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Dix Communications - Gas & Oil

March 2014 Edition

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Gas & Oil

Northern Zone Edition

March 2014 Edition - Dix Communications

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Dix Communications - Gas & Oil

March 2014 Edition

ADVERTISING DIRECTORS Rhonda Geer Northern Zone Sales Wooster & Holmes, Ohio Offices 330-287-1653 Harry Newman Northern Zone Sales Kent, Ohio Offices 330-298-2002 Kim Brenning Southern Zone Sales Cambridge, Ohio Office 740-439-3531 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 Janice Wyatt National Major Accounts Sales Manager 330-541-9450 Jeff Pezzano VP Advertising Sales & Marketing Kent Ohio Office 330-541-9455



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

Table of Contents 5

Reverse Domino Effect Could Happen In Ohio


Pride of the Hills Expanding


Wolf Run, Barkcamp Eyed for Drilling


Sins of Omission


OGEEP Provides Firefighter Training Programs


Mid-East and Pioneer Pipe Partnership


Conference Provides Look at ‘Shale 2020’


Sunoco Pipeline Project Moves Ahead


Containment System Manufacturer Thanks Industry


Clean Fuels Ohio Clears the Air


Two Generations of Experience


Property Owners Have a ‘Row’


Smail Inducted into Ohio Oil and Gas Hall of Fame


Gas/Oil Impact Evident on Real Estate in Stark


Macchiarola Named Anga Executive VP



Parker Perry / Dix Communications

Brandon Zaffini / Dix Communications

Marc Kovac / Dix Capital Bureau Bill Dannley / Attorney

Allison Stewart / Dix Communications

Judie Perkowski / Dix Communications

Bobby Warren / Dix Communications

Rachel Sluss / Dix Communications

Judie Perkowski / Dix Communications

Lauren Sega / Dix Communications

Dan Plumley / Attorney

Bobby Warren / Dix Communications Laurie Huffman / Dix Communications

A Business and Events Directory



Gas & Oil

Northern Zone Edition

March 2014 Edition - Dix Communications

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Dix Communications - Gas & Oil

March 2014 Edition

OOGEEP provides firefighter training programs “There was some type of ignition point that caused the gas to be on fire,” said Dixon, a retired fire captain who also worked as an EMS educator with The City of Columbus Division of Fire. “That area was evacuated as firefighters worked together to bring the situation under control.” Dixon said everything went well, as expected with the level of training everyone had. Reda said while there was an incident, it was properly managed as a result of everyone being well trained. Training sessions have ceased over winter but will resume again at the end of March. u Left: Portage County firefighters are pictured going through training to deal with any possible oilfield emergencies.

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Gas & Oil

March 2014 Edition - Dix Communications

Northern Zone Edition

Mid-East and Pioneer Pipe partnership leads to student opportunity


ARIETTA — Today’s version of career-technical education is definitely “not your father’s vocational school,” and the recent partnership between Mid-East Career and Technology Centers and Pioneer Pipe Inc. validates that statement. This year five senior students who are enrolled in Mid-East’s Welding Technology Program have transitioned from learning in the lab on the Zanesville Campus to attending lab each day at Pioneer Pipe Inc. in Marietta. This hand-selected group of students receives valuable training and work experience at Pioneer while continuing their academic coursework at the Buffalo Campus in Senecaville. This unique pre-apprenticeship program affords the students the opportunity to complete various welding certifications, which could potentially lead to them becoming second year journeymen at the end of their senior year of high school. The typical path for the apprenticeship program consists of five years of on-the-job training during the day and school in the evenings. Dave Archer, owner and CEO of Pioneer Pipe Inc., said that the program initially began because the company had a difficult time finding capable employees. That’s when he thought to try using career centers and piloted the program with students from Washington County Career Center. Students are selected to participate in the program based on their grades, attendance, welding skills, and work ethic. Archer said, “We’re just a small part of this equation. Students and schools are the key parts. This program is a huge part of our growth in the pipeline fabricating business.” Archer is confident that “with the partnerships developed

with career centers, the program will continue to grow and allow these students to have a career and be able to spend their entire life at home and not have to leave the area.” Initially the program began with one instructor, Justin Betts, and as it has grown they have added Phil Wells as an additional instructor. Mid-East students in the program include Luke Shultz from Cambridge High School and Dakota Mooney, Zachery Miller, Kameron Rayner and Tyler Wiley, all from Caldwell High School. Three of these students have already completed their high school coursework using A+ online curriculum. They have also been able to stay involved in extracurricular activities at their home schools with three of them playing football and two of them wrestling this year. Dave Irvin, Mid-East Welding Technology instructor said, “This is just an overall great opportunity for young people.” Mid-East Superintendent William A. Bussey is enthusiastic about the partnership. “The relationship between Mid-East Career and Technology Centers and Pioneer Pipe is the most beneficial partnership I have seen in my 38 years of being an educator. Welding students learn valuable skills to earn certifications in an environment hosted by Pioneer Pipe. Then, after successful completion of the program, they will be hired by the company and enter as a second-year apprentices. Pioneer Pipe benefits by having a pool of skilled welders in the ‘pipeline’, so to speak,” said Bussey. “Those of us at Mid-East and all involved in career-technical education appreciate the willingness of Pioneer Pipe to provide these experiences for students and hope to duplicate this partnership arrangement with other companies.”

Mid-East and Pioneer Pipe partnership leads to student opportunity Participating students share the same excitement and fully understand the benefits. Senior welding participant Kameron Rayner said, “It has been a great opportunity to learn the skills that are needed in the work place, while Mid-East continues to offer me an education. The partnership between the two has been great.” Tyler Wiley, another student in the program, agreed. “The partnership between Mid-East Career and Technology Centers and Pioneer Pipe has given me an opportunity that will set the foundation for the rest of my life,” said Wiley. “We are very excited to have this partnership with Pioneer Pipe Inc. and look forward to continuing to provide excellent opportunities for our students for many years to come.  It’s truly a ‘win-win’ situation for all that are involve,” Mid-East Business Partnerships and Placement Coordinator Shannon Kenily said.

