Belmont County

Belmont County | Energy Companies | Gulfport Energy | Industrywide Issues | Litigation | Ohio

Barnesville Officials “Didn’t Think” When Signing Gulfport Water Deal
April 8, 2015April 21, 2015

A few weeks ago MDN told you about a legal battle shaping up in Belmont County. Gulfport Energy has sued the town of Barnesville over a contract dispute (see Gulfport Energy Sues Barnesville, OH for Access to Water in Reservoir). Barnesville signed a contract with Gulfport to sell them water for drilling and fracking from the Slope Creek Reservoir–for 1 penny per gallon. Then Barnesville signed a contract with Antero Resources to lease land, and of course Antero needs water too (and apparently went to the head of the water line). Barnesville now says the reservoir has been drawn down too low to sell water to Gulfport (other drillers dipping in the reservoir?) so Barnesville wants to renege on the contract and now finds themselves in federal court. Now the 4,100 residents of Barnesville will pay out the nose for outside legal council to defend the town because of their leaders “didn’t think”…
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Belmont County | Energy Companies | Forced Pooling | Industrywide Issues | Lease & Royalty Payments | Ohio | XTO

XTO Threatens Belmont County, OH Landowner with Forced Pooling
April 6, 2015April 5, 2015

Belmont County landowner Curtis Wallner doesn’t know what the term “nuisance oil” means in the contract XTO Energy is offering him to lease his 26 acres. The contract says Wallner will receive an eye-popping $8,000 per acre in signing bonus money, plus 20% royalties, MINUS revenue for “non-commercial nuisance oil.” Because XTO can’t or won’t explain it or remove it from the contract, Wallner won’t sign (can’t say that we blame him). So XTO is threatening him that they’ll take his gas anyway via forced pooling… Read More “XTO Threatens Belmont County, OH Landowner with Forced Pooling”
Belmont County | Energy Companies | Lease & Royalty Payments | Ohio | Rice Energy

Belmont County Loves Rice Energy
March 30, 2015March 30, 2015

Belmont County, OH loves Rice Energy, which is a good thing because Rice has nearly 16% of all the land in the county now under lease for Utica Shale drilling. So far the company has pumped “hundreds of millions” of dollars into the Belmont County economy, and there’s no end in sight. No wonder they love Rice! Rice currently has some 55,000 acres under lease in Belmont. How much are they paying for leases? Last April Rice leased 406 acres from Belmont County and paid a signing bonus of $7,500 per acre with a 20% royalty (see Belmont County Shopping New Deal to Lease Additional 426 Acres). Rice came back in June and leased an additional 426 acres from the county, paying an eye-popping $8,200 per acre with a 20% royalty (see Rice Energy Does 2nd Deal with Belmont County, $8,200/Acre!). County officials say Rice has become part of the community and supports area schools…
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Antero Resources | Belmont County | Energy Companies | Gulfport Energy | Industrywide Issues | Litigation | Ohio

Gulfport Energy Sues Barnesville, OH for Access to Water in Reservoir
March 20, 2015March 20, 2015

A legal battle is shaping up in Belmont County, OH–in and around Barnesville. Way back in 2012, Gulfport Energy signed a contract with Barnesville to buy water from the Slope Creek Reservoir for 1 penny per gallon. Not long after, the Village of Barnesville (which controls the reservoir) signed a lease with Antero Resources for a sizable sum (see Barnesville, OH Signs Lease with Antero, Receives $6M). Antero also snapped up more acreage in the area (see Antero Offers Barnesville, OH Residents $5,700/Acre 20% Royalties). Gulfport and Antero reached a “mutual development agreement” in June and now Gulfport wants to start drilling in the area–but Barnesville is saying the reservoir is too low because other drillers (Antero?) have drawn it down. So Barnesville won’t let Gulfport, which has its own contract, to access water in the reservoir. Gulfport has just sued the Village to gain access…
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Belmont County | Energy Companies | Lease & Royalty Payments | Ohio | Rice Energy | Utica Shale

Rice Energy Pays St Clairsville, OH $8,700/Acre Signing Bonus
March 16, 2015March 16, 2015

