Ohio

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    Congressman Tim Ryan (D-OH) Wants Feds to Regulate Fracking

    U.S. Rep. Tim Ryan, Democrat from Ohio

    U.S. Rep. Tim Ryan, Democrat from the 13th District in Ohio, signed up last week to co-sponsor a new bill called the Fracturing Responsibility and Awareness of Chemicals, or FRAC, Act. In fact, all 61 co-sponsors of the bill were Democrat–no Republicans–which is a big, fat, red flag. A totally partisan bill. Democrats have been trying this trick since 2009. It’s nothing new. Supposedly the FRAC Act will require “transparency,” forcing frackers to disclose which chemicals are used in hydraulic fracturing. The thing is, drillers already disclose that information! What the FRAC Act is REALLY all about is federal regulation of the oil and gas industry by doing something that has never been done before: subjecting oil and gas drilling to the federal Safe Drinking Water Act. We’re tired of revisiting this topic, but feel compelled to set the record straight because of this renewed attack on the industry. Fact: There is no “exemption” from the Safe Drinking Water Act for drillers–they never were under the Act to begin with! The U.S. Constitution vests the power to regulate oil and gas activity with the individual states–NOT with the federal government. What Ryan and his fellow libs are trying to do in forcing oil and gas under federal regulation is a bastardization of the Constitution–an erosion of states’ rights. Which is why Ryan needs to be voted out of office. Shame on him. He’s from one of the biggest stars in the shale firmament–the Ohio Utica. And yet he’s pushing to kill it. There’s nothing “common sense” about the FRAC Act, as Ryan claims. It’s all “nonsense.” Here’s the latest attack by Dems at the federal level, a group that wants to kill the shale miracle in this country…
    Read More “Congressman Tim Ryan (D-OH) Wants Feds to Regulate Fracking”

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    2 Horiz. Clinton Sandstone Wells Drilled in Ashtabula County, OH

    Ashtabula County, OH

    Once upon a time the Clinton Sandstone layer was the most drilled rock layer in Ohio. Then the Utica/Point Pleasant came along and it seemed as if everybody forgot about the Clinton. Previously the Clinton was drilled vertically, or conventional-only. But what if you drilled the Clinton horizontally, like you do in the Utica? You might get a “Utica-lite” well, as we commented back in 2015 (see Ohio Clinton Sandstone Horiz Wells on the Increase – Utica-Lite?). EnverVest, among others, has experimented with horizontal drilling in the Clinton Sandstone (see EnerVest Likes Clinton Sandstone “Utica-lite” Oil Wells in OH). According to drillers who have experimented in the Clinton, drilling a horizontal Clinton well is anywhere from 3-10 times more expensive than a conventional well, but it produces anywhere from 7 to 20 times more oil, which is typically the hydrocarbon companies drill for in the Clinton. Today we spotted a story about a driller we had not previously heard of (which is rare), currently drilling two horizontal Clinton wells in Ashtabula County, OH. Here’s an update on drilling in the Clinton Sandstone in Ohio…
    Read More “2 Horiz. Clinton Sandstone Wells Drilled in Ashtabula County, OH”

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    BLM Blocks Eclipse from Completing Utica Well in Wayne Natl Forest

    Melissa Hamsher, Eclipse Resources

    Something pretty cool took place yesterday in Washington, D.C. MDN friend Melissa Hamsher, vice president for Health, Safety, Environmental and Regulatory with Eclipse Resources (headquartered in State College, PA), testified before the U.S. House of Representatives’ Resources Committee. Melissa has been a speaker on several panels MDN editor Jim Willis has moderated over the years at the annual Oil & Gas Awards Industry Summit in Pittsburgh. The uncool thing is what Melissa was in D.C. to testify about, which is that the Bureau of Land Management (BLM), after auctioning off parcels in the Wayne National Forest (WNF), is now stopping Eclipse from drilling under those parcels. Eclipse had already bundled some of the BLM parcels they won at auction with neighboring private land, setting up a drill pad on private (not public) land when the BLM stepped in and stopped Eclipse’s first under-construction Utica well in WNF, claiming the BLM needs to conduct a “new environmental analysis” before drilling can continue. At every turn BLM, while pretending to act in good faith by conducting auctions of WNF land, has acted in bad faith to block Eclipse’s progress after winning those auctions. Melissa shined a bright light on the sleazy tactics used by BLM at a Congressional hearing exploring the “unfair weaponization of the National Environmental Policy Act”…
    Read More “BLM Blocks Eclipse from Completing Utica Well in Wayne Natl Forest”

