Ohio

Lease & Royalty Payments | Muskingum County | Ohio | Utica Shale

Risky Business – OH Landowner Group Wants to Lease Sans Lawyer
July 26, 2013July 26, 2013

A Utica Shale landowner group in Muskingum County, OH with 90,000 acres available for lease has embarked on a risky venture. They want to strike a deal on behalf of their members to lease property for $5,000 per acre and 20% royalties. Certainly no problem with that–sounds like a fair deal in a “wet gas” area like Muskingum County, OH. The group is asking the Muskingum County Commissioners to not shop county land below that asking price (something that happened in neighboring Coshocton County) as that would undercut their bargaining power. We also have no problem with that–sounds like a smart strategy.

However, the landowner group wants to cut a deal with a driller without the help of attorneys. Attorneys typically take a small per-acre fee in return for their legal guidance on very complicated oil and gas drilling contract law. You can be sure the driller drawing up a lease agreement has an army of attorneys working on it–so why would you willingly disadvantage yourself by not using one too? It comes down to money…
Read More “Risky Business – OH Landowner Group Wants to Lease Sans Lawyer”
Energy Companies | Hilcorp Energy | Mahoning County | Ohio | Utica Shale

Hilcorp Sets Sights on More Utica Drilling in Mahoning County, OH
July 26, 2013July 26, 2013

A quick update on Hilcorp’s Utica Shale drilling program and where they’ll next, courtesy the Youngstown Business Journal:
Read More “Hilcorp Sets Sights on More Utica Drilling in Mahoning County, OH”
Accidents | Energy Services | Enterprise Products Partners | Industrywide Issues | Muskingum County | Ohio | Pipelines

Pipeline Construction Run-Off Hits Local Creek, Muskingum River
July 25, 2013July 25, 2013

A minor incident–but an incident nonetheless. As part of digging and drilling to lay pipeline for the ATEX Express ethane pipeline that will run from western PA through OH and all the way to the Gulf Coast, heavy rainwater has been washing through the dug up dirt and rock at one of the construction locations in eastern Ohio, running off into the Wakatomika Creek (Muskingum County), which in turn empties into the Muskingum River. The rainwater/mud mix is not toxic, but it does have the potential to affect fish and aquatic life along the creek and the river…
Read More “Pipeline Construction Run-Off Hits Local Creek, Muskingum River”
Ohio | Statewide OH | Utica Shale

OH Passes 800 Utica Shale Permits, 117 Wells Now Producing
July 25, 2013July 25, 2013

Ohio has passed the 800-mark for Utica Shale permits. As of last week, 812 Utica Shale permits have been issued. Of that number, 390 wells have been completed and 117 are now in production. The number of drilling rigs operating in Ohio continues to go up and now stands at 36.

Here’s the Ohio Dept. of Natural Resources report showing where Utica Shale permits were issued last week (by town and county), and to which drillers:
Read More “OH Passes 800 Utica Shale Permits, 117 Wells Now Producing”
Belmont County | Energy Companies | Gulfport Energy | Ohio | Statewide OH | Utica Shale

Gulfport 2Q13: Oil Production Down, NatGas & NGLs Way Up
July 24, 2013

Gulfport Energy issued its second quarter 2013 operations update yesterday. Among the highlights: The company produced less oil than a year ago after selling off its Permian wells and acreage to Diamondback, but they saw a dramatic increase in production of natural gas and natural gas liquids from a year ago. Gulfport’s natgas production was up 6.5X and liquids production more than doubled–up 2.3X from last year. The company also said they increased their Utica Shale acreage by an additional 8,000 acres–they now own 145,000 leased Utica acres.

Also in the update are production numbers for a series of new wells recently brought online–the McCort wells in Belmont County (Somerset Township), OH. The full 2Q13 Gulfport update:
Read More “Gulfport 2Q13: Oil Production Down, NatGas & NGLs Way Up”
Lease & Royalty Payments | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

New Report Shows Permits, Wells Drilled & More Near Your Address
July 23, 2013July 23, 2013

As you may know, MDN editor Jim Willis has been partnering with ShaleNavigator founder Ed Camp for more than a year now to bring you the three volume Marcellus and Utica Shale Databook series. The 2012 series was a huge success, and the new 2013 series (Volume 1 is out now) is shaping up to be the same. The Databook is a series of maps created using the excellent ShaleNavigator service to display where (and to whom) permits have been issued, county by county, throughout the Marcellus and Utica Shale region. However, the ShaleNavigator itself service is far more than just permits, displaying multiple “layers” of information users can turn on and off to display lease offers, pipeline locations, compressor station locations and much more (24 different layers in all).

Ed has just released an exciting and important new feature for the ShaleNavigator service: Subscribers may now produce reports displaying shale oil and gas wells, well permits, pipelines, and lease offer information near a specific address “on the fly.” Type in any address (your address maybe?), wait a few seconds, and get a PDF report detailing all of the permits issued, wells drilled, pipelines and lease offers within both a 2 mile radius and within a 5 mile radius of that address (see an example report embedded below). Folks, this is beyond cool!…
Read More “New Report Shows Permits, Wells Drilled & More Near Your Address”
Energy Companies | Halcon Resources | Ohio | Trumbull County | Utica Shale

Halcon Resources Plans $70M Oil Terminal in Lordstown, OH
July 22, 2013July 22, 2013

Last November, MDN told you about a new landowner group in Lordstown, OH that had formed to negotiate with Halcon Resources who had recently purchased 20-50 year-old leases in the area, hoping to drill Utica wells on those properties (see Halcon Resources Responds to Lordstown, OH Landowners Group). The landowners, of course, want to renegotiate the leases to allow Utica drilling with updated safeguards and protections–horizontal drilling was not envisioned when the original leases were signed all those years ago. Halcon is willing to grant them an increase in royalty payments, but essentially told the landowners to sign the revised lease they were circulating or risk not getting a dime. The tone was very much take it or leave it.

MDN has no word on the status of those talks, but we do notice two things: Halcon has, since last November, applied for and received four Utica Shale drilling permits in Trumbull County; and, Halcon is planning to build a $70 million oil storage and rail-loading terminal in Lordstown…
Read More “Halcon Resources Plans $70M Oil Terminal in Lordstown, OH”
Antero Resources | Energy Companies | Guernsey County | Noble County | Ohio | Utica Shale

MWCD to Sell 138M Gallons of Seneca Lake Water for Utica Drilling
July 22, 2013July 22, 2013

Last February, the Muskingum Watershed Conservancy District (MWCD) signed a lease with Antero Resources to lease 6,700 acres under and around Seneca Lake. The MWCD got a $40.3 million signing bonus, plus 20% royalties (see Muskingum Watershed District Signs with Antero for $40.3M Bonus). Last week, the MWCD voted to sell up to 138 million gallons of water from Seneca Lake to Antero so they can use it in their drilling and fracking operations, making another potential $828,000.

We’ll lease you the land and sell you the water to drill it too. Cool…
Read More “MWCD to Sell 138M Gallons of Seneca Lake Water for Utica Drilling”
Industrywide Issues | Ohio | Statewide OH | Taxation

Cincy Paper Targets OH Republicans for Not Supporting High Tax
July 18, 2013July 18, 2013

Retribution: Time to make the brave Republicans in the Ohio House pay for not supporting the socialist concept of “spreading the wealth around” to people who didn’t earn it by supporting a high severance tax on Utica Shale drilling. A new hit piece in the Cincinnati Enquirer tries to do just that–by proclaiming that “big oil & gas” has “pumped” a (measly) $660,000 in campaign contributions to Ohio House legislators, most of them Republican. Implication: They were bought off.

What utter folly…
Read More “Cincy Paper Targets OH Republicans for Not Supporting High Tax”
Energy Services | Harrison County | Industrywide Issues | Ohio | Somerset Regional Water | Wastewater

SRWR to Open New Frack Wastewater Plant in Cadiz, OH
July 18, 2013July 18, 2013

Officials from Somerset Regional Water Resources (SRWR), a Pennsylvania-based frack wastewater recycling operator, recently spoke to a meeting of the Cadiz (OH) Business Association about their plans to start up a wastewater recycling facility in the Cadiz (Harrison County, OH) area next month, bringing more than 40 new jobs to the area.

SRWR is based in Tunkhannock, PA. They began operations in 2008 and now have over 120 employees. Begun as a water trucking operation for oil and gas drilling companies, SRWR has expanded to include a full offering of well site services and frack wastewater recycling facilities…
Read More “SRWR to Open New Frack Wastewater Plant in Cadiz, OH”
Industrywide Issues | Ohio | Pipelines | Processing Plants | Statewide OH

So Who’s Building All Those OH Pipelines Anyway?
July 17, 2013July 17, 2013

An MDN subscriber recently emailed us to ask for more details about that map showing, by region, the number of new natural gas gathering and transmission pipelines that will be built (see The Surprising Number of New NatGas Pipelines Coming in OH). The map we showed (embedded below) indicates that Ohio is in the midst of a major pipeline build-out with an astonishing 100+ new pipelines either currently under construction, or soon will be. The question from our reader: Who’s building all those pipelines?

