Page 1

Ohio octobER 2012 • JUNE 2013 •


A Judicial Review Mark West builds new facility

Touring an injection well ODNR issues shale report

Hazard Training Mark Grantonic, Mark West Control Center Operator

Dix Communications - Gas & Oil

June 2013 Edition

Quaker City (740) 679-2141 Zanesville (740) 455-2141 St. Clairsville (740) 695-2141


10148434 10025917


Gas & Oil

June 2013 Edition - Dix Communications

Table of Contents

Southern Zone Edition

PUBLISHERS Andrew S. Dix Northern/ Southern Zone


First responders trained on unique hazards


Judges convene to talk about oil & gas cases


State setting drilling standards


Tour points out safety of injection wells


CNG-powered vehicles saving money


Understanding the ‘Pugh Clause’

Rob Todor Southern Zone


ODNR says Utica Shale numbers strong


Cryogenic facility opening soon

Lance White Northern Zone LWhite@


Chesapeake, Exelon most friendly to veterans


Ribbon cut for new oil and gas land lab at Zane State College in Cambridge


Continued development revealing potential


Bulldozer donated for training


Utica boom still in infancy


‘Historic era’ for Ohio oil production


Cash is key to future growth


MWCD establishes guidelines for water sales

Laurie Huffman / Dix Communications

Judie Perkowski / Dix Communications

Christine L. Pratt / Dix Communications Dave O’Brien / Dix Communications

Judie Perkowski / Dix Communications Don Gadd / Landman

Michael Neilson / Dix Communications Laurie Huffman / Dix Communications

Norm Shade/ President, ACI Services

Jessica Denton / Dix Communications Davis J. Wigham / Attorney

Mark Kovac / Dix Communications

Davis Schallanberger / CPA

Kimberly Lewis / Dix Communications

G.C. Dix II Southern Zone David Dix Northern Zone

EXECUTIVE EDITORS Ray Booth Southern Zone

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

Dix Communications - Gas & Oil

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

June 2013 Edition


Ohio octobER 2012 •

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

A FREE monthly PublicAtion


What is this ‘well’ they just drilled?


Alliance focusing on gas & oil development


Keystone pipeline would create jobs


Gas/oil instructor retires


Employee-owned business making its success story


Barnesville council mulls ways to invest $7M


‘Landmen’ say to insist on a professional


Exterran opens facility in Youngstown


Boom may be boon for students


We go to work every day


‘Exciting time’ in the gas & oil business


Natural Gas Vehicles partnership seminar

Ethan Vessels / Marietta Attorney

Judie Perkowski / Dix Communications

Brian Hill/ State Representative

Laurie Huffman / Dix Communications Judie Perkowski / Dix Communications Cathryn Stanley / Barnesville Bureau

Sophie Kruse / Dix Communications

Babby Warren / Dix Communications Christine L. Pratt / Dix Communications

Judie Perkowski / Dix Communications




































m om hiogo.c • www.o R 2012 • www.oh octobE JUNE 2013


A Judicial Review lds Mark West bui


new facility




















Northern Zone Southern Zone

tion well Touring an injec report ODNR issues shale

Hazard Training Mark West Mark Grantonic, Operator Control Center

Cover Photo: Michael Neilson/Dix Communications Marc Grantonic, operator at the new MarkWest cryogenic gas processing facility in Cadiz.


Gas & Oil

June 2013 Edition - Dix Communications

Southern Zone Edition

First responders trained on unique HAZARDS N

o one wants to see an emergency situation at a well site. And, while safety is at a premium during the drilling and hydraulic fracturing process, there are new dangers on the scene with which first responders in this part of the country are not familiar. For that reason, the Stark County Local Emergency PlanLaurie Huffman ning Committee has put a training Dix Communications program together for firefighters that can also be adapted to serve law enforcement, EMTs and public officials. The program, called “Response to Oil and Gas Well Incidents Including Horizontal Drilling and Hydraulic Fracturing,” was recently developed and has already been used to train more than 100 firefighters in the area, including those in Canton, Jackson Township, Massillon, Osnaburg Township, and Hartville. Efforts are being made now to bring the training to Alliance and Washington, Lexington and Marlboro townships as well. “We teach how to handle the toxic or poisonous gases that could be emitted at the well sites,” said Don McDonald, director of the Stark County Local Emergency Planning Commission. “Some of these can put a person out of commission with only one whiff. They have to be monitored all the time. Also, wet gas is an extremely volatile product when it comes out of the ground, and we have explosives inside pipes sitting on the scene that are used in the underground fracturing process, which adds to the threat at the well sites. Firefighters may be on the scene for another problem to be addressed that is not related to the well at all, such as a diesel fuel fire or a fire in a mobile home used for an office. But, local first responders have to be trained to realize they cannot handle a situation like this by themselves. They will need to work with technical support groups to manage the scene. In Northeast Ohio, Boots ‘N Coots is the main resource. They are well control specialists and there are less than 100 of these people in the entire world. Boots ‘N Coots have been put on retainer by Chesapeake and the other oil and gas companies in the area. They also go all around the world to give advise to fire chiefs.” In addition to these dangers, firefighters also have to have a

Review Photo/Kevin Graff Don McDonald, director of the Stark County Local Emergency Planning Commission, displays a PowerPoint slide show used in training first responders for safety in the gas and oil industry.

plan in place on how to obtain the amount of water that would be needed to mitigate a pressure blow out, which McDonald said can be anywhere from 3000 to 6000 gallons per minute. “You will see a 90-foot gas well derrick swallowed in flames during a blowout,” McDonald explained. “Massillon Fire Department Chief Tom Burgasser and I have been developing this program for over a year,” said McDonald, who is also a retired Jackson Township firefighter. “Because LEPC is a government agency, we are not bi- Don McDonald ased at all on the topic of horizontal drilling. It is simply a fact. There are nine wells in Stark County in some part of the process of development. So, it’s here. And, because of that, certain training is needed to reduce the vulnerability of the firefighters, EMT’s, law enforcement agencies, and all the public safety workers that are involved. We’ve programmed this training so it can be adapted to any of those venues.”

“You will see a 90-foot gas well derrick swallowed in flames during a blowout.”

Dix Communications - Gas & Oil

June 2013 Edition


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

New Frac


CRUDE OIL Trailers



New & Used Trailers

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

1-800-826-5377 or 330-756-2030 •










Gas & Oil

June 2013 Edition - Dix Communications

Southern Zone Edition

Judges convene to talk about oil and gas cases H

olding court under the auspices of the Ohio Judicial Conference and hosted by the Guernsey County Common Pleas Court, Judge David A. Ellwood welcomed 10 Common Pleas Court judges to the recent Shale Oil and Gas Roundtable meeting at the Guernsey County Courthouse in Cambridge. Judie Perkowski Ellwood initiated the roundDix Communications table meeting after contacting judges who preside over a county engaged in oil and gas activity, asking for input about the development of any new court practices initiated because of the expanding presence of the gas and oil industry in their communities.



This Truck Has All The Right Stuff!

•Volvo 500 H.P. Engine •Volvo Engine Brake •Eaton 18 SP •4:10 Gear Ratio •20K Front Axle •Double Frame, Dual Steer •46K Full Locking Rears •20K Steerable Pusher Axle •110 Barrel Heritage Custom Vac Tank with Fruitland 500 Vacuum Pumping System •All Polished Alum. Wheels and All The Stainless Goodies •Heated Chrome Power Mirrors, Windows and So Much More!!!




Garrett Knott/Dix Communications The Guernsey County Common Pleas Court and Judge David Ellwood (kneeling) held host to 10 visiting judges, part of the Ohio Judicial Conference, for the Shale Oil and Gas Roundtable in Cambridge. Other judges were, second row, l to r, Judges Robert Reinbold (retired), John Solovan II (Belmont County), John Nau (Noble County), Edward Lane Jr. (Washington County), Edward O’Farrell (Tuscarawas County). Third row, l to r, Judges Dominick Olivito, Jr. (Carroll County), Scott Washam (Columbiana County), Linton Lewis, Jr. (retired), Milt Nuzum (Ohio Judicial College) and Mark Schweikert (Ohio Judicial Conference). Each judge discussed what cases they have had relating to shale oil and gas issues and talked about any new court practices or procedures developed for such cases.

Ellwood contacted Retired Judge Mark Schweikert, executive director of the Ohio Judicial Conference, suggesting a roundtable meeting with the judges. Schweikert agreed and said, “It is sensible to begin a conversation and network to stay ahead of the issue.” The roundtable meeting was May 10. “Judges are required to perform 24 hours of continuous le-

INDUSTRIAL TLoicCehnisleld


Price Includes Tank and All F.E.T.S.







Open Monday to Friday, 8 AM to 5 PM



10880 Lynchburg Rd. Kensington 330-894-2848


Dix Communications - Gas & Oil

gal education (over a specified period of time) relating to what judges do — either by the law or court cases — to share information about how we are dealing with the demand of cases coming before the court,” said Ellwood. “We [Guernsey County] created a gas and oil case docket last year (July of 2012) because of the number of cases coming before the court. We currently have 37 cases relating to the oil and gas industry at some stage in the process.” Because Ellwood instituted an ambitious Case Management Plan to expedite cases in a timely manner, the judges have referred to his court docket as the “Rocket Docket.” Continued on pg. 24

June 2013 Edition


Mention this ad for

20% off your first apparel purchase* Work Wear Designed Specifically for the Oil & Gas Industry

Your FR Solution Flame Resistant garments that meet NFPA & OSHA Standards SHALEWEAR™ offers protection, durability and comfort.

Checking Facts. Busting Myths

Locally Owned & Operated Since 1972 A JOINT EFFORT OF OOGA | OOGEEP | IPAA

*Applies to direct sales only 7944 Whipple Ave., N.W. North Canton, Ohio 44720 10063099

1-800-686-5776 • 330-494-5776


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

June 2013 Edition - Dix Communications

Southern Zone Edition

State setting drilling A standards

lthough not fully in place, the rules and regulations governing shale development in Ohio are taking shape. James Zehringer, director of the Ohio Department of Natural Resources, spoke at the annual meeting of the Eastern Ohio Development Alliance about how the state is working to set Christine L. Pratt standards for drilling. Dix Communications “Oil and gas can be prosperous, and not at the expense of the environment,” he said. “The focus of the ODNR is to create regulations based on science, not emotion or politics.” By watching what other states have done, both right and wrong, he said they’ve learned how to best approach the issue. Among the key lessons was the need to have regulations and inspectors and taxes in place early. Pennsylvania was not ready, he said. “They did not have the inspectors with the right training in place.” Ohio now has more

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

Dix Communications - Gas & Oil

“Oil and gas can be prosperous, and not at the expense of the environment.”

Continued on pg. 24


Freedom to

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

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

AT QDA ... Every child is important to us - we want your child to succeed!


NEW PHILADELPHIA AT NEW TOWNE MALL 400 Mill Ave SE, Suite 901, New Philadelphia, Ohio 44663 STEUBENVILLE 2230 Sunset Boulevard, Suite 2B, Steubenville, Ohio 43952 EAST LIVERPOOL 108 E. 5th Street, East Liverpool, Ohio 43920



Have you recently transferred here from another area?



German Village Center Berlin, OH Phone: 330-893-2812 67 West Main St. Newark, OH Phone: 345-7515

Are you looking for an innovative home-schooling option?





QDA Provides Options for Today’s Students

Call For More Information or For A Personal Appointment.

(Formerly Kandel’s Hdwe.)

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

The world is changing... Technology is changing... Education is changing... Ohio’s premier online school

New Concord


Tuition Free K-12 Public School

QDA’s coursework is approved by the State of Ohio, transferrable to all school districts, approved for entrance into the military and college. QDA offers: • The latest in online OR textbook-based Home Schooling K-12 • State Approved Accredited Curriculum • Computer & Internet Reimbursement • Extracurricular Activities & Field Trips • Flexible scheduling • Over 265 successful graduates to date

We have six convenient locations to serve you!

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



Are you looking for a school to meet your needs?

Whether you’re out on the rig or in your own backyard




- James Zehringer than 50 staff people employed within the oil and gas division of ODNR. Currently more than 605 permits have been granted for horizontal drilling, and nearly 300 wells have been drilled. It is anticipated a total of 750 will be drilled by year’s end, said Zehringer, who said another 1,500 are expected in 2014 and 2,000-2,050 more in 2015. “This industry can be dangerous when it’s not properly regulated. That’s why it’s important to have the right people on ground with the right regulations in place,” he said. Already inspectors the department has been called to investigate some complaints of non-compliance and was quick to permanently revoke the permit of a company found to be

June 2013 Edition


Gas & Oil

June 2013 Edition - Dix Communications

Southern Zone Edition

Tour points out safety of injection wells


njection wells that take the waste products of oil and gas Dave O’Brien drilling and pump it into the Dix Communications earth at depths of several thousand are a safe, effective and well-regulated means of disposing of such material, according to an Ohio oil and gas trade association and well owners.

To give the media a better handle on the matter of injection wells, members of the Ohio Oil and Gas Association recently gave a guided tour of a well in Windham Township, Portage County. Penny Seipel, vice president of public affairs for OOGA, said the group want to take the “confusion and mysticism” out of injection wells, which she said are stringently regulated by state officials. Well owner/operator David Ballentine owns six operational injection wells and has a permit for a seventh through his company, B&B Oilfield Service, Inc. He also transports drilling waste under the name Northeast Ohio Oilfield Service Inc. In business for the past 25 years, he said he employs up to 22 people at any one time — including his wife, one of his two daughters and his son — at his shop on S.R. 88 in Portage County’s Freedom Township. Ballentine’s well, located on privately-owned property on S.R. 303, is a former oil and gas well that descends to a depth of 3,900 feet. It ceased production in 1985 and was plugged in 1986, he said. Earthen dams prevent spillage from large brown holding tanks hooked to pumps that inject the wastewater deep into the earth. Automatic “murphy” switches measure fluid levels and pressure and can shut down the injection process if

David Hill, vice president of the Ohio Oil and Gas Association, stands in front of holding tanks serving a Class II oil and gas wastewater injection well on S.R. 303 in Windham Township on May 8.

Well owner/operator David Ballentine describes the process by which his fleet of wastewater trucks delivers brine and unloads it into the holding tanks in the background during a tour of his well site on S.R. 303 in Windham Township, Portage County, on May 8.

a problem arises, Ballentine said. Leased from the landowners on a yearly basis, the well is monitored electronically for changes in pressure that could signal a problem. Technology contained in an app on Ballentine’s smartphone and a website allows him to check on all his wells anytime he wants, he said. His trucks are limited to 10 trips per day to the well, only between the hours of 7 a.m. and 5 p.m., and on average deposit 250 barrels of waste per day into the well. No waste produced outside of Ohio is injected into the well, Ballentine said, and the only waste injected is brine from the drilling process — basically, salt water. David Hill, OOGA vice president and the owner of several injection wells in Guernsey County, said pressure monitoring allows well owners and Ohio Department of Natural Resources officials to monitor for signs of danger in Ohio’s 179 injection wells. A geologist and member of OOGA’s Underground Injection Control work group, Hill said it is nearly impossible for such waste water to rise close enough to the surface to mix with the water table or surface soil. ODNR regulators utilize a hydrostatic pressure formula to determine if a well is near capacity, Hill said. If a well does exceed the pre-determined pressure, low or high, it is automatically shut down, he said. While regulators are required to visit every well at least once every eight or nine weeks, “in practice they are there every week,” Hill said. State regulators can revoke a permit anytime for cause, he said, and also won’t let drillers drill in areas prone to seismic activity. He called a series of earthquakes in the Youngstown area in 2011 that were linked by the state to a series of injection wells in the area “an unfortunate incident.” “As a geologist, I don’t think I could replicate those conditions,” Hill said, adding that “there is not enough hydraulic

Dix Communications - Gas & Oil

horsepower on the face of the Earth to create a crack” that could force wastewater thousands of feet up the well and through six layers of steel tubing and concrete surrounding the well head at the surface. Pressure sensors would also give well operators notice before that happened, he said. More than 11 million barrels of waste were injected into the ground in Ohio in 2011, according to Hill. That’s less than onehalf of one percent of all the water injected into the ground in the United States, he said. “There is not one instance where a Class II injection well has contaminated groundwater,” Hill said. Hill said Ohio laws on Class II injection wells like the WindContinued on pg. 12

35 Years experience in the Oil & Gas Industry

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


June 2013 Edition




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


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

June 2013 Edition - Dix Communications

Southern Zone Edition

“SAFETY OF INJECTION WELLS” from pg. 11 ham Township well are “at least as stringent” as federal environmental protection laws. The 144,000 Class II injection wells in the United States are safe enough to be located close to agricultural and residential property, and may only accept waste from oil and gas production. That means high volumes of water, with low toxicity, he said. Hill said he believes some of the fear and unease about injection wells among the public comes from a lack of information. He said a reading of Ohio Senate Bill 315, passed in 2012, “would demystify a lot of the process” for the public. “Often times, it’s easy to fear the unknown,” he said. Additional sources on Class II injection wells: U.S. EPA website,

Additional information on Ohio Senate Bill 315: Ohio Department of

Natural Resources website,

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.

The head of a Class II injection well on private property off S.R. 303 in Windham Township, Portage County. For safety purposes, the well has wireless connectivity that allows the owner/operator to monitor it, and pressure sensors to detect subtle shifts in pressure that could signal problems. It accepts an average of 250 barrels of waste brine per day, according to owner/operator David Ballentine.


A division of sonrise ConstruCtion, Custom built homes


(330) 680-4121


803 S. Mahoning Ave. Alliance, Ohio 44601

Dix Communications - Gas & Oil

June 2013 Edition


J&M Carpentry LTD

Agricultural “Generations of Amish  Residential craftwork with modern,  Commercial professional site management”  Any Size  Custom  Pole Barns  Garages  Barns  Stables  Riding Arenas  Horse Barns  Sheds  330.231.0125 Outbuildings  Decks  Metal Roofing 

e Fre Estimates “The quality you want for your project”

online: Fredericksburg, Ohio 44627



Gas & Oil

June 2013 Edition - Dix Communications

Southern Zone Edition

CNG-powered vehicles saving money for trucking companies


lthough the idea of using compressed natural gas as a fuel source for transportation vehicles has been used by other countries for decades, and maybe longer, there are signs that businesses in the U.S. are now doing more than just giving the concept serious thought. To help attendees at the Guernsey Energy Coaltion understand the transition process, the importance and the benefits of CNG, Cambridge Area Chamber of Commerce President Jo Sexton introduced Dave Mrowzinski, project manager of IGS Energy CNG Services, and guest facilitator of the Thursday morning meeting at the Southgate Hotel. Mrowzinski presented an overview of IGS Energy and asked the audience, “Why is this [compressed natural gas] not prevalent in our lives? It is clean, cheap and we have an abundance of it right here in Ohio.” What is CNG? According to IGS’s website, CNG is natural gas that is compressed to high pressures so large volumes can be stored in small places, such as a vehicles’ fuel tank. CNG has been used as

Judie Perkowski Dix Communications

P y o n i nt o t S

7880 Stony Point Rd. N.W.



DeWalt 18-V Reciprocating Saw (DC385K)



DeWalt 18-V 4 Tool Combo Kit (DC455X)

DeWalt 18-V 1/2” Drill/Driver/ Hammer Drill Kit (DC0950KX)

DeWalt Electric Reciprocating Saw (DW304PK)

Sugarcreek, Ohio 44681


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

Culvert Pipe In Stock: (Corragated with Smooth Interior) 4”x20’ w/Bell End 6”x20’ w/Bell End 8”x20’ w/Bell End 10”x20’ w/Bell End 12”x20’ w/Bell End 15”x20’ w/Bell End

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

w/Bell w/Bell w/Bell w/Bell w/Bell w/Bell

End End End End End End


DeWalt 18-V 2 Tool Combo Kit

DeWalt 18-V Impact Drive Kit

a vehicle fuel for over 50 years for limited purposes. General Motors, Ford and Honda have been in the forefront of producing CNG powered vehicles. There are also conversion kits for gasoline and diesel cars and trucks. “IGS has more than 20 years of experience in the natural gas industry to provide CNG vehicle refueling solutions. Recent improvements in CNG technology coupled with the rise in gasoline prices is quickly making CNG a viable option for mainstream vehicles,” he said. “It is also very affordable, about $2 per Gas Gallon Equivalent; it is abundant, we are standing on a huge reserve; and it is cleaner than gasoline —we don’t need emission controls.” The downside to CNG fueled vehicles is the cost for the vehicle and the high dollar investment in constructing fueling stations. The price for an original equipment personal vehicle like Honda is an additional $6,000; for a light truck, an additional $9,000 to $12,000; for heavy, large trucks the cost escalates to $15,000 per truck. Cost for original equipment and conversion kits are determined by the size of the tank and the casing material.

Dix Communications - Gas & Oil

“It is the medium and heavy duty trucks that will spur development throughout the company ... Fleets are driving the market,” said Mrowzinski. But, according to three panel members who are heavily involved in the CNG industry and commented on their experiences, the switch to CNG to fuel their fleets of trucks is well worth the investment. l Chuck Diehl, manager of a 400-plus vehicle fleet for Smith -Dairy in Orrville, said “we need to change the public’s perceprtion of CNG. We have to look at it as an advanced fuel, not an alternative fuel ... We need to move on, we have a great sopportunity to change our [the public’s] attitude about CNG.” Smith Dairy Trucking’s 2012 CNG project led to one of eOhio’s first public CNG heavy truck fuel sites and Smith’s denployment of their first CNG tractors. , “Because of the technology, that seems to be changing every emonth, the company plans to be diesel independent by 2030,” esaid Diehl. “We built our own fuel site without any government funding. Come on out ... talk to our people and see for -yourself.” - Keith Walker of Kimble Recycling & Disposal (the former eAce Disposal), said in 2011 Kimble built their first private lCNG fueling station and purchased 36 residential front-lead srefuse trucks, 100 percent powered by CNG. In 2012, they re-placed almost 400,000 gallons of diesel fuel with natural gas. g “We have 70 trucks, which is 30 percent of our fleet, powered 100 percent by CNG,” he said. We also have plans to add

June 2013 Edition


CNG fueling infrastructure to switch our entire fleet. And, we also did not apply for any government funding, because we didn’t want to wait, we wanted to get started building our fuel site immediately,” said Walker. If you need help or information about developing vehicle and/or fuel station projects, Andrew Conley, director of the Clean Fuels Ohio Program, said he has worked with hundreds of fleets across Ohio to develop fleet emissions and efficiency analyses, draft proposals for funding and created educational programs for workshops, fuel and technology training and resources. “CFO’s Ohio Green Fleets program engages hundreds of fleets in workshops, meeting and seminars. Fifty-five certified Ohio Green Continued on pg. 24 Over a million homes... one address

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





6:00 PM • Admission $5 (Children Under 7 FREE)

Lance Repair Company


6,000# Small-Block Hot Rod Mini Rod

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

10,000# 3,000 RPM


6,200# Cheater-Stock 4x4 6,300# Modified 4x4

7,500# Street Diesel 8,000# Open Diesel

Total Purse: Over $4,000 Benefits diabetes services including Guernsey Co. Diabetes Support Group FOR MORE INFORMATION, CONTACT MATT DOLAN AT 740.685.2563 Supported by a grant from the

Cambridge/Guernsey County Visitors & Convention Bureau


10188 Forty Corners Road Massillon, Ohio 44647


Ables Heating-Cooling-Electric Advantage Bank Bundy-Law Funeral Home Cambridge Physical Therapy Center Creno’s Pizza - Cambridge Deep Cut Tavern Ron Guthrie Insurance/State Farm

THANKS TO OUR SPONSORS Howell-Craig Insurance M&K Trucking Dave Ogle/Realtor Mast Tire Mr. Lee’s Restaurant Orme Do-It-Best Hardware

Patrons Buckeye Mutual Insurance Peoples Bank Southeastern Med Stratos Wealth Partners - Tom Davey Subway of Byesville & Buffalo Walmart WILE-WCMJ-WWKC-WBIK Radio


Southeastern Equipment · Nicolozakes Trucking · Greg Shepherd/Bridgeport Equipment

10151796 • 740.432.2022 • 800.933.5480


Gas & Oil

June 2013 Edition - Dix Communications

Southern Zone Edition

Understanding the ‘Pugh Clause’


hough I tend to write about a lot of issues revolving around contracts in the oil and gas business, I don’t think any issue has come up more than the Pugh Clause. I have taken the liberty to cite directly from an oil and gas index and a lease, as this is an important topic not only to those who drill wells but to the Don Gadd landowner as well. Landman As I have stated before, it is very important to negotiate what you want in your lease, and most importantly, get approvals where you can. A recent example had me meeting with a very nice landowner in Akron to just chat about her existing lease. The company was about to drill their land in a unit (units usually comprise more than one landowner and leases). Their original lease was around 300 acres, but what they contributed to the unit

b e T b • h a i was only 3 acres or there about. Without a Pugh Clause their lease would be totally Held Byr •

PUGH CLAUSE: A clause added to an Oil Lease to limit holding non-producing lands or depths beyond primary term of lease. Also called a Freestone rider. PRIMARY TERM: The initial period in an Oil and Gas Lease to develop the property.

Production (a term referring to the lease now being held by a well and in production). They would no longer be able to leasef the property or receive any additional rental monies on thei i land as long as it was HBP. Of course the landowner was upset as they were some of theo first to lease and had not received the huge paid up amounts being paid now. They only had a little over a year to go and their Primary Term (the amount of time negotiated to hold the lease unless and until the lease was drilled) would run out. Instead, they will be a very small part of a unit while having a rather large tract. Doesn’t seem fair, but it is a reality. I can’t blame the company as it is in its best interest to drill and include as many leases as possible to limit the amount of bonus or rental due in the future or lose a lease right in the middle of where it may be drilling a lot of wells. It’s business and you don’t stay in business too long letting things slip away. Tough terms for the landowner to hear, but just the same, that’s why I keep reminding everyone to negotiate what you want

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


Dix Communications - Gas & Oil

before you sign. Sad thing in this, the landowner’s elderly parents and aunt signed the lease. Looked like big money at time. This landowner basically inherited a lease that wasn’t in their best interest. However, she is a bright woman and has educated herself quite well on the pitfalls of leasing. I think she appreciated my frank and honest assessment of here lease and tried to implement some of my suggestions even though the company rejected them later. As for me, I like the Pugh Clause and have seen it in many forms over the years. I will point out some of the differences in the next article. Just remember, look for it, talk about it, and if you have a lot of land at stake, insist upon it. Both the landowner and company will be better off for it.

June 2013 Edition



Mike Knowlton Welding, LLC Office: (740) 826-4297

• • • • • • • • • •

Mike Knowlton, Sr., Owner Mike Knowlton, Jr., V.P. PORTABLE WELDING

Mike, Jr. Cell (740) 819-4327 Fax: (740) 826-7404 60378 Bliss Road New Concord, Ohio 43762

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) 10150686


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


Gas & Oil

June 2013 Edition - Dix Communications

Southern Zone Edition

ODNR says Utica Shale numbers strong


he Ohio Department of Natural Resources (ODNR) conventional wells. said Utica shale oil and gas production has increased 93 Additionally, during 2012, these 87 Utica wells produced: percent for oil and 80 percent for gas since 2011. Ad• 12 percent of Ohio’s total oil production ditionally, producing wells have gone from two to 87. At this • 16 percent of Ohio’s total gas production for 2012.  rate of growth, ODNR expects Utica shale well production to One of ODNR’s primary focuses is to protect Ohio’s citizens exceed the yearly output of all of Ohio’s nearly 51,000 existing and natural resources through responsible regulation of the oil conventional wells by as early as 2015. Utica wells represent and gas industry while still encouraging industry growth. The less than one percent of all producing oil and gas wells in Ohio. Ohio General Assembly is considering legislation that would “The production from these initial require well owners to report producUtica wells make a compelling state“The production from these initial Utica tion quarterly as opposed to annualment about the staggering amount of ly. Ohio law currently requires well wells make a compelling statement owners to submit yearly production oil and gas resources Ohio’s shale appears to contain,” said ODNR Direc- about the staggering amount of oil and results by March 31. More frequent tor James Zehringer. “As more data is gas resources Ohio’s shale appears to reporting will allow ODNR to better understand Ohio’s shale play, and collected and analyzed, ODNR will contain.” continue to report it and continue - James Zehringer therefore, provide even more effective and comprehensive regulation of its careful regulation of this rapidly this growing industry. growing and economically vital inProduction results for all Utica wells are available in spreaddustry.” sheet form at: When comparing horizontal wells to conventional wells, the The goal of the ODNR is to ensure a balance between wise 2012 Utica shale production averages indicate: use and protection of natural resources for the benefit of all. A single Utica well produced as much oil as 312 convenVisit the ODNR website at tional wells A single Utica well produced as much natural gas as 448


• • • • • •


Catering Party Packs Hog Roasts Small or Large Events Company Parties Special Event Delivery

Gas & Oil Workers!

