Ohio

Ascent Resources | Belmont County | Energy Companies | Energy Services | Industrywide Issues | Jefferson County (OH) | MarkWest Energy | Ohio | Pipelines | Utica Shale

MarkWest to Build $1B OH Utica Dry Gas Gathering System for Ascent
August 13, 2015August 13, 2015

Although it seems there is no end of bad news in drilling company financials right now, here’s a spot of good news: MarkWest Energy, the premier midstream/pipeline company in the Marcellus/Utica (selling itself to Marathon Petroleum), has just announced they are investing $1 billion over the next three years to install a new gathering pipeline system in eastern Ohio–particularly in Belmont and Jefferson counties–mostly for Ascent Resources. Ascent, backed by major investor EMG, was once Aubrey McClendon’s subsidiary company called American Energy Appalachia Holdings that has since broken free of McClendon and American Energy Partners and is now its own 100% standalone company. The MarkWest/Ascent deal is to build a 250-mile pipeline system in the Utica dry gas region that will gather more than 2 billion cubic feet per day (Bcf/d) of natural gas not only from Ascent, but also from other producers in the area. Here’s the details from MarkWest…
Read More “MarkWest to Build $1B OH Utica Dry Gas Gathering System for Ascent”
Energy Services | Industrywide Issues | Litigation | NEXUS Pipeline | Ohio | Regulation | Summit County

Summit County, OH Judge Denies NEXUS Request to Survey Properties
August 13, 2015August 13, 2015

Last week NEXUS Pipeline filed court cases against landowners in Summit County to force them to allow NEXUS surveyors access to their property (see NEXUS Pipeline Files Lawsuits for Survey Access in Summit County). The City of Green and other municipalities have stirred up so much resentment against NEXUS that the pipeline company is forced to send armed security guards out with their surveyors, fearing for their safety (see NEXUS Pipeline Sends Armed Guards with Surveyors to Protect Them). Although NEXUS needs access to survey so they can complete their application with the Federal Energy Regulatory Commission, a Summit County judge yesterday denied the request by NEXUS, setting up a court battle in October…
Read More “Summit County, OH Judge Denies NEXUS Request to Survey Properties”
Baker Hughes | Energy Services | Industrywide Issues | Ohio | Pennsylvania | Research | Statewide OH | Statewide PA | Statewide WV | West Virginia

Baker Hughes July Rig Counts – U.S. May have Bottomed, but Not NE
August 10, 2015August 10, 2015

On Friday Baker Hughes, which is being forced into a merger with Halliburton by the end of this year/early next year, issued a summary of rig counts last Friday. At first blush it appears to be good news, but when you dig under the surface, it’s not–at least for the Marcellus/Utica. The international rig count was 1,118, down 28 from the 1,146 counted in June 2015. However, the average U.S. rig count for July 2015 was 866, up 5 from the 861 counted in June 2015. It appears we’ve turned the corner on how low rig counts will go–we’ve bottomed and are either holding steady (in the U.S.), or perhaps every so slightly gaining ground again. But then we ran the numbers for the Marcellus/Utica and found rig counts continue to decline month over month…
Read More “Baker Hughes July Rig Counts – U.S. May have Bottomed, but Not NE”
Industrywide Issues | Ohio | Pennsylvania | Research | Statewide OH | Statewide PA | Statewide WV | West Virginia

World Oil’s Drilling Forecast for Marcellus/Utica Balance of 2015
August 10, 2015August 10, 2015

World Oil is out with a wide ranging forecast for what will happen for the balance of 2015 in the upstream (drilling) sector of the oil and gas industry. Using surveys of both major and smaller drillers, World Oil confirms what we already knew: driller will spend less in 2015 than they did in 2014 on drilling new wells–on average 34.2% less (because of low commodity prices). World Oil takes a look at the regional impact and offers the following insight into what’s coming for both Pennsylvania and Ohio for the balance of 2015 (hint: PA drilling won’t feel the affects as much as OH)…
Read More “World Oil’s Drilling Forecast for Marcellus/Utica Balance of 2015”
Energy Services | Harrison County | Industrywide Issues | Jefferson County (OH) | Lease & Royalty Payments | Ohio | Pipelines | Sunoco Logistics

