Marcellus Drilling News

Ohio | Statewide OH

Blood and Oil: New “Reality TV” Series about OH Oil Company
June 18, 2013June 18, 2013

You knew it would have to happen sooner or later. Fictionalized television about the oil (and gas) business, like Dallas, has gotten long in the tooth. Enter so-called reality TV. Starting tonight on the Discovery channel, we have the “real life” story of an Ohio family-run oil company, Cutter Oil, and how they face a “life and death” struggle against “big oil” coming in to the state and snatching up all of the Utica Shale leases. At least that’s our interpretation of what this series is about by reading the press release (below).

MDN does not watch live television anymore and hasn’t in years (perhaps explains a lot, right?). We consider most television a wasteland–a vacuum cleaner of the brain. However, we may make an exception for this one. Will you be watching? Starts at 10 pm tonight. Here’s the announcement…
Read More “Blood and Oil: New “Reality TV” Series about OH Oil Company”
Industrywide Issues | Litigation | Ohio | Statewide OH

OH Court: Landowner Can’t Reclaim Rights for ‘Not Enough’ Drilling
June 18, 2013June 18, 2013

In yet another case of “know what’s in your lease,” an Ohio court (Fifth District Court of Appeals) has upheld the rights of a driller to not develop all portions (or layers) of leased acreage. The case is Bilbaran Farm, Inc. v. Bakerwell, Inc. The plaintiffs, Bilbaran Farm, claimed that the 275 acres they own was not “fully developed” because the driller drilled three wells targeting the Clinton sandstone and then stopped. The landowner alleges after a certain period of time the portions not developed (and obviously won’t be developed by the current driller) should revert back to them so they can re-lease with someone else and have it developed, and that by not doing so they are economically harmed.

The judges of the Fifth District did not agree…
Read More “OH Court: Landowner Can’t Reclaim Rights for ‘Not Enough’ Drilling”
Forced Pooling | Industrywide Issues | Ohio | Statewide OH

ODNR Issues Guidelines for Unitization (Forced Pooling) Requests
June 18, 2013June 18, 2013

If you’re a driller in Ohio with leased Utica Shale land, but there’s a holdout or two in some of your leaseholds, you can make an application with the Ohio Dept. of Natural Resources’ (ODNR) Division of Oil & Gas for something called “unitization.” MDN calls it “forced pooling,” a term more commonly used. It means (in Ohio) that if you own leases for 65% of the land in a given unit (typically 640 acres) and want to drill on and under that land, you can file an application to request a unitization hearing. We’ve embedded the guidelines you need to follow in your application below.

But be forewarned: There’s a lot of hoops to jump through. The application you file must be complete, including things like a gamma ray-density log, lots of aerial photographs and maps, complete information on all mineral rights owners, and a check for $10,000. Don’t forget the check. And you’d better be sure your ducks are all in a row, because the check is non-refundable…
Read More “ODNR Issues Guidelines for Unitization (Forced Pooling) Requests”
Industrywide Issues | Ohio | Statewide OH | Taxation

OH Republicans Continue to Oppose Gov. Kasich’s High O&G Tax
June 18, 2013June 18, 2013

MDN owes an apology to Ohio Republicans who have told Gov. John Kasich where he can stick his high severance tax proposal. Last December, we thought OH state Republicans were set to cave on higher severance taxes (see OH Republicans Set to Cave on High Drilling Tax). They have not caved and it now appears there will not be a higher oil and gas severance tax in the budget due to be passed and signed by June 30. Caution: It’s still too early to pop the cork on the champagne bottle, but we have a bottle on ice ready to go.

However, the Republican-controlled legislature’s opposition doesn’t mean Gov. Kasich has given up. He’s now offering ~~a bribe~~ 25% of the increased tax money to the counties where drilling actually happens, meaning the other 75% goes to people who had nothing to do with Ohio’s Utica Shale drilling. (In Pennsylvania, drilling communities get 60% of their version of a severance tax, called an Impact Fee.)
Read More “OH Republicans Continue to Oppose Gov. Kasich’s High O&G Tax”
Industrywide Issues | Ohio | Seismic Testing | Washington County (OH)

Seismic Testing in Marietta, OH Called Off
June 18, 2013June 18, 2013

After much discussion and reconsideration, there will be no seismic testing inside the city limits of Marietta, Ohio, according to city officials. Precision Geophysical was set to test in early July, but that’s now off. However, Geophysical will test around the city in other Washington County locations, and they will set up listening devices in the city to try and capture whatever data they can for lies below the city and just outside of the city.

