Statewide OH

Energy Companies | Energy Services | Gulfport Energy | Industrywide Issues | M&A | MarkWest Energy | Ohio | Ohio Gathering | Pipelines | Processing Plants | Statewide OH | Summit Midstream

Summit Midstream Closes Deal to Buy 40% Stake in Ohio Gathering
January 29, 2014January 29, 2014

Last December MDN told you that Summit Midstream was buying out Gulfport Energy’s share of the Ohio Gathering pipeline and processing system (see Summit Midstream Buys Gulfport’s Interest in Ohio Gathering). As we said at the time, the deal appears complicated on paper with multiple names (like Blackhawk Midstream), but the bottom line was/is that Summit will be the 40% owner and MarkWest Energy will remain the 60% owner of the Ohio Gathering system.

Yesterday, in an announcement by Summit that’s equally dense with details (likely written by lawyers), Summit announced they’ve closed the Ohio Gathering deal. That’s the sum total of this announcement–that the deal is now done:
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Hydraulic Fracturing | Industrywide Issues | Landfills | Ohio | Statewide OH | Wastewater

Glow in the Dark: Are We Being Irradiated by Frack Waste?
January 27, 2014January 27, 2014

The fear-mongering continues by those who oppose shale drilling. One of the scare tactics used by anti-drillers is to say that frack wastewater and drill cuttings (leftover rock and dirt) are loaded with radiation and by disposing of it in landfills and via wastewater recycling facilities we’ll all end up irradiated, dying long slow deaths from cancer. Or worse yet, we’ll all become radioactive zombies. Hey, maybe someone could make a movie about that! (Unbelievably, they already have: see Friday Foibles: The Scientific Link Between Fracking and Zombies.)

The Ohio EPA and Dept. of Natural Resources (ODNR) is not much impressed by all these radioactivity claims. Neither are we. One of the favorite drive-by media claims is that drill cuttings are setting off radiation alarms at landfills in record numbers (“hundreds” of times a year). Thing is, those same alarms go off when medical waste is hauled in too–they’re that sensitive that even radioactive dyes are picked up by them. It proves NOTHING. Yet you see that argument often used–fracking dirt contains radition! Whatever. Here’s the latest drive-by attempt to scare people with radioactive waste concerns, this one emitted by the Columbus Dispatch…

Read More “Glow in the Dark: Are We Being Irradiated by Frack Waste?”
Energy Companies | Hess | Ohio | Statewide OH | Utica Shale

Hess Goes All in for Shale Drilling in 2014, $550M on Utica Shale
January 24, 2014January 24, 2014

Over the past couple of years, Hess Corporation–the company whose name you recognize because you probably have filled up your car at one of their gas stations–has been transforming itself from petroleum products marketer (like retail gas stations) to oil and gas driller. Hess still owns some of those gas stations–but not for long. They’re in the process of spinning off retail gas stations into their own company so they can sell it (see Hess Continues Transformation With Plans for Retail Spinoff). Early last year Hess’ plans to become an E&P company was challenged by one of their stockholders (see Corporate Raider Paul Singer Tries to Force Hess Out of Shale). He was obviously unsuccessful in trying to bully Hess into doing his bidding. (Note to Chesapeake: you should have followed Hess’ example.)

Yesterday Hess released their 2014 capital and exploration budget, and it shows Hess has gone “all in” for shale drilling. The Hess capex budget calls for a whopping $5.8 billion in spending–of that $2.85 billion (49%) will be spent on shale drilling. The lion’s share of Hess’ shale budget will go to drilling for oil in North Dakota’s Bakken Shale. However, they have allocated $550 million for drilling in the Utica Shale this year, with plans to sink 35 new Utica wells. Here’s the full Hess budget released yesterday…
Read More “Hess Goes All in for Shale Drilling in 2014, $550M on Utica Shale”
Lease & Royalty Payments | Ohio | Statewide OH

Lease Signing 101 for Landowners – A Short Q&A with OH Attorney
January 23, 2014January 23, 2014

What should landowners know–what questions should they have answers for–before they sign an oil and gas lease? Attorney Dan Gerken from Ohio law firm Bricker & Eckler tackles the important questions landowners should know the answers to in an online post that we think of as “lease signing 101.” It doesn’t hurt to cover the basics from time to time as new landowners are approached and begin the process of trying to figure out what they should do.

