Ohio

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    Downtown Cleveland Now Heated with 100% Utica/Marcellus Gas

    Sometimes mainstream media gives the Marcellus/Utica industry a gift–and doesn’t even realize it. The Cleveland Plain Dealer has a story in today’s edition about the change in fuel source for downtown Cleveland. Cleveland Thermal began supplying steam to heat buildings in downtown Cleveland in 1894. The first fuel they burned? Wood. Later came coal. And today? The point of the story is that Cleveland Thermal is now using a new plant that is 100% natural gas-fired to create the steam used to heat 94 downtown Cleveland buildings. We haven’t been to Cleveland in a long time, but we have to guess 94 buildings in downtown is likely most of downtown. And it’s all being heated with Utica/Marcellus shale gas. Here’s a truly fascinating factoid: Cleveland Thermal (now owned by Corix Group) estimates it will take around 1.3 billion cubic feet (Bcf) of gas per year to produce the steam that heats those 94 buildings. We ran a story in March 2016 about the amount of natural gas Cabot Oil & Gas is getting from their average Marcellus Shale well (see Go Big or Go Home: Cabot O&G Wells Average EUR of 27 Bcf). Be prepared to have your mind blown. When Cabot drills a new well, on average, over the life of that well (perhaps 20 years), Cabot will get 27 Bcf. So one, single well drilled by Cabot in Susquehanna County, PA could supply ALL of the heat for ALL of downtown Cleveland for 20 years. Behold the power of shale gas… Read More “Downtown Cleveland Now Heated with 100% Utica/Marcellus Gas”

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    81% of 2016 Ohio Valley Investment Came from One Natgas Project

    Artist’s rendering of Lordstown Energy Center – click for larger version

    We spotted a story that seemed to us like the Ohio Valley was doing some justified bragging about investment in the region during 2016. Recently, the “Youngstown/Warren, Ohio Economic Development 2016 Report Card” was released. The Report Card was a joint effort of the Youngstown/Warren Regional Chamber of Commerce, OhioMeans-Jobs, the cities of Warren and Youngstown, the Youngstown Business Incubator and Youngstown State University. The Report Card found that 111 projects led to a whopping investment of $1.1 billion–in 2016! Or at least you can say, that much money was committed in 2016. Some of the actual spending was made last year, some this year, likely some over the next several years. But hey, let’s not split hairs. This is an achievement to crow about. But when you look at the project list, one project accounts for 81% of the total–the Lordstown Energy Center. The $890 million Lordstown Energy Center is an electric generation plant planned for Lordstown (Trumbull County), OH that will be powered with Utica Shale gas. The project won village approval in the summer of 2015 (see Lordstown $800M Gas-Powered Electric Plant Gets Village Approval). It then won state approval in the fall of 2015 (see Lordstown $800M Gas-Powered Electric Plant Gets OH State Approval). The project broke ground in June 2016 (see Lordstown Energy Center Breaks Ground on $890M Electric Plant). Our point: Without deregulated electric markets in Ohio, and without the Utica and Marcellus Shale, the Ohio Valley investment last year would have been, at best, $220 million, not $1.1 billion… Read More “81% of 2016 Ohio Valley Investment Came from One Natgas Project”

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    ET Disputes Ohio EPA Action on Rover, Says there Is No $431K Fine

    Somebody somewhere isn’t telling the truth. Earlier this week MDN brought you the news that Energy Transfer’s Rover Pipeline project has been fined by the Ohio Environmental Protection Agency (OEPA) for $431,000 for “18 incidents involving mud spills from drilling, stormwater pollution and open burning at Rover pipeline construction sites have been reported between late March and Monday” (see Ohio EPA Slaps Rover Pipe with $431K Fine for Spills, Other Issues). Based on OEPA’s report to the Federal Energy Regulatory Commission, FERC then told Rover to stop any new horizontal drilling underground (see FERC Slaps Rover Pipeline with Stop Drilling Order). But a recently filed report with FERC for the Rover project indicates only three spills and takes the tone it’s no big deal. And, a spokeswoman for Energy Transfer told the ace reporters at Natural Gas Intelligence that Rover has not been fined by the OEPA…
    Read More “ET Disputes Ohio EPA Action on Rover, Says there Is No $431K Fine”

