Tuesday, December 2, 2008

Southwestern Energy activity


According to Southwestern Energy spokeswoman Elise Mitchell, the company has not flipped leases in the Marcellus Shale. She also said, "Southwestern Energy does utilize the services of various leasing companies to acquire leases, and we have been actively leasing in the Marcellus Shale region."

According to Mitchell, Southwestern Energy has 110,000 net acres in Pennsylvania for natural gas development.

She added, "The company has drilled its first four wells on its acreage in Bradford and Susquehanna Counties, of which two have been tested, one is waiting on completion and the other, the company’s first horizontal well, is expected to be completed in the fourth quarter 2008."

About the long-term potential of the Marcellus Shale, Mitchell said, the shale, "
has the potential to be a viable play across a significant geographical area generating economic benefits for all parties involved including the state and local governments, communities, landowners and the energy industry."




Hearings available online

Video coverage of a Nov. 18 Senate Majority Policy Committee public hearing on the opportunities and challenges of developing the Marcellus Shale are available at, www.senatorbaker.com.

Tuesday, November 18, 2008

Links to recent stories related to natural gas industry

http://www.scrantontimes.com/articles/2008/11/15/news/sc_times_trib.20081115.a.pg7.tt15wastewater_s1.2091720_loc.txt

http://www.scrantontimes.com/articles/2008/11/13/news/sc_times_trib.20081113.a.pg6.tt13susquehanna_s1.2086105_loc.txt

http://www.scrantontimes.com/articles/2008/11/10/news/sc_times_trib.20081110.a.pg1.tt10obama_s1.2077710_top2.txt

http://www.scrantontimes.com/articles/2008/11/08/editorial/sc_times_trib.20081108.a.pg12.tt08edit1_s1.2073546_edi.txt

http://www.scrantontimes.com/articles/2008/11/05/news/sc_times_trib.20081105.a.pg4.tt05state111_s1.2062381_loc.txt

http://www.scrantontimes.com/articles/2008/10/30/news/sc_times_trib.20081030.a.pg8.tt30gasrealestate_s1.2050255_loc.txt

http://www.citizensvoice.com/articles/2008/11/13/news/wb_voice.20081113.t.pg4.cv13cdcountybudget_s1.2086758_top3.txt

http://www.independentweekender.com/site/index.cfm?newsid=20183362&BRD=2279&PAG=461&dept_id=467076&rfi=8

http://www.thedailyreview.com/articles/2008/11/16/editorial/tw_review.20081116.a.pg4.tw16edit_s1.2093541_edi.txt

http://www.thedailyreview.com/articles/2008/11/14/news/tw_review.20081114.a.pg1.tw14pipeline_s1.2089961_loc.txt

http://www.thedailyreview.com/articles/2008/11/14/news/tw_review.20081114.a.pg1.tw14athens_s1.2090191_loc.txt

http://www.thedailyreview.com/articles/2008/11/13/news/doc491c6db11bc3f089894538.txt

http://www.thedailyreview.com/articles/2008/11/12/editorial/letters/tw_review.20081112.a.pg4.tw12letters_s1.2080081_let.txt

http://www.thedailyreview.com/articles/2008/11/07/news/doc4913c15f8a262861659241.txt

http://www.thedailyreview.com/articles/2008/11/05/news/tw_review.20081105.a.pg1.tw05yaw_s1.2065299_loc.txt

Lawsuit

According to Montrose attorney Michael Giangrieco, a ruling has not been made on lawsuit he filed on behalf of several landowners against Cabot Oil & Gas Corp.

The lawsuit is in the federal district court in Scranton. The landowners are attempting to have agreements they made with Cabot nullified.

The landowners are claiming the royalty clauses in the lease do not conform with state law.

Story link above in 'Link' box

Thursday, November 13, 2008

Chesapeake Energy venture


Chesapeake Energy is partnering with
StatoilHydro to develop the Marcellus Shale.
According to Chesapeake, StatoilHydro will acquire a 32.5% interest in Chesapeake's Marcellus Shale assets in Appalachia for $3.375 billion, leaving Chesapeake with a 67.5% working interest


About StatoilHydro :

StatoilHydro is a publicly traded company listed on the NYSE under the symbol, STO. The company has a 52-week trading range of, 15.51 - 43.31.

