Ohio

Lease & Royalty Payments | Ohio | Statewide OH

Lease Signing 101 for Landowners – A Short Q&A with OH Attorney
January 23, 2014January 23, 2014

What should landowners know–what questions should they have answers for–before they sign an oil and gas lease? Attorney Dan Gerken from Ohio law firm Bricker & Eckler tackles the important questions landowners should know the answers to in an online post that we think of as “lease signing 101.” It doesn’t hurt to cover the basics from time to time as new landowners are approached and begin the process of trying to figure out what they should do.

Here’s Dan’s good all-around “basics” Q&A advice:
Read More “Lease Signing 101 for Landowners – A Short Q&A with OH Attorney”
Industrywide Issues | Ohio | Statewide OH | Taxation | Utica Shale

OH House Dem Makes Another Run at Nosebleed 7.5% Severance Tax
January 22, 2014January 22, 2014

The reliably anti-drilling Ohio State Representative from Youngstown, Robert F. Hagan, would prefer to ban shale drilling outright. Since that’s not going to happen in OH (at least not any time soon), he wants to kill it another way. Last June Hagan introduced a bill in the OH House that would enact a 7.5% drilling tax on Utica Shale drilling, which would of course effectively kill all Utica drilling henceforth (see Youngstown Democrat State Rep Wants to Hike Severance Tax to 7.5%). You have to hand it to those OH Dems–they’re real johnny one-notes: tax more, spend more.

Hagan is trotting out his obscenely high tax bill once again, trying to whip up support. Good luck with that one Bobby…
Read More “OH House Dem Makes Another Run at Nosebleed 7.5% Severance Tax”
Belmont County | Energy Companies | Gulfport Energy | Lease & Royalty Payments | Ohio | Utica Shale

School in Belmont County, OH Gets $7,250/Acre from Gulfport
January 21, 2014January 21, 2014

Some 10 miles “as the crow flies” from Gulfport Energy’s super well, the Irons 1-4H (pumping out 30 million cubic feet of natural gas per day) sits the small community of Shadyside and the Shadyside Local School District. The school has just leased 20 acres to Gulfport for drilling under (not on), which may seem like not much. However, when you’re getting $7,250 per acre as a signing bonus, and 20% royalties on anything produced, the school’s 20 acres is way more than “not much.”

Shadyside School’s lease with Gulfport will net them an initial check for $145,000–just for the signing bonus. Gulfport is signing up the neighbors around Shadyside too. Will the school’s property be drilled under this year? Maybe! Gulfport is spending $630 million to drill 95 new Utica wells–many of them in Belmont County, OH where Shadyside is located and where Gulfport has had huge success already…
Read More “School in Belmont County, OH Gets $7,250/Acre from Gulfport”
Belmont County | Energy Companies | Lease & Royalty Payments | Ohio | Rice Energy | XTO

Belmont County School Gets Huge Checks from Utica Leases
January 20, 2014January 21, 2014

A local school district in Belmont County, OH–Union Local Schools–is reaping huge rewards from leasing land for Utica Shale drilling. Union Local Schools has already received a lease signing bonus check for $519,750, and a second check is on the way for $112,000–and that’s before a penny of royalties are paid (19% for one lease agreement, 20% for a second lease agreement).

Here’s the low-down…
Read More “Belmont County School Gets Huge Checks from Utica Leases”
Carrizo Oil & Gas | Energy Companies | Guernsey County | Ohio | Utica Shale

Carrizo Releases IP Numbers for Guernsey County, OH Utica Well
January 20, 2014January 20, 2014

Last week Carrizo Oil & Gas released a brief update on the initial production for their newest Utica Shale well, the Rector 1H in Guernsey County, OH. In addition, Carrizo said they plan to move a drilling rig into the OH Utica in early 2Q14 and keep it there through the balance of the year.

According to NaturalGasIntel.com, Carrizo’s acreage position is the smallest of the “major” drillers in the Utica with just 14,500 acres leased. Here’s Carrizo’s initial production (IP) numbers for the Rector 1H and their comments about their Utica drilling program:
Read More “Carrizo Releases IP Numbers for Guernsey County, OH Utica Well”
Energy Services | Industrywide Issues | Ohio | Pipelines | Portage County | Sunoco Logistics

Sunoco Logistics Answers NGL Pipeline Concerns in Portage, OH
January 20, 2014January 20, 2014

Sunoco Logistics personnel were treated last week to a variety of silly concerns about an NGL pipeline they’re proposing through Portage County, OH–concerns like people keeling over dead because of undetected leaks in the buried pipeline and mass contamination of water aquifers. The anti-drillers are so good at distributing lies and distortions it’s no wonder average folks are concerned. You’d think a pipeline was the equivalent of an environmental holocaust.