Sunoco Settles Case with OH Landowners to Allow Mariner East 2
August 10, 2015August 10, 2015

Sunoco Logistics Partners still has an uphill battle to get certain communities to approve pump and valve stations for the Mariner East 1 and 2 pipelines, but is making progress (see Sunoco Reconciles Differences with Municipalities re Mariner East). Sunoco can cross off one problem area in Harrison and Jefferson counties (in Ohio) with respect to the Mariner East 2 set of pipelines. A group of landowners in those two counties have just settled with Sunoco out of court for 50-foot-wide permanent easements the company will place on their property to build the second set of Mariner pipelines. What happened is that the landowners (wisely) held out and got more money out of Sunoco. Everyone is now happy–the landowners get a better (more reasonable) price for permanent easements, and Sunoco is that much closer to beginning construction on the next Mariner project…
Read More “Sunoco Settles Case with OH Landowners to Allow Mariner East 2”
Energy Services | Industrywide Issues | Litigation | NEXUS Pipeline | Ohio | Summit County

NEXUS Pipeline Files Lawsuits for Survey Access in Summit County
August 6, 2015August 6, 2015

Yesterday MDN told you about the City of Green in Summit County, OH and their leaders’ opposition to (and lies about) the NEXUS pipeline (see NEXUS Pipeline Sends Armed Guards with Surveyors to Protect Them). NEXUS is sending out armed security guards with surveyors because they’ve been threatened. Apparently a number of landowners in Green are refusing to allow surveyors access to their property, so NEXUS is, today, filing lawsuits in Summit County to force landowners to allow surveyors on their property to make a simple survey for potential pipeline routes…
Read More “NEXUS Pipeline Files Lawsuits for Survey Access in Summit County”
Energy Services | Industrywide Issues | NEXUS Pipeline | Ohio | Pipelines | Statewide OH | Summit County

NEXUS Pipeline Sends Armed Guards with Surveyors to Protect Them
August 5, 2015August 5, 2015

The City of Green (Summit County), OH is proudly working to prevent a much-needed pipeline, the NEXUS pipeline, from crossing through any of its residents’ properties. Proudly ignorant, we’d day. It’s a shame, but these days workers doing their job–surveying for a pipeline–are sometimes threatened (see FBI Investigates Death Threats Against PennEast Pipeline Workers and Medina, OH Landowner Says He’ll Meet NEXUS Surveyors Packing Heat). So some pipeline companies, like NEXUS, now send armed security guards out with surveyors and pipeline workers–to protect them. City of Green officials seem to imply the armed guards are there to intimidate residents who don’t want to allow a survey of their property. Not true. The guards are there to protect the surveyors who feel threatened for simply taking measurements for a pipeline. What has this world come to?…
Read More “NEXUS Pipeline Sends Armed Guards with Surveyors to Protect Them”
Energy Companies | Harrison County | Hess | Ohio | Utica Shale

Hess Says Harrison County, OH “Truly the Sweet Spot” of the Utica
August 3, 2015August 3, 2015

Last week Hess released their second quarter 2015 earnings and operations update. It didn’t really say too much at all about their drilling program in the Ohio Utica Shale. We did, however, get some color commentary from CEO John Hess on last week’s conference call with analysts. We learned from that call that Hess drilled, with joint venture partner CONSOL Energy, just 10 wells in 2Q15. They completed 15 wells (some previously drilled) and brought 9 wells online into production. Hess is dropping from 2 active rigs in the Ohio to just 1 rig for the balance of 2015 but even so, they expect to bring 25-30 new wells online for all of 2015. The interesting (kind of funny) thing to MDN was an off-the-cuff statement by Hess President & COO Greg Hill on the call. Hill said that Hess will continue to concentrate their Utica drilling in Harrison County, OH. Why? Not because that’s where most of their remaining Utica acreage is located–oh no. But because Harrison County is, according to Hill, “truly the sweet spot of the play” and “the wettest part of the play.” There you have it. Forget about Belmont, Monroe, Noble and Guernsey counties. Harrison is where it’s at…
Read More “Hess Says Harrison County, OH “Truly the Sweet Spot” of the Utica”
Belmont County | Housing | Industrywide Issues | Ohio | Supply Chain

