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Chesapeake Energy Slated to Start Drilling in the Utica Shale in Columbiana County, OH this Fall

Last week, Chesapeake Energy announced (via it’s quarterly earnings statement) a major revelation—that it has struck oil as well as natural gas liquids and natural gas, in the Utica Shale of eastern Ohio. Columbiana County, OH is in the hot zone and stands to reap millions in revenue.

In the run-up to the announcement, Chesapeake has been busy signing deals with landowners in Columbiana County, including leases with local municipalities and school districts:

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Ohio Gov. John Kasich Jazzed About Chesapeake Striking Oil in the Utica Shale – Refers to Potential Out-of-State Workers as “Foreigners”

Ohio’s Gov. John Kasich is jazzed about Chesapeake Energy’s announcement of striking oil in the Utica Shale in eastern Ohio. But he also has issued a warning to Chesapeake and other drillers about the makeup of the work crews who will be populating well pads:

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Major Discovery – Chesapeake Energy Strikes Oil (and Gas) in Ohio’s Utica Shale

After two years of research and experimental drilling, Chesapeake Energy announced yesterday they have struck oil, natural gas liquids and natural gas in Ohio’s Utica Shale. This new find will boost Chesapeake’s company value by 15-20 billion dollars and is causing quite a sensation among Ohioans.

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A Further Update, and a Correction, on Recent Ohio Lease Deals

MDN has recently highlighted a few articles about the increase in activity in Eastern Ohio with new leases being signed. MDN is written from the Southern Tier of New York, so Ohio is not normally my beat. From the press accounts, it appeared to me (in fact it was referenced in the original articles) that the leases were related to the Marcellus Shale. But astute MDN reader and Ohio landowner Dan Ellis wrote a friendly note to let me know that I was wrong. Thanks Dan! I don’t want to perpetuate an inaccuracy.

Here is Dan’s email:

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Eastern Ohio Landowner Group Nears Deal for Marcellus Lease – Terms Include $3,700 per Acre, 17.5% Royalty

A group of landowners with 20,000 acres in Jefferson County and Harrison County, in eastern Ohio, is nearing a lease deal to allow Marcellus Shale drilling. One of the energy companies in the final bidding is XTO Energy (now a division of Exxon Mobil).

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Patriot Water Permit Renewal in Jeopardy in Northeastern Ohio

Patriot Water operates a Marcellus Shale wastewater treatment plant in Warren, Ohio—in the northeastern part of the state, not far from the border of PA. Patriot pre-treats drilling wastewater and then sends it to the Warren municipal sewage treatment plant where it is further processed and released to the Mahoning River. Patriot has invested $3 million and has hired 45 people to operate the plant.

The Ohio Environmental Protection Agency (OEPA) has told the Warren municipal sewage treatment plant their permit to accept Patriot’s treated wastewater will not be renewed when it expires in July 2012, even though there has not been a single “finding” or violation issued by the OEPA to Patriot.

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PA Marcellus Drilling Wastewater Going to Ohio

Millions of barrels of fracking fluid—wastewater often referred to as “brine” because of the heavy salts in it—are being imported from Pennsylvania Marcellus Shale drilling operations into Ohio, and it has some Ohioans concerned. Fracking fluid/wastewater/brine is what comes back out of the bore hole after sending water, sand and some chemicals down the hole during drilling.

Many larger drillers now recycle 100 percent of the wastewater for reuse in other drilling. For those who do not recycle it, it must be disposed—either by treating it at special facilities where it is then safe for release back into streams and rivers, or by storing it in underground wells, known as injection wells.

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