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Dix Communications - Gas & Oil

October 2012 Edition

Ohio OCTOBER 2012



Table of Contents ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆

Road to the White 2 Utica Shale the ‘Mother Lode’? 4 Village is ‘in the money’ 6 Zane State receives $1 million for energy training 8 Chesapeake helps the United Way 10 Students receive energy scholarships 12 Coalition keeps people 14 Chesapeake Energy has Community Appreciation Day 16 From 3 trucks to 32 was lucky break 18 New pipeline from Ohio to benefit say 20

◆ Rex Energy donation to benefit Carroll County youths 24 ◆ School launches gas/oil technology program 26 ◆ Understanding ‘phases’ of gas/oil boom 28 ◆ OSU students getting involved in gas and oil industry 32 ◆ Tri-Valley schools dedicate Halliburton Athletic Facility ◆ Consulting part of developing business pg. 36 ◆ Keeping the water flowing 40 ◆ Growth numbers don’t lie 42

Attributions Andrew S. Dix Co-Publisher

Rob Todor Executive Editor

G.C. Dix II Co-Publisher

Cathryn Stanley Regional Editor

Ray Booth Executive Editor

Niki Wolfe Regional Editor Ed Archibald SE Ohio Sales Cambridge, Ohio Office 740-439-3531 “Gas & Oil” is a monthly publication jointly produced by Dix Communication newspapers across Ohio. Copyright 2012.

Janice Wyatt National Major Accounts Sales Manager 330-677-7180 Peggy Murgatroyd SE Ohio Sales Barnesville and Newcomerstown, Ohio Offices 740-425-1912 Barnesville 740-498-7117 Newcomerstown Jeff Kaplan NE Ohio Sales Alliance & Minerva, Ohio Office 330-821-1200 Owen Williams Layout Designer

Cover Photo: Jeff Hendershot/The Review Pictured is a drilling rig near Ohio Route 619.



Gas & Oil

October 2012 Edition - Dix Communications

Gas & Oil and the Road to the White House


nergy policy is a central issue in the 2012 presidential campaign, not only in its own right but also because of its reach into other key campaign issues, such as jobs and the economy, foreign affairs, environmental policy, and more. This year, the stakes may be higher than ever for those involved in industries affected by such policy. This is Brian King, Ph.D. evidenced by the fact that, acMuskingum cording to a New York Times analysis in early September University 2012, over $153 million has already been spent on television ads alone to promote oil and gas drilling, tout clean coal technology, and criticize clean energy initiatives. What follows is a rundown of the positions of both candidates on oil and gas issues; ExplOrATiOn AnD DrillinG: • Barack Obama supports maintaining the moratorium on drilling off the Atlantic and Pacific coasts, with limited exceptions for some current leases. He has indicated support for allowing limited drilling off the Virginia and Alaska coasts. • Mitt Romney is in favor of a significant expansion of both exploration and drilling. He would allow drilling on all federal lands, including the Arctic National Wildlife Refuge, and all along both the Atlantic and Pacific coasts. rEGulATiOns AnD rEsTriCTiOns: • President Obama supports maintaining federal control over drilling and permits on federal lands and waters, and would support the Interior Department and the EPA keeping the powers they currently hold. He also supports stricter standards on fuel efficiency, and increased environmental restrictions to reduce greenhouse gases. • Governor Romney would strip much of the regulatory power currently held by Interior and the EPA with regard to drilling and permits on federal lands and waters, instead allowing states to regulate federal land and water rights within their borders. He opposes Obama’s proposed fuel efficiency standards.

HyDrAuliC FrACTurinG: • Obama supports the practice, but with federal restrictions in accordance with guidelines drawn up by the EPA and leading companies. • Romney supports the practice, which would benefit from proposed efforts to loosen federal drilling restrictions and speed up the permitting process. subsiDiEs, TAxATiOn, AnD spEnDinG: • Obama plans to eliminate tax breaks for the oil and gas industry, which currently amount to $4 billion per year. He would increase federal spending on alternative energy research and development, and would keep incentive programs to develop renewable energy technologies. • Romney would maintain the current tax breaks for the oil and gas industry, instead reducing or eliminating federal spending on alternative energy initiatives. He would let the free market decide for itself where energy research and development dollars should be spent. pipElinEs AnD prODuCTiOn: • Obama initially opposed, then approved, one portion of the Keystone XL pipeline, and is waiting for feedback from federal agencies on the costs and benefits of approving or opposing the northern portion of the pipeline. He is not opposed to increased oil and gas production, even supporting efforts to shut down coal plants in favor of gas-powered plants. • Romney would quickly approve the Keystone XL pipeline. He would also encourage increased domestic oil and gas exploration and production, and supports efforts to expand clean coal technology. OvErAll EnErGy priOriTiEs: • Obama supports an “all of the above” energy strategy, which supports all types of energy production but gives preference and priority to renewable and other alternative technologies. Greater energy independence is a desired goal over the next decade. • Romney supports expanded exploration and drilling, and would let the market decide the future direction of energy technology research and development. He would loosen federal regulations and delegate regulatory power to the states. His goal is energy independence by 2020.

Dix Communications - Gas & Oil

October 2012 Edition


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Gas & Oil

October 2012 Edition - Dix Communications

Utica Shale: Eastern Ohio’s Potential


Mother Lode

lthough the Marcellus Shale has been the most prevalent unconventional shale drilling target in Pennsylvania and bordering states, another formation with enormous potential lies a few thousand feet below the Marcellus. The Utica Shale is thicker and more geographically extensive than the Marcellus. Led by Chesapeake Norm Shade Energy, a number of major oil President, & natural gas producers have ACI Services leased acreage and are actively conducting exploratory drilling in the Utica. Named for the town of Utica, New York, where a surface outcropping of the shale was first identified in 1842, the Utica Shale is a geological structure that formed roughly 465 million years ago when middle Ordovician age seas covered much of North America. The black, low density, carbonaceous (i.e., organic rich) shale lies beneath most of New York, Pennsylvania, Ohio and West Virginia and extends under adjacent parts of Ontario and Quebec in Canada and Kentucky, Maryland, Tennessee and Virginia in the U.S.

Forecasters say that Ohio may be producing 250,000 barrels of oil daily from the Utica in just a couple of years, with the potential for as much as 500,000 barrels per day. Oil and natural gas are trapped within the pore spaces of the shale, having difficulty escaping through the very thin and poorly connected pore spaces. As in the case of other shale formations relatively new horizontal drilling and hydraulic fracturing technologies have created the potential for the rich Utica resource to be developed economically. It has recently become the target of gas and oil exploration in eastern Ohio and Pennsylvania, where it is shallowest at around 8000 ft. deep. Its thickness ranges from 70 ft. at the margins to as much as 1000 ft. in the central parts of the play. Eastern Ohio is currently the

center of most exploration and development. With natural gas prices currently depressed, drilling for dry natural gas has all but stopped in the U.S. However, drilling for oil and gas that is rich in natural gas liquids remains profitable for producers. In eastern Ohio, the Utica is thought to be relatively rich in 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 of natural gas. Some geologists believe that the Utica Shale could rival the massive Marcellus Shale play in 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. Forecasters say that Ohio may be producing 250,000 barrels of oil daily from the Utica in just a couple of years, with the potential for as much as 500,000 barrels per day. With development of the Utica in its infancy, more wells will have to be drilled before these forecasts can be validated. Only about 100 wells have been drilled so far this year, but the ODNR predicts the number to swell to more than 1900 wells in 2014. Leases and exploration and drilling operations have resulted in major investment in eastern Ohio. As production ramps up, investments in infrastructure expansions are starting to occur. So far this year, MarkWest Energy and Chesapeake Energy have announced plans to build new gas processing facilities in Monroe, Harrison and Columbiana Counties, and Williams Partners LP also plans new pipelines and processing facilities for oil and natural gas in the region.

Jeff Hendershot/The Review A drilling rig near Ohio Route 619.

Dix Communications - Gas & Oil

October 2012 Edition



Gas & Oil

October 2012 Edition - Dix Communications

Village is in the Money


t the Monday, Sept. 13 meeting, Barnesville Village Council voted unanimously to enter into a lease agreement with Colorado-based Antero Resources for 1,047 acres of village-owned property outside of village limits at a rate of $1,570 per acre and 20 percent royalties, resulting in just shy of $6 million. The land is located in Somerset Cathryn Stanley Dix Communications and Warren townships. Mayor Ron Bischof said council will proceed with caution and make a plan as to how the money is invested and used. No specific plans were announced at Monday’s meeting.

“I feel good about it. You (council) have always worked exceedingly hard for the village.” - Atty. Ed Sustersic Antero Land Manager Chris Treml thanked the village on behalf of the company. Antero Resources is an independent exploration and production (E&P) company engaged in the acquisition, development, and production of unconventional natural gas resources in the United States. Unconventional play types for Antero include fractured shales and tight sands. Corporate headquarters are located in Denver, Colorado. The agreement has been in the works for over a year and was facilitated by Belmont County attorney Ed Sustersic of the Utica Landowners Group LCC. Village Administrator Roger Deal thanked Sustersic for ULG’s help in securing the deal with Antero. “I feel good about it,” Sustersic said. “You (council) have always worked exceedingly hard for the village.” According to a press release, last year, the group brought XTO into Belmont County at approximately $5,000 per acre when other companies were paying less than $4,000 per acre. Earlier this year, ULG worked with Antero in parts of Monroe, Noble and Guernsey counties, resulting in Antero paying $5,900 per acre and 21 percent royalties — so far the highest in the state for a group.

Cathryn Stanley/Barnesville Enterprise Pictured signing an oil/gas lease agreement for 1,047 acres of village-owned property outside village limits at a rate of $1,570 per acre and 20 percent royalties are, standing, (l-r) Chris Treml and Boone Ellis from Colorado-based Antero Resources. Seated is Barnesville Mayor Ron Bischof. Standing, right, is council president Dale Bunting.

Antero Resources was formed in 2002 by Paul M. Rady and Glen Warren following their success with Pennaco Energy. Antero has properties in the Appalachian Basin in West Virginia, Ohio and Pennsylvania and in the Piceance Basin in Colorado. It is one of the largest Marcellus shale producers in West Virginia with more than 100 wells. According to Treml, the company has 300 horizontal wells in various basins in the United States including three wells in Monroe and Noble counties, two completed and one under construction. ULG has been studying the market since 2007. Sustersic said ULG speaks on behalf of landowners to obtain the highest lease and royalties in the area. “ULG firmly believes that for those landowners in western Belmont County who have not yet signed a lease, the time has come,” he said. ULG held a meeting on how to obtain an oil and gas lease for $5,700 per acre and 20 percent royalties on Sept. 13 in Morristown for landowners in western Belmont County townships of Somerset, Warren, Wayne, Goshen, Union, Kirkwood and Flushing. For more information about the Utica Landowners Group LLC, call (740) 635-0348.

Dix Communications - Gas & Oil

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Gas & Oil

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Zane State gets $1 million for energy training


he state Controlling Board released $1 million recently for Zane State’s Energy Training and Education Center in Cambridge. The funds will be used for architecture, engineering and construction management for the project were earmarked for capital projects in past budgets. Another $6 million was set aside for the project by the state earlier this year, with another $3 million coming from private sources. Paul R. Brown, president of the college, said groundbreaking ceremonies are scheduled for later this month, and the new building is expected to be completed by early 2014.

“The programs are growing at a fairly good clip right now.” - Paul R. Brown Zane State has an existing Cambridge campus, with one building offering industrial space, a few classrooms and a few administrative offices, Brown said. The new building, which will have about 37,000 square feet of space, is needed to accommodate the college’s expanding local presence, particu-

larly in energy-related degree and certificate programs. Among other offerings, the college has an introductory course that prepares workers heading toward careers in the oil and gas industry, including the emerging use of horizontal hydraulic fracturing, or fracking. “The programs are growing at a fairly good clip right now,” Brown said. Perforating Per•for•a•ting verb : The process of creating holes in the steel casing adjacent to the hydrocarbon-bearing formation. The perforations (or “perfs”) allow fracturing fluids to access the formation, and later, serve as the conduits that allow hydrocarbons to flow into the wellbore.

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Gas & Oil

October 2012 Edition - Dix Communications

Chesapeake helps United Way project


ardening is something many of the seniors at Catholic Charities Adult Day Services in Louisville remember fondly. So, administrators there decided to ask to have the flowers beds surrounding the front porch spruced up during the United Way Day of Caring in early September. United Way matched volunteers from Laurie Huffman Dix Communications Chesapeake Energy Corporation with the adult care center, and the workers said they were having a lot of fun weeding, planting and mulching on what, fortunately, turned out to be a lovely, sunny day. “For many of our participants, gardening was something they used to love to do, and they can’t do it any longer. That’s why we have flower beds, bird feeders and bird houses along the front porch, to give them a sense of belonging and help them remember happy times spent in the garden,” said Diane Cumberledge, Catholic Charities Adult Day Services program director. “So, this project not only makes the agency look better, it makes our participants feel better.” Having a day like this when the participants can watch the digging and planting gives them a day they can dig into their memories and recall times they did gardening themselves throughout their lifetimes,” said Debbie DelCorso, of the Catholic Charities Foundation of Canton marketing department.

Review Photo/Gayle Agnew

“It gives all our participants a sense of belonging and a feeling of being in a homey environment,” said Deb Kampman, assistant director of Catholic Charities Adult Day Services. “It gives them a sense of peace to see the flowers. And, weather permitting, from spring through winter we do go outside on the porch to sit and also feed the birds, squirrels and chipmunks.” “We also have a resident gardener among our participants, Chuck Murphy, who loves to tend the plants. He’ll spend all day watering the plants and flowers, and I know he’ll be thrilled with all the new things that will be growing,” said Cumberledge. Along with providing volunteers, Chesapeake Energy, the number one player in Ohio’s Utica shale drilling activities, also paid for the mulch, and Petitti’s Garden Center, of Louisville, donated the perennials that were planted. Aimee Belden, of Chesapeake, reported 10 employees from the company came out to help with the work. The volunteers included people from a number of areas within the company, such as human resources, the regulatory department, and the corporate division, among others. Staff from the Canton offices also came out along with a few landmen, who are responsible for getting permission to drill new wells. Workers who dug in the dirt alongside Belden were Mark Deering, Jessica Taylor, Jennifer Lorenzi, Andrew Judacko, Camille Petrakis, Kaylee Miller, Victoria Rogers, Michelle Edwards, and Jeff Emmons. “We’re happy to be able to do it,”said Belden. It’s something we feel good about, and it’s a beautiful day to be working outside like this.”

“It gives all our participants a sense of belonging and a feeling of being in a homey environment.” - Diane Cumberledge

Chesapeake Energy employees, from left, Jeff Emmons, Victoria Rogers and Michelle Edwards clean up a portion of the landscaping outside the St. Joseph Adult Day Care Center in Louisville during the United Way Day of Caring.

Review Photo/Gayle Agnew

Chesapeake Energy employee Kaylee Miller plants a mum outside the St. Joseph Adult Day Care Center in Louisville. during the United Way Day of Caring.

