Statewide OH

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    Industry Survey Predicts: PA Drilling Up 29%, OH Up 19%, WV Up 22%

    World Oil calls itself “the premier trade publication for the international upstream industry.” Perhaps it is–who are we to say otherwise? The folks at World Oil have done us all a favor. They surveyed the upstream (i.e. drilling) oil and gas industry to find out what drillers are planning for 2017. Overall, they find drillers plan to drill 18,552 wells in North America this year–a big 26.8% jump from last year. In releasing a summary of the results, Wold Oil outlines region by region in the U.S. what they predict will happen this year, based on survey results. The northeast section caught our eye. World Oil predicts Pennsylvania will see a 29% increase in new well drilling this year (total of 774 new wells drilled). Ohio will see an increase of 19.1% in new well drilling (380 new wells). And West Virginia will see a big 21.9% increase (245 new wells). Here’s the full summary from World Oil…
    Read More “Industry Survey Predicts: PA Drilling Up 29%, OH Up 19%, WV Up 22%”

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    OH Gov. Kasich Recycles Proposal to Increase Utica Severance Tax

    “Johnny could only sing one note / And the note he sang was this…” Ohio Gov. John “severance tax” Kasich is Johnny One Note when it comes to his desire to tax the Utica Shale industry and transfer their hard-earned money away to other people who didn’t earn it. Kasich announced he would obstinately include a nosebleed-high Utica Shale severance tax (6.5%) in his biennium budget–again. Kasich has been pining for an increase in Ohio’s severance tax for years (see our extensive list of Kasich severance tax stories here). OH legislators have already declared the proposal to increase the severance tax “dead on arrival.” Kasich offered up this explanation for his addle-headed insistence on including it again: “Some might be cynical and say why does he keep putting this severance tax in when he knows it’s not going to pass…I don’t believe this legislature is going to enact higher severance taxes, but the day will come when they will.” Poor Johnny One Note singing (with gusto) the only note he knows…
    Read More “OH Gov. Kasich Recycles Proposal to Increase Utica Severance Tax”

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    PA Report Says Marcellus/Utica Can Support Up to 4 More Crackers

    Pennsylvania hired research firm IHSMarkit to study the Marcellus and Utica and how many ethane cracker plants the region can comfortably support. Denise Brinley, a special assistant to the Secretary of the state Department of Community and Economic Development, offered a preview of that report at this week’s Hart Energy Marcellus Utica Midstream conference in Pittsburgh. Although the report is due to be published “in the next few weeks,” Brinley spilled the beans on what it concludes: The PA Marcellus can support another two cracker plants, and the Utica can support two crackers. That’s another four cracker plants, theoretically, that our region can support, in addition to Shell’s ethane cracker. However, the study will also show we need more infrastructure (i.e. pipelines) in order to support such projects. Here’s a glimpse into some very exciting news…
    Read More “PA Report Says Marcellus/Utica Can Support Up to 4 More Crackers”

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    OH NatGas Utility Sells Itself to Energy Investment Firm

    A Cleveland, OH-based natural gas utility company, Gas Natural Inc., has sold itself to investment firm First Reserve Energy. Gas Natural sells 21 billion cubic feet (Bcf) of natural gas to roughly 68,600 customers through regulated utilities operating in Montana, Ohio, Maine and North Carolina. Gas Natural’s other operations include an intrastate pipeline, natural gas production and natural gas marketing. First Reserve Energy is an investment firm focused solely on investing in (and buying) energy companies. Shareholders for Gas Natural voted at the end of December to approve the buyout/merger…
    Read More “OH NatGas Utility Sells Itself to Energy Investment Firm”

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    Prof Says Lack of LNG Export Licences Killing Ohio Jobs

    A professor from an Ohio college had the temerity to publish a guest column in the liberal Cleveland Plain Dealer taking federal regulators to task over the years-long wait time it takes to get a new LNG (liquefied natural gas) facility approved. Prof. Robert Chase, Emeritus Professor in the Department of Petroleum Engineering and Geology at Marietta College, says more natural gas needs to reach the world market, via LNG, and if it doesn’t, the lack of LNG exports will put Ohioans out of work. The good prof says the incoming Trump Administration and Congress needs to take “prompt action” to “speed up the licensing process for companies seeking permits to export liquefied natural gas.” Here, here! We fully agree…
    Read More “Prof Says Lack of LNG Export Licences Killing Ohio Jobs”

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    US Supreme Court Rejects Appeal of Ohio Dormant Mineral Act Case

