Carroll County

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    Rex Energy 3Q17: $47M Loss, 10 More Utica Wells on the Way

    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…
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    Rover Pipe Nearly Doubles Flow with Addition of Carroll, OH Compressor

    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 (see Friday’s version here), Rover has been flowing around 680 million cubic feet per day (MMcf/d) of Utica/Marcellus gas. With the addition of the Carroll County compressor station, that number will nearly double–to 1.2 billion cubic feet per day (Bcf/d). Cool! Here’s the details of how Rover’s capacity just nearly doubled with the addition of a single compressor station…
    Read More “Rover Pipe Nearly Doubles Flow with Addition of Carroll, OH Compressor”

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    Carroll County Says Forget dlhBowles, Utica Will Replace Them

    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…
    Read More “Carroll County Says Forget dlhBowles, Utica Will Replace Them”

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    Rex Energy 2Q17: Sells Waterline, Deal with BP to Market NGLs

    Earlier this week Rex Energy issued its second quarter 2017 update. During 2Q17 Rex drilled 2, completed 6 and put online into sales 4 wells in their Butler County, PA acreage. They also began drilling a new 4-well pad in Butler. In the company’s Carroll County, OH acreage, Rex drilled a 3 wells on a single pad. The big news from the update was a deal with BP to market Rex’s natural gas liquids (or C3+) production, and the sale of a water pipeline owned by Rex in Salineville, OH for $8 million. Rex’s finances didn’t do so well. In 2Q17 the company lost $10 million versus making a $16 million profit in 2Q16. Production picked up a bit, from 173.4 million cubic feet equivalent per day (MMcfe/d) in 1Q17 to 177.1 MMcfe/d in 2Q17. The official statement said 2Q17 production was “constrained” during the quarter “due to unplanned maintenance downtime in the company’s midstream services.” Which means they had hoped it would have been higher than 177.1 MMcfe/d. Looking forward to 3Q17 Rex says they plan to bring 12 new wells in Butler County online…
    Read More “Rex Energy 2Q17: Sells Waterline, Deal with BP to Market NGLs”

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    Rover Still in Hot Water w/FERC Over Demolishing This Old House

    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 Rover Pipeline in Hot Water Over Demolishing Historic House in OH). FERC said Rover should have reported their decision to demolish the house. Rover had to pay a “fine” of $2.3 million “to a fund administered by the Ohio History Connection Foundation and the State Historic Preservation Office” (see Rover Pipeline Paying $2.3M for Knocking Down Historic OH House). The thing that rankles is that the Ohio History Connection Foundation and its Ohio State Historic Preservation Office is a PRIVATE nonprofit organization–it’s not even a true state agency! At any rate, Rover paid their hush money, so that’s the end of it, right? Wrong. Last week FERC issued a “Staff Notice of Alleged Violations” related to this old house. The notice says Rover “did not fully and forthrightly disclose all relevant information.” FERC also said, “Rover falsely promised it would avoid adverse effects to a historic resource that it was simultaneously working to purchase and destroy.” In other words, we’re not done with you yet…
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    Rex Energy 1Q17 Full Update – Swings to Black, Drilling Picks Up

    In April, Rex Energy, a driller focused mainly on the Marcellus/Utica (headquartered in State College, PA), issued an operational update (see Rex Energy 1Q17: Production Drops 8.5%). Earlier this week the company issued a full 1Q17 update. What does it show? Rex swung from losing $62 million in 1Q16 to making $2.1 million in 1Q17–quite a turnaround! This update also includes a fuller look at the drilling that did happen in 1Q17, and what the company plans for the balance of 2017. In Rex’s Legacy Butler Operated Area (Butler County, PA), the company has begun drilling 4 wells on a single pad and plans to have them completed and online in 3Q17. In Rex’s Moraine East Area (also Butler County) the company drilled 7 gross (3.3 net) wells and completed 4 gross (1.4 net) wells in 1Q17. In addition, Rex had 12 gross (5.5 net) wells awaiting completion at the end of 1Q17. In Rex’s Warrior North Area (Carroll County, OH), the company plans to drill 12 gross (10.2 net) wells by the end of 2017, with most of them not going online until 2018. Below is the full update, along with select portions of the earnings call where Rex’s CEO shares some interesting insights… Read More “Rex Energy 1Q17 Full Update – Swings to Black, Drilling Picks Up”

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    Rover Pipeline Paying $2.3M for Knocking Down Historic OH House

