OH Gov Kasich Says Utica Shale Industry Making State “Poorer”

This Means WarThe only question that remains (for us) about Ohio Gov. John Kasich is this: When does he plan to change the (R) after his name to a (D)? He is, in almost all respects, a liberal Democrat at this point. What other conclusion can you draw after he made this statement last week when referring to oil and gas drillers and the incredibly high severance tax he’s proposing: “Every time you take valuable things out of the ground you make us poorer.” This is a typical Democrat class warfare argument he’s using to justify his high tax proposal (see OH Gov. Kasich Increases Proposed Severance Tax Rate by 236%). Kasich and his lackies keep harping on “out of state” (i.e. “foreign”) companies, as if they are robbing the state blind and absconding with Ohio’s money in the dead of night. The reverse is true. Those “foreign” companies are providing jobs and tax revenue like crazy to the state. But let’s not destroy Kasich’s tax fiction with a dose of non-fiction reality. Last week John “foreigner hunter” Kasich went on the offensive against the oil and gas industry in his state. Yes, he’s declared war…
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Cabot O&G Clipped $50K by SRBC for Lack of Water Permit

Timing is everything. If you start drilling a hole too early, it will cost you. In this case, $50,000. That’s the amount Cabot Oil & Gas has offered to pay the Susquehanna River Basin Commission (SRBC) for their eager-beaver error in drilling a hole on a new well pad in Susquehanna County, PA before they had the necessary approval from the SRBC. No, the SRBC doesn’t suddenly issue permits to drill–that’s the job of the DEP (Dept. of Environmental Protection). However, the SRBC does issue permits for the water that’s needed to drill, and it was that permit Cabot didn’t have in hand when they started to drill late last year. The SRBC says it’s not a big deal and that Cabot is normally “very compliant.” That is, it was a mistake and not intentional. There was no environmental harm as a result. However, for Cabot, it was a costly mistake…
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DTE Energy Analyst Call: Utica/Marcellus Big Part of Co’s Future

DTE Energy is a major utility and midstream company headquartered in Detroit, MI. DTE is part owner of the Millennium Pipeline across NY, sole owner of the Bluestone Gathering system in Susquehanna County, PA, and partner in the NEXUS Pipeline planned to cross OH. DTE is also the part owner of the Vector Pipeline, a pipeline that until recently has moved gas from Chicago (coming from Canada) to storage facilities in Michigan. A number of shippers have stopped using Vector for that purpose and it will now be used to flow Utica Shale gas, delivering it to both the NEXUS Pipeline and to Energy Transfer Partners’ ET Rover pipeline. According to DTE officials on an analyst call last Friday, the Utica and Marcellus Shale play a big role in the company’s future. Below we’ve extracted the juicy bits from the analyst call touching on the Utica/Marcellus, NEXUS and Vector pipelines, and how company officials say it all ties together…
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Ohio Utica Shale Just Keeps Chugging Along – Issues Permit No. 1799

The Ohio Utica Shale is a quiet engine that just keeps chugging along. Yes, companies are cutting their capital expenditure budgets–some by a lot–but you wouldn’t know that based on the number of permits being issued for Utica Shale wells. As of Feb 7, Ohio has issued 1,799 permits for Utica Shale wells. Of those, 1,348 wells have been drilled and 740 wells are online and producing. Below is the latest updated ODNR map showing where the permits/drilled/producing wells are located…
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Conway MA Offers Lame Excuses to Oppose Tenn Gas Pipeline

If it wasn’t so tragic, it would be funny. Otherwise “intelligent” people in the Massachusetts town of Conway have concocted an ominous “report” on the proposed Kinder Morgan expansion of the existing Tennessee Gas Pipeline through their area. Since there are no real negatives to building the pipeline (it IS a pipeline, it gets buried in the ground never to be seen or heard from again)–they have to invent negatives to oppose it. Here’s how the lie goes: shale gas has a lot of radon in it (it doesn’t), and the gas traveling through the pipeline will be shale gas with radon, and EVERYONE knows those pipelines leak like sieves (it’s a wonder any gas actually makes it to market through those pipelines), and that leaking, nasty, fracked shale gas with radon will leak out and cause cancer. Just one teeny, tiny problem with that particular lie. How do you mitigate radon? Anyone? That’s right: You vent it into the air where it dissipates immediately…
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OH Court: Developing Shallow Wells Enough to Hold Utica Layer

An important Ohio Appellate Court case was recently decided in Ohio relating to Utica Shale lease rights. The case is called Marshall v Beekay Company. Beekay Company had drilled shallow, non-shale wells on the property of Gary and Cora Marshall. At some point along the way, Beekay had separated the deeper mineral rights (shale) from the shallower mineral rights. The landowners said because Beekay didn’t develop the deeper mineral rights by drilling in the deeper layers, they had broken the original contract. The upshot was the landowners hoped to lease the lower layer to someone who would develop it. But the court found that development and continuous extraction of gas from the shallow layer effectively holds the rights to the deeper layer. That is, the court shot down the request by the landowners to force development of the shale layer…
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Using Technology to Stay Profitable in the Marcellus/Utica

Given the low, and for now staying low, price of oil and natural gas, what can Marcellus and Utica Shale drillers do to stay profitable? A professor of Petroleum Engineering & Geology at Marietta College takes a look at some of the recent innovations in technology that hold promise for northeast shale drillers, including liquefied carbon dioxide and gelled propane…
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Just 4 Countries Around the World Produce Shale Gas – Why?

Here’s an interesting factoid from our favorite government agency, the U.S. Energy Information Administration. Did you know that shale gas is currently produced in just four countries around the globe? One of them is the U.S., of course. Can you name the other three? Before reading the EIA article (which we’ve included below) we didn’t know there are only four countries currently producing shale gas. The other three countries are…Canada, China and Argentina…
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Shale Gas News Radio – Feb 14, 2015 [Audio]

Every Saturday the one-hour Shale Gas News show airs on Scranton, PA’s 94.3 FM “The Talker” radio station. The show is co-hosted by Kevin Lynn of Linde Corporation and Bill desRosiers from Cabot Oil & Gas. MDN brings you the latest program show notes and recordings for Shale Gas News each week (well worth your time to listen). Here’s the latest program, recorded on Saturday, Feb 14…
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