Ohio

Anti-Drilling/Fossil Fuel | Athens County | Crime | Industrywide Issues | Ohio

“Athens 8” Criminal Protesters Receive Slap on Wrist by OH Court
April 1, 2014April 1, 2014

Eight loud, obnoxious and anything-but-peaceful protesters were arrested in February near Athens, OH for trespassing and illegally blocking the entrance to an injection well site (see Break the Law in OH, Get an Award – Anti-Drilling Nuttery on Display). The eight alleged criminals–charged with criminal trespass–have successfully pleaded their crimes down to disorderly conduct and let go with a slap on the wrist by an Ohio court.

One of the protesters, a “sustainable” organic farmer, Gilbert (Kip) Rondy, someone who operates “unheated greenhouses” (apparently that’s a badge of honor instead of a sanity test), read a statement to the judge that attempts to excuse his and the other protesters’ lawless actions by saying they had to do it to protect Mother Earth. This one will give you a chuckle like it did us…
Read More ““Athens 8” Criminal Protesters Receive Slap on Wrist by OH Court”
Energy Services | Industrywide Issues | Ohio | Pipelines | Statewide OH | TC Energy/TransCanada

ANR Pipeline Succeeds, Reversing Flow to Ship Utica/Marcellus Gas
April 1, 2014April 1, 2014

MDN told you a few weeks ago that ANR Pipeline, owned by TransCanada, would potentially become bi-direction and reverse flows to carry Utica and Marcellus Shale gas to the Gulf Coast–if they can secure enough commitments from shippers (see TransCanada’s ANR Pipeline to Reverse & Carry Marcellus Gas South). ANR offered up to 600,000 dekatherms (or 600 million cubic feet, Mmcf) per day of capacity in the Utica/Marcellus. Yesterday ANR announced they have met their goal–and then some. Not only have they got 600 Mmcf/d of commitments for the portion coming from the Utica/Marcellus, they’ve secured enough commitments in other locations to move a total 2 billion cubic feet (Bcf) per day along the ANR Pipeline system both north and south, which stretches 10,600 miles through the midsection of the U.S.

Here is the good news announcement from ANR that they’re going bi-directional and now have firm commitments for the next 23 (!) years:
Read More “ANR Pipeline Succeeds, Reversing Flow to Ship Utica/Marcellus Gas”
Accidents | Energy Services | Industrywide Issues | Ohio | Pipelines | Statewide OH | Sunoco Logistics

Sunoco Logistics Oil Pipeline Leaks 20K Gal in OH Nature Preserve
March 27, 2014March 27, 2014

Last Tuesday Sunoco Logistics discovered a 5-inch crack leaking crude oil from their Mid-Valley Pipeline–and the oil was leaking into the Oak Glen Nature Preserve just west of Cincinnati, OH. Ouch. Initial reports were that 10,000 gallons of oil had leaked before the pipeline between Hebron, KY and Lima, OH was shut off. That estimate has been doubled–it’s now thought more than 20,000 gallons of oil leaked. Double ouch.

What does this have to do with Marcellus/Utica shale drilling? Not much. It’s possible some of the oil comes from Ohio–more likely from other locations (we don’t know). Sunoco Logistics is the company that has built (and is building) the Mariner West and Mariner East ethane/NGL pipelines–but it’s a stretch to compare those gas pipelines with the Mid-Valley oil pipeline. The connection between the oil spill and northeast shale drilling is this: MDN editor Jim Willis first learned about the leak at the Oil & Gas Awards’ “Conference for Excellence” last week in Pittsburgh. Jim was sitting next to an official from McCutcheon Enterprises–one of the companies called in to clean up the mess–who told Jim about the spill and his company’s rapid response to work on getting it cleaned up…
Read More “Sunoco Logistics Oil Pipeline Leaks 20K Gal in OH Nature Preserve”
Industrywide Issues | Ohio | Statewide OH | Taxation | Utica Shale

Ohio Republicans About to Go Goose Hunting with Severance Tax?
March 26, 2014March 26, 2014

It seems MDN is not alone in encouraging the weak-kneed Republican politicians in Ohio to not screw up the economic miracle happening in their state by imposing an overzealous severance tax on Utica Shale drilling.

