Ohio

Industrywide Issues | Ohio | Statewide OH | Wastewater

OH’s Injection Wells See All-Time High Frack Disposal in 2015
March 7, 2016March 7, 2016

Even with rigs being idled and the coming “dramatic” slowdown in drilling in the Marcellus/Utica (see today’s companion story), there’s one thing that is predictable–wastewater will increase. How can that be? Long after a well is drilled, water from deep below the earth (below what we think of as the aquifer or drinking water table) continues to pour out of a drilled hole. This super-salty water is often referred to as brine. Sometimes called produced water. And it comes out of the hole for years after the hole is drilled. Until now, most active drillers recycled the brine coming from their wells to reuse as a source for fracking new wells. But now, with companies idling most–even all of their rigs–what do they do with all of that water? It must be disposed–and the most likely candidate is an injection well. Most of the injection wells used by Marcellus/Utica drillers are located in Ohio. So it was no surprise to learn that the volume of brine disposal in Ohio jumped 27% in 2015–to a new all-time record of 28.8 million barrels…
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Carroll County | Hydraulic Fracturing | Industrywide Issues | Ohio | Research

Chorus Grows Louder for U of Cinci to Release Fracking Study
March 7, 2016March 7, 2016

The chorus is getting louder for the University of Cincinnati to release the results from a detailed study of water wells in Carroll County, OH undertaken by researchers at the university. We previously told you that the lead researcher shared some high level results from the study, and those results show that fracking in areas where there are water wells doesn’t affect those wells (see Antis Not Happy with Results of OH Fracking Study They Funded). Two anti-drilling groups were the primary funders of the study–Deer Creek Foundation in St. Louis and the Alice Weston foundation from Cincinnati. The two groups immediately cut their funding when they heard results they believe they didn’t pay for (see Anti Groups Abruptly Cut Funding for OH Fracking Study). But here’s the thing: They were not the only funders. The researchers also accepted public money–an $85,714 grant from the Ohio Board or Regents and the use of a spectrometer purchased through a $400,000 grant from the National Science Foundation. That’s public money–and the research is public research that should be released immediately. U.S. Andy Thompson, R-Marrietta, and the U.S. Chamber of Commerce are now calling on the university to release the study. Below we have their calls for the university to cough up the research, along with comments from a researcher involved with the study…
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Industrywide Issues | Ohio | Statewide OH | Taxation

Insanity: Ohio Dems Seek 7.5% Severance Tax in Severe Downturn
March 7, 2016March 7, 2016

Ever wonder why the Democrat refrain is always to raise taxes–never to cut spending. What is that? Perhaps they’re born with a “taxing” gene. The innocent-sounding but rabidly partisan group Policy Matters Ohio (founded by, led by, populated by, run by Dems) is once again making the case that because local governments get less revenue in this current downturn, with production in the Utica Shale continuing to expand, Ohio should tax the @#$% out of drillers by increasing the severance tax–as if the money earned by drillers/private businesses (at great risk and hard work) somehow belongs to politicians in Columbus with sticky fingers…
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Electrical Generation | Industrywide Issues | Monroe County | Ohio

Old Ormet Site in Monroe, OH Shopped as Power Plant Location
March 3, 2016March 3, 2016

Going back a few years we’ve written about what used to be Monroe County, OH’s largest employer–the Ormet aluminum smelter plant–at one time employing 900 people. Ormet tried to get a price concession on electricity but couldn’t, so the plant closed (see Final Chapter of Ormet Plant Closing – Utica Could have Saved It). Niagara Worldwide bought the plant out of bankruptcy and renamed it Center Point Terminal. Early on they worked to convert part of it as a transloading facility for the shale industry (see Out with Old Ormet Plant, In with New Center Port Transload Facility). They also converted part of it into a barge facility (see New Ormet Aluminum Plant Owner Shops Barge Facility to Shalers). Niagara is now advertising the site as a perfect location for natural gas-fired power plants to locate at…
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Butler County | Carroll County | Energy Companies | Ohio | Pennsylvania | Rex Energy

