New York

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    Highest Bid for Norse Energy $2.65M – Was it Sold & Who Bid?

    soldOn Friday two major stories developed involving Norse Energy. You may recall Norwegian-based Norse Energy rolled the dice and placed all their bets on shale drilling in New York State, leasing some 180,000 acres, of which 130,000 acres are in the Marcellus and/or Utica Shale region. Never in their wildest dreams did Norse believe it would take six years or more for the state to allow high-volume hydraulic fracturing. Things started to go downhill for Norse when landowners sued to say Norse did not have the right to continue the leases indefinitely (beyond five years) because of New York’s tardiness in approving fracking (see New Rough Patch for Norse Energy: Force Majeure Lawsuit). Eventually the state’s ongoing moratorium on fracking led to Norse’s bankruptcy (see Lights Turned Off, Door Closed – Good Night, Norse Energy). Norse sued the state to force it to release fracking regulations so their remaining asset, the leases, could be sold for at least some value to compensate investors (see Norse Energy Sues Gov. Cuomo to Force Release of Fracking Regs).

    Here’s where it gets complicated. On Friday in U.S. bankruptcy court, three bids for the leases and other company assets were unsealed. The highest was for $2.65 million–which is pennies on the dollar compared to the value of the company just a year ago before NY’s action forced it into bankruptcy. The New York Post reported the company behind the winning bid was hedge fund Mason Capital. From what MDN is able to determine, that may not be correct. The highest bid was from Any Acquisition, LLC–which may or may not be backed by Mason Capital. More important, there has been no official word that the judge awarded the sale to anyone on Friday. Below we tackle a complex deal-in-the-making and sort it out with help from our friends at NGI’s Shale Daily, who did some proper, old-fashioned reporting and got the real goods…
    Read More “Highest Bid for Norse Energy $2.65M – Was it Sold & Who Bid?”

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    NY Hearing on JLCNY/Norse Lawsuit v Cuomo, Martens, Shah

    On Friday a lower court judge heard testimony in the “Article 78” case brought by Norse Energy and the Joint Landowners Coalition of New York (JLCNY) against Gov. Cuomo, Dept. of Environmental Conservation Commissioner Joe Martens, and State Health Commissioner Nirav Shah–to force the release of new fracking regulations. Sadly, the man who is supposed to work for the residents of New York, Attorney General Eric Schneiderman, decided instead he works for the man-child who can’t make a decision, Andy Cuomo, so he filed a motion to dismiss the Article 78 lawsuit brought by Norse and the JLCNY (see NY AG Schneiderman Files to Dismiss JLCNY Lawsuit Against Cuomo). The judge on Friday held a hearing to consider that motion. Fortunately, the motion to dismiss was not granted. Not yet anyway.

    The heart of Friday’s hearing centered on the issue of, “How long is long enough?” for the state to conduct a review and release new drilling regulations. We have quotes from various sources who were there. It was obvious the judge grilled the pro-drilling side harder than the rep from the AG’s office. However, near the end (as you’ll see below), the AG rep shot herself right in the foot and perhaps tilted the chances for the lawsuit to go forward in favor of Norse/JLCNY…
    Read More “NY Hearing on JLCNY/Norse Lawsuit v Cuomo, Martens, Shah”

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    Peak Oil/Gas Theorist Art Berman Generates “Study” for NY Ladies

    A month ago the New York League of [Liberal Democrat Anti-Drilling] Women Voters hired a consultant that has been so wrong about his theories on “peak oil” he would be laughed out of any room he walks into (see Peak Oil Theorist Art Berman Says Shale Gas is Peaking Too), to pen a new report that says just want the lib ladies want it to say: If drilling were to begin in NY today, nobody would drill here because they couldn’t make money by selling gas at $4-$4.50 per thousand cubic feet.

    To which we say–fine. Let’s find out! Cabot Oil & Gas is making money hand over fist in Susquehanna County, PA, just across the border, even with gas as low as $1.50 per Mcf. Let’s see if they can work some of that magic on this side of the border. But of course that’s not what this so-called “study” is about. The study ordered up by the very anti-drilling so-called League of Women Voters is a further attempt to dispirit New Yorkers on shale drilling. For Art Berman, the purpose of the study is to repair his damaged reputation. It does the opposite, providing the final nails. Below we have the press release announcing this latest laughingstock of a “study” from the discredited Art Berman, along with a copy of the 44-page “study” itself…
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    NY Anti-Driller Gets $150K Prize for Environmental Activism

    The Goldman Environmental Prize for “grassroots environmental activists” was started years ago by a husband and wife–the Goldman’s–who both attended University of California at Berkeley. Which should tell you all you need to know about the prize. Created by wackos for wackos. So it’s no surprise the foundation awarded this year’s $150,000 prize to a New York wacko–Helen Slottje, a lawyer whose work in New York to get towns to ban fracking is regularly challenged in court and overturned (see NY Judge Throws Out Binghamton Fracking Moratorium and NY Judge Tosses Out Sidney Moratorium Law for Procedural Issues).

