The Daily Digger

New permits issued last week:   0  (Previous week:  7 )   -7 Total horizontal permits issued:  2905  (Previous week:  2905 )   +-0 Total horizontal wells drilled:  2439  (Previous week:  2424 )   +15 Total horizontal wells producing:  2057  (Previous week:  2057 )   +-0 Utica rig count:  20  (Previous week:  20 )   +-0 Connect with us on Facebook and Twitter! Follow @EnergyNewsBlog

From The Business Journal: Four years in the making, the new Lordstown Energy Center stands as an example of how advanced technology is reshaping the industrial landscape of the Mahoning Valley, officials say.  “This is about what’s coming, about what is next,” says James Dignan, president and CEO of the Youngstown/Warren Regional Chamber. “This is a great day for the Mahoning Valley.”  Dignan was among a host of community leaders and media invited to an open house Wednesday at the Lordstown Energy Center – a $1 billion combined cycle electrical generation plant that began operations earlier this month.  “Just fathom this – a $1 billion investment,” Dignan says. “This says we’re open for business, jobs and investment.”  Representatives from Trumbull County, the village of Lordstown, the Lordstown School District, and the chamber were provided with an up-close look at a project that has taken at least four years to reach this stage.  “This was a long ...

From the Youngstown Vindicator: The state says in a new court filing the injection well it closed on state Route 169 just north of Niles could reopen if the Howland-based company that owns it would devise a comprehensive plan.  The filing tells the Ohio Supreme Court that it should refuse to hear the appeal American Water Management Services requested recently because the case is “routine” and does not present any issues of statewide interest.  The filing says the Weathersfield Township well’s operations were “likely responsible for two [2014] earthquakes of increasing severity in an urban area populated by schools, residences, businesses and a fire department.”  It says the ODNR Division of Oil and Gas “believed the continued operation of AWMS’s injection wells could result in higher-magnitude earthquakes, so the division suspended the operation of both wells.”  The closings led to appeals to a state commission, a Franklin County Common Pleas Court judge, ...

From Kallanish Energy: The Appalachian Basin’s Utica Shale holds great potential, according to XTO Energy’s Andree Griffin.  Speaking to roughly 900 attendees Wednesday at the Shale Insight 2018 conference in Pittsburgh, Pa., at the Shale Insight 2018 conference. Griffin, XTO’s vice president, Geology and Geophysics, is a big believer in the Utica, found mostly in eastern Ohio, Kallanish Energy reports.  “Do not underestimate the potential of the Utica Shale,” she told the audience. What’s happening there is “staggering and very exciting,” she added. It is a shale play where the surface has barely been scratched, she said.  Only the beginning  The eighth annual Shale Insight conference was presented the Marcellus Shale Coalition, the Ohio Oil and Gas Association and the West Virginia Oil and Natural Gas Association.  “You can tell this is only the beginning,” Griffin said of the Utica Shale. “The potential in the Utica is enormous.”  The gassy...

From Kallanish Energy: Nexus Gas Transmission on Wednesday was granted Federal Energy Regulatory Commission approval to begin flowing natural gas on the 255-mile Nexus line, which crosses northern Ohio bound for southern Michigan.  FERC granted Nexus’ Sept. 17 request for permission to start using the 36-inch line, a related compressor station and metering facilities.  In a letter, FERC said recent construction reports and third-party monitoring showed Nexus “has adequately stabilized the areas disturbed by construction and that restoration is now proceeding satisfactorily.”  Nexus has committed to completing restoration as close to Oct. 31 as possible, according to the FERC letter, reviewed by Kallanish Energy.  FERC’s decision means Nexus can ship roughly 1 billion cubic feet per day (Bcf/d) of natural gas, representing nearly two-thirds of the pipeline’s 1.5 Bcf/d capacity.  Nexus has said it would submit separate requests to operate other parts o...

From a Gulfport Energy press release: Gulfport Energy Corporation (NASDAQ: GPOR) (“Gulfport” or the “Company”) today provided an update for the quarter and nine-months ended September 30, 2018. Key information includes the following:  Net production during the third quarter of 2018 averaged 1,427.5 MMcfe per day, a 7% increase over the second quarter of 2018 and 19% increase versus the third quarter of 2017.  Realized natural gas price for the third quarter of 2018, before the impact of derivatives and including transportation costs, averaged $2.32 per Mcf, a $0.58 per Mcf differential to the average trade month NYMEX settled price.  Realized oil price for the third quarter of 2018, before the impact of derivatives and including transportation costs, averaged $68.73 per barrel, a $0.77 per barrel differential to the average WTI oil price.  Realized natural gas liquids price for the third quarter of 2018, before the impact of derivatives and including transpor...

From WTRF: Area business leaders met on Tuesday evening at the Ohio Valley Mall to discuss the possibility of a new ethane cracker plant coming to the area.  Last week, three Belmont County Commissioners were in Potter Township, Pennsylvania to visit the Shell Chemicals ethane cracker plant site.  Rebecca Matsco, The Chair of Supervisors in Potter Township, led the meeting and spoke of the benefits in which the plant has provided to Beaver County  She hoped to provide insight into what an ethane cracker plant could do for the Ohio Valley.  "This meeting is just giving this group of people a taste of what we need to do in the near future and be proactive and prepared for what's about to happen," said Exec Director of Belmont County Tourism Barb Ballint who organized the meeting.  Officials said there is no set date for an announcement of whether the cracker will be built or not.  However, they said that if so, it will be revealed by the...

New permits issued last week:   7   (Previous week:  3 )  +4 Total horizontal permits issued:  2905  (Previous week:  2900 )  +5 Total horizontal wells drilled:  2424  (Previous week:  2424 )  +-0 Total horizontal wells producing:  2057  (Previous week:  2033 )  +24 Utica rig count:  20  (Previous week:  18 )   +2 Connect with us on Facebook and Twitter! Follow @EnergyNewsBlog

New permits issued last week:   3   (Previous week:  4 )  -1 Total horizontal permits issued:  2900  (Previous week:  2897 )  +3 Total horizontal wells drilled:  2424  (Previous week:  2421 )  +3 Total horizontal wells producing:  2033  (Previous week:  2033 )  +-0 Utica rig count:  18  (Previous week:  17 )   +1 Connect with us on Facebook and Twitter! Follow @EnergyNewsBlog

From The Herald Star: Enrollment in the Utica Shale Academy is increasing, members of the governing board of the Jefferson County Educational Service Center board learned Wednesday. Tony Delboccio, principal of the Salineville campus, said enrollment is up at the academy’s locations in Salineville and Columbiana.  “It’s good,” he said. “There are a a couple of days we are packed in there like sardines, but it’s a good thing.”  Delboccio reported the enrollment in the schools is up to 49 students at the Salineville campus and 14 at the Columbiana campus.  He said the school now is providing the students with lunches.  “They were spending $20 at the vending machines and it was taking away from instruction time,” Delboccio said.  He also told the board there is more than $55,000 worth of rollover funds that can be used for the new school year. Click here to read more. Connect with us on Facebook and Twitter! Follow @EnergyNewsBlog

From The Times Leader: Future job creation and a large investment in the economy are expected to stem from the natural gas boom in Eastern Ohio. That was part of the message shared Thursday when more than 100 people gathered at Belmont College to learn about the status of the Utica Shale play in Ohio. The St. Clairsville Area Chamber of Commerce worked with the Columbus-based Ohio Oil and Gas Association to coordinate the event, which also featured speakers from the Ohio Gas Association and the American Petroleum Institute — Ohio, Ascent Resources and EQT Corp. Those industry insiders addressed a large crowd in the newly renovated Horizon Hall in a Lunch and Learn format.  Mike Chadsey, public relations director for OOGA, educated the audience on the history of oil and gas development in the Buckeye State. While the first successful drilling operation got underway in Pennsylvania in the mid-19th century, Chadsey said oil was first discovered in Ohio in 1814 in Noble County near...

From the Akron Beacon Journal: Shell Appalachia’s “cracker plant” in western Pennsylvania is years away from making plastic pellets, but thousands of workers are busy building the $6 billion project.  Michael Marr, Shell Appalachia’s business integration lead, gave his first presentation on the Pennsylvania Chemicals Project to an Ohio audience at Utica Summit VI presented Wednesday by the Canton Regional Chamber of Commerce and ShaleDirectories.com at Walsh University.  Shell is building its Pennsylvania Chemicals Project on the site of a former zinc smelter next to the Ohio River in Beaver County.  Shell chose to build the plant about 30 miles northwest of Pittsburgh because the site is close to ethane-producing Marcellus Shale wells and is within 700 miles of 70 percent of the North American market for polyethylene pellets.  The plant consists of a cracker that uses heat and pressure to turn ethane into ethylene. Three other units then turn the ethane in...

From a press release: Nuverra Environmental Solutions, Inc. (NYSE American: NES) today announced it has acquired Clearwater Solutions, a leading operator of saltwater disposal wells (SWDs) in the Marcellus and Utica Shale areas, for $41.9 million, subject to customary purchase price adjustments.  This purchase more than doubles Nuverra’s SWD capacity in the region and will add value for each of its customers with more strategically located disposal capacity. Clearwater’s disposal wells at the Clearwater Three and Clearwater Five locations offer several offloading lanes and disposal capacity of 17,500 barrels per day. Its locations are in Guernsey County, Ohio, which is in the heart of the regional oil and gas activity.  Charlie Thompson, Interim Chief Executive Officer said, “The Clearwater acquisition significantly improves our competitive position in the Northeast marketplace due to the added capacity of the new wells and logistical advantages for our trucking business...

From a press release: Lordstown Energy Center (LEC), a 940-megawatt, gas-fueled electricity generation plant, announced today that it has begun commercial operation. LEC uses locally sourced natural gas to generate safe, clean and efficient energy that serves approximately 850,000 households.  “We are excited to serve customers with this state-of-the-art, environmentally friendly facility,” said Robert Haley, LEC operations director. “Our team is well-equipped and highly trained, and I’m pleased that we have begun 24/7 operations.”    “We’re very grateful for the support we’ve received from our investors, employees, suppliers, local and state government leaders and the residents of our community, including hundreds of construction workers. Their cooperation and hard work were critical to our ability to achieve today’s milestone.”  James Dignan, president and CEO of Youngstown Warren Regional Chamber, added, “We are happy to have helped bring this nearly $1 ...

From a press release: Reliable One Resources, Inc., a provider of innovative water disposal and water recycling services, today announced the purchase of an existing, operating, water disposal and injection facility in Athens County, Ohio, a key milestone in the company’s strategy to collect and treat produced and flowback water for oil and gas operators throughout the United States. The purchase was made by Reliable One’s wholly-owned Reliable Enterprises, Inc. subsidiary, which does business in the state as Reliable Enterprises Ohio, Inc. The Athens County facility has current contracts with oil and gas producers and water haulers in the Marcellus Shale region. As a result, an existing supply of water is already committed to the site, and operations at the facility will be maintained throughout the ownership change. Existing management has agreed to stay on to ensure a seamless transition with uninterrupted operations at the site.  The location of the facility is considere...

Connect with us on Facebook and Twitter! Follow @EnergyNewsBlog

New permits issued last week:   4   (Previous week:  14 )  -10 Total horizontal permits issued:  2897  (Previous week:  2892 )  +5 Total horizontal wells drilled:  2421  (Previous week:  2420 )  +1 Total horizontal wells producing:  2033  (Previous week:  2029 )  +4 Utica rig count:  17  (Previous week:  18 )   -1 Connect with us on Facebook and Twitter! Follow @EnergyNewsBlog

From the Pittsburgh Business Times: A final investment decision multibillion-dollar second ethane cracker being considered on the site of a former Ohio power plant south of Pittsburgh could be delayed until after the first of the year.  Word earlier this year was that the PTT Global Chemicals and Daelim ethane cracker, which would be similiar in size to the one that Shell Chemicals is building in Monaca, would give the go-ahead by the end of 2018. But now sources in the industry say it could be pushed back into 2019 not for any reason related to whether the project would go ahead but instead due to the complexity of the decision.  Shell Chemicals took years of prep work, acquisition of land, demolition and literally moving a hill and a road in Beaver County before it decided in June 2016 to go ahead with the ethane cracker. PTT, a Thailand-based chemical company, is further back on the timeline because it got started years later.  PTT’s site, along the Ohio Rive...

