Should utilities invest in natural gas-oil wells?
Last week, the Virginia State Corporation Commission dealt a blow to a $126 million deal that would have made an out-of-state natural gas utility the owner of 25 Marcellus Shale wells in Pennsylvania, the Pittsburgh Post-Gazette reported.
Washington Gas, a subsidiary of Washington, D.C.-based WGL Holdings, announced in May that it had signed a 20-year deal with Energy Corp. of America, a Colorado-based oil and gas driller, for a 96 percent stake in 22 Marcellus wells in Greene County and another three wells in Clearfield.
The gas produced from the wells would be delivered to Washington Gas’ customers in Virginia and the length of the deal would protect them from supply and price volatility, the company argued.
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