Ohio

  • | | |

    Trumbull Residents Want Extra 60 Days to Fight 3 Injection Wells

    Last Friday MDN told you about three proposed new injection wells planned for the Town of Brookfield, in Trumbull County, OH (see 3 More Injection Wells Coming to Trumbull County, OH). Highland Field Services recently brought two new injection wells online in Brookfield, and now wants to build three more wells in close proximity to the existing two. Highland recently published notices in area newspapers eliciting public comments–a step required under law. Public comments will be accepted until Dec. 25. However, some residents in the area (and likely a number of antis) are complaining that’s not enough time. They want the Ohio Dept. of Natural Resources (ODNR) to extend the public comment period by an extra 60 days. They also want at least one public hearing (i.e. circus freak show) in order to get in front of cameras and microphones to make a scene. The update below seems to say the existing two Highland injection wells are still under construction. We believed (perhaps incorrectly) the two were already done and running. Comments by unnamed “opponents” appear to indicate they are still lobbying ODNR to prevent the two already-permitted Highland wells (now under construction) from actually going online–to say nothing of approving another three…
    Read More “Trumbull Residents Want Extra 60 Days to Fight 3 Injection Wells”

  • | | | | | |

    FERC Gives Rover Phase 1B Permission to Begin Service, 1.7 Bcf/d

    Energy Transfer Partners (ET) announced on Friday that the Federal Energy Regulatory Commission (FERC) has granted ET permission to bring Rover Pipeline Phase 1B online–as of now. Building the mighty Rover, a $4.2 billion, 713-mile Utica/Marcellus natural gas pipeline that will stretch from PA, WV and eastern OH, through OH, into Michigan, and eventually on to Canada, has always been a two-phase project–Phase 1 and Phase 2. Phase 1 was further broken down into 1A and 1B. Phase 1A, which is the main line through most of Ohio, went online Sept. 1 (see Big Portion of Rover Pipeline Now Up & Running – Thru Most of Ohio). Phase 1B is the completion of several important “laterals” (or offshoot pipelines), along with compressor stations. This new segment will serve to feed more gas to the main Rover pipeline. It was Phase 1B that got approved on Friday, and is presumably now up and running as you read this. With the addition of Phase 1B, Rover now has the capacity to flow 1.7 billion cubic feet per day (Bcf/d) of natural gas. When Phase 2 is done in 1Q18, the pipeline’s full capacity of 3.25 Bcf/d will go online…
    Read More “FERC Gives Rover Phase 1B Permission to Begin Service, 1.7 Bcf/d”

  • | | | | | | | | |

    Leach XPress Starting Up Jan 1 – Marc/Utica Gas Heading to the Gulf!

    Last week Columbia Pipeline Group (now part of TransCanada) filed a request with the Federal Energy Regulatory Commission (FERC) to begin service on their Leach XPress pipeline. This is BIG and important news. In August 2014, MDN told you that Columbia Pipeline Group decided to move forward with investing $1.75 billion dollars for two new projects: Leach XPress and Rayne XPress (see Columbia Gas: $1.75B for 2 Projects to Send Marcellus Gas to Gulf). The Leach XPress project involves building ~160 miles of natural gas pipeline and compression facilities in southeastern Ohio and West Virginia’s northern panhandle, flowing 1.5 billion cubic feet (Bcf) of gas all the way to Leach, Kentucky (hence the name). Rayne XPress works hand in glove with Leach. There is an existing natgas pipeline from Leach, KY all the way to the Louisiana Gulf Coast, called Rayne. The pipeline is named for the location it flows to: Rayne, Louisiana. The Rayne Xpress project beefs up the Rayne pipeline with new compressor stations to add an additional 1 Bcf per day of capacity–Marcellus and Utica Shale gas capacity that will flow to the Gulf Coast. Rayne went online in early November (see FERC Clears 1 Bcf/d Rayne Xpress Pipe to Begin Service). When Leach goes online Jan. 1, 2018 (yes, we expect FERC will approve it), Marcellus/Utica gas will begin flowing along the combined pipelines all the way to the Gulf. That’s big news!…
    Read More “Leach XPress Starting Up Jan 1 – Marc/Utica Gas Heading to the Gulf!”