In March 2014, St. Clairsville (Belmont County), OH put out a request for bids on 195 acres of city-owned land. The request for proposal (RFP) came and went with no bids (see St Clairsville RFP to Lease 195 Utica Acres Comes & Goes, No Bids). But don’t let that fool you. Drillers were keenly interested in leasing the property. The initial RFP served a legal purpose. After the period for bids closed, the real negotiations began. St. Clairsville was looking for $7,300 per acre signing bonus and 20% royalties. They got an even better deal. In January, Rice Energy handed St. Clairsville with a check for $1,479,251.84 to lease 170 out of the 195 acres–or $8,700 per acre as a signing bonus…
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Belmont County | Energy Companies | Energy Services | Greene County (PA) | Ohio | Pennsylvania | Rice Energy | Rice Midstream | Washington County

Rice Energy Turns Profitable in 2014; Strong 2015 in View
March 13, 2015March 13, 2015

Rice Energy, a “pure play” energy company focused on drilling in the Utica and Marcellus, issued their full year and fourth quarter 2014 update yesterday. Wow, what an update! Rice had a big year in 2014. The parent company, focused on drilling, went public. They also launched an IPO for their midstream (pipelines) subsidiary. Compared to 2013 which saw a loss on the books, 2014 reversed it. In 2014, Rice’s profit was $218.5 million (out of $390.9 million). That’s an increase over a 2013 loss of $35.8 million (out of $88.7 million in revenue). In 2014, Rice produced 97.7 billion cubic feet (Bcf) of natural gas, up from 23 Bcf in 2013. Aside from the company growing and hitting its stride, what was different about 2014? Last year Rice concentrated on the Utica Shale…
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Belmont County | Energy Companies | Greene County (PA) | Ohio | Pennsylvania | Rice Energy | Washington County

Rice Energy CEO Dan Rice Says 5 Utica Wells Producing 80Mmcf/Day
March 13, 2015March 13, 2015

CORRECTION: In the original version of this story MDN incorrectly stated Rice’s 5 Utica wells were producing $80 million per day instead of 80 million cubic feet of natural gas. A dumb mistake. We relied on an inaccurate transcription of what was said (see it below). The transcription lists the quantities as dollars–the person transcribing got it wrong. We should have known! Our apologies. The 5 wells are still awesome in producing 80 Mmcf/d–but not as awesome as $80 million per day! 🙂

In addition to releasing their fourth quarter and full year 2014 update yesterday, Rice Energy also held an analyst phone call to share the results. Rice’s top management was on the call and shared some fascinating insights. Among them: In 2014 and early 2015 Rice brought five Utica Shale wells online–Bigfoot 9H, Blue Thunder 10H and 12H, and Gold Digger 1H and 3H. (Just an aside, we love how Rice names their wells. Their newest well pad just completed in Belmont County, OH is the “Son-Uva-Digger” pad. Love it!) Anywho, the five Utica wells completed in 2014 and early 2015 collectively are producing, according to CEO Dan Rice, 80 million cubic feet of gas PER DAY. Truly astonishing. In addition to the Utica in Belmont County, Rice is eyeing the Utica underneath their Marcellus assets in southwestern PA–in Washington and Greene counties. This company is smart and focused and one to keep an eye on. Below is a transcript of the comments from yesterday’s analyst call. We’ve added our yellow highlighter to point out some items that caught our attention…
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Belmont County | Economic Impact | Energy Services | Energy Transfer Partners | Harrison County | Industrywide Issues | Jefferson County (OH) | Jobs | Monroe County | Ohio | Pipelines

List of Towns in 4 SE OH Counties Getting ET Rover Pipeline
February 26, 2015February 26, 2015