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October 2012 Edition


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Gas & Oil

October 2012 Edition - Dix Communications

Energy: A

Scholarships to Help Fuel Future for Local Students

s growth continues in the exploration, drilling and production of Ohio’s natural gas and crude oil industry, so does the need to provide scholarship opportunities to students who are seeking energy careers. The Ohio Oil and Gas Energy Education Program and the Ohio Oil and Gas Energy Education Foundation has awarded 35 scholarships to well qualified and highly-motivated students. The members of the OOGEEP and Foundation’s Scholarship Committee consists of industry leaders, and judge the students on career goals, an essay, letters of recommendation, academic achievement, awards or special recognitions, community service and other outside activities. The applicants must also be an Ohio resident or planning to attend an Ohio college, university or vocational school. The Petroleum Engineering Program at Marietta College, one of the oldest in the country, continues to lead in scholarship recipients with awards to the following Ohio students: Chelsea Almady, North Olmsted; Matt Boothe, Dublin; Jacob Double, Marietta; Hannah Duncan, Norwalk; John Fryman, Little Hocking; Sarah Gallahan, Peru; Aleisha Guiler, Lower Salem; Matthew Johnson, Cambridge; Darin Morgenstern, Whipple; Ellen Schott, Caldwell; Mark Torres, North Aurora; Joel Anderson, Dayton; Kelsey Kallenborn, Marshallville; Jeffrey Lucas, Ironton; Jacob Markiewicz, Marietta; John Moore, Fleming; Trever Pontius, Salesville; Kaitlin Pottmeyer, Fleming; Taylor Pottmeyer, Marietta; Simon Sanders, Cleveland; Nicole Schaly, Ashland; Dakota West, Dennison; and Zachary Zody, Wooster. Kent State University had several recipients including: Brianna Vayner, Lake Milton, (Geoscience); Nathan Haas, Alliance, (Geology); and Erica Schubert, New Philadelphia, (Geology). Other new scholarship winners included: Marcy Angelo, Hubbard, (Geology), Youngstown State University; Derek Craig, Fairfield, (Petroleum Engineering), West Virginia University; Phillip Dunning, Westerville, (Civil Engineering/ Geology),

The Ohio State University; Kimberly Landreth, Brunswick, (Geology), University of Akron; Jeffery Schallick, Columbiana, (Chemical Engineering), University of Pittsburgh; Emily Zabasnik, Minerva, (Environmental Science), University of Mount Union; and Joseph Zollars, Killbuck, (Natural Gas Technology), Zane State College. For the first time in the scholarship program’s history, the Committee also awarded scholarships at the technical level and awarded welding scholarships to: Joshua Honaker, Lewisburg, and Cory Sestak, Perrysburg, to attend the Hobart Institute of Welding Technology. “Advances in technology and energy demand drive our need to encourage more students to pursue careers in Ohio’s natural gas and crude oil industry,” said Scholarship Committee Chairman Frank Gonzalez. OOGEEP Executive Director Rhonda Reda said, “OOGEEP’s economic impact study, released last fall, estimates that over 200,000 jobs will be needed in this local industry by 2015. Now is the time to train and prepare our workforce to help develop, produce and supply Ohio’s future energy resources. Supporting and rewarding these outstanding students is a great start.” The 2012 Scholarships were primarily funded through special industry training proceeds, memorial contributions and general donations from Ohio’s natural gas and crude oil industry. The Ohio Oil and Gas Energy Education Program is a nonprofit statewide public outreach program. The mission of OOGEEP is to facilitate educational, scholarship, safety and training programs; to promote public awareness about the industry; and to demonstrate to the general public the environmental, energy and economic benefits of Ohio’s independent natural gas and crude oil producers. OOGEEP is not funded with any taxpayer dollars.

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Coalition keeps people informed


t took only a phone call on our county in a positive way,” from a business owner in said Sexton. Pennsylvania in June of It didn’t take long for names like 2011 to set the wheels in moHalliburton, Gulfport, Anadarko, tion for the biggest news to hit Shell, Marcellus and Utica Shale Guernsey County in decades. to become part of Guernsey CounJo Sexton, president of the ty vernacular, with “hydraulic Cambridge Area Chamber of fracturing” as the latest buzzword. Commerce said, “Out of the Since that first meeting, the Coblue, I got this call from a man alition has met regularly on the Jo Sexton in Pennsylvania telling me that first Thursday of the month where I had better get some business Sexton has introduced speakers, CACC President Judie Perkowski who either represent or do busiDix Communications and local government people together to prepare for the oil ness with the gas and oil industry in some capacity. Speakers and gas boom that was coming to our area in the very near have included officials of state regulatory agencies, oil and gas future. company executives and producers, college presidents, county “I was stunned. recorders and auditors, gas and oil lease experts, heads of gas/ “Seth Alberts, a business owner and board member of the oil educational programs and associations, and even the proWilliamsport Chamber of Commerce, said we (Guernsey ducer of a movie about “fracking.” Programs have touched on County) are going to experience the same thing Williamsport almost every aspect of the gas and oil industry: leasing propexperienced, and he thought he should just give me a heads-up. erties, exploration, drilling, completion, production, reclamaIn other words, we should be prepared to get slammed by oil tion and especially on the aforementioned buzzword, hydraulic and gas companies setting up shop fracturing. in Cambridge. He said Williamsport In May of 2012, the Coalition had was not prepared and made a lot of an opportunity to be involved in the CAMBRIDGE AREA mistakes, and he was hoping that new Eastern Ohio Oil and Gas Initiawould not happen to us. tive that will allow Guernsey County “According to Seth, nearly every to be more inclusive, relative to the type of business would be affected. OF COMMERCE gas and oil industry in the Eastern From hotels and restaurants, to groOhio Development Alliance. The cery stores, retail stores, gas stations and more. And, he said Initiative was developed to create a regional organization for they are certainly going to have an effect on our police, fire counties in the Utica Shale Formation who are also members of department and the hospital. Some companies will be here for the EODA, with its stated mission of promoting the economic a short period of time, some will be here for years and longer.” growth of the region. It didn’t take Sexton long to share the news. She called the Also at the May Coalition meeting, members were introheads of local business and organizations, city and county ofduced to the newly formed STEPS network in Cambridge, for the oil and gas industry. STEPS, an acronym for Service, ficials, realtors, utility managers, education and church leadTransmission, Exploration, Production and Safety was origiers asking them to become part of a coalition to find out more nated by the Occupational Health and Safety Administration in about this oil and gas boom that is supposed to be here mo2003. The network promotes safety, health and environmental mentarily. improvement in the exploration and production of oil and gas Hence, the first meeting of the Guernsey Energy Coalition in the U.S. was called to order on July 14, 2011, where Sexton explained The well-attended meetings have captured the attention of the meeting’s purpose and what she hoped to accomplish. Seth interested persons far from Guernsey County borders. Alberts was the Coalition’s first speaker. One year ago few people knew or understood what was “The Coalition meetings provide industry expertise as well about to change the landscape and economic climate of southas local and regional updates on Utica Shale drilling activities. eastern Ohio, but because of Sexton’s initiative in organizing We want to keep everyone informed, and to share information. the Guernsey Energy Coalition meetings, members got the The Pennsylvania community leaders I spoke with strongly facts and advice from the experts and then shared that informarecommended this type of forum so we are all working in unition about the oil and gas industry throughout the county and son and avoiding pitfalls when possible. By representing your beyond. business or association, disseminating information and creating open dialogue, we are more likely to manage the impact


Dix Communications - Gas & Oil

October 2012 Edition


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Gas & Oil

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Chesapeake Energy offers Carroll residents fun


undreds of people attended Chesapeake Energy’s Community Appreciation Day on Aug. 18 at the Carroll County YMCA. “The purpose of the Community Appreciation Day was to recognize the support that Chesapeake has received from Carroll County. We were overwhelmed at the turnout as 1,000 people attended the event at the Carroll County YMCA for entertainment, food and to interact with others from the community,” said Aimee Belden, communiy relations coordinator. The event featured inflatables, food, craft projects, a balloon artist, face painter and more for area children and adults. School supplies were also given to children in attendance. Attendees were also able to play Cornhole and check out an truck that uses liquified natural gas. “The event would not have been possible without the nearly 30 industry partners who provided support through volunteers, sponsorship and food donations,” Belden said. Chesapeake Energy has no plans to hold another Community Appreciation Day at this time.

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Gas & Oil

October 2012 Edition - Dix Communications

From 3 trucks to 32; a ‘lucky break’

S Rob Todor Dix Communications

cott McCrea describes his foray in the Gas & Oil business as a “lucky break.” In reality, most observers would say it was more of a case of persistence paying off. McCrea, who’s led a success construction company, Dynamic Structures, for 25 years, has been associated for the Gas & Oil industry for only a little over a year. But his Clear Creek Oilfield Services has become a

leader in the industry. And to think it all started with McCrea getting chased off of oil drilling sites. “I would just drive around to well sites and try to talk to whoever was in charge,” he recalls. “I met with a lot of resistance; I got thrown off a lot of properties. The big break for what would eventually become Clear Creek came when McCrea stopped at a site that was experiencing a spill. “They had a lot of problems trying to get it cleaned up; it took them about three weeks and they still weren’t getting anywhere,” he recalls. So McCrea talked to the site manager and volunteered his company’s fleet. The drilling company was so impressed that McCrea was offered a Master Service Agreement. “They told me, ‘Welcome to the country club,’” laughs McCrea.

