Ohio

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    Video of Rover Pipeline’s Massive & Complex Construction in OH

    Rover Pipeline passes through tip of Richland Co.

    MDN spotted a story and video from an Ohio television station about the construction under way for Energy Transfer’s Rover Pipeline, in Richland County, OH. The video, taken from an airplane, shows just how massive and complex such a project actually is. The video shows the swatch being worked on, for miles and miles, to clear a right-of-way and the trench being dug to lay the pipe. We couldn’t count how many bulldozers, backhoes and people are working over the several miles the video covers. Again, it is a MASSIVE and complex project, with multiple locations where the builder must drill underneath roads, streams and other areas where you can’t just dig a trench. Below is a screenshot from one segment of construction in Richland County, and a link to watch the full 3 minute video (worth the watch!)…
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    Jobs in Building Trades “Strong” for Next 3 Yrs in OH Utica

    Those who oppose fossil fuels try various arguments to convince the general public that extracting oil and gas is bad for the environment. They claim (without facts or proof) that drilling pollutes the water, it pollutes the air, it does permanent damage to the environment. When faced with lack of evidence, antis slip-slide into other arguments against drilling and pipelines. An undeniable benefit from the shale industry is jobs. That includes jobs building pipelines. You need an army of bulldozers, backhoes, truckers, welders and construction workers to lay a pipeline (see today’s lead story and the awesome video of the Rover Pipeline getting built in Richland County). Antis say, “But jobs building pipelines and power plants and processing plants are temporary. They’re illusory. No long-term benefit.” We’ll never forget the powerful statement given at a hearing about the proposed Constitution Pipeline from Francis Cooney, a 28-year member of the plumber and pipe-fitters union. He said this in response to the “those jobs are temporary” meme offered by antis that evening: “For 28 years every job I’ve had has been a temporary job! My temporary jobs have put two kids through Syracuse University” (see Vicariously Attend FERC Scoping Hearing on Constitution Pipeline). Which obliterates the nonsense about “temporary jobs.” Good news for Ohioans who work “temporary jobs” in the trades in Stark and surrounding counties: Dave Kirven, president of the East Central Ohio Building & Construction Trades Council, says there’s plenty of work for tradespeople–that demand is “strong” for tradespeople for at least the next three years. Why? Mostly due to the Utica Shale…
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    Wayne National Forest 2nd Lease Auction – List of Winners

    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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    Coal King Robert Murray Still Spoiling for a Fight with NatGas

    Robert Murray

    Murray Energy CEO Robert Murray is an interesting character. We’ve reported on him a number of times over the years. Murray went after Aubrey McClendon when Aubrey named is new company American Energy Partners. Murray claimed a subsidiary company he owns already had that name. Eventually a court told Aubrey he could keep the name (see Federal Court Decides McClendon Can Keep ‘American Energy’ Name). In early 2016 Murray went after the shale gas industry in West Virginia. He said WV should lower the coal severance tax from 5% to 2%, and raise the natgas severance tax from 5% to whatever, in order to give coal a break in the Mountain State (see Why Can’t We be Friends: Can Coal & NatGas Get Along in WV?). Even though he rails against natural gas, Murray found it in his heart to lease some of his coal mining property for natgas drilling, twice (see Coal Company Leases 6K Acres for Natgas Drilling in Belmont, OH and Coal Co. Murray Energy Sells 5,900 OH Utica Acres – Who Bought?). The second lease was for $10,800/acre. Seems Murray says one thing but does another when it comes to natgas. Today President Trump delivers on yet another campaign promise by rolling back some of Obama’s draconian environmental regulations–specifically the Clean Power Plan–which will benefit Robert Murray and the coal industry. At least, theoretically. The jury is still out on whether coal will ever come back. Recently the Columbus Dispatch interviewed Murray. He maintains that coal can compete with natural gas “all day long” if only coal had a “level playing field.” Here’s what he said…
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    Respectable Volume of Oil (Yes, Oil!) Coming from Marcellus/Utica

    We spotted an article on The Motley Fool website by one of our favorite authors, Matt DiLallo. The article shines a light on the states that produce the most shale oil. Surprisingly (for us), the Marcellus/Utica was in the list. Appreciable amounts of shale oil are coming from Ohio, Pennsylvania and West Virginia, from both the Marcellus and Utica formations. Of course the amount produced in our neighborhood pales in comparison to the enormous amounts of oil coming from the Texas Permian and North Dakota Bakken. But hey, the fact that we even show up in such a list is kind of exciting…
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    2nd Wayne Natl Forest Lease Sale Hauls in $5.2M, Double Expectations

    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)…
    Read More “2nd Wayne Natl Forest Lease Sale Hauls in $5.2M, Double Expectations”

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

    [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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    OH Court Says Grandkids Can Claim Mineral Ownership Under DMA

