Monroe County

Eclipse Resources | Energy Companies | Flat Rock Development | Lease & Royalty Payments | Monroe County | Ohio

Wayne National Forest 2nd Lease Auction – List of Winners
March 30, 2017March 30, 2017

Last week the Bureau of Land Management (BLM) auctioned off a second round of properties located in Wayne National Forest (WNF), in Ohio (see 2nd Wayne Natl Forest Lease Sale Hauls in $5.2M, Double Expectations). The first such auction was for 719 acres (see BLM Auction Leases 17 Parcels, 719 Acres in OH Wayne Natl Forest). The winners of the 17 parcels in the first auction were Eclipse Resources, Flat Rock Development, Gulfport Energy and Petrogas. This most recent (and second) auction was for 20 parcels totaling 1,180 acres. The winners this time were Eclipse Resources, Flat Rock Development, and private investor Philip White. In fact, this second auction was pretty much the Eclipse Resources show. Eclipse paid $3.5 million and took 987 of the 1,180 acres…
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Lease & Royalty Payments | Monroe County | Ohio

2nd Wayne Natl Forest Lease Sale Hauls in $5.2M, Double Expectations
March 24, 2017March 24, 2017

After 10 loooooong years of waiting, the Bureau of Land Management (BLM) finally auctioned its first round of property leases for shale drilling in Wayne National Forest (WNF)–located in Ohio (see BLM Auction Leases 17 Parcels, 719 Acres in OH Wayne Natl Forest). The BLM plan was to auction 33 parcels totaling 1,600 acres. As it turns out, only 17 parcels totally 719 acres actually got auctioned. At the last minute the BLM withdrew 881 acres (16 parcels) because there are remaining issues with ownership title of the mineral rights. The 719 acres was all leased by noon and brought bids ranging from $2,000 to $5,000 per acre. Yesterday the second round of properties in WNF were auctioned–an additional 1,180 acres. BLM was hoping to to get at least $2 million from the auction. They got $5.2 million! The lowest price was for a 5-acre plot that sold for $1,002 per acre (total $5,010). The highest price was an eye-popping $10,001/acre for 39.68 acres (total $396,840). Yikes! Between the first and second auctions, 1,840 acres have been auctioned for a total of $6.9 million. Up to 40,000 acres total may, at some point, be auctioned. The next auction is scheduled for June 22. Here’s what we know about the auction that closed yesterday (we have a list of the properties auctioned and the winning bids)…
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Electrical Generation | Industrywide Issues | Monroe County | Ohio

Gas-Fired Plant (& Cracker?) Coming to Center Port Terminal in OH
March 23, 2017March 23, 2017

[NOTE: In the original version of this post, MDN incorrectly referred to the name as Center Point Terminal. It is, in fact, Center Port Terminal. Sorry!] One of MDN’s sharp subscribers emailed us with an exciting tip. On March 27 a public meeting will be held in Woodsfield, Ohio (Monroe County) about building a 485 megawatt gas-fired power plant–to be built on twenty acres of the 200 acre former Ormet site, now known as Center Port Terminal. That much we have been able to confirm. Our tipster also speculated this new power plant may be used to provide electricity to an ethane cracker. We have not, so far, been able to verify the cracker rumor. Here is what we do, and don’t, know about this new power plant project coming in Monroe County…
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Monroe County | Ohio

BLM Leasing Another 1,186 Acres in Wayne Natl Forest on March 23
January 17, 2017January 17, 2017

In December the Bureau of Land Management (BLM) proceeded with an online auction for BLM-controlled land in Ohio’s Wayne National Forest (see BLM Auction Leases 17 Parcels, 719 Acres in OH Wayne Natl Forest). The BLM plan was to auction 33 parcels totaling 1,600 acres. As it turns out, only 17 parcels totaling 719 acres actually got auctioned. At the last minute the BLM withdrew 881 acres (16 parcels) because there are remaining issues with ownership title of the mineral rights. It appears the title issues are now cleared up, plus some. The BLM announced last week they have another 1,186 acres in WNF that will go up for auction on March 23. Good news indeed! All of the new acreage is located in the prolific Monroe County, OH–meaning drillers can finally unlock some of the potential that has been denied to them because of the patchwork of BLM-controlled land that exists in between privately-owned land. Now drillers can form more units and get back to work…
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Energy Companies | Lease & Royalty Payments | Monroe County | Ohio | Petrogas | Washington County (OH)

Close-up on Petrogas Co: A New Player in the Ohio Utica?
January 6, 2017January 6, 2017