Here’s Dan’s good all-around “basics” Q&A advice:
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Industrywide Issues | Ohio | Statewide OH | Taxation | Utica Shale

OH House Dem Makes Another Run at Nosebleed 7.5% Severance Tax
January 22, 2014January 22, 2014

The reliably anti-drilling Ohio State Representative from Youngstown, Robert F. Hagan, would prefer to ban shale drilling outright. Since that’s not going to happen in OH (at least not any time soon), he wants to kill it another way. Last June Hagan introduced a bill in the OH House that would enact a 7.5% drilling tax on Utica Shale drilling, which would of course effectively kill all Utica drilling henceforth (see Youngstown Democrat State Rep Wants to Hike Severance Tax to 7.5%). You have to hand it to those OH Dems–they’re real johnny one-notes: tax more, spend more.

Hagan is trotting out his obscenely high tax bill once again, trying to whip up support. Good luck with that one Bobby…
Read More “OH House Dem Makes Another Run at Nosebleed 7.5% Severance Tax”
Economic Impact | Hydraulic Fracturing | Industrywide Issues | Ohio | Research | Statewide OH | Utica Shale

Quarterly OH Utica Shale Report from CSU: Huge Economic Impact
January 16, 2014January 16, 2014

Each quarter, researchers at Cleveland State University publish the Ohio Utica Shale Gas Monitor, a report that looks at the economic impacts of Utica and Marcellus Shale drilling in Ohio. The latest report was issued a few weeks ago and MDN has just now been able to locate a copy to share with you (full copy of the 39-page report embedded below). What does the report tell us? The number of counties with “strong” shale activity has gone to eight from 15, and the number of counties with “moderate” shale drilling activity has gone to five from 30. That’s a head-turner! The “strong” counties, in addition to producing methane (or dry gas), are also producing “commercial amounts” of natural gas liquids (wet gas).

Here’s a good overview of the report as provided by NortheastPA.com:
Read More “Quarterly OH Utica Shale Report from CSU: Huge Economic Impact”
Anti-Drilling/Fossil Fuel | Education | Hydraulic Fracturing | Industrywide Issues | Ohio | Statewide OH

Radio Disney Pressured, Pulls Out of OH O&G Education Program
January 13, 2014January 13, 2014

Radio Disney had been participating in a tour of elementary schools in Ohio as part of an education project that, among other things, educates kids on how oil and gas drilling and pipelines work. Called “Rocking in Ohio” the program’s intent is to foster interest in science and technology. Because the tour is sponsored by the Ohio and Gas Energy Education Program and partially funded by the drilling industry, the anti-drilling brigade came out in force and has now pressured Disney into withdrawing from the program. We can’t have the truth getting out there in song and dance, ya know!

Few American-based media outlets are covering the story, so we have to get the Disney story from the pro-terrorist Al Jazeera America network. You know, the network that paid Al Gore a gazillion dollars for his dying Current TV network, finally making Al a rich man and giving Al Jazeera access to American airways to spread their garbage. The network that hires CNN has-beens like Soledad O’Brien to put a pretty face on an ugly network. The network that loves to air terrorists beheading people? Yeah, that network–the network owned by Middle Eastern oil sheiks who fear fracking will end their massive wealth gives us the Disney pulling out in Ohio story…
Read More “Radio Disney Pressured, Pulls Out of OH O&G Education Program”
Forced Pooling | Industrywide Issues | Litigation | Ohio | Statewide OH | Utica Shale

Forced Pooling in Ohio Utica Shale on the Rise, Sadly
January 13, 2014January 13, 2014

Drillers in Ohio’s Utica Shale are increasingly using the state’s “unitization” or forced pooling laws to force landowners who don’t want drilling to be included in drilling units where a majority of the neighboring land is leased. According to an article in the Akron Beacon Journal, 22 such requests have been filed in Ohio to date. Of those 22 filed, 6 were approved, 6 were resolved or dropped, and 10 are pending.