Southeast OH will soon see a lot of new pipelines being laid, and along with it, a lot of new jobs. Energy Transfer Partners recently briefed Monroe County Commissioners on the ET Rover pipeline project, an 800-mile, $4.4 billion pipeline that will connect the Marcellus and Utica Shale region to Canada (see ET Rover Pipeline’s 800-Mile Journey Begins with FERC Filing). If the pipeline is laid as currently planned in the southeastern portion of Ohio, the pipeline will traverse 46.31 miles in Monroe County, 34.99 miles in Belmont County, 20.06 miles in Jefferson County and 17.7 miles in Harrison County. Here’s a list of the lucky townships in those four counties where the pipeline is due to go…
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Belmont County | Energy Companies | Energy Services | Industrywide Issues | Jobs | Monroe County | Ohio | Pipelines | Rice Energy | Rice Midstream

Rice Midstream Building New “Zeus” Pipeline in Belmont/Monroe OH
February 10, 2015February 10, 2015

MDN picked up on a bit of news we had not previously heard about. Rice Midstream, the newly formed subsidiary of Rice Energy launched in December (see Rice Midstream IPO Falls Short of Goal by Approx. $134M), is busy at work. They are building eight miles of 30-inch pipeline through portions of Belmont and Monroe counties (in Ohio) as part of their “Zeus” project. This is the first time we’d heard of Zeus (the pipeline). The project will last four months and employ 350 temporary union workers–welders and construction workers…
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Belmont County | Energy Companies | Gulfport Energy | Lease & Royalty Payments | Ohio

Coal Company Leases 6K Acres for Natgas Drilling in Belmont, OH
January 20, 2015January 20, 2015

Murray Energy Corp. is a coal mining company headquartered in St. Clairsville (Belmont County) in eastern Ohio. In 2013, Murray’s CEO and founder, Robert Murray, sued Aubrey McClendon when McClendon named his new company American Energy Partners. Murray, you see, operates a subsidiary coal mining company called American Energy Corp. (see McClendon Gets Sued in OH Over New Company’s Name). We haven’t heard anything since that time, so presumably it’s all blown over by now. What’s interesting is that Murray, whom we assumed has a grudge against natural gas, has just leased 2,076 acres of his coal mining property owned by American Energy Corp., along with 3,849 acres from another Murray subsidiary mining operation, The Ohio Valley Coal Co., to Gulfport Energy so Gulfport can drill for natural gas under the coal mines…
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Belmont County | Energy Services | Industrywide Issues | Litigation | Ohio | Pipelines | Spectra Energy

OH Landowners ask Court to Stop OPEN Pipeline Eminent Domain
January 14, 2015January 14, 2015

In December 2014, the Federal Energy Regulatory Commission (FERC) gave final approval to Spectra Energy’s OPEN (Ohio Pipeline Energy Network) project in Ohio–a $468.5 million pipeline from Ohio to the Gulf Coast (see FERC Approves OPEN Pipeline in Eastern OH, Gas Goes to Gulf Coast). The project includes building 76 miles of new pipeline from Columbiana County to Monroe County (slicing through Belmont County along the way) to connect to the Texas Eastern Pipeline. The pipeline will then reverse its flow–making it bidirectional–in order to carry Marcellus and Utica Shale gas from eastern Ohio to the Gulf Coast. As soon as FERC issued final approval, Texas Eastern, the owner of Spectra Energy, started to issue eminent domain notices to landowners along the 76-mile route who aren’t playing ball with them. A husband and wife are pushing back. With the assistance of the Ohio 1851 Center for Constitutional Law, Roger and Lana Barack of Belmont County have filed their opposition to Texas Transmission’s notice to take “immediate possession” of their land. The Baracks and The 1851 Center call the manner in which Texas Transmission is trying to take their land “abusive” and in essence, a midnight railroading of innocent landowners…
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Belmont County | Energy Companies | Ohio | Rice Energy | Utica Shale

Single Rice OH Utica Well Produces 2 Bcf in 5 Months!
November 18, 2014November 18, 2014

What adjectives and superlatives can you use to describe a single shale well that produces 2 billion cubic feet of natural gas in five months? That’s how much has been produced by Rice Energy’s Bigfoot 9H well in Belmont County, OH. If you figure Rice is getting an average $4 per thousand cubic feet for the gas, that means the gas sold from that well over the past five months has grossed the company something like $8 million. If the landowners get a 20% royalty from the well, that’s a $1.6 million check. “Darn impressive” is perhaps the understatement of the year…
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Beck Energy | Belmont County | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Monroe County | Ohio | XTO

