Statewide OH

Energy Companies | Industrywide Issues | Ohio | Pennsylvania | Processing Plants | Shell | Statewide OH | Statewide PA | Statewide WV | West Virginia

Waiting Game: Cracker Plants Talk to Property Owners
February 3, 2012February 3, 2012

West Virginia, Pennsylvania and Ohio are all in the hunt to land an ethane cracker plant in their respective states (see the long list of MDN stories on a potential cracker plant in the Marcellus/Utica Shale region). According to WV Commerce Secretary Keith Burdette, Shell and another unnamed company are now in talks with private property owners. That is, the deals are now being negotiated, and it’s a waiting game to see the outcome.

All three states have offered huge tax incentives to land the plant. Shell originally set January for an announcement, but changed it a few weeks ago to be February.

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Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | Utica Shale | West Virginia

Just What are Natural Gas Liquids Anyway?
January 31, 2012January 31, 2012

Increasingly, you will read on MDN and in press accounts about natural gas liquids (NGLs), and how major energy companies are now focused on drilling in the “liquids-rich” portion of the Marcellus and Utica Shales. The geography of where NGLs are found is typically western Pennsylvania, the West Virginia panhandle and eastern Ohio. But, just what are NGLs anyway? A helpful article on The Motley Fool website provides an excellent summary:

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Energy Services | Industrywide Issues | Kinder Morgan | Ohio | Pipelines | Statewide OH

Kinder Morgan OH Marcellus Lateral Pipeline Project Dead?
January 30, 2012January 30, 2012

It looks like a $520 million Marcellus Lateral Project pipeline that Kinder Morgan wanted to build spanning 240 miles from the West Virginia panhandle to Toledo, Ohio, and the 2,500 jobs it would have provided, is dead.

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Economic Impact | Industrywide Issues | Ohio | Pennsylvania | Processing Plants | Statewide OH | Statewide PA

Ohio vs. West Virginia in the Cracker Plant Sweepstakes
January 26, 2012January 26, 2012

West Virginia, Pennsylvania and Ohio wait on pins and needles for Shell to announce which state they have chosen as a site to build a new $1.5-$2.0 billion ethane cracker plant, each of them looking for an edge to ensure their state is selected. WV Gov. Earl Ray Tomblin is flying to Houston this week to meet with representatives of Shell to make a personal pitch that West Virginia should be that place, with a promise of no property taxes on the plant for 25 years if they do so. Thing is, Ohio Gov. John Kasich has already been to Houston to pitch his state—two months ago. Does that give Ohio an edge?

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Economic Impact | Energy Companies | Industrywide Issues | Ohio | Processing Plants | Shell | Statewide OH | Statewide WV | West Virginia

Ohio Offers Shell Cracker Plant $1.4B in Tax Incentives
January 2, 2012January 2, 2012

Competition to attract an ethane cracker plant is heating up. West Virginia has made no bones that they intend to be the winners of the investment that will be made to build an ethane cracker plant to be built by Shell. The plant will cost upward of $2 billion and will create thousands of jobs to build the plant, operate the plant, and just as importantly, in the industries that will locate near the plant once it’s operational. It’s an economic jackpot worth $5 billion or more, and those who are in the game to attract it are in it to win.

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Carroll County | Chesapeake Energy | Energy Companies | Energy Services | Industrywide Issues | Ohio | Pipelines | Spectra Energy | Statewide OH | Utica Shale

Chesapeake Investing in New 70-Mile Ohio Pipeline
December 23, 2011December 23, 2011

Chesapeake Energy, American Electric Power and Spectra Energy are joining forces to build 70 miles of new pipeline in Ohio that will connect Utica and Marcellus gas wells in eastern Ohio to Spectra’s Texas Eastern pipeline system, which runs from Texas to New York. The new joint project is called the Ohio Pipeline Energy Network (OPEN). The estimated cost for the project is $500 million according to Spectra Energy.

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Industrywide Issues | Ohio | Regulation | Statewide OH

New Ohio Oil & Gas Drilling Rules Coming January 2012
December 21, 2011December 21, 2011

The Ohio Department of Natural Resources (ODNR) is finalizing new state oversight rules on well construction for oil and natural gas that it says will be among the toughest in the U.S. (a copy of the proposed new rules is embedded below). According to ODNR officials, the new rules do not specifically address hydraulic fracturing, although the new rules will apply to horizontally drilled and fracked wells as well as conventional vertical wells. New fracking rules, according to the ODNR, “will be addressed later.”

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

OH Gov Kasich’s Top Priority for 2012: Shale Gas
December 20, 2011December 20, 2011

In a year-end “media gathering” with Ohio Gov. John Kasich, the governor recounted his administration’s accomplishments for his first 12 months in office, and then he turned his sights on 2012. At the top of his agenda for next year? Drilling in the Marcellus and Utica Shales.