Dix Communications - Gas & Oil

March 2014 Edition



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Gas & Oil

March 2014 Edition - Dix Communications

Northern Zone Edition

Conference provides look at ‘Shale 2020’ Judie Perkowski Dix Communications


hat will the Utica shale region look like by the year 2020? That question and many more were answered at the early morning Utica 2020 conference last week at Kent State University, Tuscarawas Campus. Organized by the Tuscarawas Oil and Gas Association, the event attracted more than 300 attendees who listened to the opinions of experts in their field, all relating to the gas and oil industry. Meticulous planning by TOGA co-chairs Mike Lauber and Harry Eadon kept the conference sharp, fast-paced and interesting with 10 speakers, who in turn, presented an impressive agenda. Moderator Shawn Bennett of Energy in Depth, Ohio, kept the ball rolling. • Christopher Guith of the Institute for 21st Century Energy, U.S. Chamber of Commerce said, “We consume more energy than anyone else on the planet ... Our economy is evolving, we are using even more, because our natural gas is cheaper and cleaner than any other energy source. “By 2020, upstream energy activity (exploration and production sector) in the gas and oil industry will almost double, which means more jobs. The majority of midstream and downstream energy activity will be on the Gulf Coast. “Government revenue due to unconventional activity (hydraulic fracturing and horizontal drilling) will net the federal government about $1.6 trillion. There will be a dramatic change in disposable income for most Americans. “We have approximately 120 years of natural gas, 206 years of oil, 464 years of coal. In-place resources, those that geologists have found but remain untouched, amount to 10,000 years of coal, 586 years of gas and 536 years of oil. We have more fossil fuels than any country on Earth. We actually have more coming out of the ground than we are consuming. But, there are no guarantees. “In the very near future, 10 percent of all U.S. coal plants will be shut down. These bans on drilling are hurting the gas and oil industry ... once they go after coal, they will go after gas. We can screw this up.”

• Dr. Robert Chase of Marietta College said we need to remember four things: Number one is understanding the resources. “It’s all about the rock. Petroleum physics and geochemical properties of the Utica shale will be defined. “Potential producible reserves per well will be better defined; the best spacing and length of laterals will be determined after much experimentation; and with advances in drilling technology rigs become more compact, more robotic with fewer personnel on the rig floor. Drilling time and drilling costs will decline and spent frack fluids will be recycled. Bottom line — Ohio will become an energy exporter, which will be sustained for a long, long time.” • David Mustine of Jobs Ohio said midstream development has been phenomenal! “The Bluegrass Pipeline will transport gas and oil through 16 Ohio counties on its way to its final destination on the Gulf Coast. The project is a $6.9 billion investment in Ohio. “The infrastructure, new fractionation and processing facilities and pipeline construction will require hundreds, if not thousands of new jobs, in addition to companies who supply a service or product for the gas and oil industry.” • Scott Hallam of Access Midstream Partners Utica Shale, noted Ohio’s long history in the gas and oil industry and gave a forecast of the Utica’s potency. “In the third quarter of 2013, the Utica produced three times as much oil than in the entire year of 2012. It’s exciting to see the Utica live up to expectations. But, what will exploration and production look like in 2020? Predictions of one million barrels a day are even better than previously expected. This brings pipelines, gathering systems, processing plants and fractionation facilities into the state, which brings jobs and economic growth and stability.” • Sean Logan of Sean Logan & Associates, spoke about Ohio’s regulatory climate. Logan said the gas and oil industry has come a long way since the 1800s when Ohio’s first oil well was drilled in Noble County.

Dix Communications - Gas & Oil

March 2014 Edition


Conference provides look at ‘Shale 2020’ “It wasn’t until 1965 when the first gas and oil law went into effect. Since then, Senate Bill 165, the first major revision and improvements to Ohio oil and gas law in 25 years,” he said. “Other subjects under consideration for review include well pad construction, drilling waste, public safety. Water withdrawal issues will probably have additional or new regulations, and specific language in regulations relating to well pads when they are near the boundaries of a watershed district.” Logan said Ohio’s regulatory program is the best in the country. • Craig Kasper of Hull & Assoc., said they are not a midstream company. “We are consultants, a developing firm. First of all, facilities will change and be modified to accommodate the industry. “Midstream will be very strong in 2020, but, will (in our opinion) peak in five years, depending on the market. Right now, they are playing ‘catch-up.’ • Charlie Dixon of the Ohio Oil & Gas Energy Education Program, said workforce collaboration is everything. “Colleges, schools, public officials are working together to prepare the workforce. The best kept secrets today are career and tech schools. Our future depends on economics, education, engagement, and articulation. We need to collaborate all our resources to succeed,” he said. Dixon said OOGEEP’s predictions for job growth in the gas and oil industry per the organization’s 2011 Economic Impact Study estimated 102,052 direct or indirect jobs in 2013. Actual figures as of December 2013 from the Bureau of Labor Statistics said 169,000 jobs related to the oil and gas industry were filled. The BLS also reported jobs in the construction and fractionation will grow through 2020. The gas and oil industry is ranked fourth in the list of Top 10 industries for job growth. By the year 2020, the BLS stated that by 2020, the Ohio job market will experience a 50 percent job growth in gas and oil. • Paul Boulier of Team NEO listed about a dozen factors influencing how the region should be marketed, “which takes vision and commitment to transform the region into an employment powerhouse.” “Issues and challenges are energy, fuel, derivatives and plastics, and infrastructure opportunities,” he said. “By the year 2020, we need to focus on midstream storage, multiple CNG filling stations, expand refineries, expand advanced material components and new foreign investment. Boulier said we need to upgrade our efforts to develop a skilled labor force and increase accessibility to higher education, promote our proximity to domestic markets, our strong exports, and be able to fight off competition. He added that shale development will also provide opportunities in the chemical industry. • Michael Weidokal of International Strategy Analysis said the U.S. has less than 10 percent of known shale gas reserves.

“In regards to major reserves around the globe, the U.S. is number four, China is number one. And the U.S. could fall farther down when other shale plays are discovered,” said Weidokal. “But, even though other countries have more shale plays, most countries can’t compete with the U.S. in production. Most lack the technology, in addition to other problems. “China has a severe water shortage, Argentina nationalized their industry, so there is less investment, Algeria lacks water and there are attacks on American gas/oil companies, France has outright banned extraction of shale gas, and South Africa is a desert with a very low supply of water. “Key points for the North American forecast for 2014-2018: The U.S. remains the world leader, high levels of investments, we have refined our business models, shale industry has driven down costs, extraction of gas and oil is cheaper here than overseas and demand continues to grow. All leads to a significant boost for the U.S. economy. We will become self-sufficient and a major exporter.” • Ted Ford of Ohio Advanced Energy Economy said new rules and regulations in the Clean Air Act will put coal behind the eight ball because of carbon and climate change, regulations are coming. There is a transformation of the U.S. utility industry currently underway. Other problems we need to solve: Weakening of our energy grid (blackouts), disruptive systems and technologies, and energy security and reliability. “We need to address and reduce our vulnerabilities,” he said. And that means gas and oil working together with renewables. Shale gas will not compete with renewables. Solar and wind are additional power sources.” He said microgrids are also developing rapidly. Microgrids are like islands in the larger grid and can function even if the large grid fails. Micros are a backup system. “But we still have a lack of clarity about energy, and we need a new energy policy,” said Ford.

