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    A Closer Look at Kalnin Ventures and Their Marcellus Investments

    It’s time to look deeper into Kalnin Ventures, a Denver, CO-based investment firm that invests in U.S. upstream (mostly shale) deals. Sound familiar? Kalnin has been the “front man” for Banpu Pcl, Thailand’s largest coal producer. Over the past year and a half Kalnin/Banpu have snapped up some 55,000 acres and 355 shale wells–in the northeast Pennsylvania Marcellus (see our Kalnin/Banpu stories here). At least, we thought Kalnin was the “front man” for Banpu. It’s certainly Banpu money buying the leases and the wells, so we figured Kalnin was just an American subsidiary on paper for Banpu. But it turns out the truth is more nuanced. Kalnin is its own company. Yes, Banpu is the major benefactor providing the funds, but Kalnin is clearly in the driver’s seat with these Marcellus deals. Kalnin is not an operator. While news coverage may say Kalnin is “a top-20 gas producer,” as the Bloomberg article below says, that does not mean Kalnin is an operator. They’re investors. They’re owners. Other people do the actual drilling and management of the wells. In checking out the Kalnin website we found this description of the company: “Kalnin Ventures currently is backed by investors with equity fund commitments of USD 500 million, within its oil and gas fund BKV Oil and Gas Capital Partners, L.P. The company seeks to invest in attractive upstream oil and gas opportunities in North America (United States of America and Canada) with the goal of creating long-term sustainable value in the energy industry.” And right under that statement, this interesting statement: “Kalnin Ventures supports and upholds biblical principles as the foundations for the company’s values and underpins our company’s promise of integrity and transparency to our investors and partners.” Hats off to Kalnin for being upfront and unashamed of their God-honoring, faith-based principles. Not many companies have the guts to be so bold these days. Here’s an inside look at Kalnin Ventures, and how they continue to make money on Marcellus shale deals–even in a low-gas-price world…
    Read More “A Closer Look at Kalnin Ventures and Their Marcellus Investments”

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    EQT’s 4-Pronged Strategy for Defeating Corp Raider Jana in Rice Deal

    On Monday, Rice Energy was merged into EQT, creating the largest onshore natural gas producing company these United States (see Out with the Old: Rice Energy Sign Comes Down Day of EQT Merger). The $8.2 billion deal was first announced back in June (see EQT Buys Rice Energy in $8.2B Deal, Becomes #1 Gas Producer in US). There was plenty of drama along the way–primarily opposition to the deal by evil corporate raider Jana Partners, in collusion with Atlas Energy (see Proxy Fight: Jana Partners, Atlas Tries to Stop EQT/Rice Deal). Another corporate raider, D.E. Shaw, piled on too, but at least they supported the deal to merger Rice into EQT (see Under Pressure, EQT Moves Up Timeline to Explore Splitting Co.). You know we loathe corporate raiders. They buy enough stock in a company to get a board seat, then agitate, forcing the company to layoff people and sell assets–all in a bid to make the stock price pop so they can sell their shares at a handsome profit and move on to the next victim. Disgusting organizations and disgusting people. Jana was the primary opponent to the EQT/Rice deal. Jana was fresh off from helping Amazon take over the Whole Foods grocery store chain. Yet somehow EQT was able to fend off Jana’s efforts against their company. How did they do it? That was the subject of a recent post on the Seeking Alpha investor’s website. Here’s a fascinating look at the strategy EQT used to fend off an evil corporate raider…
    Read More “EQT’s 4-Pronged Strategy for Defeating Corp Raider Jana in Rice Deal”

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    PA DEP Sec. Visits Snyder County Gas-Fired Power Plant; 2nd Plant?

    Yesterday Patrick McDonnell, Secretary of the Pennsylvania Dept. of Environmental Protection, went on a field trip and took a tour of the Panda Power Funds Hummel Station natural gas power plant site in Synder County. In February 2015, Panda announced a joint venture with Sunbury Generation to build a whopping 1,124-megawatt plant on the site of a recently retired coal-fired plant near Shamokin Dam in Snyder County (see Panda Power Building 3rd Marcellus-Fired Electric Plant in PA). Since that time the project has made steady progress and is now 88% complete. Panda said on the tour yesterday it expects to complete the plant and begin full operations in February of next year–just a little over three months from now. UGI has already built a 34-mile pipeline to feed the plant (see UGI Ready to Begin Flowing Gas via $150M Sunbury Pipeline in PA). Sec. McDonnell is tickled pink (or should we say natgas flame blue) with the project, and said so yesterday. Perhaps the biggest news to come from the tour yesterday is that Panda and Sunbury Generation have partnered for a second gas-fired power plant–right next door to the Hummel Station plant…
    Read More “PA DEP Sec. Visits Snyder County Gas-Fired Power Plant; 2nd Plant?”

