Ohio

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Live from Columbus, OH… Utica Shale Confab – Day 1
February 27, 2013February 27, 2013

MDN editor Jim Willis is in Columbus, Ohio attending the 2nd Utica Shale Development & Growth Forum. Jim is moderating a panel today (Wednesday) called “Utica from the Media’s Perspective.” On the panel with me are Bob Downing, staff writer with the Akron Beacon Journal, Rick Stouffer, editor of Platts Gas Business Briefing, and Peter Behr, reporter with EnergyWire. All top notch writers from premier publications. I feel honored to sit on a panel with them!

Yesterday (Tuesday) was the first day of the main program and speakers tackled the Utica Shale from their unique perspectives. We heard from the relatively new Access Midstream (formerly Chesapeake Midstream); a geologist; Blue Racer Midstream; and an economist who is head of the Ohio State University’s Sub Surface Energy Resource Center (“Utica Shale Center” for short). Since most MDN readers couldn’t be here, I took good notes to pass along. Below are highlights and interesting tidbits from Day One…

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Carroll County | Chesapeake Energy | Columbiana County | Energy Companies | Ohio | Utica Shale

Chesapeake Earnings Call Highlights Utica Results in 2 OH Counties
February 26, 2013February 26, 2013

In last week’s fourth quarter earnings call, Chesapeake Energy senior management once again singled out Columbiana and Carroll counties for special recognition and to express their ongoing commitment to the Ohio Utica Shale.

A few interesting highlights from that call:

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Industrywide Issues | Ohio | Regulation | Statewide OH | Taxation | Utica Shale

OH Budget Bill Hits Utica Drilling with $25K/Well Impact Fee
February 25, 2013February 25, 2013

If you ever (logically) thought a piece of legislation that’s meant to be a budget would only deal with money issues, you would be wrong. Budget laws for decades have been used to slip in all sorts of non-money-related measures. This year’s Ohio budget is no different. Tucked away in the proposed budget law from Gov. John Kasich are a number of non-budget items that directly affect Utica Shale drilling in Ohio. The measures include a ban on using brine as a de-icer on public roads, moving from yearly to quarterly production reports, lease transfer 30-day notifications, a $25,000 impact fee on each well drilled (surprise!), and testing of shale cuttings for radioactivity. And you thought budgets were just boring numbers.

Here’s the low-down on the non-budget items in the budget bill that will impact Utica drilling in a big way:

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Industrywide Issues | Ohio | Research | Statewide OH | Utica Shale

Law Firm Publishes Handy Utica Highlights Report for 4Q12
February 25, 2013February 25, 2013

Law firm Benesch Friedlander Coplan & Aronoff LLP (offices in Columbus and Cleveland) has just published a quarterly summary close-up on the Ohio Utica Shale for fourth quarter 2012. It’s full of interesting highlights and bits and bobs you’ve already read on MDN. However, the report pulls a lot of overview material together in an easy to scan format—and it’s just 12 pages (full report embedded below).

The report opens with what it considers the top issues and useful information. It then highlights some of the major industry moves, looks at the midstream and infrastructure projects, government regulation, and closes with training programs available to help those who want jobs in the gas and oil fields. A nice report—worth your time to review it.

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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Mahoning County | Ohio | Regulation | Utica Shale

Youngstown, OH to Commit Utica Suicide with Vote to Ban Drilling
February 25, 2013February 25, 2013

Is it right for a simple majority to strip away the hard-earned property of their neighbors with an up or down vote? The Founding Fathers called it mob rule, which is why the United States was founded as a democratic republic—not a straight democracy. They recognized that up or down votes that allow citizens to take away property (money, use of land, possessions) from fellow citizens is abhorrent and immoral, which is why they cooked up the ingenious document called the Constitution—full of checks and balances to prevent it from happening.

