Washington County (OH)

Energy Services | EnLink Midstream | Guernsey County | Industrywide Issues | Noble County | Ohio | Pipelines | Washington County (OH)

EnLink OH Condensate Pipe in Trouble? Open Season Extended Again
March 2, 2015March 2, 2015

EnLink Midstream is clearly having trouble getting enough business to justify building a new condensate pipeline in Ohio. In August 2014, EnLink announced a new 45-mile condensate pipeline that will stretch across Guernsey, Noble and Washington counties in Ohio (see EnLink Midstream Announces New Condensate Pipeline in ORV). The project, which connects to another EnLink pipeline in Washington County, is called the Ohio River Valley Pipeline, or ORV. In mid-December, EnLink launched a 30-day binding open season for shippers to sign up for capacity on the new pipeline (see EnLink Launches 1 Month Open Season for ORV Condensate Pipeline). An open season is the time when shippers sign on the dotted line and commit to paying for and using the pipeline when it’s built. If EnLink doesn’t get enough customers, they won’t build it. In January EnLink announced there were extending the open season another six weeks (see EnLink Extends Open Season for OH Condensate Pipeline by 6 Weeks). Those six weeks have come and gone, and guess what? EnLink has just announced they’re extending the open season again, another six weeks…
Read More “EnLink OH Condensate Pipe in Trouble? Open Season Extended Again”
Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Lease & Royalty Payments | Ohio | Triad Hunter | Utica Shale | Washington County (OH)

OH Village Gets $307K Signing Bonus, 18.25% Royaly to Lease 72 Acres
January 22, 2015January 22, 2015

Last night, the village of New Matamoras, in Washington County, OH, was handed a check for $307,687.25. The general fund budget for all of 2014 was $121,368! The check came from MNW Energy, which is acting as the land broker for Triad Hunter (a division of Magnum Hunter Resources). The money is the up-front lease signing bonus for 72 acres of village owned-land that Triad plans to drill under. The payment amounts to a signing bonus of $4,275 per acre. When and if Triad drills, the village will get an 18.25% royalty on all gas/liquids produced. The biggest “problem” Matamoras had was how to cash the check! The next “problem” they have is how they’ll spend it. Here’s the low-down…
Read More “OH Village Gets $307K Signing Bonus, 18.25% Royaly to Lease 72 Acres”
Energy Services | EnLink Midstream | Guernsey County | Industrywide Issues | Noble County | Ohio | Pipelines | Washington County (OH)

EnLink Extends Open Season for OH Condensate Pipeline by 6 Weeks
January 15, 2015January 15, 2015

In August 2014, EnLink Midstream announced a new 45-mile condensate pipeline that will stretch across Guernsey, Noble and Washington counties in Ohio (see EnLink Midstream Announces New Condensate Pipeline in ORV). EnLink calls the project, which connects to another EnLink pipeline in Washington County, the Ohio River Valley Pipeline. In mid-December EnLink launched a 30-day binding open season for shippers to sign up for capacity on the new pipeline (see EnLink Launches 1 Month Open Season for ORV Condensate Pipeline). Midstream companies won’t build expensive pipelines (this one will cost $250 million) unless they have 15-20 contracts in place to guarantee they’ll make their money back. Today EnLink announced they’re extending the open season another six weeks–to the end of February. Oh oh, must mean they don’t yet have enough interested customers to build it…
Read More “EnLink Extends Open Season for OH Condensate Pipeline by 6 Weeks”
Economic Impact | Energy Services | Ethane | Housing | Industrialization | Industrywide Issues | Jobs | Odebrecht | Ohio | Processing Plants | Washington County (OH) | West Virginia | Wood County

WV/OH Officials Going on Field Trip to Prepare for Cracker Plant
December 24, 2014December 24, 2014

The Odebrecht ethane cracker plant planned for the Parkersburg, WV area continues to walk/smell/act/behave like it’s the real deal. The latest evidence: Odebrecht has told area officials around Parkersburg, you need to be prepared for when the 100% official announcement comes, cause at that point, things will happen fast. So area officials are boning up now to be prepared for an influx of people and jobs–both a good thing, and a challenge. Area officials from Wood County, WV and neighboring Washington County, OH will head to the bitter-cold north country–Minot, North Dakota–in January (!) to see how that community has dealt with a rapidly expanding population and influx of new jobs due to the Bakken Shale…
Read More “WV/OH Officials Going on Field Trip to Prepare for Cracker Plant”
Lease & Royalty Payments | Ohio | Utica Shale | Washington County (OH)

Marietta’s City-Owned Land for Lease Tied Up (Again) by City Council
October 27, 2014October 27, 2014