The editorial writers at the Wheeling News-Register think Gov. John Kasich and the House Republicans should tread lightly and make double-dog sure whatever new taxes they vote for, they don’t kill the goose laying the golden eggs in Ohio…
Read More “Ohio Republicans About to Go Goose Hunting with Severance Tax?”
Antero Resources | Belmont County | Energy Companies | Guernsey County | Harrison County | Lease & Royalty Payments | Ohio | Utica Shale

MWCD Close to Signing Utica Lease for Piedmont Lake, OH Property
March 26, 2014March 26, 2014

In early January MDN brought you the delicious news that the Muskigum Watershed Conservancy District (MWCD) is planning to lease a large tract of District-owned land in and around Piedmont Lake (in Belmont, Guernsey and Harrison counties) for Utica Shale drilling (see MWCD Open House on Leasing Piedmont Lake Property for Drilling). The original 6,600 acres has now turned into 6,700 acres and the lessor will be Antero Resources, according to an announcement issued by the MWCD last Friday.

According to the MWCD board, they will likely vote on the lease at their next meeting scheduled for April 18. An update on the Piedmont Lake lease from the MWCD is below, along with the draft copy of the lease from Antero. Noticeably missing from the draft lease are the terms…
Read More “MWCD Close to Signing Utica Lease for Piedmont Lake, OH Property”
Industrywide Issues | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | Taxation | West Virginia

Best Way to Kill Drilling in PA/OH/WV: “Uniform” Severance Tax
March 26, 2014March 26, 2014

A few weeks ago MDN said the plan floated by lefties and libs to create a so-called uniform severance tax across PA, OH and WV is one of the dumbest things we’ve heard in a long time (see Stupid Idea of the Year: Create Uniform Severance Tax in PA-OH-WV). The plan as proposed means all three states hold hands and jump off the economic cliff together. Apparently it’s more fun to die together (economically) than alone.

MDN is not the only voice to point out the lunacy of this plan. The head of the PA Chamber of Business and Industry also says the proposed mega-tax is nuts. As Gene Barr highlights in the following letter to the editor, it’s apparent the people proposing such a plan–including the Pennsylvania Budget and Policy Center–are ignorant of how taxes in PA and other places actually work. You would think an organization with a name that includes the word “budget” would employ at least one economist or accountant. Apparently they don’t. They are economic illiterates who don’t realize what they are proposing is anything but fair–especially to Pennsylvanians…
Read More “Best Way to Kill Drilling in PA/OH/WV: “Uniform” Severance Tax”
Belmont County | Carroll County | Columbiana County | Guernsey County | Harrison County | Lease & Royalty Payments | Monroe County | Noble County | Ohio | Utica Shale | Washington County (OH)

Company Targets OH Landowners – Buy Future Royalties for Cash Now
March 26, 2014March 26, 2014

Gateway Royalty is back and has $58.5 million on the bank they can’t wait to give landowners in the Ohio Utica Shale in return for future royalty payments. MDN told you about Gateway last summer. They were the company that the town of Carrollton, OH sold 1/4 of their royalty rights to (see OH Town Votes to Give Up 1/4 Royalties for Cash Payment Now). The way it works, in brief: Gateway pays landowners a lump sum now in return for the right to receive that landowner’s future royalty payments for years to come. You (the landowner) get your money now, they (Gateway) get the money you would have gotten dribbled out over time. Of course the money you receive now is discounted and in all likelihood far less than you would have gotten if you had waited just a few years (the bulk of royalty payments come in the first four years). It’s a bit of a gamble by both parties because no one really knows how much a well will produce.

Still, there are reasons why someone may want to get cash up front–pay off debt, ill health, etc. So in that vein, we bring you the latest press release from Gateway announcing they are ready, willing and waiting to give Ohio Utica Shale landowners money now. Specifically they are targeting landowners in Washington, Noble, Guernsey, Monroe, Belmont, Harrison, Carroll and Columbiana counties…
Read More “Company Targets OH Landowners – Buy Future Royalties for Cash Now”
Crime | Industrywide Issues | Litigation | Mahoning County | Ohio | Wastewater

Ben Lupo Admits Guilt in OH Frack Wastewater Dumping, Prison Next?
March 25, 2014March 25, 2014

Last week MDN speculated that Ben Lupo, the business owner of a trucking company who instructed an employee to repeatedly dump frack wastewater down a drain that emptied into the Mahoning River near Youngstown, OH, would change his plea from not guilty to guilty (see Youngstown Wastewater Dumping Case Nears End, Lupo to Plead Guilty?).

Indeed, Lupo did change his plea yesterday in a federal court in Cleveland…
Read More “Ben Lupo Admits Guilt in OH Frack Wastewater Dumping, Prison Next?”
Energy Companies | Halcon Resources | Ohio | Statewide OH | Utica Shale

Utica Driller Halcon Resources Up for Sale According to CEO
March 25, 2014March 25, 2014

MDN recently reported that Halcon Resources has stopped drilling on their leased land in the Utica Shale (see Halcon Resources Stops Drilling, Gives Up on the Utica Shale). Halcon’s blunt-talking CEO, Floyd Wilson, famously said he didn’t want to drill any more underperforming (he used more colorful language) wells in the Ohio’s northern Utica and instead seemed to say the company’s focus would be further south. Then the company said nyet–no more wells drilled in 2014 in the Utica. From Wilson’s remarks yesterday at the Howard Weil energy conference in New Orleans, it appears that Halcon may not drill any more wells in the Ohio Utica…ever.

Wilson said yesterday at the investor’s conference that it is his end-game to sell Halcon to a bigger fish. Wilson started Halcon 2011. In order to sell the company, he’s working to make it more attractive to investors. Wilson knows a thing or two about building energy companies and selling them–he built up and sold Petrohawk Energy to BHP Billiton Plc in 2011 for $12.1 billion. Apparently he’s hoping to do something similar with Halcon, except this time around it’s more of a challenge. Below is a report on Wilson’s “Halcon is up for sale” remarks yesterday in New Orleans…
Read More “Utica Driller Halcon Resources Up for Sale According to CEO”
Antero Resources | Eclipse Resources | Energy Companies | Energy Services | EnLink Midstream | Ohio | PDC Energy | Statewide OH | Utica Shale

Some Utica Players Tip Their Hand on Plans for Next 3-5 Years
March 25, 2014March 25, 2014

Although drillers are often mum on future plans, some drillers (and midstream companies) who participated in the recent Ohio Oil & Gas Association (OOGA) annual winter meeting earlier this month were helpfully chatty about what’s coming in the Ohio Utica over the next few years.

Tom Knox, intrepid new reporter doing a great job at the Columbus Business Journal, was on hand at the OOGA meeting and took good notes. He reports on what PDC Energy, Antero Resources, Eclipse Resources and Enlink Midstream have planned in the next 3-5 years for the Utica…
Read More “Some Utica Players Tip Their Hand on Plans for Next 3-5 Years”
American Water Management | Earthquakes | Energy Services | Industrywide Issues | Mahoning County | Ohio | Regulation | Trumbull County | Wastewater

OH Earthquakes May Delay Opening of New Niles Injection Well
March 24, 2014March 24, 2014

Although Niles (Trumbull County), Ohio is about 18 miles from Poland (Mahoning County), Ohio by car, it’s only about 8-9 miles “as the crow flies.” And that proximity may be a problem for a new Class II frack wastewater injection well set to open in just a few weeks in Niles. Why? Because nearby Poland is where there was a recent series of earthquakes (see # of Youngstown Earthquakes go from 2 to 11 – Fracking to Blame?).

American Water Management Services Inc. say they are about two weeks away from opening their new injection well in Niles–or could open if they get the necessary permits. The Ohio Dept. of Natural Resources (ODNR) says it’s too early to say whether or not the new injection well will be allowed to open in the next few weeks because of the ongoing earthquake investigation…
Read More “OH Earthquakes May Delay Opening of New Niles Injection Well”
Industrywide Issues | Ohio | Statewide OH | Supply Chain

FL Company Gets Contract to Process Chemical Sludge in Marcellus
March 21, 2014March 21, 2014

Handex Industrial Services (HIS), based in Winter Park, FL, announced yesterday that they’ve been awarded a $750,000 contract to clean and treat chemical “sludge” left over from treating frack wastewater for…someone. The customer is not named. Actually, we think the press release from HIS is a bit screwed up. It says the contract is with “an environmental engineering and consulting firm conducting hydraulic fracturing.” We think they mean “an oilfield services firm.” We’re not aware of any engineering firms that do fracking. Where is the unnamed company located? “…the Marcellus Shale Formation in east central Ohio.” Er, we think they mean the Utica Shale in east central Ohio. Is there Marcellus there? Yes. But not a lot of drilling in the Marcellus layer in that area at this time.

