Most Evacuees Return Home After XTO Well Explosion in Ohio
As we reported yesterday, last Thursday XTO Energy was drilling a fourth Utica Shale well on the Schnegg well pad near Captina Creek (York Township, Belmont County, OH) when XTO “lost control” of the well and it exploded and caught fire (see XTO Energy Utica Well Explosion in Belmont County – 100 Evacuated). We have an update. Most of the evacuees have now returned to their homes (a few still have not). Also, the well is still not capped, meaning “unknown quantities” of methane are leaking into the air. Which, judging by most press accounts, is a greenhouse gas environmental catastrophe. Actually, it’s nothing of the sort. The amount of gas a single well vents into the atmosphere until it’s capped doesn’t even move the needle on the faux global warming scale. Frankly, it’s laughable. No, we’re not laughing at this accident/disaster. Far from it. We thank God nobody was hurt. It should not have happened. And yes, the well needs to be capped–quickly–which XTO and the company hired to do it (Cudd Energy Services) are working hard to do. We’re just providing balance to the “methane leaking from this uncapped well is the end of the world” narrative so prevalent–even in local news outlets. Here’s the latest update on what’s happening at the Schnegg well pad…
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PTT Global Chemical, based in Thailand, has snagged a major/important new partner in its project to build a $6 billion ethane cracker complex in Belmont County, Ohio. That partner is Daelim Chemical, a subsidiary of Daelim Industrial, which is one of Asia’s top engineering/construction firms (and one of the largest companies in South Korea). The addition of Daelim is yet another positive sign that PTT will, at some point this year, pull the trigger and make a “final investment decision” (FID) to move forward with the project. PTT disappointed when they didn’t follow through with an FID in 2017, as they had promised. To be fair, these projects are big and a misstep can bankrupt a company. The Belmont cracker will be the largest single investment made by PTT since becoming a company–so we understand their reticence. Still, when you promise, you promise. Just last month, in December 2017, PTT delivered the disappointing news that there would be no FID announcement in 2017, but that there would be a big announcement “in early 2018” (see 
We’ve written plenty about Mountaineer NGL Storage hub project proposed for Monroe County, OH, located just across the river (and border) from West Virginia (see our 
PTT Global Chemical, based in Thailand, continues to delay a final investment decision (FID) regarding their much-ballyhooed ethane cracker project in Belmont County, OH. In April 2015, PTT announced they are interested in building a ~$5 billion ethane cracker plant complex in Belmont County, OH (see 
An MDN reader recently asked us, “Hey, what’s up with the Belmont County, OH ethane cracker? We haven’t read anything in a while.” You haven’t read anything on MDN, nor anywhere else, because there’s been nothing to read. PTT Global Chemical, based in Thailand, announced in April 2015 they are interested in building a $5 billion ethane cracker plant complex in Belmont County, OH (see 
Summit Midstream Partners was drilling underneath a road and a creek in Belmont County, OH on Oct. 19 to install a pipeline when they experienced an “inadvertent return” (i.e. leak) of drilling mud into the creek. If you’ve read MDN for any length of time, you will have read about other such instances by other companies. Because we constantly have new readers, we post the following explanation, which will sound like a broken record for long-time readers: Drilling mud is bentonite, a form of non-toxic clay also used to make kitty litter, cosmetics and toothpaste–among many, many other consumer products. The only threat posed by a spill of bentonite is that enough of it spills to clog the gills of fish or smother little critters like salamanders. That’s it. Think about taking half a dozen bags of kitty litter to a creek nearby and dumping them all in. It’s nothing. No pollution. We’d certainly rather not have any such accidents–but the reality is, they sometimes happen. That’s why non-toxic bentonite is used. The Ohio EPA stepped in and cited/fined Summit for the spill. Fair enough. But that’s not what this story is about. This story is about a family that lives near the spill. They hated Summit’s “loud” drilling before the spill, and now are using Summit’s spill and cleanup work (some of it happening in their front yard) as an excuse to sue Summit, hoping to score big bucks. Good luck with that…
If you are unemployed–particularly if you once worked in the coal industry–and you’re interested in getting your foot in the door of a rewarding job in the Marcellus/Utica industry, LISTEN UP! For those who live in southwestern PA and eastern OH, the Washington Greene County Job Training Agency and the Gas Technology Institute have teamed up to provide a FREE 4-week training program just for you (
