5-9-13
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WASHINGTON, D.C. Link – Yesterday, the House Natural Resources Committee held an oversight hearing entitled “DOI Fracturing Rule: A Recipe for Government Waste, Duplication, and Delay.” This hearing focused on the potential impact that the Obama Administration’s proposed hydraulic fracturing regulations on federal lands would have on job creation, economic growth, and energy development in America.
For over 60 years, states have successfully and effectively regulated the process of hydraulic fracturing. This process is essential to developing shale oil and natural gas. With state regulation of hydraulic fracturing, President Obama’s former EPA Chief Lisa Jackson admitted that there has not been one instance of groundwater contamination from this process.
For over two years, the House Natural Resources Committee has conducted aggressive oversight of this issue and will continue its oversight of the federal government’s overreach in issuing duplicative regulations on hydraulic fracturing on federal lands. This is especially important now because Interior Secretary Jewell has stated that the Interior Department would be releasing its new proposed rule of hydraulic fracturing “within weeks.”
“States are able to carefully craft regulations to meet the unique geologic and hydrologic needs of their states. The regulatory needs in North Dakota, versus Ohio and New Mexico, are vastly different. Imposing a ‘one size fits all’ regulatory structure, as the Obama Administration is attempting to do, will not work. At a time when the Department is canceling lease sales, federal dollars and resources should not be spent duplicating state regulations, especially when states already have guidelines in place that are effective and successful,” said Natural Resources Committee Chairman Doc Hastings (WA-04).
Witnesses testifying before the Committee spoke from their firsthand experience with state regulation of hydraulic fracturing, how states are already effectively and safely regulating this process, and how federal regulations would be duplicative and burdensome:
“States have successfully regulated more than 1.2 million hydraulic fracturing (HF) operations spanning sixty years; new federal mandates are not necessary given their exemplary safety record. State rules specifically tailored to each state’s unique geologic and hydrologic conditions better protect the environment and groundwater than a one-size-fits-all federal rule.” - Alan Olson, Montana State Senator
“The proposed BLM hydraulic fracturing rule would add a requirement for pre-approval of fracturing processes and chemicals. North Dakota has worked hard to create a stable tax and regulatory environment that promotes venture capital investment. Our oil and gas rules are reviewed at least every two years through a public comment process where every comment must be considered in writing. This ensures that North Dakota regulations keep up with new technologies and economic conditions.” - Lynn D. Helms, Director, North Dakota Industrial Commission, Department of Mineral Resources
“The Wyoming County Commissioners Association (WCCA) has asked the BLM to defer regulation of hydraulic fracturing to states that have adequate hydraulic fracturing regulations in place, which certainly is Wyoming. Proactive state regulations have the highest likelihood for successful protection of water resources because they are best able to respond to localized impacts and issues, as opposed to a redundant federal hydraulic fracturing rule.” - Cindy DeLancey, Executive Director, Wyoming County Commissioners Association
“Presently, the Department of the Interior (DOI) is planning to add regulations for hydraulic fracturing (HF) on federal lands which are redundant to state regulations, and will add even more length and bureaucracy onto a process which already takes significantly more time than on private and state lands. The added red tape will divert investment away from energy development, job creation, and economic growth into redundant federal regulation, further disadvantaging western public lands states like New Mexico. While states efficiently process permits in an average of thirty days, the Federal Government takes 228 days. The proposed HF rule could add another 100 days onto permitting times.” - John A. Byrom, President and CEO, DJ Simmons, Inc.
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From our friends at Resource Development Council for Alaska:
Doors open at 11:15 a.m., program begins at 12:00 p.m.
Consumer Energy Alliance
Houston, Texas
BP Exploration (Alaska) Inc.
From the Alaska Department of Natural Resources:
The Cook Inlet lease sale was the third largest of its kind in nominal dollars and the sixth largest in acreage leased since the state’s areawide lease sale program began in 1999.- 32 bids were received from seven bidding groups on 28 tracts, encompassing approximately 145,739 acres.
- Bidders included Hilcorp Alaska, Cook Inlet Energy, and NordAq Energy. Hilcorp was the most active bidder, winning 19 of the 28 tracts in the lease sale.
