Belmont County

Beaver County | Belmont County | Energy Companies | Ethane | Industrywide Issues | Ohio | Pennsylvania | Processing Plants | Shell

Are OH Officials Worried about Shell’s PA Ethane Cracker? Nope
June 22, 2015June 22, 2015

In April Ohio officials announced Belmont County, OH has been chosen as the site of a potential ethane cracker plant (see It’s Official: Belmont County Chosen as POSSIBLE Cracker Plant Site). Which led us to admit that since we’ve been teased with a cracker for over three years now–with NO ONE actually committing to such a plant–we’re experiencing “cracker fatigue.” But not long after Shell made some serious moves toward committing to build a cracker plant in western Pennsylvania, not far from Pittsburgh. The most recent positive sign is that Shell finally, after three years of faffing about, earlier this month purchased the property the plant would be built on (see Shell Buys Beaver County, PA Property for Future Cracker Plant). Does a Shell cracker reduce the likelihood of an cracker plant being built less than two hours away in Belmont County, OH? Not according to officials in Ohio. In fact, they’re not worried at all…
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American Energy Partners | Ascent Resources | Belmont County | Energy Companies | Gulfport Energy | Jefferson County (OH) | Monroe County | Ohio | Utica Shale

Big McClendon News: Sells 35K Utica Acres, Creates New Company
June 10, 2015June 10, 2015

We have major news coming from Aubrey McClendon’s American Energy Partners (AEP). A lot of news. So buckle in. First we’ll tell you the news, then we’ll give you our take on that news–what it means. In brief, the news coming from AEP HQ in Oklahoma City is this: (1) AEP’s Marcellus/Utica AEP subsidiary, American Energy Appalachia Holdings, has been spun out into a 100% standalone company and has changed its name to Ascent Resources; (2) the CEO of Ascent is the same guy who was the CEO of American Energy Appalachia Holdings–trusted McClendon lieutenant Jeffrey A. Fisher; (3) Ascent has cut a deal with Gulfport Energy to sell 35,000 prime Utica Shale acres for $407 million; and (4) Ascent has just sold shares in the company and taken out new loans for $977 million, giving them $700 million in cash after they pay off certain other loans. Whew! Here’s the details, along with a little news of our own about AEP…
Read More “Big McClendon News: Sells 35K Utica Acres, Creates New Company”
American Energy Partners | Ascent Resources | Belmont County | Energy Companies | Gulfport Energy | Jefferson County (OH) | Monroe County | Ohio | Utica Shale

Details on Gulfport’s Purchase of 35K AEP Utica Acres + New Stock
June 10, 2015June 10, 2015

As we report in our lead story today, Aubrey McClendon’s American Energy Partners has decided to spin out it’s Marcellus/Utica operation into a brand new, 100% independent company. That new company, formerly called American Energy Appalachia Holdings, is now called Ascent Resources. Ascent has turned around and immediately sold 35,325 net acres in prime Utica Shale country–Monroe, Belmont and Jefferson counties in Ohio–to one of AEP’s chief competitors in the Utica, Gulfport Energy. In addition, Gulfport has just announced they are floating another 10 million shares of stock. If the new shares sell for anything close to today’s current share price, that will net the company another $440+ million. Below we have the details (from Gulfport) on the deal with AEP to purchase prime Utica acreage complete with four drilled wells and a pipeline gathering system, along with Gulfport’s announcement about the new stock offering…
Read More “Details on Gulfport’s Purchase of 35K AEP Utica Acres + New Stock”
Belmont County | Guernsey County | Monroe County | Noble County | Ohio | Statewide OH

Top 6 Utica Natgas & Top 6 Utica Oil Wells by Production in 1Q15
June 2, 2015June 2, 2015

Yesterday the Ohio Dept. of Natural Resources (ODNR) released their first quarter production numbers for both oil and natural gas (see our companion story today). Below are details for the top 6 natural gas producing wells, and the top 6 oil producing wells in the state. Rice Energy and Antero Resources split the top 6 natural gas wells with three apiece. Of note, Rice’s wells took the top 3 slots. Aubrey McClendon’s American Energy drilled the most top oil wells (4 of the top 6), followed by one apiece for Antero Resources and PDC Energy…
Read More “Top 6 Utica Natgas & Top 6 Utica Oil Wells by Production in 1Q15”
Belmont County | Economic Impact | Education | Ethane | Industrywide Issues | Ohio | Processing Plants