Rural Belmont County, OH Gets Another New Hotel – in St Clairsville
July 29, 2015July 29, 2015

St. Clairsville with a population of just over 5,000 is the county seat for rural Belmont County, OH. Small villages like St. Clairsville typically have a handful of stores and other businesses. It’s highly unusual for a small town like St. Clairsville to score a major new hotel–but it just has, thanks to the Utica Shale. Belmont County is in the epicenter for the sweet spot in the Utica Shale. Even with drilling scaling back from low prices, there is still plenty of activity–especially in Belmont County. Commonwealth Hotels yesterday announced the opening of the newly constructed 92-room Candlewood Suites St Clairsville. Located at Mall Ring Road, the Candlewood Suites is the newest hotel in the region, conveniently located near I-70…
Read More “Rural Belmont County, OH Gets Another New Hotel – in St Clairsville”
Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | GreenHunter Resources | Industrywide Issues | Meigs County | Ohio | Wastewater

GreenHunter Brings 2 New Injection Wells Online in Meigs County, OH
July 28, 2015July 28, 2015

Big news for GreenHunter Resources: They finally have two more wastewater injection wells up and running at their Mills Hunter facility in Meigs County, OH. In May we reported that GreenHunter was hoping to have four new injection wells operating at the Mills Hunter facility by the end of June, for a total of six operating wells (see GreenHunter Resources 1Q15: Bets the Ranch on OH Injection Wells). However, Mills Hunter has just two new wells now operating, for a total of four, and it’s nearly August. GreenHunter’s COO Kirk Trosclair continues to express his frustration at delays from the Ohio Dept. of Natural Resources (ODNR), saying instead of taking 30-45 days for approvals (which is what it used to take), it’s now taking ODNR more than 90 days to issue approvals. GreenHunter has two more wells at the Mills Hunter facility working their way through the approval process now. But let’s not dwell on the negatives…
Read More “GreenHunter Brings 2 New Injection Wells Online in Meigs County, OH”
Energy Services | Industrywide Issues | Litigation | NEXUS Pipeline | Ohio | Pipelines | Statewide OH

Pipeline Case: OH Judge Finds Public Right to Free Flow of Energy
July 27, 2015July 27, 2015

There are a number of pipeline battles currently going on. While residents in New England tend to be more unreasonable than most when it comes to pipelines, landowners in other regions also oppose new pipeline construction. Some of their opposition stems from nutty opposition to fossil fuels. But some opposition is legitimate–concerns over where the pipeline will go through a property. Or concerns about lease terms/compensation. One thing that doesn’t hurt anyone is to allow a survey of a property. We would encourage landowners to begin their dialog about a potential pipeline with the surveyors–to make companies aware of your concerns about the routing of a pipeline across your land. But some holdout landowners unreasonably resist even a survey–and they’re consistently losing in Ohio courts. Specifically we’re talking about 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. We recently told you that in most cases when landowners refuse access to surveyors, they lose (see NEXUS Pipeline Sues for Survey Access, Wins Most of the Time). Below we have news of a court decision from Fulton County, OH in which the judge outlines his reasons for ruling in favor of NEXUS to allow surveys to commence on properties for 15 hold-out landowners. The judge’s ruling is instructive. In it, the judge says the general public has a “right” to expect a “free flow” of energy products…
Read More “Pipeline Case: OH Judge Finds Public Right to Free Flow of Energy”
Economic Impact | Industrywide Issues | Ohio | Statewide OH | Utica Shale

New Reality in the Utica: Producers Hurting, Midstreamers Flush
July 24, 2015July 24, 2015

According to the president of the Ohio Oil and Gas Association (OOGA) David Hill, oil and gas producers–the ones who find, drill for and pump out of the ground oil and gas, are hurting bad and “concerned” about the future. On the other hand, if you’re in the midstream (pipelines) part of the industry, things are humming along. Welcome to the new reality in the Marcellus/Utica…
Read More “New Reality in the Utica: Producers Hurting, Midstreamers Flush”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Ohio | Statewide OH

PA’s CELDF Unmasked as Troublemakers in Ohio Utica Shale
July 23, 2015August 14, 2015