But alas, the Constitution has become nothing more than toilet paper in some places, like Youngstown, Ohio…

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Economic Impact | Housing | Industrywide Issues | Ohio | Washington County (OH)

Marietta, OH Feels the Economic Effects of Utica Drilling
February 25, 2013February 25, 2013

Marietta (Washington County), Ohio is starting to feel the impact from Utica and Marcellus Shale drilling. It’s showing up in a dramatic increase in tax revenue from hotels and motels. It’s also showing up in the local real estate market that’s turned from being a buyers market into a seller’s market:

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Economic Impact | Industrywide Issues | Jobs | Ohio | Portage County | Utica Shale

New Utica Pipe/Equipment Plant Setting up in Portage County, OH
February 25, 2013February 25, 2013

A welding and fabrication company—Six C Fabrication—has just purchased a former plastics plant in Rootstown (Portage County), Ohio where it will establish a manufacturing plant for piping and structural steel equipment for the Utica Shale drilling industry.

Six C hails from Louisiana. They believe the Utica offers a great opportunity to expand their business. Another 100 new jobs are on the way (this year) in the Utica…

Read More “New Utica Pipe/Equipment Plant Setting up in Portage County, OH”
Chesapeake Energy | Energy Companies | Ohio | Statewide OH | Utica Shale

Chesapeake Still Loves the OH Utica Shale – 2012 Year in Review
February 22, 2013February 22, 2013

Estimating that it will recover 5 to 10 billion cubic feet of natural gas equivalents from each well drilled in the Ohio Utica Shale, Chesapeake Energy says they still love the Ohio Utica Shale, even if oil isn’t a big part of the picture.

Chesapeake held an earnings call yesterday to discuss 2012 numbers with analysts. Akron Beacon Journal reporter Bob Downing listened in:

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Anti-Drilling/Fossil Fuel | Crime | Energy Services | GreenHunter Resources | Industrywide Issues | Ohio | Trucking | Washington County (OH) | Wastewater

Protesters Get Violent, Shut Down OH Frack Water Plant
February 21, 2013February 21, 2013

GreenHunter Energy operates a bulk storage and shipping facility near New Matamoras (Washington County), Ohio for salt water (“brine”) that comes from shale wells long after they are drilled and fracked. Brine is naturally occurring water from deep below the ground—water without chemicals from fracking—it just contains a lot of minerals. That fact doesn’t seem to matter to some obtuse protesters.

Yesterday, a group of 100 or so protesters, organized by an extremist group called Appalachia Resist!, stormed the New Matamoras brine facility and shut it down. They engaged in criminal acts by plugging the toilets, stealing keys and in general terrorizing the employees at the facility. Ten of the protesters were arrested (their names, ages and home cities are listed below). More will be charged once police are done reviewing video tapes of the incident.

You may be interested to know that almost all of the people arrested were from other states—not even Ohio residents. GreenHunter is pressing charges, which includes felony counts and possibly charges under the Anti-Terrorism Act.

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About MDN | MDN Resources | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

MDN Calls It: PA Hits 2 Trillion in NatGas Production in 2012
February 20, 2013February 20, 2013

Last month MDN released Volume 3 of the Marcellus and Utica Shale Databook. We predicted something in the ‘Drilling Update’ section that Databook readers have now known for a month—that Pennsylvania would hit the 2 trillion cubic feet of natural gas production milestone for 2012. The exact quote from the Databook, published at the end of January: “Pennsylvania, which just passed 1 trillion cubic feet of shale natural gas production in 2011, will double that and hit 2 trillion cubic feet of production for 2012. In addition, we believe Ohio’s Utica Shale will achieve 67 billion cubic feet of production for 2012.” We also predicted: “WV will likely double production again, so we’re estimating they will show an increase to 455 bcf for 2012.” (Databook Volume 3, page 10)

We don’t yet have 2012 final numbers for OH and WV, but our prediction for PA was spot on and is now verified by the latest reports just released by the PA Dept. of Environmental Protection:

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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Medina County | Ohio | Regulation

Big OH Company Will Leave Town if Anti-Drilling Resolution Passes
February 20, 2013February 20, 2013

Politicians in Brunswick, OH (near Cleveland) are about to learn a lesson the hard way. The Brunswick City Council intends to pass a resolution that calls shale gas drilling “risky” and asks the state legislature to allow local municipalities to ban it—the implication being they want to ban it in Brunswick. The resolution is outright anti-drilling and hostile to the drilling industry. If it passes, a large local company that’s been located in the city for 100 years says they’ll leave and take a huge chunk of tax revenue with them.

