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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.

Tuesday, October 21, 2008

Times-Shamrock natural gas drilling story links

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.

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.

Friday, September 19, 2008

Weekly federal natural gas report

Sept. 18 natural gas report====
General---

Here's Energy Information Administration weekly natural gas report, verbatim:

--- Natural gas spot prices decreased at most market locations in the Lower 48 States this report week (Wednesday–Wednesday, September 10-17), even as disruptions in offshore Gulf of Mexico production continue in the aftermath of Hurricane Ike. However, price movements were not uniform, and prices increased at some trading locations directly supplied by offshore Gulf of Mexico production, which was almost entirely shut-in for most of the week. During the report week, the Henry Hub spot price increased $0.17 per million Btu (MMBtu) to $7.82.

--- At the New York Mercantile Exchange (NYMEX), the price of the near-term contract (October 2008) had decreased to its lowest price in 2008 early in the week, closing at $7.248 per MMBtu on Thursday, September 11. However, the price increased nearly $0.631 per MMBtu in yesterday’s trading session. For the week, the September 2008 contract gained 51.7 cents per MMBtu, ending trading yesterday (September 17) at $7.91.

--- During the week ending Friday, September 12, the implied net injection of natural gas into underground storage totaled 67 billion cubic feet (Bcf). Working gas in underground storage as of September 12 totaled 2,972 Bcf, which is 2.1 percent above the 5-year (2003-2007) average.

--- The price of crude oil continued its recent steep decline, decreasing 5.1 percent during the report week. Nonetheless, a sharp increase of $5.90 per barrel in the West Texas Intermediate (WTI) average price yesterday appeared linked to macroeconomic conditions. The WTI price yesterday (September 17) averaged $97.39 per barrel, or $16.79 per MMBtu, which was $5.27 per barrel higher than the previous Wednesday.

Prices--

--- Spot natural gas prices moved lower this week in most regions of the Lower 48, despite severe reductions in supplies from the Gulf of Mexico offshore as the industry continued its efforts to recover from Hurricane Ike. On a regional basis, spot markets along the Gulf Coast in Louisiana and East Texas registered an average price decrease of $0.01 and $1.06 per MMBtu, respectively. Lower prices for crude oil (which competes with natural gas in end-user markets and upstream investment), as well as lower natural gas demand and infrastructure constraints after the hurricanes, likely contributed to lower prices. For example, Houston and its environs continue to lack electric power, much of which is fueled by natural gas, following the hurricane. Across Texas, roughly 2.5 million households were without electricity immediately after the hurricane, and about 1.6 million remained without power as of 10 p.m. yesterday (September 17). Nonetheless, the direction of price movements in week-to-week comparisons was not uniform with some regional infrastructure disruptions and demand characteristics resulting in scattered price increases. The price at the Henry Hub in Erath, Louisiana, was 17 cents per MMBtu higher on the week, ending trading yesterday (September 17) at an average of $7.82. The Henry Hub, as well as other locations in Louisiana, is supplied at least partially by offshore production, which was still reduced by more than 6 Bcf per day as of yesterday, according to the Minerals Management Service (see Other Market Trends below).

--- The largest price decreases on the week occurred in the Midcontinent region, which also has the lowest current prices in the country. Available Midcontinent supplies were abundant during the week as demand in the region was likely considerably lower because of flooding (another effect of a strong weather front and the recent hurricanes). Additionally, at least one major pipeline in the region, CenterPoint Energy Gas Transmission (CEGT) has been reporting inordinately high levels of linepack on the pipeline and enforcing balancing of deliveries and nominations. Price decreases were widespread in the region, with the largest ($1.79 per MMBtu) occurring in the eastern trading pool for CEGT. The average price in the Midcontinent region declined $1.49 per MMBtu to $4.09, which was 43 cents lower than the average price in the Rockies (which often in recent years has had the lowest prices in the country).

--- Contrary to the general decrease in prices across the country, market prices at Northeast trading locations increased during the report week. The average spot price in the region was $7.94 per MMBtu yesterday, which was 1 cent higher on the week. Although temperatures in the Northeast were mostly mild during the report week, the slight price increase may have followed from some heating load with night-time temperatures dipping below freezing in a few locales in New England. For the week, the average spot price for delivery off Transcontinental Gas Pipe Line in the Northeast (in the Transco Zone 6, Non-New York locations) increased by $0.13 per MMBtu to $8.17, a premium of $0.35 per MMBtu to the price at the Henry Hub.

