Statewide OH

Lease & Royalty Payments | Ohio | Statewide OH

OH Landowners Faced with Lease Extension Decision – What to Do?
April 5, 2016April 5, 2016

David Wigham is a second-generation Ohio oil and gas attorney with nearly 25 years of experience in the industry. He recently wrote an article outlining the current situation in Ohio (and beyond) of renegotiating shale leases. Typically landowners sign a five-year lease with an energy company. If the company fails to drill on/under the property during that five-year period, there is usually a provision allowing the energy company to renew the lease for an additional five years–provided they make a new bonus payment. But here’s the conundrum for drillers: with the price of oil and gas so low, drillers don’t have enough cash to drill right now, and they don’t have enough cash to pay big bonuses for another five years. Many leases are now coming due at the five-year mark. What to do? Drillers are going back to landowners and asking them to renew the lease–but instead of receiving a lump sum bonus payment for the next five years, drillers are asking if they can pay landowners one year at a time, over the next five years. Should a landowner take the deal?…
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Allegheny County | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

Winners of 2016 Northeast Oil & Gas Awards [FREE Access]
April 1, 2016April 1, 2016

Earlier this week (March 30th) the 2016 Northeast Oil & Gas Awards and Industry Summit was held in Pittsburgh. Once again the Awards and the Summit were a smashing success. Congratulations to all of the finalists and winners! Each year the Oil & Gas Awards recognize organizations operating responsibly and supporting the communities they operate within. Now in their 4th year, the Oil & Gas Awards are judged by over 100 senior industry professionals. Partners in the Northeast Awards are The US Chamber of Commerce, The Pennsylvania Chamber of Business and Industry, The Washington County Chamber of Commerce and the Western Virginia Oil and Natural Gas Association. Here is a complete list of the winners, by category…
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Energy Services | Fairmount Santrol | Industrywide Issues | Ohio | Regulation | Sand/Proppant | Statewide OH

SEC Investigates OH Frac Sand Company for Allegedly Paying Bribes
April 1, 2016April 1, 2016

One of the largest frac sand providers for shale drillers in the U.S. is Fairmount Santrol. Based in Ohio, Fairmount sells proppants (sand and other substances used in oil and gas drilling) around the world. Apparently Fairmount’s dealings in another country is what has landed them in hot water with the U.S. Securities and Exchange Commission. The SEC is investigating Fairmount under the Foreign Corrupt Practices Act. The company is accused of paying bribes to foreign officials for help in getting business. We’re not excusing such behavior, but come on, really? You don’t think such things don’t go on a million times a day in every industry from oil & gas to dog food?? Sounds more like a fossil fuel industry witch hunt to us than a legitimate investigation…
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Electrical Generation | Industrywide Issues | Ohio | Regulation | Statewide OH

Cheap NatGas Blamed for Higher Electric Rates Coming in Ohio
April 1, 2016April 1, 2016

The Public Utilities Commission of Ohio (PUCO) approved a plan yesterday that is deeply complex and has us scratching our heads. From the press accounts we’ve read, we would summarize like this: The plan allows American Electric Power Co. and FirstEnergy Corp. to operate coal plants and a nuclear plant that currently (and for the foreseeable future) are uneconomical. The electricity produced by the plants can’t compete with electricity being produced by new natural gas-powered electric plants. But PUCO believes it is in the public interest to keep the old coal/nuclear plants running–so electric resellers will be forced to buy from the old plants at a high rate, and sell that electricity on the open market at a lower rate–and ratepayers (Ohioans) will pick up the difference in the price. Ohioans will subsidize the old plants. Because it’s in the public interest. Somehow. Even though the average Ohioan will pay $100-$130 more for the same electricity. Yes, it’s far more complex than that–there are provisions for more renewable energy sources, etc. baked into the plan. But what it boils down to is subsidizing old forms of energy that can’t compete with natgas…
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Anti-Drilling/Fossil Fuel | Earthquakes | Industrywide Issues | Ohio | Pennsylvania | Statewide OH | Statewide PA

Harrisburg “Reporter” Blames Republicans for Earthquakes in Ohio
March 31, 2016March 31, 2016