    MDN has previously highlighted the importance of last year’s Ohio Supreme Court decision with regard to the Ohio Dormant Mineral Act (DMA). In September 2016 the OH Supreme Court ruled in three DMA cases, saying all of the other cases come under those three (see Important: OH Supreme Court Finally Rules on Dormant Mineral Act). Following that ruling, we brought you insights on what it means from international law firm Jones Day (see One More Look at Important OH Supreme Court DMA Decision). We later ran a copy of an analysis done by attorney David Wigham, who said, “[T]he landscape regarding title and ownership to mineral interests in Ohio has significantly changed” (see Expert Says OH DMA Decision “Significantly Changed” Mineral Rights). The ramifications of the Supreme Court’s decision continues–and various aspects of the now-settled law are still, well, getting settled. Under the DMA if a surface landowner advertises his or her intent to reclaim mineral rights (when the rights have been dormant for period of years), the rights owners have a certain amount of time to respond to reassert their ownership. But what if the original rights owners are now dead. Can their heirs, as in grandchildren, claim those rights? Under a case just decided in Ohio’s Seventh District Court of Appeals, the answer to that would be, “Yes”…
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    OOGA Joins Fight Against Obama BLM Venting-Flaring Rules

    In January 2016, the Obama Dept. of Interior posted a new rule that will make it all but impossible for oil and gas drillers to drill on federal lands (see Obama’s Interior Dept. Sneaks in New Rule to Limit Methane). The new 298-page rule requires companies to use expensive equipment to capture every last molecule of methane, the stuff these companies already capture so they can sell it, to prevent any “fugitive” methane from escaping into the atmosphere where it contributes to mythical global warming. Obama has also hiked the price drillers will pay to drill on federal lands. The aim is, of course, to shut down drilling on all federal lands. The “venting and flaring rule,” as it’s known, was adopted by the outgoing Obamadroids in the closing days of Obama’s ignominious administration. The new rule was due to be rolled back by a vote in the new Republican-controlled Senate. But that hasn’t happened–yet. Timid Republicans are afraid that rolling back the horrible rule will lose them votes with green radicals (not that greens will ever vote for them anyway). There is a full court press to get the Senate to vote. The Ohio Oil & Gas Association (OOGA), representing hundreds of Ohio drillers, has joined the effort and is trying to convince Ohio Republican Sen. Rob Portman to support the repeal of the BLM rule…
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    MDN Exclusive: 2016 Ohio Wastewater Disposal Market Report

    We are super excited to bring you an exclusive report that has just been released by MDN subscriber Andrew Kilgore. The report is titled “2016 Ohio Wastewater Disposal Market Report” (full copy below) and it details the wastewater injection well industry in Ohio. Andrew has spent most of his career working in the Appalachian Basin. He is an alumnus of BlueJack Energy (see Wastewater Co. BlueJack Energy Launches with $100M Investment), EnLink Midstream, and co-founder of UM Resources. Andrew authored the report and offered to let MDN be the first media outlet to release it. We thank him! The report finds that in 2016 the total amount of wastewater disposed of in Ohio was 29.4 million barrels–almost 2 million fewer barrels disposed of compared to 2015. The majority of the decline was from wastewater from out-of-state slowing down (i.e. from Pennsylvania and West Virginia). The report outlines a number of reasons for the decline in wastewater volume disposed in OH, with the primary reason being less drilling due to the low commodity price of natural gas. A few quick facts from the report: Washington County, OH saw the most volume of wastewater disposed. Buckeye Brine processed the most wastewater volume. Here’s the full report…
    Read More “MDN Exclusive: 2016 Ohio Wastewater Disposal Market Report”

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    Ohio Utica Production 4Q16 – Oil Down, NatGas Up

    The Ohio Dept. of Natural Resources (ODNR) has just issued production numbers for the fourth quarter of 2016. The bad news is that oil production continued to slide in 4Q16, down 44% from the same quarter in 2015. The good news continues to be natural gas production, which was up 14% over the same period in 2015. The even better news: Natural gas production in Ohio for all of 2016 was 1.37 trillion cubic feet, vs. 955.61 billion cubic feet in 2015. Awesome! Ascent Resources (formerly Aubrey McClendon’s American Energy) continued to dominate in natural gas production. Ascent had the top producing well in 4Q16, as they did in 3Q16. In fact, Ascent had 9 of the top 10 producing natural gas wells in Ohio during 4Q16. Gulfport Energy was the only other producer to break the top 10, with one well. Over on the oil side of the isle, Eclipse Resources once again had the top producing oil well with their Purple Hayes well–currently the longest horizontal well drilled in the United States at 3.5 miles long (located in Guernsey County). Purple Hayes is the gift that keeps on giving, quarter after quarter! Below we have the ODNR’s high level overview of the numbers, along with MDN’s own exclusive analysis showing: the top 25 producing gas wells, the top 25 producing oil wells, and then the top 25 gas and oil wells as ranked by average production per day. There is a difference…
    Read More “Ohio Utica Production 4Q16 – Oil Down, NatGas Up”

