Ohio

Carroll County | Economic Impact | Hydraulic Fracturing | Industrywide Issues | Ohio | Roads | Utica Shale

Carroll County, OH Transformed by Utica Shale Drilling
September 18, 2013September 18, 2013

What’s it like when drilling comes to town? Who better to tell us than someone from “the epicenter” of drilling in eastern Ohio? Amy Rutledge is director of the Carroll County Chamber of Commerce. She spoke this week at an energy summit in Columbus sponsored by America’s Natural Gas Alliance.

Startling fact #1: According to Rutledge, Carroll County has fewer than 30,000 people living it–but when drilling came to town, 200 property owners in Carroll became instant millionaires from the bonus checks they received. Startling fact #2: Drillers have (so far) paid over $40 million to rebuild Carroll County’s roadways–that’s 80 years worth of road work completed in two years for a county with an annual budget of just $500,000 allocated for roads…
Read More “Carroll County, OH Transformed by Utica Shale Drilling”
Energy Companies | Gulfport Energy | Harrison County | Ohio | Utica Shale

Newest Gulfport Utica Wells Disappoint with Methane Production
September 17, 2013September 17, 2013

Last week Gulfport Energy prepared the markets (i.e. investors) to receive some “bad news”–lower-than-expected third quarter production numbers for their Utica Shale wells, partially due to lack of a pipeline hookup to a single well (see Delayed Pipeline to Single Gulfport Utica Well Impacts Market). Today Gulfport released production numbers for three Utica wells. To our eye, it seems lack of infrastructure is not the only reason Gulfport lowered expectations for 3Q13 production. The newest wells coming online for Gulfport are not producing anywhere near the amount of methane their previously announced monster wells produce. For example, the Stutzman well in Belmont County well produced an initial 21 million cubic feet of natural gas per day (see Mind-blowing Earnings from a Single Utica Shale Well). That’s to be expected. Not every well you drill is a home run.

Even though Gulfport’s newest wells are under-performers vis a vis methane (2.0-9.7 million cubic feet per day), they produce more than enough condensate and natural gas liquids to make up for it. Interestingly, all three of Gulfport’s newest wells are in Harrison County, OH…
Read More “Newest Gulfport Utica Wells Disappoint with Methane Production”
Industrywide Issues | Ohio | Regulation | Statewide OH | Utica Shale

Ohio Moves to Quarterly Production Reports Starting Jan 2014
September 16, 2013September 16, 2013

Investors and those who watch the Utica Shale industry, including MDN, have long called on the Ohio Dept. of Natural Resources (ODNR) to abandon annual reporting of gas and oil production and instead move to a more frequent reporting system–quarterly would be about right. Late last year MDN prematurely told you quarterly reporting was on the way (see [Corrected] ODNR Moving to Quarterly Production Numbers for O&G). The state legislature took up the measure again earlier this year and made quarterly reporting part of the language in the 2013 Ohio budget bill (see Ohio Moves One Step Closer to Quarterly O&G Production Reports). The budget passed with quarterly reporting language intact.

Last Thursday, director of the ODNR, James Zehringer, along with the chief of the division of oil and gas operations for the ODNR, Rick Simmers, spoke at the Guernsey County Energy Coalition meeting. Simmers said starting in January 2014, Ohio drillers will be required to file quarterly production reports…
Read More “Ohio Moves to Quarterly Production Reports Starting Jan 2014”
Industrywide Issues | Ohio | Research | Statewide OH | Utica Shale

Benesch Law’s Useful Quarterly Report/Overview on Utica Shale
September 16, 2013September 16, 2013

How about a handy quarterly snapshot of the Utica Shale and where various initiatives (like infrastructure investments) stand? The attorneys and researchers at Benesch Law produce just such a report every three months. The latest edition is now out. One statistic of note to give you a feel for the enormous scope and potential of the Utica Shale in Ohio: There are 133 pipeline projects–from local gathering lines to interstate natural gas liquids pipelines–either now being built or on the drawing board. It represents billions of dollars of investment in the Utica.

Below is the full Benesch Shale Industry Report – Quarterly Summary Q2 2013. Well worth the few minutes it takes to read…
Read More “Benesch Law’s Useful Quarterly Report/Overview on Utica Shale”
CONSOL Energy | Energy Companies | Ohio | Statewide OH | Utica Shale

OOGA Pegs Utica Shale “Sweet Spot” at YOUNG 2013
September 13, 2013

An Ohio Oil and Gas Association (OOGA) representative told attendees at the YOUNG 2013 conference held this week in Youngstown that counties in southeastern Ohio are the “sweet spot” of the Utica Shale play because the pressure there is higher and because the shale layer includes an abundance of natural gas liquids. However, another speaker–an executive from CONSOL Energy–said counties in northeastern Ohio will continue to see successful drilling too. So don’t despair!

