Ohio

Industrywide Issues | Ohio | Research | Statewide OH | Utica Shale

List of Who’s Still Active/Drilling in the Ohio Utica Shale
June 15, 2015June 15, 2015

Who’s still drilling/active in the Ohio Utica Shale? Depends on what criteria you use to measure it. We spotted a list of 19 “active” drillers in the Utica based on the criteria of who had producing wells in the first quarter of 2015. Fair enough. But as for who is actively drilling new holes in the ground right now? That’s a slightly different list. MDN recently published Volume 1 for the 2015 Marcellus and Utica Shale Databook (now in our fourth year of publishing this series). Our list shows 12 drillers who received at least one permit to drill in the Utica during the first four months of 2015. We have both lists below…
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Electrical Generation | Energy Services | Industrywide Issues | Lorain County | NRG Energy | Ohio | Pipelines | Regulation | Utica Shale

OH Agency Greenlights NRG Utica Pipeline to Feed Electric Plant
June 15, 2015June 15, 2015

Utility energy giant NRG, with loads of coal and natural gas electric generating plants scattered across the country, has just received the OK from the Ohio Power Siting Board to build a 20-mile pipeline from rural Lorain County, OH (where it will connect with a Dominion East Ohio pipeline) and connect to an NRG-owned natural gas powered electric generating plant in Avon Lake. The pipeline will flow Utica Shale gas to power the plant. Some landowners along the proposed route fought the plan, but the Ohio Power Siting Board rejected their claims there are better routes, saying NRG looked at all the possible routes. With the Board’s approval, NRG is taking the landowners to court with eminent domain cases…
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CNG/LNG | Exporting | Industrywide Issues | Ohio | Statewide OH

OH Congressman Bill Johnson: It’s Time US Ramps Up LNG Exports
June 15, 2015June 15, 2015

U.S. Congressman Bill Johnson, who represents eastern and southeastern Ohio (Utica Shale country) has introduced HR 315, a bill to force the Dept. of Energy to make decisions within 30 days for each new LNG project filed with the agency. Johnson also recently went on a trip to Portugal, Belgium, and the Ukraine to discuss energy policy–specifically liquefied natural gas (LNG) exports from the United States. Johnson penned the following column following his trip, advocating for U.S. LNG exports and discussing HR 315…
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MDN Launches 2015 Marcellus/Utica Databook – 4th Year!
June 11, 2015June 23, 2015

Earlier this week Marcellus Drilling News launched the fourth series of our Marcellus and Utica Shale Databook. The 2015 edition of the Databook, Volume 1, officially launched on Tuesday. Never in our wildest dreams did we think back in 2012 that the Databook would become so popular. We’ve now published three complete series–the 2012, 2013 and 2014 series (3 volumes each, or nine volumes total) and this week begins the fourth series–for 2015. The heart and soul of the Databook is a series of maps–one for every county where permits for drilling have been issued–throughout Pennsylvania, West Virginia and Ohio. The “secret sauce” for the Databook is to visually, through maps and charts (89 of them in this edition), show you who is drilling right now or soon will be–and where they are drilling…
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Energy Companies | Energy Services | EV Energy Partners | Industrywide Issues | M3 Midstream | Momentum | Ohio | Pipelines | Processing Plants | Statewide OH | Williams

Williams Buys Less of Utica East Ohio than Previously Planned
June 11, 2015June 11, 2015

In April MDN told you that Williams would buy out EV Energy Partners 21% share in Utica East Ohio (UEO)–a midstream/pipeline company operating in Ohio (see Williams Buys Out EVEP Interest in Utica East Ohio Midstream for $575M). The original press releases in April, from both Williams and EVEP, clearly state that Williams would buy the entire 21% EVEP share in UEO. But that didn’t happen. Yesterday Williams announced they have closed on an additional 13% from EVEP (not 21%) and for $357 million (not $575 million). The Williams press release says the other 8% share went to the other partner in the venture. You have to read the EVEP press release to learn that the other partner is M3 Midstream, otherwise known as Momentum. Seems a funny thing happened on the way to the forum…
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Energy Services | Enterprise Products Partners | Industrywide Issues | Ohio | Pipelines | Statewide OH | Taxation

ATEX Express Ethane Pipeline Says it’s Tax-Exempt in Ohio
June 11, 2015June 11, 2015