    But hey–it’s Helen’s “good intentions” that count. And her good intentions are to deny 70,000+ landowners in New York their sovereign property rights to allow shale drilling. Give her an award! (As an aside: MDN heard Helen Slottje in person several years ago when charlatan and then-Mayor of Dish, TX, Calvin Tillman, spoke in Binghamton–see DISH, Texas Mayor Calvin Tillman Visits Binghamton – Marcellus Drilling News was There). Slottje was part of Tillman’s traveling circus act. Let’s just say we were less than impressed with Slottje’s presentation.) Helen is in wacko mecca–San Francisco–today, to pick up her check for $150K. That ought to help her to keep making mischief in NY for a few more years. Although we can always hope she likes it in wacko paradise and decides to stay there…
    Read More “NY Anti-Driller Gets $150K Prize for Environmental Activism”

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    Cuomo’s Opponent in NY Governor Race Backed by Gas Industry

    MDN has long hoped that Donald Trump would jump in the race to oppose the man-child Andrew Cuomo in this year’s governor’s race. Trump has teased, several times, that he would run if he could do so unopposed. He also flirted with running for president last time around. But it seems The Donald always leaves us at the alter. He never shows up in the end. And so it seems that a very worthy and good man–with almost no name recognition–is left to run against Cuomo this fall. His name is Rob Astorino, currently Westchester County Executive.

    Rob is conservative and would make an excellent governor. If he can get some name recognition and traction. Fortunately, according to the New York Post, he’s about to get a cash infusion of several million dollars to help–some of it from the gas industry…
    Read More “Cuomo’s Opponent in NY Governor Race Backed by Gas Industry”

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    The Only Oil Industry Exec Loved by NY’s Anti-Drilling Wackos

    There’s a reason why the so-called Elected Officials to Protect New York–a group of numskull politicians in New York State who oppose drilling so they can get more votes–trots out a “retired high-ranking oil executive” who’s already made his millions and doesn’t give a #$%@ about anyone else making money–to declare the miracle of hydraulic fracturing can’t be done safely. The reason? Because they can’t find anyone else from the industry to do it–like someone who has actually been in charge of a fracking operation and knows how safe it is (unlike the “retired high-ranking oil executive” who retired before high-volume fracking came around). And so, one rich, old, white guy is the darling of New York’s anti-drillers and gets major play in anti-drilling publications like the Albany Times Union, while thousands of oil company executives that actually oversee fracking are never consulted for their opinion about a subject on which they are expert. Figures.

    Anti-drilling politicians trot out the retired executive–who has a summer home in swanky Cooperstown next to other retired, rich, white liberals–to denigrate one of the highest achievements of mankind yet: hydraulic fracturing. He thinks all fracking should be shut down–it ain’t safe, ya know. And the TU, in dictation mode, dutifully “reports” it. Meanwhile, the retired executive sips another martini with his rich, white, liberal neighbors…
    Read More “The Only Oil Industry Exec Loved by NY’s Anti-Drilling Wackos”

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    Dozens of Producing Gas Wells Exist <1 Mile from NY Vineyards

    In the ongoing PR battle waged in New York State by nutjobs and wackos who spin lies that hydraulic fracturing (or fracking) will ruin the bucolic countryside and turn it into an industrial wasteland, one of their favorite lies is that fracking will tank New York’s Finger Lakes wineries. For those who don’t know, the Finger Lakes region in central New York contains world class vineyards and wineries. A minor digression: MDN editor Jim Willis, when he was a (much) younger man, was a staffer in the Ronald Reagan White House. He recalls his surprise at seeing not California champagne (from Ronald Reagan’s home state) being served in the White House, but instead New York champagne being served. Such is the storied reputation and history of New York’s wineries.