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    Rex Energy 3Q17: $47M Loss, 10 More Utica Wells on the Way

    Rex Energy, a driller focused mainly on the Marcellus/Utica (headquartered in State College, PA), issued their third quarter 2017 update earlier this week. The company continues to bleed money, losing $47 million in 3Q17, versus losing $55 million in 3Q16. An improvement, but showing a profit would be a whole lot better than a loss at this point. Highlights for 3Q17: Rex placed the four-well Wilson pad into sales (Butler County, PA) with initial 24-hour average sales rate per well of ~10.9 million cubic feet equivalent per day (MMcfe/d). Total production averaged 182 MMcfe/d–with 38% of that liquids production. Rex drills in both western PA and eastern OH. Rex officials said they are currently working on 10 new wells in Carroll County, OH that will go online in 2018. So far Rex has drilled 30 wells in the Buckeye State. Below is the full 3Q17 update, along with excerpts from the analyst phone call and the latest Rex slide deck…
    Read More “Rex Energy 3Q17: $47M Loss, 10 More Utica Wells on the Way”

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    PJM Double Talk: Grid Operator Floats Plan to Favor Nukes & Coal

    We’re wondering if anyone else smells a tad bit of hypocrisy with this one. In March, PJM Interconnection–the regional transmission organization (RTO) that operates the electric grid in all or parts of 13 states and the District of Columbia (including PA, OH and WV), released a study saying even with fewer coal plants producing electricity, PJM’s electric supplies–using more and more natgas and renewables–will be just fine (see Is PJM Electric Grid at Risk by Using More NatGas? Study Says No). Then just last month, PJM said DOE Sec. Rick Perry’s plan to favor electricity from nuclear energy plants and coal, in the name of “grid reliability,” is not needed (see Appalachian Grid Operators: We Don’t Need Trump’s Reliability Plan). But yesterday PJM turned around and released their own plan…which does just that! PJM published “Proposed Enhancements to Energy Price Formation” (full copy below) to set rates that supposedly more accurate reflect the contributions “fixed” electric producers like coal and nuclear make to the grid. That is, PJM is proposing changes to the pricing scheme that will cause a 2-5% increase for all electric rate payers in PJM–in the name of grid reliability. They want to deliver on Trump’s aim of grid reliability, but do it in a different way (with the same result of higher prices for everybody)…
    Read More “PJM Double Talk: Grid Operator Floats Plan to Favor Nukes & Coal”

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    Antis at DRBC Meeting Act Like Children, Demand Total Frack Ban

    We told you back in September that the obsequious members of the Delaware River Basin Commission (DRBC) will obey their radical environmental masters by voting to move forward with a permanent ban on fracking in the Delaware River Basin (see DRBC Votes Tomorrow on Permanent Frack Ban Resolution). The form the final ban language will take has yet to be delivered–it’s due by Nov. 30th. However, the DRBC isn’t singing from the same song sheet as the radicals at THE Delaware Riverkeeper. A total frack ban isn’t good enough for the nutters. You see, they don’t like language in a draft resolution they’ve read that would allow frack wastewater to be hauled/disposed of inside their precious Delaware River Basin playground (see Governors from PA-NY-DE Vote to Ban Fracking in Dela. River Basin). The DRBC held a regular meeting yesterday, and the nutters showed up in force–behaving like the children-in-adult-bodies they are. There were, “About two dozen protestors, some of them with cloth gags in their mouths,” protesting at the meeting, calling on board members to not only ban fracking, but ban any kind of water use in the basin related to it. Here’s an account of what happened, and what lies ahead…
    Read More “Antis at DRBC Meeting Act Like Children, Demand Total Frack Ban”

