North Dakota lawmakers continue holding hearings and debating the merits of energy bills to create incentives for less associated gas flaring at the wellhead and to provide tax relief for oil and gas producers, a spokesperson for the state Department of Mineral Resources (DMR) told NGI Monday.
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Ohio’s Utica Expands to 567 Permits Approved, 268 Wells Drilled
Carroll County and operators for Chesapeake Energy Corp. continue to hold the lion’s share of permits issued and producing wells in the Utica Shale, according to Ohio Department of Natural Resources (ODNR) figures.
Industry Briefs
Not enough excess natural gas is available in Alaska’s Cook Inlet to support liquefied natural gas (LNG) exports to continue from the Kenai LNG Plant on the Kenai Peninsula, according to operator ConocoPhillips. The producer said it would allow the plant’s export license to expire on March 31. “For the future, ConocoPhillips will consider pursuing a new export authorization only if local gas needs are met, and there is sufficient gas for export,” the company stated. “ConocoPhillips still has the flexibility to resume operations and apply for a new export authorization if sufficient gas becomes available.” The plant was to be mothballed after selling LNG to Japan for more than 40 years, but operations were extended to meet the country’s increased demand for gas following the meltdown of the Fukushima Daiichi nuclear plant (see Daily GPI, Aug. 21, 2012). Separately, developing a large-scale LNG export facility is now a key component of Alaska’s plans to commercialize North Slope gas reserves (see Daily GPI, Dec. 12, 2012).
Colorado Governor Threatens to Sue Cities That Ban Fracking
Colorado Gov. John Hickenlooper said Wednesday he will continue to take legal action against cities and counties that insist on passing bans on the use of hydraulic fracturing (fracking).
Industry Brief
A round of public forums on California’s discussion draft regulations on hydraulic fracturing have begun in Los Angeles and will continue with a second workshop scheduled to be held March 13 in Bakersfield, CA, by the Division of Oil, Gas and Geothermal Resources. Jason Marshall, chief deputy director of the state’s Department of Conservation, said “interesting and helpful comments” were obtained at the Los Angeles session Feb. 19. Marshall said the goal is have new regulations in place in the next 12-18 months. In the upcoming workshop, the discussion draft rules will be broken into seven parts, with four parts discussed in morning sessions and three in the afternoon. The final session will allow for public comments and questions. A third workshop will be held in Sacramento later this year.
Chesapeake, Encana Accused of Collusion in Michigan Lease Auction
A Michigan landowner has filed a lawsuit alleging that Chesapeake Energy Corp., Encana Corp. and a state-based operator conspired to rig a state oil and gas leasehold auction in 2010.
MarkWest Utica Expanding Ohio Services for Rex Energy
MarkWest Utica EMG LLC has clinched an agreement with Rex Energy Corp. to expand its Utica Shale midstream infrastructure.
Wellhead Freeze-Offs Are Supply Disruption Risk — EIA
As U.S. operators move onshore from the offshore, wellhead freeze-offs are becoming a bigger risk to natural gas supplies, the Energy Information Administration (EIA) said Tuesday in the Short-Term Energy Outlook (STEO).
EIA: Shales Boosted 2011 NatGas Production
Domestic natural gas production surged in 2011 to 28.48 Tcf, a 1.66 Tcf (6.2%) increase compared to 26.82 Tcf in 2010, and it was production from the nation’s shale plays that gave the total its biggest boost, according to the U.S. Energy Information Administration (EIA).
Shell CEO: No Quick Fix for Low NatGas Prices
Production from North American shale plays will continue to keep natural gas prices from increasing significantly any time soon, Royal Dutch Shell plc CEO Peter Voser told financial analysts in London Thursday.