Page 1

Ohio octobER 2012 •2013 SEPTEMBER •


Utica East Opens Facility

FAQ for Gas & Oil A Chesapeake Update

Hauling Industry Keeps on Trucking

Pipeline In Your Future? We Protect Landowners

Protecting the rights of property owners throughout Ohio

Experienced eminent domain attorneys only representing landowners Negotiate easements that enhance the value of your property and maximize your compensation Contingent fees based on results NO Results - NO Fee

614-229-4512 or 888-231-2554 • 500 S. Front Street, Suite 1200 Columbus, OH 43215

We get results for you, not the pipeline companies Member of the Ohio Farm Bureau 10174286

Dix Communications - Gas & Oil

September 2013 Edition


publication by

YES! I want to subscribe to Ohio Gas & Oil Subscribe or Renew Your Subscription

Mail to:

Please send me a year of Ohio Gas & Oil for only $25 (1 issue sent to you each month)

Ohio Gas & Oil P.O. Box 10 831 Wheeling Ave. Cambridge, OH 43701

Delivery Address (Please Print) Company Name

Street Address

Apt. #






Authorized by

Payment Enclosed

Bill Me Later (At the above address)

Payment Information (Please Print) Credit Card Number

CVV (Card Verification Number –3 Digits)

Card Expiration (00/00)




Gas & Oil

September 2013 Edition - Dix Communications

Table of Contents 4 6 8

Utica East Ohio in operation Shawn Bennett / Energy in Depth

Truckers in demand with GO industry resurgence John Lowe / Dix Communications

Chesapeake Energy Update

Laurie Huffman / Dix Communications


I’ve got my check, now what?


Gas Powered Turbines


Rex Energy helps Special Olympics


Noble County wells showing promise


District Collaboration Forum


Compressed natural gas fuels


Gas & Oil 101


Drilling Down - Part 2 of 4 part Series


Tough equipment for tough work


Carroll County, good fit for new plant


Kinney Receives Oilfield Patriot Award

36 40 42 44

Frank McClure / Attorney

Judie Perkowski / Dix Communications

Kimberly Lewis / Dix Communications Shawn Bennett / Energy in Depth

John Lowe / Dix Communications

Judie Perkowski / Dix Communications Rhonda Reda / OGEEP

Laurie Huffman / Dix Communications Georgette Huff / Dix Communications

Kimberly Lewis / Dix Communications

Allison Stewart / Dix Communications

Ribbon cutting celebrates Black Run Terminal Guar Beans threaten shale production Norm Shade / ACI Services

Great Lakes Truck Expo Rumbles into Cleveland September 18-19 ‘Think About Energy’ summit September 16-17

Southern Zone Edition

Andrew S. Dix Northern/ Southern Zone G.C. Dix II Southern Zone David Dix Northern Zone

EXECUTIVE EDITORS Ray Booth Southern Zone Rob Todor Southern Zone Lance White Northern Zone LWhite@ Roger DiPaolo Northern Zone

REGIONAL EDITORS Cathryn Stanley Southern Zone Niki Wolfe Southern Zone Judie Perkowski Southern Zone Kimberly Lewis Northern Zone Erica Peterson Northern Zone

LAYOUT DESIGNER Kelsie Davis - Southern Zone Pete Kiko - Northern Zone

“Gas & Oil” is a monthly publication jointly produced by Dix Communication newspapers across Ohio. Copyright 2013.

Dix Communications - Gas & Oil

Kim Brenning Southern Zone Sales Cambridge, Ohio Office 740-439-3531

Ohio octobER 2012 •

A FREE monthly PublicAtion

Peggy Murgatroyd Southern Zone Sales Barnesville and Newcomerstown, Ohio Offices 740-425-1912 Barnesville 740-498-7117 Newcomerstown Jeff Kaplan Southern Zone Sales Alliance & Minerva, Ohio Office 330-821-1200

Harry Newman Northern Zone Sales Kent, Ohio Offices 330-298-2002 Janice Wyatt National Major Accounts Sales Manager 330-541-9450 Jeff Pezzano VP Advertising Sales & Marketing Kent Ohio Office 330-541-9455










Bluegrass Pipeline launches community grant program


Buying & selling mineral rights


Cambridge business & executives lauded by Ohio Assoc. of community colleges

Austin Eudaly, Flatiron energy

Difference between independent contractors & employees David Shallengerger / CPA


The house that oil built


Wooster teacher learns valuable lesson:


Marcellus Shale Collation to have leadership change


Belmont College receives grant for training in Gas & Oil Industry


Extension officials discuss shale activities


Wayne Co. seeing ancillary development


Antique mining equipment on display


Fracking Films - Reflect twists in drilling debate


MWCD official pitches gas/oil development

Greg Parks / Dix Communications

Science Education Important to Energy Industry

Judie Perkowski / Dix Communications

Bobby Warren/ Dix Communications

Judie Perkowski / Dix Communications



Ohio • 2012 • www.ohio octobER SEPTEMBER 2013



Northern Zone Southern Zone



Utica East Opens Facility










Bobby Warren / Dix communications












Agriculture keeping up to date with industry























Rhonda Geer Northern Zone Sales Wooster & Holmes, Ohio Offices 330-287-1653


September 2013 Edition

FAQ for Gas &


Update A Chesapeake

Hauling Industry ing Keeps on Truck

Cover Photo: provided by Access Midstream by Shawn Bennett, Energy in Depth - Ohio Utica East Ohio has begun sales with plants in Kensington, Leesville and Scio.



Gas & Oil

September 2013 Edition - Dix Communications

Southern Zone Edition

Utica East

OHIO in in operation operation

Shawn Bennett, Energy in Depth - Ohio


tica East Ohio, a joint venture by Access Midstream, M3 and EV Energy Partners, became the first fully integrated gathering, processing and fractionation complex to be put into operation on July 28 in eastern Ohio, with plants in Kensington in Columbiana County, Leesville in Carroll County and the Harrison Hub in Harrison County (Scio). The $900 million project began construction last year, with the first of three processing trains up and running in less than 10 months. As Mike Stice, CEO of Access Midstream, noted, “This heroic accomplishment was the direct result of a collaborative effort between Access and M3 to meet our upstream customer needs. Access provided the gathering and compression while M3 delivered on the processing and fractionation. Together, phase one of this multi-phase development resulted in 200 MMcfd of capacity being placed in operation both on time and on budget.” With the liquids rich gas coming from the Utica, the build out

of midstream infrastructure is needed to capture all of the natural gas liquids like, ethane, propane, pentane and butanes that make the Utica so attractive to operators. Thanks to investments by UEO and MarkWest, operators are now able to put their wells into sales instead of having them shut in waiting for the infrastructure to come online. The initial phase of the UEO project is now capable of processing 200-million cubic-feet-per-day at their cryogenic processing facility near Kensington as well as processing 45,000-barrelsper-day of natural gas liquids at their fractionation, storage and rail facility near Scio. Frank Tsuru, President and CEO of M3 Midstream LLC, pointed out that the project will help ensure a more reliable supply of natural gas for consumers. “Completing the first stage of this project is an important milestone in advancing the development of the Utica Shale formation in Ohio, as wells can begin producing both natural gas and natural gas liquids, with this processing system getting those products an important step closer to homes, businesses and industrial users.”

More than 60 percent of operations workers are Ohio residents.

Dix Communications - Gas & Oil

September 2013 Edition

The construction of the UEO facilities created more than 1,700 jobs, with more than a dozen Ohio companies engaged in the project. Now that the first phase is operational, UEO will have 50 employees to operate the facilities and an additional 15 jobs needed to operate the rail terminal at the Scio plant. More than 60 percent of operations workers are Ohio residents. UEO is still in the process of constructing its second phase, scheduled to be complete in December of 2013, with a third phase to follow. When complete, the UEO project will include 800-million cubic-feet-per-day of cryogenic processing, 135,000 barrels-per-day of natural gas liquids fractionation, 870,000 barrels of natural gas liquids storage and a rail facility capable of loading 90 cars per day. The significant investment made by Access Midstream, M3 and EV Energy Partners signifies the Utica is moving from the exploration phase to the production phase. As the Utica continues to grow, UEO will play a key role in guaranteeing consumers are benefitting from safe and efficient operations.

A Better Career Choice!

Training for the Oil & Gas Industry *SafeLandUSA - anytime, anywhere $150 per person *Heavy Equipment Operator


*General and Construction - OSHA 10 and 30 hr. *Globally Harmonized System (GHS) *Job Safety Analysis (JSA) 545 University Drive NE New Philadelphia OH 44663 Phone 330-308-5720 / Fax 330-308-8958 10169404



Gas & Oil

September 2013 Edition - Dix Communications

Southern Zone Edition

Truckers in demand with GO industry resurgence John Lowe, Dix Communications


he phoenix-like rise of the gas and oil industry in eastern Ohio has brought the need for employees ranging from derrick hands and roustabouts to field engineers. That is as one would expect: Specialists particular to an industry. But the need for workers common to other industries also has surged. And in no instance is that more applicable than to truck drivers. “The need for CDL truckers is tremendous,” said Norm Blanchard, executive director of the Cambridge-Guernsey County Community Improvement Corporation. (CDL is an acronym for “commercial driver’s license.”) Fred Badertscher, owner of Buckeye Water Service Co. of New Concord, a company that has served the gas and oil industry since 1954, can attest to the need for drivers. The GO industry’s resurgence with the search for gas and oil reserves in the Marcellus and Utica shale formations is revitalizing eastern Ohio, Badertscher believes. “It’s been an excellent opportunity,” he said. “We have increased probably 60 percent in equipment and people. What drives us wild sometimes is trying to find people. “We can’t find enough CDL drivers — drivers who can

pass the drug and alcohol test. That controls the growth of this company as much as anything.” Not only does Buckeye Water Service expect sober and drug-free drivers, the industry demands it. “It all comes back to the liability issue,” Badertscher said. Oil companies place safety and environmental stewardship at the front of their concerns, he said. The service companies they employ have to have the appropriate equipment and they have to have drivers trained in spill prevention and in how to clean up if a spill were to occur. “Zero tolerance [for drug and alcohol use] and zero accidents — that is their goal,” Badertscher said. “They are respectful and they want you to make money, but they demand this. They treat you well as long as you stay in compliance.” All in all, the GO boom has been good for the community and for the state as well as for people with a wide variety of skills. “When you hire more drivers, you need to hire more office personnel to handle the paperwork,” Badertscher said. “When you get more equipment, you have to hire more mechanics.”

Dix Communications - Gas & Oil

September 2013 Edition


A W.D. Larson Company

Allstate Peterbilt of New Philadelphia, Ohio “If You Can’t Come To Us, We’ll Come To You”!!! 24 Hour/7 Days A Week/ 365 Days Road Service Available On Board Computer Diagnostics For Cat, Cummins, and Peterbilt MX and PX Engines


Full Service All Makes Body Shop

We Have Oil Field Trucks In Stock For Sales Call Bob Boughman At The Office Or Cell: 330-243-6386 327 Stonecreek Rd. N.W., New Philadelphia, OH 44663

Phone: 330-339-5555 • 800-362-6680 Fax: 330-339-6698 10135403


Gas & Oil

September 2013 Edition - Dix Communications

Southern Zone Edition

U P D AT E Laurie Huffman, Dix Communications


he job boom is yet to hit Ohio, according to an update recently presented by Chesapeake Energy, the second largest natural gas producer in the U.S. The talk, given by Keith Fuller, senior director for government affairs, also revealed natural gas prices are expected to remain low in the state, due to the amount being pulled out of the ground. “We’re in what we call the WOPL (waiting on pipeline) phase right now,” Fuller told community members during a talk in August at the Rotary Club in Damascus. “Once we get the product pulled from the ground and it is separated at the two processing plants Chesapeake will use, that’s when manufacturing companies will be attracted to this area. They will want to be close to the energy sources to keep their costs down. The Timken Company, for instance, is very lucky for this reason. Once this area is proven, companies will want to be located here to be close to these products. So, when we say it’s early, it’s very early.” Fuller noted there will be a lot of indirect job creation as well, such as additional restaurant, construction, excavating, and landscaping workers that will be needed, for instance. “We are in that dance, if you will, between drilling and waiting on pipeline,” Fuller said. “The waiting game is about over, but, with one million acres under contract, we won’t be able to drill it all at once. We have 11 rigs operating in Utica now. We keep that number fluctuating between 11 and 18 because we don’t want to tie all our money up in drilling before we get our product to market.” Fuller further reported the wet gas that’s being produced is “very attractive,” but he noted oil has not yet been tested. “People say the oil production is a disappointment, but it hasn’t been tested yet,” Fuller explained. “As far as natural gas is concerned, you can probably bank on lower prices due to the amount that will be produced. And, at one time, we thought we were going to run out of natural gas in this country.” BP is testing now in Trumbull County, and Hess and other big companies are coming into the area now, he also said. “With all this influx, and $900 million being invested in the Kensington plant alone, it is evident the Utica is expected to pan out. When you see those kinds of investments, you know the companies have a

Keith Fuller, Chesapeake Energy senior director of government affairs, talks about the waiting game for gas and oil production, jobs that will soon be coming, and more, during a recent presentation given at the Rotary Club in Damascus.

good idea this activity will be productive. Manufacturing will then, hopefully, come back to this area where people are used to it and know what to do with it.” Two processing plants, in Kensington and Scio, will process and separate Chesapeake’s product and get it ready for market. The Kensington plant is open in a limited capacity that will continue to expand, and the Scio plant will open soon, and this is taking the pressure off Chesapeake, which expects to now turn up its drilling production. “Those two plants will take all the gas we produce and separate it out, and then it will go to market. And, hopefully, there will be enough so some will stay here, and there will be.” Fuller closed by saying, “We know natural gas is the cleanest fossil fuel, and we know we need it. If wet gas production is good, and if oil turns up, that will create more windows for three different areas of marketing. If one dries up for a while, then we can work on another.”

Dix Communications - Gas & Oil

September 2013 Edition


The Safety Group, LLC 10901 Clay Pike Derwent, Ohio 43733 Phone (740) 685-8784 • Fax (740) 685-0288

Expert Sales, Parts & Service for Diesel Powered Equipment

• Factory Certified & Trained • 24 Hour Emergency/On Call • Full Service Truck Shop With All-Makes Parts

We offer Wrangler and Bulwark FR Clothing PEC Basic Orientation and Safeland USA/SafeGulf Training For more information call 740-685-8784 t h e s a f e t y g r o u p . c o m10110433


Canton, OH | 330-454-8800 St. Clairsville, OH | 740-695-6301

At your location or ours, we’ve got you covered.

WBD_quarter.indd 1

4/24/2013 12:08:47

AultWorks Occupational Medicine specializes in treating work-related injuries and illnesses. We are certified by the Ohio Bureau of Workers’ Compensation. Our services include: • Injury Care • 24-Hour Drug and Alcohol Screenings • DOT and FAA Physicals • Pre-placement Physicals • Random Management Programs • Mobile Medical Unit • Travel Medicine Program... and more! Canton 330-491-9675

Alliance 330-823-8864

Orrville 330-684-4767

Berlin 330-893-1318

Carrollton 330-627-0091 10065808


Gas & Oil

September 2013 Edition - Dix Communications

Southern Zone Edition

I’ve got my check. Now what?

Frank McClure, Attorney


ith all of the oil and gas exploration going on across eastern Ohio, many people are discovering they have wealth under their feet they never expected. While this is a wonderful thing, these assets need to be protected and secured for you, your family and your loved ones, just like all of your other assets. But how do you go about this? By using one of many different asset protection options, you can maintain control over your oil and gas rights and the monies derived from them, while preventing them from being considered a personal asset to be tapped if you end up in a civil lawsuit. You have worked hard as a steward of your land. You deserve to reap the benefit of its wealth above and below ground. One

of the most important things you can do is to keep as much of that wealth as possible for yourself, your family and your loved ones. What is asset protection anyway? Asset protection is planning designed to shield your assets from the claims of creditors. You may be thinking, but I don’t have any creditors. The best time to do asset protection planning is when you have no creditors breathing down your neck. Also, creditors take many forms and arise in many different ways and from many different situations. The creditor most people think of is the one who arises from your involvement in an auto accident where the accident is your fault. You may say but I have insurance. The problem is that the damages you cause could be valued at much more than your insurance coverage. There are also many other possible creditors looming in your future from a spouse who becomes an ex, to the government, and every creditor in between. What effective asset protec-

Affordable Housing In Eastern Ohio We have Mobile Home parks throughout the entire Eastern Ohio Region. Our parks are clean, convenient and the homes ready to occupy at very attractive pricing. We work DIRECT with CHAMPION HOMES and can offer VERY SPECIAL PRICING on housing for YOUR EMPLOYEES. Corporate Inquires Welcomed!

FOR RENT – SALE – LEASE • Manufactured Homes – New and Used Call Us for Great Affordable Housing for Your Employees! For Information and Availability Call Today


or email 263 W. Main St. Ravenna OH 44266

2 and 3 Bedroom Models Available.

Dix Communications - Gas & Oil

“One of the most important things you can do is to keep as much of that wealth as possible for yourself, your family and your loved ones.” tion planning will do is make the creditors’ access to your assets more difficult to accomplish, and perhaps impossible to access. The best way to think about this situation is to try and think of your assets as treasure you wish to protect. What might you do with your treasure? You might put it into a chest for safe keeping. Then you might put a lock on the chest. Then you might put the chest into a vault. Then you might build a castle around your vault. Then you might put a moat around the castle. Hopefully this gives you a picture in your mind as to what asset protection planning is. All we are doing is adding additional barriers and protections to protect your treasure (your assets). Each level is another obstacle which the creditor must find a way to get through to get to your treasure. By using proven, simple techniques and strategies you can create different levels of protection for your assets. It may still be possible for a very determined creditor with very “deep pockets” to

Excess Gas? Get a turbine. Fuel Flexibility Reliable Efficient Power Low Maintenance Costs

September 2013 Edition


get though all the obstacles you have placed in their path, but the odds of success for the creditor get longer with each new obstacle in front of them. The reward for doing this planning is protecting this new wealth and the assets you had prior to the oil and gas boom, Hopefully this has given some insight into asset protection that you did not realize before. Remember, asset protection is only one part of estate planning. What if I told you that you could give these treasures to your loved ones and have them protected from your loved ones creditors and predators, including the in-law that after your death becomes the outlaw? This can be done through the use of a lifetime protective trust for your loved ones. This is something you should definitely talk to an estate planning attorney about! If any of the above has struck a chord of interest with you, you should be talking with an attorney who concentrates in the area of estate planning, about asset protection and all of your estate planning needs. You can learn more by going to www. and finding out more about protecting your oil and gas interests, as well as, all your other interests through proper estate planning.

TOOLS OF THE TRADE Whether you’re out on the rig or in your own backyard We have six convenient locations to serve you!

Orme Hardware New Concord





134 North 11th Street Cambridge, OH Phone: 740 432-2712

Newcomerstown 102 N. River Street Newcomerstown, OH Phone: 740 498-8131

51 East Main Street New Concord, OH Phone: 740 826-4160


(Formerly Kandel’s Hdwe.)

German Village Center Berlin, OH Phone: 330-893-2812



634 Lincoln Avenue Cadiz, OH Phone: 740 942-1223

67 West Main St. Newark, OH Phone: 345-7515



Gas & Oil

September 2013 Edition - Dix Communications

Southern Zone Edition


TURBINES can use waste gas to power gas & oil operations Judie Perkowski, Dix Communications


as turbines have been used as a power source to generate electricity since the 1940s. The first 100 megawatt generating station powered by gas turbines went into service in 1959. As the gas and oil industry continues to expand its operations in eastern and southeastern Ohio, state agencies continue to refine and re-define governing rules and regulations, and gas and oil producers continually search for improvements in processing methods, machinery, and technology to contain costs and maintenance, while providing a safer environment for its workforce, minimal disturbance to the land, waterways, the air we breathe, and still make a profit. Today, gas-powered turbines can run a wide Btu range of fuels including well head, pipeline or processed gas such as ethane, said Ed Woods, a consultant for business development at Navitas Systems.

