Statewide OH

Boardwalk Pipeline Partners | CNG/LNG | Energy Services | Exporting | Industrywide Issues | Ohio | Pipelines | Processing Plants | Statewide OH | Utica Shale

Sabine Pass LNG Export Expansion Approved, Utica Gas Heading There?
June 29, 2015June 29, 2015

Good news for Marcellus/Utica drillers–especially those in the Ohio Utica. Last Friday the U.S. Dept. of Energy issued a final authorization for an expansion to Cheniere Energy’s Sabine Pass Liquefaction LNG export facility in Cameron Parish, Louisiana. The approval means Sabine Pass can now export domestically produced liquefied natural gas (LNG) to countries that do not have a Free Trade Agreement (FTA) with the United States. The approval expands export capacity at the facility by an extra 1.38 billion cubic feet of natural gas per day (Bcf/d), to a new total of 3.58 Bcf/d. Why is it good for Utica drillers? Because at least one pipeline project will connect from Ohio all the way to the Sabine Pass facility (see Texas Gas Seeks to Reverse Flow of Pipeline from OH to LA), meaning some Utica and Marcellus Shale gas will get exported from the Gulf Coast…
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Blue Racer Midstream | Energy Services | Industrywide Issues | Monroe County | Ohio | Pipelines | Processing Plants | Statewide OH

Blue Racer Brings OH Processing Plant Online, Continues to Expand
June 25, 2015June 25, 2015

Blue Racer Midstream, a joint venture between Caiman Energy II and Dominion, shared the good news yesterday that a second 200 million cubic feet per day (MMcf/d) cryogenic processing plant at its Berne Natural Gas Processing Complex in Monroe County, OH (known as Berne II, yes, they name these things) is now online and operating. Berne II doubles the processing capacity at the plant. Blue Racer also operates a processing AND fractionation complex in Natrium, WV. A 30-mile Y-grade (NGL) pipeline connects the two facilities so that Berne can send along its NGLs to Natrium for further processing. Fractionaters like those in Natrium separate NGLs into their component hydrocarbons, including ethane, butane, propane, etc. In addition to Berne II going online, Blue Racer gave us a general update on the expanding health of their operation: They have 14 long-term major Marcellus/Utica drilling customers; 650 miles of gathering pipelines in OH and WV with another 200 miles of new gathering lines under construction; and gathered volumes have doubled, and processed volumes have tripled in just the last year…
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Columbia Pipeline Group | Energy Services | Industrywide Issues | Ohio | Pipelines | Statewide OH | Statewide WV | West Virginia

Columbia Pipeline Board Approves 2 Projects from NE to Gulf Coast
June 25, 2015June 25, 2015

In August 2014, MDN told you that Columbia Pipeline Group, a division of NiSource, had decided to move forward with investing $1.75 billion dollars for two new projects: the Leach XPress and Rayne XPress pipeline projects (see Columbia Gas: $1.75B for 2 Projects to Send Marcellus Gas to Gulf). Leach Xpress will begin in Marshall County, West Virginia, cross Ohio and end up in Leach, Kentucky. Rayne Xpress will beef up an existing pipeline from Leach, Kentucky that goes all the way to Rayne, Louisiana with new compressor stations and looping. The two projects together mean up to 2.7 billion cubic feet per day (Bcf/d) of natural gas can move through the entire system–from West Virginia to the Gulf Coast and all point in between. We commented on the funny name “Leach” for a pipeline. Looks like the marketers at Columbia thought twice about it because the name has changed–for both projects. At least we think so. Yesterday Columbia issued a press release to announce the board of directors has signed off on $2.7 billion worth of investment in two projects: Moutaineer XPress and Gulf XPress. Descriptions for the two projects are almost identical to the descriptions for the Leach and Rayne XPress projects. About the only difference is that the price tag went up for the pair of projects by a billion bucks. The key takeaway from the announcement for us? The capacity to move another 2.7 Bcf/d of Marcellus and Utica Shale gas out of the northeast is on the way in the next couple of years…
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Energy Services | Energy Transfer Partners | Industrywide Issues | Ohio | Pipelines | Statewide OH | Taxation

For the Children: ET Rover Pipeline $91M in School Taxes 1st Year
June 23, 2015June 23, 2015