We Deliver Delicious Bulk Menu Items To Your Work Site! 10151617

SHEILA CASTERLINE RICK CASTERLINE, PIT MASTER 740-995-9864 740-489-5708 Old Washington, Ohio

Paul G. Hesse

Cell: 330-466-0177 Fax: 330-262-0030

John D. Polen

Cell: 330-466-0176

10149653 330-343-5708 Special Vermeer Financing 5219 Deis Hill • Dover, OH 44622

PO Box 1076 474 Industrial Blvd. Wooster, Ohio 44691



Dix Communications - Gas & Oil

June 2013 Edition


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

June 2013 Edition - Dix Communications

Southern Zone Edition

Cryogenic facility n o o S g n i n Ope in Harrison Co.

Michael Neilson/The Daily Jeffersonian/ MarkWest, already the largest processor and fractionator of natural gas in the Appalachian Basin, is building two new cryogenic processing facilities in Cadiz in Harrison County. Both are scheduled to begin operations in 2013. A smaller, temporary facility has been in operation since the fall of 2012. The Cadiz complex will also include a de-ethanization facility where ethane will be removed from the gas stream and delivered into the new ATEX Express ethane pipeline that will run 1,230 miles from Pennsylvania to the Gulf Coast. The propane and heavier natural gas liquids will then flow via pipeline to a new Harrison County fractionation plant for further separation. Below, Marc Grantonic, operator at the new MarkWest cryogenic gas processing facility in Cadiz, works inside the control center for the plant. The plant, which purifies the gas of any acid gases, is expected to begin operations next week. It employs only Ohio workers.

Dix Communications - Gas & Oil

June 2013 Edition

Where energy meets responsibility. At EQT, our commitment to community runs deep. As an integrated energy company with strong Appalachian roots in natural gas production, gathering, transmission and distribution, we are serious about creating new jobs, operating safely and securely, and showing a deep respect for the land and the people who share it with us. With integrity, accountability and transparency, EQT is fueling the growth of our country as a source for clean, abundant and environmentally responsible energy, and helping our local communities reap the rewards.




Gas & Oil

June 2013 Edition - Dix Communications

Southern Zone Edition

Chesapeake, Exelon among the 2013 companies most friendly to veterans


ilitary Times EDGE has announced its staff surLaurie Huffman veyed more than 1,000 Dix Communications major companies and top government contractors with a detailed questionnaire about their recruiting and hiring policies, social recognition for veterans and pay and benefits for reservists. The magazine looked for companies that didn’t just talk about how much they support the military, but had in place tangible policies and programs to help veterans get in the door and feel welcome once inside. Chesapeake Energy Corp was listed among the companies doing the most for veterans in 2013. Chesapeake ranked in 21st place out of total of 53 companies noted for the number of 2012 hirees, with Exelon Corp. following in 40th place. Chesapeake was reported to have hired 11,880 individuals total with nine percent of those being veterans, and in 2012, a total of 3,960, with two percent of those being veterans. Exelon hired 26,000, with nine percent being veterans, and in 2012, the company hired 1,718 people, with 11 percent of those being veterans.

Chesapeake was also listed among those companies with the most benefits for active reservists, as was Exelon Corp., with the companies again ranked in the 21st and 40th place, respectively. Benefits included military spouse policies, medical insurance, life insurance, pay raises, retirement contributions, sick days and vacation days, and whether or not reservists receive their full pay of the full difference between their military and civilian pay, among others. Exelon Energy, based out of Columbus, markets electricity to customers in Illinois, Pennsylvania, and Ohio and natural gas to customers in Illinois, Michigan, and Ohio. Chesapeake Energy is the leading leaseholder in eastern Ohio’s Utica Shale, which produces liquids-rich natural gas.

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

45381 SR 145 LEWISVILLE, OH (740) 567-3317 LARGE VARIETY OF ROLL YOUR OWN TOBACCOS AND TUBES NEW Westside Vapor Rechargeable E-Cigarettes & E-Hookah Flavors





394 S. MAIN STREET, WADSWORTH 330-331-0161







Dix Communications - Gas & Oil

June 2013 Edition


Ribbon cut for new oil and gas land laboratory at Zane State College in Cambridge

The Zane State College OGET Land Laboratory ribbon cutting ceremony was held recently at the Cambridge campus. Shown are, l to r, student Devon McGrath; Cambridge Mayor Tom Orr; College President Dr. Paul Brown; Lynne Sprague; Dan Durfee; College Provost Dr. Chad Brown; Campus Dean Mike Whitson; Robert Stonerock; Paul Palsly and student Stephanie Jones. The simulated oil field created by the land lab is comprised of several stations, including an 18-foot-deep simulated well with a pump jack and a two-barrel storage tank battery — one corrosion protected and one not, so students can witness the effects of corrosion. The land lab will provide Oil and Gas Program students with hands-on learning opportunities as they explore what it is like to work in an oil field.

Lakefront Cabin Rental

The Safety Group, LLC 10901 Clay Pike Derwent, Ohio 43733 Phone (740) 685-8784 • Fax (740) 685-0288 • Oil & Gas Property • Corporate Office Space • Warehouse • Truck & Equipment Storage Yards WE BUILD OR DEVELOP TO SUIT


Located in Eastern Ohio For More Information Call: Ohio Valley Land Co. 740.676.2172 • 740.676.5444 Cell: 740.312.2400 10146204

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


Gas & Oil

June 2013 Edition - Dix Communications

Southern Zone Edition



This is not to say the procedure is cutting corners, it is just a more manageable approach to resolving issues, where everyone is on the same page and everyone is expected to follow the rules. “The one issue that particularly stands out in oil and gas cases coming before the court would be the complexity and variety of the number of issues raised by these cases,” said Ellwood. “Initially, the cases were landowner cases often attempting to recover severed mineral rights or to void older oil and gas leases. The cases now pending before the court have become more complicated and are involving the oil and gas producing companies with issues such as unitization/pooling agreements. There is not one case or issue that is emblematic of the legal process today. The overriding issue with the oil and gas cases coming before the Court is to have a case management plan or procedure in place so the case can be ‘timely’ processed, heard and decided by the court.” Ellwood said the consensus of the roundtable meeting with the judges was that they are all facing similar issues with the oil and gas boom in eastern Ohio. “We are planning another roundtable at a later date. We like to place the judges together as it is a situation where we often learn as much by talking to a peer — a similar judge — as we do from reading the cases,” he said.

dumping oil contaminated waste in a public waterway. “We’re not going to have bad players take down the industry. While we can’t stop all illegal activity, we can respond to it and do it quickly, taking swift and strong action when violations occur,” he said. Of taxing, he said, “Our income taxes are too high and our severance tax is too low.” Even the proposed 4 percent severance tax is significantly lower than other states, making weak the argument an increase would drive companies out of the Ohio. “Oil and gas is a valuable natural resource, and we don’t believe in giving away,” he said. He said the state is also trying to look out for the land owner. “We’re asking that (ownership of mineral rights) be recorded at the (county) recorder’s office. And, if there’s a well on that property, ODNR wants to know where the well is.”


“CNG-POWERED VEHICLES” from pg. 14 fleets have displaced a combined total of more than six million gallons of petroleum. “And, yes, there are government based incentives, tax breaks and grants for CNG projects,” said Conley. Regarding environmental concerns, Conley said gas can be captured from land fills and recycled into organic compost and natural gas, instead of flaring it away. “We want to turn our waste into energy.” Sexton announced an open house, sponsored by EQT, will be at the Byesville Volunteer Fire Dept., Byesville, from 6 to 8 p.m. Wednesday, May 22. Everyone welcome. Also, Ohio Natural Gas Vehicle Partnership event at Zane State’s Zanesville Campus, will be from 11 a.m. to 2 p.m. Thursday, May 16. Panel will discuss NGV training and technician certification. To register, go to zanestatengv.eventbrite. com/ For more information about CNG, visit Ohio NGV Partners at



519 Main St., Pleasant City, Ohio 443772

(740) 685-1199 Andy Mast





Dix Communications - Gas & Oil

June 2013 Edition



6740 Lincoln Way E. • Wooster, OH 44691

330-262-1881 [P] • 330-264-6660 [F]

Serving the Oil & Gas Industry for 20 years. Complete Oilfield Sales, Service and Supplies. New & Used Pipe and Equipment. 10149697

RICK CASPER - 330.466.3510 [C] • TIM BROOKOVER - 330.466.3513 [C]


Gas & Oil

June 2013 Edition - Dix Communications

Southern Zone Edition

Continued development gradually revealing Utica Shale potential

Utica Shale production is expected to increase rapidly as new gas gathering and processing facilities. This new compression facility – built outside of Carrollton, Ohio as part of the Utica East Ohio Buckeye project – utilizes natural gas compressors provided by MidCon Compression, an operating unit of Chesapeake Energy Corp. Ten identical 1775 horsepower gas engines drive reciprocating compressors to compress gas from the Utica Shale and move it through a pipeline to new processing facilities in Eastern Ohio.

from Columbiana and Carroll Counties in the north and extending through three other counties to Noble County to the south. Interestingly, Noble County is the site of the very first commercial oil well drilled in Ohio in 1860. Leases, exploration and drilling operations have expanded steadily, but most wells are just starting to be put into production as investments in infrastructure expansions have lagged drilling. As of early April the ODNR reported only about 81 Utica wells were producing, with 189 more drilled, but not producing because gathering systems and processing plants were not yet in place to handle the gas and liquids. The ODNR report listed 303 more wells permitted or in various stages of completion. Chesapeake Energy Corp., by far Ohio’s most active driller and largest leaseholder with more than one million acres, continues to

$ave on Energy Bills Mobile Homes Flat & Low Slopes Over Rubber Roofs Foundation Coatings

Contractors Welcome Free Estimates 1-800-727-0716 Global Enterprises 10143800


he Utica Shale is relatively rich in natural gas, oil and gas liquids. Early estimates by the Ohio Department of Natural Resources (ODNR) suggest a recoverable reserve potential of as much as 5.5 billion barrels of oil and 15.7 trillion cubic feet (tcf) of natural gas. Some geologists believe that the UtiNorm Shade ca Shale could rival the masPresident, sive Marcellus Shale play in ACI Services potential. At least one industry analyst has opined that the Utica likely will become the nation’s third largest shale producer of oil, natural gas, and gas liquids, after the Bakken in North Dakota and the Eagle Ford in Texas. Some forecasts say that Ohio could be producing 200,000 barrels per day (bpd) of oil from the Utica by 2017, which is small by Bakken and Eagle Ford standards, but a huge increase over Ohio’s 13,000 bpd production rate of the recent past. With development of the Utica in its infancy, more wells will have to be drilled before those forecasts can be validated. In the past year, the eastern Ohio area of the Utica has been heavily targeted for development of oil and natural gas liquids (NGLs). A sweet spot has been identified extending

P.O. Box 156 Mt Hope, OH 44660

Don’t Replace Your Roof - Restore It Metal Restoration Water Proofing Satisfaction Guaranteed

Dix Communications - Gas & Oil

June 2013 Edition


maintain an enormous growth outlook in the Utica Shale area. With 14 drilling rigs operating, Chesapeake expects to more than quadruple its Ohio oil and gas production by the end of 2013. At least 23 other companies have been actively drilling in the Utica, led by Gulfport, Anadarko, Antero, CNX, Devon, Enervest, HG Energy and RE Gas Resources. In February Chesapeake projected that the estimated ultimate recovery (EUR) in its core area of Carroll and surrounding counties will average 5 to 10 billion cubic feet (bcf) of equivalents (combined natural gas, natural gas liquids, and oil) per well over its lifetime. Those estimates are significantly higher Continued on pg. 32 Ron Braucher, Owner


Fleet Maintenance • Inspections Full Service • Trailer Repair Towing Available

“Put Our Experience To Work For You”

New Philadelphia

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


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



Residential Commercial Apartments

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 10151577


Gas & Oil

June 2013 Edition - Dix Communications

Southern Zone Edition

Bulldozer donated for training photos by Jessica Denton/Dix Communications

Gas & Oil Technology course instructor, Bob Givens, left, watches over Anthony Kirby, a senior, as he operates a bulldozer during a recent training session at the high school.

Randy Vaughan, a senior studying in the high school gas and oil program, learns how to balance a bulldozer on a mount of dirt during a recent training session on the school grounds.

Greg Fausel, of Murphy Tractor & Equipment, in Canton, on left, explains how the bulldozer operates that his company donated for use during training at the Marlington High School Gas & Oil Technology program.

Marlington seniors, Alex Hatfield, left, Austin Hoover, and Randy Vaughan, check out the bulldozer donated by Greg Fausel, on right, of Murphy Tractor & Equipment, in Canton.


Dix Communications - Gas & Oil

June 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

June 2013 Edition - Dix Communications

Southern Zone Edition

Utica BOOM still in infancy


t almost goes without saying that Ohio is in the midst of an oil and gas boom, the likes of which it may never experience again. There have been many prior cycles of boom and bust in Ohio, including the Morrow County boom in the 1960s and the development of the Rose Run and Trempealeau formations in the 1980s David J. Wigham and ‘90s. All of these pale in Attorney comparison to the current Utica Shale boom. Indeed, analysts report that the U.S. Shale boom could impact the global economy and geo-political climate, in terms of gas exports, lower energy prices, re-location and re-vitalization of U.S. business sectors and the weakening of OPEC, to name a few. To fully understand the scope and breadth of the Utica Shale play, it is helpful to review the United States Geological Survey (“USGS”) report published in September 2012, which assessed recoverable oil and gas reserves in the Utica Shale formation using current technology. A copy of this report is available at

RUSS JAMES CONTRACTING, INC. In its report the USGS explained that the Utica Shale contains oil and gas in significant quantities that has absorbed into the Shale and which have become recoverable using current horizontal drilling and hydro fracking technology. The USGS defined “sweet spots” for oil and gas bearing areas within the Utica Shale area that cover most of eastern and into central Ohio. In fact, the USGS assessment areas for the Utica Shale estimated about 31,000,000 acres for gas and 15,000,000 acres for oil, truly a vast area in Ohio. The USGS report goes on to provide estimates of recoverable resources using current technology. There is a high likelihood that the Utica Shale holds roughly 940 million barrels of oil, 38.2 trillion cubic feet of gas and 208 million barrels of natural gas liquids. The estimated oil and gas reserves in the Utica Shale sweet spots would require 48,000 gas wells and another 7,000 oil wells to be drilled within the areas defined by the USGS as sweet spots. To put this into perspective, there were less than 10 horizontal wells drilled in 2011 and about 150 wells drilled in 2012. It is estimated that this year approximately 500 horizontal wells will be drilled to the Utica Shale formation in eastern Ohio.

