Did The Russian Poison Meant For Alexei Navalny Kill Nord Stream 2 Instead?

The politics of energy cuts many ways. The latest to learn that is Russian President Vladimir Putin.  Read my latest article in Forbes.com to read how poison meant for a Russian dissident may kill a key natural gas pipeline instead.

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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.

Forbes.com Article: China/India Conflict Only Highlights The Continued Importance Of American Energy Development

In a period of great dislocation where the world seems to change every day, the India-China frontier is the latest flash-point. In my new article on Forbes.com, read how our politicizing and delaying our infrastructure build-out is hurting our national interests in South Asia as well as the world’s environment on Forbes.com for more.

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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.

 

 

Can The US Senate Stop Germany’s Gas Pipeline From Russia In A Post-Coronavirus World?

In a rare bi-partisan move two United States Senators seek to block construction of a Russian natural gas pipeline directly to Germany.  See why and what this means in my latest article in Forbes.com.

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.

Marcellus Shale Update – When the Snow Turns Green

When the snow turns green in russia

Residents of the Siberian town of Pervouralsk have been horrified by a sight they never expected – green colored snow.  Vladimir Putin’s Russia, in the same way as the Communist Soviet Union, industrializes with little regard to the environment.  Now, pollution from a chrome factory in Pervouralsk turns snow a poisonous green.  Elsewhere in Siberia, pollution from open air coal pits in Kemerovo falls as toxic black snow and makes streets black and grimy.  Meanwhile, residents of Sibai in the Urals must wear masks due to choking smog from a copper factory.  Protests have broken out throughout Siberia and elsewhere.  Meanwhile, the Russian citizens’ trust in Putin has plummeted more than 33 percent since 2006.  The environmental mess, together with a stagnant economy and related issues, means that Putin now has popularity ratings south of Donald Trump’s.

The Russian environmental disaster shows the folly of American states like Massachusetts and New York that rely in any way on Russian oil or natural gas, then claim that this is environmentally superior to building pipelines from the Marcellus Basin.  Simultaneously, it’s a cautionary tale for the pipeline builders and the natural gas industry themselves about the importance of environmental responsibility in their operations.

New York and New England continue to pursue policies destined to produce both energy deficiency and environmental destruction.  The Boston Globe reported that two Massachusetts towns, Holyoke and Middleborough, have issued moratoria on new natural gas hookups due to lack of supply.  This follows Con Edison’s moratorium in Westchester County, New York.

Massachusetts’s supply constraint is the result of the Bay State’s failure to allow the build out of natural gas pipelines from the Marcellus Shale region of Northeastern Pennsylvania.  The Globe warned that many energy experts believe that while the State’s two largest gas suppliers, National Grid and Eversource, claim their natural gas supplies are adequate for now, that won’t last long.

Environmentalists in Massachusetts call for increasing supplies from Canadian hydropower and offshore wind, but fail to state what the grid to store and transmit that power would look like.  Skeptics also note that whenever a large offshore wind farm project is proposed there is mass opposition from many of the same environmentalists who oppose shale drilling.  Martha’s Vineyard, Nantucket, the New Jersey Shore, Chesapeake Bay, Vermont and others are places where offshore wind farms have been proposed but dropped due to local opposition.  Where exactly do we build the wind farms that the environmentalists want?

It is this type of idealistic, irrational thinking that results in environmental destruction.  Alexandria Ocasio-Cortez’s “Green New Deal” calls for eliminating fossil fuels in ten years.  Were this concept to pass, how would that occur?  Presumably, a politically appointed group would be authorized to decide unilaterally how and where energy is created, where transmission lines go, and how it gets stored.  To make this work at all, there could be little opportunity for public input.  There wouldn’t be enough time.  But how happy could the public possibly be ceding this kind of decision making to a politically appointed body?  And what about things like eminent domain and the need to seize private property for wind turbines, solar panels and the like; where and how will power storage occur when battery storage technology simply does not exist at present to meet the demands of the system; etc.  The result would be a disaster for our environment, if it could even work at all which is most dubious.

Of course, the opposite also is true.  The energy industry must show continually that it can preserve the environment as it performs its tasks.  Those who wish to see the end of the fossil fuel industry will not hesitate to point to every mistake that the industry makes as rationalization for its elimination.  This week the CEO of Energy Transfer Partners, the company building the Mariner East 2 pipeline, admitted that “we’ve made mistakes and we are correcting those mistakes and will not make those mistakes again.”  Let’s hope he means it.  Mariner East has been plagued with problems, and ETP has done little before to show it cares or that it even is aware of the depth of suspicion that exists toward its performance.

From a political standpoint, environmental degradation can have enormous consequences.  Putin, already facing dissention over his economic performance, must deal with the people who can’t understand why their snow now is poisonous.  The air in Beijing is so bad that Chinese Communist leaders no longer can just add more factories to China’s enormous metropolises.  Ironically, the pollution itself is the only thing capable of putting a stop to its creation.

It remains true that the greatest environmental destruction occurs in places wholly run by government.  The Massachusetts and Mariner situations remind us we need to seek the proper balance.  That will be a continuous but evolving process in which both public and private interests must participate.  Without both, our planet will not be safe.

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.

2018, The Year in Review

Year in Review - Marcellus Shale Update by Daniel Markind of Flaster Greenberg PC

2018 began with the United States producing immense amounts of oil and natural gas; pipeline companies struggling to build out the national pipeline system but not being transparent about how they are doing it; Europe, led by Germany, continuing to move toward 100% reliance on renewable energy yet becoming even more dependent on Russian gas as a result; and New York and New England continuing to block energy generation and pipeline construction in their areas so that they, too, had to import gas from Vladimir Putin.

