Mike Bloomberg Gives Sierra Club $30M to Fight Coal, But Loves Gas
Former New York City Mayor Michael Bloomberg is one conflicted dude. On the one hand he loves natural gas (a fossil fuel) and thinks we should have more of it, and on the other hand he hates coal. So get this… On Wednesday Bloomberg attended a big soiree where he handed a personal check for $30 million (part of a $110 million donation) to the nutters of the Sierra Club to further fund their “Beyond Coal” campaign. At the event he was asked if he would be supporting the Sierra Club’s Beyond Natural Gas campaign. He said no. He not only said no, he went on (later in the day) to devastate every argument the Sierra Club has against natural gas. Bloomberg, in a Wall Street Journal interview on Wednesday, took pot shots at Andrew Cuomo’s anti-fracking ban. Bloomberg loves gas but hates coal. Like we said, one conflicted dude…
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A court case decided earlier this week by New York’s Court of Appeals (NY’s highest court), will, in our opinion, have a profoundly negative effect on oil and gas development in the state, forever. Or until another court case overturns it (which seems very unlikely). The case, as its core, is about the question of whether or not state action or inaction constitutes an extraordinary action, in essence an Act of God outside of the control of parties who sign a contract. Years ago landowners signed leases to allow oil and gas drilling, often for a few bucks and acre, long before Marcellus and fracking were common, household words. Then came delay after delay in New York–from the governor–and eventually a more or less semi-permanent ban on fracking. Energy companies argued that the leases they had signed could be extended until the day they are allowed to drill in the Marcellus because of “force majeure”–the concept that due to circumstances beyond our control we could not drill as we intended during the original term of the lease, usually five years. The NY Court of Appeals on Tuesday decided that the state preventing drilling does not qualify as force majeure after the original five-year period of a lease (full copy of the decision below). If the original lease was extended for some reason and then the driller was prevented from drilling during the extended time due to state laws preventing it, it’s not force majeure in the eyes of the “wise” justices in Albany…
By most measures, Dominion Transmission’s New Market Project is a fairly dull $159 million capacity upgrade to an existing natural gas pipeline which runs across upstate New York from the PA line, west of Horseheads, northeasterly to the state’s Capital Region (see the map below). We are now about a month away from the originally forecast April 2015 date when Dominion thought it might get a green light from FERC, the Federal Energy Regulatory Commission (Docket Number CP14-497). September 2015 was originally forecast for beginning construction (280 jobs, all temporary, as are all construction jobs), while November 2016 was the target in-service date (adding 10 to 12 permanent jobs, running forward)…