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5 Key Insights from MDN’s 2015 Databook Vol. 3 – Just Released
March 7, 2016March 18, 2016

MDN recently published Volume 3 of the 2015 Marcellus and Utica Shale Databook. In 103 jam-packed pages you will get the latest information on what’s happening (or not happening) with drilling in the Marcellus/Utica region. Much of the Databook is a series of county maps–one map for each county where there’s permit activity for Marcellus or Utica drilling. Each county map shows a dot for where a permit was issued–along with the name of the driller next to it. The maps also show major natural gas pipelines and compressor stations. Each map offers you a quick, visual way of understanding where drilling is happening, and who’s doing the drilling.

For this new edition, MDN editor Jim Willis spent several weeks compiling and completely revising a directory of frack waste facilities, including the addition of hundreds of injection wells. The 3-volume series is just $350 (single volumes are $225). All three volumes are meant to work together. This is the PERFECT resource for drillers, pipeline companies, law firms, landmen and many others. Below we’ve included sample pages along with 5 key insights from this latest edition of the Databook…
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Industrywide Issues | Ohio | Statewide OH | Wastewater

OH’s Injection Wells See All-Time High Frack Disposal in 2015
March 7, 2016March 7, 2016

Even with rigs being idled and the coming “dramatic” slowdown in drilling in the Marcellus/Utica (see today’s companion story), there’s one thing that is predictable–wastewater will increase. How can that be? Long after a well is drilled, water from deep below the earth (below what we think of as the aquifer or drinking water table) continues to pour out of a drilled hole. This super-salty water is often referred to as brine. Sometimes called produced water. And it comes out of the hole for years after the hole is drilled. Until now, most active drillers recycled the brine coming from their wells to reuse as a source for fracking new wells. But now, with companies idling most–even all of their rigs–what do they do with all of that water? It must be disposed–and the most likely candidate is an injection well. Most of the injection wells used by Marcellus/Utica drillers are located in Ohio. So it was no surprise to learn that the volume of brine disposal in Ohio jumped 27% in 2015–to a new all-time record of 28.8 million barrels…
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Industrywide Issues | Ohio | Statewide OH | Taxation

Insanity: Ohio Dems Seek 7.5% Severance Tax in Severe Downturn
March 7, 2016March 7, 2016

Ever wonder why the Democrat refrain is always to raise taxes–never to cut spending. What is that? Perhaps they’re born with a “taxing” gene. The innocent-sounding but rabidly partisan group Policy Matters Ohio (founded by, led by, populated by, run by Dems) is once again making the case that because local governments get less revenue in this current downturn, with production in the Utica Shale continuing to expand, Ohio should tax the @#$% out of drillers by increasing the severance tax–as if the money earned by drillers/private businesses (at great risk and hard work) somehow belongs to politicians in Columbus with sticky fingers…
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Energy Services | Energy Transfer Partners | Industrywide Issues | Ohio | Pennsylvania | Pipelines | Regulation | Statewide OH | Statewide PA | Statewide WV | West Virginia

FERC Says Rover Pipeline as Planned Negatively Impacts Environment
February 22, 2016February 22, 2016

In December 2014 Energy Transfer Partners filed their draft Resource Reports of environmental survey data with the Federal Energy Regulatory Commission (FERC) for the ET Rover pipeline (see ET Rover Pipeline’s 800-Mile Journey Begins with FERC Filing). Rover is an 800-mile, $4.4 billion pipeline that will connect Pennsylvania, West Virginia and Ohio, crossing pretty much the entire state of Ohio heading northwest before entering Michigan and eventually taking a dog-leg into Ontario. In February of 2015, exactly a year ago, ET filed a full application with FERC. Last week FERC responded with a Draft Environmental Impact Statement (DEIS)–and the news was not so good for Rover. FERC found “adverse and significant” impacts from the project as planned and delivered to ET nearly 25 pages of recommendations that ET will need to fix before they get an approval. Is this a fatal blow to Rover? Or just a speed bump? Time will tell…
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Energy Services | Ethane | Industrywide Issues | Kinder Morgan | Ohio | Pipelines | Statewide OH

UTOPIA Ethane Pipeline Faces Virtually No Opposition in OH
February 16, 2016February 16, 2016

This is not a story you often hear these days: A natural gas liquids (NGL) pipeline slated to be built in Ohio is facing virtually no opposition. Last month we updated you on Kinder Morgan’s UTOPIA (Utica To Ontario Pipeline Access) ethane pipeline (see Kinder Morgan Ready to Move Forward with UTOPIA East Pipeline). The 12-inch ethane pipeline will run 240 miles and will only be built in Ohio–therefore the Federal Energy Regulatory Commission (FERC) won’t be involved in permitting the project. The pipeline will connect to another pipeline (in Ohio) and that pipeline will carry ethane all the way to Ontario to a cracker plant. Perhaps lack of FERC involvement is the secret to limited opposition? Who knows! Construction won’t begin on the project until 2017 and UTOPIA won’t be online until early 2018. But before that can happen, Kinder Morgan has to secure easements from approximately 900 landowners in Ohio. A full one-third of the deals are ALREADY DONE. Some 98% of landowners granted permission for Kinder Morgan to survey their property. Seems to us like a textbook case of how to build a pipeline! Now if Kinder could only duplicate that success with their Northeast Energy Direct pipeline running through New England (sigh). Here’s an update on UTOPIA’s rapid progress…
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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Ohio | Research | Statewide OH

