M-U Landowners May be Asked to Lease “Pore” Rights for CO2 Capture
Over the past decade or more landowners have been approached about leasing their property and/or mineral rights–for shale drilling, pipelines, solar and wind farms, etc. Here’s a new one to add to the list: pore rights. Pore space is the underground space where carbon dioxide that’s captured from various processes can be injected and stored, keeping it locked away underground where it theoretically won’t damage Mom Earth. The whole concept of storing CO2 underground would be funny if it were not so sad that grownups are actually doing this. But we digress. Leasing pore rights may be the next big thing for landowners and mineral rights owners in the Marcellus/Utica region as carbon capture and storage takes off. However, who owns pore rights? Landowners or mineral rights owners?
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The Acting Deputy Secretary for Oil and Gas Management at the Pennsylvania Dept. of Environmental Protection (DEP), Kurt Klapkowski, spoke to the DEP’s Oil and Gas Technical Advisory Board (TAB) yesterday, updating the board on his program’s finances (lack thereof). As part of his comments, Klapkowski observed that each year the number of new shale wells drilled in PA decreases. He offered some reasons why that may be happening. We have a few reasons to add that Klapkowski overlooked.
Pennsylvania has already received the first $25 million payment from the so-called infrastructure bill, a down payment on what will eventually be ~$400 million over the next 15 years to plug abandoned and orphaned oil and gas wells across the state (see 
Pennsylvania State Rep. Marina White (Republican from Philadelphia, a true rarity) sponsored a bill that’s getting traction in Harrisburg. House Bill (HB) 2458, which passed with a vote by the full House on April 13, creates a task force to study how to establish Philadelphia LNG exports to international markets, particularly those in Europe. The bill creates a task force to study the economic feasibility, financial impact, and the security needed to turn the Port of Philly into an LNG export terminal, exporting PA’s abundant and clean Marcellus Shale gas.
Not content to prosecute years-old accidents as “crimes” for the shale industry in his zeal to attack fossil energy, Pennsylvania Attorney General Josh Shapiro, a vicious radical running for governor this November, is now targeting mom and pop conventional drillers too. Specifically, he is investigating conventional drillers for spreading non-toxic brine on PA’s dirt roads in the summertime, a legal practice in the Keystone State (at least it was legal until last December), looking to prosecute someone, anyone, to grab another headline and stoke his radicalized base of supporters.
It’s a sad day in Pennsylvania. Gov. Tom Wolf and his patsy at the Dept. of Environmental Protection, Sec. Pat McDonnell, have finally prevailed and will publish a final version of new regulations forcing the state to join the so-called Regional Greenhouse Gas Initiative (RGGI)–a carbon tax that is about to unleash economic hell on PA. The final step before RGGI, a $2.6 billion tax on PA’s electric ratepayers over the next ten years, becomes a defacto new law is for the final version of the regulation to be published in the Pennsylvania Register. Tomorrow’s edition will carry the RGGI regulation (full preview copy below).
Last Tuesday, Pennsylvania’s Commonwealth Court ruled that Gov. Tom Wolf’s obscene carbon tax, called the Regional Greenhouse Gas Initiative (RGGI), will not go into effect until “pending further order of the court” (see 
Pennsylvania, Ohio, and West Virginia are all scrambling to form intrastate working groups or other alliances in an attempt to be THE state chosen for one of four regional hydrogen hubs funded by the recently passed so-called Biden infrastructure bill (see 
On Tuesday, Pennsylvania’s Commonwealth Court ruled that Gov. Tom Wolf’s obscene carbon tax, called the Regional Greenhouse Gas Initiative (RGGI), will not go into effect until “pending further order of the court.” What further action from the court is necessary was not disclosed. What is obvious is that Wolf’s attempt to force the state to join RGGI is now on a very long pause, until more court cases are filed. The end game (for Republicans) is to run out the clock until a new governor is elected in November (hopefully a Republican). Either that, or convince the 5-2 liberal majority of the PA Supreme Court (which is likely where this will end up) to rule against Wolf’s unilateral attempt to force the state into the RGGI compact.
Analysis by S&P Market Intelligence notes that new shale drilling permits issued in Pennsylvania dipped in February 2022 when compared to February 2021 (and dipped compared with January of 2022). Fair enough. The question is, Why did permits dip in February? The article alludes to a possible reason–a dip in the Henry Hub NYMEX price in February, going below $5/MMBtu. While price may have played a role, we believe there’s another contributing factor to the permit dip in February.
Yesterday the Pennsylvania State Senate failed to override a veto of Gov. Tom Wolf of a resolution that would have stopped PA from entering the so-called Regional Greenhouse Gas Initiative (RGGI), an obscene carbon tax scheme. The override failed by a single vote. Wolf’s patsy, Dept. of Environmental Protection Secretary Pat McDonnell, gushed that he was “pleased” with the failure of the override. What happens now? A lawsuit lingers that can still block RGGI, but if that doesn’t work, PA residents will begin paying MUCH higher rates (a new tax) for their electricity beginning July 1st.
The Pennsylvania Independent Fiscal Office (IFO) is highly respected by all of PA state government. IFO’s mission is to review state budgetary policy and render expert, nonpartisan opinion. The IFO, at the request of the Republicans in the state legislature, recently reviewed Gov. Wolf’s Regional Greenhouse Gas Initiative (RGGI) modeling, presenting its findings to a joint hearing of the Senate Environmental Resources and Energy Committee and the Community Economic and Recreational Development Committee on Tuesday. The IFO report finds that the money PA will spend on emissions credits at RGGI auctions will result in most PA electric rates quadrupling. You read that right–get ready to pay 4X for electricity if RGGI goes into effect and you live in the Keystone State.