Taxation of Oil and Gas Reserves in Ohio Changing in 2016
Listen up Ohio landowners and drillers: there are important new changes coming in the way oil and gas reserves are taxed, starting THIS YEAR. One such change: tax bills will now only be issued to producers (i.e. drillers) and NOT to royalty interest holders (i.e. landowners). Therefore drillers will be responsible to collecting taxes owed by landowners. The new changes will “significantly change how the ad valorem tax is collected” and because of the changes, it will be “very important” for drillers to accurately report production volumes to the Ohio Dept. of Natural Resources (ODNR). Here’s a rundown of the changes from the legal beagles at top energy law firm Vorys…
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One of NGI’s (Natural Gas Intelligence) ace reporters, Jamison Cocklin, wrote a top notch news/analysis article last Friday in NGI’s Shale Daily publication about the “crucial priority” of new gathering pipelines and pipeline infrastructure in general that’s needed in the Utica Shale. Jamison made the observation that while not every operator in Ohio’s Utica Shale has shifted from focusing on wet gas extraction (concentrating on wells that extract not only methane but also natural gas liquids) to dry gas (or methane only), some of the biggies have. A change in focus doesn’t mean a change in geography. The change in focus from wet to dry is happening in core wet gas counties, including Monroe, Belmont and Jefferson…
In June MDN told you about an economic development group of business and government leaders from Ohio and West Virginia (the Mid-Ohio Valley) called Shale Crescent (see 
Last month MDN brought you the news that UK-based Velocys, a company that builds gas-to-liquids (GTL) plants has, for now, put a previously planned GTL plant project in Ashtabula, OH on hold (see 
Stark State College, located in North Canton, OH, has just been awarded a half million dollar grant from OH Gov. John Kasich’s Education Innovation program to provide ShaleNET education and training to students at Stark State’s sister schools, Eastern Gateway Community College in Steubenville, OH and Hocking College in Nelsonville, OH. MDN first reported on Stark’s new Well Site Training Center back in 2014 (see 
All the way back in February MDN brought you exclusive news that Shell had begun approaching landowners in Beaver County to get them to sign easements for two ethane pipelines to feed the mighty cracker plant they plan to build in the county (see 
While the number of permits issued to drill new wells in Ohio and Pennsylvania was down in July 2016 compared with July 2015, permit activity has picked up from earlier in the year. Finally. The question is, where are the new permits being issued? You have to have a permit before you have drilling. Permits are the best indicator of where drilling (and economic) activity is about to pick up. Below is a rundown of which counties are likely to soon see drilling–and which drillers will be doing the drilling…
The Federal Energy Regulatory Commission (FERC) has issued a favorable environmental assessment (EA) for three Spectra Energy projects: Access South, Adair Southwest and Lebanon Express. The three are part of an expansion of the Texas Eastern Transmission (Tetco) pipeline. 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. This is great news indeed!…
We’d never heard this before, but apparently the Marcellus/Utica has been known for some time as the “Beast of the East.” Fitting! However, our region has gone from “Beast of the East” to “Beast on a Leash.” Very true. Low prices have suppressed new drilling projects. But according to experts on a recent webinar held by S&P Global Platts, new Marcellus/Utica drilling “is imminent.” Now that’s REALLY good news! Here’s some other things said on the webinar…
In June MDN told you about another sham “study” on the way from an anti-drilling “researcher” from Yale University, funded by Big Green groups (see 
Ohio Gov. John “foreigner hunter” Kasich is finally getting back to work after it has sunk in he’s not going to be the Republican Party’s nominee for president. One of the first things up on the agenda for Kasich: Issue executive orders. On August 9th Kasich issued Executive Order (i.e. Edict) 2016-04K which forces companies in the oil and gas industry to immediately report o&g emergencies to the Ohio Dept. of Natural Resources’ (ODNR) Division of Oil and Gas Resources Management. The ODNR will then figure out who else needs to get notified and who should respond. Kasich’s Edict will expire in four months and is a band aid solution until the ODNR can adopt a formal, final rule…
The legal beagles at global law firm Norton Rose Fulbright have done us all a huge favor. Researchers have just issued a quarterly legislative action update for the second quarter of 2016 looking at previously laws acted upon, and new laws introduced, affecting the oil and gas industry in Pennsylvania, Ohio and West Virginia. The “Quarterly legislative action update: Marcellus and Utica shale region” (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…
