Statewide OH

Industrywide Issues | Jobs | Ohio | Statewide OH

OH Makes $150K Grant to Union to Train Utica/Marcellus Welders
July 7, 2014July 7, 2014

More highly skilled (and highly paid) welders will be on the way soon in the Utica and Marcellus Shale thanks to a $150,000 training grant by the State of Ohio to the Plumbers & Pipefitters Local 396. The grant, from the Governor’s Office of Appalachia, will train (or retrain) 40 union welders over the next one year. The money will put Ohioans back to work by working in the gas fields (no “foreigners” need apply). Here’s the official announcement:
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Ohio | Statewide OH

OH Natgas Production Doubles from 2012 to 2013 Thx to the Utica
July 3, 2014July 3, 2014

Yesterday the Ohio Dept. of Natural Resources (ODNR) released production numbers for 2013 and the numbers were truly impressive. ODNR says all oil and gas wells (conventional and unconventional/shale) in Ohio produced 8 million barrels of oil and 171 billion cubic feet of gas in 2013. Compared to 2012, Ohio’s total oil production increased by 62% and natural gas production increased by 97%. The increase in natural gas is due almost entirely to the Utica Shale…
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Ohio | Statewide OH

Ohio Utica’s Top 10 Gas Wells & Top 10 Oil Wells 1Q14
July 3, 2014July 3, 2014

The Ohio Dept. of Natural Resources not only released 2013 full year oil and gas production figures yesterday, they also released first quarter 2014 production figures. For 1Q14 the state’s Utica wells produced almost 2 million barrels of oil and 67 billion cubic feet of natural gas from 418 operating wells (out of 476 completed wells). Below MDN has assmebled the Top 10 natural gas producing wells for 1Q14, the top 10 oil wells, and stats by county and by driller. It paints a fascinating picture…
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Lease & Royalty Payments | Ohio | Statewide OH | Utica Shale

MWCD Reinvesting $300M of Utica Shale Revenue over Next 10 Yrs
July 3, 2014July 3, 2014

The Muskingum Watershed Conservancy District (MWCD) covers more than 8,000 square miles of rivers, reservoirs and creeks that drain into the Muskingum River. It is the largest wholly contained watershed in the state of Ohio, covering about 20% of the state. MWCD owns 54,000 acres of land. Early in the Utica Shale boom in Ohio the MWCD was scared off from participating (see Muskingum Watershed Reverses Decision to Sell Water to Drillers). But it wasn’t long before the MWCD board found their resolve and started to not only sell water for Utica fracking, they started leasing land like crazy (see Antero Pays $15K/Acre, 20% Royalties for MWCD Piedmont Lake Lease). All of those water sales and leases for drilling are now paying off for MWCD rate payers and indeed for all Ohioans…
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Industrywide Issues | Jobs | Ohio | Statewide OH

OH Dem Gov Candidate Tries to Outdo “Foreigner Hunter” Kasich
July 3, 2014July 3, 2014

This is interesting. We didn’t even know there is a governor’s race in Ohio this year. The OH race is probably not newsworthy because the Democrat running against John Kasich doesn’t stand a prayer of a chance. Most polls we checked have Kasich trouncing his opponent–Cuyahoga County Executive Ed FitzGerald–by at least 10 points. However, what’s interesting and noteworthy is that FitzGerald is trying to out-foreigner hunter the foreigner hunter himself, Gov. Kasich. You may recall MDN labeled Kasich “the foreigner hunter” back in 2012 after he started his jingoistic talk labeling out-of-state experts who work on some of Ohio’s drilling rigs and in the Ohio Utica Shale as “foreigners” (see OH Gov. Kasich Continues Trash Talk Out-of-State Workers). Such talk is unbecoming a governor and unbecoming a supposed conservative–and we continue to point it out. Well it seems Democrat FitzGerald is even more extreme than Kasich…
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Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | GreenHunter Resources | Industrywide Issues | Ohio | Pennsylvania | Pipelines | Statewide OH | Statewide PA | Statewide WV | West Virginia

3 New (Short) Pipelines from GreenHunter in Tri-state Area
June 30, 2014June 30, 2014

GreenHunter Resources, a subsidiary of Magnum Hunter Resources, is making small moves to compete with MarkWest Energy and Williams. Today, GreenHunter announced they are building (in a partnership with Major Pipeline LLC) three new, short pipelines. The three pipelines represent a total of 34 miles of new pipeline, when added together. One pipeline each will be dedicated to brine/wastewater, fresh water, and condensate. Two of the pipelines will originate in southwestern PA and one in WV. All of them will connect with one of GreenHunter’s barge terminals on the Ohio River. Also in the mix is a condensate “splitter”…
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Energy Services | Energy Transfer Partners | Industrywide Issues | Ohio | Pipelines | Statewide OH

Big News: ETP “Rover” Marcellus/Utica Pipeline to Midwest/Canada
June 27, 2014June 27, 2014

Midstream company Energy Transfer Partners (ETP) announced a major new Marcellus/Utica Shale pipeline infrastructure project yesterday that will transport up to 3.25 billion cubic feet per day of northeast shale gas to markets in the Midwest and Canada. Dubbed the Rover Pipeline Project, ETP says they already have three important (and big) customers lined up to use the new pipeline system, including Aubrey McClendon’s American Energy Partners, Antero Resources and Range Resources. A binding open season to sign up more customer begins today and runs for a month. The first leg of the new pipeline will connect PA, WV and southeast OH processing plants by crossing Ohio, following an existing pipeline route. A second leg will connect northwestern OH to Canada by slicing up through Michigan. Here’s the particulars, along with a map…
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Industrywide Issues | Ohio | Statewide OH | Taxation

Anti-Drilling Policy Matters Ohio Says Severance Tax Too Low
June 25, 2014June 25, 2014

It probably won’t surprise you to learn that the far left, anti-drilling group Policy Matters Ohio (PMO) doesn’t like the current proposed severance tax of 2.5% for Ohio. It’s not nearly high enough to chase drillers away for PMO, and there’s waaaay too many “tax breaks” in House Bill 375, the severance tax bill, for their taste. But then, every last dime earned by hardworking drillers belongs to the government, right? The government should just let those nasty drillers keep a little bit of it so the government can spend it on people who didn’t earn it, right? That’s the attitude of PMO…
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Chesapeake Energy | Energy Companies | Ohio | Statewide OH | Utica Shale

Chesapeake CEO Lawler Calls Himself “Anti-Core”
June 20, 2014June 20, 2014

Speaking at a conference this week, Chesapeake Energy CEO Doug Lawler says he doesn’t believe in nonsense like “core of the core” in given shale plays–like the Utica. Lawler says he’s “anti-core” and instead of trying to zero in on the best-producing locations in a play he would rather not limit himself or technology. Which is all kind of funny since Chessy missed the core in the Utica Shale. Lawler’s comments are a tacit admission that they blew it in the Utica, so now they’ll make some lemonade with the lemons in their hand and simply ignore reality…
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Energy Services | Industrywide Issues | Ohio | Pipelines | Rockies Express Pipeline | Statewide OH

Rockies Express Pipeline Reverses Flow from Utica to Midwest
June 19, 2014June 19, 2014

Nearly a year ago MDN tipped you off that the Rockies Express (REX) Pipeline would reverse at least part of its flow and start sending natural gas from the Utica/Marcellus to the Midwest (see REX Reverses Pipeline Flow from OH for Mystery Utica Customer). That momentous day has arrived. As of today, a new 14.3-mile lateral is flowing gas north from the MarkWest Seneca natural gas processing plant to the REX mainline, where a newly built compressor station will allow the gas to be delivered to points west in Ohio, Indiana, and Illinois. Eventually the gas may also go to Missouri…
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Chesapeake Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Ohio | Statewide OH