Quality Rent-A-Fence, llc Temporary fencing for construction sites, fairs, festivals and sporting events

We Do Demolition Excavating - Sitework

Russ James or Ryan Wisecarver

Email: Phone: 855-588-1690 Cell: 740-819-1831 web: Contact: Trish James


Email - Phone - 740-588-1690 Russ - 740-819-3291 Ryan- 740-819-3297 web -

Dix Communications - Gas & Oil

As pipeline and processing facilities are completed in 2014 and 2015, thus reducing the infrastructure bottleneck, an even greater rate of Utica development should be expected in years to come. Indeed, this Shale play could continue for at least 20 years. Other current unknowns that could extend this play are 1) developments in technology that could open up even more recoverable reserves and 2) the duration of production of each Utica Shale well and how much production will decline as each well is produced. Given the known quantities of estimated returns using current technology, we are at the very early stages of the Utica Shale boom. Using a baseball analogy, if this were a nine inning game, we are still listening to the Star Spangled Banner and the umpire has not even yelled “play ball.” This Utica boom will likely be an interesting, prosperous and exciting game that should play out for decades to come.

June 2013 Edition


A FREE monthly PublicAtion


David J. Wigham is a second generation oil and gas attorney at the law firm of Critchfield, Critchfield & Johnston, in Wooster, Ohio, with more than 20 years of experience in the industry.

Residential - Agricultural - Privacy Fence Pole Barns - Garages

Barb Wire, Vinyl, Board Fence

R i d g e l in e Fe n c i n g 330-204-7805


Miller’s Clothing and Shoes WRANGLER FR


(330) 364-2688



Come Sample 40+ Fresh Olive Oils & Aged Balsamic Vinegars

Olive Oils • Vinegars

Hours: M-F 10am-5:30pm / Sat. 10am-3pm

330-365-9458 Downtown - corner of High & Second St. SW 106 2nd Street SW, New Philadelphia




Gas & Oil

June 2013 Edition - Dix Communications

“CONTINUED DEVELOPMENT” from pg. 26 than what has been reported from wells drilled in the shallower Marcellus shale in Pennsylvania. Chesapeake and Range Resources have both reported EURs from the Marcellus as high as 4.2 bcf of equivalents per well. The U.S. Geological Survey reports that the average Marcellus well has an EUR of 1.1 bcf of equivalents. Marcellus wells in Pennsylvania tend to produce mostly natural gas, with small volumes of liquids. For the first three months of 2013, Chesapeake reported Utica net production of 60 million cubic feet of natural gas equivalent per day (mmcfd). Although that is less than its earlier estimate of 75 mmcfd, Chesapeake still forecasts a much

Southern Zone Edition

higher production rate of 330 mmcfd by year end as more processing facilities come on line. As of the end of March, Chesapeake reported 249 wells drilled in the Utica play, with 66 producing, another 86 waiting on connection to pipelines and 97 in various stages of completion. In the first three months of 2013, 13 Chesapeake wells began producing for the first time. Overall, production information from Utica Shale wells is still somewhat limited, but several companies area reporting exceptional initial production rates. Chesapeake reported that its Cain well in Jefferson County tested at 1,540 barrels of oil equivalents per day (boepd), including 6.7 mmcfd of natural gas and 425 bpd of natural gas liquids (NGLs). Its Walters well in Carroll County reported 1,140 boepd, including 3.6

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!



1447 South Main St. • Akron, OH 44301 • 330-773-3307 • 1-800-362-7551 Baldor Motors Banner Sensors Dodge Bearings Dodge Couplings

Your Local Supplier for the GAS and OIL Industry

Gates Belts Lovejoy Couplings Martin Sprockets Turck Connectors

Large Inventory Akron, OH

Belt Drives

Cord Sets & Connectivity



Gear Boxes



Chain & Sprockets


Dix Communications - Gas & Oil

mmcfd of natural gas, 315 bpd of oil, and 220 bpd of NGLs. Its Houyouse well in Carroll County came in even better at 1,730 boepd, including 5.4 mmcfd of gas, 525 bpd of oil, and 305 bpd of NGLs. Even better was its Coe well in Carroll County, which was reported at 2,225 boepd, with about one-third being liquids. Rex Energy Corp. announced initial production results from its first Ohio Utica Shale well, Brace #1H, located in Carroll County, at 1,094 boepd composed of 43% NGLs, 31% gas and 26% condensate. Ohio’s biggest well to date is Gulfport Energy’s Shugert well in Belmont County. It tested late last year at an amazing 7,482 boepd, including 28.5 mmcfd of natural gas, 300 bpd of oil and 2,907 bpd of NGLs. Its 9,020 ft. deep Stutzman well in Belmont County reported 4,060 boepd, including 21 mmcfd of natural gas and 945 bpd of NGLs. And its 7,806 ft. deep Clay well in Harrison County was reported at 2,226 boepd, including 5.9 mmcfd of natural gas and 761 bpd of NGLs. Shale wells tend to produce at very high rates initially and then decline rapidly to a lower rate that is sustained for many years. It will therefore be several years before the true potential of the Utica is validated. As infrastructure for gathering and processing more gas is completed over the next couple of years, east-central Ohio‘s Utica play is expected to show rapid increases in production of natural gas, oil and NGLs.

June 2013 Edition


Alliance Pit Stop Tour @ Young Truck Sales, Inc. 4970 Southway St SW, Canton, OH 44706

Fri. June 7, 2013 11 a.m. to 2 p.m.



• See the #12 NASCAR from Alliance Racing • Complimentary BBQ lunch from Jesse’s Best Ribs and Catering • Discounts on Alliance Parts and Gift Card Giveaways • All are welcome!




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




Gas & Oil

June 2013 Edition - Dix Communications

Southern Zone Edition

‘Historic era’ seen for Ohio oil production E

ighty-seven wells tapped into eastern Ohio’s underground shale formations have produced nearly 636,000 barrels of oil and 12.8 billion cubic feet of natural gas in the last year, nearly double the volume produce in 2011, according to a report released Thursday by the Ohio Department of Natural Resources. The number of wells in the state’s Utica formation also grew to 87 from Mark Kovac two. Dix Communications The horizontal hydraulic fracturing, or fracking, wells accounted for 12 percent of the state’s total oil and 16 percent of its total gas production in 2012. And state officials projected that total fracked production will outpace conventional vertical well production within three years.

“... We believe Ohio is now at the beginning of a historic era of oil and gas production,” said Jim Zehringer, director of the Ohio Department of Natural Resources. And state officials are projecting that oil and gas produced from horizontal wells could outpace conventional vertical wells within three years, with about 1,000 of the new wells expected to be in production by 2015. Zehringer said the state is seeing “the beginning of a historic era of oil and gas production.” He added, “The production from these initial Utica wells makes a compelling statement about the staggering amount of oil and gas resources Ohio shale may contain. ... We believe that we are on the onset of a new boom.” Carroll County, called by some the epicenter of the state’s fracking activities, led in the number of wells in production in 2012, with 41. Guernsey County had six, Columbiana and Noble counties had five, and Stark and Tuscarawas counties had two. Mahon-

In Business for Over 47 Years!


Not using the lumber from your felled trees? We want to buy it from you. We are also buyers of standing timber. Call us today for more information!


Forest Management Specialists

Marvin Yoder, owner 10139 St. Rt. 93 NW Dundee OH 44624 330-603-9269



All-Ohio Buildings



P.O. Box 130, C.R. 150 Millersburg, OH 44654


Dix Communications - Gas & Oil

ing, Portage, Wayne and Ashland were among counties with single horizontal wells. A total of a dozen companies had wells in production; more than 50 belonged to Chesapeake Exploration LLC. A single Utica well is producing as much oil as 312 conventional wells and as much natural gas as 448 conventional wells. Additionally, the fracked wells accounted for 12 percent and 16 percent, respectively, of the state’s total oil and gas production in 2012, though the number of conventional wells (nearly 51,000) far outpaced horizontal ones. “Utica shale production is skyrocketing,” Zehringer said. “These wells make up only two-tenths of 1 percent of all the wells in Ohio, yet last year they produced 12 percent of the oil and 16 percent of the natural gas in Ohio.” He added later, “... That’s a lot of home heated, a lot of water warmed, a lot of gasoline refined for Ohio families.” Among other information included in Thursday’s report: • Twenty-seven companies have sought state permits for horizontal wells. Only four have not yet begun to drill, said Rick Simmers, chief of ODNR’s Division of Oil and Gas Resource Management. • More than 688,000 barrels (nearly 2.9 million gallons) of wastewater brine has been produced from fracking activities for wells in production. Most of that likely was disposed of via injection wells, though Simmers said companies are recycling more of the fluid for reuse in future fracking activities.


June 2013 Edition


• Though 87 wells were reported to be in production in 2012, not all of those are active. Seventy-four wells were in production for less than six months, and 32 had less than a month of production. Three wells were actually plugged after being tested. And more wells have gone into production during the current year that are not included in the 2012 report, Simmers said. • At any given time, 30-32 rigs are involved drilling new wells in the state. The time involved to dig each well has decreased from about 30 or more days at the start of the Utica activities to 17-20 days now, Simmers said. • A total of 660 permits, good for up to two years, have been issued to date, with more than 300 horizontal wells already drilled. State officials expect drilling and production to increase as facilities and infrastructure are completed to process the oil and gas produced from the Utica formation.

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.

WORKING FOR THE LAND OWNER Are you unable to benefit from the current gas


and oil boom? Have you received a defect letter? Unsure who owns your gas and oil rights? Is your

53681 Spencer Rd., Cumberland, OH

(740) 638-3942

land held by shallow well production? Call today for your FREE CONSULTATION. Dear Land Owners, my name is Amy Giovannone with Mineral Recapture Services, LLC (MRS). We are a locally based company whose purpose is to work toward recapturing the Gas/Oil interests for landowners by clearing defects so gas and oil is able to be leased, or sold.

Mon. - Fri. 7:00 A.M. - 4:00 P.M. Sat. 7:00 A.M. - 12:00 P.M.

All Limestone Products

or Call f g • Sand and Gravel Haulin s • Aggregate Lime Price 10038257



• Top Soil

Mineral Recapture Services


Gas & Oil

June 2013 Edition - Dix Communications

Southern Zone Edition

Cash is key to future growth


ecently the State of Ohio released data concerning the development of the Utica Shale. And by the State’s account the activity in the Utica will continue to rise as large oil and gas producers keep finding successful wells. Currently, activity in the state is awaiting infrastructure to develop at an even faster pace. David Shallanberger With this development, opportunities are available for businesses to CPA start, grow and thrive by serving the oil and gas industry. Accountants often look historic data to work on many compliance items like tax returns and financial statements. However, entrepreneurs focused on growth cannot rely solely on documents that look at the past. It’s imperative to look forward. One of the more important items for an entrepreneur to focus on is the business’s cash flow. The ability of a business to provide ample cash flow allows the business to plan for growth and expansion. This is especially important as bank lending is trending to focus on a business’s ability to repay the loan and

not necessarily on the net income of the business. Net income is not the same as cash flow. Net income includes items that may not represent cash availability like accounts receivable. Eventually accounts receivable become cash to the business, but receivables are not generally immediately available to pay for things like new equipment or inventory. It often takes a number of days or months to convert receivables into cash that can be used to expand a business. It is only with a true understanding of cash flows that a business can plan for growth. By understanding the business’s cash flows, an entrepreneur begins to understand the business’s cycle time. Cycle time is the amount of time it takes a business to convert cash to inventory, complete sales and then collect on receivables. This cycle time varies from business to business. Until an entrepreneur can understand the business’s cycle time, there is little that can be done to change it. Not understanding cycle time can cause dire effects to a business. It can lead to inventory levels that are unsustainable or obsolete, bloated lines of credit and poor decision making. When put together, these items, an entrepreneur can build a solid financial plan. Having a forward outlook allows a busiContinued on pg. 44


We’ll beat any local price – guaranteed.


Dix Communications - Gas & Oil



LIST: $30,523



Bunkhouse, sleeps 9, ONLY power awning & tongue jack, LCD TV PER MO*

Double bunk slideout, fiberglass, ONLY sleeps 7 Only 5100lbs. Priced to sell fast! PER MO*





LIST: $34,018

LIST: $33,523





Rear kitchen, ONLY large living room, lots of counter top space. PER MO*




“Toy Hauler”, sleeps 6, big ONLY garage, ramp door, generator rack, big slideout. PER MO*







#92848 “Mini Park Model” Huge slideouts, sleeps 8 residential refrigerator, large windows, a must see! LIST: $37018.50








Bunkhouse FW, Tripleside, outside kitchen, a must see.

















#94055 LIST: $19,655

June 2013 Edition





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






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





Greenburg Rd



Rd. by

(330) 896-8977

Mon. & Thurs. ‘till 8 Tues., Wed., Fri. ‘till 6 Saturday 9-4

Mayfair Rd.



Mt. Pleasant St.

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 June 30, 2013. 10151389


Gas & Oil

June 2013 Edition - Dix Communications

Southern Zone Edition

MWCD establishes guidelines for short-term water sales


policy containing upgraded guidelines for the short-term sales of water from the lakes of the Muskingum Watershed Conservancy District that includes provisions for supplies for the oil and gas industry has been approved and will go into effect immediately. Members of the MWCD Kimberly Lewis Board of Directors approved Dix Communications the “Short-Term Water Supply” policy that also limits sales of water for the oil and gas industry to firms that are working in areas near individual MWCD lakes during a meeting May 17 at New Philadelphia. The policy also states that public drinking water supplies remain the priority for withdrawals from the MWCD lakes and that supplying the oil and gas industry must be balanced among the many other multiple benefits of the lakes, including recreation, flood-storage capacity and ensuring acceptable downstream flows. “It has never been the intent nor the goal of the MWCD that its surface-water lakes serve as the sole or a primary source of water for the entire oil and gas industry in Eastern Ohio,” said Sean D. Logan, MWCD’s chief of conservation. “This policy provides very straight-forward guidelines for how requests for sales of water for oil and gas production will be managed by the MWCD.” The 10 permanent MWCD lakes (Atwood, Beach City, Charles Mill, Clendening, Leesville, Piedmont, Pleasant Hill, Seneca, Tappan and Wills Creek lakes) were constructed in the 1930s as part of the flood-reduction system of reservoirs and dams in the Muskingum River Watershed, and for conservation

of water for public benefit. Through the years, short-term sales of water from the MWCD lakes – which are legal and authorized through provisions of the Ohio Revised Code – have occurred for multiple uses, ranging from assistance for local farmers during drought conditions, serving as locations for “dry” fire hydrants for fire departments, public drinking water supply and for construction projects. Guidelines developed by the conservancy district to manage these sales and requests periodically have been updated, too, including most recently in 2010. To date, there have been five individual agreements for sales of water to the oil and gas industry approved by the MWCD Board of Directors for water from Clendening, Piedmont and Seneca lakes. Two of the sales from Clendening Lake in Harrison County have been completed, and a third at that lake recently began operations. The Short-Term Water Supply Policy covers two categories of sales, one for construction and other small withdrawals, and the other for the oil and gas industry. The construction category provides for a specific fee structure, while the category

Ohio’s Largest Hitch & Parts Inventory!