  • | | | | | |

    FERC Gives Rover OK to Resume All HDD Work, Incl. Tuscarawas River

    We have been waiting for this day for a LONG time. Yesterday the Federal Energy Regulatory Commission (FERC) issued an order to Rover Pipeline allowing Rover to restart all outstanding underground horizontal directional drilling (HDD) projects, including the location at Tuscarawas River. All Rover HDD projects were stopped back in April following a string of “inadvertent returns” (i.e. leaks) of drilling mud, the most serious being a ~2 million gallon spill at the Tuscarawas River HDD location (see Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp). Several months after stopping Rover HDD work, following investigations and corrective action, FERC slowly began to allow Rover to restart HDD work in some (not all) locations. There have been perhaps 4-5 tranches of “go ahead and restart HDD work at these couple of locations.” But until yesterday, Rover could not restart HDD at the location of the worst spill site, near the Tuscarawas River. With yesterday’s order, all sites are cleared. Craig “Captain Ahab” Butler, director of the Ohio EPA, blew a gasket. He’s still trying to harpoon the Rover “Moby Dick” Pipeline as it travels through Ohio. A few weeks ago Butler asked Rover (and FERC) to STOP all HDD work (see Ohio EPA Continues Vendetta Against Rover Pipe, Demands HDD Stop). A few days later Rover asked FERC for permission to restart the balance of their HDD work (see Rover Ignores Shrill Ohio EPA, Asks FERC to Continue HDD Drilling). On Monday, Rover sent a letter to Butler (and FERC) saying Ohio EPA “grossly mischaracterizes Rover’s activities.” Yesterday FERC very loudly and clearly ignored Butler and sided with Rover…
    Read More “FERC Gives Rover OK to Resume All HDD Work, Incl. Tuscarawas River”

  • | | |

    3 More Injection Wells Coming to Trumbull County, OH

    Back in June MDN shared some good news for Utica (and Marcellus) drillers: The Ohio Dept. of Natural Resources (ODNR) had approved permits for two new frack wastewater injection wells in Trumbull County, OH (see ODNR Approves Plans for 2 New Trumbull County Injection Wells). The injection wells are located in the town of Brookfield. ODNR attached a myriad of conditions and required all sorts of testing before the wells could go live but go live they did (we do not have confirmation those two wells are finished). Highland Field Services, the company that built (is building) those two wells, now wants to add another three to mix. Highland recently published notices in area newspapers eliciting public comments (required under law). Comments will be accepted until Dec. 25. Area residents are not happy about three more injection wells on top of the existing two…
    Read More “3 More Injection Wells Coming to Trumbull County, OH”

  • | |

    BLM Raises $944K from 4th Ohio Wayne Natl Forest Auction

    Another 350 acres of mineral rights were just auctioned off yesterday by the Bureau of Land Management in Ohio’s Wayne National Forest (WNF)–for a total of $944,000 raised. What’s that? You haven’t heard or read that news in ANY local or national news outlet? Welcome to the Big Government/Media complex where something isn’t “news” unless Big Lib media says it’s news. And yet, this most recent auction is, for landowners who have mineral rights in WNF and drillers who drill there, really big news. 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 were denied the use of their property rights for more than a decade–until the BLM finally began auctions of government mineral rights in BLM last year (see BLM Launches Auction to Lease Wayne National Forest for Fracking). The government portions of the patchwork are needed to combine with the private portions in order to form drilling units large enough to drill on/under. All of yesterday’s auctioned rights, similar to previous auctions, is located in Monroe County, OH–one of the sweetest of the sweet spots for drilling in the Utica Shale. Antis continue to oppose these auctions, launching lawsuits, showing up at various public events, etc. Whatever. The good news, news you don’t read in mainstream outlets, is that WNF lease auctions continue…
    Read More “BLM Raises $944K from 4th Ohio Wayne Natl Forest Auction”

  • | | | | | |

    OH Sand Producer Fairmount Santrol Merging w/Unimin in $170M Deal

    Fairmount Santrol, an Ohio-based sand producer that sells sand as a proppant for use in Utica and Marcellus Shale drilling, announced yesterday it has accepted an offer to sell itself to another sand company–Unimin, a subsidiary of Belgium-based SCR-Sibelco. Fairmount Santrol shareholders will get a $170 million payment and 35% ownership in the newly combined company. The new company will have revenues approaching $2 billion per year. Fairmount Santrol’s CEO, Jenniffer Deckard, is expected to become the CEO of the new company (the name of the new company has not yet been decided). However, make no mistake–Fairmount is selling itself. The board of directors for the new company will have 6 members picked by Unimim parent SCR-Sibelco and 4 members picked by Fairmount Santrol. The location of the headquarters is still up in the air. A lot of unknowns at this point. However, one thing that IS known is that this is a done deal…
    Read More “OH Sand Producer Fairmount Santrol Merging w/Unimin in $170M Deal”

