OEPA Continues to Hunt Rover Pipe, Claims 2nd Spill Near River
Ohio EPA (OEPA) director Craig Butler, aka Captain Ahab, continues his mission to harpoon that rascally great white whale known as the Rover Pipeline. Somehow Captain Ahab, er, a, Mr. Butler has “learned” that underground horizontal directional drilling (HDD) Rover was recently allowed (by the Federal Energy Regulatory Commission) to resume near the Tuscarawas River (over the objections of OEPA) has “lost” 146,000 gallons of drilling mud “down hole.” This is at the same location where Rover previously lost 2 million gallons of drilling mud down hole, some of which turned up back on the surface, at a swamp (aka “wetland”) located next to the Tuscarawas (see Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp). That 2 million gallon “spill” in April of last year triggered a shutdown of all HDD work in Ohio. It was only in December that Rover was allowed, by FERC, to resume more HDD work at the Tuscarawas site (see FERC Gives Rover OK to Resume All HDD Work, Incl. Tuscarawas River). Butler’s spies have reported to him that more drilling mud, some 146,000 gallons, has disappeared into the earth during HDD drilling at the Tuscarawas site. Some perspective on this alleged news: First, how did Butler even know of a “problem”? OEPA doesn’t regulate the Rover project! Second, since Rover doesn’t answer to OEPA (which frosts Butler), Butler runs like a tattling child to FERC with every perceived violation he can trump up–even though he doesn’t have all the facts. Third, even though drilling mud may disappear down hole, that doesn’t mean the mud comes back to the surface. Sometimes it stays down there–forever. Fourth, even if the mud does come back to the surface, drilling mud is nontoxic–the same stuff used in kitty litter, cosmetics and toothpaste. The only thing an overabundance of spilled mud can do is smother a few fish. This latest ploy by Butler to tattle on Rover to FERC is his attempt to try and manipulate FERC into shutting down Rover’s HDD work once again…
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NEXUS Pipeline, a $2 billion, 255-mile interstate pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada, is now under construction. NEXUS got final approval for the project from the Federal Energy Regulatory Commission (FERC) in August, the first major pipeline to get approved following a newly restored quorum at FERC (see 
On Wednesday, Dominion Energy filed a request with the Federal Energy Regulatory Commission (FERC) to expand capacity along the existing Dominion Energy Transmission Inc. (DETI) pipeline from Pennsylvania to Ohio. Why? To flow more gas that will be used to generate electricity for the Midwest market. The project, called the Sweden Valley Project, is projected to cost $48 million and add another 120 million cubic feet per day (MMcf/d) of PA Marcellus Shale gas to the existing flow along DETI. Dominion says all 120 MMcf/d are already contracted and spoken for–by an unnamed customer. Notice the headline says “expand” and not “extend.” This project would build a tiny three miles of new pipeline, with the new pipeline lying next to existing pipeline (in Greene County, PA). The only greenfield construction is building a 1.75-mile pipeline to connect with the Tennessee Gas Pipeline in Tuscarawas County, OH. The other main part of the project is updating three units a compressor station in Licking County, OH. In the constellation of pipeline projects that disturb earth and disrupt landowners, this one is pretty minor–yet it will deliver big results by flowing an extra 120 MMcf/d of gas west to a new market…
Once again Marcellus Drilling News is happy to partner with and support the 
What if a landowner leased his or her land decades ago and a driller drilled a conventional natural gas well on the property, and that well has produced commercial volumes of natural gas for years–and still does. And what if the lease gives that driller the right to drill (or not drill) in any given rock lawyer. And what if that driller is content to simply let that conventional well keep producing and not drill further down, into the now commercially viable Utica (or Marcellus) shale layer? Does the landowner, whose land is located where the Utica/Marcellus exists, have any case for taking back the rights to the deeper shale layers the conventional driller refuses to go after? That’s a case that went all the way to the Ohio Supreme Court in March of last year (see 
Clever researchers at Ohio State University have figured out a way to convert shale gas into products like methanol and gasoline–all while *consuming* carbon dioxide. That is, the process yields zero CO2 emissions (which will thrill global warming believers). Of course the process converts one fossil fuel into another, and just because it’s called “fossil fuel” the warmers still won’t be happy. Whatever. This is exciting new technology with big potential. Not only does the conversion not emit any CO2, it actually *uses* CO2 from outside sources–sopping up some of that over-abundant CO2 that comes from cow burps (and flatulation). The same researchers have also figured out how to use a chemical reaction to “transform” coal into electricity (without burning the coal). Pretty heady stuff. We’d almost call it alchemy! Here’s the lowdown…