- A single bid was received for one of the 26 tracts offered. The bidder was Nicholas van Wyck.
- This was the state’s first geothermal lease sale on Augustine Island. The division’s last geothermal lease sale was in 2008 on Mount Spurr.
- Similar to the past five years, tracts in this lease sale did not receive any bids.
Today's Consumer Energy Alliance Links:
Associated Press: Scary day for natural gas before inventories report - Today’s U.S. natural gas storage report is the most important of the year as it may support last week’s data that sent prices down by the most in nine months, according to Schork Group Inc. “This is going to be a scary day,” Stephen Schork, president of Schork Group, an energy advisory company based in Villanova, Pennsylvania, said in an e-mailed report. “For a second week in row, the template looks to favor another solid injection report.”
5-8-13
Today in Washington, House Natural
Resources Chairman Doc Hastings (NGP Photo) called the “DOI Hydraulic Fracturing Rule: A Recipe for Government Waste, Duplication and Delay.” See full text here.
APRN, by Alexandra Gutierrez. If this legislative session was all about oil, the next one could be more focused on natural gas. The end goal is a pipeline capable of moving the massive supply of gas on North Slope to market. APRN’s Alexandra Gutierrez reports that the state is looking at the issue of getting a project online from multiple angles.
For Our Early Morning Readers! Today the Division of Oil and Gas will hold its
annual areawide oil and gas lease sales for the Alaska Peninsula and Cook Inlet as well as a geothermal lease sale for Augustine Island. Division Director Bill Barron (NGP Photo) will be available directly after the lease sales for interviews.
| Also, yesterday in Washington: House Subcommittee Examines Federal Impediments to Job Creation, Economic Growth, & Recreation on Public Lands |
5-7-13 Offshore Technology Conference Features Coastal Governors Supporting Energy Development
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Senator Lisa Murkowski (NGP Photo)
today criticized the Interior Department’s budget proposal for attempting to make Alaska pay for the decades-old broken promises of the federal government.Alberta Oil: Could the N.W.T.’s Canol shale be the next Bakken?
CBC News: Enbridge Gas New Brunswick has won its legal challenge of provincial regulations that stipulate how the Energy and Utilities Board sets distribution rates.
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Yesterday, at Houston's Offshore Technology Conference, Alaska was a big subject
of discussion (See our report yesterday). From the Houston Chronicle, comes the following commentary by Consumer Energy Alliance President, David Holt (NGP Photo) -dh. In Alaska, where a vast pool of oil and natural gas resources is not only surveyed but accessible, federal policy is also halting development. Several companies have temporarily suspended exploration offshore Alaska due to regulatory uncertainty. Meanwhile, Russia and Norway are moving to expand their Arctic drilling capabilities, shifting investment and expertise away from American interests and putting us behind the curve in developing our Arctic resources. Yesterday at OTC, a group of eight coastal governors ... called for an improved dialogue with the federal government to allow ...
| Other news media references to the OTC include: Wall Street Journal: “Coastal Governors Want More Offshore Drilling”
Offshore Energy Today: “OTC 2013: Governors Calls for Timely Approvals for Offshore Projects”
Richmond Times Dispatch: “Virginia Joins Bid for Offshore Drilling”
Houston Chronicle: “Rick Perry to Obama: Give coastal states more access & dollars”
YourHoustonNews: “Perry renews call for more offshore energy development, consistent federal regulation”
Birmingham News (AP): “Coastal governors call for more offshore drilling”
Northern Gas Pipelines: "Coastal Governors Gather Today In Support Domestic Energy Development"
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... expanded access to U.S. waters. They noted that 85 percent of the nation's OCS is currently off limits. They also urged federal policymakers to better manage regulatory standards for offshore development to provide increased certainty and more efficient timelines for operators. Finally, the governors endorsed legislative efforts to expand oil and gas revenue-sharing to all coastal states, underscoring the importance of such revenues to state coastal management and infrastructure development programs. Policymakers should take their cues from the can-do spirit of OTC and apply that same dynamism to fashioning reasonable offshore regulations. Building on our undeniable success and technological advancement in developing our onshore resources, we should be looking to the sea to help supply our nation with domestic oil and natural gas in a safe, reliable and responsible manner. With a renewed focus on the OCS and the flexibility to allow states to determine their own fate, Washington could help usher in the next energy boom. The future of American energy production is offshore, just as much as it's onshore, and it's time our federal policymakers enable this growth."
