Ohio

Butler County | Energy Companies | Ohio | Pennsylvania | Rex Energy | Statewide OH

Rex Energy Plans to Invest $200M on Marcellus/Utica Drilling in 2013
February 14, 2013February 14, 2013

Rex Energy is planning to invest nearly $200 million on shale drilling in the Marcellus and Utica Shale in 2013. Around $107 million of that will be allocated for drilling in the Marcellus, in the Butler County, PA area, and about $85 million will be spent on Utica Shale drilling in Ohio. See a Rex presentation embedded below for full details of their 2013 drilling plans.

Here’s a rundown of their plans for Ohio’s Utica Shale from the Energy in Depth – Ohio website:

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Ohio | Statewide OH | Utica Shale

Ohio Utica Shale: Permits, Wells & Rig Count
February 14, 2013February 14, 2013

The numbers continue to increase for permits issued and wells drilled in the Ohio Utica Shale. The latest report from the Akron Beacon Journal, including the number of active drilling rigs in the Ohio Utica:

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Anadarko | Athens County | Encore Energy | Energy Companies | Guernsey County | Lease & Royalty Payments | Meigs County | Monroe County | Morgan County | Noble County | Ohio | Utica Shale | Washington County (OH)

Encore Energy to Anadarko: We’ve Got OH Land for You
February 14, 2013February 14, 2013

A for-profit company that pools acreage from both landowners that want to lease their land, and from energy companies with leases who want to re-sell those leases, is trying to get the attention of Anadarko and other drillers in the Ohio Utica Shale. Encore Energy issued a press release yesterday announcing they have land available for lease. They specifically tap Anadarko on the shoulder to tell them they have 1,300 Utica Shale acres “just 3 miles” from land they’re already drilling on in Washington County, OH.

Encore is shopping more than 18,000 acres across a number of Ohio counties, including Morgan, Washington, Noble, Guernsey, Monroe, Athens and Meigs. Here’s their “hey Anadarko, pay attention” press release:

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Crime | Industrywide Issues | Mahoning County | Ohio | Wastewater

Youngstown Business Dumped >200K Gal of Untreated Wastewater
February 12, 2013February 12, 2013

The case of a company dumping shale drilling wastewater down a sewer drain in Youngstown, OH—wastewater that has made it’s way to the Mahoning River—keeps getting worse. The owner of Hardrock Excavating (part of D&L Energy) says he thought he was “doing the right thing” by having his employees dump the wastewater at nighttime—to prevent an uproar. Little did he know the uproar he would create.

The owner, Ben Lupo, now admits his company dumped wastewater on at least six occasions, meaning the amount of untreated wastewater entering the water system in the Youngstown area exceeded 200,000 gallons—not the previously reported 40,000 gallons.

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Energy Companies | Gulfport Energy | Lease & Royalty Payments | Ohio | Statewide OH | Utica Shale

Gulfport Purchases More Utica Shale Leases for $10K/Acre
February 12, 2013February 12, 2013

$10,000 per acre seems to be the price Gulfport is willing to pay other energy companies to take over their acreage in the Ohio Utica Shale. Last December Gulfport paid $10K/acre for 30,000 acres (see Gulfport Adds Another 30K Utica Net Acres, Pays $10K/Acre). Yesterday Gulfport announced they’ve purchased another 22,000 acres from the same company, Windsor Ohio (a division of Wexford Capital), also for $10K/acre. This new acreage bumps Gulfport’s Utica Shale lease holdings to 137,000 acres.

Yesterday’s Gulfport announcement about their latest Utica purchase:

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Industrywide Issues | Ohio | Regulation | Statewide OH | Wastewater

OH Agencies Propose New Law for Disposing “Radioactive” Shale Waste
February 12, 2013February 12, 2013

Three Ohio government agencies—the Dept. of Health, Environmental Protection Agency and Dept. of Natural Resources—have cooperated to produce proposed legislation that will tighten regulations around low-level radioactive waste from shale drilling. The three agencies released their proposal yesterday:

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Blue Ridge Mtn Res/Magnum Hunter | Economic Impact | Energy Companies | Industrywide Issues | Ohio | Triad Hunter | Washington County (OH)

Magnum Hunter Spends $1M on Office in OH, Here for “Long-Term”
February 12, 2013February 12, 2013

Magnum Hunter Chairman and CEO Gary Evans was on hand Monday in Marietta, Ohio for the grand opening of the new regional office building for Magnum’s Marcellus and Utica Shale subsidiary Triad Hunter. Triad has (so far) leased 85,500 acres in the Marcellus Shale and 81,800 acres in the Utica Shale. The new office is located centrally to both the Marcellus and Utica plays—together referred to as Appalachia.

Triad spent $1 million to remodel a downtown Marietta building that will be their Marcellus/Utica regional headquarters. So far over 40 Triad employees have moved in. Magnum Hunter, through subsidiaries including Triad Hunter, Alpha Hunter, Eureka Hunter, Green Hunter Water and Viking International Resources has its fingers in a lot of different pieces of the drilling pie. According to Gary Evans, their commitment to Appalachia is long-term…

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Education | Industrywide Issues | Ohio | Research | Statewide OH | Statewide WV | West Virginia

OSU and WVU Join Forces to Research (Promote?) Shale Energy
February 12, 2013February 12, 2013

Two major universities in the Marcellus and Utica Shale have signed a “memorandum of understanding” (MOU) pledging to pool academic resources and work together on projects to research and leverage the rapidly expanding shale energy industry. Ohio State University and West Virginia University announced their new compact yesterday. Part the arrangement includes possibly developing shale energy field laboratories.

The attitude on the part of both institutions seems to be, “Let’s figure out how we can promote shale energy so it’s safe, and so everyone benefits.” Right attitude, right approach. Now, any bets as to how long before anti-fracking malcontents among the faculty and staff at those fine institutions begin a fracking witch hunt like happened at University at Buffalo? (See UB CLEAR: Burn the Fracking Witches and Their Castle.)

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Economic Impact | Industrywide Issues | Jobs | Ohio | Research | Statewide OH

OH Report Details Shale Drilling’s Huge Impact on Jobs, Economy
February 12, 2013February 12, 2013

The Ohio Dept. of Job and Family Services (Ohio’s welfare agency) issued the very first edition of a new quarterly publication yesterday which tracks the changes in Ohio’s oil and gas industry (see a copy of the first issue embedded below). What did ODJFS find with regard to the oil and gas industry’s impact on Ohio? Jobs in the oil and gas fields are up 17% from 2011 to 2012. The average salary across all the shale-related industries in Ohio is $73,934 per year. Those with jobs extracting oil in Ohio’s shale are making over $100K per year.

In short, the Utica and Marcellus Shale in Ohio has been a jobs and economic boom for the state:

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Carroll County | Chesapeake Energy | Energy Companies | Ohio

Man Who Fell Through Ice Saved by 3 Chesapeake Energy Workers
February 11, 2013February 11, 2013

Three Chesapeake Energy shale drilling workers and a local businessman put their own lives in jeopardy to save a man who had fallen through the ice in Atwood Lake in Carroll County, OH last week. We sometimes hear about an infrequent case of a drilling worker who engages in a criminal activity like dumping wastewater or getting into a fight at a local bar—it’s front page news. But when was the last time you heard about a drilling worker who saved someone’s life? Good news stories from the gas field do happen—you just never hear about them.