    Anti-drillers would have you believe a few gas wells anywhere close to a winery would close it down. The truth of the matter is, dozens of gas wells have been located within one mile of wineries–for decades. Some, perhaps all of those wells (we’re guessing) used low-volume fracking. What? You mean there’s fracking in NY right now? YES. It’s not horizontal, high-volume fracking, but low-volume vertical fracking–and it’s been going on for decades in NY and continues to be used down to this very day. The only difference between low- and high-volume fracking is, well, more water and sand. But back to those wineries that somehow have not been devastated by gas wells that exist within a mile. Here’s some perspective from our friend Joe Massaro at Energy in Depth–who grew up visiting the Finger Lakes region…
    Read More “Dozens of Producing Gas Wells Exist <1 Mile from NY Vineyards”

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    800 NY Officials Work Against Constituents to Ban Fracking

    A group of 800 elected New York State officials has decided to actively work against the best interests of their constituents. Only in New York, right? A group calling themselves Elected Officials to Protect New York, mostly comprised of members from outside of where shale drilling would happen, are spreading lies about the so-called dangers of drilling and calling on the state to extend a nearly six year-old moratorium. Which of course is a joke–the ongoing moratorium is in essence a ban. Extending it is a euphemism for ban it permanently.

    Their motivation is irrational fossil fuel hatred. They believe we can stick up solar panels and wind mills all over the place and replace those evil, nasty fossil fuels–including “fracked” natural gas. They are, in a word, nuts. Here’s the bupkis emanating from the so-called “Elected Officials to Protect New York”…
    Read More “800 NY Officials Work Against Constituents to Ban Fracking”

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    NY DOH Docs Show Geisinger Fishing for $, Ralph Nader Lurking

    The anti-drilling Seneca Lake Pure Waters Association and the Gannett Albany Bureau filed identical Freedom of Information Law (or FOIL) requests in Jaunary of this year to get information about the so-called review of health effects from fracking, a review being conducted by the NY Dept. of Health (DOH) and it’s resigning Commissioner, Nirav Shah. Some five CDs and one DVD full of information later and we have a few interesting tidbits. One tidbit is that Geisinger Health System, which famously launched a multi-year study of the “health effects” of fracking in PA without any money to fund the study (see PA Marcellus Health Study Still No Pulse – Needs Extra $24M), tried to enlist Shah and the NY DOH, no doubt believing NY is flush with Wall Street cash. NY politely declined.

    We also learn the wacky Ralph Nader requested a meeting with NY Dept. of Environmental Conservation Commissioner Joe Martens. Ralph wants all fracking everywhere–from here to Pluto–to stop. Martens politely declined the meeting (time waster for Joey). Here’s an overview, based on the documentation, of what the DOH has–and has not–done in their ongoing, never ending review of the “science”…
    Read More “NY DOH Docs Show Geisinger Fishing for $, Ralph Nader Lurking”

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    Striking Similarities Between Keystone XL Pipeline & NY Fracking

    The Keystone XL Pipeline and high volume hydraulic fracturing (fracking) in New York State have a lot in common. In fact, we were thunderstruck by the similarities when reading in the Wall Street Journal on Saturday that President Obama has, once again, delayed a decision on the Keystone–likely until after the fall elections. Note how these two are similar: both the Keystone and NY fracking have been in limbo, on hold, for almost the same amount of time–just about six years; both are being delayed by indecisive Democrats who fear the rabidly left nutters in their party that make a lot of noise; both “leaders”–President Obama and Gov. Cuomo–are depending on the media to assist them and for voters to ignore their torpidity on this vital issue; both “leaders” are flagrantly violating law and litigation has ensued in both cases.

    Not that it is a Marcellus or Utica story per se, but below is the WSJ article from Saturday. See if you too notice how closely the Keystone XL parallels fracking in NY…
    Read More “Striking Similarities Between Keystone XL Pipeline & NY Fracking”

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    JLCNY Says Nirav Shah Departure Won’t Slow Down Fracking Lawsuit

    Ya just can’t keep good help if you only pay ’em $130,000 a year. So says the man-child who is governor of New York–Andy Cuomo. In a vainglorious attempt to spin the very bad news (for him) that his top health official has had enough of his dithering ways, Gov. Cuomo yesterday told reporters the ongoing so-called health review of new fracking rules has nothing to do with Shah’s departure. Shah is heading as far from New York as he can get, to California. Cuomo’s convinced we’re all idiots and don’t see the truth (see our article from yesterday, State Health Com. Nirav Shah has Enough of Andy Cuomo, Leaving NY).

