Pipeline Contracts Expiring in 4Q May Mean Less M-U Gas to Gulf

When a pipeline company considers whether or not to build a new pipeline, the company conducts an “open season”–a time when drillers (producers), traders, buyers and others who want guaranteed capacity along that pipeline can sign long-term contracts. Such contracts guarantee pipeline companies will be able to make back the considerable amount of money they have to spend to build the pipeline. What happens when those 5-, 10-, and 20-year contracts expire?
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FirstEnergy Nuke Bribery Scandal Deepens – OH Regulator Resigns

The plot thickens in the $60 million FirstEnergy nuclear subsidy bribery scandal. Last week MDN brought you the news that Ohio’s Attorney General, David Yost, had filed a second lawsuit to stop the collection of money from ratepayers that funds $150 million annual payments to FirstEnergy provided for under the law known as House Bill 6 (see OH AG Files 2nd Lawsuit to Block FirstEnergy $150M Nuke Payments). We also told you, in the same post, about a potential sixth person being investigated for involvement in the scandal. We have breaking news about the sixth person…
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NatGas Coalition Beats Methane Emissions Goal by 67% in 2019

The natural gas industry is proving effective at policing itself–far more effective than having the jackboots of the federal government step on its neck. Case in point: an industry group called Our Nation’s Energy Future (ONE Future), a coalition of 32 natural gas companies, released its 2019 report (below) that shows member companies collectively beat the group’s methane intensity goal by 67% for the year.
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White Paper Says E&P Management Compensation “Out of Alignment”

Kimmeridge Energy Management Company is a private equity investment firm focused on the upstream energy sector (drillers). Last week the firm published a white paper entitled, “Bringing Alignment and Accountability to the E&P Sector” (full copy below). The thesis of the paper is this: the alignment between drilling company executives and shareholders is “broken” and “a root cause” for the problem of poor earnings at drilling companies.
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Other Stories of Interest: Mon, Nov 23, 2020

MARCELLUS/UTICA REGION: Pennsylvania House votes to impose fees on electric cars; NYSEG to raise rates slightly, scale back natural gas; Local firefighters attend oil and gas training; OTHER U.S. REGIONS: Bakken’s robust production threatened by low prices and Biden presidency, North Dakota officials say; Utility’s application for natural gas pipeline approved; INTERNATIONAL: Millions in Africa being sacrificed to extreme poverty, premature death on altar of ‘green energy’.
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Fourth Circuit Allows Work on Mountain Valley Pipe to Continue

Earlier this month the Sierra Club filed yet another lawsuit (we’ve lost count of how many they’ve filed) attempting to block construction of the final 8% of Mountain Valley Pipeline (MVP). The Clubbers asked the U.S. Court of Appeals for the Fourth Circuit to “temporarily” block a permit issued by the U.S. Fish and Wildlife Service (see Sierra Club Files Another Lawsuit to Block MVP’s FWS Permit). Earlier this week the court declined, meaning MVP can continue working over the winter.
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Judge Orders Tree-Sitting Wackos to Stop Blocking MVP or $500/Day

Believe it or not, there are still two environmentalist wackos living up a tree in Montgomery County, Virginia, preventing work crews for Mountain Valley Pipeline (MVP) from cutting trees to clear a path for the pipeline. This has been going on for years and frankly, everyone is tired of it. A county judge has found the two cowards not willing to reveal their names (known as Tree-sitter 1 and Tree-sitter 2) in contempt of court. Starting today if they don’t come down, they are both on the hook for a $500 per day fine.
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One of Elba Island’s 10 LNG Trains Remains Offline 6 Mos Later

We were wrong. In August MDN told you that the tenth and final mini-train had gone online at Kinder Morgan’s Elba Island, Georgia LNG export facility (see Final Elba Island LNG Train Goes into Service – All 10 Now Online). That the tenth mini-train had gone online was correct, no issue there. What was incorrect was that all ten mini-trains are now online and working. Such is not the case.
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Northeast Natural Energy Gets $65M Investment for More Drilling

