Ohio

Energy Companies | Halcon Resources | Industrywide Issues | Ohio | Pipelines | Trumbull County

Niles, OH Does Complete Turnaround, Leases Land for Pipeline
December 19, 2013December 19, 2013

What a complete turnaround–dare we say a “revelation”–in Niles, OH. In August, the Niles City Council voted to ban drilling. The measure they passed also prohibited the city from doing business with the drilling industry, which is a problem because the city does a lot of business with the industry (see Niles, OH Considers Vote to Rescind Ill-Advised Frack Ban). So a month after they passed the measure, City Council voted to rescind it (see Niles, OH Votes to Lift Frack Ban One Month After Passing It).

In a complete turnaround from their anti-drilling ways of just a few months ago, City Council voted yesterday, unanimously, to let Halcon Resources lay a new pipeline under a portion of city-owned land…
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Energy Services | Ethane | Harrison County | Industrywide Issues | Kinder Morgan | NGLs | Ohio | Pipelines | Statewide OH

UTOPIA is Coming! The UTOPIA Pipeline, that is…
December 17, 2013December 17, 2013

Kinder Morgan announced yesterday a plan to build a new 210-mile natural gas liquids (NGL) pipeline that will connect multiple fractionation facilities in Harrison County, OH, to Riga, MI. From Riga, the NGLs will hitch a ride via the KM Cochin Pipeline east to Windsor, Ontario, Canada where they will be delivered to NOVA Chemicals. The new $300 million, 10-inch pipeline from OH to MI has been cleverly named Utica To Ontario Pipeline Access (UTOPIA). The NGLs that will flow through the pipeline will already be refined (“fractionated” or separated) and will include ethane and propane.

Here’s Kinder Morgan’s good news announcement that UTOPIA is coming:
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Energy Companies | Halcon Resources | Ohio | Statewide OH

Halcon Resources Lowers 2014 CapEx Spending, Not Production
December 17, 2013December 17, 2013

Yesterday Utica Shale driller Halcon Resources lowered their “guidance” (what they expect to do) in capital spending for 2014. That is, they said they will spend less money–about 14% less–than previously announced on their drilling programs in 2014. However, they also added they still expect to produce about the same amount of oil and gas, even though they’ll spend less.

Also in yesterday’s announcement, Halcon CEO Floyd Wilson, who tends to have a salty mouth (see Halcon CEO Says No More S***** Wells in Northern OH Utica), said the company will continue to sell off “non-core conventional assets” to raise an additional $300 million. Here’s the Halcon “spend less but produce more” announcement from yesterday:
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Chesapeake Energy | Energy Companies | EQT Corp | EV Energy Partners | Ohio | Statewide OH | Utica Shale

EVEP’s Mark Houser Says More Utica Acreage Sales Ahead in 2014
December 17, 2013December 17, 2013

EV Energy Partners (EVEP) recently attended the 12th Annual Wells Fargo Energy Symposium in New York City. EVEP’s CEO Mark Houser addressed the gathering and delivered a fair bit of information about EVEP’s Utica Shale drilling program. With 3/4 of a million leased acres in the Utica, when EVEP talks, people listen. You may recall that EVEP had previously put more than half a million of their Utica acres up for sale (see EVEP 3Q13: No New Land Deals to Announce). They’ve since done a small deal or two–but they retain most of their acreage. At the conference, Houser said he expects to announce more deals to sell their Utica acreage in 2014 (of course we heard the same story last year, see EV Energy Partners Utica Acreage Sale Delayed Until 2013).

Highlights of Houser’s talk at the Wells Fargo Symposium, including an update on their joint ventures with other drillers and EVEP’s view on the state of the midstream in Ohio:
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Anti-Drilling/Fossil Fuel | Athens County | Industrywide Issues | Ohio

Athens County Apologizes for Calling Anti-Drillers ‘Terrorists’
December 16, 2013December 16, 2013

Funny, unsettling, maddening–all of the above is the situation in Athens County. It is indisputable that some extreme environmentalists are terrorists–they damage property and inflict terror, which is the definition of terrorist. However, not all anti-drillers are terrorists. But some are. And so the Athens County Emergency Management Agency in selecting a pretend scenario to use for training selected an unnamed (totally fictional) anti-fracking extremist group as the focus of their training exercise.

Selecting anti-frackers for their training scenario drove the wackos in the Athens County Fracking Action Network right over the proverbial edge. They spit and sputtered and blustered that their sensibilities had been mightily offended, and so the Athens County Emergency Management Agency issued an apology to the poor babies, even though the Fracking Action Network was not the named boogeyman of the exercise–nor even hinted at…
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Crime | Industrywide Issues | Litigation | Ohio | Trumbull County | Wastewater

Youngstown Protesters Get Light Treatment in Local Court
December 16, 2013December 16, 2013

Two ~~nutjobs~~ protesters were arrested last month for blocking trucks from accessing an injection well facility in Niles (Trumbull County), Ohio–near Youngstown (see 2 Anti-Drillers Arrested at Youngstown Injection Well). We now know their names: John D. Williams, 57, of North Cleveland Avenue, Niles, and Mary C. Khumprakob, 21, of Glacier Heights Road, Youngstown.

