Wednesday, October 8, 2008

Natural gas permits issued in 2008

Natural gas permits issued in 2008 by county according to DEP

Allegheny - 2


Armstrong – 380


Bradford – 22


Butler – 46


Cambria – 25


Centre – 35


Clarion – 225


Clearfield – 178


Clinton – 31


Crawford – 48


Elk - 132


Erie – 20


Fayette – 189


Forest – 8


Greene – 250


Huntingdon – 1


India – 363


Jefferson – 326


Lycoming – 51


McKean – 33


Mercer – 49


Potter – 46


Susquehanna – 44


Tioga – 13


Venango – 69


Warren – 20


Washington – 257


Wayne – 2


Westmoreland – 433

Environmental impact forum Oct. 16.



On Oct. 16:


Forum on environmental impact of natural gas drilling follows viewing of film, ‘Land Out of Time,’ that discusses the impact of gas drilling on the Rocky Mountains, at 7 p.m., at the Montrose Theater in Susquehanna County. Donation $2-4. Sponsored by Citizen's Watch and the Green Party of Pennsylvania.

Tuesday, October 7, 2008

Cabot Oil and Gas Corp

Cabot is based in Houston. As of June 30, the company had 23.2 billion cubic feet equivalent in natural gas and oil production in the Gulf Coast, West, East and Canada.

Canadian operations are based in Calgary; Western, Denver; Gulf Coast, Houston; East, Charleston, W.Va.

The company was founded in 1989. Company executives and pay: Dan Dinges, chairman and chief executive officer, $1.19 million; Scott Schroeder, chief financial officer and vice president, $595,000; Michael Walen, chief operating officer and senior vice president, $760,000.


Cabot total assest as of June 30 in thousands was $2,718,432
Cabot net income as of June 30 in thousands was $54,625
Cabot net earning per share - basic as of June 30 was 55 cents



On the stock market, Cabot around 12:30 p.m. today traded between 27.30 and 29.30. The company's 52-week high is 72.92 and low, 24.07. That's a 66.991 percent difference between high and low. Year to date, Cabot's stock is down 30.25 percent.


Cabot has a market cap of $2.84 billion.

On Oct. 2, Cabot provided a presentation during a "Merrill Lynch Global Energy and Small Cap Conference."

The company reported that by year's end it will have 137,000 plus acres in the Marcellus Shale and 135,000 plus acres in the Haynesville Shale. The Haynesville Shale is located in parts of Texas, Louisiania and Arkansas. The Shales are described by Cabot as its core areas.



Update on Eastern Region (includes Marcellus Shale, Huron Shale and Tight Sands):
* 778 billion cubic feet equivalent, 48 percent of company
* 99 percent natural gas
* 32-year reserve life
* 3,178 gross wells
* 3,000 miles of pipeline
* Resource potential --- 4.5 to 6 trillion cubic feet equivalent for Marcellus resource

Update on Marcellus Shale:
* 4 rigs in operation
* 14 wells drilled
* 6 wells producing
* In 2009, expect to have 60-80 wells. Now 30


Total company resource: 10.5 to 16 trillion cubic feet equivalent


Linke to presentation: http://www.cabotog.com/pdf/Merrill_Lynch_08.pdf

Note: Information will be provided on other natural gas companies

Tuesday, September 30, 2008

Links to recent natural gas articles

Links to recent articles/editorials that reference or are about natural gas in Times-Shamrock papers


For the Scranton Times-Tribune go to, http://www.scrantontimes.com/articles/
..2008/09/30/news/sc_times_trib.20080930.a.pg5.tt30regbriefs_s1.1981076_loc.txt ..2008/09/28/news/sc_times_trib.20080928.a.pg1.tt28dimock_s1.1959092_top2.txt
..2008/09/27/news/sc_times_trib.20080927.a.pg6.tt27lease_s1.1974203_loc.txt
..2008/09/25/editorial/sc_times_trib.20080925.a.pg10.tt25edit1_s1.1966297_edi.txt


For the Citizens Voice go to, http://www.citizensvoice.com/articles/
..2008/09/29/news/wb_voice.20080929.t.pg5.cv29cdcandidates_s1.1978574_top4.txt