Governor Sean Parnell's office provided the following report: May 6, 2013, Houston, TX –
Alaska Governor Sean Parnell, Texas Governor Rick Perry, Mississippi Governor Phil Bryant, Alabama Governor Robert Bentley, South Carolina Governor Nikki Haley and North Carolina Governor Pat McCrory headlined a panel today.... (See Multi Media and Photos Here)
5-6-13
Calgary Herald. Less than five months after his appointment, Bryan Gould is no longer president of Athabasca Oil Corp., the company announced Monday.
Commentary: Today in Houston, the Offshore Technology Conference features the Outer Continental Shelf Governors' Coalition -- including Alaska Governor Sean Parnell (NGP Photo) -- discussing the need for better federal-state communication on OCS policymaking and the benefits of OCS development for coastal states and
energy consumers. We will provide an update on the conference tomorrow. We compliment Governor Parnell for his leadership in this effort to work with other coastal governors. Their effort will support Alaska's need to sustain throughput of the Trans Alaska Pipeline System (TAPS) as well as Alaska's economy which is 90% dependent on Alaska North Slope production. Governor Parnell's efforts also support the country's need for a stronger economy, energy self sufficiency, national security and massive job creation. -dh |
Fuel Fix. Governors from Alaska and states bordering the Gulf of Mexico are reaching out
to their counterparts along the West and East Coast today in a bid to get them more involved in decisions about energy production offshore. The push for a new Outer Continental Shelf Governors Coalition is led by four governors who know a little something about oil and gas production offshore: Rick Perry (NGP Photo-R) of Texas, Bobby Jindal of Louisiana, Haley Barbour of Mississippi and Sean Parnell of Alaska (Coalition Chairman). In an invitation to other coastal state governors, the foursome said they hoped the coalition would “foster an appropriate dialogue between the coastal states and the administration
” about offshore drilling. The group would give the governors a vehicle to lobby for expanded drilling offshore. (Note: our sources tell us that other panel members will include: Alabama Governor Robert Bently (NGP Photo-Upper L), Mississippi Governor Phil Bryant (NGP Photo-R), South Carolina Governor Nikki Haley, North Carolina Governor Pat McCrory, Virginia Governor Bob McDonnell's Chief of Staff Martin Kent and Louisana Governor Bobby Jindal's Executive Assistant for Coastal Activities, Garret Graves. -dh)
This week in Washington from Consumer Energy Alliance sources:
Tomorrow:
Environmental Protection Agency (EPA) (F.R. Page 20637) holds a meeting of the Hydraulic Fracturing Research Advisory Panel to provide an opportunity for independent expert members of the ad hoc panel to provide comment on EPA's study of the potential impacts of hydraulic fracturing on drinking water resources, May 7-8. The meeting begins at 9:30amET at the Westin Arlington Gateway Hotel (801 North Glebe Road) in Arlington, VA. Event available via webcast at http://www.epa.gov/sab.
The House Appropriations Committee Interior, Environment, and Related Agencies Subcommittee holds a hearing on the budget for the Bureau of Land Management at9:30am ET in B-308 Rayburn House Office Building.
The Natural Resources Committee holds a full committee hearing on H.R.527, the "Responsible Helium Administration and Stewardship Act” at 9:30am ET in 366 Dirken Senate Office Building.
The House Science Committee Energy Subcommittee and Environment Subcommittee hold a joint hearing on "Keystone XL Pipeline: Examination of Scientific and Environmental Issues” at10:00am ET in 2318 Rayburn House Office Building.
The American Enterprise Institute for Public Policy Research (AEI) holds a discussion on "America's Natural Gas: Should Exports be Restricted?” at 10:00am ET at AEI (1150 17th Street NW, 12th Floor) in Washington, DC. The event can be viewed online here.
The House Energy and Commerce Committee Energy and Power Subcommittee will hold ahearing on "U.S. Energy Abundance: Exports and the Changing Global Energy Landscape” at 10:00am ETin 2123 Rayburn House Office Building.
The Senate Appropriations Committee Interior, Environment, and Related Agencies Subcommittee will hold a hearing on "FY2014 Budget Request for the Department of the Interior” at10:30am ET in 124 Dirksen Senate Office Building.
Wednesday, May 8
The Environmental and Energy Study Institute holds a briefing on "Energy Efficient Infrastructure for More Resilient Local Economies: The Role of District Energy, CHP (combined heat and power), and Microgrids." The briefing begins at 9:30am ETin 562 Dirksen Senate Office Building. Please RSVP here.
The House Natural Resources Committee will hold a hearing on "DOI Hydraulic Fracturing Rule: A Recipe for Government Waste, Duplication and Delay” at 10:00am ET in 1324 Longworth House Office Building.
The Senate Energy and Natural Resources Committee will hold a full committee markup of S.306, the "Bureau of Reclamation Small Conduit Hydropower Development and Rural Jobs Act"; S.545, the "Hydropower Improvement Act of 2013"; S.761, the "Energy Savings and Industrial Competitiveness Act of 2013"; H.R.267, the "Hydropower Regulatory Efficiency Act of 2013"; and H.R.678, the "Bureau of Reclamation Small Conduit Hydropower Development and Rural Jobs Act." The mark-up begins at 11:30am ET in 366 Dirksen Senate Office Building.
The House Appropriations Committee Interior, Environment, and Related Agencies Subcommittee hold a hearing on the budget for the Environmental Protection Agency (EPA) at1:00pm ET in 2359 Rayburn House Office Building.
Senate Appropriations Committee Energy and Water Development Subcommittee will hold ahearing on "The FY2014 funding request and budget justification for the Army Corps of Engineers and Bureau of Reclamation” at2:30pm ET in 192 Dirksen Senate Office Building.
The Center for Strategic and International Studies' (CSIS) Abshire-Inamori Leadership Academy and Nuclear Energy Program hold a "College Champions Debate Nuclear Energy," panel discussion on the future of nuclear energy in the United States with student teams from Georgetown University and Northwestern University. The event begins at 5:45pm ET at CSIS (1800 K Street NW) in Washington, DC.
Thursday, May 9
Senate Environment and Public Works will hold a full committee hearing on the nomination of Gina McCarthy to be administrator of the Environmental Protection Agency. The hearing will begin at 9:15am ET in 406 Dirksen Senate Office Building.
The House Energy and Commerce Committee Energy and Power Subcommittee hold ahearing on "American Energy Security and Innovation: Grid Reliability Challenges in a Shifting Energy Resource Landscape” at 9:30am ET in 2123 Rayburn House Office Building.
Americans for a Clean Energy Grid (ACEG) and Synapse Energy Economics will hold a news conference to release a new report, "Doubling Wind in PJM Will Save Consumers Billions," that details how "changes in energy generation within the Mid-Atlantic region (PJM) that could save consumers billions and require little new infrastructure." The press conference begins at 1:30pm ET at the UN Foundation Office (1615 M Street NW, 7thFloor) in Washington, DC.
5-5-13: In Memoriam, Ken Stout
Point of personal privilege. Today we honor our
friend Ken Stout (NGP Photo-R), a great American veteran, a public servant, father and husband who acquitted himself well, and, like Paul of old, served Our Lord wherever he went, consistently. This good and faithful servant made a difference, was loved by many and will be missed by all who knew him. -dh
ADN by Tim Bradner (NGP Photo). Last week was energy week in Anchorage. There were two important conferences back to back. The first was the Alaska Energy Authority's annual Rural Energy Conference.
5-3-13
North of 60 Mining News: The minerals industry of Northwest Territories April 30 congratulated the Tłı̨chǫ Government for the release of their long-awaited Tłı̨chǫ Wene’ke, or Tłı̨chǫ Land Use Plan.
Note to Readers: We think the "Jobs" link above is among the most useful anywhere. Check it frequently for updates and feel free to suggest additions/corrections for the benefit of other NGP readers! -dh
Action Alert!
