Ohio

Antero Resources | Belmont County | Energy Companies | Guernsey County | Noble County | Ohio | Rex Energy

Rex Energy Sells 4,100 Acres, 14 Utica Wells in OH to Antero Resources
January 5, 2017January 5, 2017

Rex Energy announced yesterday the company has cut a deal with Antero Resources to sell all of Rex’s “Warrior South Area” assets to Antero. Which may should like a big deal, but really isn’t. The assets sold include 4,100 net acres in perhaps the hottest part of the Ohio Utica Shale: Guernsey, Noble and Belmont counties. It also includes 14 Utica Shale wells. However, the wells are only producing 9 million cubic feet per day (MMcf/d) collectively. The sale price is $30 million–or $7,317 per acre. Rex says the acreage and wells are in a “non-core” area for the company. Rex, a driller focused mainly on the Marcellus/Utica (headquartered in State College, PA), has had its share of financial challenges. In December the company was warned by the New York Stock Exchange that the per share price is too low and the stock is in danger of being delisted (see Rex Energy Stock Threatened with De-Listing by Nasdaq). This sale is the latest in a string of sales meant to improve the company’s financial health…
Read More “Rex Energy Sells 4,100 Acres, 14 Utica Wells in OH to Antero Resources”
American Water Management | Energy Services | Industrywide Issues | Litigation | Ohio | Regulation | Trumbull County

OH Judge Orders ODNR to Allow Shuttered Injection Well to Reopen
January 5, 2017January 5, 2017

American Water Management Services (AWMS) owns a wastewater injection well in Trumbull County that supposedly caused a low-level earthquake (that nobody could feel) in 2014. Two wells located at the site, both operated by AWMS, were “temporarily” shut down by the Ohio Dept. of Natural Resources following the quake (see ODNR Temporarily Shuts Down Injection Wells After Low-Level Quake). One of the two injection wells was allowed to re-open, but not the other (see ODNR Clears Trumbull Co. Injection Well in August Quake). However, AWMS can’t open just the one well. They need to open both and operate both. The ODNR is supposedly crafting new regulations that will govern the offending well that may or may not have caused the low-level quake and a year-and-a-half later the ODNR has not released those new regs. Meanwhile, everyone at that operation is out of a job. AWMS appealed the closure and in December 2015, a county judge threw out the appeal (see Judge Tosses Appeal to Re-Open Trumbull, OH Injection Well). So AWMS appealed it to the next level up–the 10th District Court of Appeals–in January 2016 (see AWMS Appeals Decision Upholding Trumbull Injection Well Closure). We’re not sure where the Appeals Court case sits, but a county judge has just ordered ODNR and AWMS to submit paperwork that will allow the well to reopen. Soon. The judge is telling the ODNR, no more foot-dragging. Get it done, now…
Read More “OH Judge Orders ODNR to Allow Shuttered Injection Well to Reopen”
Eclipse Resources | Energy Companies | Monroe County | Ohio

Mgmt Musical Chairs at Eclipse, “Gen-3” Utica Wells Go Online
January 4, 2017January 4, 2017

Two members of Eclipse Resources’ top management team are playing musical chairs as part of the company’s plan to “accelerate growth” in 2017. Tom Liberatore, currently executive VP and COO is dropping the COO title and becoming executive VP of corporate development and geosciences. Meanwhile, Oleg Tolmachev, currently senior VP of drilling and completions is becoming executive VP and COO. Tolmachev’s star is clearly rising and he is now the man running the Utica/Marcellus drilling program for the company. In the same press release, the company said it has now completed and brought online five Utica wells in Monroe County, OH. The wells are the first dry gas Utica wells to use Eclipse’s new “Gen-3” completion design. What is Gen-3? And what does the musical chairs at Eclipse have to do with Gen-3?…
Read More “Mgmt Musical Chairs at Eclipse, “Gen-3” Utica Wells Go Online”
Earthquakes | Industrywide Issues | Ohio | Regulation | Statewide OH

ODNR Says No ‘Felt’ Earthquakes from Injection Wells Last 5 Yrs
January 4, 2017January 4, 2017