For the Towanda Daily Review go to, http://www.thedailyreview.com/articles/
..2008/09/26/editorial/tw_review.20080926.a.pg4.tw26edit_s1.1972479_edi.txt
..2008/09/20/news/tw_review.20080920.a.pg3.tw17watershed_s1.1951519_loc.txt
..2008/09/20/news/tw_review.20080920.a.pg1.tw20shale2_s1.1960445_loc.txt
..2008/09/12/news/tw_review.20080912.a.pg3.tw12gas_s1.1941269_loc.txt


For Susquehanna County Independent, http://www.independentweekender.com/site/
..index.cfm?newsid=20124607&BRD=2279&PAG=461&dept_id=467076&rfi=8
..index.cfm?newsid=20114002&BRD=2279&PAG=461&dept_id=467076&rfi=8


For Wyoming County Press Examiner go to, http://wcexaminer.com/site/
..index.cfm?newsid=20123544&BRD=2310&PAG=461&dept_id=480505&rfi=8
..index.cfm?newsid=20123646&BRD=2310&PAG=461&dept_id=480505&rfi=8

Another landowners group is forming

Important Gas Meeting for Unsigned Landowners.
Sat. Oct. 11, 2008 at 10:00 a.m.
Lenoxville Community Hall
1 mile east of Interstate 81, exit 206,
on Rt. 374
Hear from a Geologist/Petroleum Engineer
and a Natural Gas Marketing Specialist
Find out about:
- The Chesapeake pullout
- State of Affairs
- Lease structuring
- Joining our Group
- Sponsored by NEPALA


For a listing of landowner groups (and lots more) go to, http://www.pagaslease.com/directory_public.php

Today, Tuesday, testimony on natural gas drilling in Harrisburg

Recent Times-Tribune article on testimony on natural gas drilling in Harrisburg

Hearing targets water use for drilling


Published: Sunday, September 28, 2008
By Robert Swift
HARRISBURG — The House Environmental Resources and Energy Committee plans a hearing Tuesday on the natural gas boom in the Marcellus Shale formation covering a large part of Northeast Pennsylvania. Testifying will be state environmental officials and oil and gas industry representatives.

Rep. Camille George, D-74, the panel chairman, said the hearing will focus on protecting water resources during drilling. “Each drilling operation could require up to 1 million gallons of water, and in recent weeks almost $400,000 in fines have been assessed against drillers in just two counties for either withdrawing water without a permit or starting well construction without a permit,” added Mr. George.

Mr. George has sponsored a comprehensive bill to tighten state regulation of drilling activities.

Pay to play

An effort to put a dent in Pennsylvania’s “Pay-to-Play” culture is being made by a group of House Republican lawmakers. This tag refers to the age-old practice of doling out lucrative government contracts to politically influential companies and campaign contributors. While these deals skirt the quid quo pro of an outright bribe, they exemplify an attitude of “You scratch my back, I’ll scratch your back.”

Rep. Robert Godshall, R-53, tackles this practice with a bill to ban the awarding of public contracts to those who made a campaign donation within the year prior to the contract being posted for bidding.

Another bill by Rep, Mike Turzai, R-28, would ban no-bid state contracts to private law firms, an ongoing practice that acquired the nickname of “pinstripe patronage” back in the Thornburgh administration.

The package includes a bill to require competitive bidding on executive and legislative contracts over $100,000.

“We’re not trying to set the Legislature out of the scope of this,” said Rep. Douglas Reichley, R-134. “We want a clean break with the practices of the past.”

Free ride

Drunks would be able to arrange for a ride home under a state-sponsored program if a Senate bill becomes law. The “Safe Ride Home Program” was the subject of discussion at a Senate committee hearing last week.

The bill by Sen. Stewart Greenleaf, R-12, would create a program in which an intoxicated individual at a licensed liquor establishment without a ride could alert a bartender and get a ride home either by taxi or from volunteer drivers. The state Liquor Control Board would have oversight for the program designed to reduce drunken driving.

A number of details will have to be ironed out for the bill to advance, among them a funding source.

Wisconsin’s “SafeRide Program” was mentioned by LCB director Joe Conti as a possible example to follow.

This program relies on participating taverns and a $5 surcharge on drivers convicted of DUI. The surcharge revenues go to the taverns and to reimburse “good Samaritan” drivers for travel expenses.

====

Note: Testimony will also be given by people from the natural gas industry, including Stephen Rhoads, of the Pennsylvania Oil and Gas Association.


Department of Environmental Protection Acting Secretary John Hanger also testified.

