Blockbuster: Obama/Govs/EPA/Tom Steyer Collude on Climate Rules
A blockbuster report from the Energy & Environment Legal Institute blows the doors off the potentially illegal collusion between the Obama White House, several state governors, and climate scare-monger groups backed by billionaire Tom Steyer. The report, titled Private Interests & Public Office: Coordination Between Governors, the Obama White House and the Tom Steyer-“Founded and Funded” Network of Advocacy Groups to Advance the “Climate” Agenda (full copy below) connects the dots of a disgusting, coordinated attack on fossil fuels (specifically coal, but also other fossil fuels). Using open records laws E&E Legal has produced a must-read exposé that lays bare how environmental extremists have put their own self-interests ahead of the nation, profiting from it as they do so. “This is the 5th transparency report in a series that E&E Legal has published on the ‘green movement’ and its network of public, private, and business interests, and what is clear is that 1%-ers are using ‘climate’ policies to destroy politically disfavored industries in order to transfer wealth to the politically preferred,” said Craig Richardson, E&E Legal Executive Director. We encourage you to read the report, and get as angry as we are about the ongoing deception that begins at the very top–with Barack Hussein Obama…
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The U.S. Labor Department is on a witch hunt, unfairly targeting not only the Marcellus/Utica drilling industry–but any company in the entire supply chain that benefits from drilling, including hotels, restaurants and convenience stores. When you have the full force and backing of an out-of-control president like B.H. Obama, you get kind of drunk on your own power. That seems to be what has happened at the Labor Department. The Department of Labor’s wage and hour division in Pittsburgh has been targeting Marcellus-related companies since 2012, arriving for surprise audits of how companies classify employees–and how they pay them (particularly overtime payments). The jack boots have investigated 395 companies in three years and assessed $10 million in wages, civil penalties and liquidated damages and spurred a number of lawsuits by employees (and even the Labor Dept. itself) against employers. One question: Why hasn’t the Labor Department launched ANY investigations into the employment practices of Big Green organizations like the Sierra Club, THE Delaware Riverkeeper, William Penn Foundation, Heinz Endowments, PennFuture, Clean Air Council, Food & Water Watch and a myriad of other such organizations where wild-eyed zealots appear to work 24/7 for weeks on end in their mission to end all fossil fuels? Surely there are some overtime violations happening in Big Green…
There is no doubt the current stock market crash (what else can you call it?) has affected everyone and everything–including the Marcellus/Utica industry. Yesterday the price of West Texas Intermediate (WTI) crude oil closed the trading day at $38.24 per barrel–the lowest price since 2009 during the dark days of “the Great Recession”. Natural gas trading at the benchmark Henry Hub in southern Louisiana, often used as a proxy for all natural gas, closed at $2.64 per thousand cubic feet (Mcf). The Dow Jones Industrial average sunk another 588 points to close down more than 1,000 points in two trading sessions–last Friday and yesterday. At the beginning of trading yesterday, the DJIA experienced its biggest intraday (within a single day) loss ever–plunging more than 1,000 points as trading began. Thankfully it regained nearly half of that–but still, it was scary on many levels. All of that fear has affected all stocks, including the stock price for some of the biggest Marcellus/Utica drillers, who saw losses averaging 7-10% in a single day–yesterday…
A favorite pastime for people who support and for people who oppose fossil fuels is to throw around estimates of how long the Marcellus Shale will be around. How long will there be enough gas in the ground that drillers will actively pursue getting it out of the ground? On the anti-fossil fuel side you have discredited peak oil theorists like Art Berman who says we’re going to run out of gas in the next 10 years (see 
MDN is pleased to add another occasional voice to Marcellus Drilling News. Stephen Heins is an energy and regulatory consultant for a Wall Street firm, and the former vice president of communication for Orion Energy Systems. Steve has penned an article (below) pointing out five critical problems with the recently announced EPA Clean Power Plan. Steve makes a strong case that the EPA needs to hold off on implementing this draconian new plan until the Supreme Court hears a case brought against the plan by 16 states. Pull up a chair and enjoy Steve’s expert insights…