Belmont, OH School Will Need to Accept $ Cut from Cracker Project
June 1, 2015June 1, 2015

The teachers’ unions won’t like this one. As part of the “aggressive incentive package” (not yet disclosed) by Ohio Gov. John Kasich in order to lure an ethane cracker plant to the state, the local school district in Belmont County will have to accept concessions. That is, John Kasich wants to deny the lil’ chil’ren money OWED to them. The Shadyside school board will need to sign off on any property tax deal cut with the companies (from PTT Global Chemical from Thailand and Marubeni Corporation from Japan) planning to build the cracker plant complex. We seriously doubt that the school will have much choice in the matter. What if the school (and teachers’ unions) say “no”? Will that stop the plant? You can bet your bottom dollar that ain’t gonna happen with John “foreigner hunter” Kasich on the job…
Read More “Belmont, OH School Will Need to Accept $ Cut from Cracker Project”
Belmont County | Ethane | Industrywide Issues | Ohio | Processing Plants

Belmont County, OH Ethane Cracker to Get 3rd Partner
May 19, 2015May 19, 2015

More movement on the recently announced $5 billion ethane cracker in Belmont County, OH being planned by two companies from Thailand and Japan (see It’s Official: Belmont County Chosen as POSSIBLE Cracker Plant Site). The new news is that the two companies are seeking a third company to become a partner (i.e. contribute cash) to help them build it. PTT Global Chemical from Thailand will be the majority owner with a 51% stake. Japan’s Marubeni Corp is the money manager/investor for the project. According to PTT, five other companies are interested in becoming the third partner…
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Belmont County | Energy Companies | Gulfport Energy | Industrywide Issues | Litigation | Ohio

Barnesville, OH Hires Costly Columbus Lawyers in Gulfport Lawsuit
May 13, 2015May 13, 2015

In 2012, Barnesville (Belmont County), OH signed a contract with Gulfport Energy to sell Gulfport water from the Slope Creek Reservoir for 1 penny per gallon. Gulfport now wants to begin drilling in the area, following a joint venture agreement with Antero Resources. But Barnesville says the water level in the reservoir is too low and won’t sell. Gulfport sued and the whole matter has ended up in federal court (see Gulfport Energy Sues Barnesville, OH for Access to Water in Reservoir). As we later pointed out, the cost to Barnesville taxpayers because their political leaders “didn’t think” when they signed on the dotted line will now be very expensive (see Barnesville Officials “Didn’t Think” When Signing Gulfport Water Deal). Barnesville has just hired a high priced law firm from Columbus to represent them in court. How will Barnesville pay the new high priced lawyers? From money the town received from (yes) selling water from the reservoir to someone else…
Read More “Barnesville, OH Hires Costly Columbus Lawyers in Gulfport Lawsuit”
Belmont County | Energy Companies | Greene County (PA) | Ohio | Pennsylvania | Rice Energy | Washington County

Rice Energy 1Q15 Earnings Call: 100% Focused on 3 Counties
May 11, 2015May 11, 2015

Last Friday MDN brought you the Rice Energy first quarter 2015 update (see Rice Energy Doubles Production 1Q15; Utica Flows; Ekes Out a Profit). On Friday, Rice’s upper management held an earnings call with analysts and as always, quite a bit more comes out in the call than in the official press release. Below is Rice Energy CEO Dan Rice’s prepared remarks on that call with some interesting details on both their Marcellus and Utica operations. Among the interesting comments: Rice is 100% focused on just three counties in the Marcellus/Utica…
Read More “Rice Energy 1Q15 Earnings Call: 100% Focused on 3 Counties”
American Energy Partners | Belmont County | Energy Companies | Lease & Royalty Payments | Ohio | XTO

Another Belmont County Landowner Threatened with Forced Pooling
May 11, 2015May 11, 2015