The FBI has been drawn into what was once a civil case in Ohio. EnerVest once owned nearly one million acres in the Ohio Utica Shale. It was unintentional. Most of the acreage came from owning old conventional/vertical oil and gas wells in the state. Belmont County, OH landowner, Matt Crislip, says EnerVest perpetrated a fraud on him by pretending his long inactive/dead conventional well was once again producing. The practice is known as “back-fed”–running gas from a pipeline back to the well, so it appears the well is still producing gas. Why do something crazy like that? So the driller can claim the well is producing and is “held by production”–allowing that driller to turn around and sell the lease to someone else (Ascent Resources, in this case) for “millions” according to Crislip. The result is Crislip didn’t see a penny in new lease-signing bonuses, and he didn’t get the opportunity to negotiate a new royalty rate. EnerVest flatly denies the back-fed charge and said they will defend themselves “vigorously.” So far the FBI has only investigated Crislip’s claim, and no charges have been filed. Yet. Here’s a look at Crislip’s claim and the FBI’s ongoing investigation, which may expand beyond Belmont County…
Since Aubrey McClendon and Chesapeake Energy first burst on the scene to announce the Utica Shale is “the best thing to hit the state of Ohio economically since maybe the plow” and Chesapeake leased and drilled in Carroll County, OH, Carroll has been the single most Utica drilled county in the state. Activity in Carroll remains strong, but as the play has matured and drillers have experimented in other counties, the “sweet spot” for Utica drilling moved south, to places like Belmont, Monroe and Guernsey counties. The most productive Utica wells drilled are in those southern counties. So it was not all that big a surprise, but certainly noteworthy, to read that Belmont County has now passed Carroll for total number of permits issued to drill Utica wells. A “changing of the guard.” We hasten to add Carroll still has more drilled and producing Utica wells than Belmont–at this point in time. At some point that dynamic will change. Below we have the latest numbers, and a special sneak preview of MDN’s forthcoming Marcellus & Utica Shale Almanac showing a breakdown of numbers for Carroll County, still (for now) the most drilled Utica Shale county in the Buckeye State…
The Federal Energy Regulatory Commission last Thursday granted Rover Pipeline permission to resume horizontal directional drilling (HDD) at four more locations where it had been stopped. One of those locations is drilling under the Ohio River in the Majorsville area. Rover is a $3.7 billion, 711-mile natural gas pipeline that (will eventually) run from PA, WV and eastern OH through OH into Michigan and on to Canada. A large portion of the pipeline began flowing natural gas on Sept. 1st (see 
Belmont County Port Authority Director Larry Merry says he “can’t think of a single reason” why PTT Global Chemical won’t build a promised $6 billion ethane cracker facility in Dilles Bottom. Mike Jacoby, VP of business development for the Appalachian Partnership for Economic Growth concurs, saying he is “optimistic” and sees “no problems” ahead for the PTT cracker. In addition to locals in Ohio pumped about the PTT cracker and the promised final investment decision by the end of this year, there is still hope for a cracker plant in West Virginia too. WV officials say Braskem is still expressing interest in a cracker project in the Parkersburg area. Here’s some of the chitter-chatter among pumped-up officials attending a forum last month in Wheeling, WV…
On Monday, Mr. Supattanapong Punmeechaow, president and CEO of PTT Global Chemical (Thailand’s largest petrochemical company) signed a Memorandum of Understanding (MOU) with JobsOhio regarding PTT’s proposed ethane cracker plant. The MOU pledges to “enhance the well-being and quality of life” for those living in the area near the proposed cracker plant. PTT announced in April 2015 they are interested in building a $5 billion ethane cracker plant complex in Belmont County, OH (see 
We’re always on the lookout for news about a final investment decision by PTT Global Chemical to build a $5 billion ethane cracker in Belmont County, OH. Recently PTT spent $13.8 million to buy 168 acres at the proposed cracker plant site (see 
Work is now underway on Shell’s $6 billion ethane cracker in Beaver County, PA. What’s the status of the region’s second likely cracker plant, in Ohio? PTT Global Chemical previously announced they are interested in building a $5 billion petrochemical complex, including an ethane cracker, in Belmont County, OH at the site of the old R.E. Burger power plant. However, they have repeatedly said a “final investment decision” (FID) will not happen until the end of 2017. This is the same routine Shell used. In fact, Shell dragged out their FID a lot longer than PTT has. As with Shell, we look for signals that the FID will be a positive decision to move forward with construction. And as with Shell, we see those positive signs. Shell purchased the land for the site before announcing their FID. As we told you last month, PTT has now done the same–buying the former R.E. Burger site from FirstEnergy for $13.8 million (see 
Although a final investment decision (FID) is still months away, Thailand-based PTT Global Chemical decided spending $13.8 million to buy 168 acres at the proposed site for a second Appalachia ethane cracker, in Belmont County, OH, would be a good investment. Which they have now done. The deal, which closed in June, is just now coming to light. PTT bought the land for the site from FirstEnergy Corporation. The deal was recorded at the Belmont County Courthouse on June 14. This is yet another sign that PTT will make a positive FID later this year. Even though PTT just bought the land, work was previously done on the site to clear it and get it ready for construction, as we reported in December (see