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    After 6+ Years, Andrew Cuomo Bans Fracking in New York

    Andrew Cuomo dunceYesterday, New York Gov. Andrew Cuomo held a rare cabinet meeting to discuss a variety of issues. The main focus of the meeting, however, was to announce Cuomo’s decision to ban fracking in New York. NY State Dept. of Health Howard Zucker presented his agency’s “review” of so-called impacts of fracking on public health. The entire charade was well-scripted to insulate Cuomo from the decision to ban fracking in the state, making it seem as if “science” has determined fracking is not safe. Zucker recounted the process his agency pursued in reviewing available studies and evidence of the possible affects of shale drilling on those who live near it. Zucker’s repeated claim was that there is not enough evidence, not enough “gold standard” studies thus far, to prove that fracking is not a health risk. Zucker intentionally chose prove a negative, which is a logical fallacy (you can’t prove a negative). Immediately following Zucker’s dog and pony show, NY Commissioner for the Dept. of Environmental Conservation, Joe Martens, said a) with all of the town bans happening, fracking would only be allowed in maybe 30% of the state, that the economic benefits are far less than originally thought, and b) given Zucker’s findings that fracking may not be safe, he (Martens) would close out the draft regulations, known as the SGEIS, and that he (Martens) would not allow fracking for the foreseeable future. Cuomo pretentiously said, “I don’t even think I have a role here.” Below we have the “report” from Zucker, a video of the cabinet meeting, and reaction to this carefully scripted and choreographed decision…
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    How Did We Lose in New York, and How Can We Win it Back?

    So how did we end up with a ban on fracking in New York? Largely through repeated lies by people who hate fossil fuels. Mind you, those same people refuse to stop using the fossil fuels they say are causing an environmental holocaust. They refuse to turn in their cars for a horse and buggy. They refuse to heat with solar or wind (or wood). They refuse to turn off their gas stoves. They love the low priced natural gas coming from Pennsylvania and elsewhere. But they demand their neighbors not be allowed to access the gas under their land. Go figure. MDN spotted a brag-piece (one of many) that chronicles how a bunch of ragtag hippies got Andrew Cuomo to ban fracking. It is an instructive piece, one that we can learn from…
    Read More “How Did We Lose in New York, and How Can We Win it Back?”

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    Antis to Take Frack Ban Campaigns National with NY “Success”

    Never ones to let a good disaster go to waste, the odious nutters at Food & Water Watch, a rabidly leftist, anti-drilling organization, are attempting to use the ill-fated decision in New York to ban fracking to try and counter Maryland’s recent decision to allow fracking. You see, Maryland government organizations evaluated fracking just like New York government organizations did–but Maryland’s officials came to a different conclusion. They concluded fracking CAN be done safely. Which doesn’t sit well with the nutters at FWW. So they’ve jumped on the NY decision and are trying to spin it like crazy to pressure Maryland into rethinking its decision to allow fracking…
    Read More “Antis to Take Frack Ban Campaigns National with NY “Success””

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    CBO Report: Enormous Positive Impacts of US Shale

    While Andrew Cuomo and his buddies were busy banning fracking in New York, the Congressional Budget Office (certainly no bastion of conservatism) issued a report on fracking. The new report, titled “The Economic and Budgetary Effects of Producing Oil and Natural Gas From Shale” (full copy embedded below) says we now get 30% of our oil and 40% of our natural gas from home-grown American shale. The report says without safe, clean, fracked American shale, our natural gas prices would be 70% higher than they are. Do you like those low gasoline prices we’ve seen lately? That’s because of American-produced oil from shale deposits. The enormous amount of supply from right here at home is flooding the market and causing prices to drop like a rock. If Cuomo & co had their way, all fracking across the country would stop tomorrow. Dangerously stupid is about the only thing we can think of to say to the strange attitude being exhibited by New York’s so-called leaders. Here’s a high level overview of the CBO study, followed by a full copy of the study…
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    McClendon Deal Last June was HG Energy’s OH Utica Acreage/Wells

