Ohio

Energy Services | Energy Transfer Partners | Industrywide Issues | NEXUS Pipeline | Ohio | Pipelines | Regulation | Statewide OH

NEXUS Cleared to Begin Construction, Rover Cleared to Restart HDD
October 12, 2017October 12, 2017

Permission granted grunge rubber stamp on white, vector illustration

Important pipeline news for the Utica Shale. Yesterday the Federal Energy Regulatory Commission (FERC) gave permission to NEXUS Pipeline–a $2 billion, 255-mile interstate pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada–to begin construction. This is a momentous day! NEXUS had previously requested FERC allow it to begin by Tuesday, Oct. 10th (see NEXUS Pipe Seeks to Begin Construction Oct 10; List of Contractors). FERC was a day late, but certainly not a dollar short. We expect by the time you read this, some of the bulldozers and backhoes will already be fired up and working. What oh what will the antis do now (see CORNballs, Sierra Club Continue to Fight NEXUS Pipeline in Court)? The second bit of good news also from yesterday from FERC–Rover Pipeline is allowed to restart underground horizontal directional drilling (HDD) at another four sites where such activity has been halted since May of this year. Rover has still not received permission to restart HDD drilling at the spot along the Tuscarawas River where they spilled 2 million gallons of drilling mud (see Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp). However, Rover remains confident they will complete the entire project $3.7 billion, 711-mile natural gas pipeline running from PA, WV and eastern OH through OH into Michigan by the end of this year…
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Industrywide Issues | Ohio | Pennsylvania | Pipelines | Regulation | Statewide OH | Statewide PA | Statewide WV | West Virginia

Marcellus/Utica Rig Count Race Tightens: OH Count Closes in on PA
October 11, 2017October 11, 2017

It’s been a few months since we’ve brought you news about the monthly average for Baker Hughes’ venerable rig count–largely because after GE completed it’s merger with Baker Hughes they quit issuing monthly press releases from their website! We spotted a story in the Pittsburgh Business Times that talks about Ohio coming close to parity in their rig count with Pennsylvania–which is a really big deal–and the reasons for it. That story sent us looking for the latest rig count numbers and indeed, it’s true. As of September, PA averaged 33 shale rigs in operation, while OH averaged 29–the closest we’ve ever seen it. If you look at the counts for last week (BH does a weekly rig count too), the numbers are even closer: PA with 31 rigs, OH with 29. We don’t typically monitor the weekly counts as they always fluctuate up and down–better to look at monthly averages. But the fact remains that PA has been pretty steady, operating between 32 and 34 rigs per month since January of this year, while OH has gone from operating an average of 20 rigs in January to 29 last month, and West Virginia has gone from operating an average of 8 rigs in January to 15 rigs last month (nearly doubling). Yet PA is static. Is there an explanation? Some experts think there is, and it can be explained in a single word: pipelines…
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Industrywide Issues | Lease & Royalty Payments | Ohio | Regulation | Statewide OH

OH Congressman Intros Impact Fee for Counties with WNF Drilling
October 11, 2017October 11, 2017

Congressman Bill Johnson

Congressman Bill Johnson, Republican from Ohio’s 6th District, has introduced a bill to compensate counties that contain federal lands, if those lands are drilled for oil and gas. Johnson’s bill, titled Providing Opportunities With Energy Revenues (or POWER) Counties Act (copy below), would siphon off a portion of any royalties paid to the federal government for federal lands that are drilled, sending that money back to the counties where the drilling takes place. Although Johnson and those supporting the bill don’t call it an impact fee, that’s exactly what it is. In Pennsylvania instead of a severance tax, legislators passed Act 13 (in 2012) which contains and impact fee. With PA’s impact fee (roughly the same thing as a severance tax), 60% of the fee raised stays with local counties and municipalities, while 40% goes to the black hole of Harrisburg where it disappears into statewide spending (mainly Philadelphia). It has been a hugely successful model–better than a severance tax. Johnson’s proposed law is not a tax, but reallocates money from existing royalties paid to the federal government for drilling on federal lands. In Ohio, the only federal land where drilling takes place is Wayne National Forest–so those counties where there is WNF drilling would get some extra cash to help out with road repairs, first responders, etc. The brilliance of the plan is that it doesn’t impose any new taxes–it simply reallocates who gets what from the existing revenue stream. Johnson says, “it is a simple issue of fairness”…
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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Litigation | Mahoning County | Ohio

OH Supreme Court Blocks Youngstown Frack Ban Ballot Measure
October 10, 2017October 10, 2017