Two combustion turbines use wellhead gas to power artificial lift devices at oil well site.

Navitas represents several companies in the gas/oil industry. The company offers a variety of energy managements systems and engineering services for Keystone Drill Services, LLC, which sells and services Flex Energy gas turbines. Keystone has six service facilities located strategically throughout the Marcellus and Utica formations to engineer, design and fabricate products for its customers in the gas and oil industry. “Use gas you already have to power drilling and production operations. A gas-powered turbine power generation system takes advantage of and can run on well head gases, liquid fuels or a blend,” said Woods. “And, it leaves a smaller footprint.

Essential Equipment for

Gas Production ■ Extensive inventory of new and used equipment ■ Parts in stock ready to deliver ■ On-site service for any brand, any model ■ Clean, well maintained rental fleet

Wheel Loaders

Full-Size & Mid-Size Excavators


Contact us today! 1-800-798-5438

Compaction Equipment

Also available • Telehandlers

• Attachments

• Hydro excavators

• And more! 10146272

There is no fuel tank. One or two turbines can replace three dieselpowered turbines. “These turbines can provide electricity to power the drilling, fracking and completion phases of the process as well as providing electricity for liquid natural gas facilities and refineries. “Because of recent developments in turbine technology, the low cost and high availability, it is the opportune time for drill rigs in our area to shift from diesel engines to gas turbines. Cost of diesel per well is approximately $102, 212; cost of natural gas per well is approximately $36,788. “Gas-powered turbines have been proven to lower fuel costs, require less frequent maintenance, emit lower emissions, less noise and less congestion, in addition to considerable savings in regards to safety from less well site traffic, which means less risk, less road impact, fewer loads, less equipment on location, and no need for service or sales personnel on location for light plants, portable heaters or small diesel generators,” he said. “And, the turbines move with the rig, from well pad to well pad. There are significant economic benefits, as well as societal.” According to Keystone’s website, maintenance on a gas-powered turbine is once per year, compared to every 500 hours for a diesel engine. After a 20-year period of comparisons between diesel engines and gas-powered, savings was more than $1.5 million. “We believe the North American drilling industry is going to change in two ways: Natural gas will replace diesel as the fuel of choice and a vast majority of equipment on location will be electric powered,” said Woods.

Dix Communications - Gas & Oil

September 2013 Edition


Four combustion turbines being used to burn flare gas, excess ethane to power gas processing operations.

According to its website, Navitas Systems, LLC, based in Illinois, offers unbiased design and engineering expertise that provides customers an optimized “one stop shop” for all their energy needs. Keystone Drill Services was established in 1985 offering service and support for all aspects of drilling for oil, gas water, minerals and infrastructure. Keystone has offices in Ohio, Virginia and Pennsylvania.



Gas & Oil

September 2013 Edition - Dix Communications

Southern Zone Edition

Rex Energy helps Special Olympics Kimberly Lewis, Dix Communications


ex Energy donated $10,000 to Carroll County Special Olympics Saturday, Aug. 3, during the company’s Meet and Greet at the Carroll County Fairgrounds. Rex Energy CEO Tom Stabley announced the company had raised more than $100,000 at its annual golf outing in State College, Pa., with the proceeds being split between the communities they serve, including Carroll and Butler counties in Ohio. Carroll County’s portion totaled $25,000 with $15,000 being donated to Carrollton High School for new computers/Ipads and the remaining $10,000 to the Special Olympics for new uniforms for the cheerleading, track, bowling and basketball teams. Tomi Moore, local Special Olympics coordinator and head basketball coach, was on hand to accept the donation. Joining her were assistant basketball coaches Sabrina Seal and Neal Isherwood, track coach Dianna Fairclough and cheerleading advisor Dani Burrier, as well as athletes Matt Crough and Jack Hobson, both basketball, bowling and track; Jenny Moore, cheerleading, bowling and track; Joey Burrier, track and bowling; and Robyn Fairclough, track.

Dix Communications Photo / Kimberly Lewis

Carroll County Special Olympics coaches and athletes accept a $10,000 donation from Rex Energy CEO Tom Stabley during Rex Energy’s Meet and Greet Aug. 3 at the Carroll County Fairgrounds. Attending the event were (front, from left) local coordinator and head basketball coach Tomi Moore, athletes Jenny Moore, Joey Burrier and Matt Crough, and Rex Energy CEO Tom Stabley; and (back) cheerleading advisor Dani Burrier, assistant baskeball coaches Neal Isherwood and Sabrina Seal, athlete Jack Hobson, and track coach Dianna Fairclough.

Continued on pg. 26

FOR RENT – SALE – LEASE Manufactured Homes – New and Used

We have Mobile Home parks throughout the entire Eastern Ohio Region. Our parks are clean, convenient and the homes ready to occupy at very attractive pricing. 2 and 3 Bedroom Models Available.

We work DIRECT with CHAMPION HOMES and can offer VERY SPECIAL PRICING on housing for your employees. Corporate Inquires Welcomed! Don’t Wait – Call Us Today! For Information and Availability Call


or email

263 W. Main St., Ravenna OH 44266

Dix Communications - Gas & Oil

September 2013 Edition











330-474-3795 office 1400 Fairchild, Ave. Kent, Ohio 44240


Gas & Oil

September 2013 Edition - Dix Communications

Southern Zone Edition

Noble-co. wells showing promise Shawn Bennett, Energy in Depth - Ohio


hree wells from Rex Energy’s Warrior Prospect South in Noble County now have the infrastructure in place to allow the wells to officially come online, and for the gas to be sold to market. When Rex Energy performed its initial tests in March, the company announced that it had to await pipeline infrastructure before they could place the wells into sales lines for processing and distribution. Since then, the wells have been shut in. But in mid-July, Rex announced the pipeline infrastructure build out has been completed to the well pad, and the company is now producing from three wells in Noble County. Rex also announced its five-day sales rates from their Noble 1H, Guernsey 1H and Guernsey 2H wells, which they said continue to look very promising. The wells that were put into sales

are located on the Noble/Guernsey County line near Quaker City. According to Rex’s CEO, Tom Stabley, “The strong initial sales rates of our first three Warrior South wells demonstrate the prospects for Rex’s approximately 7,000 gross acres. Given these impressive initial sales rates, we expect the Warrior South Prospect to have a meaningful impact on Rex’s current and future production growth.” All three wells are liquids rich, producing between 42 and 44 percent natural gas liquids. These natural gas liquids (NGLs) include propane, ethane, pentane and butane, which sell for a higher rate than dry natural gas. NGLs are also what make the Utica a sought after play, as these liquids are in high demand for our chemical and manufacturing base in the United States. Furthermore, these wells also produced 13 to 14 percent condensate, which is a valuable feedstock for oil refining and other petro-


(330) 680-4121


Dix Communications - Gas & Oil

September 2013 Edition


Warrior South Well Results - 5 Day Sales Rates Natural Gas Condensate Mcf/d Bbls/d


NGLs Bbls/d

(Full Ethane Recovery) Boe/d

Percentage of Liquids (Full Ethane Recovery)

Total (Ethane Rejection Mode) Boe/d

Noble 1H







Guernsey 2H







Guernsey 1H







chemical industries. The results from these wells show a lot of promise for Rex’s Warrior Prospect South, according to officials, and the company is already busy developing the fifth well on a five-well pad just north of these wells in Guernsey County. Those wells are scheduled to go into a sales line in late 2013. With over 7,000 gross acres in their Warrior Prospect South portfolio, Rex Energy expects to develop plenty of great wells in the future – which is only a snapshot of the promise and potential of the Utica Shale.

“... we expect the Warrior South Prospect to have a meaningful impact on Rex’s current and future production growth.” - Tom Stabley

Supplying the Material Handling Industry for Over 40 Years!


Williams Toyota Lift

9462 Main Ave SE East Sparta, Ohio 44626

Phone (330) 866-2121 Fax (330) 866-3701


Gas & Oil

September 2013 Edition - Dix Communications

Southern Zone Edition

DISTRICT ‘COLLABORATION FORUM’ Congressman wants energy independence for U.S. by 2020

John Lowe, Dix Communications


reedom from the whims of foreign oil producers within seven years should be a prime goal of this nation, Congressman Bill Johnson, R-Marietta, told public officials from his district on Friday. Johnson’s message reached a receptive crowd that assembled on Friday at Salt Fork Lodge and Conference Center when Johnson hosted a collaboration forum for the 6th Congressional District. As part of the proceedings, his assistants broadcast a fiveminute video in which Johnson called for the country to unify behind the energy goal much as it did half a century ago behind President Kennedy’s moon-landing goal. So, how, specifically, should we go about achieving that independence? Johnson believes we need to: • Embrace the new technologies that enable us to tap shale formation oil reserves that previously we were unable to exploit, • Expand our nuclear power sources, and • Continue to develop and refine alternative energy sources such as wind and solar power. This area of the 6th District is poised to do well economically, at least in the near term, because of the oil-rich Marcelus and Utica shale formations. But the same is not true of all of the 6th District. “There are still some counties with double-digit unemployment,” Johnson said. The congressman said we must strive revive the manufacturing industry, especially in southeastern Ohio in areas not blessed with the shale formations. Those areas, however, are near the shale-rich counties with “nearly boundless” oil reserves right at hand. Cambridge Mayor Tom Orr expressed admiration for Johnson’s pro-business stance.

Congressman Bill Johnson tells district collaboration forum at Salt Fork Lodge and Conference Center that the nation should set a goal of energy independence by 2020 for the nation

Because of the highly regulatory nature of the federal government right now, trying to start a small business in this climate is almost an impossibility, Orr said. Johnson ranged over many topics during the forum including infrastructure issues, the impact of the Affordable Health Care Act and others.

Dr. Rambaud & Associates, LLC U.S. Department Of Transportation Qualified Substance Abuse Professional

SAP SERVICES Dr. R. L. Rambaud, DM/LICDC-CS/SAP ~Experienced, Professional, Confidential

(330) 316-6711 or (888) 207-1665

Festivals, homecomings, music, parks, camps, museums, lakes for boating, and great restaurants to suit everyone. Check our website often for updated lists of things happening in the county!



Dix Communications - Gas & Oil

September 2013 Edition


it’s that timE of yEar again! availablE in: 5' riflEman (8 sidEs) 6' bowhuntEr (10 sidEs) 10x12’ Homestead

8x12’ Alpine Garden Shed

find your perfect fit!

sEamlEss pvc roof

360° hunting

EZ slidE tintEd windows

tErmitE rEsistant smartsidE siding

16x24’ A-Frame Cabin

ph 330.359.5708 toll free 800.359.7522 1.5 miles West of Winesburg on US 62 Monday-Friday 7-5 Saturday 9-2

10x12’ AlpineQuaker

w w w. a l p i n e s t r u c t u r e s . n e t

Easy to disassEmblE and movE!

blinds comE in kit form and arE mobilE. floor, roof and all walls arE complEtEly built. approximatE assEmblE timE is 60-90 minutEs. 10173898

Because You Need It Yesterday!

Full Hazardous Location Electrical Distributor

Supplying the Oil and Gas Industry For 35 years

“We speak the Language”

Call Today


9200 Southgate Road • Cambridge • Ohio



Gas & Oil

September 2013 Edition - Dix Communications

Southern Zone Edition

Compressed natural gas fuels future Judie Perkowski, Dix Communications


red Holmes fills the gas tank in his 2012 Honda Civic for $1.40 per gallon. No, he does not have a gasoline pump in his backyard .... But, he does have a compressed natural gas home fill station in his garage. Holmes, a Reynoldsburg resident, said he purchased the CNG vehicle because he does a lot of traveling and it just made sense. Holmes is director of municipal aggregation at Volunteer Energy in Pickerington. He bought his Honda — with all the bells and whistles, for $31,000 — from Chuck Hawley at Lindsay Honda in Columbus. Hawley, Honda fleet manager, said Honda is the only production line natural gas vehicle in the country. Other car companies offer conversion kits, not original equipment. Average price of a CNG Honda is around $26,000. “I didn’t want it to look like a fleet car,” said Holmes. “I am very happy with it. It looks exactly like any other 2012 Honda Civic, nothing changed but the size of the trunk. It’s about half the normal size. “My odometer reads more than 30,000 miles. That is lot of miles for the first year.” Holmes installed a home fill station in his garage because the closest CNG filling station was 37 miles from his home. It is a slow-fill unit, which means he connects the nozzle to the car in the evening and has a full tank of natural gas by the next morning. The filling station was installed by a contractor. He said it will pay for itself in less than two years. “A full tank has a range of 250 to 300-plus miles. My Honda has traveled as far as Grand Rapids, Mich. and Buffalo, N.Y. The best part of my driving experience has been the price of fuel. At the public fill station, I am paying anywhere from $1.89 to $2.25 per gallon of natural gas. At home, I often pay less than $1.40 per gallon. Additionally, it is a very clean fuel,” he said. He said people are constantly asking him if it’s safe. “It’s as safe as any other car, and there is no loss of power,” said Holmes.

“When I started driving my CNG car, there were three fill stations in Ohio, now there are more than a dozen, with many more planned. Wayne National Forest is building a private station in Nelsonville. Private CNG stations are usually for company trucks and cars, but some are open for public use as well. “And, finally, it is American made and American powered. By running a natural gas vehicle, not only am I saving money on fuel, but I am purchasing a product made in this country, and I am supporting the natural gas industry that provides local jobs. I think the anxiety level about CNG is diminishing. “CNG, check it out. You will like what you find.” Currently, there are no regulations regarding CNG motor fuel dispensing facilities in Ohio. The only place in the Ohio Revised Code, that refers to CNG fueling stations regulations, is in the Ohio Fire Code, Section 2208.1 -2208.8.

Dix Communications - Gas & Oil


September 2013 Edition


make yourself at home



Salt Fork is your home away from home! We are offering special extended-stay rates for oil and gas industry workers. Our 148-room lodge features:


Mention this ad and we will pay your documentation fee - a $75 value!

P y o n i nt o t S SUPPLY




• High speed wireless internet • Full-service restaurant and lounge • Boating and fishing

• Indoor and outdoor pools • Exercise room • Golf and tennis

For more information on our special oil and gas worker rates

Call Ashima or Risa at 740.435.9003


7880 Stony Point Rd. N.W. Sugarcreek, Ohio 44681


Monday-Friday 6:00am to 5:00pm Sat. 7:00am to 11:30am


Culvert Pipe In Stock: (Corragated with Smooth Interior)


Treeline Mossy Oak

4”x20’ 6”x20’ 8”x20’ 10”x20’ 12”x20’ 15”x20’

18”x20’ 24”x20’ 30”x20’ 36”x20’ 42”x20’ 48”x20’


Gas & Oil

September 2013 Edition - Dix Communications

Southern Zone Edition

Gas & Oil 101 Rhonda Reda, OGEEP

Q. What is natural gas and crude oil (collectively known as “Petroleum”)? A. The petroleum we use today was formed from the remains of tiny marine organisms over a vast period of time. These dead marine and plant organisms piled up forming layers on the sea floor. They were gradually buried deeper and deeper as sediments accumulated on top of them. Then bacteria, heat and pressure acted on these remains over millions of years to form a liquid (crude oil) or a vapor (natural gas). Once formed, natural gas and crude oil migrated into permeable rocks with lots of pore spaces where it can accumulate. These rocks are known as reservoir rocks. Natural gas and crude oil stops migrating when it reaches a layer of impermeable rock, through which it cannot pass. This is known as a trap or cap rock. Q. Could a natural gas and crude oil well devalue my property? A. There is no evidence that a natural gas and crude oil well will negatively impact the value of your property. On the contrary, the royalty revenues and potential free natural gas, if applicable, may enhance a property’s worth. Many landowners will promote these economic and energy benefits when selling their property. It is also reasonable to request screening and fencing of the well and tanks for aesthetic and safety purposes. Q. Does my property have the geological potential for natural gas or crude oil? A. If there are wells in the vicinity of where you live, there’s a good chance that the geological potential could exist on your property. You can check with a local natural gas and crude oil producer to discuss the possibility of leasing your property for potential development of these natural resources. Q. Who are the reputable companies drilling for natural gas and crude oil in Ohio? A. Talk with your neighbors to see if they have had wells drilled on their property. Are they receiving their royalties in a timely manner? Have the well sites been reclaimed and being maintained? Tank batteries areas should be trimmed, painted and properly identified with signage identifying the well by lease name/well number, permit number, well owner and an emergency contact number.

Q. What are the different types of leases? A. Leases can be either development or non-development. A development lease will include access to the surface of the land for drilling and operating the well. A non-development lease is for use of the subsurface minerals only. Both leases share in the landowner royalty of the well, but a non-development lessors typically does not receive free natural gas.

Q. Will there be any changes to my lease if the operator sells the well to another producer? A. The terms of the original lease agreement applies. However, most leases have a clause that makes them binding on any successor company. The same applies should the lessor sell his property.

Q. How long does it take to drill a well? A. Most Ohio wells can be drilled with rotary rig in 10 days or less. Cable tool wells may take up to a month or more. After drilling, it may take several weeks to complete the well for production. Reclamation work should take place shortly thereafter, and may depend on applicable seasonal weather conditions.

Q. Is drilling a well noisy and disruptive? A. While the well is being drilled, the rig must run 24 hours a day, seven days a week. There could be noise from the equipment, light from the rig at night, and some temporary dust or mud from the well site. Once the drilling is completed, there will be some daylight-only operations to put the well into production, Once the site has been restored, the area is essentially returned back to normal.

Q. Could my water well be harmed? A. Each drilling application is examined on an individual basis by trained technical staff at Ohio Department of Natural Resources, Division of Mineral Resources Management (DMRM) to identify the deepest source of underground drinking water. A casing plan is then designed to protect the aquifers. Steel casing is installed in the well and cemented under the supervision of highly trained industry experts as well as inspectors from DMRM. In the rare instance that a water supply should become contaminated or diminished as a result of drilling, Ohio law requires that the Operator of the well replace the water supply. Continued on pg. 24

Dix Communications - Gas & Oil

September 2013 Edition


hEY EnERGY COMPAnIES, PLEASE GIVE A LOOK AnD UTILIZE ThESE GREAT PROPERTIES! FOR SALE/LEASE • CALL JOhn! The Dover Property - I77 and SR 39 Dover! Highly Visible Commercial Acreage! Ideal Dealership or Hotel Site; Seller will lease for operation space. Easy Access next to Adventure Harley Davidson! $649k or $1,000/ month/acre!

The Cambridge Property - 73 Highly Visible - UNLEASED commercial acres near I77 & I70 SELLER WANTS TO LEASE WATER RIGHTS or GAS RIGHTS! Ideal Campgrounds site; Commercial development; Seller will lease lot storage, or operation space also! Shares available; Lease or Sell! $998k or lets talk lease!

John L. Hochstetler, Agent/Appraiser/Property Manager Kaufman Reality Co. 330.204.0431 •

Whiskey Run Golf Course Property 18 Hole Course - 172 Acres! Seneca Lake Region; SELLER NEEDS TO LEASE WATER RIGHTS of 10 current ponds and any additional! 9 Guestroom Lodge to be leased or purchased; Clubhouse, Restaurant, and Activity Center all could be utilized for lease or sale. Revenues Abound! Scenic sites for development or campground. $1.4M for all or Parcels Available or Lease!

OPen HOuSe / Every Saturday

EVERy SATURDAy 10:00 am - 5:00 pm

1457 St. Rd. 39 NW, Dover, OH 44622 /


Visit Hartzler’s for Special Sales, New Display Models & Refreshments.


