Statewide OH

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…
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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…
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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…
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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…
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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…
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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…
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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?…
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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…
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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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Ohio | Statewide OH

1Q15 Ohio Production Numbers Released: Natgas Production Up 11%
June 2, 2015June 2, 2015

The Ohio Dept. of Natural Resources (ODNR) released their first quarter 2015 production report yesterday. It shows natural gas production in the Buckeye State was up 11% from the previous quarter. That rate of increase has slowed (but is still good, all things considered). In 4Q14 production numbers were up 25% from the previous quarter. The production number increase for 1Q15 slowing to only 11% is a reflection of less new drilling in the state. There’s plenty of Utica wells already drilled awaiting completion and connection to pipelines–so production will almost certainly continue to increase in Ohio for the foreseeable future–albeit at a slower pace. According to yesterday’s report, Ohio produced 183.6 billion cubic feet (Bcf) of natural gas, and 4.4 million barels of oil in 1Q15. Note that NGLs are part of the natural gas figures–Ohio doesn’t break out NGLs in a separate number, unfortunately. Below are a few of the highlights from the ODNR, with a link to download the full production report…
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Belmont County | Guernsey County | Monroe County | Noble County | Ohio | Statewide OH

Top 6 Utica Natgas & Top 6 Utica Oil Wells by Production in 1Q15
June 2, 2015June 2, 2015

Yesterday the Ohio Dept. of Natural Resources (ODNR) released their first quarter production numbers for both oil and natural gas (see our companion story today). Below are details for the top 6 natural gas producing wells, and the top 6 oil producing wells in the state. Rice Energy and Antero Resources split the top 6 natural gas wells with three apiece. Of note, Rice’s wells took the top 3 slots. Aubrey McClendon’s American Energy drilled the most top oil wells (4 of the top 6), followed by one apiece for Antero Resources and PDC Energy…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Ohio | Regulation | Statewide OH | Wastewater

Anti-Drillers Ask Fed EPA (Again) to Regulate OH Injection Wells
June 2, 2015June 2, 2015

In December we wrote about anti-drillers in Ohio asking the federal Environmental Protection Agency (EPA) to step in an usurp the legal authority of Ohio’s Dept. of Natural Resources in their role of overseeing wastewater injection wells (see OH Anti Group Wants EPA to Suspend ODNR Injection Well Oversight). As we wrote at the time, “Whenever anti-drillers in a given state don’t like how the state environmental authority is doing its job, they run to the federal government like a petulant child clinging to its mother’s skirt.” The petulant children are back, asking yet again for the EPA to take over injection well regulation in the Buckeye State…
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American Energy Partners | Energy Companies | Ohio | Statewide OH | Utica Shale

McClendon Running Out of Money?! Paloma Utica Deal Goes Bust
May 28, 2015May 28, 2015

In February 2014 MDN told you about a deal cut by wildcatter Aubrey McClendon to lease 130,000 acres in the Ohio Utica Shale, a deal with three different companies (see McClendon Confirms 3 New Utica Shale Deals: Hess, XTO, Paloma). At least one of those deals, with Paloma Resources, went bust this year. According to Paloma’s president, Christopher O’Sullivan, Aubrey didn’t have enough money to close the deal. Which makes us ask the question, is Aubrey running out of money to finance his massive expansion in the Utica?…
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Ohio | Statewide OH

John “Foreigner Hunter” Kasich Ready to Announce Run for President
May 28, 2015May 28, 2015

This is so rich. RINO John Kasich, governor of Ohio and someone who despises “foreigners” from places like Texas and Oklahoma from working in his state while courting investments from Thailand and Japan with big money incentives (see OH Gov Kasich Keeps Cracker Plant “Incentives” a Secret–for Now), and someone who wants to tax the Utica Shale industry into oblivion (see OH Gov Kasich the Bully: Accept My 6.5% Tax or Risk a 10%+ Tax), thinks he’s presidential timber. We previously told you Kasich was seriously considering a run for the White House (see OH Gov “Tax Oil and Gas” Kasich Wants to Run for White House). We kind of thought it was a joke. Well, it’s no joke. According to a story in the Washington Post, Kasich will soon make an official announcement that he’s running…
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