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    OH Lawmakers Propose Their Own Version of a PA Impact Fee

    We find it kind of amusing. Anti-drillers and Democrats (usually one and the same) in Pennsylvania bellyache and moan and groan that PA is “the only oil and gas state without a severance tax” and how life would be SO much better if only PA had a severance…blah blah blah. They point out that Ohio has a severance tax. West Virginia has a severance tax. EVERYBODY has a severance tax. Of course they conveniently ignore (or lie about) the fact that PA has an impact fee, or an impact tax, if you will. The impact fee levies a charge on new wells for a number a years on a sliding scale. Think of the impact fee like a property tax, and a severance tax like a sales tax on goods sold. The beauty of the impact fee is that 60% of it stays in the communities where drilling actually happens. Impact fee revenue goes to local municipalities to offset the “impacts” of drilling in those communities, money used for things like fire departments, police, roads, etc. An impact fee is superior to a severance tax in many ways. While OH and WV’s severance tax revenue went over a cliff when the price of natural gas went over a cliff, PA’s impact fee was far less affected. But the point of this post is not in the relative merits in the type of taxation. The point is that legislators in Ohio want to reallocate some of their severance tax revenue to be used in communities where Utica drilling happens. That is, they want to convert some of the OH severance tax into, essentially, an impact fee. So while PA bellyaches about having an impact fee and not a severance tax, states (like OH) that actually have a severance tax, would rather have an impact fee!…
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    List of 11 Utica Shale Electric Plants Coming Soon to Ohio

    Earlier this month MDN brought you a list of the existing and/or planned natural gas-fired electric generating plants in Ohio (see 43 Existing/Planned Gas-Fired Elec Plants Overtaking Coal in OH). Thanks to the crack researchers at Energy in Depth, we now have a more detailed list (who’s building it, where it’s being built, how much it will cost) for 11 OH natgas power plant projects that are either construction now, or soon will be…
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    OH Supreme Court to Hear Appeal re Driller Who Won’t Explore Utica

    What if a landowner leased his or her land decades ago and a driller drilled a conventional natural gas well on the property, and that well has produced commercial volumes of natural gas for years–and still does. And what if the lease gives that driller the right to drill (or not drill) in any given rock lawyer. And what if that driller is content to simply let that conventional well keep producing and not drill further down, into the now commercially viable Utica (or Marcellus) shale layer? Does the landowner, whose land is located where the Utica/Marcellus exists, have any case for taking back the rights to the deeper shale layers the conventional driller refuses to go after? That’s a case that has now worked its way all the way to the Ohio Supreme Court. The question turns on whether or not “reasonable development” in a lease includes unexplored, deep formations…
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    OH Couple Illegally Blocks Rover Pipeline Workers from Their Land

    A somewhat misguided couple who own land in Harrison County, OH and object to Rover putting a pipeline through their land have decided to break the law. Contractors working for Energy Transfer to clear trees and dig a trench to lay pipeline across their land have been working on their land, on an off, for the past three weeks. Sheila Bittinger and her husband Stanley say they’ve had enough and the couple parked several vehicles across the entrance to their property to prevent any more work on the pipeline. It sounds as if they want to get arrested and that they know this particular bit of “civil disobedience” will result in absolutely nothing. But they’re doing it all the same. If you watch the video (below) you get the impression these are honest, country folks who feel like they’ve gotten a raw deal. We wonder if these landowners have been manipulated by slick lawyers who see a big payday coming from a lawsuit against Rover Pipeline…
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    Leach XPress Pipeline Begins Drilling Under the Ohio River

    Leach XPress Map Showing BM-111 Loop – click for larger version

    In August 2014, MDN told you that Columbia Pipeline Group decided to move forward with investing $1.75 billion dollars for two new projects: the Leach XPress and Rayne XPress pipeline projects (see Columbia Gas: $1.75B for 2 Projects to Send Marcellus Gas to Gulf). Leach Xpress will begin in Marshall County, West Virginia, cross Ohio and end up in Leach, Kentucky. In January 2017, the Federal Energy Regulatory Commission (FERC) approved the two projects (see FERC Approves $1.8B Leach & Rayne XPress Pipeline Projects). Construction has since begun. Part of the Leach XPress project is a sub-project called the BM-111 Loop, three-mile segment of 36-inch diameter pipe, extending from Columbia’s existing Burlington, OH (Lawrence County) meter station. That segment will go under the Ohio River. Work on the BM-111 Loop, which will employ 140 people during construction, has just begun…
    Read More “Leach XPress Pipeline Begins Drilling Under the Ohio River”