Ohio

Buckeye Partners | Energy Services | Industrywide Issues | Michigan | Ohio | Pipelines | Statewide MI | Statewide OH

Buckeye Partners Expanding MI/OH Refined Products Pipeline East
April 6, 2015April 5, 2015

Buckeye Partners, headquartered not in Ohio but in Houston, TX, launched an open season for an expansion of a pipeline that we somehow missed, on January 30. Called the Michigan/Ohio Pipeline Expansion Project, the expanded pipeline project is for flowing “refined petroleum products” (things like gasoline, kerosene and heating oil) and will run from Woodhaven and Detroit, Michigan, and from Toledo and Lima, Ohio, to destination points in both Ohio and Western Pennsylvania. Buckeye reports the open season is now closed and was successful and they plan to move forward with expansion plans, slated to be complete by the second half of 2016. Does the expansion include building any new pipeline?…
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Energy Services | Industrywide Issues | Kinder Morgan | Ohio | Pipelines | Statewide OH

FERC Will Not Oversee UTOPIA NGL Pipeline Project in Ohio
April 2, 2015April 2, 2015

In December 2013, MDN told you about Kinder Morgan’s new NGL (natural gas liquids) pipeline cleverly named UTOPIA (Utica To Ontario Pipeline Access). UTOPIA is a $500 million, 210-mile, 10-inch pipeline from Harrison County, Ohio to Riga, Michigan and from there connecting with another pipeline heading into Windsor, Ontario (see UTOPIA is Coming! The UTOPIA Pipeline, that is…). Kinder has held an open season and in January 2016 they will file a full application and target November 2016 to begin construction. What we didn’t know, or realize (until today) is that all of the new pipeline that needs to be constructed for the project will happen within Ohio. No new pipeline is needed in Michigan or indeed into Ontario. Why is that important? Because newly constructed pipeline doesn’t cross state lines, the Federal Energy Regulatory Commission (FERC) will not be involved with approving or overseeing construction for the project. Because it’s all within Ohio, the lead agency for approval and oversight will be the U.S. Army Corps of Engineers, with an assist from the Ohio Dept. of Natural Resources, the Ohio Environmental Protection Agency and the U.S. Fish and Wildlife Service (an agency drunk on its own power)…
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Industrywide Issues | Ohio | Statewide OH | Taxation

OH Gov “Tax Oil and Gas” Kasich Wants to Run for White House
March 31, 2015March 31, 2015

Go Tax Young Man! Er, ah, no. “Go West young man! Land on the moon! Go to Mars!” Those were the words of the very animated, very self-important and very deluded Ohio Gov. John Kasich last week as he spent time…in Ohio, where he’s governor, trying to run his state? No. Kasich spent last week in New Hampshire where he’s trying to gin up excitement for a potential run as president on the GOP ticket. Earth (and conservatives) to RINO Kasich: There’s no way in &@!! conservative Republicans will vote for you in an election. We’re done voting for RINOs (like Bob Dole/John McCain/Mitt Romney/Jeb Bush/Chris Christie/John Kasich). We will only swing the lever for real conservatives, not people who want to tax the oil and gas industry into oblivion as you’re proposing to do Gov. Kasich. If a RINO like Kasich is at the top of the ticket, the Republicans will lose the presidency, once again, because conservatives will stay home–including MDN. Here’s more about John “foreigner hunter” Kasich on the campaign trail, hoping to spark interest in a potential run for The White House…
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Industrywide Issues | New York | North Carolina | Ohio | Pennsylvania | Research | Statewide NY | Statewide OH | Statewide PA | Statewide VA | Statewide WV | Virginia | West Virginia

USGS Says There’s Plenty More Fossil Fuels to Come in Appalachia
March 31, 2015March 31, 2015

