PA, OH Bills Would Prop Up Failing/Expensive Nuclear Power Plants

New York State is already doing it, Pennsylvania is actively considering doing it, and now, Ohio has caught the contagion too. The “it” we’re talking about is soaking electric rate payers to pump more money into the coffers of big corporations so they can keep uneconomic and financially failing nuclear electric generating plants operating. Both PA and OH lawmakers have floated plans to soak rate payers in their respective states.
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Ohio Court Rules Marketable Title Act Applies re Mineral Rights

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rights, can be used to return previously severed mineral rights back to a surface landowner, or whether the MTA is superseded by Ohio Dormant Minerals Act (DMA). In February, Ohio’s Seventh District Court of Appeals said the MTA *does* still apply to mineral rights (see OH Court Says Marketable Title Act Applies to O&G Rights). The Seventh Circuit recently ruled in a second case reaffirming yet again that yes, MTA applies to mineral rights.
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ODNR Says to Expect ~350 New Utica Wells Per Year Next Few Years

We spotted some interesting comments made by Rick Simmers, chief of Ohio’s Division of Oil and Gas Resources (part of Ohio Dept. of Natural Resources, or ODNR), at the recent Utica Midstream conference in North Canton. Rick recounted the rapid, recent history of Utica drilling in the state, coming from nothing less than a decade ago to now having over 2,500 Utica wells drilled and producing. He also pulled out the crystal ball for a prediction of how many new Utica wells will get drilled both this year and next.
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Texas Eastern’s TEAL Phase II Goes Online – Feeding NEXUS

Last week Enbridge, owners of the Texas Eastern Transmission Company (Tetco) pipeline, filed documents with the Federal Energy Regulatory Commission showing that Phase II of its Texas Eastern Appalachian Lease (TEAL) Project began service on April 1st. The TEAL project connects to and feeds Utica Shale gas to the NEXUS pipeline.
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Utica Shale Industry has (So Far) Invested $70B in Ohio

Did you know that at least $70 billion has been spent in Ohio on drilling and pipelines and other infrastructure to support the Utica Shale industry since 2011? No, we didn’t either. That is an astounding number! How about this number: Ad valorem (i.e. property) taxes paid by the shale industry from 2010 through 2018 have totaled ~$132 million. That’s money that goes to fund local schools and towns. Amazing!
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Rover Pipe Paid $73M in Property Taxes Last Year, $180M This Year

One of the arguments often heard from those who oppose natural gas pipelines is that “nobody” benefits from the pipeline except the sleazy Big Corporation that builds and profits from it. A single pipeline running through Ohio and Michigan puts that lie to rest. Rover Pipeline, built and operated by Energy Transfer, paid out some $73 million in local property taxes in 2018 when the pipeline first began operation. For 2019, with the full pipeline operating at 100% capacity for the entire year, Rover says they will pay out ~$180 million in property taxes! Taxes that fund schools, roads, first responders and other worthy causes.
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Ascent Resources Issues Brief 2018 Update, 2019 Guidance

Yesterday Ascent Resources, a company founded by Aubrey McClendon after he left Chesapeake Energy, issued a (very) brief recap of what happened in 2018, and a look ahead (“guidance”) at what the company expects to accomplish in 2019. The update is brief–cherry-picking highlights to share–because it can be. Ascent’s stock is not publicly traded, so they don’t have to provide full financial updates (except to their investors). Ascent is a big and important driller in the Utica, so *any* information they share is useful and of interest.
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New Study: 45% of U.S. Natural Gas Will Come from M-U by 2040

Yesterday IHS Markit released a study commissioned by Shale Crescent USA and JobsOhio that finds natural gas produced in the tri-state region of Ohio, Pennsylvania and West Virginia will be 45% of the nation’s production by 2040, up from 31% this year. This is truly big news with lots of ramifications.
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Williams & Canada Pension Plan Form $3.8B JV in Marcellus/Utica

The Canadians are coming! The Canadians are coming! Actually, they’re already here. Last summer we brought you the bombshell news that Encino Acquisition Partners (EAP) had purchased all of Chesapeake Energy’s Ohio Utica assets (see Stop Press: Chesapeake Sells ALL of its Ohio Utica Assets for $2B). What’s not obvious in that headline is that the Canada Pension Plan Investment Board (CPPIB) is Encino’s joint venture partner and put up virtually all of the money, and owns 98% of EAP. CPPIB is doing it again, this time buying a significant stake in Ohio Utica (and Marcellus) pipelines.
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Ohio O&G Industry Puts Out Call for More Workers

The “great crew change” is taking place in the oil and gas industry in general, and in the Marcellus/Utica in particular. Older workers are nearing retirement and exiting the industry in increasing numbers, and the industry isn’t attracting enough newer workers to fill the ranks. According to the Ohio Oil & Gas Association, the need for new workers in Ohio’s O&G industry is pressing. Everything from welders and truckers to people working with technology.
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Equitrans Buys 2 Pipeline Systems in Marcellus/Utica for $1B

Equitrans Midstream, which used to be called EQT Midstream, yesterday announced they have cut their first big deal since separating from EQT last year. Equitrans is buying a 60% stake in Eureka Midstream, a 190-mile pipeline system in Ohio and West Virginia serving both the Marcellus and Utica, and a 100% stake in the tiny 15-mile Hornet Midstream, a gathering system in WV that connects to Eureka.
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OH Judge Tosses AG’s Lawsuit Against Rover Pipe Enviro Violations

In Nov. 2017 the Ohio Attorney General’s office under then-AG Mike Dewine (RINO swamp dweller, now governor) sued Energy Transfer at the prompting of the Ohio EPA claiming the company’s Rover Pipeline project was guilty of “polluting state waters while constructing a natural gas pipeline across Ohio” (see OH EPA Director Manipulates Atty General to Sue Rover Pipeline). A Stark County judge on Monday threw out the case.
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Ohio Utica O&G Production Rockets in 4Q18 – Top 25 Wells

The Ohio Dept. of Natural Resources (ODNR) issued fourth quarter 2018 numbers for Utica shale oil and gas production yesterday, and wow! Both natural gas and oil production rocketed upward. Natgas production was up 32% over the same period last year, to a new all-time high of 663.5 billion cubic feet (Bcf), and oil production hit 5.8 million barrels, up 39% over last year’s 4Q.
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Encino Says They’ll Do it Better in the Utica than Chesapeake Did

Last Friday MDN reported that Encino Energy CEO Hardy Murchison and COO Ray Walker (formerly of Range Resources) spoke at the Ohio Oil & Gas Association (OOGA) 72nd Annual Meeting in Columbus (see Encino Belle of the Ball at OOGA’s 72nd Annual Meeting). We have two more reports on their talk that mentions things not covered in the first report.
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Encino Belle of the Ball at OOGA’s 72nd Annual Meeting

The Ohio Oil & Gas Association (OOGA) is currently holding their 72nd Annual Meeting in Columbus, Ohio. U.S. Vice President Mike Pence will address the event today. Cool! Kallanish Energy is at the event. They report that Encino Energy, which bought out all of Chesapeake Energy’s considerable Ohio Utica assets last year, was the “center of attention” yesterday.
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