Sides

Despite the opposition of Gov. Tom Corbett, Pennsylvania lawmakers from both sides of the aisle continue to look for ways to generate revenue from the Marcellus Shale.

Residents of Dimock Township in Susquehanna County, PA, whose drinking water supplies were contaminated by natural gas, are to receive a share of $4.1 million that Cabot Oil & Gas Corp. agreed to pay under a settlement negotiated with the state’s Department of Environmental Protection (DEP).

Despite three days of meetings that brought together members of both chambers and both sides of the aisle in Pennsylvania’s General Assembly, along with representatives from the gas industry, agreement on a proposed natural gas severance tax bill remained elusive, and the state’s Senate ended its last scheduled work day before the Nov. 2 election without voting on the legislation.

Despite meetings that brought together members of both chambers and both sides of the aisle in Pennsylvania’s General Assembly and representatives from the gas industry at the Governor’s Mansion in Harrisburg Monday and Tuesday, agreement on a proposed natural gas severance tax bill remains elusive, according to Senate President Pro Tem Joe Scarnati (R-Jefferson).

Despite meetings that brought together members of both chambers and both sides of the aisle in Pennsylvania’s General Assembly and representatives from the gas industry at the Governor’s Mansion in Harrisburg Monday and Tuesday, agreement on a proposed natural gas severance tax bill remains elusive, according to Senate President Pro Tem Joe Scarnati (R-Jefferson).

A proposed coalbed methane (CBM) project in British Columbia’s Elk Valley is drawing opposition on both sides of the U.S./Canadian border. BP plc’s Canadian subsidiary in January announced it would spend C$1 billion to develop the Mist Mountain CBM Gas Project in the province’s Crowsnest Coalfield (see Daily GPI, Jan. 28). BP also entered into a commercial agreement with Elk Valley Coal to evaluate CBM opportunities on the Elk Valley acreage. However, the city council in Fernie, BC, wants to prevent the Elk Valley development. The council unanimously passed a resolution that provincial regulators rescind or not issue leases to BP to explore or develop the Elk Valley region because of the possible environmental contamination. The tourism industry in Fernie, which is about 50 miles north of Montana, could be jeopardized, the council stated. Because the Elk River sends water into Montana’s Lake Koocanusa, which is near Glacier National Park, some U.S. stakeholders also have voiced their opposition to BP’s plans. Sen. Max Baucus (D-MT) said in February that the potential CBM project in the Elk Valley was a “worry” for Montana because of possible contamination to the border-straddling Lake Koocanusa. Provincial officials said environmental reviews are their top priority, and concern in Fernie and Montana is premature. Also, not all of the area’s residents are opposed to the CBM proposal, noted BC’s Ministry of Energy, Mines and Petroleum Resources. The ministry said it would consider the Fernie opposition, but it also will consider other regional stakeholders that are in favor of the development.

They come from opposing sides of Arkansas’ political divide and have different ideas about where the proceeds should be spent, but Gov. Mike Beebe, a Democrat, and Sheffield Nelson, a former Republican candidate for governor, agree that the state’s severance tax on natural gas production needs to be raised.

They come from opposing sides of Arkansas’ political divide and have different ideas about where the proceeds should be spent, but Gov. Mike Beebe, a Democrat, and Sheffield Nelson, a former Republican candidate for governor, agree that the state’s severance tax on natural gas production needs to be raised.

While all sides say details like rates and schedules remain negotiable, it appears industry rapidly lost the battle to enlist the hearts and minds of Albertans for its war against an overhaul of provincial royalties. Within two weeks of a stunning report advocating $2 billion in annual royalty increases by a provincially appointed review panel, polls showed opinion swung overwhelmingly in favor of change — including in the Calgary capital of Canada’s natural gas industry.