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    WV/OH Senators Intro Bill to Study Appalachian Ethane Storage Hub

    Sen. Shelley Moore Capito

    Both West Virginia U.S. Senators, Shelley Moore Capito (Republican) and Joe Manchin (Democrat), along with Ohio Sen. Rob Portman, have introduced and co-sponsored a bill to study if and how an ethane storage hub can be constructed in the Marcellus/Utica region. According to Brian Anderson, director of WVU’s Energy Institute, without ethane storage (and pipelines) the Marcellus/Utica region risks seeing its abundant ethane leave the area, mostly heading to the Gulf Coast. We need that ethane here, in our area. Others have also taken up the cause, making the point that West Virginia, Ohio, Pennsylvania and Kentucky need to band together to build such a project (see WV, OH, PA, KY Should Cooperate on $10B NGL Storage Hub). You mean, set aside competition between states and cooperate? Yes! Why? Such a project will cost an estimated $10 billion–far more than a single ethane cracker project. No one state can do it on its own. And that’s where this new bill comes in. The bill proposes a study be done by the Departments of Energy and Commerce within the next two years to analyze potential locations based on favorable geology, the economic feasibility and benefits of the project, infrastructure, and proximity to production sites and potential industrial consumers…
    Read More “WV/OH Senators Intro Bill to Study Appalachian Ethane Storage Hub”

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    FERC Slaps Rover Pipeline with Stop Drilling Order

    You can’t see we didn’t warn Rover Pipeline. In our story yesterday about the Ohio EPA’s frustration with Rover over regular spills of drilling mud (and other violations), we pointed out that the OEPA’s language is “Not good news for Rover, when one of the main state regulators (that can stop the project) is leveling criticisms like that” (see Ohio EPA Slaps Rover Pipe with $431K Fine for Spills, Other Issues). We also said, in the last sentence of that post, “Rover needs to get this situation under control before an emergency stop work order is slapped on them.” Such an order, more or less, has now been issued by the Federal Energy Regulatory Commission (FERC). Yesterday FERC sent a letter (copy below) to Rover telling the pipeline it can no longer drill horizontally underground for the pipeline in some locations–until it complies with certain measures outlined by FERC and gets FERC staff sign-off every step of the way. In other words, Rover has likely just been delayed–due to its own haste and by not displaying the proper contrite attitude toward the OEPA. No one to blame but themselves…
    Read More “FERC Slaps Rover Pipeline with Stop Drilling Order”

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    Rex Energy 1Q17 Full Update – Swings to Black, Drilling Picks Up

    In April, Rex Energy, a driller focused mainly on the Marcellus/Utica (headquartered in State College, PA), issued an operational update (see Rex Energy 1Q17: Production Drops 8.5%). Earlier this week the company issued a full 1Q17 update. What does it show? Rex swung from losing $62 million in 1Q16 to making $2.1 million in 1Q17–quite a turnaround! This update also includes a fuller look at the drilling that did happen in 1Q17, and what the company plans for the balance of 2017. In Rex’s Legacy Butler Operated Area (Butler County, PA), the company has begun drilling 4 wells on a single pad and plans to have them completed and online in 3Q17. In Rex’s Moraine East Area (also Butler County) the company drilled 7 gross (3.3 net) wells and completed 4 gross (1.4 net) wells in 1Q17. In addition, Rex had 12 gross (5.5 net) wells awaiting completion at the end of 1Q17. In Rex’s Warrior North Area (Carroll County, OH), the company plans to drill 12 gross (10.2 net) wells by the end of 2017, with most of them not going online until 2018. Below is the full update, along with select portions of the earnings call where Rex’s CEO shares some interesting insights… Read More “Rex Energy 1Q17 Full Update – Swings to Black, Drilling Picks Up”