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    OH Supremes Blow It, Allow Youngstown Frack Ban on May Ballot

    Although Youngstown, OH voters have voted down various versions of a proposed frack ban law six previous times, on Tuesday the Ohio Supreme Court voted 5-2 to allow a seventh such ballot measure to appear before Youngstown voters on May 8. The kicker: This seventh ballot measure is even worse–far more radical–than the previous frack ban measures voted down. The new ballot measure makes the illegal, legal (see Youngstown Antis Seek to Legalize Anarchy with 7th CELDF Petition). In addition to the usual no fracking, no pipelines pablum, this latest ballot measure has language that makes it legal to break the law. If the ballot measure passes, and if an anti got it into her head to sit in front of a bulldozer that was about to clear ground for a wellpad, or dig a trench for a pipeline, the police would not be able to arrest and remove the law-breaking anti. It would be within her rights to sit there and block legal, legitimate activity–all in the name of saving the planet. That’s the insanity the Supremes, in their “wisdom,” are allowing to go before voters in two weeks. It would be institutionalized anarchy. Of course the ballot measure doesn’t stand a chance of passing, which is good. But it does cause angst, and it causes the adults who live in Youngstown to once again have to spend time and money to defeat it. We wonder, will we be writing about the 25th ballot measure to come before voters after 24 of them have been voted down–say in five years from now? When will Ohioans say “enough” to the CELDF and their radical agitation and send them packing?…
    Read More “OH Supremes Blow It, Allow Youngstown Frack Ban on May Ballot”

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    XTO Selling 9,400 OH Utica Acres in Monroe & Washington Counties

    XTO Energy, the shale drilling arm of Exxon Mobil, wants to sell ~9,400 Ohio Utica Shale acres in Monroe and Washington counties. Have no fear, XTO isn’t going anywhere. According to XTO’s website, the company currently owns 82,000 acres of Utica Shale leases in Belmont and Monroe counties. The tiny 9,400-acre sale appears to us to be selling off acreage in areas that don’t fit with XTO’s future drilling plans. XTO maintains a regional office in Belmont County. According to the sale announcement appearing on Oil & Gas Asset Clearinghouse, there are potentially 40 drilling locations on the 9,400 acres. The acreage has dry gas potential. The sale is not exactly an auction, but it is timed and uses bids. XTO is accepting sealed bids on the property through May 17. Here’s a copy of the listing, along with a flyer…
    Read More “XTO Selling 9,400 OH Utica Acres in Monroe & Washington Counties”

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    Still No Deal on Property Next to PTT OH Ethane Cracker Site

    Homeowners who live near the location of a possible ethane cracker plant in Belmont County, OH are running out of time to negotiate a deal to sell their properties. Living next door to a cracker plant is not anyone’s idea of paradise. There will be noise, and smells and (yes) some air pollution coming from the plant. Best to sell now before the plant begins construction. However, representatives for PTT Global Chemical which will build the plant (IF it gets built), say they already have all the land they need for the facility (see PTT Global Buys Land for Belmont, OH Ethane Cracker Plant). Not needing the land puts PTT in a good negotiating position. There are 10 homes in the general vicinity of the proposed cracker plant whose owners want to sell. PTT says they’ve offered the homeowners 125% of fair market value for their homes. The lawyer representing the homeowners says the valuations are not accurate. However, it’s far from being a stand-off. There is no malice or vitriol. It sounds to us like both sides think a deal will get done. It just boils down to finalizing numbers. Here’s the latest on real estate for the proposed Belmont cracker plant…
    Read More “Still No Deal on Property Next to PTT OH Ethane Cracker Site”

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    MarkWest Energy Settles EPA Air Pollution Case for $5.6 Million

    NOTE: A previous version of this post reported a total price of $3.2 million, now changed to account for the addition of an extra $2.4M for required SEPs. See below.

