Statewide OH

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)…
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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…
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Ohio | Statewide OH | Utica Shale

Ohio’s Top 10 Producing Utica Gas & Oil Wells for 3Q14
December 8, 2014December 8, 2014

On Friday the Ohio Dept. of Natural Resources (ODNR) released their quarterly production numbers for third quarter 2014 for OH’s Utica oil and gas wells. The report shows that oil production increased 22% over the previous quarter, and natural gas increased a whopping 48% over the previous quarter. Below we have the ODNR’s high level overview of the numbers, along with our own analysis showing: the top 10 producing gas wells, the top 10 producing oil wells, and then the top 10 gas and oil wells as ranked by average production per day. There is a difference! The longer an oil or gas well is online, the less it produces. Newer wells produce more. So we show you which wells are not just producing the most quantity overall, but which wells are producing at the fastest (most productive) rates–even if they haven’t yet been online a full three months (92 days). We also include the complete list of 673 wells that had at least some Utica oil or gas production in 3Q14 in a more usable format than that provided by the ODNR…
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Industrywide Issues | Ohio | Pipelines | Statewide OH

OH Landowners Outside Utica Get Piece of the Action via Pipelines
December 8, 2014December 8, 2014

You’d have to be living on the planet Mars (or perhaps Mars, PA) to not know that pipeline infrastructure has virtually taken over the spotlight from shale drilling in places like Pennsylvania, Ohio and West Virginia. Contrary to the continuing tripe that “shale supplies of gas and oil will give out any day now” that we continue to hear from certain discredited sources, supplies (in the northeast) continue to increase. And along with those supplies comes a need for pipelines. The Ohio Farm Bureau is telling OH landowners that even if they aren’t in the Utica-rich eastern portion of the state, there’s still a chance they can cash in on the shale boom because of the pipelines coming their way…
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Columbiana County | Energy Services | Industrywide Issues | Monroe County | Ohio | Pipelines | Regulation | Spectra Energy | Statewide OH

FERC Approves OPEN Pipeline in Eastern OH, Gas Goes to Gulf Coast
December 5, 2014December 5, 2014

Christmas continues to come a few weeks early for some of our biggest midstream (pipeline) companies. MDN told you earlier this week that the Federal Energy Regulatory Commission (FERC) had approved the Constitution Pipeline from NEPA up into NY. We now have word that FERC has approved Spectra Energy’s OPEN (Ohio Pipeline Energy Network) project in Ohio. Spectra originally announced the project in December 2011, a project that will build 76 miles of new pipeline from Columbiana County to Monroe County to connect to the Texas Eastern Pipeline, and then reverse the flow–make it bidirectional–on the Texas Eastern in order to carry Marcellus and Utica Shale gas from eastern Ohio to the Gulf Coast. Spectra finally filed a full, official application with FERC in February of this year (see Spectra Energy Files Formal Request with FERC for OPEN Pipeline). On Tuesday, FERC gave its final blessing for the OPEN project…
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Economic Impact | Energy Services | Energy Transfer Partners | Industrywide Issues | Jobs | Ohio | Pipelines | Statewide OH | Taxation

Property Tax Revenue/Economic Impact from ET Rover Pipeline in OH
December 4, 2014December 4, 2014

Seems like “all of a sudden” large pipeline projects planned for the northeast have begun talking about how much property taxes (and economic impacts) their projects will pay out. Yesterday it was the 550-mile Atlantic Coast Pipeline project from Dominion (see Atlantic Coast Pipeline: $25M/Yr in Prop. Tax, $70M/Yr Econ Impact). Today? Energy Transfer Partners’ Rover pipeline, a 620-mile pipeline that will carry Marcellus and Utica Shale gas west, through Ohio into Michigan and on to Ontario, Canada (see Big News: ETP “Rover” Marcellus/Utica Pipeline to Midwest/Canada). How much of an economic impact and how much in property tax will it pay out? We have some numbers…
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American Energy Partners | Energy Companies | Industrywide Issues | Jobs | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

Aubrey McClendon Raises Another $500M for More Leases
December 2, 2014December 2, 2014

