Ohio landowners’ group get warning on changing leases

From the Marcellus Drilling News:

At a meeting of the uber-large Associated Landowners of the Valley (ALOV) landowner group last night in Youngstown, Ohio, lawyer Alan Wenger warned the 500 landowners in the audience that landmen are knocking on doors once again, this time asking landowners already signed to modify their leases.

Wenger told landowners what energy companies like Chesapeake are asking for, and what landowners need to consider before signing:

 

Be careful when landmen knock on your door, promising more royalties from even more gas wells if you amend your mineral lease, attorney Alan Wenger told some 500 members of the Associated Landowners of the Valley gathered Monday evening at the Covelli Centre.

 

“The largest protagonist for amendments is Chesapeake,” he said. “They have such huge holdings in our area, it’s very difficult for them to drill enough wells to hold all the parcels during the primary terms of their leases.”

 

read full article: http://www.ohio.com/blogs/drilling/ohio-utica-shale-1.291290/ohio-landowners-group-get-warning-on-changing-leases-1.349857 

news release from Wayne National Forest announcing findings of a recent study

NEWS RELEASE

● Wayne National Forest ● 13700 US HWY 33

Nelsonville, Ohio 45764-9880 ● Voice (740) 753-0101●Twitter: @waynenationalfs

For Immediate Release

Contact: Gary C. Chancey, Public Affairs Staff Officer, (740) 753-0862

 

Wayne National Forest Announces Findings from Recent Study

 

NELSONVILLE, OH – Wayne National Forest Supervisor Anne Carey today (8/27/12) signed a Finding for the Supplemental Information Report that concludes that at this time, there is no need to correct or amend the 2006 Land and Resource Management Plan (Forest Plan) in order to address the surface impacts of horizontal drilling for oil or natural gas development on the Forest, nor is there a need to supplement the Environmental Impact Statement (EIS) that was prepared for the Forest Plan.

 

“I have reviewed the new information contained in the Supplemental Information Report, and determined that further environmental analysis is not needed,” said Carey.  “I believe that the existing Forest Plan direction is adequate to address the surface effects anticipated from the potential development of horizontal wells as projected by the Bureau of Land Management (BLM).”

The BLM has found that it is now economically feasible for deep well horizontal drilling using high volume hydraulic fracturing, a change from the previous projection, which said it wasn’t economically feasible. The report also explains that through 2016 that there is the potential for 13 high volume horizontal drilling well sites to be developed on the Wayne National Forest. 

Oil and natural gas development is an important component of the nation’s energy portfolio, and has the potential to advance our nation’s energy security, improve air quality, and create jobs. The responsibility of the U.S. Forest Service is to safely and responsively develop these resources in a way that ensures the well-being of surrounding communities and protects our landscapes and watersheds.

The Supplemental Information Report is available on the Forest web site at: http://www.fs.usda.gov/detail/wayne/landmanagement/planning?cid=stelprdb5387922

Learn more about Wayne National Forest oil and gas management on the Forest web site at: http://fs.usda.gov/detail/wayne/home/?cid=stelprdb5376502

Follow the Wayne National Forest on Twitter: @waynenationalfs

The mission of the USDA Forest Service is to sustain the health, diversity, and productivity of the nation’s forests and grasslands to meet the needs of present and future generations. Recreational activities on our lands contribute $14.5 billion annually to the U.S. economy. The agency manages 193 million acres of public land, provides assistance to state and private landowners, and maintains the largest forestry research organization in the world.

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New! Hydraulic Fracturing Brochure for Well Water Owners

A water-testing brochure for household water well owners living near oil and gas development and completion activities, including hydraulic fracturing, has been produced by the National Ground Water Association and the Ground Water Protection Council.

Red more or download the brochure: http://www.ngwa.org/Media-Center/news/Pages/Hydraulic-fracturing-brochure-for-water-well-owners.aspx 

CENTRAL APPALACHIA REGIONAL NETWORK RELEASES SEVERANCE TAX POLICY SCAN – SUGGESTS PERMANENT FUND

July 16, 2012 –Huntington, WV – In an effort to provide a foundation to identify severance tax best practices, and create a long-term financial legacy for Central Appalachian communities, the Central Appalachia Regional Network (CARN) has completed the Central Appalachia Severance Tax Policy Scan. The scan outlines the severance tax policies in the six states CARN serves – Kentucky, Maryland, Ohio, Tennessee, Virginia and           WestVirginia – and is the first of its kind to assess and compare these policies in each state.

The scan compiles data about each state’s policy, including which agencies oversee disbursement of revenues, which minerals are taxed, the rate at which they are taxed and the total annual revenue each state receives from the taxes.

A permanent trust fund should be created in each of CARN’s six states with severance tax dollars. Alaska, Montana, Wyoming, New Mexico, North Dakota and Utah have established permanent funds, some as long ago as the early 1970s. As the West Virginia Center for Budget and Policy pointed out, those states are now reaping the benefits of millions, and sometimes billions, for state programs. A permanent fund in Central Appalachia would allow a percentage of collected severance taxes to be saved. The interest on these savings could be used to fund public projects long after the mineral resources of those states have been depleted.

