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May 23, 2013

Chesapeake Energy picks Anadarko Petroleum chief executive as new CEO
 

Chesapeake Energy announced this week that Robert Douglas Lawler, senior vice president for international and deepwater operations at Texas-based Anadarko Petroleum Corp., will become its chief executive in June, replacing the company's co-founder, Aubrey McClendon, who stepped down as chairman in May 2012 and as chief executive in January 2013, The New York Times reports (See our May 01, 2012, blog – "Aubrey McClendon to step down as chairman of Chesapeake Energy"). Lawler is expected to continue Chesapeake's recent path toward focusing on oil instead of gas drilling, and pursuing joint ventures with large foreign oil companies. Analysts also anticipate that he will "tighten controls on spending" due to his predecessor's forced departure after revelation of his participation in "an unusual compensation plan" led to a shareholder uprising, the article said. For more, read the full story and this full Chesapeake press release.
 
Posted by M. Warnock in  United States   |  Permalink

 

May 23, 2013

New wastewater study recommends increased data monitoring to prevent groundwater issues
 

A review of the scientific literature on hydraulic fracturing wastewater was published in the latest issue of the journal Science suggesting that while "to date the scientific literature provides 'no evidence of severe environmental pollution,'" a dearth of data about the composition of wastewater itself and how it is being treated and disposed of leaves room for environmental concerns, NBC News reports. Researchers for the study concluded that "improved understanding of the fate and transport of contaminants of concern and increased long-term monitoring and data dissemination will help manage these water-quality risks today and in the future." For more, read the full story or purchase the article here.
 
Posted by M. Warnock in  United States   |  Permalink

 

May 23, 2013

ODNR's 2012 Utica production figures fail to take into account midstream constrictions and NGLs
 

Dr. Robert W. Chase, professor at and chair of the Marietta College Department of Engineering, wrote an article for Energy in Depth: The Ohio Project disputing Reuters' claims that the 2012 Utica production numbers released last week by the Ohio Department of Natural Resources proved Ohio's shale boom is a bust (See our May 16, 2013, blog – "ODNR releases 2012 Utica shale production figures"). According to Dr. Chase, not only did the Reuters article compare the relatively newly explored Utica shale play to the more mature Eagle Ford and Bakken plays, but it also failed to take into account – as do the ODNR figures – the amount of natural gas liquids (NGLs) that are being recovered. Dr. Chase said that the main measure should be whether it is profitable for a company to invest $5-9 million to drill and complete a Utica shale well, and also noted that some wells are being "choked back" until pipelines and other midstream infrastructure are capable of transporting product. For more, read the full story.
 
Posted by M. Warnock in  Ohio   |  Permalink

 

May 23, 2013

Proposed wastewater processing facility in Wheeling, WV, would encourage re-use
 

Texas-based GreenHunter Water is proposing to build a brine processing facility in Wheeling, West Virginia, that would utilize a pricing structure that encourages wastewater re-use, The State Journal reports. The company, which hauls fluids for the gas industry and operates several underground injection wells in Ohio, West Virginia and Kentucky, will offer cheaper rates to treat wastewater and dispose of the suspended solids that are pulled from the fluid if the drilling company customer is willing to take the clean product with them when they leave. For more, read the full story.
 
Posted by M. Warnock in  West Virginia   |  Permalink

 

May 22, 2013

Zanesville-Muskingum County Port Authority votes to participate in federal foreign investment program
 

Last week, the Zanesville-Muskingum County Port Authority unanimously agreed to support Columbus-based business consulting firm Hicks Partners' group, Mid American Global (MAG) Ventures, with its application to create a regional center through the EB5 program, Zanesville Times Recorder reports. A U.S. Customs and Immigration Service national program, EB5 "encourages foreign investment in domestic projects" by making 10,000 permanent green cards available to foreign investors who either provide $500,000 investments in local companies or projects and create "10 jobs within two years in a rural area or area of high unemployment" or who invest $1 million in a metropolitan area. Because of their "proximity to Utica shale development," Coshocton, Muskingum, Perry and Morgan counties were selected to be the anchors of the strategic marketing group, which is composed of 20 counties total, the article said. If approved, MAG Ventures will "market job creating projects" available in the region to foreign investors. For more, read the full story.
 
Posted by M. Warnock in  Ohio   |  Permalink

 

May 20, 2013

Feds issue new chemical disclosure rule for drilling on federal lands
 

The U.S. Department of the Interior issued a new draft rule for drilling on federal lands last week that requires oil and gas drillers to publicly disclose chemicals used in the hydraulic fracturing process on the database FracFocus.org, The Associated Press reports. The rule was panned by environmentalists who claim it was weakened by the influence of the oil and gas industry, which itself still maintains that federal regulation of any sort is unnecessary when state rules are in place for drilling. There is a 30-day comment period on the proposed rule before being made final this summer, the article said. For more, read the full story.
 
Posted by M. Warnock in  United States   |  Permalink

 

May 20, 2013

Utica development credited for expanding business opportunities in Trumbull County
 

In a recent Business Journal article announcing that a new 85-room, $11 million Comfort Suites Hotel and separate banquet center will be constructed in Liberty Township, Trumbull County Commissioner Paul Heltzel credited the area's oil and gas boom with bringing "positive attention" to and helping "expand opportunities for business" in the Mahoning Valley. For more, read the full story.
 
Posted by M. Warnock in  Ohio   |  Permalink

 

May 19, 2013

Academic article provides a high-level summary of shale litigation matters throughout Ohio
 

An article featured in the latest issue of the online publication Ohio State Law Journal Furthermore provides a high-level summary of various oil and gas litigation matters in Ohio, including decisions concerning state regulation of drilling and production; tort issues such as trespass, negligence, nuisance and strict liability; and actions seeking to invalidate, terminate and interpret leases. The article, "Ohio Oil and Gas Litigation in the New Fracking Era," was written by Blake A. Watson, professor of law at the University of Dayton School of Law. Read the full article here.
 
Posted by M. Warnock in  Ohio   |  Permalink

 

May 18, 2013

Marietta bank opens new department dedicated to energy companies
 

In another example of the far-reaching impact of the shale boom, Marietta-based Peoples Bank is establishing a new department that will be "focused exclusively on providing financial services to upstream (exploration/production) and midstream (transportation/storage/marketing) energy companies," The Marietta Times reports. The bank – which was started in 1902 by a group of oilmen who needed loans for expansion but were unable to get capital with established banks – chose Milton Haynes, its vice president of energy, to lead the new department. For more, read the full story.
 