Truly amazing. That’s our reaction to the latest anti-drilling article published by the Democrat-controlled Harrisburg Patriot-News from “reporter” (i.e. anti-drilling advocate and propagandist pretending to be a reporter) Candy Woodall. Woodall used the news about a report recently released by the U.S. Geological Survey regarding earthquakes caused by injection wells to blame a series of earthquakes in Ohio on the previous Republican governor Tom Corbett. Yep. Corbett and his hated (for Democrats) Secretary of the Dept. of Environmental Protection at that time, Mike Krancer, are why there was a series of earthquakes near Youngstown, OH, including a 4.0 magnitude quake on Dec. 31, 2011 (see Youngstown Earthquake and Fracking: Is There a Connection?). Those wicked Republicans who just love to destroy everything. Here’s how the propagandist Woodall used a legitimate story and prefaced it with a totally made-up introduction, just so she could hammer Republicans on fracking one more time…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | NEXUS Pipeline | Ohio | Pipelines | Statewide OH

CORNballs Tell OH Landowners to Call Police & AG to Stop Pipeline
March 31, 2016March 31, 2016

MDN has written a number of stories about CORN–the COalition to Reroute NEXUS (see our stories here). The CORNballs have just resurfaced to pedal more obstructionist advice, hoping to incite a riot against a simple pipeline in Ohio. Do you know how many thousands of miles of pipelines already exist in Ohio–and have for generations? And yet this group falsely paints a picture of environmental holocaust if one more pipeline is built in the Buckeye State. Like community organizers everywhere, CORN is attempting to foment civil unrest and create an atmosphere where there are potential clashes between landowners, the pipeline company, and local law enforcement. They hope and pray for an “incident” that they can use as publicity to paint the pipeline as evil and uncaring about landowners. It’s all bilge–every last bit of it. Here’s the latest PR offensive from the CORNballs of Ohio…
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Energy Services | Energy Transfer Partners | Industrywide Issues | Michigan | Ohio | Pipelines | Public Opinion | Regulation | Statewide MI | Statewide OH

FERC Seeks Input on ET Rover Pipeline – MI Poll Shows 91% Favor
March 28, 2016March 28, 2016

The Federal Energy Regulatory Commission (FERC) wants to know what landowners and residents along the path of the proposed Energy Transfer Rover pipeline think about the project. ET Rover is a 711-mile Marcellus/Utica natural gas pipeline that will serve mostly U.S. customers. The pipeline will cost $3.7 billion to build and run from PA, WV and eastern OH through OH into Michigan and eventually into Canada. The bulk of the pipeline would run through Ohio (see ET Rover Pipeline Launches New Website, Updated Route Maps). We say ET Rover is “for the children” because the pipeline will generate $91 million in taxes for local schools–in its first year alone (see For the Children: ET Rover Pipeline $91M in School Taxes 1st Year). We spotted a story in a Michigan newspaper about the project. The story says FERC is eliciting feedback until April 11 (be sure to comment!). The story is running a poll of its readers asking them if they support or oppose the project. The results aren’t even close. Some 91% (at the time we wrote this) support the project. See a copy of the poll results below…
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Energy Companies | EnerVest | Ohio | Statewide OH

EnerVest Likes Clinton Sandstone “Utica-lite” Oil Wells in OH
March 22, 2016March 22, 2016

Once upon a time the Clinton Sandstone layer was the most drilled rock layer in Ohio. Then the Utica/Point Pleasant came along and it seemed as if everybody forgot about the Clinton. Previously the Clinton was drilled vertically, or conventional-only. But what if you drilled the Clinton horizontally, like you do in the Utica? You might get a “Utica-lite” well, as we commented a year ago (see Ohio Clinton Sandstone Horiz Wells on the Increase – Utica-Lite?). Last year MDN told you that EnverVest, among others, was experimenting with horizontal drilling in the Clinton Sandstone. According to drillers who are experimenting in the Clinton, drilling a horizontal Clinton well is anywhere from 3-10 times more expensive than a conventional well, but it produces anywhere from 7 to 20 times more oil, which is typically what they’re drilling for in the Clinton. EnerVest has drilled seven horizontal Clinton wells and is extracting 1,100 barrels of oil per day from those seven wells. Here’s more details shared by EnevVest at a recent OOGA meeting about their Clinton Sandstone efforts…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Litigation | Medina County | Ohio | Portage County | Regulation | Statewide OH