    In comments yesterday Cuomo said Shah makes $130,000 per year, when it’s actually $136,000. Like most politicians, Cuomo plays fast and loose with numbers. The health department first said Shah is leaving in June, but then Shah said no, I’m outta here on May 4th, and so the health department backpedaled, sputtered, and said well yeah, we guess it is May 4th after all. What a dysfunctional joke (that’s not very funny for the residents of NY). The Joint Landowners Coalition of New York (JLCNY) is certainly not amused. They issued a statement yesterday that their lawsuit against Shah (and/or his replacement), and Gov. Cuomo and DEC Commissioner Joe Martens will proceed full speed ahead, regardless of Shah’s departure. We hope the JLCNY continues their lawsuit against Shah all the way to California for his collusion with Cuomo and Martens to prevent drilling for the past year and a half…
    Read More “JLCNY Says Nirav Shah Departure Won’t Slow Down Fracking Lawsuit”

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    State Health Com. Nirav Shah has Enough of Andy Cuomo, Leaving NY

    keep calm and blame the whipping boyApparently Dr. Nirav Shah, State Health Commissioner in New York, is tired of being Andrew Cuomo’s tool–Andy’s whipping boy. For more than a year Cuomo has been able to hide behind an unfinished so-called public health review of proposed new fracking rules, proposed by the state’s Dept. of Environmental Conservation (DEC). In what can only be called a conspiracy, DEC Commissioner Joe Martens asked Shah for a review of the SGEIS with an eye to how shale drilling may (or may not) affect this nebulous concept called “the public health.” It’s now obvious that both Martens and Cuomo had set up Shah as the fall guy, requesting (we suspect) that Shah intentionally delay his findings. Shah has been carrying their water for more than a year now. Recently Norse Energy and the Joint Landowners Coalition of New York sued Cuomo, Martens and Shah to force them to finish the health review and release the new drilling regs (see D-Day: JLCNY Files Lawsuit Today Against Cuomo, Martens, Shah).

    Yesterday Shah announced he is stepping down from his position in June. He’s had enough of this incestuous mess called New York State politics, and enough of the man-child Andy Cuomo–a pathetic politician who can’t make a decision about fracking. The reason we suspect Cuomo asked Shah to delay the results of his “health review” is because a) Shah originally said the review would be done within several weeks, which has turned into more than a year, and b) Shah is leaving to become Chief Operating Officer of the Kaiser Foundation Health Plan in southern California–at double or triple his current salary. It’s a huge promotion. You think Kaiser would hire a new COO who is inept and can’t complete a simple and straightforward health review? No way–which tells you Shah was delaying at the request of Cuomo and Martens. And he’s now had enough…
    Read More “State Health Com. Nirav Shah has Enough of Andy Cuomo, Leaving NY”

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    Exxon Mobil Shaken Down by NYS Comptroller Thomas DiNapoli

    GoodFellasThe Comptroller of the State of New York, Thomas DiNapoli, is the sole person in charge of The New York State Common Retirement Fund–a fund with $160 billion in it. DiNapoli, or rather the NYS Common Retirement Fund, owns $1.02 billion of Exxon Mobil stock. Unfortunately, DiNapoli is an anti-drilling bully (see our list of MDN articles here). When someone like DiNapoli has you by the short hairs and is pulling, you ask him how high he wants you to jump. That’s what’s happening to Exxon Mobil.

    DiNapoli is forcing Exxon Mobil to write a cockamamie report on the so-called hazards of fracking, to be released this September on the Exxon website. So what if the report shows there are no (or very few) actual hazards in fracking? Yeah, right. They don’t call people like Tommy DiNapoli a goodfella for nuttin’. Exxon is getting shaken down by a bullying investor that holds a lot of stock. And not just any investor–but a government official to boot. It’s sleazy, it’s disgusting, and it’s New York politics. What do you think Exxon’s report on fracking will say?…
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    Vicariously Attend FERC Scoping Hearing on Constitution Pipeline

    microphone in auditoriumMDN editor Jim Willis attended the Federal Energy Regulatory Commission (FERC) scoping hearing for the Draft Environmental Impact Statement (DEIS) for the Constitution Pipeline last Wednesday night (April 2nd) in Afton, NY. Held at the local Afton High School auditorium, there were 250-300 people in the audience. Some 50 or so signed up to address the three FERC representatives who were there to listen to public testimony about the DEIS and proposed plan to build a 30-inch, 124-mile pipeline from Susquehanna County, PA to Schoharie County, NY to carry cheap, abundant Marcellus Shale gas to markets that include New York City and New England. The pipeline project is projected to cost $683 million (money pumped mostly into the upstate New York economy), and provide 1,300 temporary jobs while it’s built.