Gas & Oil

September 2013 Edition - Dix Communications

Southern Zone Edition

“GAS & OIL 101” from pg. 22 Q. What if my neighbors lease their property and I don’t want to? A. Ohio has spacing requirements, unlike many other states, that protects the correlative mineral rights of property owners. In the case that your property is needed to complete a drilling unit (typically 20, 40 or 80 acres), and you elect not to lease, there is a provision in Ohio law that allows the producing company to apply for a mandatory pooling order to meet state spacing regulations, and to provide the majority of the landowners in the proposed unit the right to development their minerals. If approved, the mandatory pooling includes your property in the unit and you receive your proportionate share of the landowner royalty as though you had leased, but there is no lease agreement between you and the company. Simply put, it is mandatory compensation. Historically, less than 2% of drilling applications request mandatory pooling consideration. The picture shown with this section illustrates well activity in Ohio prior to spacing requirements in the early 1900’s. Without mandatory pooling, there would be no spacing requirements Q. What rights do I have as surface owner if someone else owns the minerals? A. The lease agreement defines the conditions that apply between the company and the mineral interest owner. Any other conditions relative to surface activity (i.e., location approval of wells, roads, tanks, damages, etc.) also have to be declared in the lease. Unless specifically declared otherwise, the interest of the mineral owner takes precedence over the surface occupant in cases of mineral severance. Q. What rights do I have if the company does not fulfill its terms of the lease agreement? A. Any dispute concerning the lease is a private matter between the lessor and lessee. Communication between the parties is always strongly encouraged. Most leases have a notification provision that must be followed to try and settle any conflict that cannot be otherwise resolved. If all else fails, legal assistance should be sought.

Over a million homes... one address

JoAnn Clark 1-800-221-9182 Cell: 330-323-3362 Office: 330-627-6920 10138807

Q. Who is primarily responsible for regulating Ohio’s natural gas and crude oil wells? A. The Ohio Department of Natural Resources, Division of Mineral Resources Management (DMRM) primarily regulates the industry. DMRM does not get involved in contractual differences between the landowner and the producer. The primary function of DMRM is to ensure the responsible development of Ohio’s energy and mineral resources in a safe and environmentally sound manner. It is mandated by Chapter 1509 of the Ohio Revised Code and Chapter 1501 of the Ohio Administrative Code to protect correlative rights, the environment and public safety. Trained and experienced professional staff review permit applications, enforce the state regulations for drilling and plugging wells and gather and provide oil and gas well information to the industry and public.

Ginzel Gin•zel noun : Slang term for a worker even lower on the food chain than a worm. A ginzel would be someone just starting out that has no oilfield experience whatsoever.



KNOWLTON INDUSTRIAL STEEL SUPPLY ALL METALS Aluminum Brass Copper Galvinized Carbon Stainless All Grades Hot & Cold 1018 1045 4140 4150 A-36 Plate A-588 Cor-ten A-514T-1 A.R. 400

Huge Assortment of ALL SHAPES Bolts & Nuts Angles All Grades & Stainless Beams Channels WE HAVE ON PREMISE Culverts C.N.C. Plasma Machine D.O.M. Tubes Certified Welders Race Car Tubes Sheer, Brake & Iron Worker Expanded Metals Flexibend Folder Flats Sheet ASK ABOUT Plate Squares FREE DELIVERY Hexes Sq. & Rec. Tubes MON-FRI 8-5:30 Rounds SAT 8-5 All Thread Rebar Concrete Wire

300 Zane Grey Norwich/Zanesville

visit us on the web Local 740-872-6100 • Toll Free 888-280-9370 Fax 740-872-9999


Dix Communications - Gas & Oil

September 2013 Edition



ACI.indd 1

2/19/13 9:11 AM

We Have the Solution:

Liquid Vinyl is the perfect fit for any architectural style home. It’s applied to your home in a liquid form & gives it a beautiful, seamless finish.


Cracks, Weather Damage, UV Fading, Maintenance & Mildew!

Call Today for More Information! 330-452-6800 or 877-811-CHIC (2442)



Gas & Oil

September 2013 Edition - Dix Communications

“REX ENERGY DONATION” from pg. 14 “Rex Energy is excited to be a part of Carroll County,” said Stabley. The presentation was held during Rex Energy’s first Meet and Greet for landowners and employees. Residents who leased five acres and more with Rex Energy were invited to enjoy a meal catered by Old Carolina Barbecue, inflatables, games and door prizes. A 50/50 drawing benefitted Loaves and Fishes. There was face painting by members of the Carrollton High School Art Club and a petting zoo sponsored by the Carrollton High School FFA, as well as karaoke and a DJ. Carroll County Volunteer Fire Department did a demonstration of extrication techniques. Residents also had an opportunity to meet with Rex employees and have their questions answered. Stabley indicated this would become an annual event. Rex Energy raised the donated funds through a charity golf outing they host every year, from which the proceeds go back to the communities where Rex operates. This year Carroll County received a total of $25,000 of those proceeds. “As part of Rex’s involvement in the communities where we operate each year we host a charity golf tournament in our headquarter office in State College Pennsylvania,” Stabley said. “This year the company raised over $100,000 to be donated to each of the areas where Rex operates, both in Butler County, Carroll County and then in southern Illinois and Indiana. So this years contributions for Carroll County was approximately $15,000 for some new computer equipment at the Carrollton High School and also we are very pleased to announce the donation for $10,000 to the Carroll County Special Olympics.” With no dedicated funding for the program, Rex Energy’s donation was much needed for the Special Olympics team. More than 100 Carroll County residents compete in basketball, bowling, cheerleading or track events locally and in Columbus. Rex Energy’s donation will help replace uniforms and equipment that are close to eight years old. “We have a lot of volunteers who pitch in and help all of the time and it is a joy to work with these kids,” said Moore. “And I am so pleased that Rex Energy has seen the great need we

Southern Zone Edition

have down here because I do not have my kids go out to solicit or earn money. I go to the community and the community does us very well and that is how we support ourselves, basically by community support.”

Dix Communications Photo / Kimberly Lewis

Area children enjoyed a variety of games, rides and inflatables during Rex Energy’s Meet and Greet Saturday, Aug. 3, at the Carroll County Fairgrounds.


Men’s Sizes 5-16 • 5mm of insulation • Temperature rated to below freezing • Reinforced toe • Superior Grip on All Surfaces

Checking Facts. Busting Myths A JOINT EFFORT OF OOGA | OOGEEP | IPAA

BUY ONLINE AT: 10063099


Dix Communications - Gas & Oil

September 2013 Edition


Hydraulic Solution Center

Dix Communications Photo / Kimberly Lewis

Anyone driving in the counties affected by the oil-and-gas boom has noticed these giant compressors traveling the local roads. Although they are not pretty enough to be a distraction, compressors this size do stop traffic, especially the Ohio Highway Patrol blocks the road so the semi-trucks can turn. That is what happened when the truck hauling this compressor turned east on to state Route 171 from state Route 183 in Carroll County.

Your One-Stop Source For:

• Equipment Repair • Drilling/Fracking Supplies • Lubrications • Hydraulic Hoses & Fittings • Pumps, Motors, Valves & Filters • Hydraulics & Pneumatics • Automation Items & More


210 S. Jefferson Rd. Wooster, OH 44691

330-601-0430 YOUNGSTOWN

1034 N. Meridian Rd. Youngstown, OH 44509

330-779-5570 CHARLESTON (DUNBAR)

Call For Great Rates

901 Dunbar Ave. Dunbar, WV 25064

304-766-0070 WHEELING

3600 Wetzel St. Wheeling, WV 26003

304-232-6006 10159242

E-mail: •


Gas & Oil

Drilling DOWN

September 2013 Edition - Dix Communications

Southern Zone Edition

Drilling Down Part 2 of 4 Part Series

Laurie Huffman, Dix Communications


he U.S. EPA states there are currently 168,000 Class II deep injection wells in the country. The ODNR states only oilfield wastes may be transported from drilling sites and injected into Class II wells, which are specifically designed for this type of waste disposal. These wells are drilled into porous formations of limestone or sandstone, usually at about 4,000 feet in depth. Class II injection wells require four layers of protective steel casing and cement, which safeguards underground water aquifers. But, environmental experts say cement doesn’t hold up forever. The injection zone is also always below a layer of impermeable formation, which keeps the fluids trapped deep in the porous formations below. All aspects of the drilling and construction of Class II injection wells and surface casing are witnessed by an inspector, the ODNR also states. And, after deep injection begins, inspectors continue to monitor the well on a regular basis for mechanical integrity. Each well is inspected about once every 10 to 11 weeks. All injection wells are also to be strictly regulated by the ODNR and the U.S. EPA. Yet, some grassroots organizations report oil and gas industry waste is legally exempt from federal hazardous waste regulations and from important portions of the Safe Drinking Water Act and Clean Air Act. They have concerns that these toxic wastes are legally designated nonhazardous by virtue of these exemptions. If tested, they believe they would be deemed hazardous and would be required to be disposed of in a Class I, hazardous waste injection well, which range from 2,000 to more than 10,000 feet in depth. The EPA reports there are only 680 of these wells in existence in the U.S., and three facilities in Ohio currently operate a total of ten Class I injection wells regulated by Ohio EPA.

Sparta Steel & Equipment Corp.

STEEL SERVICE CENTER • Rebar • Angle • Channel• HR Bars • CF Bars • Beams • Tubing • Pipe • Deck Plate • Expanded Metal/Grating • Flat Sheets • HR Plate Galvanized Sheets • Stainless Steel and Aluminum Items

Accepts all major credit cards • Fast Delivery • Friendly Service • Dependable

9875 Chestnut Ave. SE, E. Sparta, OH 44626

330-866-9621 • 1-800-732-4272 • Fax 330-866-9625


• Shearing • Saw Cut • Plate Burning • C.A.D. Burning

The Columbus Dispatch also reported in September 2012 that a U.S. geological survey indicated liquid fracking waste from Pennsylvania, which is where most of Ohio’s oilfield waste currently originates, had levels of radioactivity over 3,600 times drinking water standards and more than 300 times higher than Nuclear Regulatory Commission limits for industrial discharges to water. It can take up to four million gallons of water to fracture a horizontally drilled shale well, which the ODNR compares to four-to-five million gallons used weekly by an average golf course. The ODNR states chemical make up is less than 1 percent of the fluid used, and only about 15-20 percent of the water returns to the surface as waste, called flowback. Injection wells have been managed by the ODNR for the last 30 years, and large volumes of oilfield wastes have been injected through the program, which is designed to protect drinking water and ecosystems. Fees raised by injection wells support permitting, certification, and inspection of the wells and service operations.

Dix Communications - Gas & Oil

September 2013 Edition








































š’ ‡ƒ­






   ­­­­€€ ­‚­  ­‚ ƒ­ ƒ„…†‡†‚ƒ

ƒ„†ƒ‚… † ­‚­  ˆƒ­ ‡­‚­ ‡‰… ˆ‚ƒ „ƒ‚€ƒŠˆ‚‹­ Šˆ‚Œ‡‚ ‡‚‚ 

Šˆ‚•ƒƒŒ‡‚Œ‡‚­Œƒ ­­„ˆ­‡‚ Recommended citation:€‚‡‚Œ‚„ƒ­„ˆ­Ž‘’“”Žƒ­­‰Šˆ‚•ƒƒ­Œ–€‚‡‚Œ‚„ƒ­„ˆ­Ž ­Œƒˆƒ„— ­Œƒ ­­„ˆ‡‚Ž€­‹‡€Ž­ˆƒ“–‘Ž’’’Ž’’’Ž­ ˜…‘…‘’“”™

˜’ ƒ‡‚­



Gas & Oil

September 2013 Edition - Dix Communications

Southern Zone Edition

Tough Equipment for tough work Georgette Huff, Dix Communications


Dix Communications photo/Georgette Huff

Will Ballas, left, manager of business development-equipment for American Road Machinery Co., and salesman Paul Swain celebrate the opening of Tough Equipment, located at 15595 Lincoln Street SE, in Minerva.

the NEW Irish Setter Exoflex The rubber pull-on is popular among oil and gas workers because it holds up well in the tough working conditions that they are exposed to. The Exoflex is a revolutionary design feature that allows these boots to be taken on and off easier but still have a lock tight fit when they are on.

We Offer Discounts for all Gas & Oil Tradesman! Canton Location: Niles Location: 4131 Tuscarawas St W 6261 Youngstown Warren Rd Canton, OH 44708 Niles, OH 44446 330-478-1101 330-544-5955 1017472500

t was a case of one good idea leading to another. Long recognized for its snow removal and road-care equipment, American Road Machinery Company also has begun manufacturing tanks for the vacuum trucks and winch trucks that haul water and brine to drilling sites throughout the area. Then they started offering parts and repair service at the facility on Bridge Street in Minerva; eventually, company president Nick Ballas said, “It made sense to break off and move the parts to a new location.” That new location is Tough Equipment, the retail arm of American Road which recently opened at 15595 Lincoln St. SE, Minerva. Tough Equipment is all about customer service. The store stocks a wide variety of truck parts, including fluids, brakes, filters, lighting, engine parts, seats, wheels, mud flaps, wire connectors, ratchets and tie-down straps. Also on hand is oil field equipment, including “frac and vac” hoses, hammer unions, cam lock fittings, valves and pipe fittings, fasteners, winch cables, custom hydraulic hoses, strainers, vacuum pumps and industrial PVF. Safety equipment is also available, including FR helmets and boots, fluorescent vests, safety glasses and welding harnesses. But “customer service” extends beyond the store’s door. “Whether it’s on site or on the road, we’ll get it there,” said Paul Swain, about Tough Equipment’s 24/7 on-site delivery capability. Swain is the outside salesman for the company, handling a territory that encompasses a 100-mile radius from Minerva. Swain and salesclerk Rachel Fry staff the store. “When companies have problems, Tough Equipment provides solutions,” said Will Ballas, manager of business developmentequipment for American Road Machinery. Ballas noted that one advantage to having American Road “as a back-up” is the ability to custom-engineer and fabricate specialty equipment. As an example, the company is beginning work on its first septic truck. Tough Equipment is open 7 a.m. to 4:30 p.m., Monday through Friday, and 7 a.m. to noon on Saturday. The phone number is 330522-4157; fax number is 330-868-3386. Swain can be reached at 330-705-7295 or by e-mail at The website is

Dix Communications - Gas & Oil

September 2013 Edition

Affordable Housing

...located in the heart of the Utica Shale Region R E NTA AvAiL Ab LE LS NO

ONE-yEAR ! WN LEASE-TO -O buye for qualified

Move-in read




New York Financing a


for qualified b


Pennsylvania Ohio Utica Shale Region

Quality Homes & Communities OHIO


Colonial Heights

Sandy Valley Estates

Cranberry Village

Port Royal Village

Suburban Estates

(740) 314-5182

(330) 866-3873

(724) 776-3255

(724) 929-4224

(724) 834-0931

Lake Sherman Village

Southern Terrace

Forest Park Village

Somerset Estates

Sunny Acres

(330) 484-4767

(330) 542-3312

(724) 776-3198

(814) 443-3533

(814) 445-6071


Spreading Oaks Village

Pine Valley Estates

917 Two Ridge Road Wintersville, OH 43953

7227 Beth Avenue SW Navarre, OH 44662

9555 Struthers Road New Middletown, OH 44442

(330) 542-3312

11461 State Road 800 NE Magnolia, OH 44643

1229 SR 164 Columbiana, OH 44408

7140-29 Selby Road Athens, OH 45701

(740) 593-3952

100 Treesdale Drive Cranberry Twp., PA 16066

102 Holly Drive Cranberry Twp., PA 16066

485 Patterson Lane Belle Vernon, PA 15012

1873 Husband Road Somerset, PA 15501

1283 Sugar Hollow Road Apollo, PA 15613

(724) 478-4395

33 Maruca Drive Greensburg, PA 15601

272 Nicole Lane Somerset, PA 15501

Explore our communities online!

UMH owns and operates modern manufacturedhome communities offering the highest-possible value per dollar for home ownership.

Licensed by the Ohio Department of Financial Institutions and the Pennsylvania Department of Banking. NMLS #200331 10101379



Gas & Oil

September 2013 Edition - Dix Communications

Southern Zone Edition

Carroll County good fit for new plant

Kimberly Lewis, Dix Communications


t is not the growing oil-and-gas industry that has drawn Advanced Power Services to Carroll County with plans to build a 700-megawatt natural-gas electric power plant, but the “right” market and location. Jonathan Winslow, project manager for Carroll County Energy, LLC, explains, “It is the right market, with the retirement of existing power plants, and the right location with an infrastructure capable of supporting a plant like this.” Carroll County Energy, a subsidiary of Advanced Power Services Inc., announced that it intends to build the electric generating facility to “efficiently supply enough energy to provide electricity to 700,000 homes.” According to company’s press release, the project is an $800 million capital investment that will provide up to 500 construction jobs at the peak of construction. Winslow said it will take two to three years to build the plant. He noted the company has made a commitment to hire local as much as possible, but noted some higher-skilled jobs may require

employees from out of the area. Lynn Gresock of Tetra Tech, a company that provides environmental services, technical studies, planning, engineering, design, and construction management services, noted there will be plenty of “construction elements that can be done by local laborers.” “Even with those workers who are from out of the area, there are benefits to the local community to do this kind of work. They eat, buy gas and stay here. There is also a lot of opportunity for specialized labor,” she said. She believes the company will find local qualified engineers, and others who have power-plant experience. When completed, the facility will employ 25-30 full-time employees in well-paying engineering, technical, operation, management and administrative positions. The plant will be staffed 24 hours a day, seven days a week. The company been looking at Carroll County for the past eight months, Winslow said. He noted that environmental studies are nearly completed and the project is ready for “more active development.”

11510 East Pike Cambridge, Ohio 43725 (740) 439-7285 800-439-7217


Best Deals on the Biggest Selection of RVs in Southeastern Ohio !

Zinger Fifth Wheels & Travel Trailers by CrossRoads

Sunset Trail by CrossRoads

Z-1 by CrossRoads

Banshee Camping Trailers

Camping Trailers

By Palomino

By Palomino

Truck Campers By Palomino



Dix Communications - Gas & Oil

“It is the right market, with the retirement of existing power plants, and the right location with an infrastructure capable of supporting a plant like this.” -Jonathan Winslow


Advanced Power Services has an agreement with GE Energy to develop facilities using GE’s highly flexible and efficient gas turbine technology. The facility will employ new state-of-the-art General Electric natural-gas and steam turbine technology in a configuration referred to as “combined-cycle.” This configuration captures waste heat and generates additional electricity using a steam turbine. According to a press release, the facility will produce 50 percent of the carbon dioxide and less than 10 percent of the sulfur dioxide and nitrogen that a conventional coal-fired power plant produces to generate the same electricity. Continued on pg. 38

Miller’s Clothing and Shoes WRANGLER FR


CARHARTT (330) 364-2688


The proposed facility is on 77 acres of land that is a part of a 233-acre farm. The site is approximately one-half mile east of state Route 9 and two-and-a-half miles north of Carrollton. It is adjacent to Carroll County Community Improvement Corporation’s land that is designated for industrial and commercial development. “With Ohio’s electricity needs continuing to grow and some 5,800 megawatts of conventional coal-fires power plants scheduled for retirement by the end of 2015 in Ohio, Carroll County Energy will help fill our generation needs with clean American natural gas,” Winslow said. “This facility can be aptly described as ‘efficient generation from a small footprint.’” He estimates the footprint will be less than 17 acres, and, because of the site’s size, the plant will be “well buffered.” Winslow noted the site is ideal with proximity to electric transmission lines and an interstate gas pipeline, Tennessee Gas Pipeline.