Posted by M. Warnock in  Ohio   |  Permalink

 

May 17, 2013

Landowners in northwest Ohio may work together to manage issues regarding proposed Sunoco pipeline
 

Although some landowners have already signed right-of-way agreements for a proposed Sunoco Logistics pipeline that will affect 160 miles through Huron, Richland, Ashland, Wayne and Seneca counties, approximately two-thirds of landowners in the Seneca County portion have "shown interest in forming a group to negotiate with the company," The Advertiser-Tribune reports. These individuals are currently gathering to discuss how to negotiate, which at the centerpiece involves replacing their half-century-old agreements with new ones. They are also discussing bringing in the other four counties and having their collective interests represented by a single attorney, the article said. For more, read the full story.
 
Posted by M. Warnock in  Ohio   |  Permalink

 

May 17, 2013

Minority businesses explore opportunities within the area's thriving oil and gas industry
 

The Stark County Minority Business Association is partnering with the Stark County Oil and Gas Partnership and other industry groups to host the Ohio Shale Minority Business Forum on June 6 from 1:30 to 6 p.m.
at the Metropolitan Centre in Canton to "discuss opportunities available for minority businesses" as a result of the area’s oil and gas boom, according to The Times-Reporter. An American Petroleum Institute report by the global research firm IHS found that African Americans and Hispanic Americans are expected to hold 32 percent of the 500,000 jobs that the oil and natural gas industry is projected to create by 2020, the article said. For more, read the full story and a summary of the report.
 
Posted by M. Warnock in  Ohio   |  Permalink

 

May 16, 2013

Amendment to ban hydraulic fracturing in Youngstown fails to pass
 

Last week, Youngstown voters rejected a citizen-organized charter amendment that would have outlawed hydraulic fracturing within the city limits, The Vindicator reports. (We originally reported the proposed amendment in our Apr 09, 2013, blog – "Charter amendment would ban hydraulic fracturing in Youngstown"). The amendment, which was rejected 57 percent to 43 percent, would have outlawed not only hydraulic fracturing, but also the transport and storage of wastewater or brine fluids. Opponents said the measure could not be enforced because it contradicts state law; the Ohio Department of Natural Resources has had complete oversight over oil and gas drilling since the Legislature voted to strip local governments of that control nine years ago. For more, read the full Vindicator story and this full Tribune Chronicle story, as well as the full text of the amendment.
 
Posted by D. Gerken in  Ohio   |  Permalink

 

May 16, 2013

ODNR releases 2012 Utica shale production figures
 

Today, the Ohio Department of Natural Resources (ODNR) released the 2012 production figures for all horizontal wells drilled, completed and in production in the Utica/Point Pleasant shale formation. Saying he believed Ohio was at a "historic era of oil and gas production," ODNR Director Jim Zehringer explained that in 2012, there were 87 horizontal wells in production in the Utica shale that created more than 635,000 barrels of oil – up 93 percent from 2011 – and nearly 13 billion cubic feet of natural gas – up 80 percent from 2011. Although vertical wells continue to play a vital part of energy production in Ohio, horizontal drilling and production from the Utica shale is skyrocketing. Horizontally-drilled Utica shale wells represent only two tenths of one percent of all wells in Ohio, but they produce 12 percent of the oil and 16 percent of the natural gas in the state.

In terms of drilling, ODNR predicted back in December 2011 that between 200-250 new wells would be drilled by the end of 2012, and the estimated number turned out to be 215. ODNR also accurately predicted that 50 wells would be in production by the end of December 2012 – the actual number proved to be 67. The state estimates that there will be "362 Utica wells in production by the end of this year; 662 wells in production by the end of 2014; and a bit more than 1,000 wells in production by the end of 2015," Akron Beacon Journal reports. Director Zehringer then confirmed that the lack of midstream infrastructure is a major reason why only three Utica wells in the state produced for more than 300 days in 2012. Until reliable and affordable means to move gas to market are established, production will be hindered.

Rick Simmers, chief of the Division of Oil and Gas at ODNR, was on hand to provide context and qualifiers  for some of the figures in the report. The staggering production numbers for the 87 horizontal wells in production in 2012 can be found here.

The final speaker was David Mustine, managing director of energy, chemicals and polymers at JobsOhio. Director Mustine said that return expectations are generally strong, noting two Gulfport Energy wells with rates of return in excess of 100 percent and Chesapeake Energy's average rate of return exceeding 40 percent. Mustine also noted that major midstream investments currently total about $4 billion for facilities that will be long-term employers in the area. JobsOhio is also looking at several downstream opportunities, including CNG fleet conversion, chemical processing and boiler conversions.

For more, watch the full ODNR event and the full Akron Beacon Journal story.

 
Posted by M. Warnock in  Ohio   |  Permalink

 

May 16, 2013

ODNR set to announce 2012 oil and gas production results at 2pm today
 

The Ohio Department of Natural Resources (ODNR) announced that it will be holding a press conference and live webcast at 2pm today (May 16th) to discuss the "long-awaited production results from ongoing oil and gas development in eastern Ohio's Utica shale," reports the Youngstown Business Journal.  The webcast can be viewed here and the production results results will be available online here.
 
Posted by M. Warnock in  Ohio   |  Permalink

 

May 16, 2013

Ohio judges discuss new court practices and procedures for shale cases
 

A group of Ohio judges gathered at the request of Guernsey County Common Pleas Court and Judge David Ellwood in Cambridge last week for the Shale Oil and Gas Roundtable, The Daily Jeffersonian reports. Two retired judges and judges from Belmont, Noble, Washington, Tuscarawas, Carroll, Columbiana, as well as one judge from the Ohio Judicial College and one from the Ohio Judicial Conference, met to discuss "what cases they have had relating to shale oil and gas issues" and to talk about "any new court practices or procedures developed for such cases," the article said. For more, read the full story.
 
Posted by D. Gerken in  Ohio   |  Permalink

 

May 15, 2013

Regaining ownership of severed oil and gas mineral rights in Ohio
 

The original 1989 version of the Ohio Dormant Minerals Act constitutes a "use it or lose it" statute with regard to severed oil and gas rights: if oil and gas rights are not "used" during a specific 20-year time period, then title to those rights vests with the surface owner. However, the act underwent substantial revision in 2006 so that now a multi-step process must be specifically followed to verify that the interests have been abandoned. For tips on how to reacquire severed oil and gas mineral rights, read the latest bulletin from Bricker & Eckler's Shale Task Force.

 
Posted by D. Gerken in  Ohio  Oil & Gas Litigation   |  Permalink

 

May 14, 2013

PDC Energy donates $5,000 for new fencing at a Washington County high school baseball field
 

In an introductory gesture of good will, Colorado-based PDC Energy donated $5,000 to the Wolf Creek Local Board of Education last week for upgrades to the Waterford High School's baseball field after reading in the newspaper that the board would not use a "portion of the $375,000 the district earned by leasing its mineral rights to PDC" to construct additional fencing at the field, The Marietta Times reports. The company just moved into the area to drill an exploratory well near Lowell, which it described as "one of the southern-most wells that's been drilled in the state of Ohio," the article said. For more, read the full story.
 
