PA Sen. Yaw Proposes Selling Solar Credits to Fund Well Plugging
Pennsylvania has already received the first $25 million payment from the so-called infrastructure bill, a down payment on what will eventually be $330.6 million (see PA Receives First $25M (Out of $104M) to Plug Orphaned Wells). The money will be used to plug old abandoned and orphaned oil and gas wells across the state. However, even the eventual $330 million will not be enough to plug an estimated, mind-blowing 560,000 abandoned wells in the Keystone State. Pennsylvania State Senator Gene Yaw has an ingenious proposal to help fund even more well plugging–by using Solar Renewable Energy Credits, or SRECs.
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Over the years MDN has brought you updated reports from energy law firm giant Haynes and Boone and their quarterly oil and gas bankruptcy filings reports. We are delighted to tell you that due to the decreasing number of bankruptcies in our industry, Haynes and Boone has just issued its final set of reports for 2021 bankruptcies: one report for upstream/drilling, one report for oilfield services, and one report for midstream/pipelines. All of the reports are embedded below. Yes, there are a few M-U companies listed in these final reports.
One of our favorite Forbes website contributors, David Blackmon, has penned another fabulous column. This one looks at the chatter and debate surrounding “the energy transition”–as if it’s a foregone conclusion that we must dump the use of all fossil fuels within the next few years and transition to so-called renewables, or the planet is toast. Blackmon tackles one aspect of this debate that is seldom discussed: the cost of transitioning away from fossil fuels to 100% renewables. The cost is so big, it’s incomprehensible.
MARCELLUS/UTICA REGION: Metcalfe declares Wolf’s ‘environmental crusader’ Legacy an absolute failure; NATIONAL: USA oil and gas production growth to accelerate; US weekly LNG exports up by five vessels; INTERNATIONAL: US LNG is not just a short-term solution for Europe.
Another genius move by Diversified Energy (formerly Diversified Gas & Oil). Diversified owns close to 8 million acres of leases with some 67,000 (mostly) conventional oil and gas wells. Most of Diversified’s assets are located in the Appalachian region. With that many old oil and gas wells, the company ends up plugging a number of them each year. In the past, one of the vendors Diversified has used to plug old wells is Next LVL Energy, headquartered in the Pittsburgh area. Diversified announced yesterday it is buying Next LVL.
Yesterday the New York State Common Retirement Fund announced it will “restrict investments” in a hit list of 21 naughty shale oil and gas producing companies. One of the companies on the naughty list is Chesapeake Energy Corp. New York State Comptroller Thomas P. DiNapoli, trustee of the Fund (far-left Democrat) who is the sole manager of the fund, said the companies on his naughty list “have failed to demonstrate they are prepared for the transition to a low-carbon economy.” However, another 21 shale companies are on DiNapoli’s nice list and he will continue to invest in those companies, including CNX Resources and EQT Corporation.
Last week Philadelphia lawyer Dan Markind, a real estate and corporate attorney who speaks and writes widely on the Marcellus, showed a connection between the developing situation of Russia invading Ukraine, and the Marcellus/Utica (see 
A new study published by the America Gas Association (AGA) details how America’s natural gas, natural gas utilities, and delivery infrastructure will be *essential* to meeting our nation’s greenhouse gas emissions reduction goals, including achieving net-zero emissions. Natural gas is used by some 187 million Americans each and every day. The AGA study (full copy below) outlines several scenarios and technology opportunities available to help the country reach mythical net-zero emissions by 2050. Natural gas plays a starring role!
ECA Marcellus Trust I, traded over-the-counter on the pink sheets, canceled distributions (dividends) to investors for the first three quarters of 2020 due to the pandemic and the crash in oil and gas prices. The company restarted paying dividends in 4Q20–a grand total of 9/10ths of one penny per unit. In 1Q21 ECA increased its distribution to 3.1 cents per unit. In 2Q21, ECA decreased the payout again, down to 2.8 cents per unit. In 3Q21 ECA hiked the quarterly dividend all the way to 7.6 cents per unit. The company announced yesterday for 4Q21 it will nearly double the payout to 13.6 cents per unit.
Most of our coverage about pipelines is for large interstate pipelines, or perhaps large regional gathering pipeline systems. Every now and again we’ll bring you news about a “last mile” LDC (local distribution company) pipeline–the pipes utility companies install and maintain to run gas to homes and businesses. We have a story of that sort for you today. Dominion Energy, a huge utility company that used to be in the pipeline business (but sold its pipeline business to Warren Buffett a few years ago) wants to install a new 760-foot pipeline under the Blue Ridge Parkway (managed by the National Park Service) in North Carolina.