Trailer Sales, Renting & Leasing - Repair & Service - Hitches Over 300 Hitches in Stock

Refuse Trailer

COMMERCIAL PROPERTY 82 acres comes with 35x80 manufacturing building w/office & bathroom. 3-phase electric, county water, very private off of state route. St. Marys, WV $225,000 Owner financing


1750 E Waterloo Rd

1 mile east of I-77 (Rt. 224)



Call 330-606-2465

Pipe Trailer


330-798-1698 800-691-9914

Potty Trailer


1220 30th St. NE

3 miles east of I-77 (Rt. 30)

330-580-4445 800-311-1260

Dix Communications - Gas & Oil

- Sean Logan


for “mineral production and other large consumptive uses” sets fees at market or near-market rate, along with refundable and non-refundable security deposits. The MWCD previously announced that a special fund has been created for proceeds from the sale of water to the oil-and-gas industry and those revenues will be used for water-quality improvement projects in the region. Logan said supplying water from the MWCD lakes for oiland-gas development near the reservoirs also serves as a way to reduce tens of thousands of potential tanker-truck trips across township roads that are not designed to hold up to the constant pounding. The agreements approved by the MWCD for water sales at Clendening Lake eliminated an estimated 14,000 oneway tanker-truck trips, because of the temporary pipeline system utilized from the lake to the well site, Logan said. Letters of support have been received by the MWCD from both The Nature Conservancy and the Ohio Township Association for water sales from the MWCD lakes to the oil-and-gas industry

Easy Star ting


for operations around the lakes as a method to reduce tanker truck traffic and road damage. “This has been an evolving process and the industry’s increasing work in Eastern Ohio and near the MWCD lakes makes it a natural that they will look toward the lakes as a source of water for the hydraulic fracturing process in the Utica Shale development,” Logan said. “But it is very important for the MWCD to protect the reservoirs and protect the water in the lakes through documented conservation practices that also balance the benefits they create.” According to the policy, buyers of water from the MWCD lakes for use in the oil-and-gas industry also must agree that the MWCD has complete authority to suspend or terminate the supply agree-

“This policy provides very straightforward guidelines for how requests for sales of water for oil and gas production will be managed by the MWCD.”

Super Quiet!

June 2013 Edition

Continued on pg. 44

House of Hunan fi n e c hi n ese c ui si n e


High Quality & Healthy Food

Lg Menu Selection • Special Orders Available Completely Remodeled & Redecorated Hours: Sun. - Thurs. 11am - 9 pm • Fri. & Sat. 11am - 930 pm original owner

CARRY OUT & DINE IN AVAILABLE 2327 E. Wheeling Ave., Cambridge 439-5252

Our #1 Selling Chainsaw

A Precise Powerful Choice for Landscaping Professionals 10149256



7700 St. Rt. 241, Millersburg, Ohio Mon.-Fri. 6:30-5:30 Sat. 7:00-12:00


Gas & Oil

June 2013 Edition - Dix Communications

Southern Zone Edition

What is this ‘well’ they just drilled?


s landowner advocates, we have noticed an unusual trend in recent months. Some “shallow” producers have been hastily drilling shallow wells, and then doing nothing to produce from these wells. Some background. From 2000 until 2010, before the “shale” boom arrived in force, local and Ethan Vessels regional producers were signing Marietta Attorney leases with landowners much as they had in the previous hundred years. Of course, by signing, the landowners relinquished the rights to the oil and gas on the property to the lessee (the producer who leased those rights). As with virtually all leases, the leases contain a definite “primary” term, usually one to five years. Then, there is an indefinite “secondary” term that holds the lease open so long as gas or oil is produced. Put differ-

ently, if gas or oil is not produced by the end of the primary term, the lease expires. Curiously, a few of these local and regional producers did nothing with these leases during the last decade. No drilling. No producing. Nothing. Alas, with only weeks remaining until the leases expired, these producers hastily drilled shallow holes on these properties. Yet, they failed to produce the wells. The wells are not fractured. They are not hooked up.They are capped. Why? We feel certain that their only purpose is to avoid letting the leases expire. These wells are “shams” in our opinion. These are not “wells” designed to extract to gas, but to provide the illusion that the producer has complied with the lease. The shallow producer’s purpose, of course, is to re-sell those gas rights to a company that will drill and extract from the Utica shale—while keeping the up-front bonus and excess royalties for itself. It is cheating the landowners, in our opinion. Is this legal? We don’t think so. Under Ohio law, the lessee of an oil & gas lease has a duty to exercise “due diligence” during the primary

“These wells are ‘shams’ in our opinion ... Is this legal? We don’t think so.”

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)


Dix Communications - Gas & Oil

Continued on pg. 44


Delivering Excellence Since 1934


FR Apparel and Accessories New and Used

• Personalized Corporate Wear • Polos and Caps • Discounts Available on Large Quantities Call, Stop In, or go to


term of the lease to produce gas. In 1955, the Ohio Supreme Court held in a case called Hanna v. Shorts that a gas lease expires at the end of the primary term unless: (1) gas or oil is actually being produced, (2) the landowner agreed to extend the lease, or (3) the landowner prevented the lessee from producing. On the other hand…some leases have “commencement” clauses. These clauses specify that if the lessee has “commenced” drilling operations at the end of the lease, the lease will remain active as the lessee attempts to get the well in production. Of course, the lease must contain this clause in order to invoke the “commencement” argument. And, yet still on the other hand…even with “commencement” clauses, courts have held that the lessee must be acting in good faith, in a bona fide attempt to produce oil or gas. Courts have held that drilling solely for the purpose of extending the lease is a mere pretense—not a bona fide attempt to produce. What can you do? First, do not try to hinder the shallow producer in any way. If you do, the producer will complain that you prevented the success of the bogus well. Second, you need to call a lawyer. The only recourse is to file a lawsuit to have a court declare that the lease expired. These are complicated cases and depend on several factors: the exact language of the lease; when the well was drilled; the

June 2013 Edition

Mention or bring in this ad for 15% off 224 Dewey Avenue • Cambridge, OH • 740 255.5278

Kenworth of Canton is located in Canton, Ohio this dealership is a 10-bay full service facility and is just off I-77 to the south of State Route 30. The Canton dealership sells and services new and used class 7-8 trucks. At both of these locations our Parts departments have a large inventory of trucks parts to meet your needs. Also offering free delivery of parts to your location.

Kenworth of Canton

3350 Bruening Ave SW Canton, OH 44706


Kenworth of Richfield is the oldest and largest dealership in our organization. Located in Northeast Ohio, Kenworth of Richfield serves the greater Cleveland and Akron areas with easy interstate access. Kenworth of Richfield offers New and Used Truck sales, Heavy Duty Truck Parts, Service Department (open two shifts daily) and full collision repair capabilities.

Kenworth of Richfield

2890 Brecksville Rd Richfield, OH 44286




Gas & Oil

June 2013 Edition - Dix Communications

Southern Zone Edition

Alliance focusing on gas and oil development in eastern Ohio Judie Perkowski Dix Communications


t was a who’s who of state, regional and local politicians, executives and business people who met at the Carlisle Inn for the 23rd annual meeting of the Eastern Ohio Development Alliance. The EODA is an independent, nonprofit organization of 16 eastern and southeastern Ohio counties that promotes economic growth in the region. And, in eastern Ohio economic growth is oil and gas. The meeting’s agenda included a speaker from a company immersed in oil and gas development and a speaker at the helm of Ohio’s oil and gas regulatory agency, in addition to the presentation of EODA Excellence Awards. EODA President Tracy Drake welcomed 200 attendees and introduced EODA board members and array of politicians. Dale Hileman, executive director of EODA, introduced keynote speaker Jack Partridge, president of Columbia Gas/ NiSource. NiSource is the parent company of Columbia Gas. “There is incredible growth on the horizon in the oil and gas industry. It’s an exciting time for all of us,” said Partridge. “Decades low natural gas prices have presented an opportunity

for us to do more for our customers. “We have made a commitment to invest $2 billion over the next 25 years with 4,000 miles of new durable plastic pipelines to replace the old, worn out, rusted pipe. We will spend $15 million this year and $60 million over the next five years.” Partridge said other developments which will benefit customers include: “No more estimated bills, everything will be computerized and accurate. And, our home energy audit program to reduce natural gas usage has been very successful. An energy audit can reduce gas usage by up to 30 percent. “The Utica Shale boom is one of the most profound events in U.S. history in 100 years ... It will leverage wealth for future prosperity. We are all in this together, we are in a position for long-term prosperity. Appalachia has suffered through generational poverty, it is time to set the table for generational prosperity.” State Rep. Dave Hall reiterated remarks about the Utica Shale by Partridge, and added that “Kasich has all hands on deck involving oil and gas. This is not a Democrat or Republican issue. We learned from the mistakes made by other states, and as a result, Ohio has the best standards in the nation, and


• Complete Oil Field Services • Frac Support

AUTOMOTIVE HEADQUARTERS • Complete Auto and Truck Service Center

• Completion support • General Excavation

• Seven Service Bays • Most Repairs Done in One Day!

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

J&D Automotive and Transmissions Treating Customers Right Since 1984

One Mile from Interstate 70 on East Side of Zanesville on Richards Road Across from Vocational School. Parts and Labor For 12 Months or 12,000 Miles Warranty Foreign - Domestic - Commercial Reputation Built On Quality. We can Handle Any Transmission!

Wade Pol, President 10138954

357 Richards Rd Zanesville, OH 740-454-8013


Monday - Friday 8am-5pm

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

Dix Communications - Gas & Oil

June 2013 Edition


Hydraulic Solution Center

Dale Hileman, l, executive director of the Eastern Ohio Development Alliance, Jack Partridge, c, president of Columbua Gas/NiSource, and Sam Speck, r, former president of Muskingum University and founder of the EODA, at the EODA’s annual meeting Friday in Walnut Creek.

Continued on pg. 52

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


maybe in the world. “They [those in the oil and gas business] know about eastern Ohio in Texas ... They even knew where Carroll County is. We have a long way to go, but we have great leadership.” Speaking about the regulatory role governing the oil and gas industry, Jim Zehringer, director of the Ohio Department of Natural Resources, said Ohio is blessed with many natural resources: an abundance of water, gas, coal, wildlife and parks. “Oil and gas regulations are in place to protect our resources, and to ensure all oil and gas operations are safe and efficient. “We have learned from the mistakes made in West Virginia and Pennsylvania, who told us to have regulations, people and taxes in place. Which we did with Senate Bill 315. The regulations which monitor the industry are clear and complete. So far this year, 297 wells have been drilled in the Utica Shale, predicted to increase to 750 by the end of the year, to 1,500 in 2014 and 2,250 in 2015. Regarding the governor’s plan for increasing the severance tax, Zehringer said, “the severance tax is in desperate need of revision, it has been the same for more than 10 years. We need to be competitive ... He [Kasich] doesn’t want Ohio giving away our natural resources.” The meeting culminated in the presentation of EODA Excellence awards. Cambridge Packaging owners/operators Larry and Bill Knellinger were presented the Small Business Excellence Award for their continued expansion of the company since its inception by their parents, Dick and Peggy Knellinger, who started the business in 1982 in their basement. The company is a manufacturer of corrugated products and a distributor of packaging and shipping supplies. Its 120,000 square-foot facility on Southgate Road in Cambridge includes the Box & Gift Shop, providing UPS shipping, gift wrapping, packing supplies, gift and shipping boxes and packing service. Larry credited the success of the business to the work ethic inspired by their parents and their dedication to community

330-601-0430 CHARLESTON (DUNBAR) 901 Dunbar Ave. Dunbar, WV 25064

304-766-0070 WHEELING

3600 Wetzel St. Wheeling, WV 26003

304-232-6006 E-mail: •


Gas & Oil

June 2013 Edition - Dix Communications

“CASH IS KEY” from pg. 36 ness to know when it needs to expand or contract. Understanding cash flows affords the business the ability to know how it can finance those plans. Putting all of this information into a comprehensive financial plan allows a business to be more than just a business – it becomes an investment. Owners should treat their business as an asset, working to increase its value in order to fund future goals and desires. As the Utica Play continues to develop, it will bring many opportunities for entrepreneurs who are willing to take risks and work hard. Those who will experience success are those who look and plan for the future – and who have enough cash in the bank to take advantage of opportunities as they arise. “MWCD ESTABLISHES GUIDELINES” from pg. 38 ments for any purpose. Other terms and conditions that will be included in agreements for short-term water sales to the oil-and-gas industry include: No withdrawals of water can occur during the months of February, March and April unless waived by the MWCD. Withdrawals can occur during the specific periods of the months of May, June and July; the months of August, September and October; and the months of November, December and January.

Southern Zone Edition

Each of the specified periods results in a new agreement that must be developed, with subsequent renewal agreements for the next period not needing specific approval by the board of directors. Agreements for renewals beyond 12 consecutive months must be approved by the board of directors. The MWCD also will approve of potential sites where water will be withdrawn from the lakes, and consult with other agencies and partners, such as the U.S. Army Corps of Engineers, as necessary, the policy states. “WHAT IS THIS WELL?” from pg. 40 efforts made to produce the well; and the level of any production (if any). Disclaimer. As with all articles on legal issues, this article is intended for educational and informational purposes. The reader should not rely on this article as a substitute for actual legal advice regarding his or her particular case. You should consult an attorney regarding the specifics of your situation. Ethan Vessels is an attorney in Marietta, Ohio with the firm of Fields, Dehmlow & Vessels, LLC. His firm is actively representing landowners throughout East and Southeast Ohio regarding oil & gas lease forfeiture actions, lease disputes, and other oil & gas matters. Visit for more information.

“I’m yet.” “I’mnot not ready ready yet.” (What notready ready for?) (Whatisisititthat that you’re you’re not for?)

Move to Copeland Oakswhile while still still active, you can enjoy everything Move to Copeland Oaks active,and and you can enjoy everything do now, only more.With With maintenance-free maintenance-free living, wonderful you you do now, only more. living, wonderful friends, quality healthcare care and and services if the need arises, friends, andand quality health servicesavailable available if the need arises, now is the ideal time to secure your future. And peace of mind. now is the ideal time to secure your future. And peace of mind. When you’re ready, callus usat at (800) (800) 222-4640. When you’re ready, call 222-4640. Copeland Oaks welcomes peopleof of all all faiths. Copeland Oaks welcomes people faiths.