StatoilHydro has a market cap of 51.64B. In comparison, Chesapeake has a market cap of, 11.97 billion.


Formed in 1972, StatoilHydro is based in Stavanger, Norway.


StatoilHydro refines, markets, transports and develops petroleum and petroleum-derived products, including natural gas and oil. It has service stations in Scandinavia, Poland, the Baltic States of the former Soviet Union and Russia.

StatoilHydro homepage: http://www.statoilhydro.com/en/Pages/default.aspx




Friday, November 7, 2008

Natural gas workshop


Workshop information below:


THE GOVERNOR'S ADVISORY COUNCIL ON RURAL AFFAIRS
IMPORTANT MESSAGE
: PLEASE SHARE THIS INFORMATION WITH YOUR COLLEAGUES & FRIENDS


The Governor's Center for Local Government Services is pleased to announce that registrations are now open for a workshop on Natural Gas Drilling in the Marcellus Shale Region of PA. The workshop, which will focus on steps that local governments can take to prepare for the impacts of drilling in their region, will be held on November 18 in 11 sites throughout the state. Penn State University will provide a video downlink to a panel of experts on this topic. The brochure for this workshop is attached.

Please contact Kelly Lougee with any questions you have regarding the conference at klougee@psats.org or 717-763-0930.

Thursday, October 30, 2008

A committee, Cabot earnings



The Pennsylvania Oil and Gas Association and the Independent Oil and Gas Association of Pennsylvania have formed a joint Marcellus Shale Committee to represent the natural gas industry as it develops the Marcellus play.



Other Subject: Cabot Oil and Gas Corp. has reported its 3rd quarter earnings. A replay of a conference call that discussed the earning's report will be available through Saturday. The replay is accessible at, 800-642-1687 or, passcode 66519033.


At the end of the 3rd quarter, Cabot reported a net income of $67 million. Last year, the company reported a third-quarter net income of $35.5 million.

Cash flow from operations were at $148.3 million, compared with $86.8 million in last year's third quarter.
Discretionary cash flow totaled $161.0 million versus $121.7 million in last year's third quarter.


Below are excerpts from a press release issued by Cabot about its 2009 operations:


"We have always exercised significant discipline in our capital spending, regardless of general market conditions," said Dan O. Dinges, Chairman, President and Chief Executive Officer. "Over the last three years our investments have been around 120 percent of cash flow on average, working off an extremely low leverage ratio, and our 2008 organic effort will be consistent with our past discipline."


Marcellus Shale

Cabot's Marcellus play is focused in northeast Pennsylvania. During the second quarter call, the Company announced its first Marcellus production from a vertical well. Currently, Cabot has five producing wells (all vertical) with a combined average daily volume of 4-5 Mmcf per day. "Our goal was to be producing between 6-9 Mmcf per day by year-end. With the recent success of our wells, I now anticipate exceeding those early targets," commented Dinges.

The first horizontal well was completed with only three of six planned fracs. The well will be flowing to sales shortly. The Company plans to test the first three fracs and then proceed with the remaining three fracs in the next several weeks. "Right now we have two more horizontal wells cased and waiting for completion, along with five vertical wells in various stages of completion. We anticipate having all these wells flowing to sales by year- end," added Dinges.

The capital plan for 2009 is $600 million. "Much of this investment will be spent in East Texas and Pennsylvania," said Dinges. "Only nine percent of our planned expenditures is allocated to our other plays in the Company."

Dinges added, "We plan to allocate over 90 percent of our 2009 capital to the Marcellus and East Texas. In each area, we have received and continue to gather significant new data points. We have been delayed somewhat in our efforts with regulatory issues in Pennsylvania and limited quantities of frac material in East Texas. However, with that being said, we are very excited about the information we have gathered in each area and look forward to receiving test information from key wells that is imminent."



Tuesday, October 28, 2008

Citrus Energy

Profile of Citrus Energy from information gathered from company's Web site

Company Web site: http://www.citrusenergy.com


The company is private, not publicly traded. It has signed natural gas leases with the Wyoming County Landowners Group.

According to the company, operations in the Marcellus Shale will lead to an office opening in Pennsylvania. The company has offices in Castle Rock, Colo. and Plano, Tex.

Company owners are: Lance Peterson and David Oberbrockling. Oberbrockling is an engineer and Peterson, a geological engineer.

