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    WV O&G Property Tax Revenue $96M in 2017, Down $38M from 2016

    The West Virginia Oil & Natural Gas Association (WVONGA) issued a press release yesterday (that MDN didn’t receive) to tout the fact that property tax revenue on WV oil and natural gas production will provide “just over $96 million” to fund local school systems and vital community services. That is certainly cool and worth calling attention to. However, the WVONGA press release failed to point out that property tax revenue for local schools from o&g property taxes is going down by $38 million in 2017–because of the formula used to calculate those taxes. In Wetzel County, for example, Wetzel County Schools project a loss of $8.6 million in property tax revenue from oil and natural gas production for the 2017 tax year as compared to 2016. WV uses a formula based on production and pricing from the period two years prior to the current year. So property taxes from o&g are calculated on how much production, and the price received, during 2015–right at the bottom of the market. Which is why when production and prices are up now, tax revenues are down. Still, $96 million is nothing to sneeze at. Here’s the WVONGA press release, along with the rest of the story…
    Read More “WV O&G Property Tax Revenue $96M in 2017, Down $38M from 2016”

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    Ashtabula, OH Residents Give New Pipeline Thumbs Up @ Open House

    Click for larger version

    RH energytrans, which plans to build a short 60-mile pipeline from Pennsylvania to Ashtabula County, OH, recently held an open house for government officials, landowners who will be affected by the pipeline, and “interested residents.” The event was held in Conneaut (Ashtabula County), OH, and was remarkable for what didn’t happen. What didn’t happen was antis protesting. Local officials (those who spoke) unanimously support the project and the fracked natural gas it will bring to the county. We didn’t spot a single negative comment–from officials, landowners or interested residents. In October MDN brought you details about the proposed $86 million Risberg Line Project (see New 60-Mile Pipeline Proposed from NW Pa. to NE Ohio). The project will use approximately 32 miles of existing pipeline in an established Right of Way originating in the Meadville, PA area. Approximately 16 miles of new pipeline will be installed in Pennsylvania and approximately 12 miles of new pipeline will be installed in Ohio–meaning 28 miles of brand new “greenfield” pipeline needs to get built. Two school districts in Ohio where the pipeline will traverse have agreed to reduce the amount of property tax the pipeline would need to pay by 75% over a 15-year period–a huge vote of confidence (see Update on Proposed 60-Mile Pipeline from NW Pa. to NE Ohio). Here’s what happened last week at the RH energytrans open house for the Risberg Line Project…
    Read More “Ashtabula, OH Residents Give New Pipeline Thumbs Up @ Open House”

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    More on EQT Board Member Serving in WV Gov’s Office

    Yesterday MDN told you about EQT board member Bray Cary and his work as an unpaid, “informal” adviser to WV Gov. Jim Justice (see EQT Board Member Unofficial Adviser to WV Gov Justice). WV media continues to track (hound) this story. The bone of contention is that Cary, who is a long-time WV resident (lives in Charleston) appears to have unfettered access to Justice. Cary has his own “swipe card” giving him 24/7 access to the Capitol. Cary has been “taking part in policy-oriented meetings.” He’s not on the payroll and he doesn’t answer to anyone. He’s also not subject to the state Ethics Act. And because Cary sits on the EQT board, and EQT has big assets in WV (and a big interest in pushing for a forced pooling law), critics see a conflict of interest. But is there? Yes, Cary sits on the EQT board, but that’s just one small piece of Cary’s background and active life. Cary is “best known for his former role as an executive with West Virginia Media.” He’s a player. He’s connected. An important guy. And Gov. Jim Justice wants to bend his ear on occasion, to get Cary’s advice and feedback. The real issue is not will/does Cary’s presence give EQT some sort of unfair advantage in the highest levels of WV state government. The real issue is the *appearance* of a conflict of interest–whether there actually is one or not…
    Read More “More on EQT Board Member Serving in WV Gov’s Office”

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    New Study Shows NO Link Between Marcellus & PA Mortality Rates

