Ohio HB 152 Forced Pooling Bill Disadvantages Unleased Landowners
Gateway Royalty is sounding the alarm over a new bill that’s quickly advancing in the Ohio legislature. Ohio’s House Bill (HB) 152 allows drillers to force-pool landowners if 65% of a drilling unit is signed to a lease–a pretty low bar if you ask us. But that’s not even the worst part. The reluctant landowner would receive a standard 12.5% royalty, no matter what the royalty is for the rest of the leases in the unit, AND post-production deductions would be taken out. Landowners could realistically see a 6.25% royalty…or less! It’s time to burn up the phone lines to either get this bill changed, or defeated.
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In theater of the absurd, yesterday a bunch of sleazy politicians, headed by the grandmaster sleazoloa himself, Pennsylvania Attorney General Josh Shapiro, unveiled proposed new anti-Marcellus legislation based on a ginned-up, fake anti-shale grand jury report that Shapiro manipulated and orchestrated last year (see 
You have two days left to make your voice heard with the U.S. Army Corps of Engineers concerning whether or not the Corps should issue a new permit to the 303-mile Mountain Valley Pipeline project as it crosses rivers and streams in both West Virginia and Virginia. Back in April we told you the Corps had given antis an extra 30 days to comment on (complain, manipulate, lie about) issuing MVP a new permit (see 
Radical environmentalists continue to use the City of Oberlin, Ohio to try and advance their agenda of ending the use of natural gas pipelines. And Oberlin willingly lets them do it. We’re referring to the latest court filing by Oberlin (actually by Big Green lobbyists using Oberlin) contesting the Federal Energy Regulatory Commission (FERC) decision to approve the NEXUS pipeline, a pipeline from the Utica Shale into Michigan that’s been flowing for years connecting to a pipeline that exports some of the gas into Canada. Oberlin says FERC’s approval of NEXUS is faulty because some gas gets exported and is not “in the public interest.”
All three M-U states received permits to drill new shale wells last week, but the numbers were all down. Pennsylvania issued just 8 permits with 6 in the northeastern part of the state and 2 in the southwestern region. Ohio issued four permits, all for the same driller on the same well pad in the same county. And West Virginia issued just one new permit for last week.
OTHER U.S. REGIONS: Bechtel tapped to design natural gas-to-gasoline plant in Texas; NATIONAL: Failure to disclose: new report exposes academics with financial ties to law firms; Survey calls for first US triple-digit natural gas storage injection of 2021; Responding to senators, Glick agrees FERC should not stall on gas projects; The tremendous promise, gold-rush potential, and remarkable paradox of CO2 sequestration.
Yesterday the Pennsylvania Independent Fiscal Office (IFO) released their latest quarterly Natural Gas Production Report for January through March 2021 (full copy below). The main indicators are moving in the right direction. In 1Q21 the number of new wells spud (begun to be drilled) was 133 new shale wells. That’s less than the 153 spud wells in 1Q20, which happened prior to the pandemic, but more than the spud numbers for the second, third, and fourth quarters of 2020. Even with less new drilling over the past few years, production numbers continued to soar, hitting a brand new, all-time high of 1.863 trillion cubic feet (Tcf) during 1Q21.
Yesterday we shared the devastating (for us) news that Cabot Oil & Gas, one of the premier drillers in the Marcellus, is merging with (being acquired by) Permian driller Cimarex (see 
The judge in a lawsuit initiated by Cabot Oil & Gas against a Susquehanna County, PA landowner and his lawyers has had it up to here with the ongoing stonewalling and delay tactics by the landowner’s lawyers. “Four years we’ve been spinning our wheels on this nonsense,” the judge said. “The court is extremely frustrated, to put it politely.” The judge bordered on being impolite at a hearing last Thursday…
As we reported a month ago, a group of West Virginia landowners/rights owners filed a claim against EQT alleging the company had allowed leases to lapse, then at a later date reentered their property and drilled new wells (see 
MDN has been writing about a privately-owned dump near Scranton, the Keystone Sanitary Landfill, for the past decade (
Last Wednesday the Pennsylvania Independent Oil & Gas Association (PIOGA) held its Spring Meeting for 2021–in person! The meeting convened at Rivers Casino in Pittsburgh. The several hundred who attended got the pleasure of hearing people talk positively about oil and gas and fossil fuels in general. PIOGA President Dan Weaver said, “Don’t be afraid to stand up and speak out.” CNX CEO Nick DeIuliis said, “This industry is a noble one. You are doers that should be celebrated by all and appreciated by the informed.” God bless them both! Isn’t it great to be affirmed for the good work you do, rather than smeared and lied about?
We’re devastated. We know you’re not supposed to have favorites, but we do. Our favorite Marcellus/Utica driller for years has been Cabot Oil & Gas. We know some great folks who work for Cabot. It has been a peerless operator in the northeast Marcellus–making money when nobody else could. Cabot treats its landowners well, cares about the environment, gives big money to local nonprofit causes, and in general is the best kind of corporate citizen anybody could wish for. We suppose it was only a matter of time before Cabot became a target in this merger mania we’re currently going through. This morning Cabot announced a “merger of equals” with Cimarex, a big driller in the Permian and Midcontinent. The truth is Cimarex is buying out Cabot.
NGL (natural gas liquid) revenues for U.S. drillers soared in the first quarter of 2021–up 100% (i.e. doubled) over the same quarter in 2020, which was the quarter when COVID-19 began to seep into the public consciousness. In particular international demand for U.S. liquefied petroleum gas (LPG, or propane) helped propel NGL revenues higher in 1Q21. Guess which company posted the highest year-over-year increases for both NGL prices and revenues?