There were plenty of fossil fuels in the past 150 years in Appalachia–an area stretching from the northeast to the south–and there’s plenty more where those came from. That’s the conclusion from an updated series of papers collected together in a new U.S. Geological Survey Professional Paper (#1708) called “Coal and Petroleum Resources in the Appalachian Basin: Distribution, Geologic Framework, and Geochemical Character” (free access, linked below). The USGS says, “Professional Paper 1708 is a modern, indepth collection of reports, cross sections, and maps that describe the geology of the Appalachian basin and its fossil fuel resources. This publication supplements and updates older USGS regional studies of Appalachian basin coal and petroleum resources.” Here’s an abstract/summary of what’s in the new report…
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Anti-Drilling/Fossil Fuel | Cuyahoga County | Industrywide Issues | Lancaster County | Litigation | Ohio | Pennsylvania | Regulation | Statewide OH | Statewide PA

CELDF Costing Towns Big $ With Losing Pipeline/Drilling Bans
March 30, 2015March 30, 2015

Communities that attempt to block pipelines (and drilling) with illegal so-called community rights ordinances that seek to block those activities are losing in court and, in at least some of the cases, taxpayers in those communities end up paying the legal fees for the pro-drilling side. That’s the good news we find in an article by a PBS “reporter” (we’d call her an anti-drilling propagandist) writing on the StateImpact Pennsylvania website. To the small group of fossil fuel-hating nutters in Conestoga Township (Lancaster County), PA, you may want to consider the considerable cost of launching yet another campaign funded by outsiders Community Environmental Legal Defense Fund (CELDF), the shadowy group behind much of this mischief. Be sure to ask the CELDF if they’re willing to pay tens of thousands of dollars in legal fees if you lose (as you surely will) a legal challenge to a pipeline ban in the township. Make them put their money where their huge mouth is…
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Belmont County | Energy Companies | Lease & Royalty Payments | Ohio | Rice Energy

Belmont County Loves Rice Energy
March 30, 2015March 30, 2015

Belmont County, OH loves Rice Energy, which is a good thing because Rice has nearly 16% of all the land in the county now under lease for Utica Shale drilling. So far the company has pumped “hundreds of millions” of dollars into the Belmont County economy, and there’s no end in sight. No wonder they love Rice! Rice currently has some 55,000 acres under lease in Belmont. How much are they paying for leases? Last April Rice leased 406 acres from Belmont County and paid a signing bonus of $7,500 per acre with a 20% royalty (see Belmont County Shopping New Deal to Lease Additional 426 Acres). Rice came back in June and leased an additional 426 acres from the county, paying an eye-popping $8,200 per acre with a 20% royalty (see Rice Energy Does 2nd Deal with Belmont County, $8,200/Acre!). County officials say Rice has become part of the community and supports area schools…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Ohio | Pipelines | Regulation | Spectra Energy | Statewide OH | Summit County

CORNy Effect on FERC: NEXUS Forced to Consider Alternative Route
March 30, 2015March 30, 2015

The NEXUS Pipeline is a proposed 42-inch, now $2 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). MDN told you about a local anti-drilling group that’s trying to stop it or change it, flying under the acronym of CORN–Coalition to Reroute NEXUS (see CORNy Opposition to NEXUS Pipeline in Eastern Ohio). It looks like the CORNballs may have had an effect. The Federal Energy Regulatory Commission (FERC) told Spectra Energy and the other companies building the NEXUS they’ve been getting a lot of complaints and FERC wants the companies to investigate an alternative route for the NEXUS, away from the CORNfields of Green (Summit County), OH…
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Industrywide Issues | Ohio | Research | Statewide OH

OOGA’s DeBrosse Report: 2014 a Breakout Year for Utica Shale
March 27, 2015March 27, 2015

Each year the 3,200-member Ohio Oil and Gas Association (OOGA) issue the DeBrosse Memorial Report (full copy below). The report is a high level look at where (and how much) drilling there has been in the state–and what they’re finding (methane, oil, NGLs). The latest report, recounting 2014, was released at the recent OOGA Annual Winter Meeting in Columbus. Needless to say the latest report shows the exponentially increasing importance of the Utica Shale in the state. Last year a full 61% of all new wells drilled and completed in the state were shale wells. The report also shows the state produced 11 million barrels of oil from the Utica Shale. In 2013 the Utica produced 4.3 million barrels of oil. Welcome to Utica-land!…
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Anchor Drilling Fluids | Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Jefferson County (OH) | Ohio | Regulation