A couple of weeks ago four companies won bids on 17 parcels totaling 719 acres of federal land (for Utica Shale drilling) in the Ohio Wayne National Forest (see OH Wayne National Forest – List of Auction Winners). We recognized three of the winners: Eclipse Resources, Flat Rock Development, and Gulfport Energy. But we didn’t recognize the fourth as a Utica driller: Petrogas Company. Then we spotted a couple of press releases from Petrogas touting their first “successfully purchased two oil and gas leases in the Eastern States” with the added statement they are “looking forward to exploring the potential in this area.” Petrogas says in its press release that it is an exploration and production company (E&P, or what we call a driller) “focused on the acquisition of properties in areas with significant oil reserves and drilling potential.” So we began to dig. First, the land Petrogas leased in WNF amounts to a grand total of 3.7 acres, for which they paid the princely sum of $2,705.50. No, they won’t be drilling on 3.7 acres any time soon. Then we further dug and discovered that Petrogas is a Chinese-backed company with an office in Houston, TX, that started life as an entertainment company and is operated by what appears to be one guy. A guy who apparently knows how to publish press releases that sound big and and important…
Read More “Close-up on Petrogas Co: A New Player in the Ohio Utica?”
Eclipse Resources | Energy Companies | Monroe County | Ohio

Mgmt Musical Chairs at Eclipse, “Gen-3” Utica Wells Go Online
January 4, 2017January 4, 2017

Two members of Eclipse Resources’ top management team are playing musical chairs as part of the company’s plan to “accelerate growth” in 2017. Tom Liberatore, currently executive VP and COO is dropping the COO title and becoming executive VP of corporate development and geosciences. Meanwhile, Oleg Tolmachev, currently senior VP of drilling and completions is becoming executive VP and COO. Tolmachev’s star is clearly rising and he is now the man running the Utica/Marcellus drilling program for the company. In the same press release, the company said it has now completed and brought online five Utica wells in Monroe County, OH. The wells are the first dry gas Utica wells to use Eclipse’s new “Gen-3” completion design. What is Gen-3? And what does the musical chairs at Eclipse have to do with Gen-3?…
Read More “Mgmt Musical Chairs at Eclipse, “Gen-3” Utica Wells Go Online”
Eclipse Resources | Energy Companies | Monroe County | Noble County | Ohio

Eclipse Sells 9,900 “Non-Core” Acres in OH for $6,444/Acre
December 20, 2016December 20, 2016

Eclipse Resources, a Marcellus/Utica pure play driller headquartered in State College, PA that drills mostly in Ohio, announced yesterday they sold 9,900 net acres in eastern Noble County and western Monroe County, OH for $63.8 million to an undisclosed buyer. That works out to be $6,444 per acre. The assets are in areas that are (currently) undeveloped, according to the company, and not in the “core” of where Eclipse wants to drill. Here’s the company announcement…
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Energy Companies | Gulfport Energy | Monroe County | Ohio

Gulfport Picks Up 12,600 Utica Acres in Monroe County, OH for $87M
December 8, 2016December 7, 2016

Gulfport Energy reports they have just snagged another 12,600 net undeveloped Utica acres located dry gas window of northern Monroe County, Ohio for $87 million. When you run the math, that works out to be $6,905 per acre–far less than the recent $10,000/acre prices we’ve seen. Half of the acreage is “held by production,” meaning wells have either been drilled or are already producing. Analysts figure the land, which is located next to land already leased by Gulfport, will yield something like 105 new wells for the company. Gulfport is head over heels in love with the Utica and plans, as we noted in November, to run an average of six drilling rigs in the Utica in 2017 (see Gulfport 3Q16 Fin. Update: $157M Loss, 6 Utica Rigs Coming in 2017). Oh, who’s the seller? Gulfport doesn’t say, but we do have a thought…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Monroe County | Ohio | Statewide OH

Enviro Nazis File Petition Against Drilling in Wayne Natl Forest
November 30, 2016November 30, 2016

