Friday, November 05, 2010

Daily Weekly Marcellus

Lost in the politicial buzz... 

From Bloomberg is this for the 'hmm....' file:

Natural Gas Consumers in U.S. Miss Full Benefit of Drop in Futures Prices

You wonder if the same political forces that hate emminent domain when used by others will object to this:

SW Pa. Marcellus company seeks 'utility' status

This is fascinating...  one of the biggest Marcellus developers wants its $220 back.. :

Drilling firm wants money back for Donora claims

and from Platt's I am just curious about this tweet

and I'll just append this here... Isn't this the creepiest video? The Pennsylvania = Syria segment is really just amazing. It's so screwey I wonder if it is really produced by the anti-Marcellus factions out there as more of a poisoning the well kind of thing.  Note the youtube video still that comes through has a Gordon Gecko inset?  Not exactly an image that leads toward positive feelings.  Just weird. 


Anonymous The Wiz said...

Anomalies requiring pressure reductions sounds scary to me, a possible leak? Or maybe just equipment failure like a compressor going bad. Don't really know.

Eminent domain is a hot topic in the gas industry but it is mainly part of the "forced pooling" legislation that has been proposed. More precisely, the industry wants the right to force people into a unit or pool even if they don't sign a lease to give drillers the right to drill under the property but not allow them any access to the land surface. The argument is that they will be 6000 ft below the surface and will not disturb the surface owner in any way and is similar to aircraft flying over the property.

But landowners consider it an illegal taking and a distortion of eminent domain. Look for lots lawsuits should forced pooling be passed in Pa. (BTW most petro producing states allow it.)

Speaking of legislation I saw this article legislating incentives to covert municipal vehicles to CNG and build CNG filling stations. Maybe I helped plant that seed.

And here's a PSU article on sources of frac water like municipal treatment plants and even acid mine drainage. here's the money quote;
"We do not need crystal clear water to use as a base fluid for fracturing," he said. "We do not need to treat the water at all in order to get good production -- no distillation, crystallization, reverse osmosis, nanofiltration, etc. That's all unnecessary to meet new downhole requirements," Gaudlip said.

Friday, November 05, 2010 10:00:00 PM  
Anonymous MH said...

That video is something special in terms of pointlessness, even for YouTube. With five minutes, you'd think they could have picked a couple of points and made a supported argument. There were a couple of times when they started to make an argument that wasn't trivial (i.e. other states don't tax until the initial investment is paid-off, adjust the tax for the difficulty of the extraction), but they just dropped it without providing any supporting detail. I'm assuming the actual supporting detail isn't there.

The way they mentioned environmental problems with a detail-less, dismissive "we got that covered," does make you wonder who actually made this video. Probably some gas company executive has his own Rielle Hunter. Or somebody thinks Pennsylvania is full of idiots, which, if that is the case, it is something I don't feel like rebutting.

P.S.: The guy by the highway is talking about $1 million a year in fees to Bradford County and he mentions the copier fees? Bring a scanner should you go to Bradford.

Saturday, November 06, 2010 3:14:00 PM  
Anonymous The Wiz said...

That was pretty amateurish. Hope the drilling crews are a tad more professional. The girl was creepy, some one's squeeze, fer sure. What killed me was they showed a clip of a guy that said "Well, I don't know anything about any severance tax so I can't really say much" HUH??? What was that doing in there?

Shame, too, as they had several good points to make especially about the high corporate taxes here.

Saturday, November 06, 2010 7:57:00 PM  
Blogger C. Briem said...

The copier fees as public finance strategy is by far the most creative thing I have heard in a long time. I still think this is all some sort of farce or hack of some kind.

Seriously.. there is a big issue out there in the T over tax revenues and I am not talking about severance tax. Lots of local governments or counties depend on hotel taxes generated locally. Pennsylvania law says that if you stay in a hotel more than 30 days you are considered a permanent resident and exempt from hotel taxes. Since the drillers have all hotels in the impacted counties booked solid the hotel taxes are being lost. It's a big problem in some areas. .. even if the individual residents are not staying continuous 30 days, no easy way for the hotels to know that and charge the tax.

and I still just don't get what the producers of that video where thinking.. Has Gordon Gecko been so rehabilitated? I honestly started watching that presuming it was an anti-marcellus thing. By the end I was somewhere between confused and amused.

Saturday, November 06, 2010 11:59:00 PM  

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