Ohio 233 - Marcellus Drilling News

OOGA Comes Out Swinging Against Kasich Tax Proposal

March 28, 2012March 28, 2012

The Ohio Oil and Gas Association (OOGA) issued a press release on Monday taking Ohio Gov. John Kasich to task for his proposal to slap a severance tax increase on the nascent Utica Shale drilling industry and use the proceeds to give taxpayers an income tax reduction. The new tax increase on drillers has been tentatively removed from budget discussions, but OOGA believes Kasich won’t let it rest and will likely try to resurrect it.

From the OOGA press release:

Change in Location for MarkWest Processing Plant in Ohio

March 28, 2012March 28, 2012

A new natural gas processing plant to be built by MarkWest Energy was supposed to be built in Monroe County, Ohio, but the geography has now shifted west and the plant will be built in neighboring Noble County, Ohio instead.

Lease & Royalty Payments | Ohio | Statewide OH | Utica Shale

Who’s Drilling Where (and How Much) in Ohio’s Utica Shale

March 26, 2012March 26, 2012

score card In one of the best “round up” articles MDN has seen, journalist Bob Downing from the Akron Beacon Journal gives a rundown of who’s drilling where in Ohio’s Utica Shale. From the introduction of the article:

Hydraulic Fracturing | Industrywide Issues | Ohio | Statewide OH

OH Enviro Groups Warn Against Water Withdrawals for Fracking

March 26, 2012March 26, 2012

With the rapid expansion of natural gas drilling in Ohio’s Utica Shale comes a need for water used in the hydraulic fracturing process. Each well drilled can use upward of five million gallons of water. Some it comes from recycled wastewater from other fracking operations, but there’s still an ongoing need for water.

Chesapeake Talks About Pipelines for OH Processing Complex

March 22, 2012March 22, 2012

Last week, Chesapeake Energy announced it was partnering with M3 Midstream and EV Energy Partners to build a new $900 million gas processing complex in Ohio’s Harrison and Columbiana counties by the middle of next year (see this MDN story). At an industry conference this week, Chesapeake and its partners spoke about the pipelines they will run to the plants and between the plants:

Williams Buys Caiman Eastern Midstream for $2.5 Billion

March 20, 2012March 19, 2012

Williams announced yesterday that it will buy Caiman Energy subsidiary Caiman Eastern Midstream for $2.5 billion. Caiman Midstream has a major presence in the wet gas area of the Marcellus and Utica Shale play. The acquisition will give Williams a major pipeline gathering network in northern West Virginia, southwestern Pennsylvania and eastern Ohio, along with two processing facilities and a fractionator. Williams says by 2020 the Caiman system will be gathering more than 2 billion cubic feet per day of natural gas along with 300,000 barrels per day of natural gas liquids and condensate.

In addition to the acquisition, the Caiman Energy parent company will partner with Williams in a new joint venture to further develop new midstream infrastructure in the Utica Shale. From the Williams press release:

Ohio | Statewide OH

Tips for Ohio Landowners with Old Mineral Leases

March 20, 2012March 19, 2012

A helpful article in The Marietta Times helps Ohio landowners better understand the complicated issue of old mineral leases signed decades ago that may still be in force. Before landowners can sign a new lease, the old claims must be officially removed.

The article advises landowners to get a lawyer’s assistance. Leases are often reassigned to new companies–some leases have been reassigned more than a dozen times. In order to get a release, you must first track down the current company that holds the lease, and then get them to sign off.

Industrywide Issues | Ohio | Statewide OH | Taxation

Ohio House Tells Kasich “Not so Fast” with New Severance Tax

March 19, 2012March 19, 2012

The Ohio House of Representatives is telling Gov. John Kasich, in essence, “not so fast” with your severance-tax-increase-on-drillers-to-give-everyone-a-tax-cut plan.

