Dominion Cove Point LNG Now 38% Built, Rapid Progress Continues
At last check in March of this year, Dominion’s Cove Point LNG export facility, being built in Maryland, was 24% done (see Cove Point LNG Export Plant Now 24% Complete, Rapid Progress). We’re not three months later and that number is now 38% done. No wonder the odious Sierra Club and other Big Green groups are trying so hard to block work on it! Dominion just filed a monthly status and progress report (full copy below) for Cove Point and they report the facility is 38% built. They also report the engineering is about done (99.8% complete) and equipment purchases are also done (99% complete). This is refreshingly good news. There is nothing stopping the facility now…
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What if you’re an heir to land that was drilled on or under in Pennsylvania? There may be money “ready and waiting to be distributed”–there for the asking. But the asking is a bit complicated. In cases where the owner(s) of the mineral rights for a piece of property is unclear, the PA Dormant Oil and Gas Act (DOGA) comes in to play. What is DOGA and how does it work?…
An update on Spectra Energy’s Texas Eastern Transmission’s (TETCO) “Delmont Line 27” which exploded in Westmoreland County, PA on April 29 (see 
Virginia Department of Mines, Minerals and Energy (DMME) wants an independent, third-party review of proposed natural gas drilling regulations in the state. The last time such regulations was reviewed was in 2004, over a decade ago. A lot has changed since then. At that time, a group called the State Review of Oil and Natural Gas Environmental Regulations (STRONGER) performed the review. It’s only natural that the same group do the new review–so the DMME hired STRONGER to do it. And that has anti-drilling nutjobs in a tizzy. Eight radical anti-drilling groups say STRONGER has industry backing and will not be fair and impartial in their review. In other words, STRONGER won’t recommend rules so strict as to ban fracking, which is what the radicals want. Here’s the thing: STRONGER has members of Big Green groups as part of the organization–including Earthworks and Trout Unlimited. STRONGER receives funding from the U.S. Environmental Protection Agency (EPA) and the Dept. of Energy (DOE). So how do the nutters figure STRONGER isn’t objective or unduly influenced? If anything, STRONGER is influenced toward being too cozy with Big Green causes…
In February, a Philadelphia judge for the Court of Common Pleas (low-level court in PA) ruled in favor of the anti-drilling Clean Air Council against Sunoco Logistics Partners and their Mariner East 2 pipeline (see 
Two major pipeline projects have just received a big red light from the Federal Energy Regulatory Commission (FERC), pending changes to their plans. Energy Transfer’s Rover pipeline, a $3.7 billion, 711-mile Marcellus/Utica natural gas pipeline that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada, along with Columbia Pipeline’s Leach XPress, running from Marshall County, WV through Ohio to Leach, KY, got word from FERC that a small section where the pipelines cross must be reworked or it’s a “no go” for both projects…
Events related to drilling in the Marcellus and Utica Shale, primarily pro-drilling.
The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: No big Appalachian deals anytime soon; when will price recovery in natgas take place; smaller drillers healthy during downturn; NFG gets new director; New England’s need for more pipelines; new pipeline planned for NJ bay; SEC charges Breitling Energy CEO for fraud; digital will change o&g companies; and more!
As we’ve said for some time now, we don’t believe the Energy Transfer Equity (ETE) buyout/merger with Williams will ever take place. It’s been pretty plain that the blizzard of press releases by both companies saying “vote yes” on the deal has been legal posturing–so that when the deal is finally, completely, 100% dead–the lawyers can litigate for years to come, with each side trying to extract money from the other. The latest evidence comes from several news stories this week that Wall Street is betting that a judge is about to rule that a law firm (hired by ETE) to review the tax implications rendered their opinion “in good faith” that there will be significant tax implications arising from the deal. The way the agreement is structured, such a finding releases ETE from the deal. If the judge rules the opinion was in good faith, it’s 99.99999999% that ETE will announce the deal is dead–and the lawyers from Williams will be suing to extract boatloads of money from ETE…
Democrats just love to help themselves to OPM–other people’s money. They have a spending habit the equivalent of a crack junkie. Ever notice how junkies use very creative ways to try and feed the habit? One of their favorite tactics is to euphemize–call the same thing by a different name. In Pennsylvania, big-spending Dems in the legislature, along with their big-spending governor, Tom Wolf, are at it again. A severance tax is a tax on natural gas as it comes out of the ground–“at the wellhead.” You measure what comes out and you tax it. Another way to tax the same thing is called a “gross receipts tax”–which taxes the value the gas was sold for. In essence, a gross receipts tax is a sales tax. The price of the underlying good being sold goes up–so does the tax (it’s a percentage of the sales price). At the end of the day, a tax is a tax is a tax. You can call it a severance tax, or you can call it a gross receipts tax–it’s the same thing: a tax. Because Dems have short-term memory issues, we’ll remind the Dems reading this that Marcellus gas is ALREADY TAXED–by two different taxes: an impact fee and corporate income tax (on profits). PA is already paying the equivalent of a very healthy severance (or gross receipts) tax. But all the Dems can see are big dollar signs–that a gross receipts tax could raise $500 million per year or more–to feed their enormous big spending habit…
Maryland is actively looking at revising draft regulations that would allow fracking with an eye to adopting the new rules later this year, and letting fracking begin in the state in October 2017. The antis are, of course, apoplectic that fracking might happen in the liberal paradise of Maryland. However, the oil and gas industry is not all that thrilled with the proposed changes coming from the Maryland Department of Environment (MDE) either. We’ve been critical of new Gov. Larry Hogan and his lack of spine on the fracking issue (see 
This week the Developing Unconventional Gas (DUG) East event was held in Pittsburgh, PA. There was a fair bit of news and a host of interesting stories coming from the event. Below we’ve listed stories worth your time, with a very brief summary of why to read those stories. To tease you: the money people think land deals are about to pick up in the Marcellus/Utica; Dept. of Energy Deputy Director Carmine Difiglio signs the praises of the Marcellus/Utica; in the weeds talking about technology; CONSOL’s plans for the Ohio Utica; and much more!…
In May MDN told you that the Penn Township (in Westmoreland County, PA) zoning board voted to refuse to grant a permit to Apex Energy to build a DEP-permitted well pad in the town (see 
If this doesn’t take the cake: The very corrupt New York Gov. Andrew Cuomo sold out his own residents and their property rights to radical leftists by placing an ongoing moratorium on high volume (not low volume) hydraulic fracturing, and then by denying the Constitution Pipeline necessary permits to begin construction. He also signed on to nutjob Al Gore’s so-called climate initiative (an elaborate hoax to profit Big Green causes). Cuomo has done everything he can to stop natural gas production in the Empire State. And then he turns around, and as part of his official energy policy says (via his underlings at the Public Service Commission) says that natural gas is clean-burning and important part of the state’s energy future. Talk about chutzpah!…