    An important research report has just been released that shows no connection between Marcellus Shale drilling and death (i.e. mortality) rates in Pennsylvania. Since the dawn of shale fracking, antis have made wild claims about fracking leading to low birth weights, asthma, and early death for those who live near active shale drilling operations. This study (full copy below) refutes that junk science–by using real data and real facts. Energy in Depth (an industry group) sponsored the research, but they hired an independent researcher to do the work. Hey, if we don’t pay for real research, it won’t get done! The independent researcher analyzed Pennsylvania Department of Health data for the state as a whole and the counties of Bradford, Greene, Lycoming, Susquehanna, Tioga, and Washington from 2000 to 2014. The data shows mortality rates in those six PA counties (which happen to be the counties with the most Marcellus Shale development) have declined or remained stable since shale production began in the region. In fact, the top Marcellus counties experienced declines in mortality rates in most of the indices. This is yet more proof that natural gas is not only good for the environment, it’s good for humans too…
    Read More “New Study Shows NO Link Between Marcellus & PA Mortality Rates”

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    Baker Hughes Nov Rig Count – US & Marc/Utica Counts Go Down

    The International (non-U.S.) Baker Hughes rig count for November 2017 was 942, down 9 from the 951 counted in October 2017, but up 17 from the 925 counted in November 2016. The U.S. rig count for November 2017 was 911, down 11 from the 922 counted in October 2017, but up 331 from the 580 counted in November 2016. The average Canadian rig count for November 2017 was 204, unchanged from the 204 counted in October 2017, and up 31 from the 173 counted in November 2016. What about rig counts in the Marcellus/Utica? Pennsylvania lost one rig (second month in a row PA has lost a rig), running an average of 31 rigs during October. Ohio gained a rig to run an average of 30 rigs. West Virginia saw the biggest swing–a huge swing–by losing 3 rigs, running an average of 12 rigs last month. So the Marcellus/Utica combined lost 3 rigs last month. Here’s the BH update…
    Read More “Baker Hughes Nov Rig Count – US & Marc/Utica Counts Go Down”

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    Eversource Threatens Enviro Defense Fund w/Lawsuit re False Report

    In October the radical group Environmental Defense Fund (EDF) published a “report” that makes the preposterous claim that New England customers have overpaid utility bills by $3.6 billion due to collusion between the natural gas and electricity industries (see EDF Accuses New England Gas Utilities of $3.6B Market Manipulation). The report says New England utility companies Eversource and Avangrid intentionally manipulated the flow of gas along the Algonquin natural gas pipeline by placing and later withdrawing orders, in order to spike the cost of gas which then spiked the cost of electricity generated by the resulting higher cost of gas. It is a totally made-up, false report. But in today’s world that doesn’t matter. A group of ambulance-chasing lawyers found enough people to sign on to launch a class action lawsuit against the companies for market manipulation (see New England Lawsuit Claims Utilities “Constrained” NatGas Pipeline). If you allow a lie to linger long enough, it becomes “truth” for the general population. So Eversource is fighting back–telling EDF to remove their false report from the internet and to stop with the false smears–or else. Or else what? Or else Eversource will sue EDF into oblivion. In a “cease and desist” letter sent to EDF, Eversource said this: “Your false and misleading statements are immediately actionable and expose you and those acting in concert with you to liability for substantial damages.” The letter also warns EDF staffers to not destroy emails and other communications. The implication is that warrants may be issued, looking to see who the EDF is colluding with to try and destroy honest companies like Eversource. It’s about time someone gave Big Green groups like EDF a little bit of their own medicine…
    Read More “Eversource Threatens Enviro Defense Fund w/Lawsuit re False Report”

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    Thank God Trump Got Us Out of Paris Climate Shakedown Deal