Posted by M. Warnock in  Ohio   |  Permalink

 

May 13, 2013

H.B. 134 would allow municipalities to use funds from water sales to reinstate services
 

Last month, Ohio Rep. Jack Cera (D-Bellaire), introduced H.B. 134 to allow municipalities to transfer funds from water sales to the general fund (See our Apr 18, 2013, blog for more information). Cera said in a press release this week that the legislation is meant to enable municipalities that enter into water supply contracts with oil and gas drillers to "transfer funds received under such contracts to their general fund." Instead of keeping this revenue within the water department to be used for "improvements or maintenance to the water system," the funds can be put into the general revenue fund so that "some of the services that have been cut" can be reinstated, The Herald-Star reports. For more, read the full story and press release.
 
Posted by M. Warnock in  Ohio   |  Permalink

 

May 13, 2013

MarkWest Energy partners to construct office space at the Harrison County Industrial Park
 

This week, the Cadiz Village Council approved MarkWest Energy's request to construct a new office facility on five acres at the Harrison County Industrial Park after the company said it had outgrown its administrative office on Main Street, The Herald-Star reports. For more, read the full story.
 
Posted by M. Warnock in  Ohio   |  Permalink

 

May 10, 2013

Crosstex Energy announces plans to construct its third Utica processing facility
 

Two Dallas-based Crosstex Energy companies, Crosstex Energy Inc. and Crosstex Energy LP, will invest $25 million to build the company's "third natural gas and condensate stabilization facility in the Ohio River Valley," The Business Journal reports. A new company formed in March known as E2 will "build, own, manage and operate" all three facilities, which are located in Noble and Monroe counties in Ohio (See our Mar 11, 2013, blog – "Crosstex Energy companies partner with Enerven Compression Services to form new midstream services company"). Antero Resources is contracted to support the facility, which is expected to have "compression capacity of 100 million cubic feet of gas per day and condensate stabilization capacity of 5,000 barrels per day," the article said. For more, read the full story and the full press release.
 
Posted by M. Warnock in  Ohio   |  Permalink

 

May 09, 2013

Exterran Holdings Inc. opens new oil and gas equipment plant in Youngstown
 

Gov. John Kasich was on hand Tuesday to cut the ribbon for Houston-based Exterran Holdings Inc.'s new Youngstown plant, The Business Journal reports. The $13.2 million plant is expected to employ 120 people and will manufacture "production equipment used to treat and process natural gas and oil." For more, read the full story.
 
Posted by M. Warnock in  Ohio   |  Permalink

 

May 09, 2013

Feds might open Wayne National Forest to coal mining
 

Wayne National Forest, which federal officials cleared for hydraulic fracturing last year and then never received any bids to do it, might soon be opened up to coal mining companies, as well, The Columbus Dispatch reports (See our Aug 30, 2012, blog – "Feds say hydraulic fracturing is allowed in Wayne National Forest"). The federal government "owns about 41 percent of the roughly 240,000 forest acres in southeastern Ohio," and is considering leasing 430 to an unnamed company that wants to do underground coal mining. The public has 30 days to comment on the matter. For more, read the full story.
 
Posted by M. Warnock in  Ohio  United States   |  Permalink

 

May 09, 2013

U.S. Steel announces joint venture with Republic Steel
 

U.S. Steel announced last week that due to "high demand" from a "growing customer base," it is entering into a joint project with Canton-based Republic Steel to produce 6-inch diameter steel casings for natural gas and oil drilling, The Chronicle-Telegram reports. Semi-finished steel leftover from the shuttering of Republic's blast furnace in 2008 will be used to make the casings at Lorain Tubular Operations, which is adjacent to the Republic plant, the article said. For more, read the full story.
 
Posted by M. Warnock in  Ohio  Pennsylvania   |  Permalink

 

May 08, 2013

Chevron's new shale headquarters may be located near Pittsburgh
 

Chevron's Appalachian unit announced last week that it may construct a new regional headquarters on 61 acres of newly purchased land in Moon Township near Pittsburgh, The Republic reports. With holdings in Ohio, Pennsylvania and West Virginia, Chevron is "one of the largest producers of Marcellus shale natural gas," the article said. For more, read the full story.
 
Posted by M. Warnock in  Pennsylvania   |  Permalink

 

May 08, 2013

Meeting scheduled to discuss the progress and possibilities of Marietta's development
 

Marietta's Development Advisory Board is encouraging the public to attend a special public meeting that will provide a status report on a number of initiatives set forth in 2003 as part of the board's main objective – developing and pursuing a document titled, "Pioneering the Future. Marietta's City Comprehensive Plan," The Marietta Times reports. The meeting, which will be held from 6:30 to 8 p.m. on Wednesday, May 15 in the Graham Auditorium at Washington State Community College, will serve to not only update the community on the board's initiatives, but also to solicit recommendations for Marietta's future. For more, read the full story.
 
Posted by M. Warnock in  Ohio   |  Permalink

 

May 08, 2013

Steubenville councilman proposes leasing the city's mineral rights for horizontal drilling
 

During an economic development committee meeting of the Steubenville City Council last week, Sixth Ward Councilman David Lalich encouraged officials to consider allowing the city to lease drilling rights to oil and gas companies in order to generate more revenue for the community, The Herald-Star reports. Lalich said that the city law banning drilling within the city limits could still be honored so long as the drill sites are located outside of the city and use horizontal drilling to access the resources beneath the city, the article said. For more, read the full story.
 
Posted by M. Warnock in  Ohio   |  Permalink

 

May 07, 2013

Antero Resources is planning to go public this year
 

Denver-based Antero Resources is preparing for an initial public offering this year that could value the company "at as much as $10 billion," Reuters reports. Antero is a major shale player in Pennsylvania, West Virginia and Ohio with approximately 311,000 Marcellus acres and 92,000 Utica acres (See our Feb 04, 2013, blog – "Antero Resources to spend $1.65 billion on the Marcellus and Utica shale plays in 2013"). For more, read the full story.

 
Posted by M. Warnock in  United States   |  Permalink

 

May 07, 2013

Ohio EPA: oil spill in Trumbull County may have been vandalism
 

As the Ohio Environmental Protection Agency works to determine how 1,680 gallons of crude oil from a tank at a conventional well in Trumbull County spilled last week, investigators theorize that it was an act of vandalism because the valve on the storage tank, which had been closed and plugged, was open, The Vindicator reports. Although the spill "fouled about 1.5 miles of a nearby tributary of the Grand River," the Ohio Department of Natural Resources was able to recover two-thirds of the oil, which was "contained to the soil around the tank." For more, read the full story.
 
Posted by M. Warnock in  Ohio   |  Permalink

 

May 07, 2013

Report: Ohio lags, but natural gas production is boosting employment
 

A report released last week by the Small Business and Entrepreneurship Council (SBE Council) titled, "The Benefits of Natural Gas Production and Exports for U.S. Small Businesses," indicates that a ramping up of Utica shale drilling efforts will likely bring significant job growth to Ohio in the coming years, Tribune Chronicle reports. While overall employment in the U.S. declined by 3.7 percent from 2005 to 2010, significant growth was experienced within the oil and gas industry. The report found that Ohio's oil and gas industry's growth actually contracted 8.6 percent during this time period, but it predicted the state would experience growth similar to that seen in 10 others where natural gas development is a few years ahead. For more, read the full story, press release and report.
 
Posted by M. Warnock in  Ohio  United States   |  Permalink

 

May 06, 2013

GreenHunter Water sells first new water tank design system to Utica drill site in Ohio
 

GreenHunter Water, LLC, a wholly-owned subsidiary of Texas-based GreenHunter Energy, Inc., began sales of its first Modular Above Ground Tank with the delivery of a 66-panel tank that will hold 60,000 barrels of fresh water at a multi-well Utica drill pad in Ohio, a press release from the parent company announced. The "proprietary and patent pending design" uses MAG panels that can support "heavy fluids in addition to fresh water" and that enable tank footprints to be configured "to match the well pad in multiple shapes and in virtually unlimited capacities above 11,000 barrels." For more, read the full press release.
 
Posted by M. Warnock in  Ohio   |  Permalink

 

May 05, 2013

Westerman, Inc. invests $3.5 million to expand facility, add 24 jobs in Fairfield County
 

Columbus-based Worthington Industries announced last week that a state tax incentive through the Ohio Tax Credit Authority will enable its Bremen-based subsidiary, Westerman Cos., to "add 24 jobs and more than $3.5 million in capital investment over the next three years" in Fairfield County, Columbus Business First reports. Increased demand for Westerman's wellhead equipment due to increased drilling of the Utica and Marcellus shales is driving the expansion, which will include new equipment purchases and renovations to its existing facility, The Fairfield Advantage Economic Development newsletter announced. For more, read the full story and the full newsletter.

 
Posted by M. Warnock in  Ohio   |  Permalink

 

May 02, 2013

Erroneous ownership information threatens to void Pennsylvania homeowners' longstanding quiet titles
 

When Cabot Oil & Electric Corp. began approaching landowners in Susquehanna County, Pennsylvania, with offers to lease their mineral rights, PPL Energy Corp. was as surprised as anyone to find out that it owned the old Northern Electric trolley line property, The Scranton Times Tribune reports. A title search revealed that erroneous ownership information filed in Wyoming County now threatens to void the quiet title actions that granted ownership of parts of that property to several residents – some of whom built houses and businesses on it. Whether the residents who maintained the land can retain ownership will likely be decided in a legal fight; however, PPL may try to avoid court by offering to "surrender surface rights" to landowners "in exchange for mineral rights," the article said. For more, read the full story.
 
Posted by C. Montgomery in  Pennsylvania   |  Permalink

 

May 02, 2013

High oil prices drive drillers to explore lesser-known shale formations
 

Drillers are using hydraulic fracturing to explore lesser-known shale formations in search of oil and gas that is economically and technologically possible to extract, The Texas Tribune reports. Because drilling a horizontal well can cost millions of dollars and shales can often "hold little oil or gas" or not be "brittle enough for the fracking process to work effectively," the amount of investment in these potential plays is closely tied to the price of oil and natural gas, the article said. For more, read the full story.
 
Posted by C. Montgomery in  United States   |  Permalink

 

May 02, 2013

NiSource midstream services subsidiary anticipates expansion as it constructs a processing plant in Mahoning County
 

NiSource Energy Ventures subsidiary NiSource Midstream Services LLC said that the company's $300 million Hickory Bend gas gathering and processing plant project – which includes the construction of 55 miles of pipelines in Pennsylvania and Ohio, and the construction of a cryogenic processing plant in Mahoning County – will likely only be the beginning of development in that area, The Business Journal reports (See the Jul 10, 2012, blog – "NiSource Inc. announces joint venture partner"). The company's CEO, Chad Zamarin, said that the area where the plant will be located is being developed in a way "that will allow for multiple plants to be sited" so that expansion can be done "at very little impact," the article said. For more, read the full story.
 
Posted by C. Montgomery in  Ohio   |  Permalink

 

May 01, 2013

Key considerations for landowners negotiating a pipeline right of way agreement
 

As the land rush in eastern Ohio begins to slow, and oil and gas leasing efforts give way to the drilling of wells, the next major issue facing landowners is infrastructure – specifically the construction of pipelines to transport oil and gas to market. The negotiation of pipeline easements and right of way agreements can be complicated, and must be carefully crafted to include important landowner protections and reasonable financial terms. Chris Montgomery and Matt Warnock, oil and gas attorneys at Bricker & Eckler LLP, recently wrote a bulletin exploring the various issues that landowners should consider when negotiating an oil and gas lease. For more information on how to protect your property while achieving the significant financial benefits from a pipeline right of way agreement, read the full bulletin.
 
Posted by M. Warnock in  Ohio   |  Permalink

 

May 01, 2013

Pennsylvania High Court ruling that shale is natural gas not minerals settles rights issues
 

In a unanimous ruling handed down last week, the Pennsylvania Supreme Court rejected the view that natural gas is a mineral, upholding the 1882 “Dunham Rule” that requires courts "interpreting deed reservations" to define "minerals" using "the common, layperson understanding of what is and is not a mineral: a substance of a metallic nature," The Associated Press and Pittsburgh Post-Gazette report.  The Supreme Court ruled that natural gas and oil are not minerals, regardless of how "other jurisdictions and state statutes" classify them. For more, read this Bricker & Eckler bulletin.

 
Posted by M. Warnock in  Pennsylvania   |  Permalink

 

May 01, 2013

Shale boom creates unfavorable climate for Ohio's conventional drillers
 

Despite the flurry of positive economic news surrounding the development of Ohio's Utica shale, these very investments are causing conventional vertical well drillers in Ohio to delay drilling plans for the Clinton sandstone and Knox dolomite, CantonRep.com reports. These drillers say a perfect storm consisting of "a hike in prices for mineral rights, inflated wages for workers and low prices for natural gas" is threatening to put them out of business. For more, read the full story.
 
Posted by C. Montgomery in  Ohio   |  Permalink

 

May 01, 2013

Texas appellate court allows Range Resources to countersue landowner for defamation and business disparagement
 

A decision handed down last week by the Second Court of Appeals in Forth Worth, Texas, will allow Range Resources Corp.'s claims for "defamation and business disparagement" to proceed against a landowner who sued the producer for contaminating his water well, Star-Telegram.com reports. Seeking $3 million in damages, Range Resources countersued Steven Lipsky in July 2011 – a month after he sued the company following receipt of an EPA order stating that the company had polluted his water with "dangerous levels of methane and benzene." The EPA withdrew its order in 2012 following a challenge by Range Resources and new evidence from the Texas Railroad Commission regarding the source of Lipsky's well's contamination. Although the court ordered that a number of Range's claims against the Lipskys be dismissed by the trial court, the appellate court let stand the company's claims that Steven Lipsky made "false, misleading, and disparaging statements" that caused the company's reputation to suffer, according to the court's opinion. For more, read the full story and the court's opinion.
 
Posted by D. Gerken in  United States   |  Permalink

 

May 01, 2013

Texas landowners seek class action status for royalty payments disputes
 

Chesapeake Energy Corp. has faced multiple lawsuits alleging underpayment of royalties during the past year, but a lawsuit filed by two Texas royalty interest owners is different because "it seeks class action status, a rarity for a Texas oil and gas dispute," Star-Telegram.com reports. Landowners whose leases specifically prohibit post-production charges from their royalty payments allege that Chesapeake is deducting the costs anyway. Since the price of natural gas prices began a long decline in 2008, producers – "scrambling to hang on to narrowing profit margins" – began deducting charges that they told landowners they were allowed to deduct, the article said. This effectively left royalty owners in charge of determining the accuracy of their payment statements. Allegedly, for many landowners, extra deductions from their payments that they contractually did not have to pay went unnoticed because their royalty stubs do not itemize deductions and instead list only the "sales price for the gas." For more, read the full story.
 
Posted by D. Gerken in  United States   |  Permalink

 

Apr 30, 2013

ODNR director pushes Ohio Senate to reintroduce oil and gas provisions that the House stripped from the biennial budget bill
 

Testifying before the Ohio Senate Finance General Government Subcommittee yesterday, Ohio Department of Natural Resources Director James Zehringer encouraged legislators to restore a number of oil and gas provisions in Gov. Kasich's biennial budget that were scrapped by the House, according to the Gongwer Ohio Report (See the Apr 18, 2013, blog – "Ohio House Republicans remove Gov. Kasich's oil and gas severance tax proposal from biennial budget bill"). Zehringer advocated for the requirement that drilling waste material not be sent to landfills until radium levels are analyzed and the results sent to the Department of Health, the Ohio EPA and the landfill itself. He also advocated for the following two proposals: the creation of "a permitting process for treating brine waste before discharging it into the ground or bodies of water"; the prohibition of hydraulic fracturing brine from use on roads to "control ice or dust"; and the requirement that "all oil and gas contracts be filed with the county recorder's office, the landowner, and/or the mineral interest owner within 30 days."
 
Posted by M. Warnock in  Ohio   |  Permalink

 

Apr 30, 2013

Ohio EPA probing MarkWest Energy following series of pipeline-construction spills
 

As the oil and gas industry works to construct pipelines that can move oil and gas from wells to processing plants, at least 138 pipelines are currently "in various stages of planning or construction in Ohio," The Columbus Dispatch reports. Denver-based MarkWest Energy, which is responsible for 48 of the pipelines, has had four “spills” between Sept. 17 and Feb. 9 that have caused a “lubricant made of clay and water” to be released into  streams and wetlands in Harrison and Belmont counties. The the Ohio Environmental Protection Agency is currently working with MarkWest to resolve the pending issues (including potential fines) and prevent future releases. For more, read the full story.

 
Posted by M. Warnock in  Ohio   |  Permalink

 

Apr 29, 2013

Natural gas could fuel the rise of combined heat and power (CHP) systems
 

Experts at a gas industry forum hosted by the West Virginia University College of Law last week said that "outdated policies and anti-competitive regulations" are hindering the potential growth of combined heat and power (CHP) systems, Coshocton Tribune reports. CHP, or cogeneration, systems produce electricity by capturing and reusing the heat that is usually wasted by traditional coal-fired power plants. About 80 percent of these systems in the United States are powered by natural gas, but the process only accounts for nine percent of U.S. power generation, the article said. Because prisons, colleges and other institutions "that produce electricity using coal- or oil-fired boilers and heat using separate systems" will soon have to comply with new clean air regulations, Ohio and the U.S. Department of Energy are "conducting a pilot project with CHP," the article said. For more, read the full story.
 
Posted by M. Warnock in  Ohio  United States  West Virginia   |  Permalink

 

Apr 28, 2013

State budget bill language requires quarterly oil and gas production reports
 

Because Ohio only requires that companies report production volumes annually, as opposed to traditional oil and gas producing states that require monthly reports, analysts are severely limited when trying to estimate "how gradually or sharply" horizontal wells are depleting the oil and gas trapped in the shale, Zanesville Times Recorder reports. A provision that would require companies to supply information on "the quality of the oil and richness of the natural gas" was stripped from the state budget bill before it was sent to the Senate; however, the bill does include language that requires oil and gas production quantity reporting every three months, the article said (See the Apr 18, 2013, blog – "Ohio House Republicans remove Gov. Kasich's oil and gas severance tax proposal from biennial budget bill"). For more, read the full story.
 
Posted by M. Warnock in  Ohio   |  Permalink

 

Apr 27, 2013

Kinder Morgan Inc. will continue absorbed company's plan to construct a processing and fractionation plant in Harrison County
 

Plans by Houston-based El Paso Corp. to construct Tuscarawas County's third processing and fractionation plant are to move forward under Houston-based Kinder Morgan Inc., which completed an acquisition of El Paso Corp. last year, TimesReporter.com reports. Two other such plants are currently under construction in Scio and Cadiz, both in Harrison County. The Kinder Morgan Utica Project, as the company has dubbed it, is "estimated to cost between $575 million and $750 million," and will create between 25 and 30 permanent jobs, the article said. For more, read the full story.
 
Posted by M. Warnock in  Ohio   |  Permalink

 

Apr 26, 2013

Major shippers are adding more natural gas-powered vehicles to their fleets
 

In the midst of a long standoff to see what will be invested in and constructed first: the natural gas-powered vehicles or their refueling stations, leading engine manufacturer Cummins this month began shipping liquefied natural gas (LNG) engines to major shippers like Procter & Gamble and the United Parcel Service, The New York Times reports. Although the number of LNG and compressed natural gas (CNG) fueling stations pales in comparison to the 157,000 fueling stations selling gasoline in the United States, companies taking note of these major shippers' switch to natural gas vehicles are working to construct a network of stations across the country. Various states and the federal government are offering tax incentives and grants for "installing natural gas fuel stations and using vehicles fueled by natural gas," but the upfront cost of the conversion is still repelling some fleet owners who fear the savings will be lost if the Obama administration begins exporting natural gas or allows the excise tax credit for the seller of CNG or LNG to expire. For more, read the full story.
 
Posted by M. Warnock in  United States   |  Permalink

 

Apr 26, 2013

Oklahoma company sets up ATEX pipeline construction outfit in Brooke County, West Virginia
 

Tulsa-based Sheehan Pipe Line Construction Co. is breathing new life into the 650-acre property in Beech Bottom, West Virginia, that was left vacant following the bankruptcy of the area's largest employer, RG Steel, in November, The Herald-Star reports. The Business Development Corp. of the Northern Panhandle and Los Angeles-based Hackman Capital acquired the property, then announced four months later that Sheehan, their first tenant, would "use a 20-acre parcel as a launch pad for a 40-mile section of Enterprise's ATEX pipeline," the article said (Read the Jan 28, 2013, blog – "Group accuses pipeline developer of improperly interpreting eminent domain statute to threaten landowners"). For more, read the full story.
 
Posted by M. Warnock in  West Virginia   |  Permalink

 

Apr 22, 2013

ODNR official testifies before U.S. House committee in opposition to federal hydraulic fracturing regulations
 

As one of the state officials from Ohio, Texas and Utah who testified last week before the U.S. House Natural Resources Committee, Richard Simmers – chief of the Ohio Department of Natural Resources Division of Oil and Gas Resources Management – said that federal regulation of hydraulic fracturing would amount to an unnecessary "one-size-fits-all approach to oil and gas drilling" and that states are able to effectively, efficiently and economically regulate and respond to their own drilling activities more quickly than the federal government, The Plain Dealer reports. Opponents of this position maintained that the quality of regulation differs greatly from state to state, and that establishing a "uniform oversight over hydraulic fracturing around the country"  would provide a consistent standard that would prevent fifty state legislatures from having to "invent the wheel fifty times," the article said. For more, read the full story.
 
Posted by M. Warnock in  Ohio  United States   |  Permalink

 

Apr 21, 2013

Conflict of interest delays hearing to temporarily reinstate D&L Energy's operating permits
 

An Ohio Oil and Gas Commission hearing to decide whether to "temporarily reinstate the operating permits of D&L Energy" was abruptly cancelled last week when one of the three commission members, Robert Frost of the Cleveland-based law firm Tucker Ellis, recused himself from the proceedings due to a "potential conflict" of interest with a partner at his firm being somehow involved with either D&L Energy or the Ohio Department of Natural Resources Division of Oil and Gas Resources Management, The Vindicator reports (See the Feb 15, 2013 – "Feds charge D&L Energy owner with violating the U.S. Clean Water Act"). With only two votes remaining on a commission that has three currently appointed members, it cannot by law hear any case. Although the law allows the commission to "borrow a temporary commission member" from a wing of ODNR, the issue of rescheduling the hearing will soon be irrelevant since a formal hearing is scheduled for May 22 and 23 to "permanently decide the fate of D&L's waste-disposal operations in the state," the article said. For more, read the full story.
 
Posted by M. Warnock in  Ohio   |  Permalink

 

Apr 21, 2013

EV Energy Partners reopens talks to sell 104,000 acres piecemeal after wholesale deal falls through
 

Houston-based EV Energy Partners announced last week that a deal to sell nearly 104,000 Utica acres in Ohio failed due to an ability to agree with an unnamed buyer on the terms, Akron Beacon Journal reports. The company, which moved to sell the acreage after deciding not to invest in drilling wells there, is still negotiating with that buyer, but is also "reopening talks with other parties on smaller packages in eastern Ohio and surrounding areas," the article said.

According to the article, the available land includes: 40,300 acres in Stark County; 21,800 acres in Tuscarawas County; 12,300 acres in Trumbull County; 10,900 acres in Carroll County; 4,600 acres in Guernsey County; 1,700 acres in Harrison County; 4,400 acres in Mahoning County;  6,200 acres in Muskingum County; 1,000 acres in Noble County; and 500 acres in "other unidentified counties." For more, read the full story.
 
Posted by M. Warnock in  Ohio   |  Permalink

 

Apr 21, 2013

IRS specialist provides tax tips on reporting natural resource income
 

Jenny Jenkins, an IRS media relations specialist serving Ohio, West Virginia and Pennsylvania, recently posted IRS tips on reporting natural resource income for a online local news community known as the Twinsburg Patch. With links to tax forms, her post offers a straightforward overview of tax rules and requirements related to lease agreements; leases and lease bonuses; royalty payments; depletion deduction; and additional expenses. For more, read the full post.
 
Posted by M. Warnock in  United States   |  Permalink

 

Apr 19, 2013

H.B. 134 would allow municipalities to transfer funds from water sales to the general fund
 

This week, Ohio Rep. Jack Cera (D-Bellaire) introduced H.B. 134, which would "amend section 743.05 of the Ohio Revised Code to allow a municipal corporation to transfer funds received under contracts for the sale of water for use in well stimulation to the general fund of the municipal corporation," according to the legislation. For more, read the full text of H.B. 134.
 
Posted by M. Warnock in  Ohio   |  Permalink

 

Apr 18, 2013

Companies drilling for oil in (western portions of) eastern Ohio are coming up dry
 

Drillers for companies that were dedicating their efforts in Ohio's Utica formation to striking oil frequently found "the rock too dense and underground pressures insufficient to produce oil," Bloomberg reports (See our Jan 27, 2012, blog – "Chesapeake focuses on the liquids-rich Utica"). While natural gas still appears to be plentiful in some areas of the Utica, "only a minority of companies are positioned to benefit." Chesapeake Energy, EnerVest Ltd. and Devon Energy Corp. began trying to sell acreage when their oil production failed to meet predictions, and EnerVest is having difficulty finding buyers. The key may rest with technology, but Chesapeake said that it is up to other companies to "crack 'the code' of the Utica's oil prospects," the article said. For more, read the full story.
 
Posted by M. Warnock in  Ohio   |  Permalink

 

Apr 18, 2013

Ohio House Republicans remove Gov. Kasich's oil and gas severance tax proposal from biennial budget bill
 

Ohio Gov. John Kasich's proposal that a "20 percent income-tax cut in the next three years, a 50 percent tax deduction for business owners on up to $750,000 in net income, and a 0.5 percentage-point cut in the state sales-tax rate to 5 percent" be offset by an increase in both the state's oil and gas severance tax applicable to horizontal shale wells and a major expansion of the sales-tax base has been removed by Republican leaders in the Ohio House of Representatives, Columbus Business First reports. The amended, two-year budget plan is nearly $2 billion smaller than the governor's proposal, but still includes a seven percent income-tax rate cut across the board each year that will be financed by "expected growth in existing tax revenue sources, as well as about $400 million in surplus funds that Mr. Kasich had planned to give back to taxpayers next year in the form of a tax rebate," The Toledo Blade reports. For more, read the full Columbus Business First story, the full Toledo Blade story and the full text of substitute H.B. 59.

For various perspectives on the severance tax issue, please review the following testimonies made available by Ohio Rep. Peter Beck:

 
Posted by M. Warnock in  Ohio   |  Permalink

 

Apr 17, 2013

Cheaper ethylene produced from domestic natural gas is revitalizing the U.S. chemical industry
 

William E. Hagstrand, a senior consultant for NorTech – a regional nonprofit technology-based economic development organization serving Northeast Ohio – penned an advanced energy blog for Crain's Cleveland Business last week describing how the growth of the domestic shale industry is leading to a revolution in the U.S. chemical industry. The fact that the United States can now produce ethylene from domestic natural gas instead of having to use naphtha (crude oil), like many other parts of the world, gives the U.S. a "three-to-one cost advantage" for the production of a vitally important "first step in the chemical industry value chain." There was little indication just a few years ago that there was going to be any investment, but now "more than $55 billion are planned for the development and growth of the U.S. chemical industry." For more, read the full blog.
 
Posted by M. Warnock in   |  Permalink

 

Apr 17, 2013

Ohio University's Consortium for Energy, Economics & the Environment will host a webinar on Ohio shale development trends
 

As part of the 2013 CE3 Energy Webinar Series, the Consortium for Energy, Economics & the Environment (CE3) at the Ohio University Voinovich School of Leadership and Public Affairs is hosting a webinar called, "State Trends and Ohio Shale Development" on Tuesday, May 7, 2013, from 12:00 p.m. to 1:15 p.m.  With former U.S. Congressman Zachary T. Space moderating, experts from the Environmental Defense Fund, EQT and the Youngstown/Warren Regional Chamber of Commerce will discuss trends regarding "the direction of regulations, taxes, environmental and emissions impacts, public health, business attraction and growth, workforce, and more."  This webinar is free and open to the public.  For more, read the event's brochure.
 
Posted by M. Warnock in  Ohio   |  Permalink

 

Apr 17, 2013

West Virginia Legislature rejects all natural gas proposals
 

More than half a dozen bills intended to impact the natural gas industry failed to pass the West Virginia Legislature before it adjourned on Saturday, with the majority failing to get enough support to make it on a committee agenda, Tribune Chronicle reports. The West Virginia Future Fund, which would have adopted a program similar to one in Alaska where increased revenue from severance taxes are appropriated to residents at a later time, failed to gain enough support for the third consecutive year. Other bills that failed include increased requirements for landmen; a fund for infrastructure projects in counties where Marcellus and Utica shale drilling occurs; a "cradle to grave" monitoring requirement for all water drawn from the state's water resources; and a new rule to allow pooling of land for drilling when an owner cannot be found, the article said. For more, read the full story.
 
Posted by M. Warnock in  West Virginia   |  Permalink

 

Apr 16, 2013

New Williams Partners/Shell midstream joint venture will pursue gathering and processing agreements in Ohio
 

Williams Partners L.P. announced recently that it has formed a midstream joint venture with Shell, known as Three Rivers Midstream, which will provide gas gathering and gas processing services for Shell's production on approximately 275,000 dedicated acres in Northwest Pennsylvania. Additionally, the joint venture also plans to "pursue gathering and processing agreements with other producers in the liquids-rich areas of Northeast Ohio." For more, read the full press release.
 
Posted by M. Warnock in  Ohio  Pennsylvania   |  Permalink

 

Apr 11, 2013

Southeastern Ohio Port Authority to construct a $2.2 million commerce park in Washington County
 

Built by the Southeastern Ohio Port Authority (SEOPA) using state and federal funding, as well as a $862,500 bridge loan, the new 35,000-square-foot Ingenuity Center in Reno should be completed by the end of this year, The Marietta Times reports. The Ingenuity Center is a commerce park intended to serve as a feeder where smaller companies can grow before moving into privately owned developments. Terry Tamburini, the current executive director of the SEOPA, said that "intense interest in oil and gas exploration" in Washington County has encouraged some small companies within that industry to locate to the Ingenuity Center, the article said. For more, read the full story.
 
Posted by M. Warnock in  Ohio   |  Permalink

 

Apr 10, 2013

Chesapeake Energy Corp. looks to sell 10 percent of its Utica acreage
 

Real-estate listings made public this week show that Chesapeake Energy Corp. is putting up 94,000 acres – nearly 10 percent of the company's one million net Utica acreage – for sale, The Wall Street Journal reports. A company spokesman said that Chesapeake wants to sell the land so it can "focus on its other Utica holdings," the article said. According to CantonRep.com, the acreage for sale is located  "throughout Stark County – except for Washington, Paris, Sandy and Osnaburg townships – and in seven southern Portage County townships." For more, read the full Wall Street Journal story and the full CantonRep.com story.

 
Posted by M. Warnock in  Ohio   |  Permalink

 

Apr 10, 2013

Representatives from eight companies attended a two-day course on American Petroleum Institute certification in Boardman
 

As part of its Youngstown Ohio Utica & Natural Gas (YOUNG) series, the Youngstown/Warren Regional Chamber this week brought in Ed Durante, president of Texas International Engineering Consultants, to teach a two-day course on American Petroleum Institute certification and its quality-assurance requirements, The Business Journal reports. Eight companies attended API Spec Q1 training, which is geared toward manufacturers and refurbishment companies, and explores "general and documentation requirements relative to developing an API quality management system, planning and review, product realization, and API requirements for measurement, analysis and improvement." For more, read the full story.
 
Posted by M. Warnock in  Ohio   |  Permalink

 

Apr 09, 2013

Charter amendment would ban hydraulic fracturing in Youngstown
 

A new organization – the Mahoning Valley Coalition for Job Growth and Investment – formed recently to defeat a citizen-developed charter amendment to ban hydraulic fracturing in Youngstown that will be included on the May 7 ballot, The Vindicator reports. The initiative, which obtained enough signatures for inclusion on the ballot through the efforts of the organization Frack Free Youngstown, seeks to "trump state [e.g., Ohio Revised Code Section 1509.02] and federal laws on fracking," the article said. For more, read the full story.

 
Posted by M. Warnock in  Ohio   |  Permalink

 

Apr 08, 2013

Colorado House committees advance bills for mineral rights transparency and environmental issues
 

H.B. 1268, a bill that would extend the mineral rights information disclosure requirement for new homes to include resales, recently passed unanimously out of Colorado's House Agriculture, Livestock & Natural Resources Committee with the support of the oil and gas industry, Denver iJournal reports. Another bill, H.B. 1267, which would "increase the maximum penalty for violations of the Oil and Gas Conservation Act from $1,000 to $15,000 per day and eliminate a $10,000 cap on fines for each violation," passed out of the House Finance committee without industry support, the article said. For more, read the full story.

 
Posted by M. Warnock in  Ohio   |  Permalink

 

Apr 05, 2013

General Electric Co. bets on the shale gas boom
 

The General Electric Co. announced this week that it will soon hire up to 125 engineers and scientists to staff a new, $10-million research lab in Oklahoma City dedicated to improving the extraction process for oil and gas deposits, "including hydraulic fracturing and horizontal drilling," Bloomberg reports. GE, who saw oil and gas become its fastest-growing segment with 57 percent growth since 2009, will investigate how to reduce the environmental impact, manage the water usage and meet the electricity needs for drilling operations. In addition to "supplying equipment and services to energy firms," the company is also developing liquefied natural gas-powered locomotives and helping introduce compressed natural gas-powered vehicles to corporate fleets, the article said. For more, read the full story.

 
Posted by M. Warnock in  United States   |  Permalink

 

Apr 04, 2013

Chesapeake says a lack of processing capacity reduces its Utica production significantly
 

Interim Chesapeake Energy Corp. CEO Steven C. Dixon, who on April 1 replaced Aubrey McClendon, said that a lack of processing capacity is why Chesapeake's natural gas production in the Utica shale play is only 75 million cubic feet equivalent, The Columbus Dispatch reports. The company has a goal net production of more than 330 million cubic feet of gas equivalent by the end of 2013 – the success of which, he said, will be dependent upon the "timely startup of critical infrastructure at multiple facilities." For more, read the full story.
 
Posted by M. Warnock in  Ohio  United States   |  Permalink

 

Apr 04, 2013

FracTracker Alliance opens new Warren office
 

After spending $2.5 million last year to turn a downtown Warren location into a nonprofit organization incubator, the Raymond John Wean Foundation provided office space to FracTracker Alliance – a Western Pennsylvania-based hydraulic fracturing watchdog and tracking agency that recently hired Ted Auch as the Ohio program coordinator for its Warren office, The Vindicator reports (See the Aug 23, 2012, blog – "Hydraulic fracturing watchdog agency expands to Ohio"). In his new position, Auch will work to determine "true production rates" for operational oil and gas wells in Ohio, which he said are difficult to determine due to a lack of data from oil and gas companies. Noting maps and visual representations that are posted on the organization's website, www.FracTracker.org, Auch said that the production information made available through the organization "could help someone get higher royalties or signing bonuses on their land," the article said. For more, read the full story.
 
Posted by M. Warnock in  Ohio   |  Permalink

 

Apr 02, 2013

Japan pushes for LNG imports from the United States
 

After the meltdown of the Fukushima Daiichi nuclear power plant in 2011 led to the subsequent suspension of all nuclear reactors in Japan, the country is now the top liquefied natural gas importer in the world, The Wall Street Journal reports. Because of this, Japan is working to get LNG exports from the United States, but the U.S. has been hesitant to approve any shale gas exports due to concerns that it would raise costs for domestic consumers (See the Dec 22, 2011, blog – "Gas companies and major manufacturers spar over exports"). The proposed arrangement would be "the world's first futures contract for liquefied natural gas," meaning that the price of LNG would be determined "independently from oil," the article said. For more, read the full story.

 
Posted by M. Warnock in  United States   |  Permalink

 

Apr 02, 2013

Ohio Oil and Gas Association's 2012 oil and gas activity report is now available
 

A new report presented during the Ohio Oil and Gas Association's annual winter meeting in Columbus this month shows that 669 miles of vertical and horizontal wells were drilled across the state last year and that the Utica saw the most activity of any permitted formation in the state, Business Journal reports. The "Debrosse Memorial Report: 2012 Oil and Gas Activity in Ohio," found that 54 percent of the wells were in development and 46 percent were exploratory. Chesapeake Energy Corp. drilled the most in the Utica with 158 wells covering the most footage for a single company – 1,609,781 feet. For more, read the full Business Journal story and the full OOGA report.

 
Posted by M. Warnock in  Ohio   |  Permalink

 

Apr 02, 2013

Report links Oklahoma earthquake to wastewater injection wells
 

A new report finding a "compelling" link between a magnitude 4.7 earthquake that occurred within a series in Oklahoma in November 2011 and nearby wastewater injection wells is the latest evidence linking seismic activity to underground oil and gas wastewater disposal, The New York Times reports (See the Mar 09, 2012, blog – "Confirmation of link between injection well and recent earthquakes leads to new disposal rules"). The Oklahoma Geological Survey, however, disputes the findings, saying that the data suggest that "the Prague earthquake sequence was the result of natural causes," the article said. For more, read the full story.
 
Posted by M. Warnock in  United States   |  Permalink

 

Mar 29, 2013

H.B. 59's radioactive drilling waste proposal will likely be separated from the budget and considered this fall
 

Legislation introduced as part of Gov. Kasich's proposed budget, H.B. 59, that would tighten regulations regarding disposal of low-level radioactive wastes from natural gas drilling "will likely be stripped from the budget and handled as part of a more comprehensive revision of the state's landfill laws due this fall," Ohio Rep. Dave Hall (R-Millersburg), chairman of the House Agriculture & Natural Resources Committee, said Thursday, according to the Gongwer Ohio Report (See the Feb 15, 2013, blog – "Ohio agencies propose legislation regulating radioactive drilling wastes"). While the Ohio Oil and Gas Association insists that the proposed regulations are unnecessary, environmentalists decry them for being too lax. Rep. Hall, who anticipates the issue will become more pressing as more companies adopt methods for recycling wastewater, said radioactive drilling waste "would be more appropriately addressed in the context of a much broader review of landfills" expected to occur with the Agriculture & Natural Resources Committee after summer recess, the article said.
 
Posted by M. Warnock in  Ohio   |  Permalink

 

Mar 29, 2013

U.S. Rep. Tim Ryan discusses LNG exports with German Chancellor Merkel
 

During a trip to Germany this week, U.S. Rep. Tim Ryan (D-Niles) spoke with Chancellor Angela Merkel about her country potentially buying liquefied natural gas from Ohio, The Plain Dealer reports. Germany currently purchases most of its LNG from Russia; however, Rep. Ryan said in a press release that Chancellor Merkel is "interested in increasing competition for natural gas and buying it from a strong strategic ally that shares their values, especially an appreciation for the rule of law." Rep. Ryan speculated that such an arrangement would enable the region to sell its resource abroad and "create jobs at home," the article said. For more, read the full Plain Dealer story and Rep. Ryan's press release.


 
Posted by M. Warnock in  Ohio   |  Permalink

 

 

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