Executive VP of OOGA, Tom Stewart, used a map to detail the location of a “strip of highly pressurized shale containing natural gas liquids.” While we don’t have a copy of the map, we do have his identification of precisely which counties he says are in that strip–the Utica Shale sweet spot…
Read More “OOGA Pegs Utica Shale “Sweet Spot” at YOUNG 2013″
Hydraulic Fracturing | Industrywide Issues | Landfills | Ohio | Statewide OH | Supply Chain

OH Company Turns Drill Cuttings into Clean Fill Dirt in 24 Hours
September 13, 2013September 13, 2013

An intriguing supply chain story that caught MDN’s eye: An Ohio company has figured out a way to speed up the work of Mother Nature in decomposing the nasty stuff that contaminates “drill cuttings”–the rock and soil left over from drilling natural gas or oil wells. Drill cuttings are typically hauled off to a landfill where it takes Mother Nature hundreds (sometimes thousands) of years to fully break down the chemicals (naturally and not-naturally occurring) in drill cuttings.

Ohio Soil Recycling greatly speeds up the natural process and turns drill cuttings into soil suitable for use as “clean fill dirt” in as little as 24 hours!…
Read More “OH Company Turns Drill Cuttings into Clean Fill Dirt in 24 Hours”
Energy Services | GreenHunter Resources | Industrywide Issues | Ohio | Washington County (OH) | Wastewater

GreenHunter Begins Operation of New OH Wastewater Injection Well
September 12, 2013September 12, 2013

GreenHunter Water announced today they’ve started operating a brand new injection well at their Newport (Washington County), Ohio location–just a stone’s throw from the Ohio River (where they dearly hope to be able to barge wastewater soon). GreenHunter says the new injection well, called a “salt water disposal” or SWD facility, has the potential to pump 1,200 barrels per day of frack wastewater and brine…
Read More “GreenHunter Begins Operation of New OH Wastewater Injection Well”
Crime | Industrywide Issues | Litigation | Mahoning County | Ohio | Wastewater

Harch Environmental Gets $100K Fine for OH Wastewater Dumping
September 12, 2013September 12, 2013

In early June, the Ohio Dept. of Environmental Resources (ODNR) “temporarily” shut down Harch Environment Services after it was caught illegally dumping frack wastewater on the ground (see Another OH Company Shut Down for Illegal Frack Wastewater Dumping). The ODNR investigated and has just assessed a $100,000 fine against Harch. As part of their action, ODNR is requiring Harch to cease wastewater hauling for 30 days–although we were under the impression they had already ceased as of early June. Plus, ODNR says it reserves the right to bring more charges, including criminal charges, against the company in the future.

It does appear, however, that Harch (unlike D&L Energy) will be permitted to resume operations in Ohio once again…
Read More “Harch Environmental Gets $100K Fine for OH Wastewater Dumping”
Belmont County | Energy Companies | Gulfport Energy | Ohio | Utica Shale

Delayed Pipeline to Single Gulfport Utica Well Impacts Market
September 11, 2013September 11, 2013

Can delays in building a pipeline to a single Utica Shale well be enough to affect the stock price of the driller? You bet it can. Analysts from Sterne Agee issued revised estimates of how much production Gulfport Energy will see in the third quarter of this year based on Gulfport’s pre-announcement to the markets yesterday that they’ve had to lower their own estimates of production in 3Q13–because of a delay in hooking up the Irons 1-4H Utica Shale well in Belmont County, OH.

To be fair, Gulfport’s stock price only slipped a little bit on yesterday’s news (down less than 1/2 of one percent), and Sterne Agee remains bullish on the stock. Still, it’s incredible to us that the scheduling of a pipeline hookup for a single well can create such an impact on a multi-billion dollar energy company…
Read More “Delayed Pipeline to Single Gulfport Utica Well Impacts Market”
Accidents | Belmont County | Energy Companies | Gulfport Energy | Harrison County | Industrywide Issues | Ohio | Statewide OH

Gulfport Pays $250K Fine for Leaky Pad Liners at 7 OH Utica Sites
September 11, 2013September 11, 2013

The Ohio Dept. of Natural Resources (ODNR) investigated Gulfport’s shale drilling sites in eastern Ohio after an inspector found ground contamination at a Harrison County well. ODNR found evidence of brine–naturally occurring underground water that comes to the surface after drilling is done–escaping from (leaking from) the well–which is not supposed to happen. Each well pad has a big rubber pad liner that’s supposed to catch anything that happens to leak. Gulfport’s pad liners did not do the job.

