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EnerVest’s Grand Experiment: Fracking Clinton Sandstone in Ohio

the grand experimentLong before the words “Marcellus” and “Utica” entered the public discourse and consciousness of Ohioans, there was the Clinton Sandstone. For years conventional drillers have been sinking wells in the Clinton, which is found 4,500 feet below the surface (the Marcellus and Utica Shale layers are deeper). The Clinton lies under 25 counties in eastern Ohio. Over the years, some 35,000 conventional (vertical) wells have tapped the Clinton Sandstone in Ohio. EnerVest, one of the largest acreage holders in the Utica Shale (and in the Clinton Sandstone), has embarked on a great experiment. What if you turned a Clinton Sandstone well horizontal, like a Utica or Marcellus well? Would it work? Could you get more gas out of the sandstone by fracking it like shale? EnerVest has drilled seven horizontal wells so far, with a permit to drill another and a request to drill a ninth. Here’s the details, along with the differences between a Clinton horizontal well and a Utica horizontal well…
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Stark State Launches Utica Well Site Training Center in Canton, OH

Stark State College has just launched their new Well Site Training Center in downtown Canton, OH. The new program, which marks the opening of a brand new $2.3 million state of the art facility, is directly aimed at producing workers for the oil and gas industry–especially for the Utica Shale industry. Stark State is part of a four-college consortium that includes Westmoreland County Community College (in PA), the Pennsylvania College of Technology (in PA), and Navarro College (in TX) that are being funded by a grant from the U.S. Dept. of Labor to develop the nation’s first-ever curriculum for shale oil and gas–a high honor indeed! Here’s the details about the new center at Stark, which is just Phase I…
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Important Supply Chain Takeaways from Chamber Midstream Meeting

The Canton, OH Regional Chamber of Commerce recently hosted the Midstream Ohio 2014 event to help connect companies seeking to sell to the Utica drilling industry with those drilling and building pipelines. By all accounts it was a huge success for both sides. Here’s some great takeaways from the event, to help supply chain companies that want to sell, or sell more, to the Utica industry:
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Stark County Still Sitting Pretty in the Utica, Even Without Drilling

Stark County, OH has gone through dramatic changes in a short period of time. Just a few years ago Utica Shale drilling near Stark County was hot with Chesapeake Energy leading the charge in places like neighboring Carroll County. Stark (and its largest city, Canton) were the beneficiaries of all that drilling in the northern part of the Utica play. Today? The “sweet spot” of Utica drilling has moved south, and yesterday’s hot areas like Stark and Carroll are today’s cold areas. Or are they?

Although drilling in Stark never really took off and although drilling in nearby Carroll is starting to decrease, that doesn’t mean Stark is not benefiting, in a big way, from Utica drilling. David Kaminski, the Canton Regional Chamber of Commerce’s director of energy and public affairs, said Stark County is still sitting pretty with respect to the Utica…
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OH Utica Shale Gives Rise to Crop of New Hotels

It seems as if new hotels are springing up all over the Utica Shale in eastern Ohio. The latest announcement: A New York City asset management firm says they’ll spend $5.2 million to build an 83-room hotel in…Carrollton, OH. Where? Exactly. Carrollton isn’t even a city–it’s a village, population 3,200, and it’s in Carroll County–in the middle of nowhere. But Carrollton also happens to be in the middle of one of the hot spots of the Utica Shale. And this hotel isn’t the only new hotel going up in Carrollton! A second hotel is already under construction in Carrollton–for $13.3 million (100 rooms).

Here’s the low-down on the new Carrollton hotel, and several other recently announced hotel projects in eastern Ohio’s Utica Shale region:
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FWW Anti-Drillers Protest an Empty Building in Canton, OH

Dumb and DumberMDN has written many times about the odious and misnamed Food & Water Watch (FWW)–an anti-fossil fuel, anti-drilling group behind a lot of so-called “spontaneous” protests against fracking. We always knew the FWW faithful were misguided in their opposition. Unfortunately we have to be honest and add another adjective in the descriptor of FWW protesters: dumb.

Wednesday a group of some 300 people turned out at the Canton Civic Center in downtown Canton, OH for Utica Shale Summit 2014. A dozen FWW protesters thought they would make some mischief and grab a few headlines by turning up to protest. Except they turned up after the event was over and the building was empty. When told of their faux pas and that nobody was home, the FWW protesters stood around protested anyway–they protested an empty building. Talk about dumb and dumber…
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60 Chesapeake OH Employees Getting Fired Just in Time for Xmas

Chesapeake Energy employees are still reeling from the announcement earlier this month that the company is firing an additional 800 employees company wide (see The Great Chesapeake Massacre: Lawler Fires 800 People in One Day). MDN speculates that Chessy may be for sale (see Chesapeake Energy Up for Sale? Maybe).