Spot Prices ---

--- At the NYMEX, the price of the near-month contract (for October delivery) increased $0.517 per MMBtu during the report week to $7.910, owing to a surge in the price on Wednesday, September 17. The daily settlement price for the near-month contract on Thursday of last week reached the low point of $7.248 per MMBtu, which was the lowest price for a near-month contract since December 27, 2007 (for the January 2008 contract), and the lowest price for the October 2008 contract since trading on August 3, 2005. However, the general decline in the price of the contract recently was reversed yesterday, as the price of the near-term contract rose 63.1 cents per MMBtu during the trading session, marking the largest single-session gain in value for any near-term contract since a gain of 79 cents on October 16, 2006 (for trading of the November 2006 contract). Despite yesterday’s gain, which occurred on a day the price of crude oil gained $5.90 per barrel, the price of the near-term contract is still substantially less than during the chaotic aftermath of Hurricane Katrina in 2005, when the October contract expired at $13.907 per MMBtu. Relative to the past 2 years, the current contract price for October is 23 and 88 percent higher than the October 2007 expiration price of $6.423 and the October 2006 expiration price of $4.201, respectively.

--- The average futures contract price for the upcoming heating season (November 2008 through March 2009) rose $0.40 per MMBtu on the week to $8.517. This price is $0.70 per MMBtu more than yesterday’s Henry Hub spot price, suggesting an economic incentive to inject natural gas into storage. Beyond March 2007, the contracts for the next year increased but at more modest increments ranging between 24 cents and 18 cents per MMBtu. The 12-month futures strip (October 2008 – September 2009) settled yesterday at $8.40 per MMBtu, which is 31.4 cents higher than last week.

Storage---

--- Working gas in storage increased to 2,972 Bcf as of Friday, September 12, 2008, according to EIA’s Weekly Natural Gas Storage Report (Weekly Natural Gas Storage Report (see Storage Figure). This report week’s implied net injection of 67 Bcf is lower than the 5-year average injection of 77 Bcf and above last year’s injection of 63 Bcf. As a result, current inventories are now 2.1 percent above the 5-year average level of 2,911 Bcf. The difference between current inventories and levels last year at this time decreased to 4.6 percent, or 142 Bcf. If net additions through the end of October equal the average rate of the past 5 years, working gas stocks at the start of the heating season would be 3,390 Bcf.

--- The net injection came during a week in which about 38 Bcf of supplies were shut-in because of evacuations and other safety precautions related to Hurricanes Gustav and Ike in the Gulf of Mexico offshore taken by the industry, according to the Minerals Management Service. Reduced demand likely counteracted the effects of the large volume of supplies that were shut-in during the week, allowing for the substantial build in storage.

--- This week’s injection partly reflects moderate temperatures across the United States, which kept demand for heating and cooling needs low. For the week ending September 11, 2008, temperatures were slightly cooler-than-normal. However, the relatively low levels of 16 heating degree-days and 45 cooling degree-days for the week ending September 11 indicate minimal heating and cooling load for the country as a whole.

Other Market Trends ---

DOE Reports on Hurricane Impacts: The U.S. Department of Energy (DOE) has continued tracking the impact of the recent hurricanes, Gustav and Ike. Hurricane Ike made landfall near Houston, Texas, at 3 a.m. EDT on September 13, 2008, as a strong Category 2 hurricane. DOE reported as of 6 a.m., September 17, that there are almost 3 million customers without electric power in several States because of the weather-related conditions. The biggest outage remains in Texas where almost 2 million customers are without power. According to the Minerals Management Service (MMS), 6,087 million cubic feet per day (MMcf/d), or 82 percent of the Federal Gulf of Mexico’s (GOM) natural gas production, remains shut in. In addition, operators have shut in about 1.2 million barrels per day (bbl/d) of oil production or 96 percent of the Federal GOM total, as of September 17. According to the MMS, Hurricane Ike destroyed 28 of the 3,800 offshore production platforms in the Gulf of Mexico. The platforms that have been destroyed produced a total of 82 MMcf/d of natural gas and 11,000 bbl/d of crude oil. Furthermore, a total of 425 production platforms, or 59 percent of the Gulf’s 717 manned platforms, remain evacuated. A total of 50 drilling rigs or 41 percent remain evacuated.

Transportation ----

--- As of September 17, at least 10 interstate pipeline companies had force majeure declarations in place, according to the U.S. Department of Energy (DOE). These pipelines include Mississippi Canyon Pipeline, Trunkline Gas Pipeline, and Black Marlin Pipeline, all of which continue to assess damage to their facilities following last week’s landfall of Hurricane Ike. However, ANR Pipeline Company reported that it has completed inspection of its southeast area facilities, which were cleared for nominations for Wednesday’s gas day, while damage assessments of its Louisiana onshore and offshore facilities continue.