A huge congratulations to Chesapeake Energy workers Jason Rickman, Tyler Trammel and Jim Ray, and to Zielger Tire employee John Streb. They’re all heroes. Here’s their story:

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Crime | Industrywide Issues | Mahoning County | Ohio | Wastewater

OH Company Dumping Frack Wastewater in Drain May Appeal Shut-Down
February 8, 2013February 8, 2013

Yesterday MDN told you about the (likely) criminal act by Hardrock Excavating, a Youngstown, OH company owned by D&L Energy, when it dumped up to 50,000 gallons of fracking wastewater down a storm drain (see OH Company Dumps 50K Gal of Fracking Wastewater in Storm Drain). The fallout from that act continues. Yesterday the Ohio Dept. of Natural Resources (ODNR) revoked all operating permits—permanently—for both Hardrock Excavating and D&L Energy. Ouch.

D&L says it may appeal the ODNR decision to permanently shut them down…

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Beck Energy | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | Ohio | Regulation | Summit County

OH Appeals Court Strikes Down Home Rule for Drilling
February 7, 2013February 7, 2013

In 2012, Beck Energy Corp. got a permit from the OH Dept. of Natural Resources (ODNR) to drill on property located in the City of Munroe Falls (Summit County), OH. Beck started drilling and the city slapped a Stop Work Order on them and took them to court, saying Beck was not in compliance with a number of local ordinances and necessary permits. The local trial court supported Munroe Falls’ position and ruled in their favor.

Beck appealed the trial court decision to the Ohio Court of Appeals (Ninth District) and in a decision handed down yesterday, the appellate court sided with Beck and against so-called “home rule” when it comes to oil and gas drilling. The Ninth District instructed the lower court to reverse its opinion. This decision (full copy embedded below) has major consequences for both Utica Shale drillers and municipalities throughout the state…

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Crime | Industrywide Issues | Mahoning County | Ohio | Wastewater

OH Company Dumps 50K Gal of Fracking Wastewater in Storm Drain
February 7, 2013February 7, 2013

The Youngstown Vindicator is reporting that a Youngstown company, Hardrock Excavating, intentionally dumped 40,000-50,000 gallons of fracking wastewater down a storm drain and eventually ended up in the Mahoning River.

To say people are “outraged” doesn’t even begin to capture the emotion over this incident:

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Antero Resources | Belmont County | Energy Companies | Lease & Royalty Payments | Ohio

Antero Offers Barnesville, OH Residents $5,700/Acre 20% Royalties
February 7, 2013February 7, 2013

Normally drillers eschew drilling under cities or villages as a practical matter. Where do you put a drilling rig? What about traffic clogging up local streets? What if you can’t get everyone (or almost everyone) to sign? And why work to sign several hundred leases for a one square mile drilling unit with all of the deed research, negotiations, etc. that come with it, when you can sign leases with three or four people (farmers with lots of acreage) in a single unit?

The prospect of dealing with hundreds of landowners is not stopping Antero Resources (see Antero Resources Goes “All In” on Marcellus/Utica) from offering the residents of Barnesville (Belmont County), OH the same deal they struck last year to lease village-owned land: $5,700 per acre as a signing bonus, and 20% royalties on production.

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Energy Services | Industrywide Issues | Ohio | Pipelines | Statewide OH | Tennessee Gas Pipeline | Utica Shale

TGP Seeks to Convert Pipeline into Utica Wet Gas Gathering Line
February 7, 2013February 7, 2013

The Tennessee Gas Pipeline Co. recent made a filing with the Federal Energy Regulatory Commission (FERC) declaring its intention to convert an existing “lean gas” pipeline in the Ohio Utica Shale into a gathering pipeline to move wet gas from the Utica to market. TGP is getting a lot of pushback from existing pipeline customers that would be affected by the change:

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Energy Companies | Ohio | PDC Energy | Statewide OH | Utica Shale

PDC Energy Dumps Piceance to Concentrate on Ohio Utica
February 7, 2013February 7, 2013

PDC Energy, formerly known as Petroleum Development Corp., announced Tuesday they are selling off “non-core” assets in the Piceance Basin (northwestern Colorado) and assets they own in northeastern Colorado for $200 million so they can invest the money in wet gas drilling in the Ohio Utica and Niobrara Shale plays.

PDC’s announcement from Tuesday:

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