In the ongoing fracking wars, pipelines are the latest flash point for irrational anti-drillers. It used to be no one thought twice about a new pipeline going in the ground. But fear mongers from Big Green organizations like the Sierra Club claim those pipelines are a connection straight to Lucifer. We’ve seen groups of anti-fossil fuelers oppose pipelines like the PennEast, the Constitution, the Northeast Energy Direct and many others. One of those many others is the ET Rover pipeline, a 711-mile Marcellus/Utica natural gas pipeline that will serve mostly U.S. customers that will cost $3.7 billion to build and run from PA, WV and eastern OH through OH into Michigan and eventually into Canada. ET Rover is a project of Energy Transfer, the company making a play to take over Williams (see our other stories on that topic). This story is about ET Rover’s campaign to overcome opposition in Ohio where the majority of the pipeline (570 miles of it) will run. According to a press release issued yesterday, the ET Rover pipeline will generate more than $135 million in ad valorem tax revenue for Ohio during its first year in operation. Of that $135 million, an estimated $91 million will be directed to more than 36 local school districts. Perhaps the nutters opposing the pipeline should rethink their opposition before they screw their own kids out of $91 million? As you know, it’s always for the chil’ren. Libraries, hospitals, parks and senior centers are among other local entities that will benefit from the tax revenue from ET Rover…
Read More “For the Children: ET Rover Pipeline $91M in School Taxes 1st Year”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | NEXUS Pipeline | Ohio | Pipelines | Statewide OH

NEXUS Pipeline Files Draft Reports w/FERC, Rejects CORNy Re-Route
June 18, 2015June 18, 2015

Last Friday the NEXUS Gas Transmission pipeline, a $1.5-$2.0 billion natural gas pipeline that will carry Utica and Marcellus Shale gas spanning 11 counties in Ohio, 3 counties in Michigan, and eventually connect to the Dawn Energy Hub in Canada, filed a full set of twelve draft environmental Resource Reports with the Federal Energy Regulatory Commission (FERC). A summary of the filing (included below) shows there are six large customers for the pipeline in Ohio (gas processors, utilities and large industrial companies). In addition to information about who will use the pipeline and the economic benefits that will come from the pipeline, NEXUS also filed information on alternative routes for the pipeline. Of note, one alternative route, proposed by the Coalition to Reroute NEXUS (CORN, which we’ve dubbed CORNy), is flat out rejected by NEXUS. CORNy wants to move the pipeline away from the Canton-Akron area. NEXUS says that’s a bad idea, for lots of reasons…
Read More “NEXUS Pipeline Files Draft Reports w/FERC, Rejects CORNy Re-Route”
Industrywide Issues | Ohio | Statewide OH | Taxation

OH Utica Severance Tax Increase Dead for This Year’s Budget
June 17, 2015June 17, 2015

Once again Ohio Gov. John “foreigner hunter” Kasich will not get a huge hike in the Utica Shale severance tax. Originally Kasich had sought an increase to 2.75%. Then he got greedy and wanted it hiked to 6.5%. When he got resistance from that, he threatened that unnamed groups may push for a ballot initiative that would seek a 10% severance tax (see OH Gov Kasich the Bully: Accept My 6.5% Tax or Risk a 10%+ Tax). Kasich is determined to get a hike in the tax, but then reality set in. Utica drillers are idling rigs and slowing down in the Buckeye State. A big severance tax increase would accelerate that trend and Republicans know it. Yesterday leaders in both the Ohio Senate and House announced there will be no severance tax increase in this year’s budget–so it’s dead for another year. However, all parties continue to “sit at the table” and talk about a possible increase in the future…
Read More “OH Utica Severance Tax Increase Dead for This Year’s Budget”
American Energy Partners | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Ohio | Statewide OH

Problematic: McClendon’s AEP Not Paying Some of its Bills
June 15, 2015June 15, 2015