In another matter, several thousand acres (at least) were placed into gas leases during a recent Wyoming County Landowners Group signing session at Shadowbrook Inn & Resort in Tunkhannock Township.

Thursday, September 25, 2008

Natural gas stocks

Here are some natural gas stocks:


Cabot Oil and Gas
In April 1990, Cabot's stock was at 4.3221. The company's stock has a 52-week range of 32.10-72.92. The company expects to announce third-quarter earnings on Oct. 29.


Chesapeake Energy
In February 1993, Chesapeake's stock stood at, 1.1223. The company's stock has a 52-week range of 34.42-74.00.


Range Resources
In January 1992, Range Resources stock was at 2.7361. The company's stock has a 52-week range of 37.17-76.81.

PUC regulating retail market

PUC press release below:

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today initiated an action plan to increase effective competition in the retail market for natural gas supply.

The Commission voted unanimously to release a report documenting the work of the Stakeholders Exploring Avenues for Removing Competition Hurdles (SEARCH) working group and begin the action plan saying that efforts to increase effective competition in the retail natural gas market should “be concentrated on changing the market structure and its operation to reduce or eliminate barriers to supplier entry and participation.”

The action plan will be implemented in two phases and is to be completed within two years. The first phase will address items that the PUC can implement immediately to facilitate the development of a competitive market such as:

Creating an Office of Competitive Market Oversight with the Commission;
Expanding purchase of receivables programs; and
Pursuing legislative changes regarding capacity assignment/release.
Phase two will include three rulemakings to address issues for natural gas distribution companies (NGDC); natural gas suppliers (NGS) and business practices. NGDC issues include price to compare; reconciliation and quarterly adjustments; purchase of receivable programs; mandatory capacity release and non-discrimination; and cost recovery of competition-related activities.

NGS issues include creditworthiness of suppliers and reasonable security requirements. Business practice issues include standardization of NGDC system operating rules; specific operation rules regarding nomination and delivery requirements, tolerance bands, cash out/penalties and standardization of electronic bulletin boards.

The PUC will complete a formal milestone review in five years to evaluate the progress in development of more competition in the retail natural gas market. The report and additional information is available on the Commission’s Web site at www.puc.state.pa.us under natural gas/issues/stakeholders working group.

The 1999 Natural Gas Choice and Competition Law allows customers to purchase gas from independent suppliers, while still having their gas physically delivered by PUC-regulated distribution companies. The law directed the PUC to investigate the level of competition five years after the law went into effect and to report its findings to the General Assembly.

In October 2005, the Commission determined that “effective competition” did not exist in the retail natural gas supply market statewide based on the lack of participation of an adequate number of natural gas suppliers and customers in the retail natural gas market, and the identification of substantial barriers in the market structure and operation that prevented the participation of these groups in the market. The PUC then convened the stakeholders in the natural gas industry to examine avenues to increase competition.

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities to ensure safe and reliable utility service at reasonable rates; protect the public interest; educate consumers to make independent and informed utility choices; further economic development; and foster new technologies and competitive markets in an environmentally sound manner.

For recent news releases, audio of select Commission proceedings or more information about the PUC, visit our Web site at www.puc.state.pa.us.

=============

Tuesday, September 23, 2008

Susquehanna River Basin Commission Hearings

SRBC PRESS RELEASE BELOW ABOUT HEARINGS:




SUSQUEHANNA RIVER BASIN COMMISSION



FOR IMMEDIATE RELEASE September 22, 2008

CONTACT: Susan Obleski, Director of Communications

Office: (717) 238-0423, x316 Cell: (717) 215-7278



SRBC TO CONDUCT HEARINGS ON PROPOSED CHANGES TO STREAMLINE REVIEW OF NATURAL GAS WELL DEVELOPMENT APPLICATIONS, PROTECT WATER RESOURCES
Public Comments Accepted Until October 31


HARRISBURG, Pa. – The Susquehanna River Basin Commission (SRBC) today announced it is conducting public hearings on October 21 and 22 on proposed regulatory revisions that will further protect the basin’s water resources and streamline the review of consumptive water uses by the natural gas industry. SRBC’s proposed revisions are open for public comment through October 31.



Included among the proposed revisions affecting the natural gas industry, SRBC would:

- Require all requests for consumptive water use approval to go through SRBC’s approval by rule process – an administrative procedure – rather than SRBC’s standard consumptive water use application process.