“At that time we had three trucks,”says McCrea. “Today we have 32” and more are on the way. “Really we got a luck break. I was in the right place at the right time,” says McCrea. Even so, Clear Creek has had to prove its worth to the Gas & Oil industry to not only maintain its position but to grow at such a rapid pace. “We’re blessed to have a lot of good people in the organization,” says McCrea. “I’m surrounded by problem-solvers and very solid managers.” The Clear Creek fleet consists of 15 water trucks, both straight and tractor-trailer; six straight dump trucks; two tractor-trailer dumps and assorted other roll-backs and boxes. “Anything they need to build a pad,” says McCrea, whose trucks can be seen all over Eastern Ohio, into West Virginia and Central Pennsylvania. Coming next are two Hydro-Vac machines, which will be used for cleaning up well sites after the drilling is completed. In reality, Clear Creek can do everything at a well site except provide the rig and the drillers. “We like a challenge,” McCrea says. “In fact, the more difficult the challenge, the more likely we’ll take it on.” But just don’t expect Clear Creek to go into a project unprepared. “We properly train our drivers; we put a lot of time and money in training,” McCrea says. “We have a solid reputation in our other businesses that is already well-known. We want to do [the job] right so you, as the customer, will call us back.”

“I would just drive around to well sites and try to talk to whoever was in charge. I met with a lot of resistance; I got thrown off a lot of properties.” - Scott McCrea

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Dix Communications - Gas & Oil

October 2012 Edition


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Gas & Oil

October 2012 Edition - Dix Communications

New pipeline from Ohio to beneďŹ t, say experts Kim Leonard Pittsburgh Tribune-Review


new petroleum pipeline from Ohio would ease gasoline shortages in Western Pennsylvania and help stabilize prices at the pump, experts said Thursday. Sunoco Logistics Partners L.P. plans to build about 160 miles of underground pipeline in Pennsylvania and Ohio, connecting the new lines with some existing ones, to transport refined oil products from the Midwest to eastern Ohio and the Pittsburgh region. The move by the Philadelphia-based master limited partnership is “part of a national trend. We are seeing a lot of structural changes� designed to flow petroleum from expanding production areas and refineries to markets where demand exists, said Brian L. Milne, refined fuels editor for commodity information services provider Telvent DTN. “We have a lot of pipelines in this country, but they are not going where they are needed right now,� he said. Philadelphia-based Sunoco said its Allegheny Access pipeline will be able to deliver 85,000 barrels a day when it goes into operation in the first half of 2014, and it could scale up to 110,000 barrels of capacity. New lines will be up to 12 inches in diameter and mostly will be built along existing rights of way, running parallel to current pipes when possible, Sunoco Logistics said.

Shippers provided sufficient commitments to use the pipeline in a recent “open season� to push the project forward, said the partnership, which also includes Inland Corp., which is 83 percent-owned by Sunoco Logistics. The cost was not disclosed. Industry experts listed reasons to build the pipeline now: —Crude oil from domestic regions such as North Dakota, now the second-largest U.S. oil producer after tripling output in the last three years, is as much as $40 a barrel cheaper than the imported crude that East Coast refiners process. That creates a price advantage. —Several refineries on the East Coast and in the Caribbean have been idled in recent years, and because most of Pittsburgh’s supply traditionally has come from the East, the region has experienced volatile prices and some shortages. —Expansions have been completed or are underway at several Midwest refineries, including BP’s facility in northwest Indiana and Marathon Oil’s in Detroit. With more capacity, refineries will be able to process domestic as well as Canadian crude oil. “This essentially gives Pittsburgh the ability to source production from the Great Lakes, rather than just the East Coast,� Patrick DeHaan, senior petroleum analyst for, Continued on pg. 33

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Gas & Oil

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Dix Communications - Gas & Oil


October 2012 Edition


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in honest making a killing off good Investment Management / Trust &your Estate Administration / fortune. Retirement Planning you with true, counsel in how toland. manage your financial resources for now Youinlease your The drillers drill. Community Financial Advisors (CFA) you’ve machinery, vacation Hawaii, get the motor home always dreamed Community Financial Advisors (a subsidiary of ab 113 North Fifththe Street, Zanesville, Ohio / 740.453.0620 generations come. We’re alternative togoals. the slick Wall/ Street The energy comes up. The checks comebrokers. in. Comm All well andtogood. But, these are short term The Community Bank) can provide you with true, About Then what? Newly acquired wealth from leasing your land formillion drillingfor rights quickla Financial Advisors (CFA) currently manages overus $135 localcan families 110 years ago our founders set to the standard for what caring for neighbors honest counsel in how manage your financial disappear if you don’t carefully consider your options for achieving long term ou’ve got a islot things domaintained with the money; likeforpay offtheequipment and allof about. Everyou since,can we’ve a reputation being “go to” businesses inresources our area. We’re your neighbors and we’re well-known forWe’re the confide when it toand caring trust in our community. for now generations toalways come. machinery, vacation incomes Hawaii, getand the motor home you’ve dreamed about. financial growth and folks stability. All well and good. But, these these short term goals. and trust soalternative important days. the toarethe Wall Street brokers. You that’s need to talk to somebody whoslick isn’t interested in making a killing off your Newly acquired wealth from leasing your land for drilling rights can quickly Newly acquired change your life.options We can help make sure it change good fortune. Community Financial Advisors (CFS) currently disappear if wealth you don’tcan carefully consider your for achieving long term financial growth and stability. Community Financial Advisors (a subsidiary of The Community over $135 million for local familiesBank) andcan pr for the better.manages You need tocounsel talk to somebody who isn’t interested in making a killing off yourfor now an you with true, honest in how to manage your financial resources PleaseWe’re contact us for: businesses in our area. your neighbors and good fortune. generations toCommunity come. We’re the Advisors alternative to the slick Wall/ Street brokers. Commun Investment Management / Trust(a&subsidiary Estate Administration Retirement Planning Financial of The Community Bank) cantrust provide we’re well-known for Financial the confidentiality and Community Advisors (CFA) Financial Advisors (CFA) currently manages over $135 million for local families an you with true, honest counsel in how to manage your financial resources for now and that’s so important these days. 113 North Fifth Street, Zanesville, Ohio / 740.453.0620 / generations to come. We’re the alternative to the slick Wall Street brokers. Community businesses in our area. We’re your neighbors and we’re well-known for the confiden Financial Advisors (CFA) currently manages over million foryour local families Newly acquired wealth can$135 change life.andWe and trust that’s so important these days. businesses in our area. We’re your neighbors and we’re About us well-known for the confidentiality can ityour changes Newlyand acquired cansure change life. Wefor can the help better. make sure it changes trusthelp that’swealth somake important these days.


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Gas & Oil

October 2012 Edition - Dix Communications

Rex Energy donation to benefit Carroll County youth


arroll County youth will now have a new ballfield thanks to Rex Energy Corporation. On Aug. 20, Rex Energy presented the Carroll County Park District with a check for $33,500 to construct a ballfield at the Carroll Community Park on Salineville Road, Carrollton. Parks Director Dale AlexKimberly Lewis ander, Park Board President Dix Communications Wayne Chunat and Lynn Bond, the newest member of the parks board, accept the donation from local and regional Rex Energy Corporation representatives Dave Rogers, F. Scott Hodges, and Paul Sergent. After Rex Energy representatives met with local civic and business leaders to determine the community’s needs, the employees of the Carrollton office carefully reviewed the proposed projects. The employees decided the park district’s property was an “appropriate fit for this investment” since the project will benefit area youth of all ages. “Rex Energy prides itself on operating in an environmentally responsible manner and investing in the communities in which

we operate. This donation to the Carrollton Parks District is just one way of giving back to a community that we plan on being a part of for years to come,” said Hodges, a Rex Energy senior vice president. “We’re excited to see this donation in action and look forward to opening day at Rex Energy Field.” Construction of the ballfield will begin soon. Each year, Rex Energy hosts an annual charity golf outing to raise money for non-profit organizations in each of its operating areas. Previously, the funds raised during this outing were evenly divided between Rex Energy’s Pennsylvania and Illinois operating area. With its operating area expanding to Ohio this past year, officials plan to make similar donations in the Carrollton area in the years ahead.