800 South 15th Street • Sebring, Ohio 44672 • 800 South 15th Street • Sebring, Ohio 44672 •


OhiO’s COmplete seniOr living DestinatiOn OhiO’s COmplete seniOr living DestinatiOn

Dix Communications - Gas & Oil

June 2013 Edition











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


Gas & Oil

June 2013 Edition - Dix Communications

Southern Zone Edition

Keystone Pipeline Would Create American Energy and Jobs


he United States is the largest consumer of petroleum in the world, importing more than $8 million barrels of oil each day. Americans rely on oil for everyday tasks like filling their gas tanks and heating their homes. So the importance of crude oil cannot be understated. Brian Hill Ohio, especially the eastern State Representative part of the state, has a tremendous opportunity for producing oil and natural gas, which can supplement some of our consumption needs. But I have long believed that the United States should do more to develop its potential for oil extraction and production, both to move towards energy independence and create jobs. Construction of the TransCanada Keystone XL Pipeline

ocay owned since

would help the country achieve these goals. By no means would it eliminate all dependence on foreign countries, but it would be a step in the right direction. Unfortunately, the completion of this project has been sidelined by the Obama administration. Because this is a federal issue, there is very little that the State of Ohio can do to move the mission forward. However, the Ohio House last month passed House Concurrent Resolution 9, urging the US State Department to approve the process of constructing and operating the Keystone Pipeline. The resolution passed the House by an 86-7 vote. Our country is rich in energy resources, and not moving ahead on using these resources can be very damaging. It is not a project that can be completed overnight, but continuing to delay the development of our own energy sources can put our nation in a very troubling position should our demand for foreign oil ever not be met. I eagerly supported HCR 9 because I believe it is important that all of us do whatever we can to move the United States in the direction of energy independence. Two-thirds of Americans support the construction of the Keystone Pipeline, according to poll results published by USA Today earlier this month. I think this indicates that most Americans understand the importance of this issue, and I urge the president and the State Department to approve the completion of this important project.


oil & Gas

Rep. Hill may be reached by calling (614) 644-6014, e-mailing, or writing to State Representative Brian Hill, 77 S. High St., Columbus, OH 43215.

p r o d u c e r // l e a s e s

Your area specialist. gerald benson // President // 740.685.0404

Sparta Steel & Equipment Corp.

Mark a. benson // exec. Vice President // 740.801.0808 Mike Young // belle Valley associate // 740.680.3609


• Shearing • Saw Cut • Plate Burning • C.A.D. Burning 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 P.O. Box 7


10341 Pioneer Road


Byesville, Ohio 43723



• 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

Dix Communications - Gas & Oil

June 2013 Edition



by the numbers


15 0 5 0 6 0 0 26

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


3 51 Wells Permitted 12 Wells Drilling 223 Wells Drilled 0 Not Drilled 10 0 Wells Producing 0 Inactive 0 Plugged 686 Total Horizontal Permits

Data as of 5/25/13 Source: Ohio Department of Natural Resources

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

We Smoke our meatS With hickory StickS from carroll county!

Just off the Historic Lincoln Highway Minerva, Ohio 44657 Open 7 AM to 9 PM Daily

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


Visit Us At for More Kishman’s Information!



Buy Groceries - EARN FREE GAS!

or Email


Gas & Oil

June 2013 Edition - Dix Communications

Southern Zone Edition

Gas/oil instructor retires Laurie Huffman Dix Communications


he instructor of Marlington High School’s Gas & Oil Technology course will retire at the end of the school year, but the program will continue as is. Bob Givens, who helped design and launch the model program within the Stark County high school, said the district has posted his position and has received at least a couple of applications already. “The school took a big risk in starting the program, especially since there was no budget for it. But it’s worked out really well,” said Givens. “So, the school officials said they will keep it going. “Several teachers have applied for the job, so there are people who are interested. Plus, all the information and contacts I have on my computer, on tests, and videos, has been gathered and included in PowerPoint presentations that will be passed down to the new instructor as well.” Givens said the program took off much quicker than he anticipated. “Networking has been the key, and between news stories and the people we know in the industry, we’ve had a lot of help getting it started,” Givens added. The two-year course, the first offered in any high school in Ohio, is offered to juniors and seniors. There are 10 juniors and 10 seniors scheduled to complete the program this year, and Givens said there are jobs available for all who want them.

“The school took a big risk in starting the program, especially since there was no budget for it. But it’s worked out really well.” -Bob Givens Roofing, Siding, Garages, Pole Barns



Fresno, Ohio


Bob Givens , instructor of Marlington High School’s Gas & Oil Technology course

However, some of the positions involve traveling one to two hours each way, and the students elected to try to find jobs closer to home. The possibility exists, as two seniors have already secured positions within the field, and two more have been shadowing workers at Whipstock, a Canton-based gas services company. Some of the seniors are still interviewing and some are trying to decide whether they wish to continue gas and oil studies at the college level. Givens said the course curriculum has been sent to Marietta for use by a group of educators who are hoping to get a similar program going in southeast Ohio. The consortium includes Gary Williams of Washington State Community College and the new superintendent of the Ohio State Department of Education, Richard Ross. In fact, a meeting has been called for later this month at Marlington with the two men and other officials from the state and the gas and oil industry. “Even after I retire, I will continue to volunteer my services to help with these efforts,” Givens said.

Dix Communications - Gas & Oil

June 2013 Edition


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

Experienced In: Technical Staffing for Shale Oil and Gas

14 Whitehall Drive Akron, Ohio 44278 888-262-3226


10150638 888-262-3226 Call Now!

Anderson Propane Service, LLC Anderson Propane Services, LLC has been in the bulk propane business since 1999 and has 35 years of propane experience. We are a family owned business and have expanded our business to the Muskingum County area as well to better serve the area allowing us to cover a geographical territory from Columbus to Marietta.



• Oil Field Industry • Portable dispensing units for filling D.O.T. tanks 20, 30 & 40 lbers • Units on Skids • L.P.G Gas Hoses 350 P.S.I working Pressure • High Pressure Regulators to deliver gas where you need it. • 100 gallon to 1000 gallon ASMF tanks for little jobs to big jobs heating frac tanks to flaring gas in the drilling or completing stages • Tanks for small heaters to campers for your workers (your most important asset) • We offer 20 – 30lb cylinder cages with OSHA warning stickers. • Safeland Certified

Highest Quality Service Lock Ins to hedge against high winter rates Option to pre-buy your gas in the summer with monthly installments & budgets

We have a combined 90,000 gallons of Propane Storage, 4 delivery trucks, 4 service trucks 18003 Suite #1 • Caldwell Ohio 43724 1-888-596-5153 Office 740-732-2030 • Cell 740-581-2788



Gas & Oil

June 2013 Edition - Dix Communications

Southern Zone Edition

Employee-owned business making its success story


n employee-owned business in Zanesville, Producers Services Corporation, has seen growth in recent years due to the increase in gas and oil drilling in the region. Jim Rose has been involved in the gas and oil industry since he graduated from Marietta College in 1976 with a bachelor’s degree in petroleum engineering. He met his wife of 35 years, Annie, who graduated the same year from Marietta majoring in art and mathematics. After graduation Rose went to work for Dowell, the Gas & Oil Division of Dow Chemical in Midland, Mich. where he was employed for eight years. But, when a chance to work for a company in Ohio arose, he jumped at the offer and began working for Producers Service Corporation in 1984 as vice president of sales, never giving a second thought to becoming one of its owners. The couple moved to Zanesville and lived there until 1994

Judie Perkowski Dix Communications

when they moved to Wheeling W.Va. when Annie was offered a position as head of online and distance learning at West Liberty University. Rose said he commutes to the Zanesville office weekly. Producers Service Corp. was founded in 1981 by a dozen gas and oil producers who left Haliburton to form their own company. The business was designed to be a local supplier of fracturing and acidizing services. Acidizing is a method by which petroleum bearing limestone or sandstone formations are injected with an acid to enlarge the pore spaces and passages through which reservoir fluids can flow. Everything was going pretty good for Rose, who joined the firm in 1984 — until the economy tanked in the late 1980s. Even with all their expertise in the industry, the business suffered some lean years. “We struggled. We all took pay cuts ... we were all in it together, and we hung in there,” said Rose. “Then, in 1994, the stockholders (owners) decided to sell the company. They were going to sell all the equipment overseas,

Agricultural & Industrial Service & Repair

Growing for over 65 years!

Hydraulic Cylinders • Mobile Wet Lines Hoses & Fittings • Machining & Fabrication Testing, Diagnostics & Repair of Cylinders Pumps & Motors 10149660

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

Buy Direct from the Grower and Save $

330-866-5521 or Toll Free 800-521-7328

Special Special Savings Savings Commercial or Residential Planting Jobs, Throughout ThroughoutThe The Store Store Wholesale Christmas trees and B&B Evergreens, NEW NEWSPRING SPRING&& SUMMER SUMMERDRESSES, DRESSES,NOW NOW

We are the Evergreen Experts!

670 670W.W.STATE STATEST., ST.,ALLIANCE ALLIANCE Mon. Mon. - Fri., - Fri., 10-6 10-6 Sat., Sat., 10-5 10-5


330-821-1630 330-821-1630oror 1-800-331-5255 1-800-331-5255

10151195 1015119500 1015119500

30% 30% off off 12 Months of Privacy for your sites

Dix Communications - Gas & Oil

The Colonel Taylor Inn BED & BREAKFAST

Welcomes the oil & gas industry and all other professionals



– Listed on the National Register of Historical Places –


“We Always Have Time For You”

Lori Frank, Broker




and even worse, we would all lose our jobs. So, about 10 of us talked about buying the company and asked for the opportunity to present it to the owners. “We put together an Employee Stock Ownership d Plan,” he said. Most ESOPs are used to e provide a market for the shares of a departing owner s of a profitable, closely held - Jim Rose, vice president of sales company.* for Producers Service Corporation “The company’s board of directors gave us 90 days to have a signed deal. Part of the d deal was that the company was allowed to stay operational to h retain its customers. The biggest struggle was with the bank. They were not sure if we could actually run the business. e “Our down payment included all of our combined profit. sharing and selling off one crew (six) of our trucks. We came up with about $2 million, and the bank loaned us the balance of $3 million. We were elated ... We were in business for ourselves!” “Everything was great, we are a 100 percent employeee Continued on pg. 60 ,

June 2013 Edition

648 Wheeling Ave., Suite B, Cambridge 439-1111 28 E. Main, New Concord 826-7557 Zanesville • (740) 454-6777 Coshocton • (740) 622-7653 Dennison • (740) 229-7231 New Lexington • (740) 343-4161

SEVERAL CAMBRIDGE PROPERTIES FOR SALE OR LEASE 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. $175,000. Call Howard Dennis @ 584-5649.

GREAT COMMERCIAL PROPERTY 7½ Acres, 4800 Sq. Ft. Multi Commercial Use. There are (3) buildings and (1) bay on this 7.5 Acres. The green building is 32’x80’, the middle building is 30’x30’ and the front building is 30x’36’. The green building is currently being used as a Hair Salon and rent is $1600.00 per month @ 61074 Southgate Rd. MLS #3399306. Call Carol Goff @ 819-2301.

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

June 2013 Edition - Dix Communications

Southern Zone Edition

“GAS & OIL DEVELOPMENT” from pg. 42 service. “We are the second generation, we are instilling that same work ethic and involvement in community service into the third generation — our children,” he said. The Knellinger brothers also received a commendation signed by Gov. John Kasich and Lt. Gov. Mary Taylor. Cambridge Mayor Tom Orr congratulated the Knellingers on their “much deserved” award and said, “the Knellinger family has always been associated with helping others whenever and wherever they can. Their work ethic and generosity epitomize the kind of people who could make any business community successful. We are very proud they call Cambridge their home.” Other 2013 Excellence Award recipients were Pioneer Pipe, Inc., Washington County, Manufacturing Excellence Award; Historic Fort Steuben, Jefferson County for Tourism Excellence Award; and the C.A. Joseph Co., Jefferson County, for Emerging Business Excellence Award. Belmont College Foundation received the Don Myers Legacy Fund award of $1,000 from the Foundation for Appalachia Ohio. Cara Dingus Brook, president and CEO of the FAO, presented the check.

Norm Blanchard, executive director of the Cambridge/Guernsey County Community Improvement Corp., third from l, presents Bill Knellinger, l, and Larry Knellinger, second from l, owners/operators of Cambridge Packaging, with the 2013 Small Business Excellence Award at the Eastern Ohio Development Alliance meeting at the Carlisle Inn in Walnut Creek on Friday. After Blanchard is EODA President Tracy Drake and Jack Partridge, president of Columbia Gas in Columbus.

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.


Dix Communications - Gas & Oil

June 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

June 2013 Edition - Dix Communications

Southern Zone Edition

Barnesville council mulls ways to invest $7M V

illage Council members continue to weigh investment options to generate returns from approximately $7 million of money received from gas and oil leases of village property and the sale of water to companies drilling in the area. At an April meeting, finance committee member Terry McCort said investment professionals from HunCathryn Stanley tington Bank, MultiBank Securities, Barnesville Bureau Star Plus and WesBanco have made presentations and recommendations. He shared options with fellow council members, who decided a work session should be held with those companies, as well as at least one investment firm. McCort said the companies identified four different areas of investment. He said Huntington suggested a savings-type account with a higher interest percentage and the other three companies offered investment portfolios. All companies were advised of the village’s past investments and the Ohio Revised Code requirements.

Councilman Brad Hudson felt council needed to act soon to take advantage of interest earnings on the money, while Economic Development Director Bill Knox urged caution. “You have millions of tax payer dollars. You have been prudent to date. This needs to be as open and transparent of a process as possible, not only with the firms but with the public too,” Knox said.

49381 State Route 250, Harrisville, OH 43974

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

May Special - Free Service Inspection



TRUST MATTERS. Especially When It’s Your Money. Have you ever wondered who your financial consultant really works for? I work strictly for you. I work hard to build a relationship of trust by providing thoughtful, unbiased guidance and placing your interests first. Invest with a knowledgeable financial consultant who’s on your side; someone who truly cares whether your investments are right for you. Call today for more information or to schedule a consultation.