  • | | | | |

    Ashtabula, OH Residents Give New Pipeline Thumbs Up @ Open House

    Click for larger version

    RH energytrans, which plans to build a short 60-mile pipeline from Pennsylvania to Ashtabula County, OH, recently held an open house for government officials, landowners who will be affected by the pipeline, and “interested residents.” The event was held in Conneaut (Ashtabula County), OH, and was remarkable for what didn’t happen. What didn’t happen was antis protesting. Local officials (those who spoke) unanimously support the project and the fracked natural gas it will bring to the county. We didn’t spot a single negative comment–from officials, landowners or interested residents. In October MDN brought you details about the proposed $86 million Risberg Line Project (see New 60-Mile Pipeline Proposed from NW Pa. to NE Ohio). The project will use approximately 32 miles of existing pipeline in an established Right of Way originating in the Meadville, PA area. Approximately 16 miles of new pipeline will be installed in Pennsylvania and approximately 12 miles of new pipeline will be installed in Ohio–meaning 28 miles of brand new “greenfield” pipeline needs to get built. Two school districts in Ohio where the pipeline will traverse have agreed to reduce the amount of property tax the pipeline would need to pay by 75% over a 15-year period–a huge vote of confidence (see Update on Proposed 60-Mile Pipeline from NW Pa. to NE Ohio). Here’s what happened last week at the RH energytrans open house for the Risberg Line Project…
    Read More “Ashtabula, OH Residents Give New Pipeline Thumbs Up @ Open House”

  • | | | | |

    Baker Hughes Nov Rig Count – US & Marc/Utica Counts Go Down

    The International (non-U.S.) Baker Hughes rig count for November 2017 was 942, down 9 from the 951 counted in October 2017, but up 17 from the 925 counted in November 2016. The U.S. rig count for November 2017 was 911, down 11 from the 922 counted in October 2017, but up 331 from the 580 counted in November 2016. The average Canadian rig count for November 2017 was 204, unchanged from the 204 counted in October 2017, and up 31 from the 173 counted in November 2016. What about rig counts in the Marcellus/Utica? Pennsylvania lost one rig (second month in a row PA has lost a rig), running an average of 31 rigs during October. Ohio gained a rig to run an average of 30 rigs. West Virginia saw the biggest swing–a huge swing–by losing 3 rigs, running an average of 12 rigs last month. So the Marcellus/Utica combined lost 3 rigs last month. Here’s the BH update…
    Read More “Baker Hughes Nov Rig Count – US & Marc/Utica Counts Go Down”

  • | | |

    Cabot O&G Considers Drilling in Ashland County, OH

    Important Update (12/18/17) – A highly placed source in Cabot Oil & Gas called MDN to let us know Cabot is not looking to drill the Utica Shale in Ashland County, OH, as we first presumed. Instead, Cabot is looking to drill LOWER than the Utica–in a different rock layer. We were not told which layer. This is purely exploratory. Sometimes you hit and sometimes you miss. Something about the area has caught Cabot’s attention–but that doesn’t mean it will pan out. Stay tuned!

    This, for us, is HUGE news. Cabot Oil & Gas is sniffing around the possibility of drilling in the Ohio Utica. We suppose it shouldn’t surprise us, but it does. Especially since we haven’t heard or read a word about Cabot’s Utica interest–until now. Put yourself in Cabot’s shoes–what comes next? After all, they’ve been drilling in Susquehanna County, PA for the last 10 years. Sooner or later Cabot will run out of new places to sink wells. Cabot previously fiddled around in the Eagle Ford Shale play in Texas, drilling for oil, but that hasn’t panned out. In May, MDN picked up on a little bit of information slipped into Cabot’s first quarter update–the company is spending $125 million THIS YEAR on buying leases and drilling test wells, in plays they weren’t ready to disclose at that point (see Cabot O&G 1Q17 – Oil Turning Cabot’s Eye Away from Marcellus). The only hint we had about where Cabot may be looking was this statement: “our focus is going to be oil.” We now know where at least some of that $125M is going–to Ashland County, OH. Cabot is looking to drill an exploratory well (or two or three) in Ashland, to see what they find. We think Cabot’s choice of location interesting. Ashland County is located well west (and north) of Ohio counties currently drilled for Utica oil and gas. We’ve checked the statistics in our forthcoming Marcellus & Utica Shale Almanac. Devon Energy got a single permit and spud (began to drill) a single well in Ashland’s Utica Shale back in 2011. Since that time (and through the end of 2016) no other permits were issued, and there’s been zero production from that single Devon well. It’s likely Cabot is shopping for a bargain–go where no one else is going, to see if they can make the magic happen once again that they’ve experienced in northeast PA. The reason we know about Cabot’s dalliance in Ashland is because local antis in the county are up in arms over the prospect of Cabot “fracking” the county…
    Read More “Cabot O&G Considers Drilling in Ashland County, OH”