For (quite) a while now the city of Marietta, OH has tried to get leases of city-owned property for drilling under (not on) to extract Utica Shale gas. The first time around they tried, they delayed and it cost them (see Delay in Leasing City-Owned Land Costs Marietta, OH Big $). They decided to try again, with five different parcels (see Marietta Tries 2nd Time to Lease City Land for Utica Drilling). MNW Energy, a leasing company for Protege Energy, originally offered to lease Gunlock Park and Goose Run Road (two of the five parcels) for $4,750 per acre signing bonus and 17.5% royalties. Looks like that deal is back on the table and the city is reviewing it–hopefully in a more timely manner this time around. The problem is, it appears city council is once again frittering around…
Read More “Marietta’s City-Owned Land for Lease Tied Up (Again) by City Council”
Belmont County | Energy Services | EnLink Midstream | Guernsey County | Industrywide Issues | Noble County | Ohio | Pipelines | Washington County (OH)

EnLink Midstream Announces New Condensate Pipeline in ORV
August 25, 2014August 25, 2014

Earlier this year, midstream company Crosstex Energy merged with the midstream division of shale driller Devon Energy and gave birth to a new company–EnLink Midstream (see Time to Congratulate Devon & Crosstex on the Birth of EnLink). EnLink has a small but growing presence in the northeast, including the Utica Shale. EnLink’s commitment to the Ohio River Valley (Utica Shale) has just doubled by adding another $250 million committed to a project that will build a new 45-mile condensate pipeline and add compressor stations in Noble, Belmont, and Guernsey counties…
Read More “EnLink Midstream Announces New Condensate Pipeline in ORV”
Energy Companies | Lease & Royalty Payments | Ohio | Protege Energy | Utica Shale | Washington County (OH)

Marietta Tries 2nd Time to Lease City Land for Utica Drilling
August 13, 2014August 13, 2014

The City of Marietta, OH has several parcels of land they’re interested in leasing for Utica gas drilling: (1) Gunlock Park, behind the Walmart complex off Pike Streeet, (2) city-owned land along Goose Run Road in Marietta Township, (3) city garage property off Alderman Street, and (4) Buckeye Park off Acme and Greene Streets, and (5) the Kroger swap (i.e. “wetlands”) off Acme Street. All five locations total 95 acres. MDN reported that because city council snoozed, they lost out on an earlier opportunity to lease the Gunlock Park and Goose Run properties (35 acres) back in May (see Delay in Leasing City-Owned Land Costs Marietta, OH Big $). The city will run a second advertisement (legal requirement) to lease all parcels, and once again, they may have some interest. If they don’t botch it this time…
Read More “Marietta Tries 2nd Time to Lease City Land for Utica Drilling”
Energy Services | Ergon | Hancock County | Industrywide Issues | Ohio | Processing Plants | Washington County (OH) | West Virginia

New Condensate Processing Coming to Utica/Marcellus from Ergon
July 2, 2014July 2, 2014

New condensate processing is on the way later this year from Ergon, Inc.–a company headquartered in Mississippi but with refineries and processing facilities in Ohio and West Virginia (and operations that include western Pennsylvania, Kentucky and New York). Ergon announced yesterday the company has spent over $75 million in the past two years to upgrade facilities, and continues to spend. Coming later this year is a 10,000 barrel per day condensate stabilization facility in Marietta, OH. Coming next year, the same kind of facility (also 10,000 bbl/d) in Newell, WV…
Read More “New Condensate Processing Coming to Utica/Marcellus from Ergon”
Energy Companies | Industrywide Issues | Ohio | Protege Energy | Seismic Testing | Washington County (OH)

Seismic Testing Coming in July to Washington County, OH Town
June 25, 2014June 25, 2014

Seismic testing is coming to Fearing Township (Washington County), OH starting in July. Seismic testing usually precedes drilling–so that means drilling is most likely on the way. The testing will allow drillers to “see” the best locations to place wells. So how will Protege Energy III, the company that’s hiring the testing done, go about doing the testing? No big thumper trucks along roadways for Protege. Instead, they favor drilling small holes and putting small explosive charges in the holes and recording the sound waves that bounce from the explosive charges. Protege held a community meeting earlier this month in Fearing to discuss the process and answer questions…
Read More “Seismic Testing Coming in July to Washington County, OH Town”
Blue Ridge Mtn Res/Magnum Hunter | EdgeMarc Energy | Energy Companies | Ohio | Utica Shale | Washington County (OH)

Magnum Hunter JV Deal with EdgeMarc to Drill 1,080 Acres in OH
June 23, 2014June 23, 2014

This morning Magnum Hunter Resources announced a new, small joint venture with EdgeMarc (EM Energy Ohio) to drill on and under 1,080 acres of Marcellus/Utica property in Washington County, OH. This is the third such smallish jv between Magnum Hunter and other companies to drill in either the Marcellus or Utica Shale…
Read More “Magnum Hunter JV Deal with EdgeMarc to Drill 1,080 Acres in OH”
Crime | Housing | Industrialization | Industrywide Issues | Noble County | Ohio | Washington County (OH)

OH Newspaper’s Sloppy Reporting on Drilling Workers/Problems
June 23, 2014June 23, 2014