Heritage Financial & Investment Services, LLC. Financial & Estate Planning/Investment & Insurance Services

Nikki V. Baker-Lude, CFP®, ChFC® LPL Financial Advisor 117 N. Main Street, Suite 22 Woodsfield, OH 43793 Office: 740-472-9161 Securities and Financial Planning offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC


Dix Communications - Gas & Oil

June 2013 Edition



Gas & Oil

June 2013 Edition - Dix Communications

Southern Zone Edition

‘Landmen’ say to insist on a professional


andowners across America have a new way to be confident negotiating oil and gas leases: the AAPL membership mark. Since 1956, members of the American Association of Professional Landmen (AAPL) have publicly committed to abiding by the association’s Code of Ethics and Standards of Practice for the land profession. That means landowners who interact with AAPL members to lease oil and gas rights on their property can have confidence they’ll be treated in a fair and ethical manner. Last year, AAPL made it easier for the public to identify a landman who has made that commitment by creating a membership mark . Jim Dewbre, president of AAPL, explained, “An oil and gas lease is a serious commitment that should be entered into carefully and thoughtfully. When landowners insist on working with an AAPL member to negotiate that lease, they know they’re working with a professional landman committed to operating ethically.” AAPL announced the mark through an advertising campaign last summer in the Eagle Ford Shale. The advertisements encouraged the public to “insist on a professional” and directed landowners to, a new website for the public that

describes the land profession and explains what landowners should expect from landmen. A second advertising campaign is currently running through the Marcellus Shale region through May. The advertisements can be seen in newspapers throughout the shale play and on billboards along main thoroughfares in the area. To learn more, visit

Pumps • Cylinders • Hose Assemblies Fabrication • Testing & Diagnosis Supplies • We Make Hoses While You Wait

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

960 N Wooster Ave, Strasburg, OH





Enter at Checkout. Exp. 12/31/13

• Huge selection of windshields, roofs, winches, plows, hunting accessories, mirrors, performance parts, tires and wheels, lights, and much more • Headquarters are in Ohio • Fast and Free shipping on all orders over $250





Dix Communications - Gas & Oil

June 2013 Edition


AUCTION Exciting Real Estate Auction


SATURDAY - JUNE 29, 2013 - 11:00AM REAL ESTATE SELLS AT 12 NOON Exciting Real Estate Auction 590 Acre Harrison County Farm All Adjoining Outstanding Remodeled Victorian Home & Barn With Elaborate Pool and Waterfalls 231 Acre Parcel With Farmhouse & Good Pole Buildings Boarders Railroad * Lake - Woods - Fields - Pastures - Water * Former Elk Farm With 10 Ft. Fencing Germano Twp. - Harrison County, Ohio Just West of Wheeling & Pittsburgh Also Selling: (2) J.D. Tractors - Backhoe - Dozer Equipment - Trailers - ATV’s - Tools Elk Handling Facilities Absolute auction, all sells to the highest bidders on location: 90479 MILLER STATION RD. HOPEDALE, OH 43976. Directions: Take SR 9 south of Carrollton to SR 646 and go east to Miller Station Rd. and south to auction, or take US Rt. 22 west of Steubenville to SR 646 and continue west to auction. Watch for KIKO signs… SATURDAY - JUNE 29, 2013 - 11:00AM REAL ESTATE SELLS AT 12 NOON 590 acres - all adjoining - frontage on SR 646, Miller Station Rd., Mader Rd. and railroad - rolling land with a good mix of woods, pasture & tillable land - large strip lake & several smaller ponds - beautiful hilltop& valley views. PARCEL #1: 46613 ANNAPOLIS RD. HOPEDALE, OH. - Approx. 8.5 acres. Outstanding remodeled Victorian century home with approx. 4,634 sq. ft. of living space. Elaborate custom inground swimming pool w/massive waterfall backdrop including tons & tons of sandstone & rock plus hot tub. Also, 24 X 40’ steel. PARCEL #2: 90479 MILLER STATION RD. HOPEDALE, OH. Approx. 231 acres total - clean 2 story farmhouse - original bank barn - pole building w/farm offices & labs, heated shop w/overhead doors and equipment storage - (2) additional pole barns w/concrete adaptable for livestock and add’l. pole barn with 3 overhead doors w/ covered feedlot. Several divided pastures. Lays real nice.

PARCEL #3: Approx. 80 acres with lake. PARCEL #4: Approx. 95 acres rolling wooded land. PARCEL #5: Approx. 68 acres with woods & pastures. PARCEL #6: Approx. 37.3 acres just south of Parcel #1. PARCEL #7: Approx. 40 acres woods & fields. PARCEL #8: Approx. 30.8 acres with old two story log cabin in need of major restoration. NOTE: Walk these parcels at your convenience. Arial maps on Kiko website. TRACTORS - TRAILERS - EQUIPMENT - TOOLS: JD 6400 MFWD tractor w/JD 640 loader - JD 2550 diesel tractor w/loader - Case 580K Construction King backhoe - JD 450E dozer w/winch - 1997 Featherlite alum. stock trailer, gooseneck, 20 ft. - Gooseneck 20 ft. flatbed trailer - JD 15 ft. batwing rotary mower - assorted shop tools. ELK HANDLING FACILITIES - MOUNTS - BINS: (2) Elk handling facilities w/ steel gates & pens to be removed - (2) Reid squeeze chutes - Semen tank - s.s. tables (2) lg. Elk head mounts - Elk antler sheds - (2) grain bins (one is Brock) - Piebald full body deer mount - etc. VEHICLES - ATV’S: 1990 Range Rover 4 X 4, 4 door - 2003 F-350 XL Super Duty flatbed truck - JD 625 gator - Honda 4 wheeler - Pug 4 X 4 articulate utility vehicle JD 825 Gator. NOTE: Possibly once in a lifetime opportunity! SALE ORDER: 11:00AM small tools, 12 NOON Real Estate followed by large equipment. AUCTIONEER/REALTOR: Matthew P. Kiko, AARE, 330-327-9617 - mattkiko@ REAL ESTATE BY ORDER OF: Gary & Mary Ann McBride CHATTELS - AUCTION BY ORDER OF: Wild ‘N Wooly Acres, Inc. KIKO Auctioneers 2722 Fulton Dr. NW, Canton, OH. 44718 (330) 455-9357

“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

June 2013 Edition - Dix Communications

Southern Zone Edition

Exterran opens facility in Youngstown


ov. John Kasich and executives from Houston-based Exterran celebrated the grand opening of Exterran’s new 65,000-square-foot production equipment fabrication facility in Youngstown on May 7 with a ceremonial ribbon-cutting. The new facility, expected to employ more than 100 workers, is dedicated to the fabrication of production equipment used to treat or otherwise process natural gas and oil after it is extracted from the ground, such as separation, dehydration, natural gas conditioning, oil treating and conditioning, filtration and air emissions control. The facility’s streamlined lean manufacturing process shortens lead times, increases manufacturing output and produces highquality products. “Our customers are actively participating in the development and production of oil and gas in this region, including the Marcellus and Utica shale plays, making this a natural geographic fit for us,” said Exterran President and CEO Brad Childers. “We chose the Youngstown area to ensure the rapid, efficient delivery of quality products to our clients working in the region and because of the outstanding quality of the local workforce here. The Youngstown facility will allow Exterran to meet existing demand and will position us to quickly respond to our valued clients’ future needs.” The fabrication facility is located in the Salt Springs Industrial

Ohio Gov. John Kasich (fifth from left) is shown at a ribbon-cutting ceremony May 7 for Exterran’s new 65,000-square-foot fabrication facility in Youngstown. Also included are, from left: Matt Sucy and Chris Werner of Exterran; David Mustine, JobsOhio; Youngstown Mayor Chuck Sammarone; Kasich; Brad Childers, President and CEO, Exterran; Tom Humphries, Regional Chamber; Tom Waltermire, Team Northeast Ohio, and Rob Rice and Daniel Schlanger of Exterran.

Continued on pg. 60 1818 Hopple Ave. SW Canton, Ohio 44706

Toll Free (866) 936-0708

* *RCW I NDUSTRI ALSOLUTI ONS* * Y o u r H y d r a u l i c H o s eSe r v i c eSp e c i a l i s t **RCW I N D U S TR I A L S O L U T I O NS * *

* *RCW I NDUSTRI ALSOLUTI ONS** Batteries S y n t h e t i c S l i n g s Wi r e R o p e -C a i n Y o u r H y d r a u l i c H o s e S e r v i c e Sh p e c i a l i s t Alternators t h e t i c S l i n g s Wi r e R op eU C h a i n UnS T R I A L S O L U T I O N S * * * * R C W I N D S T R I A L S O L U T I ON S * * H y d a u l i c & n e u m a t i c R e p a i r s y d r aul i c&P ne u mr a t i c R e p a i r sP Starters 12/24/36/48 Volt Y o u r H y d r a u l i c H o s e S e r v i c e S p e c i a l i s t HHo s e S e r v i c e S p e c i a l i s t C y l i n d e r R amS sP u m p s Pickup &a Delivery S y n t h e t i c l i n g s Wi r e R o p e -C h i n Service Available C y l i n d e r R a m s P u m p s I n d u s t r i a l F r i c t i o n Ma t e r i al S y n t h e t i c S l i n g s Wi r e R o p e C h a i n Synthetic Slings -Wire Rope -L Chain H y d r a u l i c & P n u a t i c e p a i r s * * R C W I N D U S T R I A L Se O Um T I O N S **R I n d u s t r i a l F r i c t i o n Ma t e r i a l i r e R o p e C h a i n Hydraulic & Pneumatic Repairs HYy d r a u l i c & n u m a t i c R e p i r s o ur H y d r a ul i cHP os ee Se r v i c e S p e c i al i s ta C y l i n d e r R a m s P u m s Cylinder Rams Pumps Repairs New e umSa t i c R e p a i r s y n t h e t i c S l i n g s Wi r e Rm ope CP ha i n C y l i n d e r R a s u mp s p Industrial Friction Material -t Machining H y d r a u l i c & Pa ne um at i c R e p a i r s I n d u s t r i l F r i c i o n Ma e r i al I n d u s t r i a l F r i c t i o n Ma t e r i a lt ms P u m p s Cy l i nd e r-Ra ms-Pumps I nd us t r i alFr i c t i onMat e r i al t i o nMa t e r i a l

Yo urHy dr a ul i cHos eSe r v i c eSpe c i al i s t

429Wa y ne s b ur gRDSE Cant o n, OH4 4 7 0 7 Ph.3 3 0 4 5 2 6 5 4 8 Fax3 3 0 4 5 2 8 4 4 5

Light Plant & Generator Repair Electrical Troubleshooting & Repair Truck Lighting Strobe Lights Battery Chargers Wiring Supplies 4810Sout hwayAv e nueElectric SW Pressure Washers Motors Cant on,OH44706 Heaters & APUs

4 8 1 0So ut hwa yAv e nueSW Ca nt o n, OH4 4 7 0 6 Ph.3304785300 Fa x3 3 0 4 7 8 5 5 6 6

429Way ne s bur gRDSE Cant on, OH44707 Ph.3304526548 Fax3304528445

Ph.3304785300 Fax3304785566


429 Waynesburg Rd. SE 4810 Southway Ave. SWhwayAvenueSW 4 2 9 Wa y ne s b u r g R D ERDS 4810Sout 4 2 9 Wa y n e s b uS r g E Canton, Oh 44707 4810Sout hwayAv e nueSW Canton, Oh 44707 Can t on, OH44707 Cant on,OH44 706 C a n t o n , H 44707 C ant on,OH44706 4 2 9h Wa y n e s b u r g R D S EO 4810Sout hwayAv e n ue S W3 P . 3 3 0 4 5 2 6 5 4 8 P h . 3 0 4 7 8 5 3 0 0 Ph. 330-452-6548 Ph. 330-478-5300 Ca nt o n, OH4 4 7 0 7 C ant on,O H44706 h . 3 3 0 4 5 6548 P h.3304785300 FP a x 3 3 0 4 5 2 8 4 4 52 x3304785 56 6 h .P 3 3 0 4 5 2 6 5 4 8 Ph.3304785300 Fa Fax 330-452-8445 FaxF 3 3 0 4 5 2 8 4 4 5 F ax3304785566 Fax 330-478-5566 a x 3 3 0 45 2 84 4 5 Fax3304785566 4 8 1 0 S o u t h w a y A v e nueS W Cant on, OH44706 Ph.3 3 0 4785 3 0 0 Fax3304 7 8 5566 10102286

Dix Communications - Gas & Oil

June 2013 Edition


MOHICAN LOG HOMES 419-994-4088

Expert Sales, Parts & Service for Diesel Powered Equipment



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


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


Gas & Oil

June 2013 Edition - Dix Communications

Southern Zone Edition


core employees and have recently added a second, large, highrate high-pressure shale crew to service the growing needs of the Appalacian Basin, in both the Marcellus and Utica shale plays. * An Employee Stock Ownership Plan is governed by federal pension laws. There are clear requirements to ensure that there can be no preferred classes of participants in an ESOP; all employees must be treated proportionally the same.

owned company, and we were paying our bills on time. We ran into a slump in 1995 and 1996, but we were determined to keep the business on track. Slowly, things started picking up, and in August of 1999 we paid off the bank loan. The following October we shut the business down for four days and took all employees and their wives to the Bahamas for a mortgage burning ceremony. “In 2004 we were named the ESOP of the Year. We had 20 employees, and by 2007 we had 30. We now have 100 employees from Caldwell, Logan and Killbuck area,” said Rose, who is optimistic about the future. “We are very busy with conventional wells in Ohio and West Virginia ... We are ready to meet the demands of this highly specialized industry.” The Roses’ have two children, a son, James, who lives in Indiana and works for the Chicago Tribune; and Julia, who lives and works in Columbus at the Wexner Ohio State University Medical Center. According to the company’s website, Producers Service Corporation has worked with numerous companies in Ohio, Pennsylvania and West Virginia, providing pressure pumping services, such as oil and gas well fracturing, acidizing services, water transfer and pumping, high pressure pumping and skilled technical advice. The company has maintained the expertise of its original

“EXTERRAN OPENS” from pg. 58

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!

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

The Power Shop

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”


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


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

(740) 922-4161 • (740) 922-2229 Fax

Park. On hand for the celebration were more than 60 new Exterran employees from the local area already on the job. “We are excited by the opportunities and long-term potential we see here,” said Childers. “The equipment we produce at this facility is critical to oil and gas production in the northeastern United States, including Ohio, Pennsylvania and West Virginia.” An international leader in oil and natural gas products and services, Exterran is expanding its manufacturing into the Northeast United States to meet growing client demand. “Exterran is an important addition to Ohio’s oil and gas industry supply chain. Through teamwork at the local, regional, and state levels, Exterran committed to building in Ohio and creating jobs, all of which will further strengthen the state’s manufacturing base,” said John Minor, JobsOhio President and Chief Investment Officer. Over the past year, the Mahoning-Columbiana Training Association (MCTA) / Ohio One Stop has served as the single point for recruiting, screening, referral and placement for new employees. Additionally, Exterran has worked closely with local technical schools to meet its needs for skilled welders. “We greatly appreciate the support we have received from the community, including the state of Ohio, city of Youngstown, JobsOhio, the Youngstown/Warren Regional Chamber and Team NEO,” Childers said. “This new facility is another example of what we can accomplish as a region by working together to create an environment where businesses can succeed,” said Tom Waltermire, Chief Executive Officer of Team NEO. “It’s an exciting time for our region as we emerge as an ideal location for shale-related businesses.”

