Shale Gas News – January 11, 2020

Bill 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 changes to environmental rules, LOLA Energy, Rogersville Shale 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 had Daniel B. Markind, Esq. of Flaster Greenberg PC as a guest.

Shale Gas News

The Shale Gas News, typically, is broadcast live. On the January 11th show (click above), we covered the following new territory (see news excerpts below):

  • Survey: Fewer Pa. households entered 2019-20 winter without heat. Fewer Pennsylvania households entered the current winter season without heat than in the two previous years, according to the Pennsylvania Public Utility Commission.  More than 18,350 households across the state entered the winter season without heat-related utility service or using unsafe heating sources, PUC said in its 2019 Cold Weather Survey.
  • Trump proposes change to environmental rules to speed up highway projects, pipelines and more. President Trump on Thursday proposed fundamental changes to 50-year-old regulations in an effort to speed up new mines, pipelines and hundreds of other projects around the country, including some that could harm the environment and accelerate climate change. The move also could prevent communities from having much say about what gets built in their backyards.
  • Diversified Gas & Oil Blazes Trail Using Wells as Collateral. Diversified Gas & Oil owns close to 8 million acres of leases with some 60,000 (mostly) conventional oil and gas wells. Their focus has been to acquire quality production and cash flow–regardless of the well or commodity type (gas or oil). They currently have over 400 M-U shale wells in their portfolio. In November Diversified closed on a deal to raise money via securitization–meaning to issue securities (“notes”) based on the value of their gas wells. Turns out Diversified is a trail blazer in using wells as collateral.
  • Snyder Bros Pays $1.2M to Drill Under Allegheny River in W PA. Snyder Brothers, headquartered in PA, used to drill mostly conventional (vertical only) wells in PA. However, these days the company drills horizontal shale wells in the Marcellus in southwestern PA. Just coming to light now is a lease Synder Brothers signed with the PA Dept. of Conservation and Natural Resources (DCNR) in 2019 to pay DCNR $1.2 million to lease land under the Allegheny River in Armstrong County.
  • LOLA Energy Files 2nd Lawsuit Against EQT for Trespass in SWPA. Last July MDN broke the news that LOLA Energy had filed a lawsuit in Greene County, PA against EQT for allegedly drilling shale wells under property EQT formerly leased, but property for which the leases had lapsed and were subsequently scooped up by LOLA Energy II (see LOLA Energy Sues EQT for Trespass, Drilling Wells Under LOLA Land). LOLA said they are the owners of those leases now and that EQT has drilled under some of their properties. In another MDN exclusive, LOLA has just filed a second lawsuit in Greene County against EQT for the same thing: trespassing on LOLA-leased property.
  • EQT Pays Big Money to Hire Former CONSOL Exec as CFO. QT has just lured CONSOL Energy’s chief financial officer (CFO) away and hired him–for BIG money. Big in our book anyway. David Khani was paid a signing bonus of $2 million and will get an annual base salary of $540,000 per year. Plus bonuses. Who says bean counters don’t make big money? Oh! And Khani has a connection to MDN’s home town too.
  • Kentucky Launches New Study of Rogersville Shale Potential. The State of Kentucky is spending $7.4 million ($5.9 million coming from the U.S. Dept. of Energy) to study the oil and gas potential of the Rogersville Shale (and other formations) located in eastern Kentucky. Which is big news for us in light of previous failed attempts to drill in the Rogersville.

The Shale Gas News sponsored by Linde Corporation

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