Ohio

Belmont County | Energy Companies | Lease & Royalty Payments | Ohio | Rice Energy | Utica Shale

Rice Pays Belmont County Higher Signing Bonus than Landowners
October 2, 2013October 2, 2013

Rice Drilling is betting big on Belmont County, OH. County commissioners recently signed a sweet deal with Rice Drilling for 406 acres of county-owned land. The lease terms were $7,500 per acre signing bonus and a 20% royalty. That delivers just over $3 million to the county coffers, plus a lot more when the gas begins to flow.

The county deal is, however, sweeter than other recent contracts signed by Rice in the area–contracts between Rice and more than 1,000 landowners in Belmont County. Those leases resulted in payments from Rice for more than $236 million! But area landowners got “just” $5,900 per acre from Rice for a signing bonus…
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American Energy Utica | Energy Companies | Guernsey County | Harrison County | Ohio | Tuscarawas County | Utica Shale

McClendon’s Utica Company Does JV with OH Driller, Drilling Soon
October 2, 2013October 2, 2013

Yesterday MDN brought you the news that former Chesapeake Energy CEO Aubrey McClendon had started a second company specifically created to target the Utica Shale (see Aubrey McClendon Forms Utica Company, Gets Major Investor). In true Aubrey “wheeling and dealing” fashion, his new company, called American Energy Utica, is already forming joint ventures with other companies in the Utica Shale. One of those companies is Red Hill Development, an independent oil & gas driller located in Dover (Tuscawaras County), OH.

Red Hill Development is tickled pink to be working with McClendon and says the partnership will be an ongoing venture “for many years to come.” According to Red Hill, the new joint venture is already applying for permits and will begin drilling by the end of this year. The focus of their drilling efforts? Guernsey and Harrison counties…
Read More “McClendon’s Utica Company Does JV with OH Driller, Drilling Soon”
Chesapeake Energy | Columbiana County | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Mahoning County | Ohio | Regulation

Salem, OH Votes Down Ordinance to Restrict Drilling in City
October 2, 2013October 2, 2013

In July 2012, the city of Salem, OH signed a lease with Chesapeake Energy to allow drilling on 381 acres of city-owned land (land outside city limits). Terms of the lease: $7,000 signing bonus and 20% royalties (see Salem, OH to Sign Lease Deal with Chesapeake for $7K+20%). It probably wouldn’t send the right signal to turn around and pass a law that would prevent drilling inside city limits after signing a lease and accepting millions of dollars. Yet, such a law was under serious consideration by Salem City Council.

Tuesday night, City Council wisely chose to vote down a proposed zoning amendment that would have prevented drilling inside city limits…
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Energy Companies | Hess | Industrywide Issues | Jefferson County (OH) | Lease & Royalty Payments | Litigation | Ohio | Statewide OH

Hess Loses OH Court Case, May Owe Big Bucks to 300 Landowners
October 2, 2013October 2, 2013

Hess has just lost a court case in Ohio that may end up costing the company dearly. Hess had purchased leases in eastern Ohio from other companies. The original leases date to 2006-2008 and in many cases the landowners were paid as little as $10 per acre for a signing bonus–absolutely peanuts compared to today’s rates for $5K or more per acre. A Jefferson County landowner sued Hess to get out of his lease agreement because the company had not drilled on his property. Hess argued provisions in the lease let them extend the lease by paying a nominal extra fee.

Hess lost, and now will have to pay that landowner (and by extension around 300 other landowners) big re-signing bonuses or risk losing the land…
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American Energy Partners | American Energy Utica | EMG | Energy Companies | Energy Services | Ohio | Statewide OH | Utica Shale

Aubrey McClendon Forms Utica Company, Gets Major Investor
October 1, 2013October 1, 2013

As MDN has said before and will no doubt say again, we believe Chesapeake Energy will rue the day they fired its founder, Aubrey McClendon. Just a few short months after being tossed out the door by board member and corporate raider Carl Icahn, McClendon founded a new company and was already active in Ohio’s Utica Shale (see He’s Baaaack! Aubrey McClendon is Back in OH Shale Country). His new company, with offices about a mile from Chesapeake’s HQ in Oklahoma City, is called American Energy Partners.

