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Shale Gas News – July 7, 2018

shale gas news - desRosiers_headshotBill desRosiers
External Affairs Coordinator, Cabot Oil & Gas

 

The Shale Gas News, heard every Saturday at 10 AM on 94.3 FM, 1510 AM and Sundays on YesFM, talked about the DRBC, PennFuture, a warning to Governor Cuomo and much more last week.

The Shale Gas News has grown again; welcome Gem 104 as our FOURTH station! Gem 104 helps to solidify the Shale Gas News coverage in an important Marcellus region, PA’s northern tier. The Shale Gas News is now broadcasting in Bradford, Lackawanna, Lancaster, Lebanon, Luzerne, Lycoming, Pike, Sullivan, Susquehanna, Tioga and Wayne Counties, as well as in greater central PA. The Shale Gas News is aired on Saturday or Sunday depending on the station.

Every Saturday Rusty Fender and I host a morning radio show to discuss all things natural gas. This week, we replayed the testimonies of UDRBC President Ned Lang and UDRBC Secretary Betty Sutliff from a few weeks ago when they testified before the House in Harrisburg on the overreach of the DRBC in Wayne and Pike Counties.  Ned Lang and Betty Sutliff are both landowners in the Delaware River Basin.

Shale Gas News

The Shale Gas News, typically, is broadcast live. On the July 7th show (click above), we covered the following new territory (see news excerpts below):

  • Victory! DRBC Loses in Federal Court, Good Guys Advance! Finally, at long last, the 3rd Circuit Court of Appeals has ruled and it was a clear victory for the good guys and a major defeat for the arrogant DRBC. When Federal District Court Judge Mariani dismissed the Wayne Land and Mineral Group’s argument that a well pad is not a water project back in March of last year, I noted the following: The DRBC argued for dismissal on the astounding theory it hadn’t taken any real action to stop drilling. The judge soundly rejected that bizarre theory and used 90% of a 44 page opinion doing so. He then moved the case directly to the Court of Appeals by dismissing the case on language that had yet to be debated, rocketing the case forward for a real decision by the court.
  • FERC Plays Hardball with Rover – Refuses to Certify 4 Laterals. Rover Pipeline has violated one of the sacrosanct rules of life (and of pipeline construction): “Say what you’ll do, then do what you say.” Rover told the Federal Energy Regulatory Commission it would restore areas previously dug up to lay the pipeline by certain dates (primarily June 30th). In return, based on those promises from Rover, FERC allowed the company to begin service on certain sections of the $3.7 billion, 711-mile natural gas pipeline that runs from PA, WV and eastern OH through OH into Michigan and on to Canada via the Vector Pipeline. Rover has been pressuring FERC to allow two of the laterals–the Burgettstown and Majorsville laterals, that reach into western Pennsylvania–to begin service.
  • EQT Confirms Sale of Huron Shale to Diversified for $575M. MDN exclusively brought you the news, on June 19, that Diversified Gas & Oil had purchased EQT’s Huron Shale assets in Kentucky, Virginia and West Virginia for $575 million. At that time, Diversified did not disclose who it had purchased the assets from. MDN provided a guess, but that guess proved wrong. Within an hour of posting about the sale, an MDN tipster confirmed for us the seller was EQT, which we subsequently updated, providing the MDN audience with the inside skinny. On Friday, June 29, EQT issued a press release confirming that yes, it was they who had sold the acreage/assets, including nearly 12,000 wells with 200 million cubic feet per day of natural gas production, to Diversified.
  • PennFuture Tries to Bully Pittsburgh Airport re Gas Royalties. As is so often the case, radical Big Green groups, like PennFuture, attempt to intimidate (i.e. bully) by using threats of legal action, those who dare to use and (gasp) enjoy the monetary benefits of shale drilling. In early 2013 the Pittsburgh International Airport and Allegheny County, PA signed a deal with CONSOL Energy (now CNX Resources) to lease 9,000 acres surrounding the airport for natural gas drilling. The airport received a $50 million signing bonus and the promise of 18% royalties on anything produced and sold.
  • Rick Perry Tells Cuomo – You’ll Face “Reckoning” for Blocking NatGas. Yesterday, Dept. of Energy Secretary Rick Perry leveled a warning to Andrew Cuomo and the leaders of other states blocking natural gas pipelines: You will face a “real reckoning” of high energy costs and vulnerabilities (i.e. blackouts) because of your actions. Perry stopped short of saying Washington and the Trump Administration would use Executive Orders to unblock some of the blocked pipeline projects (which is a disappointment). But Perry alluded to that possibility when he said, “We have to have conversation as a country, is that a national security issue that outweighs the political concerns in Albany, N.Y.?” Cuomo should be concerned.
  • Ascent Resources Spends $1.5 Billion to Buy OH Utica Acreage, Wells. Last Thursday, Ascent Resources, a company founded by Aubrey McClendon after he left Chesapeake Energy, announced it is buying 113,400 Utica Shale acres along with 93 operating wells located in eastern Ohio for $1.5 billion. The new acreage tips Ascent over the 300,000 Utica acre line and catapults the company into one of the largest privately owned drillers (exploration and production) in the U.S. The companies doing the selling are CNX Resources and Hess (selling a joint venture they co-owned, each selling their share for $400 million each, for a total of $800 million), Utica Minerals Development (a subsidiary of First Reserve, a private equity firm headquartered in Greenwich, CT, and EMG), and a fourth, unnamed mystery seller.

The Shale Gas News sponsored by Linde Corporation

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