Statewide OH

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    Baker Hughes Nov US Rig Count Up by 36; M-U Count Up 4

    The worldwide Baker Hughes rig count was up by 5 in November, from 920 in October to 925 in November. That reverses a brief slide back in October when rigs worldwide slide back by 14. However, the rig count in the U.S. went up for the fifth month in a row. The average U.S. rig count for November was 580, up 36 from the 544 counted in October. That’s a two month increase of 71! The Marcellus/Utica rig count was up for the fourth month running. In November the M/U rig count went up by 4 (second month in a row it’s gone up 4) with 2 additions in PA (now 27 rigs) and 2 in OH (now 16 rigs). WV stayed even running with an average of 10 rigs…
    Read More “Baker Hughes Nov US Rig Count Up by 36; M-U Count Up 4”

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    Gov Kasich Appointment to PUCO Steps Down After Senate Rejection

    howard-petricoff
    Howard Petricoff

    In June of this year, Ohio Gov. John Kasich (a Republican) appointed veteran energy industry lawyer Howard Petricoff (a Democrat) to the Public Utility Commission of Ohio (PUCO). Petricoff was the retired head of the energy practice at Vorys, the largest law firm in Columbus, OH. He is the only Democrat of the 5-member PUCO, a move heralded as “bi-partisan.” However, it didn’t take long for OH Senate Republicans to pitch some stones Petricoff’s way, questioning whether he could truly be effective given “conflicts of interest” in representing certain clients in the past with cases that are before the Commission, and also alleging “past activism.” We’re not sure exactly what kind of activism was alleged, but last Thursday the Republicans on the Senate Public Utilities Committee passed a resolution recommending the full Senate reject Petricoff. Without their support, his permanent appointment is dead. So Petricoff resigned and is now gone…
    Read More “Gov Kasich Appointment to PUCO Steps Down After Senate Rejection”

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    FERC Approves NEXUS Pipeline, Project on Track for 2017

    approvedAs MDN predicted, yesterday the Federal Energy Regulatory Commission (FERC) approved the NEXUS Pipeline project (see FERC Expected to Approve NEXUS Today; Surveyors have Armed Guards). More precisely, FERC issued a positive Final Environmental Impact Statement (FEIS). These projects are complex and the final Certificate is yet to be granted that allows Spectra Energy to begin digging–but that Certificate is now just a formality. The big nut to crack was the FEIS. With that now granted (executive summary of FEIS below), the final Certificate is on track to be issued in the first quarter of 2017. That is, NEXUS is on track, on time, and WILL get built despite the objections of anti-fossil fuelers. The NEXUS Pipeline is a $2 billion, 255-mile interstate pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada. It is a critically needed pipeline to move Utica and Marcellus Shale gas from an over-saturated market in the northeast to markets in the Midwest and Canada. But FERC’s approval is not only great news for Marcellus and Utica Shale drillers, it’s also great news for Ohioans as there are numerous taps along the proposed route that will deliver plenty of cheap Utica gas to Ohio residents and businesses. And lest you believe the anti lie that FERC is nothing more than a rubber stamp for the pipeline industry, there are some 38 mitigation projects NEXUS will have to make when building the pipeline–projects that will come at great expense. FERC does it job and does it well, balancing the need for more energy with the impacts that infrastructure will have on landowners and the environment. Here’s the great news, along with some of the reaction…
    Read More “FERC Approves NEXUS Pipeline, Project on Track for 2017”

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    Anti-Drillers Lose 2-Yr Case Against Muskingum Watershed District

    Gavel-falling.jpgFor several years MDN has tracked and reported on a lawsuit brought against the Muskingum Watershed Conservancy District (MWCD) by an anti-drilling couple in Guernsey County, OH–Leatra Harper and her husband Steven Janstro (backed by the odious Food & Water Watch). At last check in April 2014, the couple had won the right to continue on with the lawsuit (see Anti-Drillers Win Minor Victory Against Muskingum Watershed Dist). Their aim was to prove the MWCD had violated the original deed to the property by allowing drilling–that by allowing shale drilling on MWCD-owned land, it frustrates the original purpose of the land as stated in the deed, which is to use the land for “recreation, conservation, or reservoir-development purposes.” The case made it all the way to the Sixth Circuit Court of Appeals. Last week the Sixth Circuit dismissed the case. The anti-drillers have lost…
    Read More “Anti-Drillers Lose 2-Yr Case Against Muskingum Watershed District”