In addition to a $250,000 fine, Gulfport has to rebuild each of the seven drill pads where there are defective liners before they can continue drilling at those locations…
Read More “Gulfport Pays $250K Fine for Leaky Pad Liners at 7 OH Utica Sites”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Mahoning County | Ohio | Regulation

Niles, OH Considers Vote to Rescind Ill-Advised Frack Ban
September 11, 2013September 11, 2013

When you rush to do a dumb thing, you later regret it. City council members in Niles, OH have learned that hard lesson after voting last month to implement a ban on shale drilling. In their haste to “protect residents” from drilling, they didn’t bother to read the fine print of the bill they passed (no doubt drafted by a helpful anti-driller). In addition to banning shale drilling in the city–something that wouldn’t happen anyway–the bill also bans businesses that operate in the city and the city itself from doing business with the drilling industry. Oops. The city does a lot of business with the drilling industry.

Now city council members are planning a vote to rescind the ban they just passed last month…
Read More “Niles, OH Considers Vote to Rescind Ill-Advised Frack Ban”
Antero Resources | CONSOL Energy | Energy Companies | Ohio | PDC Energy | Statewide OH

Eastern OH Shale Drillers Donate to Local Schools
September 11, 2013September 11, 2013

Several high schools in eastern Ohio have received a surprise gift: money from drillers. Antero Resources recently donated $2,500 to each of five high schools for use in their athletics programs. PDC Energy recently donated $5,000 to the Wolf Creek school. And CONSOL Energy is running a contest for select Ohio schools with a $10,000 first prize.

All of these efforts come under the umbrella of what we call “the industry gives back”…
Read More “Eastern OH Shale Drillers Donate to Local Schools”
Ohio | Statewide OH | Summit County | Utica Shale

Ohio Utica Shale Blog Takes Top Honor in Statewide Contest
September 11, 2013September 11, 2013

A huge congratulations are in order for Bob Downing (whom we have met and like a great deal) and Jim Mackinnon (whom we’ve not met but are sure we would like) for winning the contest as the No. 1 newsblog in Ohio for 2012 for their Ohio Utica Shale blog (published by the Akron Beacon Journal). MDN editor Jim Willis reads a lot–every day–and one of his favorite “must read” websites (that we often quote from) is the Ohio Utica Shale blog/Akron Beacon Journal.

The award is well-deserved and we can’t think of a better pair who deserve the recognition from their peers in the Society of Professional Journalists, the organization making the award. So, “Way to go, guys!”…
Read More “Ohio Utica Shale Blog Takes Top Honor in Statewide Contest”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Mahoning County | Ohio | Regulation

Economic Suicide Attempt #2: Youngstown to Vote Again on Frack Ban
September 9, 2013September 9, 2013

In May 2013, the citizens of Youngstown, OH wisely chose not to commit economic suicide by voting against a ban on fracking–a ban that not only ban fracking but also outlaw the business activities of some companies that support the drilling industry (see Youngstown, OH Votes Down Fracking Ban Amendment). The people had their say, and they said 57% to 43% “we’ll take fracking and the jobs that go with it, thank you very much.” But you have to hand it to irrational anti-drilling zealots–they don’t give up. They are bound and determined to commit economic suicide, and now, they may have just been handed the equivalent of a loaded gun with permission to do it…
Read More “Economic Suicide Attempt #2: Youngstown to Vote Again on Frack Ban”
Energy Companies | Halcon Resources | Industrywide Issues | Mahoning County | Ohio | Seismic Testing

Halcon Resources to Begin Seismic Testing in Mahoning County, OH
September 9, 2013September 9, 2013

Let the thumping (in Mahoning County, OH) begin. Mahoning County commissioners have approved a one-year road use agreement with Halcon Resources that allows them to perform seismic testing along county and town roadways. Halcon will pay $600 per mile, post a $100,000 bond (for the county) and a $50,000 bond (for each of six townships) where they will test. Halcon will also spend some major money repairing roads even before they begin testing…
Read More “Halcon Resources to Begin Seismic Testing in Mahoning County, OH”
Energy Companies | Halcon Resources | Industrywide Issues | Ohio | Pipelines | Regulation | Trumbull County

US Army Corp Engineers OKs Halcon Pipeline in Trumbull County, OH
September 9, 2013September 9, 2013

Good news for Halcon Field Services: The Pittsburgh District of the U.S. Army Corps of Engineers has cleared the way for Halcon to horizontally drill and install a natural gas gathering pipeline beneath federal land in Trumbull County, Ohio…
Read More “US Army Corp Engineers OKs Halcon Pipeline in Trumbull County, OH”