OH Landowners Lose Important Lease Case to Chesapeake
June 17, 2014June 17, 2014

Sometimes the drilling industry gets a well-deserved black eye for their sleazy actions. This is one of those times. Chesapeake Energy took over low-ball leases signed in Jefferson County, OH in 2007 that awarded landowners $10 per acre. The lease calls for paying $10 per acre until the land is drilled. Original term of the lease was five years. But at the end of the five years Chessy automatically renewed it based on something called “paragraph 19” in Ohio’s contract law. Chessy says the language in the lease allows them to renew with the same screw-ya terms. Thing is, landowners who waited now get thousands per acre when signing a lease…
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Access Midstream Partners | Energy Services | EnLink Midstream | Industrywide Issues | Ohio | Stark County | Statewide OH | Supply Chain | Utica Shale

Important Supply Chain Takeaways from Chamber Midstream Meeting
June 13, 2014June 13, 2014

The Canton, OH Regional Chamber of Commerce recently hosted the Midstream Ohio 2014 event to help connect companies seeking to sell to the Utica drilling industry with those drilling and building pipelines. By all accounts it was a huge success for both sides. Here’s some great takeaways from the event, to help supply chain companies that want to sell, or sell more, to the Utica industry:
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Economic Impact | Industrywide Issues | Ohio | Pennsylvania | Research | Statewide OH | Statewide PA

OH Schools Save $60M, PA Schools Save $45.5M Last Year from Shale
June 9, 2014June 9, 2014

The American Petroleum Institute released a new study at the end of May titled, “The Unconventional Energy Revolution: Estimated Energy Savings for Public School Districts and State and Local Governments” (full copy embedded below). The study shows school districts and government offices have saved a boatload of money thanks to the ongoing shale revolution. BIG money. To further drive the point home and make it understandable, the API has released a number of press releases breaking down the numbers state by state. For example, the study says schools in Ohio saved $60 million on their utility bills last year thanks to shale, and Pennsylvania schools saved $45.5 million on utility bills last year thanks to shale…
Read More “OH Schools Save $60M, PA Schools Save $45.5M Last Year from Shale”
Industrywide Issues | Ohio | Statewide OH | Utica Shale | Wastewater

OH Wastewater Disposed Via Injection Wells Jumps 15% in 2013
May 27, 2014May 27, 2014

The volume of wastewater and brine disposed of by pumping it back down an injection well in Ohio jumped 15% from 2012 to 2013. According to new data released by the Ohio Dept. of Natural Resources (ODNR), 16.3 million barrels of wastewater and brine was disposed of during 2013 in Ohio injection wells. But contrary to the hew and cry of anti-drillers–the increase did not come from Pennsylvania drillers. The increase came from Ohio Utica Shale drilling…
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Belmont County | Industrywide Issues | Landfills | Ohio | Statewide OH

ODNR Allows Drill Cuttings to be Used for Construction, Roads
May 23, 2014May 23, 2014

An interesting juxtaposition for MDN. We reported in a story today that PIOGA has put out a plea for drill cutting samples so they can perform a study that will prove to the Dept. of Environmental Protection (DEP) that drill cuttings are not radioactive or laced with chemicals and that it’s safe to recycle them for use in things like fill for construction sites–and even road work. Recycling is good! The juxtaposition is Ohio, where the Ohio Dept. of Natural Resources (ODNR) already allows the use of drill cuttings for such purposes–with a permit of course…
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Industrywide Issues | Ohio | Statewide OH | Taxation | Utica Shale

OH House Passes 2.5% Severance Tax Bill, Where to Now?
May 15, 2014May 15, 2014

As predicted, yesterday afternoon the Ohio House of Representatives passed a bill that will assess a 2.5% severance tax on Utica Shale drilling in the state–raising it from current levels (under 1%). As MDN previously wrote, Ohio’s Republicans caved (see OH Repubs Sell Out on Severance Tax, Kasich Wants Even More!)…
Read More “OH House Passes 2.5% Severance Tax Bill, Where to Now?”