May 2010 Business Magazine

Page 1


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BUSINESS M A G A Z I N E Manufacturer & Business Association

VOLUME XXIII, NUMBER 5

MAY 2010

‘The Man Who Shatters Conventional Wisdom’ Page 8

JOHN STOSSEL SPECIAL SECTION: The Marcellus Shale – Pennsylvania’s New Energy Economy / Page 12


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CONSULT CONSULT WITH WITHUS USTODAY TODAY

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12

May 2010

Blue Ocean Strategy Center

EDITORIAL >

22

FEATURES > 3 / Spotlight

7 / Health Matters The ways in which financial education can help improve workplace wellness. ROSE GANTNER, Ed.D.

15 / Legal Brief

How landowners can tap into the Marcellus Shale gas boom. STEVEN C. BECKMAN & THOMAS A. PENDLETON

17 / Energy Update

Natural gas – The ultimate “alternative” fuel of the future? NANCY TAYLOR

William McNeal, owner of Keystone Sporting Arms located in Milton, Pennsylvania, discusses this innovative company and how it became one of the leading sporting arms manufacturers in the United States.

8 / John Stossel Investigative journalist John Stossel talks candidly about his recent career move, current issues and his keynote address at the Association’s 67th Annual Event on May 7 in Williamsport.

12 / Marcellus Shale

SPECIAL SECTION

>

INSERT / Training Catalog

Get the complete list of the Association’s professional development and computer training courses in our new quarterly training catalog. A S S O C I A T I O N

T R A I N I N G

S C H E D U L E

Training That Effectiv Develops e Lead ers “Everythin !"#$%&'$(%# g from the material back to ) *+#) ,%#$) '-+##.) provided /) #$!--) (") #!$&+ the material to the with all ,"0) 12#3 receive $!("#.) 673) '-+## -4) %343% my note s for direc %!"5) have a individual atten) #!83) *+#) tion but #1+--) 3"(& tion $73) ($73diverse rang 57) $() large e of %#.) 673) ;%(43##!(" !"#$%&'$(%#thoughts and enough to ) *3%3 ideas '(&-0"=$) +-)+"0)<3;$)2( +#<)4(%)+" &%)!"$ ) 3"$7&#!+#$!'9) from 2$7!"5)>3 3%3#$)+$)+ :3%2) --)$!13#9)2 $$3%.? (&) @)A+'<)6( B%3#!03"$ 1+#!<9) C!5"+-D63'9 7 SUPERVISORY SKILLS SERIES Front row, left: Debbie Ross, graduate Jack Tomasik, Lisa Trohoske, and Annie Moks of Signal­Tech. Back row, from left: Larry Schneider and Phil Glass of Signal­Tech, Mark Kulyk, immediate past chairman of the Manufacturer & Business Asso­ ciation, Keith Miller, Tim Lewis and Stacy Wingerter of Signal­Tech.

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DEPARTMENTS > 5 / Business Buzz 10 / HR Connection

Experts explain that it’s not just energy companies that stand to gain from the Marcellus Shale formation — one of the most promising contributors for domestic natural gas in the United States — but the many companies that supply parts, services and support for their operations.

25 NESS BMUA SI G A Z I N E Manufacturer & Business Associatio

n

VOLUME XXIII, NUMBER 5

MAY 2010

22 / Events

See photos of the Association’s most recent training graduates!

25 / On the Hill Stay informed! Our 2010 Voter Guide provides you with the most detailed candidate information for Pennsylvania’s gubernatorial race.

16 / The Network 20 / Legal Q&A 26 / People Buzz

‘The Man Who Shatters Conventional Wisdom’ Page 8

JOHN STOSSEL SPECIAL SECTION: The Marcellus

Economy / Page 12

22

Shale – Pennsylvania’s New Energy

Register now to receive the FREE monthly digital edition of the Business Magazine on www.mbausa.org!

May 2010 > www.mbausa.org > 1


Valuing your Business is a Wise Move.

You’ve built your business. You’ve grown it in Pennsylvania. You’ve created jobs. You’ve created value. Each year, a wise move is to evaluate your business for wealth preservation and tax planning purposes. At Schaffner, Knight, Minnaugh & Company, P.C., that’s what we do best. We do our homework on your industry. We find out what you really need to know. Our team of specialists focuses on the numerous details, as well as the big picture for your evaluation. We go beyond what MUST be done ... to what CAN be done. And, we have a passion to be 100% right for you every time. When you are ready to make a wise move, call us.

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SPOTLIGHT > by Karen Torres Keystone Sporting Arms, LLC, in Milton, Pennsylvania, is the No. 12 long gun manufacturer in the United States with two modern manufacturing facilities, a woodworking shop and an extensive machining center, located in central Pennsylvania. Owner William McNeal recently talked with the Business Magazine to explain more about this innovative company and its products. Keystone Sporting Arms (KSA) was founded in 1996 and is now one of the leading sporting arms manufacturers in the country. Please tell us how the company got its start. It all began in the winter of 1994 at an auction house in Pennsylvania, where my son Steve and I, both certified auctioneers, were approached by a gentleman with a Chipmunk .22caliber rifle in hand. We were impressed by the look and the feel of the rifle, how compact and attractive it was, and the fact that it was made especially for youth shooters. Subsequently, a phone call was made to the manufacturer to see if the rifles could be purchased. Instead, the owner asked us if we would be interested in purchasing the company, and we jumped at the opportunity. However, when the deal with the seller fell through, we decided to work with design engineers, consulting gun manufacturers, and trademark experts, to go out on our own and create the Davey Crickett single shot .22caliber youth rifle. By January 1996, Keystone opened its doors with only four employees. Much like many other startups, the business began as a family owned and operated company; and that year 4,000 Crickett rifles were produced. Since that time, KSA has experienced constant annual growth, and, in 2007, we made two major purchases. The first was our competitor, Rogue Rifle Company in Oregon, who was the original maker of the Chipmunk rifle. The second purchase was Revolution Stocks in New York. Revival also had created a line of aftermarket stocks, named “Revolution” for rifles such as the Ruger 10/22. In 2008, Keystone relocated to our now 76,000-square-foot facility in Milton that is equipped with modern, state-of-the-art equipment, and a capability to increase production to meet the growing demand for firearms. We currently produce the Crickett & Chipmunk single shot .22- and .17-caliber rifles here, along with a single shot hunter pistol, as well as the entire line of Revolution aftermarket stocks. Describe your products and latest innovations. Among are products and latest innovations are our single shot .22 youth rifles, single shot .22 hunter pistol, 20-gauge bolt action shotgun (new this month), and premium aftermarket gun stocks.

VOL. X XIV, NO. 5 MAY 2010 Manufacturer & Business Association Board of Governors

Editor in Chief

Executive Editor

Yvonne Atkinson-Mishrell John Cline Dale Deist Timothy Hunter Dan Ignasiak Richard Knight Mark C. Kulyk John B. Pellegrino Sr., P.E. Dennis Prischak Robert S. Pursell Lorenzo Simonelli Sue Sutto Philip Tredway Ralph Pontillo rpontillo@mbausa.org John Krahe jkrahe@mbausa.org

Managing Editor & Senior Writer

Karen Torres ktorres@mbausa.org

Contributing Writers

Steven C. Beckman Jessica Crocker Rose Gantner Thomas A. Pendleton Nancy Taylor

Cover Photography Advertising Sales

Design, Production & Printing

Courtesy of FOX Network Lori Maus Joint 814/833-3200 or 800/815-2660 ljoint@mbausa.org Printing Concepts Inc. printcon@erie.net

Where are your products sold? Our products are sold nationwide and some limited shipments into Canada. We presently are looking at other export markets, especially South Africa. What is the size of your business as it relates to employment, sales and output? We are a 60-employee company with $6 million to $8 million in annual sales. Currently, we ship up to 60,000 rifles and pistols per year. What are the opportunities and challenges of being a sporting arms manufacturer? Our main opportunity is to instill safe shooting practices in youth as they begin to enjoy shooting sports, a lifelong source of recreation. Our challenges are federal regulations and taxes, especially related to firearms, liability insurance costs for the industry, and competition from foreign manufacturers who import lesser quality goods at cheaper prices. What’s your vision for Keystone Sporting Arms in the short and long term? Our short-term vision is develop several new products in an effort to expand product lines to accommodate individuals as they mature and move to shooting firearms that are higher caliber and more sophisticated than a single shot .22. We want to keep our customers for life. In the longer term, we are diversifying into becoming a source of machined parts and services, which are not necessarily gun-related, and our goal is to become the leading aftermarket gun stock manufacturer in the United States. To learn more about Keystone Sporting Arms, visit www.keystonesportingarmsllc.com.

Mission Statement The Manufacturer & Business Association is dedicated to providing information and services to its members that will assist them in the pursuit of their business and community interests. – Board of Governors Manufacturer & Business Association 2171 West 38th Street Erie, Pa. 16508 814/833-3200 or 800/815-2660 www.mbausa.org © Copyright 2010 by the Manufacturer & Business Association. All rights reserved. Reproduction or use of editorial, pictorial or advertisements created for use in the Business Magazine, in any manner, without written permission from the publisher, is prohibited. Unsolicited manuscripts cannot be returned unless accompanied by a properly addressed envelope bearing sufficient postage. The magazine accepts no responsibility for unsolicited manuscripts or artwork. The Business Magazine and Manufacturer & Business Association do not specifically endorse any of the products or practices described in the magazine. The Business Magazine is published monthly by the Manufacturer & Business Association, 2171 West 38th Street, Erie, Pa. 16508. Phone: 814/833-3200 or 800/815-2660.

May 2010 > www.mbausa.org > 3


Company PROFILE Hillcrest Group 838 Hillcrest Circle Wexford, PA 15090 Phone:724/935-2730

Hillcrest Group

Fax:724/935-2730 E-mail: jpezze@zoominternet.net Founded:2002 President:Joseph Pezze

Hillcrest Group

Environmental Consultants Health & Safety Division In addition to our air quality, waste and water environmental consulting services, Hillcrest now offers expert training for all Health and Safety requirements you have.

Three Easy Steps Step One Hillcrest Health and Safety spends one day at your facility to evaluate your training needs.

• Save time; • Gain useful knowledge; and • Get your operators certified by our own certified instructors who design a Health and Safety course around your facility’s needs.

Step Two Hillcrest Health and Safety takes its evaluation and develops a training program based upon the results of the evaluation.