    Two MarkWest Energy subsidiaries, MarkWest Liberty Midstream Resources and Ohio Gathering Co., have been forced into signing a settlement of claims brought by the U.S. Dept. of Justice, Environmental Protection Agency, and the Pennsylvania Dept. of Environmental Protection over charges of releasing too much air pollution from facilities they operate throughout eastern Ohio and western Pennsylvania in the Utica and Marcellus shale. The agreement signed yesterday by MarkWest calls for the company to spend $2.6 million to install and operate new technologies to minimize VOC (volatile organic compounds) emissions at their facilities–19 major, standalone facilities and 273 smaller facilities. The company will also implement three supplemental environmental projects (SEPs) for an additional $2.4 million. In addition, MarkWest will pay the government a $610,000 fine (i.e. shakedown). Total cost to get the government of out their hair: over $5.6 million. The government claimed MarkWest had not applied for nor complied with necessary permits. But the real disaster, the thing that sent government bureaucrats into fits, is that MarkWest failed to file proper paperwork required under the Clean Air Act. However, the settlement didn’t all go the government’s way. In agreeing to the settlement, MarkWest “expressly denies and does not admit any liability to the United States or PADEP arising out of the conduct, transactions or occurrences alleged in the complaint,” which means antis can’t file frivolous lawsuits against MarkWest over air pollution…
    Read More “MarkWest Energy Settles EPA Air Pollution Case for $5.6 Million”

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    New Cabot Drilling Program Kicks Off This Week in Ashland, OH

    As we have reported since last December, Cabot Oil & Gas, long-known for the incredible amount of Marcellus natural gas they produce out of a single northeastern Pennsylvania county (Susquehanna), is eyeing north central Ohio as a potential spot for “what’s next” after the Marcellus (see Cabot O&G Considers Drilling in Ashland County, OH). Cabot locked up leases and is planning to drill a number of test wells in not only Ashland, but also Holmes, Knox, Richland and Wayne counties in the Buckeye State (see New Details Emerge on Cabot’s Shale Plans in Central Ohio). The company doesn’t know exactly what it will find–gas, NGLs or perhaps even oil (see Just What is Cabot Looking for in Ohio – NatGas, Oil or NGLs?). Cabot is about to find out. Beginning tomorrow (Tuesday), Cabot says they will start to push dirt around and build their very first well pad in Ashland County. If all goes according to plan, Cabot will spud (begin to drill) the well itself in about three weeks. Plans for a second well, also located in Ashland County, are already in the works and will come along after the first well is drilled…
    Read More “New Cabot Drilling Program Kicks Off This Week in Ashland, OH”

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    Rover Pipeline Still Waiting on FERC to Start Up Michigan Segment

    Last Friday, Energy Transfer Partners asked the Federal Energy Regulatory Commission (FERC) for permission to start up service along another major chunk of it’s massive Rover Pipeline (see Rover Pipe Asks FERC for OK to Open New Segments in OH, MI). ET wants to begin service along a 100-mile segment of Rover in northwest Ohio and in Michigan. ET also asked for permission to start up a segment of Mainline B in Crawford and Wayne counties (OH). The 100-mile segment through Michigan, called the Market segment, completes the pipeline, connecting to the Vector Pipeline in Livingston County, Michigan, which will allow Utica/Marcellus gas to flow all the way to the Dawn Hub in Ontario, Canada via Vector. In last Friday’s request, ET asked FERC to hurry it up because customers are desperate (our words) to get their Utica/Marcellus gas to market. ET requested a starting date no later than April 25–next Wednesday. Unfortunately there’s been no word, as of today, from FERC. The silence is deafening…
    Read More “Rover Pipeline Still Waiting on FERC to Start Up Michigan Segment”