School districts and local governments in 13 Ohio counties along which the ATEX (Appalachia-to-Texas Express) natural gas liquids pipeline runs, are miffed that ATEX doesn’t want to pay property taxes on the pipeline. The 1,230-mile ATEX pipeline originates in Washington County, PA and connects to four fractionators in the Marcellus/Utica Shale region. The pipeline, which crosses 265 miles of Ohio, went online in early 2014 (see Let it Flow! ATEX Ethane Pipeline Testing Now, Online Soon). State law stipulates that only pipelines classified as public utilities are liable for property taxes. Private, non-public utility pipelines are not on the hook for local property taxes. However, ATEX may be liable for Ohio’s commercial activity tax…
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American Energy Partners | Ascent Resources | Belmont County | Energy Companies | Gulfport Energy | Jefferson County (OH) | Monroe County | Ohio | Utica Shale

Big McClendon News: Sells 35K Utica Acres, Creates New Company
June 10, 2015June 10, 2015

We have major news coming from Aubrey McClendon’s American Energy Partners (AEP). A lot of news. So buckle in. First we’ll tell you the news, then we’ll give you our take on that news–what it means. In brief, the news coming from AEP HQ in Oklahoma City is this: (1) AEP’s Marcellus/Utica AEP subsidiary, American Energy Appalachia Holdings, has been spun out into a 100% standalone company and has changed its name to Ascent Resources; (2) the CEO of Ascent is the same guy who was the CEO of American Energy Appalachia Holdings–trusted McClendon lieutenant Jeffrey A. Fisher; (3) Ascent has cut a deal with Gulfport Energy to sell 35,000 prime Utica Shale acres for $407 million; and (4) Ascent has just sold shares in the company and taken out new loans for $977 million, giving them $700 million in cash after they pay off certain other loans. Whew! Here’s the details, along with a little news of our own about AEP…
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American Energy Partners | Ascent Resources | Belmont County | Energy Companies | Gulfport Energy | Jefferson County (OH) | Monroe County | Ohio | Utica Shale

Details on Gulfport’s Purchase of 35K AEP Utica Acres + New Stock
June 10, 2015June 10, 2015

As we report in our lead story today, Aubrey McClendon’s American Energy Partners has decided to spin out it’s Marcellus/Utica operation into a brand new, 100% independent company. That new company, formerly called American Energy Appalachia Holdings, is now called Ascent Resources. Ascent has turned around and immediately sold 35,325 net acres in prime Utica Shale country–Monroe, Belmont and Jefferson counties in Ohio–to one of AEP’s chief competitors in the Utica, Gulfport Energy. In addition, Gulfport has just announced they are floating another 10 million shares of stock. If the new shares sell for anything close to today’s current share price, that will net the company another $440+ million. Below we have the details (from Gulfport) on the deal with AEP to purchase prime Utica acreage complete with four drilled wells and a pipeline gathering system, along with Gulfport’s announcement about the new stock offering…
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Energy Services | Industrywide Issues | Marathon Petroleum | Ohio | Pennsylvania | Processing Plants | Statewide OH | Statewide PA | Statewide WV | West Virginia

Utica Crude Oil Barged Down Ohio River to Marathon Plant in KY
June 9, 2015June 9, 2015

This one kind of slipped by our radar. Marathon Petroleum, the nation’s fourth largest refiner (headquartered in Findlay, OH), has just brought online a new $170 million condensate splitter at its refinery complex south of Catlettsburg, Kentucky. The purpose of the new splitter, which took two years to build, is to process sweet crude oil being produced in the Utica Shale of Ohio, Pennsylvania and West Virginia. And how, you may ask, is all that Utica crude getting to the facility? By barge, along the Ohio River…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Lorain County | NEXUS Pipeline | Ohio | Pipelines | Regulation

CORNy Letter to FERC: NEXUS Pipeline will Contaminate our Creeks
June 9, 2015June 9, 2015

The anti-drillers who inhabit Oberlin (Lorain County), OH are nothing if not determined. In November 2013 Oberlin voted to commit economic suicide by passing a so-called Community Bill of Rights law, which is nothing more than a ban on shale drilling (see Economic Suicide Avoided in 2 OH Cities but Oberlin Pulls Trigger). Of course so-called “home rule” laws have since been overturned by the Ohio Supreme Court (see OH Supreme Court Strikes Down Home Rule in Gas Drilling Case). The NEXUS gas pipeline is planned to run through the Oberlin area, so a group calling themselves CORN–Coalition to Reroute NEXUS–popped up in Oberlin and surrounding counties to oppose the pipeline. Why? Because it will flow nasty, evil fossil fuels. We call it the CORNy opposition. A member of CORN from the Oberlin City Council has written to the Federal Energy Regulatory Commission (FERC)–which is reviewing the NEXUS project–to say if the pipeline is built, it will “result in the contamination of the streams that produce water for the city’s domestic use.” Just one CORNy lie right after another…
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Baker Hughes | Energy Services | Industrywide Issues | Ohio | Pennsylvania | Research | Statewide OH | Statewide PA | Statewide WV | West Virginia

