Ohio

Harrison County | Lease & Royalty Payments | Ohio

MWCD Neighbor Asks District to Include Them in Future Lease Deal
July 22, 2014July 22, 2014

The Muskingum Watershed Conservancy District (MWCD) was formed in 1933 to help control flooding and promote water conservation in the Muskingum River watershed area of Ohio, an area that covers 8,000 square miles. Over the past few years the MWCD has been aggressively leasing some of it’s 54,000 acres for shale drilling, a move that is making the organization big bucks (see MWCD Reinvesting $300M of Utica Shale Revenue over Next 10 Yrs). Some of the MWCD leases are for drilling under and around reservoirs (see Antero Pays $15K/Acre, 20% Royalties for MWCD Piedmont Lake Lease). Anti-drillers have, of course, tried to spoil it (see Anti-Drillers Win Minor Victory Against Muskingum Watershed Dist), but such efforts have been largely unsuccessful in their attempt to derail shale drilling on MWCD land. What you don’t usually hear about are stories like this one…
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About MDN | MDN Resources | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

Baker Hughes Announces 2Q14 Well Count – What is a Well Count?
July 14, 2014July 14, 2014

No doubt you’ve heard of the Baker Hughes rig count–the number of drilling rigs currently in use to drill oil and gas wells. Baker Hughes has provided that data for, like, forever! Used to be you could lay a ruler down and determine whether supplies of natural gas would increase or decrease based on the number of drilling rigs in use. That went out the door a few years ago with shale wells. Production numbers are no longer closely tied to the rig count. So Baker Hughes invented a new metric to help: well counts. They reported last week that well counts are up 5% in the second quarter of 2014 over 2013. Wait, what’s a well count? And why is it important?…
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Industrywide Issues | Ohio | Statewide OH | Violence

Ohio Keeps Oil Train Shipment Timing Secret – Media Complains
July 14, 2014July 14, 2014

Last week MDN told you that eight so-called environmental groups are attempting to use a Freedom of Information Law (FOIL) request to force New York State to divulge when large shipments of oil are crossing the state by railroad–making a perfect target for terrorists (see NY Enviro Groups Seek to Use Oil Trains to Their Advantage). A number of other states are facing the same issue–whether or not to divulge the timing of rail shipments of Bakken light crude oil. One of those states is Ohio, and fortunately for Ohioans, the state has decided to keep the timing of oil shipments secret, to avoid (as MDN has pointed out) making shipments an easy target for terrorists…
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Industrywide Issues | Ohio | Pennsylvania | Pipelines | Regulation | Statewide OH | Statewide PA

Commerce Dept Slaps Foreign Countries for Steel Pipe Dumping
July 14, 2014July 14, 2014

MDN has kept an eye on the developing story of foreign countries–particular South Korea–“dumping” cheap steel pipes in the U.S., pipes used in the shale drilling industry (see US Senators Join Chorus: “Illegal” Steel Pipe Dumping by S Korea and “Dumping” Leads to 177 Jobs Lost at PA Marcellus Pipeline Plant). Seems that the Obama Commerce Department agrees and has taken decisive action to put an end to it. Last Friday the Commerce Department slapped a stiff tariff (i.e. tax) on tubular goods (steel pipes) coming in to the U.S. from South Korea and eight other countries…
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Appalachian Oilfield Services | Crime | Energy Services | Industrywide Issues | Ohio | Statewide OH

Feds Slap Appalachian Oilfield Svcs with $129,802 for Back Wages
July 11, 2014July 11, 2014

The federal government has slapped Appalachian Oilfield Services with a hefty fine. The U.S. Dept. of Labor investigated the company and found they were shorting employees by not paying them overtime. So 25 Appalachian employees working in Ohio will be given $129,802 in back wages/overtime according to an announcement by the DOL. Appalachian Oilfield Services is based in Lafayette, LA but as the name suggests, they focus on northeast drilling–providing equipment and personnel to assist with fracking operations. The company has an office in New Matamoras, OH. Here’s the feds tooting their own horn…
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Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Monroe County | Ohio | West Virginia | Wetzel County