- Expand the approval by rule process to allow project sponsors to utilize a broader range of water sources as part of their consumptive use approval, including public water supplies, discharges from wastewater treatment facilities and other lesser quality water sources, and withdrawals from other sources approved separately by SRBC. (The current approval by rule process applies only to water from public water suppliers, thus making project sponsors undergo the standard consumptive use application process for all other water sources.)

- Regulate projects on a drilling pad basis, versus the current process that addresses consumptive use requests on a company-lease area basis.

- Require projects to demonstrate compliance with state and/or federal law for the treatment and disposal of flowback or produced fluids, including brines.

- Incorporate the August 14, 2008 determination by the SRBC Executive Director that all quantities of water withdrawn or used for natural gas well development be reviewed effective October 15, 2008.

- Limit SRBC approval to five years.



“We expect the demand for water from the natural gas industry to continue increasing for some time,” said SRBC Executive Director Paul Swartz. “The proposed regulatory changes will allow the Commission to address this increasing demand in a more orderly fashion.”



Swartz said, “As a water management agency, we work to achieve a balanced approach, which means we both protect and promote the use of the basin’s water resources.”



While SRBC does not regulate water quality, the proposed regulatory changes include provisions specifically related to the flowback fluids and brines produced during the hydrofracing process. In addition to requiring project sponsors to comply with all federal or state laws related to the proper treatment and disposal of fluids and brines, SRBC would require projects to separately account for all such fluids or brines.



Swartz said, “As the Commission anticipates the final adoption of these regulatory changes, we have already put into practice several of the protective measures by incorporating them as special conditions into the dockets the Commission approved at its September meeting.”



In conjunction with the public comment period, SRBC has scheduled two public hearings to explain the proposed regulatory changes and to receive public comment. The hearings will be held on:

- October 21, 7:00 p.m., Lycoming College, Academic Center, Lecture Hall Room D001, Mulberry St., Williamsport, Pa.

- October 22, 7:00 p.m., Binghamton University, SUNY, Lecture Hall Complex, Lecture Hall 1, Route 434 (Vestal Parkway East), Binghamton, N.Y.



Persons planning to present oral testimony at a public hearing should provide prior notice, if possible, to Richard Cairo, General Counsel, Susquehanna River Basin Commission, 1721 North Front Street, Harrisburg, PA, 17102, Phone: (717) 238-0423, ext 306, Fax: (717) 238-2436, E-Mail rcairo@srbc.net.



The proposed regulatory changes are available on SRBC’s web site at www.srbc.net/programs/projreviewmarcellus.htm. Written comments can be submitted on or before October 31, 2008 to Richard Cairo, whose contact information is provided above.



SRBC is scheduled to take final action on the proposed regulatory changes at its next quarterly business meeting on December 4, 2008.



More than 72 percent of the tri-state Susquehanna watershed, covering portions of New York, Pennsylvania and Maryland, are underlain by the Marcellus and other organic-rich shale formations. Advancements in technology for capturing natural gas in those shale formations require operators to inject large amounts of water under pressure several thousand feet underground to fracture the formation to stimulate the flow of gas. For more information on SRBC’s regulation of natural gas well development projects, go to SRBC’s web site at www.srbc.net/programs/projreviewmarcellus.htm.



SRBC (www.srbc.net) is the governing agency established under a 100-year compact signed on December 24, 1970 by the federal government and the states of New York, Pennsylvania and Maryland to protect and wisely manage the water resources of the Susquehanna River Basin. The Susquehanna River starts in Cooperstown, New York, and flows 444 miles to Havre de Grace, Maryland, where the river meets the Chesapeake Bay.

Delaware River Basin Commission

While the focus has been on the Susquehanna River Basin Commission (which regulates much of the area where natural gas drilling is likely to occur), the Delaware River Basin Commission has also been dealing with natural gas exploration.

The group regulates a small portion of Lackawanna and Luzerne counties, as well as most of Pike County. Monroe and Carbon counties also fall under the commission's jurisdiction. So does a part of Schuylkill County. Parts of New York State also fall under the commission's jurisdiction, including Broome County.

The Marcellus Shale runs beneath the above stated counties.


Over the summer, the DRBC told Stone Energy Corporation to halt operation in Wayne County because it had not received the commission's approval.

Here's a link to the commission's page: http://www.state.nj.us/drbc/