Low oil prices don’t seem to be affecting Aubrey McClendon’s ability to raise cash. He’s just landed another half a billion dollars, which he plans to use to lease more land in the Utica, Marcellus and two other shale plays. McClendon and his American Energy Partners is also looking for new employees. Hey Chesapeake workers–tired of answering to Carl Icahn and seeing your friends axed from the payroll (wondering if you’re next)? Send your resume to Aubrey! Here’s the AEP announcement from yesterday…
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Accidents | Energy Services | Harrison County | Industrywide Issues | MarkWest Energy | Ohio | Pipelines | Regulation | Statewide OH

MarkWest Fined $320K by Ohio EPA for Mud Spills in Creeks/Swamps
December 1, 2014December 1, 2014

MarkWest Energy, the largest midstream company in the Marcellus/Utica, has spent the last three years building pipelines in eastern Ohio to connect wells to processing plants and to larger interstate pipelines. In the process, the company has spent some $2.2 billion building 350 miles of pipeline (and processing plants)–and MarkWest isn’t done yet. However, during the rapid buildout of infrastructure in the Buckeye State, some minor spills have happened along the way. When drilling under creeks and swamps (otherwise renamed as “wetlands”), occasionally drilling mud spilled out–some 19 different times between 2012 and 2013. The Ohio EPA has concluded their investigation and has just fined MarkWest $320,000 for the series of spills…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Ohio | Regulation | Statewide OH

OH Senate Asked to Fix Language in Frack Chemical Reporting Bill
December 1, 2014December 1, 2014

Anti-drillers are fundamentally unhappy people. They want no drilling, so in an effort to try and scuttle drilling, they do stupid things–like last year when they forced a change in Ohio away from filing lists of chemicals used at drill sites electronically to having them filed by paper instead (see OH Antis Force Change in Chemical Reporting, Everyone Less Safe). Going backward is not a good plan, so the Ohio Dept. of Natural Resources (ODNR) lobbied for new changes in the chemical reporting law to fix the mess caused by anti-drillers. The changes were made two weeks ago when an omnibus environmental and agricultural bill was passed by the Ohio House. Problem is, the changes made weren’t the ones ODNR wanted…
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Energy Services | Industrywide Issues | Ohio | Pennsylvania | Pipelines | Processing Plants | Regency Energy Partners | Statewide OH | Statewide PA | Statewide WV | Sunoco Logistics | West Virginia

Sunoco Logistics, Regency Energy Presentations from Analyst Day
November 24, 2014November 24, 2014

Last week both Regency Energy Partners, which purchased PVR Partners a little over a year ago (PVR having a major footprint in the Marcellus/Utica), along with Sunoco Logistics, another major midstream player in the northeast, participated in an analyst day last week at Ritz-Carlton in Dallas. While we don’t have a transcript, we do have the PowerPoint slide decks from both companies. And what we find on some of those slides is illuminating…
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Industrywide Issues | Landfills | Ohio | Regulation | Statewide OH

OH Regulators Issue Guidance to Landfills on Accepting Frack Waste
November 20, 2014November 20, 2014

Three days ago the Ohio EPA, the Ohio Dept. of Natural Resources’ (ODNR) Division of Oil and Gas Resources Management, and the Ohio Department of Health issued a joint 4-page “guidance letter” to landfills in Ohio that clarifies how and when they can dispose liquid and solid waste from oil and gas drilling (full copy embedded below). According to our friends at the Babst Calland law firm, “The letter addresses what waste is defined as solid waste that must be disposed in landfills, classification of certain drill cuttings as not constituting regulated solid waste, and substances classified as TENORM that must be analyzed for radioactivity prior to landfill disposal.” Ohio landfill operators and Ohio drillers will need to pay attention to these new guidelines, some of which recently went into effect…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Landfills | Litigation | Ohio | Regulation | Statewide OH | Wastewater

Another Day, Another Lawsuit from Food & Water Watch
November 20, 2014November 20, 2014