  • Marcellus & Utica Shale Story Links: Thu, Nov 16, 2017

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: H&H pitches fracking to A-K Valley business leaders in SWPA; Mike Turzai pledges no severance tax if he’s elected gov; new CNG buses on the way in Altoona; Chinese investment in WV could include PE resin; is Tom Wolf just billionaire Tom Steyer’s bobblehead?; FERC Acting Chairman floats interim plan to “save” coal & nuke plants; more M&A on the way in o&g sector; ONGC likely to suspend shale exploration in India; and more!
    Read More “Marcellus & Utica Shale Story Links: Thu, Nov 16, 2017”

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    NAACP Claims Atlantic Coast Pipeline is Racist, Harms Blacks Most

    We find it particularly offensive when a liberal/leftist group, like the National Association for the Advancement of [Liberal] Colored People, or NAACP, declares a pipeline project to be racist. The far-left organization made the outrageous claim, in a report they issued yesterday called “Fumes Across the Fence-Line: The Health Impacts of Air Pollution from Oil and Gas Facilities on African American Communities” (full copy below), that Dominion’s $5 billion 594-mile Atlantic Coast Pipeline (ACP) will force black people in low income communities in eastern North Carolina to bear “more than their fair share” of the so-called “risks” posed by the pipeline. ACP is a natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. The Federal Energy Regulatory Commission (FERC) issued a final approval for ACP in October (see FERC Approves Atlantic Coast, Mountain Valley Pipeline Projects). Since that time socialist/Democrat groups have marshaled their forces to oppose it. The Sierra Club is opposing it in court. Just yesterday we told you about a cadre of regional radical groups (backed by larger groups like Sierra Club) that have filed a petition with FERC opposing ACP (see Little Green Takes 1st Step in Suing to Block Atlantic Coast Pipe). The NAACP “report” is the latest in what appears to be a coordinated attack on the project by the usual suspects…
    Read More “NAACP Claims Atlantic Coast Pipeline is Racist, Harms Blacks Most”

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    ME2 Drilling in Delaware Co. Creates Small Sinkhole, Antis Swarm

    Sunoco Logistics Partners has had another “inadvertent return” (i.e. leak of drilling mud) while drilling underground in Delaware County, PA–in a Philly suburb. Every time it happens, no matter how little mud comes out of the ground (even less than a gallon), extremist antis jump up and down and declare an environmental holocaust. What makes this most recent episode different is that a sink hole has opened up near where the drilling mud and water came out of the ground. Not a good situation as the sink hole is not far from a home. The homeowner is not pleased. However, the homeowner is an anti, which makes it even worse. As soon as the mud came out of the ground and the hole appeared, the homeowner called in a swarm of other antis, supposedly to “document” the situation. They were really there to obstruct Sunoco workers who were trying to clean it up and prevent any further damage. Because the antis wouldn’t move their rear-ends out the way, Sunoco had to call in the police to move them. The anti homeowner got all hot-and-bothered that Sunoco had the nerve to call the cops on his anti buds. So far we’ve only found one mainstream media article about the episode, which is quite biased against Sunoco…
    Read More “ME2 Drilling in Delaware Co. Creates Small Sinkhole, Antis Swarm”

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    CELDF Continues to Agitate Against Indiana, PA Injection Well

    We previously reported on the story of two Pennsylvania towns that were either hoodwinked, or perhaps willing led astray, by the radical Community Environmental Legal Defense Fund (CELDF) into passing (now overturned) bans on fracking and injection wells in their towns–Highland Twp (Elk County) and Grant Twp (Indiana County). The two townships thought they would do an end-run around the state’s authority to issue permits for two injection wells, one in each township, by re-incorporating under so-called home rule charters. The towns essentially declared themselves independent of the state for a variety of matters, including oil and gas permits, which the PA state constitution clearly says is a function of ONLY the state Dept. of Environmental Protection. In March, the DEP issued final permits to each town, and at the same time sued each town to get those portions of their home rule charters, dealing with oil and gas, overturned (see PA DEP Issues 2 Wastewater Injection Well Permits, Sues 2 Towns). The towns agreed to “stand down” and, during their lawsuits, not oppose the DEP’s permits for the injection wells (see 2 PA Townships Won’t Enforce “Home Rule” Against Injection Wells). We thought that would be the end of it. But no, it seems in Grant Township the so-called leaders of the town continue to be brainwashed by the CELDF. In May, Grant’s attorneys filed a counter-claim against PA asking Commonwealth Court to recognize a sort-of extra-judicial set of rights the town can exercise over top of, or in addition to, state laws (instead of their previous position of trying to replace state laws). Unfortunately the judge is willing to give them some rope. Here’s an update on the CELDF anarchist-backed challenge happening in Grant–a threat to our very Constitutional form of self-government…
    Read More “CELDF Continues to Agitate Against Indiana, PA Injection Well”