September 2013 Edition


API 5CT-0449 Dalton

n end finishing...1.900”-13.375” n upsetting...2.375” and 2.875” tubing n over 60 acres of pipe storage

Call for Details n 9 state of the art CNC threading machines n Hydrotest new and used casing and tubing | (330) 832-1734


Gas & Oil

September 2013 Edition - Dix Communications

Southern Zone Edition

Kinney receives 2013 Oilfield Patriot Award Allison Stewart, Dix Communications


he Ohio Oil and Gas Association (OOGA) has presented William Kinney, president and owner of Twinsburg-based Summit Petroleum, with the Oilfield Patriot Award, an annual honor bestowed by the trade association. The award was established in 2006 and recognizes individuals who have made significant contributions to protect, promote and advance the common interests of those engaged in all aspects of Ohio’s crude oil and natural gas industry. “William Kinney epitomizes the Oilfield Patriot Award,” said Joel Rudicil, president of the Ohio Oil and Gas Association. “He has selflessly contributed time, energy and resources for the benefit of the industry and our members. He is a deserving recipient of this prestigious award.” Kinney’s company drills, owns and operates crude oil and natural gas wells in Ohio, Pennsylvania and New York. He is past president of both OOGA and of the OOGA Executive Committee

and currently serves as chairman of the OOGA/Dominion East Ohio Gas Project Review Committee. Kinney, who lives in Hudson, graduated from Kent State William Kinney University in 1976 with a bachelor’s degree in industrial engineering. Kinney has been in the industry since 1976, initially employed at Park Ohio Energy. “I quit the day my son was born, Sept. 10, 1984,” said Kinney. Park Ohio Energy had wanted him to make a special trip to New York during the birth of his son. It was at this point Kinney knew he wanted to start his own business. Summit Petroleum Inc. is a small independent gas operation that Kinney started in 1984. “There used to be a lot of those around but there are much fewer now,” said Kinney. “All these big businesses are moving in and pushing the small guys out. I’m determined to stay involved

1818 Hopple Ave. SW Canton, Ohio 44706

Toll Free (866) 936-0708 Batteries Alternators Starters

He r i t ageFi nanc i al& I nv e s t me ntSe r v i c e s ,LLC.

12/24/36/48 Volt Pickup & Delivery Service Available


Light Plant & Generator Repair Electrical Troubleshooting & Repair Truck Lighting Strobe Lights Battery Chargers Wiring Supplies Pressure Washers Electric Motors Heaters & APUs

Ni kkiV.Bake r Lude ,CFP®,ChFC® LPLFi nanc i alAdv i s or

Financial, & Estate Planning/ Fi nanc i al ,R e t i r e me nt&Retirement Es t at ePl anni n g/ I n v e s t me n t s& I ns ur anc e

Investments & Insurance Services Of fic e :7401 17Nor t hMai nSt r e e t r dF 117 North Main Street ni kki . l ude @ 3 l oor ,Sui t e22 3rd Floor, Suite 22 www. l pl . c om/ he r Woods fie l d,OH43793 Woodsfield, OH 43793 Se c ur i t i e sandFi nanc i alPl anni ngof f e r e dt hr oughLPLFi nanc Office: 740-472-9161 aRe gi s t e r e dI nv e s t me ntA dv i s or ,Me mbe rFI NRA/ SI PC Securities and Financial Planning offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC


Dix Communications - Gas & Oil

in my work.” Kinney said winning this award is the “high water mark” of his career. “It is so prestigious because I was selected by my industry peers,” said Kinney. “I am thrilled to have received it.” Kinney said it takes a lot of people for this industry to run smoothly, including the people he works with. “Bill is a great example of what this award is,” said Mike Chadsey, OOGA’s director of public relations. “Bill always jumps up on the opportunity to do public speaking. He has a willingness to answer questions for the public.”


“He has selflessly contributed time, energy and resources for the benefit of the industry and our members. - Joel Rudicil According to Chadsey, the Ohio Oil and Gas Association has been going strong for more than 65 years with 3,000 plus members. “This industry works because I enjoy doing it,” said Kinney. “It is fun, thrilling, and I work with a great group of people. It has never once felt like work. We provide something that the community and country need. I feel pretty good about what I do.”

Drill string Drill•string noun : A column, or string, of pipe that transmits drilling fluid (via the mud pumps) and torque (via the Kelly drive or top drive) to the drill bit.


We’ll beat any local price – guaranteed.


September 2013 Edition


Gas & Oil

September 2013 Edition - Dix Communications

Southern Zone Edition

Ribbon cutting celebrates Black Run Rail Terminal


hio Oil Gathering, a subsidiary of Crosstex Energy, recently celebrated the reactivation of the company’s Black Run Rail Terminal by hosting a ribbon cutting ceremony on July 17 at the Ohio Oil Gathering regional office in Frazeysburg. The Black Run rail terminal is the first facility to move light oil condensate out of the region to refinery and petrochemical markets. The state-of-the-art rail loading terminal is on the Ohio Central Railroad, allowing the export of Utica Shale light oil condensate production. The facility includes a 20-car rail rack with tracking gangways designed to top load multiple products, including light oil condensate and various grades of crude oil, at a rate of 24,000 barrels per day. The Black Run terminal, adjacent to the company’s oil gathering pipeline, will leverage existing tankage and piping, as well as the capabilities of its extensive truck fleet in the Ohio River Valley to take advantage of continued growth in the Utica region. The company is investing heavily in midstream development as Utica shale production ramps up. To date, the company’s investments include the 2012 acquisition of Clearfield Energy, the recent formation of E2 Energy Services focused on condensate stabilization and natural gas compression, and upgrades to ex-

Photo Above: Ohio Oil Gathering, LLC, a subsidiary of Crosstex Energy, LP, celebrates the reactivation of the Black Run Rail Terminal in Frazeysburg. From l to r: Crosstex employees Kevin Hyatt, vice president of commercial and business development and Chris Middleton, project engineer; Ohio Central Railroad employee John Murray, assistant vice president of sales and marketing; Paul Weissgarber, senior vice president of Ohio River Valley; Ohio Oil Gathering employee Aaron Fleming, director of operations; Michael LeBlanc, Crosstex vice president of operations; and Ohio Oil Gathering employee Mark Sterling, manager of operations, cut the ceremonial ribbon to officially reopen the facility.

isting storage facilities, trucking operations and brine disposal services. More at Crosstex Energy, LP, an integrated midstream energy partnership headquartered in Dallas, Texas, offers diversified, tailored customer solutions spanning the energy value chain with services and infrastructure that link energy production with consumption. Crosstex operates approximately 3,500 miles of natural gas, natural gas liquids and oil pipelines, 10 natural gas processing plants and four fractionators, as well as barge and rail terminals, product storage facilities, brine disposal wells and an extensive truck fleet.

Dix Communications - Gas & Oil

September 2013 Edition

37 740.454.2521

Energy Banking Team



Member FDIC



Your local oil & gas banking experts

Your Truck Accessory Headquarters • • • •

Grille Guards Bumpers Lighting Headache Racks

• Tool Boxes • Wheels & Tires • Lift Kits • Nerf Bars Installation Available!

• • • •

Winches Hitches Fender Flares Floor Mats


Ohio Light Truck Parts 7643 Fort Laurens Rd. Strasburg, OH • 330-878-6587 • 800-333-3536

Mon. • Wed. • Fri. 8-5 Tues. & Thurs. 8-6 Saturday 8-12


Gas & Oil

September 2013 Edition - Dix Communications

“CARROLL CO. PLANT” from pg. 32 “We will have two sources of energy from one fuel,” Winslow said. The plant will be “air” cooled as opposed to water cooled, which will reduce the amount of water needed to operate the plant. Significant economic benefits are expected as a result of the project. Winslow noted the company could enter an Enterprise Zone Agreement that would provide, long-term, stable tax revenues that would benefit Carroll County schools and other programs. He also noted significant economic benefits could result from purchases of goods and services, including payments for water and sewer services. Winslow said the project is in the process of completing environmental studies and will be applying for and obtaining the necessary permits. He expects to have Carroll County Energy to submit its application to the Ohio Power Siting Board by the end of summer. Winslow and Gresock noted the company will hold open houses to provide the community with information and address any concerns people have. Carroll County Energy also plans to open up offices in Carrollton in the near future. Winslow said people will be able to stop in and ask questions about the project. Several open houses will be announced in the coming

Southern Zone Edition

months for people to learn more about the project and the company will have additional information available at www. With the Carroll County Energy project, Advanced Power Services will be generating 2,100 megawatts of power in the United States. It has a plant near New York City and in Massachusetts.

49381 State Route 250, Harrisville, OH 43974

• Certified Mechanic • Offer Financing • We sell late model ATV, UTV, Dirt Bikes & Motorcycles

Check out our August special on our website



WATER TANK LEASING With Approved Credit

$100.00 A Day - $500.00 A Week $1500.00 A Month - $1200.00 A Month w/1 Yr. Contract

New Aluminum

CRUDE OIL Trailers



New Frac


New & Used Trailers

P.O. Box 500 - Beach City, OH 44608

1-800-826-5377 or 330-756-2030 •


Dix Communications - Gas & Oil

September 2013 Edition




Gas & Oil

September 2013 Edition - Dix Communications

Southern Zone Edition

Guar beans threaten shale production

Norm Shade, President ACI Services

Guar bean pods [inset left] are dried [inset center] and processed into guar gum [inset right], a key ingredient required for the development of shale oil and gas wells. Grown mostly in India and Pakistan, production of the little known bean is falling behind demand, threatening to slow he availability of enough skilled labor, sili- the rate of shale oil and gas production in the U.S. To meet the demand, ca sand and water are frequently identified researchers are developing varieties that can be grown in the semi-arid as barriers that slow the rate of develop- regions of Texas [background], Oklahoma and other U.S. locations.


ment of shale oil and gas wells. Large amounts of water and special types of sand are used in the hydraulic fracturing process that frees the oil and gas that is trapped within the tight pores of the shale rock deep underground. But now, exploration companies also have to deal with shortages guar gum, a little known, but key ingredient in hydraulic fracturing fluids. Because of its viscosity, guar gum is ideal for carrying sand and chemicals into the fracture zones of shale. It’s also slippery, which speeds up oil and gas recovery and helps reduce operational costs. Even better, it’s all-natural and environmentally friendly. The key product from guar gum is a hydrocolloid, a substance that forms a gel when mixed with water. In Asia, guar beans are consumed by humans as a vegetable. They are also grown for cattle feed and as a green manure crop. In the U.S., highly refined guar gum makes ice cream silky, salad dressings think and creamy, and helps maintain the flavor or a beverage in your mouth. Guar gum is also used in a wide variety of industries including textiles, paper, pharmaceuticals and cosmetics, even as a fire retardant. A little bit goes a long way for traditional applications, for example a gallon of ice cream calls for just a pinch of guar gum. But it takes about 20,000 lb. (10 tons) of guar beans – that’s about 80 acres of guar production – to make enough gum for a typical

shale oil or gas well. Shortages of the beans have driven prices up from about $1.80/lb. to $14.60/lb. in 18 months, adding $150,000 to the cost of an average well. One major exploration company recently reported using 1700 tons a month at a cost of some $40 million. Demand is rising rapidly due to the use of guar gum in hydraulic fracturing. About 80% of world production occurs in small subsistence farmers’ plots in remote parts of India and Pakistan. Worldwide guar production hit a high of 50,000 acres in 2012.

Paul G. Hesse Cell: 330-466-0177 CEMENTING SERVICES

Fax: 330-262-0030 PO Box 1076 474 Industrial Blvd. Wooster, Ohio 44691 10166264

p 0 y 0

l . .

Dix Communications - Gas & Oil

But that is enough for the development of only 625 oil and gas wells. Even doubling that acreage will only cover about 1250 wells. Production in India is only increasing at the rate of about 10% per year and the political instability in Pakistan makes that country’s output increasingly undependable. Experts predict that demand for guar requires planting and harvesting between 250,000 and 500,000 acres annually, up to ten times as much as what is currently grown. This level of production cannot be reliably achieved using only dry land farming methods. More agricultural breakthroughs are needed and the guar plant is being introduced into new areas. Oil and gas companies are also looking at guar alternatives. Both Halliburton and Schlumberger are exploring synthetic hydrocolloids. So far, though, they haven’t matched guar gum’s ability to improve the viscosity, or flowability, of the drilling fluid and help suspend the sand that is needed more than a mile underground to help prop the shale rock formation open when it is fractured under high pressure. Another potential solution is growing more guar domestically. Texas Tech, Texas A&M, New Mexico State, Arizona and other universities have conducted research aimed at developing new seed varieties and farming methods to increase yields for U.S. production. Semi-arid regions of Texas and Oklahoma are said to be ideally suited for growing guar beans, but the crop may hold promise for other states as well. There is now a production plant in Texas that processes guar grown by a few farmers in

September 2013 Edition


West Texas, where the crop is suited to the marginal soils and dry climate. Might there be potential for growing guar on some of the reclaimed land in Appalachian Ohio? In the end, the complexity of the guar supply chain is one of the limiting factors in responding quickly to the increasing demand from oil and gas producers in the U.S. With hope on the horizon for U.S.-grown guar, time will tell if local supply can meet demand.

Storage Space Inside & Out Available Fenced Secured Area

Suitable for Campers, Boats, Heavy Equipment Contractors, Gas & Oil Companies Welcome.



Representing Owners of Mineral Interests and Land Owners


• Lease Review, Negotiations and Counsel • Dormant Mineral Act • Lease Forfeiture and Held by Production Issues •Estate Planning •Business Transactions •Bluegrass Pipeline

– Celebrating 60 Years in the Practice of Law – A Martindale Hubbell A.V. Rated Law Firm


w w w. t s p p l a w. o r g 139 West Eighth St., Cambridge 7 4 0 -4 3 2 -6 3 2 2


Gas & Oil

September 2013 Edition - Dix Communications

Southern Zone Edition

said Beth Trnka, GLTE show manager. “This opportunity to showcase the natural balance between trucking and the oilfield industry has been our dream that is finally turning into a reality. The attendees and exhibitors at the GLTE in September will see an event like none other.” The annual GLTE is the premier show in northeast Ohio with participation by major truck and engine manufacturers, trailer manufacturers, truck body manufacturers and countless product and service suppliers. Also spotlighted at the two-day show will be the refuse, cement mixers and snow/ ice vocations. Among the more than 3,000 expected GLTE attendees include senior level management from local and national companies representing the trucking industry. In addition to these industry segments, the Great Lakes Truck Expo will focus on the latest advances in the Utica shale play in Ohio and information about the Natural Gas Industry. This information will range from new engine technology, CNG and LNG options, education and training which will define the trucking industry for years to come. The GLTE will also offer multiple and varied educational sessions to industry attendees. The Office of Energy at the Ohio Development Services Agency will be conducting an educational presentation on The Alternative Fuel Transportation Program. This is a new state program that improves air quality through financial assistance for the purchase and installation of alternative fuel refueling, blending, or distribution facilities and terminals.

rumbles into Cleveland Sept. 18-19


leveland Medical Mart & Convention Center and Positively Cleveland have announced that the 2013 Great Lakes Truck Expo will be held at Cleveland Medical Mart & Convention Center in downtown Cleveland Sept. 18-19. The exhibits will be open from 10 a.m. to 5 p.m. on Wednesday, Sept. 18 and from 9 a.m. to 2 p.m. on Thursday, Sept. 19. Online registration for attendees is open at Interested exhibitors should contact Beth Trnka at beth@ The Marriott Hotel at Key Center will serve as the host hotel for the GLTE event. “We are excited about the 2013 GLTE as we move another step forward towards the industrial revolution that is happening in Ohio,”

ocay owned since



oil & Gas p r o d u c e r // l e a s e s

Your area specialist. gerald benson // President // 740.685.0404 Mark a. benson // exec. Vice President // 740.801.0808


Mike Young // belle Valley associate // 740.680.3609

P.O. Box 7


10341 Pioneer Road


Byesville, Ohio 43723

• • • • • • • • • •

Facility Engineering Station & Unit Automation Turnkey (EPC) Solutions Project Management Material Procurement Horsepower Selection Feed Studies Measurement Liquid Handling 2D & 3D Drafting & Design

Experts in Natural Gas Basic Systems, Inc. (740) 432-3001 (office) 10174147

Dix Communications - Gas & Oil

“We are excited about the 2013 GLTE as we move another step forward towards the industrial revolution that is happening in Ohio.”

September 2013 Edition


GO RVing

- Beth Trnka

Two Huge Indoor Showrooms Full Service Department with 21 service bays Full Parts & Accessories Department Collision Center . Customer Lounge . Kids Play Room 10174599

“For many years there has been a steady and growing interest in establishing a truck show for the Great Lakes region based on our market strength in this area and its potential for growth,” said Craig Thompson, director of sales of the Cleveland Convention Center. “We are excited to be a part of this shows’ expansion and to showcase the facility’s capabilities as a venue that can host events with oversized equipment displays.” The Great Lakes Truck Expo is sponsored by Crain’s Cleveland Business, Shale, Progressive Commercial, and Allstate Peterbilt Group. The new Cleveland Convention Center, managed by Merchandise Mart Properties, Inc. (MMPI), has 59 trade shows, conferences, and meetings booked into the facility, which opened just this summer.

Hundreds of Motor Homes, Travel Trailers And Fifth Wheels in Stock!

We are proud to be your PREMIER Ohio RV Dealer!


1604 St. Rt. 18, Medina OH

Kishman’s IGA Try Our

• Pulled Pork, cooked slow & low at least 12 hours. It’s Out of this World! • Smoked Mac & Cheese or Baked Beans • Melt in YOUR Mouth Beef Brisket • Homemade Smoked Pork Sausages • St. Louis Style Spare Ribs, Yummie Just off the Historic Lincoln Highway Minerva, Ohio 44657 Open 7 AM to 9 PM Daily


Buy Groceries - EARN FREE GAS!

Ship Your Packages UPS, Buy Stamps, Money Orders, Kishman’s GIFT CARDS, Phone Cards, Photo Developing at our Service Desk. Heggy’s Fine Chocolates & Fresh Cut Flowers. Call Us: 330-868-7727 or Toll Free at 1-800-874-5028

or Email

Visit Us At for More Kishman’s Information!



We Smoke our meatS With hickory StickS from carroll county!


Gas & Oil

September 2013 Edition - Dix Communications

Southern Zone Edition

‘Think About Energy’ summit Sept. 16-17


merica’s Natural Gas Alliance will hold “Think About Energy Summit” at the Greater Columbus Convention Center on Sept. 16-17. The Summit will bring together leading national and regional experts to discuss how natural gas can play a growing role in Ohio’s clean energy future. Speakers for the summit include representatives from American Electric Power, Tennessee Valley Authority, Timken Steel, NiSource, JobsOhio, The Ohio State University. Registration for the Think About Energy Summit is free. For more information, visit The discussion panels are as follows: Introduction to Natural Gas Dr. Jeffrey Daniels, Director – Subsurface Energy Resource Center, The Ohio State University; Tom Stewart, Executive Vice President, Ohio Oil and Gas Association; Rhonda Reda, Executive Director, Ohio Oil and Gas Energy Education Program; and Chris Ziegler, Executive Director, Ohio Petroleum Council.