    Columbus Business First is reporting that during this past summer’s wheeling and dealing by Aubrey McClendon and his American Energy Partners (see McClendon Buys 48K WV Marcellus Acres, 27K More OH Utica Acres), McClendon picked up HG Energy’s Ohio Utica Shale acreage–all 27,000 acres–along with HG’s already-drilled Utica Shale wells (in the June announcement HG was simply referred to as “an unnamed private company”). HG Energy has now fully exited the Utica Shale. Oh! Two of the HG wells purchased by McClendon as part of that deal were in the top 10 most productive wells in the state for 3Q14. Yet another smart move by Aubrey…
    Read More “McClendon Deal Last June was HG Energy’s OH Utica Acreage/Wells”

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    EnLink Launches 1 Month Open Season for ORV Condensate Pipeline

    In August, MDN told you about EnLink Midstream’s newly planned condensate pipeline. The Ohio River Valley (ORV) Pipeline, as it’s called, will connect to EnLink’s existing 200-mile pipeline in eastern Ohio and West Virginia, providing drillers in the region access to markets through EnLink’s Bells Run barge facility and Black Run rail terminal (see EnLink Midstream Announces New Condensate Pipeline in ORV). The OVR Pipeline, expected to be completed in the second half of 2015, will have an initial capacity of approximately 50,000 barrels per day (bpd). Yesterday EnLink announced a binding open season for the pipeline–the time when drillers and other customers can sign up to reserve capacity on the new pipeline…
    Read More “EnLink Launches 1 Month Open Season for ORV Condensate Pipeline”

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    NY Gov. Cuomo Kills Prospects for Fracking

    Breaking NewsThis is a very sad day for all New Yorkers. Gov. Andrew Cuomo has decided to not proceed with high volume hydraulic fracturing (fracking) in the state. MDN editor Jim Willis has just finished listening to a live announcement in which the State Dept. of Health Commissioner Howard Zucker embarrassed himself by admitting he relied on shoddy rumors and flawed studies–and even lack of studies–to draw the conclusion that fracking should not be allowed. Zucker repeatedly said “there’s not enough research” to convince him that fracking is safe for NY’s human population.

    NY’s anti-drilling Commissioner of the Dept. of Environmental Conservation, Joe Martens, then said, essentially, “yep, good enough for me, no fracking” and that was that. Cuomo, acting like the buffoon that he is, then said he has no further role to play in the debate and it’s case closed. How sad and how tragic. The only recourse left is to vote Cuomo out of office, which won’t happen now for another four years. We who live in New York have just been royally screwed by our governor. No wonder this state is dead last in jobs, economy, and every other important measure. No wonder people are leaving the state in droves. We predict it’s a trend that will only accelerate with this decision.

    More on NY’s decision tomorrow. This is just a quick note to alert you.

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    4 Marcellus Companies Debut on Debtwire’s Distressed Watchlist

    WatchlistDebtwire is an interesting service. They keep an eye on publicly traded companies to give subscribers to their service a heads-up on which companies are potentially carrying too much debt–companies that may, due to changing economic circumstances, have a hard time paying back that debt. Think of Debtwire as an early warning system to let you know BEFORE Moodys or Fitch Ratings downgrades a company’s credit rating. Later this month Debtwire will issue a new Distressed Watchlist with 176 companies on it. Some 55 new companies will be added to the list from the energy industry alone. With the addition of the 55 new companies, the Distressed Watchlist will have 70 (of 176) companies from the energy industry–making 40% of the list top heavy with energy companies. We have what we believe is an MDN exclusive–Debtwire has sent us the top 20 energy-related companies on the list. Of the top 20, four of them have operations in the Marcellus/Utica region…
    Read More “4 Marcellus Companies Debut on Debtwire’s Distressed Watchlist”

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    PA Gov-Elect Wolf Transition Team Includes DRBC’s Carol Collier

    Pennsylvania Gov.-elect Tom Wolf has selected the members of his takover team (sometimes referred to as a transition team). Who has he selected when it comes to taking over the Dept. of Environmental Protection (DEP) and the Dept. of Conservation and Natural Resources (DCNR)? Those are the two organizations most closely involved with the issue of shale gas drilling in the Keystone State. MDN has reviewed the list of takeover team members for both the DEP and DCNR (see it below). We’ve identified those we consider either pro-drilling (highlighted in green) or anti-drilling (highlighted in red). At a glance it appears to be pretty evenly split. However, the big red flag for us is the appointment of Carol Collier, former director of the Delaware River Basin Commission, to the DEP takeover team. Interesting thing is, Wolf’s website doesn’t mention Collier’s most recent position at the DRBC–perhaps hoping no one would notice?…
    Read More “PA Gov-Elect Wolf Transition Team Includes DRBC’s Carol Collier”