Stayin’ Alive: Rex Energy $175M JV to Keep Drilling in PA & OH
March 2, 2016March 2, 2016

Rex Energy, a relatively small driller that drills almost exclusively in the Marcellus/Utica and with headquarters in State College, PA, has a new investor/partner. Drillers across the country and doing everything they can to stay in business with the bottom dropping out of prices they receive for what they produce. Rex is getting $175 million from investment firm Benefit Street Partners to help drill up to 58 new wells in Rex’s Moraine East area (Butler County, PA) and Warrior North area (Carroll County, OH). In return for investing, Benefit Street Partners will receive ownership of anywhere from 15% to 65% in the wells they help fund. Below are the details for how Rex is stayin’ alive…
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Belmont County | Energy Services | Ethane | Industrywide Issues | Ohio | Processing Plants | PTT Global

Getting Serious: Ohio Ethane Cracker Gets its Own Website
March 1, 2016March 1, 2016

A brief mention, because it’s noteworthy. PTT Global is the Thailand-based chemical company floating a plan to build a multi-billion dollar ethane cracker plant in Belmont County, OH (see It’s Official: Belmont County Chosen as POSSIBLE Cracker Plant Site). Since the announcement last April, PTT has taken a number of steps toward making the Belmont ethane cracker a reality. They are in the midst of spending $100 million on engineering plans for the plant (see PTT Announces 2 Contractors Working on Belmont Cracker Plant). Paris, France-based Technip was also hired to design and build the furnaces and other key components of the cracker (see French Co. Gets Contract for Key Components in Belmont Cracker). It may seem minor in comparison, but PTT has just launched a new website dedicated to the cracker plant project…
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Electrical Generation | Industrywide Issues | Ohio | Trumbull County

Lordstown, OH May Get Second Utica Gas-Powered Electric Plant
February 26, 2016February 26, 2016

An $800 million electric generation plant planned for Lordstown (Trumbull County), OH that will be powered with Utica Shale gas won village approval last summer (see Lordstown $800M Gas-Powered Electric Plant Gets Village Approval). The Lordstown plant then won state approval in the fall (see Lordstown $800M Gas-Powered Electric Plant Gets OH State Approval). Now comes word that the company planning to the build the plant–Massachusetts-based Clean Energy Future–is considering building a second plant at the same location. Here’s an update on the first plant, scheduled to break ground on April 1, and the rumors swirling about a second plant…
Read More “Lordstown, OH May Get Second Utica Gas-Powered Electric Plant”
Energy Services | Energy Transfer Partners | Industrywide Issues | Ohio | Pennsylvania | Pipelines | Regulation | Statewide OH | Statewide PA | Statewide WV | West Virginia

FERC Says Rover Pipeline as Planned Negatively Impacts Environment
February 22, 2016February 22, 2016

In December 2014 Energy Transfer Partners filed their draft Resource Reports of environmental survey data with the Federal Energy Regulatory Commission (FERC) for the ET Rover pipeline (see ET Rover Pipeline’s 800-Mile Journey Begins with FERC Filing). Rover is an 800-mile, $4.4 billion pipeline that will connect Pennsylvania, West Virginia and Ohio, crossing pretty much the entire state of Ohio heading northwest before entering Michigan and eventually taking a dog-leg into Ontario. In February of 2015, exactly a year ago, ET filed a full application with FERC. Last week FERC responded with a Draft Environmental Impact Statement (DEIS)–and the news was not so good for Rover. FERC found “adverse and significant” impacts from the project as planned and delivered to ET nearly 25 pages of recommendations that ET will need to fix before they get an approval. Is this a fatal blow to Rover? Or just a speed bump? Time will tell…
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Anti-Drilling/Fossil Fuel | Athens County | Industrywide Issues | Litigation | Ohio | Wastewater

Athens, OH Antis Lose Appeal in County Court re Injection Well
February 19, 2016February 19, 2016

