Rover Ignores Shrill Ohio EPA, Asks FERC to Continue HDD Drilling
On Monday MDN brought you the news that Captain Ahab, er, a, Ohio EPA director Craig Butler, had demanded Rover Pipeline stop all horizontal directional drilling (HDD) work now under way in the state because another (tiny, 200 gallon) drilling mud spill happened on November 16th (see Ohio EPA Continues Vendetta Against Rover Pipe, Demands HDD Stop). Butler sent a letter to Rover and has also sent it to the Federal Energy Regulatory Commission (FERC) in yet another attempt to get FERC to halt work on the Rover project. Yesterday Rover thumbed its nose at Butler and instead asked FERC for permission to not only continue all current HDD work, but to begin new HDD work at several more locations in Ohio. Moby-Dick strikes back. Take that, Captain Ahab!…
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Each year (for the 11th year running) the Canadian-based Fraser Institute surveys petroleum industry executives and managers (333 of them for 2017) asking them their opinions on the barriers to investing in exploration and production in various geographies across the globe. That is, what makes them more likely or less likely to spend money drilling in a particular location? The Global Petroleum Survey (full copy below), tallies the survey responses and ranks each geography from most desirable place to invest, to least desirable. The rankings for this year are interesting and illustrative that politicians’ words and regulatory environment have a direct bearing on where, and how much, drilling companies are willing to spend. No money spent, no drilling. The barriers to spending in a given geography include: high tax rates, costly regulatory schemes, uncertainty over environmental regulations and the interpretation and administration of regulations governing the petroleum industry, and security threats. Only one state in the Marcellus/Utica ranked in the Top 10 “most attractive” jurisdictions for oil and gas investment–West Virginia…
The ultra-radical group from Pennsylvania called the Community Environmental Legal Defense Fund (CELDF) is devoted to stirring up anarchy and lawlessness, not only in Pennsylvania but elsewhere, like Ohio. CELDF has launched a campaign to amend the Ohio State Constitution. Two CELDF ballot initiatives (full text below) would amend the Constitution to make it legal for local communities to usurp the state’s role in regulating oil and gas. We’ve written plenty about the CELDF, which is behind a number of bizarre lawsuits like the one claiming that an ecosystem is a “person” with rights (see 
The Ohio Oil and Gas Association (OOGA) and Energy In Depth (EID) Ohio recently published a new report that shows Utica drillers have spent more than $300 million in eight Ohio counties from 2011 until earlier this year improving and fixing 630 miles of Ohio’s roadways. The study, titled “Ohio’s Oil & Gas Industry Road Improvement Payments” (full copy below) takes a close look at Road Usage Maintenance Agreements (RUMAs) in eight counties. You read that right. The O&G industry has spent over $300 million in eight counties over the past seven years. That’s $300 million in PRIVATE (not government-confiscated-via-taxes) money to fix up roads. Those living in eastern Ohio are lucky dogs…
The uber-litigious Sierra Club and it’s vaunted stable of attorneys have been caught with their pants down–legally speaking. One of the (many) pipelines the Clubbers oppose is NEXUS, a $2 billion, 255-mile interstate pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada. NEXUS got final approval for the project from FERC in August (see 
Honestly, the Sierra Club launches so many petitions with FERC (Federal Energy Regulatory Commission), and so many lawsuits against FERC regarding pipelines, it’s hard to keep them all straight. One of the northeast pipelines the Clubbers oppose is NEXUS, a $2 billion, 255-mile interstate pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada. NEXUS got final approval for the project from FERC in August, the first major pipeline to get approved following a newly restored quorum at FERC (see 
Last week Eclipse Resources, the “super-lateral” Marcellus/Utica driller, turned in its third quarter 2017 update. Eclipse is a Marcellus/Utica pure play driller headquartered in State College, PA that drills mostly in the Ohio Utica. Eclipse has drilled the top three longest onshore oil/gas wells in the world. What do we glean from the 3Q17 update? Two of their world’s longest onshore wells–the Great Scott 3H and Outlaw C11H–are now online and pumping. They are pumping record-setting amounts of condensate. Each is averaging 3,300 barrels of oil equivalent (BOE) to date on a restricted choke, consisting of almost 50% condensate and 68% in total liquids. Gushers! During 3Q17 Eclipse drilled 10 wells in all, including four super-laterals with an average lateral length of over 17,500 feet. So far the company has drilled 11 super-lateral wells with an average lateral length of ~18,000 feet–averaging just 16 days from spud to total depth. Incredible! The company had average daily production of 353 million cubic feet equivalent per day (MMcfe/d). On an analyst phone call, Eclipse’s top brass said they are working to create a “reputable” super-lateral program, meaning (our words) building a successful program of long laterals that also makes big money. Here’s the 3Q17 update, along with portions of the analyst phone call and the latest slide deck…