PROMARK TRUCK, TRAILER, AUTO REPAIR, INC Welding & Custom Fabrication Mobile Services, Fleet/ Oil Field On Site Car, Medium Truck, Heavy Duty Truck & Trailer Repair/ Maintenance Service Tire Sales, Diagnostics, Hydraulics, D.O.T. Inspections, Suspension Work

“One Call can handle it all, at PROMARK” 10137904


Economic Impact of Natural Gas for Ohio Moderator: Linda Woggon, Executive Vice President, Ohio Chamber of Commerce; David Dismukes, Associate Director, Center for Energy Studies, Louisiana State University; David Mustine, Managing Director, Energy, Chemicals & Polymers, JobsOhio; and Amy Rutledge, Director, Carroll County Convention Center & Visitors Bureau, Carroll County Chamber of Commerce. Natural Gas for Power Generation Moderator: Michelle Bloodworth, Vice President, America’s Natural Gas Alliance; Marc Gerken, President and Chief Executive Officer, American Municipal Power; Andrew Kosnaski, Vice President Generation Planning, Tennessee Valley Authority; Mark McCullough, Executive Vice President – Generation, American Electric Power; Dr. Paul Sotkiewicz, Senior Economist, PJM Interconnection. Natural Gas Pipeline Infrastructure Moderator: Paul Smith, Director, America’s Natural Gas Alliance; Kathryn Downey Miller, Senior Energy Analyst, BENTEK Energy; and Jim Crews, Vice President of Northeast Business Development. Natural Gas for Manufacturing & Cogeneration Moderator: Bradley Belden, Corporate Manager – Occupational & Regulatory Services, The Belden Brick Company; Shawn Seanor, Vice President – Oil & Gas, Timken Steel. Natural Gas Vehicles & Refueling Infrastructure Moderator: Charlie Riedl, Market Development Manager, Chesapeake Energy; Brad Couch, CNG Business Development Manager, Ariel Corporation; Chuck Diehl, Fleet Manager, Smith Dairy; Hari Jackson, CNG Business Director, IGS Energy CNG Services; Dr. Giorgio Rizzoni, Director, Center for Automotive Research, The Ohio State University.

Dix Communications - Gas & Oil

September 2013 Edition



Gas & Oil

September 2013 Edition - Dix Communications

Southern Zone Edition

Agriculture keeping up to date with gas/oil industry Bobby Warren, Dix Communications


tate Rep. Dave Hall, a Millersburg Republican, has been keeping up to date on the oil and gas industry as chairman of the Agriculture and Natural Resources Committee. Hall is looking forward to more hearings out in the field, probably in Eastern Ohio where drilling is on the rise. As the committee chairman, he is finding himself speaking on a lot of panels and updating citizens about what is going on with oil and gas in the state. As for the upcoming hearings, Hall said they will likely focus on where is the state at with the infrastructure and what’s happening with drilling. Hall, who represents District 70, recently spoke to a delegation from Illinois. The state is in the beginning of a shale play in the southern part of Illinois. This past spring, there were some who wanted to put a moratorium on hydraulic fracturing, known as fracking, and hearings were held. However, Hall said a decision was made to keep moving forward as the committee was confident Ohio is doing it right. As Ohio is becoming “inundated” with “thousands of rigs,” Hall wants to make sure the state proceeds at a pace where “we can stay on top of regulations.” He believes the state has good regulations in place, and “as we move forward, we want to keep on top of things. Other states are looking at what we have done.” Among the things the state has done was to increase the severance tax to raise money to hire more inspectors, and it has worked to protect the water table by requiring triple protection when pipes go through it. “(We want to) have a fail-safe system so we do not have infiltration into our most valuable resource (water),” Hall said. There have been about 200 horizontal wells drilled without a problem,

“The infrastructure is starting to be built, and I think we are heading in the right direction.” - State Rep. Dave Hall

he added. “It seems like the oil industry is going after the easy wells first and leasing other land,” Hall said. “The infrastructure is starting to be built, and I think we are heading in the right direction. I think the industry will grow for many years to come.” Hall said there is a lot of shale under the state, and more oil and gas will be able to be extracted when technology improves. While he believes the industry will grow, Hall said he also thinks technological innovations will lead to new jobs and help improve the state’s economy, and entrepreneurs will be leading the way. “A lot of Ohio companies are providing services to local and global corporations,” Hall said. “There’s a greater opportunity to sell products when a company drills elsewhere. “It’s just not Ohio anymore.”

INDUSTRIAL TLoicCehnisleld








10880 Lynchburg Rd. Kensington 330-894-2848




Open Monday to Friday, 8 AM to 5 PM

Dix Communications - Gas & Oil

September 2013 Edition



Your Land Services Specialist:

• 100+ Trucks with GPS Tracking • Drug & Smoke Free Workplace • LEAN Business Practices • Sustainable Initiatives • “SAFETY” Stars Award • 25 + Years Experience Working in Oil/Gas Industry

• Hydro Seeding and Erosion Control • Site Reclamation and Landscaping • Clearing and Mowing of all types • Excavation and Grading • Site Monitoring

Four Branch Location

Contacts: Call or Text

Jay Kitzmiller - 330.353.3555 Todd Pugh 330.353.1001

Youngstown ~ Canton ~ Akron ~ Louisville



Gas & Oil

September 2013 Edition - Dix Communications

Southern Zone Edition

Bluegrass Pipeline launches community grant program


luegrass Pipeline has announced its “Bluegrass Pipeline Community Grant Program” to identify and help fund projects that directly benefit the counties traversed by the pipeline project in Kentucky, Ohio and Pennsylvania. The first area Bluegrass Pipeline is promoting within this grant program would benefit projects that help first responders and emergency response organizations. “We certainly could use this because there is always a need to upgrade or replace equipment such as protective gear, radio equipment and vehicles,” said Fairfield County Sheriff Dave Phalen in Ohio. “This is a fantastic program for communities along the route and we’re encouraged by the other economic benefits this project is bringing, including jobs and additional dollars into our county.” Grants up to $25,000 per year for an organization will be awarded based on community need in other areas ranging from youth and senior services to education programs and enrichment of wildlife habitat. Bluegrass Pipeline has committed to putting safety, environmental stewardship and community support at the heart of its operations.

“This is a fantastic program for communities along the route...”

- Fairfield Co. Sheriff Dave Phalen



72 MONTHS Now’s the time to save big on a Massey Ferguson® tractor. Wether you need a compact tractor for a small farm, or an all-out utility tractor for a landscaping or construction business, we have the performance, comfort and durability you need at the price you want. To learn more visit us soon or

We Accept Trades We Accept Trades



White's Farm Supply 5828 Waterloo Rd. 5828 Waterloo Rd. White's Farm Supply Atwater, OH 44201 Atwater, OH 44201 5828 Waterloo Rd. Atwater, OH 44201 330-947-2162

First responders and other organizations can download an application from beginning Oct. 1, 2013. Grants submitted by Oct. 31 will be considered for awards by Dec. 15. Applications must be for projects within counties that host Bluegrass Pipeline and the project must start within 12 months of receiving funding. The proposed Bluegrass Pipeline would transport natural gas liquids (NGLs) such as propane, butane, ethane and natural gasoline, which are used in home heating and cooking, motor fuels, plastics production and industrial energy. More than half of the proposed 1,100 mile route will consist of existing pipeline that will be converted to become part of Bluegrass Pipeline. Two experienced pipeline companies, Williams and Boardwalk Pipeline Partners, are working together on the project, which is in the early stages of development. In addition to gathering input from the public by hosting opening houses, the project team is currently working on surveys, regulatory approvals, permitting and right-ofway acquisition. More information and a map of the proposed route can be viewed at




Everything homegrown or homemade.

Watch for us on the big electric sign at Furey’s Wheel World in Malvern

Dix Communications - Gas & Oil

September 2013 Edition


Connolly, Hillyer, Lindsay & Ong, Inc.



Attorneys and Counselors at Law Since 1964




Brad L. Hillyer • Shawn P. Lindsay • James J. Ong Brett H. Hillyer

Oil and Gas Lease?


Get your best deal Call Brad Hillyer before you sign!



Over 30 years of oil and gas experience. "We do oil and gas title searches, correct titles, remove old leases, pipeline agreements, well plats and permitting”


201 N. Main St., P.O. Box 272 • Uhrichsville, Ohio 44683

(740) 922-4161 • (740) 922-2229 Fax

THIS IS PROFESSIONAL-GRADE ENGINEERING Trucks! Trucks!Trucks! Gas • Diesel • 1 Ton • 3/4 Ton Longbed • Shortbed • Crew Cab Full Size • Medium Size

Whitesides Has A Truck For You!

Ph: 432-2347 or 1-800-887-0934

Ask about our

Credit Approval



1051 Southgate Parkway Cambridge, OH 10175287



Gas & Oil

September 2013 Edition - Dix Communications

Southern Zone Edition

What’s all the fuss about buying and selling mineral rights?


f you are a land owner in Eastern Ohio or West Virginia that owns mineral rights under your land, chances are you have received letters from companies inquiring about purchasing your mineral rights. The letters vary, but the pitch is generally the same, i.e., sell your mineral rights for cash in hand today. Many owners, allured by the promise of easy money, may jump at this chance to profit, but may not always understand what it even means to sell their mineral rights or how to accurately assess a potential deal. The concept of selling mineral and royalty rights can be confusing. As with any business transaction, there are pros and cons to selling. This article is intended to shed light on the process of selling your mineral rights and how the implications of doing so can affect you and your family. In an effort to try and clarify how selling mineral rights plays out in real life, let’s look at the following scenario. An Ohio land owner, (we will call him Mr. John Smith) owns 200 acres of land with the mineral rights in Guernsey County, Oxford Township, Ohio. Two years ago, Mr. Smith signed an oil and gas lease with XYZ Oil Company, giving them the right to drill on his 200 acres for 5 years with a 5-year option to extend the primary term. Mr. Smith was paid a cash bonus of $300 per acre and negotiated a 15% royalty on the lease. Now, two years have passed and no drilling has occurred. What are Mr. Smith’s options? Mr. Smith has been receiving letters in the mail from a number of companies, soliciting him to sell his oil and gas mineral rights to them. He is unsure about whether he should, but the idea of taking cash in hand today has a certain amount of appeal. Below are two possible scenarios outlining Mr. Smith’s options at this point. • Option 1: Mr. Smith has the option to wait and hope for XYZ Oil to permit and drill a well. If the well is successful, Mr. Smith would benefit from his share of the 15% royalty in relation to how many acres he has in the drilling unit. Typically a drilling unit will be 640 acres. These payments would be in the form of royalty checks and would continue for as long as the well produced. These checks can supplement what Mr. Smith does for a living and provide security for him and his family. In this scenario though, there are a few things Mr. Smith does not have control over. First, Mr. Smith cannot control the timing or occurrence of the drilling. Technically, XYZ Oil has 8 more years remaining on the lease he signed. For XYZ, the timing of drilling is effected by current commodity prices vs. the cost of drilling a well, existing pipeline infrastructure, drilling capital available and shale drilling expertise, to name a few.

Next, Mr. Smith cannot predict whether the drilling on his property will result in a productive or a non-productive well. Geological rock properties, thickness of rock, faulting and organic content all play a part in determining an area’s potential. The geology can vary from township to township, and even section by section. In light of this, Mr. Smith begins to explore the idea of taking cash in hand today, as opposed to waiting and banking on things outside of his control. Mr. Smith wonders how he would go about making that transaction, and most of all, if that is a prudent business decision. • Option 2: Mr. Smith has the option of selling a portion, or all of his mineral rights, in order to eliminate his level of risk over issues he cannot control. He recognizes that by its very nature, the oil and gas industry holds a high degree of uncertainty and after weighing all the risks and rewards, he may choose what feels like to him is the surest option. What are the pros and cons to selling? The pro under the selling scenario is that he reduces his risk of


Austin Eudaly, Flatiron Energy

XYZ Oil drilling a poor well on his property, or not drilling at all. He also reduces the risk of the oil and gas industry slowing down in the future or a significant drop in commodity prices. Mr. Smith may put some of this money towards his children’s or grandchildren’s college education or buy the retirement property he always envisioned. The potential downside to cashing out is that if XYZ Oil does drill a prolific well on his property in the years to come, he may have been able to get more money in the long run by holding onto all of his minerals. How much money depends on several factors: future commodity prices and the overall quality of the well’s production play a major role. Additionally, royalty income is taxed as regular income, so the future income tax rates that Washington sets will have a big effect on how much take home Mr. Smith will receive through the years. So, Mr. Smith is now left with three possible choices—a) he can retain all of his mineral rights and wait to see what becomes of the outcome, b) he can decide to hedge his bet, and sell a portion of his mineral rights, or c) he can take the offer to sell all of his mineral rights and reap the full cash benefit. What factors should be considered in this decision? Mr. Smith’s financial situation, general life stage and risk tolerance all can play a part into which option he might choose. If Mr. Smith is 35 years old, has few financial needs and has a high tolerance for risk, he may choose to retain 100% of his mineral rights and wait it out to see what happens with drilling.

Dix Communications - Gas & Oil

Why are mineral acquisition companies out buying in the area? As of August 1, 2013, around 95% of properties in the Eastern Ohio or northern West Virginia region are either subject to an oil and gas lease signed in the past few years or are held by production (HBP) from an older oil and gas well. A mineral acquisition company may decide to pool money together to enter into an area like the Utica Shale or Marcellus Shale, to risk their money to purchase non-producing oil and gas mineral rights in hopes that one day drilling will occur and they might see a return on their investment. Generally, a mineral acquisition company will want to buy multiple mineral tracts across a trend, in order to “spread out” its risk, knowing that in the end it will spend

• We Carry accessories for Polaris Ranger, Polaris RZR, Kawasaki Mule, Kawasaki Teryx, John Deere Gator, Kubota RTV, Yamaha Rhino, Arctic Cat Prowler, Arctic Cat WildCat, Can Am Commander and More • Huge selection of windshields, roofs, winches, plows, hunting accessories, mirrors, performance parts, tires and wheels, lights, and much more • Fast and Free shipping on all orders over $250


If Mr. Smith is middle aged, with financial obligations, and does not like the idea of the risk associated in waiting for drilling to occur, he may consider selling a portion of his minerals. By doing this, he receives a significant profit, but also retains a portion of his rights in order to “keep some skin in the game”. Lastly, if Mr. Smith is over the age of 70 and has no interest in waiting around to see what will happen with future drilling and commodity prices, or feels uncertainty in the fluctuating market, he may consider selling all of his mineral rights. In the end, Mr. Smith is wise to weigh his options carefully based on his own personal situation, leading him to the best decision for him and his family, which can give him peace of mind at the end of the day.

• UTV Headquarters is a leading source for all UTV parts and accessories

• Headquarters are in Ohio

September 2013 Edition



Enter at Checkout. Exp. 12/31/13


Gas & Oil

September 2013 Edition - Dix Communications

Southern Zone Edition

spend their money. money on both winners and losers. An acquisition group may also choose to purchase already producing mineral interests, as this can be less risky than buying nonproducing mineral rights. Typically, to purchase producing minerals, a company will pay a lump sum payout to the landowner, based on the current monthly royalty checks received. Who are the mineral acquisition companies? There are several groups in the Utica Shale and Marcellus Shale actively looking to buy. These groups fall into two categories: 1) mineral brokerage companies, referred to here as, “brokers”; and 2) mineral acquisition companies, also known as “end buyers.” The broker’s goal is to obtain an agreement with a mineral owner at a pre-determined price, in hopes of selling that agreement for a profit. For mineral owners that wish to sell, a good broker can be a valuable connection to an end buyer group that otherwise could not have been made. On the flip side, there are brokers who make impressive promises, but may not in the end, be able to deliver. These brokers can drive mineral rights prices up in an area, but may not actually have the cash to close a deal. Next, there are the mineral acquisition companies that are “end buyers”. These are groups with the cash available to close on mineral transactions. They may have several millions of dollars raised specifically for the acquisition of mineral rights in a certain area. Each company may have a different target area where they wish to

How does the actual selling process work? If a mineral owner decides to sell his or her mineral rights, the following steps describe the typical process for that transaction to occur. First, the land owner and mineral acquisition company would negotiate a price. This price is usually calculated on a price per “net mineral acre” that is being sold. For example, a land owner that has 200 acres and sells an undivided 50% of his mineral rights would be selling 100 “net mineral acres”. The owner would then retain the other 50% of their minerals. A company’s cash offer can vary depending on several factors, which include the royalty percentage on the lease, term of lease, operator, proximity to successful wells, proximity to existing pipelines and the estimated ultimate recovery (EUR) of a well. For example, a tract that is held by production (HBP) from a shallow well with a 12.5% royalty that is far from pipelines would not be as valuable as a tract with a newer lease and 20% royalty that has a successful well producing a mile down the road. In some areas, a company may not have any interest at all in purchasing mineral rights if the property is too far away from the hub of activity or is inaccessible, due to pipeline constraints. After evaluating these factors, a mineral acquisition company will extend a cash offer to a land owner and if accepted, a purchase and sale agreement will be signed to move the deal forward.

Well Pad Liner American gas. American jobs. 100% American-made liner. Some companies import materials and geomembranes to fabricate their liners. But every single aspect of the PIG Well Pad Liner is red, white and blue — our raw materials, lamination, fabrication, installation and even recycling processes are all 100% American.


Keep liquids contained and workers on their feet. Top-quality manufacturing makes top-quality products. The PIG Well Pad Liner (patent pending) is the only containment product that’s been tested and certified as a high-traction surface that can reduce slips and falls.

For more information, call toll-free

855-PIG-LINER (744-5463) •

New Pig Energy 10169752

Dix Communications - Gas & Oil

A Purchase and Sale Agreement (PSA) contract will state the price being paid per net mineral acre and the amount of time that the mineral buying company has to complete its due diligence. Usually, the time frame ranges between 4-8 weeks. On larger transactions, a mineral owner may want to ask for up front “earnest money”, or a down payment that is non-refundable to enter into the agreement. This insures the land owner that the mineral acquisition company means business. Once title has been verified and approved by the buyer, the parties will move to a closing. At closing, the mineral owner will sign an Oil & Gas Mineral Deed in exchange for a check or bank wire. This process is best taken care of at a reputable bank in front of an Ohio public notary. The Mineral Deed will then be filed at the courthouse and ownership changed over. An oil and gas mineral rights sale will not affect the water rights, coal rights, gravel rights, pipeline rights or the surface use to a property. Are their tax advantages to selling mineral rights? There are a few tax advantages to selling mineral rights that land owners may not be aware of that are worth discussing: 1. Tax Savings: Taking advantage of the long term capital gains tax. As long as a land owner has owned their land for over a year, the sale of mineral rights is taxed as a long term capital gain; whereas, lease bonuses and royalty payments are taxed at the individual’s regular income tax rate. 2. Paying no taxes at all: “10-31 Like Kind Exchanges.” When a mineral owner sells mineral rights, the transaction is classified as a sale of real estate. Under today’s tax laws, the proceeds from this sale can qualify to be used in what is called, a “10-31 like kind exchange.” Here is how that works, using our earlier example. Let’s say Mr. Smith sells 50% of his 200 mineral acres (or 100 net mineral acres) for a substantial amount of cash. Rather than pay the capital gain tax on the money from the sale, Mr. Smith is able to “roll the money” into the purchase of another piece of “like kind” real estate. Mr. Smith is not taxed anything at the end of the year on the money he made from the mineral sale, since it was used to purchase additional real estate. Mr. Smith could, for instance, take all of the money from the sale



to purchase a retirement home in Florida and therefore, does not pay any tax from the money he made from the sale of his mineral rights. A 10-31 like kind exchange can be a complicated concept to understand, but the tax advantages to this scenario can be considerable. In matters such as these, it is always important to consult a professional tax advisor or financial consultant to help understand the do’s and don’ts of the process. One of the nation’s leading 10-31 like kind exchange experts, Tracey Wilson, is Vice President of the Investment Property Exchange Service Inc. (IPX 10-31) that has a local office in Columbus, Ohio. Mr. Wilson had the following to say about selling oil and gas mineral rights and the implications of completing a 10-31 exchange, “When anyone sells real property – real estate, oil & gas, water rights, mineral rights, etc. – they may have a profit, or a capital gain. And today’s (2013) capital gains tax rates are significantly higher than they were last year. The only way to defer those capital gains taxes is to ‘roll the gain over’ into some other real estate – and they must do so using Section 10-31 of the Internal Revenue Code, and they must have a Qualified Intermediary to complete the process.” Mr. Wilson and his company are the nation’s largest Qualified Intermediary and complete several hundred 10-31 like kind exchanges each year. Can I hear from actual Ohio residents that have recently sold mineral rights or decided not to sell mineral rights to hear their feedback?