Wayne National Forest

It’s been 10 long years, but finally in October the Bureau of Land Management (BLM) posted a lease sale auction for 33 parcels in Ohio’s Wayne National Forest (see BLM Launches Auction to Lease Wayne National Forest for Fracking). Although there are some 18,000 acres under consideration for leasing by the BLM in WNF, this first batch amounts to about 1,600 acres–most of it in Monroe County, OH. Monroe is a prime location for Utica Shale drilling. WNF is the only national forest in Ohio and portions of it are found in Athens, Gallia, Hocking, Jackson, Monroe, Morgan, Noble, Lawrence, Perry, Scioto, Vinton, and Washington counties. WNF is a “patchwork” of public land scattered among private land. Some 60% of the mineral rights below WNF are privately owned. Those mineral rights owners have been denied the use of their property rights for a decade–an absolute crime. But Constitutional property rights mean nothing to miseducated liberals who love to protest in faddish “causes”–like banning drilling in WNF. A group of these miseducated miscreants recently presented a petition with 92,000 signatures on it (so they claim) to officials of the BLM in Washington, DC–asking the BLM to stop the lease sale and slam the door on drilling in WNF. Are all 92,000 signatures from Ohio residents who might, theoretically, be impacted by shale drilling in WNF? You can bet your bottom dollar most of the signatures are from people who live outside Ohio…
Read More “Enviro Nazis File Petition Against Drilling in Wayne Natl Forest”
Industrywide Issues | Monroe County | Ohio | Trucking

Ohio’s Center Port Transload Terminal – Barging Triples
November 8, 2016November 8, 2016

52 barge docking, moorings, cranes and conveyors for NS Rail transloading – click for larger version

According to Center Port Terminal, McKees Rocks Harbor Services (MRHS) has put the “Port” back in Center Port. Center Port Terminal is the former Ormet Aluminum Plant site located on the shoreline of the Ohio River in Monroe County, OH. The plant closed its doors as an active aluminum plant in 2014 after Ohio regulators and Gov. John “foreigner hunter” Kasich failed to get high electric rates reduced for the plant, and refused to allow Ormet to burn coal to produce their own electricity until they could begin using natural gas to create electricity from gas wells drilled on the property (see Final Chapter of Ormet Plant Closing – Utica Could have Saved It). The new owner, Niagara Worldwide LLC, first tried to market the property, renamed Center Port Terminal, to Marcellus/Utica Shale drillers and oilfield services companies (see New Ormet Aluminum Plant Owner Shops Barge Facility to Shalers). The terminal has also been marketed as the perfect place to locate a natgas-fired electric plant (see Old Ormet Site in Monroe, OH Shopped as Power Plant Location). Earlier this year, the facility was marketed to manufacturing companies (see 3rd Time the Charm: OH Center Port Terminal Woos Manufacturers). One of the chief advantages of the facility is cheap transportation to/from on the Ohio River. Center Port has 52 barge slips. It’s also connected to rail lines and highways. MRHS opened “fleeting operations” at the facility and within 90 days barge traffic to the facility tripled. That’s good for everybody, including the Marcellus/Utica industry…
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Energy Services | Industrywide Issues | Monroe County | Mountaineer NGL Storage | NGLs | Ohio

Mountaineer NGL Storage Test in OH a Success, Construction in 2017
October 31, 2016October 31, 2016

In April of this year, Mountaineer NGL Storage announced an open season for a new underground NGL storage facility in Monroe County, Ohio, near Clarington, along the Ohio River (see New Company Announces Open Season for NGL Storage in Ohio Utica). Natural gas liquids (NGLs), including ethane, would be stored at the facility. It is a key, missing component in a plan to build at least one, and likely more than one ethane cracker plants in the region. Storage facility for both natural gas and NGLs is a critical part of natural gas infrastructure. Mountaineer recognized the fact that the Marcellus/Utica will need such a storage facility. A month after the open season, Mountaineer announced it was successful and that they would move forward with the project (see Mountaineer NGL Storage Open Season Successful, Development Begins). An important, initial step in building such a storage facility has now taken place. Mountaineer completed a test well in the salt formation–testing it for thickness. The test was a success. Construction is planned for the latter part of next year…
Read More “Mountaineer NGL Storage Test in OH a Success, Construction in 2017”
Belmont County | Energy Companies | Gulfport Energy | Lease & Royalty Payments | Monroe County | Ohio

Coal Co. Murray Energy Sells 5,900 OH Utica Acres – Who Bought?
October 27, 2016October 27, 2016

Yesterday Murray Energy, which operates coal mines in Ohio, Illinois, Kentucky, Utah, and West Virginia, announced it had sold the leases for 5,900 of the acres it owns in Belmont and Monroe counties (in eastern Ohio) to an unidentified shale driller for $63.6 million. That works out to be ~$10,800 per acre. According to Murray officials, the sale will allow the company to focus on its core activity–coal mining. The money will also help the company stay out of bankruptcy court. The sale, which is slated to close “in the coming weeks” doesn’t ID the buyer. But we have a guess as to who bought…
Read More “Coal Co. Murray Energy Sells 5,900 OH Utica Acres – Who Bought?”
Dominion Energy | Energy Services | Industrywide Issues | Marshall County | Monroe County | Ohio | Pipelines | Regulation | West Virginia