When the OH “CURE” is Worse than the Disease: Antis Nit Pick
March 27, 2015March 27, 2015

Sometimes the CURE is worse than the disease. Such is the case with the anti-drilling Communities United for Responsible Energy (CURE) in eastern OH. The group agitated and squawked and carried on with such histrionics that they’ve gotten the Ohio Dept. of Natural Resources (ODNR) to order an oilfield services company to shut down a satellite location in Jefferson County, OH. The offense? Depends on who you ask. The company, Anchor Drilling Fluids, says it didn’t have a permit to store excess drilling mud–the stuff used by drillers to keep a drill bit cool and lubricated and free of bacteria. The ODNR says Anchor was recycling at that site and lacked a proper waste recycling permit. Question: If you mix drilling mud at a well site but don’t use all of it, and you then truck it back to HQ to store it for a few days or weeks before taking it somewhere else, is that “recycling”? Apparently it is for the ODNR…
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Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

2015 Northeast Oil & Gas Awards: A Quick Recap & List of Winners
March 27, 2015March 27, 2015

This is a shout out to the marvelous people we (meaning me, Jim Willis) met in Pittsburgh on Wednesday at the 3rd Annual Oil & Gas Awards. I was truly humbled and thrilled to meet so many MDN readers! You gave me some great feedback on MDN–feedback that has me thinking about some new initiatives going forward. So stay tuned for the future and what I believe will be some good things coming. During the day I was privileged to host two panel discussions. A special thank you to the panelists on the “Minimizing Environmental Impact” panel: Melissa Hamsher, Vice President at Eclipse Resources; Lauren Parker, Principal at Civil & Environmental Consultants; and Gregg Stewart, Permitting Manager with PennEnergy Resources. And a special thank you to the panelists on the “Health and Safety” panel: Charlie Dixon, Safety and Workforce Director with Ohio Oil and Gas Energy Education Program; Frank Harrison, President of Areion Energy; and Chad McCutcheon, Communications Professional with McCutcheon Enterprises. Stellar panelists all! They made me look good, and that’s a hard thing to do. 😉 There were about 150 attendees at the Industry Summit during the day. MDN will bring you videos (when they become available) for each of the sessions. The evening was the “main” event–a gala awards ceremony with folks decked out in tuxedos and evening gowns. We have the complete list of winners for the 2015 Northeast Oil and Gas Awards below…
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Industrywide Issues | Ohio | Pennsylvania | Research | Statewide OH | Statewide PA | Statewide WV | West Virginia

Even with Capex Budgets/Jobs Slashed, NE Production Still Rising
March 25, 2015March 25, 2015

Capital expenditure budgets slashed 20%, 30%, 40% and more. Mass firings in the thousands by oilfield services companies. The mad dash to raise cash to keep going. Shutting in wells to slow or stop production. Some days it seems like the news is all doom and gloom. But what’s this? Even though rig counts are down, capex is slashed and jobs are dwindling, production in the Marcellus/Utica will continue to go UP in 2015. You read that right. How can that be? According to some excellent research published by NGI’s Shale Daily, production will continue to go up because “efficiencies in drilling techniques and low operating costs are overcoming the energy industry downturn.” That is, good old American ingenuity is once again figuring out how to do more with less. What did the ace reporters at Shale Daily discover when they dug down into the data?…
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Lease & Royalty Payments | Ohio | Statewide OH

Strategy Change? Some Buy Mineral Rights in OH Instead of Leasing
March 23, 2015March 23, 2015

