Ohio

Industrywide Issues | Ohio | Statewide OH | Taxation

OH Republicans Set to Cave on High Drilling Tax
December 20, 2012December 20, 2012

Are Ohio Republicans about to cave on supporting the dreadfully awful idea of high severance taxes on shale drilling in order to “spread the wealth around” by transferring that money into a fund to allow a state income tax cut? Sadly, it seems the answer is “yes.”

Yesterday at a press conference, Ohio House Speaker Bill Batchelder (Republican from Medina) said he thinks Republicans will support a higher severance tax once their palms are greased with pork projects they understand more about it.

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Energy Companies | Equinor/Statoil | Harrison County | Lease & Royalty Payments | Monroe County | Ohio | Tyler County | West Virginia | Wetzel County

Statoil Pays $590M for 70K “Wet Gas” Marcellus Acres
December 19, 2012December 19, 2012

In August, MDN told you that Statoil (a Norwegian company) was in the hunt for more U.S. shale acreage (see this MDN story). Statoil previously purchased a 32.5% interest in Chesapeake Energy’s Marcellus Shale acreage in 2008, securing 600,000 net acres for the company (but not as the “operator” for that acreage). They’ve been in the hunt for more, specifically to become an operator, and today they announced they’ve done a deal for an additional 70,000 Marcellus Shale acres—in the wet gas area of the play.

Statoil officially closed on the deal yesterday with Grenadier Energy Partners LLC, Protege Energy II LLC and PetroEdge Resources II LLC, paying $590 million for 70,000 acres in both West Virginia and eastern Ohio. The purchase price works out to be $8,429 per acre.

Here’s the Statoil press release announcing the deal, along with a slide presentation and map of the newly acquired acreage:

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Energy Companies | Gulfport Energy | Lease & Royalty Payments | Ohio | Rhino Resource Partners | Statewide OH

Gulfport Adds Another 30K Utica Net Acres, Pays $10K/Acre
December 18, 2012December 18, 2012

Gulfport Energy announced yesterday they have purchased another 30,000 Utica Shale acres in eastern Ohio for $300 million—or $10,000 per acre. That brings Gulfport’s grand total to 137,000 gross Utica Shale acres (99,000 net acres). Gulfport bought the acreage from its Utica Shale joint venture partner Wexford Capital. Perhaps a better way of phrasing it: Gulfport increased its ownership interest in acreage in which they’ve already invested.

Gulfport and Wexford, along with Rhino Resources, have previously invested in both two and three-way Utica Shale jv’s together (see this MDN story). So far, Gulfport has drilled the top producing wells in Ohio (see this MDN story for the secret to their success).

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BP | Energy Companies | Industrywide Issues | Ohio | Pipelines | Processing Plants | Trumbull County | Utica Shale

BP: Trumbull County Needs More Pipelines, Processing Plants
December 18, 2012December 18, 2012

Yesterday at a press conference in Youngstown, OH, BP announced plans to move into a new office and warehouse space in the Youngstown Commerce Park (see this MDN story). At the same event, BP officials spoke about their concerns that pipeline and processing plant infrastructure in Trumbull and surrounding counties may be quickly overwhelmed once BP’s drilling program is in full swing.

What do BP’s public comments mean? More pipelines and processing plants are likely on the way in Trumbull County:

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BP | Economic Impact | Energy Companies | Industrywide Issues | Mahoning County | Ohio | Trumbull County | Utica Shale

BP Moves into New Utica Shale Digs, Drilling Starts January
December 18, 2012December 18, 2012

Important Update: BP will not start drilling test wells until April 2013, not January as indicated in the headline (and as quoted in the story below). The news source quoted by MDN was inaccurate! Many thanks (and a hat tip) to MDN friend Andrea Wood, Publisher of the Youngstown Business Journal, for taking the time to notify us of the error.

BP announced yesterday they have begun moving into the company’s new “Utica Operations Center,” a 5,000 square foot office space with 38,000 sq ft of warehouse/storage space located in the Youngstown Commerce Park in North Jackson (Mahoning County), Ohio. BP aggressively leased Ohio Utica Shale acreage during 2012—signing up some 100,000 acres of leases this year. Of the Ohio acreage leased by BP, the vast majority (84,000 acres) is in Trumbull County, close to the new office space.

Ohio landowners who signed with BP, and businesses interested in supplying BP with products and services, will be interested to know BP plans to start drilling their first Utica Shale test wells in January 2013 (more details below).

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Belmont County | Energy Companies | Gulfport Energy | Harrison County | Ohio

The Secret to Gulfport’s OH Utica Drilling Success
December 17, 2012December 17, 2012

An excellent article on the Youngstown Business Journal website from Saturday delves into the question of why Gulfport Energy has (so far) turned in the most impressive results of all Utica Shale drilling in Ohio (see this MDN story for background on their success). Gulfport CEO Jim Palms credits better science and a little of luck for their astonishing success.

The real secret as to why Gulfport’s wells in Harrison and Belmont counties are doing so much better than counties farther north, like Carroll and Columbiana? It has to do with pressure…

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Industrywide Issues | Ohio | Portage County | Seismic Testing | Utica Shale

More Drilling on the Way in Portage County, OH?
December 17, 2012December 17, 2012

There hasn’t been much in the way of Utica Shale permits or drilling in Portage County, Ohio—yet. At least compared to other Ohio counties. At last official tally, Portage has seen 14 permits so far (see this MDN story).