What Does Hillcrest Offer? • Lockout • Crane Safety • Overhead Crane Safety • Rigging • Aerial Lift • Mobile Crane • Fork Truck Safety • Robotic Safety • Fall Hazard Prevention • Confined Space • Confined Space Supervisor • Hazardous Recognition • Hazardous Communication • Bloodborne Pathogens

Step Three Then, we train, certify and establish the next series of training to make certain your facility is ready for: emergencies, OSHA, your employees, and for your customers. Most importantly, you know what you’re doing is being done right and safely by certified operators.

Health and Safety Training Should Be Simple and Direct Now it is with Hillcrest Health and Safety.

Safety Audits • Site inspection • Inspect for OSHA compliance • Provide a written report of findings and suggested actions – if needed.

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Business Buzz PSB INDUSTRIES ACQUIRES MIKRON VALVE AND MANUFACTURING PSB Industries Inc. of Erie, a leading designer and manufacturer of dehydration and purification equipment, has concluded its acquisition of Mikron Valve & Manufacturing Inc., in Cranesville, Pennyslvania. “The acquisition of Mikron will strengthen the capabilities of both companies and allow Mikron to reach a more diverse and worldwide market through the PSB Organization,” said PSB President Mark McCain. “We also sell to similar industries and in some cases within the same customer base. We look forward to the continued growth of both companies and the value Mikron will add to our organization.” Mikron is a manufacturer of custom high-performance, high-pressure ball valves, the Miller line of stream flow check valves, and specializes in precision machining.

DEPARTMENTS > Contact: Jessica Crocker

For more information, visit www.psbindustries.com. GANNON’S PATIENT SIMULATION CENTER TO HOST MAY PROGRAM Gannon University’s state-of-the-art Patient Simulation Center has been chosen to host a prestigious education and training program on May 10-12. The Simulation Center, 150 West 10th Street, will host the annual Healthcare Simulation: Instructor Development Program in collaboration with the Peter M. Winter Institute for Simulation, Education and Research (WISER). WISER is an institute of the University of Pittsburgh focused on conducting research and training programs utilizing simulation-based education. The program serves as an introduction to fundamental skills and abilities for delivering simulation-based health care education through a variety of techniques and technologies. For more information on Gannon’s Patient Simulation Center, call 814/871-7618.

ASSOCIATION PAYS TRIBUTE TO AREA BUSINESS AND COMMUNITY LEADER The recent passing of Don DiPlacido marks a very sad time for many of us in the business community. Mr. DiPlacido was a staunch supporter and promoter of Erie business, and his tireless efforts to promote the city as a wonderful place to work, live and raise a family are legendary. The Eriesistable campaign and his efforts to promote quality improvements are only two examples of his significant achievements as the leader of the Erie Chamber of Commerce. His style, demeanor and ability to communicate were the very essence of class. On behalf of a very grateful business community, we wish to offer our deepest sympathies to Don’s family and friends.

May 2010 > www.mbausa.org > 5


People are singling us out. [ But we’re OK with that. ]

Forbes.com Best U.S. Banks 01.06.10

Greenwich Excellence Award

Small Business Banking

Greenwich Excellence Award

Middle Market Banking

www.fnb-online.com

Top 100 Largest in the U.S.

National Winner Overall Satisfaction

Regional Winner Overall Satisfaction


Health Matters

EDITORIAL > by Rose Gantner, Ed.D.

Financial Education Can Help Improve Wellness in the Workplace The challenge of managing money in the 21st century puts pressures and demands on people that can spill over into other facets of their lives, including their work. Research shows that about 15 percent of employees in the United States are so stressed about their poor financial behaviors that their job productivity is negatively impacted.

According to a survey by the Personal Finance Employee Education Foundation, an estimated 30 million American workers – or, one in four – are subject to serious financial distress.

For employers, it is important to understand how important the issue of money management is to employees. They also need to see that financial education can make a lot of sense in a workplace setting. Yes, the problem is first and foremost the responsibility of your employee, but it can ultimately become your company’s problem as well.

• Unwise use of credit

The average American worker lacks both a basic understanding of money and an understanding of responsible financial behavior. And, because a majority of U.S. employees get most of their financial and health products from their employer, they consider it natural to look to the employers for the understanding and guidance required to reach financial security. Obviously, when employees have a heavy focus on financial concerns, it can reduce job productivity by causing inattention at work. Studies have shown that financially well employees are the most productive. Financial education has the potential to change people’s financial behaviors and, consequently, their job productivity.

Managing money problems include: • Over-indebtedness • Overspending • Bad spending decisions • Poor money management • Insufficient money to make ends meet • Concern about money needed to retire

financially distressed. Such employees are estimated to waste from 12 to 20 work hours per month dealing with personal financial problems. Financial-related stress can lead to issues that impact workers such as insomnia, migraine headaches, anxiety, depression and weight gain. Such stress levels can lead to diminished job performance and absenteeism. Positive returns from improved financial wellness • Fewer workplace distractions • Reduced stress-related performance drains • Reduced absenteeism

How poor financial education can affect productivity: • Higher turnover rates

• Improved job satisfaction

• Added health-care costs

For more information on financial education as part of your workplace wellness program, visit www.upmchealthplan.com.

• Chronic stress • Exposure to liability • Lower productivity: Persons who have received a financial education are less likely to take time off to handle personal financial emergencies and less distracted by the stress that financial problems can bring. When employers take on the responsibility of trying to improve their employees’ financial wellness, it can pay off. Studies have shown that financial wellness initiatives can generate a return on investment of more than 3-to-1. The impact of financial distress Estimates show that one in four U.S. employees is seriously

• Increased job retention and staff morale.

Rose Gantner, Ed.D. is senior director, Health Promotion for UPMC Health Plan, which is part of the integrated partner companies of the UPMC Insurance Services Division. These include UPMC Health Plan, UPMC Work Partners, EAP Solutions, UPMC for You (Medical Assistance), and E-Benefits – and which offer a full range of insurance programs and products.

May 2010 > www.mbausa.org > 7


John Stossel is an investigative journalist, consumer reporter, best-selling author and current host of the selftitled, “Stossel,” a one-hour weekly program, which airs at 8 p.m. and midnight EST Thursdays on FOX Business Network. He also is the host of a series of one-hour specials on FOX News Channel and writes a persuasive and thought-provoking blog called “John Stossel’s Take.” During his 30-year career in journalism, Stossel has received 19 Emmy awards and has been honored five times for excellence in consumer reporting by the National Press Club. Most recently, he took time from his busy schedule to talk with the Business Magazine about his new career move, the current issues he explores each week on his TV show, and his keynote address at the Manufacturers’ Association of Central Pennsylvania and Manufacturer & Business Association’s 67th Annual Event on Friday, May 7, at the Genetti Hotel in Williamsport, Pennsylvania. Eight months since John Stossel became a member of the FOX News family, the Emmy award-winning journalist seems to have settled in at his new TV network home in New York. His new self-titled talk show, “Stossel,” broadcast on the FOX Business Network has given the prominent libertarian the platform to report on the kind of news segments he didn’t have the latitude to cover at ABC. “I wanted to do stories on economic freedom and prosperity, and ‘20/20’ mostly wanted to do stories on celebrities, sex and murders,” explains the 63-year-old veteran newsman of his move to FOX. “It’s given me more air time to cover subjects that interest me.” Introduced as “the man who shatters conventional wisdom,” Stossel hasn’t let his fans down. His new show, which airs Thursday nights, provides viewers with the same refreshing reporting that propelled Stossel into the stratosphere of journalism, earning him critical acclaim for his regular “Give Me a Break” segments, as well as his bestseller, Myths, Lies and Downright Stupidity. The new format mixes in a host of experts, lively debates and a studio audience, and each of his commentaries takes a skeptical but commonsense look at issues that Americans value most. One week he is exploring Ayn Rand’s masterpiece Atlas Shrugged and its relevancy to big government today and, the next, questioning the necessity for state licensing of small-businesses, such as floral shops and yoga instructors. His critical observations and delving inquiries are pure Stossel — straight talk that is convincing and persuasive. “I hope to attract a probing audience,” Stossel says of his ultimate goal for his news show. “I hope to convince everyone in America that free enterprise is a good thing.”

A convert himself, Stossel has good reason to be optimistic. He worked for nearly 20 years as a consumer reporter uncovering business scams and corruption, before growing frustrated by government unresponsiveness. The more he investigated, Stossel says, the more he saw that the problem is that government regulation hurts consumers more than business. “I write it about it in, Give Me a Break, my first book,” he explains. “The chapter is called, ‘Epiphany,’ which is misleading, because it was a slow change... Things shifted from believing the liberal view that government can manage life to discovering that it can make things worse.” In fact, argues Stossel, there isn’t much that the government, which he blatantly refers to as an “intrusive behemoth,” can do that the private sector can’t do better through the competitive free market system. Case in point: education. A fervent supporter of education reform, Stossel contends the monopoly that the government has on education cheats the very children it is supposed to help. He supports this stance by advocating school choice, and he also has been active in creating educational materials for teachers to get students engaged. In 1999, Stossel and the Erie, Pennsylvania-based Palmer R. Chitester Fund created a nonprofit, Stossel in the Classroom.org, which offers teachers classroom free DVDs based on Stossel’s television stories about free markets. Every year, 12 million help students learn to think critically about economics by discussing these videos in high school classrooms. It’s a vital component of lesson plans, he acknowledges, that is not being addressed in most public schools — the same schools where government spending continues to climb and test scores continue to