We know the arguments for and against forced pooling, and you know where we stand on the issue (we take a dim view of it), so we won’t belabor the point. Here’s the Beacon Journal’s update on some of the forced pooling cases in eastern Ohio, including which drillers are doing the forcing, and the results…
Read More “Forced Pooling in Ohio Utica Shale on the Rise, Sadly”
Hydraulic Fracturing | Industrywide Issues | Ohio | Regulation | Statewide OH | Utica Shale

OH Gov. Kasich Goes After Out-of-State Engineers/Surveyors
January 10, 2014January 10, 2014

Ohio Gov. John “Foreigner Hunter” Kasich is on the prowl again–seeking to block “foreigners” (from exotic places like Texas and Oklahoma and Louisiana) from working in Ohio. It’s been more than a year since Kasich made it one of his missions as governor to block “foreigners” from working in Ohio’s flourishing Utica Shale industry (see OH Gov. Kasich Continues Trash Talk Out-of-State Workers).

The latest action taken by the Kasich administration, via the Ohio State Board of Registration for Professional Engineers and Surveyors, is to let professional engineers and surveyors know that if they come to Ohio to work for the Utica Shale industry, they will need to be registered, forms filled out in triplicate, and (steep) dues paid–or they’ll be bounced out of the state on their collective ear…
Read More “OH Gov. Kasich Goes After Out-of-State Engineers/Surveyors”
Industrywide Issues | Ohio | Statewide OH | Taxation | Utica Shale

Hearings Underway on OH Plan to Bribe Voters with Utica Shale Tax
January 9, 2014January 9, 2014

Some RINO elected Republicans in Ohio and some oil and gas industry folks have combined forces to endorse a horrible idea: raising the drilling tax on Utica Shale drilling. MDN previously outlined our objections to the plan (see Taking a Closer Look at Ohio’s “Piddly” Utica Shale Tax Increase). The Ohio House is now holding hearings on the plan–listening to testimony both for and (presumably) against.

Here’s the latest on the Ohio hearings to retard the growth of the Utica Shale by increasing taxes on it to bribe redistribute some of the money to people who don’t have a thing to do with producing it:
Read More “Hearings Underway on OH Plan to Bribe Voters with Utica Shale Tax”
Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | Eureka Midstream | Industrywide Issues | Ohio | Pipelines | Statewide OH | Statewide WV | West Virginia

Eureka Hunter Boasts 360% Yearly Increase in Marcellus/Utica Flow
January 8, 2014January 8, 2014

Eureka Hunter, the wholly-owned midstream (pipeline) subsidiary of driller Magnum Hunter, published their month by month flow numbers yesterday for how much gas they pumped through their pipelines in West Virginia and Ohio during 2013. It was an impressive year for Eureka Hunter. The average daily flow or “throughput” in 2012 was 23,291 million Btus (or MMBtus), which equates to 23.3 million cubic feet per day (or MMcf/d). If the “average” well is producing, say, 3 MMcf/d, that’s the equivalent of having 8 wells connected to the pipeline. The average daily flow in 2013 was 83,828 MMBtus, or 83.4 MMcf/d, or 28 wells hooked up and flowing. That’s a 360% year over year increase–nearly quadruple the volume!

What the average doesn’t tell you, however, is that by the end of the year, Eureka Hunter’s pipeline flowed nearly 160,000 MMBtus, or 160 MMcf/d, which is production from an average 53 wells. They predict in 2014 the daily flow rate will hit 206,500 MMBtus. Somewhere between 40-50% of the gas they flow is from Triad Hunter, another Magnum Hunter subsidiary (sister company to Eureka Hunter). Below is the press release with Eureka Hunter’s monthly flow numbers. With our explanation above, you now know how to view it!…
Read More “Eureka Hunter Boasts 360% Yearly Increase in Marcellus/Utica Flow”
Energy Companies | Gulfport Energy | Ohio | Statewide OH | Utica Shale

Gulfport Energy Issues Utica Production Guidance for 2013, 1Q14
January 7, 2014January 7, 2014

Gulfport Energy, one of the most important (and increasingly prolific) drillers in the Utica Shale released a short update yesterday to crow about their production numbers for 2013, set production expectations for the first quarter of 2014, and to remind investors to invest early and invest often.

