EQT Tries to Gut WV 1982 Minimum Royalty Law for Flat Rate Leases
EQT certainly isn’t following Dale Carnegie’s advice on How to Win Friends and Influence People. Just the opposite, as the company continues to squeeze every last penny it can out of landowners’ pockets who hold old “flat rate” leases in West Virginia. We’ve reported on EQT’s efforts to overturn WV’s Senate Bill (SB) 360, passed earlier this year and signed into law by Gov. Jim Justice (see EQT Still Fighting WV Minimum Royalty Law for Flat Rate Leases). That law disallows post-production deductions for flat rate leases, ensuring landowners receive a minimum 12.5% royalty. In April, EQT sued to overturn the original law, from 1982, on which SB 360 rests–the law that guarantees a 12.5% royalty. Get rid of the original law, and the later law (disallowing deductions) disappears too.
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On January 29, 2017, EQT used underground horizontal directional drilling (HDD) to drill a hole under State Route 136 in Allegheny County, PA, to install a water pipeline. As they were drilling, using what we now know was an out-of-date map, EQT hit an abandoned coal mine full of water, and four million gallons of acid mine drainage (AMD) leaked into the Monongahela River. EQT worked hard and fast to stop the leak (stopping it two days later) and set up a system to prevent any further leaks. Now, nearly two years later, it’s time to pay the piper. EQT just agreed to a fine of $294,000 for violating the Clean Streams Law, and payment of an additional $100,000 to the Clean Streams Foundation to provide for maintenance, operation, and replacement of a system to keep AMD from leaking at the site in the future.
We’re speechless–and that doesn’t happen often. The U.S. Energy Information Administration’s (EIA) monthly “Drilling Productivity Report” (DPR) said that in October the country’s seven major shale plays would produce an amazing, all-time high of 73 billion cubic feet per day (Bcf/d) of natural gas production (see 
Less than one year after buying Baker Hughes (in July 2017), GE decided in June of this year it didn’t want its bright shiny new toy any more and would, over the next 2-3 years, divest itself of Baker Hughes (see 
Natural gas-fired electric generating plants are a big deal. They burn far more efficiently, and pollute way less, than either coal or oil plants. Yet anti-fossil fuelers still hate them because, well, they burn a fossil fuel. And that means they put carbon dioxide (CO2) into the air. And ya know, CO2 is going to make Mom Earth fry “someday.” Whatever. But what if you could capture all of the CO2 and use it/channel it somewhere else, so it didn’t escape into the air? And what if you could ensure that no methane (CH4) escaped either? What if you had a truly zero-emissions natural gas-fired electric generating plant? Such a thing IS possible, and three investors, including Exelon (Fortune 100 electric generating company) is betting on this new technology as the future of electric generation. The question is, will antis shed their prejudice and embrace this new technology?
The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: Paid to protest: Lifting the curtain on Keep Wayne Wild, LLC; McCormick: WV should pitch energy jobs to veterans; Prometheus, Summit open Lebanon, Missouri LNG facility; Massachusetts lawmakers schedule 2 hearings natural gas disaster issues; Natural gas: The $4 dam is breaking for the bears; How much could coal generation stem gas price upside in a cold winter?; And just like that, everybody stopped talking about $100 oil; Oil plunges over 8% as Trump faces off with Saudi Arabia, Russia over production; Structure of fossil-fuel source rocks is finally decoded; IEA says gas to overtake coal in energy mix by 2030; New global emissions rules boost LNG as shipping fuel; First U.S. LNG cargo since 10 percent tariff enacted arrives in China.
It’s been five years in the making, but finally a class action lawsuit that began in 2013, on behalf of 10,000 West Virginia landowners and royalty rights owners against EQT’s practice of deducting post-production expenses from royalty payments, will finally get its day in court in two weeks. That’s what we learn from an extended article published by ProPublica and the Charleston Gazette-Mail on the topic of WV drillers and their practice of “whittling away payments” from rights owners. Just over a month ago MDN told you about an elderly WV couple who won their private lawsuit against EQT on the same matter (see 
We’ve covered, it seems endlessly, news about two important new pipeline projects coming in the Marcellus. One is EQT Midstream’s (now Equitrans Midstream) Mountain Valley Pipeline (MVP), a 303-mile pipe from West Virginia to southern Virginia. The other is Dominion Energy’s 600-mile Atlantic Coast Pipeline (ACP), from West Virginia through Virginia and into North Carolina. MVP will, when it’s done, carry 2 billion cubic feet per day (Bcf/d) of natural gas to southern markets, and ACP will carry 1.5 Bcf/d. Both pipelines chart a similar path south. And both pipelines are now stalled, dogged by frivolous lawsuits filed by so-called environmental groups. Both have announced delays for their final completion dates. Our friends at RBN Energy look in detail at both projects, and what a delay may mean for drillers in the Marcellus/Utica. Are more pipeline constraints on the way in our region?
We’re not much of a fan of the federal Environmental Protection Agency–especially the agency under the jackboots of the Obamadroids. The Obama years saw egregious abuses and wild new regulations that tried to stamp out the fossil fuel industry. In March 2016, we told you about a new “voluntary” program set up by the Obama EPA called the Natural Gas STAR Methane Challenge Program (see 
Each year the International Energy Agency (IEA) issues a special 
The last time we checked in (June) on a brewing frack ban in Penn Township (Westmoreland County), PA, a challenge to a local ordinance which allows Apex Energy and Huntley & Huntley to drill and operate wells rested with a county judge. Things have since rapidly progressed. We’re guessing the local judge ruled in favor of allowing the wells to be drilled because the case was appealed to PA Commonwealth Court. Late last week the judges in Commonwealth Court issued a ruling in favor of Penn Township’s “special exception” permits awarded to Apex Energy, allowing them to drill shale wells.