The Ohio Dept. of Natural Resources (ODNR) has just issued production numbers for the third quarter of 2017. The good news is that production is up for both natural gas AND oil. Utica natgas production saw a huge percentage increase–up 27.51% over the same period last year. 2Q17 Utica natgas production increased 16% over the previous year, and 1Q17 production increased 13% over the previous year. Although the trend has been up this year, 3Q17’s jump is really big (nearly double) compared to previous quarters. The even better news is that until 3Q17, Ohio oil production was trending down quarter after quarter–but in 3Q17 the trend reversed. Utica oil production was up slightly, close to 3%, over the same period last year. The ODNR report lists 1,796 horizontal wells, of which 1,760 reported production of some amount. The average natgas well produced 261,681 million cubic feet (Mcf) during 3Q17, and the average oil well produced 2,367 barrels of oil. But as we all know, each well is unique. Below we give you an MDN exclusive, showing the top 25 natgas wells and top 25 oil wells. In 3Q17, the top 3 natgas wells were drilled and operated by Ascent Resources. Rounding out the top 5 were two wells drilled by Rice Energy (now owned by EQT). All top 5 producing natgas wells in 3Q17 are located in Belmont County. What about oil wells? The top 2 producing oil wells were drilled by Ascent Resources. Coming in at #3 was a well drilled by Eclipse Resources, followed by #4 drilled by Chesapeake Energy. Rounding out the top 5 producing oil wells was a well drilled by Ascent Resources. Four of the five top producing oil wells are located in Guernsey County, with one in Harrison County. You might say, with some justification, that Ascent Resources (formerly called American Energy Partners, Aubrey McClendon’s startup following Chesapeake Energy), dominated the top producing wells for 3Q17, for both natgas and oil…
Last week Columbia Pipeline Group (now part of TransCanada) filed a request with the Federal Energy Regulatory Commission (FERC) to begin service on their Leach XPress pipeline. This is BIG and important news. In August 2014, MDN told you that Columbia Pipeline Group decided to move forward with investing $1.75 billion dollars for two new projects: Leach XPress and Rayne XPress (see 
We have been waiting for this day for a LONG time. Yesterday the Federal Energy Regulatory Commission (FERC) issued an order to Rover Pipeline allowing Rover to restart all outstanding underground horizontal directional drilling (HDD) projects, including the location at Tuscarawas River. All Rover HDD projects were stopped back in April following a string of “inadvertent returns” (i.e. leaks) of drilling mud, the most serious being a ~2 million gallon spill at the Tuscarawas River HDD location (see 
Fairmount Santrol, an Ohio-based sand producer that sells sand as a proppant for use in Utica and Marcellus Shale drilling, announced yesterday it has accepted an offer to sell itself to another sand company–Unimin, a subsidiary of Belgium-based SCR-Sibelco. Fairmount Santrol shareholders will get a $170 million payment and 35% ownership in the newly combined company. The new company will have revenues approaching $2 billion per year. Fairmount Santrol’s CEO, Jenniffer Deckard, is expected to become the CEO of the new company (the name of the new company has not yet been decided). However, make no mistake–Fairmount is selling itself. The board of directors for the new company will have 6 members picked by Unimim parent SCR-Sibelco and 4 members picked by Fairmount Santrol. The location of the headquarters is still up in the air. A lot of unknowns at this point. However, one thing that IS known is that this is a done deal…
The International (non-U.S.) Baker Hughes rig count for November 2017 was 942, down 9 from the 951 counted in October 2017, but up 17 from the 925 counted in November 2016. The U.S. rig count for November 2017 was 911, down 11 from the 922 counted in October 2017, but up 331 from the 580 counted in November 2016. The average Canadian rig count for November 2017 was 204, unchanged from the 204 counted in October 2017, and up 31 from the 173 counted in November 2016. What about rig counts in the Marcellus/Utica? Pennsylvania lost one rig (second month in a row PA has lost a rig), running an average of 31 rigs during October. Ohio gained a rig to run an average of 30 rigs. West Virginia saw the biggest swing–a huge swing–by losing 3 rigs, running an average of 12 rigs last month. So the Marcellus/Utica combined lost 3 rigs last month. Here’s the BH update…
The legal beagles at the Vorys energy law firm have been keeping a close eye on court cases in Ohio that affect the oil and gas industry. Two of those cases caught our attention as being worthy of mention because they have the potential to affect Utica Shale rights owners, and conversely drillers, in the Buckeye State. In one case, a landowner thought she could terminate a lease by not picking up her mail and depositing royalty checks in the mail. Just ignore the mail and claim the driller wasn’t paying up. Oops. Nice try, but that didn’t fly in court. In another case, a landowner with an old oil & gas lease (dating back to the 1970s) tried to break the lease because the driller is happy as a clam to simply get gas out of conventional/vertical/shallow wells, and not go after (or allow someone else to go after) the deeper shale layers. The landowner tried to get the court to at least agree to free up the deeper layers so he could lease those–but no dice. The court found the existing lease is producing in “paying quantities” and under the terms of the lease, the landowner does not have the right to sever the lower layers from the upper layers. Here’s the details, with copies of the respective court decisions…