The anti-drilling Fresh Water Accountability Project (FWAP)–based in Ohio–along with the odious and litigious (and misnamed) Food & Water Watch have once again, sued. Surprise! This time they’ve sued OH Gov. John Kasich along with the Ohio Department of Natural Resources (ODNR) for what they claim are the “illegal approval of at least 23 fracking waste handling, storage, processing and recycling facilities to operate.” Lea Harper, head of the so-called FWAP, has been involved in other anti-drilling lawsuits, including one against the Muskingum Watershed Conservancy District. FWW must have to employ a librarian to keep track of all their anti-drilling lawsuits. Here’s the latest bald-faced lies from these two litigious organizations:
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Dominion Energy | Education | Energy Services | Industrywide Issues | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide VA | Statewide WV | Virginia | West Virginia

Dominion Awards $1M in Grants to Colleges in Marcellus/Utica
November 19, 2014November 19, 2014

Each year Dominion, a major midstream and utility company with operations throughout the northeast, donates money in education grants via their Dominion Foundation to schools ranging from pre-K through college in the states where Dominion does business: Ohio, Connecticut, Maryland, North Carolina, Pennsylvania, Virginia, West Virginia, and the District of Columbia. Dominion, you may recall, is the company building the East Coast’s first LNG export facility, investing $3.4-$3.8 billion (see Dominion Breaks Ground on Cove Point, MD LNG Export Facility). They also want to build the 550-mile, $5 billion Atlantic Coast Pipeline from WV to NC (see Dominion Asks FERC to Start Environmental Review of SE Pipeline). The company pumps a lot of money back into local communities where they operate with their investments. They also pump a good bit back via charitable contributions, including $1 million for colleges in the Marcellus/Utica region in 2014…
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Carrizo Oil & Gas | Energy Companies | Ohio | Pennsylvania | Statewide OH | Statewide PA | Utica Shale

Carrizo Scales Back in Marcellus, Keeps Drilling in Utica
November 18, 2014November 18, 2014

What a difference three months can make. In second quarter 2014 Carrizo Oil & Gas drilled 9 Marcellus wells and purchased more Utica acreage (see Carrizo 2Q14: Drills 9 Marcellus Wells, Buys More Utica Acreage). In third quarter 2014, Carrizo didn’t drill or complete any Marcellus wells, they began work to complete their second-ever Utica well and now have plans to drill only 5 more Utica wells in 4Q13. The problem seems to be lack of infrastructure (pipelines) to carry any production from their wells to market, as well as stubbornly low prices for natural gas in the northeast–leading to voluntary “curtailment” on the part of Carrizo (they shut the wells off for a period of time). Carrizo is re-focusing their efforts on the more oily Eagle Ford and Niobrara Shale plays…
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Earthquakes | Energy Services | GASFRAC | Hydraulic Fracturing | Industrywide Issues | Ohio | Statewide OH | Utica Shale

GASFRAC Says LPG Waterless Fracking May Prevent Earthquakes
November 18, 2014November 18, 2014

Last week MDN was the first to bring you the news that Canadian company GASFRAC has (after two years) finally begun fracking an Ohio Utica Shale well using liquefied petroleum gas, or LPG (see GASFRAC Begins Waterless Fracking Job in OH Utica). GASFRAC’s senior management held an analyst call last week to discuss the company’s performance (the company’s financials are not good). As part of that call was a Q&A in which the Utica well they’re now working on was discussed. We found the banter interesting. One of the more interesting aspects was GASFRAC’s contention that LPG fracking used in places where earthquakes are a concern (like Ohio) may reduce the likelihood of a fracking-induced earthquake from occurring…
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Industrywide Issues | Litigation | Ohio | Statewide OH

Another OH DMA Case Decided in Favor of Landowners
November 17, 2014November 17, 2014

For some time now MDN has been following court challenges to Ohio’s Dormant Mineral Act (DMA). The DMA is really two pieces of legislation: One which went into effect in 1989, the other which sought to clarify the 1989 law that went into effect in 2006 (see Video: OH Lawyers Explain Dormant Minerals Act & Impact on Utica). The Ohio Supreme Court has heard a case on the DMA but has still not ruled. However, other cases on the periphery of the DMA have been decided (see OH 7th Circuit Court of Appeals Decision on Dormant Minerals Act). Another such case, Wendt v. Dickerson, was decided a few weeks ago–a case which found in favor of landowners who want to reclaim mineral rights in certain circumstances…
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