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| Our return from China occurred too late for us to update our stock photos of the Kentucky Derby for the fourth year in a row. However, we note with pleasure that there is a new kid on the block: Frac Daddy! |
Alaska's constitutional mandate to reasonably develop natural resources is again subject to debate. Our Friends at the Resource Development Council for Alaska have urged us to provide a comment to the Department of Natural Resources (DNR) by MONDAY'S May 6 deadline.
Here is a link to RDC's analysis and recommendation.
Here is a link to a comment delivered by Alaska State Senator Cathy Giessel (NGP
Photo) to the Department of Natural Resources wherein she cautions DNR, "Our state government is directed, by Article VIII, Section 1 of the Alaska Constitution, 'to encourage the settlement of its land and the development of its resources by making them available for maximum use consistent with the public interest.'
"Our lands are rich in resources," she writes, "which create wealth and economy, supporting healthy people and communities. Alaska is not a massive park. Alaska is a land which has supported multiple-use resource development for generations. Please stand firm and reject narrow proposals that seek to restrict access by our people to our lands and its resources." -dh
Today's Consumer Energy Alliance Energy Links:
| LNG 13 Conference Report Here |
Bloomberg: Keystone foes seek climate measures in case they lose - President Barack Obama is being pressed by opponents of the Keystone XL pipeline to tie any approval to measures that would curb climate change, reflecting mounting pressure on the administration to mitigate the project’s impact if it goes forward.
POLITICO Pro: Dip in gas prices prompts GOP to shift tactics - The threat of $4 a gallon gasoline is a fast-fading memory, forcing House Republicans to shift tactics as they continue to blame President Barack Obama’s policies for driving up Americans’ energy prices. Republicans' broad agenda is largely unchanged, anchored by the Keystone XL pipeline, expanded offshore drilling, a rollback of EPA regulations and other steps they say would offer relief for consumers. But unlike the past two years, the price on the pump isn’t cooperating this time around.
Houston Chronicle: Environmental groups sue EPA over refinery emissions - Environmentalists have filed a lawsuit to force federal regulators to review the way they calculate emissions from petrochemical plants, oil refineries and other large industrial facilities. In the suit filed on Thursday, Air Alliance Houston and three other groups accuse the U.S. Environmental Protection Agency of using outdated and inaccurate formulas to estimate levels of air pollution.
Associated Press: Oil drilling technology leaps, clean energy lags - Technology created an energy revolution over the past decade — just not the one we expected. By now, cars were supposed to be running on fuel made from plant waste or algae — or powered by hydrogen or cheap batteries that burned nothing at all. Electricity would be generated with solar panels and wind turbines. When the sun didn’t shine or the wind didn’t blow, power would flow out of batteries the size of tractor-trailers.
Bloomberg: Anti-fracking laws in New York towns upheld on appeal - Anti-fracking laws passed in two New York towns were upheld by an appeals court, which rejected arguments by a dairy farm and a Norwegian energy company that the bans are superseded by state law. An appellate panel of the New York State Supreme Court in Albany today ruled that drilling bans in the towns of Dryden and Middlefield don’t conflict with state regulations for the oil and natural-gas industry.
U.S. News & World Report: Fight Over Fracking Continues as Counties Begin to Ban Practice - While the nation's so-called "Shale Gale" might be benefiting some communities in the United States, one county in New Mexico has said "no thanks" to a stronger oil and gas industry presence in its region. Mora County, N.M. voted to ban all oil and gas extraction this week, after commissioners decided federal and state laws did not adequately protect communities from the impacts of hydraulic fracturing, a common practice used to extract oil and gas from shale rock.
Bloomberg: Natural gas tumbles most in nine months after stockpile increase - Natural gas futures dropped the most in nine months in New York after a government report showed that U.S. stockpiles expanded by more than forecast. Gas slid 7 percent, the biggest one-day decline since Aug. 2, after the Energy Information Administration said inventories rose 43 billion cubic feet in the week ended April 26 to 1.777 trillion cubic feet. Analyst estimates compiled by Bloomberg showed a gain of 29 billion. Unusually cold weather into early spring helped eliminate a supply glut that emerged in late 2011.

Technology Conference features the Outer Continental Shelf Governors' Coalition -- including Alaska Governor Sean Parnell (NGP Photo) -- discussing the need for better federal-state communication on OCS policymaking and the benefits of OCS development for coastal states and


