At the Well Weekly (v.5.10.2019)

Oil + Gas Update - Group Lacks Standing to Challenge FERC's Limited Approach to Evaluating Effects of Pipeline Projects on Climate.

Oil prices rebounded since our last report while natural gas prices remained relatively flat. The national rig count continued its decline, dropping another two units since last week, while the rig counts for the Marcellus and Utica remain relatively flat. In pipeline news, the D.C. Circuit avoided thorny questions about the extent of FERC's authority to review the effects that pipeline infrastructure projects have on GHG emissions. In Appalachia court news, the Commonwealth Court upheld a prison sentence imposed on a protestor who engaged in disruptive activity on Sunoco's pipeline easement after already being held in contempt. In other news, a federal court in New Mexico addressed the obligation to pay royalties on fuel gas while the Tenth Circuit partially reversed BLM's decision to grant permits for wells targeting the Mancos Shale in the San Juan Basin for failing to consider the cumulative effect of the wells on water resources.

Here's your week in review...

Rig Counts, Spot Prices + Oil Prices

  • Rigs: National (-988); Marcellus (+63); Utica/Point Pleasant (-17)

  • Brent Crude: +$71.76/bbl

  • West Texas Intermediate: +$62.52/bbl

  • NYMEX: June 2019 Contract @ -­$2.610/MMBtu.

  • Spot Prices: Henry Hub (-$2.59/MMBtu); Dominion South (+$2.21/MMBtu); Tenn. Zone 4 (+$2.14/MMBtu)

("+" or "-" or blank denotes increase, decrease, or flat. )

WOPL - Appalachia

In our new section, WOPL ("waiting on pipelines"), we provide the latest news on the status of various pipeline projects in Appalachia:

  • Adelphia Project (Greater Philadelphia Region): Nothing new to report.

  • Atlantic Coast (W. Va. to Va. and NC): The CEO of Dominion Energy, sponsor of Atlantic Coast Pipeline, plans to take its case all the way to the U.S. Supreme Court, if necessary, to resume construction in Q3 2019. The Fourth Circuit heard argument on its December ruling that stayed authorizations of key permits issued by the US Fish & Wildlife Service to ACP.

  • Atlantic Sunrise (Northeastern PA to SE Pennsylvania): Nothing new to report.

  • Constitution (Northeastern PA to NY): Nothing new to report.

  • Empire Pipeline (NY to PA): Nothing new to report.

  • Leidy South - Benton Loop Expansion (PA): Nothing new to report.

  • Mariner East (Western PA to Eastern PA): Nothing new to report.

  • Mountaineer XPress (WV): Nothing new to report.

  • Mountain Valley Pipeline (Northern WV to Southern Va. and NC): Another protestor lands in hot water after he barricaded himself inside a section of the pipeline that MVP was nearly ready to place underground.

  • NEXUS (Ohio to Michigan): Nothing new to report.

  • NFG FM100 Project (NC PA to Transco): Nothing new to report.

  • Northeast Supply Enhancement Project (NY): Nothing new to report.

  • Northern Access (NW PA to Western NY): Nothing new to report.

  • PennEast (PA to Central Jersey): Bethlehem Township approved a right-of-way for PennEast giving the company the right to construct nearly 1,900 feet of pipeline to pass through the municipality.

  • Regional Energy Access (NE PA to PA/NJ): Nothing new to report.

  • Rover (OH, WV, PA to Michigan): Nothing new to report.