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Gas & Oil

Northern Zone Edition

March 2014 Edition - Dix Communications

Sunoco Pipeline project

moves ahead Bobby Warren Dix Communications



OOSTER — A buried pipeline to trans- Agency looked at the wetland areas and stream crossings, and “We port new petroleum products can move looked at everything outside of that,” Kastner said. forward in Wayne County now that the When the project was announced in September, Sunoco Logiscommissioners approved an easement for Sunoco tics Partners CEO Michael J. Hennigan said it would “give refiners Pipeline. and marketers in the Midwest convenient and cost-effective access Dubbed the Tiffin to Easton Pipeline, Sunoco, operating for In- to eastern Ohio and western Pennsylvania markets, including Pittsland Corp., will install a new, 12-inch steel line within primarily burgh.” the road rights-of-way. It will run parallel to an existing 8-inch line. It is expected to have the ability to transport 85,000 barrels per Among the products it might convey are gasoline, fuel oil, diesel day initially, with the ability to increase the capacity to 110,000 fuel, jet fuel and kerosene. barrels per day. The project was scheduled to be operational by Sunoco wanted to begin the project in October, but there was May 2014. Kastner said it is about a seven-month project when some delay because the plan called for “open cuts” in township construction begins. roads, said Rob Kastner, the county’s water management engineer and administrator of the storm water pollution management reguReporter Bobby Warren can be reached at 330-287-1639 lations. Trustees wanted the company to bore underneath the road or and not cut through the pavement. He is @BobbyWarrenTDR on Twitter. The pipeline will stretch about 22 miles in Wayne County. It will enter north of West Salem and travel in a southeasterly direction, eventually running somewhat parallel to Sterling Road and cross south of the roadway to the east of state Route 3. In Milton Township, it will run to the north and parallel to state Route 604. The pipeline will go under Interstate 71 and state Routes 57 and 585. It will terminate at a valve station in Easton in Chippewa Township. When crews go underneath I-71, they will bore horizontally for 1,500 feet. Wayne County Commissioner Scott Wiggam said the county engineer and township trustees have signed off on the easement. Lisa Johnson, deputy director of the Planning Department, said the project went through the construction application permit process. Some areas of the pipeline will be in a flood plain. The contractor will need to make sure everything is put back in the same condition and the surface will have to be at the original grade. Bobby Warren photo/ The project will disturb 185 acres of ground in the county, and because of this, Sunoco needed to submit a storm water pollution Above: Wayne County Water Management Engineer Rob Kastner prevention plan, which it did. checks out the plans for the Tiffin to Easton Sunoco Pipeline projAbout 22 miles of pipe will be installed to transport petroleum Kastner said the company is going beyond what is required for ect. products. It will enter Wayne County north of West Salem and end in sediment and erosion control. The Ohio Environmental Protection Easton in Chippewa Township.

Dix Communications - Gas & Oil

March 2014 Edition


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Gas & Oil

Northern Zone Edition

March 2014 Edition - Dix Communications

Containment system manufacturer thanks gas and oil industry for growth Photo courtesy Polystar Containment Rachel Sluss Dix Communications


TOW — A company that relocated to Stow due to growth from the booming gas and oil drilling industry in Ohio was recently recognized by the city. The Stow-Munroe Falls Chamber of Commerce Economic Development Committee awarded Polystar Containment its Industrial Improvement Award Jan. 21 at its 10th annual Community Business Awards. Research and Development Director Rob Huston accepted the award for Polystar’s positive impact on the local economy and its progressive business in the community overall.  Polystar Containment manufactures, distributes and installs secondary containment systems for hazardous materials, specializing in containment systems for rail tankers, truck tankers and above ground storage tanks.  The business moved from Twinsburg to Stow after experiencing growth in the industry.  “We’re grateful for the award, and it’s nice to be welcomed with open arms into the Stow community,” Director of Sales Robert Nightwine said. “We’ll continue to provide the growth that we have had in the past few years.” Polystar Containment is one of the leading companies in the secondary containment industry today, according to Nightwine. He said the company is unique in the market because the products are designed to be more durable and long-lasting while most others are designed to be temporary.  Nightwine said the Poly Dike MPE is the most popular item among customers in the gas and oil industry. The wall stands anywhere from one to four feet high around above ground storage tanks. If a storage tank leaks or breaks, the Poly Dike MPE

is designed to catch and contain any hazardous waste. Employees often assemble the light-weight and durable wall within an hour, making it a mobile and reusable solution in the industry. “It [Poly Dike MPE] is designed to be quick and extremely functional,” Nightwine said. “The MPE is almost like building Legos. It’s very easy to do. It’s just putting two pieces of wall together, and you drop a post in between the two and they lock.” Polystar Containment’s truck containment pad is simple to install on site as well because there is often as few as one slab to place down. The product is often set up within 24 hours.  The pad consists of a steel core that is capsulated in fiber glass. Steel resists corrosion while fiber glass is chemical resistant. Because the product is well engineered and durable, vehicles are able to drive right onto the pad on site.  The pad is often used for transferring hazardous waste from one place to another. Any drip or leak will fall onto the pad, keeping the environment safe.   Nightwine said the truck containment pad will never crack and vehicles are able to drive over the product. The military often uses the pad for its own fuel trucks.  “The truck containment is, I’m going to say, revolutionary,” Nightwine said. “There are only one or two manufacturers who use steel for trucks, but we are far and away the most advanced and the most popular.” The third most popular product at Polystar Containment is its railroad containment system called Star Track. Nightwine said set-up is more complicated than other products due to the draining system involved with the three pans that are set out. Workers also have to work around rail ties in the ground.  “One of the major advantages of our system is there are no

Dix Communications - Gas & Oil

March 2014 Edition


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Gas & Oil

Northern Zone Edition

March 2014 Edition - Dix Communications

Macchiarola named ANGA executive vice president A

NGA President and Chief Executive Officer Marty Durbin announced that Frank J. Macchiarola has been named ANGA’s Executive Vice President, Government Affairs. In this capacity, Macchiarola will strategically integrate ANGA’s federal and state government affairs activities with its broader advocacy resources – communications, market development and research/policy analysis.   His first day at ANGA will be March 17, 2014.  “Frank brings a trusted, experienced hand to ANGA. He will help execute our mission to promote greater use of abundant, domestic and affordable natural gas,” said Durbin. “Frank understands the economic, environmental and security benefits of natural gas, and his experience with complex national policy issues – from energy to health care – will bring great value to our team.” Macchiarola joins ANGA from the law firm of Bracewell & Giuliani LLP where, as partner in the policy resolution group, he

advised clients on energy legislation and policy along with healthcare, education and labor issues. Prior to his time at Bracewell, Macchiarola was Minority Staff Director for the Senate Health, Education, Labor and Pensions Committee (HELP) under thenRanking Member Sen. Mike Enzi (R-WY). He also previously served as both Majority and Minority Staff Director and Counsel to Sen. Pete V. Domenici (R-NM) in his role as Chairman of the Senate Energy and Natural Resources Committee. “It is an exciting time for American natural gas and it is a real privilege to lead ANGA’s advocacy efforts to advance the greater use of this clean domestic energy source,” said Macchiarola. “I look forward to representing ANGA’s members in their essential role in energy policy discussions affecting natural gas use, development and production.” Macchiarola earned his J.D. from New York University School of Law and a B.A. from the College of the Holy Cross.