In April MDN told you about a landowner in Belmont County, OH who had questions and objections to phrasing in a proposed lease agreement from XTO Energy that talks about “nuisance oil” (see XTO Threatens Belmont County, OH Landowner with Forced Pooling). NEVER sign a lease without running it by a competent oil & gas attorney, and ALWAYS get the sometimes obscure terminology in a lease explained before you sign it. That’s our advice. We have another story along the same lines as the “nuisance oil” story–language that energy companies can’t or won’t explain to landowners. This one also comes from Belmont County, OH–perhaps the hottest of the hot places for drilling right now in the Utica Shale. A landowner from Martins Ferry, OH says XTO offered him an eye-popping $8,000 per acre signing bonus with 20% royalties, and Aubrey McClendon’s American Energy Partners offered $6,000 per acre with 20% royalties. Both have a “market enhancement clause” in the lease. The landowner didn’t like the clause, fearing it would reduce his royalties. The landowner was told by either XTO or AEP or both (we’re not sure), that they would force pool him if he didn’t sign. By force pooling him he would not get a signing bonus at all and only a 12.5% royalty. These kinds of strong-arm tactics give the industry a black eye in our opinion…
Read More “Another Belmont County Landowner Threatened with Forced Pooling”
Belmont County | Ethane | Industrywide Issues | Ohio | Processing Plants

FirstEnergy Says Talk of Selling Land for OH Cracker “Premature”
May 4, 2015May 4, 2015

Two weeks ago MDN brought you the good news that two foreign companies–one from Thailand and the other from Japan–are teaming up with the aim of building a $5 billion ethane cracker plant in Belmont County, OH (see It’s Official: Belmont County Chosen as POSSIBLE Cracker Plant Site). A day later we shared with you Belmont County’s enthusiasm for the project, and our own “cracker fatigue” (see Belmont County Elated with Cracker Plant Announcement (Drip)). These projects take years and have more ups and downs than a roller coaster. It seems our words of advice to temper enthusiasm for this new project are already bearing out. Utility company FirstEnergy owns the land where the cracker plant would, theoretically, be built. FirstEnergy is saying wait a minute, we haven’t agreed to sell that land to anybody…
Read More “FirstEnergy Says Talk of Selling Land for OH Cracker “Premature””
Belmont County | Economic Impact | Ethane | Industrywide Issues | Jobs | Ohio | Processing Plants

Belmont County Elated with Cracker Plant Announcement (Drip)
April 24, 2015April 24, 2015

We hate to rain on Belmont County, OH’s parade, but we have to point out their celebration over the announcement about a potential ethane cracker plant announced on Wednesday may be a bit premature (see It’s Official: Belmont County Chosen as POSSIBLE Cracker Plant Site). Yes, we’re super excited at the prospect of a cracker plant getting built somewhere in the northeast–and if it’s this one, to be built by Thailand and Japan, we’ll be as elated as the officials in Belmont County are (see below). However, we would like to point them to Beaver County, PA, about an hour’s drive across the border, where local officials there have been waiting for more than three years for Shell to get off the pot with a project to build a cracker plant there. Elation–when it comes to these cracker plant projects–sooner or later turns into concern, and eventually into dimmed and elusive hope. The one thing Belmont County CAN celebrate is that the company proposing to possibly build the cracker plant in the county will spend around $150 million to evaluate the site first–so at least the county will get a bit of an economic bump from that…
Read More “Belmont County Elated with Cracker Plant Announcement (Drip)”
Belmont County | Economic Impact | Ethane | Industrywide Issues | Jobs | Ohio | Processing Plants

It’s Official: Belmont County Chosen as POSSIBLE Cracker Plant Site
April 23, 2015April 23, 2015

As we told you Tuesday, Ohio is now squarely in the ethane cracker race (see Rumor: Ohio Cracker Plant Announcement Coming This Week). As predicted, yesterday Ohio Gov. John Kasich and Belmont County, OH officials announced a pair of companies from Thailand and Japan were partnering with the aim of building an ethane cracker plant in Belmont County (see the announcement below). It is a $5 billion project, according to media reports–larger than the price tag for both the possible Shell ethane cracker in Beaver County, PA and the Odebrect ethane cracker/petrochemical facility in Parkersburg, WV–which is now on pause (see Odebrect Pushes the Pause Button on WV Ethane Cracker). Speaking of which–you may now color us skeptical and jaded that any of these projects, including the one in Ohio, will ever get built…
Read More “It’s Official: Belmont County Chosen as POSSIBLE Cracker Plant Site”
Belmont County | Ethane | Industrywide Issues | Ohio | Processing Plants