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    WV DEP Secretary Issues Letter Explaining MV Pipeline Decision

    In March, the West Virginia Dept. of Environmental Protection (WVDEP) issued a federal water crossing permit for the Mountain Valley Pipeline (MVP)–a $3.5 billion, 301-mile pipeline that will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA (see WV DEP Grants Mountain Valley Pipeline Water Crossing Permit). In June, a group of profoundly radical “environmental” organizations filed a lawsuit in the U.S. Court of Appeals for the Fourth Circuit against the WVDEP for doing their job issuing the permit (see Radicals File Lawsuit Against WV DEP for Approving MV Pipeline). Because of the pressure of that lawsuit, WVDEP caved and reversed their decision in September, rescinding (called “vacating”) the permit for MVP (see Trouble for Mountain Valley Pipe: WV DEP Withdraws Water Permit). The WVDEP said they would “re-evaluate the complete application to determine whether the state’s certification is in compliance with Section 401 of the federal Clean Water Act.” The 4th U.S. Circuit Court of Appeals upheld WVDEP’s decision and granted the agency’s motion to invalidate the previous certificate they granted the project (see Court Backs WVDEP Move to Cancel Permits for Mountain Valley Pipe). Then earlier this month, in yet another 180 degree about face, WVDEP announced it has “lifted the suspension” of the MVP stormwater permit–and that the agency has decided to waive the permit, MVP has no need to get it before beginning construction (see WVDEP Reverses, Waives Water Permit for Mountain Valley Pipeline). Since that time WVDEP has faced withering criticism from antis, accusing the agency of abandoning their oversight of the project. On Monday, WVDEP Secretary Austin Caperton issued a letter to agency staffers (and to the public) to explain the agency hasn’t given up anything–that instead they have opted for a different type of oversight of the MVP project. We have to confess, it’s a very good letter and explains a lot. Bottom line: WVDEP is still very much large and in charge when it comes to overseeing impacts from the project on WV’s streams and rivers…
    Read More “WV DEP Secretary Issues Letter Explaining MV Pipeline Decision”

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    PA House Speaker Mike Turzai, Friend of O&G, Running for Governor

    Mike Turzai – PA House Speaker

    It’s certainly past time to end the miserable failure that is the Tom Wolf Administration. Republicans are lining up to run against him. But first will come a primary. One prominent state figure, PA House Speaker Mike Turzai, has kept his intentions about running close to the vest. But yesterday Turzai announced he would throw his hat in the ring, to run in the Republican primary in 2018 for the right to face off against failure Tom Wolf in November. We think it’s a no-brainer. Turzai has been a steadfast friend of the Marcellus industry over the years. It has been Turzai’s opposition that has held the line against a Marcellus-killing severance tax. He’s conservative. He’s pro-gas. And he’s anti-tax. Turzai is the leader PA needs to recover from the bumbling Tom Wolf…
    Read More “PA House Speaker Mike Turzai, Friend of O&G, Running for Governor”

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    PA Approves $2.4M Project to Run NatGas Pipes in Wyoming County

    Although we consider Pennsylvania Gov. Tom Wolf to be a failure, every now and again (rare as hen’s teeth), he swerves into doing something good. Or perhaps we should say he takes credit for doing something good, whether or not he actually had anything to do with it at all. Yesterday Gov. Wolf’s office issued a press release to announce that the state will spend $2.35 million via the Pipeline Investment Program (PIPE) to install natural gas lines in Tunkhannock Township (Wyoming County), which will provide clean-burning, locally extracted Marcellus Shale gas to 102 residential homes, 13 businesses and several civic buildings. The project will create something like 200 temporary construction jobs. Kudos to Wolf for not screwing this one up…
    Read More “PA Approves $2.4M Project to Run NatGas Pipes in Wyoming County”

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    Sierra Club Files Federal Lawsuit to Stop NEXUS Pipeline

