Video: Update on DMA Cases Before Ohio Supreme Court
For several years a thorny legal issue in Ohio has been bubbling in the background–the Dormant Minerals Right Act (DMA). In a nutshell, there are two DMAs in Ohio–one passed in 1989 that went into effect in 1992, and another in 2006 which added certain additional procedural requirements to the 1989 version. The DMA in its various versions provides for mineral rights that had previously been separated from surface rights to transfer to the surface owner under certain conditions. The problem for both drillers and for landowners in Ohio, is in knowing which set of DMA rules to use (1989 or 2006) in determining who owns the mineral rights. It’s a big problem when drillers are spending sometimes up to $15,000 per acre in lease bonuses, to say nothing of where to send the royalty check. Some drillers are holding back on leasing because of this issue. There are now 12 (!) different cases before the Ohio Supreme Court dealing with the DMA and decisions may come soon for many of them. We get a good overview and update on DMA litigation from the legal beagles at the Bricker & Eckler law firm…
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A couple of bits of news from Gulfport Energy, a driller focused primarily on the Utica Shale in eastern Ohio. In April, MDN reported that Gulfport had inked a deal with Paloma Partners III, a small energy & exploration company headquartered in Houston, to purchase 24,000 acres in Belmont and Jefferson counties (Ohio) for $12,500 per acre (see 
The NEXUS Gas Transmission pipeline, a $1.5-$2.0 billion natural gas pipeline that will carry Utica and Marcellus Shale gas spanning 11 counties in Ohio, 3 counties in Michigan, and eventually connect to the Dawn Energy Hub in Canada, has had to take some Ohio landowners to court simply to gain access to their property survey for potential routes. Sometimes county judges rule against NEXUS (see
Last week the CEO of Thailand chemical giant PTT Global flew to Belmont County, OH to announce his company is spending $100 million over the next 9-12 months on preliminary work to build an ethane cracker plant in the county (see
Midstream giant Williams and drilling giant Chesapeake Energy are cuddling a little bit closer in the Ohio Utica Shale. Williams announced today they have signed an agreement with Chesapeake to run gathering pipelines in a new area of the dry gas Utica for Chesapeake in return for signing a contract that binds Chessy to using Williams until 2035. Williams was already gathering natural gas for Chessy on 140,000 acres of Utica Shale land in Ohio. This agreement extends the time on that 140,000 acres by adding another 20 years, and adds another 50,000 acres to the mix…
As we told you yesterday, Ohio Gov. John Kasich horned in on a visit by Thailand-based PTT Global CEO Supattanapong Punmeechaow to Belmont County where Punmeechaow announced his company will spend $100 million over the next 9-12 months on a potential ethane cracker plant complex (see
Two sister companies based in Ohio–Valley Electrical Consolidated Inc. and Evets Oil & Gas Construction Services–will be merged together under parent company VEC, Inc. starting January 1, 2016. VEC/Evets has done construction and steel fabrication work for many Utica/Marcellus companies in Ohio and neighboring states. According to VEC’s president and owner, Rex Ferry, the realignment and merging of the two into one will allow them to better serve customers. Along with the merger of the two companies comes a few promotions, including a promotion for an MDN subscriber…
Ohio Gov. John Kasich, who is having trouble getting anyone to notice he’s running for president (predictably, nobody cares when an establishment RINO runs), will swoop in at a press conference today at 3 pm in Belmont County, OH to announce that foreigners from Thailand-based PTT Global and Marubeni Corp. of Tokyo will drop $100 million on Ohio to conduct engineering and design work for a previously announced potential ethane cracker plant in the county (see
The Ohio Utica Shale has just passed a major milestone on its way into the history books. There are now more than 1,000 producing Utica Shale wells in Ohio, with nearly another 1,000 permitted (with half of those already drilled). Although the pace of drilling has slowed, the Utica is turning out to be a worthy rival to the Marcellus. It’s not there yet! But keep a close eye on the Utica. The Utica may one day surpass the Marcellus in production, given the incredible volumes of gas that come from Utica wells…
Last October MDN told you about an exciting project from Boardwalk Pipeline Partners’ Texas Gas Transmission pipeline that will reverse the flow from the Louisiana Gulf Coast all the way to Ohio (see
Compressor stations in Ohio, needed to flow natural gas through numerous new pipelines being built, require a permit from the Ohio Environmental Protection Agency (EPA) in order to get built. The Ohio EPA considers each application independently, a laborious and long process. In an effort to streamline that process, the Ohio EPA is accepting comments during a “pre-comment” period from now until September 18 on a plan to issue general permits for compressor stations. A general permit is, essentially, a cookie cutter approach. If midstream companies agree to the provisions in the general permit, they will use certain types of equipment and certain standards, allowing the permit process to speed along much faster. Once the pre-comment (in essence, give us your feedback) period is over, the EPA will issue draft “final” general permits for full public comment, which will run for 30 days…
Once again the issue of “foreigners” taking jobs away from “locals” is rearing its ugly head. Over the past few years the pace of drilling and the construction of infrastructure like pipelines and compressor stations has been so rapid, the fact that companies import experienced workers from other states like Texas, Oklahoma and Louisiana didn’t seem to bother anyone. Now that drilling rigs are being laid down and pipeline construction is slowing, local union workers who are out of work are questioning why they don’t get the remaining jobs first, ahead of the out-of-towners…