The details for how and why Marietta testing is now off, and where seismic testing will take place in Washington County in the near future:
Read More “Seismic Testing in Marietta, OH Called Off”
DTE Energy | Enbridge | Energy Services | Industrywide Issues | Ohio | Pipelines | Spectra Energy | Stark County | Statewide OH | Utica Shale

NEXUS Pipeline Route Through Stark County, OH
June 18, 2013June 18, 2013

Last week MDN told you about the proposed Ohio route of the planned NEXUS Gas Transmission natural gas pipeline, a $1.5 billion project that will run from Ohio to Michigan and eventually to Canada–delivering Utica Shale gas to Midwestern markets (see OH Route of Proposed NEXUS Gas Pipeline Revealed). Ever so gradually more pieces of the puzzle are falling into place on where, exactly, the pipeline will run. In a Stark County, OH article, for example, we learn the strategy is to use existing power line rights of way and the new pipeline will likely cross through Washington, Nimishillen, Marlboro and Lake townships in Stark on its way from Kensington–where the new M3 Midstream gas processing plant is almost ready to go online.

Here’s the Stark County piece of the NEXUS pipeline route puzzle:
Read More “NEXUS Pipeline Route Through Stark County, OH”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Research | Statewide PA

New Study: Marcellus Fracked Wells are Good for Environment
June 18, 2013June 18, 2013

A new study conducted on Marcellus Shale wells in Pennsylvania and published in the Journal of Industrial Ecology concludes shale wells’ “energy return on investment” (or EROI)–the total amount of energy it takes to produce the energy that will be delivered to end users–is similar to that of coal. Meaning: it takes about the same amount of effort (i.e. energy) to produce equivalent levels of energy from natural gas and coal, but natural gas burns a lot cleaner, which makes it the preferred source of energy. Further meaning: fracking is good for the environment…
Read More “New Study: Marcellus Fracked Wells are Good for Environment”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Litigation | Ohio | Statewide OH

OH Anti-Drilling Group Sues Muskingum Watershed for Mailing List
June 18, 2013June 18, 2013

An insignificant handful of anti-fossil fuel agitators in Ohio have formed a group called Southeast Ohio Alliance to Save Our Water (SOASOW) and have sued the Muskingum Watershed Conservancy District (MWCD) because the MWCD won’t fork over their mailing list of customers so the SOASOW can send scare-tactic propaganda fliers. Poor babies. So now the SOASOW will tie up the court system with their temper tantrum to try and force MWCD to comply. Shows what people with time on their hands do…
Read More “OH Anti-Drilling Group Sues Muskingum Watershed for Mailing List”
Best of the Rest

Marcellus & Utica Shale Story Links: Tue, Jun 18, 2013
June 18, 2013June 18, 2013

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading:
Read More “Marcellus & Utica Shale Story Links: Tue, Jun 18, 2013”
Belmont County | CONSOL Energy | Energy Companies | Guernsey County | Harrison County | Jefferson County (OH) | Noble County | Ohio | Utica Shale

CONSOL’s View of Best Counties to Drill in Ohio Utica Shale
June 17, 2013June 17, 2013

Last Friday at a Columbiana (OH) Area Chamber of Commerce event, Harry Schurr, general manager of Utica Shale operations for CONSOL Energy, spilled the beans on which Ohio counties he believes will see drilling for oil and gas in the near- and medium-term. He outlines where oil drilling is not going to take off (not enough pressure to pump it out), and where gas drilling will not take off until gas prices go higher. But like the story of Goldilocks, there are a few Ohio counties where the conditions (i.e. large volumes of condensate) are “just right” for drillers…
Read More “CONSOL’s View of Best Counties to Drill in Ohio Utica Shale”
Carroll County | Economic Impact | Education | Housing | Industrialization | Industrywide Issues | Jobs | Ohio | Taxation | Trucking

The Positives, and Negatives, of Shale Gas Drilling
June 17, 2013June 17, 2013

No one pretends there are not negatives when it comes to oil and gas drilling, least of all MDN. There are some drawbacks–but the negatives must be weighed against the positives. Local business and government leaders in Carroll County, OH (the county with the most Utica Shale wells drilled, so far), had a frank discussion of the both the good and the bad in a recent meeting with State Rep. Andy Thompson, R-Marietta.

