Guest Post: A Possible Solution for the PA Royalty Issue
MDN is pleased to bring you another guest post from our very good friend Chris Acker. Chris is a geological engineer with an MBA. He grew up in the oil fields of Venezuela where his father, a petroleum engineer, was a drilling contractor for all the major players, onshore and off. Chris’ interest in energy economics and policy found him working for Exxon, Petroleum Industry Research Associates and Petroleos de Venezuela. He bought a parcel of land in the PA countryside twenty-five years ago and later semi-retired to work on antique pianos (see www.PianoGrands.com). A few years ago, it was established that Chris’ property in Susquehanna County sits atop one of the Marcellus shale’s most prolific areas. He leased with Cabot Oil & Gas and has a well sitting off his front porch not more than 200 yards away. Chris is now happily engaged once again in energy economics, with an emphasis, naturally, on gas. Chris is MDN editor Jim Willis’ right arm when it comes to scanning for stories, something Jim is profoundly grateful for. Chris sent Jim a note about the royalty issue, just a couple of paragraphs–and Jim found more wisdom in his few sentences than he has seen to date. So Jim asked Chris for permission to post his pearls of wisdom, and Chris decided to expand it. Below is a very thoughtful, intelligent, useful post on the royalty issue currently causing a schism between landowners and drillers in the Keystone State. We encourage everyone with an interest in this issue to read it. It contains a few new ideas we’ve not heard either side float–ideas that may help us find a way out of the current mess…
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Yesterday MDN reported the big story that Rice Energy is paying $2.7 billion to buy the assets of Vantage Energy (see 
Last July Canadian-based TransCanada, famously known for wanting to build the Keystone XL oil pipeline from Canada to the Gulf Coast (a plan that Obama obliterated), didn’t want to be left out of the most important midstream story of the century, so they bought Columbia Pipeline Group this year, closing on the sale in July (see 
2 Corinthians 6:15: “What harmony can there be between Christ and the devil? How can a believer be a partner with an unbeliever?” The obvious answer to the Apostle Paul’s hypothetical question in that passage is, “There is no harmony. A believer can’t partner with an unbeliever.” Yet that’s just what is happening among the ranks of anti-fossil fuel fools. We’ll explain. On Monday the usual suspects, namely the misnamed and odious Food & Water Watch and 200 or so of their closest “friends”–including the Sierra Clubbers, Natural Resources Defense Council, et al ad naseum (people who never think for themselves)–sent a letter (full copy below) to Environmental Protection Agency Administrator Gina McCarthy asking her, begging with her, pleading with her, to pretty-please change the results of the EPA’s own scientific study, performed by dozens (hundreds?) of scientists who analyzed 950 studies on fracking, conducting nine of their own primary studies, and concluding that fracking doesn’t contaminate ground water supplies (see 
At last week’s Shale Insight conference, MDN editor Jim Willis had the opportunity to listen to three top legislators, one each from PA, WV and OH. We reported on their panel discussion, titled “Pennsylvania, Ohio and West Virginia Legislative Leaders: The Future of the Industry” (see 
You may recall that evil corporate raider Carl Ichan fired the CEO of Cheniere Energy, Charif Souki, in December 2015 (see 
The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Pipeline companies worried about what people think; Eric Schneiderman’s #ExxonKnew coalition crumbling from within; Shale Crescent gains steam; stay skeptical about oil prices bouncing back; Congress quizes White House on strange climate change impacts claims; Mexico may open to U.S. drillers next year; and more!
Last week MDN reported that Vantage Energy, a Colorado company with major operations in the Marcellus, was once again attempting to float an initial public offering of stock (see 
The legal beagles at the Norton Rose Fulbright law firm recently issued a post on their Hydraulic Fracking Blog with updates on five important bills currently before the PA House and Senate that will affect the Marcellus industry (drillers, midstreamers and landowners)–with details for what’s in the bills and the status for each bill. Likely the most controversial of the bills is House Bill (HB) 1391, which would guarantee PA landowners a 12.5% minimum royalty regardless of post-production costs. That bill is due for a procedural vote today. Other bills are in bottled up in various committees where they may or may not make it out for a full vote. The PA House is in session today, tomorrow, and then Oct 17, 18, 19, 24, 25, 26, and Nov 14, 15. That’s it–just 10 more days in session before the end of the year. The PA Senate is in session today, tomorrow, and then Oct 17, 18, 19, 24, 25, 26. Just 8 more days for the Senate. So whatever is going to happen must happen quickly. Here’s a rundown on the five important bills, including HB 1391 (“Amendments to Oil and Gas Lease Act”), HB 2275 (“Changes to Environmental Quality Board membership”), HB 2277 (“Amendment to Oil & Gas Act related to bonding requirements”), HB 2319 (“Amendment to Oil & Gas Lease Act”), and HB 2361 (“Pennsylvania Turnpike Right-of-Way Act”)…
Several news sources are reporting that EmberClear has committed to fund and build a new $900 million, 1,000-megawatt electric generating plant in Harrison County, OH. The new plant will be fed by Utica Shale gas. Officials in the county have been working on a deal to lure the plant to the county since December of last year and stress it is a “long-term project” and “not a slam-dunk” because of extensive regulatory hurdles. If the project happens, it will generate 500 temporary construction jobs and 30 permanent jobs and use a huge amount of natural gas to power it (good for drillers!). MDN did some checking and found one potential cloud over the deal. EmberClear was, until July, a Canadian-based company. But it went bankrupt and after emerging from bankruptcy it changed its name to Ember Partners, now based in Houston, TX. Apparently the bankruptcy hasn’t slowed them down–but it does raise a question about the financial stability of the company and its ability to fund a big-money project like the Harrison Power Project. However, these projects are typically funded by one or several investors and not by the company that builds and operates the facility…
We’ve written plenty about President Obama’s so-called Clean Power Plan (CPP), introduced last summer, a plan to force electric generators to convert to using more “renewable” sources of energy–and less fossil fuels (see