Statewide OH 120 - Marcellus Drilling News

GASFRAC Waterless Fracking Technology Debuts in Utica Shale

May 18, 2012May 18, 2012

Utica debut An unnamed driller in Ohio has asked Canadian company GASFRAC to use its waterless fracking technology to drill two trial wells in the Utica Shale. You may recall that a group of Tioga County, NY landowners with a collective 135,000 Marcellus Shale acres were set to use GASFRAC’s LPG (liquefied petroleum gas) technology to jump start drilling in New York, but the lease and royalty deal with the driller, eCORP, fell through (no fault of GASFRAC, see this MDN story).

Will GASFRAC’s innovative technology do the trick in Ohio’s Utica Shale? There’s some disagreement on that point.

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

Ernst & Young’s Analysis of Ohio Proposed Severance Tax

May 18, 2012May 18, 2012

Yesterday MDN wrote a story about a newly released study by Ernest & Young that purports to show that Ohio’s oil and gas taxes are the lowest in the country, and would remain the lowest even if Gov. John Kasich’s plan to boost those taxes were to be adopted (see this MDN story). MDN stated that we could not find a copy of that study to review the data. Thanks to two intrepid MDN readers, we now have a copy (embedded below).

Carroll County | Chesapeake Energy | Energy Companies | Ohio | Statewide OH

Chesapeake’s Troubles Mean a Slowdown for Ohio

May 17, 2012May 17, 2012

Carroll County, Ohio is starting to feel the negative effects of Chesapeake Energy’s troubles, as noted in a story yesterday in the Cleveland Plain Dealer. Because of recent revelations of debt financing, private hedge funds and other practices by Chesapeake CEO Aubrey McClendon, and a resulting fall in Chesapeake’s stock price and credit rating, drilling industry activity in Carroll County has slowed down—a lot.

Industrywide Issues | Ohio | Statewide OH | Taxation

New Study Says Ohio’s Gas Severance Tax Lowest, Even If…

May 17, 2012May 17, 2012

A new study released by the accounting firm Ernst & Young says that even if Ohio Gov. John Kasich gets his way and boosts the severance tax in the state on oil and gas drilling, Ohio’s severance tax rate would still be less than other states. Kasich wants to rob Peter to pay Paul, taking even more money from energy companies and landowners in the form of higher severance taxes in order to reduce the state income tax for everyone.

Apparently the Ohio Business Roundtable is in Kasich’s hip pocket because they are the ones who commissioned the study. This is the first time MDN has ever heard of a “business group” who wanted higher taxes.

MDN Analysis of Rig Counts in Marcellus/Utica

May 15, 2012May 15, 2012

Drilling rig counts are closely watched as an indicator of where, and how much, drilling is happening in a given geography. Last Friday, Baker Hughes reported that rig counts for Pennsylvania continue to decline from a year ago, while the numbers for West Virginia are going up. But that doesn’t quite tell the whole story.

Advice to Landowners About Interstate Pipelines

May 15, 2012May 15, 2012

Let’s be honest. Using eminent domain to force landowners to allow interstate pipelines to be run across their property is a bad idea. At least it is in MDN’s opinion. Some pipeline companies have sought and have been awarded public utility status, and that status allows them to use eminent domain to grab property to run pipelines. It’s disgusting. They are not public utilities in the way a power company is a utility that needs to put up electric polls.

Two lawyers from Columbus, Ohio caution landowners to get a second opinion when it comes to negotiating to have pipelines runs across their property, like the ATEX Express ethane pipeline that’s currently being built across Ohio. They also counsel that although eminent domain can force landowners to allow a pipeline, landowners still have at least some rights under eminent domain.

Industrywide Issues | Ohio | Statewide OH | Wastewater

Ohio Dem Wants Feds to Investigate Injection Wells

May 15, 2012May 15, 2012

Here’s a new twist on the “fracking contaminates ground water supplies” argument that MDN has not seen before…

Energy Companies | Marathon Oil | Ohio | Statewide OH | Utica Shale

Marathon Petroleum’s Plans for Utica Shale Oil

May 11, 2012May 11, 2012

oil drops Marathon Petroleum President Gary Heminger, speaking at the Hancock County Republican Party Century Club Dinner in Ohio on Thursday, predicted a great future for Utica Shale oil. He also offered some interesting insights into how much, and where, Utica Shale oil Marathon will be refining this year and next.