A change in strategy? The Wheeling News Register is reporting an uptick in the purchase of mineral rights in the Upper Ohio Valley area. If a landowner owns both the surface and mineral rights, the typical situation is that the landowner will lease the mineral rights to an energy company for a certain period of time, receiving an up-front signing bonus. If drilled, the landowner will receive ongoing royalties from any gas (or oil) produced. But in some cases, instead of leasing, energy companies are buying the mineral rights. That is, the mineral rights become separated from ownership of the land on the surface. The energy company then owns the mineral rights, along with the right to use a bit of the surface to locate a drill pad and wells. The landowner selling the mineral rights gets a higher initial signing bonus by selling the mineral rights as opposed to leasing. But they also get zero royalties when selling the mineral rights. It becomes a decision between a little more money now, or a lot more money later. What kind of money are we talking about?…
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Columbia Pipeline Group | Economic Impact | Energy Services | Industrywide Issues | Noble County | Ohio | Pipelines | Taxation

Noble County, OH in Love with the Leach Xpress Pipeline
March 23, 2015March 23, 2015

It’s not often you read about a pipeline project that’s “well received” by both the elected leaders of a county and the landowners in that county. But such is the case with the Leach Xpress Pipeline in Noble County, OH. Leach Xpress, you may recall, is being built by Columbia Pipeline Group and will begin in Marshall County, West Virginia, cross Ohio and end up in Leach, Kentucky (see Columbia Gas: $1.75B for 2 Projects to Send Marcellus Gas to Gulf). Why are the folks of Noble County in love with the Leach Xpress? For one thing, it will generate $6.2 million per year in tax revenue, with 63% of that going to school districts in the county…
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Antero Resources | Belmont County | Energy Companies | Gulfport Energy | Industrywide Issues | Litigation | Ohio

Gulfport Energy Sues Barnesville, OH for Access to Water in Reservoir
March 20, 2015March 20, 2015

A legal battle is shaping up in Belmont County, OH–in and around Barnesville. Way back in 2012, Gulfport Energy signed a contract with Barnesville to buy water from the Slope Creek Reservoir for 1 penny per gallon. Not long after, the Village of Barnesville (which controls the reservoir) signed a lease with Antero Resources for a sizable sum (see Barnesville, OH Signs Lease with Antero, Receives $6M). Antero also snapped up more acreage in the area (see Antero Offers Barnesville, OH Residents $5,700/Acre 20% Royalties). Gulfport and Antero reached a “mutual development agreement” in June and now Gulfport wants to start drilling in the area–but Barnesville is saying the reservoir is too low because other drillers (Antero?) have drawn it down. So Barnesville won’t let Gulfport, which has its own contract, to access water in the reservoir. Gulfport has just sued the Village to gain access…
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American Water Management | Energy Services | Industrywide Issues | Ohio | Regulation | Trumbull County | Wastewater

Decision on Restarting Trumbull County, OH Injection Well Coming Soon
March 20, 2015March 20, 2015

How long does it take the Ohio Dept. of Natural Resources to investigate whether or not an injection well is causing low-level earthquakes? Apparently a long time–6 months at least. Last September two wastewater injection wells were ordered to suspend operations in Trumbull County, OH following an earthquake on August 31st that was so minor nobody felt it (see ODNR Temporarily Shuts Down Injection Wells After Low-Level Quake). Even though nobody felt it, the seismographs at the U.S. Geological Survey picked it up–and that was enough for ODNR. It only took about two weeks for ODNR to clear one of the two wells, the shallower well (see ODNR Clears Trumbull Co. Injection Well in August Quake). ODNR let American Water Management Services (AWMS) restart their AWMS #1 injection well. But so far ODNR won’t let them restart AWMS #2. AWMS is losing big money every day the well is closed, so they filed an appeal with the Ohio Oil & Gas Commission in October. The hearing was (finally) held on March 11…
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Harrison County | Housing | Industrywide Issues | Noble County | Ohio | Utica Shale

Utica Shale Hotels Popping Up Like Dandelions in Spring in Ohio
March 20, 2015March 20, 2015

A brand new 80-room hotel has just opened in Caldwell (Noble County), Ohio, thanks to the Utica Shale. Drill Capital reports the grand opening of a new Wyndham Hotel aimed primarily at workers in the Utica Shale. Drill Capital also reports breaking ground on yet another new hotel–in Cadiz (Harrison County), Ohio…
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