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March 2014 Edition



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March 2014 Edition - Dix Communications








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Dix Communications - Gas & Oil

March 2014 Edition


‘Reverse domino effect’ could happen in Ohio Parker Perry Dix Communications


f Ohio pulls manufacturers of ethylene and polyethylene into its boarders, a reverse domino effect will occur for Ohio companies. Instead of falling over one by one, industries in the Buckeye State will be pulling each other up. David Mustine, the senior managing director of Jobs Ohio, said that manufacturers of these gases not only have the ability to provide good jobs to Ohioans, but can also be used to the advantage of other companies that use it in their own industry.  “ … the products they produce can then give an advantage to other companies that use those products in their production,” Mustine said.  Mustine estimates that a large plant that does this type of work can provide a couple hundred jobs for the state. The jobs will be well paying, and will be stable once everything is built. However, in the grand scheme, Ohio has nearly 87,000 jobs related to the polymer and chemical industry. The jobs that will be created solely by the new plants will help hundreds, maybe a thousand, families, but the butterfly effect has the potential to help more.  One of those industries that could see a boost is plastic manufactures. Polyethylene is a product in many materials that the plastic industry uses. Some of the more basic products are plastic bags, bottles and containers.  Other products include paints, films and coatings. Plastic manufactures in the state have already seen positive results from shale developments, but if manufacturers land in the state it will mean more growth.  Mustine said that Wet Gas has been a focal point in the creation of the industry in the state. The way it goes is that ethane is taken from wet gas. The ethane can then be turned into ethylene and then that is converted into polyethylene. If Ohio can get the manufacturers who can produce the polyethylene, it would make the logistics much easier—and cheaper— on the Ohio industries and that use it. Currently, most of the polyethylene that is used by Ohio companies come from the Gulf Coast, nearly 800 miles away from the southern boarder of the state.  However, Ohio is not the only state that is trying to nab this new industry. West Virginia, Pennsylvania and other states that are in the region and have been affected by the dramatic oil findings are all trying to lure the companies to them. They can imagine having similar results for their economy. Ohio does have its advantages though as they try to out-maneuver its rivals. Ohio taxes are friendly toward companies that uses

feasible personal properties. “Metro chemical plants are heavy on equipment investment and so there is no tax on that equipment in our state. That’s a real big advantage that we have.” Said Mustine. Though Ohio wants the factories for themselves, it should still be good news to the potentially affected industries if the companies move into the region. Though a border will be between them, it will still cut down close to 600 miles of transportation. Regardless of the competition that the state will have to face, Mustine said that the morale is high. He said that the recent developments over the last two years appears to bode well for the future of gas and oil in Ohio.  “The excitement is very high. [There is a] very positive view that the shale industry and wet gas and the ability to process it and to break it into other parts.” Mustine said.

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Gas & Oil

March 2014 Edition - Dix Communications

Northern Zone Edition

Pride of the Hills expanding

Brandon Zaffini Dix Communications


ILLBUCK — While unemployment levels across major sectors of the U.S. economy remain high, a company in Killbuck has broken away from the negative trend and continues to expand, and hire, at a high rate. Pride of the Hills Gas, originally located in Big Prairie, has gone through several recent expansions in Killbuck, which is where the headquarters for the business will eventually end up. The owners of Pride of the Hills -- father and son Curtis Murray Sr. and Curtis Murray Jr. -- shifted much of the business to Killbuck in January 2010, revitalizing the industrial park there. Since then, they have added on to the warehouse building several times -- once in June and again in November with a building project that should be finished by April. Murray Sr. noted how helpful local officials had been with his relocation and expansion efforts. “The mayor, the city council, county commissioners and county engineers have truly bent over backward to help us, and are still helping us with this stuff,” he said. “It’s been amazing to experience that kind of support.” In September, the Holmes County commissioners approved a 10-year, 50 percent enterprise zone tax abatement for the company. Pride received and met the terms of a smaller enterprise zone abatement in May, completing a $10,000 project and hiring four employees, said Tom Wilke, executive director of the Holmes County Economic Development Council in September. Under the September agreement, the company committed to creating 40 full-time positions over the next three years. Wilke said at the time that the additional payroll represents nearly $1.5 million annually.

Pride of the Hills has employees across the country in several oil-pivotal locations such as Dallas Fort Worth and Oklahoma City. That’s the national side to a business that, according to Murray Sr., is almost growing too fast. “We have to control the growth because demand is just so high,” he said. “And I won’t take on work that I’m not sure we will able to deliver.” The main piece of equipment sold and manufactured at Pride of the Hills is a gas production unit, or GPU, that helps oil companies separate gas from liquid. “When they get the gas out of the ground,” Murray Sr. explained, “it pushes a bunch of fluids up with it -- mostly oil and water. What a GPU does is separate the gas from the liquid. Then it separates the two liquids, the gas and the oil, from each other.” The purchasing price for a GPU ranges from $90,000-$150,000, depending on the model. Murray Sr. estimated Pride of the Hills has been manufacturing, on average, 300 GPUs a year, and that’s in addition to several other types of equipment, including separator units and gas measurement skids. With demand so high, Murray Sr. and Murray Jr. have had to find creative ways to adjust to higher volumes. “The key to keeping up,” Murray Jr. explained, “is hiring good management. It’s all about good people. We have great employees, and that’s allowed us to grow where we are currently. And when you look over just the last five years, you would find that a lot of our managers are new. That’s what is most important. ... You can acquire materials, land, buildings and things like that, but the human factor is our biggest challenge in growing the business, and it’s the most important asset. We want to attract and maintain quality employees.”