OH Antis Circulate Petitions for Bans Already Tossed by Courts
March 22, 2016March 22, 2016

The Pennsylvania-based Community Environmental Legal Defense Fund (CELDF) is a radical environmental group backed with Big Green money that exists to fleece local towns into adopting bans on fracking and pipelines. Last year we carried an expose of the group (see PA’s CELDF Unmasked as Troublemakers in Ohio Utica Shale). Much of their community agitating work is done in Ohio. Time after time their so-called “community bill of rights” initiatives are shot down by Ohio courts. The latest instance (and there have been many) was earlier this month when the U.S. 8th District Court of Appeals overturned the CELDF-created bill of rights law passed in the Cleveland suburb of Broadview Heights (see Mad Moms Hopping Mad Over Court Decision re Broadview Heights, OH). You would think towns would learn that a) these initiatives invariably are challenged and thrown out by the courts, and b) if the initiatives interfere with a local business that sues the town, the CELDF is nowhere to be found (see Anti Group CELDF Won’t Help Grant Twp Pay $1M Judgement). But there’s plenty of insane people–like those circulating petitions in Medina and Portage counties to get a CELDF-backed bill of rights initiative on the local ballot. The very same initiative already shot down by Ohio courts in other locations…
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Industrywide Issues | Ohio | Research | Statewide OH | Utica Shale

OOGA’s DeBrosse Report: 2015 Utica Continues to Wow
March 18, 2016March 18, 2016

Each year the 3,200-member Ohio Oil and Gas Association (OOGA) issue the DeBrosse Memorial Report (full copy below). The report is a high level look at where (and how much) drilling there has been in the state–and what they’re finding (methane, oil, NGLs). The latest report, recounting 2015, was released yesterday at the OOGA Annual Winter Meeting in Columbus. Once again it was a record-breaking year for Ohio–and the Utica Shale is the reason why…
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Ohio | Statewide OH | Utica Shale

MDN Exclusive Analysis of Ohio’s 2015 & 4Q15 Shale Production
March 17, 2016March 17, 2016

As MDN previously reported, as of the third quarter 2015 Ohio’s oil and natural gas production from shale deposits had already surpassed production for all of 2014 (see OH Shale Wells Already Smash 2014 Record, 3Q15 Results). The Ohio Dept. of Natural Resources (ODNR) recently issued production numbers for the fourth quarter of 2015, as well as reporting on the entire year. Ohio’s oil production from shale in 2015 doubled over 2014–up 99.9%. Ohio’s natural gas production in 2015 more than doubled, up 110% over 2014. 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! The longer an oil or gas well is online, the less it produces. Newer wells produce more. So we show you which wells are not just producing the most quantity overall, but which wells are producing at the fastest (most productive) rates–even if they haven’t yet been online a full three months. We also include a link to the complete list of 1,265 wells that had at least some Utica oil or gas production in 4Q15, in a more usable format than that provided by the ODNR…
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Dominion Energy | Energy Services | Ohio | Statewide OH

Dominion East Ohio Distributes $110,000 Community Impact Awards
March 17, 2016March 17, 2016

Last September MDN told you that Dominion East Ohio had allocated $110,000 to award in community grants to non-profits that have “made a difference” in the Ohio communities they serve (see Dominion Does It Again – $110K in Grants to OH Community Groups). As we said at the time, Dominion is a company that is “doing it the right way” with respect to giving back to the communities in which they operate. Yesterday Dominion announced they’ve awarded that $110,000 to 15 groups. Here’s who the winners are…
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Anti-Drilling/Fossil Fuel | Athens County | Hydraulic Fracturing | Industrywide Issues | Litigation | Ohio | Regulation | Statewide OH

Mad Moms Hopping Mad Over Court Decision re Broadview Heights, OH
March 15, 2016March 15, 2016

In 2012 Broadview Heights, OH, a Cleveland suburb, passed an illegal “Community Bill of Rights” law that bans oil and gas drilling in their township. Ohio law specifically and plainly states that only the state–not local municipalities–have the sole right to regulate the oil and gas industry. The law was promptly thrown out by a lower court, which resulted in anti-drilling groups including the Ohio Community Rights Network (OHCRN) and Mothers Against Drilling in Our Neighborhoods (MADION), with Big Green money backing from the odious PA-based Community Environmental Legal Defense Fund (CELDF), appealing the decision. It eventually made its way up the chain to the 8th District Court of Appeals. The nutters were so ecstatic when the 8th District agreed to hear the case, they celebrated with “street dramatizations” (see Antis Celebrate OH Appeals Court Hearing with Street Dramatization). They’re not celebrating anymore. The 8th District has ruled against the Broadview Heights law. Not only that, the 8th District is the first court to directly address the so-called “bill of rights” argument. In a crushing blow to the nutters, the 8th District Court said, in essence, “No. Towns don’t have inalienable rights to create laws that supersede the state’s laws.” However, nutters never go away–they blat and bleat and carry on, as they are doing now with this decision. At least we have some resolution in Ohio. This decision is a resounding refutation of the CELDF and their predatory behavior of pressuring towns into passing “bill of rights” laws that ban drilling and fracking…
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Economic Impact | Industrywide Issues | Ohio | Pennsylvania | Research | Statewide OH | Statewide PA | Statewide WV | West Virginia

Somber Milestone – US Rig Count Hits Lowest Level in 68 Years
March 14, 2016March 14, 2016

Baker Hughes released their weekly rig count numbers last Friday (see full report below). We typically don’t report on the weekly ups and downs of rig counts, preferring to check in on a monthly basis to get an idea of the overall trend. But last week’s weekly report was historic, which is why we’re commenting on it now. Baker Hughes began tabulating weekly rig counts 68 years ago. The number of working rigs in the United States last Friday hit 480–the lowest number on record since Baker Hughes began keeping records. While the Marcellus count went up by 3 last week, right now there are only 19 rigs operating in Pennsylvania–less than before the Marcellus boom began and down from the high water mark of 114 rigs operating in 2012. When rigs are operating, it means jobs and economic stimulus for a community and region. It also means landowners get royalties, and that money gets invested and/or spent in a community. The converse is also true: no rig activity, fewer jobs and economic impact. Therefore the number of rigs operating is always of keen interest…
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Housing | Industrywide Issues | Ohio | Pennsylvania | Statewide OH | Statewide PA

Trailer Park Company Credits Marcellus/Utica for Record Profits
March 11, 2016March 11, 2016

A company we’ve written about for the past few years is UMH Properties–a real estate company that keeps snapping up trailer parks in the Marcellus/Utica region (see our UMH Properties stories here). UMH is a public company with shares of stock. Therefore, it files quarterly and annual reports, and hosts analyst conference calls. MDN picked through the latest from UMH to find some interesting quotes. In essence, UMH still loves the Marcellus/Utica and will continue to look for new acquisitions in our neck of the woods. The company made $14 million last year (in the black). So you see, not everyone in the Marcellus/Utica is going through tough times. Here’s a few select quotes from the annual report and from the UMH earnings phone call with analysts…
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Ohio | Statewide OH

Ohio Utica Shale Production Doubles in 2015! Top 5 Counties & Drillers
March 10, 2016March 10, 2016

The Ohio Dept. of Natural Resources (ODNR) yesterday released fourth quarter 2015 production numbers. The report shows that Utica oil production was up 75% in 4Q15 over 4Q14, and Utica natural gas production was up 80% in 4Q15 over 4Q14. Comparing year to year, shale oil production in 2015 for Ohio was up 100% (it doubled) over 2014, and shale natural gas production in 2015 was up 111% over 2014. The Utica Shale is truly the miracle that keeps on giving in the Buckeye State! Below is the ODNR announcement, along with a deeper analysis including the Top 5 counties and Top 5 drillers in the Utica Shale…
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