Energy Services | Energy Transfer Partners | Industrywide Issues | Michigan | Ohio | Pipelines | Statewide MI | Statewide OH | Taxation
Rover Pipe Paid $73M in Property Taxes Last Year, $180M This Year
One of the arguments often heard from those who oppose natural gas pipelines is that “nobody” benefits from the pipeline except the sleazy Big Corporation that builds and profits from it. A single pipeline running through Ohio and Michigan puts that lie to rest. Rover Pipeline, built and operated by Energy Transfer, paid out some $73 million in local property taxes in 2018 when the pipeline first began operation. For 2019, with the full pipeline operating at 100% capacity for the entire year, Rover says they will pay out ~$180 million in property taxes! Taxes that fund schools, roads, first responders and other worthy causes.
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There are plenty of jobs in the shale industry in northeastern Pennsylvania–IF you have certain skills. What kind of skills? The kind that are taught at programs like at the Lackawanna College School of Petroleum and Natural Gas (PNG) in their two-year program. Or skills you can pick up at the Susquehanna County Career and Technology Center.
We read on a regular basis in mainstream media that shale companies spend more money than they bring in, and that investors are growing tired of pumping money into companies without a return on their investment. We’ve recently noticed a renewed commitment on the part of major drillers to get their financial houses in order–spend less and drill less in order to make more money. We spotted an article by Reuters on the “shale drillers aren’t profitable/healthy” meme which got us investigating the financial health (or lack thereof) for Marcellus/Utica drillers. What we found may interest you.
New York Gov. Andrew Cuomo finally got his wish last year by forcing the operator of the Indian Point Energy Center (nuclear power plant) located near New York City to agree to partially close down next year, and fully close down in 2021. We recently got a small preview of what will happen when Indian Point goes offline. In March Indian Point went completely offline for two weeks–scheduled outage for one reactor, and a malfunction in the other. Guess which form of energy took up the slack? It wasn’t solar. It wasn’t wind. It wasn’t hydro. It wasn’t magic fairy dust. It was natural gas that rode in to save the day.
This is nuts! This is insane! Because of overproduction, lack of pipelines, and an existing pipeline down for maintenance, natural gas sellers at the Waha natural gas trading hub (in West Texas) are actually paying buyers to take the gas off their hands–up to an amazing $5 per thousand cubic feet!!!!
MARCELLUS/UTICA REGION: Democrat Pam Iovino wins Pa. Senate seat; The frac sand revolution (in the Marcellus); OTHER U.S. REGIONS: Total invests further in Tellurian’s Driftwood LNG project; NATIONAL: U.S. refinery runs hit fifth consecutive annual record high in 2018; Infected U.S. shale oil is being turned away by Asian buyers; INTERNATIONAL: Members of B.C. First Nation plan new camp to block natural gas pipeline path.
Shale driller Huntley & Huntley, headquartered in Monroeville (Allegheny County), PA drilled at least one well last year in the Pittsburgh suburb of Plum (also in Allegheny County). According to a landowner living nearby, H&H’s drilling and fracking of the Midas 8M well led to their water well becoming fouled. H&H disputes the claim.
Pennsylvania towns that pass sketchy local ordinances that skirt state laws are on notice: It’s going to cost you. Big. For the past several years we’ve reported on the case of Grant Township, PA that passed an ordinance cooked up by the radical Community Environmental Legal Defense Fund (CELDF) to try and block a state-approved injection well. The ordinance was tossed by a judge, and now the town will have to pay $102,000 in legal fees incurred by the operator.
What will Jeff Tittel of the odious New Jersey Sierra Club say now? Tittel and his ilk have for years litigated to block a natural gas pipeline that would flow Marcellus gas from PA into New Jersey, a pipeline that would cross through 10 miles of scrub pines colloquially known as the Pinelands–a “protected” area in NJ. Tittel objected to cutting down a few hundred scrub pine trees to make way for the pipeline. And just like that, Mother Nature came along last weekend and torched 10,000 acres of those same scrub pines via a forest fire. Maybe Mom Nature is clearing the trees for the pipeline?!
The Federal EPA has just launched the “New Owner Clean Air Act Audit Program” which allows drillers who purchased wells and drilling operations from other drillers to perform a self-audit of their new purchases for violations of the Clean Air Act–looking for fugitive methane and VOCs (volatile organic compounds).
Investment firm BlackGold Capital Management announced late last week it has purchased Overriding Royalty Interests (ORRI) in the Utica shale of Ohio from an unnamed seller. We have a guess as to who did the selling.