Specializing in


AGRICULTURAL AND EQUINE FREE Estimates 330.739.4500 •Hi Tensile •Board Rail •Non-Climb •Vinyl Kote •Chain Link •Woven Wire 10128266

Now Available Clearing & Dozer Work

September 2013 Edition

• Silt Fencing • Netting • Matting • Caution Fence


Gas & Oil

September 2013 Edition - Dix Communications

Southern Zone Edition

David Taylor, a native of Belmont County, who owns 80 acres of land that is held by production (HBP) from a shallow well, recently sold 100% of his mineral rights. When asked why he had decided to sell, Mr. Taylor said “I have bought several sugar plums, having dealt with different oil companies. My current lease paid me $5 per acre and 12.5% royalty (the minimum allowed by law). My producing well paid me less than $200 in 2012 … this has made me less than happy. An offer was made to buy all of my oil and gas rights. After waiting seven years for that ‘big money,’, it was time to re-evaluate my situation. Being 78 years of age, I would rather have money in my hand than in the bush.” When asked about the company he dealt with, and if he would recommend them, Mr. Taylor said “Several companies had contacted me, most with a very nice proposal that might pay me in 90-120 days, or longer, at their choice. Flatiron Energy Partners offered a reasonable price and paid very promptly. No other offer was made to compare at all.” Mrs. J. Fisher of Carroll County owns 35 acres of mineral rights and recently decided to hold on to her minerals when she received an offer to sell. When asked why she decided to sit tight, Mrs. Fisher said “Carroll County is currently the hot spot for drilling. There is a rig drilling 2 miles down the road from me, so I feel I will get drilled in the next year or two. I know there’s oil down there.” Robert “Bobby” Shugert owns property in Guernsey County, Belmont County, Harrison County and Washington County, all in Ohio.

Growing for over 65 years!

Buy Direct from the Grower and Save $

330-866-5521 or Toll Free 800-521-7328 Commercial or Residential Planting Jobs, Wholesale Christmas trees and B&B Evergreens, We are the Evergreen Experts!

Mr. Shugert sees the tax benefits in the 10-31 “like kind exchange” scenario . Mr. Shugert said, “We look at the tax savings and financial security of selling oil and gas mineral rights now and doing a 10-31 exchange, versus the potential of when, or if acreage will be included in a drilling unit. If you end up getting drilled, the total estimated recovery and future tax rate on your royalties are two factors that are currently unknown that will determine if selling mineral rights now is prudent.” Jim Yoder of Belmont County, Ohio also recently decided to sell his 73 acres of mineral rights. When asked why, he said, “I am Amish and a main concern for me is the amount of truck traffic that is going to occur in the coming years if the Utica Shale drilling comes in. The roads may not be safe and all the racket will not be good. I plan on using the money from the sale of my minerals to buy a farm in an area that will not be so loud and crowded with trucks.” Without a doubt, it is an exciting time to live in Eastern Ohio or West Virginia where the Utica Shale and Marcellus Shale have the promise to infuse life and pump money into the local economies. Hopefully, this article has helped you better understand what it means to sell mineral rights and has helped you think through whether this is an option worth your consideration. In the end, there really should be no fuss about it; instead, only a reasoned, informed decision that works best for you. Austin Eudaly is the VP of Acquisitions for the mineral rights acquisition company, Flatiron Energy Partners, LLC (Flatiron). Flatiron is based in Dallas, TX and has an office locally in St. Clairsville, OH, at 47443 National Road, Suite 2, St. Clairsville, OH 43950 located at Exit 215 & I-70 next to the “Big Green Barn”. Flatiron is actively purchasing oil and gas mineral rights in the Utica Shale and Marcellus Shale areas with a primary focus in: Guernsey County, Noble County, Washington County, Belmont County, Monroe County, Harrison County and Carroll County, OH, Marshall County, Wetzel County, Tyler County, Ritchie County, Doddridge County and Harrison County, WV and Washington County, Greene County, PA. Mr. Eudaly can be reached at Flatiron’s Ohio office at (740) 449-2164, or cell (817) 683-4777 or email, Flatiron website:

LOCAL SALES & SERVICE FOR DIRECTV Residential Commercial Apartments

12 Months of Privacy for your sites 10148579 10138841


New Philadelphia

Dix Communications - Gas & Oil

September 2013 Edition


J&M Carpentry


"Generations of Amish craftwork coupled with modern, professional site management”

● Agricultural ● Residential

● Commercial


Any Size All Custom ● Pole Barns ● Garages ● Barns ● Riding Arenas "The quality you want for your project” ● Stables ● Horse Barns ● Outbuildings ● Decks


Estimates 330.231.0125

Fredricksburg, Ohio 44627


Gas & Oil

September 2013 Edition - Dix Communications

Southern Zone Edition

Cambridge business and executives lauded by Ohio Assoc. of Community Colleges Judie Perkowski, Dix Communications


nificant advocates for Zane State. When the company is in a hiring mode, they turn to the college for the skilled and educated technicians they need. Basic Systems’ owners have stated that “the success of [their] company is rooted in the success of Zane State College.” Approximately 20 percent of the company’s current workforce graduated from Zane State and an estimated 40 percent of their employees received training from the college. Basic Systems, Inc., received the OACC Outstanding Business Partnership Award. Nominated for the Maureen C. Grady Award for Special Achievement: John Matesich’s outstanding service to Zane State College as trustee has continued for more than 20 years. As a college trustee from 1991-1996, foundation director since 2004, current chair of the foundation board, and philanthropist. Additionally, Matesich co-chairs the college’s “Building a Vibrant Community” major gifts campaign. The Ohio Association for Community Colleges supports the mission of the state’s 23 community colleges to provide programming in technical education, lower-division baccalaureate education, developmental education, and continuing education in our local communities.

ane State College alumnus and friends were recognized by the Ohio Association of Community Colleges for their sustained and significant contributions that support the college’s success at the Cambridge and Zanesville institutions and surrounding communities. Dr. Paul Brown, president of Zane State College, nominated the four recipients of the OACC’s 2013 Excellence Awards presented at the organization’s annual banquet on May 30. Nominated for the Terry M. Thomas Friends of Community Colleges Award: Norm Shade, president, chairman and coowner of ACI Services, Inc., has invested in naming a classroom in the Zane State’s Education and Training Center in Cambridge. Shade is an advisor to the college’s gas and oil engineering technology program. He says he appreciates the real value in the programs offered by the college, and believes his company has a responsibility to reinvest in the community. Presented the OACC Distinguished Alumnus Award: Gene Oliver, a 1980 graduate of Muskingum Area Technical College with an associate degree in architecture and building construction. In 1981, Oliver went to work for Basic Systems, Inc., an engineering and consulting firm that serves the global natural gas industry. During his 32-year tenure he rapidly advanced from designer to project coordinator, project manager, senior project manager, to his present position as vice president and co-owner of the corporation. Oliver and Basic Systems President Tom Stemmer are sig-

Floorhand Floor•hand noun : Laborer responsible for the overall maintenance of the rig.

Hydraulic Cylinders • Mobile Wet Lines Hoses & Fittings • Machining & Fabrication Custom Designed Diesel Powered Hydraulic Units Testing, Diagnostics & Repair of Cylinders Pumps & Motors We Feature



12317 Dover Road • Apple Creek, Ohio 44606 Phone: 330-857-0001 • Fax: 330-857-2446

50’s Jukeboxes Buy • Sell • Repair



Agricultural & Industrial Service & Repair

Dix Communications - Gas & Oil



September 2013 Edition




New & Used Truck Sales - Leasing Service - Parts - Body Work Not just highway trucks! We also service RV’s, school busses, fire trucks, all types of trailers and specialty vehicles.

Canton, OH

Young Freightliner & Isuzu

Sales, Parts & Service


Young Volvo

Sales, Leasing, Parts & Service


JayMac Body & Frame Body work, alignment & four large paint booths


Young Trailer Repair Trailer repair and rehabilitation

330-479-8992 330-343-5708 Special Vermeer Financing 5219 Deis Hill • Dover, OH 44622




Gas & Oil

September 2013 Edition - Dix Communications

Southern Zone Edition

What’s the Difference between independent contractors and employees? David Shallengerger, CPA


mployers in the oil and gas industry have a long history of hiring workers as independent contractors rather than employees. Ordinarily, these contractors are paid flat day rates rather than the hourly wage which is paid to employees. However, these practices are now being scrutinized making it imperative that businesses review their employee classifications to ensure compliance. The U.S. Department of Labor’s (DOL) Marcellus Shale Initiative is now in its second year, and one area of focus is on worker classification. While the department is currently looking at companies in the Marcellus region, it is believed that the worker classification reviews will spread to other areas where shale plays are active. Proper Classification Courts consider many facts when determining whether a worker is an independent contractor or an employee, and these are reviewed on a case-by-case basis. However, there are three main categories under common law that are weighed, all of which are meant to determine the degree of control and independence in the work relationship. The categories tested are as follows: • Behavioral. This looks at whether or not the company has the right to control what the worker does how the worker performs his service. • Financial. The facts examined here revolve around the economics of the relationship including who dictates how and when the worker is paid. It also looks at whether or not a worker has to provide tools and supplies. • Type and Nature of the Relationship. This is the relationship between a company and a worker such as whether or not there is a written contract between the parties and the permanency of the relationship. Each of these factors needs to be considered when determining if a business has an employee or an independent contractor. Employee Costs As a method to control costs, the independent contractor model is popular in the industry. It’s easier to budget a set amount compared to the uncertainty that can come from having employees on payroll. Reclassifying workers as employees would cost employers, and the industry, in terms of Medicare and Social Security taxes as well as health and benefits compensation. Not to mention the additional administrative costs

that would be incurred to simply add these workers to payrolls. The DOL wants to make sure workers are paid fairly especially those who are eligible for overtime as well as other benefits. However, businesses that misclassify employees will ultimately also be responsible for the employment taxes for those workers. It’s important to note that other agencies are also on the lookout for worker misclassification including the Internal Revenue Service, Ohio Bureau of Workers Compensation and Ohio Jobs and Family. All of these organizations have the ability to make potentially significant claims against employers. Now is not the time to do things as they’ve always been done. Proactively review worker classifications before a government agency comes knocking at the door. David Shallenberger, CPA, is director of oil & gas services at Rea & Associates, Inc. He can be reached at 330.264.0791 or


PROWLER 500 HDX Color Options

500 Color Options


330-365-9022 241 16th St SW • New Philadelphia, OH 44663

Dix Communications - Gas & Oil

September 2013 Edition


Calling all: Industrial, Manufacturing, technical, engineering and Gas and Oil employers!

ReseRve yOuR bOOtH tOday!

October 3, 2013 2:00 pm - 6:00 pm Pritchard-Laughlin Civic Center 7033 Glenn Highway, Cambridge, OH 43725

Call 1-888-296-9650 ext. 4138 or go online to to register your company today! Brought to you by: The Daily Jeffersonian, Ohio Gas and Oil magazine, Dix Communications and The Community Job Club



Gas & Oil

September 2013 Edition - Dix Communications

Southern Zone Edition

The house that oil built Greg Parks, Dix Communications


ver since the first hole was drilled into the Earth and oil came out, Eastern Ohio has witnessed the booms and busts of this risky endeavor, in which — it has been said — the greatest single element is the man willing to

take a chance. This is the story of one such fellow. In the process, he got rich. And he shared his fortune with his community. Sort of an early precursor to the humorous fictional legacy of Jed Clampett — although he certainly was no hillbilly — was one Charles F. Gross, whose English Tudor mansion still stands on the north side of Cambridge. It is a monument to — depending on one’s perspective — either the triumphs or excesses of big oil money. The story of Mr. Gross, who was originally from Elba in Washington County, is engrossing, to say the least. It was researched by Mr. Richard (Dick) Buchsieb, of Cambridge, for an article that appeared in 1999 in The Daily & Sunday Jeffersonian and from which some of the information in this column was taken. Incidentally, Mr. Buchsieb lives on North Seventh Street a stone’s throw from the old mansion. Born in 1868, Mr. Gross began working in the coal fields of Ohio and West Virginia. At the age of 21 in 1889, he ventured to Oklahoma, 18 years before it became a state. Charles, his brother Ernest of Alliance, brother-in-law William

‘My formula for success? Rise early. Work late. Strike oil.’ — J. Paul Getty (1892-1976)

Carnill of Columbus and two others managed to put together holdings of thousands of acres in Oklahoma and — doing business as The Hill Oil & Gas Co. of Columbus — in 1916 sold the land for $12,000,000. In 2013 dollars, that would be $255,319,148.94, according to an inflation calculator at the website Reported the June 20, 1916, Jeffersonian, “The Hill Oil & Gas Co., with extensive holdings in Oklahoma and Texas, and in which Charles F. Goss of Clark Street has one-fifth interest, sold holdings in Oklahoma consisting of nearly 6,000 acres and having daily production of 20,000 barrels ...” The land was between Tulsa and Oklahoma City. In the June 1916 edition of Petroleum Age (Vol. 3, No. 6), it was reported that the deal “caused the industry to gasp.” The trade journal said it was “ ... the largest transaction in Mid-Continent oil history” and “its consummation stamps Mr. J.S. Cosden (of Tulsa) as a bold and aggressive trader.” The journal continued, “Producers (in Oklahoma) after recovering from their astonishment are inclined to believe that Mr. Cosden made a good bargain. As one of them expressed it, the price may seem high, but Mr. Cosden could divide the 5,400 acres

Dix Communications - Gas & Oil

acquired into 80-acre tracts and sell them off at a handsome profit. “The Hill properties have the distinct advantage of being solid acreage and therefore protected against being drained by offset wells. The properties are producing around 20,000 barrels daily at the present time and are provided with the finest and most up to date electric equipment. “It has been no secret that the Hill Oil & Gas Co. properties were on the market if anyone wanted to pay the $12,000,000 price set upon them. William Carnill, of Columbus, Ohio, and Percy Magee, of Tulsa, Okla., the owners, refused consistently to give options or consider proposition to put the properties into the stock market ... Messrs. Carnill and Magee join the ranks of oil millionaires who were working under the beam in Oklahoma less than 10 years ago and their many friends throughout the state are glad of the good fortune that has come as a reward of hard work and foresight.” As for Mr. Gross, before the end of 1916, he had bought all the lots between Sixth and Seventh streets, and between Taylor Avenue and Upland Road in Cambridge. This area faced the Taylor Mansion on the North and the Casey home on the South, both notable architecturally in their own right. Lots in the Upland Addition were restricted to residences only, and the site provided an ideal setting for the estate envisioned by Mr. Gross and his wife, Harriett. The Gross Mansion, which was completed in 1921, is a perfect example of English Tudor revival architecture, complete with park-like surroundings, winding carriage lane, random planting

September 2013 Edition


of trees, and extensive landscaping. The object was to provide a pastoral setting for this magnificent mansion. No home on this scale was to be found in Eastern Ohio, particularly not in a city the size of Cambridge. No detail was left undone in construction of the mansion. Tile floors, walnut paneling, carved stone fireplaces, and a central paneled stairway with carved newell post are just some of the features to be found in the home. The obituary of Mr. Gross in The Jeffersonian of Feb. 3, 1942, said: “Simplicity will mark rites for Charles Frederick Gross, 74, retired oil producer, banker, philanthropist and one of Cambridge’s most distinguished citizens ... Mr. Gross always maintained an abiding interest in Cambridge and the welfare of its institutions, giving generously to all worthy causes sponsored in the community. The extent of his benevolence was kept a closely guarded personal secret; however, they were more far-reaching than even his closest friends had knowledge of. “Mr. Gross was prominent and influential in banking circles. On Jan. 2, 1918, he was elected to the board of directors of the National Bank of Cambridge and ably served that institution in an official capacity until his death.” The Gross Mansion was sold to the Cambridge Area YMCA in 1958 by Harriett Gross Bates and Howell Bates. The YMCA eventually moved out, and in response to a spirited “Save the Mansion” campaign, the property was purchased by The Guernsey Bank, of Columbus. During the bank’s decade-plus ownership, thousands of dollars have been poured into it for upkeep and repair.The mansion is currently on the market, with an asking price in the neighborhood of $395,000.

Porosity Po•ros•i•ty noun : A measurement of the amount of pore space found in a formation. A formation can be highly porous but have low permeability if the pore spaces are not connected.

LRC Lance Repair Company


10188 Forty Corners Road Massillon, Ohio 44647

10110853 330-343-5708

Since 1962

72 mos - 0% interest for qualified buyers* 5219 Deis Hill Dover 44622 10130600

"Your Equipment Repair Specialist” Serving the Trucking and Heavy Equipment Industries By Providing Shop, Field, and On Site Lube Services

*Limited Time


Gas & Oil

September 2013 Edition - Dix Communications

Southern Zone Edition

Wooster Teacher Learns Valuable Lesson: Science Science Education Education Important Important to to the the Energy Energy Industry Industry


atthew Knight, a geology teacher at Wooster High School, attended a two-day teacher workshop hosted by the Ohio Oil and Gas Energy Education Program (OOGEEP) to learn how to engage and connect students to the energy industry through science education. The Teacher Workshop took place July 31 and Aug. 1 at Mahoning County Career and Technical Center in Canfield, Ohio. “OOGEEP established the Teacher Workshops to help teachers promote how science, technology, engineering and math (STEM) play into energy education and eventually into the workforce for young students who may consider careers in the oil and gas industry,” said Rhonda Reda, executive director of OOGEEP. “Ohio has a long history of drilling and producing oil and gas. Recent technologies have enabled the industry to explore and drill in many geological formations around the state.” In addition to Knight, other teachers from across the state attended the free workshop offered by OOGEEP. The teachers learned all aspects of energy production from formation to exploration, drilling to producing and processing to refining. The teachers also engaged in hands on experiments and internet activities. During the second day of the workshop, teachers toured Evets Oil and Gas Construction, a pipe fabrication company in Hubbard, and visited several wells drilled by Everflow Eastern Partners to view how wells had been completed and integrated into residential neighborhoods including one school. They also toured a well that was under construction by Everflow in Massillon and a brine disposal well in Beloit operated by Brineaway. At the end

Matthew Knight, c, a geology teacher at Wooster High School, works on an experiment with other teachers at the OOGEEP Teacher Workshop held in Canfield on July 31 and August 1.

of the workshop, teachers received resource materials, classroom supplies, lesson plans, DVDs, posters and documentation for CEU credits and an optional Ashland graduate credit. The workshop, accommodations and educational materials were funded by Ohio’s natural gas and crude oil producers as part of their public outreach initiatives. “OOGEEP is working hard to develop a trained workforce for the expanding oil and gas industry. And these teacher workshops are an invaluable tool that allows the industry to work with teachers and their students who may one day help develop, produce and supply our domestic energy needs,” adds Sarah Tipka, OOGEEP Board member, Education Committee Chair and oil and gas producer from A.W. Tipka Oil and Gas, Inc. The mission of OOGEEP is to facilitate educational, scholarship, safety and training programs; to promote public awareness about the industry; and to demonstrate to the general public the environmental, energy and economic benefits of Ohio’s independent natural gas and crude oil producers. OOGEEP is funded by Ohio’s natural gas and crude oil producers and does not utilize any taxpayer dollars. For more information on OOGEEP, visit

Dix Communications - Gas & Oil

September 2013 Edition

We’ve Got You Covered.