On Friday they both pleaded no-contest, meaning “guilty,” in Niles Municipal Court, and the judge, Thomas Townley, gave them the equivalent of a love tap on the wrist–a $50 fine and $137 in court costs. Seems it’s pretty cheap to shut down a legal, legitimate business in Niles…
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Hydraulic Fracturing | Industrywide Issues | Ohio | Research | Statewide OH | Utica Shale

Very Cool Map from ODNR Showing OH Utica Wells Permitted/Drilled
December 13, 2013December 13, 2013

Last week the Ohio Dept. of Natural Resources (ODNR) released a very handy map that shows where Utica Shale drilling is happening in the state. It has different colored dots to denote where permits have been issued, where wells have been drilled, and where wells have been drilled and are now producing. Running along the right bottom corner is a tally (as of 12/6/13) for how many permits have been issued by driller, which now totals over 1,000 permits.

We really like this map, and you think you will to! Here it is:
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Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | Eureka Midstream | Industrywide Issues | Monroe County | Noble County | Ohio | Pipelines | Ritchie County | Tyler County | Utica Shale | Washington County (OH) | West Virginia

Magnum Hunter 2014 CapEx: Utica/Marcellus
December 13, 2013December 13, 2013

In our season of 2014 guidance statements, Magnum Hunter Resources has just issued theirs. And what do we find when we open this particular Christmas present? The company will spend $400 million on capital expenditure projects in 2014, and the vast majority of it will go to the Utica and Marcellus Shale. Magnum Hunter plans to lease more acreage in the Marcellus/Utica, increase drilling rigs from two to three, and build out more pipelines in the northeast too. The Ohio Utica is a particular focus for Magnum Hunter in 2014.

Here is their 2014 blueprint, including which counties in OH and WV will see drilling action from Magnum Hunter in 2014:
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Industrywide Issues | Ohio | Statewide OH | Taxation | Utica Shale

The Secret Back Room Deal to Raise OH’s Utica Shale Tax
December 12, 2013December 11, 2013

Ohio’s top two industry trade groups, the Ohio Oil and Gas Association (OOGA) and the Ohio Petroleum Council (OPC) are not “on the same page” when it comes to the Republican raise-taxes-on-Utica-drilling plan 3.0. MDN recently told you about the latest incarnation of Gov. John Kasich’s desire to “spread the wealth around” in classic socialist fashion (see OH Repubs Offer Excuses Why This Time High Utica Taxes are OK). OOGA was in on the secret dealings to craft the latest tax hike (shame on them). OPC was not and so far they’re staying neutral and not giving their support. Not yet anyway. Let’s hope it stays that way.

The story about OOGA vs OPC in raising Utica Shale taxes:
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Hydraulic Fracturing | Industrywide Issues | Ohio | Regulation | Statewide OH | Wastewater

New Drilling Regulations Coming to OH in Next 30-60 Days
December 11, 2013December 11, 2013

The Ohio Department of Natural Resources (ODNR) will soon release new rules for shale drilling in the state. The new rules will cover well pad construction, wastewater treatment and a number of other aspects of drilling. According to ODNR’s Chief of the Division of Oil and Gas Resources Management, Rick Simmers, the new rules are “good stuff.” The question is, good for who?

Some of the new rules will be released later this month and some in early January. Others will take longer. The route to becoming enforceable “law” (or “regulation” which is the same thing) is somewhat circuitous. The rules will be subject to a 30-day public comment period and will go before a special committee with members from both the OH State Senate and House before final approval and acceptance…
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Energy Companies | Ohio | PDC Energy | Statewide OH | Statewide WV | Taylor County | Utica Shale | West Virginia

PDC Energy to End Marcellus Drilling in 2014, Continue in Utica
December 11, 2013December 11, 2013

It’s the “Get out an update on what we plan to do in 2014” time of year. Doesn’t exactly roll off the tongue like “It’s the most wonderful time of the year!” End of year is not only about holidays but also about telling investors what they can expect next year–how a company plans to make money and provide a good return. Even though these statements are sometimes routine and dry, often you find interesting details when you pick through them. Like yesterday’s 2014 guidance statement from PDC Energy, a driller in both the Marcellus and Utica Shale.