Rumor: Ohio Cracker Plant Announcement Coming This Week
April 21, 2015April 21, 2015

Last October MDN told you about the rumor that a pair of companies from Thailand and Japan were partnering with the aim of building an ethane cracker plant in the Marcellus/Utica region (see Thailand & Japan Partner to Build 3rd Big Marcellus Ethane Cracker). It’s not just any pair of companies, either. The companies are Thailand’s largest chemical company, Bangkok-based PTT Global Chemical, and Japan’s fifth largest general trading company/conglomerates, Tokyo-based Marubeni Corp. These are serious players. They were reported to be considering three different locations in Pennsylvania and Ohio. Since that time we’ve not heard anything–until now. Yesterday, Columbus Business First reporter Tom Knox reported PTT is taking a “big step forward” in the process and has decided on a site in Belmont County, OH. The new rumor is that PTT/Ohio will make some sort of announcement this week…
Read More “Rumor: Ohio Cracker Plant Announcement Coming This Week”
Belmont County | Energy Companies | Guest Post | Gulfport Energy | Industrywide Issues | Litigation | Ohio

Opposing Viewpoint on Gulfport Water Lawsuit Against Barnesville
April 21, 2015April 21, 2015

MDN reader Eric Fenster, who lives in the Piedmont Lake area of Ohio, wrote to take issue with MDN’s “take” on the lawsuit brought by Gulfport Energy against Barnesville for breach of contract in selling them water for use in drilling and fracking (see Barnesville Officials “Didn’t Think” When Signing Gulfport Water Deal). Mr. Fenster believes MDN has it mostly wrong and that the Gulfport lawsuit is frivolous and should be dismissed. He outlines his thinking in the following guest post…
Read More “Opposing Viewpoint on Gulfport Water Lawsuit Against Barnesville”
Belmont County | Energy Companies | Gulfport Energy | Jefferson County (OH) | Lease & Royalty Payments | Ohio | Utica Shale

Gulfport Energy Pays $12,500 per Acre for 24K OH Utica Acres
April 16, 2015September 14, 2015

Gulfport Energy announced yesterday they’ve picked up 24,000 dry gas acres in the “core” of the Utica play–in Belmont and Jefferson counties in Ohio. The lease seller is Paloma Partners III, a small energy & exploration company headquartered in Houston and backed by Encap Investments and Macquarie Americas. According to the Paloma website, they own(ed) 24,000 in the Utica and had planned on drilling “in late 2015.” We’re assuming they added a few thousand acres to that total since the web page was last updated and that they will now not drill at all–since they’ve just sold all of their Utica acreage to Gulfport. The purchase price was $300 million. Doing the math, Gulfport paid Paloma $12,500 per acre–which is perhaps the highest such deal price per acre we’ve seen to date. Here’s the full update from Gulfport on the Paloma acreage purchase, along with production numbers from 1Q15 which show a 161% increase from 1Q14…
Read More “Gulfport Energy Pays $12,500 per Acre for 24K OH Utica Acres”
Belmont County | Industrywide Issues | Ohio | Regulation | Statewide OH

OH Dem to Introduce Bill Controlling Fresh Water Withdrawals
April 13, 2015April 13, 2015

Is more regulation on the way in Ohio to control how much water drillers take from local streams and rivers? MDN editor Jim Willis moderated two panels at the recent Oil & Gas Awards Industry Summit in Pittsburgh in March (see 2015 Northeast Oil & Gas Awards: A Quick Recap & List of Winners). Jim always learns something new when attending and participating in these events. Something he learned in March was a bit of an eye-opener. In Ohio, water withdrawals from streams and rivers is pretty much on the honor system. Drillers are supposed to report it, and they do–but they report after the fact. There is no oversight to ensure a streams or rivers are too low to withdraw water. By all accounts drillers have been good stewards and careful not to overdraw–but it is on the honor system and that’s beginning to bother some, like Ohio Democrat Jack Cera from Bellaire (Belmont County)…
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