On Dec. 31, 2011, the Youngstown, OH area experienced a 4.0 earthquake that was later determined to be caused by a wastewater injection well (see Youngstown Earthquake and Fracking: Is There a Connection? and ODNR Finds Youngstown Injection Well Caused Earthquakes). The Ohio Dept. of Natural Resources (ODNR) later enacted new regulations to prevent future occurrences of earthquakes from either injection wells or fracking itself (see Did ODNR Overreact & Set Earthquake Detect Bar Too Low?). As we pointed out in 2014, the new rules would have shut down the Cleveland Browns stadium–if all of the fans were to begin stomping their feet it would create an “earthquake” greater than the allowed limits set by ODNR. Since the new rules were enacted there have continued to be earthquakes in Ohio, but not “felt” earthquakes from injection wells (see Study Says Series of Unfelt Earthquakes in OH from Utica Fracking). Typically an earthquake must reach 2.5 on the Richter scale to be felt on the surface. Since spring of 2012, there have been no major (above 2.5) earthquakes in Ohio related to injection wells, although there have been a few felt earthquakes supposedly tied to fracking over an active fault (see OH Researchers Confirm Hilcorp Fracking Caused Low-Level Quakes). Now five years later, the ODNR is patting itself on the back, taking credit for the reduced number of earthquakes tied to injection wells, because (they say) of their super-restrictive regulations…
Read More “ODNR Says No ‘Felt’ Earthquakes from Injection Wells Last 5 Yrs”
Industrywide Issues | Ohio | Pennsylvania | Regulation | Statewide OH | Statewide PA | Statewide WV | West Virginia

Marcellus/Utica Drillers Ask for Special Permit to Kill Some Bats
January 4, 2017January 4, 2017

In April 2015 the Obama administration’s U.S. Fish and Wildlife Service (USFWS) did a disservice to not only the drilling industry, but the wind industry, farmers and the construction industry. USFWS listed the northern long-eared bat as “threatened” under the Endangered Species Act (see US Fish & Wildlife Fixes Wrong Problem for Northern Long-Eared Bat). USFWS says a fungus is spreading through the bat population, killing it. The northern long-eared bat is found in pretty much the eastern two-thirds of the country, minus Florida. The Independent Petroleum Association of America (IPAA) pointed out that USFWS has admitted the the bat is threatened because of something called white nose syndrome–which has nothing to do with habitat destruction. Yet drillers and midstreamers are now hamstrung with new regulations to “save the bats” even though they are not the ones causing harm to the bats. There are other bat species also on the threatened and endangered list, including the Indiana bat, eastern small-footed bat, little brown bat and tri-colored bat. All five species are in decline because of white nose syndrome. Drillers and midstreamers can’t cut down trees from April 1st through October 31st of each year for fear of killing a bat that may be roosting in the tree. This is nuts! Cutting a few trees here and there will not further deplete the bat population–but the thugish USFWS won’t budge. So a coalition of Marcellus/Utica drillers and midstreamers have asked the USFWS to grant them a special permit to allow them to inadvertently kill the odd bat between April and October. USFWS is now conducting a full environmental impact statement, which won’t be ready until next year…
Read More “Marcellus/Utica Drillers Ask for Special Permit to Kill Some Bats”
Industrywide Issues | Ohio | Statewide OH | Taxation

OH Gov Kasich Vetoed Misnamed ‘Tax Relief’ for Utica Drillers
January 4, 2017January 4, 2017

As we reported in December, Ohio legislators sent Gov. John “foreigner hunter” Kasich a bill at the end of the year with provisions that clear up language regarding tax exemptions for the oil and gas industry (see OH Gov Kasich May Veto Misnamed ‘Tax Relief’ for Utica Drillers). Ohio state auditors have taken advantage of unclear language to aggressively go after oil and gas companies over legitimate tax breaks they receive under Ohio law (to not pay taxes on equipment used directly in producing oil and gas). Lawmakers want to end the tax witch hunts by clearing up language. But Democrats and RINO Kasich are trying to position the issue as a “tax break” under which up to $264 million would have to be refunded to Big Oil. Which is, of course, a lie. Kasich decided to take the low road and continue to demagogue the issue. He vetoed the bill…
Read More “OH Gov Kasich Vetoed Misnamed ‘Tax Relief’ for Utica Drillers”
Electrical Generation | Guernsey County | Industrywide Issues | Ohio

Planned OH Utica-Powered Electric Plant Goes from 1,100 to 1,650 MW
January 3, 2017January 3, 2017

