Ohio 238 - Marcellus Drilling News

New Ohio Oil & Gas Drilling Rules Coming January 2012

December 21, 2011December 21, 2011

The Ohio Department of Natural Resources (ODNR) is finalizing new state oversight rules on well construction for oil and natural gas that it says will be among the toughest in the U.S. (a copy of the proposed new rules is embedded below). According to ODNR officials, the new rules do not specifically address hydraulic fracturing, although the new rules will apply to horizontally drilled and fracked wells as well as conventional vertical wells. New fracking rules, according to the ODNR, “will be addressed later.”

More Marcellus & Utica Shale Jobs Coming to Youngstown, OH

December 21, 2011December 21, 2011

The good economic news keeps coming in for the Marcellus and Utica Shales. If approvals come (as expected) from the city of Youngstown, Ohio, Exterran Energy Solutions will build a new $13 million manufacturing facility in the city in 2012. Exterran manufactures parts used in compressors and compressor stations used in the production and transportation of natural gas from shale drilling. The new plant could provide as many as 200 new jobs in the next several years.

OH Gov Kasich’s Top Priority for 2012: Shale Gas

December 20, 2011December 20, 2011

In a year-end “media gathering” with Ohio Gov. John Kasich, the governor recounted his administration’s accomplishments for his first 12 months in office, and then he turned his sights on 2012. At the top of his agenda for next year? Drilling in the Marcellus and Utica Shales.

Chesapeake Real Estate Purchases in Ohio Signal Expansion

December 20, 2011December 20, 2011

Chesapeake Energy has just paid $630,000 for two pieces of real estate in Belmont County, Ohio—ground zero for Utica Shale drilling in eastern Ohio. Chesapeake will not officially comment on the purchases, but there’s little doubt they will build a new satellite office at one location for their Ohio drilling operations, and perhaps use the other parcel (land and warehouse) for storage and operations. It shows the serious commitment Chesapeake is making in Ohio and signals their further expansion in the area.

Halliburton Buys Land in OH for Utica Shale Operations Center

December 20, 2011December 20, 2011

Halliburton has just purchased 178 acres in the EastPointe Business Park in Washington Township near Zanesville, Ohio. The company plans to build an operations center at the location servicing companies drilling in the Utica Shale. The new operations center is expected to create 300 jobs within the next three years.

Ohio | Statewide OH | Utica Shale

OH Shale Drilling Permits See Dramatic Increase in 2011

December 13, 2011December 13, 2011

The number of shale gas drilling permits in Ohio has rocketed from virtually none in 2009 and 2010, to 141 in 2011—the vast majority of that in the Utica Shale.

Belmont County | Lease & Royalty Payments | Ohio | Utica Shale

OH Landowner Group Seeks Driller for 45K Utica Shale Acres

November 28, 2011November 28, 2011

The Smith-Goshen Landowners Group in Belmont County, OH currently has 600 members and 45,000 acres of Utica Shale land available for lease. But they’re taking it slow and looking for a lease that will guarantee the safety of their farms and water supplies, according to Larry Cain, chairman of the group. They’re also looking for an even better deal than other landowners in Belmont County recently got from XTO Energy (a subsidiary of Exxon Mobil).

Work on New Ethane Pipeline to Gulf Coast Now Underway in OH

November 28, 2011November 28, 2011

Survey work in central Ohio has already begun on a new ethane pipeline to be built by Enterprise Products Partners. The pipeline, which was recently announced (see this MDN story), will reach from the Marcellus and Utica Shale region in Washington County, PA all the way to Cape Girardeau, MO where it will connect with an existing pipeline to the Gulf Coast. Surveyors for the new pipeline have already turned up in Fairfield County, OH.

Hydraulic Fracturing | Industrywide Issues | Medina County | Ohio | Regulation

Eastern OH Town Bans Fracking on Town-Owned Property

November 23, 2011November 23, 2011

On Monday, Hinckley, Ohio trustees voted to ban the use of hydraulic fracturing on township-owned property.

Belmont County | Energy Companies | Exxon Mobil | Ohio | XTO

Exxon Pays for After Hours Access to OH Property Records

November 21, 2011November 21, 2011

Interest from drilling companies in Eastern Ohio continues to be red hot with respect to the Marcellus and Utica Shales, as proven by how local county offices are overrun with researchers wanting access to property deed records. One such place is the Belmont County Recorder’s office in Belmont, Ohio. One company, Permian Oil (acting as an agent for XTO Energy, a subsidiary of Exxon Mobil) has gone so far as to pay for after hours access.

Landowner Coalition News | Lease & Royalty Payments | Ohio | Trumbull County

Huge OH Landowner Group Close to a Lease Deal for 80K Acres

November 20, 2011November 20, 2011

The Associated Landowners of the Ohio Valley (ALOV) landowner group in eastern Ohio met on Saturday for an update on negotiations with energy companies to lease what may be the largest tract of land offered by a single landowner group in the entire Marcellus and Utica Shale plays. A deal is not yet done, but the president of ALOV, Robert Rea, says they may well have a deal done in the next several weeks.

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

OH Congressman Says Let State Governments Regulate Fracking

November 14, 2011November 14, 2011

Politics in shale gas drilling is an unfortunate fact because the environment has been politicized. But that’s the reality. Anyone who thinks the federal Environmental Protection Agency (EPA) is not a political animal has their head in the sand. From its beginning, MDN has pointed out that the EPA is making a power grab—attempting to regulate oil and gas drilling via the back door by using legislation like the Clean Water Act.

Some on Capitol Hill, like Congressman Bob Latta (R-Ohio) who serves on the House Energy and Commerce Committee, agree. Rep. Latta posted an editorial on the Politico website last night that says, in part:

Mansfield OH Getting Two New Wastewater Injection Wells

November 10, 2011November 10, 2011

Looks like two more injection wells are coming to Ohio. These new wells will be built near Mansfield (Richland County), Ohio and are specifically designed to handle 200,000 gallons of fracking wastewater per day from Marcellus and Utica Shale drilling operations.

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

Companies Target OH Landowners to Buy Royalty Rights

November 7, 2011November 7, 2011

A few weeks ago, MDN called attention to a new trend in the Marcellus and Utica Shale region—companies who want to buy landowners’ rights to future royalties (see this MDN story). It seems to be happening mostly in Ohio at the moment. These companies are offering to purchase a landowner’s potential future royalties for gas wells drilled on their property, paying them an up-front, one-time payment now. Think of those commercials you’ve heard where companies offer to pay lottery winners a lump sum now for the future long-term payouts, or settlements from a lawsuit with payments that stretch over years. That’s essentially what these companies are doing for landowners with leases in the Marcellus and Utica Shales.

Mystery Company Invests $2.14B in Chesapeake Utica Shale JV

November 4, 2011November 4, 2011

The Utica Shale in eastern Ohio, and Chesapeake Energy’s discovery that it contains oil and wet gas in addition to methane, is paying off big-time for the company. Yesterday, Chesapeake announced a major cash infusion from a new joint venture with a mystery/unnamed “international major energy company” to the tune of $2.14 billion. Some $640 million of that will be paid when the deal officially closes, and the balance of $1.5 billion will be paid by the end of 2014.

A third company in the joint venture is EnerVest. The joint venture values the land leased by Chesapeake and EnerVest at $15,000 per net acre. The previous highest deal for Utica Shale leases was Hess—for $8,000 per net acre. The overall deal between Chesapeake, EnerVest and the unnamed company is a bit complicated (see the press release below), but the gist of the matter is that Chesapeake will get enough money to fully fund their Utica Shale drilling program in Ohio, and the overall value of the joint venture means Chesapeake will eventually receive $3.4 billion.

Air Quality | Industrywide Issues | Ohio | Regulation | Statewide OH

Ohio EPA Seeks Public Comment on New Air Permit for Drilling

November 3, 2011November 3, 2011

The Ohio Environmental Protection Agency (EPA) is asking for public comments on a draft permit that controls air emission standards for shale gas drilling. The new standards do not affect the actual drilling and fracking activities because those are regulated by federal rules. The Ohio permit would regulate emissions from generators, dehydration systems and other “peripheral” activities that go on in the drilling process. A copy of the draft permit can be downloaded here.

From the Ohio EPA press release about the new air permit: