Statewide OH

Anti-Drilling/Fossil Fuel | Industrywide Issues | Ohio | Regulation | Statewide OH

Water Withdrawals from Creeks Next Point of Attack for Antis in OH?
December 29, 2014December 29, 2014

Are water withdrawals the next point of attack for anti-drillers in Ohio? Perhaps. We noticed an interesting story where a pair of elected Democrats (one from the Ohio House, one from the Ohio Senate) are making noise about the drilling industry’s unrestricted right to withdraw water from creeks as long as they report it to the Ohio Dept. of Natural Resources (ODNR). The Dem politicians seem to be saying they would like to slap a new law in place to limit (or disallow) water withdrawals…
Read More “Water Withdrawals from Creeks Next Point of Attack for Antis in OH?”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Ohio | Regulation | Statewide OH | Wastewater

OH Anti Group Wants EPA to Suspend ODNR Injection Well Oversight
December 24, 2014December 24, 2014

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. “Mommy, mommy! Johnny hurt my feelings!” Such is the case with Ohio Citizen Action (OCA), an anti-drilling group that is accusing the Ohio Dept. of Natural Resources (ODNR) of falling down on the job when it comes to regulating injection wells–wells used to dispose of frack wastewater. OCA’s demand? That the federal EPA suspend ODNR’s oversight of the injection well program in Ohio and that the feds move in and take over. OCA used 16 untrained volunteers (activists), gave them mountains of official paperwork from the ODNR archive, and armed each of them with yellow highlighters. The 16 untrained volunteer activists found every reference they could of what they say is incompetence and malfeasance by the ODNR, stitched it all together in a “report” (full copy below), and are now calling on Mommy EPA to “do something” about it…
Read More “OH Anti Group Wants EPA to Suspend ODNR Injection Well Oversight”
Energy Companies | Hinto Energy | Ohio | Statewide OH | Utica Shale

Potential New OH Utica Driller First Drills Conventional Oil Well
December 23, 2014December 23, 2014

A very small independent oil and gas company headquartered in Denver, CO, Hinto Energy (market cap of $5.4 million), issued a press release today to say they’ve drilled a shallow, conventional oil well in the Berea Sandstone of Ohio. A conventional driller targeting shallow rock layers is typically not something that catches our attention. The thing that does catch our attention is that Hinto is also eyeing other rock layers for the leases they own in Ohio–including the Utica Shale. Hinto has not previously drilled any horizontal shale wells, from what we can tell. It appears they didn’t even drill this conventional Ohio Berea well as their announcement states they will maintain a “75% non-operated interest” (i.e. ownership) in the well. Non-operated means they didn’t do the drilling. While this isn’t big news by any stretch, it is notable that yet another E&P is sniffing around the Ohio Utica…
Read More “Potential New OH Utica Driller First Drills Conventional Oil Well”
Deep Well Services | Energy Services | Industrywide Issues | Ohio | Pennsylvania | Statewide OH | Statewide PA | Supply Chain

PA Snubber DWS Continues to Expand, Adds New Rigs for Utica Shale
December 19, 2014December 19, 2014

In September, MDN told you about Deep Well Services, the only “snubbing” oilfield services company headquartered in Pennsylvania (see PA “Snubbing” Company DWS Experiences Rapid Expansion). Once again the company is on the grow, adding several new rigs to its expanding fleet…
Read More “PA Snubber DWS Continues to Expand, Adds New Rigs for Utica Shale”
American Energy Partners | Energy Companies | HG Energy | Ohio | Statewide OH | Utica Shale

McClendon Deal Last June was HG Energy’s OH Utica Acreage/Wells
December 18, 2014December 18, 2014

Columbus Business First is reporting that during this past summer’s wheeling and dealing by Aubrey McClendon and his American Energy Partners (see McClendon Buys 48K WV Marcellus Acres, 27K More OH Utica Acres), McClendon picked up HG Energy’s Ohio Utica Shale acreage–all 27,000 acres–along with HG’s already-drilled Utica Shale wells (in the June announcement HG was simply referred to as “an unnamed private company”). HG Energy has now fully exited the Utica Shale. Oh! Two of the HG wells purchased by McClendon as part of that deal were in the top 10 most productive wells in the state for 3Q14. Yet another smart move by Aubrey…
Read More “McClendon Deal Last June was HG Energy’s OH Utica Acreage/Wells”
Energy Services | EnLink Midstream | Industrywide Issues | NGLs | Ohio | Pipelines | Statewide OH