Highlights of the good and the bad when it comes to shale drilling:
Read More “The Positives, and Negatives, of Shale Gas Drilling”
Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Pipelines | Processing Plants | Shell | Statewide PA | Statewide WV | West Virginia

Do More Wet Gas Pipelines to Gulf Coast = No NE Cracker Plants?
June 17, 2013June 17, 2013

With new wet gas pipelines being built from the Marcellus/Utica to the Gulf Coast, and with new cracker plants being built along the Gulf Coast, will any ethane cracker plants ever get built in the Marcellus/Utica? It’s a serious question that more and more people are asking.

Aside from West Virginia Secretary of Commerce Keith Burdette’s eternal optimism that WV will get a commitment for an ethane cracker plant any day now (see WV “Very Much in the Game” to Get a Cracker Plant), and aside from Pennsylvania Gov. Tom Corbett’s changing timeline on when Shell will make a final final final final final decision on building a cracker in Pennsylvania, MDN made the following observation more than a month ago:
Read More “Do More Wet Gas Pipelines to Gulf Coast = No NE Cracker Plants?”
Coterra Energy (Cabot O&G) | Energy Companies | Energy Services | Industrywide Issues | New York | Pennsylvania | Pipelines | Statewide NY | Statewide PA | Williams

It’s Official: Williams Files Constitution Pipeline App with FERC
June 17, 2013June 17, 2013

It’s official. Since last year we’ve known about and have reported on plans by Williams and Cabot Oil & Gas to build a new Marcellus Shale pipeline from Susquehanna County, PA to Schoharie County, NY–called the Constitution Pipeline (see New Marcellus Constitution Pipeline Announces “Final” Route). On Friday, Williams filed the official application for the new pipeline with the Federal Energy Regulatory Commission. Original plans called for the FERC filing to happen in “spring” of this year, with construction set to begin in April 2014 and the pipeline coming online in March 2015. According to the latest press release, the in-service date is still on track.

In addition to three original investors, the Constitution Pipeline picked up a fourth investor just a few weeks ago (see New Partner Invests in Marcellus Shale Constitution Pipeline). Perhaps that’s why a “spring” filing became an “early summer” filing? The announcement from Williams last Friday:
Read More “It’s Official: Williams Files Constitution Pipeline App with FERC”
CONSOL Energy | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Westmoreland County

Pricetag to Test Water at Reservoir Near CONSOL Drilling Goes Up
June 17, 2013June 17, 2013

CONSOL Energy has a contract and has actively been drilling Marcellus Shale wells (37 so far) near Beaver Run Reservoir in Westmoreland County, PA. The reservoir provides water to some 120,000 customers in the region. Just to keep an eye on things and to be sure none of the drilling has led to contamination of the reservoir’s water, the Municipal Authority of Westmoreland County contracts with Indiana University of Pennsylvania (IUP) to conduct quarterly water tests. Students both collect and analyze the data.

Two years ago the Municipal Authority paid IUP $55,000 for the work. Last year, $75,000. This year? The price is going up to $100,000. Built in to this year’s higher price is a “third party” review of the water quality…
Read More “Pricetag to Test Water at Reservoir Near CONSOL Drilling Goes Up”
Electrical Generation | Industrywide Issues | Pennsylvania | Statewide PA

Marcellus Shale Impacts the Nuclear Power Industry Too
June 17, 2013June 17, 2013

A Limerick update: There once was a man from… er no, that’s not it! This Limerick update is about a pair of nuclear reactors used for generating electricity–in Limerick, PA. Apparently Marcellus Shale gas is so plentiful and cheap, it’s not worth the nuclear plant’s operator, Exelon Nuclear, to ramp up the two reactors to produce more electricity as originally planned. That is, Marcellus Shale gas is not only having an effect on the coal power industry, it’s now affecting the nuclear industry as well…
Read More “Marcellus Shale Impacts the Nuclear Power Industry Too”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Krancer: States Do a Good Job, Feds Should Butt Out on Fracking
June 17, 2013June 17, 2013

Three cheers for former PA Sec. of the Department of Environmental Protection Michael Krancer who, talking on a recent radio program, said the Obama administration’s desire (and plan) to regulate fracking at the federal level is unnecessary and the “feds should back off.” He said the individual states already do a great job and the feds have no business horning in.

We sure do miss having the mince-no-words Krancer as Secretary at the DEP…
Read More “Krancer: States Do a Good Job, Feds Should Butt Out on Fracking”