In July MDN told you that puppets of the PA-based Community Environmental Legal Defense Fund (CELDF) have once again gotten enough signatures to put a so-called Community Bill of Rights (i.e. frack ban) ballot measure on the ballot this November in Youngstown, Ohio for a 7th time (see Youngstown Frack Ban Vote on November Ballot – for 7th Time). The same people have tried six times before–and the ballot measure failed every single time. However, as we pointed out, this time is different. In addition to the usual no fracking, no pipelines pablum, this 7th petition has language that makes it legal to break the law. If the ballot measure were to pass, and if an anti got it into her head to sit in front of a bulldozer that was about to clear ground for a wellpad, or dig a trench for a pipeline, the police would not be able to arrest and remove the anti. It would be within her rights to sit there and block legal, legitimate activity–all in the name of saving the planet. It would, in essence, legalize mob rule. In September the Mahoning County Board of Elections voted to NOT allow measure on the ballot in November (see Mahoning County Bans Frack Ban Measure from Nov Ballot in Youngstown). Using the deep pockets of the CELDF, antis appealed the rejection to the Ohio Supreme Court. It didn’t take the Supremes long. They ruled last Friday to uphold the Mahoning County Board of Elections decision to not allow the measure on the November ballot. However, it was a close vote, 4-3, and likely means more litigation will follow in the future…
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Electrical Generation | Guernsey County | Industrywide Issues | Ohio | Regulation | Trumbull County

Ohio Approves 2 Utica-Fired Power Plants in Guernsey, Trumbull Counties
October 9, 2017October 9, 2017

Last week the Ohio Power Siting Board (OPSB) approved two new Utica-gas powered electric plants, and authorized the expansion of a third plant to a bigger size. The OPSB approved the Guernsey Power Station–a new Utica/Marcellus natural gas-fired electric generating plant proposed for (surprise!) Guernsey County, OH (see New Utica-Powered Electric Plant Proposed for Guernsey County, OH). OPSB also approved the Trumbull Energy Center project, a new plant proposed by Clean Energy Future for (surprise!) Trumbull County (see Details on Newly Announced Trumbull Energy Center Electric Plant). That second one may or may not sound familiar. Clean Energy is already building an electric generating plant in Trumbull County–in Lordstown, called the Lordstown Energy Center (see Lordstown Energy Center Breaks Ground on $890M Electric Plant). Clean Energy proposed building a second plant right next to the first one (see Details on Newly Announced Trumbull Energy Center Electric Plant). We suppose Clean Energy could have called the second plant Lordstown Energy Center II, but instead they elected to call it Trumbull Energy Center. Two plants, side by side, built by the same company–now approved by OPSB. The OPSB also approved a request by Clean Energy to expand the already-under-construction Lordstown plant, from 800 megawatts to 940 megawatts. Here’s the lowdown on what got approved, and where it’s all located…
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Carroll County | Energy Services | Energy Transfer Partners | Industrywide Issues | Ohio | Pipelines | Regulation

Rover Pipe Nearly Doubles Flow with Addition of Carroll, OH Compressor
October 9, 2017October 9, 2017

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…
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Energy Services | Industrywide Issues | NEXUS Pipeline | Ohio | Pipelines | Regulation | Statewide OH

NEXUS Pipe Seeks to Begin Construction Oct 10; List of Contractors
October 4, 2017October 4, 2017

NEXUS Pipeline map – click for larger version

Something just now coming to light. Last week NEXUS Pipeline sent a request to the Federal Energy Regulatory Commission (FERC) requesting that it be allowed to begin construction of the pipeline “on or before” Tuesday, October 10th. That’s next Tuesday, folks! NEXUS is a $2 billion, 255-mile interstate pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada. NEXUS received final approval for the project from FERC in August, the first major pipeline to get approved following a newly restored quorum at FERC (see New FERC Quorum Votes Final Approval for NEXUS Pipeline). Two weeks ago one of the final remaining hurdles came down when the Ohio EPA granted a water permit for the project (see Ohio EPA Grants Water Permit to NEXUS Pipe, “Learned” from Rover). The project still faces court challenges (see CORNballs, Sierra Club Continue to Fight NEXUS Pipeline in Court), however, those challenges are long-shots. Given that all permits have been issued, last Thursday NEXUS sent FERC a request to begin construction (see the request below). As part of the request, the contractors that will build the pipeline were named. We’ve pulled those names into a handy list, for those looking for jobs and those who want to sell goods and services to the companies actually building the pipeline…
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Belmont County | Energy Services | Ethane | Industrywide Issues | Ohio | Processing Plants | PTT Global

PTT Global Signs Memorandum with Ohio re Belmont Ethane Cracker
October 4, 2017October 4, 2017

