Statewide OH

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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…
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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…
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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”

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    Wave of New Fracking About to Hit the Marcellus/Utica

    Based on a recent uptick in new permits issued in PA, OH and WV, a writer for the Daily Caller says “a wave of new fracking is about to hit Appalachia.” We agree! Recent trends all point to an increase in drilling–which is good for landowners, jobs, taxes and the environment (more gas lowers CO2 emissions, if you believe in man-made global warming). Here’s a startling statistic: Fracking is estimated to have generated 4.6 million new jobs and $3.5 trillion in new wealth–in just three years (see today’s companion story). Surf’s up! Here’s the evidence that a new “wave” of fracking is on the way in our neighborhood…
    Read More “Wave of New Fracking About to Hit the Marcellus/Utica”

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    Cool Tool Shows Where Working Rigs are Located in M-U

    The GoMarcellusShale Forum where landowners and others interested in shale drilling hang out and swap messages back and forth was recently updated to become ShaleForum.com. It’s an excellent site with lots of great chatter going on for those with an interest in shale-related matters, including a very active Marcellus/Utica discussion. One of those discussions recently caught our eye. A poster on ShaleForum provided a link to an interactive map application hosted by Baker Hughes. We had not previously seen the app and found it to be very useful. The app shows where all of the active rigs currently drilling are located–across the entire country. You can filter the app to show only states or regions you are interested in. We played with it a bit to show you maps for PA, WV and OH where shale rigs are currently located…
    Read More “Cool Tool Shows Where Working Rigs are Located in M-U”

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    OH Wayne National Forest – List of Auction Winners

    As we previously noted, last week the Bureau of Land Management (BLM) proceeded with an online auction for BLM-controlled land in Ohio’s Wayne National Forest (see BLM Auction Leases 17 Parcels, 719 Acres in OH Wayne Natl Forest). The BLM plan was to auction 33 parcels totaling 1,600 acres. As it turns out, only 17 parcels totaling 719 acres actually got auctioned. At the last minute the BLM withdrew 881 acres (16 parcels) because there are remaining issues with ownership title of the mineral rights. Who purchased and how much? Just four drillers won the bids, which totaled $1.7 million. Three of the four have active drilling programs in the Utica Shale. Here is who won, and how much they paid (by parcel)…
    Read More “OH Wayne National Forest – List of Auction Winners”

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    BLM Auction Leases 17 Parcels, 719 Acres in OH Wayne Natl Forest

    As we mentioned in a story yesterday, the Bureau of Land Management proceeded with an online auction for BLM-controlled land in Ohio’s Wayne National Forest (see 10-Yr Wait is Over, BLM Auctions Wayne Natl Forest Leases Today). The BLM plan was to auction 33 parcels totaling 1,600 acres. As it turns out, only 17 parcels totally 719 acres actually got auctioned. At the last minute the BLM withdrew 881 acres (16 parcels) because there are remaining issues with ownership title of the mineral rights. Those other parcels may later be offered via auction, if they get everything squared away. The 719 acres was all leased by noon and brought bids ranging from $2,000 to $5,000 per acre. Let the fracking begin!…
    Read More “BLM Auction Leases 17 Parcels, 719 Acres in OH Wayne Natl Forest”

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    Reversed REX Pipeline Goes from 1.8 Bcf to 2.0 Bcf

    The Rockies Express Pipeline (REX), originally built from Colorado and Wyoming to Monroe County, OH to bring natural gas from west to east, last year reversed the flow for a large and important section of the pipeline. On August 1, 2015 the section of REX from Monroe County, OH to Mexico, MO reversed the flow and began to carry 1.8 billion cubic feet per day (Bcf/d) of Utica and Marcellus Shale gas to the Midwest, including to the greater Chicago area. REX has been hard at work on plans to expand capacity even more by beefing up compressor stations along portions of the pipeline. REX filed a plan with FERC to add another 800 million cubic feet per day (MMcf/d) of capacity along the same portion of the reversed pipeline. In late November, the Federal Energy Regulatory Commission (FERC) gave REX the go-ahead to start additional compressors added at three locations along the route (see REX Pipe Begins Flowing Extra 800 MMcf/d Marcellus/Utica Gas West). NGI is reporting that the first 200 MMcf of the additional 800 MMcf is now flowing along the pipeline…
    Read More “Reversed REX Pipeline Goes from 1.8 Bcf to 2.0 Bcf”

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    Ohio Wants to “Clawback” $300K Grant to TX-based Exterran Energy

    Headquartered in Houston, Texas, Exterran Corporation (with 5,400 employees) specializes in natural gas compression production equipment and processing facilities. They design, build and operate compressor stations and natural gas processing plants. In 2012 MDN reported on a contract Exterran won to build three natural gas processing plants in West Virginia (see Exterran Wins Contract to Build 3 WV NatGas Processing Plants). The company is also active in other Marcellus/Utica states, including Ohio. In 2013 the company opened a plant to build compressor stations in an industrial park near Youngstown, OH. The state gave the company a $300,000 grant in return for promises to create 103 jobs over a seven year period. Exterran came close for the first couple of years, but then the crash in prices hit and along with it, work dried up. The plant closed in March. Now the state wants “all or part of” the $300,000 grant back (called a “clawback”), because Exterran didn’t fulfill their end of the bargain. Exterran says the plant closure is “temporary,” implying they will be back…
    Read More “Ohio Wants to “Clawback” $300K Grant to TX-based Exterran Energy”

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    10-Yr Wait is Over, BLM Auctions Wayne Natl Forest Leases Today

    As MDN alerted you in October, the Bureau of Land Management (BLM) announced they would auction 33 parcels in Ohio’s Wayne National Forest (WNF) to allow shale fracking (see BLM Launches Auction to Lease Wayne National Forest for Fracking). The parcels add up to just 1,600 acres, but hey, it’s a start. As we said at the time, “WNF is a ‘patchwork’ of public land scattered among private land. Some 60% of the mineral rights below WNF are privately owned. Those mineral rights owners have been denied the use of their property rights for a decade.” An anti-fossil fuel nutter stopped by and left a somewhat profane comment on that post (since deleted) opining that private landowners in WNF could have allowed drilling at any time–that we don’t know we’re talking about. But the obtuse commenter either doesn’t understand, or intentionally overlooks, the fact that without these little parcels of federal land–which have been off limits for the past 10 years–drillers cannot form large enough units on which to drill in WNF. Without the federal land getting leased, private land can’t drill either. Today is the day that the BLM conducts its first WNF auction. Fortunately the auction is online, so we won’t have to endure the typical freak show by anti-fossil fuelers so often associated with these events…
    Read More “10-Yr Wait is Over, BLM Auctions Wayne Natl Forest Leases Today”

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    Rocket Ride Continues for OH Utica NatGas Production in 3Q16

    The Ohio Dept. of Natural Resources (ODNR) has just issued production numbers for the third quarter of 2016. Compared with third quarter 2015, production numbers in 3Q16 continued to be a mixed bag, as was the case in 2Q16 (see Ohio 2Q16 Utica Production – Who Produced O&G Where & How Much). Oil production in 3Q16 dropped by 34% over a year earlier and down 18% from 2Q16–that’s the bad news. But natural gas production from shale continues to be a rocket ship. Natgas production is up 45% year over year. In 2Q16 natgas production was up 51% y/y–so the trend continues. Ascent Resources (formerly Aubrey McClendon’s American Energy) dethroned last quarter’s CNX Gas as 3Q16’s top producing gas well, yielding nearly 1.6 billion cubic feet for the quarter. Also interesting to note, last quarter’s CNX well is located in Monroe County–this quarter’s Ascent winning well is located in Belmont County. Eclipse Resources once again had the #1 producing oil well in Guernsey County, the monster Purple Hayes, which produced an astonishing 74,954 barrels of oil in 3Q16, after producing 71,072 barrels of oil in 2Q16 (#1 well in 2Q16). What a great well! Below we have the ODNR’s high level overview of the numbers, along with MDN’s own exclusive analysis showing: the top 25 producing gas wells, the top 25 producing oil wells, and then the top 25 gas and oil wells as ranked by average production per day. There is a difference!…
    Read More “Rocket Ride Continues for OH Utica NatGas Production in 3Q16”