    To say it was a lively audience would be an understatement. Jim stuck around for more than two hours to listen and observe. In one sense the hearing was not unlike others Jim has sat through. But in another sense, it was different–even instructive. More than one speaker on the anti-drilling side bemoaned the fact that Williams and the Constitution Pipeline has “split the community” and has “pitted neighbor against neighbor.” Really? What Jim witnessed was a vibrant, healthy, vigorous political discussion not unlike the discussions neighbors have been having with neighbors since the founding of our great country. We gather and engage in a spirited debate–sometimes shouting matches–to avoid killing each other. We are not (yet) a banana republic. We are still (for now) a nation of laws. Loud and boisterous debate is our proud heritage and it should be encouraged–not discouraged. What Jim saw heartened him, instead of the opposite.

    And what did Jim see? You could say the speakers broke into two camps–for and against the pipeline. But that would be too simplistic. Come along with Jim as he introduces you to several speakers from that night, representing not a simple for/against mindset, but a continuum of outright support to outright opposition–with many shades in between. We’ll do it through the lens of four archetypes that we think best represent the passion, emotions and arguments presented at the meeting…
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    The Human Cost of Delay in New York — Absentee Husband

    New York’s ongoing delay in allowing shale drilling has very real costs for very real people. Some losers say, “That gas has been in the ground for a million years, it ain’t going anywhere. Let’s take our time and figure this out.” Waiting has a cost too–especially since drilling has proven to be safe in over 60,000 shale wells drilled in other states. The 70,000-member Joint Landowners Coalition of New York has sued Gov. Cuomo because he has, in essence, stolen the football off the field of play and has run out of the stadium with it. Under the rules (i.e. New York law) you can’t do that. You must make a decision in a timely manner because lack of decision is recognized as causing harm. But the JLCNY is not the only party to the lawsuit that would force Cuomo to complete the review process. There are also several individuals suing Cuomo too.

    An article in today’s New York Post looks at one of those individuals–Jon Kark. Jon is the owner, with his dad, of a 353-acre farm in Broome County, NY–just a few miles from where MDN editor Jim Willis is writing this very article. Jon is the sixth generation of Karks to own that land. In order to keep the land and the farm operating, Jon is never home–literally. In 2009 Jon had to leave town for a job that will pay the bills, including steep NY taxes assessed on his property. He gets home one or two weeks every year, and that’s it. He’d rather be at home working the farm, but he can’t afford it. His family can’t afford it. He could be at home working the farm, if Cuomo would get off his rear-end, suck it up and make a manly decision for a change, instead of dithering around, showing total lack of leadership…
    Read More “The Human Cost of Delay in New York — Absentee Husband”

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    JLCNY Legal & Moral Response to NY AG’s Request to Dismiss Lawsuit

    scales of justiceYesterday MDN told you about New York’s shameful Attorney General, Eric Schneiderman, had filed to dismiss the lawsuit brought by the 70,000-member Joint Landowners Coalition of New York that seeks to have the courts force Gov. Cuomo and his lieutenants to do their job and release new drilling regulations (see NY AG Schneiderman Files to Dismiss JLCNY Lawsuit Against Cuomo). Immediately following our publication of that article, the lead attorney for the JLCNY, Scott Kurkoski, emailed MDN two legal documents he had filed in responding to the AG’s request to dismiss.

    The first document (embedded below) is the 43-page “Petitioners-Plaintiffs’ Memorandum of Law in Opposition to Motion to Dismiss”–the official response to Scneiderman’s shameful attempt to deny justice to residents of New York. It contains all of the legal reasons why the Article 78 case should move forward, and why Schneiderman’s request to dismiss should be denied. The second document (also embedded below) is a 113-page “Affirmation of Scott R. Kurkoski in Support of Petitioners-Plaintiffs’ Opposition to Respondents-Defendants’ Motion to Dismiss.” Only a lawyer can come up with a name like that! This second document is Scott essentially saying, “I’m a lawyer in this case with personal knowledge, and I support the JLCNY’s request to deny dismissing the case, and here’s why…” The first document contains the legal reasons why the case should move forward, the second document contains the moral/ethical reasons and pertinent background. Why read through a 113-page legal document?…
    Read More “JLCNY Legal & Moral Response to NY AG’s Request to Dismiss Lawsuit”