Even though pipelines are the safest form of transportation in existence, people turned out last week and packed the local county commissioner’s office to express their unfounded concerns. Here’s how it went:
Read More “Sunoco Logistics Answers NGL Pipeline Concerns in Portage, OH”
Belmont County | Butler County | Carroll County | Energy Companies | Guernsey County | Noble County | Ohio | Pennsylvania | Rex Energy

Rex Energy 4Q13: Several Marcellus Experiments Paying Off
January 16, 2014January 16, 2014

The “little” driller in the Marcellus, Rex Energy, posted impressive gains in production for the fourth quarter of 2013. According to their 4Q13 update issued yesterday, Rex’s production, nearly all of which comes from the Marcellus and Utica Shale region, was 110 million cubic feet per day–a 12% increase over 2012. Of keen interest to investors is that 31% of net production for 4Q13 was oil and natural gas liquids (NGLs). The company gets a lot more money for those products than just plain “dry gas” methane.

Rex has operations in western PA and eastern OH. Of interest to MDN is that Rex is testing a strategy of drilling both the Marcellus and the shallower Upper Devonian layers in a single well, apparently with good success. They’re also experimenting with spacing wells closer together–at 600 feet apart instead of the traditional 750 feet. Rex is innovating, and reaping the rewards. Here’s their full 4Q13 update:
Read More “Rex Energy 4Q13: Several Marcellus Experiments Paying Off”
Economic Impact | Hydraulic Fracturing | Industrywide Issues | Ohio | Research | Statewide OH | Utica Shale

Quarterly OH Utica Shale Report from CSU: Huge Economic Impact
January 16, 2014January 16, 2014

Each quarter, researchers at Cleveland State University publish the Ohio Utica Shale Gas Monitor, a report that looks at the economic impacts of Utica and Marcellus Shale drilling in Ohio. The latest report was issued a few weeks ago and MDN has just now been able to locate a copy to share with you (full copy of the 39-page report embedded below). What does the report tell us? The number of counties with “strong” shale activity has gone to eight from 15, and the number of counties with “moderate” shale drilling activity has gone to five from 30. That’s a head-turner! The “strong” counties, in addition to producing methane (or dry gas), are also producing “commercial amounts” of natural gas liquids (wet gas).

Here’s a good overview of the report as provided by NortheastPA.com:
Read More “Quarterly OH Utica Shale Report from CSU: Huge Economic Impact”
Belmont County | Blue Racer Midstream | Economic Impact | Energy Services | Industrywide Issues | Jobs | Marshall County | Ohio | Ohio County | Pipelines | Processing Plants | West Virginia | Williams

Utica/Marcellus Construction Spending Rockets in Wheeling Area
January 14, 2014January 14, 2014

According to McGraw Hill Construction, the Wheeling, WV Metropolitan Statistical Area, which includes Ohio and Marshall counties in WV and Belmont County in Ohio, saw construction explode from $60.3 million in 2012 to $1.57 billion in 2013–a 29-fold increase. The vast majority of that explosion in construction came from–you guessed it–the Marcellus and Utica Shale. Midstream companies Williams and Blue Racer spent the majority of that on new processing plants and pipelines in the area.

This is incredibly good news for that area of the Ohio Valley. The even better news? Ironworkers Local No. 549 predicts this kind of spending by the drilling industry will go on for at least another 5-10 years. Wow!…
Read More “Utica/Marcellus Construction Spending Rockets in Wheeling Area”
Belmont County | Ohio | Utica Shale

Belmont County Continues to be One of Hottest Spots in OH Utica
January 13, 2014January 13, 2014

MDN has previously told you, on a number of occasions, that an early indicator of where drilling will soon heat up is to watch the local county land recorder’s office–the place where they keep official copies of property deeds. If it’s crowded in the local land records office, that means drillers are ready to make offers to landowners and want to start drilling. Of course they first have to figure out who owns the mineral rights, hence the activity in title searchers and abstactors checking deeds.

Over a year ago we told you about the crazy lines and overpacked recorder’s office in Belmont County, OH (see Belmont County, OH Deed Research Impacts Local Library Too). Our prediction held true as Belmont has become one of the hottest hot spots in the eastern Ohio Utica Shale. You might think a year later things would have settled down at the Belmont County Recorder’s Office. Not so. Last Wednesday when Belmont County Recorder Mary Catherine Nixon arrived at the office at 8:30 am, she found 120 people waiting in line to get in. Oy vey!…
Read More “Belmont County Continues to be One of Hottest Spots in OH Utica”
Anti-Drilling/Fossil Fuel | Education | Hydraulic Fracturing | Industrywide Issues | Ohio | Statewide OH

Radio Disney Pressured, Pulls Out of OH O&G Education Program
January 13, 2014January 13, 2014

Radio Disney had been participating in a tour of elementary schools in Ohio as part of an education project that, among other things, educates kids on how oil and gas drilling and pipelines work. Called “Rocking in Ohio” the program’s intent is to foster interest in science and technology. Because the tour is sponsored by the Ohio and Gas Energy Education Program and partially funded by the drilling industry, the anti-drilling brigade came out in force and has now pressured Disney into withdrawing from the program. We can’t have the truth getting out there in song and dance, ya know!