EnLink Launches 1 Month Open Season for ORV Condensate Pipeline
December 18, 2014December 18, 2014

In August, MDN told you about EnLink Midstream’s newly planned condensate pipeline. The Ohio River Valley (ORV) Pipeline, as it’s called, will connect to EnLink’s existing 200-mile pipeline in eastern Ohio and West Virginia, providing drillers in the region access to markets through EnLink’s Bells Run barge facility and Black Run rail terminal (see EnLink Midstream Announces New Condensate Pipeline in ORV). The OVR Pipeline, expected to be completed in the second half of 2015, will have an initial capacity of approximately 50,000 barrels per day (bpd). Yesterday EnLink announced a binding open season for the pipeline–the time when drillers and other customers can sign up to reserve capacity on the new pipeline…
Read More “EnLink Launches 1 Month Open Season for ORV Condensate Pipeline”
Energy Companies | Energy Services | Industrywide Issues | Ohio | Pipelines | Statewide OH | Summit Midstream | Utica Shale | XTO

XTO Gets Serious in OH Utica, Hires Summit for Gathering System
December 16, 2014December 16, 2014

XTO Energy, wholly-owned subsidiary of ExxonMobil, has an active drilling program in the Marcellus and Utica Shale region. But when was the last time you heard anything about new wells or activity by XTO? The company largely stays off the radar. According to MDN’s Marcellus and Utica Shale Databook, the company gets somewhere between 20-25 new permits every four months to drill in the PA Marcellus. So far this year, XTO has received 11 and 17 permits (Jan-Apr and May-Aug respectively) for new wells in the Ohio Utica Shale, which is the first appreciable drilling done by the company in the Utica. With Utica drilling under way, it must be time to build pipelines to connect the wells–and right on cue, we have an announcement from Summit Midstream Partners that they’ve signed a contract with XTO to build a gathering pipeline network…
Read More “XTO Gets Serious in OH Utica, Hires Summit for Gathering System”
Commodity Price | Industrywide Issues | Ohio | Statewide OH

Dominion East Ohio Says Natgas Prices Stay “Moderate” This Winter
December 16, 2014December 16, 2014

Dominion East Ohio, a natural gas utility operating in the Buckeye State, issued a statement yesterday for the benefit of its customers to say, in essence, the price of natural gas this winter shouldn’t spike like they did last year with the polar vortex. In fact, Dominion East says rates will likely be lower. Characterizing the rates for this winter as “moderate,” Dominion East said the overall rate will not exceed $6 per thousand cubic feet (Mcf). Why? Because of the natural gas being produced in the prolific Marcellus and Utica Shale…
Read More “Dominion East Ohio Says Natgas Prices Stay “Moderate” This Winter”
Commodity Price | Crude Oil | Industrywide Issues | Ohio | Statewide OH | Utica Shale

OOGA Says Some Drilling in OH Stopped by Low Oil Price
December 15, 2014December 15, 2014

Sean Bennett, formerly with Energy in Depth and now senior vice president of the Ohio Oil & Gas Association (OOGA), says that low oil prices, if they stay low, will soon affect some drilling in the Ohio Utica Shale. He points to PDC Energy’s recent decision as one example (see PDC Energy Pushes Pause Button on OH Utica Drilling for 2015). But, will low oil prices affect significantly more Utica drilling?…
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Energy Services | Energy Transfer Partners | Industrywide Issues | Ohio | Pipelines | Regulation | Statewide OH

ET Rover Pipeline’s 800-Mile Journey Begins with FERC Filing
December 15, 2014December 15, 2014

Energy Transfer Partners plans to build an 800-mile, $4.4 billion pipeline that will connect the Marcellus and Utica Shale region to Canada (see ET Rover Pipeline Fully Subscribed, Project Scope Revised Up). The pipeline will connect Pennsylvania, West Virginia and Ohio and cross the Buckeye State going northwest before entering Michigan and eventually taking a dog-leg into Ontario (see the map embedded below). These kinds of projects take multiple years to complete–with many steps. On Friday, ET filed their draft Resource Reports of environmental survey data with the Federal Energy Regulatory Commission (FERC). It’s one of the first steps on an 800-mile journey…
Read More “ET Rover Pipeline’s 800-Mile Journey Begins with FERC Filing”
Industrywide Issues | Litigation | Ohio | Statewide OH

