Governor Whitmer Signs Executive Order Creating UP Energy Task Force

On Friday, June 7, 2019, Governor Whitmer signed Executive Order 2019-14 creating the UP Energy Task Force. This action comes as the Governor and Enbridge failed to reach an agreeable timeline for the replacement and decommission of the existing Line 5 pipeline. According to the press release, the new task force will assess the UP’s overall energy needs and how they are currently being met; identify and evaluate potential changes in energy supply and distribution; and formulate alternative solutions to meet the UP’s energy needs – including alternatives to the current distribution of propane through Line 5, which poses an unacceptable threat to The Great Lakes. The press release goes on to say “25 percent of UP residents use propane for home heating, and much of that propane is delivered through the Line 5 pipeline. The future of Line 5, however, is uncertain” and adds that “The unacceptable threat posed by the continued operation of the pipelines through the Straits, as well as the lack of an established backup propane distribution system were Line 5 to malfunction, make developing alternative solutions a priority”.

This advisory body to the Governor, within the Department of the Environment, Great Lakes and Energy (EGLE) will be comprised of at least 13 members appointed by the Governor, all of whom must be Michigan residents and possess relevant expertise. The group is tasked with submitting a propane plan in part to the Governor by March 31, 2020 that will focus on alternative means to supply propane in the event of a Line 5 shutdown and submitting a final report by March 31, 2021.

In 2017, an independent study conducted by Dynamic Risk did in fact look at alternative to the Straits pipeline and determined that they were either not feasible, contained higher risk or would require much higher costs. In addition to these conclusions, the study confirmed that the existing pipeline was in excellent condition.

The Governor has yet to make appointments to the new task force.

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Finley: Shut Line 5, and then what?

The Detroit News featured a great Op Ed on Line 5 by Nolan Finley, the paper's editorial page editor on Monday, June 3rd. The article can be found below or on the Detroit News web page 

Nolan Finley, The Detroit News Published 11:00 p.m. ET June 3, 2019 

It sounds like a simple solution: Shut down Enbridge Line 5 and protect the precious Great Lakes from the risk of a devastating oil spill.

It's what everyone with a green conscience wants. And Attorney General Dana Nessel is threatening to do just that by the end of the month if Gov. Gretchen Whitmer can't reach a deal with Enbridge on moving the lines into a tunnel. But then what?

The dual pipelines under the Straits of Mackinac carry 23 million gallons of petroleum products each day between Michigan's two peninsulas. 

Included in that volume is 55 percent of the propane used to heat homes in the state, with much of it going to the Upper Peninsula. Much of the crude oil refined into gasoline also runs through Line 5, as does the petroleum derivatives used in agriculture and manufacturing across the state.

Environmentalists pretend an immediate shutdown of Line 5 will wean Michigan from fossil fuels and deliver with the stroke of a pen its conversion to renewable energy.

That's not going to happen. Petroleum products will be essential for maintaining our quality of life for many decades to come.

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Line 5 and Utility Corridor Update

The existing Line 5 pipeline and proposed utility corridor have been in the news a lot over the last couple of weeks, here’s what you need to know.

The Governor and Enbridge have met several times over the last few weeks in an attempt to find a path forward for Line 5. The negotiations are currently focused on the timeline of the existing pipeline’s closure. Last Thursday, Enbridge announced that barring any permitting delays, it could complete a tunnel to house Line 5 by 2024. This 5-year time frame for construction of the utility corridor is significantly shorter than the 7-10 years originally estimated, but even then, it may not be fast enough for the Governor and Attorney General.

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Michigan Public Service Commission approves changes in requirements for operating gas wells under vacuum

The Michigan Public Service Commission (MPSC) last week approved changes in requirements for operating wells in a vacuum. Under the new rules, operators of gas wells in the Antrim Shale development in northern Lower Michigan will be able to monitor and record vacuum pressures of natural gas wells monthly rather than weekly.

In April of 2019, Riverside Energy Michigan LLC filed a motion to amend the October 2015 order in MPSC Case No. U-16230. Among the revisions approved, companies must notify the Commission of the planned installation of equipment to apply a vacuum, rather than the installation for any purpose; report an economic analysis of fuel consumption versus the estimated incremental production in the first 12 months of operations, rather than annually; and submit one report for multiple facilities, rather than individual reports for each field or project. The requirements are amended effective May 23, 2019.

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SPE Distinguished Lecturer Series

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The Northern Michigan Section of the Society of Petroleum Engineers will be holding its next evening dinner meeting on Thursday, June 13, 2019 at the Cambria Suites in Traverse City.

The speaker for the evening will be SPE Distinguished Lecturer Roberto Aguilera of the Curtin University with his presentation entitled “The Exceptional Price Performance of Oil – Explanations and Prospects”.  Mr. Aguilera will discuss the oil price development over the recent decades as well as the role that oil and gas will continue to play in satisfying world energy demand, with innovation, in spite of low commodity prices.

 The evening will start with a social hour beginning at 6 pm, with dinner to follow at 6:45pm.  An abstract and biography for the presentation is attached, as well as the planned menu for the event.

Cost for the meeting is $40 per person.  Checks should be made payable to Northern Michigan SPE

Please RSVP by emailing your reservation to Bill Quinlan at:billq@jordanex.com

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Michigan Association of Professional Landmen Annual Presidents Meeting

The Michigan Association of Professional Landmen (MAPL) will host its Annual President’s Meeting with Dinner and Cocktails at the Doherty Hotel in Clare, MI on Wednesday June 19th, 2019.  The organization will honor its past presidents and announce the new membership chair. The event will run 6:00-9:00pm and those interested in attending can RSVP online at michiganlandman.com/calendar/. The Doherty Hotel is located at 604 North McEwan, Clare, Michigan, 48617.

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Trendwell Energy River Run Thursday June 20th

Trendwell Energy will host the Annual River Run for a final time on June 20th before passing off the reigns for next year’s event

Trendwell has hosted the Trendwell Energy River Run in conjunction with the MOGA Picnic & Golf for the last several years, carrying on tradition established by T-Rex Resources (Dan McGuire and Bob Butka) in 1992. T-Rex hosted until 2012 and Trendwell took over the tradition in 2013. If your company is interested in hosting the River Run next year and keeping this amazing tradition alive, please reach out to Julie by phone at (616) 866-5024 or by email at Julie.DeJohn@trendwellenergy.com for details.

The River Run is open to all members of MOGA and their support staffs. There is no fee for the event. If you’d like to participate, contact Julie at Julie.DeJohn@trendwellenergy.com to sign up and receive details. Spots are limited, so those interested are encouraged to RSVP a soon as possible. The deadline to sign up will be Friday, May 31st.

Seating is limited, so RSVP as soon as possible.  Please include your t-shirt size. (Adult: XS, S, M, L, XL, XXL) when registering for this great event!

Event Details:

What: Trendwell Energy River Run

When: Thursday, June 20, 2019

Where: Buckley’s Mountainside Canoes, 4700 W. Remus Road, Mt. Pleasant, Michigan.

Time: 8:30 a.m. arrival at Buckley’s for a 9:00 a.m. departure down the river.

(We will return to Buckley’s at approximately 12:30/1:00 p.m.) 

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NMC-API Golf Scramble Friday, June 7th

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AAPL to Host Seminar in Mount Pleasant on August 27th

SAVE THE DATE!

The AAPL will be hosting a ‘Working Interest and Net Revenue Interest Seminar’ in Mt. Pleasant, Michigan, on Tuesday, August 27, 2019!  The one-day event will run from 8:00 A.M. to 3:30 P.M. and the cost is $300 for AAPL members and $425 for non-members.  AAPL members that attendee will receive 6 continuing education credits.

Please note that Professional Development Aid (f/k/a Tuition Assistance) is available for AAPL members.  To apply, please go to the AAPL website (www.landman.org) and click on the ‘Education’ tab and scroll down to the ‘Professional Development Aid’ link – there you will find information about the program and a request form. 

COURSE OVERVIEW:

This workshop was designed for Land Professionals who are already proficient with the fundamental calculations for Working Interest and Net Revenue Interests. The foundational prerequisite for this seminar is the Working Interest and Net Revenue Calculation Workshop.

COURSE CONTENT:

- Calculations inside Runsheets and Flowcharts

- Calculations at the Lease Level vs Tract Level vs Unit Level

- Calculations for Leases, Assignments, proportionate burdens, dis-proportionate burdens, burden linking

- Calculations for “the difference between Lease Burdens and ___%.

- Term Mineral deeds and Term Assignments of WI

- Calculations for Non-Executive Mineral Owners – “NEMOs”

- Calculations for “Non-Participating Royalty Interests – “NPRIs”

- Calculations for Net Acres vs. Company Net Acres vs. Revenue Acres vs Working Interest [WI]

- Analysis of the Acid Test

- Calculations - Excess Burdens & Subsequently Created Interest - Sensitivity Analysis - Participation

- Calculations - Excess Burdens & Subsequently Created Interest - Sensitivity Analysis – Non-Consent

SEMINAR SCHEDULE:

8:00 am                Registration & Continental Breakfast

8:15 am               Instruction & Examples

11:30 am             Lunch (provided)

12:00 pm             Instruction & Examples (continued)

3:30 pm               Adjourn Please use the following link to register for the event:

 

Please use the following link to register:

https://personify.landman.org/PersonifyEbusiness/Events/AAPLEventsCalendar/MeetingDetails.aspx?productId=4518303

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Join MOGA at Mari Vineyards on May 16th

May 16, 2019

MOGA Reception with Dinner & Wine Pairings at Mari Vineyards (6:00-9:00 pm)

This social gathering brings folks from across the oil patch to gather for an evening of wine, food, and camaraderie while taking in the beauty of Northern Michigan’s Wine Country. Last year, over 200 MOGA Members, spouses and guests had the opportunity to tour the winery as it was closed to the public for the unique event. Sampling cards will again be available to help attendees keep track of the unique Michigan wines and remember their favorites. All four levels of the winery will host pairings of Michigan wine and appetizers so be sure to explore all Mari Vineyards has to offer!

Register Online

Mari Vineyards
8175 Center Rd.
Traverse City, MI 49686
231.938.6166

** Free shuttle will run between Hotel Indigo and Mari Vineyards from 4:30-5:30p.m. and 8:30-9:30 p.m.**

The cost to attend this meeting is $60.00 for MOGA Members and Spouses and $80.00 for guests.

Hotel Information:

Click here to make Hotel Reservations or call Hotel Indigo at 231.932.0500. Use Group Code: MOG Through May 8th. 

Rooms Available on a first come first serve basis after May 8th. 

Hotel Indigo, 263 W. Grandview Pkwy., Traverse City, MI 49684. 

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Michigan Petroleum Directory Now Available!