Anti Groups Abruptly Cut Funding for OH Fracking Study
February 11, 2016February 11, 2016

Two days ago we told you about a three-year study conducted at the University of Cincinnati that looked at fracking and its potential affects on water wells in five Ohio counties. The research found no evidence that fracking had led to any kind of water well contamination (see Antis Not Happy with Results of OH Fracking Study They Funded). We now have a bit more to the story. The two anti groups that funded the research, the Deer Creek Foundation in St. Louis and the Alice Weston foundation from Cincinnati, abruptly stopped funding the study when they got the preliminary (and as yet, unpublished) results. The foundations thought they had bought and paid for a particular outcome, and when that didn’t happen, they withdrew their money and presumably will now support someone they can buy off. Here’s an update on this developing story from the Ohio Oil and Gas Association…
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Industrywide Issues | Ohio | Pennsylvania | Research | Statewide OH | Statewide PA | Statewide WV | West Virginia

EIA Feb DPR: Utica NatGas Output Continues to Increase
February 10, 2016February 10, 2016

Earlier this week our favorite government agency, the U.S. Energy Information Administration (EIA), issued our favorite monthly report, the Drilling Productivity Report (DPR). The February 2016 report shows what the EIA predicts oil and natural gas production will be in March from the seven largest commercial shale plays in the U.S. What does the report (full copy below) show? Very broadly, it shows that the decline in natural gas production is picking up speed, while the decline in oil slowed (reversed, actually). In January’s report, the EIA said for February the combined output of natgas would decline by 405 million cubic feet per day (MMcf/d). In this report, forecasting March production, the EIA says the decline will go down another 451 MMcf/d over the February number. That is, the rate of decline is increasing. There’s only one shale play of the seven with an increase in natgas output from the previous month. Can you guess which one? That’s right–the Utica…
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Baker Hughes | Energy Services | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

Rig Counts for World, US & Marcellus/Utica Continue to Tumble
February 8, 2016February 8, 2016

The number of active drilling rigs worldwide, in North America and in the Marcellus/Utica continued to tumble in January. Baker Hughes released their average rig count data for January last Friday. The news, as we expected (but nevertheless hoped wouldn’t be the case) was not good. Worldwide the number of active oil and gas rigs fell by 78. In North America the rig count went down by 28 rigs, but that’s not the full story. Rig counts in the United States fell by a whopping 60 while the rig count in Canada went up by 32. So here at home the story was bloodier than the top level numbers indicate. What about in the Marcellus/Utica? Once again MDN brings you the exclusive chart for Marcellus/Utica rig counts over the past 12 months. Region-wide rigs went down another by seven in the Marcellus/Utica. All three states that we track–PA, OH, WV–had rig count losses in January…
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Air Quality | Industrywide Issues | Litigation | Ohio | Regulation | Statewide OH | Statewide WV | West Virginia

29 States Ask Supreme Court to Stop Obama Clean Power Plan ASAP
February 8, 2016February 8, 2016

On January 26, 2016, 29 states and state agencies, including Ohio and West Virgina, filed an application with the U.S. Supreme Court seeking an immediate stay of President Obama’s Clean Power Plan (CPP). A week before the D.C. Circuit Court of Appeals denied such a stay, so the states are taking it to the final authority in such matters. The states are begging the court for a stay because the CPP will do “irreparable harm” if it is allowed to be implemented by the dictatorial Obama Administration. For background on how this horrible plan will damage natural gas and our economy in general, see 9 Fatal Flaws with Obama EPA Clean Power Plan. Energy law firm Baker Hostetler LLP is the law firm of record for the State of Oklahoma and Oklahoma Department of Environmental Quality in this case. Below is an update from Baker Hostetler on the Supreme Court filing…
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Energy Companies | Gulfport Energy | Industrywide Issues | Ohio | Reserves (Proved and Unproved) | Statewide OH

Gulfport 2015 Update: Reserves Up 83%, NatGas Production Triples
February 3, 2016February 3, 2016

