Carroll County | Energy Services | Energy Transfer Partners | Industrywide Issues | Ohio | Pipelines | Regulation
FERC’s Dick Glick Shakes Down Rover Pipe for Past Settled Sins
Really Dick? This is what you spend your time on these days? Digging up long-addressed and settled and resolved actions (from SIX YEARS ago)–old infractions by pipeline companies like Energy Transfer’s Rover Pipeline. Claiming you will “not look the other way” when there’s a violation (a violation that happened long before you were even a FERC Commissioner). Whoa, you’re such a big man. So self-righteous. Glick is now digging up old pipeline sins to parade around once again. It’s like a dog that buried roadkill a year ago and recently rediscovered the spot, dug it up, and now drags the old rotting carcass around the yard for all to see, all proud of himself.
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Ascent Resources has listed for sale two “packages” of its assets in the core of the Utica Shale in Ohio. One package contains a non-operated interest in 68 wells and 1,362 net leasehold acres. The second package includes a royalty interest in 10 wells and 106 net revenue interest acres. Details on where the assets are located (which counties) and other details are in the listing below.
Last week Pennsylvania issued a paltry 3 new shale well drilling permits (lowest we’ve seen in months), Ohio issued a single new permit, and West Virginia issued 5 new shale well permits. All 3 PA permits were issued in Greene County. The OH permit was issued in Carroll County (bit of a surprise). And all 5 WV permits were issued in Tyler County.
We’re always delighted to share news of a “new” pipeline project in the Marcellus/Utica. This particular project from Dominion Energy, tiny compared to most, its unusual in that it will flow natural gas from western PA into Ohio to feed a new natural gas-fired electric plant. You don’t often see gas from PA flow to Ohio for local use. Kind of a “man bites dog” story.
The Federal Energy Regulatory Commission (FERC) game of hardball with Energy Transfer over the Rover Pipeline has finally paid off. For months FERC has refused to allow four Rover laterals–feeder pipelines to shuttle gas from where it’s produced into the main Rover pipeline–to start up (see 
In May 2015, Rover purchased a house in Carroll County, OH, located near where the pipeline, and a compressor station for that pipeline, is due to run. Rover bought the house to use for offices for several Rover affiliate companies. After buying it, Rover determined the house was “ill-suited for its intended purpose” and decided to demolish it. Problem was/is, that house was under consideration to be added to the National Register of Historic Places. The house was not yet on the list of Historic Places, but was on a list of properties under consideration. Their action in demolishing the house landed Rover in hot water with the Federal Energy Regulatory Commission (see 
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…
Rex Energy, a driller focused mainly on the Marcellus/Utica (headquartered in State College, PA), issued their third quarter 2017 update earlier this week. The company continues to bleed money, losing $47 million in 3Q17, versus losing $55 million in 3Q16. An improvement, but showing a profit would be a whole lot better than a loss at this point. Highlights for 3Q17: Rex placed the four-well Wilson pad into sales (Butler County, PA) with initial 24-hour average sales rate per well of ~10.9 million cubic feet equivalent per day (MMcfe/d). Total production averaged 182 MMcfe/d–with 38% of that liquids production. Rex drills in both western PA and eastern OH. Rex officials said they are currently working on 10 new wells in Carroll County, OH that will go online in 2018. So far Rex has drilled 30 wells in the Buckeye State. Below is the full 3Q17 update, along with excerpts from the analyst phone call and the latest Rex slide deck…
Fire it up! On Friday, the Federal Energy Regulatory Commission (FERC) granted Energy Transfer permission to fire up the three units that make up the Carroll County Compressor Station (called Compressor Station 1) that helps compress and flow natural gas through the mighty Rover Pipeline. According to the letter from FERC authorizing the startup of the compressor station, FERC is authorizing “partial” service to commence. Since ET wanted to start the station on Friday, we expect the plant is by now up and running. The effect will be dramatic. According to stats released by NGI (Natural Gas Intelligence), which has an excellent Rover Tracker application on their website (
We always find it sad when a company builds a manufacturing plant in another country, closing one here at home (and firing the people who worked there). Such is the case in Carroll County, OH. Automotive supplier dlhBowles recently opened a 280,000-square-foot assembly plant in Reynosa, Mexico–and closed a plant in Carroll County. The company manufactures things like hoses and nozzles for windshield washer systems. Reynosa says closing the Carroll plant and laying off the 94 people who worked there is not “directly related” to opening the Mexico plant. Right. But officials in Carroll aren’t bitter. They believe the Utica Shale and various pipelines running through the area will result in new plastics companies (and other types of companies in the downstream) locating in Carroll. Buh bye Reynosa. Hello new manufacturers with the foresight and intelligence to set up shop in red-hot eastern Ohio…