  • | | | | | |

    PTT Global Final Decision re Belmont Cracker Plant Late Again

    An MDN reader recently asked us, “Hey, what’s up with the Belmont County, OH ethane cracker? We haven’t read anything in a while.” You haven’t read anything on MDN, nor anywhere else, because there’s been nothing to read. PTT Global Chemical, based in Thailand, announced in April 2015 they are interested in building a $5 billion ethane cracker plant complex in Belmont County, OH (see It’s Official: Belmont County Chosen as POSSIBLE Cracker Plant Site). In May 2016, a story in the Bangkok Post said the final investment decision (FID) will definitely come in 2017, but they called the decision “delayed.” PTT disagreed with that assessment, saying a decision coming in 2016 or 2017 is not “delayed” (see PTT Global Says Belmont, OH Ethane Cracker NOT Delayed). In December 2016, Belmont County officials said the FID would come by the end of March this year (see OH Cracker Final Decision Coming Soon, Site Now Cleared & Ready). But in February, PTT said the FID won’t come until “late 2017,” which is “several months later than we originally announced” (see PTT Global Delays Final Investment Decision for OH Ethane Cracker). It’s pretty “late” in 2017, wouldn’t you say? A company representative says the company will make some sort of an announcement “by the end of the year,” but that’s all he will say. It certainly doesn’t seem as if an FID is in the cards in the next three weeks…
    Read More “PTT Global Final Decision re Belmont Cracker Plant Late Again”

  • | | | |

    Recent Important Ohio Oil and Gas Court Decisions

    The legal beagles at the Vorys energy law firm have been keeping a close eye on court cases in Ohio that affect the oil and gas industry. Two of those cases caught our attention as being worthy of mention because they have the potential to affect Utica Shale rights owners, and conversely drillers, in the Buckeye State. In one case, a landowner thought she could terminate a lease by not picking up her mail and depositing royalty checks in the mail. Just ignore the mail and claim the driller wasn’t paying up. Oops. Nice try, but that didn’t fly in court. In another case, a landowner with an old oil & gas lease (dating back to the 1970s) tried to break the lease because the driller is happy as a clam to simply get gas out of conventional/vertical/shallow wells, and not go after (or allow someone else to go after) the deeper shale layers. The landowner tried to get the court to at least agree to free up the deeper layers so he could lease those–but no dice. The court found the existing lease is producing in “paying quantities” and under the terms of the lease, the landowner does not have the right to sever the lower layers from the upper layers. Here’s the details, with copies of the respective court decisions…
    Read More “Recent Important Ohio Oil and Gas Court Decisions”

  • | | | |

    Ohio Approves 2nd Oregon Utica-Fired Elec Plant (Near Toledo)

    In August, Ohio Gov. John Kasich officiated at a ceremony to launch a new Utica gas-fired electric generating plant in Oregon (Lucas County), near Toledo (see New 870 MW Gas-Fired Electric Plant in NW Ohio Begins Operation). CME Energy’s Oregon Clean Energy Center plant generates 870 megawatts of electricity. The plant cost $900 million to build. What we haven’t focused on, until now, is CME’s proposal to build a second Utica gas-fired electric plant next to the first one. The first plant is called Oregon Clean Energy Center. The second plant project is named Clean Energy Future – Oregon. The second plant is bigger than the first, targeted to generate 955 megawatts of power. Clean Energy Future – Oregon is currently in the permitting process. If all goes well, CME plans to begin commercial operation in 2020. Fluor Corporation is constructing this second project, as they did the first. Construction is scheduled to begin early next year. The reason the project appeared on our radar screen is because yesterday the Ohio Power Siting Board (OPSB) gave Clean Energy Future – Oregon a big, fat, sloppy kiss of approval…
    Read More “Ohio Approves 2nd Oregon Utica-Fired Elec Plant (Near Toledo)”

