Let’s be honest. Pennsylvania, Ohio and West Virginia compete against each other, fiercely, to attract business to their respective states. However, in 2015 the three states agreed to lay aside their competitive natures when it comes to shale and cooperate (pool resources) for things like marketing and promotion, workforce development, transportation/infrastructure and research (see PA/OH/WV Agree to Stop Competing, Begin Cooperating on Shale). The governors of the three states signed a Memorandum of Understanding in 2015 to cooperate on shale issues. Two of the three governors are now different (in OH and WV). However, the three states have just re-signed the original statement from 2015, extending another three years to Dec. 31, 2021. Which is a good thing… Read More “PA Extends Tri-State Shale Coalition Agreement with OH & WV”
Rover Pipeline is in hot water again. This time it’s not Captain Craig “Ahab” Butler from the Ohio EPA, but the West Virginia Dept. of Environmental Protection. In a letter just released publicly (dated March 5), WVDEP slapped Rover with a “cease-and-desist” order, stopping all construction of Rover in the state, because of inspections in February that found 14 violations of water pollution regulations. The violations occurred in Doddridge, Tyler and Wetzel counties. Violations ran the range of leaving trash behind at construction sites to improper perimeter controls (no erosion devices installed) to failure to clean up the roads they used. In addition to trouble in WV, Rover is also facing new issues in both Ohio and Pennsylvania. In February heavy rains in the region caused “slippage issues” where the pipeline is being installed. Rover filed a report with the Federal Energy Regulatory Commission (FERC) last week to say it has eight crews working to correct slippage issues at six locations along its 51-mile Burgettstown Lateral. Here’s the latest on WV shutting down Rover, and Rover’s work to fix slippage issues… Read More “WV DEP Orders Rover Pipe to Stop Construction for Violations”
Yesterday the Ohio Department of Natural Resources (ODNR), Division of Oil and Gas Resources Management, posted draft rules for changing well spacing for both conventional and Utica Shale wells. The new rules, which the public can comment on now (comments due by April 10th), will establish new minimum distances horizontal shale wells may be drilled from the boundaries of drilling units and new minimum distances from other horizontal wells. In our quick read of the proposed regs, it looks like shale wells must be drilled at least 400 feet from the drilling unit boundary line. There is no required minimum between shale wells drilled on the same pad as part of the same drilling unit. Below are the proposed regs from ODNR… Read More “ODNR Proposes New Spacing Rules for Shale & Conventional Wells”
The Ohio Dept. of Natural Resources (ODNR) has just issued production numbers for the fourth quarter of 2017. Production was up for both natural gas AND oil, as it was in the third quarter (see OH Utica Production 3Q17: Ascent Res. Dominates Top Producers). Utica natgas production saw a gigantic percentage increase–up 38% over the same period last year. Oil production was up a healthy 16% over the previous year’s 4Q. However, when looking at the full year, Ohio’s Utica oil production was lackluster in 2017–down 9% from 2016. Natgas production for all of 2017 was up 24% in 2017 compared to 2016. Which drillers dominated natural gas production, and which dominated oil production, in 4Q17? We have the answers… Read More “OH Utica Production 4Q17: Ascent Tops in Gas, Eclipse Tops in Oil”
Ohioans are wising up to the misleading information being pedaled by radical anti-fossil fuelers. MDN warned you last month that “Keep It In the Ground” activists have launched a new, deceptive campaign in their holy mission to end the use of fossil fuels–fake landowner coalitions (see Warning to Ohio Residents: Beware Fake Landowner Coalitions). The same people behind Food & Water Watch, Food and Water Action, the Sierra Club and other Big Green groups are launching faux coalitions in Ohio with the aim of stopping Utica drilling. They have two new recruits to help them in their holy mission: Earthworks and Congressman Dennis Kucinich. You may recall that Kucinich is running for governor in Ohio and said if he’s elected he will stop all new oil and gas development in the state (see Ohio Democrat Candidate for Governor Says He’ll Ban Utica Drilling). Nobody gives Kucinich a snowball’s chance in Hates of actually getting the Democrat nomination–but then again, crazy Bernie Sanders almost got the Dem nomination for president. One never knows… Read More “Fake Ohio Landowner Groups Launch Misinformation Campaign”