In April 2016 MDN told you about the Guernsey Power Station–a new Utica/Marcellus natural gas-fired electric generating plant proposed for Guernsey County, OH (see New Utica-Powered Electric Plant Proposed for Guernsey County, OH). Apex Power Group at that time said they want to build a large 1,100 megawatt plant in Valley Township–producing enough electricity to power 1 million homes. The plant will generate 500 jobs during construction, and 25 full-time jobs to operate the plant when it’s completed. Apex says construction is targeted to begin in 2018 and will go online in 2020. The good news is that Apex and joint venture partner Caithness Energy have now filed a pre-application for the project–and the application shows they no longer want to build an 1,100 megawatt plant, they now want to build a whopping 1,650 megawatt plant! That’s the biggest natgas-fired electric plant we’ve heard of so far–anywhere. The previous title-holder was Dominion’s 1,600 megawatt plant currently under construction in Greensville County, VA (see Dominion Begins Building Virginia’s Biggest NatGas Power Station). Here’s more about the Guernsey Power Station…
Read More “Planned OH Utica-Powered Electric Plant Goes from 1,100 to 1,650 MW”
Industrywide Issues | Ohio | Statewide OH | Taxation

OH Gov Kasich May Veto Misnamed ‘Tax Relief’ for Utica Drillers
December 23, 2016December 23, 2016

“The Nerve”

Ohio Gov. John “foreigner hunter” Kasich has been hellbent for leather to tax Utica drillers more, over the past, what? Four years now? He’s wanted to hike the existing severance tax in a bid to give away driller’s money to other people–like a good Democrats and RINOs do (see OH Gov Kasich the Bully: Accept My 6.5% Tax or Risk a 10%+ Tax). So image how it must have galled Kasich to learn that a bill he’s about to sign, or veto, has provisions “slipped in” that clear up language regarding tax exemptions for the oil and gas industry (the nerve of those lawmakers!). Ohio state auditors have taken advantage of unclear language to “aggressively” go after oil and gas companies over legitimate tax breaks they receive under Ohio law (to not pay taxes on equipment used directly in producing oil and gas). Lawmakers want to end the tax witch hunts by clearing up language, and Democrats and RINO Kasich are trying to position the issue as a “tax break” under which up to $264 million would have to be refunded to Big Oil. It’s nothing of the sort…
Read More “OH Gov Kasich May Veto Misnamed ‘Tax Relief’ for Utica Drillers”
Energy Services | Industrywide Issues | Ohio | Pennsylvania | Pipelines | Regulation | Spectra Energy | Statewide OH | Statewide PA

FERC Issues Certificates for 3 Spectra Energy Pipe Projects in M-U
December 23, 2016December 23, 2016

In August, the Federal Energy Regulatory Commission (FERC) issued a favorable environmental assessment (EA) for three Spectra Energy projects: Access South, Adair Southwest and Lebanon Express (see FERC Approves 3 Spectra Energy Pipe Projects in Marcellus/Utica). The three are part of an expansion of the Texas Eastern Transmission (Tetco) pipeline, owned by Spectra Energy. The combined projects will transport an additional 662,000 dekatherms per day (or 662 million cubic feet) of Marcellus and Utica Shale gas from Pennsylvania to Ohio, Kentucky and Mississippi. Once a favorable EA is issued, the final step is for the fat lady to sign–that is, for FERC to issue the final, actual certificate that says a company can begin building. That just happened. FERC has just issued the final certificate for the three projects, meaning compressor station upgrades will now begin, and new pipeline will get built through eastern Ohio…
Read More “FERC Issues Certificates for 3 Spectra Energy Pipe Projects in M-U”
Industrywide Issues | Ohio | Pennsylvania | Regulation | Statewide OH | Statewide PA | Statewide WV | West Virginia

Updated List of Proposed Laws in PA-OH-WV Affecting Marcellus/Utica
December 23, 2016December 23, 2016

The legal beagles at global law firm Norton Rose Fulbright continue to do us all a huge favor. Researchers at the law firm issue a quarterly legislative action update looking at bills and laws previously voted on, and new bills/laws introduced, affecting the oil and gas industry in Pennsylvania, Ohio and West Virginia. The “Quarterly legislative action update: Marcellus and Utica shale region” for 4Q16 (full copy below) begins with a quick listing by state for existing or new laws introduced, with descriptions for each bill/law. This is, in one place, pretty much everything you need to know about what new laws (i.e. regulations) are coming down the pike that will affect the Marcellus and Utica Shale drilling industry…
Read More “Updated List of Proposed Laws in PA-OH-WV Affecting Marcellus/Utica”
Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

Wave of New Fracking About to Hit the Marcellus/Utica
December 22, 2016December 22, 2016