    On Feb. 3, the Federal Energy Regulatory Commission (FERC) gave its final approval to Energy Transfer’s Rover Pipeline project–a $3.7 billion, 711-mile Marcellus/Utica natural gas pipeline that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada (see ET Rover Pipeline Gets Final Approval by FERC). Normally when FERC approves such a project, they issue a “blanket certificate” that allows the pipeline company to move forward with construction without getting “Mother May I?” permission for every step along the way. But FERC denied ET a blanket certificate for Rover. Why? Because Rover demolished a house that was under consideration for a national registry of historic homes, without first telling FERC (see Rover Pipeline in Hot Water Over Demolishing Historic House in OH). 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. FERC says Rover should have reported their decision to demolish the house, which has Rover in hot water with FERC and the Advisory Council on Historic Preservation. That’s the last we had heard about the “historic” house–until we spotted an article that makes reference to a deal Rover agreed to, to pay out $2.3 million “to a fund administered by the Ohio History Connection Foundation and the State Historic Preservation Office. A total of $1 million is for preservation work in the 18 counties crossed by the pipeline. The rest of the money will be used for projects across the state.” So Rover didn’t pay a fine. Instead, they paid hush money. A shakedown, with money going to a PRIVATE nonprofit organization…
    Read More “Rover Pipeline Paying $2.3M for Knocking Down Historic OH House”

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    Rover Pipeline Challenges FERC re Demolishing “Historic” House

    On Feb. 3, the Federal Energy Regulatory Commission (FERC) gave its final approval to Energy Transfer’s Rover Pipeline project–a $3.7 billion, 711-mile Marcellus/Utica natural gas pipeline that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada (see ET Rover Pipeline Gets Final Approval by FERC). Normally when FERC approves such a project, they issue a “blanket certificate” that allows the pipeline company to move forward with construction without getting “Mother May I?” permission for every step along the way. But FERC denied ET a blanket certificate for Rover. Why? Because Rover demolished a house that was under consideration for a national registry of historic homes, without first telling FERC (see Rover Pipeline in Hot Water Over Demolishing Historic House in OH). 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. FERC says Rover should have reported their decision to demolish the house, which has Rover in hot water with FERC and the Advisory Council on Historic Preservation. That’s why FERC didn’t issue a blanket certificate for construction of Rover. So ET and Rover have now filed for a rehearing, claiming FERC erred in not granting the blanket certificate…
    Read More “Rover Pipeline Challenges FERC re Demolishing “Historic” House”

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    Rover Pipeline in Hot Water Over Demolishing Historic House in OH

    taken to the woodshedFERC (the Federal Energy Regulatory Commission) is not happy with Energy Transfer and their Rover Pipeline. There are two major pipeline projects planned for Ohio: NEXUS and Rover. NEXUS got some FERC love today (see today’s lead story). Rover, on the other hand, is getting the cold shoulder from FERC, from a self-inflicted wound. Let us explain. As a reminder, Rover (an Energy Transfer project) is a $3.7 billion, 711-mile Marcellus/Utica natural gas pipeline that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada. The short version of what happened is that 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, they determined it was “ill-suited for its intended purpose” and decided to demolish the house. 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. Rover should have reported their decision to demolish the house to FERC but didn’t, which has Rover in hot water with FERC and the Advisory Council on Historic Preservation. Will Rover’s action kill the project? No. Will it slow down Rover and end up costing the company boatloads of money? Most likely, although Rover disputes that interpretation of events…
    Read More “Rover Pipeline in Hot Water Over Demolishing Historic House in OH”

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    Crews Work Around the Clock on Carroll County Gas-Fired Elec Plant

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    Carroll County Energy power plant – artist rendering

    In July 2013 MDN brought you news that Carroll County Energy in Carroll County, OH–a subsidiary of Advanced Power Services–would spend $800 million to build a new 700-megawatt natural gas electric generating plant in the county to be fed by Utica Shale gas (see New NatGas Powered Electric Plant Coming to Carroll County, OH). It took a while, but in July 2015, two years later, officials held the official ground-breaking ceremony for the plant (see $800M Utica Gas-Fired Electric Plant Breaks Ground in Carroll Cnty). What about since then? Today crews are “working around the clock” on the plant. Here’s an update on yet another new natgas-fired electric plant getting built in the Utica/Marcellus…
    Read More “Crews Work Around the Clock on Carroll County Gas-Fired Elec Plant”

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    Cornerstone Pipeline Slightly Delayed, Construction Begins in May

    In the middle of March MDN brought you the news that Marathon Petroleum was saying they would begin construction on the Cornerstone Pipeline “in the next several weeks”–meaning by the beginning of April (see Cornerstone Liquids Pipeline Set to Begin Construction in E Ohio). The timeline has been moved back a month. Marathon officials are now saying construction won’t begin until May. Cornerstone is a $250 million, 50-mile liquids pipeline being built by Marathon from the MarkWest cryogenic processing plant in Cadiz (Harrison County, now owned by Marathon), northwest connecting to M3’s fractionator plant in Scio (also in Harrison County) and M3’s cryogenic processing plant in Leesville (Carroll County) before terminating and connecting to Marathon’s refinery in Canton, OH (see Marathon Petroleum’s Newly Announced “Cornerstone” Utica Pipeline). The pipeline will carry, at various times, crude oil, condensate and natural gasoline. No reason was given for the delay…
    Read More “Cornerstone Pipeline Slightly Delayed, Construction Begins in May”

