ODNR Issues Forced Pooling Order for Encino Well in Harrison County
On May 23, the Ohio Dept. of Natural Resources (ODNR) issued a pooling order to Encino Energy that combines a number of properties into a single unit for drilling wells. The total of the surface land pooled is 1,081.076 acres, located in Stock Township, Harrison County, Ohio. There are 121 (!) properties or pieces of property involved, largely due to the unit passing under what appears to be a housing development. This type of thing goes on frequently — the ODNR issuing a pooling order. What’s different and unusual about this one is that the ODRN appears to have denied a request by Encino to raise the penalty against those who refused to sign a lease but ended up being forced to participate anyway.
UPDATE to this story (see below).
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It’s kind of interesting to watch how the left operates. Especially the left’s favored mouthpieces that pretend to be objective news media when, in fact, it is the opposite — they are partisan hacks serving the extremist wing of the Democrat Party. We’re referring to the “news” outlet Capital & Main, a hard-left propaganda outfit based in California. Their latest attack is against CNX Resources’ Vice President of External Relations, Brian Aiello. A recent Capital & Main article refers to Aiello, who is in upper management at CNX, as a “lobbyist” four different times to drive home and make stick an inaccurate label. It’s kind of funny, actually, coming from partisan hacks. We’re going to refer to C&M as partisan hacks a few more times, just to drive home the point. 🙂
Dominion Energy plans to build four small “peaker” electric generating plants in Chesterfield County, VA, a Richmond suburb (see
Folks, we’re not trying to beat a dead horse here, but we have to point out how the Biden administration is actively (right now) attacking the natural gas industry. You need to know this so you can educate others on what’s happening and so that you know why it’s so important that we dislodge the Bidenistas from the D.C. swamp in November. We’ll summarize the main points right here. The Biden administration is currently attacking natgas in three ways: via the EPA, FERC, and pausing LNG export approvals.
Two weeks ago, the bottom pretty much fell out of the U.S. rig count, both nationally and for the Marcellus/Utica region. We hit new lows for both counts (see
Coterra Energy announced a large layoff of employees at its GDS (GasSearch Drilling Services) Marcellus operation yesterday. GDS was founded in 2006 as a subsidiary of Cabot Oil & Gas (now Coterra Energy). GDS is based in South Montrose, PA, and provides services including pad site development, impoundment construction, water hauling, trucking, light equipment rental, and roustabout services supporting Coterra’s natural gas drilling. GDS employs approximately 170 people in Susquehanna County at various locations. Yesterday, 55 GDS employees got a pink slip.
Anti-fossil fuelers and some residents with portions of the 303-mile Mountain Valley Pipeline (MVP) traversing their land are flooding the Federal Energy Regulatory Commission (FERC) with comments asking the agency to delay permission for MVP to be placed into service. The latest in-service date MVP outlined to FERC in a recent request for startup permission is “early June” (see
On Monday, the socialists of the European Union (EU) adopted into law a new regulation aimed at tracking and reducing methane emissions within the energy sector. The onerous new reg introduces new requirements for measuring, reporting, and verifying methane emissions. The reg mandates operators to measure emissions at the source and submit monitoring reports verified by independent bodies. What does this have to do with the Marcellus/Utica? If drillers want to export LNG to any country that’s part of the EU (many M-U drillers do export LNG to Europe), they will have to comply with these new regs. According to MiQ, an independent methane emissions measurement and certification authority, its certification is the only one that satisfies the EU’s new regulation.
The U.S. Energy Information Administration (EIA) forecasts that the natural gas consumed for electricity generation this summer in the United States will reach near (or match) the record high set last year. In the agency’s May 2024 Short-Term Energy Outlook (STEO), EIA forecasts natural gas consumed to generate electricity will average 44.7 billion cubic feet per day (Bcf/d) in the U.S. during the peak summer months of June through August, matching the record high set in the summer of 2023. Over the past few years, the balance of sources of electricity generation in the United States — especially in the summer — has shifted to more renewables and natural gas and less coal.
According to Bloomberg News, commodities traders are “bracing for a record-smashing summer that will shake up commodities.” Bloomberg falsely states that people around the world “are already living through the havoc brought on by global temperatures that are breaking records.” Bloomberg ominously warns, “It’s about to get a lot worse.” Nothing sells like bad news, even if the bad news is blatantly false. In a hilarious statement in the same article, Bloomberg attributes high inflation under Joementia to global warming. Talk about sleazy and sick. Based on assumptions that Mom Earth will toast this summer, Bloomberg predicts natgas prices will jump by 50% this summer, to $4/MMBtu, because of all the extra electricity required for air conditioning.
In a companion post today, we brought you Bloomberg’s prediction of $4 natgas this summer based on the false premise of wild, scorching heat from man-made global warming. Whatever. This post contains predictions by analysts with J.P. Morgan for the price of natural gas for the rest of this year and into 2025. J.P. Morgan’s predictions are grounded in reality, not wild speculation like Bloomberg’s. J.P. Morgan predicts the Henry Hub price to average $2.88 per million British thermal units (MMBtu) in 2024 and $4.75 per MMBtu in 2025. They break it down quarter by quarter…
Yet another out-of-state protester temporarily blocked workers’ access to one of the few Mountain Valley Pipeline (MVP) construction sites remaining in Montgomery County, VA, yesterday morning. She was swiftly removed and arrested. According to Virginia State Police, 25-year-old Elsa Schlensker of Cleveland, Ohio, was taken into custody “without incident” and transported to the Montgomery County Jail, where she was charged with obstructing the free passage of another.
Here’s a sad story that, as far as we can tell, is not directly connected to the Marcellus/Utica. However, it’s a cautionary tale related to the oil and gas industry in Appalachia. Mark Edward Holbrook and his son Marshall Holbrook, both from Kentucky, worked in a family-owned company called Puissant Industries. The company sources natural gas by “drilling wells” and “acquiring gas rights.” We assume, given the small nature of the company, that these are conventional (vertical-only) wells and rights. When the price of gas dropped in 2015/2016, the company and the Holbrooks hit hard times. So, the two compensated by manipulating meters on the gathering pipelines that flowed their gas, making it look as though they were selling more gas than they did. In a word, it was theft — getting paid for something they didn’t provide.
The Pennsylvania Dept. of Environmental Protection (DEP) has extended three temporary air permits for the Shell ethane cracker plant in Monaca, PA, which would have expired at the end of April. The extended permits will suffice until Shell files for and receives what is called a federal Title V Operating Permit for air emissions from the cracker plant. In March, we told you that the DEP had told Shell to file for a Title V permit no later than June 21 of this year or risk being shut down (see
Earlier this month, MDN brought you the great news that New Fortress Energy’s (NFE) proposed Wyalusing LNG export plant (in Bradford County, PA) and a docking facility in Gibbstown (in New Jersey, along the Delaware River) to load ships with PA-produced LNG, are not dead yet (see
For more than a decade, MDN has brought you stories about shale development on and under land controlled by the Muskingum Watershed Conservancy District (MWCD), an agency formed in 1933 to help control flooding and promote water conservation in the Muskingum River watershed area of Ohio, an area that covers 8,000 square miles (