Governor

Despite indications last month to the contrary (see Daily GPI, Nov. 11), the Obama administration’s goal is to save the threatened sage grouse without listing it as an endangered species, Interior Secretary Sally Jewell told a winter meeting of the Western Governors’ Association (WGA) in Las Vegas Saturday.

Tens of thousands of acres in Utah if leased for oil and gas exploration could generate hundreds of millions of dollars for the state’s schoolchildren. But Gov. Gary Herbert said a decision to lease land to Anadarko Petroleum Corp. should be reconsidered as the acreage could have even more value if managed differently.

NGI’s Shale Daily reported that lawmakers in Pennsylvania had passed a bill that the state chapter of the National Association of Royalty Owners (NARO) opposes because it would allow forced pooling, and that it was unclear if Gov. Tom Corbett, a foe of forced pooling, would sign it (see Shale Daily, July 5). Patrick Henderson, Corbett’s energy adviser, told NGI’s Shale Daily the administration still opposes forced pooling, but doesn’t believe SB 259 would allow the practice. “Nothing in SB 259 requires someone to lease their land; changes the terms of a lease; or reduces the royalties paid to landowners,” Henderson said. “SB 259 is not forced pooling and has no relation to forced pooling.” The governor, he said, has until Wednesday (July 10) to decide whether to sign the bill.

A national organization that supports oil and gas leaseholders is furious that Pennsylvania legislators passed a bill that its members claim would allow forced pooling in the state. They are urging people to contact Gov. Tom Corbett to get a veto.

Legislation to extend tax credits that support the conversion of conventional vehicles to run on cleaner fuels, such as natural gas, is awaiting the signature of Oklahoma’s governor after passage by the state House. The incentive, which covers about half the cost of converting a typical vehicle and three-quarters of the cost of establishing an alternative fueling station, will be extended until 2020. The incentives are expected to cost the state — a major natural gas producer — $1.5-2 million per year.

Operators of horizontal oil and natural gas wells in Ohio face a bevy of regulatory changes — including quarterly production reports, a $25,000 per well impact fee, and new testing and disposal requirements for drilling waste — under Gov. John Kasich’s biennial budget proposal.

Elected officials in Ft. Collins, CO, the university town about 57 miles north of Denver, have passed a ban on oil and natural gas drilling and hydraulic fracturing (fracking) within the city limits. The measure still must pass on a second reading in early March.

Two weeks after Michigan’s governor touted natural gas as a fuel for economic revival, hometown utility Consumers Energy said it is building a 700 MW gas-fired power plant in Genesee County, whose county seat is Flint, birthplace of General Motors. On the natural gas distribution side of its business, the company is laying pipe to serve new customers who’ve gotten word of cheap gas.

Two weeks after Michigan’s governor touted natural gas as a fuel for economic revival, hometown utility Consumers Energy said it is building a 700 MW gas-fired power plant in Genesee County, whose county seat is Flint, birthplace of General Motors. On the natural gas distribution side of its business, the company is laying pipe to serve new customers who’ve gotten word of cheap gas.