STOSSEL ON STOSSEL

Why he is such a strong proponent of free markets and economic competition: “Because I have learned that it is what brings prosperity, and prosperity matters a lot.” Adjusting to his new TV show format: “I like the subjects but, where I used to carefully edit every second, this is much more of a free-for-all, and I’m not comfortable with that yet. I hope eventually to become comfortable.” However, “I chose the live audiences because I enjoy speaking before business and student audiences and fielding questions... We haven’t harnessed the audience as much as I had hoped... but we’re still figuring things out.” What he is working on now: “Stossel in the Classroom is a passion. I play beach volleyball, and I work on FOX stories.” A show he says viewers shouldn’t miss: “They are coming out with a new sequel to the ‘Wall Street’ movie where Gordon Gekko in the first one had the ‘greed is good’ line. I will do a show based on that, maybe around May.” Where he believes the role of government should end: “Thomas Jefferson said it’s the progress of things for government to grow, and it keeps growing. It’s terrible. It cripples small business and big business, and it cheats viewers of opportunity.” His thoughts on health-care reform under ‘Obamacare’: “I think it will make things worse, not better. If you ban, for example, discrimination against people with pre-existing conditions, then no one would ever get insurance until they get sick. They’d be a sucker to buy insurance before you get sick. Even if they fine you $5,000, that’s still cheaper than the $20,000 insurance would cost.” What he plans to discuss at the Association’s 67th Annual Event in Williamsport: “I can only decide after I research the group and see what’s in the news that week. In general, I’ll talk about what brings prosperity.” 8 < www.mbausa.org < May 2010


drop. “That’s what happens in a government monopoly,” Stossel adds. “People don’t get taught.” Stossel indisputably has become an important voice for the masses on issues such as education, personal freedom, health care, government regulation and taxes. But, from his years of investigative reporting, he’s also become one of the most respected watchdogs on government spending and waste. When asked about taxpayer-funded bailouts and the ballooning federal deficit, he speaks frankly and candidly about where he thinks the country is headed. “I fear that the reckless spending will lead to massive printing of money to pay for it, and with it, destroying lives by devaluing currency,” he says. “On the other hand, I’ve been pessimistic before and surprised by how the vital spirit of entrepreneurship has managed to grow fast or faster than the ‘intrusive behemoth’ and keep prosperity coming. So it’s a constant battle between the two. But I do fear that we are losing to government.” What Stossel doesn’t question is that politicians and bureaucrats can learn a thing or two about accountability from small-business owners — the same risk takers who don’t have the parachute of taxpayer money to bail them out when things go wrong. “There is growth through failure,” he notes. “One economist called it ‘creative destruction,’ and politicians don’t get that. They also think of life as a zero-sum game. If one person wins, then someone else loses. “But what they don’t get is that business is not really some game — business is voluntary, unlike government, which is forced,” he continues. “Business being voluntary means the transaction never happens — any of them — unless both parties fix and win. So in that constant negotiation, real wealth is created. People find ways to do things faster, better, cheaper. It means when Bill Gates or Carlos Slim have billions of dollars, we have billions left — it means a bigger cut of the pie for all of us. If you let entrepreneurs do their thing, it will make everyone better off.” For more information about the “Stossel” show, visit www.foxbusiness.com/on-air/stossel/.

‘The Man Who Shatters Conventional Wisdom’

JOHN STOSSEL

May 2010 > www.mbausa.org > 9


HR Connection EXECUTIVES UPBEAT ABOUT NATURAL GAS INDUSTRY’S FUTURE Participants at a recent energy conference hosted by former President George W. Bush are upbeat about the future demand for natural gas given that trailblazing U.S. shale drilling has helped create what could be a 100-year supply. According to an article in the StarTelegram, “We have enough for our kids, our grandkids and our great-grandkids,� said Randy Foutch of Tulsa-based Laredo Petroleum and a panelist for the Natural Gas Nation conference in Dallas, Texas.

*NSURANCE 1OSTINGS FROM 1ATTY An Age

Reduction clause has been added to all Manufacturer & Business Association-sponsored Life & AD&D insurance policies. Age reduction in the group life benefit will begin at age 70 when the original benefit will be reduced by 25 percent. For example, an original bene fit amount of $100,000 will become $75,000 at age 70. In the above example, the benefit will be reduced again at age 75 to 50 percent of the original benefit (original benefit of $10 0,000 reduced to $75,000 at age 70, and $50,000 at age 75.) It is important to note that life plans are available to active employees only. If retirees are enrolled they must be removed. For more information, contact Patty Smith at 814/833-3200, 800/815-2660 or psmith@mbausa. org

With recent huge increases in proven and potential natural gas reserves as a result of unconventional drilling in areas (such as the Barnett Shale of North Texas and the Marcellus Shale region in Pennsylvania), energy experts say there is likely a century’s supply, be well served to examine their company’s and price volatility appears less of an issue. energy use, according to energy experts. ENERGY SOLUTIONS FOR THE WORKPLACE Businesses looking to reduce costs and improve their competitive standing would

In the workplace, for example, high-output T8 fluorescent lamps or ceramic metal halide lamps are among the latest and most energy efficient lighting options.

Patty Smith is the director of Em ployee Benefit Service s at the Manufactu rer & Business Asso ciation.

In manufacturing operations, high efficiency compressed air systems can replace older, less efficient systems to run devices using compressed air. Using energy efficient motors with adjustable speed drives also can replace compressed air and provide energy savings.

&BTU "WFOVF t 10 #PY t &SJF 1" (Toll Free) t (Main Phone) t (Fax) 10 < www.mbausa.org < May 2010


DEPARTMENTS > Contact: John Onorato

Safety Tips for the Oil and Gas Industry The oil and gas well drilling and servicing industry was born in the United States in 1859 when the Drake Well outside Titusville, Pennsylvania first struck oil.

• Respiratory Protection (standard 1910.134)

Since then the industry has evolved to become a vital part of our world’s economy.

• Sanitation (standard 1910.141)

It is a dangerous and regulated industry. In 2008, the following were the top 10 OSHA (Occupational Safety and Health Administration) violations in the area of Oil and Gas Well Drilling and Servicing: • Hazard Communication (standard 1910.1200) • Permit-Required Confined Spaces (standard 1910.146) • General Duty Clause Violations (Section 5(a)(1) of the OSHA Act) • Personal Protective Equipment (standard 1910.32) • Wiring Methods and Components (standard 1910.305)

Electronic Communication Services Inc.

• Guarding Floor and Wall Openings

Company PROFILE Electronic Communication Services Inc. Erie, PA Phone: 814/455-4181 or 800/837-5790 E-mail: ecs@ecsinc.us.com Web Site: www.ecsinc.us.com Number of Employees: Nine

(standard 1910.23)

• Medical Services and First Aid (standard 1910.151) • Portable Fire Extinguishers (standard 1910.157) Further, the American Petroleum Institute has identified six oil and gas field potential hazards and their sources: • Being struck by — Falling or moving pipes, tongs and spinning chains, high-pressure hoses and tools dropped by elevated locations; • Being caught in between — Collars and tongs, spinning chains, pipes, and rotary drill strings; • Fire hazards — Well blowouts, well cutting near combustible materials, uncontrolled ignition near well head;

• Falls — from elevated areas of the rig or from ladders; and • Hydrogen Sulfide Exposure — H2S released during drilling, swabbing, performing operations and other activities resulting in employee exposures. If you have any questions about specific OSHA regulations about the oil and gas industry, please contact me at 814/8333200, 800/815-2660 or jonorato@mbausa.org. Attorney John Onorato is the vice president/ general counsel at the Manufacturer & Business Association. He assists member companies with their legal needs and HR questions.

• Rig Collapse — Overloading beyond rated capacity of the rig, or improper anchoring of the rig;

Electronic Communication Services Inc. (ECS) expends a great deal of time and resources to stay current in the ever-changing Voice/Data Technology Field. Whether you are looking for a basic Telephone System with Voice Mail or a VOIP Telephone System that is networked to multiple locations, ECS is committed to providing the latest technology along with the best customer service.

Markets Served: • Small to Large Businesses • Hospitality • Education • Real Estate • Manufacturing • Legal / Financial • Government • Automotive • Call Centers • Nonprofit

Products/Services Offered: • Business Telephone Systems Digital / VOIP Wired / Wireless • Data Networks Wired / Wireless • Unified Communications • Cabling Telephone / Data

Date Founded: 1989

May 2010 > www.mbausa.org > 11


Marcellus Shale

Pennsylvania’s New Energy Economy Found deep within the Appalachian basin, stretching from New York, to Virginia and Ohio, the Marcellus Shale is being tapped as a new energy economy in Pennsylvania. The area, one of several shale plays in the United States, has seen a flurry of activity in the past two years as energy companies have rushed to purchase property rights and drill for natural gas in the region considered to be the second largest natural gas field in the world. Fewer than 1,100 wells have been drilled in Pennsylvania so far, 700 in 2009 alone, with the possibility of 2,500 to 3,000 new wells being drilled each year. “So with that kind of dynamic, you see that we’re not even up to one-third of what would be the sustainable investment,” explains Kathyrn Klaber, president and executive officer of the Canonsburg, Pennsylvania-based Marcellus Shale Coalition, an independent nonprofit membership organization committed to the responsible development of natural gas from Kathyrn Klaber the Marcellus Shale. “What you are seeing from this scramble is certainly to try to have smart companies here who want to find a market for their products and services. Because right now we are on the ramp up, and an entirely new supply chain is being established.” Because, as Klaber adds, it’s not just energy companies that stand to gain from the Marcellus Shale formation — one of the most promising contributors for domestic natural gas in the United States — but the many companies that supply parts, services and support for their operations. The Marcellus Shale Coalition itself represents more than 80 companies — full members, which are directly involved in the drilling and transport of gas, and associate members, which are all the other businesses along the supply chain that stand to gain from successful development of the Marcellus Shale. One example, says Klaber, is U.S. Steel, which recently joined the Coalition. The company recognized early on that shale drilling, not just in Pennsylvania, but also across North America and Canada, requires multiple layers of well casings that must be manufactured. With a well that stretches “8,000 feet deep and more than a mile in each direction, with eight to 10 wells on each path,” notes Klaber, that adds up to significant amount of steel.

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It’s these types of opportunities that are ripe for industry to develop. Growth of the gas industry in the Marcellus Shale region means increased opportunities in many related areas, such as manufacturing, but also legal, hospitality, construction, health and safety, and protective services. In fact, according to a well-documented Penn State University study, nearly 110,000 new jobs will be created in Pennsylvania by the end of this year. “I think that is what is hugely exciting about being in this industry right now,” says Klaber. “There is a lot of capital investment that needs to go into, not only drilling a well that’s 8,000 feet below the Earth’s surface, but then also all the investment in the infrastructure of the gathering lines, everything that it takes to get that gas to market.” Clearly, the Marcellus is on the radar of many area businesses. According to Bruce Bloomster, sales and marketing manager for The Warren Company, a steel service center and custom fabricator headquartered in Erie, Pennsylvania, with branch distribution warehouses in Oil City, Pennsylvania and Falconer, New York, the Marcellus Shale has meant increased business. The 67-employee company distributes various steel products Bruce Bloomster to gas and oil field suppliers and companies involved in maintaining the wells and transmission systems. Most of the materials are used for repair of existing field equipment or the manufacture of low-volume application specific devices used in the gas fields. In 2009, the company began to manufacture frac tanks for drilling companies. Frac tanks are portable water storage tanks used to supply water for the hydrofracturing part of the gas drilling process. “The Warren Company plans to take advantage of the new growth in Marcellus well drilling to increase sales of support products and materials,” explains Bloomster. According to the company, the Oil City branch will benefit the most due to its location in the oil and gas region. The introduction of frac tanks as a new product will help expand the company’s fabrication business and allow it to further diversify its line. “Marcellus gas well drilling is expected to


be strong for the next 20 years, and most manufacturers of frac tanks are located in other regions of the country,” notes Bloomster. “The Warren Company will have the advantage of being located more closely to the end users, therefore enabling it to continue to grow as a local supplier and provide a local resource for custom applications.” In fact, The Warren Company expects that raw material sales at its Oil City Division will increase 5 percent to 10 percent as a result of gas drilling. Custom fabrication and frac tank manufacturing in Erie could increase fabrication sales 20 percent to 40 percent. “We anticipate that the Oil City/Venango County area will benefit more than the Erie area from the Marcellus Shale drilling,” adds Bloomster. “Again this is primarily due to the geographic locations in relation to the Marcellus region. Erie is not in the core region of the area, so it will gain some benefits, but less than other areas of Northwest PA, which are centrally located.” Located in the heart of the drilling territory, Houseknecht’s Machine & Tool Co. in Hughesville, Pennsylvania, already has realized the advantages of supplying to operations in the Marcellus Shale region. According to President Galen Houseknecht, the seven-employee machine shop (CNC & Manual) is involved in repairing damaged parts and making new ones, and working with a drilling rig superintendent to make changes to fabricated and machined parts as necessary. The company has benefited from the Marcellus Shale development just from the machine work Galen Houseknecht that has come their way from the drilling and pipeline companies.

FAST FACTS

• The Marcellus Shale formation, with its huge supply of natural gas, can be found beneath about 60 percent of Pennsylvania’s total land mass, according to the Marcellus Shale Coalition. • In addition to being the largest coverable reserve at approximately 500 trillion cubic feet, the Marcellus Formation also is the closest shale play to the very large market of the East Coast and New England, therefore lowering costs of natural gas to homeowners and others because it eliminates transportation costs and charges associated with bringing gas in from the Gulf Coast or the Rockies. • Natural gas is extracted from shale by a drilling technique called horizontal drilling. First the drilling company drills vertical, and then drills horizontally. Large amounts of water are combined with sand that are blasted at the shale in order to get a fracture. The water is then pumped back out and stored. According to the Marcellus Shale Coalition, the environmental impact of horizontal drilling has about 1-percent surface

“We are able to maintain our work force and could be hiring in the future,” he says. Houseknecht’s has positioned itself to be competitive with state-of the-art machinery and technology so they can serve their customers with competitively priced parts, quick turnaround, and a quality finished product. “I believe it (the Marcellus Shale) will keep our company stable for the next several years,” says Houseknecht. “As Pennsylvania is a depressed state as far as manufacturing goes, I believe it will give the state a much-needed boost with all types of jobs (high-tech and general labor).” According to Klaber, the development of the shale gas formation is not only creating a new energy economy in Pennsylvania but also putting the country on a path to greater energy independence through safe development of clean-burning shale gas reserves. “Here we found a way to make it happen,” she says. “We’re talking about air emissions and there’s a way to lower the emissions not only from burning in our homes but the advantage of using natural gas a lot through this generation. Visionaries are looking at natural gas vehicles and how we can convert the fleet vehicles in our country to run more on natural gas, and have that be another entirely new area for domestic gas to burn.”

Illustration courtesy of the Marcellus Shale Coalition

disturbance compared to conventional wells, which have about a 20-percent surface disturbance. Pennsylvania casing and cementing regulations also are among the strictest in the United States. • Marcellus Shale activity is already expected to generate total revenues of nearly $1.5 billion for the state and local governments from 2008 through 2010. In 2009, Pennsylvania Governor Edward G. Rendell pulled back the proposal to impose taxes on gas extraction, but proposed a severance tax on February 9 of this year. Those in the natural-gas production industry oppose such a tax, saying it could actually hamper economic development. • To learn more about becoming a member of the Marcellus Shale Coalition, visit www.pamarcellus.com. The Coalition is also launching a “Friends of Marcellus” program, which will assist landowners who are benefiting or stand to benefit from shale development. May 2010 > www.mbausa.org > 13



Legal Brief

EDITORIAL > by Steven C. Beckman and Thomas A. Pendleton

Tapping Into the Marcellus Shale Gas Boom The next gold rush is well under way in Pennsylvania. An estimated 500 trillion cubic feet of natural gas is located in the Marcellus Shale formation and securing the rights to it has become a major priority of the gas industry. Producers already have invested $4 billion in Pennsylvania, much of it to secure the rights to subsurface minerals. If your company, or you personally, own land in Pennsylvania, you may be thinking about how you can participate in this bonanza. However, many landowners are entering into agreements to lease their mineral rights without considering the long-term impact of their decision. Every piece of land is unique and presents different issues that should be considered before entering into a long-term oil and gas lease. The lease will control the rights and obligations of the landowner and the gas company for the duration of the contract. It is important to review the terms and conditions of a lease thoroughly before entering into any agreement. It is also important to consider what characteristics of the land are important to the landowner. Lease Duration and Royalties Two important issues in oil and gas leases involve the duration of the lease and how royalties will be calculated and paid. Gas leases are comprised of a primary and secondary term. The provision relating to the primary term allows the gas company to hold the land before any production occurs. This is for a fixed period of time, and the landowner can negotiate its duration and value. The upfront royalty payment is usually based on a fixed amount per acre of land during the primary term with a bonus offered for the first year’s payment. Many landowners will want to negotiate for

a shorter primary term to encourage the gas company to develop wells on their land more quickly. The lease will define certain acts that automatically transition the lease from the primary term into the secondary term. Most landowners envision the secondary term beginning when a producing well is put in operation and they begin receiving royalty payments. However, many other acts included in the standard lease, ranging from drilling of a test well to the underground storage of gas, allow the gas company to enter the secondary term without producing gas that would result in royalties. It is in the landowner’s interest to negotiate and fully understand what activities can activate the lease’s secondary term. Most conditions that begin the secondary term also will be sufficient to continue the term of the lease. The lease term will not expire until the conditions no longer exist, even if no royalty producing activities are occurring. Surface Development Considerations Landowners also should negotiate the scope and nature of surface development. Drilling a well can take weeks to months to accomplish and is a water intensive activity during that time. The site where a well is going to be placed must be cleared, and roadways must be built or reinforced to handle the sudden influx of heavy equipment. A lease should cover the acceptable distance of well installations to prior existing buildings, allocate the payment for potential damages to agricultural crops and timber, and determine where roadways can be built. The use of water and protection of existing wells also should be negotiated.

Worth Noting The goals and motivations of companies purchasing lease rights vary greatly. Some companies have the resources to purchase and develop prime areas of exploration while others operate by purchasing the lease rights of landowners as an investment to later sell when demand is higher. Landowners should know the reputation of the companies they are dealing with and should recognize that any lease may be sold or transferred to another company for development. Entering into a gas lease can be a very lucrative decision, but it also can present complex issues for the landowner. The advice of a competent attorney should be sought out before any contract is signed. Attorney Thomas A. Pendleton contributed to this article. For more information, contact Steven C. Beckman at MacDonald, Illig, Jones & Britton LLP at 814/870-7610 or sbeckman@mijb.com. Steven C. Beckman is a partner in the law firm of MacDonald, Illig, Jones & Britton LLP, where he is a member of the firm’s Environmental Group. He was formerly the regional director of the Pennsylvania Department of Environmental Protection. He concentrates his practice in the areas of environmental and construction law, including environmental regulatory, permitting and litigation matters, as well as public and private sector construction contracting, arbitration and litigation.

May 2010 > www.mbausa.org > 15


The Network

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influential leaders in the tri-state business community! Nothing attracts potential customers like a story informing them about your company. Plus, your profile will be displayed in the Association’s Conference Center Wall of Fame for a minimum of one year and be seen by more than 20,000! For more information on advertising, contact Lori Joint at 814/833-3200, 800/815-2660 or ljoint@mbausa.org.

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ELECTRONIC & INDUSTRIAL RECYCLING Environmental Coordination Services and Recycling (ECS&R) offers solutions for your Electronic and Industrial recycling needs, including local pickup and required verification that your project was completed in accordance with state and federal laws. • Electronic Equipment (computers, monitors, TVs, cell phones, VCRs, etc.) • Paper and Corrugated Cardboard • Consumer Commodities • Fluorescent Lamps • Battery Recycling OIL AND GAS INDUSTRY ECS&R has experience with the varied environmental concerns in the Oil and Gas industry. • Emergency Spill Response • Frac Tank/Lagoon Cleaning • Transportation and Disposal of Waste (hazardous and non-hazardous) • Compressor station waste recycling and disposal HEALTH & SAFETY SERVICES ECS&R offers a wide variety of Health and Safety services that apply to a wide spectrum of industry and commerce. • Training, Written Programs, Auditing ENVIRONMENTAL COMPLIANCE ECS&R offers experience in Environmental Compliance. • Training, Permitting, Reporting, Auditing

FIELD SERVICES ECS&R understands that proper management of hazardous and non-hazardous waste is a sensitive and important part of industry today. Our experienced environmental professionals are constantly being updated on changing regulations in the waste hauling, transportation and disposal industry. We ensure cost effective and efficient solutions to your waste problems. • Industrial Cleaning • Hazardous Waste Transportation & Disposal (Drum or Bulk, Liquid or Solid) • Non-Hazardous Industrial Waste Transportation & Disposal • Chemical Lab Packs • Site Cleanups • Plant Cleanup & Closure EMERGENCY RESPONSE SERVICES ECS&R responds 24/7 to emergency spills with trained professional personnel. No response is too big or small. We have a proven record of providing full project management. • Diesel, Heating Oil, Machine Oil • Gasoline, Solvents, Acids • Alkalines, Mercury, PCB and Reactive Chemicals, etc. For 24-hour emergency response, Call: 877-902-2452

www.ecsr.net


Energy Update

EDITORIAL > by Nancy Taylor

Natural Gas – The Ultimate ‘Alternative’ Fuel of the Future? In the debate over environmentally alternative fuels, natural gas is like the late comedian Rodney Dangerfield — it don’t get no respect. Yes, the same natural gas first widely commercially used in western Pennsylvania in the 19th century. Is this some kind of joke? When it comes to dealing with issues surrounding pollution and the environment, carbon management and energy security, natural gas is part of the solution, not part of the problem. Yes, natural gas is a “fossil fuel.” But natural gas is far more environmentally attractive than oil, coal, and electricity produced with fossil fuels. Of the major sources of energy in the United States, natural gas is the cleanest, most efficient, cost effective, and abundant, producing less pollution and fewer greenhouse gasses than its counterparts. The primary byproducts of burning natural gas are carbon dioxide and water. But natural gas produces less carbon dioxide than other commonly used energy sources. According to the federal Energy Information Administration (EIA), natural gas emits 45 percent less CO2 than coal-fired electricity and nearly 30 percent less CO2 than fuel oil. Natural gas generates less sulfur dioxide (a cause of acid rain), less nitrogen oxides (that can produce smog) and less particulate matter than oil or coal (coal made up more than 44 percent of total electric generation in the United States in 2009). The cleanliness of gas means that not only does it produce less pollution, but also environmental controls on gas equipment are usually much less expensive than for other fuels. Natural gas use means cleaner air whether used for home space heating, water heating, cooking, clothes drying, and,

