Ohio

Ohio | Statewide OH | Utica Shale

Ohio Passes “Magic 600” Utica Shale Permits Issued
April 19, 2013April 19, 2013

The most recent weekly report from the Ohio Dept. of Natural Resources (ODNR) shows that Ohio has now issued 605 Utica Shale permits to drill. Of those, 297 wells have been/are being drilled, and 89 wells are now producing. Although recent talk from Bloomberg and others has attempted to throw cold water on the Utica Shale, there’s no denying it’s still white hot.

Here are the the numbers from the latest report, and the grand tallies for where all those permits have been issued—by county, and by driller:

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Energy Companies | EnerVest | EV Energy Partners | Ohio | Statewide OH | Utica Shale

EVEP’s Utica PR Offensive: Good Oil Pressure, Low Drilling Costs
April 18, 2013April 18, 2013

Yesterday, MDN told you about EV Energy Partners/EnverVest’s (EVEP) mission to sell at least some of the 539,000 acres of Utica Shale leases they hold in Ohio (see EV Energy Partners Deal to Sell 104K Utica Acres Dead, What Now?). As part of the investor update call with EVEP on Tuesday, company chairman John Walker went on a PR offensive by saying drillers are watching how much oil will be produced by a well in Tuscarawas County (where EVEP is trying to unload acreage), and by saying the cost to drill a Utica well has come down, by up to 50%, from what it was when drillers first started in the Utica just a few years ago.

Walker’s comments from Tuesday:

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Energy Companies | EnerVest | EV Energy Partners | Ohio | Statewide OH | Utica Shale

EV Energy Partners Deal to Sell 104K Utica Acres Dead, What Now?
April 17, 2013April 17, 2013

EV Energy Partners/EnerVest Executive Chairman John Walker admitted yesterday that a deal to sell the company’s interest in 104,000 Utica Shale acres has fallen apart. MDN has chronicled the journey thus far in a number of articles. In September 2013, EVEP announced they had put 539,000 Utica acres on the auction block and were confident they would sell it by year’s end and receive in the neighborhood of $6 billion (see EnerVest Puts 539,000 Utica Shale Acres on Auction Block). That didn’t happen.

Earlier this year, EVEP seemed to pull back from the original offer and instead push 104,000 acres concentrated in Stark, Tuscarawas and surrounding counties (see EnerVest Strategy: Sell Utica, Drill Vertical, Expand Midstream). That smaller deal has now also “failed” according to yesterday’s call. Apparently the price was right, but the terms were not. So what happens now?
Read More “EV Energy Partners Deal to Sell 104K Utica Acres Dead, What Now?”
Crime | Industrywide Issues | Mahoning County | Ohio | Wastewater

Youngstown Illegal Dumper’s Former Company Files for Bankruptcy
April 17, 2013

It looks to be an ignominious end for D&L Energy, the company previously owned by Youngstown fracking wastewater dumper Ben Lupo (see Youngstown Business Dumped >200K Gal of Untreated Wastewater). Yesterday, D&L filed for Chapter 11 bankruptcy in U.S. District Court. The paperwork for the filing notes that although Lupo recently resigned as an officer and director at D&L, he retained 80% of the stock. The rest of the stock is owned by his wife and one other person. The paperwork also indicates the three D&L owners may have “improperly diverted funds of the debtors to other peripheral business entities owned or operated by one or more of these individuals for little or no consideration.” So it appears some hiding of assets/money may have gone on.

Here’s the low-down on the bankruptcy filing and who’s owed how much from D&L:
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Ohio | Statewide OH

Utica Whisker Away from 600 Utica Permits, 300 Wells Drilled
April 17, 2013

Ohio is just a few permits short of 600 Utica Shale permits for drilling, and just a few wells short of having drilled 300 Utica Shale wells. And no signs of letting up.

Here’s the latest numbers provided by the Ohio Dept. of Natural Resources, updated through April 6:
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Ohio | Statewide OH | Utica Shale

Bloomberg Says Ohio Utica Shale is Gassy, Not Oily
April 16, 2013April 16, 2013

Even though the 2012 production numbers for Ohio have still not been released, Bloomberg has declared Ohio’s dreams of producing large quantities of crude oil now dead and buried. Bloomberg says the Utica Shale play has turned out much more "gassy" than "oily". As their evidence, Bloomberg points to Ohio Utica asset sales now offered by some of the state’s biggest drillers, along with the opinions of a few analysts:

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Energy Services | Harrison County | Industrywide Issues | MarkWest Energy | NGLs | Ohio | Pipelines | Processing Plants

Good Progress on MarkWest’s Cadiz, OH Processing Plant
April 16, 2013April 16, 2013

MarkWest’s Cadiz, Ohio natural gas processing plant has been online since last year and currently separates handles 60 million cubic feet of gas per day (Mmcf/d), separating out gas liquids like ethane, propane, butane and pentane. MarkWest is busy building an expansion of the plant that, when done, will add an additional 125 Mmcf/d of capacity.

An update on MarkWest’s $1.8 billion infrastructure projects under way in Ohio this year:

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Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Ohio | Triad Hunter | Utica Shale | Washington County (OH)

Magnum Hunter Drills First OH Utica Shale Well
April 15, 2013April 15, 2013

Although Friday for Magnum Hunter Resources was marred by the sad news of the flash fire in Tyler County, WV, the company (earlier in the day) issued a good news press release, one of importance: Magnum Hunter, through it’s subsidiary Triad Hunter, has just started drilling it’s first Utica Shale well in Ohio—northern Washington County.

