Will Fracking Decide Who Becomes The Next President?

Every day it seems there is another issue which dominates the headlines about the Presidential election. In the end though, it may come down to natural gas and how Pennsylvanians feel about the clients’ positions on fracking. 

Read my latest piece on Forbes.com for more.

Questions? Let me know.

Daniel Markind of Flaster Greenberg

Daniel Markind is a shareholder at Flaster Greenberg PC with over 35 years of experience as a real estate and corporate transactional attorney. He has represented individuals and companies in the energy industry for over 20 years. Dan is a frequent lecturer on Marcellus Shale and other mineral extraction issues and is regularly asked to speak at conferences, in the media and at other venues regarding energy issues and their legal and political implications.

Devastated By Coronavirus, New York’s Pipeline Politics Ensure A Tougher Second Round

Having just closed one reactor at the Indian Point Nuclear Facility, New York doubles down by rejecting a new natural gas pipeline. How will the New York City metropolitan area fare in the fall and winter?  Read my latest article in Forbes.com for some thoughts.

Click here
to read more.

Questions? Let me know.

Daniel Markind of Flaster Greenberg
Daniel Markind is a shareholder at Flaster Greenberg PC with over 35 years of experience as a real estate and corporate transactional attorney. He has represented individuals and companies in the energy industry for over 20 years. Dan is a frequent lecturer on Marcellus Shale and other mineral extraction issues and is regularly asked to speak at conferences, in the media and at other venues regarding energy issues and their legal and political implications.

Pacific Dreams & Nightmares

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By a vote of 17-11, the Oregon State Senate last week just passed a five-year moratorium on fracking in that State. The Senate bill cut in half a 10-year moratorium passed in March by the Oregon House of Representatives, but the House is expected to quickly agree to the Senate version. Then the bill will be passed along to Governor Kate Brown, who is likely to sign it.

The fracking moratorium comes on the heels of the Oregon Department of Environmental Quality’s rejection of Section 401 Clean Water Certifications for the Jordan Cove Pipeline, which would have transported gas and oil to a terminus on Coos Bay in economically depressed Southwestern Oregon. Currently there are no fracking operations in Oregon. The proposed moratorium and the DEQ decision, however, put Oregon clearly in the camp of states that stake out an environmentalist position, with future consequences to be seen.

North of Oregon, across the Canadian border, the province of British Columbia lost a ruling issued by the Provincial Court of Appeals where the Court said that the BC government could not stop the Mountain West Pipeline from Edmonton, Alberta to Burnaby, BC, north of Vancouver. Long time readers of this blog will remember that last year two Canadian provinces, Alberta and British Columbia, almost had a trade war over BC’s attempts to stop the pipeline.

What BC did accomplish was forcing out the pipeline developer, Kinder Morgan, and requiring the Canadian Federal Government to take over the project. That Canadian Federal involvement was the main reason the BC Court of Appeals rejected BC’s latest attempt to stop Trans Mountain. The Court ruled that the Province did not have the power to stop what now is a Federal enterprise.

Given the Section 401 Certification situation in Oregon, which we have seen repeated elsewhere in the United States, such as New York’s recent rejection of the Northeast Supply Enhancement Pipeline, it bears asking the question of whether this will be the model that we will have to follow in this country to get interstate pipelines built at all? Will the US Government actually have to build the pipelines itself and fight out Federal-State constitutional issues every time we need to build a pipeline somewhere?

All along the North American West Coast, states and provinces are moving against what they perceive as “dirty” energy.  But as they move against oil and natural gas (although don’t ask BC about coal, which the Province still hypocritically produces and exports in massive quantities), the West Coast needs viable energy sources to replace them. That part of the equation remains lacking.

What the West has now is large quantities of wishful thinking and good intentions, but no sensible, practical or economically viable energy policy. This is true especially in the short term, as Westerners assume that, eventually, so-called green energy will be sufficiently widespread to actually fill projected needs.

Left Coast residents should take heed. Laws that appear good in the abstract can be devastating when put into actual practice. Good intentions are never sufficient to make up for lost services that are essential to human life and economic well-being.