Magnum Hunter Buys Ormet Property in OH/WV, More Wells Coming?
July 11, 2014July 11, 2014

MDN has chronicled the sad story of the Ormet aluminum smelting plant in Monroe County, OH. The short version is that the Public Utilities Commission of Ohio (PUCO) played a high-stakes game of chicken with Ormet and denied them permission to continuing burning coal to produce their own electricity while they got three Utica Shale wells on their property up and running (Magnum Hunter is the driller). Then PUCO denied Ormet’s request to get a reduced electric rate from the local utility company. Bottom line, more than 900 people are out of work (see Final Chapter of Ormet Plant Closing – Utica Could have Saved It). A reporter from NGI’s Shale Daily has a sharp eye and discovered that Magnum Hunter, the driller of the three Utica wells still operating on the Ormet property, has just purchased Ormet’s property in OH and WV…
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Anti-Drilling/Fossil Fuel | Athens County | Energy Services | GreenHunter Resources | Industrywide Issues | Meigs County | Ohio | Regulation | Wastewater

Athens County, OH Anti-Drillers Try to Delay GreenHunter Dock
July 11, 2014July 11, 2014

The anti-drilling nutters of Athens, OH are at it again. They’ve just discovered what MDN told you on Tuesday–that GreenHunter Water has filed an application with the U.S. Coast Guard to get permission to build a barge facility in Meigs County (see GreenHunter Seeks Approval for Barge Facility in Meigs County, OH). The Athens nutters (see Break the Law in OH, Get an Award – Anti-Drilling Nuttery on Display) are now accusing the Coast Guard of undue secrecy because they didn’t beat the drums and sound the gongs that a private company had filed an application with them…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Ohio | Statewide OH

Liberal “Churches” Tell OH to Dump Fracking, Embrace Renewables
July 10, 2014July 10, 2014

Churches pretending to be apolitical, but very much political, are once again in the news with regard to the fracking issue. On Monday MDN told you of the repugnant efforts by so-called churches who claim they will divest from a blacklist of 200 companies (like ExxonMobil) that produce evil, vile, nasty fossil fuels (see Some So-Called Churches Vote to Divest from Fossil Fuel Companies). The United Church of Christ and the Unitarian Universalist denominations are two of the so-called churches behind the move. Those two are back in the news in Ohio, trying to (irrationally) tell state legislators to move as quickly as possible to so-called renewable forms of energy and leave fracking for Utica Shale gas behind…
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Lease & Royalty Payments | Ohio | Statewide OH

Let’s Play Lease Poker – Calling the Lease Agent’s Bluff
July 10, 2014July 10, 2014

Psst, hey buddy, want to play some poker? A landman with inside knowledge sheds light on how drillers time their lease filings–particularly in Ohio. Bill Dannley writing in Ohio Oil & Gas likens the process to playing poker–knowing when to hold ’em and when to fold ’em. Before landowners are approached to sign a lease, a lot of work has already been done, according to Dannley. Expensive seismic surveys have been conducted and deeds have been researched. When a landowner signs on the dotted line, you might expect the landman to hustle on down to the courthouse to file the lease–but that’s not what usually happens…
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Ohio | Statewide OH | Utica Shale

Mid-Year Update for OH Utica – Who’s Drilling Where & How Much?
July 9, 2014July 9, 2014

Time for an update on the rapidly expanding Utica Shale region. Below MDN outlines the most active drillers in the Utica, indicating their acreage positions and how many wells they have permitted, drilled or producing (so far). Information on acreage positions was gleaned from company websites, the 2014 Marcellus and Utica Shale Databook, Vol. 1 and NGI’s Shale Plays Fact Book…
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Housing | Industrialization | Industrywide Issues | Ohio | Research | Statewide OH

OSU Extension Says Shale Boom Towns Don’t Have to Go Bust
July 9, 2014July 9, 2014

