Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Monroe County | Mountaineer NGL Storage | NGLs | Ohio
Opposition to Dormant Mountaineer NGL Storage Hub in Monroe, OH
Last fall Mountaineer NGL Storage, a $500 million project in Monroe County to build underground storage for ethane and other NGLs, asked Ohio to cancel a key permit for the project (see Mountaineer Asks Ohio to Cancel NGL Storage Hub Permits). Our understanding is that until PTT Global Chemical makes a final decision to build an ethane cracker in nearby Belmont County, OH, Mountaineer is not ready to proceed. The two projects will move along together. When PTT announces, Mountaineer will reapply for the permit. Yet anti-fossil fuelers actively continue to make a fuss, making untrue statements about the project and its impacts on the region’s environment.
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Ohio Attorney General Dave Yost continues to hammer FirstEnergy Corporation. In November Yost filed a lawsuit to block the collection of $150 million provided for under House Bill (HB) 6, aimed at propping up FirstEnergy’s unprofitable nuclear power plants in the state (see 
Two of three M-U drilling states received permits last week. Pennsylvania scored 10 permits to drill new shale wells. Ohio received 2 permits for Utica wells. West Virginia received no new permits to drill new shale wells.
The Enverus U.S. oil and gas rig count slipped by one to 406 over the past week. The Marcellus play stayed even with 32 active rigs. However, in a good sign, the Ohio Utica picked up 2 new rigs to close the week with 8 active rigs (total of 40 active rigs in the M-U).
FirstEnergy is up to its metaphorical rear-end in alligators. Not only has the Ohio Supreme Court blocked (for now) the collection of annual $150 million payments from the residents of Ohio given to FirstEnergy to prop up its uneconomic nuclear power plants, but multiple (over a dozen) lawsuits have been filed against the company by some of FirstEnergy’s biggest investors alleging fraud that has caused the company’s stock price to plummet.
The Ohio Supreme Court just delivered a decision that affects one particular landowner (and former mineral rights owner), but also has implications for all Ohio landowners and rights owners. And by extension, implications for drillers that pay royalty payments. The Supremes found in Gerrity v. Chervenak that the landowners in the case (the Chervenaks) did enough due diligence when searching for the rights owner who had moved out of the area. The Supremes said the landowner performed the proper steps to reclaim ownership of the severed mineral rights under their land.
Anti-fossil fuelers love to protest things. Fine. Let them protest. This is (still) America. But when antis tip over into illegal acts like blocking legal activities of building pipelines or drilling wells, or when antis tip over into acts of vandalism like destroying equipment, that’s NOT okay. Antis call it “protesting.” We call it criminal behavior. A bill just passed in the Ohio legislature calls such activity what it is–crimes. And now (provided Gov. DeWine signs the bill into law, which is expected), such miscreants will pay stiff fines and in some cases do jail time for their crimes.
By now it’s a cliche to say that 2020 has been an exceptional year–and not in a good way. For the first time in our memory of writing MDN, we witnessed widespread curtailments or “shut-ins” of wells in the Marcellus/Utica during 2020. That is, drillers voluntarily turned the values off and flowed less gas in a bid to (a) not sell the gas at prices that don’t return a profit, and (b) drive up the price of gas (see 
There is an ongoing question of whether or not the Ohio Marketable Titles Act (MTA), which impacts Utica shale rights, can be used to return previously severed mineral rights back to a surface landowner, or whether the MTA is superseded by the Ohio Dormant Minerals Act (DMA). In February 2019, Ohio’s Seventh District Court of Appeals said the MTA *does* still apply to mineral rights. The Seventh Circuit then ruled in a second case in April 2019, reaffirming yet again that yes, MTA applies to mineral rights. The Seventh Circuit ruled in a third case in October 2019 to say YES, the MTA still applies. In April, the Ohio Supreme Court agreed to hear and rule on the matter too (see 
A long-stalled request for permits to build two wastewater injection wells in Belmont County, Ohio has just gotten a boost from the Ohio Supreme Court. Last year MDN told you about New Jersey-based Omni Energy Group and their application to build two new injection wells near St. Clairsville (see