in the case of natural gas vehicles: cars, trucks, buses, and commercial and industrial processes. Natural gas appliances are more energy efficient than their electric counterparts, and natural gas users thus conserve energy resources and reduce greenhouse gas emissions. According to the American Gas Association (AGA), while the number of natural gas residential customers increased 71 percent since 1970, the average customer today uses 39 percent less natural gas than they did 38 years ago. By using energy wisely, weatherizing homes, using energy-efficient appliances and installing programmable thermostats, customers reduce greenhouse gas emissions. When talking clean and efficient, many people mistakenly think electricity. But how is that electricity generated? When considering all the energy waste in the electric generation process (the full-fuel cycle), the Energy Solutions Center states that only 27 percent ultimately makes it to the end user. The overall efficiency of natural gas is 90 percent. Natural gas also costs less to use than other major home energy sources. According to the U.S. Department of Energy, the equivalent amount of electricity costs families roughly three times as much, on average, as natural gas. Natural gas also costs less than heating oil and propane. The least expensive way to heat a home is with a high-efficiency natural gas furnace. Natural gas provides America with nearly one-fourth of its total energy supply and, according to the EIA, natural gas consumption will grow nearly 20 percent by the year 2030. Unlike oil, which is largely imported, more than 97 percent of the United States’ natural gas supply comes from North America, 84 percent from the

United States itself. And the United States’ total natural gas resource base increased 39 percent since its last estimate in 2006, equaling about 100 years of supply. This increase is largely due to shale formations in the Mid-Continent, Gulf Coast, Rocky Mountain areas and under our own feet in the Appalachian basin. In the coming years, America faces significant energy challenges. Although there are renewable forms of energy on the horizon that show promise, according to the EIA, wind and solar power made up approximately one half of 1 percent of our nation’s energy supply in 2008. Until other alternatives can be produced abundantly and costeffectively, natural gas will continue to be the miracle fuel of the future that is available today. Natural gas — an alternative fuel of the future. That’s no joke, and natural gas deserves some respect! For more information about the benefits of natural gas, visit www.natfuel.com. Nancy Taylor is the senior manager of National Fuel Gas Distribution Corporation’s Corporate Communications Department — public relations, media relations, advertising and community relations — and Consumer Business Department — regulatory compliance programs, including programs for low-income and special needs customers. An Erie native, she has been employed at National Fuel for more than 30 years and holds a B.S. in business administration from Towson University.

May 2010 > www.mbausa.org > 17


Strength in Numbers Federal and state environmental laws impose stringent and complicated requirements on today’s businesses and individuals. With over 65 years of combined experience and the largest Environmental Law practice group in northwestern Pennsylvania, the attorneys of MacDonald Illig have the knowledge, experience and resources necessary to help you overcome your environmental challenges, whatever they may be.

Steven C. Beckman, Partner

Mark J. Shaw, Partner

Russell S. Warner, Partner

Robert E. Gandley, Partner

Business Law • Litigation • Bankruptcy & Creditors’ Rights • Labor & Employment • Environmental • Intellectual Property Health Care • Government & Municipal • Immigration • Family Law • Trusts & Estates • Tax • Real Estate • Construction

100 State Street • Suite 700 • Erie, PA 16507 • MacDonaldIllig.com • 814-870-7600

MacDonald Illig Jones & Britton LLP


The Mechanical Contractors Association of Northwest Pennsylvania

The Mechanical Contractors Association of Northwest Pennsylvania

Company PROFILE The Mechanical Contractors Association of Northwest Pennsylvania Erie Intermodal Building 208 East Bayfront Parkway Suite 105 Erie, PA 16507 Phone: 814/456-3977 Fax: 814/454-3187 E-mail: doug@mcanwpa.com Web site: www.mcanwpa.com

Markets Served: The membership of the Mechanical Contractors Association of Northwest Pennsylvania design, install, repair and service mechanical systems in the residential, commercial, industrial, institutional and governmental markets. The geographic area of service includes Butler, Beaver, Crawford, Clarion, Erie, Forest, McKean, Mercer, Venango, Warren counties and adjacent areas of Ohio, New York and Pennsylvania. Services Offered: • Heating • Air Conditioning • Process Piping • Automatic Temperature Controls Systems • Scheduled Equipment Maintenance • Plumbing • Refrigeration • Medical Gas Systems • Back-flow Prevention • Building Automation Systems • Fire Protection Systems Association Highlights: The Mechanical Contractors Association of Northwest PA members are a diverse group of contractors; some are specialists serving one segment of the industry, while others are full-service contractors offering a broad spectrum of services.

Members stay current with ever changing construction trends through educational programming offered by the Association. Programs in the areas of safety, productivity, building codes and building information modeling (BIM) have been completed. “Building Green” is a constructing trend that our members are ready to embrace as many of our members have “Green Awareness,” “Green Associate,” and “LEED AP” credentialed staff members. Our recently completed state-of-the-art Joint Apprentice Training facility was a $1.5 million investment in our industry’s future and a testimony to our training commitment. Certified training programs in the areas of welding, brazing, back-flow prevention, plumbing, gas piping, medical gas systems, OSHA 30 safety, EPRI valve repair and UA STAR, EPA refrigeration are offered in both of our two training centers. We spend over $500,000 a year on training of field personnel. We have three Department of Labor, Bureau of Apprenticeship and Training-approved apprenticeship programs: Building Trades, Mechanical Equipment Service and Residential programs.

But it’s not all business. As a direct result of our Annual Benefit Golf Outing, almost 7,000 pounds of Thanksgiving turkeys and 1,800 pounds of boneless gourmet Christmas hams have been donated to area food banks, soup kitchens, and community shelters. More than $53,000 has been given to 47 area charities by the Association’s membership over the past four years alone, helping our neighbors and giving back to our community.


Legal Q&A IS FLEXTIME THE SAME AS COMPENSATORY OR ‘COMP’ TIME? No. In comp time, an employee works overtime in order to earn additional time off (Note: it is illegal for private employers to use comp time, but some managers have an informal practice of allowing it anyways. Even if your employees would prefer to take comp time rather than be paid overtime, it is illegal. Do not fall into this habit. Flextime, on the other hand, is a policy whereby your company allows its workers to work a regular eighthour day or 40-hour week, but doesn’t require the work to be done during normal business hours. IS FLEXTIME LEGAL? On the whole, flextime is perfectly

legal. However, as with any employment benefit your company may establish, you cannot discriminate unlawfully based on race, gender, religion, age, disability, or any other protected characteristic in providing the benefit. This does not mean that you must let all workers work a flexible work schedule; it just means that you cannot decide who has access to the benefit based on some impermissible characteristic. IS FLEXTIME A REASONABLE ACCOMMODATION UNDER THE AMERICANS WITH DISABILITIES ACT (ADA)? An employer’s obligations under the ADA require consideration of flexible work scheduling as a reasonable accommodation, absent undue hardship, even if it doesn’t allow such

scheduling for other employees. An undue hardship argument is unlikely to succeed if the company has allowed other employees to work a flexible work schedule. The Equal Employment Opportunity Commission (EEOC) recognizes flextime, job restructuring, and telecommuting as possible accommodations for a disabled employee. CALL THE ASSOCIATION WITH YOUR FLEXTIME AND LEGAL QUESTIONS Have a legal question regarding flextime or other HR-related issues? Call the Manufacturer & Business Association’s FREE Legal Hotline today at 800/815-2660 to speak to our labor and employment law attorneys.

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Healthier Bottom Line

Your employees may all come at it a little differently, but today everyone wants lower health care costs. Highmark’s BlueAccount products get your employees directly involved in their health care spending through a Health Savings Account, Health Reimbursement Account or Flexible Spending Account. The more they’re involved, the smarter their choices. And that means lower costs. They get the tools to manage their accounts through one integrated online source. Along with the most doctors and hospitals, outstanding coverage, more choices, and good value. It all adds up to a greater hand in your company’s health. Find out more at 888.286.8414 or highmarkbcbs.com. Your health plan may not cover all your health care expenses. Read your contract carefully to determine which health care services are covered. HRA, HSA and FSA provided through separate arrangements with select administrators and custodians.


DEPARTMENTS > Contact: John Onorato

Alternative Work Schedule Consideration: Flextime Flextime allows employees to work hours convenient to their particular situation. This may mean being innovative with scheduled work hours, being able to telecommute, or changing the number of hours worked per week. Employees on a flexible schedule may work a condensed workweek or may work a regular workweek. Those working a condensed week may work four 10-hour days, rather than five eight-hour days. Those who work a five-day week may work hours other than the traditional 9-to-5. Both employees and employers could benefit from a flexible work schedule. For employees, parents of young children need time to drop their kids off at school or day care. Employees with elderly parents need time to assist with their parents’ daily care or even drop them off at elder care facilities. Some employees need time off to attend or teach classes; other workers have a second job. Many

need to adjust their schedules to avoid serious, predictable and timeconsuming traffic jams. The obvious benefit to an employer is the ability to accommodate employees who have trouble balancing their jobs and their families. However, offering flexible arrangements also is an opportunity for business in the long term, boosting employee satisfaction and retention levels. In order to retain those employees described above, it would be in the company’s best interest to allow their staff to have a flexible schedule. A less obvious benefit to employers would be a decrease in overhead costs. Employees working flexible schedules can share expensive equipment such as computers, and even desk space, as long as their schedules do not overlap. A company, if it chooses to, can even respond to calls from customers during more hours, if some people

begin work prior to 9 a.m. and others stay later than 5 p.m. Flextime is good for the environment too. With some workers commuting four days each week, not five, fewer cars are out on the road. Fewer cars mean less air pollution, and less congestion on the roads. Staggered schedules also can help eliminate traffic problems. For legal questions about flextime, contact me at 814/833-3200, 800/815-2660 or tlamary@ mbausa.org Tammy Lamary is Labor & Employment Counsel for the Manufacturer & Business Association’s Legal Services Division.