Based on a recent uptick in new permits issued in PA, OH and WV, a writer for the Daily Caller says “a wave of new fracking is about to hit Appalachia.” We agree! Recent trends all point to an increase in drilling–which is good for landowners, jobs, taxes and the environment (more gas lowers CO2 emissions, if you believe in man-made global warming). Here’s a startling statistic: Fracking is estimated to have generated 4.6 million new jobs and $3.5 trillion in new wealth–in just three years (see today’s companion story). Surf’s up! Here’s the evidence that a new “wave” of fracking is on the way in our neighborhood…
Read More “Wave of New Fracking About to Hit the Marcellus/Utica”
Baker Hughes | Energy Services | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

Cool Tool Shows Where Working Rigs are Located in M-U
December 21, 2016December 21, 2016

The GoMarcellusShale Forum where landowners and others interested in shale drilling hang out and swap messages back and forth was recently updated to become ShaleForum.com. It’s an excellent site with lots of great chatter going on for those with an interest in shale-related matters, including a very active Marcellus/Utica discussion. One of those discussions recently caught our eye. A poster on ShaleForum provided a link to an interactive map application hosted by Baker Hughes. We had not previously seen the app and found it to be very useful. The app shows where all of the active rigs currently drilling are located–across the entire country. You can filter the app to show only states or regions you are interested in. We played with it a bit to show you maps for PA, WV and OH where shale rigs are currently located…
Read More “Cool Tool Shows Where Working Rigs are Located in M-U”
Eclipse Resources | Energy Companies | Monroe County | Noble County | Ohio

Eclipse Sells 9,900 “Non-Core” Acres in OH for $6,444/Acre
December 20, 2016December 20, 2016

Eclipse Resources, a Marcellus/Utica pure play driller headquartered in State College, PA that drills mostly in Ohio, announced yesterday they sold 9,900 net acres in eastern Noble County and western Monroe County, OH for $63.8 million to an undisclosed buyer. That works out to be $6,444 per acre. The assets are in areas that are (currently) undeveloped, according to the company, and not in the “core” of where Eclipse wants to drill. Here’s the company announcement…
Read More “Eclipse Sells 9,900 “Non-Core” Acres in OH for $6,444/Acre”
Eclipse Resources | Energy Companies | Flat Rock Development | Gulfport Energy | Lease & Royalty Payments | Ohio | Statewide OH

OH Wayne National Forest – List of Auction Winners
December 20, 2016January 6, 2017

As we previously noted, last week the Bureau of Land Management (BLM) proceeded with an online auction for BLM-controlled land in Ohio’s Wayne National Forest (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 totaling 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. Who purchased and how much? Just four drillers won the bids, which totaled $1.7 million. Three of the four have active drilling programs in the Utica Shale. Here is who won, and how much they paid (by parcel)…
Read More “OH Wayne National Forest – List of Auction Winners”
Lease & Royalty Payments | Ohio | Statewide OH

BLM Auction Leases 17 Parcels, 719 Acres in OH Wayne Natl Forest
December 14, 2016December 14, 2016

As we mentioned in a story yesterday, the Bureau of Land Management proceeded with an online auction for BLM-controlled land in Ohio’s Wayne National Forest (see 10-Yr Wait is Over, BLM Auctions Wayne Natl Forest Leases Today). 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. Those other parcels may later be offered via auction, if they get everything squared away. The 719 acres was all leased by noon and brought bids ranging from $2,000 to $5,000 per acre. Let the fracking begin!…
Read More “BLM Auction Leases 17 Parcels, 719 Acres in OH Wayne Natl Forest”
Energy Services | Ohio | Rockies Express Pipeline | Statewide OH | Tallgrass Energy

Reversed REX Pipeline Goes from 1.8 Bcf to 2.0 Bcf
December 14, 2016December 14, 2016

The Rockies Express Pipeline (REX), originally built from Colorado and Wyoming to Monroe County, OH to bring natural gas from west to east, last year reversed the flow for a large and important section of the pipeline. On August 1, 2015 the section of REX from Monroe County, OH to Mexico, MO reversed the flow and began to carry 1.8 billion cubic feet per day (Bcf/d) of Utica and Marcellus Shale gas to the Midwest, including to the greater Chicago area. REX has been hard at work on plans to expand capacity even more by beefing up compressor stations along portions of the pipeline. REX filed a plan with FERC to add another 800 million cubic feet per day (MMcf/d) of capacity along the same portion of the reversed pipeline. In late November, the Federal Energy Regulatory Commission (FERC) gave REX the go-ahead to start additional compressors added at three locations along the route (see REX Pipe Begins Flowing Extra 800 MMcf/d Marcellus/Utica Gas West). NGI is reporting that the first 200 MMcf of the additional 800 MMcf is now flowing along the pipeline…
Read More “Reversed REX Pipeline Goes from 1.8 Bcf to 2.0 Bcf”