MERCY MEDICAL CENTER: Quality, Accessible and Affordable Care 1320 Mercy Drive N.W., Canton, OH 44708 • 330-489-1000 Award Winning Centers of Excellence • Mercy Heart Center • Emergency Services/Trauma Center • Emergency Chest Pain Center • Mercy Cancer Center • Mercy Stroke Center • Mercy Rehabilitation Services


r s -


e -





6200 Whipple Ave. N.W., North Canton, OH 125 Canton Road, Carrollton, OH 330-627-7641 STATCARE Immediate Care Center • STATCARE Immediate Care Center

1031 West High Ave., New Philadelphia, OH 330-365-5100 • STATCARE Immediate Care Center

• Laboratory & Radiology Services • Therapy Services (Adult and Pediatric) • Health Fitness Center/Sports Medicine • Occupational Medicine

• Laboratory & Radiology Services • Cardiac Diagnostics • Therapy Services (Adult and Pediatric) • Occupational Medicine


Work Health & Safety Services

(Breath Alcohol Testing (BAT), Urine Drug Screens, Pre-employment Physicals - Injury Management, Both DOT and NON)

• Laboratory & Radiology Services/CT Scan • Cardiac and Vascular Services • Therapy Services • Primary Care and Specialty Physicians • Occupational Medicine

Work Health & Safety Services

(Breath Alcohol Testing (BAT), Urine Drug Screens, Pre-employment Physicals - Injury Management, Both DOT and NON)

Work Health & Safety Services

(Breath Alcohol Testing (BAT), Urine Drug Screens, Pre-employment Physicals, Injury Management, Both DOT and NON DOT Physicals, Lifting evaluations, Audio Testing)

Call the listed numbers for a complete menu of services, hours of operation and to schedule appointments.



Gas & Oil

September 2013 Edition - Dix Communications

Southern Zone Edition

Marcellus Shale Coalition

to have leadership change A

fter nearly four years of leading the Marcellus Shale Coalition (MSC), CEO Kathryn Klaber, along with the organization’s executive board, have announced efforts to begin a nationwide search to identify the organization’s next leader. Klaber, selected to lead the newly formed organization at its inception in late 2009, will play a key role in this important transition for the MSC. “It has been an honor and a privilege to work alongside so many incredibly talented professionals from across the industry, as well as a truly dedicated staff, to realize energy production milestones and new opportunities for prosperity in our state, region and the nation,” said MSC CEO Kathryn Klaber. “Pennsylvania is now producing nearly 10 percent of the nation’s natural gas. Our industry’s work has been described as ‘revolutionary’ and ‘game-changing.’ The work of the MSC, collaborating with public officials, has helped create the climate for growth of an industry that has delivered on its promises to create American jobs, increase our energy security, while holding safety and environmental performance as paramount.” “Over the past several years, our industry has faced and collectively overcome a host of challenges. Katie’s resultsoriented leadership and proven ability to identify and collaboratively tackle these challenges has brought incredible value to our industry. And for that, along with her tireless efforts in building our organization from the ground up, as well as for her friendship, we are deeply grateful,” said MSC Chair Dave Spigelmyer. “From working with both the Rendell and Corbett administrations to modernize and strengthen the Commonwealth’s regulatory framework, to building a topnotch commu-

SPACE SPACE SPACE! Industrial Building for Rent

10,000 sq. ft., 14 ft. overhead doors, overhead crane, two JIB hoists, acres of parking or storage, no city tax, zoned industrial, Available September 2013 Contact owner, Robert Bossow 330 –671–2966

nity outreach and advocacy infrastructure, Katie’s vision has positioned the MSC well for the future. On behalf of the MSC’s 300 member companies, we thank Katie for her hard work and service to our industry. Katie will remain the leader of the MSC through our search, though we will certainly continue to seek her counsel beyond that time.” In her final months with the organization, Kathryn Klaber the MSC has asked its CEO to further engage MSC member companies and their employees on key policy issues for the industry, to evaluate the need for public outreach and education in the northeastern states without shale development, to advise on key benchmarks to complement the MSC’s robust Recommended Practices, and to continue to serve as a recognized industry leader and spokesperson. Ms. Klaber will be representing the MSC in key forums in Australia and London in the coming months as well as hosting the MSC’s third annual Shale Insight conference in Philadelphia on September 25-26. Added Klaber: “Over the next several months, and beyond, I am certain that the MSC will remain at the leading edge of the issues and opportunities associated with natural gas. I want to thank our entire membership, our current officers, Dave Spigelmyer, Randy Albert, Scott Roy and John Mollenkopf, our first board chair, Ray Walker, our board of directors, and our staff for their purposeful dedication to ensuring that we can be proud of the legacy we helped create for generations of Pennsylvanians.”

Authorized Full Servicing Dealer Briggs & Stratton, Tecumseh, Kohler, Kawasaki, Honda, Bad Boy Mowers, MTD

The Power Shop - SALES & SERVICE -

57197 County Road 9, West Lafayette, OH 43845 Visa & Mastercard accepted

8000 Gotham Road

.. Garrettsville, OH . 44231

Tom Mason Chad Nay 10164294

Phone: (740) 545-9011 Fax: (740) 545-9555 email: 10138684

Dix Communications - Gas & Oil

September 2013 Edition



Gas & Oil

September 2013 Edition - Dix Communications

Southern Zone Edition

Belmont College receives grant for training in gas/oil industry


welve Ohio institutions, including Belmont College in St. Clarsville, received $220,000 in Dominion Foundation Higher Education Grants during a recent presentation at the University of Akron’s Martin University Center. The grants focus on programs that will help prepare students for technical positions in Ohio’s growing energy production and other industries. The Dominion Foundation is the charitable arm of Dominion Resources, Dominion East Ohio’s parent company. “Dominion East Ohio has a long and proud tradition of providing natural gas services throughout the state,” Jeff Murphy, managing director, Commercial Operations, noted during the presentation luncheon. “We were an active participant in the first Appalachian natural gas boom of the early 1900s and are now providing competitive reliable gathering, transportation and processing services for Ohio producers in the new, 21st century natural gas boom. Ohio’s colleges and universities also provide an essential service to the natural gas renaissance. They are equipping our area workforce to maximize the

Pictured l-r, front row, Jeff Murphy, Dominion East Ohio’s Managing Director of Commercial Operations; Judy Sandstead, Belmont College Director of Program Development, Belmont College; Dirk DeCoy, Director of Industrial Trades and Contract Training, Belmont College; Back row, Edward Mowrer Operations Manager, Energy Institute, Belmont College; R.J. Konkoleski, Director of Development and External Affairs, Belmont College.

economic benefits and to ensure effective stewardship of these new energy supplies. Potentially even more significant, the talented innovators that study at Ohio’s colleges today will contribute to the growth of manufacturing, transportation and service sectors made possible by




#91602 “Toy Hauler”, sleeps 6, big garage, ramp door, generator rack, big slideout. LIST: $33,523




Queen bed, awning, generator, U-shaped dinette, TV & more! LIST: $69,957




LIST: $61,738


Double bunk slide-out, ONLY fiberglass, sleeps 7 Only 5100lbs. Priced $168 PER MO* to sell fast!



Mt. Pleasant St.


LIST: $30,523












Double bunk bed, booth dinette, much more!


$44,998 Bunkhouse FW, Tripleside, outside kitchen, a must see.





#90206 LIST: $20,400





Greenburg Rd





#89664 Bunkhouse with 2 slides, sleeps 7, 2 TV’s, booth dinette & much more. LIST: $107,059






1) $99/mo. 7.75% APR for 96 mos. 2) $109/mo. 5.49% APR for 120 mos. 3) $168/m0. 5.49% APR for 120 mo. 4) $209/mo. 5.49% for 114 mos. 5) $299/mo 5.49% APR for 144 mos. 6) $309/mo. APR for 180 mos. 7) $379/mo. 5.49% APR for 180 mos. 8) $515/mo. 5.49% APR for 180 mos. 9) $579/mo. for 240 mos. 10) $968/mo 5.49% for 240 mos. All Payments are based on 20% down and with approved credit. Factory provided RV photos and floor plans shown in this ad are for illustration purpose only. All RV prices are plus tax, title and fees, sale prices are not valid in combination with any other advertised special offers, rebates or discounts. All units are subject to prior sale. Offers not valid on prior sales. Prices and offers valid until Sept 30, 2013.




Rd. by


Mayfair Rd.

GENERAL (330) 896-8977 RV CENTER


Dix Communications - Gas & Oil

affordable, abundant local energy.” Belmont College received $20,000 from the Dominion Resources grants which will assist with purchasing equipment that will support and build student skills in a controlled environment welding lab. According to Dirk DeCoy, director of Industrial Trades and Contract Training at Belmont College, the grant will be used to purchase four TIG welders which will be installed in the College’s welding lab, which is currently being refurbished. “Our welding lab refurbishing project is now almost complete; the addition of the new welders will be installed in four of our 16 new weld booths” said Decoy. “Upon completion of the welding labs, we will have increased our ARC welding capacity by nearly 70 percent, giving us a total of 40 welding booths with ARC welding capabilities.” Belmont College has offered hands-on welding training for 35 years. The welding program offers students the option of a oneyear certificate or a two-year associate degree in welding technology, as well as specialized training in pipeline welding. Oftentimes graduates of the welding program seek employment in the coal or steel industry; however with the increase in pipefitters and construction in the oil and gas industry, graduates have more opportunities for immediate employment in the oil and gas industry.

September 2013 Edition









Take th Log Ho e me Tour! R

Sept. 13 & Sept.14 at Hochstetler Milling

Bring the whole family for a fun-filled weekend of activities, plus a self-guided auto tour of up to 10 beautiful log homes. • Free educational seminars on planning, as a hunting, fishing, or guest cabin. designing, financing, and building your log •Lumberjack competition including two-man home. crosscut sawing and axe throwing. • “Log Home University” by Rob Clutter of • Tour of log homes for a minimal charge with Log Home Living magazine proceeds going to the American Cancer Society • Exhibits of log home furniture & furnishings, • Barbequed chicken, homemade ice cream, wall decorations, doors & windows, cabinetry open-kettle apple butter, baked beans, kettle - everything to make your log home attractive. corn, and homemade Amish pies, cakes and • A small log cabin will be built on the premises assorted pastries. “Early Bird” breakfast Saturday and auctioned off at 4 p.m. Saturday. Perfect at 7 a.m. Don’t miss it! Hours: Friday, Sept. 13, 11a.m. - 7p.m. & Saturday, Sept. 14, 9a.m.-5p.m. Location: 552 Hwy. 95, 5 miles north of Loudonville and 1/2 mile east of the St.Rt.95 & 60 intersection on St.Rt.95. Questions, call 800-368-1015 or 419-368-0004.

For more information about Belmont College’s welding program contact Dirk DeCoy, director of Industrial Trades and Contract Training at 740-699-3867 or visit www.

“We Always Have Time For You”

648 Wheeling Ave., Suite B, Cambridge 439-1111 28 E. Main, New Concord 826-7557 Zanesville • (740) 454-6777 LLC Coshocton • (740) 622-7653 Dennison • (740) 229-7231 Lori Frank, Broker New Lexington • (740) 343-4161 • For more info on any Carol Goff listing text GUERNS to 96362


SEVERAL PROPERTIES FOR SALE OR LEASE DO YOU WANT TO BE THE NEXT TOP CHEF? Now's your chance with this hometown general store and restaurant. This is a turn key operation with a ton of potential. While the current owners are not open for dinner this place might be a priceless gem for the dinner crowd and the possibilities are galore! Equipment,Furniture and all supplies stay. MLS #3407314 $165,000 @ 8800 Chandlersville Rd. Contact Coleen Tiffner @ 680-0681 for more info.

Price d! ce e R du

DOWNTOWN LOCATION Corner of 209 & Wheeling Ave. This building offers 3780 SQ. FT. and a nice 2 Bedroom Apt on 2nd Floor.@ 758 Wheeling Ave. MLS # 3399343 $137,000 Call Howard Dennis @ 584-5649 for more details.

CAROL GOFF & ASSOCIATES OPERATES 6 OFFICES COVERING 10+ COUNTIES IN SOUTHEASTERN OHIO. We are a full service Real Estate company handling both buyers and sellers of residential, commercial, farms, acreage and investment properties. We also offer auctioneering services and appraisals.

Visit us at



Gas & Oil

September 2013 Edition - Dix Communications

Southern Zone Edition

Extension officials discuss shale activities in the region Judie Perkowski, Dix Communications


hat was supposed to be a visit to the local OSU Extension Office by officials of the Senior Ohio State University Leadership Tour, including Interim President Joseph Alutto, turned out to be a one-man show with the Vice President of Agriculture Bruce McPheron and Dean of The OSU College of Food, Agriculture and Environmental Sciences, as the lone representative from the group who met with Clif Little, associate professor, OSU Extension educator; Keith Smith, director of the OSU Extension office; Mike Lloyd, Little’s co-worker in Noble County; Extension Office staff and a handful of local property owners. The Old Washington Fairgrounds office was the last stop on the Tour before the group headed back to Columbus. Purpose of the Tour was to speak with the officials about the shale education programming offered by the Extension Office, if the information was helpful, and what kind of additional education would be beneficial. Little prepared a fact sheet about leasing farmland for gas and oil production in addition to other resources for information related to shale oil and gas, the Ohio Department of Natural Resources and the Ohio Environmental Protection Agency. Lloyd provided an update on shale activities in towns and townships in Guernsey County. Community representatives David Sayer, Betty Duché and Tony Yurina voices their concerns about several issues. Little talked about the many oil/gas related programs offered through the Extension Office. Duche, a trustee for Richland Township and a landowner, said trucks rolling up and down county roads 24 hours a day can be very unsettling. She is concerned about, not only the noise, but the damage to the roads. Lloyd said that the gas and oil companies are required to have a Road Use Management Agreement before they send one truck down the road. “There is a RUMA in place with the Carizzo Oil Co., which addresses maintenance of the roads during and after their business in the county is finished.” Yurina, who retired from a pipeline company, said he is concerned with pipeline placement and the impact on property. “Information I received from the Extension Office helped to educate me about the gas and oil industry,” he said. Sayer, retired from the Soil and Water Conservation District, said, “the Extension Office has been a big part of my life.” He offered his opinion about leases, contracts, pooling, access roads and pipeline safety — especially the proximity of the pipeline to residential areas.

McPheron thanked the Extension Office staff for arranging the meeting, and said that it is important for people to be able to rely on OSU Extension programs for accurate and timely information. For more information about the OSU Extension Office, call (740) 489-5300 or email

Shale noun A dense rock formed over millions of years from ancient sediments of decaying, organic material. Although geologists have known about the energy-potential of shale rock for generations, only within the past decade have these resources been considered economical to produce, thanks in large part to the advances in horizontal drilling and the application of the 60-year-old technology of hydraulic fracturing. Shale is known as a “source rock” because it is the source of oil and gas deposits that are contained in sandstone and carbonate formations from which oil and gas are normally produced.

Engineering, IT, & Technical Staffing Solutions Provider Putting America Back to Work!

Experienced In: Technical Staffing for Shale Oil and Gas 888-262-3226 Call Now! 14 Whitehall Drive Akron, Ohio 44278 888-262-3226

Dix Communications - Gas & Oil

September 2013 Edition



e y . l

octobER 2012 •

A FREE monthly PublicAtion

VISIT OHIOGO.COM Bruce McPheron, l, College of Food, Agriculture and Environmental Sciences, and Vice President of Agriculture at Ohio State University, paid a visit to the OSU Extension Office in Old Washington last week to talk to Guernsey County residents about information the Extension Office is providing communities about gas and oil development. Tony Yurina, r, retired pipeline worker and David Sayer, retired from the Soil and Water Conservation District, voiced their concerns about the many phases of energy development in rural areas. Not pictured, but also present was Richland Township Trustee Betty Duche´.

“Where All Your RV Needs Are Met!” Onsite job trailer & RV experience. Servicing the local Gas & Oil Industry. “Our mobile service truck will come to you when you need us!”



“Like” Us On



Gas & Oil

September 2013 Edition - Dix Communications

Southern Zone Edition

Wayne County

seeing ancillary development

Bobby Warren, Dix Communications


he recent increase in gas and oil development led to speculation that Wayne County, a long-time player in traditional wells, would see a lot of action and royalty payments. The fans were flamed in 2010 and 2011 when landmen visited the Wayne County Recorder’s Office researching deed and lease records. Some property owners were signing agreements to lease land at $20 an acre and this caused some concern. Eventually, groups like the Mohican Basin Land Owners Association formed to protect property and to potentially negotiate a better deal by having a large number of acres in the group. Then, by the summer of 2012, Devon Energy Production became the first company to get a permit to drill a horizontal, hydraulic-fractured well in Wayne County. It had also received permits and built wells in Ashland and Medina counties and secured a permit in Holmes County. The results were not what Devon had hoped for, and it ceased operating here.

Specializing in… Equipment & Flatbed Horse & Livestock Enclosed Cargo Utility & Landscape Dump & Aluminum

While the Utica Shale wells did not produce at satisfactory levels, not all was lost for Wayne County businesses connected with the industry. Much of the new production is east of Wayne County, and producers and suppliers, like Ken Miller Supply Co. and J.R. Smail Co., have seen business increase by working with the larger exploration and drilling companies who are working there. Bob Gralinksi, general manager for Scot Industries, recently told the Wayne County Tax Incentive Review Council, his company is looking to get into the business as well. The company recently received certification from the American Petroleum Institute, and it is waiting for its steel provider to become API certified, too. Once all of the certifications are in place, Gralinski said there will be opportunities to work with supply companies and provide Continued on pg. 72

• Complete Oil Field Services • Frac Support • Completion support

Why trust your cargo to anything less than USA quality?

• General Excavation • Spill Trailer & Shower Trailer Rental 4188 S.R. 14 Ravenna, OH 44266


• Sales • Service • Installation

• Repairs • Parts • Supplies

Ph/Fax: 330.698.1555 Mon.-Fri.: 8AM to 5PM; Sat. till Noon

Office: 330-325-7177 Fax: 330-325-0263 Cell: 330-697-1783



Wade Pol, President

#4, Dix Communications - Gas & Oil Artist: Betty Young

September 2013 Edition

Contact Jason Shankleton: 330-805-1733 I


Gas & Oil

September 2013 Edition - Dix Communications

“WAYNE COUNTY� from pg. 70 them with heat-treated pipes. The certification ensures the pipes meet industry standards, which is important because of the liability involved with drilling down around 6,000 feet. For companies looking to expand their operations or locate here, the Wayne Economic Development Council can help. President Rod Crider said his organization has worked with Wooster Tool & Supply, a Westerman company, which is looking to add 120 full-time workers over the next three years, spokeswoman Sonya Higginbotham said. The company manufactures gas and oil separation tanks and gas production units that are used by companies drilling for gas and oil in the Marcellus and Utica shale plays. The expansion was due to the expected continued growth of oil and gas drilling in Ohio. Crider said WEDC has worked not Westerman, but Collier Well, too. Collier was later acquired by Dragon Product. Wayne Economic Development Council can help companies understand what type of assistance or incentives are available, Crider said. Gas and oil is one of the targeted industries in Ohio, so their might be some tax abatements available. The organization can also provide project management, consulting services, help with site location, finding a building and financing. The agency even offers help in filling out the necessary applications for tax abatements. These services are provided at no cost to companies, Crider

Southern Zone Edition

said. The Wayne County commissioners use WEDC as its economic development arm and, combined with other local municipalities, provide about 30 percent of the organization’s funding.

Floorhand Floor•hand noun : Laborer responsible for the overall maintenance of the rig.



