for things like fire departments, police, roads, etc. An impact fee is superior to a severance tax in many ways. While OH and WV’s severance tax revenue went over a cliff when the price of natural gas went over a cliff, PA’s impact fee was far less affected. But the point of this post is not in the relative merits in the type of taxation. The point is that legislators in Ohio want to reallocate some of their severance tax revenue to be used in communities where Utica drilling happens. That is, they want to convert some of the OH severance tax into, essentially, an impact fee. So while PA bellyaches about having an impact fee and not a severance tax, states (like OH) that actually have a severance tax, would rather have an impact fee!…
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    Update on Trump’s FERC Appointments – “Fixing FERC”

    It sure seems like it’s taking a long time for President Trump and his team to announce and put forward his nominees for the Federal Energy Regulatory Commission (FERC). Shortly after taking office, Trump elevated one of the three sitting, Democrat Commissioners, Cheryl LaFleur to be Acting Chairman of the agency. That ticked off the then-current Chairman, Norman “crybaby” Bay, who promptly resigned (see FERC Commissioner Resigns Threatening Major M-U Pipeline Projects). Perhaps he saw the writing on the wall. The sitting President gets to appoint three of the five members of the Commission from his own party–so one of the Dems would have to go. Bay probably figured it would be him, so he jumped ship early, causing some damage to Marcellus/Utica projects because there is currently no quorum for important votes (see FERC Commissioner Norm Bay Targets M-U on Way Out the Door). Bay’s last day was Feb. 3–and still we’ve not heard an official peep from the White House about Trump’s planned three nominees. We’ve heard leaks about who Trump’s picks will be (see Breaking: Kevin McIntyre, Neil Chatterjee are Trump Picks for FERC and Names Mentioned for 3rd FERC Post, Incl. PA’s Powelson). But we’ve not had confirmation of those names, nor a timetable for when they will be proffered to the Senate for a vote, which is required. Frankly, it’s frustrating. We spotted an article about “fixing FERC” that includes a full rundown/bio for each of the three leading candidates that are rumored to in line for an appointment…
    Read More “Update on Trump’s FERC Appointments – “Fixing FERC””

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    Federal Judge Rejects Constitution Pipe Request to Bypass NY DEC

    A disappointing setback for the much-needed Constitution Pipeline–a $683 million, 124-mile pipeline due to run from Susquehanna County, PA to Schoharie County, NY carrying Marcellus gas. As you may recall, in April 2016, New York’s anti-drilling governor, Andrew Cuomo, decided he would cave to pressure from radical environmentalists and block the building of the federally-approved Constitution Pipeline (see NY Gov. Cuomo Refuses to Grant Permits for Constitution Pipeline). Cuomo’s toadies at the Dept. of Environmental Conservation (DEC) decided not to grant (i.e. denied) the Constitution the permits it needs to cross creeks and swamps. That was finally enough for Williams and the other partners in the project, who promptly sued NY in federal, NOT state, court (see Williams Sues NY Over Constitution Pipe – DEC May Lose Authority). Judge Norman Mordue of the Northern District of New York ruled last week that since NY has not officially denied the water crossing permits–simply not yet acted on them–there is no injury to the project. Even though the pipeline is losing money every day it doesn’t get built due to NY’s inaction. We fail to see how not acting on the permits over the long-term is any different from denying those same permits. It is a distinction without a difference in our book. But that’s what the judge ruled, granting the DEC’s motion to dismiss the case. The thread of hope that remains for the project is another case in which Williams (the builder of the Constitution) filed in an appeals court. Williams is maintaining the second case will go in their favor and when it does, construction is not far behind…
    Read More “Federal Judge Rejects Constitution Pipe Request to Bypass NY DEC”

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    Maryland’s Traitorous “Republican” Gov Caves, Supports Frack Ban

    There were early signs that Maryland’s newly elected “Republican” governor was weak on the subject of fracking, as we pointed out in 2015 when we said that then-new Gov. Larry Hogan, who was elected on a platform of supporting shale drilling, had decided to let a two-year moratorium on shale drilling become law without his signature (see Maryland’s Pusillanimous Gov Allows Frack Moratorium to Become Law). We should have know then that Hogan has no political courage. Recently environmental nutjobs in Maryland have turned up the heat, demanding a total and complete fracking ban by passing a law. The House passed a bill to ban fracking (see Maryland Democrat Lawmakers Continue to Torpedo Fracking). The bill has, so far, been stalled in the Senate. But maybe not for long. On Friday, Gov. Hogan, a spineless “Republican,” said he now supports a complete and total ban on fracking, forever, in his state. He’s “concerned” that if the Senate puts the measure out for a public vote/referendum, fracking in the state might actually happen one day. That’s called governing against the will of the people Mr. Hogan. That’s something Democrats do, not Republicans. What a disappointment this one-term governor has turned out to be…
    Read More “Maryland’s Traitorous “Republican” Gov Caves, Supports Frack Ban”

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    Horray! Trump Budget Fires 20% of EPA Staff, Trims 31% of Budget

    Yesterday President Trump released a detailed budget proposal which includes reducing the way-overbloated (and insidiously bureaucratic) Environmental Protection Agency budget by 31%. The budget would also ax some 3,200 EPA employees–about 21% of the 15,000 employed at the agency. It is sheer brilliance and long overdue. The EPA, under Barack Obama, sought to enforce national regulation of the oil and gas industry–something not permitted under the Constitution. It’s about time the agency was right-sized and its mission reigned in. Of course the reaction by the left has been predictable–from apoplexy to terror (snowflakes always melt so quickly). Here’s how the EPA budget news is being spun by mainstream media…
    Read More “Horray! Trump Budget Fires 20% of EPA Staff, Trims 31% of Budget”

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    EPA Administrator Pruitt Questions CO2 as Source of Global Warming

    Scott Pruitt

    MDN is not a blog/news site about debunking global warming flummery. However, we do mention it from time to time because a religious belief (against any objective proof) that mankind is causing Mom Earth to toast is at the center, the core, of so-called environmentalists who oppose fracking, pipelines and anything to do with burning fossil fuels. In an interview on March 9th with CNBC, new EPA Administrator Scott Pruitt said he does not agree that carbon dioxide (CO2) is the primary contributor to “the global warming we see.” He said measuring human activity’s impact on climate change is challenging to do. He is on solid scientific ground–and honest scientists, who happen to believe in man-made global warming, agree with his statements…
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    DRBC Secretly Deliberating on Rules to Lift Shale Drilling Ban

    The Delaware River Basin Commission (DRBC) held a regularly scheduled business meeting yesterday in Washington Crossing, PA. As predicted, a number of anti-fossil fuel zealots turned up to make noise about the PennEast Pipeline project–and about the prospect of the DRBC allowing shale drilling. As we disclosed yesterday, the zealots all read from the same document prepared by Her Eminence, THE Delaware Riverkeeper, Maya van Rossum (see THE Dela. Riverkeeper Issues Final Orders to Minions re DRBC Mtg). It’s tiresome reporting on the same, predictable behavior by children in adult bodies who never learned manners from their parents. So we’re not going to comment on the circus freak show that was the public comment period yesterday. However, there was an interesting development to report. Lt. Col. Michael Bliss of the U.S. Army Corps of Engineers (the Army Corps is one of the standing members of the DRBC Commission) read a statement about the history and possible future of DRBC regulations that may allow shale drilling in the basin. You read that right. According to Bliss, since 2010 the staff of the DRBC has actively been engaged in private (i.e. secret) discussions with various state agencies (we’re assuming the Pennsylvania Dept. of Environmental Protection) in an effort to, at some point, release regulations that will allow shale drilling in the Delaware River Basin. He said those discussions are ongoing and that before any kind of regs are released, there will be plenty of notice and public hearings…
    Read More “DRBC Secretly Deliberating on Rules to Lift Shale Drilling Ban”

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    NY Fights Back Against NFG’s Request to Bypass DEC Pipe Approval

    On Feb. 3, the Federal Energy Regulatory Commission (FERC) approved a long-delayed project–National Fuel Gas Company’s (NFG) Northern Access 2016 pipeline project (see NFG’s Northern Access Pipe in NY/PA Gets FERC Approval). The $455 million project includes building 97 miles of new pipeline along a power line corridor from northwestern Pennsylvania up to Erie County, NY. The project also calls for 3 miles of new pipeline further up, in Niagara County, along with a new compressor station in the Town of Pendleton. Although FERC has now given permission to build it, the State of New York, specifically the state’s Dept. of Environmental Conservation (DEC), must issue stream crossing permits. We’ve seen this movie before. The corrupt DEC fiddle faddles around in an effort to stall and delay. NFG is in no mood to screw around with the Cuomo DEC, so they filed a motion asking FERC for a “reconsideration and clarification” on the role of the DEC in reviewing the project (see Gutsy: NFG Asks FERC to Cut NY DEC Out of Pipeline Approval). Specifically, NFG wants FERC to rule that the DEC has NO role in reviewing the Northern Access 2016 project. The corrupt DEC doesn’t like being challenged and last week filed its own motion with FERC claiming NFG is out of line. The peeing match has begun…
    Read More “NY Fights Back Against NFG’s Request to Bypass DEC Pipe Approval”

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    SC Antis File FERC Challenge to Stop Marcellus Pipe to Charleston

    Transco to Charleston Project – click for larger version

    In March 2016, Dominion filed an official application with the Federal Energy Regulatory Commission (FERC) for a 55-mile pipeline project called the Transco to Charleston Project (see Dominion Files Application to Move Marcellus Gas to Charleston, SC). As the name implies, it will be a short pipeline to connect the Transco pipeline, which is in the process of reversing flows to bring Marcellus and Utica Shale gas south. This new pipeline will grab Transco’s Marcellus/Utica gas and send it to the Charleston, SC area. The projected in-service date is November of this year. However, this project, like every square inch of every pipeline project in the Eastern U.S., faces opposition from nutty anti-drilling radicals who vow to try and stop it even if it gets FERC approval (see SC Antis Fuss Over Pipeline to Carry Marcellus Gas to Charleston). In February, just prior to Commissioner Norman Bay resigning and leaving FERC without a quorum, the three FERC Commissioners voted to grant Dominion the certificate to build the Transco to Charleston pipeline (see FERC Approves SC Pipeline to Flow Marcellus Gas to Charleston). So the nutters have flown into action by filing a request for a rehearing of the Commission’s decision, and filing a motion to stop any construction in the meantime…
    Read More “SC Antis File FERC Challenge to Stop Marcellus Pipe to Charleston”

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    Dominion CEO Asks Senators to Fix Broken Permitting Process

    Dominion CEO Diane Leopold

    On Tuesday, just as winter storm Stella was beginning to hit along the East Coast, a group of executives testified before the U.S. Senate Committee on Energy & Natural Resources. The session was billed as a “Hearing to receive testimony on opportunities to improve American energy infrastructure.” One of the speakers to address the Senators was Dominion CEO Diane Leopold. The thrust of her lengthy testimony was to encourage (implore?) the Senators to (in our words) fix the very broken process of permitting important infrastructure projects in this country. Leopold shared Dominion’s experience in applying for permits to build the $4 billion Cove Point LNG export project in Maryland. As bad as it was with 55 federal, state and local permits and reviews required, Leopold said Cove Point was a relative walk in the park compared to what they’re now going through with the $5.5 billion Atlantic Coast Pipeline project. Something has got to change if anything is going to get built in this country…
    Read More “Dominion CEO Asks Senators to Fix Broken Permitting Process”