Are communities that see a boom from shale drilling destined to experience a bust sometime down the road? MDN recalls that was one of the main reasons Cornell “professor” Tony Ingraffea offered for why he doesn’t like shale drilling at a meeting he addressed back in 2010 (see Cornell Hydraulic Fracturing Expert Headlines First Meeting of New York Residents Against Drilling (NYRAD) in Vestal, NY). However, a new project being launched by Ohio State University’s Extension program says boom then bust “isn’t inescapable” and they aim to help communities avoid that fate…
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Belmont County | Butler County | Carroll County | Energy Companies | Guernsey County | Noble County | Ohio | Pennsylvania | Rex Energy

Rex Energy Begins Selling Ethane; New Wells Go Online in June
July 8, 2014July 8, 2014

Rex Energy, the “little driller that could” and indeed “is” doing a marvelous job in the Marcellus Shale, issued an important update yesterday. Rex reports they began ethane sales on June 11–which was a little bit delayed from what they had expected. But better late than never. Rex projects selling 2,000-3,000 barrels per day of ethane until mid-July at which point more sources will come online. Once all cylinders are firing, the company expects to sell 5,000 barrels of ethane per day. In addition to the good ethane news, Rex recently brought a number of new Marcellus Shale wells online and expects to keep up a brisk pace this year…
Read More “Rex Energy Begins Selling Ethane; New Wells Go Online in June”
Energy Services | GreenHunter Resources | Industrywide Issues | Meigs County | Ohio | Regulation | Wastewater

GreenHunter Seeks Approval for Barge Facility in Meigs County, OH
July 8, 2014July 8, 2014

Over the past few years GreenHunter Water, a subsidiary of Magnum Hunter Resources, has purchased seven barge facilities along the Ohio River with the stated intent to transport frack wastewater from up the river in places in Pennsylvania and West Virginia and even Ohio, to further down the river in Ohio–where it would be offloaded and disposed by injection well. We wrote in May 2013 of the long road to receiving federal approval for such a plan (see The Long (Federal) Road to Approve GreenHunter’s Barge Terminals). Then in October it seemed like an approval from the U.S. Coast Guard was imminent (see Coast Guard Green Lights Barge Transport of Frack Wastewater). Here we are in July 2014–and still no Coast Guard approval in sight, which is disappointing…
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Industrywide Issues | Jobs | Ohio | Statewide OH

OH Makes $150K Grant to Union to Train Utica/Marcellus Welders
July 7, 2014July 7, 2014

More highly skilled (and highly paid) welders will be on the way soon in the Utica and Marcellus Shale thanks to a $150,000 training grant by the State of Ohio to the Plumbers & Pipefitters Local 396. The grant, from the Governor’s Office of Appalachia, will train (or retrain) 40 union welders over the next one year. The money will put Ohioans back to work by working in the gas fields (no “foreigners” need apply). Here’s the official announcement:
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Ohio | Statewide OH

OH Natgas Production Doubles from 2012 to 2013 Thx to the Utica
July 3, 2014July 3, 2014

Yesterday the Ohio Dept. of Natural Resources (ODNR) released production numbers for 2013 and the numbers were truly impressive. ODNR says all oil and gas wells (conventional and unconventional/shale) in Ohio produced 8 million barrels of oil and 171 billion cubic feet of gas in 2013. Compared to 2012, Ohio’s total oil production increased by 62% and natural gas production increased by 97%. The increase in natural gas is due almost entirely to the Utica Shale…
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Ohio | Statewide OH

Ohio Utica’s Top 10 Gas Wells & Top 10 Oil Wells 1Q14
July 3, 2014July 3, 2014

The Ohio Dept. of Natural Resources not only released 2013 full year oil and gas production figures yesterday, they also released first quarter 2014 production figures. For 1Q14 the state’s Utica wells produced almost 2 million barrels of oil and 67 billion cubic feet of natural gas from 418 operating wells (out of 476 completed wells). Below MDN has assmebled the Top 10 natural gas producing wells for 1Q14, the top 10 oil wells, and stats by county and by driller. It paints a fascinating picture…
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