* 4.90 $19.99 Entire Summer Fashion =HSPK\U[PS:LW[LTILY

Traditionally Fine Furs and Apparel Since 1939




>:;(;,  > :;(;,:; :; (330(5 (330(5* *, *, 4VU-YP 4VU -YP  :H[  :H[    

-AÂś ;/,(330565,9(+0(;697(*2(., ;OL-AÂśPZ[OLPUK\Z[YPHS^VYROVYZLMVY -9(*<50;HWWSPJH[PVUZ





-<AA@Âť:9(+0(;69 -<AA@:9(+0(;69*64




&DOO725(*,67(5)257+,6:25.6+23 2527+(5$9$,/$%/(237,216 10176334

Dix Communications - Gas & Oil

September 2013 Edition



by the numbers


10 3 7 0 7 0 0 27

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


3 3 5 Wells Permitted 79 Wells Drilling 301 Wells Drilled 0 Not Drilled 125 Wells Producing 0 Inactive 0 Plugged 840 Total Horizontal Permits

Data as of 7/17/13 Source: Ohio Department of Natural Resources




Gas & Oil

September 2013 Edition - Dix Communications

Southern Zone Edition

Antique mining equipment on display


ntique trucks, construction, and mining will be on static display and in operation at the 10th Annual Old Construction & Surface Mining Equipment Show Sept. 7 & 8 at the Harrison Coal & Reclamation Historical Park grounds. Equipment owned by the Harrison Coal & Reclamation Historical Park (HCRHP), members of the HCRHP, members of the Ohio Valley Chapter of the Historical Construction Equipment Association, and other organizations will be displayed or in operation, such as draglines, shovels, trucks, crawlers, dozers, and more. The show runs Sept. 7 from 10 a.m.-6 p.m. and Sept. 8 from 9 a.m.-4 p.m. Equipment will be in operation around 10 a.m.-6 p.m. Sept. 7 and 9 a.m.-4 p.m. Sept. 8. The Silver Spade operators cab and bucket are located on the grounds. Some of the tentative new things for 2013 included a operating 1913 Thew Type O steam shovel (Subject to change for any unforeseen reasons beyond our control.), Big John a underground miner statue made by a local coal miner Bob Flanagan on display, and dealer booth that may include a few pieces of new machinery. Kerry George, Author will have his book Black Damp Century available for purchase throughout the show. Kerry is a former

surface & underground coal miner and retired MSHA inspector. Over the past years there have been many pieces of static equipment on display. Over the years operating equipment moving and digging the earth included a Cat 60 crawler pulling a Cat pull grader, Bantam cable hoe, Cat D7 cable dozer, Cletrac Dozer, Euclid rock truck, Insley K12 cable hoe, Insley K12 dragline, Marion 111-M dragline, Insley L dragline, Northwest 41 dragline, Lorain 80 shovel, Euclid R27 rock truck, Cat 14E road grader, Insley K-12 shovel, WD 60 Koehring Dumptor truck, Cat D2 5U dozer, Bay City 25 shovel, Cat D4 dozer, Mack B61 dump truck, Euclid R13 rock truck and a Cat D9 Cable blade dozer and D2 Dozer. Some of the history displays over the years was a model of a Marion 5561 shovel, photos displays of Ohio & America’s mining history, and display on the history of the Lima factory covering locomotives, cranes, shovels, and draglines. Even included a heavy equipment parts business display. Like any old machinery show equipment in operation and on static display varies from year to year.  People came from West Virginia, Pennsylvania, New York, New Mexico, Michigan, Tennessee, South Carolina, Alabama, Virginia, Wisconsin, and Ohio’s 5 regions in 2012.







Dix Communications - Gas & Oil

The event has become a miners and construction workers reunion. Many people that have worked or currently still works in the mining, construction, & excavating industries have attended the show in the past. Many tell their stories of the machinery of the past and the giants long gone. All antique trucks, construction, crawler, and mining (surface or underground) equipment are welcome. Machinery, volunteers, and equipment operators have came from Western Pennsylvania, Columbus Ohio area, Dayton/Cincinnati area, Northeast and Southeast Ohio over the past years. Bring your antique trucks, crawler, construction, mining equipment for some digging fun or static display. Exhibitor camping available on site. Photo and history displays area also welcome. Sept. 6 is set up day for anyone wishing to bring in their antique trucks, crawler, construction, and mining equipment before the show. Admission is $3 per person. For 10th Annual Old Construction & Mining Equipment Show information contact the Ohio Valley Chapter of the Historical Construction Equipment Association at 330-618-8032, 740-3125385 or Find Old Construction & Mining Equipment Show on Facebook. The Harrison Coal & Reclamation Historical Park and the Historical Construction Equipment Association-Ohio Valley Chapter both can be found on Facebook, also. The event is located just west of the 51st Annual Stumptown Steam Threshers Reunion & Show. The 51st Annual Stumptown Steam Threshers Reunion & Show will be held at the Stumptown grounds on Ohio 519, between U.S. Route 22 and New Athens, Ohio, one mile west of New Athens, Ohio. GPS users: ă&#x20AC;&#x20AC;42700 STUMPTOWN ROAD Cadiz, Ohio. The Stumptown includes steam traction engines, antique tractors, gas engines, oilfield engines, antique lawn & garden tractors, crawlers, antique cars, antique trucks, tractor contest, slow engine race, saw milling, corn meal grinding, shingle making, straw baling, kiddie pedal tractor pull contest, kiddie coin hunt, flea market (Accepting new flea market vendors), entertainment, food, and more. Antique gas & oil field engines will be in operation. Antique gas engines will be used to power equipment such as pump jacks, butter churns, cream separators, and washing machines. Steam traction engines will be in operation. Steam traction engines will power an antique saw mill sawing boards and power an antique threshing machine. For Stumptown information contact 304-242-6856, or e-mail Find Stumptown Steam Threshers on Facebook.

Ohio octobER 2012 â&#x20AC;˘

A FREE monthly PublicAtion


September 2013 Edition



Gas & Oil

September 2013 Edition - Dix Communications

Southern Zone Edition



he boom in natural gas drilling has cast two opposing documentary filmmakers in unlikely roles. Josh Fox, a liberal environmental activist, finds himself at odds with President Barack Obama. Phelim McAleer, a freemarket conservative, is echoing the Democratic president’s support for natural gas. The two don’t see eye-to-eye on much of anything, especially each other. “He’s a very skillful filmmaker,” McAleer said of Fox. “He’s one of the most trusted scientists in America at the moment, even though he has zero qualifications. I don’t accept that, but a lot of Americans do.” Fox, in an email to The Associated Press, said McAleer “is not a credible source of information” and is “a climate change denier.” Their dueling documentaries — the sequel to Fox’s Oscarnominated “Gasland” aired July 8 on HBO and McAleer’s “FrackNation” aired the following night on AXS — have clear aims when it comes to hydraulic fracturing, or fracking, the gas drilling method by which chemical-laced fluid is injected into the earth to free natural gas trapped deep underground. Experts say the pro- and anti-drilling movements represented by the filmmakers each have some good points — even though Fox claims the process is an environmental and public health disaster while McAleer says Fox distorts facts and ignores the benefits of drilling. Jeff Frankel, an economics professor at Harvard’s Kennedy School of Government, said, “The fracking revolution is clearly good news from the national security and economic standpoint” since it reduces imports and generates jobs and investment in America. He said the most extreme fracking critics don’t seem to understand how much the gas boom is reducing pollution by cutting the amount of coal that gets burned in power plants. Yet the fracking critics have legitimate concerns, Frankel said. It makes sense that they would want to be cautious about drilling in some areas such as sensitive watersheds, Frankel said. Residents should get to choose whether they want drilling locally, he said. If all the anti-drillers’ passion “gets channeled into vigilant regulation, then it will turn out to have been a good thing,” Frankel said. McAleer concedes that Fox appears to be swaying people in at least some states to oppose drilling. McAleer thinks opponents have a very strong chance of ban-

ning fracking in New York, and a good chance of winning in places like Colorado and California. But he added that there’s an irony to that. New York has placed a moratorium on fracking, but natural gas is the top source of energy for the state, dwarfing hydroelectric or nuclear power. New York gets virtually all that natural gas from states that allow drilling, such as Pennsylvania. Environmental groups in Colorado and California have also tried to limit or ban fracking, even though those states have long histories of oil and gas drilling. “If you want to ban fracking, that’s your business. But you’re just shifting production to the next state,” McAleer said. Fox said, “New Yorkers are becoming increasingly aware that if they want to ban fracking they have to begin to change their energy infrastructure to renewable energy,” and that more and more groups are pushing for that transition. But even prominent scientists who warn about the dangers of global warming say the switch will take a long time. “Suggesting that renewables will let us phase rapidly off fossil fuels in the United States, China, India or the world as a whole is almost the equivalent of believing in the Easter Bunny and Tooth Fairy,” former NASA scientist James Hansen wrote in an online essay in 2011. Hansen added that “renewable energies are grossly inadequate for our energy needs now and in the foreseeable future.” That’s essentially why the Obama administration supports using natural gas as a “bridge” fuel during the transition to renewables, since gas emits half the carbon dioxide of coal. Fox plans to keep hammering away at fracking. He’s working on a short documentary on illnesses affecting gas workers and plans eventually to move onto projects on the broader issues of climate and sustainability. McAleer — who in previous documentaries challenged Al Gore’s “An Inconvenient Truth” and environmentalists’ campaign against Romania mining — doesn’t plan to make “FrackNation II.” “If you can’t say it well in one, you shouldn’t need a second one,” McAleer said.

Dix Communications - Gas & Oil

September 2013 Edition


1. Carroll County 319 2. Harrison County 120 3. Columbiana County 81 4. Noble County 57 5. Belmont County 52 6. Guernsey County 49 Monroe County 49 7. Jefferson County 38 8. Mahoning County 27 9. Portage County 15 10. Stark County 13 Tuscarawas County 13 11. Trumbull County 11 12. Coshocton County 5 Washington County 5 13. Muskingum County 3 Holmes County 3 14. Knox County 2 15. Ashland County 1 Geauga County 1 Medina County 1 Wayne County 1 WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, DRILLED, COMPLETED, PRODUCING, PLUGGED SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 8/17/13










Gas & Oil

September 2013 Edition - Dix Communications

Southern Zone Edition

MWCD official pitches gas/oil development Judie Perkowski, Dix Communications


hat a difference a year can make when you have accurate information. To wit, Muskingum Watershed Conservancy District officials have embarked on an educational campaign emphasizing the three “Rs” — Reservoirs, Royalties and Revenue. The public uproar last year about selling MWCD water to drillers for fracking operations, resulting in the MWCD imposing a moratorium on sales of one of Ohio’s most valuable resources to the gas and oil industry — until a “water availability study” could be completed and its water supply policy was updated. Today, less than 14 months later, Darrin Lautenschleger, public affairs administrator of the MWCD and guest speaker at the Guernsey Energy Coalition Thursday morning, explained the impact the gas and oil industry has had on the MWCD to attendees at the monthly meeting at the Southgate Hotel, sponsored by the Cambridge Area Chamber of Commerce. After a brief history about the MWCD, Lautenschleger’s PowerPoint presentation highlighted the “how and why” of significant changes in MWCD’s financial status culminating in an additional $77 million in revenue, since 2011, a result of one-time signing bonuses from two new leases with gas/oil producers, and other land holdings. The leases are for gas/oil water usage and drilling operations near or on MWCD property. The MWCD is allowed to sell water per the Ohio Revised Code. The District has entered into three long-term agreements

Darrin Lautenschleger, r, public affairs administrator at the Muskingum Watershed Conservancy District, spoke to attendees after his presentation at the Guernsey Energy Coalition meeting at the Southgate Hotel Thursday morning. Here Lautenschleger answers a question posed by Mark Shambaugh of Pace Analytical Laboratories.

for draw-down operations at Tappan Lake in Cadiz, Seneca Lake in Cambridge and Atwater Lake in Carroll County; and five short term agreements — three to six months during the summer and fall — two at Clendening Lake, and three for temporary pipelines at Clendening, Piedmont and Seneca lakes. “Everything is just starting to get under way, a few wells have been drilled at Clendening and there are two well pads at the Seneca Reservoir, one well has been permitted and one is still in the process,” said Lautenschleger. “The MWCD has received more than $77 million in signing bonuses from its three Utica Shale formation leases since 2011 and approximately $1 million in royalties from its first lease. We have identified more than $80 million in deferred maintenance


35 Years experience in the Oil & Gas Industry

Auto • Farm • Commercial


519 Main St., Pleasant City, Ohio 443772

(740) 685-1199

Premium Diesel • Gasoline • Motor Oil and Lubricants Drivers have OSHA 10 and SafeLand USA safety training


Andy Mast




Dix Communications - Gas & Oil

upgrades to public access, facilities and customer-identified needs at the three main watershed, “We (board of directors) have had discussions about a potential reduction in the assessments by the district, which amounts to $11 million annually,” he said. “The earliest reduction would not be until 2015. A formula is being developed ... discussions will continue with the board of directors. “The assessment could be suspended for a certain period of time because of royalties received, but it is highly unlikely it will be eliminated.” To date, 59 million gallons of water have been sold, $500 thousand collected. Lautenschleger added, “We are not looking to offer an unlimited supply [of water] to the industry ... We need to be conscientious and conservative with our water. We have the right to shut off the faucett.” The Muskingum River Watershed, which covers more than 8,000 square miles and drains into the Muskingum River, is the largest wholly contained watershed in the state of Ohio, covering 18 counties, about 20 percent of the state. The MWCD is dedicated to providing the benefits of flood reduction, water conservation and recreational opportunities in the Muskingum River Watershed. For more information, visit the MWCD website at www.

September 2013 Edition


Ron Braucher, Owner

Fleet Maintenance • Inspections Full Service • Trailer Repair Towing Available

“Put Our Experience To Work For You”

330-488-2000 1-888-488-2009


Located on Rts. 30 & 44 • 383 East Walnut • East Canton

New & Used New

2013 Mack Granite

w/Dickirson Rigup

500 HP, 18SP GU813

R & R Truck Sales 1650 E. Waterloo Rd., Akron 330-794-9304

Daniel Ralich



Vice President

330-352-4739 2007 Mack Vision CXN613

2007 Mack Granite 2007 Mack Vision CTP713


2005 Mack Granite CV713

September 2013 Edition - Dix Communications

Southern Zone Edition








Brewster East Canton North Canton Canton

Louisville Massillon Navarre

TUSCARAWAS COUNTY Dover New Philadelphia Sugarcreek

Bolivar Strasburg

Baltic Berlin Charm Dundee

Holmesville Millersburg Walnut Creek Mt. Hope

WAYNE COUNTY Apple Creek Wooster Dalton Kidron Mount Eaton

Orrville Shreve Smithville Rittman

PORTAGE COUNTY Atwater Aurora Brady Lake Brimfield Deerfield Edinburg Garrettsville Hiram Kent

Mantua Randolph Ravenna Rootstown Shalersville Streetsboro Suffield Windham


Craig Beach

TO ADVERTISE: 740-439-3531 740-425-1912 740-498-7117 330-821-1200







Newton Falls

SOUTHERN ZONE Port Washington Zoar Gnadenhutten Newcomerstown





Quaker City Kimbolton Byesville Pleasant City Fairview Senecaville

BELMONT COUNTY Middlebourne St. Clairsville Belmont Powhatan Point Martins Ferry Shadyside

Barnesville Bethesda Flushing Morristown Bellaire Bridgeport

Stone Creek Dennison Uhrichsville

WASHINGTON COUNTY Belpre Little Hocking Marietta Reno Beverly Lowell




Buffalo Old Washington Cumberland Salesville Lore City Cambridge





Twinsburg Stow

Mogadore Hudson







New Matamoras Waterford Devola Lower Salem Newport

NOBLE COUNTY Batesville Sarahsville Dexter City

Caldwell Belle Valley Summerfield





Beallsville Lewisville Clarington


Sardis Hannibal Woodsfield

Sebring Beloit Salem

Alliance East Sparta Hartville Magnolia

Damascus N. Benton Berlin Center

Maximo Minerva Robertsville Waynesburg


West Lafayette





















JULY 2012 •





















Gas & Oil



Dellroy Malvern Magnolia Carrollton

Dellroy Mechanicstown Augusta

COLUMBIANA COUNTY North Georgetown East Rochester Homeworth

Hanoverton Kensington Salem


330-264-1125 330-541-9400 330-541-9450



We’ll build you an inviting outdoor room. Learning to relax and enjoy it is up to you.

The Ricci Family from Sandusky, Ohio

If forty years of homebuilding has taught us anything, it’s the importance of customization. Because a one-size-fits-all approach quickly becomes one-size-fits-none. So we take the time to get to know you. To build exactly the home you want, at a price you can afford. That’ll always be time well spent. Explore dozens of customizable floorplans at or call our Portage Model Center at 866-928-0170



Specialized training for the oil

and gas industry

Stark State College provides a wide range of credit and noncredit training to address the needs of the oil and gas industry. New programs are being developed daily and can be customized to meet employers’ needs. For information, call 330-494-6170, Ext. 5194 or 5662.

Associate Degrees ShaleNET Programs

Industrial Process Operation Technology Petroleum Industrial Mechanics Technology Petroleum Technology - Pipeline Technician

Related Programs

Applied Industrial Technology Automation and Robotics Technology Civil Engineering Technology Design Engineering Technology Electrical Engineering Technology Electrical Maintenance Technology Electronic Engineering Technology Environmental Health and Safety Technology Geographic Information Systems Mechanical Engineering Technology

One-year Certificates ShaleNET Certificates Industrial Process Operation Technology Petroleum Industrial Mechanics Technology ShaleNET Pipeline Technician

Related Certificates

Automation and Robotics Computer Numerical Control (CNC) Predictive and Preventive Maintenance Welding (MIG, TIG, 3G, 6G, more) Accredited by

Short-term Offerings Career Enhancement Certificates Basic Environmental Technician Basic Wastewater Treatment Basic Water Distribution Basic Water Treatment Civil/Surveying Civil/Surveying Drafting Geo-environmental Technician Drilling Location and Positioning Technology Environmental – Technician Supervisor Industrial Hydraulics and Pneumatics Core for Exploration and Production Machine Design Mechanical Power Petroleum Basic Industrial Maintenance Core Petroleum Basic Industrial Process Controls Petroleum Basic Industrial Process Operation Core Rigging – Oil and Gas Safety – Heavy Industry Waste Water Treatment Operations Welding Technology for Gas and Oil Production

Credit and Noncredit Courses OSHA 40-hour HAZWOPER OSHA 30-hour General Industry OSHA 10-hour Construction Safety OSHA 8-hour HAZWOPER Refresher

Credit Only Courses CAD/CAM Physical Geology

Noncredit Only Courses

IADC Rig Pass/ SafeLAND and SafeGULF (one day) ShaleNET Floor Hand Training ShaleNET Welder’s Helper Training Approved training provider for

6200 Frank Avenue NW North Canton, Ohio 44720


J&M Carpentry


"Generations of Amish craftwork coupled with modern, professional site management”

● Agricultural ● Residential

● Commercial


Any Size All Custom ● Pole Barns ● Garages ● Barns ● Riding Arenas "The quality you want for your project” ● Stables ● Horse Barns ● Outbuildings ● Decks


Estimates 330.231.0125

Fredricksburg, Ohio 44627

We’ll build you an inviting outdoor room. Learning to relax and enjoy it is up to you.

The Ricci Family from Sandusky, Ohio

If forty years of homebuilding has taught us anything, it’s the importance of customization. Because a one-size-fits-all approach quickly becomes one-size-fits-none. So we take the time to get to know you. To build exactly the home you want, at a price you can afford. That’ll always be time well spent. Explore dozens of customizable floorplans at or call our Portage Model Center at 866-928-0170

September 2013 Ohio Gas & Oil Magazine - Southern Edition  

The September, 2013 edition of The Ohio Gas & Oil Magazine - Southern Edition published by Dix Communications.

Read more
Read more
Similar to
Popular now
Just for you