Dix Communications - Gas & Oil

Pride of the Hills expanding

1101 WOODLAWN AVE CAMBRIDGE, OH 43725 PHONE: 740-432-0200 FAX: 740-432-0202 As it stands right now, there are about 160 employees working for Pride ofONE the Hills Gas, but that numberCONTROL is constantly going up. YOUR STOP EROSION AND Murray Jr. said the type of employee Pride of Hills looks for CONSTRUCTION NEEDS WAREHOUSE. are people who are dependable, who have a good work ethic and who • EROSION CONTROL want to come and participate in a growing business -- who are ea• FILTRATION ger to learn and be a part of a growing organization. • REVEGETATION Pride of the Hills, on its end, can provide extensive job training • STRAW to potential BLANKETS employees. • TPOST “What we can offer,” Murray Jr. said, “is a lot of training so our • GEOTEXTILES employees can develop a real skill, so that they can be more mar• VISUAL BARRIER FENCE ketable -- though hopefully they want to stay with us -- and a very • PIPE WRAP competitive wage with good benefits.” Murray Jr. noted the turnover rate for employees was low, and the reason for that, he thought, is the workers feel good about their growth potential. “I think a lot of people are happy to find a place where they get so much training, where they can learn a life skill, and where they can expect something like a 30 percent increase from their entrylevel wage after they finish our four year training program,” MurSERVICING FROM TWO LOCATIONS. ray Jr.NOW concluded. BOTH NORWALK &Gas CAMBRIDGE Employment at Pride of the Hills should be fairly stable goWAREHOUSES HAVE IN STOCK MOST ing forward. Murray Sr. and Jr. indicated they were committed to OF YOUR MATERIAL NEEDS. keeping up with increased demand -- they had no intention of slowing down. Coming up shortly, they said, there was a possibility of establishWOODLAWN AVE ing a joint venture with a company in1101 Houston. FIRELANDS CAMBRIDGE, OH 43725 SUPPLY Reporter Brandon Zaffini can be PHONE: reached at740-432-0200 330-674-5676 or CO. FAX: 740-432-0202



March 2014 Edition

1101 WOODLAWN AVE CAMBRIDGE, OH 43725 PHONE: 740-432-0200 FAX: 740-432-0202





Above: A crew works on a double gas production unit. Pride of the Hills has about 160 employees. NOW SERVICING FROM TWO LOCATIONS.

BOTH of NORWALK & CAMBRIDGE Pride of the Hills shifted much of the busiu Left: The owners ness from Big Prairie to Killbuck in IN 2010. Since then theyOF added on WAREHOUSES HAVE STOCK MOST to the warehouse building several times – once in June and again in NEEDS. November with a YOUR building MATERIAL project that should be finished in April.



Gas & Oil

Northern Zone Edition

March 2014 Edition - Dix Communications



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Dix Communications - Gas & Oil

March 2014 Edition

Wolf Run, Barkcamp eyed for drilling Marc Kovac Dix Capital Bureau


OLUMBUS — Newly released documents outline plans to market several state parks for oil and gas drilling by the same state agency that regulates such activities in eastern Ohio’s emerging shale oilfields. The Ohio Department of Natural Resources’ “draft outline for communication plan” and other records obtained by a liberal advocacy and environmentalist groups also show a senior adviser to Gov. John Kasich knew of the strategy, which included gaining support from industry and business groups to counter environmental concerns. “What is outrageous is that the document both recognizes the regulatory role of ODNR and then goes on to list the very organizations it regulates as allies in their propaganda campaign to drill in state parks,” Brian Rothenberg, executive director of ProgressOhio, said in a released statement. “It is bad enough that corporations influence policy through ALEC and Citizens United, but these are full-stop Nixonian tactics.” An ODNR spokeswoman, however, defended the draft plan, which she said “was never implemented, just used for discussion.” “Any responsible organization plans in advance what it is going to do especially when it knows it is going to face fierce opposition to progress,” Bethany McCorkle, a spokeswoman for the agency, said in a released statement. “The fact that these secretly funded extremist groups are attacking us today validates the wisdom of anticipating the attack and planning for it.” Rob Nichols, a spokesman for the governor, added in a released statement, “I don’t know what specific pieces of paper different people saw a year and a half ago, but of course the administration is going to coordinate and plan ahead on an important issue like gas production on state land. If we didn’t, these same extremist groups would be attacking us for not planning ahead.” The ODNR documents note plans to “exercise stateowned drilling rights” at Sunfish Creek State Forest in Monroe County, Wolf Run State Park in Noble County and Barkcamp State Park in Belmont County “in a way that

maximizes benefits and safeguards for Ohioans, completely avoids park surface disturbance and minimizes forest surface disturbance....” A section of the plan titled, “Communication Problem to Solve,” states that “an initiative to proactively open state park and forest land to horizontal drilling/hydraulic fracturing will be met with zealous resistance by environmental activist opponents, who are skilled propagandists.” The latter includes the Sierra Club, Ohio Environmental Council, Rep. Bob Hagan (D-Youngstown), the Natural Resources Defense Council and others, who, the plan notes, “will attempt to legally and physically halt the drilling,” “attempt to create a public panic about perceived health risks” and “slant news coverage against us.” ODNR would focus its communications on countering such efforts by spotlighting the “millions of new dollars to restore deteriorating park and forest infrastructure... repair deteriorating dams controlled by ODNR” and “thousands of new jobs for Ohioans,” among other “Key Messages” detailed in the marketing strategy. Potential “stakeholders” and “allied groups” for delivering ODNR’s message about fracking on state-owned land included chambers of commerce and energy company Halliburton. The documents drew quick criticism from environmental groups. “Our state government should not be frittering valuable time and taxpayer money on a PR campaign designed to ‘neutralize’ legitimate concerns about impacts to public lands and public health and safety from fracking in our state parks and forests,” Nathan Johnson, staff attorney for the Ohio Environmental Council, said in a released statement. “The ODNR should be an impartial watchdog, not an industry cheerleader. It’s shocking to learn that ODNR laid plans to actively enlist the help of extractive industries to ‘marginalize’ respected voices for the preservation of our natural heritage.” Marc Kovac is the Dix Capital Bureau Chief. Email him at or on Twitter at OhioCapitalBlog.



Gas & Oil

March 2014 Edition - Dix Communications

Sins of Omission

Northern Zone Edition

Bill Dannley Attorney ment, breaking their leases. The rest were held by the default leases. Although my client offered far better terms, only a few property owners got to enjoy the difference. (Landowners, if you’ve signed a five-year lease with a five-year option to extend: Head’s up. If the company that owns the lease fails to exercise their right for those additional years, make sure there’s a cancelation filed. If necessary, have your attorney pursue it.) So maybe, in my first article, I ever so slightly misspoke? Better to say that “producers know more about your oil and gas rights, as reflected in the public record, than you do? “ Not as punchy, or as lyrical. Well, show me some mercy. After all, how often does a guy that works in courthouses get to exercise poetic license?= Next Month: Sins of Commission. I bet you can hardly wait. Bill Dannley has worked in the oil and gas business for over 35 years as both a title abstractor and petroleum landman. He is a partner in Leasemap Ohio, which specializes in lease takoff research and has over 400 Ohio townships on file. Bill can be reached at 330-262-0588. For more information visit