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Ohio | Statewide OH | Utica Shale

OH Shale Drilling Permits See Dramatic Increase in 2011
December 13, 2011December 13, 2011

The number of shale gas drilling permits in Ohio has rocketed from virtually none in 2009 and 2010, to 141 in 2011—the vast majority of that in the Utica Shale.

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Energy Services | Enterprise Products Partners | Industrywide Issues | Ohio | Pipelines | Statewide OH

Work on New Ethane Pipeline to Gulf Coast Now Underway in OH
November 28, 2011November 28, 2011

Survey work in central Ohio has already begun on a new ethane pipeline to be built by Enterprise Products Partners. The pipeline, which was recently announced (see this MDN story), will reach from the Marcellus and Utica Shale region in Washington County, PA all the way to Cape Girardeau, MO where it will connect with an existing pipeline to the Gulf Coast. Surveyors for the new pipeline have already turned up in Fairfield County, OH.

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

OH Congressman Says Let State Governments Regulate Fracking
November 14, 2011November 14, 2011

Politics in shale gas drilling is an unfortunate fact because the environment has been politicized. But that’s the reality. Anyone who thinks the federal Environmental Protection Agency (EPA) is not a political animal has their head in the sand. From its beginning, MDN has pointed out that the EPA is making a power grab—attempting to regulate oil and gas drilling via the back door by using legislation like the Clean Water Act.

Some on Capitol Hill, like Congressman Bob Latta (R-Ohio) who serves on the House Energy and Commerce Committee, agree. Rep. Latta posted an editorial on the Politico website last night that says, in part:

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

Companies Target OH Landowners to Buy Royalty Rights
November 7, 2011November 7, 2011

A few weeks ago, MDN called attention to a new trend in the Marcellus and Utica Shale region—companies who want to buy landowners’ rights to future royalties (see this MDN story). It seems to be happening mostly in Ohio at the moment. These companies are offering to purchase a landowner’s potential future royalties for gas wells drilled on their property, paying them an up-front, one-time payment now. Think of those commercials you’ve heard where companies offer to pay lottery winners a lump sum now for the future long-term payouts, or settlements from a lawsuit with payments that stretch over years. That’s essentially what these companies are doing for landowners with leases in the Marcellus and Utica Shales.

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Chesapeake Energy | Energy Companies | EnerVest | Lease & Royalty Payments | Ohio | Statewide OH

Mystery Company Invests $2.14B in Chesapeake Utica Shale JV
November 4, 2011November 4, 2011

The Utica Shale in eastern Ohio, and Chesapeake Energy’s discovery that it contains oil and wet gas in addition to methane, is paying off big-time for the company. Yesterday, Chesapeake announced a major cash infusion from a new joint venture with a mystery/unnamed “international major energy company” to the tune of $2.14 billion. Some $640 million of that will be paid when the deal officially closes, and the balance of $1.5 billion will be paid by the end of 2014.

A third company in the joint venture is EnerVest. The joint venture values the land leased by Chesapeake and EnerVest at $15,000 per net acre. The previous highest deal for Utica Shale leases was Hess—for $8,000 per net acre. The overall deal between Chesapeake, EnerVest and the unnamed company is a bit complicated (see the press release below), but the gist of the matter is that Chesapeake will get enough money to fully fund their Utica Shale drilling program in Ohio, and the overall value of the joint venture means Chesapeake will eventually receive $3.4 billion.

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Air Quality | Industrywide Issues | Ohio | Regulation | Statewide OH

Ohio EPA Seeks Public Comment on New Air Permit for Drilling
November 3, 2011November 3, 2011

The Ohio Environmental Protection Agency (EPA) is asking for public comments on a draft permit that controls air emission standards for shale gas drilling. The new standards do not affect the actual drilling and fracking activities because those are regulated by federal rules. The Ohio permit would regulate emissions from generators, dehydration systems and other “peripheral” activities that go on in the drilling process. A copy of the draft permit can be downloaded here.

From the Ohio EPA press release about the new air permit:

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

Chesapeake Energy Seeks OH Refiner for Oil from Utica Shale
November 2, 2011November 2, 2011

A roundtable discussion at Lakeland Community College in Kirtland, OH brings us this update about Utica Shale drilling in Ohio:

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CONSOL Energy | Energy Companies | Hess | Ohio | Statewide OH | Utica Shale

CONSOL Completes Joint Venture with Hess for Ohio Utica Shale
October 25, 2011October 25, 2011

A second joint venture that CONSOL has announced in recent months has just been completed. Yesterday, CONSOL received an initial $60 million of a total $594 million from Hess to develop 200,000 Utica Shale acres in Ohio. Previously, CONSOL entered another joint venture with Noble Energy for $3.4 billion to develop 663,350 acres in western Pennsylvania and West Virginia (see this MDN story). Why all the joint ventures? Money! CONSOL needs cash to develop its Marcellus and Utica Shale acreage, and in order to get the cash, they have cut (so far) two deals, granting their partners a 50 percent interest in each case.

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