The company has operations in Oklahoma, Texas, Washington and Pennsylvania.


Oklahoma:
The company says it has drilled and completed several wells.

Texas: The company says it has a significant presence in the Barnett Shale, holding in excess of 20,000 acres.

Washington: The company says it has acquired or has options to acquire 70,000 acres in the Vader Coal Bed Methane Project. The company says it expects to begin development of the project late in 2008.

Pennsylvania: The company says it now has leasing operations and has formed a partnership with a drilling company to drill.


The company says its partners include: Oklaco Holding, a geologic/land company; Clearwater Enterprises, a gas marketing and consulting company; and, Boom Drilling.

Tuesday, October 21, 2008

Times-Shamrock natural gas drilling story links

http://www.scrantontimes.com/articles/2008/10/20/editorial/sc_times_trib.20081020.a.pg14.tt20edit2_s1.2023716_edi.txt

http://www.scrantontimes.com/articles/2008/10/15/news/sc_times_trib.20081015.a.pg4.tt15wastewater_s1.2016158_loc.txt

http://www.scrantontimes.com/articles/2008/10/14/news/sc_times_trib.20081014.a.pg7.tt14chesapeake_s1.2013270_loc.txt

http://www.scrantontimes.com/articles/2008/10/12/news/sc_times_trib.20081012.a.pg5.tt12engineer_s1.2009433_loc.txt

http://www.scrantontimes.com/articles/2008/10/06/editorial/sc_times_trib.20081006.a.pg12.tt06edit1_s1.1991917_edi.txt

http://www.scrantontimes.com/articles/2008/10/03/news/sc_times_trib.20081003.a.pg4.tt03gastips_s1.1988611_loc.txt

http://www.scrantontimes.com/articles/2008/10/01/news/sc_times_trib.20081001.a.pg7.tt01cheseapeake_s1.1982900_loc.txt

http://www.citizensvoice.com/articles/2008/10/20/news/wb_voice.20081020.t.pg2.cv20cd117th_s1.2026945_top3.txt

http://www.thedailyreview.com/articles/2008/10/09/news/doc48ed80e70227d179200827.txt

http://www.thedailyreview.com/articles/2008/10/08/news/doc48ec471adef17092958657.txt

http://www.thedailyreview.com/articles/2008/10/07/news/tw_review.20081007.a.pg5.tw07tow-council_s1.1996472_loc.txt

http://www.thedailyreview.com/articles/2008/10/07/news/doc48eae2b659d64283767703.txt

http://www.thedailyreview.com/articles/2008/10/05/news/tw_review.20081005.a.pg3.tw04video_s1.1992490_loc.txt

http://www.citizensvoice.com/articles/2008/10/15/news/wb_voice.20081015.t.pg14.cv15cdmoonlake_s1.2015756_loc.txt

http://www.citizensvoice.com/articles/2008/10/05/news/wb_voice.20081005.a.pg4.cv05cdcolumn_s1.1992129_top8.txt

http://www.thedailyreview.com/articles/2008/10/17/news/doc48f8083473b49260241186.txt

http://www.thedailyreview.com/articles/2008/10/16/news/doc48f6c285dd79f493132980.txt

http://www.thedailyreview.com/articles/2008/10/16/news/doc48f6c1718689e591461377.txt

http://www.thedailyreview.com/articles/2008/10/10/news/tw_review.20081010.a.pg1.tw10video_s1.2005601_loc.txt

http://www.thedailyreview.com/articles/2008/10/10/news/tw_review.20081010.a.pg1.tw10gas-lease_s1.2003685_loc.txt

http://www.thedailyreview.com/articles/2008/10/03/news/tw_review.20081003.a.pg1.tw03commish_s1.1989186_loc.txt

http://www.thedailyreview.com/articles/2008/10/03/news/doc48e5a2917ec52560033151.txt

http://www.independentweekender.com/site/index.cfm?newsid=20164919&BRD=2279&PAG=461&dept_id=467076&rfi=8

http://www.independentweekender.com/site/index.cfm?newsid=20164910&BRD=2279&PAG=461&dept_id=467076&rfi=8

http://www.independentweekender.com/site/index.cfm?newsid=20155386&BRD=2279&PAG=461&dept_id=467076&rfi=8

http://newage-examiner.com/sections/news/archive/2008/10/16/eaton-monroe-amend-zoning-regs.aspx

Friday, October 17, 2008

Susquehanna River Basin Commission upcoming meeting

SUSQUEHANNA RIVER BASIN COMMISSION


SRBC TO HOLD HEARINGS OCTOBER 21 AND 22 ON PROPOSED CHANGES
TO STREAMLINE REVIEW OF NATURAL GAS WELL DEVELOPMENT APPLICATIONS

WHAT: The Susquehanna River Basin Commission (SRBC) is holding two public hearings to receive comment 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. The proposed regulatory changes are available on SRBC’s web site www.srbc.net/programs/projreviewmarcellus.htm.

Hearing I:
Tuesday, October 21, 2008 7:00 p.m.

Where:
Lycoming College
Academic Center
Lecture Hall Room D001
Mulberry Street
Williamsport, PA

Hearing Chaired By:
Cathleen Curran Myers
SRBC Alt. PA Commissioner


Hearing II
Wednesday, October 22, 2008 7:00 p.m.

Binghamton University SUNY
Lecture Hall Complex
Lecture Hall 1
Route 434 (Vestal Parkway East)
Binghamton, N.Y.

Hearing Chaired By:
Kenneth Lynch
SRBC Alt. NY Commissioner

DIRECTIONS:
Lycoming College
http://www.lycoming.edu/admissions/OurCampus/CampusMap.html

Binghamton University SUNY
http://www2.binghamton.edu/about/visiting-campus/maps-and-directions.html

Tuesday, October 14, 2008

Chesapeake Energy

Here is information provided by Chesapeake Energy in an Oct. 10 press release. The company is planning to discuss the topics below at its 2008 Investor and Analyst Meeting on Oct. 15 and 16.

The investor and analyst meeting is scheduled to be Web cast live from 2:30-5:45 p.m. on Oct. 15. On Oct. 16, the meeting will be on the Web from 8:30 a.m. to 1 p.m.

Replay of the meeting will happen for 30 days on the Web. The Web cast can be accessed by going to Chesapeake's Web site and selecting the "News & Events" section.

A slide show presentation is also available on the company's Web site.


============================
A) Financial Topics --

a. Sale of Leasehold and Production Properties:

The company plans to generate cases proceeds of $2.5- $3 billion in the fourth quarter from the sale of: a 25 percent interest in the Marcellus Shale; leasehold and associated production in three other areas; and a fourth volumetric production payment.

"Raising additional funds from asset sales in this environment will provide the company with more financial flexibility and the ability to either reduce debt more than previously planned or to potentially repurchase common stock," Chesapeake states in the press release.



b. Capital Spending:

In response to lower natural gas prices, "the company intends to further reduce its capital expenditures budget by approximately $1.5 billion in 2009 and 2010 through a combination of reduced drilling and lower leasehold expenditures," the company states.


B) Operational Highlights

As of Sept. 30, the company had estimated proven reserves of 12.1 trillion cubic feet of natural gas equivalent.
Chesapeake now uses 145 drilling rigs. By year's end, the company expects to operate 135-140 rigs, "and expects to keep its rig count flat to down in 2009 and 2010," the company states.


Side note, as of 12:30 p.m., Chesapeake's stock was 2.07 higher, a gain of 10.25 percent.

The company's 52-week range is, 11.99 - 74.00.

On Oct. 13, Howard Weil downgraded Chesapeake's stock from Market Outperform to Market Perform.

Jefferies & Co. rates Chesapeake's stock at a buy rating and with a $54 price target.

Friday, October 10, 2008

New publication

Penn State has developed a new publication on natural gas leasing. The publication is titled, "Natural Gas Exploration: A Landowner's Guide to Leasing Land in Pennsylvania."


The guide describes lease components, including language, length, payments, surface/subsurface rights, storage, pipelines and parties involved.

The guide also contains a question/answer section.

At http://naturalgaslease.pbwiki.com/Publications, Penn State also provides a sample lease courtesy of the National Association of Royalty Owners.


According to the NARO Web site, the organization's mission is to, "Encourage and promote exploration and production of minerals in the United States while preserving, protecting, advancing and representing the interests and rights of mineral and royalty owners through education, advocacy and assistance to our members, to NARO chapter organizations, to government bodies and to the public."

NARO is located at, http://www.naro-us.org/index.cfm?pageID=1&rnm=0.689520675843

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.

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