Northeast Natural Energy (NNE) is a small-to-midsized driller headquartered in Morgantown, WV. The company drilled its first shale well in 2013. NNE currently owns 49,000 acres of leases “in the heart of the Marcellus Fairway,” operating 27 Marcellus wells and over 100 conventional oil and gas wells, mainly in West Virginia (with some located in southwestern Pennsylvania). In April 2017 MDN reported that NNE had obtained $300 million of investment from two investment firms (see WV Driller Northeast Natural Energy Gets $300M Investment). This week the company announced it has received another $65 million to help fund more drilling and lease acquisitions.
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Enverus U.S. Rig Count Up by 3 Last Wk, M-U Holds Steady at 33

The Enverus U.S. rig count rose by 3 to 382 over the past week. Prior to that, the count rose by 20, 11, 11, and 13 for each of the four weeks prior, respectively. That’s up 58 rigs over the past five weeks! The Marcellus and Utica each remained constant last week (same as the week before), not adding and not dropping. The Marcellus stands at 27 rigs, and the Utica at 6.
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Other Stories of Interest: Fri, Nov 20, 2020

MARCELLUS/UTICA REGION: South Jersey Gas files petition for Infrastructure Investment Program; Farmers, consumers beware — natural gas foes have vision but no plan; NATIONAL: To achieve a true energy transition, America must discard green scams; Jeff Bezos announces first beneficiaries of his $10 billion climate fund; Why a Biden Administration threatens US energy security; US LPG arrivals to Asia in Dec to be around 2.7 million mt; INTERNATIONAL: Germany’s growing gas demand shows no signs of slowing.
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NETL Creates New Initiative to Promote Uses for Marcellus/Utica Gas

The Dept. of Energy’s National Energy Technology Laboratory (NETL) is actually five laboratories, including locations in Pittsburgh, PA, and Morgantown, WV. The current director is West Virginian Dr. Brian J. Anderson (great guy!). NETL recently published a notice on its website to talk about the “generational opportunity” to leverage the superabundance of natural gas in the Marcellus/Utica. NETL, says Anderson, is on the case and has a new initiative to leverage M-U gas.
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Maryland Dept. of Environment OKs Tiny Pipeline in Eastern Shore

Eastern Shore Natural Gas Company (ESNG), a subsidiary of Chesapeake Utilities Corporation, filed a request with the Federal Energy Regulatory Commission (FERC) in Sept. 2018 to build 19+ miles of new pipeline, called the Del-Mar Energy Pathway Project, in Delaware and Maryland. Last week the Maryland Dept. of the Environment (MDE) approved the project. Now the project must pass by the Board of Public Works (BPW). We give it a 50/50 chance of getting approved by the three libs on the BPW.
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OH AG Files 2nd Lawsuit to Block FirstEnergy $150M Nuke Payments

We have a couple of important updates in the neverending saga of the biggest corruption scandal ever to hit Ohio. In July, then-Ohio House Speaker Larry Householder and four of his associates were indicted for felonies related to an alleged $60 million bribery scandal in passing the hugely unpopular House Bill 6 (see FirstEnergy Involved in Bribery Scheme to Pass $1B Nuke Bailout Law). Ohio’s Attorney General, Dave Yost, has just filed a second lawsuit to stop the collection of money from ratepayers that funds $150 million annual payments to FirstEnergy provided for under HB 6. We also have news about a potential sixth person being investigated for involvement in the scandal.
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Sierra Club Hosts 90-Min Online Mariner East Pipeline Kvetch

Monday night the radical Sierra Club hosted a virtual town hall in which people could complain about the Mariner East 2 (ME2) pipeline project. And complain they did. The aim of the virtual complaint session is to try and close down the already up-and-running ME pipelines (plural), and most particularly prevent the final bit of ME2X from getting completed. By airing sob stories, the Clubbers are hoping to bully the state Dept. of Environmental Protection and/or the Governor into blocking further work on the project–a project just a few months from being done.
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