In January 2015 (over a year ago) the radical antis of the Athens County Fracking Action Network (ACFAN) in Athens County, OH filed an appeal with the Ohio Oil and Gas Commission opposing a permit issued to K&H Partners to drill a new/second wastewater injection well in Athens County (see Athens County, OH Anti-Drillers Sue to Stop New Injection Well). The Oil and Gas Commission rejected the complaint because, they said, they don’t have jurisdiction over permits to drill wells. The case was appealed to county court and last week the county court judge sided with the Oil and Gas Commission. That is, ACFAN’s request to overturn the permit to drill the well has been rejected. The next move by ACFAN losers is to appeal it to a higher court–the 10th District Court of Appeals. No word yet if they want to waste their money on an appeal. However, they appear to have endless resources from Big Green groups to keep them going with endless lawsuits…
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Energy Services | Ethane | Industrywide Issues | Kinder Morgan | Ohio | Pipelines | Statewide OH

UTOPIA Ethane Pipeline Faces Virtually No Opposition in OH
February 16, 2016February 16, 2016

This is not a story you often hear these days: A natural gas liquids (NGL) pipeline slated to be built in Ohio is facing virtually no opposition. Last month we updated you on Kinder Morgan’s UTOPIA (Utica To Ontario Pipeline Access) ethane pipeline (see Kinder Morgan Ready to Move Forward with UTOPIA East Pipeline). The 12-inch ethane pipeline will run 240 miles and will only be built in Ohio–therefore the Federal Energy Regulatory Commission (FERC) won’t be involved in permitting the project. The pipeline will connect to another pipeline (in Ohio) and that pipeline will carry ethane all the way to Ontario to a cracker plant. Perhaps lack of FERC involvement is the secret to limited opposition? Who knows! Construction won’t begin on the project until 2017 and UTOPIA won’t be online until early 2018. But before that can happen, Kinder Morgan has to secure easements from approximately 900 landowners in Ohio. A full one-third of the deals are ALREADY DONE. Some 98% of landowners granted permission for Kinder Morgan to survey their property. Seems to us like a textbook case of how to build a pipeline! Now if Kinder could only duplicate that success with their Northeast Energy Direct pipeline running through New England (sigh). Here’s an update on UTOPIA’s rapid progress…
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Belmont County | Energy Companies | Gulfport Energy | Industrywide Issues | Monroe County | Ohio | Pipelines | Rice Energy

Rice Energy, Gulfport Midstream Form Midstream JV in Eastern OH
February 11, 2016February 11, 2016

Rice Energy, a pure play driller in the Marcellus/Utica, and Gulfport Midstream, a subsidiary of Gulfport Energy (big driller in the Utica) have entered into a joint venture. The new jv is called Strike Force and the purpose is to connect to and gather natural gas from wells drilled in Belmont and Monroe counties in Ohio. That is, this is a new midstream business. Rice contributed $41 million, certain pipelines, facilities and rights of way in return for a 75% ownership of the jv. Gulfport contributed an existing gathering system in return for their 25%. Neither Rice nor Gulfport have made a public announcement about the new venture. We know of it via a Securities and Exchange Commission 8-K filing…
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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Ohio | Research | Statewide OH

Anti Groups Abruptly Cut Funding for OH Fracking Study
February 11, 2016February 11, 2016

Two days ago we told you about a three-year study conducted at the University of Cincinnati that looked at fracking and its potential affects on water wells in five Ohio counties. The research found no evidence that fracking had led to any kind of water well contamination (see Antis Not Happy with Results of OH Fracking Study They Funded). We now have a bit more to the story. The two anti groups that funded the research, the Deer Creek Foundation in St. Louis and the Alice Weston foundation from Cincinnati, abruptly stopped funding the study when they got the preliminary (and as yet, unpublished) results. The foundations thought they had bought and paid for a particular outcome, and when that didn’t happen, they withdrew their money and presumably will now support someone they can buy off. Here’s an update on this developing story from the Ohio Oil and Gas Association…
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Industrywide Issues | Ohio | Pennsylvania | Research | Statewide OH | Statewide PA | Statewide WV | West Virginia