2018 ended with the United States still producing immense amounts of oil and natural gas; pipeline companies still struggling to build out the national pipeline system but not being transparent about how they are doing it; Europe, led by Germany, still continuing to move toward 100% reliance on renewable energy yet becoming more dependent still on Russian gas as a result; and New York and New England still continuing to block energy generation and pipeline construction in their areas so that they, too, may have to continue to import gas from Vladimir Putin.

As the saying goes, the more things change….

Meanwhile, here in Pennsylvania, the biggest news was the reelection of Governor Tom Wolf and the confusion over the time-honored “rule of capture”. Wolf’s reelection, along with Democratic gains in the State House and Senate, mean the severance tax issue will be back on the table come budget season. The Governor almost had his severance tax in 2017 but threw it away in a move that remains inexplicable following agreement from Senate Republicans to support it. The “rule of capture” means that whatever gas flows into the producer’s pipes belong to the producer, subject to paying royalties to the landowner. In the hydraulic fracturing context, the argument is that the gas may have been taken illegally because it emanated from an adjacent landowner’s property. How an adjacent landowner could prove any of this, or more importantly how a gas company could disprove it, remains a mystery. Now, it will be up to the Pennsylvania Supreme Court to make a decision.

In West Virginia, the State Legislature in 2018 voted overwhelmingly to uphold the State’s “marketable product” doctrine for paying royalties. The votes followed a 2017 West Virginia Supreme Court decision in the Leggett case changing the calculation rule, which is unusual but also used in states such as Oklahoma and Kansas. The difference between “at the wellhead” states like Ohio and Pennsylvania and “marketable product” states like West Virginia is that in West Virginia a producer cannot deduct its costs from the overall royalty payments it makes to the landowner until the gas has been reduced to a “marketable product”. Of course, exactly what that means often is a subject of controversy. Regardless, West Virginia made sure it stayed in the “marketable product” group of states, and the overwhelming votes in both houses of the State Legislature shows how popular that concept is.

Ohio ended 2018 leading the region in development of the Utica Shale. The Utica is deeper than the Marcellus. Companies such as Cabot Oil and Gas now actively are exploring the Utica in Ohio. Combined with the Marcellus, the two basins portend an enormous potential for energy production in the Marcellus-Utica Region.

Then there’s New York. Governor Andrew Cuomo won reelection easily in 2018 so we can expect his anti-natural gas policies to continue. The Governor is about to shut the Indian Point nuclear reactor and claims there will be sufficient power from renewable sources – mostly hydroelectric from something called the “Champlain Hudson Power Express” – to make up the shortfall. That hasn’t worked in New England and is unlikely to work in New York. Already New York is importing gas from Russia.

In November, FERC gave Governor Cuomo and unusual setback when it granted the Constitution Pipeline a rare time extension to finish construction. The Constitution remains stalled solely because of Governor Cuomo’s power grab regarding the Section 401 Clean Streams Permit.

New York has refused other pipeline permits and seems determined to follow its renewable idealism regardless of the practical consequences. While the Mueller Commission continues to investigate the possibility of collusion between Vladimir Putin and President Donald Trump, Putin’s best friends in the United States may be Andrew Cuomo and the other New England governors. They insist on ensuring that Russia will continue to have influence over the energy security of the Northeastern United States.

Cuomo’s international energy champion is German Chancellor Angela Merkel. Since 2010 Merkel has pursued her energy policy of “Energiewende”, trying to shift the German economy from nuclear power and fossil fuels to renewable energy. It hasn’t worked. Germany now has the highest energy prices in Europe, is increasingly dependent on Russia for supply (hence “Nord Stream 2”), needs to burn coal for decades in order to make up for the intermittent nature of solar and wind, and actually has to pay foreign governments to offload extra supply from solar and wind sources when they actually are producing because the supply is so uneven it would damage the German power grid.

Merkel and Cuomo are environmental “Idealists”. They are not to be confused with true “Environmentalists”, for whom improvements to the environment are paramount. Environmentalists likely will encourage the switch to natural gas from coal as a bridge to hopefully even cleaner fuels in the future. Idealists like Merkel and Cuomo will fight it at every turn. They will continue to preach and pursue policies that are lovely in the abstract. In real life, however, those policies make our environment dirtier, our economies weaker, and the respective national securities riskier.

Finally to pipelines. As with people like Merkel and Cuomo, pipeline proponents often are their own worst enemies. Energy Transfer Partners has been consistently non-forthcoming in its information regarding construction of the Mariner East 2 and Rover pipelines, but ETP is not alone. Two weeks ago a MarkWest Energy natural gas processing plant in Chartiers Township, Pennsylvania, suffered an accident that killed one person and injured three others. Some press reports stated there was an explosion, others that it was a flash fire. The owners of the pipeline involved, including Marathon Petroleum, won’t clarify publically what happened.

Coming on the heels of other pipeline explosions recently in places like Lawrence, Massachusetts, it would seem in the industry’s best interest to clear up what occurred. Without transparency, new pipeline projects such as Jordan Cove in Oregon and Atlantic Coast in Virginia and North Carolina will face more opposition and trouble.. If Cuomo and Merkel are pursuing self-defeating policies on behalf of their constituents, the pipeline companies are doing the same on behalf of their industry. Hopefully honesty, clarity and transparency will be in greater supply in 2019. That would benefit us all.

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.