“This donation to the Carrollton Parks District is just one way of giving back to a community that we plan on being a part of for years to come.” - F. Scott Hodges

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Dix Communications - Gas & Oil

October 2012 Edition


Submitted Photo Parks Director Dale Alexander, (from left) Park Board President Wayne Chunat and new Park Board member Lynn Bond accept the donation from local and regional Rex Energy Corporation representatives Dave Rogers, F. Scott Hodges, and Paul Sergent. Residential * Commercial * Agricultural

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Gas & Oil

October 2012 Edition - Dix Communications

School launches gas/oil technology program

Review Photo/Kevin Graff Marlington teacher Bob Givens goes over parts of a tractor with students in his Oil and Gas class on Friday afternoon.

Laurie Huffman Dix Communications


lliance’s Marlington High School has launched the first Gas and Oil Technology program for high school level students in Ohio. With more than 20 juniors and seniors enrolled, the program is considered a pilot course, and, as such, it is being monitored and will likely be emulated across the state. “I taught here at Marlington between 1970-2000, and this gas and oil boom is the biggest change in natural resources and agriculture I’ve seen, with the most new opportunities for jobs,” said class instructor Bob Givens, who taught natural resources for decades. “With the money people in this part of Ohio are receiving for sign on bonuses, already there are buildings being constructed and farmers are buying new equipment, just to name a few of the early impacts to the economy.” The students in Givens class will learn practical skills needed in the gas and oil industry, skills designed to help them get jobs or that will give them a foundation further studies at the college level. Givens reported he worked with officials at the Ohio Department of Natural Resources and Ohio Department of Education to put the curriculum together, which involves some classroom work and some work in the shop and outside learning how to operate various pieces of equipment, including backhoes, skid steer, trackhoes, bulldozers and more. Staff and students will also come to the school from Stark State College, in North Canton, during the month of October for training on how to operate an off-road fork lift. In addition, Givens students are learning how to maintain the equipment they will operate, how to survey a potential well site, how to develop a site, how to determine where the water run off is lo-

cated, and what wind erosion should be factored in. They will also learn about leasing the land and how to do water testing, among other things. Givens also reported he and his students have been invited to attend the Ohio Economic Education Summit VI, to be hosted by Ohio ACTE (Association for Career and Technical Education) on Feb. 26-27, in Columbus. “When I contacted ACTE to tell them what we’re doing, they invited us to some and participate,” said Givens. The theme for this year’s summit is College and Career Readiness for Ohio Job Creation, and that appears to be exactly what ODE, ODNR, Marlington High School, and Givens are working to do, help students gain skills to get them ready for a crucial, mainstream, emerging job market.

Review Photo/Kevin Bob Givens teaches his class on the gas and oil industry at Marlington High School.afternoon.

Dix Communications - Gas & Oil

October 2012 Edition



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Gas & Oil

October 2012 Edition - Dix Communications

Understanding ‘Phases’ of gas-oil boom Judie Perkowski Dix Communications


orting through the volumes of information pertaining to the oil and gas industry is enough to make your head spin, even relating to something as relatively simple as definitions of leasing, exploration, drilling and completion, production and reclamation. But, help is on the way. In an effort to disseminate the crux of this information overload, several knowledgeable persons in the field have been contacted or referenced for their input, in addition to state regulatory websites.

program, the Subsurface Energy Resource Center, has been developed at The Ohio State University. The Center brings together educators, researchers and state Extension specialists to meet with representatives from the Ohio Department of Natural Resources, Ohio Farm Bureau and Extension Office to give updates about what’s relevant to shale gas in Ohio. Phase 2: Exploration Exploration surveying is the first stage in the search by petroleum geologists and geophysicists for hydrocarbon-bearing rock formations. Geological maps are reviewed to identify areas which meet the criteria for on-site exploration. Hydrocarbon is a compound of hydrogen and carbon, the chief components of petroleum and natural gas. Hydrocarbon exploration is an expensive, high-risk operation. Aerial photography may be used to help pinpoint promising landscape formations, in addition to more detailed information provided by a field geological assessment. A seismic survey is often the first field activity undertaken. Dynamite was once widely used as an energy source, but environmental issues now favor lower energy sources such as a generator that hydraulically transmits vibrations into the earth. Special cables transmit electrical signals received to a mobile laboratory where they are amplified and filtered, and then recorded on magnetic tapes for geological interpretation. Continued on pg. 30

Phase 1: Leasing Leasing is the first step in the process. A reliable source for obtaining accurate information is the Ohio State Extension Office which helps landowners understand the potential financial, legal and environmental ramifications of highly complex leases, which could last for generations. The Extension Office strongly advises landowners to contact a lawyer experienced in mineral rights before signing anything. Realtors can also offer information about mineral rights. The Extension Office has developed more than 40 programs on a variety of topics relating to shale gas and oil, including financial issues, water and environmental concerns, tax planning, public policy and leadership education and more. A new

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Gas & Oil

October 2012 Edition - Dix Communications

“phases” from pg. 28 Phase 3: Drilling Drilling exploratory boreholes is the only way to confirm the presence of oil and gas deposits and the thickness of a reservoir. All wells that are drilled searching for hydrocarbons are “exploration wells,” known by drillers as “wildcats.” A pad is constructed at the site to accommodate drilling equipment and support services. Typical drilling rigs include a derrick, drilling mud handling equipment, power generators, cementing equipment and tanks for fuel and water. The support camp usually provides work- force accommodations, mess hall, communications, vehicle maintenance and parking areas, storage areas and provision for the collection, treatment and disposal of wastes. Drilling operations are generally conducted around the clock. The time it takes to drill a borehole depends on the depth of the formation and geological conditions and is usually completed in one or two months. When the formation is located, well tests — which take about another month — are conducted to establish flow rates and formation pressure. These tests may generate oil, gas and formation water, which needs to be disposed. The waste water cannot be routed to any water- ways, streams or rivers and cannot be sprayed on roads. After drilling and testing, the rig is usually dismantled and moved to the next site. If commercial quantities of gas and oil have been discovered, a well- head valve may be installed. Once drilling is completed, the wellhead and sites are smaller than when the drill rig was on site. If the well does not contain commercial quantities of hydrocarbon, the well is capped with a cement plug, the site is shut down and restored to its original state or to terms in an agreement. When exploratory drilling is successful, more wells are drilled to determine the size and extent of the field. Appraisal wells are drilled to quantify the reserves, which determines the number of appraisal wells required, and whether any further seismic work is necessary. A number of wells may be drilled on a single site. Deviated or directional (horizontal) drilling from a site adjacent to the original borehole may be used to evaluate other parts of the reservoir, in order to reduce land usage or “footprint.” Horizontal or vertical drilling cannot be done on a landowner’s property without his consent. Phase 4: Completion The completion phase is when the original drilling rig is removed and a smaller “completion rig” is installed to treat the potentially productive areas. The hydraulic fracturing or “fracking” completion process stimulate production by pressuring fluid and materials into the zone and creating cracks for the gas to flow up into the wellbore (or drilling hole). Phase 5: Production Production is when a well- head or “Christmas tree” is placed on top of the existing wellhead to control and regulate the flow of gas into a pipeline in order for the gas to be transported through a regional pipeline system. In modern, environmentally friendly field developments, an operator’s permit to drill usually includes a limit on the total surface area that can be disturbed at one time. Because of this

restriction, interim reclamation is conducted during the construction, drilling and well production phases of oil and gas development to ensure that surface disturbance is within the limits established in the drilling permit. During interim reclamation, land on a well site that is not being used for production, but has been disturbed should be undergoing the reclamation process through re-contouring, topsoil replacement and re-vegetation.