--- Sabine Pipe Line, LLC, lifted the previously declared force majeure on Tuesday, September 16, for a total of 11 points along its system, including 7 at the Henry Hub. However, compression at the Henry Hub complex remains unavailable at this time and Sabine advises its customers that gas flow through the system must be received at sufficient pressure.

--- Southern Natural Gas Company reported minor damage to its interconnection with the Henry Hub (Sabine Pipe Line) as a result of Hurricane Ike and notified customers that gas flow will be allowed at reduced levels. The company expects all repairs to be completed within 3 to 5 days.

--- Spectra Energy Transmission reported that there were no significant damages or effects to their facilities as a result of Hurricanes Gustav and Ike and anticipates that remaining inspections will be completed by the end of this week. Spectra owns and operates the Texas Eastern Transmission Corp. pipeline system, which has reported that there are currently no flows on its Cameron, South Pass, and Main Pass lines in Louisiana.

--- The Energy Information Administration (EIA) has confirmed that 19 natural gas processing plants remain shut down, which includes those plants still affected by Gustav, totaling an operating capacity of 9.42 billion cubic feet (Bcf) per day (approximately 54 percent of the capacity in Hurricane Ike’s path). In addition, EIA reports that 13 plants have resumed operations at reduced or normal levels totaling 5.28 Bcf per day operating capacity and that 6 plants with 2.65 Bcf per day of operating capacity are capable of restarting once power is restored or upstream gas flow commences.

Link to EIN: www.eia.doe.gov/oil_gas/natural_gas/info_glance/natural_gas.html

Links to recent Scranton Times Tribune articles natural gas subjects:

Each address begins with http://www.scrantontimes.com/articles...

/2008/09/17/news/sc_times_trib.20080917.a.pg4.tt17naturalgas_s1.1950032_loc.txt
/2008/09/17/news/sc_times_trib.20080917.a.pg4.tt17natgas_s1.1951488_loc.txt
/2008/09/12/news/sc_times_trib.20080912.a.pg5.tt12wastewater_s1.1941010_loc.txt

Wednesday, September 17, 2008

Wyoming County Landowners Group

The Wyoming County Landowners Group has rescheduled its natural gas lease signing session for only Thursday, Sept. 18 and Friday, Sept. 19. Residents in these municipalities are represented: Braintrim Township, northwest corner of Eaton Township, Forkston Township, Mehoopany Township, Meshoppen Borough, Meshoppen Township, Monroe Township, Noxen Township, Washington Township and Windham Township.

The signings are scheduled to be held at Shadowbrook Inn & Resort. The signing session scheduled for today, Sept. 17, has been canceled.

Also, here's a link to a Wyoming County Press Examiner article that details water withdrawals in Wyoming and Susquehanna counties approved by the SRBC last week:

http://www.newage-examiner.com/site/index.cfm?newsid=20123541&BRD=2310&PAG=461&dept_id=480505&rfi=8

Tuesday, September 9, 2008

Court hearing, gas linke

The Times Tribune natural gas blog is listed as a resource at http://conserveland.org/pp/naturalgas. The site belongs to the Pennsylvania Land Trust Association.

Also, a hearing is scheduled for Sept. 16 in Scranton in federal court. The hearing stems from a lawsuit filed by Susquehanna County landowners against Cabot Oil and Gas
Corp. The landowners hope to nullify their contracts with Cabot.

According to court documents, the landowners claim in part that Cabot land men told them that they would never get more than what was being offered at the time. The landowners signed leases for, $25, $50 or $100 an acre.

The landowners are also claiming their contracts are void because the agreements with Cabot violate a state law that stipulates landowners are supposed to receive at least a 1/8 royalty.

--By Josh Mrozinski

Tuesday, September 2, 2008

Cabot Oil & Gas Corp. tour

Last week, Cabot Oil & Gas Corp. gave a tour of its natural gas well operations in Susquehanna County. State regulators from New York and Pennsylvania attended, including Pennsylvania Agriculture Secretary Dennis Wolff. It was the first time Cabot opened its drilling operations in the county to the public. About 20 people attended, including Susquehanna County Commissioner MaryAnn Warren.

Featured during the tour were separate locations where pipe will be laid, a drill in operation, a compressor station and a gas producing well. Cabot expects to lay about 10 miles of pipe.

After the tour ended, Wolff said that he found adequate safeguards for the environment. He also said revenue created by natural gas drilling could help struggling farmers keep their farms.

-- By Josh Mrozinski