Word has leaked once again from “inside sources” that McClendon has now founded a second company, this one specifically set up to target the Utica Shale. The new company is called American Energy Utica and is being backed with big money by a prominent player in the energy space…
Read More “Aubrey McClendon Forms Utica Company, Gets Major Investor”
Energy Companies | EV Energy Partners | Ohio | Statewide OH | Utica Shale

EVEP CEO Mark Houser Discusses Utica Shale Strategy, Future
October 1, 2013October 1, 2013

Mark Houser, president and CEO of EV Energy Partners, presented at the IPAA Oil and Gas Investment Symposium yesterday in San Francisco. Below are portions of his talk dealing with EVEP’s Utica Shale assets and strategy. Also below is the PowerPoint presentation he used, which contains some great maps and charts dealing with the Utica. In particular take a look at slides #8 through #18. Don’t miss the close-up pictures of UEO’s Kensington and Harrison plants.

If we could “net net” summarize what Houser said about the Utica and the role it will play in the company’s future, it’s in line with our previous observations, which is…
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Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | Eureka Midstream | Ohio | Pennsylvania | Statewide OH | Statewide PA

Magnum Hunter CEO Gary Evans Charts a Marcellus/Utica Future
October 1, 2013October 1, 2013

Gary Evans, CEO of Magnum Hunter, presented at the IPAA Oil and Gas Investment Symposium yesterday in San Francisco. He did a deep dive into MH’s Marcellus and Utica Shale operations and plans moving forward. Evans said the company now owns 490,000 net acres in the northeast (Appalachia) with 81,000 net acres in the Marcellus Shale and 80,000 net acres in the Utica Shale. They have investments and operations in both drilling and in the midstream (pipelines) segment via subsidiary Eureka Hunter.

Below are Evans’ comments from yesterday along with a PowerPoint presentation which we believe is likely the one he used (or very similar to the one he used). Slides #13-#27 cover the Marcellus and Utica–well worth your time to review, some great maps and charts. Also included, a nifty picture of MH’s new robotic drilling rig (slide #26)…
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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Ohio | Regulation | Statewide OH

OH Antis Force Change in Chemical Reporting, Everyone Less Safe
September 30, 2013September 30, 2013

Ohio’s anti-drillers, in their zeal to needle the drilling industry, have just put everyone who lives near active drill sites at more risk than they once were. Following state law, drillers (until now) have filed a list of the chemicals they store and use for fracking with the Ohio Department of Environmental Resources (ODNR). Local first responders–police and firefighters–could then electronically retrieve that information from the ODNR website for any given well if an incident occurred, like a fire. But anti-drillers asked the federal government to intervene and that has now happened. The feds have said drillers must file paperwork listing the chemicals stored and used directly with local counties and municipalities.

Now, firefighters will have to haul out a paper file from some filing cabinet and rifle through it if there’s any kind of emergency–instead of using the much faster online version from ODNR. Congratulations Ohio anti-drillers! You’ve just made everyone in Ohio more unsafe…
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Anti-Drilling/Fossil Fuel | Energy Services | Ethane | Industrywide Issues | Medina County | NGLs | Ohio | Pipelines | Sunoco Logistics

Handful of Medina, OH Anti-Drillers Oppose Ethane Pipeline
September 30, 2013September 30, 2013

A handful of residents in Medina, OH are opposing an update to a pumping station that sits on the Mariner West pipeline. Sunoco Logistics owns and operates the pipeline which they are converting to handle ethane, a natural gas liquid. The plan is to pipe ethane from the Marcellus and Utica Shale region all the way to Sarnia (Ontario), Canada to an ethane cracker plant located there.

Local anti-drillers in Medina don’t like fracking (even though it’s perfectly safe) so they’ve decided to focus on stopping the pipeline as a deterrent to more fracking…
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Arrowhead Utica Pipelines | Columbiana County | Energy Companies | Energy Services | Hilcorp Energy | Industrywide Issues | Ohio | Trucking | Utica Shale

Utica Shale Transfer Facility Gets Road Upgrade
September 30, 2013September 30, 2013

In February, MDN brought you the news that the Columbiana County Port Authority would spend nearly $1 million to improve a stretch of road leading to the Wellsville industrial park where Arrowhead Utica Pipelines, a Hilcorp subsidiary, is building a shale gas transfer facility (see Hilcorp Subsidiary Leases Property for Utica Transfer Facility). Looks like it won’t take anywhere near that much money to get the project done.

Last Friday the Port Authority voted to accept a bid and move forward to have the work done–at a cost of $526,000…
Read More “Utica Shale Transfer Facility Gets Road Upgrade”
Crude Oil | Economic Impact | Industrywide Issues | Jobs | NGLs | Ohio | Statewide OH | Utica Shale

U.S. Chamber’s Chris Guith Talks About Ohio Utica Shale
September 30, 2013September 30, 2013

Chris Guith is vice president for policy at the U.S. Chamber of Commerce’s Institute for 21st Century Energy. He’s also very familiar with the development of Ohio’s Utica Shale play. In a recent interview, Guith had some interesting comments on Ohio’s prospects for oil, NGL pipelines, industry jobs, regulations and more…
Read More “U.S. Chamber’s Chris Guith Talks About Ohio Utica Shale”
Industrywide Issues | Jobs | Licking County | Ohio

Pipe Welders Needed – Ohio’s C-TEC Will Train Them
September 27, 2013September 27, 2013

Want a good paying, hands-on job in the Marcellus or Utica Shale? Try welding. The Career and Technology Education Centers (C-TEC) in Licking County, OH recently launched a new 10-month-long structural and pipe welding fabrication course. Students who are willing to work hard will get an average $45/hour after they graduate…
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Ashtabula County | Ohio | Utica Shale

Utica Shale Gas-to-Liquids Plant Planned for Ashtabula, OH
September 24, 2013September 23, 2013

Converting Marcellus and Utica Shale natural gas into liquids like solvents, lubricants and waxes–even diesel fuel–is starting to catch on. MDN previously told you about a “gas-to-liquids” (GTL) plant planned for the Altoona, PA area that will convert natural gas to diesel fuel (see Altoona Area Getting $200M Marcellus Gas-to-Liquids Plant). A chemical manufacturer in western PA is pursuing a GTL plant to create their own “feedstock”–raw chemical materials they need to produce other specialty chemicals (see Chemical Manufacturer to Build Gas-to-Liquids Plant in PA).

Now, word of the first GTL plant we’ve heard of planned in Ohio. The Ohio plant, if built, will also produce specialty chemicals…
Read More “Utica Shale Gas-to-Liquids Plant Planned for Ashtabula, OH”
American Water Management | Energy Services | Industrywide Issues | Ohio | Trumbull County | Wastewater

New OH Injection Well to be Drilled <8 Miles from Earthquake Site
September 23, 2013September 23, 2013

American Water Management Services (of Howland, OH) is certainly braver than we are. In the “new couple months” the company plans to drill a new frack wastewater injection well in Weathersfield, OH. Where is Weathersfield? Close to (under 8 miles away from) the now shuttered injection well operated by D&L Energy–the well that caused earthquakes in the Youngstown, OH area in December 2011 (see ODNR Finds Youngstown Injection Well Caused Earthquakes).

Ohio Dept. of Natural Resources (ODNR) says the new injection well targets a different rock formation than the D&L well that caused the earthquakes around Youngstown. The ODNR has installed seismic monitoring equipment and is watching this new well very closely to ensure there are no tremors being caused. Still, you KNOW if there’s the least little tremor around Youngstown from now until eternity, everyone will blame this new well even if it’s not the cause…
Read More “New OH Injection Well to be Drilled <8 Miles from Earthquake Site”
Athens County | Ohio | Utica Shale

Will Utica Shale Drilling Come to Athens County, OH Soon?
September 20, 2013

From time to time Athens County, OH pops up on the radar screen–mostly related to a misguided attempt by a few anti-drillers to ban fracking (see last month’s article Athens Election Board Votes Against Anti-Frack Ballot Measure).

However, there has been no Utica drilling in Athens County so far. Is that about to change? The Athens News says drilling is inching steadily closer. They take a close look at the prospects (and evidence) that drilling may come to this southeastern Ohio county–soon…
Read More “Will Utica Shale Drilling Come to Athens County, OH Soon?”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Ohio | Regulation | Trumbull County

Niles, OH Votes to Lift Frack Ban One Month After Passing It
September 20, 2013September 20, 2013

Well that didn’t last long. One month after Niles, OH City Council voted to spite its face by cutting it’s nose off (i.e., voted to ban fracking), they’ve voted to lift the ban. Why? Because the ban language also bans businesses from selling to the drilling industry–including the city itself (situated in Trumbull County), which sells a lot of water for fracking (see Niles, OH Considers Vote to Rescind Ill-Advised Frack Ban for background).

On Wednesday, Niles City Council voted to lift the ban. Congratulations on wising up!…
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