Report: Utica Drillers Spend $300M (so far) on Fixing Ohio Roads

The Ohio Oil and Gas Association (OOGA) and Energy In Depth (EID) Ohio recently published a new report that shows Utica drillers have spent more than $300 million in eight Ohio counties from 2011 until earlier this year improving and fixing 630 miles of Ohio’s roadways. The study, titled “Ohio’s Oil & Gas Industry Road Improvement Payments” (full copy below) takes a close look at Road Usage Maintenance Agreements (RUMAs) in eight counties. You read that right. The O&G industry has spent over $300 million in eight counties over the past seven years. That’s $300 million in PRIVATE (not government-confiscated-via-taxes) money to fix up roads. Those living in eastern Ohio are lucky dogs…
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New Infrastructure Group Makes Gives Shale Industry Helping Hand

The TriState Infrastructure Council (TSIC) was founded in Pittsburgh in late 2016 to “serve a broad-based business community during the critical next few years by attracting and deploying investments in infrastructure projects in Ohio, Pennsylvania and West Virginia.” With infrastructure upgrades, the region will be able to realize economic growth resulting from petrochemical manufacturing and related industries in the Appalachian basin. One of the driving forces behind TSIC is a name you are likely familiar with: Kathryn Klaber. Katie Klaber founded and until a few years ago led the Marcellus Shale Coalition. She opted to focus on her consulting practice following the MSC and is now managing the TSIC. The TSIC organization was founded with a group of A-list companies located in the region. At this week’s Northeast U.S. Petrochemical Construction conference in Pittsburgh, Katie unveiled an exciting new project to map infrastructure in an 82-county region throughout the Ohio River Valley. The aim is to identify missing/key/critical infrastructure components and then work to set up public-private partnerships to get those components built. The TSIC is looking at “electric transmission and distribution, pipelines, natural gas and natural gas liquid storage capacity, reliable locks and dams, rail networks, roads and bridges, water and sewer, building sites, barge loading/unloading facilities, broadband, fiber optics, and air service, among others.” And yes, the Marcellus/Utica shale is the linchpin that holds it all together–makes it all possible–and the raison d’être for the TSIC. Here’s more on the new infrastructure database, the TSIC, and how they are giving the shale industry a big assist…
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Gulfport Spending $8M to Rebuild OH Roads Before They Use Them

road repairOne of the arguments sometimes trotted out by anti-drillers is that heavy trucks lumbering up and down rural roads will destroy them. And indeed, sometimes it does–when the road is old or not constructed to handle heavy truck traffic. Typically drillers will repair the roads to better-than-new condition–we’ve seen it in some PA counties. But here’s something you don’t often hear: Gulfport Energy is about to spend $8 million on road repairs to roads BEFORE they use them, not after. The repairs will be done over the next six weeks in Belmont County, OH, and it delights Belmont County Commission members. Somebody else footing the bill for rebuilt roads will put a smile on any county commissioner’s face…
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Chesapeake Refuses to Fix OH Road, Town Terminates RUMA

Chesapeake Energy has told Franklin Township (Columbiana County), OH to stuff their RUMA where the sun doesn’t shine, in so many words. A RUMA is a Road Use Maintenance Agreement under which a driller agrees to maintain certain roadways in a town or county that they’re using to access drill pads. When you run heavy trucks over roads constantly, it damages the roads. Chessy had such an agreement with Franklin Township and since they aren’t drilling right now (any more?) in the town, they refused to fix a road Franklin thought they should fix. So Franklin has terminated the RUMA. Next step–lower the weight limit for trucks on the roads and bar Chesapeake trucks from using them. We wonder if Chessy has ever heard the phrase “cutting off your nose to spite your face”…
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Another Supply Chain Success Story: Flagger Force

The ingenuity of small business people never ceases to amaze us–especially that of small businesses finding ways to serve, and profit from, the Marcellus and Utica Shale drilling industry. In business circles it’s called the “supply chain”–those companies who find ways of profiting from drilling. The latest company to do so is Flagger Force–a company based in Lancaster County, PA that sends out flaggers (to control traffic) in many surround states beside Pennsylvania. Flagger Force is also a major vendor for drillers in PA…
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Study Says Each PA Well Creates $5-$10K+ in Road Damages

A new study recently published in the peer reviewed Journal of Infrastructure Systems from a half dozen students and professors, some of them working for RAND Corporation, attempts to answer the question, How much road damage due to truck traffic happens in Pennsylvania–and how much does it cost? The study, titled “Estimating The Consumptive Use Costs of Shale Natural Gas Extraction on Pennsylvania Roadways” (full copy embedded below), was submitted for consideration a year ago–in March 2013. It was accepted by the Journal in November and finally published in their February 2014 issue.

The folks doing the research are smart–members of the American Society of Civil Engineers–we don’t dispute their credentials. What did they find? Using estimates of how many truck trips it takes to drill a well from data collected by the New York Dept. of Environmental Conservation (yes, NY data where there is no shale drilling), the authors estimate that for more frequently traveled state and local roads in PA the damage amounts to an average of $5,000 to $10,000 per well drilled. If you include less-traveled rural roads, that number jumps to $13,000 to $23,000 per well average…
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WV Roads in Need of Repair – Fracking to Blame?

