Withdrawals

The Muskingum Watershed Conservancy District (MWCD) agreed Friday to lease more than 6,000 acres under one of the lakes it manages in eastern Ohio to Antero Resources, with a bonus payment of nearly $41 million.

A federal judge in Erie, PA, has refused to overturn a U.S. Forest Service (USFS) ban on surface and groundwater withdrawals in the Allegheny National Forest for oil and gas operations, asserting that laws protecting access to mineral rights are not applicable to water rights.

December natural gas rose Thursday as market bears had to endure the indignity of a government inventory report sharply lower than what was expected. In its 10:30 a.m. EST report the Energy Information Administration (EIA) said inventories rose by just 19 Bcf for the week ended Nov. 11, about 7 Bcf less than what traders were looking for. At the close December had risen 6.6 cents to $3.410 and January had gained 6.3 cents to $3.546. December crude oil plunged $3.77 to $98.82/bbl.

Northwest said the Jackson Prairie storage facility will become available again for customer withdrawals on Friday’s gas day. The pipeline said it also will perform a withdrawal test that day and encouraged customers to limit banking as on-system balancing will be limited.

The Delaware River Basin Commission (DRBC), which governs water quality and regulates water withdrawals over a portion of the Marcellus Shale, is being sued by a coalition of environmental groups for allowing natural gas drilling regulations to be proposed before an environmental impact study was completed.

The Delaware River Basin Commission (DRBC), which governs water quality and regulates water withdrawals over a portion of the Marcellus Shale, was sued last week by a coalition of environmental groups for allowing natural gas drilling regulations to be proposed before an environmental impact study was completed. A similar lawsuit, filed by New York officials in May, should be dismissed, federal officials contend.

The Obama administration fully supports a cumulative study of the effects of natural gas drilling in the Marcellus Shale, but it also supports the Delaware River Basin Commission’s (DRBC) decision to release proposed rules that would allow some natural gas development projects before that study is completed, according to a letter written by Brigadier Gen. Peter A. DeLuca.

After weeks of blown storage report estimates that called for larger withdrawals than were actually revealed (see Daily GPI, Jan. 7), most of the energy industry was on target on Thursday as the Energy Information Administration (EIA) reported that 153 Bcf was removed from underground storage for the week ending Jan. 1.

Florida Gas Transmission did not extend an Overage Alert Day beyond Monday.