Here’s yesterday’s Gulfport update…
Read More “Gulfport Energy Issues Utica Production Guidance for 2013, 1Q14”
Hydraulic Fracturing | Industrywide Issues | Ohio | Regulation | Statewide OH | Utica Shale

ODNR’s Proposed New Water Handling Rules for 2014
January 7, 2014January 7, 2014

Here’s a look at proposed new rules and regulations coming to drillers in Ohio’s Utica Shale–this year:
Read More “ODNR’s Proposed New Water Handling Rules for 2014”
Antero Resources | Chesapeake Energy | Energy Companies | Gulfport Energy | Industrywide Issues | Ohio | Regulation | Statewide OH | Utica Shale

Surprise Move: ODNR Releases 3Q13 Utica Shale Production Report
January 6, 2014January 6, 2014

Just as MDN went into hiatus for a few days for the holidays, on New Year’s Eve the Ohio Dept. of Natural Resources (ODNR) issued a major announcement: they published their first-ever quarterly production report for the Utica Shale. As MDN previously reported, the Ohio legislature passed a law that requires quarterly reporting (see Ohio Moves One Step Closer to Quarterly O&G Production Reports). However, last word we had was that the reporting would not be required by drillers until “starting” January 2014 (see Ohio Moves to Quarterly Production Reports Starting Jan 2014). Obviously our (and everyone else’s) understanding was wrong. The ODNR has been quietly requiring drillers to start reporting quarterly in 2013, not 2014, and the first such report–for the third quarter of 2013–was released on New Year’s Eve.

We’re certainly not complaining! Just surprised. What does the report show? It shows that the OH Utica produced 33.6 billion cubic feet (Bcf) of natural gas in just 3Q13. For context, the OH Utica produced just 12.8 Bcf of natural gas for all of 2012. It means that 2013 will shape up to be an extraordinary production year in the Utica Shale, proving the naysayers wrong and validating the Utica Shale as one of the most important shale plays in the country. We provide the ODNR announcement below, which crowns two Gulfport wells as most productive (one for oil and one for gas) for 3Q13. We also include analysis of the numbers by our friends at the Akron Beacon Journal. Finally, below is a full copy of the report, in handy PDF format (7 pages long) for you to download or print for your own use.
Read More “Surprise Move: ODNR Releases 3Q13 Utica Shale Production Report”
Hydraulic Fracturing | Industrywide Issues | Ohio | Regulation | Statewide OH | Utica Shale

ODNR Chief Says Utica Shale is “Real Deal” & Feds Should Stay Out
January 6, 2014

James Zehringer, director of the Ohio Department of Natural Resources (ODNR) recently said that the Utica Shale “is the real deal.” By which he meant the Utica is here to stay and a serious shale play, getting a lot of attention (and development). It was only 15 months ago that there was plenty of angst about the Utica because it wasn’t as “oily” as some had hoped. In fact, at the time, Reuters pronounced the Utica a bust (see Reuters Says Utica Shale Boom is Really a Secret Bust). My oh my how wrong they were!

Just in case there’s any lingering doubt (for people like Reuters reporters), Zehringer set out to dispel the naysayers. In his recent remarks, Zehringer also said the feds should mind their own business and leave oil and gas regulation to the states, where it belongs…
Read More “ODNR Chief Says Utica Shale is “Real Deal” & Feds Should Stay Out”
Columbiana County | Industrywide Issues | Ohio | Statewide OH | Taxation | Utica Shale

OH County Engineer Speaks Truth to (Utica Taxation) Power
January 6, 2014January 6, 2014

It takes a “lowly” county engineer in an Ohio Utica Shale county–Columbiana–to have the guts to stand up and say if Republican politicians are going to cave and raise taxes on Utica Shale drilling, they ought to at least allocate some of the new-found money to the places that are actually impacted by drilling, instead of giving all the money away to people who had nothing to do with it! So we pin a medal on Columbiana County Engineer Bert Dawson for having the guts to stand up and say (in essence) “the Kasich emperor has no clothes” when it comes to this insane tax increase he keeps pushing…
Read More “OH County Engineer Speaks Truth to (Utica Taxation) Power”