CARN advocates that a minimum of 1 percent of severance taxes collected be placed in these permanent funds for use by and for the communities from which the resources were extracted. If Kentucky, Maryland, Ohio, Tennessee, Virginia and West Virginia had implemented a permanent fund in 1990, it would have generated about $1.4 billion in earnings to date.

The permanent fund could contribute to sustaining Central Appalachian communities for future generations by establishing a lasting economic legacy.

To download the Central Appalachia Severance Tax Policy Scan and CARN’s policy recommendations, visit http://www.CARNnet.org.

Direct Links:

http://carnnet.org/docs/CARN_SeveranceTaxReport.pdf

http://carnnet.org/docs/CARN_SeveranceTaxPolicyRecommendations.pdf

1 dead in Bolivar well explosion – Tuscarawas County

BOLIVAR One person has died after a explosion at an oil- and gas-well site at about 9:34 a.m. today.

Capt. Marty Huth of the Bolivar Fire Department, incident commander at the scene, said it is too early to tell what caused the explosion.

The explosion occurred about two miles south of Bolivar in the vicinity of Bolivar Group Home, 10071 State Route 212. That is also near Kingwood Drive NE and Huffman Square NE in Wilkshire Hills subdivision.

Firefighters responding to the blaze told The Times-Reporter that there was one fatality from the explosion, which caused flames to shoot at least 50 feet into the air.

Dr. James Hubert, Tuscarawas County Coroner, said the death appears accidental but his investigation is continuing. Cathy Clarke, coroner’s investigator, also was on scene.

Hubert said the identity of the victim won’t be released until after family members are notified.

 

Read more: http://www.cantonrep.com/newsnow/x1062475088/1-dead-in-Bolivar-well-explosion

Chesapeake Energy Selling Some Utica Shale land in Ohio


WEDNESDAY, 06 JUNE 2012  WRITTEN BY ERICH SCHWARTZEL

The natural gas and oil in Ohio’s Utica Shale is going to help Chesapeake Energy’s debt-ridden balance sheet — whether Chesapeake is the firm that extracts the fuels or not.

Through a listing on the website of Meagher Energy Advisors, Chesapeake has put more than 337,000 acres across 19 eastern Ohio counties up for sale — about one-fourth of the company’s total Utica holdings.

More than 80 percent of the land for sale is held-by-production, meaning landowners are locked into current contracts and cannot renegotiate for more money with a new company. Chesapeake said the areas where it is looking to sell are places where its land ownership is less concentrated and company leases aren’t as side-by-side as in other parts of the state.

The Oklahoma City driller is the biggest in the country to have such a substantial stake and financial obligation in Ohio’s counterpart to the Marcellus Shale region. In the past, Chesapeake has promised such lucrative returns from that area that beleaguered CEO Aubrey McClendon called it “the biggest thing economically to hit Ohio, since maybe the plow.”

Scattershot public data haven’t stopped Mr. McClendon from extolling the promise of the Utica, continuing a “trust me” line to shareholders while offering little evidence to fact-check those claims. Ohio regulators generally wait months before receiving production reports from Chesapeake, and industry analysts say the company’s sky-high estimates fall back to earth as more information is revealed.

Read More: http://shale.sites.post-gazette.com/index.php/news/archives/24593-chesapeake-energy-selling-utica-shale-land 

Fracking regulations await Ohio governor’s signature

COLUMBUS, Ohio – Rules regulating oil and gas well construction, water handling, and chemical disclosure in the fracking process are on their way to the governor’s desk for John Kasich’s signature.

The Ohio House passed the energy bill early Thursday evening in a vote of 73 to 19.

Representative Sean O’Brien from Brookfield says, “I support this bill because it’s a start in the right way.”

O’Brien’s Democratic colleagues, Ron Gerberry and Tom Letson, voted in favor of the legislation. Bob Hagan voted against. His attempt to add an amendment that would guarantee Ohioans would get 60% of the jobs was tabled.

“Drive down to Carroll County. Drive down to any of the roadways where they’re into that drilling. Drive into the hotels and motels and look at the license plates. I did. Oklahoma, Texas, not to many Ohioans,” Hagan said.

In a concurrence vote, the state Senate approved the House’s amendments to the bill in a vote of 21 to 8.

Senators Capri Cafaro and Joe Schiavoni voted against the legislation. Schiavoni also had an amendment that was tabled.

“There was nothing in the bill about the public’s ability to give feedback in the permit process. So I tried to amend the bill to have a 30 day comment period just so that the public knows where these wells are going to go and when they’re going to go in,” Schiavoni said.

Schiavoni also said the bill was stripped of its original language pertaining to injection wells. That a portion of their revenue would go toward geological research on seismic activity.

While the bill makes strides toward companies having to disclose what chemicals are in fracking fluid, environmentalists say it limits who can sue energy companies for chemical trade secrets.

Source: http://www.wfmj.com/story/18620965/fracking-regulations-await-ohio-governors-signature