Philpott Rubber held a press conference to discuss their very serious threat. Philpott provides “environmentally friendly” products and services for shale drillers through their subsidiary Philpott Energy & Transportation Company. Philpott is planning a major expansion of their business due to an increase in drilling. If Brunswick persists in passing the resolution, Philpott will build a new wholesale operation outside the city, denying the city a boatload of tax money.

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Ohio | Portage County

Kent State University: No Plans to Allow Gas Drilling
February 20, 2013February 20, 2013

In Ohio, whether or not a state university like Kent State wants to allow drilling for natural gas on or under their land is up to the administrators of that university. Kent State owns over one thousand of acres of land. The main campus, in Portage County, OH, is over 900 acres by itself. Kent State owns eight campuses, a golf course and an airport—all in the Utica Shale region.

Although there is no official position (yet) coming from Kent on whether they want to lease their land for gas drilling, the administration has said there are “no plans to initiate drilling” on the Kent State campus.

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Belmont County | Blue Racer Midstream | Caiman Energy | Dominion Energy | Energy Services | Industrywide Issues | Marshall County | NGLs | Ohio | Pipelines | Processing Plants | West Virginia

Bomb Threat at Natrium, WV NGL Plant Doesn’t Slow Construction
February 19, 2013February 19, 2013

A $500 million natural gas liquids processing plant in Natrium (Marshall County), WV will go online in the next few weeks—even with a temporary stoppage of construction last Saturday due to a bomb threat (no word on who made the threat or why). The Natrium plant is part of Blue Racer Midstream, a $1.5 billion joint venture between Dominion and Caiman Energy (see Dominion, Caiman in $1.5B Utica JV: Blue Racer Midstream). The new plant was originally scheduled to go online by end of 2012.

Some of the construction for the plant is happening across the border in Belmont County, Ohio:

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Energy Services | Industrywide Issues | Litigation | Ohio | Patriot Water Treatment | Regulation | Statewide OH | Wastewater

Patriot Water in Warren, OH Objects to ODNR Directive
February 19, 2013February 19, 2013

A feud that stretches back to June 2011 between shale wastewater treatment company Patriot Water Treatment of Warren, Ohio and the Ohio Dept. of Natural Resources continues.

The latest skirmish in what has become a legal battle is over the ODNR’s order to D&L Energy to stop shipping wastewater to Patriot’s Warren plant:

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Coshocton County | Holmes County | Industrywide Issues | Ohio | Taxation | Wealth Management

Landowners: Make Lease Payments You Receive Tax-Free
February 19, 2013February 19, 2013

MDN ran across a story in the local Zanesville, Ohio newspaper that makes an interesting boast. A group of three financial advice firms have joined forces to offer workshops for landowners in the Coshocton, OH area that supposedly instructs landowners on how to save “virtually every tax dollar” on lease bonus payments. The technique, which involves setting up some sort of special legal structure, will also “save taxes” on royalty payments. We are 100% in favor of landowners keeping their money!

But, is it too good to be true? We don’t know. However, it does sound interesting, and if you live somewhere in the Coshocton vicinity, we’d encourage you to check it out. Let us know if you do…

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Arrowhead Utica Pipelines | Columbiana County | Energy Companies | Energy Services | Hilcorp Energy | Industrywide Issues | Ohio | Trucking | Utica Shale

Hilcorp Subsidiary Leases Property for Utica Transfer Facility
February 19, 2013February 19, 2013

The Columbiana County Port Authority operates an industrial park in Wellsville, Ohio. Tucked into a story about road improvements the Port Authority is making at the park we learn that two subsidiaries of Utica Shale driller Hilcorp have leased two different parcels in the park: Arrowhead Utica Pipelines and Harvest Pipeline Co. The Port Authority is spending over $900,000 on road upgrades, largely to expand a road to the future site of a new shale gas transfer facility that will be built by Arrowhead.

The details:

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