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    Lordstown, OH Power Plant Investor Tries to Block 2nd Plant

    Be careful who you sell your energy projects to. That’s the lesson we take away from a spat that’s developed in Trumbull County, OH over a proposed second Utica gas-fired electric plant in Lordstown. Clean Energy Future (CEF) is currently building the Lordstown Energy Center, and has been since June 2016 (see Lordstown Energy Center Breaks Ground on $890M Electric Plant). CEF then proposed, and got the Ohio Power Siting Board (OPSB) to approve, plans to build a second Utica-fired plant next door to the first (see Ohio Approves 2 Utica-Fired Power Plants in Guernsey, Trumbull Counties). As is typically the case, CEF (the builder) sold most of the first project to investors. In this case the new majority owner for the first power plant is Macquarie, an international equity firm. CEF sued Macquarie in September saying the company is preventing CEF from building the second plant. Macquarie says if a second plant gets built in the same location, the first plant (now owned by Macquarie) will take a $6.7 million hit on earnings each year. Macquarie wants CEF to pay them that amount annually when/if the second plant gets built. To which CEF says, “They’re looking for an extortion payment.” CEF is threatening to sue Macquarie for $100 million for delaying construction. A judge will now decide if construction can proceed and whether or not CEF will need to make annual payments to Macquarie…
    Read More “Lordstown, OH Power Plant Investor Tries to Block 2nd Plant”

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    Duke Energy Refiles 13-Mile Cincinnati NatGas Pipeline Plan

    Duke Energy needs to replace an aging pipeline, built in the 1950s, near Cincinnati, OH–or some people in Cincy will have to go without natural gas. Duke has proposed a 13-mile, 20-inch pipeline along two potential routes. The project is called the Duke Central Corridor Extension Gas Pipeline. Both of the proposed routes are opposed by antis, including a group calling themselves NOPE–Neighbors Opposing Pipeline Extension. We call them DOPEs–Dummies Opposing Pipeline Extensions. Will the DOPEs volunteer to shut off the natural gas to their homes and businesses if the pipeline doesn’t get built? Not on your life! With just weeks before a final approval by the Ohio Power Siting Board (OPSB), Duke asked the state to push the pause button last August (see Duke Energy’s 13-Mile Cincinnati NatGas Pipeline Put on Hold). At the time, Duke said they had “potential concerns” about building the pipeline on a property close to a Superfund site in Reading, should they build it along the alternate route. Those concerns have now been addressed and the project is unpaused and moving forward once again. Duke recently refiled their application to build the new pipeline along the alternate route, with a few tweaks. The usual suspects are turning up to oppose it all over again…
    Read More “Duke Energy Refiles 13-Mile Cincinnati NatGas Pipeline Plan”

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    Mr. Bennett Goes to Washington – Former OOGA VP Joins Trump Team

    One of “our own” (from the Marcellus/Utica industry) is heading to Washington, D.C. to work for the Trump Administration, in the Dept. of Energy. Shawn Bennett, formerly Executive Vice President for the Ohio Oil and Gas Association, is heading to the swamp to become Deputy Assistant Secretary for Oil and Natural Gas. That is, Shawn will head up the office of oil and natural gas at the DOE. How cool is that?! We sincerely hope he doesn’t get infected with swamp fever and instead works hard to promote the many benefits of fossil fuels. We’re sure he’ll be a huge success! Here’s the official announcement…
    Read More “Mr. Bennett Goes to Washington – Former OOGA VP Joins Trump Team”

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    Rover Pipe Asks FERC for OK to Open New Segments in OH, MI