The press release identifying where it’s being drilled:

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Industrywide Issues | Jobs | Ohio | Statewide OH

New OH Group Agrees with Gov. Kasich: Keep the Foreigners Out
April 12, 2013April 12, 2013

Echoing the same sentiment expressed by Ohio Gov. John Kasich that out-of-state workers are considered "foreigners" (see OH Gov. Kasich Continues Trash Talk Out-of-State Workers), a grassroots group in Ohio has formed to "protect" Ohio workers and lobby and "hold energy companies accountable" for hiring more Ohioans for Utica Shale oil and gas drilling jobs. The group, called Protecting Ohio Workers, Employing Residents (or POWER for short), issued the following press release on Wednesday:

Read More “New OH Group Agrees with Gov. Kasich: Keep the Foreigners Out”
Industrywide Issues | NG Vehicles | Ohio | Summit County

Akron, OH Getting First Public Natural Gas Filling Station Soon
April 11, 2013April 11, 2013

On Monday, the Akron, OH City Council approved plans for a new natural gas filling station to be located at the corner of South Arlington Street and Palmetto Avenue. The bonus: It’s being built by a "home grown" Akron company…

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Hydraulic Fracturing | Industrywide Issues | Ohio | Regulation | Statewide OH | Wastewater

Radioactive Frack Waste Regs Coming Out of the Ohio Budget Bill
April 11, 2013April 11, 2013

Three Ohio state agencies requested a change in the way the state regulates and disposes of drilling waste that contains naturally occurring radioactive materials (NORM) and technologically-enhanced naturally occurring radioactive materials (TENORM). So new provisions were added to, of all things, the Ohio budget bill. Will politicians never learn?

Looks like the radioactive waste regulations are coming out of the budget bill and will instead be combined into their own, standalone bill. But that won’t happen until sometime this fall…

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Chesapeake Energy | Energy Companies | Ohio | Portage County | Stark County | Utica Shale

Chesapeake Puts 94K "Oily" Utica Shale Acres Up for Auction
April 10, 2013April 9, 2013

As this issue goes to press, the Wall Street Journal and Fox Business is reporting that Chesapeake Energy has put 94,205 Utica Shale acres on the auction block. That’s nearly 10% of their remaining 1 million Utica Shale acres. This is not unprecedented. Last June Chesapeake put 337,000 acres on the auction block (see Chesapeake Selling 337K Utica Shale Acres, Counties IDed). Although the company has not yet made a public statement about this sale, MDN went fishing and found the listing from the real estate site where it’s listed. We’ve embedded it below (shows a map of the acreage).

Here’s what we notice about the listing, including which counties are involved…

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Accidents | Beaver County | Crime | Industrywide Issues | Mahoning County | Ohio | Pennsylvania | Wastewater

Beaver Falls, PA – Downriver from Youngstown Frackwater Dumping
April 10, 2013April 9, 2013

An article in the Youngstown Vindicator asks the question of whether or not the illegal dumping of frack wastewater in the Mahoning River by D&L Energy owner Ben Lupo (see Youngstown Wastewater Dumper Pleads Not Guilty in Federal Court) has contaminated water supplies down river—particularly in Beaver Falls, PA. Beaver Falls gets its water from the Beaver River, which in turn gets its water from the Mahoning River where the dumping took place.

According to the PA Dept. of Environmental Protection, Beaver Falls noticed "some problems" but the incident probably had "just a minor effect." That’s not much comfort for residents in Beaver Falls who wonder whether or not they were drinking polluted water…

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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Mahoning County | Ohio | Public Opinion | Regulation

Frack Fight: Group Pushes Back on Proposed Youngstown Frack Ban
April 9, 2013April 9, 2013

MDN previously told you how Democrat city council members in Youngstown, OH have tried to steer the city into committing the equivalent of economic suicide by voting to ban fracking—a signal to drillers to stay away from doing business in the city (see Youngstown, OH to Commit Utica Suicide with Vote to Ban Drilling).

However, a diverse group of leaders from the ranks of both Republicans and Democrats, labor unions and industry have joined together to push back against the ballot measure which will be voted on May 7. The Mahoning Valley Coalition for Job Growth and Investment "came out firing" last Friday. Perhaps it’s not time just yet to write Youngstown’s fracking epitaph…

Read More “Frack Fight: Group Pushes Back on Proposed Youngstown Frack Ban”
Ohio | Statewide OH | Utica Shale

The Latest Ohio Utica Shale Permits & Wells Drilled Numbers
April 9, 2013April 9, 2013

The number of Utica Shale well permits, and wells drilled, continues it’s rapid ascent. Through March 30 there have been 588 Utica permits issued, and 282 wells drilled. Here’s where the latest permits were issued:

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Columbiana County | Industrywide Issues | Jobs | Ohio

Roustabout: Long Hours, Hard Manual Work, But Good Pay + Benefits
April 9, 2013April 9, 2013

Roustabouts are the "do it all" manual laborers that work in drilling operations—typically on and around a drilling rig. They pick up the garbage, repair things, carry things…anything that needs doing of a manual natural. It’s hard, long, dirty work—typically 12-hour (or more) shifts for two weeks straight. However, if you’re young, in good health and in good shape, getting work as a roustabout can pay well—very well. Just ask Brian Rose who works as a roustabout on a rig in Lisbon, OH:

Read More “Roustabout: Long Hours, Hard Manual Work, But Good Pay + Benefits”