That may about to change. Why would we think so? Because of orange cables strung along roadways throughout the county…

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Chesapeake Energy | Columbiana County | Energy Companies | Energy Services | EnerVest | Industrywide Issues | M3 Midstream | NGLs | Ohio | Processing Plants

Columbiana County NGL Plant On Track for May Opening
December 17, 2012December 17, 2012

An update on the excellent progress being made with the construction of a new $400 million natural gas liquids collection and processing plant being built in Hanoverton (Columbiana County), Ohio by M3 Midstream:

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Economic Impact | Energy Services | Industrywide Issues | Ohio | Pennsylvania | Stantec | Stark County | Washington County

Canadian Firm Buys PA Marcellus Survey/Mapping Company
December 17, 2012December 17, 2012

Canadian firm Stantec, which provides consulting service in engineering, surveying and environmental sciences, announced on Friday that they have bought out Landmark Survey and Mapping. Landmark, with 24 employees in both Washington, PA and North Canton, OH, specializes in surveying and mapping oil and gas pipelines—a growing area of focus for Stantec.

From the announcement:

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Economic Impact | Industrywide Issues | Mahoning County | Ohio

Road Trip! Youngstown, OH Chamber Goes to Houston, TX
December 17, 2012December 17, 2012

The Youngstown-Warren (OH) Regional Chamber of Commerce went on a road trip last week—to Houston, TX. The Regional Chamber is aggressively marketing the Mahoning Valley area as the supply chain hub for the Utica and Marcellus Shale—encouraging Houston companies to open operations in their area to leverage an abundance of low-cost natural gas and natural gas liquids.

Chambers of Commerce and economic development agencies from other locales would do well to follow their example:

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Chesapeake Energy | Energy Companies | Gulfport Energy | Ohio | Statewide OH

Chesapeake Admits Misjudging Ohio Utica Sweet Spot
December 14, 2012December 14, 2012

The Utica Shale is still in its infancy and drillers are still trying to get a fix on the “sweet spots” that will produce the most natural gas, gas liquids and even oil. Rendering an opinion on the best places to drill can be a career-ender, like it was for one long-time ODNR employee (see this MDN story).

Chesapeake was the early mover in Ohio’s Utica Shale, and it’s still the biggest driller in Ohio. However, we have an interesting admission from Chesapeake this week: They’ve misjudged the “emerging fairway” of the Utica in Ohio. While Chesapeake is concentrating most of their drilling in Carroll and Columbiana counties in the northern part of the state, Gulfport has drilled the four highest-producing wells in the Utica in counties to the south.

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Carroll County | Columbiana County | Industrywide Issues | Lease & Royalty Payments | Litigation | Ohio

Judge Tells Ohio Landowners They Can’t Break Lease
December 14, 2012December 14, 2012

A lawsuit filed by 95 landowners in Carroll and Columbiana counties (Ohio) has been decided in favor of Chesapeake Energy and against the landowners. Last month, Judge Richard Markus (Common Pleas Court) issued his decision that the landowners in the case could not break their lease if they received a better offer—something they thought they could do according to a provision in the lease.

Here’s the details of the case and the decision:

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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Mahoning County | Ohio | Wastewater

Anti-Driller Attempts Fraud at Youngstown, OH Meeting
December 14, 2012December 14, 2012

A loud-mouthed anti-driller tried to disrupt a recent “Oil & Gas 101” meeting being held in Youngstown, Ohio. The 30-year old woman started screaming over top of speaker Rhonda Rheda. She claimed to have a jar of fracking fluid with her, which she left on the table when she was arrested and removed from the meeting. The anti-driller then called 911 to report there was “hazardous material” at the meeting. Thing is, it was all a fraud. Wastewater is not hazardous material, but more to the point, Rheda had the contents of the jar tested and found it to be cider vinegar with chewing tobacco mixed in. A complete fraud and hoax by the anti-driller.

Welcome to a debate where the other side doesn’t play by anyone’s rules and will lie, cheat and commit fraud in the name of their “cause”—the elimination of all fossil fuels as a source of energy.

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Industrywide Issues | Ohio | Public Opinion | Statewide OH | Taxation

OH Poll Shows Support for Higher Drilling Tax is Slipping
December 14, 2012December 14, 2012

A new Quinnipiac University Poll shows a majority of Ohioans continue to support a higher severance tax (what they term a “new tax” when asking the question) on the shale drilling industry—especially if it would cut their income taxes. But the simple headline does not reveal the whole picture.

When you look at the internals of the poll (full copy of the questions and results is embedded below), you find that (a) support for the tax is slipping, and (b) it’s Ohio Democrats who support the tax in large numbers, while Republicans only tip to the support side when it comes to the question of lowering income taxes.

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Accidents | Dominion Energy | Energy Services | Industrywide Issues | Ohio | Pipelines | Statewide OH

PUCO Fines Dominion East Ohio $500K for Pipeline Accident
December 14, 2012December 14, 2012

The Public Utilities Commission of Ohio (PUCO) has fined Dominion East Ohio $500,000 over a natural gas explosion and fire at a pipeline regulator station in January 2011 in Fairport Harbor, Ohio. The resulting fires severely damaged 11 homes and another 150 homes required repair or maintenance of their gas-powered appliances because of the mishap.

From the PUCO press release:

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Industrywide Issues | Jobs | Ohio | Regulation | Statewide OH

Ohio Dems Accuse Gov. Kasich of Hypocrisy on “Foreign” Workers
December 14, 2012December 14, 2012

Ohio Democrat politicians, like Ohio Gov. John Kasich (a Republican) want to limit the number of “foreigners” working in the oil and gas fields of the state. Foreigners means hard-working, experienced oilfield workers from Louisiana, Texas and Oklahoma (traditional oil and gas states).

Ohio Dems think Kasich is not doing enough to keep them thar darned foreigners out:

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