    Yesterday French President Emmanuel Macron held a “One Planet Summit” to mark the second anniversary of the idiotic Paris Climate Accord–an agreement that was nothing more than an elaborate shakedown/theft of American money. How do we know? Because the big promoters of the accord–France and Germany–refuse to put up their own money to fund the goal of lowering carbon dioxide emissions. Yeah, they wanted the U.S. to be the patsies paying for the party. Back in June President Trump pledged to pull the U.S. out of the Paris farce (see Three Cheers! Trump Pulls U.S. Out of Horrible Paris Climate Treaty). The United States would have been punished economically–transferring billions of our taxpayer dollars to other countries for generations to come. All in the name of supposedly stopping global warming. China and India would get to add as many coal-fired electric plants as they want, while we would have to close ours down, essentially shifting our jobs to other countries. The deal was bad from the beginning. Even if we had stayed in and even if all countries lived up to their obligations (i.e. paid their “fair” share) under the treaty, the projected difference in lowering global temps by 2100 would have been 0.17 Celsius–little more than one-tenth of a degree. After spending hundreds of billions of dollars. THIS PLAN WAS INSANE from the start. But you won’t learn that from mainstream media. So Marcon threw a big party to honor the treaty (with people arriving in their carbon-belching planes and trains and trucks and cars and SUVs). Even those who support this flummery and yesterday’s big party could not avoid pointing out that with the U.S. gone, nobody is willing to pay for the party…
    Read More “Thank God Trump Got Us Out of Paris Climate Shakedown Deal”

  • Marcellus & Utica Shale Story Links: Wed, Dec 13, 2017

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Rover Pipeline donates $270,000 to local first responders; tech training needed in WV with China big investment; PennEast concerns unfounded; Tellurian raises $94.8M for LNG export plant; EIA bashers should check their own crude oil numbers; US exporting oil & gas at a record pace; Texas research finds no link between fracking and water contamination; Stanford’s renewables map to nowhere; Germany supports Russian natgas pipeline; and more!
    Read More “Marcellus & Utica Shale Story Links: Wed, Dec 13, 2017”

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    Eclipse Buys 44.5K “Core” Utica Acres for $93.7M…in Central PA!

    Eclipse Resources, a Marcellus/Utica pure play driller headquartered in State College, PA, drills almost exclusively in the Ohio Utica. That is, until now! Yesterday Eclipse announced it has purchased 44,500 acres of oil and gas leases and producing wells in Tioga and Potter counties in north central Pennsylvania for $93.7 million–which works out to be ~$1,900/acre (very low cost). The aim of the purchase is to drill in the Pennsylvania Utica Shale. For the past few years MDN has heard about/highlighted stories of drillers going after the Utica Shale in PA–particularly in Tioga County (see Another Impressive Utica Well Pops Up…in Pennsylvania!). Eclipse cut a deal to buy the land and wells from Travis Peak Resources. We wrote about Travis Peak in December 2015 (see The 411 on New Driller Firing Up Rig in Tioga County, PA). Travis Peak, based in Austin, TX, was founded in November 2013 by a group of experienced guys who previously worked for companies like Amoco, Exxon, Pioneer Natural Resources and Newfield Exploration. A small company consisting of industry pros with financial backing from EnCap Investments. The best part of this deal for Eclipse? No money changed hands. Eclipse issued shares of stock in the company in return for picking up the acreage/wells. Also part of yesterday’s announcement by Eclipse is that they have picked up “outstanding equity interests” in small Marcellus/Utica pipeline company Cardinal Holdings–paying $18.3 million in cash. We have the full announcement below, a copy of the Eclipse presentation with lots of pretty maps and charts, and commentary about the Eclipse purchase…
    Read More “Eclipse Buys 44.5K “Core” Utica Acres for $93.7M…in Central PA!”

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    Banpu/Kalnin Buys 5,289 Ac & 35 Wells in NEPA Marcellus for $105M

    Banpu Pcl, Thailand’s largest coal producer, in cooperation with their American-based partner Kalnin Ventures, has just snapped up their sixth piece of the Marcellus Shale–once again in northeast Pennsylvania. Kalnin announced this morning they have cut a deal, using $105 million of Banpu’s money, to buy an unspecified amount of Marcellus acreage and 35 producing shale wells in Wyoming County, PA from Warren Resources. Based on a previous Kalnin story, yesterday’s announcement, and the Warren Resources website, MDN believes the total acreage involved is 5,289 net acres (6,982 gross). Which doesn’t seem like much. But you have to view the purchase in context. That $105 million paid is mostly for the producing 35 wells (roughly $3M per well). Plus, the acreage is no doubt adjacent to previous acreage and wells Kalnin/Banpu bought in Wyoming County back in May (see Thai Company Banpu Invests in Another 34 Marcellus Wells in NEPA). It was just last week we spotted and highlighted a story that quotes Banpu’s CEO Somruedee Chaimongkol as saying her company is considering “putting more money on top of the $500 million” already committed for shale gas purchases in the Marcellus (see Thailand’s Banpu Looking to Invest More Money in NEPA Marcellus). The “considering” period didn’t last long! This sixth investment now puts Banpu’s investment stake in the NEPA Marcellus at $522 million, with no end in sight…
    Read More “Banpu/Kalnin Buys 5,289 Ac & 35 Wells in NEPA Marcellus for $105M”

