Antis File Lawsuit Challenging Ohio NGL/H2 Storage Hub Permits
Earlier this month MDN exclusively broke the news that earlier this year (slipping under the radar) the Ohio Department of Natural Resources (ODNR) issued permits to Powhatan Salt Company/Mountaineer NGL Storage for three planned solution mining wells in Monroe County (see OH Issues Permits to Build Salt Caverns for Mountaineer NGL/H2 Storage). The three salt caverns will store NGLs (natural gas liquids, mainly ethane) to potentially be used by ethane crackers including the Shell cracker near Pittsburgh and potentially a second ethane cracker proposed by PTT Global Chemical in Belmont County. The salt caverns can also be used to store hydrogen (H2). Virulent anti-fossil fuel groups filed a lawsuit on Tuesday challenging the ODNR permits.
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On August 30, the Ohio Department of Natural Resources (ODNR) issued permits to Powhatan Salt Company/Mountaineer NGL Storage for three planned solution mining wells in Monroe County. The three salt caverns will store NGLs (natural gas liquids, mainly ethane) to potentially be used by ethane crackers including the Shell cracker near Pittsburgh and potentially a second ethane cracker proposed by PTT Global Chemical in Belmont County. The salt caverns can also be used to store hydrogen (H2).
All three Marcellus/Utica states received permits to drill new shale wells last week. Pennsylvania issued 9 new permits, all but one of them for the same well pad in Greene County. Ohio issued 3 new permits, two on a single pad in Monroe County. And West Virginia issued just 1 new permit last week–to a company we had not previously heard of.
Over the years we’ve covered a number of stories about companies buying future royalty payments from landowners (and rights owners) for an upfront, one lump sum payment now. Normally the deals don’t disclose how much money changed hands for those upfront payments. We have some recent transactions from a newcomer to the Marcellus/Utica, a company willing to announce how much they paid to buy those rights, which caught our attention. We have financial details for a deal in the Marcellus, and details for a deal in the Utica to share with you. We have hard numbers for how much they paid to buy those royalty rights.
Last fall Mountaineer NGL Storage, a $500 million project in Monroe County, OH to build underground storage for ethane and other NGLs, asked Ohio regulators to cancel a key permit for the project (see 
Diversified Gas & Oil (DGO) owns close to 8 million acres of leases with some 60,000 (mostly) conventional oil and gas wells. Their focus has been to acquire quality production and cash flow–regardless of the well or commodity type (gas or oil)–in the Appalachian Basin. DGO currently owns over 400 Marcellus/Utica shale wells in their portfolio too. The company just added to their inventory of shale wells, closing on the purchase of five Utica Shale wells in Monroe County, OH. The purchase price for all five? $8.4 million.
Last fall Mountaineer NGL Storage, a $500 million project in Monroe County to build underground storage for ethane and other NGLs, asked Ohio to cancel a key permit for the project (see