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Chesapeake Buys 28K Acres of OH Leases from Everflow

MDN reported on Monday that Chesapeake Energy had purchased the rights to leases and had transferred ownership of those leases for more than 14,000 acres from two counties in Ohio—Trumbull and Mahoning (see this MDN story). We now know that’s only half of the number of acres they transferred. We now also know who they bought the rights from and how much they paid for those rights.

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Chesapeake Transfers more than 14K Leases in 2 Ohio Counties

An excellent story in today’s Youngstown (OH) Business Journal covers the massive number of lease transfers taking place in Ohio—specifically in Trumbull and Mahoning counties. At the end of June, both counties received an order to transfer more than 7,000 existing oil and gas leases to a single lease for Chesapeake Energy—and that’s in each county!

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‘Home Rule’ Taking Root in NY, PA and now in OH Too

The so-called “home rule” movement grants power to local town boards to ban hydraulic fracturing either by enacting laws or by the use of zoning. Two court cases challenging home rule in New York are winding their way through the system now. Home rule is also a controversy in Pennsylvania with seven townships taking the state to court over the new Act 13 provision that strips away most of their zoning rights when it comes to oil and gas drilling in favor of state zoning rules.

Home rule is now alive in Ohio too—in Beaver Township (Mahoning County). A group of Beaver Township residents are collecting signatures for a November ballot that would make Beaver a “home rule” township. And in so doing, would grant them the power to shut down drilling.

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OH High School First to Offer 2-Year O&G Tech Course

In what is believed to be the first of its kind for Ohio, high school students at Marlington High School (Alliance, OH) can take a two-year course in oil and gas technologies starting this fall. The new course will prepare students with the skills they need to work in the rapidly growing shale drilling industry.

From a recent press article:

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Salem, OH to Sign Lease Deal with Chesapeake for $7K+20%

The City of Salem, Ohio, which straddles both Columbiana and Mahoning counties, is due to sign a three-year oil and gas lease with Chesapeake Energy today for 381 acres of land owned by the city.

The deal calls for an initial $3,500 per acre signing bonus and 20% royalties, with an additional $3,500 per acre for a three-year extension. All told, it will be $7,000 per acre for a six-year lease—one of the highest amounts MDN has seen (if the three-year extension is exercised).

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CONSOL’s Plans for Ohio Utica Shale Have Begun

CONSOL Energy’s drilling in Ohio’s Utica Shale is now under way and ramping up rapidly, according to CONSOL’s Harry Schurr who spoke Wednesday at a workshop on the campus of Kent State University. They’ve already drilled their first Utica well in Tuscarawas County, and they plan to drill 15 more this year. CONSOL also has a joint venture with Hess. Hess plans to drill six Utica wells this year.

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Industrial Complex near Columbiana, OH Gets Shale Makeover

The former National Refractories complex just outside Columbiana, OH is getting a shale gas makeover. Owner Jerry Stoneburner says the 300,000 square foot facility that sits on 100 acres will become both a shale gas wastewater treatment center and a transfer point to load railroad cars with crude oil and condensate being produced in the Marcellus and Utica Shale.

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ODNR Finds Youngstown Injection Well Caused Earthquakes

Youngstown earthquake locationsA preliminary report released by the Ohio Department of Natural Resources (ODNR) on Friday concludes that a dozen earthquakes in northeastern Ohio were “almost certainly” induced by injection of gas-drilling wastewater (a full copy of the report is embedded below). The evidence is overwhelming: The earthquakes did not begin until three months after the injection well went online; the quakes were all clustered around the well bore; and a new fault has been discovered in the bedrock where the wastewater was being injected. Taken together, the ODNR is as sure as it can get that the injection well was causing the earthquakes.

Therefore, the ODNR has issued new regulations for injection wells, what state officials are calling among the toughest rules in the nation. From the ODNR press release:

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Drilling Heats Up with New Permits in Ohio’s Utica Shale

Although new drilling activity is lessening in the Marcellus, it’s red hot in the Utica Shale. The Ohio Department of Natural Resources (ODNR) just issued another permit to Chesapeake to drill a horizontal well in Columbiana County, Chesapeake’s 18th permit in Columbiana. In Mahoning County, ODNR granted a permit for a new well in Goshen Township, making it seven wells for that township so far. Chesapeake holds 49 permits in Carroll County with 10 wells waiting to be fracked.

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New Frack Wastewater Recycling Plant Coming to Eastern OH

Officials in Mahoning County, Ohio are negotiating with an unnamed company to build a frack water recycling facility in the county. The new facility will treat wastewater, recycling it to be reused in fracking operations. As a bonus, the sewage treatment plant in Mahoning will sell treated water to the new plant, a new revenue stream for the county.

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Youngstown Earthquake Update

John Armbruster, a seismologist from Columbia University’s Lamont-Doherty Earth Observatory in Palisades, NY is one of the researchers investigating a string of 11 earthquakes near Youngstown, OH, the most recent of which occurred on New Year’s Eve in the afternoon. Armbruster says a local injection well, which injects wastewater from shale gas drilling under high pressure deep into the ground, is “almost certainly” the cause of the earthquakes.

As MDN pointed out yesterday, injection wells are not fracked gas wells (see this MDN story). But some politicians keep trying to tie the two together. A spokesman for Ohio Gov. John Kasich, Rob Nichols, does a great job in pointing out the difference:

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Youngstown Earthquake and Fracking: Is There a Connection?

A 4.0 earthquake in the Youngstown, OH area on Saturday afternoon is thought to be connected to a local injection well. MDN has chronicled previous episodes of earthquakes thought to be connected with injection wells in Arkansas and Texas. Saturday’s earthquake was the 11th in the Youngstown area in recent months, and by far the strongest. The theory is that fluid, which is pumped nearly two miles underground under very high pressure, had migrated to a nearby fault and is causing the fault to shift.

Until it can be determined what, exactly, is happening, all further injection of fluid into the well has been stopped. In fact, fluid injection had stopped a day earlier, on Friday, before Saturday’s quake. But pressure in the well would remain high for a period of time, likely leading to the 4.0 quake.

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