    Click for larger version

    On Friday Energy Transfer Partners asked the Federal Energy Regulatory Commission (FERC) for permission to start up service along another major chunk of it’s massive Rover Pipeline. ET wants to begin service along a 100-mile segment of Rover in northwest Ohio and in Michigan. ET also asked for permission to start up a segment of Mainline B in Crawford and Wayne counties (OH). The 100-mile segment, called the Market segment, completes the pipeline as it connects to the Vector Pipeline in Livingston County, Michigan. ET says 99% of all pipeline for Rover is now in the ground and done. Some 83% of underground horizontal direction drilling (HDD) required to install small portions of the pipeline under creeks, rivers, bridges, roads, etc. is now done. It won’t be long now until Rover is done done. Here’s the latest great news that most of the rest of the pipeline is now ready to begin service…
    Read More “Rover Pipe Asks FERC for OK to Open New Segments in OH, MI”

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    Columbia Asks FERC to Approve OH/WV Buckeye XPress Pipe Project

    Buckeye XPress Pipeline map – click for larger version

    In January 2017, TransCanada’s Columbia Pipeline subsidiary launched an open season for the Buckeye XPress (BXP) pipeline project (see Columbia Pipeline Launches Open Season for New M-U Project). BXP will expand service along the Columbia Gas Transmission pipeline from Ohio (and PA and WV) to send even more Marcellus/Utica gas to the Gulf via the interconnection at Leach, Kentucky. Columbia launched a non-binding open season to gauge interest in the project, which will use looping and beefed up compressor stations to increase capacity another 700 million cubic feet (MMcf) per day along the existing pipeline Columbia pipeline system. The open season (time when shippers express interest and sign contracts) was a success. But these things take time. On March 26, a year and two full months after the open season, Columbia filed an application with the Federal Energy Regulatory Commission (FERC) seeking permission to build the project. The project includes building 66 miles of new pipeline to replace old pipeline in Ohio’s Vinton, Jackson, Gallia and Lawrence counties, as well as pipeline replacement in West Virginia’s Wayne County. Below is the lowdown on the BXP application…
    Read More “Columbia Asks FERC to Approve OH/WV Buckeye XPress Pipe Project”

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    Trumbull Co. Residents Rally to Oppose 3 New Injection Wells

    Town of Brookfield – Trumbull County, OH

    Last December MDN told you about three proposed new injection wells planned for the Town of Brookfield, in Trumbull County, OH (see 3 More Injection Wells Coming to Trumbull County, OH). Highland Field Services (subsidiary of Seneca Resources/National Fuel Gas Company) brought two new injection wells online in Brookfield last year. Shortly after the two wells went online, Highland then floated a plan to build three more wells in close proximity to the existing two, a plan opposed by many in the town. Even though Brookfield Township trustees issued a “no more injection wells” letter to Gov. John Kasich and the Ohio Dept. of Natural Resources (ODNR), the ODNR ignored the letter and two weeks ago issued the necessary permits to build the three additional new wells (see ODNR Grants Permits for 3 New Injection Wells in Trumbull County). Last Thursday a group of town residents staged a rally against the three new injection wells. Do they have valid concerns?…
    Read More “Trumbull Co. Residents Rally to Oppose 3 New Injection Wells”

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    Latest OH Wayne Natl Forest Auction a Bust – Leases Go for $3/Acre

    The fifth auction by the federal Bureau of Land Management (BLM) of federally-owned acreage in Wayne National Forest (WNF) to allow shale drilling was, in a word, a bust. The first four auctions offered up a total of 2,396 acres in total, and sold for over $8 million (average of $3,354 signing bonus per acre). The fifth auction of two smaller parcels–39.6 acres in Monroe County, and 305.8 acres in Noble County–sold for a piddly $2 and $3 signing bonuses per acre, respectively. What in the world happened? MDN reader and friend Charles Winslow, owner of The Wells Inn in Sistersville, WV, writes the INNformer publication. Charles recently published an excellent article about the recent auction and its lackluster results in the INNformer. He offered MDN the opportunity to reprint it (below). Charles finds there are a number of factors for the low auction price–but primarily the blame can be laid at the foot of regulatory uncertainty…
    Read More “Latest OH Wayne Natl Forest Auction a Bust – Leases Go for $3/Acre”