Statewide OH

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    Resources for Landowners Faced with Pipeline Easements

    OSU Extension logoIn MDN’s daily trawl of the news, we came across a resource for landowners from Ohio State University (OSU), a program called “Pipeline Easement and Right-of-Way Agreements.” Apparently OSU’s Extension service conducts workshops on occasion for landowners and other interested parties. We don’t have a list of the workshops, but we do have copies of the resources they hand out–very useful resources, including four different fact sheets that we think landowners in any state will benefit from…
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    List of 7 Announced NatGas-Fired Electric Plants Planned in Ohio

    Ohio-counties-map_thumb.gifThere have been a flurry of announcements over the past year or two for natural gas-fired electric power generation plants across the Marcellus/Utica region. One of the most active areas seems to be Ohio, where there have been seven such projects (and counting!). Our friends at Energy in Depth have put together an excellent post (below) with the complete list of seven natgas/electric projects. As they point out in the post, once all of these projects are up and running, if you add together all of the electrical output, these seven new projects will produce enough electricity to power every single household in Ohio, plus some. Wow! That’s the power of cheap, clean-burning Utica (and Marcellus) Shale gas in the Buckeye State…
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    UTOPIA Pipeline Sues Holdout OH Landowners Using Eminent Domain

    Utopia_Map
    UTOPIA Pipeline map – click for larger version

    Just yesterday MDN was commenting that it seems like Ohio antis aren’t all that bothered by Kinder Morgan’s UTOPIA ethane pipeline (see Why is UTOPIA Pipeline Less “Controversial” than NEXUS in Ohio?). Perhaps we spoke to soon! UTOPIA has gotten a lot more controversial since they just filed a flurry of lawsuits against holdout landowners, using eminent domain statutes. The real eye-popper we learn when reading about the eminent domain proceedings is just how much Kinder Morgan was offering for easements to property owners. Of course what you’re offered all depends on how many feet of land the pipeline will cross. Some landowners were offered up to $63,300 for an easement. In some cases, the offers were “more than 10 times the appraised value of the easement.” It’s certainly in a landowner’s best interest to settle before being forced to settle (for far less) via eminent domain. Here’s how it’s going for several landowners who object to the pipeline…
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    Why is UTOPIA Pipeline Less “Controversial” than NEXUS in Ohio?

    Utopia_Map
    UTOPIA Pipeline map – click for larger version

    For some reason antis in Ohio seem to have more of a problem with Spectra Energy’s proposed NEXUS natural gas pipeline than with Kinder Morgan’s UTOPIA ethane pipeline–at least that’s what the Toledo Blade claims. The 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 (see Spectra Energy Files Formal FERC Application for NEXUS Pipeline). 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. UTOPIA is a 12-inch ethane pipeline will run 240 miles and will only be built in Ohio before it connects to another pipeline that goes to Canada–therefore the Federal Energy Regulatory Commission (FERC) won’t be involved in permitting UTOPIA. As we’ve previously noted, it seems like there’s been very little opposition to UTOPIA (see UTOPIA Ethane Pipeline Faces Virtually No Opposition in OH). It also seems the antis believe the NEXUS is more of a threat than UTOPIA–even though pipelines are THE safest form of transportation in the country, bar none…
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    More on Cornerstone Pipeline – Batched Fluids, Connecting WV?

    Cornerstone PipelineLast week MDN updated you on progress (or lack thereof) for Marathon’s Cornerstone Pipeline project–a 50-mile liquids pipeline connecting several processing plants in Ohio to Marathon’s refinery in Canton (see Cornerstone Pipeline Slightly Delayed, Construction Begins in May). We now have even more details about the project after Marathon officials briefed area reporters. Among the interesting tidbits: at various times during the day the pipeline will batch fluids and flow either natural gasoline or condensate. Also, after the current plan is done and the pipeline is operational (this fall), Marathon hopes to explore connecting a couple of WV processing facilities to the pipeline–one in Moundsville and another in Natrium…
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    HBK 2016 Energy Assessment, Predictions for OH/PA on Pipes, Taxes

    HBK EnergyCPA/consulting firm HBK (Hill, Barth & King) is fresh out with their 2016 Energy Assessment–an analysis of energy trends, opportunities, challenges and risks. In the assessment (full copy below) HBK Energy Advisors (a division of HBK) weighs in on issues like Obama’s odious Clean Power Plan, renewable energy, LNG and more. Of particular interest to MDN is a series of predictions made not in the official assessment, but in an accompanying blog post on the HBK website. The analysts make a series of predictions for Pennsylvania, Ohio, New Jersey and Florida. The first prediction for Ohio is that pipeline work in the Buckeye State will increase, mostly due to the NEXUS pipeline. Which we find interesting. Just last week we told you an analyst from Wood Mackenzie predicted the NEXUS won’t get built (see Utica Event: OH Landowners Will Lose $6.5B in 5 Yrs, NEXUS Nixed). Now we have another analyst/company saying it will get built! Have a look at HBK’s predictions and see if you agree with them…
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    Some Utica Drillers Go Back to Wider Well Spacing – New Trend?