On Monday, Mr. Supattanapong Punmeechaow, president and CEO of PTT Global Chemical (Thailand’s largest petrochemical company) signed a Memorandum of Understanding (MOU) with JobsOhio regarding PTT’s proposed ethane cracker plant. The MOU pledges to “enhance the well-being and quality of life” for those living in the area near the proposed cracker plant. PTT 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). Since that time, all of the signs have been positive. PTT has said a final investment decision will be forthcoming by the end of this year. The MOU signing ceremony on Monday is yet more evidence that this project will happen. The ceremony itself is kind of interesting. It was not held in Ohio–but in Washington, D.C. where a trade delegation from Thailand was visiting (Punmeechaow was part of the delegation). So John Minor, president of JobsOhio, traveled to D.C. for the signing ceremony, which was held in what we can only describe as a garage…
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Economic Impact | Industrywide Issues | Ohio | Statewide OH | Taxation

Sales Tax Revenue in OH Counties with Utica Shale Soars
October 3, 2017October 3, 2017

New research done by our friends at Energy in Depth has found that sales tax revenue generated by Ohio’s top eight Utica Shale counties–Belmont, Carroll, Columbiana, Guernsey, Harrison, Jefferson, Monroe and Noble–rose 45% from 2011 to 2016, while sales tax revenue in the state’s other 80 counties rose an average of 30%. That is, shale counties (collectively) brought in 15% more revenue into both county and state coffers than non-shale counties. Ohio levies a 6.75% sales tax on goods sold. Of that, 5.75% goes into the state budget (the black hole in Columbus), while 1% stays in the county budget. Conclusion: shale is helping to fund the entire state. That is, all state residents benefit from the shale industry in Ohio, in a very tangible way. Here’s the update from EID showing how shale counties are outperforming non-shale counties in the Buckeye State…
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Energy Services | Industrywide Issues | Litigation | NEXUS Pipeline | Ohio | Pipelines | Regulation | Summit County

Green, OH Spends Big $ on 2 Appeals in Bid to Stop NEXUS Pipeline
October 2, 2017October 2, 2017

Back in May MDN told you about the antis running the City of Green, Ohio (see Green, OH Paying Lawyers $100K to Fund Stop NEXUS Crusade). Green City Council voted to use $100,000 of taxpayer money to hire a Cleveland law firm to file a lawsuit “aimed at stopping the pipeline from being built or stopping the project altogether.” Looks like the law firm is earning at least some of that considerable amount (total bill so far: $67,367). The strategy the lawyers have adopted and now implemented is to file two appeals–one with the Sixth Circuit Court of Appeals, the other with the Ohio Environmental Protection Agency’s appeals board. The Green antis hope one or both will throw up a roadblock to slow, and ultimately stop, the NEXUS Pipeline from getting built. NEXUS, a $2 billion, 255-mile interstate pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada, was the first major pipeline project to get approved after the Federal Energy Regulatory Commission (FERC) once again had a quorum (see New FERC Quorum Votes Final Approval for NEXUS Pipeline). Less than two weeks ago the Ohio EPA issued a federal water permit for the project (see Ohio EPA Grants Water Permit to NEXUS Pipe, “Learned” from Rover). Green is asking OEPA to reconsider their action in issuing the permit. Here’s the latest in the ongoing war against fossil fuels…
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Economic Impact | Industrywide Issues | Jobs | NGLs | Ohio | Pennsylvania | Pipelines | Processing Plants | Regulation | Research | Statewide OH | Statewide PA | Statewide WV | West Virginia

Shale Insight 2017 – Day One News Roundup
September 28, 2017September 28, 2017

MDN is once again attending the Shale Insight event–in Pittsburgh. Yesterday was the first day of the event. The crowd was definitely smaller than last year when then-candidate Trump spoke to attendees. However, Day One saw a number of heavy-hitting speakers, including Secretary of Labor Alexander Acosta, Deputy Secretary of Energy Dan Brouillette, XTO Energy President Sara Ortwein, Chevron Appalachia President Stacey Olson, and People’s Natural Gas CEO Morgan O’Brien. Marcellus Shale Coalition President Dave Spigelmyer served as master of ceremonies and seemed to be everywhere-present during the event (how does he DO that?). From the opening session to the exhibit floor to attending the breakout sessions, MDN editor Jim Willis made the rounds–and took lots of notes. In the coming days he will write up those notes and share them. For now, we have links and extracts of articles from other publications attending and reporting on this year’s Shale Insight…
Read More “Shale Insight 2017 – Day One News Roundup”
Energy Services | Energy Transfer Partners | Industrywide Issues | Ohio | Pipelines | Regulation | Statewide OH

Bad Blood: Rover Pipe CEO Sends Caustic Letter to Ohio EPA, FERC
September 28, 2017September 28, 2017