If Oregon goes ahead with its fracking moratorium and bans Jordan Cove, it will need to ensure that it has energy sources ten years in the future. Does it have a plan for this? If so, the Oregon public has a right to know what it is. If that plan calls for large amounts of “renewables”, the public should ask itself how that power gets stored and transmitted. Will Oregon need massive new investment in huge batteries to store solar energy that cannot be produced at night or power lines to move wind power from the wilderness (where it is typically generated) to populated areas where it is most needed?  If that’s the case, what type of power lines will Oregon need?  Are they the same type that just was shown to have caused California’s deadly and destructive wild fires last year?  If large batteries are needed, does this battery storage technology even exist to handle all that would be needed if there were no fossil fuels?  Technologically, can any of this actually be done – at least in 2019 – 2029?  If not, what official in Kate Brown’s Administration gets to tell the good citizens of Portland, Eugene and Medford that there will be no heat during the winter?

Questions? Let me know.

Daniel Markind of Flaster Greenberg

Daniel Markind is a shareholder at Flaster Greenberg PC with over 35 years of experience as a real estate and corporate transactional attorney. He has represented individuals and companies in the energy industry for over 20 years. Dan is a frequent lecturer on Marcellus Shale and other mineral extraction issues and is regularly asked to speak at conferences, in the media and at other venues regarding energy issues and their legal and political implications.

Shale Gas News Podcast – Pipelines, Fracking & More

shale gas news podcast

I had a great time on the Shale Gas News Podcast over the weekend discussing New York Governor Andrew Cuomo’s dilemma regarding approval of the NESE pipeline, the decision by Oregon to deny a Section 401 Clean Streams Certification for the Jordan Cove Pipeline, the banning by Washington Governor Jay Inslee of fracking in his state, and the battle near Death Valley over lithium mining, which is needed to make renewable energy sources viable.

Check it out here in case you missed it. (My interview appears at 18:55).

Questions? Let me know.

Daniel Markind of Flaster Greenberg

Daniel Markind is a shareholder at Flaster Greenberg PC with over 35 years of experience as a real estate and corporate transactional attorney. He has represented individuals and companies in the energy industry for over 20 years. Dan is a frequent lecturer on Marcellus Shale and other mineral extraction issues and is regularly asked to speak at conferences, in the media and at other venues regarding energy issues and their legal and political implications.

 

 

Is West Virginia Prioritizing The Past Over The Future?

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West Virginia Governor Jim Justice made one of the most curious gubernatorial moves in recent years recently, when he vetoed a bill that would have directed money to plug the Mountain State’s approximately 4,000 abandoned gas wells.

The bill, which had strong bipartisan support, would have decreased the State’s severance tax on low producing wells and directed other monies to a fund for the plugging of the abandoned ones.

To show how strong support was for the legislation, the House passed the bill 89-11 and the Senate 33-1. At a time when different political camps have difficulty agreeing on anything, the bill was supported by the oil and gas industry, landowners, the West Virginia Farm Bureau, and the environmental community. That kind of agreement from notoriously warring factions is almost unheard of.

Given that level and breadth of support, why did Governor Justice veto the bill? In his veto letter, the Governor objected to the tax rate cut on the low-producing wells and stated that the money to plug the abandoned wells should come from West Virginia’s General Fund. That seems a curious position given the positive environmental goal and the amount of public support.

Some see a nefarious purpose behind the Governor’s move. The “Marcellus Drilling News” suggested that the Governor vetoed the bill as a payoff to his supporters in the coal industry, specifically big coal mine operator Robert Murray. Indeed, last week the Governor signed a bill lowering the tax rate on steam coal used in power plants, but then turned around and rejected a cut in the gas tax rate payable by low producing wells and raising other funds to help clean up West Virginia.

It’s not a pretty picture. At best, the Governor committed political malpractice by blindsiding nearly everyone in the State. At worst, the Governor made a terrible choice to reward certain large coal operators at the expense of the citizens of West Virginia.

This all comes at a time when West Virginia is about to receive a massive $2.5 billion investment in an ethane cracker plant to support the gas industry. How Governor Justice explains his veto to the industry that is plowing money and resources into his economically depressed State will be interesting to watch in the weeks to come.

Questions? Let Dan know.

Daniel Markind of Flaster Greenberg

Daniel Markind is a shareholder at Flaster Greenberg PC with over 35 years of experience as a real estate and corporate transactional attorney. He has represented individuals and companies in the energy industry for over 20 years. Dan is a frequent lecturer on Marcellus Shale and other mineral extraction issues and is regularly asked to speak at conferences, in the media and at other venues regarding energy issues and their legal and political implications.