From the Daily Jeffersonian: Efforts are on course now for a March groundbreaking for work on the planned Guernsey Power Station, said Norm Blanchard, executive director of the Cambridge-Guernsey County Community Improvement Corporation. Blanchard conferred on Monday morning with Mary and Michael King who are spearheading the power plant development efforts. The plant is expected to produce 1,650 megawatts of electricity, which would be enough to power about 1.5 million homes. The timetable for beginning work on the project has been moved back several times. That has happened because of the many variables with which the Kings have had to contend. Each power plant project entails its own unique challenges. For the Guernsey Power Station, that challenge has been simply its unexpected complexity. Factors that had to be faced included the site’s proximity to Interstate 77, environmental matters because of the wetlands designation on the planned site and the fact that the area —...

From the Toledo Blade: The Ohio Supreme Court denied a request Friday to force the Lucas County Board of Elections to place a Lake Erie Bill of Rights initiative on the November ballot.  Last month, Toledoans for Safe Water filed a lawsuit with the court against the elections board for denying the group’s request to have its proposed measure on the ballot that calls for a vote to amend the Toledo City Charter and declare the Lake Erie watershed has legal rights to “exist and flourish.” It also proposes the world’s 11th largest body of water be given rights as an ecosystem that citizens would be legally entitled to defend.  The Supreme Court found the Toledoans for Safe Water failed to show the elections board abused discretion or disregarded the law by rejecting their petition.  Assistant county prosecutor Kevin Pituch, who represented the elections board, said in an email Friday he is pleased with the decision. He previously argued the Lake Erie group’s proposa...

From Marcellus Drilling News: In the Summer and Fall of 2016, EQT drilled six Marcellus Shale wells on a well pad located on an adjacent farm. The horizontal lateral “legs” of those wells extended beneath the Richards property. “When we received the first royalty checks from the new horizontal wells in January, 2017, and I was shocked to see how much EQT had taken from us in the deductions,” stated Mr. Richards.  In addition to a sizeable increase in their royalty payments from the Marcellus Shale wells, the Richardses discovered something very troubling. In violation of the terms of the 1951 leases, EQT had taken large deductions from their gas royalty payments.  Those royalty deductions had been taken to offset the costs of the natural resources severance taxes which the State of West Virginia charged EQT as a producer of oil and gas on both the old vertical wells and the new horizontal shale wells. The corporation had also taken deductions to offset post-production co...

From The Canton Repository: Jeff Lukas, who handles business development for IML, said the company needed a central location close to one of its larger customers, Land O’ Lakes. IML was shipping containers from facilities in Iowa and Quebec, and needed a location where it could add production.  “We needed something in between,” Lukas said.  The Canton area met the location requirement, and shipping logistics are easier because of the region’s highway system, Lukas said.  Additionally, Ohio proved to be a business-friendly state, Lukas said.  Ray Hexamer, president of the Stark Economic Development Board, said the agency worked with Team Northeast Ohio and JobsOhio to develop an incentive package for IML. The Ohio Tax Credit Authority reviewed the proposal and during a meeting on Monday approved a 1.129 percent, seven-year job creation tax credit for the company.  Plans are for IML Containers of Ohio to provide research and development, die cutting, ...

New permits issued last week:   14   (Previous week: 4 ) +10 Total horizontal permits issued:  2892  (Previous week:  2889 )  +3 Total horizontal wells drilled:  2420  (Previous week:  2421 )  -1 Total horizontal wells producing:  2029  (Previous week:  2025 )  +4 Utica rig count:  18  (Previous week:  18 )   +-0 Connect with us on Facebook and Twitter! Follow @EnergyNewsBlog