At the time of the mass(acre) firings we noted there were no firm numbers issued by Chesapeake as to how many of those lost jobs would be in the Marcellus/Utica region. We now have a bit more clarity on that. Chesapeake has filed paperwork with the federal government saying they will soon fire 60 people from their Uniontown, OH office–just in time for Christmas (Dec. 9)…
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NEXUS Pipeline Route Through Stark County, OH

Last week MDN told you about the proposed Ohio route of the planned NEXUS Gas Transmission natural gas pipeline, a $1.5 billion project that will run from Ohio to Michigan and eventually to Canada–delivering Utica Shale gas to Midwestern markets (see OH Route of Proposed NEXUS Gas Pipeline Revealed). Ever so gradually more pieces of the puzzle are falling into place on where, exactly, the pipeline will run. In a Stark County, OH article, for example, we learn the strategy is to use existing power line rights of way and the new pipeline will likely cross through Washington, Nimishillen, Marlboro and Lake townships in Stark on its way from Kensington–where the new M3 Midstream gas processing plant is almost ready to go online.

Here’s the Stark County piece of the NEXUS pipeline route puzzle:
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Nexus NatGas Pipeline to Run Through Akron/Canton Area

Last September MDN told you about a newly announced major Utica Shale natural gas pipeline that would run from Ohio through Michigan and into Canada (see New Utica Shale Pipeline to Midwest Announced). The project, called the Nexus Gas Transmission system, is a joint venture between DTE Energy, Spectra Energy and Enbridge. Although details of its planned route have still not been disclosed, the Akron Beacon Journal is reporting the pipeline will run through several communities in the Akron-Canton area.

An update on the project from the Beacon Journal:
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Chesapeake Puts 94K "Oily" Utica Shale Acres Up for Auction

for sale As this issue goes to press, the Wall Street Journal and Fox Business is reporting that Chesapeake Energy has put 94,205 Utica Shale acres on the auction block. That’s nearly 10% of their remaining 1 million Utica Shale acres. This is not unprecedented. Last June Chesapeake put 337,000 acres on the auction block (see Chesapeake Selling 337K Utica Shale Acres, Counties IDed). Although the company has not yet made a public statement about this sale, MDN went fishing and found the listing from the real estate site where it’s listed. We’ve embedded it below (shows a map of the acreage).

Here’s what we notice about the listing, including which counties are involved…

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EnerVest Strategy: Sell Utica, Drill Vertical, Expand Midstream

In September of last year, EV Energy Partners/EnerVest put 539,000 Ohio Utica Shale acres on the auction block, thinking they would get around $6 billion for it (see EnerVest Puts 539,000 Utica Shale Acres on Auction Block). In November, the company said they should complete the sale of the Utica acreage by the end of 2012 (see EV Energy Selling 539K Utica Shale Acres by Dec 31). That turned out to be a tad optimistic. EnerVest still does not have a deal for their Utica acreage.

An update on the company’s strategy from EV Energy Partners Chairman John Walker and EnerVest President Mark Houser, from Friday’s analyst call:

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New Utica Frack Sand Terminal Opens Near Canton, OH

Frack sand company Unimin Corporation announced yesterday they have opened a new proppant (or frack sand) distribution terminal in Navarre (Stark County), Ohio—near Canton. Unimin will provide frack sand to Utica Shale drillers from the facility. This is the company’s seventh terminal in the Marcellus and Utica region (see the complete list below).

The company’s announcement:

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Stark County, OH Labor & Business on Same Page: Frack Here

When was the last time local governments, labor unions, businesses, chambers of commerce and construction contractors were all on the same page? Yeah, we can’t remember that time either. Except it’s here—now. And it’s happening in Stark County, Ohio were all of those groups have come together to kick off a new initiative they call Choose Stark—an outreach to encourage Utica Shale drilling and fracking in Stark County.

We say that’s pretty cool and a lesson for other regions to consider:

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Concerns about Radioactive Drill Cuttings in OH Landfill

A controversy is brewing in Stark County where a private landfill wants to build a 12-mile pipeline to carry landfill liquids (called leachate) to the Canton municipal sewage treatment plant for treatment and disposal into the Nimishillen Creek, which in turn runs into the Tuscarawas River. The “problem” is that the landfill accepts Utica Shale drill cuttings—leftover mud, rock and dirt from drilling operations.

One Stark County official, Councilwoman-at-large Mary Cirelli, is concerned the drill cuttings at the landfill will create leachate with high levels of radioactivity and if treated at the Canton sewage plant, it will contaminate the Tuscarawas River. Similar scenarios with concerns over radioactive drill cuttings has played out in Marcellus Shale locations as well (see this MDN story). Those locations, which now accept drill cuttings, have no reported instances of radioactive leachate.

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Flip Side: Some OH Utica Shale Wells Get Plugged/Abandoned

When it comes to drilling in the Ohio Utica Shale, a lot of attention has been focused on the ramp up in activity—the growing number of drilling rigs, huge land lease deals, and eye-popping initial production results for some of the wells drilled. But there is another side to the story.

Every now and again, a well does not produce. Could be the driller did not properly find the shale layer (extremely rare). Could be they did find it but for whatever reason the layer doesn’t produce in that area. More likely there were problems during the drilling that caused the work to be stopped—like a broken-off drill bit. In Ohio, there have been nine Utica Shale wells that have been plugged and abandoned (so far). Here’s where they are located and who did the drilling:

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