Industrywide Issues | Ohio | Regulation | Statewide OH | Utica Shale

Ohio DNR Hires 70 New Field Inspectors for Utica Shale

May 9, 2012May 9, 2012

In yet another sign that Utica Shale drilling for oil and gas is rapidly expanding in Ohio, the Ohio Department of Natural Resources (ODNR) has hired and is training 70 new field inspectors to help with the well permitting and reviews.

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

OH Legislators Vote to Approve New Drilling Rules

May 8, 2012May 7, 2012

The Ohio Joint Committee on Agency Rule Review, a committee made up of five Ohio State Representatives and five Ohio State Senators, has approved new rules for constructing oil and gas wells in the state. They also approved new guidelines for Utica and Marcellus Shale drilling permits.

Industrywide Issues | Ohio | Regulation | Statewide OH

OH Bill Requires 3rd Party Verification of O&G Production

May 7, 2012May 7, 2012

Two Ohio state Democrat representatives have introduced a new bill that would require an “audit clause” to be recorded in every oil and gas drilling lease in the state. The bill is an effort, according to its authors, to insert third party verification of production numbers reported by companies so landowners don’t have to rely on the driller’s “honesty” in reporting those numbers.

Economic Impact | Industrywide Issues | Ohio | Statewide OH

Gov. Kasich: Shale Drilling is Good, but OH Needs Diversity

April 30, 2012April 30, 2012

Speaking at the Eastern Ohio Development Alliance’s annual meeting last Friday, Ohio Gov. John Kasich said that although he supports shale oil and gas drilling in the Marcellus and Utica Shales in his state, he doesn’t want to put all of Ohio’s economic eggs in one basket. He said the state needs to focus on more than just the energy sector to help elevate Ohio out of its current economic doldrums.

Industrywide Issues | Ohio | Statewide OH | Taxation | Utica Shale

No O&G Severance Tax Hike in Ohio This Year

April 26, 2012April 26, 2012

It looks like a severance tax hike for drillers in Ohio won’t happen this year. Yesterday, the Ohio House passed a “sweeping package of spending and policy initiatives” from Ohio Gov. John Kasich. The one thing not among the package? Kasich’s proposal to hike the severance tax for Utica Shale oil and gas drillers.

Ohio | Statewide OH | Utica Shale

Ohio Utica Shale Map Creates a Big Buzz

April 25, 2012April 25, 2012

The Ohio Department of Natural Resources (ODNR) recently released an updated map showing their best guess as to where the best prospects are for Utica Shale drilling in the state (a copy of the map is embedded below). And boy oh boy, is that map creating a buzz! Some residents are excited that their property may now become highly desirable to be leased for drilling, and other residents are discouraged that their properties, once thought desirable, may be less so now.

Anadarko | Energy Companies | Ohio | Statewide OH

Anadarko Utica Shale Update: Strong Initial Results

April 20, 2012April 20, 2012

Anadarko provided an update on its Utica Shale drilling program yesterday, saying that although it’s still very early, the “strong initial results are encouraging.” To date Anadarko has drilled and is producing from three wells in the Utica Shale. Anadarko has 390,000 leased acres in the Utica, most of it in eastern Ohio. In addition to the update, they included a map showing where they have leased acreage, where the three wells are they have drilled, and where they plan to concentrate their drilling activity (map embedded below).

From the Anadarko press release:

Ohio | Statewide OH

Fracktivists to Descend on Columbus, OH in June

April 13, 2012April 13, 2012

Woodstock With dire claims that Ohio is “poised to become a sacrifice zone” and will experience “dead creeks” like those “in Pennsylvania and West Virginia” and “wells poisoned to the point where residents can’t drink from their faucets” if widespread hydraulic fracturing is allowed to happen in the state, the group 350.org is convening a ~~hippie-fest~~ meeting in Columbus June 14th-17th, called “Don’t Frack Ohio.” Luminaries like Josh Fox will attend—no doubt pedaling his latest propaganda efforts (Gasland Deux) to what will be a receptive (if not mind-altered) crowd. Here’s your personal invite: