Bill to Fix WV NatGas Property Tax Rule Close – Will Gov Sign?
The West Virginia State Legislature passed House Bill (HB) 2581 on the last day of the annual WV legislative session in April 2021. HB 2581 required the State Tax Commissioner to develop a revised methodology to value oil and natural gas properties for the purposes of assessing property taxes. The State Tax Department submitted an emergency rule last summer that was, quite frankly, a mess. The rule created a complex system that is currently mired in controversy with both drillers and landowners confused about how much of a tax bill they will owe this year. There were two competing bills in this year’s session to correct the cockup from last year. Only one of them has survived and is close to passing.
Read More “Bill to Fix WV NatGas Property Tax Rule Close – Will Gov Sign?”
As we write about today in a couple of different posts, EQT CEO Toby Rice has a bold vision to “unleash American LNG” to, in part, supply American natural gas to our friends in Europe. Rice’s plan is not an overnight plan, but it can work and it can reduce the amount of carbon dioxide emissions floating in Mom Earth’s atmosphere (if you care about such things, we personally do not). There are currently 14 (!) LNG export facilities approved by the U.S. that could be built and come online in the next year or two. That’s enough new plants to double our current LNG exports. Why haven’t the backhoes begun to dig on any of these projects? Two roadblocks.
MARCELLUS/UTICA REGION: Chesapeake completes acquisition of Chief Oil & Gas; OTHER U.S. REGIONS: Justices urged to pass on Spire’s fight to retain permit; NATIONAL: Dow jumps 700 points as oil prices fall, but worries far from over; Biden no longer working ‘like the devil’ on gas prices, shifts blame to Putin; INTERNATIONAL: Saudi Aramco is fast closing in on Apple as #1 company; What will it take for Europe to give up Russian gas?
The good news is that the Pennsylvania Dept. of Environmental Protection’s online reporting site is back online and we were able to retrieve new shale drilling permits for two weeks ago (Feb. 21-27). The bad news is that there was a paltry four permits issued during that week. Perhaps the DEP site/system is not yet fully populated with permits issued during that time? Ohio issued two permits during the same week. And West Virginia issued (gasp) zero during that week. This has to be the lowest number of permits issued during a single week we can remember–ever.
Although he’s a lame duck and heading for the exit door later this year (being term-limited, thank God), Pennsylvania Gov. Tom Wolf has come under withering attacks from many different sources for his reluctance to clear away obstacles that would encourage more shale gas drilling (and exporting) from the Keystone State. PA House Rep. Daryl Metcalfe calls Wolf’s response to expand the state’s natural gas industry “pathetically weak.” Ouch. Matthew Brouillette, president and CEO of Commonwealth Partners Chamber of Entrepreneurs, says Wolf’s green agenda is “fueling Putin’s war machine.” Double ouch. Wolf himself is flailing about, not knowing how he should respond to being outed as a Big Green lackey.
While it may be unseemly to discuss this, U.S. LNG exports are booming because of Russia’s invasion of Ukraine. Putin is threatening to withhold natural gas flows into Europe and Europe is scrambling to try and find new sources, including imports of American LNG. The biggest winners (so far) are U.S. LNG natural gas producers and the export facilities that liquefy and ship the gas. And don’t forget the LNG container ships too. Everyone is making a LOT more money right now on LNG exports. A Reuters article says the U.S. has recorded record export volumes (and profits) over the past three months.
New York’s newest governor, Kathy Hochul, is following in the footsteps of her former boss, Andrew Cuomo, by pledging to block natural gas hookups for all new construction across New York State. It’s insane. Such a ban will cause even more people to leave the state (they’re already leaving in droves). And yet she and the leftist Democrats pulling her strings persist in this path of self-annihilation. Republicans in the NY State Senate have had enough and are fighting back.
President Joe Biden and his surrogates have been blaming U.S. oil and gas producers for not producing more in the face of prices going through the roof. Big Oil & Gas have responded that the Bidenistas refuse to even talk with them about important issues, like onerous new regulations, blocking new pipelines, etc. It looks like the Bidenistas are finally desperate enough to at least sit down and talk. According to Bloomberg (not always a reliable source) Dept. of Energy Secretary Jennifer Granholm is having conversations with several oil companies at the CERAWeek conference.
Below is the list of events we are aware of that will be of interest to those with an interest in the Marcellus/Utica shale region for 2022. Some events are in the region (PA, OH, WV). Some are not (TX, OK, CO). Some are virtual/online, but most have returned to in-person. All of them are of potential interest to the MDN audience.
Yesterday the West Virginia House Energy and Manufacturing Committee held a public hearing to elicit feedback and comments on Senate Bill (SB) 694, a bill that will, after nearly a decade, provide for forced pooling for shale wells in the state. The bill has already passed the WV Senate and likely will come up for a vote by the full House this week. Based on support from both drillers and landowner groups, it appears this bill is a done deal. Even surface owners are “OK” with the bill. Not thrilled, but OK. About the only dissent we could detect from the hearing is that some believe it doesn’t go far enough with forced pooling.
In April 2021, CNX Resources Corp. announced instead of just blowing smoke about ESG (environmental, social, governance) with pretty slide shows and hoopla, they would donate $30 million to local, underserved communities and populations in the tri-state region (see 
In early 2013 the Pittsburgh International Airport and Allegheny County, PA signed a deal with CONSOL Energy (now CNX Resources) to lease 9,000 acres surrounding the airport for natural gas drilling (see 
Hackers, believed to be “state-sponsored,” aggressively targeted computers belonging to current and former employees at two dozen major natural gas suppliers and exporters. The aim seemed to be an attempt to cripple U.S. LNG exporting ability. One of the targets of the attacks was EQT Corporation, the largest natural gas producer in the U.S. The activity occurred on the eve of Russia’s invasion of Ukraine. You do the math to figure out who the “state sponsor” of the attacks was.
Only four (known) times since 2017 have U.S. shale producers met face-to-face with representatives from the OPEC cartel to discuss “energy concerns.” Yesterday was one of those four times, happening in Houston, Texas where everyone who’s anyone is meeting at the CERAWeek conference. (Yes, we’re nobodies…we aren’t there.) Among the shale execs meeting with OPEC was none other than the largest natural gas producer in the U.S. (and in the Marcellus/Utica), EQT CEO Toby Rice. What was discussed?