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    OSU’s Helpful Tips for Negotiating a Pipeline Contract

    helpful-tipsPipelines have been, and continue to be, a big deal throughout the Marcellus and Utica region. Landowners who are approached about placing a pipeline through their property should (1) never sign the standard contract presented, and (2) never sign anything without first running it by a lawyer. Beyond that, what else should landowners think about/do when negotiating a pipeline easement? Clif Little from the Ohio State University Extension gives us some helpful tips…
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    FERC Expected to Approve NEXUS Today; Surveyors have Armed Guards

    NEXUS map
    Click for larger version

    Word on the street is that the Federal Energy Regulatory Commission (FERC) will announce a decision today to approve the 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. It is a critically needed pipeline to move Utica and Marcellus Shale gas from an over-saturated market in the northeast to markets in the Midwest and Canada. If the decision doesn’t come today, it will come very soon. As MDN reported yesterday, the small city of Green, OH (population 26,000) has put NEXUS on notice that if its surveyors show up and landowners refuse access, those surveyors will be arrested if they “trespass” on the landowner’s property (see Green, OH Threatens NEXUS Surveyors with Arrest for Trespassing). Other news agencies are reporting that surveyors are about to show up with armed guards. Into this mess may come an approval for the project. If NEXUS gets approved, it will have the right to use federal eminent domain laws to build the pipeline, regardless of landowner desires. Does eminent domain also include surveying? One would think so since surveying is part of the construction process. Green’s bluster may amount to nothing if the project receives a final approval today. Below are several stories about surveying for NEXUS, as well as a look at the FERC commissioners who will make the final decision on NEXUS…
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    Enviro Nazis File Petition Against Drilling in Wayne Natl Forest

    Wayne National Forest
    Wayne National Forest

    It’s been 10 long years, but finally in October the Bureau of Land Management (BLM) posted a lease sale auction for 33 parcels in Ohio’s Wayne National Forest (see BLM Launches Auction to Lease Wayne National Forest for Fracking). Although there are some 18,000 acres under consideration for leasing by the BLM in WNF, this first batch amounts to about 1,600 acres–most of it in Monroe County, OH. Monroe is a prime location for Utica Shale drilling. WNF is the only national forest in Ohio and portions of it are found in Athens, Gallia, Hocking, Jackson, Monroe, Morgan, Noble, Lawrence, Perry, Scioto, Vinton, and Washington counties. 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 absolute crime. But Constitutional property rights mean nothing to miseducated liberals who love to protest in faddish “causes”–like banning drilling in WNF. A group of these miseducated miscreants recently presented a petition with 92,000 signatures on it (so they claim) to officials of the BLM in Washington, DC–asking the BLM to stop the lease sale and slam the door on drilling in WNF. Are all 92,000 signatures from Ohio residents who might, theoretically, be impacted by shale drilling in WNF? You can bet your bottom dollar most of the signatures are from people who live outside Ohio…
    Read More “Enviro Nazis File Petition Against Drilling in Wayne Natl Forest”

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    Fluor & Clean Energy Partner to Build 2 OH NatGas Electric Plants

    fluorIn June, Massachusetts-based Clean Energy Future broke ground on their $800 million, 940-megawatt Utica gas-fired electric plant in Lordstown (Trumbull County), OH (see Lordstown Energy Center Breaks Ground on $890M Electric Plant). Construction is going well and the plant will go online in 2018. Back in February of this year, MDN reported that the owner of the Lordstown Energy Center project, Clean Energy Future, was considering building a second plant at the same site (see Lordstown, OH May Get Second Utica Gas-Powered Electric Plant). Looks like the rumors were right! Last week Fluor Corporation, a global engineering, procurement, fabrication, construction and maintenance company that designs, builds and maintains big facilities like electric power plants, announced a deal with Clean Energy Future to build a new natgas-fired electric plant in Lordstown, as well as a second plant in Oregon (Lucas County), OH. The new Lordstown project is being called the Trumbull Energy Center and is due to be built and online in 2020. This is terrific news for the Utica/Marcellus industry. The Trumbull project will be another 940-megawatt plant, same as the Lordstown project under construction now, and the Oregon project will be a 955-megawatt project. Together these two new plants have the potential to use something like 185 billion cubic feet (Bcf) of natural gas per year–a staggering number…
    Read More “Fluor & Clean Energy Partner to Build 2 OH NatGas Electric Plants”

