CNX Sells WV Gathering System to Former CONE Midstream for $265M
CNX Resources, in addition to issuing an announcement about proved reserves yesterday (see today’s companion story), also issued an announcement about CNX the drilling company selling its Shirley-Pennsboro gathering system in West Virginia to CNX the pipeline company (CNX Midstream) for $265 million. Yes, in a sense it is moving assets around on paper. However, this seemingly innocuous announcement is interesting to MDN for a couple of reasons. First, there is a trend of splitting companies apart–to spin out the pipeline/midstream stuff into its own standalone company, separate from the drilling part of the company. EQT, a major CNX competitor, is going through the process of evaluating whether or not to spin off their pipeline subsidiary into its own company (see EQT Begins Process of Separating Midstream…into New Company?). When we see moves like this from CNX, we wonder if they too are also preparing for such a split. We have no evidence that such a move is in the cards–just idle speculation on our part. However, the fact that CNX is moving pipeline assets into the midstream subsidiary certainly sets up the possibility that the pipeline subsidiary may (one day) become a standalone company. Second, the pipeline subsidiary is called CNX Midstream. That’s a new name. As of early January you would have known it as CONE Midstream. CNX bought out its joint venture partner in CONE (Noble Energy) late last year and now owns all of CONE. CNX renamed CONE as CNX Midstream in early January (see CONE Midstream Gets a New Name: CNX Midstream Partners). We’ve not seen anyone else point out the fact that the former CONE is the buyer of this asset. For those two reasons–the trend of splitting drilling and pipelines into different companies, and the fact that CONE was the buyer–our interest was piqued in CNX’s seemingly innocuous announcement yesterday…
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In November 2015 MDN reported on a seemingly obscure zoning court case in Westmoreland County, PA (see
In 2011, then-Gov. Tom Corbett’s Marcellus Shale Advisory Commission filed a final report with 96 recommendations (see
As we told you last week, Monday (Feb. 5) was the final day for landowners who live along the path of the PennEast Pipeline to accept an offer from PennEast to lease their land for the pipeline (see
A construction company based in North Dakota, Bilfinger Westcon, has filed several lawsuits against MarkWest Energy (now owned by Marathon Petroleum) claiming MarkWest has failed to pay more than $40 million for work done on a number of projects. Bilfinger Westcon says MarkWest used a “time & materials cap” scheme to cap the amount of money they paid for various projects, but then slipped in last-minute change orders. Essentially, it was a way of getting more work for free–that’s the charge being made. Bilfinger says MarkWest was getting ready to sell itself to Marathon and wanted to rush to complete several projects and using time & materials cap was how they did it without breaking the bank. We have to say this is the first time we’ve heard or read anything negative about MarkWest’s business practices. We suspect there’s another side to this story, but MarkWest says they won’t comment on pending litigation. Here’s the Bilfinger Westcon side of the story…
One of the primary ingredients in fracking is sand–a special kind of very fine sand called silica. When silica gets airborne and into a person’s lungs, it’s not good news. Silica behaves like asbestos, with the potential to cause lung cancer. The shale industry is keenly aware of it and takes steps to ensure workers are not exposed. The federal Occupational Safety and Health Administration (OSHA) developed a new rule for respirable silica (tiny tiny sand) that will go into effect for the shale industry in June of this year. We have the details below…
The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Six OH fractivists trash economic development; industry group touts assets in energy-rich OH; Clinton, PA commissioners look to future of natgas; Shale Support opens new Louisiana rail terminal for shale industry; Permian Basin is ‘Saudi Texas’; Chesapeake stock plunges after flat production outlook; U.S. electric mix depends on the price of natgas; big talk at City Hall can’t replace fossil fuels; energy stocks hit hard; oil world turns upside down as U.S. exports oil to Middle East; and more!