Energy in Depth is out with a dynamite expose that rips the face off the Pennsylvania-based anti-drilling organization behind much of the anti-drilling mischief happening in Ohio. The Community Environmental Legal Defense Fund (CELDF) seeks to ban fracking and anything to do with it, like pipelines, in every community with a sympathetic (and undiscerning) ear. CELDF founder, Thomas Linzey, is a real piece of work. EID’s expose shines the light on the unapologetic Linzey and his outrageous assertions–like instead of humans having rights he thinks nature should have rights. In fact, the potty-mouthed Linzey says, on camera (watch the video) that there should be a ballot initiative that bans all finance companies in New York City from funding new projects “that exasperate climate change.” Talk about a Cuckoo Bird. The worst part is Linzey’s arrogance and smugness–he really believes this stuff, and he believes he’s better (and smarter) than you and me. He’s on a mission to tear apart this country and our Constitution from the inside out to further his radical environmental agenda. Here, read and listen for yourself…
Read More “PA’s CELDF Unmasked as Troublemakers in Ohio Utica Shale”
Carroll County | Economic Impact | Electrical Generation | Industrywide Issues | Jobs | Ohio | Utica Shale

$800M Utica Gas-Fired Electric Plant Breaks Ground in Carroll Cnty
July 22, 2015July 22, 2015

Exactly two years ago this month MDN brought you news that Carroll County Energy in Carroll County, OH–a subsidiary of Advanced Power Services–would spend $800 million to build a new 700-megawatt natural gas electric generating plant in the county to be fed by Utica Shale gas (see New NatGas Powered Electric Plant Coming to Carroll County, OH). It took a while, but yesterday officials held the official ground-breaking ceremony for the plant. Over the next 30 months Advance will create some 700 “temporary” jobs to build the plant–and when it goes live, the plant will employ 25-30 permanent full-time employees…
Read More “$800M Utica Gas-Fired Electric Plant Breaks Ground in Carroll Cnty”
Ohio | Statewide OH

OH Gov. John “Utica Severance Tax” Kasich Runs for President
July 22, 2015July 22, 2015

Ohio Gov. John “foreigner hunter” Kasich announced yesterday he’s running for president, as we predicted he would back in May (see John “Foreigner Hunter” Kasich Ready to Announce Run for President). Kasich is, like Jeb Bush, Lindsey Graham, Chris Christie and perhaps a few others in the Republican presidential race, a RINO–a Republican in Name Only. He left the conservative (i.e. common sense) side of the party long ago and does not deserve your vote. He’s trying to slap a high tax on Utica Shale in Ohio and transfer the money it raises to those who didn’t earn it in the form of an income tax break. We’re all for income tax breaks–as long as they don’t come at the expense of a single industry or group of people (like drillers and landowners). We’ve long considered Kasich to be, well, a jerk. It seems we’re not the only ones. A Cleveland Plain Dealer article examines Kasich’s “jerk” image problem…
Read More “OH Gov. John “Utica Severance Tax” Kasich Runs for President”
Antero Resources | Energy Companies | Lease & Royalty Payments | Ohio | Statewide OH | Utica Shale

Muskingum Watershed District Royalties Fall 73% in 6 Months – Why?
July 21, 2015July 21, 2015

Ace reporter and MDN friend Bob Downing from the Akron Beacon Journal has written an insightful article about the dramatic decrease in royalty payments being received by the Muskingum Watershed Conservancy District (MWCD). The MWCD was organized in 1933 to reduce the effects of flooding and conserve water for beneficial public uses, and oversees 16 dams and reservoirs across 22 counties in Ohio, covering 20% of the state. It is a massive area of Ohio under the oversight and control of the MWCD. They’ve leased thousands of acres to Antero Resources for Utica Shale drilling and currently there are 13 Utica Shale wells drilled on MWCD property. Here’s the bombshell: Over the past six months, royalty payments to the MWCD for production from those 13 wells has dropped 73%, from just over $1 million per month last December to just under $275,000 in May. Why? That’s the question Bob set out to answer…
Read More “Muskingum Watershed District Royalties Fall 73% in 6 Months – Why?”