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n my column last month, I explained how oil and gas companies utilized county recorder’s offices to ascertain the legal status of a landowner’s mineral rights. I concluded by stating that, if contacted by a company, “Don’t be surprised if he or she knows more about your oil and gas rights than you do.” Well, that’s true. Sort of. I suppose I didn’t exactly lie -- but I didn’t tell the truth, the whole truth and nothing but the truth, either. Yes, their abstractors exhaustively research the public record. The problem is not their research but the public record itself. The public record contains myriad mistakes, flaws and gaps that can seriously mislead or distort their conclusions. I describe these as falling into two categories: Sins of Omission and Sins of Commission. First, Sins of Omission. By that, I’m referring to the failure of companies and landowners to get relevant documents into the public record. For example: Recently I was contacted by a woman from West Virginia. She owned one-half the oil and gas rights, about 200 acres, under a tract in Carroll County and she couldn’t understand why no company or lease broker had contacted her. The Carroll County Recorder’s Office is on-line, so I did a quick search. I found she had signed a five-year lease a couple years before; the lease was still in term. When I asked her about that, she told me the company sent her a cancelation of the lease. She hadn’t recorded it. On my advice, she did. In short order, she signed a five-year lease with a handsome rental bonus. Again: About 20 years ago I leased a tract of land in Coshocton County for a company interested in Rose Run production. They shot a couple seismic lines and discovered an excellent drill site. Unfortunately, it was right on the property line. The adjacent neighbor had a well on her property, and the producer had a reputation for being difficult. When I told our lessor about this, he assured me that this neighbor had bought her lease and well from the producer years ago. I went to see her and, indeed, she pulled out an assignment giving her full rights. Again, she simply hadn’t bothered to record. I signed her, recorded the assignment and the new lease, concurrently. The company unitized the properties and drilled a terrific well. A variant type of Sin of Omission is the failure of landowners to file affidavits on recorded leases to clarify their legal status. Another example: About 30 years ago an oil and gas company hired me to research a large area in Seneca County, go in and lease it. To their dismay, I found that another company had gone through a couple years before and picked up over 500 leases in the target area, about 40,000 acres, all with five- or ten-year terms. My client opted to purchase these leases (actually, my client didn’t have much of a choice!) None of these landowners had been paid. Not a dime. But of those leases only two landowners had bothered to file affidavits of non-pay-

Dix Communications - Gas & Oil

March 2014 Edition




by the numbers


13 8 4 0 11 0 0 36

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


3 5 6 Wells Permitted 108 Wells Drilling 262 Wells Drilled 0 Not Drilled 3 67 Wells Producing 0 Inactive 0 Plugged 1093 Total Horizontal Permits

Data as of 02/15/14 Source: Ohio Department of Natural Resources


Gas & Oil

March 2014 Edition - Dix Communications

Northern Zone Edition

OOGEEP provides firefighter training programs Alison Stewart Dix Communications


AYNE CO. —- Approximately 13 years ago, Ohio became the first state to help create and implement firefighter training programs specific to oil and gas complications. Created in 1998, The Ohio Oil and Gas Energy Education Program (or OOGEEP), provides a variety of programs which primarily focus on teacher workshops, scholarships, student education, firefighter training, industry training, workforce development, research, landowner and guest speaker programs. OOGEEP began the training to prepare firefighters for any emergencies that might potentially come up, according to Executive Director Rhonda Reda. OOGEEP has a permanent training facility located in Wayne County, which is the only facility of its sort in the state. “We have trained over a thousand Ohio firefighters, including several from Portage County,” said Reda. “We have also trained firefighters who come to our facility from seven different states.” Reda said many states have modeled their facilities to match the curriculum of Ohio’s program. “We always try to be proactive when it comes to emergency response rather than being reactive,” said Reda. “This is why you don’t hear about a lot of emergencies happening in Ohio.”

Reda said oil and gas training is not part of normal firefighter training but she feels it is the obligation of OOGEEP to provide the training for them. “The industry provides the money for this training with no cost to the community or the firefighters,” said Reda. According to Reda, the training session consists of two days. Day one is spent in the classroom where Reda and other instructors provide classes. Day two is the hands on portion in which the facility simulates both crude oil and natural gas potential emergencies. “We create situations for them such as potential leaks, spills or containment,” said Reda. “It is a shame that most of today’s accidents actually occur from intentional vandalism.” The hands-on day is mostly to get the firefighters familiar with the equipment so they will be prepared if an emergency does occur on the oil field. “It is better to be prepared so everyone feels confident,” said Reda. There was an emergency in Boston Heights, Ohio in January 2014, in which firefighters were able to manage the situation. A privately owned well was receiving a service operation, said Safety and Workforce Training Administrator of OOGEEP Charles Dixon.

Dix Communications - Gas & Oil

March 2014 Edition


Containment system manufacturer thanks gas and oil industry for growth needs in case the issue could result in a new product. The company is currently working on a “handful” of new options for products and features. “We’re hopeful to expand our product line and contribute to the growth we’re experiencing, and get into different markets,” Nightwine said. “Oil and gas is essential to us, but there are chemical markets, there’s agriculture.”  Nightwine and Huston emphazed the gas and oil industry is essential for the nation’s economy and independent energy. And Polystar Containment continues growing and evolving along with the industry.  Email: Phone: 330-541-9400 ext. 4162 u Left: If an above ground storage tank leaks or a valve breaks, Polystar Containment’s most popular product, the Poly Dike MPE, will catch and hold any hazardous waste.

Below: Containment pads are efficient in catching any hazardous waste that does fall onto them. u

gaskets,” Nightwine said. “There are no potential leak points in our rail product.” Polystar Containment’s products can be reused and relocated. For example, some businesses still lay down concrete in the secondary containment industry. Concrete is permanent, requires more labor, and is expensive. Concrete also cracks over time, and it is porous allowing it to absorb hazardous materials such as hydrocarbon. The material is inefficient and harmful to the environment, according to Nightwine. “Our main initiative is to protect the environment,” he said. “We can’t protect the environment without our customers wanting to make the purchase. It’s really up to them, but once they decide that’s what they want to do, that’s our specialty. We carefully engineer each and every product to ensure that, with the opportunity, the environment is in good hands.” Polystar Containment is always looking for new products to put on the market and ways to further enhance current products. Nightwine said the company pays close attention to customer