Hydraulic Fracturing | Industrywide Issues | Ohio | Statewide OH | Taxation

Ohio Proposal for Revamped Severance Tax, New Impact Fee

March 15, 2012March 15, 2012

new taxes ahead As MDN reported last week, Ohio Gov. John Kasich introduced a shale gas and oil severance tax overhaul yesterday. The leaked details from last week were correct—but we now have the full proposal (embedded below). Gov. Kasich is tying a revamped severance tax to lowering income taxes for all Ohioans—by up to $1 billion over five years.

Carrizo Oil & Gas | Energy Companies | Ohio | Trumbull County

Carrizo Set to Drill First Utica Well in Trumbull County, OH

March 15, 2012March 15, 2012

Trumbull County, Ohio may get its first Utica shale gas well drilled by Carrizo Oil & Gas this summer according to a company representative:

Chesapeake to Build $900M Processing Plant in OH Utica Shale

March 14, 2012March 14, 2012

gas processing plant Chesapeake Energy is partnering with M3 Midstream and EV Energy Partners to build a new $900 million natural gas processing complex with facilities in Ohio’s Harrison and Columbiana counties by the middle of next year. The facility will be the largest of its kind in eastern Ohio, providing a place for Chesapeake and other drillers to process natural gas and the all-important natural gas liquids. French energy giant Total, a 25 percent joint venture partner with Chesapeake in the Utica Shale, also has an option to participate in the project.

From the Chesapeake press release:

Industrywide Issues | Ohio | Processing Plants | Regulation | Statewide OH

OH Gov. Kasich Signs Exec Order on Shale Processing Plants

March 13, 2012March 13, 2012

Ohio Gov. John Kasich signed an executive order on Monday giving the Ohio Department of Commerce’s Division of Industrial Compliance the sole authority to oversee construction of shale gas processing plants in the state.

Earthquakes | Industrywide Issues | Mahoning County | Ohio | Wastewater

ODNR Finds Youngstown Injection Well Caused Earthquakes

March 12, 2012March 12, 2012

Youngstown earthquake locations A preliminary report released by the Ohio Department of Natural Resources (ODNR) on Friday concludes that a dozen earthquakes in northeastern Ohio were “almost certainly” induced by injection of gas-drilling wastewater (a full copy of the report is embedded below). The evidence is overwhelming: The earthquakes did not begin until three months after the injection well went online; the quakes were all clustered around the well bore; and a new fault has been discovered in the bedrock where the wastewater was being injected. Taken together, the ODNR is as sure as it can get that the injection well was causing the earthquakes.

Therefore, the ODNR has issued new regulations for injection wells, what state officials are calling among the toughest rules in the nation. From the ODNR press release:

Industrywide Issues | Ohio | Statewide OH | Taxation

Details on Ohio Gov. Kasich’s New Tax on Shale Drilling

March 9, 2012March 9, 2012

sign taxes ahead Details of Gov. John Kasich’s plan to raise taxes on the nascent shale drilling industry in Ohio (see this MDN story) are starting to leak out. Gov. Kasich plans to unveil his plans officially next week, but here’s what we know so far:

Industrywide Issues | Ohio | Regulation | Statewide OH | Wastewater

OH Bill Tightens Regulation of Wastewater Injection Wells

March 9, 2012March 9, 2012

Ohio State Rep. Jay Goyal introduced legislation yesterday to tighten regulation of injection wells used for disposing Marcellus and Utica Shale wastewater. Key provisions of the bill include:

Belmont County, OH Landowner Sues Hess Over $100/Acre Lease

March 8, 2012March 8, 2012

Rebecca Bench, a landowner in Belmont County, Ohio is representing herself in a lawsuit she has brought against Hess. The lawsuit alleges that Mason Dixon Energy, whom she signed a lease with (that lease was eventually purchased by Hess) had no legal standing to conduct business in Ohio at the time they convinced Rebecca and her husband Kevin Bench to sign a lease in 2008 for $100 per acre. By comparison, recent lease agreements for Utica Shale leases in the county have gone as high as $5,200 per acre.