4 Important Dormant Mineral Act Cases with OH Supreme Court
December 15, 2014December 15, 2014

In September, MDN shined a light on an important issue for both landowners and drillers in the Ohio Utica Shale: the Dormant Minerals Act, or DMA (see Video: OH Lawyers Explain Dormant Minerals Act & Impact on Utica). The Ohio Supreme Court currently has four cases before it that deal with the DMA. The high court could rule on any one (or all) of them at any time. Here’s a helpful summary of the situation from legal beagle David Wigham, from the firm Critchfield, Critchfield & Johnston, in Wooster, Ohio…
Read More “4 Important Dormant Mineral Act Cases with OH Supreme Court”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Ohio | Statewide OH | Statewide WV | West Virginia

Ohio River Valley Anti-Drilling Groups Meet in WV to Plot Strategy
December 12, 2014December 12, 2014

Extremist so-called environmental groups can’t get much traction on their own, so increasingly national groups–like the odious Food & Water Watch and infamous Sierra Clubbers–form alliances and umbrella groups. It makes it look like that there are millions and millions who oppose shale drilling (when such is not the case). What works for the big guys ought to work for the little guys too, right? The trend we see is for small fringe groups to also throw in their lot together (strength in numbers). A group of tiny fringe enviro groups in the Ohio River Valley (WV and OH) recently got together in Huntington, WV to swap lies and collude on their next attack strategies…
Read More “Ohio River Valley Anti-Drilling Groups Meet in WV to Plot Strategy”
Ohio | Statewide OH | Utica Shale

Latest ODNR Maps Showing Where Utica/Marcellus Wells are Located
December 11, 2014December 10, 2014

A couple of nifty maps to share with you, courtesy of the Ohio Dept. of Natural Resources. The ODNR recently updated their maps showing both Utica Shale activity (permitted, drilled, producing, etc.), and showing the same for Marcellus wells in Ohio. Yes! There are a few Marcellus wells in Ohio…
Read More “Latest ODNR Maps Showing Where Utica/Marcellus Wells are Located”
Industrywide Issues | Ohio | Regulation | Statewide OH

OH House Bill 490 in Trouble – Frack Chemical Data for 1st Responders
December 11, 2014December 10, 2014

This is the ongoing saga of Ohio House Bill 490, a Hail Mary comprehensive omnibus bill that would tackle a number of issues, including fixing reporting rules that restore access to a database of chemicals used at various drilling sites to first responders (their access was taken away by anti-drillers last year, see OH Antis Force Change in Chemical Reporting, Everyone Less Safe). The ODNR wants new language in HB 490 to fix the problem, but the language passed, once passed through politicians’ hands, turned from gold into lead (see OH Senate Asked to Fix Language in Frack Chemical Reporting Bill). Although the Senate is trying to plug all of the holes in 490, it looks like the good ship 490 is about to sink…
Read More “OH House Bill 490 in Trouble – Frack Chemical Data for 1st Responders”
Industrywide Issues | Ohio | Research | Statewide OH | Utica Shale

Benesch Shale Report 3Q14: Upstream, Midstream & Downstream
December 11, 2014December 10, 2014

Each quarter the Ohio law firm of Benesch Friedlander Coplan & Aronoff LLP produces an Ohio shale update. MDN often shares their updates–well worth your time to read. The latest edition, covering Utica Shale activity in the third quarter of 2014, is embedded below. This issue highlights infrastructure announcements, financial results for some of the Utica’s largest drillers, supply chain news and regulatory news. Take time to read this well-crafted summary (will only take you a few minutes)…
Read More “Benesch Shale Report 3Q14: Upstream, Midstream & Downstream”
Energy Companies | Ohio | PDC Energy | Statewide OH | Utica Shale

PDC Energy Pushes Pause Button on OH Utica Drilling for 2015
December 10, 2014December 10, 2014

PDC Energy, with 67,000 acres of leases in Ohio’s Utica Shale, is not among the largest Utica drillers. But they’re by no means insignificant either. The company released their 2015 capital expenditure (capex) budget and production guidance yesterday. PDC says they will idle their single drilling rig in the Ohio Utica in 2015 and spend just $38 million in the Utica next year (compared to $190 million in 2014) to finish up several wells already begun. PDC says the price of natgas is just too darned low right now and that they will be back when the price goes up. (Our thought: PDC will have a long wait!) PDC is instead spending their money in the Niobrara Shale in Colorado–although the company plans to spend 14% less next year than they did this year…
Read More “PDC Energy Pushes Pause Button on OH Utica Drilling for 2015”