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    THE Dela. Riverkeeper Issues Final Orders to Minions re DRBC Mtg

    Today is the day that (some of) Maya’s minions will show up at a meeting of the Delaware River Basin Commission to attempt to bully DRBC staff during the public comments period. As we’ve been reporting (from a well-placed mole on the DRBC email list) Maya has been issuing orders to her minions–people who apparently aren’t bright enough to form their own thoughts about matters like the PennEast Pipeline (see Mind-Numbed Antis Need Maya’s Instructions re DRBC Mar 15 Mtg). Maya has written out a treatise of objections to PennEast, to be read WORD FOR WORD by the minions–or else. We now have the script that Maya’s mind-numbed robots will read from (see it below). We also have her last-minute instructions to the dolts doing the reading…
    Read More “THE Dela. Riverkeeper Issues Final Orders to Minions re DRBC Mtg”

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    DRBC has No Power to Stop Shale Drilling in Delaware River Basin

    You’ve heard the phrase, “The Emperor has no clothes.” A lawsuit against the Delaware River Basin Commission (DRBC) by a Wayne County, PA landowner over the DRBC’s ongoing moratorium of shale gas drilling, is exposing the DRBC as having “no clothes” when it comes to their authority over shale drilling (see Wayne County, PA Landowner Sues DRBC Over Fracking Ban). In fact, the DRBC has no authority to stop shale drilling, as they are now being forced to admit in response to the lawsuit. That fact has the DRBC, and radical environmentalists like THE Delaware Riverkeeper, petrified. MDN friend Tom Shepstone, author of the always-excellent Natural Gas Now website, writes about the DRBC’s lack of authority and the need for Pennsylvania to immediately defund the DRBC–until the agency stops their sham pretense of blocking shale drilling…
    Read More “DRBC has No Power to Stop Shale Drilling in Delaware River Basin”

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    WV Bill to Exempt O&G from Storage Tank Law Gets Gutted

    On Monday, MDN wrote about a new bill introduced in the West Virginia legislature that would exempt storage tanks used by the oil and gas industry from a 2014 law passed following a coal industry storage tank failure that temporarily polluted the drinking water for 300,000 WV residents (see WV Bill Would Exempt O&G Industry from Storage Tank Law). House Bill (HB) 2811 would exempt ~27,000 tanks owned and operated by the oil and gas industry from West Virginia’s Aboveground Storage Tank Act. The bill didn’t get far. On Monday, the WV House Judiciary Committee gutted their version of the bill. The new/gutted version will exempt about ~2,300 oil and gas storage tanks–those very small and very far away from drinking water sources…
    Read More “WV Bill to Exempt O&G from Storage Tank Law Gets Gutted”

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    Analysis of New WV Bill SB 576 re Co-Tenancy & Joint Development

    Yesterday MDN reported on a new West Virginia bill (Senate Bill 576) that aims to bring both the drilling industry and rights owners together to support co-tenancy and joint development–which are stripped down pieces of previous forced pooling bills that failed in the past (see WV Sen. Charles Trump Introduces New Co-Tenancy, Joint Dev Bill). As we previously reported, Senate Bill 244 was introduced in February to address co-tenancy and joint development (see WV Senate Bill 244 Introduced for Co-Tenancy & Joint Development). That bill went nowhere due to strong opposition from rights owners, including the West Virginia Royalty Owner’s Association (WVROA). SB 576 was meant to meet rights owners in the middle, to address their concerns. But as we mentioned yesterday, WVROA is not supporting the new SB 576 either. Although we included a copy of the bill in yesterday’s post, we did not have a detailed analysis of SB 576 vs SB 244. We now have some expert analysis from the legal beagles at top energy law firm Babst Calland…
    Read More “Analysis of New WV Bill SB 576 re Co-Tenancy & Joint Development”