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    Dominion Fined $55K for Run-off in WV Creeks

    Dominion Transmission has agreed to pay $55,470 in fines for violating the West Virginia Water Pollution Control Act. The fines are the result of WV Dept. of Environmental Protection (DEP) investigations that started in November of 2012. The DEP investigated “slips” or slopes restored after Dominion dug trenches to lay pipeline. The slopes were not restored properly and sediment and erosion ended up in area creeks. Dominion is required to fix the creeks and pay the fine…
    Read More “Dominion Fined $55K for Run-off in WV Creeks”

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    EXCO Resources Suspends Dividend Payments to Shareholders

    It’s never a good thing when a publicly traded company suspends dividend payments. EXCO Resources, an oil and natural gas driller with operations in Texas, Louisiana and a small drilling operation in the Pennsylvania Marcellus, announced on Monday that because the price of oil has gone so low, they’ve suspended dividend payments to shareholders. One more case of how low oil prices can and does affect drilling for natural gas in the northeast…
    Read More “EXCO Resources Suspends Dividend Payments to Shareholders”

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    NY Anti-Drillers Ramp Up the Rhetoric, Demand Cuomo Delay Again

    As New York Gov. Andrew Cuomo nears a decision to allow fracking (what other decision can there be?), anti-drillers are once again becoming more shrill. Especially anti-drillers who also hold public office–they’re the worst of the lot–total nutjobs who want to deny property rights to the citizens they supposedly represent. Even though we now have over 200,000 horizontally fracked shale wells, many of which are right across the border in Pennsylvania, and a multitude of scientific studies, the call goes forth again (from NY anti-drillers) that Cuomo should delay a decision. In other words–no drilling is acceptable to the unreasonable anti-driller. Not now, not ever. So the antis are ramping up the rhetoric ahead of a decision they fear will go against them…
    Read More “NY Anti-Drillers Ramp Up the Rhetoric, Demand Cuomo Delay Again”

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    Chesapeake Gets $4B Line of Credit Refinanced Extra 5 Yrs

    With numbers that are really too large to get your head around, Chesapeake Energy announced yesterday that their creditors have agreed to give them another five years to pay back $4 billion–and the deal will allow them to borrow up to another $1 billion along the way! To be fair, it is an “unsecured revolving credit facility.” That is, a line a credit. Write a check and if you haven’t borrowed up to the maximum, the check will clear. The announcement does not say how much of that $4 billion, originally due in December 2015, has been used and how much is left to be used. Here’s what Chessy did say yesterday:
    Read More “Chesapeake Gets $4B Line of Credit Refinanced Extra 5 Yrs”

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    PA Sen Brewster’s “Excrement for Education” Severance Tax Bill

    Pennsylvania State Sen. Jim Brewster (Democrat from Allegheny & Westomoreland counties) wants to be known as the politician that killed Marcellus drilling in the Keystone State. That’s the only thing we can conclude from his efforts to introduce (yet again) a bill that would tax Marcellus drilling into idleness. Brewster’s plan calls for KEEPING the impact fee and ADDING a severance tax to it–but deducting impact fee payments from the severance tax. Complicated cockamamie? Yeah. Brewster proudly calls his bill/plan “Extraction for Education” because it will give all of the severance portion raised (5% or whatever portion it works out after impact fees) to teachers’ unions. We call it “Excrement for Education”…
    Read More “PA Sen Brewster’s “Excrement for Education” Severance Tax Bill”

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    PA Senators to Re-Introduce Impact Fee Bill for Pipelines

    Two Philadelphia-area state senators, John Rafferty (Republican from Collegeville), and Andrew Dinniman (Democcrat from West Chester), will introduce legislation in January that would extend the Act 13 impact fee to include newly built gathering and transmission pipelines in the state. The new fee/tax would be based on the amount of acreage used by the pipeline, which includes the entire right-of-way on either side of the pipeline. According to the senators, most of the revenue generated would stay with the local counties and towns where the pipeline is located, in keeping with the intent of an impact fee. The industry is pushing back, saying pipelines have a minimal impact…
    Read More “PA Senators to Re-Introduce Impact Fee Bill for Pipelines”