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    Cornerstone Liquids Pipeline Set to Begin Construction in E Ohio

    The Cornerstone Pipeline, announced at the end of 2013, is a 50-mile liquids pipeline being built by Marathon Petroleum from the MarkWest cryogenic processing plant in Cadiz (Harrison County), OH northwest connecting to M3’s fractionator plant in Scio (also in Harrison County) and M3’s cryogenic processing plant in Leesville (Carroll County) before terminating and connecting to Marathon’s refinery in Canton, OH (see Marathon Petroleum’s Newly Announced “Cornerstone” Utica Pipeline). The pipeline will carry, at various times, crude oil, condensate and natural gasoline. Last fall Price Gregory, the company hired to build the Cornerstone, advertised for 400 workers (see Price Gregory Hiring 400 People in OH to Build Cornerstone Pipeline). Seems like it’s taken a long time, but construction of the pipeline is set to begin “in the next several weeks”…
    Read More “Cornerstone Liquids Pipeline Set to Begin Construction in E Ohio”

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    Chorus Grows Louder for U of Cinci to Release Fracking Study

    The chorus is getting louder for the University of Cincinnati to release the results from a detailed study of water wells in Carroll County, OH undertaken by researchers at the university. We previously told you that the lead researcher shared some high level results from the study, and those results show that fracking in areas where there are water wells doesn’t affect those wells (see Antis Not Happy with Results of OH Fracking Study They Funded). Two anti-drilling groups were the primary funders of the study–Deer Creek Foundation in St. Louis and the Alice Weston foundation from Cincinnati. The two groups immediately cut their funding when they heard results they believe they didn’t pay for (see Anti Groups Abruptly Cut Funding for OH Fracking Study). But here’s the thing: They were not the only funders. The researchers also accepted public money–an $85,714 grant from the Ohio Board or Regents and the use of a spectrometer purchased through a $400,000 grant from the National Science Foundation. That’s public money–and the research is public research that should be released immediately. U.S. Andy Thompson, R-Marrietta, and the U.S. Chamber of Commerce are now calling on the university to release the study. Below we have their calls for the university to cough up the research, along with comments from a researcher involved with the study…
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    Stayin’ Alive: Rex Energy $175M JV to Keep Drilling in PA & OH

    Rex Energy, a relatively small driller that drills almost exclusively in the Marcellus/Utica and with headquarters in State College, PA, has a new investor/partner. Drillers across the country and doing everything they can to stay in business with the bottom dropping out of prices they receive for what they produce. Rex is getting $175 million from investment firm Benefit Street Partners to help drill up to 58 new wells in Rex’s Moraine East area (Butler County, PA) and Warrior North area (Carroll County, OH). In return for investing, Benefit Street Partners will receive ownership of anywhere from 15% to 65% in the wells they help fund. Below are the details for how Rex is stayin’ alive…
    Read More “Stayin’ Alive: Rex Energy $175M JV to Keep Drilling in PA & OH”

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    Antis Not Happy with Results of OH Fracking Study They Funded

    Researchers from the University of Cincinnati have been studying fracking and its potential affects on water wells in five Ohio counties for the past three years. The lead researcher, Dr. Amy Townsend-Small, shared the results at a recent meeting of the anti-drilling Carroll Concerned Citizens. She said, “The good news is that our study did not document that fracking was directly linked to water contamination.” Oh oh. That’s NOT good news for antis–and frankly, they didn’t like her telling them the truth of what her study found. Townsend-Small also said this, “I’m really sad to say this but some of our funders, the groups that had given us funding in the past, were a little disappointed in our results.” You can be sure that any future funding for studies Townsend-Small wants to make, at least from radical environmentalists, will be nonexistent. She had the temerity to tell the truth–to the people who hired her to not tell the truth. That takes courage…
    Read More “Antis Not Happy with Results of OH Fracking Study They Funded”

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    Ohio Commission Rules in Favor of Rex Energy in Forced Pooling Case

    forced poolingLast Thursday the Ohio Oil and Gas Commission issued its first order addressing the issue of forced pooling. The Commission upheld a forced pooling order against Ohio landowner Gary Teeter Trust (Ronald Roudeush is the trustee of the trust) by reaffirming that Ohio’s pooling and unitization provisions work to protect landowners–even those landowners like Roudeush who prefer not to be part of a drilling unit–by fairly compensating them. Rex Energy has leased land around the Teeter Trust (in Carroll County, OH) and sought to include 71 acres of the Teeter Trust property in a drilling unit, which Roudeush objected to and appealed. We have a copy of the decision below along with a further explanation of the case from the legal beagles at the Vorys law firm (the firm representing Rex Energy in the case)…
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