May 2010 > www.mbausa.org > 21


Events

Training Recognition Ceremony

The Manufacturer & Business Association (MBA) honored more than 200 graduates of its training certificate programs, during a series of special recognition luncheons held at the Association’s Conference Center in Erie and various locations in the MBA’s 27-county membership region in Pennsylvania. For complete photo coverage of the events, please visit the Photo Gallery on www.mbausa.org.

Leadership For Team Leaders — Warren

From left: Jim Embrey, Sally Hawkinson and Dawn Forbes, Kersey and Associates, P.C.; Roger Craig, Betts Industries; Howard Lester, Petrex, Inc.; and Mike Britt, Betts Industries.

Leadership For Team Leaders — Erie

Front row, from left: Rory O’Donnell, Association Training instructor; Rich Mazza, D&E Machining; Greg Kifer, Erie Beer; Safia Kassir; Erie Homes for Children & Adults; Randy Swanson, Arvite Technologies Inc.; and Lisa DeFilippo, Association Training instructor. Back row, from left: Rebecca Stafford, Subway of Erie; Victor Chernauskas, Erie Press Systems; Kyle Nowakowski, Merit Tool Company; and Diana Spence - Subway of Edinboro.

Supervisory Skills Series — Erie

Front row, from left: Jack Tomasik, Signal-Tech; Tim Beal, Penn-Union Corp.; Julie Turner, McInnes Rolled Rings; Robin Dixon, The Plastek Group; Lisa Gamble, Gaudenzia Erie, Inc.; Lyle Taylor, Custom Engineering; and James Steber, Erie Homes for Children and Adults. Back row, from left: Clint Shaffer, Millennium Inorganic Chemicals; Mike Nichols, The Plastek Group; Dan Pertl, FMC Technologies; Michael Turk, Millennium Inorganic Chemicals; Delta Terry, The Plastek Group; and John Hickman, McInnes Rolled Rings.

Supervisory Skills Series — Meadville

Front row, from left: Jay Straub and Byron Faust-Dad’s Pet Care; Bob Kiser, Deist Industries, Inc.; and Association Training instructor Rory O’Donnell. Second row, from left: Ron Fritz and Rob Powell, Deist Industries, Inc.; and Reagan Storer and Brian Boyce, Dad’s Pet Care. Back row, from left: Corey Sechler and Russ Wallace, Deist Industries, Inc.

Supervisory Skills Series — Erie

Front row, from left: Jim Koren, Rehrig Pacific Company; Jim DeGeorge, Millennium Inorganic Chemicals; Tony Powell, Rehrig Pacific Company; Christine Powell, Weislogel’s; Denise Kitchen, Erie Bronze & Aluminum; Dave Caruana, Rehrig Pacific Company; and Lisa DeFilippo, Association Training instructor.

Supervisory Skills Series – St. Marys

Back row, from left: Thomas Wolfram, Erie County Department of Public Safety; Adam Gummerson, Rehrig Pacific Company; Mark Watson, Erie Bronze; Tim Feltmeyer, Erie Business Center; and Keith Kuhn, Port Erie Plastics.

Back row, from left: Steve Stark, Tim Van Slander and Richard Russo, GKN Sinter Metals - DuBois; and Rory O’Donnell, Association Training instructor.

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Front row, from left: Kelly Valdez and Cynthia Feldbauer, Life and Independence for Today.


Supervisory Skills Series - Kittanning

Front row, from left: Debbie Johnson, Andrea Pastva, Kryss Craig, Crystal Fogle, Mary Guzman and Jessica Fairman, Farmers & Merchants Bank of Western PA; and Sheila Wilson and Lisa Dailey, Sugar Creek Rest. Back row, from left: Clem Rosenberger, Ed Wielgus, Angela Walter, Amy Stivason, Pam Lemon, Jennifer Zacour, Farmers & Merchants Bank of Western PA; Jason Richard, Cleveland Brothers Equipment Co.; Nan Davis, Farmers National Bank of Emlenton; Linda Wolfe, Barb Webb and Connie Grafton, Farmers & Merchants Bank of Western PA; and Belva Judge, Sugar Creek Rest.

Supervisory Skills Series — Erie

Front row, from left: Danielle Woods, Millcreek Township School District; Susan Thurston, Plastikos; Kristine Ridonger, VNA of Erie County; and Sabrina Wrangler, YMCA. Back row, from left: Association Training instructor Rory O’Donnell; Jarod Perrington, Sunshine Cleaning; Brooke Lyle, ACL/CPI; and Ed Cormier, Plastikos.

Access Application Specialists – Erie

Front row, from left: Perry Bruce and Joelle Zaffino, Erie Veterans Affairs Medical Center; and Association Computer Training Manager Amy Pontillo.

HR Essential Certification Series — Erie

From left: James R. McBride, Peter, Inc.; Vikki Donnelly and Jennifer Esper, Esper Treatment Center; Phyllis Green, Premier Automation; Tracey Cettin, Erie Federal Credit Union; Denise Rodriques, National Fuel; and Attorney John Onorato, Association vice president and general counsel.

Back row, from left: Jennifer Scott and Theresa Imler, Erie Veterans Affairs Medical Center. Not pictured: Four graduates from four companies.

Excel Application Specialists – Erie HR Essential Certification Series — Erie

From left: Brenda Malmgren, Triple Nickel, Inc.; Kim Albaugh, Conneaut School District; Chris DiTullio, JTM Foods, Inc.; Mark Diehl, Fisher & Ludlow, Inc.; Wendy Spaeder, Millcreek Township School District; Kathy Miller, Con Yeager Company, Inc.; and John Onorato, Association vice president and general counsel.

HR Essential Certification Series — Erie

From left: John Onorato, Manufacturer & Business Association vice president and general counsel; Dottie Morgan, EmergyCare; and Attorney Jeffrey Misko, Law Offices of Jeffrey Misko.

HR Essential Certification Series — Erie

Front row, from left; Terry Williams, Youngsville Borough; and John Onorato, Association vice president and general counsel.

Front row, from left: Marcie Head, Perry Mill Supply; Kimberly Popowski, Erie Veterans Affairs Medical Center; Cindy Schwab; Sandy Veihdeffer, L. William Veihdeffer DMD PC; and Association Computer Training Manager Amy Pontillo. Back row, from left: Dan Alfieri and Bonnie Steffy, Perry Mill Supply; Valerie Pieper, Erie Veterans Affairs Medical Center; and Marian Wygant. Not pictured: Thirteen graduates from nine companies.

HR Essential Certification Series — Erie

From left: Danielle Woods, Millcreek Township School District; Tina Davison, CA Curtze Company; Kelly Cook, Hand and Upper Body Rehabilitation Center Inc.; and Attorney John Onorato, Association vice president and general counsel.

Word Application Specialist – Erie From left: Marian Wygant and Association Computer Training Manager Amy Pontillo. Not pictured: Five graduates from five companies.

May 2010 > www.mbausa.org > 23


Vineyard Oil & Gas Company

Company PROFILE

Vineyard Oil & Gas Company Vineyard Oil and Gas Company has been involved in the natural gas industry since 1978. Located in North East, Pennsylvania, Vineyard was the first natural gas marketing company in our area and continues today as one of the most experienced and trusted natural gas marketers in the Northeast United States.

Vineyard Oil & Gas Company 10299 West Main Road North East, PA 16428 Phone: 814/725-8742

Having roots in the Pennsylvania oil and gas producer community, a 25-year Board of Director seat with the Pennsylvania Oil and Gas Association (now Pennsylvania Independent Oil and Gas Association) and dedicated natural gas production from over 2,500 local gas wells, gives the company unparalleled ‘short haul’ gas delivery strength.

Fax: 814/725-9667 Web site: www.vineyardoilandgas.com Founded: 1978

With the recent Marcellus Shale development, Vineyard’s 2010 production commitment is in excess of 250 million cubic feet per day. “It is an exciting opportunity to apply our experience and market presence to the Marcellus Shale,� said Vineyard’s President Steve Millis. “With an estimated reserve recoverability of 50 trillion cubic feet of natural gas, the Pennsylvania natural gas consumer is witnessing a significant landscape change to their energy needs.�

President: Stephen B. Millis E-mail: bpekelnicky@vogmarketing.com

ineyard

Vineyard Oil and Gas Company currently has counterparty relationships with the largest asset managers, utility companies, and interstate pipelines located in North America. Their staff of industry veterans combine for a team approach for a 31-year-old company anxious to serve your natural gas needs.

J.H. J J.H. BENNETTBENNETT MOVING & STORAGE INC. M

Family 1 AA Family Tradition Since 1914Tradition SinceA

Celebrating our 95th year in business!

Celebrating

full-service rel ProvidingProviding full-service relocation and transportation services... from anywhere in th from anywhere in the U.S. ... to anywhere in the U.S.

814-456-5377 1-800-452 8 814-456-5377 1-800-452-8668 1705 Raspberry Erie, PA 16502 www.jh www.jhbennett-moving.com


OntheHill Tom Corbett – R Allegheny County Profession: Attorney General www.tomcorbettforgovernor.com

What are the greatest challenges facing the Pennsylvania business community?

Pennsylvania’s tax and regulatory climate continues to make our state uncompetitive with many other states. The state is positioned as an adversary to business rather than a partner in our economic recovery. Tax and regulatory changes are necessary to achieve sustainable growth. Priorities include lowering the CNIT, removing the NOL cap, phasing out the CSFT and implementation of other needed changes. Regulatory reforms are also needed, such as an overhaul of permitting practices, moving toward uniform administration of programs and promoting compliance assistance.

A Guide to the 2010 Gubernatorial Election Pennsylvania Primary is Tuesday, May 18

Joe Hoeffel – D Montgomery County Profession: Montgomery County Commissioner www.joehoeffel2010.com No response as of press time.

Dan Onorato – D Allegheny County Profession: Allegheny County Executive www.voteonorato.com The greatest challenge our businesses face – and the most important way to spur economic growth – is to establish a competitive business environment in Pennsylvania. It is essential that we improve Pennsylvania’s business tax structure. I have proposed a comprehensive business tax reform plan that will reduce the Corporate Net Income Tax, eliminate the current cap on net operating losses, and ensure that the weighting of the sales factor in the CNIT encourages more business to grow their Pennsylvania work force and their manufacturing and production operations. I also want to finish the phase-out of the Capital Stock & Franchise Tax, a tax which particularly punishes Pennsylvania manufacturers.

Samuel Rohrer – R Berks County Profession: Representative www.samrohrer.org

Jack Wagner – D Allegheny County Profession: Auditor General www.jackwagner.org

The greatest challenges facing our businesses are uncompetitive business taxes, strangling regulations, a labor climate that is stacked against job creators and a hostile legal and business climate statewide.