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    Ohio EPA Slaps Rover Pipe with $431K Fine for Spills, Other Issues

    Rover mud spill in April

    The Ohio Environmental Protection Agency (OEPA) is frustrated with Energy Transfer and its management of constructing the ~$4 billion Rover Pipeline through the state. As MDN reported in April, Rover spilled some 2 million gallons of non-toxic drilling mud (i.e. bentonite) in three separate incidents (see Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp and Rover Update: Half of 15K Workers Now Hired, 2% Pipeline Laid). We know that the biggest spill happened in Stark County, and another sizable spill in Richland County. It appears spilling some mud wasn’t the only environmental violation. The OEPA has just assessed a $431,000 fine against Energy Transfer for “18 incidents involving mud spills from drilling, stormwater pollution and open burning at Rover pipeline construction sites have been reported between late March and Monday.” The latest mud spill happened on Monday–200 gallons in Harrison County. OEPA Director Craig Butler said, “All told, our frustration is really high. We don’t think they’re taking Ohio seriously…Normally when we have…a series of events like this, companies respond with a whole lot of contrition and whole lot of commitment. We haven’t seen that. It’s pretty shocking.” Not good news for Rover, when one of the main state regulators (that can stop the project) is leveling criticisms like that… Read More “Ohio EPA Slaps Rover Pipe with $431K Fine for Spills, Other Issues”

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    Seneca County, OH – Where All Forms of Energy Come Together

    Generally speaking, the western side of Ohio is seeing a lot of activity with new solar and wind installations. And the eastern side of the state is seeing a lot of activity with shale drilling and natural gas pipelines. But there is one county, Seneca County (slightly left of center, in the northern part of the state) where both renewable projects like solar and wind, and fossil fuel projects like pipelines, are both active. And that means landowners in Seneca County are being bombarded with offers from solar, wind, pipelines and electric lines. Some sage advice from the Ohio Farm Bureau Federation for landowners: hire a lawyer before you sign anything… Read More “Seneca County, OH – Where All Forms of Energy Come Together”

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    40 Ohio Groups Band Together to Oppose FirstEnergy’s Nuke Bailout

    In April, MDN brought you news of an effort underway in Ohio to tax Ohio ratepayers $5.4 billion and give that money to FirstEnergy to prevent some of its nuclear power plants from closing (see OH Law Would Bailout Nuke Plants for $5.4B, Kill NatGas Plants). Given stiff regulations, nuke plants face stiff competition in the free marketplace. Natural gas-fired plants are cheaper to build and operate, and deliver cheaper electricity. Since nukes can’t compete in the free and open market, FirstEnergy wants to rig the game, all in the name of “energy diversity” and keeping their nuke plants open (and investors happy). Rate-paying Ohioans get screwed in the process. Some 40 groups have banded together for form the Coalition Against Nuclear Bailouts. Some are big groups, some are individuals. They are diverse. For example, the far-left AARP (disgusting organization) is in the coalition. So too is the Ohio Oil and Gas Association (OOGA) and the National Association of Royalty Owners (NARO). Plus some pastors of churches, and local politicians. Feels kind of weird to support an organization with groups like the AARP in it. But perhaps the enemy of my enemy is my friend. At least in this case. It is, truly, a nonpartisan (or should we say bipartisan) coalition that has risen up to fight the nuclear bailout… Read More “40 Ohio Groups Band Together to Oppose FirstEnergy’s Nuke Bailout”

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    Titan Energy Sells Marcellus Assets, Buyer Rapidly Expanding

