Wednesday, April 23, 2014

36 New Shale Drilling Permits Issued in June

The booming industry of Ohio shale development does not seem to be showing any signs of slowing down based on the most recent record of issued permits by the Ohio Department of Natural Resources (ODNR).

In June, the department issued 36 permits to drill horizontal wells in the Utica and Point Pleasant Shale formations. Compare that to 20 horizontal drilling permits issued by the department in May.

Carroll County was the most sought-after area in June with 11 permits, followed by 7 permits issued to drill in Columbiana County and 5 permits in Harrison County. The rest of the counties where new drilling permits were issued include the following:

- Noble County, 4 permits
- Guernsey County, 3 permits
- Jefferson County, 2 permits
- Mahoning County, 2 permits
- Belmont County, 1 permit
- Wayne County, 1 permit

Horizontal drilling is a process used in order to extract natural gas from shale formations, also known as "plays." Once a horizontal well is in place, companies use hydraulic fracturing, commonly referred to as fracking, in order to crack the shale and release the gas.

Environmental groups have raised concerns over the process, which includes the disposal of the fracking fluid after its use in the well. Some state leaders, including Gov. John Kasich, have argued that the process is safe as long as the proper regulations are in place.

Last month, Kasich signed SB315 (Jones) into law. The bill included new rules for well construction and chemical disclosure for fracking fluid. (See The Hannah Report, 6/11/12.)

Those in support of horizontal drilling and fracking in Ohio have claimed that many companies would come to the state to develop shale gas, creating thousands of jobs along the way.

Ever since companies have started to display an interest in shale gas development in Ohio, Chesapeake Energy Corporation has taken the lead in leasing mineral rights around the state. In the latest numbers from ODNR, Chesapeake, which is based in Oklahoma, received 22 of the 36 permits.

Of the nine other companies that received horizontal drilling permits from ODNR, all have corporate headquarters outside Ohio. That includes companies based in Texas, Colorado, Pennsylvania and New York.

There was also one permit issued to Protege Energy II LLC in order to drill in the Marcellus Shale formation in Monroe County. Protege is based in Tulsa, OK.

To view an updated list of all the horizontal drilling permits and shale activity, visit http://ohiodnr.com/oil/shale/tabid/23174/Default.aspx.
Story originally published in The Hannah Report on July 26, 2012.  Copyright 2012 Hannah News Service, Inc.


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