Energy Transfer’s top brass delivered some bad news and some good news on yesterday’s analyst phone call to discuss third quarter 2017 performance. Two projects vital to the Marcellus/Utica are being built by ET–Mariner East 2 (ME2) and Rover Pipeline. The bad news is that ME2, a natural gas liquids (NGL) pipeline project that stretches from eastern Ohio across the state of PA to the Marcus Hook refinery near Philadelphia, will be delayed an extra nine months. ME2 has a new in-service target date of “second quarter 2018.” Progress on ME2 is not as fast as it could be primarily due to an ongoing onslaught of lawsuits by Big Green organizations, coupled with delays from the PA Dept. of Environmental Protection. The good news for ME2 is that by Dec. 31st, 99% of the pipeline will be in the ground and buried. The news for Rover is all good. Rover is a $3.7 billion, 711-mile natural gas pipeline that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada. Rover had been dogged by problems with horizontal directional drilling (HDD), but those problems are now behind it. Yes, head of the Ohio EPA, Craig Butler, continues his Captain Ahab routine to try and stop the project (see 
The International (non-U.S.) Baker Hughes rig count for October 2017 was 951, up 20 from the 931 counted in September 2017, and up 31 from the 920 counted in October 2016. The U.S. rig count for October 2017 was 922, down 18 from the 940 counted in September 2017, but up 378 from the 544 counted in October 2016. Notice that we have almost as many rigs operating in the U.S. as the entire rest of the world (minus Canada). Canada’s rig count has improved a lot since earlier this year. However, Canada’s October rig count drooped a bit–204 in October (down 4 from September) but up 48 from October 2016. What about rig counts in the Marcellus/Utica? Pennsylvania lost one rig and ran an average of 32 rigs during October, versus Ohio running 29 rigs and West Virginia running 15 rigs, the same as September…
In March MDN reported on a court case decided in Ohio’s Seventh District Court of Appeals that seems to say that at least some landmen in Ohio DO need to be licensed real estate agents, in order to get paid (see 
This story necessarily gets into the weeds of pipeline construction. But so you have the essential story line up front, this is it: On Monday Energy Transfer asked the Federal Energy Regulatory Commission (FERC) for permission to dump something called annular pressure monitoring (APM) when drilling underground (horizontal directional drilling, or HDD) for the Rover Pipeline–and on Tuesday FERC granted that permission. Here’s the slightly longer explanation. Rover is a $3.7 billion, 711-mile natural gas pipeline that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada. Early on, Rover had early missteps when using HDD to insert pipeline under things like rivers and roads. The most serious episode occurred when Rover drilling spilled 2 million gallons of non-toxic drilling mud in a swamp near the Tuscarawas River (in Ohio) back in April (see 
NEXUS Pipeline has had to use the unpreferred last option and has taken landowners of 42 properties to court using eminent domain in order to secure easements so they can lay pipeline through those properties. NEXUS is a $2 billion, 255-mile interstate pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada. NEXUS received 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 
Last week NEXUS Pipeline notified the Federal Energy Regulatory Commission (FERC) they had begun construction on the $2 billion, 255-mile interstate pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada. We purposely held off on sharing this exciting news until we could tell you where construction has begun. Each week NEXUS, like other interstate pipelines answering to FERC, provides a weekly update on construction and other project activities. We have a copy of that report (below). What does it show? Preliminary activities are taking place to move equipment, put up signage, and begin to work in “Spread 1”–meaning somewhere within Columbia, Stark, Summit, and Wayne counties in Ohio. Similar work is happening in “Spread 4”–meaning counties in Michigan. Initial site preparation is already happening at three of the four planned compressor stations. Here’s what we have been able to piece together about the initial construction work done on NEXUS…
Ohio Utica Shale drilling is showing signs of a new boom in drilling–much to the delight of everyone, except anti’s. A new shale boom in the Buckeye State is good for landowners, it’s good for the economy, and it’s good for jobs. Frankly, it’s good for everyone. What are the signs of a burgeoning new shale boom? Here’s one sign: Business at a barge facility on the Ohio River where drillers offload equipment and supplies had all but dried up–at least traffic coming from shale-related customers. The facility operator kept afloat by handling soybeans and corn. But now? The bookings from the oil and gas industry are rolling in again. Drilling supplies like barite are once again coming to the facility. Add to that rig counts in Ohio are inching up–almost at parity with Pennsylvania (see