ODNR Proposes New Spacing Rules for Shale & Conventional Wells
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…
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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 
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…
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…
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 
“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…
In December 2015 Marcellus/Utica driller Magnum Hunter Resources filed for bankruptcy (see 
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…
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…
Pennsylvania state officials estimate there are as many as 200,000 abandoned (i.e. “orphan”) oil and gas wells in the state–the vast majority of them conventional wells drilled over 50 years ago. Most of them are not mapped or known. Some of them are hazards for shale drillers who stumble across them when drilling new wells. If you drill horizontally and clip an old/abandoned well, it becomes like an elevator pumping fluids and gas to the surface. Not good. Everyone is committed to finding and marking and capping these old wells–the question is, how do you pay for it? In PA, it’s an ongoing hot potato of who will pay (see 