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    Cabot O&G Considers Drilling in Ashland County, OH

    Important Update (12/18/17) – A highly placed source in Cabot Oil & Gas called MDN to let us know Cabot is not looking to drill the Utica Shale in Ashland County, OH, as we first presumed. Instead, Cabot is looking to drill LOWER than the Utica–in a different rock layer. We were not told which layer. This is purely exploratory. Sometimes you hit and sometimes you miss. Something about the area has caught Cabot’s attention–but that doesn’t mean it will pan out. Stay tuned!

    This, for us, is HUGE news. Cabot Oil & Gas is sniffing around the possibility of drilling in the Ohio Utica. We suppose it shouldn’t surprise us, but it does. Especially since we haven’t heard or read a word about Cabot’s Utica interest–until now. Put yourself in Cabot’s shoes–what comes next? After all, they’ve been drilling in Susquehanna County, PA for the last 10 years. Sooner or later Cabot will run out of new places to sink wells. Cabot previously fiddled around in the Eagle Ford Shale play in Texas, drilling for oil, but that hasn’t panned out. In May, MDN picked up on a little bit of information slipped into Cabot’s first quarter update–the company is spending $125 million THIS YEAR on buying leases and drilling test wells, in plays they weren’t ready to disclose at that point (see Cabot O&G 1Q17 – Oil Turning Cabot’s Eye Away from Marcellus). The only hint we had about where Cabot may be looking was this statement: “our focus is going to be oil.” We now know where at least some of that $125M is going–to Ashland County, OH. Cabot is looking to drill an exploratory well (or two or three) in Ashland, to see what they find. We think Cabot’s choice of location interesting. Ashland County is located well west (and north) of Ohio counties currently drilled for Utica oil and gas. We’ve checked the statistics in our forthcoming Marcellus & Utica Shale Almanac. Devon Energy got a single permit and spud (began to drill) a single well in Ashland’s Utica Shale back in 2011. Since that time (and through the end of 2016) no other permits were issued, and there’s been zero production from that single Devon well. It’s likely Cabot is shopping for a bargain–go where no one else is going, to see if they can make the magic happen once again that they’ve experienced in northeast PA. The reason we know about Cabot’s dalliance in Ashland is because local antis in the county are up in arms over the prospect of Cabot “fracking” the county…
    Read More “Cabot O&G Considers Drilling in Ashland County, OH”

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    Cabot O&G Asks Judge to Make Dimock Anti Pay for Extortion, Slander

    Cabot Oil & Gas is tired of being sued, and slandered, by people like Dimock resident Ray Kemble and his ambulance-chasing lawyers. So in August Cabot sued back–for $5 million (see Cabot O&G Countersues Dimock Anti, Lawyers). Kemble lives in Dimock Township, in Susquehanna County, PA. Kemble and other families claimed Cabot’s drilling in the area (10 years ago) caused problems with their water wells–a claim strongly refuted by Cabot.
    Read More “Cabot O&G Asks Judge to Make Dimock Anti Pay for Extortion, Slander”

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    EQT Board Member Unofficial Adviser to WV Gov Justice

    EQT, now the largest natural gas producer in the United States since adding Rice Energy to the fold, has major assets in West Virginia–wells and leased acreage. The company also has a lot of influence in the state–in the judiciary (see WV Supreme Court Reverses Itself, Post-Production Deductions OK), the legislature (see WVONGA Makes Plans to Push Forced Pooling Lite in 2018), and now in the executive branch. News has just broken that EQT board member Bray Cary is an unpaid, “informal” adviser to Gov. Jim Justice–a situation that’s raising some eyebrows…
    Read More “EQT Board Member Unofficial Adviser to WV Gov Justice”