An unfortunate decision in an Ohio court case may have far-reaching implications for Ohio landowners. In Armstrong v. Chesapeake Exploration, L.L.C., landowners Myron and Nikki Armstrong purchased 61 acres of land in Tuscarawas County, OH in 2003 with an existing oil and gas lease (dating back to 1972). After purchasing the property, the Armstrong’s land was pooled into a drilling unit and a well was drilled. We do not know how much (or even if) the well produced in the way of gas and oil. We don’t know if it was hooked up to a pipeline for production. We assume it was hooked up and is producing because the Armstrongs have sued to cancel the lease saying they haven’t received a single royalty check since the well was drilled. Tuscarawas County Court ruled that because there is no express provision in the original lease saying “you can cancel this lease if we don’t pay you the royalties we say we’ll pay you,” the court ruled in favor of Chesapeake and the company that owns the lease and is supposed to pay the royalties–Belden & Blake. The Armstongs appealed the decision to the Ohio Court of Appeals, Fifth Appellate District. That court has just ruled the same way–saying even though royalties haven’t been paid, that’s not a good and sufficient reason to cancel the lease…
We have to chuckle. Anti-drillers are so predictable. As we’ve said going back as far as an event we attended in Binghamton when the former mayor of DISH, Texas, Calvin Tilman (in 2010), we observed that many in the audience are 60s hippies with a new cause in life–to oppose drilling/pipelines/fossil fuels in general (see 
Our favorite government agency, the U.S. Energy Information Administration (EIA), published an article on Friday that appears to “take sides” in the Pennsylvania debate over whether or not to institute a severance tax. Which is a disappointment. Until now the EIA has stayed above the fray in such issues. The EIA article from Friday offers a grossly misleading side-by-side comparison of where states get their primary source of revenue to feed their voracious appetites to transfer wealth from those who earn it to those who don’t–and how much is contributed by oil & gas severance taxes. The EIA compares tax revenues from five major fossil fuel generating states–Alaska, North Dakota, Wyoming, Texas and Pennsylvania. The graphic they use is powerful (and misleading) and appears to support calls to increase a severance tax in Pennsylvania. We disagree–strongly–with that position. Here is the EIA post from Friday, followed by MDN’s explanation of how it is grossly flawed…
Two Republican members of the Pennsylvania House of Representatives have penned a column that points out the math for PA Gov. Tom Wolf’s so-called severance tax on the Marcellus Shale industry a) doesn’t add up, and b) doesn’t actually end up funding education. What makes the column noteworthy is that the two Republicans are not the conservative leaders of the PA House, but instead are from the Philadelphia area. Every Republican we’ve seen from the Philly area are moderate at best–usually RINOs (Republican in Name Only)–and certainly not anywhere near conservative. Yet these two, Rep. Tom Quigley from the 146th district in Montgomery County, and Rep. Warren Kampf from the 157th district in parts of Montgomery and Chester counties, ever-so-eloquently skewer Wolf and his inane high tax plan. Remarkable, coming from two Philly-area Republicans…
Although MDN caught and reported on the Bloomberg article questioning Aubrey McClendon’s high roller ways (see 
The Supreme Court of Kentucky has just ruled, in a pair of cases, that producers (i.e. drillers) CAN deduct post-production costs before calculating royalties to landowners. Once case involves landowners suing Magnum Hunter, the other involves landowners suing EQT, claiming (much like what has happened in Pennsylvania) that post-production costs mean they are getting less than one-eighth or 12.5% of the fair value of the gas as a royalty payment. The Supreme Court of Kentucky ruled the language in the leases is unambiguous as is the law–and that the lease allows for post-production expenses to be deducted. Here’s a summary from the legal beagles at Vorys…
While MDN has long commented that while natural gas burns cleaner than coal and oil, we are by no means against other forms of fossil fuels. We have not fallen pray to the temptation to “pile on” coal and oil as inferior forms of energy in a vain attempt to prop up natural gas. Why? Because we know how liberals like Obama and the Democrats think. Once they are through destroying coal, they’ll come for natural gas and attempt to destroy it as well. That is now happening. As Robert Murray, chairman and CEO of Murray Energy Corp (big coal company) says, all forms of fossil fuels are under attack by the Obama administration. Murray also points out those who support natural gas and have supported Obama’s rhetoric against coal should not be surprised they have been betrayed by Obama and now are, themselves, a target for elimination. As Murray rightly says, affordable, reliable electricity in America is being destroyed by Big Green groups like the odious Sierra Clubbers…