Rig Counts Take Another Hit in May, Rapid Decline Continues
June 8, 2015June 8, 2015

We had thought/hoped that the we were near the end of a decline in drilling rig counts. But such is not the case. Baker Hughes released their May rig count report on Friday and it shows a continued slide in the numbers. In April there were 943 active rigs drilling on land in the U.S., down from 1,067 rigs in March (see Rig Counts Continue Big Decline in April, NE May Have Bottomed). In May, the number slide again–to 857 land-based rigs (a loss of another 86 rigs going idle). Double ouch. What about the Marcellus/Utica region? Did those rigs decline in May?…
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Industrywide Issues | Ohio | Statewide OH | Taxation

Kasich Predicts Severance Tax Deal Will Happen, Others Say No
June 8, 2015June 8, 2015

Once upon a time Ohio Gov. John “foreigner hunter” Kasich (Republican) wanted to tax Utica Shale drillers 2.5%. But then he talked to some of his Democrat buddies and decided to hike it. After thinking it over, Kasich finally settled on 6.5%. When Kasich got resistance to his brilliant tax increase idea, he threatened the drilling industry by saying take my 6.5% or “someone else” may push for a ballot measure of 10% (see OH Gov Kasich the Bully: Accept My 6.5% Tax or Risk a 10%+ Tax). Kasich has been on the 6.5% bandwagon from some months now, and not giving in. One news account says he’s about to go down in defeat yet again, but another news account has him buoyant, like he’s about to get what he wants…
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Columbiana County | Industrywide Issues | Litigation | MDN Sponsor | Ohio | Pipelines

NEXUS Pipeline Sues Columbiana County Landowners for Survey Access
June 4, 2015June 4, 2015

The NEXUS Gas Transmission pipeline, you may recall, is a $1.5 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 (see NEXUS Gas Pipeline Pre-Files with FERC, New Details Come to Light). A number of landowners in Ohio have been less than cooperative when it comes to surveying their property. One old codger in Medina County, OH threatened he would meet anyone trying to survey his property with a gun (see Medina, OH Landowner Says He’ll Meet NEXUS Surveyors Packing Heat). Two couples in Columbiana County aren’t threatening guns, but they have denied access to NEXUS, repeatedly, and NEXUS has had enough. NEXUS sued the two couples in Columbiana County Common Pleas Court to force them to allow their surveyors on their property…
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Eclipse Resources | Energy Companies | Monroe County | Ohio | Utica Shale

Eclipse Resources Update: Squeezing More Wells in Smaller Space
June 3, 2015June 2, 2015

Eclipse Resources, a Marcellus/Utica driller headquartered in State College PA, but drilling mainly in the Ohio Utica Shale, issued an operational update yesterday. The company says by the end of the second quarter they expect to be producing around 180 million cubic feet of natural gas per day–the high end of the previous estimated range. The company is spending less money than it expected, which keeps the investors happy. Eclipse recently completed drilling a 3-well pad in Monroe County, OH with the well spacing just 730 feet apart–the first time they’ve tried spacing wells below 1,000 feet apart. All eyes are on the outcome of that experiment. (If successful, it means they can drill more wells in the same amount of space–by their estimates, 20% more wells.) Eclipse had wanted to put those 3 wells into sales in December of this year–which now looks like it will slip into January of next year. Here’s the update with details about their Utica drilling program…
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Ohio | Statewide OH

Utica Natgas Production by County in Ohio for 1Q15 – Top 6
June 3, 2015June 2, 2015

Which counties in Ohio produced the most shale gas in the first quarter of 2015? Can you guess? We have the top 6 (of 17) listed below…
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Ohio | Statewide OH

1Q15 Ohio Production Numbers Released: Natgas Production Up 11%
June 2, 2015June 2, 2015

The Ohio Dept. of Natural Resources (ODNR) released their first quarter 2015 production report yesterday. It shows natural gas production in the Buckeye State was up 11% from the previous quarter. That rate of increase has slowed (but is still good, all things considered). In 4Q14 production numbers were up 25% from the previous quarter. The production number increase for 1Q15 slowing to only 11% is a reflection of less new drilling in the state. There’s plenty of Utica wells already drilled awaiting completion and connection to pipelines–so production will almost certainly continue to increase in Ohio for the foreseeable future–albeit at a slower pace. According to yesterday’s report, Ohio produced 183.6 billion cubic feet (Bcf) of natural gas, and 4.4 million barels of oil in 1Q15. Note that NGLs are part of the natural gas figures–Ohio doesn’t break out NGLs in a separate number, unfortunately. Below are a few of the highlights from the ODNR, with a link to download the full production report…
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