  • | | | | | |

    OH Landowner Loses Lawsuit to Stop Eclipse Drilling New Wells

    A Harrison County, OH landowner signed a lease back in 2006 granting a driller “broad rights” to extract oil and gas on and beyond his property. The lease was signed for $1 plus royalty payments. Obviously the landowner (frankly, nobody) at the time had any idea the Utica Shale miracle would happen just a few years later. The lease signed by the landowner was, in retrospect, a bad one. But that doesn’t excuse the landowner from living up to the obligations under that lease, which the landowner has learned the hard way. The lease was sold to Eclipse Resources and Eclipse wanted to, under the terms of the lease, drill new wells which would not only drain that landowner’s property (136 acres), but also drill under neighboring properties where Eclipse also owned the lease rights. That is, the well would be located on the landowner’s property but access gas under other properties–yielding royalties to others but not the landowner. The landowner objected to new wells on his property without a new lease (can’t blame him). However, first a district court and now the U.S. Sixth Circuit Court of Appeals decided for Eclipse against the landowner. Below is a summary of Eclipse Res. Ohio, LLC v. Madzia, followed by a copy of the full decision from the Sixth Circuit…
    Read More “OH Landowner Loses Lawsuit to Stop Eclipse Drilling New Wells”

  • | | | | | | |

    Belmont OH Family Sues Summit Midstream for Mud Spill Near Home

    Summit Midstream Partners was drilling underneath a road and a creek in Belmont County, OH on Oct. 19 to install a pipeline when they experienced an “inadvertent return” (i.e. leak) of drilling mud into the creek. If you’ve read MDN for any length of time, you will have read about other such instances by other companies. Because we constantly have new readers, we post the following explanation, which will sound like a broken record for long-time readers: Drilling mud is bentonite, a form of non-toxic clay also used to make kitty litter, cosmetics and toothpaste–among many, many other consumer products. The only threat posed by a spill of bentonite is that enough of it spills to clog the gills of fish or smother little critters like salamanders. That’s it. Think about taking half a dozen bags of kitty litter to a creek nearby and dumping them all in. It’s nothing. No pollution. We’d certainly rather not have any such accidents–but the reality is, they sometimes happen. That’s why non-toxic bentonite is used. The Ohio EPA stepped in and cited/fined Summit for the spill. Fair enough. But that’s not what this story is about. This story is about a family that lives near the spill. They hated Summit’s “loud” drilling before the spill, and now are using Summit’s spill and cleanup work (some of it happening in their front yard) as an excuse to sue Summit, hoping to score big bucks. Good luck with that…
    Read More “Belmont OH Family Sues Summit Midstream for Mud Spill Near Home”

  • | | | | | | | |

    More of Rover in Eastern Ohio Coming Online in Time for Star Wars

    The mighty Rover Pipeline project marches on toward 100% completion, even though the Ohio EPA is doing its best to stop it (see Rover Ignores Shrill Ohio EPA, Asks FERC to Continue HDD Drilling). Because of previous issues with underground horizontal directional drilling (HDD), the Federal Energy Regulatory Commission (FERC) first put the brakes on Rover, then later eased off the brakes, but still keeps Rover on a tight leash, preventing Rover from moving at the faster pace they’d like move at. Especially with respect to work in eastern Ohio. Rover is a $3.7 billion, 711-mile natural gas pipeline that (will eventually) run from PA, WV and eastern OH through OH into Michigan and on to Canada. A large portion of the pipeline, designated Phase 1A, began flowing natural gas on Sept. 1st (see Big Portion of Rover Pipeline Now Up & Running – Thru Most of Ohio). However, Phase 1B work in eastern OH and WV, which will feed more Marcellus/Utica gas to the main part of the pipeline, has been stymied by slow HDD work. At least some of 1B is now ready to begin. Yesterday Rover asked FERC for permission to begin service on three lateral pipelines totaling nearly 62 miles, and to start up three compressor stations and seven metering stations–in Ohio’s Noble, Monroe and Harrison counties. Rover is asking FERC to hurry it up so they can begin service by next week, in time for the Star Wars: The Last Jedi premier on Dec. 14…
    Read More “More of Rover in Eastern Ohio Coming Online in Time for Star Wars”