EIA Feb DPR: Utica NatGas Output Continues to Increase
February 10, 2016February 10, 2016

Earlier this week our favorite government agency, the U.S. Energy Information Administration (EIA), issued our favorite monthly report, the Drilling Productivity Report (DPR). The February 2016 report shows what the EIA predicts oil and natural gas production will be in March from the seven largest commercial shale plays in the U.S. What does the report (full copy below) show? Very broadly, it shows that the decline in natural gas production is picking up speed, while the decline in oil slowed (reversed, actually). In January’s report, the EIA said for February the combined output of natgas would decline by 405 million cubic feet per day (MMcf/d). In this report, forecasting March production, the EIA says the decline will go down another 451 MMcf/d over the February number. That is, the rate of decline is increasing. There’s only one shale play of the seven with an increase in natgas output from the previous month. Can you guess which one? That’s right–the Utica…
Read More “EIA Feb DPR: Utica NatGas Output Continues to Increase”
Belmont County | Carroll County | Columbiana County | Harrison County | Hydraulic Fracturing | Industrywide Issues | Ohio | Research | Stark County

Antis Not Happy with Results of OH Fracking Study They Funded
February 9, 2016February 9, 2016

Researchers from the University of Cincinnati have been studying fracking and its potential affects on water wells in five Ohio counties for the past three years. The lead researcher, Dr. Amy Townsend-Small, shared the results at a recent meeting of the anti-drilling Carroll Concerned Citizens. She said, “The good news is that our study did not document that fracking was directly linked to water contamination.” Oh oh. That’s NOT good news for antis–and frankly, they didn’t like her telling them the truth of what her study found. Townsend-Small also said this, “I’m really sad to say this but some of our funders, the groups that had given us funding in the past, were a little disappointed in our results.” You can be sure that any future funding for studies Townsend-Small wants to make, at least from radical environmentalists, will be nonexistent. She had the temerity to tell the truth–to the people who hired her to not tell the truth. That takes courage…
Read More “Antis Not Happy with Results of OH Fracking Study They Funded”
Baker Hughes | Energy Services | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

Rig Counts for World, US & Marcellus/Utica Continue to Tumble
February 8, 2016February 8, 2016

The number of active drilling rigs worldwide, in North America and in the Marcellus/Utica continued to tumble in January. Baker Hughes released their average rig count data for January last Friday. The news, as we expected (but nevertheless hoped wouldn’t be the case) was not good. Worldwide the number of active oil and gas rigs fell by 78. In North America the rig count went down by 28 rigs, but that’s not the full story. Rig counts in the United States fell by a whopping 60 while the rig count in Canada went up by 32. So here at home the story was bloodier than the top level numbers indicate. What about in the Marcellus/Utica? Once again MDN brings you the exclusive chart for Marcellus/Utica rig counts over the past 12 months. Region-wide rigs went down another by seven in the Marcellus/Utica. All three states that we track–PA, OH, WV–had rig count losses in January…
Read More “Rig Counts for World, US & Marcellus/Utica Continue to Tumble”
Air Quality | Industrywide Issues | Litigation | Ohio | Regulation | Statewide OH | Statewide WV | West Virginia

29 States Ask Supreme Court to Stop Obama Clean Power Plan ASAP
February 8, 2016February 8, 2016

On January 26, 2016, 29 states and state agencies, including Ohio and West Virgina, filed an application with the U.S. Supreme Court seeking an immediate stay of President Obama’s Clean Power Plan (CPP). A week before the D.C. Circuit Court of Appeals denied such a stay, so the states are taking it to the final authority in such matters. The states are begging the court for a stay because the CPP will do “irreparable harm” if it is allowed to be implemented by the dictatorial Obama Administration. For background on how this horrible plan will damage natural gas and our economy in general, see 9 Fatal Flaws with Obama EPA Clean Power Plan. Energy law firm Baker Hostetler LLP is the law firm of record for the State of Oklahoma and Oklahoma Department of Environmental Quality in this case. Below is an update from Baker Hostetler on the Supreme Court filing…
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