Follow by Email

Tuesday, February 3, 2015

A Pipeline Runs Through It-Update

Friends,

It continually mystifies me when those who oppose big government intrusion and staunchly support personal property rights remain silent on issues of forced pooling and eminent domain when it concerns the oil and gas industry. It creates cognitive dissonance, and no matter which way I shake the Magic 8 Ball the answer is the same: "Reply hazy, try again."

This post is not intended to beat up on a political ideology.  Frankly, it seems as if people are "talking out of both sides of their mouths." From the Keystone XL, to the Atlantic Coast Pipeline (ACP), conservative leaders are supportive. What's up with that? Eminent domain will undoubtedly be employed as well as other strong-arm tactics-already Dominion Resources Inc., the developer of the ACP has threatened lawsuits to force private property owners to allow surveying. Dominion Goes to Court Over Atlantic Coast Pipeline Survey Access


The North Carolina Mining and Energy Commission (MEC), also fondly known as my extended family, has been convening a study group on midstream infrastructure. There seems to be keen disappointment from some study group members that gathering lines; pipelines that transport gas from production facilities to transmission pipelines, are not subject to eminent domain in North Carolina. It will be interesting to see if the legislature tries to slip a change past us.

Another controversial issue in North Carolina is  forced pooling. Forced pooling allows a gas company to appeal to a government body of some kind (in the case of North Carolina- the Mining and Energy Commission) to force you to sell your gas. Where is the outcry? There has been a deafening silence; from Governor Pat McCrory all the way to Jones Street- where the North Carolina General Assembly hangs out. The conservative think-tank John Locke Foundation hasn't said much about it, either. Its bewildering.

Something else perplexing; industry supporters wrap themselves in the flag- talking about "home grown energy" and at the same time are seemingly unconcerned that the oil and gas industry is in a frenzy to export because they can make more money.  If its so important to our national security, why not leave it where it is? The earth has stored it at no cost for a very,very long time.

What to make of all these apparent contradictions? Ummmmmmmmm:

Top Contributors, 2013-2014


ContributorAmount
Koch Industries  $6,446,635
Ken Davis Finance  $2,859,862
Chevron Corp  $2,075,543
Exxon Mobil  $1,979,913
Marathon Petroleum  $1,291,495
Western Refining  $1,291,139
Occidental Petroleum  $993,040
Devon Energy  $811,545
Chesapeake Energy  $744,990
Valero Energy  $675,500
Bonanza Oil  $666,500
Energy Transfer Equity  $649,859
Halliburton Co  $621,241
Marmik Oil  $539,850
Petco Petroleum  $531,500
Williams Companies  $520,050
Independent Petroleum Assn of America  $514,900
BP  $514,541
Nustar Energy  $480,069
ConocoPhillips  $473,053

Contributions to Democrats  Republicans  Outside Spending Groups 



  I will leave you with this quote:



PS. Friends, this was just reported on by the media: Dominion buys Carolina Gas Transmission for nearly $493M "The Richmond-based company says the acquisition includes nearly 1,500 miles of natural gas pipeline in South Carolina and southeastern Georgia that were owned and operated by Carolina Gas Transmission."

And isn't this mighty convenient: LNG export project moves forward (Savannah, Georgia)
"Plans continue for $1.5 billion-worth of development at Elba Island to allow the liquefied natural gas import facility to reverse its processes and export the fuel. Southern LNG and Elba Liquefaction Co. filed a formal application for the project with federal regulators earlier this week." 


Hmmmmmmm...stay tuned.