There are a number of roadways in Marshall County and other WV counties with active Marcellus and Utica drilling in need of repair. There is no doubt frequent truck traffic related to the drilling industry is partially at fault. However, truck traffic coupled with a brutally cold winter, seems to have made it worse. Not that roads in many WV communities were pristine to begin with! Just ask any driller operating in WV–the roads in WV suck. There’s just no nice way of saying it. They were not good before drilling, so drilling is not totally to blame.

Still, drilling truck traffic has made it worse. So the industry should pay for repairs, right? Well…they already do. It’s called a 5% severance tax paid by drillers on everything they produce. The drillers are certainly paying it. If the state is not sharing that money with local counties for much-needed road repairs–that’s not the drillers’ fault…
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RUMA – Columbiana County, OH Enjoys Improved Roadways

Let’s RUMA! No, it’s not the latest dance craze. RUMA stands for Road-Use Maintenance Agreement which are contracts used by counties in Ohio to ensure roads damaged or potentially damaged by heavy equipment being moved for shale drilling and pipeline work is either prevented or repaired.

Thanks to 84 different RUMAs in Columbiana County, OH put in place since 2011, county residents are enjoying miles and miles of revamped roads–all paid for by the drilling industry and not taxpayers. Thank you Utica Shale!…
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GreenHunter’s Wheeling Frack Wastewater Facility Hits a Snag

GreenHunter Water, which is building a frack wastewater recycling (and potentially barging) facility in Wheeling, WV, has hit a snag. So far, it’s a pretty big snag. Last year the company received approval from the Wheeling Planning Commission to proceed with the plant, after initial resistance. So far, the WV Dept. of Environmental Protection (DEP) has not issued any permits because they won’t and don’t need to review the plant until it’s ready to start operating. Then they’ll visit and evaluate.

However, the WV Dept. of Transportation’s Division of Highways (DOH) has rejected GreenHunter’s plan to have trucks with frack wastewater entering and exiting the plant. The DOH rejection happened last August and according to the DOH, they haven’t heard a thing from GreenHunter since…
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PA’s Roads Vastly Improved – Thanks to Marcellus Drilling

The new president of the Marcellus Shale Coalition, Dave Spigelmyer, has hit the ground running. He’s making the rounds (recently in Scranton, see Cabot’s Big CNG Celebration at Johnson College in Scranton, PA). Now, he’s hitting the editorial pages of major state newspapers, like the Harrisburg Patriot-News.

In an editorial published yesterday, Spigelmyer makes a strong case for the enormous positive impact shale drilling has had on the state’s infrastructure–roads in particular. He points out over the past several years Marcellus drillers have spent 3/4 of a billion dollars to improve PA’s roadways. That’s money that didn’t come out of taxpayers’ pockets. And in addition to now $400+ million raised from an impact fee/tax, another $1.8 billion has flowed in to local and state coffers from taxes on Marcellus-related activities. It’s hard to overstate the huge economic impact the drilling industry has had in PA…
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ATEX Pipeline Ponies Up $572K to Repair Damaged Roads in Muskingum

Under the “ask and ye shall receive” department… Muskingum County was not happy that heavy truck traffic from companies working for Enterprise Products Partners, building the new ATEX Express ethane pipeline through the county, had damaged some of the county’s roadways. So the county asked Enterprise to pony up over $700K to fix the damaged roads.

Enterprise did not pay the amount requested, but they did agree to pay over a half million smakaroos. Not a bad result for just asking…
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Carroll County, OH Transformed by Utica Shale Drilling

What’s it like when drilling comes to town? Who better to tell us than someone from “the epicenter” of drilling in eastern Ohio? Amy Rutledge is director of the Carroll County Chamber of Commerce. She  spoke this week at an energy summit in Columbus sponsored by America’s Natural Gas Alliance.

Startling fact #1: According to Rutledge, Carroll County has fewer than 30,000 people living it–but when drilling came to town, 200 property owners in Carroll became instant millionaires from the bonus checks they received. Startling fact #2: Drillers have (so far) paid over $40 million to rebuild Carroll County’s roadways–that’s 80 years worth of road work completed in two years for a county with an annual budget of just $500,000 allocated for roads…
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NiSource Wins Friends in Mahoning County with Road Repair Project

Pennant Midstream, an entity created by NiSource and Hilcorp Energy, is developing a $300 million natural gas gathering and processing network in northeastern Ohio that extends from Mercer and Lawrence counties in Pennsylvania, through Mahoning County, and into Columbiana County. The project, called Hickory Bend, will gather natural gas produced from Hilcorp wells exploring the Utica shale and transport the gas to a $150 million cryogenic processing plant under construction in Springfield Township. By all accounts the project is on track to be completed by the end of this year (see OH Hickory Bend Pipeline/Plant Makes Excellent Progress).

NiSource is making new friends with their latest initiative. As part of the Hickory Bend project, NiSource (i.e. Pennant Midstream) will spend $1.5 million to rebuild roads in Mahoning County, OH likely to be damaged from heavy trucks working on the project. According to county officials, the amount of roadways that will be rebuilt, and the way NiSource is doing it (not just repaving but rebuilding from base layers) goes “well above and beyond the minimum that was required”…
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Harrison County Ticked Off at Road Damage from Drilling Trucks

Trucks going to and from Utica Shale drilling sites in Harrison County, OH are damaging the roads, and County Commissioner Dale Norris says “the honeymoon is over” with respect to shale drilling in the county.

Norris says commissioners will consider adopting new regulations in the next few weeks to assess a permit fee for trucks using local roads, so they have money to fix the damage caused by the drilling industry…
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