Gulfport Energy, a Utica Shale driller quite active in Ohio until mid-2015 when they began to pull back, released their fourth quarter and full year 2015 operational update yesterday. But not their financials–that comes later this month. There is no mention of drilling activity in 4Q15 (nor any guidance for 2016). We previously brought you the rumor that Gulfport was pushing the pause button on their drilling activities, back in November (see Rumor: Gulfport Energy Suspends Some (All?) Ohio Utica Drilling). However, data from the forthcoming Volume 3 of the 2015 Marcellus and Utica Shale Databook, which covers permit activity for from September through December 2015, shows that Gulfport received 30 permits in Ohio during that period of time. So it appears they have continued their program, albeit scaled back. The 4Q15 and full year 2015 update shows Gulfport’s oil and gas reserves have grown 83% for 2015 over 2014, and natural gas production tripled year over year. Production/operations-wise, 2015 was a very good year for Gulfport. What’s left to be seen is whether it was a good year for Gulfport financially too. Here’s the operations update…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Litigation | Ohio | Statewide OH

Federal Judge Tosses Anti Lawsuit Against MWCD re OH Lease Deals
February 2, 2016February 2, 2016

In some older news (but good news) that has until now escaped our notice, late last year a federal judge dismissed a lawsuit we first told you about in October 2013 (see Muskingum Watershed Taken to Court by Anti-Frackers (Yawn)). Lea Harper and her husband Steve filed a lawsuit challenging the right of the Muskingum Watershed Conservancy District to enter into lease agreements with drillers to allow shale drilling on Conservancy-owned land. The Harpers were assisted in this lawsuit by the radical and odious Food & Water Watch. Judge Sara Lioi of the U.S. District Court for the Northern District of Ohio found the lawsuit lacking in merit and tossed it. The Harpers and their Big Green backers have appealed the decision…
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Industrywide Issues | Ohio | Statewide OH | Taxation

OH’s “Low” Severance Tax will Raise $30M+ in FY 2016
February 1, 2016February 1, 2016

For all of Ohio Gov. John “foreigner hunter” Kasich’s bellyaching about a low severance tax, the state is doing very nicely, thank you. According to a report appearing in the Akron Beacon Journal, the severance tax collected mostly from Utica Shale wells in the Buckeye State for fiscal year 2016 (runs from July 1, 2015 throught June 30, 2016) could top $30 million. That pales in comparison to the $200 million or so Pennsylvania collects each year via an impact fee, their version of a severance tax. PA collects 6.5 times more in taxes on drilling than Ohio–but then again, there are 6.5x more wells drilled in PA than in OH…
Read More “OH’s “Low” Severance Tax will Raise $30M+ in FY 2016″
Energy Companies | Hess | Ohio | Statewide OH

Hess Drilling 5 More Utica Wells 1Q16 Then Stopping
January 27, 2016January 26, 2016

Hess Corporation released their 2016 capital and exploration budget yesterday. Last October Hess said they would spend $2.9-$3.1 billion during 2016. Throw that out the door. They’ve now dropped the capex budget to $2.4 billion, which is 40% less than they spent in 2015. Hess has maintained an active drilling program in the Ohio Utica Shale. What part of that $2.4 billion do you suppose they plan to spend in the Utica this year? The number is $45 million, which will be spent on drilling five new wells and bringing a total of 14 wells online–all in the first quarter. After that? They’re releasing the single rig they now have under contract. So Hess is spending 1.9% of their budget on the Utica for 2016…
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Ohio | Statewide OH

The Rise and Fall of Utica Drilling – In One Graph
January 26, 2016January 26, 2016

MDN spotted a nifty listing of how many Utica wells have been drilled in Ohio, by quarter, since 2011 when the Utica revolution in the Buckeye State was just getting started. We decided instead of just showing a list of disembodied numbers, we would graph it out for you. The graph (below) tells the story of the rise, and now fall, of Utica drilling…
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Ohio | Statewide OH

OH Landowners, Politicians, Businesses Want Drilling in Wayne NF
January 25, 2016January 25, 2016

As we reported a couple of weeks ago, there has been some progress on finally allowing drilling in the Wayne National Forest (WNF) in Ohio (see Small Progress with Drilling in Ohio’s Wayne National Forest). WNF is a “patchwork” of public land scattered among private land. Some 60% of the mineral rights below WNF are privately owned. The federal government has delayed drilling in WNF for nearly 10 years, and is finally moving. Like a glacier, but at least there’s movement. Landowners and others in that region are keeping up the pressure. Last week a group called Landowners for Energy Access and Safe Exploration (LEASE) issued a press release to detail just how much support there is (it’s a lot) to get moving with drilling in WNF…
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Industrywide Issues | Ohio | Regulation | Statewide OH

Real Property Bill in OH Legislature has Big Implications for O&G
January 25, 2016January 25, 2016

A bill in the Ohio Senate, SB 257 (copy below), would have a “substantial effect” on determining whether or not you have a good title in a real property transaction. Which may sound rather boring, like watching paint dry. Except in this case, the changes to the real property law may have a profound impact on oil and gas interests in Ohio–impacting mineral rights that are part of a property. The changes being proposed under SB 257 expand the scope of what kinds of “defects” in a title that can be “cured,” and reduces the amount of time a title can be contested from 21 years down to 4 years…
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