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December 2019

A Free Monthly Publication

U.S. SHALE PRODUCTION IS CRUCIAL FOR ENERGY SECURITY OHIO OIL AND GAS LEASING COMMISSION TO RECOMMEND CHANGES TO LAW COVERING FRACKING ON PUBLIC LAND

IN THIS ISSUE: WE CAN’T DO IT ALONE - GUEST EDITORIAL


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Table of Contents DECEMBER 2019 G ROUP PUBLISHER

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A Look Ahead Gas & Oil Events

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Decline Of Saudi Oil Imports Shows U.S. Shale Production Is Crucial For Energy Security

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Ohio Oil and Gas Leasing Commission to Recommend Changes to Law Covering Fracking on Public Land

Bill Albrecht

EXECUTIVE EDITOR Beth Bailey bbailey@daily-jeff.com

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President Trump to Shale Insight Attendees: Nothing is Possible “Without Energy”

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President Trump to Shale Insight Attendees: Nothing is Possible “Without Energy”

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OOGA Member Spotlight: Will Ratcliffe

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New Rules - Brine Disposal Fee and Production Well Spacing

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The U.S. Placed Near-Record Volumes of Natural Gas in Storage this Injection Season

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Ohio Well Activity

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Horizontal Drilling Activity Graph

On The Cover:

“Ohio Gas & Oil” is a monthly publication. Copyright 2019.

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Shale Insight allowed attendees to not only reflect on how far the U.S. oil and natural gas industry has come in recent decades, but to get a glimpse of where it’s headed. From President Trump’s address and the technology showcase, to exhibitor displays and various presentations, including Tinker’s, it’s clear that the industry is ahead of the curve in developing the solutions that could change the world – and in many ways, already are.

DECEMBER 2019 ADVER TISING Paul Reynolds Cambridge, Ohio Office preynolds@gatehousemedia.com 740-439-3531 Aaron Bass Wooster & Holmes, and Ashland, Ohio Offices abass@gatehousemedia.com 330-264-1125 419-281-0581 Mindy Cannon Alliance & Minerva, Ohio Offices mcannon@the-review.com 330-821-1200 Jim Williams Kent, Ohio Office jim.williams@recordpub.com 330-298-2012

L AYOUT DESIG NER Phil Luks

pluks@recordpub.com

A Division of Gannett 212 E. Liberty St. Wooster, OH 44691 330-264-1125 spectrum@the-daily-record.com. DECEMBER 2019


A Look Ahead

Gas & Oil Events DECEMBER 3 – 5, 2019

Marcellus and Utica regions: Market growth and demand MARCELLUS-UTICA MIDSTREAM Pipeline build-out CONFERENCE AND EXHIBITION International trade influences David L. Lawrence Convention CenRegulatory challenges ter, Pittsburgh, PA 2020 Outlook The prolific Marcellus and its deeper sister-shale, the Utica, are collectively called ‘The Beast in the East’ because they’re loaded with natural OHIO GEOLOGICAL SOCIETY gas. This remarkable bounty is driv- LUNCH SYMPOSIUM ing a renaissance in manufacturing NATURAL GAS LIQUIDS throughout the Northeast, ushering STORAGE IN OHIO’S a new era of cleaner power genera- UNDERGROUND SALT DEPOSITS tion – and opening doors for U.S. Hilton Doubletree, gas traders around the world. 175 Hutchinson Ave, This year’s conference agenda fo- Columbus Ohio 43235 cuses on these leading trends  af- Lunch at 11:30, talk at 12:30 pm fecting midstream companies in the

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MARCH 4-6, 2020

OHIO OIL AND GAS ASSOCIATION’S 2020 ANNUAL MEETING

Hilton Columbus at Easton 3900 Chagrin Dr Columbus, Ohio  43219 Save the Date! More info regarding the event coming soon. LODGING A block of rooms has been reserved at the Hilton Columbus at Easton for March 3, 2020 - March 6, 2020. Event attendees calling for reservations should indicate that they are attending the 2020 OOGA Annual Meeting or mention code “OOG” to receive the reduced rate.