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    4 Utica Shale Pipeline Projects with Another 6.8 Bcf/d Coming

    EIAIt’s always nice when our favorite government agency, the U.S. Energy Information Administration, says nice things about the Marcellus/Utica. Today the EIA, publishing in its Today in Energy online publication, highlights the Utica Shale and the very necessary pipeline projects that promise to bring more “takeaway” capacity from the ever-expanding Utica. EIA looks at four key pipeline projects: Rover, NEXUS, Leach Xpress and Rayne Xpress. If you add them all together, those four new projects (all due to be completed by end of 2018 or before), will add an additional 6.8 billion cubic feet per day (Bcf/d) of takeaway capacity out of the Utica…
    Read More “4 Utica Shale Pipeline Projects with Another 6.8 Bcf/d Coming”

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    Still Time to Enter the 2017 Northeast Oil & Gas Awards

    Oil & Gas AwardsEach year MDN partners with the Oil & Gas Awards to promote their Northeast Awards–a way for companies in the industry that operate with distinction to get recognized by their peers. In March 2017 the Northeast Oil & Gas Awards will celebrate their 5th year. Over the past five years there have been thousands of entries and hundreds of finalists and winners. While the O&G Awards boys keep their ears to the ground to discover stellar performers, they want to know who YOU think are the best companies in the region. We are now 4 weeks out until the submission deadline for the 2017 Northeast Oil & Gas Awards (Dec. 14). Here’s how you can nominate your, or someone else’s, company for this year’s awards…
    Read More “Still Time to Enter the 2017 Northeast Oil & Gas Awards”

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    Who Won in Tuesday’s Election in PA, OH, WV? Shale Energy Won!

    energy-voterYou know how Democrats in Pennsylvania vilified and viciously attacked pro-energy Republicans over the past two years, especially with regard to a severance tax. PA Gov. Tom Wolf has been one of the worst. The media in PA has stood behind Wolf and his calls to enact a Marcellus-killing, so-called severance tax, on top of the existing impact fee + corporate income tax which amounts to a rate higher than a severance tax in states like Texas. We were told, repeatedly, that Republicans blocking Wolf’s desire for a new tax (to pay back teachers’ unions) would be political death for the Republicans. The Republicans, most of whom have held firm and resisted such severance tax lunacy, have been called every name in the book and told “at the next election, you’re gone.” Guess what? After Tuesday’s elections, Republicans in PA now hold the LARGEST MAJORITIES in both the House and Senate than they have held IN DECADES! The voters in PA have spoken, and anti-fossil fuel numskulls have been drummed out of power. And not just in PA…
    Read More “Who Won in Tuesday’s Election in PA, OH, WV? Shale Energy Won!”

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    Ohio DMA Decision Explained at December Seminar in Columbus

    Gavel-falling.jpgMDN has highlighted the importance of the Ohio Supreme Court’s decision with regard to the Ohio Dormant Mineral Act (DMA). In September the OH Supreme Court ruled in three DMA cases, saying all of the other cases come under those three (see Important: OH Supreme Court Finally Rules on Dormant Mineral Act). Following that ruling, we brought you insights on what it means from international law firm Jones Day (see One More Look at Important OH Supreme Court DMA Decision). We later ran a copy of an analysis done by attorney David Wigham, who said, “[T]he landscape regarding title and ownership to mineral interests in Ohio has significantly changed” (see Expert Says OH DMA Decision “Significantly Changed” Mineral Rights). An MDN subscriber from a major Ohio driller reached out to editor Jim Willis to ask for help in promoting an event being hosted by the Energy & Mineral Law Foundation for lawyers on the topic of the recent DMA decision. We are happy to do so given the importance of the decision and its profound effect on both drillers and landowners in the Buckeye State. Here’s the lowdown on the Ohio Dormant Mineral Act Special Institute, Dec. 12 in Columbus, OH…
    Read More “Ohio DMA Decision Explained at December Seminar in Columbus”