I share the concern of the business community that it faces high taxes. As Governor, I will work with the business community to address this concern, because thriving businesses create and retain high quality, family-sustaining jobs. I fought successfully to maintain my department’s role in auditing the Department of Revenue’s reviews of corporate tax returns; we have audited over 1 million corporate tax returns and found over $550 million in errors in favor of corporate taxpayers.

These tax improvements are important, but they alone are not sufficient. We must also improve the regulatory environment so that businesses can build and grow here. The state must be seen as business-friendly and do a better job providing timely responses to companies that seek permits and other regulatory approvals.

In your opinion, what is the role of government?

Public safety is the number one role of state government. After providing public safety, our state government must be a servant of the people that puts the interests of the taxpayers before political agendas. Pennsylvania must be a partner in promoting the state’s economic development without unnecessary interference and intervention in private business. Most importantly, our government must remain transparent and accountable to the people who lend the state its authority, and in Pennsylvania that will require a change of the political culture in Harrisburg.

No response as of press time.

Government must create the environment for the private sector to succeed. At the same time, it must also protect the public interest, including by effectively and efficiently addressing work-force development and education, health care, community revitalization, environmental protection and public safety

The role of government is a just protector. It is in place to protect our God-given rights. It is also to ensure a just and fair playing field for individuals and businesses, not to hamper this freedom by stepping in to play the role of “provider” or manager in the public sector.

Government can be a positive force in citizens’ lives if it delivers quality service at market, or below-market, cost. When I took office as Auditor General five years ago, I introduced a mission statement that summarizes my philosophy – we are dedicated to improving the performance of government so that it improves the quality of life for all Pennsylvanians. I will continue to pursue that mission as governor.

Please use the following space to convey a message of your choosing to our members:

I believe that Pennsylvanians overwhelmingly want a governor who is dedicated to fiscal discipline and jump starting our economy by letting business thrive without overreaching, unnecessary burdens and interference from state government, as opposed to an approach of simply throwing more tax dollars at our stagnant economy. I am prepared to change the political culture in Harrisburg, restore our economy to create family-sustaining jobs and return Pennsylvania to its status as a leader among states.

No response as of press time.

The most important issue in this year’s campaign is the economy. Voters are looking for a candidate who can help create jobs, and I am the only candidate for governor who as a track record turning around the economy and running a government. When I took over Allegheny County, we were hemorrhaging jobs and facing a substantial deficit; today our unemployment rate is far lower than the nation’s and the state’s, and I have presided over six balanced budgets with no property tax increases. I will also bring real reform to Harrisburg – and again, I am the only candidate in the race who has proven experience on the issue. Under my leadership, Allegheny County consolidated 10 elected row offices into four, streamlined government, and saved taxpayers money while improving public services.

This is a most critical election year, as Pennsylvania is facing monumental challenges. We must meet these with courage and fiscal discipline, and without procrastination. These must be solved now. I absolutely will not sign a tax increase, we have to rein in government spending to match revenue, we need an overhaul on business taxes and great changes to our regulatory climate must come. We must also protect against federal government intrusion on our Pennsylvania rights. Our freedoms – personal, economic, business – depend on these changes coming swiftly.

I am running for governor to apply my 35 years of experience in the public and private sectors to the many challenges faced by our Commonwealth and to bring much-needed reform to state government. I was honored to receive the endorsements of the Pennsylvania Business Council and I would be honored to receive your support. Please visit my campaign Web site at www.jackwagner.org to learn more about me, my record of reform, and my campaign.

May 2010 > www.mbausa.org > 25


People Buzz

EDITORIAL > Contact: Karen Torres

MBA members the benefit of his expertise and experience in the following areas: TaxQualified Retirement Plans, Non-Qualified Retirement Plans and Welfare Plans.

ASSOCIATION LEGAL TEAM WELCOMES VETERAN ATTORNEY Attorney Alan Balla recently joined the Manufacturer & Business Association’s (MBA) Legal Services Division as Benefits Counsel. The Association’s legal team also includes labor and employment law attorneys Tammy Lamary and John Onorato, who is the MBA’s vice president and general counsel. Balla, who has more than 36 years of experience as a benefits attorney and consultant, he has been the primary adviser to the MBA on all of its sponsored insurance programs, as well as lead benefits consultant for several prominent for-profit and nonprofit organizations in western and northwestern Pennsylvania. He is a graduate of Lafayette College and earned his Juris Doctorate from the University of Pittsburgh School of Law. Balla also is a frequent public speaker on employee benefit issues and will offer

QUINN LAW FIRM ADDS TWO ATTORNEYS Attorneys Kristin L. Prechtel and Valerie H. Kuntz have joined the Quinn Law Firm in Erie as associates. Prechtel concentrates her practice in domestic litigation, including divorce, support and custody, as well as personal injury and medical malpractice defense. Her background includes experience as a law clerk to Judge John Garhart and Judge Fred P. Anthony of the Erie County Court of Common Pleas. Kuntz is licensed to practice law in both Pennsylvania and Ohio; she focuses her practice in tax law, business formation

and operation, commercial bankruptcy, and estate planning and administration. She was previously employed as a staff accountant with Malin, Bergquist & Company, LLP, and recently became a licensed certified public accountant. PHB APPOINTS NEW PRESIDENT PHB, Inc., in Fairview, Pennsylvania, recently announced the promotion of John L. Hilbert Sr. to president and chief operating officer. PHB is a recognized leader and full service supplier of quality products in the die casting, CNC machining, molding, and tool and die industries. Hilbert has played a fundamental role as vice president of PHB since 2005, developing the company as both a leader in the industry as well as in the community. Prior to PHB, Hilbert worked for 18 years at Reddog Industries, an affiliate of PHB.

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OBAMA

We, the people, continue to protest and oppose forced mandates Despite clear opposition by a majority of Americans, you have

! ! ! ! ! ! ! ! ! ! ! ! "#$#%&!!!!!!

The True Job Creators — 343 Fire - Jainene Long 4 Ways Sales & Service, Inc. - Gerald H. Jones Accutool - John Murosky Action Auto Service - Bill Kapp A-Diorios Computer Service - Arthur Diorio Advanced Dentistry of Butler - Robert W. Fornalczyk Advantage Puck Tecnologies - Patrick Roche A.G. Endicott Sales Inc. – Alan Endicott Albert Allegrotti Alex Roofing Co. Inc. - Pete Alex, III Allegheny Forestry, Inc. - David Mill American Turned Products - Jerry Eighmy Americut Corp. - Harold Steiner Arnold E. Thompson Jr. Insurance Agency ATD Warehouse, Inc. - David C. Olsen August Industrial Supply Automation Devices, Inc. - Larry Smith Axeman-Anderson Co. - Peter H. Axemen, Sr. B & L Wholesale Supply Inc. - Robert Jacobson Bailey Family Dentistry - Dr. Todd Bailey Barbara Button Bastian Tire Sales – Mike Bastian Bay City Ortho Care, LLC - Diane L. DeSarro, President William A. DeSarro, VP Becki Miller Bernard L. Schmiedeke Bertram Tool & Machine Co. Inc. – Helmut Bertram Carolyn Bertram Beth Buren Bill Krupinski Biofab Products Inc. - Dennis Barnhart Blackman Electric Inc. - Frank Blackman Blair Masonry Inc. - Rodney N. Blair Beverly Blair Bonded Services Corp. - Randy R. Nyberg Brenda Royer Brian Lasher Bruce Halcomb Butler Floor & Carpet Company - David Croft C & J Industries, Inc. C & T Electric – Bob Curtis C.H.Reed Inc. - David Henning Cable Hardwoods, Inc. Canto Tool Corp. - Dale R. Cummings Carl R. Smith Inc. – Paul Smith Carver International, Inc. - Gary Carver Cashdollar & Associates, LLC - David Cashdollar Chalpka Concrete Const. LLC – Thomas G. Chalpka Charlene & Co. Hair Designs Inc. – Charlene Styduhar CJ’s Home Décor & Fireplaces - C. Digglemann J. Diggelmann

CK Business Consultants, Inc. - Gary Papay Clair J. Ferry, Inc. Clapper Insurance Agency – James Clapper Clark Electric Inc. - Jack Clark Clover Hill Farms - Thomas Meehl Sue Meehl Cochran Real Estate - Judith Cochran Concrete Services Corp. - James Hornyak Nancy Hornyak Core Creative – Larry Simmons Craig G. Pittman Custom Electronics – Glenn Thompson Daniel Cutshall Dave Meyer David B. Lytle Products, Inc. - David B. Lytle David F. Dieteman, M.D. Inc. Davis Cycle Sales - Glenn E. Pugh Debbie Spik Deist Industries Inc. Delnene’s Pizza Plus - Dennis Long Dennis R. Frampton Dennis Trailers Inc. Dennis Winkler Dr. Robert Bell Dr. Ronald J. Wieczorek Dr. Sheila Imbur DTD Electrical Construction LLC - Doug DiPlacido Dimension Carbide – James H. Spaulding Duane C. Rose Duff Personal Care - James H. Duff Susan Duff Duratite Systems - James Karnes E.A. Mundkowsky Finishing, LLC - Elsie Mundkowsky Eagle Precision Tooling, Inc. Earl F. Dean, Inc Elaine Surma EPM Corporation – Deborah Miller Eric Miller Erie DriveTrain Inc. – J. David Bell Erie Industrial Trucks, Inc. – Bob Hanson Erie Mill & Press - John A. Nowak Gregory Maus Keith Nowak Erie Molded Plastics, Inc. Erie Sports Store - Rich Weber Eriez Magnetics Everett Hallob Fact AV Technologies Inc. - Eric Johnson Fairfield Manufacturing Co. - Ray Marshalek Faulkner’s Country Market - Howard A. Faulkner Ferguson Perforating & Wire - Howard Turner