Does Aubrey McClendon’s American Energy Partners (AEP)–the new company he founded after being unceremoniously booted from Chesapeake Energy–have cash problems? You certainly wouldn’t think so. At last check in May 2014, McClendon had raised a staggering $8.7 billion in little more than a year (see Aubrey McClendon Raises Huge $8.7B for Shale Drilling…So Far). But the evidence keeps piling up that Aubrey isn’t paying his bills. In April, McClendon created a “blank check” company to raise $200 million in cash (see Aubrey McClendon’s New “Blank Check Company” Looks to Raise $200M). In May, Paloma Resources said a 3-way deal including McClendon’s AEP to lease 130,000 acres in the Ohio Utica Shale went bust because Aubrey didn’t have enough money to close the deal (see McClendon Running Out of Money?! Paloma Utica Deal Goes Bust). Last week MDN told you about a contractor working for AEP with several hundred thousand dollars in outstanding invoices that have gone unpaid–for more than 120 days (see Big McClendon News: Sells 35K Utica Acres, Creates New Company). Now the latest: a group of Ohio landowners have sued McClendon’s AEP along with an affiliate company and a land services company working for AEP, for non-payment of lease bonuses…
Read More “Problematic: McClendon’s AEP Not Paying Some of its Bills”
Industrywide Issues | Ohio | Research | Statewide OH | Utica Shale

List of Who’s Still Active/Drilling in the Ohio Utica Shale
June 15, 2015June 15, 2015

Who’s still drilling/active in the Ohio Utica Shale? Depends on what criteria you use to measure it. We spotted a list of 19 “active” drillers in the Utica based on the criteria of who had producing wells in the first quarter of 2015. Fair enough. But as for who is actively drilling new holes in the ground right now? That’s a slightly different list. MDN recently published Volume 1 for the 2015 Marcellus and Utica Shale Databook (now in our fourth year of publishing this series). Our list shows 12 drillers who received at least one permit to drill in the Utica during the first four months of 2015. We have both lists below…
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CNG/LNG | Exporting | Industrywide Issues | Ohio | Statewide OH

OH Congressman Bill Johnson: It’s Time US Ramps Up LNG Exports
June 15, 2015June 15, 2015

U.S. Congressman Bill Johnson, who represents eastern and southeastern Ohio (Utica Shale country) has introduced HR 315, a bill to force the Dept. of Energy to make decisions within 30 days for each new LNG project filed with the agency. Johnson also recently went on a trip to Portugal, Belgium, and the Ukraine to discuss energy policy–specifically liquefied natural gas (LNG) exports from the United States. Johnson penned the following column following his trip, advocating for U.S. LNG exports and discussing HR 315…
Read More “OH Congressman Bill Johnson: It’s Time US Ramps Up LNG Exports”
About MDN | Energy Companies | Industrywide Issues | Maryland | MDN Resources | New York | Ohio | Pennsylvania | Research | Statewide MD | Statewide NY | Statewide OH | Statewide PA | Statewide WV | West Virginia

MDN Launches 2015 Marcellus/Utica Databook – 4th Year!
June 11, 2015June 23, 2015

Earlier this week Marcellus Drilling News launched the fourth series of our Marcellus and Utica Shale Databook. The 2015 edition of the Databook, Volume 1, officially launched on Tuesday. Never in our wildest dreams did we think back in 2012 that the Databook would become so popular. We’ve now published three complete series–the 2012, 2013 and 2014 series (3 volumes each, or nine volumes total) and this week begins the fourth series–for 2015. The heart and soul of the Databook is a series of maps–one for every county where permits for drilling have been issued–throughout Pennsylvania, West Virginia and Ohio. The “secret sauce” for the Databook is to visually, through maps and charts (89 of them in this edition), show you who is drilling right now or soon will be–and where they are drilling…
Read More “MDN Launches 2015 Marcellus/Utica Databook – 4th Year!”
Energy Companies | Energy Services | EV Energy Partners | Industrywide Issues | M3 Midstream | Momentum | Ohio | Pipelines | Processing Plants | Statewide OH | Williams

Williams Buys Less of Utica East Ohio than Previously Planned
June 11, 2015June 11, 2015