The Ohio Dept. of Natural Resources (ODNR) is actively working on new regulations “regarding storage, recycling, treatment, processing, and disposal of brine and other waste substances.” That is, for wastewater treatment and disposal from the oil and gas industry. It’s taking the ODNR a while to hash out the new regs (they were instructed to do so back in 2014). However, in the meantime, ODNR issues special orders/permits on a case by case basis to allow wastewater treatment and disposal facilities to start up and operate. Hoping to shut down all drilling (in Ohio and other states that send wastewater to Ohio), the odious Food and Water Watch and misnamed FreshWater Accountability Project sued in the Tenth District Court of Appeals, arguing that because ODNR hasn’t released the new regs, they shouldn’t be allowed to keep issuing temporary/special permits. The Tenth District said the radical enviro groups didn’t have standing to file the case and dismissed it. On appeal to the State Supreme Court, the Supremes said the same thing. Therefore, ODNR’s authority to continue granting temporary/special permits for wastewater treatment remains in effect. Another huge loss for Food and Water Watch… Read More “OH Supreme Court Rejects Anti Request to Stop Wastewater Disposal”
Yet another “fracking may cause earthquakes” study has been published in the so-called peer reviewed journal PNAS (Proceedings of the National Academy of Sciences). Researchers from the University of Miami (in Ohio) admit the kind of earthquakes they talk about in their paper, potentially caused by Utica Shale drilling, are “rare.” But, they are also “concerning.” Yes, everyone should be concerned that in zero percent of Utica well drilling cases (statistically speaking) there have been NO earthquakes. Actually a couple of cases are thought to be related to fracking over a fault–but it’s still unproven. Statistically speaking, it’s 0%. But, there could be problems! Maybe. If the conditions are “just right.” Ya never know. We note the researchers didn’t address concerns over fans in football stadiums that, when they all stomp their feet at the same time, have caused “earthquakes” that are higher on the Richter scale than the ones they postulate “may, maybe, might” happen in Utica drilling. No mention of football fan earthquakes in this study. Below is the “news” about this latest, breathlessly urgent report that everyone should read… Read More “Yet Another Fracking-Causes-Earthquakes “Study” – This Time in Utica”
We often write about pipeline projects in the Marcellus/Utica and their mission to move our prodigious natgas production to new markets where the gas will fetch a higher price. Last fall MDN provided a list of 15 active pipeline projects in our region, aimed at moving our gas to new markets (see List of 15 Active Marcellus/Utica Pipeline Projects Worth $23B). However, sometimes the “new” markets these pipelines serve are located–right here, in the M-U region! That’s right. Not all gas needs to go to the South, the Southwest, Midwest or get exported to Canada and beyond. Sometimes new market demand is hidden in plain sight. Such is the case for Columbia Gas (owned by NiSource) in Ohio. The company said it has “changed our portfolio around” to source locally extracted Marcellus/Utica gas for “at least 40%” and “likely much more” of the gas it sells to its customers. The change to using Marcellus/Utica gas will begin in April. Among the pipelines that will flow the M-U gas Columbia will buy is the recently completed Leach XPress (see Leach XPress Goes Online; FERC Approves Mountaineer & Gulf XPress). Here’s the good news that our own gas will serve those in our own region… Read More “Columbia Gas Customers in OH Start Using M-U Gas in April”
“Keep It In the Ground” (KIITG) activists have launched a new, deceptive campaign in their holy mission to end the use of fossil fuels. The same people behind Food & Water Watch, Food and Water Action, the Sierra Club and other Big Green groups have/are launching fake landowner coalitions in Ohio. These fake coalitions (one of them being the Tri-County Landowners Coalition) have one aim and one aim only–to convince unsuspecting landowners to hate fossil fuels and anything (i.e. drilling, pipelines) to do with fossil fuels. It is a sleazy and disgusting tactic by the ultra-left, preying on honest, hardworking folks who join coalitions hoping to receive guidance on the best way to protect their land while at the same time profiting from it. Don’t fall for these fake coalitions! Our friends at Energy in Depth are sounding the alarm on this latest move by anti-fossil fuel radicals… Read More “Warning to Ohio Residents: Beware Fake Landowner Coalitions”
The Eastern hellbender is the largest salamander in North America, reaching lengths of up to 24 inches. It’s also the official amphibian of Pennsylvania. Photo: Dave Herasimtschuk / Freshwaters Illustrated
