Statewide OH 121 - Marcellus Drilling News

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:

Chesapeake Energy | Energy Companies | Ohio | Statewide OH | Utica Shale

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.