    HorizontalWellMDN spotted a fascinating story in NGI’s Shale Daily publication about what may be a new trend developing in the Utica Shale. It all concerns interlateral well spacing. What the heck is that? When you drill a shale well, like a Utica well, you can drill down from a single location (i.e. well pad) multiple times and when you turn the drill bit horizontally, you drill an entirely new well. So each well pad contains, typically, anywhere from 2-12 underground wells. Each horizontal well underground is called a lateral. When you drill a lateral, you frack it–using small explosive charges to crack the rock apart near the lateral, injecting water with sand into the cracks. The water drains out, the sand remains “propping open” the cracks to allow natural gas (or oil, or NGLs) to drain out of the cracks, into the well and up the borehole to the surface. In the past few years most drillers have found putting the laterals about 750 feet apart keeps them far enough apart that the cracks from one well don’t interfere with the cracks from another well (see image below). Ideally you want the laterals to be far enough away that they don’t drain any gas from the next lateral–but close enough that you’re not leaving undrained rock in between. That distance in the Marcellus/Utica seems to be around 750 feet. But Rice Energy and Gulfport Energy, two major players in the Utica, are moving back to 1,000 foot spacing between their laterals. Why?…
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    Ohio EPA Seeks Comments on New Permits for Compressor Stations

    The Ohio Environmental Protection Agency (Ohio EPA) has just issued a series of draft general permits for compressor stations in the state and is inviting public comment. Currently each compressor station and the operations surrounding such a station are evaluated on a case-by-case basis in the Buckeye State. The general permits (plural) would create a template–a standard that everyone must meet–to streamline the process. Sounds reasonable. That is, until you dig into the requirements. We haven’t gone through the various draft general permit documents ourselves, but the radicals at the Environmental Defense Fund have–and they like what they see. Which means it’s bad for the oil and gas industry…
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    Rig Counts for World, US Continue Steep Slide in March; M-U Down 1

    We’ve now gone beyond cutting into the bone and sinew with rig count losses–we’re now severing limbs. February’s Baker Hughes rig counts were awful, with both international and U.S. counts hitting record lows (see Rig Counts for World, US & Marcellus/Utica Crash in February). Somehow, it got worse in March. International rig counts went down 33 from 1,018 counted in February to 985 in March. In the U.S., rig counts went from 532 in February to 478 in March–a loss of 54 (10%). Month after month it just keeps going lower. Will the patient survive the carnage? On a more positive note, the number of rigs in PA, OH and WV cumulatively (the Marcellus-Utica) went down by just 1 rig. PA’s count went up 1 rig, OH’s count went down 2 rigs, and WV’s count stayed the same. Here’s the details…
    Read More “Rig Counts for World, US Continue Steep Slide in March; M-U Down 1”

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    Utica Event: OH Landowners Will Lose $6.5B in 5 Yrs, NEXUS May Get Nixed

    4/17/16 NOTE: Spectra Energy contacted MDN to express concerns that our headline leaves the wrong impression. A Spectra spokesman commented: “The story, particularly the headline, portrays the NEXUS Gas Transmission project as being canceled.  This is untrue; NEXUS filed a Certificate Application with the FERC in November of 2015 and has consistently met its regulatory milestones since that time. The project is on schedule and we anticipate FERC issuing its approval to proceed in the second-half of 2016, thereby allowing us to achieve our in-service date of late 2017.” MDN does not mean to imply the project won’t happen–the speaker at the conference we reported on is the one saying that. We’re simply reporting what she said, which we found newsworthy. Spectra takes issue with the opinion that the project may get canceled–they are committed to building it. We have modified the shorter headline that did say “NEXUS Nixed” to say “NEXUS May Get Nixed” to be more accurate. We regret any wrong impression it may have left. Make no mistake, MDN hopes NEXUS happens! We’re rooting for it!

    On Wednesday, the Canton Regional Chamber of Commerce and ShaleDirectories.com co-hosted the Utica Upstream conference at the Pro Football Hall of Fame in Canton, OH. By all accounts we’ve read, it was an excellent event. (Note: ShaleDirectories is partnering with Sourcewater to present UpStream PA 2016 in State College on April 19). We spotted several articles about Utica Upstream, and all of them focused totally, or in part, on the presentation made by Maria Cortez of energy research firm/consultant Wood Mackenzie. Cortez was clearly the bell of the ball. Among her observations on Wednesday: Ohio landowners will lose $6.5 billion in lost income in the next five years thanks to the drilling slowdown; drillers will buy out other drillers at a rapid pace this year and next; the Utica needs at least 11 rigs to keep production at current levels (right now they’re running 11!); some 150-250 drilled but uncompleted wells (DUCs) will be the focus for drillers for the time being; and the NEXUS pipeline likely will NOT get built. But wait, there’s more!…
    Read More “Utica Event: OH Landowners Will Lose $6.5B in 5 Yrs, NEXUS May Get Nixed”

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    OH Landowners Faced with Lease Extension Decision – What to Do?

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

    Oil & Gas AwardsEarlier 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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    SEC Investigates OH Frac Sand Company for Allegedly Paying Bribes

    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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    Cheap NatGas Blamed for Higher Electric Rates Coming in Ohio

    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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    Harrisburg “Reporter” Blames Republicans for Earthquakes in Ohio

    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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    CORNballs Tell OH Landowners to Call Police & AG to Stop Pipeline

    cornballsMDN 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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