Photo courtesy Polystar Containment


Gas & Oil

Northern Zone Edition

March 2014 Edition - Dix Communications

Clean Fuels Ohio clears the air

Sam Spofforth

Judie Perkowski Dix Communications


AMBRIDGE — Since the gas and oil industry has taken over a good portion of Appalachian Ohio, folks have been waiting patiently for the cost of filling up at the pump to drop — dramatically — well, that day is here. Well, sort of. There’s a different kind of gas station for a different kind of vehicle that uses a different kind of gas. “Compressed natural gas filling stations are like any other gasoline filling station, except CNG is inherently less noxious, colorless, odorless, very safe, and doesn’t leak into the ground water,” said Sam Spofforth, executive director of Clean Fuels Ohio and guest speaker at a monthly Energy Committee meeting, sponsored by the Cambridge Area Chamber of Commerce, and led by President Jo Sexton, in the Chamber’s conference room. “The benefits of a Natural Gas Vehicle are proven and reliable. It uses a homegrown domestic fuel. Maintenance costs are equal or less than gasoline or diesel-powered vehicles. NGVs are quiet, 80 to 90 percent lower decibels than diesel. And, natural gas is abundant,” he said. Headquartered in Columbus, Clean Fuels Ohio’s primary program is Ohio Green Fleets, offered to any business or government agency fleet. Contracted services include detailed fleet analysis and recommendations, help with fleets to develop a comprehensive strategy for improving environmental performance through education, funding, collaboration, and strong public-private partnerships. While NGVs that run on CNG might be a breath of fresh air, that initial breath is not cheap, although data shows that the payback for investing in a NGV can be realized within two to three years. Conversion kits are available for cars and trucks, you can do it yourself, or hire a mechanic to install, for example, a bio-fuel CNG/gasoline conversion kit and CNG cylinder (tank). Prices for kits range from $995 to $1895 and cylinders range from $1395 to $3995. Also, locate CNG fueling stations in your area to be sure you’ll have regular access to the fuel. But, also note that the vehicle will

run on regular gasoline with the bio-fuel conversion kit. “Bio-diesel can be made with a variety of oils, new or used vegetable oil or animal fat. It extends the life of the engine, and reduces carbon emissions like soot, into the atmosphere,” he said. There are approximately 20-plus CNG fuel stations in Ohio, with more on the way. Dan Hackett of IGS CNG Services, a visitor to the Energy Committee meeting, said his company is planning on building four CNG stations in Ohio this year, and four in 2015. And, he is not alone, dozens of companies already enrolled in the Clean Fuels Ohio program are planning to install CNG fueling stations for their businesses and some are even planning on incorporating a public fueling bay. In addition to Ohio Green fleets, Clean Fuels Ohio offers Drive Electric Ohio, Ohio NGV Partnerships and Driving Force Fleet programs. “Our focus is on greening fleets across the state and educating the public and decision-makers about responsible and sustainable transportation options,” said Spofforth. Since its launch in 2008, Ohio Green Fleets program has engaged hundreds of fleets across the state in workshops, seminars and individual meetings. There are 140 public and private organizations that have begun the process of earning Ohio Green Fleet certification. Clean Fuels Ohio administers federal and state grants through the U.S. Department of Energy and the U.S. Environmental Protection Agency. Since 2009, Clean Fuels Ohio has been awarded two grants through the U.S. DOE Clean Cities program and three grants through the U.S. EPA totaling more than $13 million in federal funding. For information about the Clean Fuels Ohio program, visit the website at or call the office in Columbus at 614-884-7336.

Dix Communications - Gas & Oil

March 2014 Edition


Two generations of experience Lauren Sega Dix Communications

Falls. “We both grew up in the oil field,” said Jeff Moore, a member of the Board of Trustees for the Ohio Oil & Gas Association. “It was hands on all the time. From the time we could work our dad had us either working on equipment or learning the business. But it also evolves with time, so we learn something new every day.” Jeff’s experience in the oil and gas industry was furthered by his work at K.S.T. Oil and Gas Company from 1987 until 1996, according to the Moore Well Services website. It was there that he learned equipment operation and installation of natural gas compressors and pipelines. Keith Moore spent time at K.S.T. as well, gaining experience as a mechanic, truck driver, equipment operator and “where he is today, a specialist in the drilling and service rig operations,” according to the website. Jeff Moore said that although the history of Ohio oil and gas is over 150 years, “he (Robert Moore) and now we continue to develop new ways to produce and service the conventional wells that is the back bone of the industry and providing service that customers can count on. Employing about 25 people, including 13 full-time employees, three to five part-timers and another five sub-contractors, Moore Well Services, is readily adapting to changes in the oil and gas industry, Jeff said. “The core of the business has not changed,” said Jeff Moore. “We are in the energy business, producing andO providing local NS WE P energy for the residents and business owners in the ITE area.” PR lus

Moore Well Services still serves other oil and gas companies that have wells throughout the state of Ohio, local municipalities and school districts, developers and contractors and many others. But the technology that supports these services is what has changed, said Jeff Moore. “We are able to monitor each well or field remotely and will be alarmed if anything changes,” he said. “Every 15 minutes we scan our network of wells connected to the Internet for reports and changes in operations.” Jeff Moore said the family business started after K.S.T. sold. Robert Moore was Vice President of K.S.T. and “wanted to further his career and his passion of utilizing and producing the natural resources that are available.” While the business is now run just by the two Moore brothers, Jeff Moore said there is still a place for family in the oil business. “Like any business, you have to dig in and weather the storm,” he said. “At the end of the day, or storm, I feel there will still be a place for the family business in our industry.”


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oore Well Services, founded in 1996, was started as a family business by Robert Moore. Robert’s sons, Jeff and Keith Moore, continued the business at 837 Seasons Road in Cuyahoga


Gas & Oil

Northern Zone Edition

March 2014 Edition - Dix Communications

Property owners have a


Dan Plumley Attorney


ou receive a knock on your door; you open it; you are greeted by an individual who wants to bring a survey crew onto your property to survey for a pipeline right-of-way (“ROW”). A number of questions should immediately come to mind: • Do I have to give them access? • When do they want to do this? • How many people will want access? • Is this a onetime access or will they want continuing access? • What happens if damage is done by the survey crew? • What if someone is injured while on my property? Do I have potential liability? • How many pipelines do they want the right to install? • Where will they be located? • Do I have to give them a right-of-way? • Will my access to my property be interrupted? • Can the power of eminent domain be used to “take” the right-of-way? • If I agree to a right-of-way, what is it worth? These matters and more are all legitimate questions and concerns. First, let’s address access to your property. There are two types of entities that may request access: a public utility including an entity that has a certificate of public convenience and necessity granted by the Federal Energy Regulatory Commission (“FERC”) or a strictly private entity. Ohio treats access, and may treat appropriation, the same for both types of entities. Section 163.03 of the Ohio Revised Code provides for access for public utilities and those with a “certificate of public convenience and necessity” and Section 1723.01 provides the right for private entities to enter onto your property if they are engaged in surveying to lay or construct a pipeline. Both statutes grant the power of eminent domain. However, with respect

to a strictly private pipeline company the question exists as to whether the Ohio Legislature overstepped its bounds by granting access to private property for purely private benefit and by granting to a private third party the power of eminent domain. This may be especially true since the statute is not very detailed, sets few, if any, limits on the access to your property, fails to provide any compensation to the landowner for the access and sets no limits on the appropriation. Engaging in litigation to test the constitutionality of the statute, or to raise the issue of undue delegation is very expensive, often protracted, and therefore should be avoided if possible. If the pipeline company is a public utility or has a certificate of necessity from FERC, the same statutes involving access apply, but it is far easier for the pipeline company to show public necessity, making a constitutional challenge to one of these entities difficult indeed. Fortunately, I have found most pipeline companies to be amenable to arriving at reasonable access times, who may have access to your property, and setting a time that the right to come onto your property for surveying is terminated. The issue of determining the terms and conditions of a right-of-way and compensation for that right-of-way are far more difficult to achieve and are beyond the purview of this article. Second, if you have successfully negotiated the access issue and are willing to explore the granting of a ROW, what is it worth? In order to answer this question you need to know the size of the intended pipeline, whether more than one pipeline will be installed, what is the width of the requested ROW (usually 75 to 100 feet), and will temporary workspace around the ROW be requested. The value may also vary depending on how strategic your property is to the pipeline route. Moreover, if you and a group of your neighbors can make available a long stretch of the land needed for the pipeline there is value to this benefit. A landowner is also entitled to damage payments for crops and timber loss.