At any rate, our point is this: A Florida company is doing work on cleaning up leftover chemical waste from frack wastewater. Other drillers/oilfield companies may be interested in knowing that, and other companies that can do the same thing located in the northeast should pay attention to the opportunities in their own back yard. Here’s the somewhat hard-to-understand press release from HIS:
Read More “FL Company Gets Contract to Process Chemical Sludge in Marcellus”
Earthquakes | Energy Companies | Hilcorp Energy | Industrywide Issues | Lawrence County | Mahoning County | Ohio | Pennsylvania

Hilcorp Awarded Permits to Drill 7 New Wells Near Earthquake Zone
March 20, 2014March 20, 2014

Oh oh. It appears one hand does not know what the other is doing. Last week a new series of small earthquakes–barely able to be felt, but there all the same–rumbled through the Mahoning Valley–near Youngstown, OH. Because of injection well related earthquakes near Youngstown two years ago, residents are understandably jittery and wonder if the drilling industry is somehow at fault with this new outbreak. So the Ohio Dept. of Natural Resources (ODNR), out of what they call “an abundance of caution,” asked Hilcorp to stop all drilling and fracking activity in the area (see # of Youngstown Earthquakes go from 2 to 11 – Fracking to Blame?).

Hilcorp readily complied. We’ve discussed (endlessly) that fracking simply does not cause earthquakes–injection wells can and have caused earthquakes, when injecting fluid over an active fault. However, it’s best to play it safe in this situation. Two days after the earthquakes and Hilcorp’s cessation of drilling in Mahoning County, the Pennsylvania Dept. of Environmental Protection (DEP) awarded Hilcorp permits to drill seven new horizontal shale wells in Lawrence County, PA–about six miles from where they stopped drilling over the border in Ohio. Oops…
Read More “Hilcorp Awarded Permits to Drill 7 New Wells Near Earthquake Zone”
Crime | Industrywide Issues | Litigation | Mahoning County | Ohio | Wastewater

Youngstown Wastewater Dumping Case Nears End, Lupo to Plead Guilty?
March 20, 2014March 20, 2014

Last year the owner of Youngstown area Hardrock Excavating and its sister company D&L Energy, Ben Lupo, allegedly instructed one of his employees who hauled frack wastewater (through the Hardrock company) to dump the wastewater down a drain–at night so no one would notice. And it wasn’t just one or two times (see Youngstown, OH Illegal Wastewater Dumping Happened “At Least” 24X). The employee and Lupo were eventually caught. After both businesses were effectively closed down by the Ohio Dept. of Natural Resources, the assets were eventually auctioned off (see Denver Co Buys OH Wastewater Polluter D&L Energy for $20.7M).

The employee plead guilty and will be sentenced tomorrow. Until now Lupo has maintained innocence. However, the judge in the case has scheduled a “change of plea” hearing for Lupo next Monday in Cleveland. That almost always means the defendant is changing his plea to guilty. To which we say, it’s about time…
Read More “Youngstown Wastewater Dumping Case Nears End, Lupo to Plead Guilty?”
Ohio | Statewide OH | Utica Shale

More Predictions from Ohio’s State Geologist on Utica Drilling
March 20, 2014March 20, 2014

Yesterday MDN told you that the Ohio State Geologist, Mike McCormac, made a pretty bold prediction (see OH State Geologist Predicts 19K New Utica Wells in Next 19 Years). McCormac’s predictions and thinking are outlined in a new and as of yet, unreleased report. However, as we pointed out, the Akron Beacon Journal somehow got a copy and shared some of the highlights.

The Beacon Journal has published a second article with even more tidbits from the soon-to-be-released report from McCormac:
Read More “More Predictions from Ohio’s State Geologist on Utica Drilling”
Ohio | Statewide OH

New President Elected for 2 Year Term at OOGA
March 20, 2014March 20, 2014

Ohio Oil and Gas Association (OOGA) has a new president: David R. Hill has been elected to serve as president for a two-year term. Hill is a native Ohioan–a good thing since Gov. John “foreigner hunter” Kasich keeps an eye on these things. Hill is a long-time independent oil and gas producer and geologist based in Byesville, OH.

The announcement from OOGA:
Read More “New President Elected for 2 Year Term at OOGA”