Last week MDN brought you the news that Ohio EPA’s director, Craig Butler, has kind of tipped over into the deep end with his rantings and ravings about Rover Pipeline (see Ohio EPA’s Craig Butler Goes Nuts, Demands $2.3M from Rover Pipe). Butler held a conference call with the media where he made wild allegations. What seems to have precipitated Butler’s media bender is a decision by the Federal Energy Regulatory Commission (FERC) earlier in the week to allow Energy Transfer, builder of Rover, to resume horizontal directional drilling (HDD) in most Ohio locations, after banning it for several months (see FERC Lifts Rover Horizontal Drilling Ban, Pipeline Work Resumes). ET has responded to Butler’s tirade with a hard-hitting (we’d call it caustic) response. In a letter to Butler, carbon copied to FERC, Rover President & CEO Matthew Ramsey essentially says Butler and the OEPA is trying to cover its own mistakes in not requiring storm water permits for most of the project’s life–then coming along after the fact saying Rover didn’t apply for those permits (when OEPA never required them in the first place). Ramsey also said Butler “refuses to recognize the law” that FERC, and not OEPA, is in charge of this project. It gets better. Ramsey says he is “mystified by what you are trying to achieve” by requiring something (said storme water permits) Rover is now voluntarily doing–permits that OEPA itself has approved! This letter really takes the gloves off and (our words) calls Butler a lunatic. Read it for yourself and see what you think…
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Industrywide Issues | Litigation | Ohio | Statewide OH

OH Landowner Wants High Court to Force Driller to Explore Shale
September 28, 2017September 28, 2017

Back in March MDN told you about an Ohio landowner with an old oil and gas lease where a conventional (vertical only) well was drilled–and still producing–suing the energy company, telling the company to either explore the shale layer, or severe the lease rights to shale so the landowner can lease it to someone who will go after the shale (see OH Supreme Court to Hear Appeal re Driller Who Won’t Explore Utica). The case went to the Ohio Supreme Court and on Tuesday the high court heard oral arguments. Can we divine which way the court may rule, based on comments by the justices? Perhaps…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Litigation | NEXUS Pipeline | Ohio | Pipelines | Regulation | Statewide OH

CORNballs, Sierra Club Continue to Fight NEXUS Pipeline in Court
September 25, 2017September 25, 2017

NEXUS Pipeline, a $2 billion, 255-mile interstate pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada, is about ready to begin construction–any time. NEXUS got final approval for the project from the Federal Energy Regulatory Commission (FERC) in August, the first major pipeline to get approved following a newly restored quorum at FERC (see New FERC Quorum Votes Final Approval for NEXUS Pipeline). Last week one of the final remaining hurdles came down when the Ohio EPA granted a water permit for the project (see Ohio EPA Grants Water Permit to NEXUS Pipe, “Learned” from Rover). The only cloud on the horizon are multiple lawsuits and regulatory requests filed by anti-fossil fuel groups, including CORN (Coalition to ReRoute Nexus, folks we call CORNballs), and the far-left Sierra Club. Both groups have launched lawsuits and regulatory actions against the pipeline. Those efforts, which increasingly are long-shots, continue. Here’s what CORN and the Sierra Club are doing now that Ohio EPA has given the project its blessing…
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Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

Texas Private Equity Firm Forms to Invest in Marcellus/Utica
September 22, 2017September 22, 2017

District 5 Investments, an energy-focused private equity firm based in Texas, has formed a new subsidiary called Pathfinder Resources in order to invest in the Marcellus/Utica region. According to an announcement yesterday, Pathfinder will focus on acquiring “producing and non-producing oil and gas mineral interests, royalty interests and non-operated working interested” across the U.S., but starting first in the Marcellus/Utica. Investment sizes range from $5 million to $35 million. Here’s the latest investor to grab a piece of the Marcellus/Utica pie…
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Defiance County | Energy Services | Energy Transfer Partners | Industrywide Issues | Ohio | Pipelines

First-Hand Account: Rover Pipe’s Negative Impact on One Ohio Farm
September 22, 2017September 22, 2017

Not everyone on the “pro” side of the pipeline issue is happy with Rover Pipeline and the work they’ve done in Ohio. You know that MDN is supportive of the Rover project. You also know that MDN believes Craig Butler, director of the Ohio EPA, is way out of line with his campaign to fine Rover $2.3 million. However, Rover is not lily white in their handling of building the pipeline across Ohio. They’ve made mistakes. And they’ve made some enemies of the people who should be their biggest supporters–farmers whose land they cross. MDN editor Jim Willis recently spoke with one of those farmers, from the Definance, OH area. Ben Polasek owns a farm that has been in the family for four generations. He plants wheat, corn, and soybeans on his Ohio land. Polasek says he is a strong supporter of the energy industry–and of pipelines. However, he says, “Rover has not shown any respect for the landowners of this project.” Polasek says Rover made promises–like being able to access fields he needs to plant–only to see those promises broken. He also believes Rover didn’t properly plan for the heavy rains that caused his property to become a mud pit in areas where Rover was working. With pictures (below) and an impassioned letter to the Federal Energy Regulatory Commission (also below), Polasek is asking FERC to hold Rover responsible for the damage done to his, and other farmer’s, property…
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