In April MDN told you that Williams would buy out EV Energy Partners 21% share in Utica East Ohio (UEO)–a midstream/pipeline company operating in Ohio (see Williams Buys Out EVEP Interest in Utica East Ohio Midstream for $575M). The original press releases in April, from both Williams and EVEP, clearly state that Williams would buy the entire 21% EVEP share in UEO. But that didn’t happen. Yesterday Williams announced they have closed on an additional 13% from EVEP (not 21%) and for $357 million (not $575 million). The Williams press release says the other 8% share went to the other partner in the venture. You have to read the EVEP press release to learn that the other partner is M3 Midstream, otherwise known as Momentum. Seems a funny thing happened on the way to the forum…
Read More “Williams Buys Less of Utica East Ohio than Previously Planned”
Energy Services | Enterprise Products Partners | Industrywide Issues | Ohio | Pipelines | Statewide OH | Taxation

ATEX Express Ethane Pipeline Says it’s Tax-Exempt in Ohio
June 11, 2015June 11, 2015

School districts and local governments in 13 Ohio counties along which the ATEX (Appalachia-to-Texas Express) natural gas liquids pipeline runs, are miffed that ATEX doesn’t want to pay property taxes on the pipeline. The 1,230-mile ATEX pipeline originates in Washington County, PA and connects to four fractionators in the Marcellus/Utica Shale region. The pipeline, which crosses 265 miles of Ohio, went online in early 2014 (see Let it Flow! ATEX Ethane Pipeline Testing Now, Online Soon). State law stipulates that only pipelines classified as public utilities are liable for property taxes. Private, non-public utility pipelines are not on the hook for local property taxes. However, ATEX may be liable for Ohio’s commercial activity tax…
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Energy Services | Industrywide Issues | Marathon Petroleum | Ohio | Pennsylvania | Processing Plants | Statewide OH | Statewide PA | Statewide WV | West Virginia

Utica Crude Oil Barged Down Ohio River to Marathon Plant in KY
June 9, 2015June 9, 2015

This one kind of slipped by our radar. Marathon Petroleum, the nation’s fourth largest refiner (headquartered in Findlay, OH), has just brought online a new $170 million condensate splitter at its refinery complex south of Catlettsburg, Kentucky. The purpose of the new splitter, which took two years to build, is to process sweet crude oil being produced in the Utica Shale of Ohio, Pennsylvania and West Virginia. And how, you may ask, is all that Utica crude getting to the facility? By barge, along the Ohio River…
Read More “Utica Crude Oil Barged Down Ohio River to Marathon Plant in KY”
Baker Hughes | Energy Services | Industrywide Issues | Ohio | Pennsylvania | Research | Statewide OH | Statewide PA | Statewide WV | West Virginia

Rig Counts Take Another Hit in May, Rapid Decline Continues
June 8, 2015June 8, 2015

We had thought/hoped that the we were near the end of a decline in drilling rig counts. But such is not the case. Baker Hughes released their May rig count report on Friday and it shows a continued slide in the numbers. In April there were 943 active rigs drilling on land in the U.S., down from 1,067 rigs in March (see Rig Counts Continue Big Decline in April, NE May Have Bottomed). In May, the number slide again–to 857 land-based rigs (a loss of another 86 rigs going idle). Double ouch. What about the Marcellus/Utica region? Did those rigs decline in May?…
Read More “Rig Counts Take Another Hit in May, Rapid Decline Continues”
Industrywide Issues | Ohio | Statewide OH | Taxation

Kasich Predicts Severance Tax Deal Will Happen, Others Say No
June 8, 2015June 8, 2015

Once upon a time Ohio Gov. John “foreigner hunter” Kasich (Republican) wanted to tax Utica Shale drillers 2.5%. But then he talked to some of his Democrat buddies and decided to hike it. After thinking it over, Kasich finally settled on 6.5%. When Kasich got resistance to his brilliant tax increase idea, he threatened the drilling industry by saying take my 6.5% or “someone else” may push for a ballot measure of 10% (see OH Gov Kasich the Bully: Accept My 6.5% Tax or Risk a 10%+ Tax). Kasich has been on the 6.5% bandwagon from some months now, and not giving in. One news account says he’s about to go down in defeat yet again, but another news account has him buoyant, like he’s about to get what he wants…
Read More “Kasich Predicts Severance Tax Deal Will Happen, Others Say No”
Ohio | Statewide OH

Utica Natgas Production by County in Ohio for 1Q15 – Top 6
June 3, 2015June 2, 2015

Which counties in Ohio produced the most shale gas in the first quarter of 2015? Can you guess? We have the top 6 (of 17) listed below…
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