(Sigh.) Here we go again. An in-depth news story appearing on the PBS website Allegheny Front theorizes that the presence of natural gas gathering pipelines–run to individual shale wells–are causing a decrease in the population of hellbenders. The theory is that as more and more pipelines are installed under creeks and streams throughout the region (in western PA and easter OH), the construction process muddies the streams and kills aquatic life, including the hellbender. The hellbender is a giant salamander–growing to an average of 15 inches long. Ugly suckers–so ugly they’re cute! OK, so a pipeline gets installed and the water is muddy for a day or two and maybe it kills a hellbender or two, what’s the big deal? Are they an endangered species? No, they are not. They are, however, considered to be “near-threatened”–meaning any decade now they *may* get added to the “threatened” list (but still not endangered). The idea is, of course, to avoid killing enough of a species like the hellbender so that it ends up on a threatened or endangered list. So are pipelines having a negative impact on hellbender populations? The article wants you think so, but actually, there’s zero evidence of any kind of impact by pipelines on hellbender populations. Instead of scientific steak to show a connection between pipelines and hellbender populations, the article serves up anecdotal Cheetos of scary pictures of pipelines being installed. There is no connection between pipeline construction and hellbender populations–that’s the bottom line when you read the following story… Read More “M-U Gathering Pipelines Blamed for Killing “Ancient” Salamanders”
In December 2015 Marcellus/Utica driller Magnum Hunter Resources filed for bankruptcy (see Sad Day: Magnum Hunter Files for Chapter 11 Bankruptcy). Five short months later, in May 2016, Magnum Hunter emerged from bankruptcy–without CEO Gary Evans (see Magnum Hunter Emerges from Bankruptcy with CEO Gary Evans Gone). Apparently the new owners of the company (the former debt holders converted into equity holders) didn’t want Evans running the company. So Evans departed to start a new drilling company not focused on the M-U. In January 2017, just one year ago, Magnum Hunter changed its name to Blue Ridge Mountain Resources (see Magnum Hunter Changes Its Name, Leaves the Bankrupt Past Behind). Since that time the only news we’ve heard about the former Magnum Hunter is that they sold their interest in Eureka Midstream (see Eureka Midstream Confirms MDN Article on New Ownership). That is, until now. Earlier this week, Blue Ridge announced it sold a “non-operating interest” in 21,000 undeveloped Marcellus/Utica acres to an undisclosed investor for $56 million, AND got the undisclosed investor to pony up another $36 million (total deal of $92 million) which Blue Ridge will use to fund an ongoing 2-rig drilling program in southeastern Ohio… Read More “Blue Ridge Mountain Res. Forms JV to Raise $92M for Drilling in OH”
On Tuesday, the Ohio State Supreme Court rejected a case in which landowners who were made part of a “unitization order” (i.e. forced pooling) had objected claiming their property rights were stripped away without due process. In legal terms, the landowners claimed it was a “taking” of their property without just compensation. The Supreme Court rejected the case because, they said, there were other legal means the landowners could have tried first (a lower court) before appealing the case direct to the Supremes using something called a mandamus action. In essence, the Supremes said, “Nice try, but you need to jump through the proper hoops first.” Ultimately the Supremes did not rule on the Constitutionality of the claim itself because the case had gotten to them via the wrong path. We’re guessing the landowners will now go back to square one and use the path laid out by the Supremes. Here’s the low down on the rejection by the Supremes, from the legal beagles at the Vorys law firm… Read More “OH Supreme Court Rejects Challenge to Forced Pooling Law”
On Monday Gulfport Energy (drills mainly in the Utica but also in Oklahoma and Louisiana) issued it’s fourth quarter and full year 2017 results, along with a preview of what they expect to do in 2018. Gulfport has drilled the second highest number of Utica wells in Ohio, second only to Chesapeake Energy. Gulfport’s production in 4Q17 averaged 1.26 billion cubic feet per day equivalent, up 5% from 3Q17 and up a whopping 61% from 4Q16. Gulfport brought 15 Utica wells online in 4Q17. What’s ahead in 2018? The company will spend $770-$835 million in 2018. Astonishingly, Gulfport will not borrow to spend that kind of cash! Their spending will be 100% funded by the cash flow they generate from selling gas and oil and NGLs. Gulfport figures production will average somewhere around 15-19% more in 2018 than in 2017. Using an “average of 2.5 rigs” (how does that work?), Gulfport will drill 36-40 new Utica wells this year with an average lateral length of 11,200 feet. Gulfport plans to bring online 33-37 Utica wells with an average lateral length of 8,000 feet. Here’s the update of what happened in 2017, and what to expect in 2018, for one of the most important players in the Ohio Utica… Read More “Gulfport Energy Continues Focus on Utica in 2018, No Borrowing”