    In February, MDN told you that Titan Energy, which used to be known as Atlas Energy/Resource Partners, was listing what appeared to be the rest of the acreage they still own on the Appalachian basin–some 494,229 acres–including rights for drilling in the Marcellus (see Titan Energy Puts 494K Appalachian Acres Up for Sale). On Friday, Titan announced it has signed an agreement to sell the acreage, along with 8,400 oil and gas wells across Pennsylvania, Ohio, Tennessee, New York and West Virginia, for $84.2 million to Diversified Gas & Oil (DGO). Yes, the vast majority of those wells are conventional (vertical only) and not shale wells. In fact, we’re not sure any of the wells are shale wells. However, Marcellus assets were part of the sale–so at least some of the acreage will allow for Marcellus drilling, should DGO want to pursue it. Although Titan is keeping its Utica Shale acreage, the company says it use the money from this sale to concentrate efforts on oil drilling in the Texas Eagle Ford Shale play. Titan is moving its headquarters from Pittsburgh to Houston, TX. In addition to the news about Titan selling its conventional assets and moving, the twin story (perhaps even more interesting) is that the buyer, DGO (nominally headquartered in Birmingham, Alabama, although actually a UK company), has been on a buying spree–snapping up 75,250 conventional acres (1,300 wells) in PA & WV earlier this year. All told, DGO now owns 1.6 million acres of leases and 10,000+ conventional oil and gas wells in Appalachia…
    Read More “Titan Energy Sells Marcellus Assets, Buyer Rapidly Expanding”

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    PDC Energy Pulling Out of the Utica – Selling Acreage & Wells

    PDC Energy, a driller in the Wattenberg Field in Colorado and the Utica in Ohio, paused their Utica drilling program in 2015 (see PDC Energy Pushes Pause Button on OH Utica Drilling for 2015). In December 2015, the company announced they would restart Utica drilling in 2016 with plans to drill five wells (see PDC Energy to Restart OH Drilling in 2016, Drilling 5 Utica Wells). Indeed they did reactivate their program, in a much-scaled-back fashion, last year. However, another shale play has turned the head of PDC–the Permian Basin in Texas, an oil play. When PDC released their plans for 2017 in December, they said they would drill two more Utica wells in the second half of 2017 and spend just $18 million to do it, spending the bulk of their money in the Permian and Wattenberg (see PDC Releases 2017 Plans – Drilling Just 2 Utica Wells in 2H17). Then in March, the plan to drill those two Utica wells this year got mothballed (see PDC Changes Course, Delays More Utica Drilling in 2017). Now we know why. Buried in their first quarter 2017 update (released last Friday), PDC has announced they are putting their Utica assets up for sale, so they can concentrate on the Wattenburg and Delaware Basin (i.e. Permian)…
    Read More “PDC Energy Pulling Out of the Utica – Selling Acreage & Wells”

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    Ohio DNR Issues New Pooling Guidelines for Drillers

    Last week the Ohio Dept. of Natural Resources (ODNR) issued updated guidelines for “statutory unitization applications” (full copy below). That is, when a driller wants to form a unit for drilling by combining adjacent properties, the driller must first request permission from the ODNR to form a unit. In Ohio, a unit can be formed when the driller has 65% of the acreage in the unit under a lease agreement. In other words, these are the revised/new guidelines (i.e. hoops) drillers must jump through before the ODNR will agree to combine either willing, or unwilling (force pooled) landowners into a unit for drilling… Read More “Ohio DNR Issues New Pooling Guidelines for Drillers”

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    Green, OH Paying Lawyers $100K to Fund Stop NEXUS Crusade

