Effective Sept. 16, 2004, a law went into effect that gives the Division of Mineral Resources Management sole authority in Ohio to regulate the permitting, locating, drilling, and operating of oil and gas wells and production facilities. The law was adopted with the understanding that the regulation of oil and gas activities is a matter of general statewide interest that requires uniform statewide regulation. Previously, different standards were in effect throughout the state.

The law created a designation of urban areas and defined them as all municipalities and unincorporated civil townships with a population greater than 5,000. Urban areas are subject to greater rules and conditions than nonurban areas.

Allowing drilling in urban areas has affected both drilling and production. Since the law went into effect, about 23% of all wells drilled have been in areas defined as urban. In 2008, 318 of the 1,428 drilling permits issued were in urban areas (Table 1 ) . The rise in proportion of drilling in urban areas has contributed to a turnaround in an otherwise downward trend in production in Ohio.

OHIO PERMITS AND DRILLING Fig. 1

Permitting and drilling

The number of permits issued in 2008 was 8% more than in 2007.

The majority of these permits targeted the Clinton sandstone (72%), followed by the Devonian shale (12%) and then permits below the CambroOrdovician Knox unconformity (11%).

Sixteen permits were issued to the Marcellus shale formation. Permits were issued in an average of 1 3 days of being filed.

For the second consecutive year and only the third time since 1991, more than 1,000 wells were drilled. An estimated 1,049 oil and gas wells were drilled in 2008, a decrease of 16 wells or 1.5% from 2007. This is the hrst decrease since 200 2 (Fig. 1). Wells were drilled in 44 of Ohio's 88 comities, six fewer counties than in 2007.

Well complitions

At the time this writing in late February, Ohio oil and gas owners had submitted 811 well completion reports, representing 77% of wells drilled in 2008.

OHIO EXPLORATORY WELL RATIO Fig. 2

OHIO DRILLING PERMITS Table 1

These reports showed that 756 wells were productive and 5 5 were dry holes, for a 93.2% completion rate. Total depths ranged from 420 ft in the Big Injun sandstone in Perry County to 8,897 ft in Precambrian granite in Guernsey County.

An estimated 4,057,429 ft of hole were drilled, a decrease of 104,273 ft from 2007. Well depth averaged 3,868 ft, a decrease of 40 ft/ well.

Targeted formations

Completion zones ranged from a Pennsylvanian coal (for coalbed methane) to Precambrian basement.

The Clinton sandstone was the most actively drilled zone accounting for 6 1 % of all wells drilled. An estimated 638 wells were drilled, 3 0 fewer than in 2007. Clinton sandstone wells averaged 4,089 ft in depth and were drilled in 25 counties. The most active counties were Cuyahoga 67 wells, Geauga 66, and Licking 53.

An estimated 151 wells were drilled to the Ohio shale, a decrease of 6 wells. Sixteen of these wells were horizontally drilled. It is too early to know whether this technology has been effective. Ohio shale drilling occurred in 11 counties. Monroe led with 74 wells followed by Noble with 28.

10 MOST ACTIVE OHIO COUNTIES, 2008 Table 2

Drilling to the Knox formations totaled 102 wells, 2 fewer than in 2007. Of those, 3 3 were dry holes, resulting in a productive rate of 68%. The majority of these wells, 45, were drilled to the Beekmantown dolomite.

Most active counties

Monroe County was ranked first for the fifth consecutive year with 75 wells drilled, and the majority of these wells were drilled to the Ohio shale.

Urbanized drilling accounted for almost every well in the next most active counties, Cuyahoga (69) and Geauga (67) (Table 2).

Directional drilling

This technology is generally being used to access oil and gas in the following ways: under environmentally sensitive areas or densely populated areas and horizontally in the Devonian shale.

In 2008, 71 directional drilling permits were issued to drill directional wells in 1 3 counties.