We went looking and found an excellent article in Farm and Dairy that gives us the answer…
Read More “So Who’s Building All Those OH Pipelines Anyway?”
Columbia Pipeline Group | Energy Companies | Energy Services | Hilcorp Energy | Industrywide Issues | Jobs | NiSource | Ohio | Pipelines | Processing Plants | Statewide OH

OH Hickory Bend Pipeline/Plant Makes Excellent Progress
July 17, 2013July 17, 2013

An update on the Pennant Midstream “Hickory Bend” pipeline and cryogenic processing plant being built in eastern Ohio. The local labor union boss says excellent progress is being made as the project now enters its second phase, in spite of distractions from anti-drillers (see Slight Delay for Hickory Bend Processing Plant, Permit Appealed)…
Read More “OH Hickory Bend Pipeline/Plant Makes Excellent Progress”
Economic Impact | Industrywide Issues | Jobs | Ohio | Statewide OH | Utica Shale | Washington County (OH)

OH Students Get High-Paying Jobs in OH Utica Shale Industry
July 17, 2013July 17, 2013

A group of Ohio schoolteachers went on a field trip recently, touring drilling sites in eastern Ohio–Washington County, to be specific. A reporter tagged along to get their impressions and produced an interesting article. As part of that article, the reporter spoke to several educators about job opportunities in the Ohio oil (and gas) field patch. We’ve brought you such stories before, but it bears repeating that (in this case) Ohio students graduating from Marietta College’s petroleum engineering and geology department are actively, aggressively recruited and many get jobs right out of college with starting salaries of over $100,000 per year!

In addition, there’s plenty of high-paying jobs for those without a degree who have skills–like welding, truck driving and diesel mechanic. You can see how the Ohio Utica Shale is radically improving the jobs situation in Ohio:
Read More “OH Students Get High-Paying Jobs in OH Utica Shale Industry”
Antero Resources | Energy Companies | Energy Services | Industrywide Issues | Noble County | Ohio | Pipelines | Rockies Express Pipeline | Utica Shale

REX Reverses Pipeline Flow from OH for Mystery Utica Customer
July 16, 2013July 16, 2013

What a difference a year makes. Last August, RBN Energy President Rusty Braziel said the Rockies Express Pipeline (REX), which originates in Rio Blanco County, Colorado and sends gas to Monroe County, Ohio, was in danger of drying up because there’s so much shale gas coming from the Marcellus. His prescription? Turn it around and send gas the other way (see REX NatGas Pipeline Faces Stiff Competition from Marcellus). Looks like REX has taken Rusty’s advice.

In a press release issued yesterday, REX announced they have a binding agreement with an unnamed “large Utica Shale producer” who wants to use the pipeline to ship 200,000 decatherms of processed natural gas per day to the Midcontinent region of the country. That is, REX is reversing the flow for at least part of the pipeline. And who might the unnamed “mystery” producer be? We think we know…
Read More “REX Reverses Pipeline Flow from OH for Mystery Utica Customer”
Industrywide Issues | Ohio | Portage County | Statewide OH | Wastewater

Wastewater Injection Wells in Ohio – Comprehensive Update
July 15, 2013

On Sunday, the Akron Beacon Journal ran an excellent article on injection wells in Ohio. Their findings: Portage County disposed of more frack wastewater via injection wells than any other county in Ohio last year–disposing of 2.3 million barrels of brine and frack fluid wastewater. Brine, you may recall, is naturally occurring water from the depths that comes out of drilled wells long after the fracking fluid has been pumped out. Brine is very “salty” with a high concentration of minerals.

What may be a surprising statistic for some: Nearly two-thirds of the wastewater disposed of in Ohio wells was from out of state–most of that from Marcellus drilling in Pennsylvania and West Virginia. Here’s part of the article, which details a list of Ohio counties and how much wastewater they disposed of via injection wells:
Read More “Wastewater Injection Wells in Ohio – Comprehensive Update”
Energy Services | Ethane | Industrywide Issues | MarkWest Energy | NGLs | Ohio | Pennsylvania | Pipelines | Processing Plants | Statewide OH | Statewide PA | Statewide WV | West Virginia

MarkWest: $2.2B in Marcellus/Utica, Bring on the Cracker Plants!
July 15, 2013July 15, 2013

MarkWest Energy, a major Marcellus and Utica midstream company, is investing $2.2 billion in the Marcellus/Utica region in pipelines, processing and fractionation plants. According to MarkWest, they have enough work in the northeast to keep them expanding for the next five years. One of the main services offered by MarkWest is removing ethane from raw natural gas. Their plan is to ship the ethane to either Canada or the Gulf Coast via pipelines. However, they’d love it if the region had “several cracker plants.” Here we go again with more cracker talk!

A good overview of MarkWest’s several billion dollar investment in the northeast, and their belief that the region needs its own cracker plant:
Read More “MarkWest: $2.2B in Marcellus/Utica, Bring on the Cracker Plants!”