Phase 6: Reclamation Final reclamation is also required after a well is depleted or if it proves to be dry. The well must be plugged, and the well site and other areas disturbed by road or pipeline construction, must be reclaimed and flora must be restored. The time line for reclamation after a well is plugged in Ohio is three months after drilling began in an urban area; in nonurban areas, it’s six months after drilling began and includes seed/sod in non- essential site areas. The Ohio Department of Natural Resources Division of Mineral Rights Management provides for safe and environmentally sound development and restoration of mineral and fossil fuel extraction sites. Expertise is provided by a professional staff of geologists, environmental specialists, engineers, blasting specialists, soils scientists, hydrologists, archaeologists, and hydrogeologists. For information from the Ohio State Extension Office, call 740-489-5300 or visit For information about the Ohio Dept. of Natural Resources, go to

Dix Communications - Gas & Oil

October 2012 Edition

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Gas & Oil

October 2012 Edition - Dix Communications

OSU students getting involved in gas & oil industry


n the fall of 2011 The Ohio State University Earth Science Professor Jeff Daniels teamed with industry professional Joe Greco to host a shale play panel discussion and networking event at the university. At this event, Joe met Vince Melillo; a junior engineering student from the Youngstown, Ohio area. Vince, along with several classmates, had a growing interest in the shale industry in Ohio. After meeting and talking, Vince and Professor Daniels decided to create a student organization at OSU to bridge the gap between the academia of the university and the shale development industry. The Buckeye Shale Energy Organization was formed in the winter of 2012 and officially became a school organization in the spring. The original roster included Civil Engineering and Earth Science students but has since expanded to encompass students from Mechanical Engineering, Chemical Engineering, Business and Communications. The group’s focus is to educate and to connect the OSU student body to the shale energy boom happening in our very own backyard. The four official goals of the group include: • Educate interested students on the various and extensive topics associated with the industry. • Assist in networking opportunities between employers and hardworking students interested in their field. • Support professors, companies, researchers, etc. in projects/events affiliated with the BSEO’s concentrations. • Unite students and/ or professionals who are interested in energy exploration in Ohio. In spring 2012, the BSEO began bi-weekly meetings and quickly increased its enrollment. The group also brought in a few guest presenters from the industry to help educate the members. Toward the end of the school year, Ohio Agriculture and Natural Resources Committee Chairman David Hall invited BSEO members to the Ohio Statehouse where the students met with Ohio Oil and Gas Association Executive Vice-President Tom Stewart. The students were then fortunate enough to sit in on the Ohio Senate’s Public Utilities Committee hearing on Senate Bill 315. This past spring, the organization got off to a fast strong start, but this coming fall, the BSEO expects to ramp activities up even more. On Thursday, Aug. 30, the organization started bi-weekly meetings. There will be one industry professional giving a presentation at each of these meetings (If anyone reading this is interested in coming to do a presentation, contact bseorg@, however spots are filling up rapidly). The group will also be heading to the field to complete the first BSEO rig site visit. The biggest day on the fall calendar is the date of The Buckeye Shale Energy Organization Networking Event. On Thursday, Nov. 8, in the Ohio Union Great Hall Meeting Room at The Ohio State University, the BSEO will be hosting over 20 shale industry related companies for a networking event with Ohio State Students and college students from across the state of Ohio. Expected attending parties include, but are not limited to: Halliburton, Chesapeake Energy, BP, Hammontree & Associates, Tetra Tech, Honeywell, Excalibur Machine, IA Construction Corporation, Steptoe & Johnson PLLC, Ohio Department of Development, Bureau of Land Management, Business Resource Services, The Sunday & Daily Jeffersonian, United Rentals Trench Safety, Nicolozakes Trucking & Construction, INC. Organizers said that every day that passes, more companies are signing up, noting, “This affair is looking very promising for young and excited students to maximize their worth and potential for their futures in a career involving the shale play industry by connecting with such stronghold companies.” The event will be situated in the middle of an immensely important week in the state of Ohio. On Nov. 7-8, Professor Jeff Daniels will be hosting a Utica Shale Geology Workshop at Ohio State. There will also be an important industry safety related event at OSU on Nov. 9. The details for this third event are currently still under work, and therefore, cannot be mentioned by name. This early week in November is shaping up to be quite a lineup for anybody interested in the oil and gas industry in Ohio. Any company or student wishing to contact the BSEO my send an email to Also, be sure to visit the group’s facebook page at: BuckeyeShaleEnergyOrganization The current officers of the Buckeye Shale Energy Organization include Vince Melillo, President; Pat Moore, Co-Vice President; Dana Rose, Co-Vice President; Alex Sava, Treasurer; Laura Merugula, Chemical Ambassador; Chris Vasel, Operations Management; Drew Janek, Technical Manager. The faculty advisor is Jeff Daniels, and Earth Science PHD student Kyle Shalek is also a key group founder.

Dix Communications - Gas & Oil

“pipeline” from pg. 20 said, referring to the Allegheny Access project. “Whenever there is a pipeline added, it is sure to assist motorists.” Gasoline averaged $3.80 a gallon in Western Pennsylvania this week, up 3.3 cents from last week and just under the $3.82 national average. Delta Air Lines Inc. bought an idled ConocoPhillips refinery near Philadelphia this year in an effort to slash its fuel costs, and the air carrier said it may bring North Dakota oil in by train to process there instead of sourcing crude from overseas. Some units at the refinery will start running this weekend, Delta said. Donald Bowers, manager of petroleum and transportation for Superior Petroleum Co. in Ross, said gasoline supplies were steadier than normal this summer. But motorists still pay 5 to 20 cents a gallon more in the seven-county Pittsburgh region than in neighboring areas because of the requirement that stations sell specially blended gas in the summer. “That pipeline can do nothing but help us. It means more supply, and that is a good thing,” Bowers said, adding that a Buckeye Partners L.P. subsidiary operates a former BP pipeline east to Pittsburgh that was unused until last summer. Shares of Sunoco Logistics closed at $46.84, up 20 cents. The partnership owns 5,400 miles of crude oil pipelines and 2,500 miles of refined products lines in the Northeast, Midwest and Southwest.

October 2012 Edition


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Gas & Oil

October 2012 Edition - Dix Communications

Submitted Photo The new Halliburton Athletic Facility at Tri-Valley Local Schools.

Tri-Valley schools dedicate Halliburton Athletic Facility


ri-Valley Local Schools dedicated the new Halliburton Athletic Facility during a pre-game ceremony Friday evening at Jack Anderson Stadium. During the naming ceremony district officials presented a plaque of recognition to Senior Vice President Ron Shuman, of Halliburton’s Southern Region. The facility was open for a tour following the ceremony. Located behind the visitors bleachers on the east side of the stadium, the building includes locker rooms for home and visiting teams and coaches, handicap-accessible restrooms, changing rooms for sports officials, a weight room, training room and coaches’ offices. The project was made possible by a 10-year agreement between Halliburton and Tri-Valley’s 12th Man Club. “We look forward to being part of the community in this area of Ohio once again, contributing positively to the local economy and continuing our involvement in the communities in which we live and work,� said Shuman. Halliburton, which is building a transportation service center in the EastPointe Business Park to serve oil and gas fracking and drilling operations in the area, pledged donations to the club earlier this year of up to $800,000 over the next 10 years to support the Scotties’ athletic programs. The club worked with Century National Bank to finance the $430,000 project, and funds from ongoing fundraising efforts and annual Halliburton contributions will help make the debt payments on the loan. Halliburton is providing $35,000 this year and $62,500 in 2013, with a total in donations between $625,000 and $800,000 throughout the decade. The Halliburton money also is expected to offset and enhance the $350,000 in permanent improvement funds used by the school district to upgrade the home bleachers earlier this year.

The stadium will accommodate 600 more fans. The bleachers were raised so front-row spectators will be able to see the action over the team and coaches’ heads, and new sidewalks and handrails improved handicap and emergency crew access.