Few American-based media outlets are covering the story, so we have to get the Disney story from the pro-terrorist Al Jazeera America network. You know, the network that paid Al Gore a gazillion dollars for his dying Current TV network, finally making Al a rich man and giving Al Jazeera access to American airways to spread their garbage. The network that hires CNN has-beens like Soledad O’Brien to put a pretty face on an ugly network. The network that loves to air terrorists beheading people? Yeah, that network–the network owned by Middle Eastern oil sheiks who fear fracking will end their massive wealth gives us the Disney pulling out in Ohio story…
Read More “Radio Disney Pressured, Pulls Out of OH O&G Education Program”
Forced Pooling | Industrywide Issues | Litigation | Ohio | Statewide OH | Utica Shale

Forced Pooling in Ohio Utica Shale on the Rise, Sadly
January 13, 2014January 13, 2014

Drillers in Ohio’s Utica Shale are increasingly using the state’s “unitization” or forced pooling laws to force landowners who don’t want drilling to be included in drilling units where a majority of the neighboring land is leased. According to an article in the Akron Beacon Journal, 22 such requests have been filed in Ohio to date. Of those 22 filed, 6 were approved, 6 were resolved or dropped, and 10 are pending.

We know the arguments for and against forced pooling, and you know where we stand on the issue (we take a dim view of it), so we won’t belabor the point. Here’s the Beacon Journal’s update on some of the forced pooling cases in eastern Ohio, including which drillers are doing the forcing, and the results…
Read More “Forced Pooling in Ohio Utica Shale on the Rise, Sadly”
Hydraulic Fracturing | Industrywide Issues | Ohio | Regulation | Statewide OH | Utica Shale

OH Gov. Kasich Goes After Out-of-State Engineers/Surveyors
January 10, 2014January 10, 2014

Ohio Gov. John “Foreigner Hunter” Kasich is on the prowl again–seeking to block “foreigners” (from exotic places like Texas and Oklahoma and Louisiana) from working in Ohio. It’s been more than a year since Kasich made it one of his missions as governor to block “foreigners” from working in Ohio’s flourishing Utica Shale industry (see OH Gov. Kasich Continues Trash Talk Out-of-State Workers).

The latest action taken by the Kasich administration, via the Ohio State Board of Registration for Professional Engineers and Surveyors, is to let professional engineers and surveyors know that if they come to Ohio to work for the Utica Shale industry, they will need to be registered, forms filled out in triplicate, and (steep) dues paid–or they’ll be bounced out of the state on their collective ear…
Read More “OH Gov. Kasich Goes After Out-of-State Engineers/Surveyors”
Athens County | Industrywide Issues | Litigation | Ohio | Wastewater

Athens County, OH Anti-Drillers Sue to Stop New Injection Well
January 10, 2014January 10, 2014

Anti-drillers with the Athens County Fracking Action Network (ACFAN) have filed a legal challenge to the permit issued last month by the Ohio Dept. of Natural Resources (ODNR) approving a new injection well to be drilled in the county. The injection well would be the second well at a site owned by K&H Partners and would dispose up to 168,000 gallons of frack wastewater per day. According to ACFAN, this is the first challenge to a permitted injection well in 20 years, something they’re quite proud of.

Here’s the ACFAN announcement:
Read More “Athens County, OH Anti-Drillers Sue to Stop New Injection Well”
Industrywide Issues | Ohio | Statewide OH | Taxation | Utica Shale

Hearings Underway on OH Plan to Bribe Voters with Utica Shale Tax
January 9, 2014January 9, 2014

Some RINO elected Republicans in Ohio and some oil and gas industry folks have combined forces to endorse a horrible idea: raising the drilling tax on Utica Shale drilling. MDN previously outlined our objections to the plan (see Taking a Closer Look at Ohio’s “Piddly” Utica Shale Tax Increase). The Ohio House is now holding hearings on the plan–listening to testimony both for and (presumably) against.

Here’s the latest on the Ohio hearings to retard the growth of the Utica Shale by increasing taxes on it to bribe redistribute some of the money to people who don’t have a thing to do with producing it:
Read More “Hearings Underway on OH Plan to Bribe Voters with Utica Shale Tax”
Belmont County | Harrison County | Monroe County | Ohio | Utica Shale

OH’s Biggest Producing Utica Counties: Belmont, Monroe, Harrison
January 8, 2014January 8, 2014

More analysis of the recent third quarter 2013 Utica Shale production report released on Dec. 31 by the Ohio Dept. of Natural Resources, including which counties had the best production in 3Q13:
Read More “OH’s Biggest Producing Utica Counties: Belmont, Monroe, Harrison”