Dix Communications - Gas & Oil

March 2014 Edition

Shoemaker’s Outlet

Property owners have a “ROW”

257 W. Main Street • Ravenna

The ROW will last for decades. The agreement should provide for protection to the landowner and should be both specific and comprehensive. In order to achieve these protections a multipage addendum or special conditions will most certainly be needed. At the end of the day the written agreement will prevail and the oral commitments and promises made by a third party “landman” that has long ago departed the area will be for naught.


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Gas & Oil

Northern Zone Edition

March 2014 Edition - Dix Communications

Smail Inducted into Ohio Oil and Gas Hall of Fame Bobby Warren Dix Communications


The Ohio Oil and Gas Association inducts people every four Jim Smail had a dream to be in the oil years, and there have been 113 inducted since 1987. and gas business, and on March 5 the oilman, banker and rancher will be inducted into the Ohio Oil and Gas Association Hall of Fame. “When you get old, they think they have to give it to you,” Smail said. “I heard you need to be 65 to be nominated — that’s scary.” Smail owns or has interests in a diverse group of companies covering nearly all aspects of the gas and oil industry. J.R. Smail Inc. is on the production side of the business, and it has interests in Ohio, New York, Pennsylvania, West Virginia, Kansas, Texas, Louisiana, Illinois and Montana. He owns Poulson Drilling Co., which owns a drilling rig that is hired out on contract. Hagen Well Service LLC is a service company. He also has a trucking company, DTS Inc. Smail is a past president of the Ohio Oil and Gas Association, and in 2009 he was awarded the organization’s Patriot Oilfield Bobby Warren Award. Getting the honor was a surprise, Smail said. He is humbled Above: Jim Smail, who received the Ohio Oil and Gas Association’s and honored to be considered among some of the people he Oilfield Patriot Award in 2009, is among a group of 12 people who are being inducted into the organization’s Hall of Fame March 5 in Easton. looked up to in the industry, people like Ken Miller and Jim Morgan. Being in the gas and oil business is something Smail always wanted to do, ever since the day a producer started drilling on his father’s farm outside of Shreve when he was eight years old. He loved the sights, the sounds and the smells. The industry has been good to Smail, but recent changes with shale exploration has been making it more difficult for legacy producers. Shale exploration has driving up the costs for leases, pipe, drilling and completing wells, Smail said. “We have found so much gas in shale that the price of natural gas has dropped.” Back in 2009, the cost for gas was about $12 per thousand cubic feet, and it is now around $3. “It’s not been good for conventional operators,” Smail said. “There has been a lot of turnover as the older ones are getting out or turning over operations to the next generation. The regulatory side is more difficult.” Still, “It’s been a good ride,” Smail said. “It’s a great industry, and it has been good to me. I was fortunate to get in the business in my mid-20s.” The ceremony is March 5 in Easton, and Smail will be among the dozen people to be inducted in the hall. Joining him are Fred A. Badertsher, Robert D. Barrick, Thomas P. Giusti, Steven L. Grose, James Halloran, Carl Heinrich, Dr. William Hlavin, Angela Howard, Thomas E. Niehaus, Richard C. Poling and Thomas E. Stewart. ooster —  More than five decades ago,



Dix Communications - Gas & Oil

March 2014 Edition


1. Carroll County 378 2. Harrison County 178 3. Columbiana County 98 4. Monroe County 89 5. Belmont County 88 6. Noble County 76 7. Guernsey County 64 8. Jefferson County 40 9. Mahoning County 29 10. Portage County 15 Tuscarawas County 15 Trumbull County 15 11. Stark County 13 12. Washington County 10 13. Coshocton County 5 14. Holmes County 3 Morgan County 3 Muskingum County 3 15. Knox County 2 16. Ashland County 1 Astabula 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 02/15/14










Gas & Oil

Northern Zone Edition

March 2014 Edition - Dix Communications

Gas/oil impact evident on real estate in Stark County Laurie Huffman Dix Communications


TARK CO. — According to Bryce Custer, of NAI Spring Realty, Stark County offers one of the greatest locations among the seven counties currently being developed for oil and gas production in the Utica shale region. It has a surplus of single and multiple family housing available that a lot of other counties in the area don’t have, as well as some of the finest schools and hospitals and expansive infrastructure already in place. Custer, who gave a talk during a recent Stark County Oil and Gas Partnership event, told those present he’s watched the activity in the county stepping up during the last 2.5 years with increased consulting, water testing, land development, and new offices, including the Chesapeake Energy field office under construction in Louisville, and the office space in the planning stage by Rex Energy, which is looking to build in Carroll County. Louisville Mayor Pat Fallot, during a separate interview, admitted last year, home owners in her town had people coming into their neighborhoods and knocking on their doors to ask if they were interested in selling their homes. “We are also seeing some new homes being built...We’re not sure if that’s because of oil and gas or not, but, we’ll welcome any business or activity that’s willing to come into Louisville,” Fallot said. Chief Executive Officer of the Stark County Association of Realtors, Tom LaRochelle, also reported this week there has been a steady increase in new and existing home sales during the past 24 months. “Many are looking to come into this area, and everyone is looking for warehouses and land,” said Custer. “We’re seeing a lot of development now in Carroll, Stark, and Belmont counties. Housing and retail and hotels are needed to support the industry, as well as warehouses. We’ve seen everything from new hotels being built to consulting companies coming into Stark County. We’ve seen the whole gamut.” Some of the other positive impacts of oil and gas development, according to Custer, include a rash of companies coming into the area

that are bringing new jobs. “Oil and gas has had a tremendous impact as far as jobs is concerned. That’s the exciting part. Seeing people get back to work.” “Along with companies coming into the area that are interested in making products with the wet gas products being pulled up from the ground with the natural gas, Custer closed by saying there is also a $800 million electrical generating plant coming into Stark County by 2015.

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Ohio MARCH 2014 •

Utica Seminar looks at 2020


Impact on real estate

Prevention Containment


March 2014 Ohio Gas & Oil Magazine-Northern Edition  

The March 2014 Northern Edition of the Ohio Gas & Oil Magazine published by Dix Communications.