Dix Communications - Gas & Oil

October 2012 Edition

Imaging Ohioâ&#x20AC;&#x2122;s Subsurface




Gas & Oil

October 2012 Edition - Dix Communications

Consulting a big part of developing business


wners of local businesses who would like to provide ancillary services to businesses of the gas and oil industry have a new resource available locally in Elizabeth Carter. Owner of the eponymous Elizabeth Carter Consulting LLC, Carter wants to work with a broad spectrum of businesses. However, business John Lowe Dix Communications people with their eyes on the burgeoning growth of gas and oil companies have zeroed in on her. Considering her experience in the gas and oil industry, that interest is understandable. “I worked for a large company that did nothing but build compressor stations for the oil and gas industry,” Carter said. “So, for the last five years that was the industry I was focusing on.” A year ago, Carter resigned from Bi-Con Services to stay home with her toddler. As a member of the Guernsey Noble Safety Council board of directors and of Leadership Guernsey, word began to spread that Carter was home and might be available to help businesses the ins and outs of the gas Water understand Analysis Laboratory and oil industry. Analytical Support Services “They just started asking me to help them do things and that’s what led me to start my consulting company,” she said. With what sort issues does Carter assist? Select-O-Sep She helps implement industry-specific training, advises on human relations and personnel issues and the sort of policies that need to be With respect to policies, she can advise, or, even, write the policies that gas and oil P Oreview Box 158 740-994-4290 77520 Freeport-Tipp Rd nies demand of their vendors. 740-658-3912 Freeport, OH 43973 Having helped gas and oil companies in their hiring, she is We have office space available for rent well acquainted with the idiosyncrasies of the industry. “I know what small businesses should try to get in place now before the big boom hits,” she said, “safety policies, personnel

policies — everything that the oil and gas industry wants to look at, everything they want in place [in order] to be on a bidder’s list for them.” With respect to industry specific policies, consider the issue of drugs. With respect to drug usage, the gas and oil industry must follow Liz Carter the guidelines of the Pipeline and Hazardous Materials Safety AdBusiness Owner ministration. “It’s not the same as a commercial drivers license Department of Transportation drug test policy,” Carter said. “You have to do a pre-employment. You have to random drug test your employees. You have to do a post-accident test. Then, if someone were to test positive, they’re terminated immediately and referred to a Substance Abuse Professional counselor.” In addition to her experience in the gas and oil industry, Carter can tap the experience she gained as a business owner. She and her husband have operated Carter Concrete Inc. That company, however, soon will be shut down. “My husband just took a job with an oil company that came to the area, so we’re going to be closing down the concrete company.” Water Analysis Laboratory Analytical Anyone wishing to confer withSupport Carter Services can reach her by calling 740-826-4709.


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Dix Communications - Gas & Oil

October 2012 Edition


OhiO Well Activity

by the numbers

uticA shAle

MArcellus shAle 9

Wells Permitted


Wells Drilling


Wells Drilled


Wells Producing

16 total horizontal Permits

203 Wells Permitted 40 Wells Drilling 92 Wells Drilled 32 Wells Producing 3 inactive lost hole 5 375 total horizontal Permits

Data as of 9/9/12 Source: Ohio Department of Natural resources

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Gas & Oil

October 2012 Edition - Dix Communications

Need information? Here’s help Searching for information on the oil and natural gas industry in Ohio? There are a number of professional groups and government agencies that can assist:

Granville. The mailing address is P.O. Box 187, Granville, OH 43023-0535. Telephone number is 740-587-0410. Fax number is 740-587-0446.

OHiO Oil & GAs AssOCiATiOn The Ohio Oil & Gas Association (OOGA) is a trade association boasting a membership of more than 2,600 involved in all aspects of the exploration, production and development of crude oil and natural gas resources within Ohio. The group’s website at includes information regarding the oil and natural gas industry, market information and job postings and opportunities within the industry. OOGA offices are located at 1718 Columbus Road SW, Granville. The mailing address is P.O. Box 535, Granville, OH 43023-0535. Telephone number is 740-587-0444.

sOuTHEAsT OHiO Oil AnD GAs AssOCiATiOn The Southeastern Ohio Oil and Gas Association is a nonprofit organization of local producers and businesses involved in the natural gas and oil industry. Formed in 1978 by local gas/oil producers, SOOGA addresses issues unique to the midOhio river valley. Membership has steadily grown from the 64 companies participating in the inaugural organizational meeting. The website at lists information about upcoming events and services offered through SOOGA. The mailing address for the SOOGA office is P.O. Box 136, Reno, OH 45773. Telephone number is 740-374-3203. Fax number is 740-374-2840

OHiO Oil & GAs EnErGy EDuCATiOn prOGrAm The Ohio Oil & Gas Energy Education Program, formed in 1998, provides a number of programs throughout the state focusing primarily on teacher workshops, scholarships, education, firefighter training, industry and workforce training, research, landowner and guest speaker programs. The group’s website at includes information regarding the oil and natural gas industry, job postings, educational programs, land leasing and firefighter training programs. OOGA offices are located at 1718 Columbus Road SW,


OHiO FArm burEAu FEDErATiOn Among the stated goals of the Ohio Farm Bureau Federation is to protect property rights of owners and to assist property owners with gas and oil issues. The website at lists resources and news items. The Ohio Farm Bureau Federation office is located on the sixth floor at 280 N. High St., Columbus, OH 43215. Telephone number is 614-249-2400. Fax number is 614-249-2200 OHiO sHAlE EnErGy Ohio Shale Energy is an online database of businesses offering goods and services critical to the natural gas and oil industry. The website at includes a searchable map listing such businesses and information regarding upcoming industry conferences and other events. Email addresses is

EnErGy in DEpTH, THE OHiO prOjECT Formed by the Independent Petroleum Association of America (IPAA) three years ago, Energy In Depth (EID) is a “research, education and public outreach campaign focused on getting the facts out about the promise and potential of responsibly developing America’s onshore energy resource base — especially abundant sources of oil and natural gas from shale and other “tight” reservoirs across the country. It’s an effort that benefits directly from the support, guidance and technical insight of a broad segment of America’s oil and natural gas industry, led in Washington by IPAA, but directed on the ground by our many affiliates — and IPAA’s more than 6,000 members — in the states,” reads the group’s website at www. The local contact is Shawn Bennett, email is The local office is located at 1919 Maple Road, Cambridge. Telephone number is 614-738-6220.

Continued on pg. 44

Dix Communications - Gas & Oil

October 2012 Edition






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Gas & Oil

October 2012 Edition - Dix Communications

Keeping the Water Flowing Judie Perkowski Dix Communications


oe Williams always knew he would have his own business in the oil and gas industry, it

was just a matter of time. Born and raised in West Virginia where he still resides with his wife, Annie, and their two children, Williams credits his father as the person who has had the biggest influence on his life, personally and professionally. “I began working with my dad when I was nine years old. By the time I was 12 years old, I was operating a bulldozer,” said Williams. “My dad’s work ethic inspired me.” Williams gave a brief synopsis of how his business was started, sold and restarted, all within five years. In 2005, at the age of 27, and after many years of on-thejob training working at job sites with his father and ‘almost graduating’ from Glenville State College in West Virginia with a degree in environmental studies, Williams bought a bulldozer for $30,000 — from his dad — and a GMC truck for $15,000. Williams Excavating was born with the opening of an office in West Virginia. Two days later he went to work in the oil fields for Columbia Natural Resources. “I was working in the Marcellus shale region in West Virginia primarily reconditioning and reconstructing well pads. We were given an opportunity to perform water transfer services for the first hydraulic fracturing in West Virginia owned by Cheasapeake Energy Corp. At the time I never even heard of hydraulic fracturing. Chesapeake asked me to build two water

Submitted Photo Joe Williams, owner/operator of Williams Excavating and Water Transfer and Williams Trucking with offices in Bloomingdale, Ohio and Belington, W.Va.

ponds for the fracking process. We used 25 trucks a day to haul water to fill the ponds. Then, rig pipelines and pumps to pump 100 barrels of water a minute at the well site. We reconditioned six wells,” he said. “We gained invaluable experience transferring the water where rugged mountains dominated the terrain and the elevation varied up to 2,500 feet ... where many out-of-state frack teams were reluctant to go. “In 2007, I sold 80 percent of Williams Excavating assets and its 12 employees to Chesapeake, who changed the company’s name to Great Plains Oil Field Rentals. I worked for

“I began working with my dad when I was nine years old. By the time I was 12 years old, I was operating a bulldozer. My dad’s work ethic inspired me.”