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    Baker Hughes Oct US Rig Count Up by 35, M-U Count Up 4

    Baker Hughes logoWhile the worldwide Baker Hughes rig count slide back a bit in October, from 934 in September to 920 in October, the rig count in the U.S. once again, for the fourth month in a row, went up. The average U.S. rig count for October was 544, up 35 from the 509 counted in September. However, the rig count was down 247 from the 791 counted in October 2015–so we still have a long ways to go. The Marcellus/Utica rig count was up for the third month running. In October the M/U rig count went up by 4 with 3 additions in PA (now 25 rigs) and 1 in WV (now 10 rigs). OH stayed even running with an average of 14 rigs…
    Read More “Baker Hughes Oct US Rig Count Up by 35, M-U Count Up 4”

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    Expert Says OH DMA Decision “Significantly Changed” Mineral Rights

    game-changer.jpgMDN has been reporting 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 May, Ohio attorney David Wigham (Roetzel & Andress law firm) said there are signs that the Supremes were about to release a massive, all-in-one-go ruling on the DMA (see OH Attorney Predicts DMA Ruling to Come Soon, Settle Now). He was right. In September they did rule in three cases, saying all of the other cases come under those three (see Important: OH Supreme Court Finally Rules on Dormant Mineral Act). Following that ruling, we brought you insights on what it all means from international law firm Jones Day (see One More Look at Important OH Supreme Court DMA Decision). Since the series of DMA decisions are so important to both drillers and landowners, we thought we would bring you follow up analysis from the lawyer who predicted it was coming–David Wigham. In speaking about the decision, Wigham says, “[T]he landscape regarding title and ownership to mineral interests in Ohio has significantly changed”…
    Read More “Expert Says OH DMA Decision “Significantly Changed” Mineral Rights”

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    OH Supreme Court: Royalty Deductions Decided Case-by-Case

    Gavel-falling.jpgLast year the Ohio Supreme Court accepted a case that will sound familiar to readers of MDN. The case, known as Lutz v. Chesapeake Appalachia, is about whether or not drillers (Chesapeake in this case) is allowed to deduct certain post-production costs from landowner royalty checks. That debate currently rages in Bradford County, PA–as well as other locations across the country. In the Ohio case, the high court was asked to decide whether Ohio follows the “at the well” rule, which permits the deduction of post-production costs, or if the state follows the “marketable product” rule, which limits the deduction of post-production costs under certain circumstances. Drillers and landowners have a lot riding on the decision. The Supremes came down off Mount Olympus yesterday to render their verdict (full copy of the decision below). The court said in so many words, “We’re not deciding.” In other words, each royalty case should be litigated individually, case-by-case, in a trial court. There is no one-size-fits-all with respect to deducting expenses from royalty checks. Each case will depend on how the contract is written, and the success of lawyers litigating it…
    Read More “OH Supreme Court: Royalty Deductions Decided Case-by-Case”

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    OH Court Sides with Mariner East 2 Pipe in Eminent Domain Case

    Mariner East 2
    Mariner East 2 – click for larger version

    An Ohio landowner whose land Sunoco Logistics Partners wants to traverse with the Mariner East 2 pipeline tried a novel legal argument. The landowner’s attorneys argued in the Ohio Seventh District Court of Appeals that pure propane and pure butane–both of which would be transported through the pipeline from eastern Ohio all the way to the Marcus Hook refinery near Philadelphia–are not “petroleum.” At least, not petroleum for the purposes of the permit which grants Sunoco the right to use eminent domain to build the pipeline to transport petroleum products. The Court of Appeals justices rejected that argument and said, in essence, that propane and butane fit under the definition of petroleum as that word has been used for generations…
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