Local newspapers in drilling towns should know better, but sometimes reporters are either snookered, or they have an anti-drilling bent. We’re not sure which it is for The Marietta Times (Washington County, OH), but a recent article uses a so-called research report from the anti-drilling FracTracker that says when drilling comes to town so too does an increase in crime. And on that particular false premise the reporter hangs an entire article full of anecdotes and innuendo. Shame on The Marietta Times…
Read More “OH Newspaper’s Sloppy Reporting on Drilling Workers/Problems”
Energy Companies | Lease & Royalty Payments | Ohio | Protege Energy | Utica Shale | Washington County (OH)

Delay in Leasing City-Owned Land Costs Marietta, OH Big $
May 22, 2014May 22, 2014

The mayor of Marietta, OH says the city probably missed the boat to lease 95 acres of city-owned land for Utica Shale drilling–and he blames city council for dithering about getting an ad placed to announce the land is available (death by committee). But perhaps all is not lost…
Read More “Delay in Leasing City-Owned Land Costs Marietta, OH Big $”
Economic Impact | Industrywide Issues | Jobs | Meetings | Ohio | Utica Shale | Washington County (OH)

Marietta Meeting Highlights Big Economic Impacts from Drilling
April 29, 2014April 29, 2014

Marietta (Washington County), OH residents and business owners had a chance last Friday to hear how the northeast shale boom has already benefited that area, and how the area will benefit in the future. The changes statewide are dramatic. The changes locally are starting to be felt too–and more changes are on the way. Exciting changes…
Read More “Marietta Meeting Highlights Big Economic Impacts from Drilling”
Industrywide Issues | Ohio | Statewide OH | Taxation | Utica Shale | Washington County (OH)

OH County Commissioner Says ‘No Thanks’ to Severance Tax Increase
April 22, 2014April 22, 2014

A lone voice crying in the wilderness! Amid all of the calls for more socialism–redistributing the hard-earned money from landowners and drilling companies to people who didn’t earn it via a higher severance tax–a Washington County, OH commissioner says “No!” He says raising the severance tax is a fundamentally bad idea and he does not endorse the Republicans’ dalliance with the idea.

And so we bring you a letter to the editor reprinted in the Parkersburg (WV) News and Sentinel from Washington County, OH commissioner Ron Feathers, a man we salute!…
Read More “OH County Commissioner Says ‘No Thanks’ to Severance Tax Increase”
Industrywide Issues | Ohio | Pipelines | Regulation | Washington County (OH)

Lawyers Give Heads-up on Cobra Pipeline in Warren, OH
April 21, 2014April 21, 2014

MDN makes no claims to omniscience when it comes to Marcellus and Utica drillers and pipeline operators–but it’s not often a completely new name pops up to surprise us–something we had not heard of before. Such is the case with Cobra Pipeline. According to the Cobra Pipeline website: “Cobra Pipeline Co., LTD is an Ohio based intrastate natural gas pipeline company headquartered in Willoughby, Ohio. Cobra Pipeline Co, LTD owns approximately 300 miles of intrastate gas pipeline and compression within the State of Ohio. Our system connects natural gas suppliers with major interstate transmission pipeline systems. Cobra Pipeline provides competitively priced gas transportation service as well as operating a safe and efficient gas pipeline system.”

So it appears Cobra is a local gathering system that perhaps at one point connected conventional (vertical only) wells, but increasingly now connects unconventional (shale) wells to larger pipeline systems. The reason it popped up on the radar is because a couple of lawyers recently spoke to a small group of landowners in Marietta (Washington County), OH about Cobra’s plans to come through that area–mostly along an existing route used by Columbia Pipeline. The lawyers were there to give landowners a heads-up and tips for how to negotiate the best deal for a pipeline easement, and what to do if eminent domain rears its ugly head…
Read More “Lawyers Give Heads-up on Cobra Pipeline in Warren, OH”
Belmont County | Carroll County | Columbiana County | Guernsey County | Harrison County | Lease & Royalty Payments | Monroe County | Noble County | Ohio | Utica Shale | Washington County (OH)

Company Targets OH Landowners – Buy Future Royalties for Cash Now
March 26, 2014March 26, 2014

Gateway Royalty is back and has $58.5 million on the bank they can’t wait to give landowners in the Ohio Utica Shale in return for future royalty payments. MDN told you about Gateway last summer. They were the company that the town of Carrollton, OH sold 1/4 of their royalty rights to (see OH Town Votes to Give Up 1/4 Royalties for Cash Payment Now). The way it works, in brief: Gateway pays landowners a lump sum now in return for the right to receive that landowner’s future royalty payments for years to come. You (the landowner) get your money now, they (Gateway) get the money you would have gotten dribbled out over time. Of course the money you receive now is discounted and in all likelihood far less than you would have gotten if you had waited just a few years (the bulk of royalty payments come in the first four years). It’s a bit of a gamble by both parties because no one really knows how much a well will produce.

Still, there are reasons why someone may want to get cash up front–pay off debt, ill health, etc. So in that vein, we bring you the latest press release from Gateway announcing they are ready, willing and waiting to give Ohio Utica Shale landowners money now. Specifically they are targeting landowners in Washington, Noble, Guernsey, Monroe, Belmont, Harrison, Carroll and Columbiana counties…
Read More “Company Targets OH Landowners – Buy Future Royalties for Cash Now”