Tom Mason Chad Nay

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

l e -

#4, Artist: Betty Young

Dix Communications - Gas & Oil

June 2013 Edition


Tuscarawas and Carroll Counties

We’ve Got You Covered.



Mercy Health Center of Carroll County 125 Canton Road, Carrollton, OH 330-627-7641

Mercy Health Center of Tuscarawas County 1031 West High Ave., New Philadelphia, OH 330-365-5100

• STATCARE Immediate Care Center

• STATCARE Immediate Care Center

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

• Laboratory & Radiology Services


- Breath Alcohol Testing (BAT) - Urine Drug Screens - Pre-employment Physicals - Injury Management - Both DOT and NON DOT Physicals - Lifting evaluations Call 330-627-7641 for additional services, hours of operation and appointments

• 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 DOT Physicals - Lifting evaluations - Audio Testing Call 330-365-5100 for additional services, hours of operation and appointments




Gas & Oil

June 2013 Edition - Dix Communications

Southern Zone Edition

‘Boom’ may be boon for college students Sophie Kruse Dix Communications


he boom in the gas and oil industry isn’t just affecting those already in the business, but also includes those who

are in school. Kent State University’s geology department has seen a huge jump in numbers of enrollment for geology majors — in fact, it has doubled in the past four years. Daniel Holm, professor and chair of the geology department, can’t pinpoint what sparked the increase in interest, but said that some of it could be credited to the booming business. “We serve our students well and broadly,” said Holm. “We have seen an increase in majors in the last three or four years, which may be in part with the increase of oil and gas exploration but it’s always hard to know what’s driving it.” Even with the increase, there has been no change in curriculum in KSU’s geology department. Holm stated that they don’t plan on changing any part of it because of the growth. “There have been many of our students being hired by oil and gas companies right when they graduate,” said Holm. “A lot of us touch on things that are happening with the expansion in Ohio, but we don’t go in depth with the extraction in Ohio. Companies are interested in the basic topics that our geology


“There have been many of our students being hired by oil and gas companies right when they graduate.” - Daniel Holm students know.” The increase in the industry also has caused an increase in annual salary, or at least according to statistics. In the past three years, there’s been a 15 percent increase in average salary for geologists. The highest salaries for geologists often tend to be in the petroleum and mineral resource side, where there was a 7.9 percent increase just in the past year. While there isn’t a way to pinpoint the growth in the choice to study geology, the link may very well be in the boom in the industry.

Quality Buildings Since 1981

12x20’ 2000 Series Garage


10x14’ Barnsiding Elite Gable


Located 1.5 miles West of Winesburg on U.S. 62 Monday-Friday 7-3:30 5:00 Saturday 9-2 330.359.5708 1.800.359.7522 God is our refuge and strength. Psalms 46:1

Dix Communications - Gas & Oil

June 2013 Edition

‘We go to work every day’



“Someone will send an email at 2 in the morning and if we don’t respond right away, we’ll get another email in 20 minutes asking if something is wrong.” One time, when the company picked up a new customer, Kirk Miller sent an email asking if the drilling rig would be shut down over the July 4th holiday. He received a simple reply: “24. 7. 365.” “I got the message,” Kirk Miller said. Business has been good lately because there is a lot of drilling east of Interstate 77, Jack Miller said. Within the past four years, there was increased activity in states surrounding Ohio that contributed, too. “It’s been very good for us,” Jack Miller said. “We can see a lot of strong activity for the next three to five years.” The company has seen a lot of changes in the industry over the past five decades. The primary thing the company does is sell steel pipe. It also threads pipe in three states. But, as Kirk Miller said, “We do everything.”

or more than half of a century, the Ken Miller Supply Co. has served the needs of the gas and oil industry. The third generation of the family-run business is now leading the company, with Kirk Miller and Lindy Chandler serving as co-chief executive officers. Bobby Warren Ken and Lois Miller startDix Communications ed the company in 1959 in Wooster and later relocated operations to Blachleyville Road, Wooster. It has grown from a single location to 11 stores in five states: Ohio, Pennsylvania, Kentucky, West Virginia and Virginia. Past CEO Jack Miller said the company has been successful because “we go to work every day.” And when he says “every day,” he means it. Kirk Miller recently spent about half of the Memorial Day weekend at the Wooster location because the drilling rigs do not take days off. “We’re on call seven days a week now,” Kirk Miller said.

Continued on pg. 68

Uhrichsville Distribution Center

Co-CEO Kirk Miller and his father, former CEO Jack Miller, say Ken Miller Supply has been successful over the years because of good workers and good customers. Jack Miller’s father started the company in 1959, and it has grown to 11 locations in five states.

Warehouse & Office Space 4,000 to 45,000 sq. ft with more available Large parking area

& Ohio Central

Call for details • 330-949-6207


Available: RJ Corman


Location off Rt. 250 & Rt. 36 at Trenton EXIT


Gas & Oil

June 2013 Edition - Dix Communications

Southern Zone Edition


1. Carroll County 268 2. Harrison County 99 3. Columbiana County 72 4. Monroe County 43 Noble County 43 5. Jefferson County 36 6. Guernsey County 34 7. Belmont County 29 8. Mahoning County 19 9. Portage County 15 10. Stark County 13 Tuscarawas County 13 11. Trumbull County 7 12. Coshocton County 5 13. Washington County 4 14. Muskingum County 3 Holmes County 3 15. Knox County 2 16. 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 5/25/13








Dix Communications - Gas & Oil

Commissioners updated on changes in legal process of transferring property from one owner to another



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”



uernsey County Auditor Tony Brown and Amy Swigart met recently with county commissioners to update them regarding changes to conveyance standards. Brown said the changes are necessary to address gas, oil and mineral deed transfers and conveyances. “We previously met with local attorney Dave DeSelm and he formed a committee to draft the new conveyRick Stillion ance standards,” said Brown. “Those Dix Communications standards will then be approved by the county’s prosecuting attorney and public hearings will be held before final approval.” Brown said he will attend a meeting with other auditors from the oil and gas counties in Ohio to discuss the standards. “We want them to be uniform,” said Brown. Call the commissioner’s office, 432-9200, for additional information.

June 2013 Edition

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

June 2013 Edition - Dix Communications

Southern Zone Edition

‘Exciting time’ in gas business W Christine L. Pratt Dix Communications

hen he recently addressed local leaders, politicians and members of the oil and gas industry, the president of Ohio’s largest gas utility outlined a variety of ongoing and upcoming programs. Jack Partridge, president of Columbia Gas/NiSource, spoke at the annual meeting of the Eastern Ohio Development Alliance. “It’s an exciting time to be in the gas business. Gas is good. The state is blessed with a number of resources beyond gas, including coal,” said Partridge. “It’s a wonderful time to promote growth and economic development in Ohio. What a different world it is now versus a few years ago.” The industry is experiencing decade-low natural gas prices, and the company is well entrenched in customer-friendly programs. Work has started on a $2 billion project to replace portions of its pipeline system across the state. Over 25 years, the company anticipates replacing 4,000 miles of aging steel pipes with longer-lasting plastic, he said. The new system provides for increased pressure and “paves the way for residential growth and job creation.” Also begun is a five-year program upgrading the way it reads meters by installing a radio-based Automated Meter Reading System. It will replace bimonthly estimated readings with an actual monthly reading from a vehicle. “It’s accurate, efficient and customer friendly,” he said. Moving into the area of shale play, Partridge said, “We are in an up cycle. New shale discoveries are good for producers and communities. But, until (the gas) gets to distributors, it has not it’s full potential.” Columbia Gas of Ohio and NiSource, he said, are “helping to reduce infrastructure bottlenecks.” Shale is “such a game changer. We think this is one of the most profound events that has

Work has started on a $2 billion project to replace portions of its pipeline system across the state. Over 25 years, Columbia Gas/ NiSource anticipates replacing 4,000 miles of aging steel pipes with longer-lasting plastic, according to president Jack Partridge.

Specializing in… Equipment & Flatbed Horse & Livestock Enclosed Cargo Utility & Landscape Dump & Aluminum Why trust your cargo to anything less than USA quality?


• Sales • Service • Installation


• Repairs • Parts • Supplies


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

*Limited Time

Since 1962




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

Dix Communications - Gas & Oil

unfolded in U.S. history.” By working together, he said, shale play promises to translate into “lasting gains for the population.” To do that, Ohio and the industry are learning from the mistakes of others, said Partridge. To enjoy long-term prosperity, “We need to do it right.” “We’ve experienced generational poverty. Now is the time to experience generational prosperity.” To make that happen, he said, the company is granting a total of $100,000 to the Foundation for Appalachia Ohio and Appalachian Partnership for Economic Growth. The grant funds will allow partners leverage funding to advance regional opportunities and strategies that benefit Ohio’s communities.

June 2013 Edition


Tom Brown Trucking LLC Contract Hauling Complete Dump Service 43890 Vernon Hughes Rd. • Caldwell, OH 43724 Phone: (740) 732-5921 • Fax: (740) 732-7068 Tom and Theresa Brown 10150654

Hanoverton MotorCars Inc. If we Don’t Have what you want in stock, We’ll find it for you! St. Rt. 9 Hanoverton, Ohio • 330-223-1199



Gas & Oil

June 2013 Edition - Dix Communications

Southern Zone Edition

“WE GO TO WORK EVERY DAY” from pg. 63 In addition to supplying quality tubular products and services for the oil and gas industry, it sells production equipment and provides repair services. When Ken Miller Supply began, it was supplying frac tanks for those drilling in the Clinton formation, which is a shallow formation. “The Utica used to be a big pain to drill through,” Kirk Miller said. Because of science and technology, producers have found an efficient way to drill into the Utica, which has resulted in new equipment and rigs. So, where a string of pipe used to be around 3,000 feet, it is now 18,000 feet, he added. Companies like Miller Supply now face greater liability and greater risk. “There’s a fear factor,” Kirk Miller said. “A 13-inch pipe weighs about 2,000 pounds. The stuff weighs twice as; the equipment was designed for smaller pipe. It changed the dynamic.” Science and technology could possibly change the dynamic again in this area. Right now, producers are focused on drilling in Eastern Ohio because that is where the “low-hanging fruit is,” Jack Miller said. “Drilling could come west when science and technology learns how to extract oil from our shale. We need to find ways to get it out of the shale.” The family’s heritage is showcased at the Ken Miller Supply Museum, a private oil, gas, car and truck museum in near Shreve. For more information, call (330) 496-4024 or (330) 378-2121.

Kirk Miller, co-chief executive officer of Ken Miller Supply Co., Wooster, stands by the popular “Purple Pumper” that has greeted passers-by for decades. His son, Jordon, was the last to paint the smiling steel structure, making him the fourth generation of the family to work in the business.


Family Owned for 90 years

Rebates up to

$7000 and 0%


financing available



330-325-9991 1572 ST. RT. 44 RANDOLPH OHIO





Dix Communications - Gas & Oil

June 2013 Edition

Contact Jason Shankleton: 330-805-1733 I



Gas & Oil

June 2013 Edition - Dix Communications

Southern Zone Edition

Natural Gas Vehicle partnership seminar held at ‘energy college’


s the keynote speaker for the recent Ohio Natural Gas Vehicle Partnership seminar, Dr. Paul Brown, president of Zane State College, site of the event, said he was “very proud and very excited about energy. We are on the brink of making history. We are becoming the ‘energy college’ in this area. “In addition to the oil and gas technology programs, there are many certification and training programs in ancillary industries, such as science, mechanical/civil/construction and electrical engineering, environmental and business paralegal courses.” Brown said his vision of these diverse training sectors can be used to create a hi-tech corridor that focuses on our greatest assets, adamantly stating, “we must merge business and academia to be successful.” “We have an energy calling card to attract business. We can use energy as the foundation of the corridor. We have a strong energy sector emerging, in addition to manufacturing, which is an added advantage in the creation of the corridor,” said Brown. “We need education leading the way with research and development. We have access to one of the country’s greatest interstate connections — I-70 and I-77 — and we have airports. With these fundamental assets we can transform Appalachia. The goal is to turn the vision into a plan and invite all who want to be part of the energy revolution. Energy will lead the way. “We are in exactly the right place at the right time.” The second statement refers to a ranking in 2007 when Zane Stare College was ranked 9th in the nation based on graduation rates and student satisfaction. That source is Washington Monthly magazine, Sept 2007. The event, was a cooperative initiative sponsored by the college and Clean Fuels Ohio, “a statewide non-profit organization dedicated to promoting the use of cleaner, domestic fuels and efficient vehicles to the transportation industry, government, and the general public,” said Dr. Jerrold Hutton of Clean Fuels Ohio, and moderator of a panel of invited speakers. Clean Fuels Ohio purpose if to educate and advise, leverages funding, improve air quality and energy security and recognize leaders through Ohio NGV Partnerships, networking, conferences, workshops, webinars, and technology expos. “We are currently tracking and mapping compressed natural gas and liquid natural gas and renewable natural gas development, an alternative fuel station locator, policy education and outreach,” said Hutton. Panel members included: • Bill McGlinchey of AFV International, said, “Ohio is in the heart of natural gas development ...Kudos to Zane State for offering training relating to natural gas.” • John Magill of the Ohio Board of Regents, said steps have

Judie Perkowski Dix Communications

been taken by the Regents to transfer credits between educational institutions to build consistency between universities. “We must be responsive to the people in the oil and gas industry,” he said. • Denny McCann of the Ohio Fire Marshall’s Office, said, “We are very involved in the oil and gas business. Our primary responsibility is to save lives, contain fires or gas leaks. There are standards for the fuel source, but not the dispensing of natural gas, even though there are companies who have natural gas vehicles and their own fueling stations.” McCann said to install a CNG fueling station, the only regulation is to comply with the building code, There is no permit required, although discretionary permits are issued by the fire department relative to the Ohio Revised Code, Section 2208, Compressed Natural Gas motor fuel dispensing facilities. All of the speakers voiced their concerns regarding the lack of standards or regulations for dispensing compressed natural gas and for fueling stations. There are currently two CNG fueling stations for fleets in Zanesville. For more information about Zane State’s certification and degree programs related to gas and oil, contact Paul LaPrise at Zane State College, (740) 588-1219, or email


A FREE monthly PublicAtion





Dix Communications - Gas & Oil

June 2013 Edition


A Local Company


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


June 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



June 2013 Gas & Oil Magazine - South  
June 2013 Gas & Oil Magazine - South  

The June 2013 edition of the Ohio Gas & Oil Magazine-Northern Edition published by Dix Communication.