    MDN has reported on the Ohio Dormant Minerals Act (DMA) for years. In a nutshell, there are two DMAs in Ohio–one passed in 1989 that went into effect in 1992, and another in 2006 which added certain additional procedural requirements to the 1989 version. The DMA in its various versions provides for mineral rights that had previously been separated from surface rights to transfer back to the surface owner under certain conditions. The problem, for drillers and for landowners in Ohio, is in knowing which set of DMA rules to use (1989 or 2006) in determining who owns the mineral rights. A number of DMA cases went before the Ohio Supreme Court. In September the Ohio Supreme Court ruled in three cases, saying all of the other cases come under those three (see Important: OH Supreme Court Finally Rules on Dormant Mineral Act). The three cases receiving full opinions were: Corban v. Chesapeake Exploration, L.L.C.; Walker v. Shondrick-Nau; and Albanese v. Batman. The Walker in Walker v. Shondrick-Nau didn’t like the outcome and appealed his case to the U.S. Supreme Court, asking for a “writ of certiorari”–which is essentially a request to review the case. The U.S. Supremes rejected the request–which means the Ohio Supremes’ rulings last September stand and are Ohio law with respect to the DMA…
    Read More “US Supreme Court Rejects Appeal of Ohio Dormant Mineral Act Case”

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    OH Power Cos. Try to Stop Gas-Fired Plants with “Re-Regulation”

    As we have pointed out in past articles, the electricity industry is a complicated industry, with some some power producers operating as “regulated” and some operating as “unregulated.” Regulated power producers have their rates, and rate of profit, set by government regulators–which limits profits but also guarantees profits. Unregulated power producers, on the other hand, do not have the safety net of the government forcing ratepayers to pony up–they operate in the free market, taking all of the risks–and reaping the rewards if those risks prove worthwhile. Many (most?) of the new natural gas-fired electric plants getting built, like those we have focused on in Ohio over the past several days (see List of 10 Utica-Powered Electric Plant Projects Coming to Ohio), are of the unregulated kind. Three power companies in Ohio that are regulated want to keep their monopoly on power and shut out these impertinent upstarts–by calling for re-regulation of the power industry. So-called re-regulation would kill proposed new natgas power plants and keep Ohioans locked into higher prices using existing (and in some cases crumbling) plants to generate electricity. Let’s name names for the sleazy companies trying to pull a fast one…
    Read More “OH Power Cos. Try to Stop Gas-Fired Plants with “Re-Regulation””

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    Gulfport Issues $50K in Grants to Non-Profits in Ohio

    For the past couple of years Gulfport Energy has made major investments in the local communities where it operates in Appalachia (see Gulfport Energy Gives $500K to Foundation for Appalachian Ohio). The Foundation for Appalachian Ohio (FAO), established by Gulfport, makes grants available to tax-exempt organizations. Projects that increase quality of life, create access to opportunities, or identify and implement a solution for a community need are considered. Gulfport recently dished out another $50,000 in grants from the fund to organizations in Eastern Ohio…
    Read More “Gulfport Issues $50K in Grants to Non-Profits in Ohio”

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    List of 10 Utica-Powered Electric Plant Projects Coming to Ohio

    Note: Thanks to our trusty fact-checker, Jim has fixed a few numbers below. Had a wrong decimal!

    Here’s an interesting number: 9,805. That’s how many megawatts of electricity will be produced each and every hour by Utica Shale-powered electric plants if 10 announced projects get built in Ohio. To put it in perspective, 9,805 megawatts is enough to power 9.8 million homes, if the power runs continuously. Ohio’s population is 11.5 million people living in 4.4 million households. Obviously the plants don’t run at full tilt 24/7/365. The U.S. Energy Information Administration reported in 2015 that combined-cycle natgas electric plants ran at an average of 56.3% of the time. Where are we going with this? Those 10 plants, if they all get built, have the potential to use a maximum (24/7/365) of 98 million cubic feet (MMcf) of Utica Shale gas each and every hour. That’s about 0.1 billion cubic feet (Bcf) per hour. But let’s assume the plants all average running times of 56.3%. That’s still 55 MMcf/hour, 0.05 Bcf/hour. There are, last time we checked, 24 hours in a day, which means over the next several years, as these plants go online, these 10 electric plants alone will sop up a huge 1.2 Bcf of Utica gas per day. The Utica, right now, is producing something like 4.2 Bcf/d. Our point: electric generation is a very important new market for both Utica and Marcellus gas. Below is the list of the 10 natgas electric generation projects announced for Ohio, complete with name, location, megawatts produced and status of the project…
    Read More “List of 10 Utica-Powered Electric Plant Projects Coming to Ohio”

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    New Law Blocks Anti-Drilling Ballot Measures in Ohio

    Enough is enough. As MDN reported last June, anti-drilling zealots in Youngstown, OH filed a petition to place a frack ban resolution on the November ballot–for the 6th time (see Brain Dead: Youngstown Antis File Petition for 6th Frack Ban Vote). The petition held up, there were just enough signatures. And once again in November, as the five times that preceded it, Youngstown voters rejected the misnamed, so-called Community Bill of Rights ballot measure–yet another humiliating defeat for the PA-based Community Environmental Legal Defense Fund (CELDF) which is behind the measure (see Youngstown, OH Frack Ban Ballot Measure Defeated for 6th Time). The measure was voted down by an 11-point margin (i.e. landslide against it). The radicals of the CELDF are behind most, if not all, such measures throughout Ohio and Pennsylvania (see our CELDF stories here). Like the six times before, recalcitrant antis say they will try yet again, and keep trying. Except in Ohio they now won’t get that chance. Ohio legislators are heard the pleas of local municipalities that are spending big money (in legal fees) dealing with these patently illegal ballot measures. So the legislature passed House Bill (HB) 463 in December (full copy below)–a measure that says you can’t add a ballot measure (like home rule for oil and gas regulation) that expressly contradicts state law. Gov. John Kasich signed the bill on Jan. 4–meaning no more Youngstown ballot “Community Bill of Rights” measures on the ballot…
    Read More “New Law Blocks Anti-Drilling Ballot Measures in Ohio”

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    ODNR Says No ‘Felt’ Earthquakes from Injection Wells Last 5 Yrs

    On Dec. 31, 2011, the Youngstown, OH area experienced a 4.0 earthquake that was later determined to be caused by a wastewater injection well (see Youngstown Earthquake and Fracking: Is There a Connection? and ODNR Finds Youngstown Injection Well Caused Earthquakes). The Ohio Dept. of Natural Resources (ODNR) later enacted new regulations to prevent future occurrences of earthquakes from either injection wells or fracking itself (see Did ODNR Overreact & Set Earthquake Detect Bar Too Low?). As we pointed out in 2014, the new rules would have shut down the Cleveland Browns stadium–if all of the fans were to begin stomping their feet it would create an “earthquake” greater than the allowed limits set by ODNR. Since the new rules were enacted there have continued to be earthquakes in Ohio, but not “felt” earthquakes from injection wells (see Study Says Series of Unfelt Earthquakes in OH from Utica Fracking). Typically an earthquake must reach 2.5 on the Richter scale to be felt on the surface. Since spring of 2012, there have been no major (above 2.5) earthquakes in Ohio related to injection wells, although there have been a few felt earthquakes supposedly tied to fracking over an active fault (see OH Researchers Confirm Hilcorp Fracking Caused Low-Level Quakes). Now five years later, the ODNR is patting itself on the back, taking credit for the reduced number of earthquakes tied to injection wells, because (they say) of their super-restrictive regulations…
    Read More “ODNR Says No ‘Felt’ Earthquakes from Injection Wells Last 5 Yrs”

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    Marcellus/Utica Drillers Ask for Special Permit to Kill Some Bats

    In April 2015 the Obama administration’s U.S. Fish and Wildlife Service (USFWS) did a disservice to not only the drilling industry, but the wind industry, farmers and the construction industry. USFWS listed the northern long-eared bat as “threatened” under the Endangered Species Act (see US Fish & Wildlife Fixes Wrong Problem for Northern Long-Eared Bat). USFWS says a fungus is spreading through the bat population, killing it. The northern long-eared bat is found in pretty much the eastern two-thirds of the country, minus Florida. The Independent Petroleum Association of America (IPAA) pointed out that USFWS has admitted the the bat is threatened because of something called white nose syndrome–which has nothing to do with habitat destruction. Yet drillers and midstreamers are now hamstrung with new regulations to “save the bats” even though they are not the ones causing harm to the bats. There are other bat species also on the threatened and endangered list, including the Indiana bat, eastern small-footed bat, little brown bat and tri-colored bat. All five species are in decline because of white nose syndrome. Drillers and midstreamers can’t cut down trees from April 1st through October 31st of each year for fear of killing a bat that may be roosting in the tree. This is nuts! Cutting a few trees here and there will not further deplete the bat population–but the thugish USFWS won’t budge. So a coalition of Marcellus/Utica drillers and midstreamers have asked the USFWS to grant them a special permit to allow them to inadvertently kill the odd bat between April and October. USFWS is now conducting a full environmental impact statement, which won’t be ready until next year…
    Read More “Marcellus/Utica Drillers Ask for Special Permit to Kill Some Bats”

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    OH Gov Kasich Vetoed Misnamed ‘Tax Relief’ for Utica Drillers

    As we reported in December, Ohio legislators sent Gov. John “foreigner hunter” Kasich a bill at the end of the year with provisions that clear up language regarding tax exemptions for the oil and gas industry (see OH Gov Kasich May Veto Misnamed ‘Tax Relief’ for Utica Drillers). Ohio state auditors have taken advantage of unclear language to aggressively go after oil and gas companies over legitimate tax breaks they receive under Ohio law (to not pay taxes on equipment used directly in producing oil and gas). Lawmakers want to end the tax witch hunts by clearing up language. But Democrats and RINO Kasich are trying to position the issue as a “tax break” under which up to $264 million would have to be refunded to Big Oil. Which is, of course, a lie. Kasich decided to take the low road and continue to demagogue the issue. He vetoed the bill…
    Read More “OH Gov Kasich Vetoed Misnamed ‘Tax Relief’ for Utica Drillers”

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    OH Gov Kasich May Veto Misnamed ‘Tax Relief’ for Utica Drillers

    “The Nerve”

    Ohio Gov. John “foreigner hunter” Kasich has been hellbent for leather to tax Utica drillers more, over the past, what? Four years now? He’s wanted to hike the existing severance tax in a bid to give away driller’s money to other people–like a good Democrats and RINOs do (see OH Gov Kasich the Bully: Accept My 6.5% Tax or Risk a 10%+ Tax). So image how it must have galled Kasich to learn that a bill he’s about to sign, or veto, has provisions “slipped in” that clear up language regarding tax exemptions for the oil and gas industry (the nerve of those lawmakers!). Ohio state auditors have taken advantage of unclear language to “aggressively” go after oil and gas companies over legitimate tax breaks they receive under Ohio law (to not pay taxes on equipment used directly in producing oil and gas). Lawmakers want to end the tax witch hunts by clearing up language, and Democrats and RINO Kasich are trying to position the issue as a “tax break” under which up to $264 million would have to be refunded to Big Oil. It’s nothing of the sort…
    Read More “OH Gov Kasich May Veto Misnamed ‘Tax Relief’ for Utica Drillers”

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    FERC Issues Certificates for 3 Spectra Energy Pipe Projects in M-U

    In August, the Federal Energy Regulatory Commission (FERC) issued a favorable environmental assessment (EA) for three Spectra Energy projects: Access South, Adair Southwest and Lebanon Express (see FERC Approves 3 Spectra Energy Pipe Projects in Marcellus/Utica). The three are part of an expansion of the Texas Eastern Transmission (Tetco) pipeline, owned by Spectra Energy. The combined projects will transport an additional 662,000 dekatherms per day (or 662 million cubic feet) of Marcellus and Utica Shale gas from Pennsylvania to Ohio, Kentucky and Mississippi. Once a favorable EA is issued, the final step is for the fat lady to sign–that is, for FERC to issue the final, actual certificate that says a company can begin building. That just happened. FERC has just issued the final certificate for the three projects, meaning compressor station upgrades will now begin, and new pipeline will get built through eastern Ohio…
    Read More “FERC Issues Certificates for 3 Spectra Energy Pipe Projects in M-U”

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    Updated List of Proposed Laws in PA-OH-WV Affecting Marcellus/Utica

    The legal beagles at global law firm Norton Rose Fulbright continue to do us all a huge favor. Researchers at the law firm issue a quarterly legislative action update looking at bills and laws previously voted on, and new bills/laws introduced, affecting the oil and gas industry in Pennsylvania, Ohio and West Virginia. The “Quarterly legislative action update: Marcellus and Utica shale region” for 4Q16 (full copy below) begins with a quick listing by state for existing or new laws introduced, with descriptions for each bill/law. This is, in one place, pretty much everything you need to know about what new laws (i.e. regulations) are coming down the pike that will affect the Marcellus and Utica Shale drilling industry…
    Read More “Updated List of Proposed Laws in PA-OH-WV Affecting Marcellus/Utica”