In a low-key but to us surprising announcement, PDC’s statement says they will suspend drilling in the Marcellus in 2014. They plan to finish drilling four wells already under way in Taylor County, WV and then not drill any more Marcellus wells, but instead concentrate their time and effort on the Utica Shale and on Colorado’s Wattenberg Field. For those interested in Marcellus and Utica drilling, reading these updates is anything but dry! Take time to look over PDC’s plans for 2014, particularly their plans for the Utica…
Read More “PDC Energy to End Marcellus Drilling in 2014, Continue in Utica”
Energy Companies | Halcon Resources | Industrywide Issues | Lease & Royalty Payments | Ohio | Pipelines | Trumbull County

Halcon Proposes 14-Mile Pipeline from Vienna to Lordstown, OH
December 11, 2013December 11, 2013

Halcon Resources has been pretty tightfisted when it comes to spending money on leases for drilling–and now, perhaps–for pipelines as well. More than a year ago MDN told you about a landowner group that had formed in the Lordstown, OH area that hoped to negotiate new leases. The landowners were bound under 20-50 year-old leases purchased by Halcon that never envisioned shale drilling. Halcon said they wanted to work with landowners but stopped short of agreeing to renegotiate the leases (see Halcon Resources Responds to Lordstown, OH Landowners Group).

Halcon not only drills wells, they also have a midstream (pipeline) division to connect them. Halcon even stores and ships oil and gas–they’re building a $70 million storage and railroad transloading facility in Lordstown (see Halcon Resources Plans $70M Oil Terminal in Lordstown, OH). As part of the new storage facility, Halcon wants to run a 14-mile pipeline from Vienna to Lordstown. The problem, according to some communities along the route, is that Halcon doesn’t want to pay all that much to install a permanent pipeline…
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Energy Companies | Gulfport Energy | Ohio | Statewide OH | Utica Shale

Gulfport Energy Beefs Up Management Team for OH Utica
December 11, 2013December 11, 2013

Gulfport Energy may be based in Oklahoma City, OK, but their heart (and most of their focus) is in Ohio–in the Utica Shale. Gulfport is one of the premier Utica drillers with some of the most impressive wells drilled to date (see Gulfport’s New Record-Breaking Well in Belmont Cnty – 30.3 Mmcf/d). In keeping with their laser focus on the Utica, Gulfport announced yesterday a bunch of new hires and promotions–all of them focused on the Utica Shale.

At the top of the hit parade is a brand new Chief Operating Officer (COO) for the Utica–Ross Kirtley–who was previously a VP with Sandridge Energy. Robert Jones was appointed VP of drilling for Ohio, Mark Malone was appointed VP of operations for Ohio, and Ty Peck was appointed Managing Director of Midstream Operations. Certainly seems like a pretty major restructuring on the part of Gulfport as they prepare to do more great things in the OH Utica. Here’s the press release with details…
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Belmont County | Lease & Royalty Payments | Ohio | Utica Shale

Utica Shale Lease May Pull OH Volunteer Fire Dept from Bankruptcy
December 10, 2013December 10, 2013

We’re not sure of the circumstances that led the Neffs (Belmont County), OH Volunteer Fire Department to go more than $1 million in the hole–but that’s where they are. The miracle that may lift them out of bankruptcy and put them back on firm financial footing is the Utica Shale. Specifically, the opportunity to lease fire department-owned land for Utica Shale drilling.

The interesting (to MDN) aspect of this story is the very generous terms Neffs VFD is getting for the lease of 56.4 acres…
Read More “Utica Shale Lease May Pull OH Volunteer Fire Dept from Bankruptcy”
Industrywide Issues | Ohio | Statewide OH | Taxation | Utica Shale

OH Repubs Offer Excuses Why This Time High Utica Taxes are OK
December 10, 2013December 10, 2013

Speaker of the Ohio House William G. Batchelder (Republican-Medina), Speaker Pro Tempore Matt Huffman (Republican-Lima), and other members of the Ohio House Republican Caucus offered their pathetic excuses on why this time it’s a-OK to steal money from Ohio landowners and drilling companies and give it to other residents of Ohio–in the form of an income tax break. Apparently there’s lack of spine to do the right thing and reduce spending in Ohio (although that particular disease is not endemic to Ohio).

Here’s the Republican so-called leadership’s bland, generic ~~excuses~~ statement about why it’s OK to raise taxes on drilling this time:
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Belmont County | Energy Companies | Lease & Royalty Payments | Ohio | Rice Energy | Utica Shale

Belmont County, OH Waiting for $3M Lease Check from Rice Energy
December 10, 2013December 10, 2013

In early October MDN told you Rice Energy had cut a deal with Belmont County to pay the county a $7,500 per acre signing bonus, more than the $5,900 per acre it promised to private landowners in the area (see Rice Pays Belmont County Higher Signing Bonus than Landowners). The lower per acre no doubt rankled some landowners–but many of them already have their money. So far, the county does not.

When will Belmont County get its $3 million check from Rice Energy? Because they really need it…
Read More “Belmont County, OH Waiting for $3M Lease Check from Rice Energy”