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Latest OH Utica Permit Numbers, Rig Count Discrepancy

As of June 1, Ohio has issued 693 Utica Shale drilling permits. Of the permits now issued, 339 (about half) of the wells have been drilled. Of the half now drilled, Utica has 102 wells (almost one-third) now online and producing natural gas, gas liquids and oil. According to the Ohio Dept. of Natural Resources (ODNR), there are currently 37 drilling rigs operating in the Utica Shale. That number is different from the Baker Hughes weekly tracking number which reports for the last week of May there were 32 active rotary rigs in Ohio. Why the difference? We don’t know. (We’ve included the Baker Hughes monthly averages in a handy chart below for OH, PA and WV.)

During the week of May 26 – June 1, the ODNR issued 18 new permits, most of them to the usual suspects. Here’s where the permits were issued, and the companies that received them:
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Ohio Hits Milestone: 100 Utica Wells Now Online & Producing

As of May 25, Ohio has issued 686 Utica Shale drilling permits. Of the permits now issued, 335 (half) of the wells have been drilled. And of the half now drilled, Utica has 100 wells (15% of those permitted, 30% of those drilled) now online and producing natural gas, gas liquids and oil. Hitting the 100-mark is a true milestone.

During the week of May 19-25, the Ohio Dept. of Natural Resources (ODNR) issued 10 new permits. Here’s where the permits were issued, and the companies that received them:
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OH Port Authority Does Deal to Sell 30M Gal of Water for Fracking

Earlier this week, the Columbiana County (OH) Port Authority brokered a deal to sell a minimum 30 million gallons of water from the Buckeye Water District to R.E. Gas Development, a Rex Energy subsidiary, for use in drilling and fracking new shale wells in Carroll County. The three year deal will let R.E. buy the water at $6.60 per 1,000 gallons…
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Roustabout: Long Hours, Hard Manual Work, But Good Pay + Benefits

Roustabouts are the "do it all" manual laborers that work in drilling operations—typically on and around a drilling rig. They pick up the garbage, repair things, carry things…anything that needs doing of a manual natural. It’s hard, long, dirty work—typically 12-hour (or more) shifts for two weeks straight. However, if you’re young, in good health and in good shape, getting work as a roustabout can pay well—very well. Just ask Brian Rose who works as a roustabout on a rig in Lisbon, OH:

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OH Property Management Firm Plugs into the Shale Supply Chain

More lessons for small businesses that want to plug in to the booming Marcellus and Utica Shale supply chain, this time from a new transloading facility in Columbiana, OH, started by a property management company. What’s a transloading facility? It’s a place where (in this case) railroad cars full of sand are parked and unloaded with special equipment onto waiting trucks that then haul the sand to nearby drilling sites for use in hydraulic fracturing.

The Buckeye Transfer Realty transloading facility accepted their first sand shipment via rail on Jan. 4. In the past three weeks they’ve hired 22 new people, with plans to hire more. Here’s their story, along with some of the things they’ve learned:

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Hilcorp Subsidiary Leases Property for Utica Transfer Facility

The Columbiana County Port Authority operates an industrial park in Wellsville, Ohio. Tucked into a story about road improvements the Port Authority is making at the park we learn that two subsidiaries of Utica Shale driller Hilcorp have leased two different parcels in the park: Arrowhead Utica Pipelines and Harvest Pipeline Co. The Port Authority is spending over $900,000 on road upgrades, largely to expand a road to the future site of a new shale gas transfer facility that will be built by Arrowhead.

The details:

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Kensington, OH NGL Processing Plant Construction Progress

Midstream build-out will be the big story of 2013 in the Utica Shale. One of the big projects under way is a natural gas processing facility in Kensington, Ohio, being built by a partnership between M3 Midstream (better known as Momentum), Chesapeake Energy and Enervest. The entire project will take five years to build, with the first portion going online sometime this year.

The latest on the Kensington project, being built in Columbiana County:

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Columbiana County NGL Plant Creates Economic Boom

More evidence of just how much the shale drilling industry impacts local businesses (the “supply chain” effect) comes from the new $400 million natural gas liquids processing plant being built in Columbiana County, OH. We reported in December the plant was on track for an “aggressive” May 2013 start date (see Columbiana County NGL Plant On Track for May Opening). The company building the plant, M3 Midstream (also known as Momentum), has revised the start date slightly to June.

Momentum’s construction coordinator Baron John gives an update on progress in building the plant, and offers a few examples of how far and wide the project has already impacted the local economy:

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Columbiana Port Authority Close to Final Deal with Marathon

Back in July MDN told you about a deal the Columbiana County Port Authority hoped to do with Marathon Petroleum to sell Marathon 3.6 acres in along the riverfront in Wellsville, OH so they can build a transfer station (truck terminal) to accept natural gas liquids and oil from local shale drilling by truck and, load it onto barges which would then float downriver for refining (see Columbiana Port Authority Helps Shale Industry).

Two actions taken on Monday by the Port Authority significantly advanced the ball down the field toward making the deal a reality:

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OH Land Conservancies Try to Prevent Utica Drilling

In an article about the merger of a local land conservancy group with a larger, regional conservancy group in Ohio—the Western Reserve Land Conservancy (WRLC)—MDN spotted remarks that indicate land conservancies have an anti-drilling philosophy, which raises the issue of whether or not you should support them or sign an agreement with them if you’re a landowner.

Remarks from the president of Little Beaver Creek Land Foundation (LBCLF), the local land conservancy group that merged with the WRLC:

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11 New Utica Shale Drilling Permits in OH, as of Dec 12

The latest round of permits to drill new Utica Shale wells from the Ohio Dept. of Natural Resources (ODNR) includes 11 new permits, 8 of which went to Chesapeake Energy.

Here’s the latest Ohio Utica permit report (with grand totals by county) as of Dec. 12:

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OH Municipality to Sell Treated Sewage Water for Fracking

The Buckeye Water District, a municipal sewer and water authority in Wellsville (Columbiana County), OH, voted yesterday to sell treated sewage water for use in fracking Utica Shale wells. MDN would call that a win/win and smart.

Just how much are companies willing to pay for treated sewage water to use in fracking?

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