FERC Tells Dominion to Flip Switch on Clarington Expansion Project
October 27, 2016October 27, 2016

In June 2014 Dominion filed an application with the Federal Energy Regulatory Commission (FERC) to construct and operate new compression facilities at existing compressor stations in Marshall County, WV and Monroe County, OH, and certain other facilities, collectively called the Clarington Project (see Dominion Asks FERC for New Compressors in Upstate NY, WV). The Clarington project, costing a modest $76.5 million, will allow Dominion to provide 250,000 dekatherms (Dth) per day of firm transportation service for CNX Gas, otherwise known as CONSOL Energy. Last August, FERC approved Dominion’s request (see FERC Approves Dominion WV/OH Compressor Project, Rips Anti Group). FERC gave Dominion a year to complete the project, but Dominion filed a request in July requesting more time. FERC agreed and has extended the project completion date an extra year (see FERC Grants Dominion Clarington Project a 1-Year Extension). Looks like Dominion didn’t need the extra time after all. Yesterday FERC granted Dominion permission to begin service for the expansion project…
Read More “FERC Tells Dominion to Flip Switch on Clarington Expansion Project”
Hydraulic Fracturing | Industrywide Issues | Lease & Royalty Payments | Monroe County | Ohio | Regulation | Washington County (OH)

BLM Launches Auction to Lease Wayne National Forest for Fracking
October 19, 2016October 28, 2016

It’s been 10 looooooong years, but finally the Bureau of Land Management (BLM) has just posted a lease sale auction for 33 parcels in Ohio’s Wayne National Forest (WNF). Although there are some 18,000 acres under consideration for leasing by the BLM in WNF, this first batch amounts to about 1,600 acres–most of it in Monroe County, OH. Monroe is a prime location for Utica Shale drilling. WNF is the only national forest in Ohio and portions of it are found in Athens, Gallia, Hocking, Jackson, Monroe, Morgan, Noble, Lawrence, Perry, Scioto, Vinton, and Washington counties. WNF is a “patchwork” of public land scattered among private land. Some 60% of the mineral rights below WNF are privately owned. Those mineral rights owners have been denied the use of their property rights for a decade. The BLM controls drilling on federally-protected lands like WNF. Last November the BLM held a series of hearings about finally beginning to drill in WNF. With this auction, it appears that not only will public land get leased, but drilling on private land in WNF can go forward as well…
Read More “BLM Launches Auction to Lease Wayne National Forest for Fracking”
Energy Companies | Energy Services | EQT Corp | Equitrans/EQT Midstream | Industrywide Issues | Monroe County | Ohio | Pipelines | West Virginia | Wetzel County

FERC Tells Ohio Valley Connector Project to Open the Valves
September 30, 2016October 5, 2016

OVC Project – click for larger version

10/4/16 UPDATE: EQT Confirms the gas began flowing on Oct 1, the day after this post. See EQT’s statement below.

The Ohio Valley Connector (OVC) project is a proposed natural gas pipeline system approximately 37 miles long running from northwestern West Virginia into southeastern Ohio. Equitrans, a subsidiary of EQT Midstream which is itself a subsidiary of EQT the driller, is building the pipeline. We reported in July 2014 that the project was green lighted. At that time, EQT CEO David Porges said the pipeline will interconnect with both the Rockies Express Pipeline and the Texas Eastern Pipeline and will provide about 1 billion cubic feet (Bcf) per day of capacity (see EQT Midstream: 2 Major Pipeline Projects Advance, 1 Doesn’t). In July 2015 we ran a story disclosing that the main customer for the new pipeline is one of EQT’s biggest competitors, Range Resources (see EQT Midstream Building $250 Million Pipeline – for Range Resources!). Fast forward to today. The pipeline’s project cost has gone up, to $415 million. But the really good news is that the pipeline is now built, and the Federal Energy Regulatory Commission (FERC) has just given EQT permission to turn it on…
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CONSOL Energy | Energy Companies | Monroe County | Ohio | Statewide OH

Why CONSOL Energy Chose Ohio Utica as Place to Restart Drilling
September 2, 2016September 2, 2016

In 2015 CONSOL Energy temporarily quit all new drilling activity. In July of this year, they said they would restart their drilling activities, targeting the Ohio Utica (see CONSOL Energy to Restart Drilling in August – Mainly in Utica). The drill bit is now chewing away. CONSOL, once a coal company, has been a huge driller in the Marcellus. Why did it change focus to the Utica? What, about the Utica, turned CONSOL’s head in that direction?…
Read More “Why CONSOL Energy Chose Ohio Utica as Place to Restart Drilling”