Major OH Court Victory for Beck Energy & XTO in Lease Case
October 1, 2014October 3, 2014

A court case with big implications for all Ohio landowners–and drillers–was decided in March 2013. In Hupp v. Beck Energy Corp, three landowners filed suit claiming that their leases with Beck Energy Corp. were void and should be terminated because Beck never drilled wells on their property and that a provision allowing Beck to pay a nominal delay fee was against public policy. The court agreed and granted summary judgment (see OH Lawsuit Victory: 600-700 Landowners Can Terminate Beck, XTO Leases). Beck had sold the leases–in Monroe and Belmont counties–to XTO Energy, so XTO got involved in the lawsuit too. The court then granted class certification to the lawsuit brought by the three landowners–meaning between 600-700 landowners would also be able to invalidate their leases. A few weeks later both Beck and XTO filed an appeal (see XTO, Beck Energy Appeal OH Case Allowing Lease Termination). On appeal, this week the Seventh District Court of Appeals in Ohio overturned the lower court ruling and ruled in favor of Beck and XTO–a major victory for Ohio’s drillers and a major defeat for the landowners who say their land never got drilled and they wanted to re-sign with different company…
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Belmont County | Industrywide Issues | Jefferson County (OH) | Ohio | Supply Chain | Trucking

New Transportation Hub for Drillers Coming to Eastern Ohio
September 10, 2014September 10, 2014

A new tri-modal (rail/truck/barge) logistics and transportation hub serving the Ohio, Pennsylvania and West Virginia shale drilling is coming to the former Ohio Cold Rolling Company steel finishing mill in Yorkville, Ohio, located on the border of Belmont and Jefferson counties–right in the thick of where shale drilling has recently heated up. Esmark, Inc., which purchased the old Ohio Cold Rolling Company two years ago, recently announced that they will close the mill. However, in its place they will create a new transportation hub where products like frack sand, steel pipes, heavy equipment and other goods used for Utica and Marcellus drilling will be loaded and unloaded and reloaded, heading to various destinations. Esmark is converting the 1 million square foot plant into a rail/truck/barge complex called the Yorkville Energy Services Terminal. Among the many services at the new facility will be sucking 3 million gallons of fresh water per day from the Ohio River–to be used in drilling and fracking…
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Belmont County | Energy Services | EnLink Midstream | Guernsey County | Industrywide Issues | Noble County | Ohio | Pipelines | Washington County (OH)

EnLink Midstream Announces New Condensate Pipeline in ORV
August 25, 2014August 25, 2014

Earlier this year, midstream company Crosstex Energy merged with the midstream division of shale driller Devon Energy and gave birth to a new company–EnLink Midstream (see Time to Congratulate Devon & Crosstex on the Birth of EnLink). EnLink has a small but growing presence in the northeast, including the Utica Shale. EnLink’s commitment to the Ohio River Valley (Utica Shale) has just doubled by adding another $250 million committed to a project that will build a new 45-mile condensate pipeline and add compressor stations in Noble, Belmont, and Guernsey counties…
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American Energy Partners | Belmont County | Energy Companies | Energy Services | Harrison County | Industrywide Issues | Jefferson County (OH) | Marshall County | Monroe County | Ohio | Pipelines | Regency Energy Partners | Utica Shale | West Virginia

McClendon Invests in New Utica Pipeline Project, JV with Regency
August 8, 2014August 8, 2014

It was only in June, less than two months ago, that MDN brought you the news that it sure seems like Aubrey McClendon is building a new company that looks a lot like the first company he built, Chesapeake Energy (see Aubrey McClendon Gets Back into the Midstream Business). McClendon is not only high on Utica and Marcellus drilling with his newly formed American Energy Partners company, he’s also high on building the pipelines needed to conduct the gas out of the borehole. His new midstream division was set up to work on such projects. And less than two months later, we have the first of those projects. Yesterday McClendon’s new midstream division and Regency Energy Partners announced a joint venture to build the Utica Ohio River Project for $500 million…
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