Fezell’s Shop-n-Save - Doug Fezell Fire Equipment Sales, Inc. - Lynn Kolaja FJ Fantasy Sports - Jeff Peters Flagship Investment Group, Inc. - Ralph Bincarowsky Franklin Granite Works - James E. Eakin G & M Bandsaw, Inc. G.W. Becker, Inc. Gary Godfrey Gary Smith George Winston Co Inc. - Dick Winston Glenn Peterson Floors and Furniture, Inc. - Gail L. Peterson Julie L. Peterson Grand Valley Manufacturing Co. Gregg Ecelberger H & H Marketplace H.F. Campbell & Son, Inc. - Frank Campbell Hajduk & Kerna & Associates – M.J. Hajduk P.D. Kerna Hapeman Electronics Inc. Harrington Machine & Tool Co. Inc. – Sue Grampp Hawks Grocery – Gary R. Miller Healthcare Lighting - Steve Day Healthy Smiles of Corry – Dr. Richard A. Steves DMD Heatron Inc. - H.B. Turner Hepco Construction, Inc. Hepler General Contracting - Stan Hepler Highpoint Tool & Machine - Lon Sippy Hoffner Excavating - Robert Hoffner Industrial Fabrications, Inc. - W. Robert Seitzer Infinity Resources, Inc. - Martin J. Farrell Information Strategies Plus - Dave Winn Insul-Board Inc. - Thomas Estock ITZ Solutions - Dale Eller J & C Enterprises - Carol Stein J.H. Cross Co. - Jeff Cross J.J.H.T. Inc. - Jack H. Thompson Jack Cesogan Jack Coogan & Son, Inc Jarecki Valves - Peter Jarecki Peter Jarecki Jason C. Longo Jean Surma Jersey Shore Steel Company - Robert Pursell Joe Klapec & Son Inc. John Bicker John L. Hilbert Sr. John Stillwaggon John Villella Johnson’s Tire Service Just What the Doctor Ordered - Catherine J. Graham Kafferlin Sales and Service Inc. - Mark Kafferlin

Kaleida Machining, Inc. - Matthew Kaleida Kara Onorato Karen Whitesmith Kargo Qlty. Cars & Tks. Inc. – Mark Muehlman Pamela Muehlman Kasgro Rail Corp - Jeff Plott Kelly Erectors, Inc. - Pat Kelly Lois Kelly Kenmac Rentals & Sales - Brian K. McCafferty Kennedy Diversified Kennedy Tubular Products, Inc. - William Barker Kenneth Dunden Accounting Kern Refrigration - Robert Kern Klapec Trucking Co. - Richard A. Milner Cynthia E. Urban Klein Plating Works Inc. – L.F. Dudenhoeffer Kountry Kuts – Alex Staniunas Kathleen Staniunas Kreischer’s Cabinetry - Donald Kreischer Kuhn Tool & Die Co. Lake City Industrial Products - James C. Meeder Lake Erie Logistics, LLC - Raymond Benacci Larry Kebert Laubscher Cheese Co. - R. Kent McQuaid Kevin Watts Laura Way Layke Tool & MFG. - Douglas E. Sheets Lester & Company, Inc. - T.J. Lester Suanne Lester Levco Communications Lincoln Foundry Inc. - Nick Riazzi Christopher A. Campbell Linda Cagnoli Lindsey Refrigeration Lottsville Milling, Inc. - Todd Johnson Wanda Johnson LPH Inc. - John Marzka LTL Properties Inc. – Robert F. Walker Robert M. Walker Lukjan Supply & Mfg., Inc. - Paul Lukjanczuk Lycoming Transmissions - Mike Morufka M & J Conversion Co. Inc. - Raymond Mattie Michelle Mattie Maher-McConnell Concrete Inc. - Charles E. McConnell MAJR Products Corp. - Donald Hester Maleno Development - John Maleno Maple Donuts Erie, LLC - Nat Burnside Margaret Corbin Marilyn Hopkins Marine Sheet Metal Works - William McGinnis Thomas McGinnis


CARE

and the “play or pay” scheme of the Obama Health-Care Plan. forged ahead with this job-killing plan.

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— American Businesses: Margaret Burton Mark Scholtz Plastering & Stucco - Mark Scholtz Marlene Scholtz Mark’s Tire Service, Inc. - Mark Przybyszewski Marlan Tool, Inc. Matthew Jarvi McCain Industrial Services - Wayne McPheron McCain Realty - Jon Cain McClellan Trucking Inc. - Duran Transfer, Inc. - Blaine Duran McMullen Travel & Tours, Inc. McQuillen Chevrolet-Buick-GMC Truck, Inc. - Daniel McQuillen Meadville Ophthalmology Associates - Donald C. Santera, M.D. Meadville Tool Grinding - Stacey Weing Meck-Tech, Inc. Medant, Inc. Michalak Marine – John Michalak Mick Brothers Lumber Inc. - Wayne Mick Micro Plating, Inc. - Paul A. Szymanowski Modular Engineering Momentum Therapeutics – Frank Marrapese Morrison Funeral Home Inc. – Michael Morrison MPE Machine Tool, Inc. - Thomas Fontecchio Mudworks Corp. - Emily Hornyak Nancy Patterson National Fab & Machine, Inc. - Frank Mehler, Jr. George Devenney Neurology Associates of Erie - John A. Hamini, M.D. Leonard J. Leone, D.O. John P. Sullivan, M.D. Nicole Jones Nittany Coatings Inc. – Jeanne F. Endicott Normandy Ent. Inc. – Norman Rigotti Oesterling’s Concrete Inc. - Robert Oesterling Omni Plastics, Inc. - Willie Maier Mark W. Maier Alan F. Woolslare Orthopedic Associates of Meadville - Lawson C. Smart, M.D. Osborne and Associates - Edward D. Osborne, DMD Overhead Door of Franklin - John C. Armant Painter’s Auto Serivce - Dean Painter Connie Painter Pamela Lagacé Parkers Appliance Passport Development - Gregory Rubino Patricia Scheller Patterson-Erie Corp. - Bill Patterson Patti’s Pizza - Steve M. Carr Paul J. Wolf Candle Co. - Michael F. Wolf Paula Holabuagh PDQ Well Services – Caroll Miser Pat Miser

Pelligrino Food Products Co., Inc. Penn Radiator Inc. - Mark Ericson Pennington Lines Real Estate - Patrick Groner Frances Groner Perry Construction Group, Inc. - Robert Doyle Perry Mill Supply – Dan Steinker Perry Screw Machine Company - Thomas Dill Peter C. Ryan, DMD Ltd. Phoenix Data, Inc. - Larry Lovell Pierre Lagacé Pittsburgh Plug & Products Corporation - Vito Pilosi III Matt Kimerer PMF Industries, Inc. - John Perrotto Portersville Valve Co. Poux Plastics, Inc. - Michael Poux Precise Plastics - Greg Farrell Precision Precut Material, LLC - Timothy J. Holthouse Presque Isle Sports, Ltd. – John Heard Professional Cycle, Inc. - Dell Neely Bruce Andrey Pump Technology, Inc. - Arnold Totin R.A. Nelson & Assoc., Inc. - R.A. Nelson R.N.S. Printing - Shirley Beers Radiant Steel Products Company - Andree P. Phillips Ralph Blewitt Ralph Pontillo Ralston Hardware - Paula Holabaugh Randi Blakeley Ray Showman Jr. Excavating, Inc. - Martha J. Showman Raymond Management Company Realco Diversified Inc. Reddog Industries, Inc. - William M. Hilbert, Jr. Richard B. Wilds Richard L. Robbins D.C. Ridg-U-Rak Inc. – John Pellegrino Robert Blakeslee Logging Co. Robert F. Savolskis CPA Robert Teese Roche Management Group - P.C. Hoop Roche Roger Scarlett Rogers Brothers Corporation - Lawrence L. Kulyk Rog’s Inc. - Gavin A. Hedderick Rolling Fields - Cindy Godfrey Kimberly Braham-Moody Romar Homes - Dominic Frisina Rosemary Kachmarksy Rummings Bluestone - Irene Hufnagle Curtis Hufnagle Sally Fitzgerald Samuel P. Black & Associates - Catherine M. Valerio Scaffs Enterprises, Inc. - Jainene Scaff Long

Schrader Architectural Products - John R. Schrader III Scott McAllister, M.D. Select-Tron Industries Inc. - Barbara Folga Lynn S. Bone Seneca Mineral Company Sepco-Erie - Dan Ignasiak Seuins Tire Service Sharon M. Stoke Shelly Memorials - Harley J. Cook, Jr. Shields Asphalt & Paving, Inc. Short Sound Systems – David Short Linda Short Sidehill Copper Works Inc. – Andrew Fynan Simpson Machine - Todd Simpson Sitler and Lemmon Heating Company Snap-tite, Inc. Somers Dentistry - David W. Somers DDS Sonney’s Photography LLC - Miles Sonney Spectra Manufacturing, Inc. - Drew Larson SRT Educational Eneterprises, Inc. - Barry Thomas Starr-Image Products - Pat Santoro State Pipe Services, Inc. - David J. Burns Stephen Buckel Stephen T. Rakack III, DMD Subramanyam Segu, M.D. Suburban Tool & Die Co, Inc. - Michael McGuire Sue Vanicek Superbertha - Scott Johns Suppy Technologies - Bob Shopene Suzanne Clark Swissaero, Inc. - Robert Oberlander T.W.L. Corp. Taxing Matters - Nanette K. Rau Sandra J. Strachan Testing Solutions, Inc. - Fred Hensel The Bucket Café - George Sanders The Caring Place (Venango County) The Hartman Group - Michael Gaetano The Hessinger Group Inc. - Robert Hessinger The Holcombe Group, Inc. - Richard J. Holcombe The Murray Agency - Thomas Murray Pat Murray The Paneling House, Inc. - Randy Hare The Robson Co., Inc. - Chris Robson The Warren Company - Robert Warren Thomas Lee Printing & Mailing, Inc. Thompson Maple Products, Inc. - Charles Henness Tom’s Auto Service, Inc. - Thomas Szympruch Transport Designs, Inc. – Steve Mattie Trinity Manufacturing Co., Inc. Trio Tool & Die Manufacturing Inc. - Bob Riordan

Triple Nickel - Timothy Lewis TriPro Technologies Inc. - John H. Corner Tri-State Bakery Service, LTD - Robin Kennedy Brian Kennedy Trux Inc. - Robert Adams TWL Corp. - Raymond Benacci Ultra Precision Metal Finishing - Stanley Haire Tracey Haire Valeskys Inc. – D. Garth Valesky Victor C. Staples Viking Trailers - Gregg Whittenberger Wagner’s Wheel Alignement - Larry A. Redfood Wakley Escort Inc. - Jeffrey Wakley Warren Overhead Door - James J. Klark West End Hardware - Jeffrey Earll Western Pennsylvania Steel Fabricating - Denise Fiore Whetstone Technology, LLC - Bud Roenigk William Baur William Jack Homes, Inc. Sally J. Jack Wilson Building Supplies, Inc. Winters Plumbing & Heating Supply Inc. - William R. Winters Word Alive Church - Pastor Cliff Reynolds Yaple’s Vacuum and Sewing - Wellie W. Yaple II


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Shouldn’t the people who insure your health understand it? This managed care plan may not cover all your health care expenses. Read your contract carefully to determine which health care services are covered. If you have questions, call Member Services at 1-888-876-2756.


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