Statewide OH 121 - Marcellus Drilling News

Chesapeake’s First Ohio Utica Shale Production Numbers

April 3, 2012April 3, 2012

conventional v unconventional gas drilling Chesapeake Energy has filed their first production report with the Ohio Department of Natural Resources (ODNR) for nine wells they drilled in the Ohio Utica Shale/Point Pleasant formations for 2011. A copy of the report is embedded below. The big news is that a single well in Harrison County—in production for just six months of 2011—produced 1.5 billion cubic feet of natural gas.

That single well was 2 percent of the state’s entire natural gas production for all of 2011. Put in perspective, Ohio has 49,000 conventional natural gas wells in production. That one well is producing an average of 300 times more natural gas than a conventionally drilled well. Behold the power of hydraulic fracturing.

Economic Impact | Industrywide Issues | Ohio | Statewide OH | Utica Shale

Ohio Petroleum Council Calls Utica/Marcellus “Game Changer”

April 3, 2012April 3, 2012

Terry Fleming, executive director of the Ohio Petroleum Council, recently visited the offices of The Daily Jeffersonian newspaper to talk about Utica and Marcellus drilling in the state. Among his comments were predictions about just how big the economic impact of shale drilling will become in Ohio over the next few years:

Big Economic Impact of Midstream Projects in OH & PA

April 3, 2012April 3, 2012

A pair of stories about how the midstream is transforming western Pennsylvania and eastern Ohio recently ran in the Youngstown, OH The Business Journal. Midstream refers to the infrastructure that gets natural gas to market, including pipelines and processing plants. Right now and for the foreseeable future, spending on midstream projects in Ohio is likely larger, from an economic impact standpoint, than exploration and production.

Industrywide Issues | Ohio | Statewide OH | Taxation

OOGA Comes Out Swinging Against Kasich Tax Proposal

March 28, 2012March 28, 2012

The Ohio Oil and Gas Association (OOGA) issued a press release on Monday taking Ohio Gov. John Kasich to task for his proposal to slap a severance tax increase on the nascent Utica Shale drilling industry and use the proceeds to give taxpayers an income tax reduction. The new tax increase on drillers has been tentatively removed from budget discussions, but OOGA believes Kasich won’t let it rest and will likely try to resurrect it.

From the OOGA press release:

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

Who’s Drilling Where (and How Much) in Ohio’s Utica Shale

March 26, 2012March 26, 2012

score card In one of the best “round up” articles MDN has seen, journalist Bob Downing from the Akron Beacon Journal gives a rundown of who’s drilling where in Ohio’s Utica Shale. From the introduction of the article:

Hydraulic Fracturing | Industrywide Issues | Ohio | Statewide OH

OH Enviro Groups Warn Against Water Withdrawals for Fracking

March 26, 2012March 26, 2012

With the rapid expansion of natural gas drilling in Ohio’s Utica Shale comes a need for water used in the hydraulic fracturing process. Each well drilled can use upward of five million gallons of water. Some it comes from recycled wastewater from other fracking operations, but there’s still an ongoing need for water.

Williams Buys Caiman Eastern Midstream for $2.5 Billion

March 20, 2012March 19, 2012

Williams announced yesterday that it will buy Caiman Energy subsidiary Caiman Eastern Midstream for $2.5 billion. Caiman Midstream has a major presence in the wet gas area of the Marcellus and Utica Shale play. The acquisition will give Williams a major pipeline gathering network in northern West Virginia, southwestern Pennsylvania and eastern Ohio, along with two processing facilities and a fractionator. Williams says by 2020 the Caiman system will be gathering more than 2 billion cubic feet per day of natural gas along with 300,000 barrels per day of natural gas liquids and condensate.

In addition to the acquisition, the Caiman Energy parent company will partner with Williams in a new joint venture to further develop new midstream infrastructure in the Utica Shale. From the Williams press release:

Ohio | Statewide OH

Tips for Ohio Landowners with Old Mineral Leases

March 20, 2012March 19, 2012

A helpful article in The Marietta Times helps Ohio landowners better understand the complicated issue of old mineral leases signed decades ago that may still be in force. Before landowners can sign a new lease, the old claims must be officially removed.

The article advises landowners to get a lawyer’s assistance. Leases are often reassigned to new companies–some leases have been reassigned more than a dozen times. In order to get a release, you must first track down the current company that holds the lease, and then get them to sign off.

Industrywide Issues | Ohio | Statewide OH | Taxation

Ohio House Tells Kasich “Not so Fast” with New Severance Tax

March 19, 2012March 19, 2012

The Ohio House of Representatives is telling Gov. John Kasich, in essence, “not so fast” with your severance-tax-increase-on-drillers-to-give-everyone-a-tax-cut plan.

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

Ohio Proposal for Revamped Severance Tax, New Impact Fee

March 15, 2012March 15, 2012

new taxes ahead As MDN reported last week, Ohio Gov. John Kasich introduced a shale gas and oil severance tax overhaul yesterday. The leaked details from last week were correct—but we now have the full proposal (embedded below). Gov. Kasich is tying a revamped severance tax to lowering income taxes for all Ohioans—by up to $1 billion over five years.

Industrywide Issues | Ohio | Processing Plants | Regulation | Statewide OH

OH Gov. Kasich Signs Exec Order on Shale Processing Plants

March 13, 2012March 13, 2012

Ohio Gov. John Kasich signed an executive order on Monday giving the Ohio Department of Commerce’s Division of Industrial Compliance the sole authority to oversee construction of shale gas processing plants in the state.

Industrywide Issues | Ohio | Statewide OH | Taxation

Details on Ohio Gov. Kasich’s New Tax on Shale Drilling

March 9, 2012March 9, 2012

sign taxes ahead Details of Gov. John Kasich’s plan to raise taxes on the nascent shale drilling industry in Ohio (see this MDN story) are starting to leak out. Gov. Kasich plans to unveil his plans officially next week, but here’s what we know so far:

Industrywide Issues | Ohio | Regulation | Statewide OH | Wastewater

OH Bill Tightens Regulation of Wastewater Injection Wells

March 9, 2012March 9, 2012

Ohio State Rep. Jay Goyal introduced legislation yesterday to tighten regulation of injection wells used for disposing Marcellus and Utica Shale wastewater. Key provisions of the bill include:

Can Ohio Regulations Handle the Coming Shale Gas Boom?

March 7, 2012March 7, 2012

The question of whether or not Ohio is ready for a drilling boom in the Utica Shale may be moot, since the boom has already started. But an official from the Ohio Department of Natural Resources (ODNR) says with new laws passed last year, and more laws set to be passed this year, Ohio is more than ready to handle a rapid expansion of Utica and Marcellus Shale drilling in the state.

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

OH Gov. Kasich to Introduce New Tax on Shale Gas Drilling

March 5, 2012March 5, 2012

This one is sure to disappoint landowners. In an Obamaesque move, conservative Republican Ohio Gov. John Kasich is set to propose a new tax on Utica and Marcellus shale gas drilling in order to reduce Ohio state income taxes.

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

New Shale Gas Drilling Legislation Coming in Ohio

March 1, 2012March 1, 2012

Ohio Gov. John Kasich is planning to introduce new energy legislation in the next few weeks that will impact Utica and Marcellus Shale drilling in the state.