Ohio

American Energy Partners | Energy Companies | Ohio | Statewide OH | Utica Shale

More Evidence that Aubrey McClendon Loves OH’s Utica Shale
September 3, 2013September 3, 2013

Aubrey McClendon is former CEO of Chesapeake Energy and now CEO of an upstart competitor he started named American Energy Partners (see AEP’s just launched website here). Aubrey is high on the Ohio Utica Shale. He’s rumored to be close to signing a deal with Shell for 50,000 OH Utica Shale acres, and is also rumored to be the unnamed buyer for EnerVest’s 22,535 OH Utica Shale acres sold just a few weeks ago (see He’s Baaaack! Aubrey McClendon is Back in OH Shale Country).

More evidence that Aubrey is focusing on Ohio: A bunch of advertisements AEP is running in OH media seeking to sign leases in the following counties…
Read More “More Evidence that Aubrey McClendon Loves OH’s Utica Shale”
Belmont County | Industrywide Issues | Ohio | Seismic Testing | Utica Shale

Belmont County, OH Seismic Charges: Trespass or Honest Mistake?
September 3, 2013September 3, 2013

Sandy Putorek, who lives in Pittsburgh but owns a 30-acre farm in Lansing (Belmont County), OH, is anti-drilling. It is her American right to refuse what she claims are many offers to lease her property for Utica Shale drilling. It is also her right (so long as she owns the mineral rights) to refuse seismic testing on her property. However, while recently visiting her land she noticed tracks across her property. When she followed them, she had a surprise: someone had installed small explosive charges used for seismic testing–without her permission. Now Sandy is (understandably) fighting mad.

The company that installed the charges is removing them, claiming bad maps from the county led to the charges being mistakenly placed on Sandy’s land…
Read More “Belmont County, OH Seismic Charges: Trespass or Honest Mistake?”
Antero Resources | Energy Companies | Monroe County | Ohio | Utica Shale

Antero Resources Utica Well Produces Stratospheric 38.9 Mmcf/d
August 29, 2013

Somehow the following news (now a few weeks old) slipped by our usually-good radar. Antero Resources has taken the top spot away from Gulfport Energy as having the most productive Utica Shale well in Ohio. Gulfport had what was dubbed their “alpha dog” well, the Wagner 1-H well producing 14 million cubic feet of natural gas per day (Mmcf/d). Then came Gulfport’s Shugert 1-1H, which MDN dubbed the “King of Utica Shale wells” producing a whopping 20 Mmcf/d. After that was the Shugert 1-12H well, sister well to the 1-1H. We called that one “the Emperor well” producing 28.5 Mmcf/d (see Gulfport’s New Utica Well Produces Mind-blowing 28.5 Mmcf/d!).

We’re now officially out of metaphors and labels. Antero Resources’ Yontz Utica Shale well recently saw a peak rate of a truly mind-blowing 38.9 Mmcf/d. Gulfport’s Shugert wells are in Belmont County. The Yontz well is located in Monroe County, just south of Belmont…
Read More “Antero Resources Utica Well Produces Stratospheric 38.9 Mmcf/d”
Carroll County | Energy Companies | Lease & Royalty Payments | Ohio | Sierra Buckeye

Sierra Buckeye Responds: We Didn’t Default on Carroll County Lease
August 29, 2013August 29, 2013

Last week MDN told you about a kerfuffle in Ohio between Carroll County commissioners and Sierra Buckeye, a driller with whom the county signed a lease in July 2012 for 481 acres of county-owned land (see Carroll County, OH Says Sierra Buckeye in Default on Utica Lease). The county says Sierra was supposed to drill by a certain deadline and did not do so, throwing the lease agreement “in default” and implying Sierra is subject to make extra penalty payments under the lease terms.

Sierra Buckeye contacted MDN to tell their side of the story. They claim that yes, they did ask for an extension of the lease terms until Nov. 1 of this year, but that Carroll County commissioners went silent and did not respond to multiple requests, and that no, they are not in default and don’t owe a penny more. In fact, they have canceled (or “released”) the lease per Carroll County’s request–transmitting the release last week. What miffs Sierra Buckeye is that they had to learn about the commissioners’ intentions by reading about it in the newspaper…
Read More “Sierra Buckeye Responds: We Didn’t Default on Carroll County Lease”
BP | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Ohio | Pipelines | Trumbull County | Utica Shale

Utica Drilling Innovation: Plastic Pipelines Replace Water Trucks
August 29, 2013August 29, 2013

An interesting innovation that we have not heard of before: BP is using temporary, plastic pipelines to transport water to the test wells they’re drilling in Trumbull County, OH. When a series of wells are finished being drilled, the pipes can be rolled up and used somewhere else without having to dig a trench and leave a permanent pipeline underground. No more thousands of trips by water trucks to drill a well!

Could this be the start of yet another new, environmentally-friendly innovation by the shale drilling industry?…
Read More “Utica Drilling Innovation: Plastic Pipelines Replace Water Trucks”
Carroll County | Lease & Royalty Payments | Ohio

OH Town Votes to Give Up 1/4 Royalties for Cash Payment Now
August 29, 2013August 29, 2013

Should a municipality that’s leased village-owned land to a shale driller (in this case in Ohio’s Utica Shale) sell some of their future potential royalties for cash now in order to buy a firetruck? It’s not a hypothetical question. Carrollton, OH council members voted this week to do just that. Selling future earnings is nothing new: It happens with lottery winners. They win a lottery with a payout over the next 20-30 years but want (or need) the money now. So they sell their future payments to a third party for a discounted amount of cash now.

It’s one thing for an individual to do it, but quite another (in our opinion) for a municipality to do it…
Read More “OH Town Votes to Give Up 1/4 Royalties for Cash Payment Now”
Anadarko | Blue Ridge Mtn Res/Magnum Hunter | Chesapeake Energy | CONSOL Energy | Energy Companies | EV Energy Partners | Gulfport Energy | Halcon Resources | Hess | Ohio | PDC Energy | Rex Energy | Statewide OH | Utica Shale

Who’s Who in OH Utica Shale Drilling for 2013
August 27, 2013August 27, 2013

Investor’s website Market Realist ran a 7-part series on the Utica Shale yesterday–really good stuff. As part of that series they list the biggest drillers/leaseholders in the Ohio Utica Shale. It’s a very useful rundown and update on the latest positions held by the major players of the Utica. We’ve pulled and condensed from their article to give you the latest rundown on who’s who in the Ohio Utica Shale…
Read More “Who’s Who in OH Utica Shale Drilling for 2013”
Blue Racer Midstream | Caiman Energy | Dominion Energy | Energy Services | Industrywide Issues | Ohio | Pipelines | Processing Plants | Statewide OH | Utica Shale

Blue Racer Gets $1B Line of Credit for More Utica Projects
August 23, 2013August 23, 2013

Blue Racer Midstream, a 50/50 midstream joint venture between Dominion and Caiman Energy II, was formed last December (see Dominion, Caiman in $1.5B Utica JV: Blue Racer Midstream). One of the assets that belongs to the Blue Racer jv is the newly online Natrium, WV NGL plant (see Dominion Sells $500M Natrium NGL Plant to… Itself).

In order to expand and fulfill their vision of becoming the leading midstream company in the Utica Shale, Blue Racer needs money to build things. They now have it. Blue Racer announced yesterday they’ve secured an $800 million line of credit with a group of banks–a line of credit which can be (under certain conditions) expanded to a whopping $1 billion. That kind of money will easily build you another couple of Natrium NGL plants…
Read More “Blue Racer Gets $1B Line of Credit for More Utica Projects”
Hydraulic Fracturing | Industrywide Issues | Ohio | Pennsylvania | Regulation | Statewide OH | Statewide PA | Statewide WV | West Virginia

CSSD Says First Marcellus Certifications Coming Later this Year
August 23, 2013August 23, 2013

MDN previously told you about a new, independent group–a cooperative between the drilling industry and environmentalists–called the Center for Sustainable Shale Development, or CSSD (see Important: Drillers & Enviros Form New Group, Launch Cert Program). Members of the group on both sides have taken heat for working together to create very strict standards for Marcellus and Utica Shale drillers (see Eco Groups Shun EDF over Membership in Sustainable Shale Center).

The CSSD created a list of 15 standards they want drillers to conform to–some of the standards very costly, especially to small drillers. The group is moving forward with their plans and intends to begin certifying drillers “later this year”…
Read More “CSSD Says First Marcellus Certifications Coming Later this Year”
Anti-Drilling/Fossil Fuel | Athens County | Hydraulic Fracturing | Industrywide Issues | Ohio | Regulation

Athens Election Board Votes Against Anti-Frack Ballot Measure
August 23, 2013August 23, 2013

Members of the Athens County, OH Board of Elections voted last Thursday to not put a proposed anti-fracking measure on the ballot in the November election that would not only ban fracking in City of Athens, but also up to 20 miles outside of the city–a breathtaking, egregious power grab that the election board’s attorney advised them against supporting. One member of the Election Board who is anti-fracking, having signed an anti-fracking petition before assuming her office, properly recused herself from the vote citing ethics requirements. The rest of the board members unanimously voted against running the wrong-headed proposal on the ballot this fall.

Anti-drillers from the misnamed “Athens Bill of Rights Committee” are considering their next move, likely legal…
Read More “Athens Election Board Votes Against Anti-Frack Ballot Measure”
Energy Companies | Energy Services | Ethane | Industrywide Issues | MarkWest Energy | Ohio | Processing Plants | Shell | Statewide OH

OH Still in the Running for an Ethane Cracker? Maybe
August 22, 2013August 22, 2013

Ohio’s dream to be the future host of an ethane cracker plant is still very much alive, according to U.S. Sen. Rob Portman from Ohio. Portman, along with Greg Sullivan, area manager for MarkWest Energy, spoke at the Ohio Mid-Eastern Governments Association meeting yesterday. According to Sullivan, a source to ship the ethane produced by their plant to when it separates the ethane from the natural gas liquid stream is “our big challenge.” MarkWest’s only current option is to ship it to Canada via the Mariner West Sunoco pipeline (see Big News: Marcellus Ethane Now Exporting to Canada Cracker Plant). Starting next year and the year after, two more pipelines will come online to ship it to the Gulf Coast (the ATEX Express and the Bluegrass).

According to MarkWest, there is a “desperate need for a local ethane cracker.” Sen. Portman is hoping Ohio can supply that need, especially since Shell continues to “evaluate” its project to build a cracker plant in PA with no firm commitment or timeline to build it…
Read More “OH Still in the Running for an Ethane Cracker? Maybe”
Carroll County | Energy Companies | Lease & Royalty Payments | Ohio | Sierra Buckeye | Utica Shale

Carroll County, OH Says Sierra Buckeye in Default on Utica Lease
August 22, 2013August 28, 2013

In May 2012 Houston-based driller Sierra Buckeye signed a deal with the Muskingum Watershed Conservancy District (in Ohio) to lease 185 acres of District-controlled land for $4,500 per acre plus 20% royalties on all gas produced–really good terms. In October 2012 Sierra Buckeye signed a deal with Carroll County, OH to lease 481 acres of county-owned land for the same terms, receiving a check for over $2 million as the signing bonus. However, built into the Carroll County lease deal are penalties if Sierra Buckeye does not begin drilling by certain deadlines.

The initial deadline came and went and the county extended it. The second deadline is now past and Sierra Buckeye is asking for a third deadline (November). The county has had enough and has told Sierra Buckeye the lease contract is now in default…
Read More “Carroll County, OH Says Sierra Buckeye in Default on Utica Lease”
Industrywide Issues | Jobs | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | Supply Chain | West Virginia

MSC Releases Annual Marcellus Job/Workforce Survey
August 22, 2013August 22, 2013

What types of companies in the Marcellus/Utica Shale region are hiring? What types of jobs are they hiring for? And where are they hiring? Those are just some of the answers you’ll find in the latest annual membership survey from the Marcellus Shale Coalition (copy of survey results embedded below). In addition to those questions, the survey also addresses which functions and services drillers outsourced (pay attention supply chain companies!), and which positions were hardest to fill (pay attention job seekers!).

The press release announcing and summarizing the survey results:
Read More “MSC Releases Annual Marcellus Job/Workforce Survey”
Economic Impact | Industrywide Issues | Jobs | Ohio | Statewide OH | Utica Shale

OH Utica Shale – More Jobs to Come, Sale Tax Revenue Soars
August 22, 2013August 22, 2013

Although the “received wisdom” is that the Utica Shale has not, so far, created a bonanza of jobs for in-state residents, it’s early days yet and most energy industry analysts and watchers predict jobs for Ohioans in much greater numbers are on the way. In the meantime, the Utica’s positive impact on local economies is not in dispute. The latest evidence: the 15 counties in eastern OH with the best Utica Shale deposits (and the most drilling) have seen their sale tax revenues soar by an average 20% in 2012 vs 2011. That is a huge number and indicates a lot of money from drilling stays in OH and ripples throughout local economies…
Read More “OH Utica Shale – More Jobs to Come, Sale Tax Revenue Soars”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Mahoning County | Ohio | Regulation

Anti-Drillers to Throw a Big Party this Weekend in Youngstown, OH
August 21, 2013August 20, 2013

Calling all fossil-fuel haters–get your “frack” on–it’s time to paaarrrrrttttaaay! Anti-frackers will assemble in Youngstown, OH this weekend for a party in support of a truly stupid ballot measure that will be voted on (for a second time) this November. If passed, the new law would not only ban fracking in Youngstown–but also ban businesses involved with the shale oil and gas industry from operating in Youngstown. Such a measure would be a catastrophe for the economy of the just-starting-to-recover Youngstown, but this bunch will be so high they won’t notice…
Read More “Anti-Drillers to Throw a Big Party this Weekend in Youngstown, OH”
American Energy Partners | Chesapeake Energy | Energy Companies | Ohio | Statewide OH

He’s Baaaack! Aubrey McClendon is Back in OH Shale Country
August 19, 2013August 19, 2013

After being unceremoniously tossed out of the door at Chesapeake Energy (the company he founded) by corporate raider Carl Icahn, Aubrey McClendon is, according to the Columbus Dispatch and Upstream magazine, back and active in the Utica Shale with his new company American Energy Partners.

There are four VERY interesting, juicy tidbits in the story about Aubrey’s return to the Utica…
Read More “He’s Baaaack! Aubrey McClendon is Back in OH Shale Country”