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Landowner Asks PA Supremes to Throw Out 150-Yr-Old Rule of Capture
Last November the Pennsylvania Supreme Court agreed to hear a case, Briggs v. Southwestern Energy, that is hands-down the most important court case to ever happen regarding the Marcellus Shale in PA. And no, we’re not exaggerating. A blizzard of briefs by Southwestern and those supporting Southwestern were filed in February (see “Rule of Capture” Briefs Filed w/PA Supreme Court in Briggs Case). On Wednesday, it was the Briggs’ turn to file a brief, one in which they ask the Supremes to stop application of the 150 year-old “rule of capture” in PA when it comes to shale wells.
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One liberal Philadelphia-area Republican and two Philly Democrats (considered a “bipartisan” group) have just introduced a package of seven bills in the Pennsylvania House supposedly meant to “further regulate pipeline companies and provide greater oversight authority to state agencies.” Sounds so reasonable, doesn’t it? In reality the bills are aimed at shutting down new pipeline projects in the state. Why does it take seven bills? They’re flinging whatever crapola they can against the wall, hoping at least one or two bills will stick.
Did you know that at least $70 billion has been spent in Ohio on drilling and pipelines and other infrastructure to support the Utica Shale industry since 2011? No, we didn’t either. That is an astounding number! How about this number: Ad valorem (i.e. property) taxes paid by the shale industry from 2010 through 2018 have totaled ~$132 million. That’s money that goes to fund local schools and towns. Amazing!
OTHER U.S. REGIONS: Colorado oil industry gets overhaul by regulators; Is this the end of Colorado’s shale boom?; Understanding microbial communities in fractured shales goal of NSF-sponsored project; The world’s cheapest natural gas; NATIONAL: California imports the most electricity from other states; Pennsylvania exports the most; U.S. oil, gas land deals plunge to 10-year low in first quarter; Natgas volumes headed for 108 Bcf/d by 2024, crude economics to ‘wreak havoc’ on gas; Cheniere’s secret? Stick to tested strategy even as LNG industry pushes new business models; House Democrats voted for a natural gas future, and nobody noticed; Citing differences, Shell walks away from U.S. refining lobby; INTERNATIONAL: Carbon tax hits diesel prices in four Canadian provinces.
MDN recently received a hot tip from a reader that says Shell (i.e. SWEPI) may have recently sold its Tioga County, PA assets in northcentral PA. Yesterday, Pin Oak Energy issued a press release to say they have cut a deal to buy Shell’s northwestern PA assets, some 43,000 acres in the Utica. Which all feeds into the rumor we shared with you last November that Shell is pulling out of PA drilling (see 
The Cuomo-corrupted New York Dept. of Environmental Conservation (DEC) is spitting and sputtering, “warning” the Federal Energy Regulatory Commission that if they (FERC) decide to rule that NY took too long to approve the Williams Constitution Pipeline and now gives the project a go-ahead, the DEC intends to rain down all sorts of legal hell on the agency. Which tells us one thing: the DEC is VERY nervous that their power to block pipeline projects is about to be neutered.
The Mariner East 1 pipeline sprung a small leak and spilled 20 barrels (~840 gallons) of ethane and propane in Berks County, near Philadelphia, on April 1, 2017 (see 
A 30-inch segment of Enbridge’s Texas Eastern Transmission Company (Tetco) interstate natural gas pipeline exploded in January, sending two people to the hospital and destroying two nearby homes when fires from the blast spread (see 
We spotted a story about landowners in the Philadelphia suburbs who currently have to live with construction of the Mariner East 2 pipelines (plural, there are two of them, ME2 and ME2X), literally happening in their back yards. While we are strong supporters of the ME2 project, we are not unsympathetic to landowners and the hassles they have to endure while it’s being built.
We about fell out of our chair when we read an editorial appearing in the far-left Providence (Rhode Island) Journal. We call Rhode Island the “People’s Republic of Rhode Island” because it’s about as far left as North Korea or China. Most folks in the state irrationally hate all fossil fuels and believe renewables will save them from man-made global warming. At least, that was our impression. We were shocked to read an editorial in yesterday’s Journal that makes a strong case for, pleads for, new natural gas pipelines to get built in New England.
A notable development in a lawsuit that before now, we were unaware of. Several landowners in Venango County (northwest PA) filed a lawsuit against Shell’s SWEPI drilling subsidiary in 2013 claiming SWEPI had stiffed them out of lease bonus payments due under duly signed lease contracts. The landowners attempted to turn the lawsuit into a class action, claiming the same thing had happened for about 300 leases in the area. A federal judge has just ruled against converting the lawsuit into a class action.
A second lawsuit we’re reporting on today that had previously slipped by our usually good radar. A former Cabot Oil & Gas employee filed a lawsuit in October 2017 alleging that he and a number of other “employees” had been stiffed out of overtime payments by Cabot–that Cabot had treated them as independent contractors rather than as employees. The lawsuit was granted class certification.