    The City of Green, Ohio, located in Summit County (south of Akron, north of Canton) seems to have no problems with spending boatloads of taxpayer money on anti-pipeline efforts. A few weeks ago Green City Council voted to give $10,000 to the anti-pipeline CORN–Coalition to Reroute Nexus. We call the group CORNballs and have written extensively about their supposed desire to just see the NEXUS pipeline routed around them, pretending to be NIMBYs (see our CORN stories here). In reality, CORN wants the pipeline stopped, period. Anti-fossil fuel nuttery. But $10K for the CORNballs is small potatoes for Green–almost a distraction. The city has just “upped the ante” by voting to spend $100,000 to hire a Cleveland law firm to file a lawsuit “aimed at stopping the pipeline from being built or stopping the project altogether.” Since when was it legal for a city like Green to squander taxpayers’ money on cockamamie anti-fossil fuel lawsuits against legal American businesses that build energy infrastructure? Will someone please investigate Green council members and their ties to Big Green groups (no pun intended)? Smells to us like somebody is getting paid off somewhere…
    Read More “Green, OH Paying Lawyers $100K to Fund Stop NEXUS Crusade”

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    Ohio Legislators Push to Allow Fracking in State Parks, Forests

    Thumbing their collective noses at Ohio RINO Gov. John “foreigner hunter” Kasich, Republican legislators in the House added a “little-noticed provision” in the state budget deal that will give the legislature, and not the governor, the power to select members of the Ohio Oil and Gas Commission. That small change would have huge consequences. How? the Oil and Gas Commission is charged with approving potential drillers on state land. Five years ago, Kasich flip-flopped on the issue and since then has not allowed shale drilling in state-owned forests and state-owned parks–by refusing to add any new members to the Commission. It is a de facto moratorium from the governor that prevents fracking on state-owned land. Enough is enough. Republicans intend to change it this year…
    Read More “Ohio Legislators Push to Allow Fracking in State Parks, Forests”

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    Radical Green Groups Sue Fed Govt to Block Fracking in Ohio WNF

    After 10 long years, the Bureau of Land Management (BLM) auctioned 719 acres in Ohio’s Wayne National Forest (WNF) last December (see BLM Auction Leases 17 Parcels, 719 Acres in OH Wayne Natl Forest). In March, the BLM held a second auction for 1,180 acres (see 2nd Wayne Natl Forest Lease Sale Hauls in $5.2M, Double Expectations). Ultimately there are some 18,000 acres under consideration for leasing by the BLM in WNF. 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 more than a decade. Until now, with these lease sales. Just when progress was being made, three radical Big Green groups have sued the BLM and the U.S. Forest Service to prevent fracking in WNF. Yesterday the odious Sierra Club, Ohio Environmental Council, and Center for Biological Diversity filed a lawsuit (copy below) in federal court to block fracking in WNF…
    Read More “Radical Green Groups Sue Fed Govt to Block Fracking in Ohio WNF”

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    Environmentalist Argues Against Subsidies for Solar & Wind in Ohio

    Michael Shellenberger

    Michael Shellenberger is an American author, environmental policy expert, cofounder of the Breakthrough Institute and president of Environmental Progress. He was named a Time magazine Heroes of the Environment in 2008. He lives in San Francisco and is a big-time, lefty, lib, environmentalist wacko. But, he’s also an honest big-time, lefty, lib, environmentalist wacko. And for that, we respect him. Shellenberger sent a letter to the editor of the Akron Beacon Journal with the meme of stopping “discrimination against nuclear power.” Among his statements in the letter, Shellengberger says: “Like most environmentalists, I used to be opposed to nuclear power. I thought solar and wind would be enough. But the more I learned about solar and wind, I realized they could never power a high-energy industrial civilization.” Whoa, hold on. We’re dizzy and wobbling…having been knocked up side the head with straight truth from an environmentalist. Shellenberger goes on to make a very strong case that Ohio’s subsidies for solar and wind are, in part, killing nuclear energy in the state. He actually advocates an end to such subsidies. And for those who may not know, “subsidies” means Ohio Gov. John “foreigner hunter” Kasich wants to transfer money from the pockets of Ohio taxpayers into the pockets of businesses in the solar and wind industry. Shellenberger takes Kasich to task for such lunacy. Whoa, there we go again, wobbling…must hold on to something…
    Read More “Environmentalist Argues Against Subsidies for Solar & Wind in Ohio”