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    Plum, PA Passes Ordinance to Allow Fracking – Antis Livid

    In October, local officials in Plum, PA (Allegheny County) approved a plan by Huntley & Huntley (H&H) to drill a series of Marcellus wells on a single well pad in their municipality (see Plum, PA Gives Huntley & Huntley Green Light for Shale Drilling). Plum’s leaders got blowback from some residents (antis) over their decision to conditionally approve H&H’s request. In Plum, fracking is allowed in any zone if a conditional use is granted. That’s what happened in October–the Plum Council issued a conditional use exception for H&H to drill on 92 acres near Coxcomb Hill Road in Plum. To avoid dealing with more such conditional cases, Plum Council cooked up proposed changes to zoning ordinances (ordinances which haven’t been updated since 1993) that will only allow fracking in rural residential and industrial zones (see Plum, PA Officials Hold Hearing on New Restrictions for Fracking). At the time, H&H said the changes would be too restrictive. However, they appear to have adopted the “half a loaf is better than no loaf” philosophy, opting to support the new rules. Yesterday Plum Council moved ahead and adopted the new rules. Antis blew a gasket. They think the new rules are still too lenient because it allows drilling in rural residential areas. One mouthy anti planted herself in front of the microphone yesterday and refused to move, threatening to sue everyone and everything related to the vote “if my family, my property, myself is damaged in any way.” Whatever. Here’s what went down yesterday in Plum…
    Read More “Plum, PA Passes Ordinance to Allow Fracking – Antis Livid”

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    NY State Retirement Fund Invests More Money in Fracking Co.

    We found this story illustrative of the rank hypocrisy so prevalent in our beloved home state of New York. Even the most cursory follower of shale energy knows that our corrupt governor, Andrew Cuomo, decided to ban shale fracking in the Empire State in 2015 (see It’s Official: Cuomo Bans Economic Opportunity & Prosperity in NY). Since that time Cuomo has acted like the tin-pot, despot dictator he is, by moving to block pipelines coming into the state that carry fracked natural gas (see NY Gov. Cuomo Refuses to Grant Permits for Constitution Pipeline and Cuomo’s Corrupt NY DEC Blocks NFG Northern Access Pipeline Permit). Cuomo recently lost one such battle, attempting to block a 7.8 mile pipeline from being built to a gas-fired electric plant in Orange County (see Millennium Begins Building 7.8 Mile Pipeline in Orange County, NY). Instead of using evil, filthy, vile “fossil fuels” like natural gas, Cuomo prefers to shower billions to his friends who promise they will bring solar and wind to the state. Cuomo has implemented a policy that demands 50% of New York’s electric supplies come from solar and wind by 2030–a delusional fantasy. The New York State Common Retirement Fund is the state’s ginormous pension fund for state workers (including public school teachers)–with some $140 billion of investments. Anti-drilling New York State Comptroller Thomas DiNapoli is the sole trustee in control of the fund, overseeing its investments. The fund invests in plenty of oil and gas companies–i.e. frackers–which we were once again reminded of when spotting a news clip that the Fund has just increased its holdings in PDC Energy–a shale fracker…
    Read More “NY State Retirement Fund Invests More Money in Fracking Co.”

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    Crazy Judges Threaten Fossil Fuel Use in Case by Radicalized Kids

    Yesterday the Ninth Circuit Court of Appeals in California (sometimes referred to as the Ninth Circus) heard arguments from the Trump Administration, representing the federal government, and from lawyers representing children they are mentally abusing and who have filed a lawsuit that aims to force the end of the use of all fossil fuels in the United States–in the name of so-called man-made global warming (see yesterday’s post for background: Climate Case by Brainwashed Kids Argued in Federal Court Today). The case began several years ago when Lord Obama reigned supreme–so this isn’t just another anti-Trump thing. The wacky Cali judges hearing the case yesterday should have stopped this insanity now, before it goes to trial, scheduled for February. But the three judges didn’t stop it, and from the tone of their questions and comments, it appears they want this one go to trial…
    Read More “Crazy Judges Threaten Fossil Fuel Use in Case by Radicalized Kids”