Great Plains, on contract, for a couple of years, left there, traveled to Pennsylvania where I performed water transfer services for every well owned by Chesapeake. “In 2010 I restarted Williams Excavating and Water Transfer. Pumping water has always been our thing ... We are quicker and better at providing water service. We can do things other companies can’t do, like pump 100 barrels of water per minute over any distance or elevation ... We’re used to it,” he said. “We’re used to it because I firmly believe in hiring local people. “We never failed to deliver water at rate to a frack job. The key is developing employees for this kind of operation. They are what makes Williams Excavating LLC today. “We provide equipment, trucking, steel and poly pipeline fabrication, as well as pipe and pump rentals, and we have competent, certified operators. We specialize in all aspects of light to heavy industry. In addition to oil field services such as excavation, water transfer and taking rigs down, the company offers crew/staffing, trucking and hauling, equipment rental and repair, welding and impounding. “I recently (2011) opened an office in Bloomingdale, Ohio. All this gives us a strategic advantage from an economic standpoint to deliver the best services at the lowest prices possible. And, we can work year-round. We invented a way to keep drilling fluids operational in extreme cold weather. We designed a

Continued on pg. 42

Dix Communications - Gas & Oil

October 2012 Edition


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Gas & Oil

October 2012 Edition - Dix Communications

Numbers don’t lie; explosion in industry


ata collected from the Ohio Department of Natural Resources for natural gas and oil activity in Ohio has shown a virtual increase in four stages of the process, from the number of wells with permits, number of wells in the process of being drilled, number of wells with drilling completed, number of wells producing and percent of activity in the each Judie Perkowski Dix Communications of 21 counties in relation to the total number of well sites. To date, 21 counties in northeastern and southeastern Ohio have been discovered by the gas and oil industry because they are setting on top of the Marcellus and/or Utica shale formations. Both are important geologic formations because they hold large reserves of natural gas. Experts say the Marcellus in Ohio covers a very thin strip along its eastern border. But, the state is positioned to cash in on the Utica’s bounty of “wet gas,” which covers about at least half of the state. Wet gas contains the components for both natural gas and oil production. In June of 2012, when the first GAS&OIL magazine was published, 19 counties had 237 wells (combined) in at least one stage of the process. Listed by drilling activity and the number of well sites in each county in June: Carroll, 78; Columbiana, 34; Jefferson, 25; Monroe, 21; Harrison, 12; Belmont, 10; Stark, 10; Mahoning, 9; Guernsey, 7; Noble, 7; Portage, 7; Tuscarawas, 5; Muskingum, 3; Coshocton, 2; Trumbull, 2;

“WATER” from pg. 40 unit to heat water on site ... We have always fracked all winter long. “The most important thing is to take care of your employees, they are the key to everything,” he said. Williams’ concern about the environment and his “practice what you preach” attitude, helped Gulfport Energy Corp. secure the water rights from the Muskingum Watershed Conservancy District for drilling operations in Belmont County. Gulfport applied for the rights, but Williams’ proven methods and techniques for extracting the water, which was reviewed by multiple political and Ohio Department of Natural Resources officials during the operation, landed the agreement. Currently, Williams and his crew of 45 employees are working at a well site in Belmont County and at an abandoned mine reclamation project — Guardian of the West Fork Reservoir — in West Virginia. Williams said he contracts to do at least one environmental project every year, at cost, because “it’s the right thing to do.”

Knox, 2; to Geauga, Ashland, Medina and Wayne with one site for a total of 237 wells in various stages of the process. As of Sept. 9, 2012, the number of counties increased to 21 with the addition of Holmes and Wayne counties (with no previous well sites) bringing the total number of well sites in at least one stage of activity to 375, a 58 percent increase since the magazine’s first issue. Current number of wells and percent (increase or decrease) in each of the 21 counties from June 2012 to Sept. 9, 2012: Carroll, 139 well sites, 78 percent increase Columbiana, 51 well sites, 50 percent increase Harrison, 33 well sites, 175 percent increase Jefferson, 28 well sites, 12 percent increase Guernsey, 24 well sites, 242 percent increase Monroe, 17 well sites, 23 percent decrease Stark, 13 well sites, 30 percent increase Mahoning, 13 well sites, 44 percent increase Noble, 12 well sites, 71 percent increase Belmont, 12 well sites, no increase or decrease Portage, 10 well sites, 42 percent increase Tuscarawas, 7 well sites, 40 percent increase Coshocton, 5 well sites, 150 percent increase Muskingum, 3 well sites, no increase or decrease Trumbull, 2 well sites, no increase or decrease Knox, 2 well sites, no increase or decrease Geauga, 1 well site, 100 percent increase (no previous activity) Ashland, 1 well site, 100 percent increase (no previous activity) Medina, 1 well site, 100 percent increase (no previous activity) Wayne, 1 well site, 100 percent increase (no previous activity)

Upcoming Events in Gas & Oil Industry • Oil and Gas Business Development Seminar III, 7:30 a.m. to 4:00 p.m. on Oct. 9, at Courtyard by Marriott, in Canton, (endorsed by Ohio Oil and Gas Association). • 2012 Oilfield Expo, Dec. 4-6 at Cleveland’s I-X Center. The Oil and Gas Association will present the all-indoor oilfield expo, expected to be an exciting opportunity to network with the oil and gas industry. • 2012 Annual Holiday Membership Reception, 3:30 to 6:30 p.m. on Dec. 18 at Cherry Valley Lodge, 2299 Cherry Valley Road, Newark. This celebration is a time for Ohio Oil and Gas Association members to socialize with one another.

Dix Communications - Gas & Oil

October 2012 Edition


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Gas & Oil

October 2012 Edition - Dix Communications

Teen opens mobile shower for grimy ND oil workers James MacPherson Associated Press


ighteen-year-old Evan Jensen could smell opportunity in the air in North Dakota’s booming oil patch — in the form of his own B.O. The South Dakota teen drove north to find work after graduating from high school and discovered that finding a place to shower in an area with a severe housing shortage is both tough and expensive. So he converted a 53-foot semitrailer into a five-stall shower facility that has become a successful business venture. Oil workers and others needing a wash pay $10 per shower. The trailer also includes office and laundry facilities. A 6,000-gallon tanker provides fresh water and collects the greywater. Jensen covered the $15,000 startup cost with money he earned trapping muskrats. He recently listed his business for sale on Craigslist at $95,000.

“information” from pg. 38 America’s Natural Gas Alliance America’s Natural Gas Alliance is an alliance of nearly three dozen natural gas and oil producers. The ANGA website at provides industry information, both technical as well as market and financial. The ANGA office is located at 701 Eighth Street, NW, Suite 800, Washington, DC 20001. Telephone number is 202-7892642. Email address is Ohio Department of Natural Resources The homepage of the Ohio Department of Natural Resources website at has a link to “Shale Development.” The website provides information on several relevant natural gas/oil industry topics, including hydraulic fracturing, waste water injection wells, leasing and environmental issues. Contact information for regional offices is also available on the website. The gas and oil offices of the ODNR are located at 2045 Morse Road, Building F, Columbus OH 43229-6693. Telephone number is 614-265-6922. Office of the Ohio Consumer’s Counsel The Office of the Ohio Consumer’s Counsel is a residential utility consumer advocate that serves as a resource for residential consumers with questions, concerns or complaints regarding their utility services, including natural gas providers. Among the categories under the “Natural Gas” menu on the website homepage at is a list of several natural gas companies operating in Ohio. Several have links to company websites are listed. The office is located at 10 W. Broad St., Columbus. The mailing address is 10 W. Broad St., Columbus, OH 43215. Telephone numbers are 614-466-8574 or 877-742-5622 toll free.

AP Photo/James MacPherson Evan Jensen stands beside his mobile shower business, Better Showers, near Alexander, N.D. Jensen raised money for the facility, which caters largely to workers in North Dakota’s oil patch, by trapping muskrats and hopes profits from the business will pay for his college tuition.

Additive Add•i•tive noun : Any substance or combination of substances or constituents that is combined with a base fluid (typically water) and proppant (typically sand) to create a “fracturing fluid,” which is then pumped into the formation.

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October 2012 Ohio Gas & Oil Magazine  

The October 2012 issue of an Ohio gas and oil magazine published by Dix Communications.

October 2012 Ohio Gas & Oil Magazine  

The October 2012 issue of an Ohio gas and oil magazine published by Dix Communications.