    Honestly, the Sierra Club launches so many petitions with FERC (Federal Energy Regulatory Commission), and so many lawsuits against FERC regarding pipelines, it’s hard to keep them all straight. One of the northeast pipelines the Clubbers oppose is NEXUS, a $2 billion, 255-mile interstate pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada. NEXUS got final approval for the project from FERC in August, the first major pipeline to get approved following a newly restored quorum at FERC (see New FERC Quorum Votes Final Approval for NEXUS Pipeline). The Ohio EPA granted a water permit for the project in September (see Ohio EPA Grants Water Permit to NEXUS Pipe, “Learned” from Rover). Seeing the NEXUS freight train moving on down the tracks, the Clubbers filed a request for “rehearing” with FERC in September (see CORNballs, Sierra Club Continue to Fight NEXUS Pipeline in Court). Before anyone can sue to stop a federal pipeline project, the first step is to request a rehearing. If FERC delays or rejects a rehearing request, the supposedly aggrieved party can then launch a lawsuit in federal Appeals Court. And that’s what the Sierra Club did earlier this week. They filed a lawsuit against NEXUS in the Federal Court of Appeals for the District of Columbia, asking the court to force FERC to conduct a new review of the project, and in the meantime, shut it all down. The Sierra Club is rather good at shutting down pipelines and destroying jobs, as they recently did in PA (see Sierra Club Pipeline Lawsuit Throws 2,500 in PA Out of Work). Fortunately the PA episode was short-lived (just two days and work resumed). The question now is, will the lib judges in DC put up with yet another lame lawsuit from the Clubbers and shut down NEXUS construction?…
    Read More “Sierra Club Files Federal Lawsuit to Stop NEXUS Pipeline”

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    Richmond County, VA Commits Fracking Suicide with Vote to Ban

    Sadly, the “leaders” of Richmond County, VA have just voted to commit fracking suicide–a total ban on fracking in the county. They’re not the first. Last year King George County did the same thing, banning it in most of the county (see King George County, VA Commits Fracking Suicide with Vote to Ban). Augusta County was the first Virginia county to ban fracking throughout the entire county, which they did in February of this year. Richmond is the second to ban it countywide. No, there is no Marcellus Shale underlying the county, but there is the Taylorsville shale layer–and there is interest in drilling there, someday. The Chairman of the Board of Supervisors, F. Lee Sanders, said they are “just trying to set an example for other people.” Apparently the real motivation for the ban is not that there would be any actual drilling since only a sliver of Richmond contains Taylorsville shale. No, the real reason for the ban is worry over what other people think. Each year a group of radical leftists called American Rivers (Big Green group) puts together a sham list the call “America’s Most Endangered Rivers.” The Rappahannock River (in Richmond County) is on this year’s list in the #5 spot, because of the “threat fracking poses to clean drinking water.” The entire list is bogus–but the dolts in Richmond County fell for it anyway. They worry that lefties will say mean things about them if they allow fracking. So they banned it. And just like that, more citizens of this country have lost their hard-earned freedoms and property rights…
    Read More “Richmond County, VA Commits Fracking Suicide with Vote to Ban”

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    DOJ Pledges to Vigorously Prosecute Pipeline Eco-terrorists

    Members of Congress, indeed members of the public, are sick and tired of eco-terrorists targeting our pipeline infrastructure. In October we told you that 84 Members of Congress sent a letter to Attorney General Jeff Sessions asking the Dept. of Justice to step up its enforcement of existing laws against these sick terrorists (see 84 Members of Congress ask DOJ to Pursue Domestic Eco-Terrorists). Illegally shutting down a pipeline or damaging pipeline infrastructure, specifically petrochemical pipelines, puts lives at risk. Our nation needs hydrocarbons for transportation, electricity generation, to heat our homes, and to produce thousands of household products. Pipelines provide a safe and economical way to transport that energy. Eco-terrorists put all that in jeopardy. We’re happy to report that last Friday the AG Sessions and the DOJ responded to the good Congresspeople to say the Department will vigorously prosecute those who damage “critical energy infrastructure in violation of federal law.” Good! It’s about time. We’ve had enough of the inmates running the asylum. Back to law and order. Thank you Jeff Sessions and thank you Donald Trump…
    Read More “DOJ Pledges to Vigorously Prosecute Pipeline Eco-terrorists”