OhioGas&Oil

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DECLINE OF SAUDI OIL IMPORTS

Shows U.S. Shale Production Is Crucial For Energy Security WILLIAM ALLISON | EnergyInDepth

2000s. The United States has turned into a global energy superpower that has left behind a past of relying on Saudi Arabia and other nations for imports. Benefits of Made-in-America Energy The decline shows how the United States can increasingly rely on its own energy supplies to meet demand both at home and abroad. This presents a golden opportunity. Importing oil from foreign countries exposes the United States and allies to supply chain disruptions that might

Oil imports from Saudi Arabia into the United States have hit their lowest levels in decades, providing further evidence of the importance of the shale revolution to American’s energy security. For the week ending Nov. 1, data from the Energy Information Administration show that the United States imported just 177,000 barrels of oil per day from Saudi Arabia. That is the lowest weekly total of the entire decade, according to the data available back to 2010. The drop has happened quickly and coincided with huge gains in U.S. production and exports driven by shale development. As recently as 2014, the United States was importing more than 2 million barrels per day from Saudi Arabia – more than 11 times today’s level. A further look back shows a long-term downward trend in Saudi imports. In August 2019, the United States averaged 461,000 barrels of oil imported per day. The last time imports were that low for a month was March 1987 when it was only 430,000 barrels per day. In the years since the late 1980s, the United States often imported large amounts of oil from Saudi Arabia including more than 2 million barrels per day in May of both 1991 and 2003. But those imports have fallen sharply since the American shale revolution took off in the mid-

come from trade conflicts, extreme weather events, political whims and wars. Thanks to the shale revolution, oil and natural gas production continues to hit new highs and provide the United States with increased energy security. According to EIA, oil production hit a record of 12.3 million barrels per day in August. Natural gas production also hit a new high at 111 million cubic feet per day. Shale has allowed America to eclipse both Russia and Saudi Arabia as the world’s top oil producer. This growing production has not only strengthened America’s national security but boosted the economy through exports of these energy resources around the world. The United States is becoming Shale continued on page 5

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Shale continued from page 4

the world’s leader in oil exports and LNG exports and that’s good news for American diplomacy. There are also massive environmental benefits to the growing American energy sector because U.S. producers have higher standards than other nations and are utilizing constantly improving technology. A recent International Energy Agency report found that natural gas replacing traditional fuel sources for electricity generation could prevent 1.2 billion tons of carbon emissions. The United States is also leading the globe in reducing emissions thanks to natural gas, representing 50 percent more U.S. emissions reductions than wind or solar combined since 2005. Conclusion It’s clear that oil imports from Saudi Arabia have been declining for years and it should keep trending downward if pro-energy policies are kept in place. That’s good news for the U.S. economy, energy security, and American foreign policy and a testament to American operators who have powered the shale revolution.

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Ohio Oil and Gas Leasing Commission

to Recommend Changes to Law Covering Fracking on Public Land BETH BURGER | The Columbus Dispatch, Gannett Ohio Oil and Gas Leasing Commission members plan to recommend changes to state law governing fracking on public land and the size and operations of the commission. The commission meeting held Wednesday morning at the Ohio Department of Natural Resources offices was the group’s first since Gov. Mike DeWine took office. Changes, proposed by ODNR staff, were presented to the five-member commission, which is chaired by Mike Angle, chief of Ohio Department of Natural Resources’ Division of Geological Survey, and includes two members representing oil and gas interests, attorneys Matt W. Warnock and Michael W. Wise; one member representing the environment, Richard Shank, former director of the Ohio Environmental Protection Agency and now board president of the Ohio Environmental Council; and a public representative, Steve Buehrer, former state Bureau of Workers’ Compensation CEO. Buehrer was absent Wednesday. “I think we see these ideas ... as the initiation of a much larger conversation,” said Brittney Colvin, a deputy director at ODNR who oversees three divisions, including Oil and Gas Resources Management. “That conversation that takes place between us and the com-

Other states have different policies on allowing drilling for oil and natural gas on public land. mission, but also I believe with a lot of other stakeholders, whether that be the members of the General Assembly, or certainly important stakeholders that have various vested interest in development.” Some of the proposed changes include: •Adding members to the commission, which could include other representations such as universities or recreational interests. •Ensuring there are no conflicts of interest involving commission members when it comes to mineral rights. •Clarifying language to allow state agencies to make

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lease stipulations. •Revising state law to allow agencies to use revenues where they see fit. •Requiring nominating groups for leasing land for fracking to conduct necessary title work rather than ODNR. Other states have different policies on allowing drilling for oil and natural gas on public land. In Pennsylvania, the governor issued a moratorium on leasing state-owned land in 2015 pending scientific review of its effects. That moratorium remains in place. There are already more than 153,000 acres leased conventional and 102,000 acres leased for horizontal drilling, according to Colvin’s presentation to commission members. In Michigan, the state owns 6.2 million acres of mineral rights with production on more than 400,000 acres. In Ohio, there are 2,142 wells on or beneath public property. Of those wells, 64% are active. In fiscal year 2018, ODNR collected $139,528 in royalties from fracking on state-owned land. Among the active wells on ODNR-owned land, 503 are in wildlife areas, 31 are in state parks, 20 are in preserves and 10 are in state forests, according to documents obtained by The Dispatch. After the state of Ohio announced plans a couple weeks ago to buy more than 30,000 acres of American Electric Power property for state conservation and recreation use, DeWine was asked by The Dispatch how allowing fracking on that state parkland is consistent with conservation. Under the proposed sale plan, the utility plans to retain oil and gas rights to the land. “I think it is consistent with ODNR’s mission because ODNR has done this in the past. It certainly is not the first time that this had been done,” DeWine said. The Ohio General Assembly approved fracking in state parks in 2011. However, former Gov. John Kasich effectively put a halt to any new drilling in the state’s parks because he refused to appoint anyone to the Oil and Gas Leasing Commission. Legislators eventually forced Kasich to make appointments. As of Wednesday, a future meeting date for the commission was not set. Dispatch reporter Randy Ludlow contributed to this report.

DECEMBER 2019


We Can’t

Do It Alone Guest Editorial

GREG KOZERA | Shale Crescent USA When I write one of these articles, I try to look at you, the reader, and decide what I could say or share that would make your life a little better. Last week’s article was a little different. I wrote that article for you but also for me. I needed to listen to some of my own words. I was right in the middle of my own adversity and needed to take my own advice. Two weeks ago, I was on the soccer field in our adult league. I ran up on a slow- moving ball, planted my left foot, kicked it with my right foot. Immediately my left knee failed and I was on my back. The injury was more complex than first thought. It took several days for doctors to put all of the pieces together. I was diagnosed with two torn tendons in my quads and had surgery this week. I started Rehab and Physical Therapy today. The healing process will take months. Last Monday night I was in a very bad place. I could not walk and my blood tests didn’t look good. I was in pain and we didn’t have a diagnosis. I was depressed. The phone rang. It was coach and all the boys from the High School Soccer Team I am assistant coach for. They offered prayers and encouragement. It lifted my spirits. This was the night before the Regional Championship Game. I gave them a motivational minute. That call was exactly what I needed at that time. I may have given the boys encouragement. They gave me their love and encouragement. Coach came to my room the next night with the Regional Trophy. The kidney doctor popped in last week. He told me my kidneys were fine and I wouldn’t be seeing him again. I was surprised when he showed up the next night. He said, “Don’t worry your kidneys are fine. Your case bothered me and I did some research. He changed my IV fluids and ordered a CT scan. This ultimately lead to the diagnosis of a sports injury and surgery followed by rehab. I still have a lot of work to do. Already I have learned a lot. Here are a few things; • We take a lot for granted. We don’t think about getting out of bed, walking to the bathroom, getting dressed or driving a car until we can’t do it. • We can’t do it alone. We always need help. This incident was a big reminder for me. • We should always reach out to our sick friends and family members. If you are bothering them they will tell you. What if coach had thought, “We don’t want

DECEMBER 2019

to bother him.” I needed that call. When my wife was in the hospital I watched her spirits rise with every call and text she received. • You don’t know who your true friends are until something bad happens. We have had prayers, visitors, drivers, meals and encouragement from family, friends, church family, our Shale Crescent Team and business associates from all over. Our children came home to help. • The doctors, nurses and staff at the two hospitals I was at were friendly, patient, hard- working, competent and willing to do those to little extras (like a warm wash cloth for my face at night.) Sometimes they were big extras like the doctor who did research to determine what really happened and changed the treatment plan to fix it. • We need to do our part by being friendly, positive and communicate with our care givers. •On the way to the operating room I couldn’t help but notice all of plastic products that would not exist without fracking (hydraulic fracturing). This includes medical equipment, IVs, syringes, gloves, and replacement joints to name just a few things. Infection control is the single biggest problem hospitals have. When I was getting an IV put in, I noticed the IV was plastic. More important, the IV was sanitized and sealed a plastic protective wrap to keep it germ free. • Hospitals are not a good place to get rest and relaxation. Without modern medicine and modern medical equipment from plastics and petrochemicals, me and most of the other patients I was with this week would be dead. That is pretty basic. We need each other in so many ways. This week really sent that message to me. Right now, I can’t walk or go the bathroom without help. We also need others for emotional support This might be a good time to count our blessings. Thoughts to ponder. © 2019 Shale Crescent USA Greg Kozera, gkozera@shalecrescentusa.com is the Director of Marketing and Sales for Shale Crescent USA. He is a professional engineer with a Masters in Environmental Engineering who has over 40 years’ experience in the energy industry. Greg is a leadership expert and the author of four books and numerous published articles.

OhioGas&Oil

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PRESIDENT TRUMP TO SHALE INSIGHT ATTENDEES:

NOTHING IS POSSIBLE “WITHOUT ENERGY” NICOLE JACOBS | EnergyInDepth From technological advancements that have helped unlock America’s energy potential to innovative solutions improving the environment, the U.S. oil and natural gas industry’s “energy renaissance” has changed the global energy landscape in the past decade. These themes were echoed throughout the ninth annual Shale Insight conference hosted by the Marcellus Shale Coalition, Ohio Oil and Gas Association and West Virginia Oil and Natural Gas Association in Pittsburgh this week, including in a presidential address given by President Donald Trump. Abundant Natural Gas Brings Significant Benefits Taking place in the heart of the Marcellus and Utica Shales, the conference was predominantly centered around development in the Appalachian Basin’s tristate region of Pennsylvania, Ohio and West Virginia. The basin is driving U.S. natural gas production, and if it were a country, would rank third in the world for output thanks to the more than 33 billion cubic feet of natural gas produced there daily. As the president told the attendees “who get up every day and make this country run”:

“All of you here today have achieved something that everyone said was impossible: You’ve helped make America the number one producer of oil and natural gas on Planet Earth, by far.” This record-breaking production is generating tremendous benefits for the region and the country that were outlined in recent commentary by the executive directors of the MSC, OOGA and WVONGA: “Pennsylvanians are realizing more than $2,000 in annual home energy savings; Ohio’s  air quality progress  is accelerating faster than the national average; and West Virginia experienced the country’s highest economic growth rate earlier this year.” In fact, U.S. natural gas consumers have saved $1.1 trillion since 2008 – an average of about $4,000 per U.S. household – thanks to this increased production, according to a recent economic analysis by the Ohio Oil and Gas Energy Education Program and Shale Crescent USA. And President Trump cited a Council of Economic Advisors report that found “the astonishing increase in production made possible by shale and the shale revolution saves Americans $203 billion every year, or $2,500 for a family of four in lower electric bills, lower prices, and at the gas pump,” according to the President. But it’s not just economic benefits, as the associations further explained: “As an industry that puts health, safety and environmental conservation ahead of all else, our members are producing energy in cleaner and more efficient ways than a decade ago. …Clean and abundant natural gas has enabled the U.S. to be a climate leader without sacrificing the energy reliability and affordability as well as the quality of life that we all enjoy and have come to expect.” Natural gas has helped the United States achieve carbon emissions reductions greater than any other country – a fact the president echoed in his address: “Our air right now and our water right now is as clean as it’s been in decades.” From 1970, when the Clean Air Act was passed, until 2018, combined emissions of six common air pollutants (carbon monoxide, nitrogen oxide, sulfur dioxide, fine particulate matter (2.5 and 10), volatile organic compounds, and lead) have fallen 74 percent, according to the U.S. Environmental Protection Agency’s Our NaInsight continued on page 9

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Insight continued from page 8

tion’s Airreport. Accessible Energy Could Change the World As the president was describing various policies his administration has enacted, he remarked, “But without energy, it all doesn’t happen.” The concept that nothing is possible “without energy” was also the theme of the conference’s somewhat somber closing key note address by Dr. Scott Tinker, the director of the Bureau of Economic Geology at the University of Texas at Austin and chairman of the Switch Energy Alliance. Tinker’s presentation took a hard look at the global distribution of energy and wealth, and the staggering number of people (1 billion to 2 billion) who live in places with no or limited access to electricity. As he explained, energy is the key to bringing these populations out of poverty and cleaning up the environment in the process: The key takeaway from Tinker’s eye-opening presentation wasn’t that the world needs to swiftly move to one energy source or another. It was that in different places the most logical form of energy production will look different, but in order to truly improve the global environment including reducing emissions, we must start by reducing the population that has no access to energy.

Natural gas absolutely has an important role to play in this – as do more traditional fuels and renewables. Conclusion Shale Insight allowed attendees to not only reflect on how far the U.S. oil and natural gas industry has come in recent decades, but to get a glimpse of where it’s headed. From President Trump’s address and the technology showcase, to exhibitor displays and various presentations, including Tinker’s, it’s clear that the industry is ahead of the curve in developing the solutions that could change the world – and in many ways, already are. As President Trump said: “But I’m here with the incredible people who fuel our factories, light up our homes, power our industries, and fill our hearts with true American pride. …With American energy once again powering our prosperity, the United States has the hottest economy recognized by everybody, anywhere on Earth.” And we’ve only scratched the surface of this potential.

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OOGA Member Spotlight:

WILL RATCLIFFE The member spotlight series features OOGA members making an impact with their membership. BRAD MILLER | Membership Director, Ohio Oil & Gas Association The afternoon that Will Ratcliffe sis in geology. His first job out of sat down with OOGA for this spotcollege, in the Charleston branch at light, he was waiting to find out Thrasher Engineering, was focused whether his next action would be on environmental consulting. This traveling back home to see his family included natural resource permitor boarding a flight to Houston later ting, wetland delineations and natuthat evening ral stream designs for several clients, “That happens from time to time, many of whom were energy compahaving to travel on short notice. My nies. wife loves it,” he said with a smirk. A couple years later, he had the opMore concrete on his upcoming portunity to move to Newport News, calendar were work trips to Seattle, VA, working in the shipyard busiWA and Medora, ND. ness with a focus on hiring shipyard Such is the reality when you are employees and doing environment, the Manager of Regulatory Affairs health and safety trainings. That job WILL RATCLIFFE, WILLIAMS for Williams, a natural gas transmistook him all along the East Coast, insion, gathering and processing comcluding quite a bit of time in Florida. pany made up of more than 5,000 Then following a one-year stint as employees with assets in 24 states and about an environmental consultant in Raleigh, NC, it was 30,000 miles of pipelines. back to his home state of West Virginia, working Ratcliffe’s professional career has taken him all at Terradon Corporation. For one of his projects, over the country, beginning in South Charleston, he obtained all the necessary permits for a comWV, where he was born and raised. Today, his mail- pressor station for client Chesapeake Energy. box is in Pittsburgh, PA, but that doesn’t mean his “Apparently I did a reasonably good enough job fondness for the Mountain State has diminished. for them because, when the manager I was work“I still think of West Virginia as my true home,” ing for moved to upstate New York to figure out he said. “As many other West Virginians I’m very what this whole Marcellus thing was supposed to partial to my home state, as I presume many folks look like on the pipeline side, he gave me a call in Ohio are as well.” and wanted to know if I could come help him naviAlthough his family background doesn’t include gate the permitting process for Chesapeake..” anyone directly connected to oil and gas, going He accepted that opportunity on April 9, 2009, back a couple generations there were several coal and he’s “been on a bit of an acquisition/divesminers. and rowing up in Appalachia, he was cer- titure roller coaster since then.” Chesapeake Entainly exposed to the energy industry. ergy broke off its midstream assets into a wholly “When I was a little kid, white trucks on the road owned subsidiary, Chesapeake Midstream, which were prevalent,” he said. “You’d see coal company later sold its assets to a private equity firm to trucks and natural gas company trucks. Frankly, I create Access Midstream, and in 2015 Williams never really thought of going into the energy in- bought Access Midstream. dustry until I got to college.” At Williams, Ratcliffe focuses primarily on the At West Virginia University, Ratcliffe earned a eastern states (he has a counterpart dedicated to degree in environmental science with an emphaMember Spotlight continued on page 11

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Member Spotlight continued from page 10

the western states). “I pretty much get engaged where my company needs help in any state this side of the Mississippi,” said Will. As Manager of Regulatory Affairs, he engages on a wide array of policy and regulatory issues that may arise in respective state capitols. That requires closely tracking public policy, working with various trade associations like OOGA and reviewing and communicating with his internal team to ensure the company has the right processes in place to follow new laws and regulations. “With a company this large and a huge asset base, there are a lot of different relationships you have to maintain in as many states that we’re in,” he said. “There’s just so many moving pieces in each respective state that you need groups that are dedicated to developing relationships in each sector, like local communities, non-governmental organizations, regulators, etc.” Besides serving on the Executive Committee and as chair of the Midstream Committee for OOGA, he is also the Vice Chair of the Advocacy Committee for the Marcellus Shale Coalition (MSC), serves on several committees for WVONGA, as well as the Health and Environmental Committee for the Interstate Oil and Gas Compact Commission and is currently working on a report for the National Petroleum Council that focuses on infrastructure development. While he believes the industry is approaching a time when we’re having to buckle up a little bit tighter, he is optimistic about the future. “I feel strong undertones of resiliency. With every hard time and burden, other opportunities are created that I think the industry will be able to take advantage of.” And he believes organizations like OOGA will continue to help. The many benefits of being an Association member, he says, probably don’t get the credit they deserve all the time. “OOGA has been a really consistent voice within this state for oil and gas operators through all of the peaks and valleys,” he said. “It’s not always good times and it’s not always hard times. To try to hit the ball down the middle of the fairway throughout is very difficult. [OOGA] has done a fantastic job of maintaining its posture and significance throughout all of the different scenarios. I think any good organization is the manifestation of its leadership, and I definitely think the work that the OOGA team has done proves that out.” As for his own participation in OOGA, he has seen the value of becoming involved early on and remaining engaged both as a committee chair and, now, as a member of the executive commit-

tee. He encourages all members to take an active role in their Association through joining committees, participating in phone calls, attending meetings and taking advantage of networking opportunities. Moving forward, he thinks the industry needs to modernize its fundamentals in order to keep up with the rapidly changing landscape, from following new regulations to handling increased public input that is changing the way the industry operates. “Anything we do now, it seems like there are eyes on it, and I don’t think that’s a bad thing,” he said. “It helps us be accountable to ourselves and is an opportunity for effective growth. That’s another area where OOGA has been really essential in helping all of the industry in Ohio balance it out and be the light for the path forward.” Shortly after his spotlight interview, Ratcliffe learned that he would not need to fly to Houston after all. But if the past is a reliable indicator, he will have plenty more upcoming opportunities to travel the countryside.

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New Rules

Brine Disposal Fee and Production Well Spacing Division of Oil and Gas Resources Management | The Ohio Department of Natural Resources The Ohio Department of Natural Resources, Division of Oil and Gas Resources Management (Division) wants to make the public aware of new and amended rules that will take effect on October 10, 2019. If you have any questions, please call the Division at (614) 265-6920 or email dogrm.rules@ dnr.state.oh.us. Production Well Spacing These changes amend the minimum acreage requirements for vertical (conventional) wells and adopt new provisions relative to the minimum distance requirement from which new horizontal shale (unconventional) production wells may be drilled from boundaries of drilling units and other horizontal wells. The minimum acreage requirements for conventional wells are: • Wells from zero to 1,000 feet: not less than one acre (no change); • Wells greater than 1,000 feet to 2,000 feet: not less than five acres; • Wells greater than 2,000 feet to 4,000 feet; not less than 10 acres; and • Wells greater than 4,000 feet: not less than 20 acres. For horizontal wells the perpendicular distance from any take point must be not less than four hundred feet from any drilling unit or subject tract boundary and the first and last take points cannot be less than one hundred fifty feet from the drilling unit or subject tract boundary that is approximately perpendicular to the well bore. The rule also provides for a ten percent deviation from any take point of an as-drilled horizontal well to the nearest drilling unit or subject tract boundary. Additionally, there is now no minimum distance required between horizontal wells within the subject tract. However, if adverse communication between one or more horizontal wells occurs in a subject tract, the chief may require an alternative treatment plan or minimum distances between an

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existing horizontal well in that subject tract and a new horizontal well in that subject tract or between all new horizontal wells in that subject tract. If the owner of a horizontal well determines that adverse communication has occurred, the owner shall notify the Division. Brine Disposal Fee This new rule establishes the requirements and procedures for submittal of the brine disposal fee collected by Class II brine disposal well owners on behalf of the Division. The rule contains standards regarding the collection and submittal of the fee levied on brine disposal well owners under Ohio Revised Code 1509.22(H). The rule: • Establishes February 15 as the annual date that the brine disposal fee and associated form must be submitted to the chief; • Specifies that the brine disposal fee must be submitted on a form prescribed by the chief and allows the form and collected fee to be submitted electronically; • Requires the brine disposal well owner to furnish information on volume of substance in barrels delivered to the well; the fee amount collected for the volume of substance delivered; volumes of delivered substances produced within the oil and gas regulatory district; and volumes of delivered substances not produced within the oil and gas regulatory district for the previous calendar year; and • Requires that the fee collected pursuant to Ohio Revised Code 1509.22(H) be submitted at the same time the statement is submitted. Previously, owners were required to submit fees and statements quarterly; this rule moves this reporting and fee submittal to once-a-year. The next date for submittal of information and the disposal fee will be by February 15, 2020. By that time, any remaining fees/information not already submitted in 2019 must be submitted to the Division.

DECEMBER 2019


The U.S. Placed Near-Record Volumes of Natural Gas in Storage this Injection Season U.S. Energy Information Administration tivity during the natural gas injection, or refill, season (April 1–October 31). Inventories as of October 31 were 37 Bcf higher than the previous five-year end-of-October average, according to interpolated values in the U.S. Energy Information Administration’s (EIA) Weekly Natural Gas Storage Report. Although the end of the natural gas storage injection season is traditionally defined as October 31, injections often occur in November. Working natural gas stocks ended the previous heating season at 1,155 Bcf on March 31, 2019—the second-lowest level for that Source: U.S. Energy Information Administration, Natural Gas Monthly and Weekly time of year since 2004. The 2019 injection season inNatural Gas Storage Report Note: The data point for October 31, 2018, is an interpolated value based on the cluded several weeks with relatively high injections: Weekly Natural Gas Storage Report. weekly changes exceeded 100 Bcf nine times in 2019. The amount of natural gas held in storage in 2019 Certain weeks in April, June, and September were the went from a relatively low value of 1,155 billion cubic highest weekly net injections in those months since at feet (Bcf) at the beginning of April to 3,724 Bcf at the least 2010. end of October because of near-record injection acNear-Record continued on page 14

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GAS AND OIL TEAM MEMBERS: EMILY ANGLEWICZ, SARA FANNING, BEN FRAIFOGL, JEREMY MARTIN AND BRET MCNAB • 222 SOUTH MAIN STREET I AKRON, OH 44308 I 330.376.2700 • 121 NORTH MARKET STREET, 6TH FLOOR I WOOSTER, OH 44691 I 330.376.2700 WO-10710156

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OhioGas&Oil 13


Near-Record continued from page 13

Source: U.S. Energy Information Administration, Weekly Natural Gas Storage Report

From April 1 through October 31, 2019, more than 2,569 Bcf of natural gas was placed into storage in the Lower 48 states. This volume was the second-highest net inject-

ed volume for the injection season, falling short of the record 2,727 Bcf injected during the 2014 injection season. In 2014, a particularly cold winter left natural gas inven-

tories in the Lower 48 states at 837 Bcf—the lowest level for that time of year since 2003. Principal contributor: Jose Villar

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OHIO WELL ACTIVITY by the numbers

UTICA SHALE

MARCELLUS SHALE 22 11 9 32 1 75

Wells Permitted Wells Drilling Wells Drilled Not Drilled Wells Producing Inactive Other Total Horizontal Permits

Data as of 11/9/19

477 161 205 2358

3201

Wells Permitted Wells Drilling Wells Drilled Not Drilled Wells Producing Inactive Plugged Total Horizontal Permits

Source: Ohio Department of Natural Resources

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TOP COUNTIES WITH HORIZONTAL DRILLING ACTIVITY BY NUMBER OF SITES

1. Belmont County........ 669 2. Carroll County......... 529 3. Monroe County.........510 4. Harrison County....... 493 5. Guernsey County...... 279 6. Jefferson County.......261 7. Noble County.......... 236 8. Columbiana County...163 9. Mahoning County....... 30 10. Washington County... 22 11. Tuscarawas County.... 20 12. Portage County........ 15 Trumbull County........ 15 13. Stark County............ 13 14. Coshocton County....... 5 15. Morgan County.......... 3 Muskingum County...... 3 Holmes County........... 3 16. Knox County.............. 2 17. Ashland County.......... 1 Astabula County......... 1 Geauga County.......... 1 Medina County........... 1 Wayne County............ 1 I VARIOUS SSTAGES: PERMITTED DRILLING, ,D WELL SITESS IN PLETED PRODUCING, PRODUCINGPLUGGED, PLUGGED DRILLED, COMPLETED, SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF D L A 11/9/19

16 OhioGas&Oil

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DECEMBER 2019


The nation’s premier source of energy information

The U.S. Energy Information Administration collects, analyzes, and disseminates independent and impartial energy information to promote sound policymaking, efficient markets, and public understanding of energy and its interaction with the economy and the environment. www.eia.gov


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