Here we go again. Supposedly striking a more “cooperative tone,” Pennsylvania Gov. Wolf’s sympathetic media buddies are trying to spin, as best they can, Wolf’s state budget proposal delivered yesterday. Wolf is a hyper-partisan who, in this latest budget, continues to demand a $250 million/year Marcellus-killing severance tax–on top of the existing impact tax. It is the only new tax in the budget, a budget that increases the already wildly overspent state budget by an additional $1 billion! Spending in Harrisburg is completely out of control–a disaster. The last governor (frankly the only governor in a generation) who tried to correct Harrisburg’s voracious appetite to spend more, Tom Corbett, got voted out of office after one term. Wolf is hoping to score a second term by continuing his Santa Claus routine–by pulling money from the pockets of those who earn it (landowners and drillers) to give away to those who don’t (teacher’s unions in Philadelphia). We are not exaggerating–this is fact. In his proposed $32.9 million budget, Wolf claims a “modest” severance tax will generate $248.7 million this year, and ALL OF IT will go to “education”–meaning teachers and their unions in the Philadelphia region. It’s political payback for their ongoing support and for their efforts to get Wolf elected in the first place. Why is this FACT not discussed openly in the media? It is repugnant to use the gun barrel of the state to steal the wealth of one group and transfer it to another as political patronage. Yet that is Wolf’s mission. Republican legislators reacted negatively to Wolf’s wildly overspent budget (and severance tax), as did the Marcellus industry…
Looks like asking “Pretty please, with a cherry on top” (along with providing requested information) works! MDN previously told you that on Friday, the Federal Energy Regulatory Commission (FERC) asked Rover Pipeline for more information before FERC would allow the project to restart drilling under the Tuscarawas River (see
In the end, it came to down to cold, hard cash. Last May, MDN told you about antis running the City of Green, Ohio who were/are hellbent on stopping the NEXUS Pipeline (see
“Keep It In the Ground” (KIITG) activists have launched a new, deceptive campaign in their holy mission to end the use of fossil fuels. The same people behind Food & Water Watch, Food and Water Action, the Sierra Club and other Big Green groups have/are launching fake landowner coalitions in Ohio. These fake coalitions (one of them being the Tri-County Landowners Coalition) have one aim and one aim only–to convince unsuspecting landowners to hate fossil fuels and anything (i.e. drilling, pipelines) to do with fossil fuels. It is a sleazy and disgusting tactic by the ultra-left, preying on honest, hardworking folks who join coalitions hoping to receive guidance on the best way to protect their land while at the same time profiting from it. Don’t fall for these fake coalitions! Our friends at Energy in Depth are sounding the alarm on this latest move by anti-fossil fuel radicals…
This is what passes for “action” in the swamp of Harrisburg. Over the past couple of years the Pennsylvania Dept. of Environmental Protection (DEP) has gotten slower and slower in issuing permits for shale drilling–for simple things, like erosion permits a driller needs to push dirt around to create a well pad. The DEP has a policy of issuing erosion and sedimentation permits 14 days from the date of application. As of last summer it was taking the DEP over 250 days to issue those permits (see 
Everybody has a “fix” for the chronically slow Pennsylvania Dept. of Environmental Protection (DEP). The DEP has a policy of issuing erosion and sedimentation permits for shale drilling 14 days from the date of application. At last check, it was taking the agency over 250 days to issue those permits. The Marcellus industry has been pressuring the PA legislature for a fix. As we noted in a companion story today, the PA Senate’s “fix” is to study it (see PA Senate Passes Meaningless Resolution to “Study” DEP Slow Permits). The PA House is more proactive, with a series of 5 bills that would, among other things, enlist the help of independent third parties to take up the slack (see
It doesn’t happen often, but we’re speechless. We’ve lived under the apparent illusion that as stupid and insane as liberal leftist environmentalism is, that deep down underneath there’s still at least a small sliver of pragmatic truth that lives. Example: Even though NY Gov. Andrew Cuomo has banned fracking, and blocks natural gas pipelines from getting built (bowing to pressure from the enviro left), at least Cuomo is on board with building a tiny natgas-fired electric generating plant in the heart of Albany, to power the bloated government complex that exists (see