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Ohio octobER 2012 • www.ohiogo.com OCTOBER 2013 • www.ohiogo.com

A FREE FREE monthly MONTHLY PublicAtion PUBLICATION

Hazardous water not an issue U.S. Chamber weighs in on shale Safety training ‘top of mind’

DRILLING

DOWN


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Dix Communications - Gas & Oil

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October 2013 Edition

1

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2

Gas & Oil

October 2013 Edition - Dix Communications

Table of Contents 4

Minerva Company Broadens Scope

7

Safety is No. 1 Concern Bobby Warren / Dix Communications

8

Testing the Water

10

The Ohio Legacy Trust Act

12

ODNR Chief Speaks at guernsey Energy Coalition Meeting

14

Carroll County Energy Project

16

U.S. Chamber Weighs in on Energy

19

Firefighting Equipment is State of the Art

20

Chesapeake Helps Fund Atwood Bridge

22

Noble-Co. Chamber gets Drilling Update

26

Does Santa Clause Look Like Jed Clampett

28

Business is Cleaning Up

31

Keeping an Eye on Oil

32

Buckeye Career Center Preparing Students

34

Jobs For Ohioans

37

OMEGA Helps Find AEP funds for feasibility study

38

Cambridge Officials Question Airport Classification

40

Drilling Down - Part 3 of 4 part Series

Mallory Evans / Dix Communications

Alison Stewart / Dix Communications Frank McClure / Attorney

Kimberly Lewis / Dix Communications Judie Perkowski / Dix Communications

Kimberly Lewis / Dix Communications Georgette Huff / Dix Communications Holly Bilyeu / Dix Communications

Don Gadd / Landman

Judie Perkowski / Dix Communications

Marc Kovac / Dix Capital Bureau Niki Wolfe / Dix Communications

Stacy Matthews / Dix Communications

Laurie Huffman / Dix Communications

Southern Zone Edition

Andrew S. Dix Northern/ Southern Zone ASDix@dixcom.com G.C. Dix II Southern Zone GCDixII@dixcom.com David Dix Northern Zone DEDix@dixcom.com

Executive Editors Ray Booth Southern Zone RBooth@dixcom.com Rob Todor Southern Zone RTodor@dixcom.com Lance White Northern Zone LWhite@dixcom.com Roger DiPaolo Northern Zone RDipaolo@dixcom.com

Regional Editors Cathryn Stanley Southern Zone CStanley@dixcom.com Niki Wolfe Southern Zone NWolfe@dixcom.com Judie Perkowski Southern Zone JPerkowski@dixcom.com Kimberly Lewis Northern Zone KLewis@dixcom.com Erica Peterson Northern Zone EPeterson@dixcom.com

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


Dix Communications - Gas & Oil

www.OhioGO.com

Kim Brenning Southern Zone Sales Cambridge, Ohio Office KBrenning@dixcom.com 740-439-3531

October 2013 Edition

Ohio

Peggy Murgatroyd Southern Zone Sales Barnesville and Newcomerstown, Ohio Offices PMurgatroyd@dixcom.com 740-425-1912 Barnesville 740-498-7117 Newcomerstown Jeff Kaplan Southern Zone Sales Alliance & Minerva, Ohio Office JKaplan@dixcom.com 330-821-1200 Rhonda Geer Northern Zone Sales Wooster & Holmes, Ohio Offices RGeer@dixcom.com 330-287-1653 Harry Newman Northern Zone Sales Kent, Ohio Offices HNewman@dixcom.com 330-298-2002 Janice Wyatt National Major Accounts Sales Manager JWyatt@dixcom.com 330-541-9450 Jeff Pezzano VP Advertising Sales & Marketing Kent Ohio Office JPezzano@dixcom.com 330-541-9455

44

Upcoming Events

46

Small Producers Keeping Pace

48

A Shale Renaissance

51

Solid Safety Record

57

It’s a Shale-a-Bration

58

Facing Fines

60

An Inside Look at Working Oil Rig Site

64

Safety First Priority of Buckeye STEPS

68

What is Eminent Domain

74

Success Lies in the ‘Pickle’

78

Safety Training for business and Industry Offered

Alison Stewart / Dix communication

Robert L. Bradley, Jr. / Institute for Energy Research

Judie Perkowski / Dix Communications

Judie Perkowski / Dix Communications

Goldman & Braunstein, LLP / Attorneys Marc Kovac / Dix Capital Bureau

COVERAGE AREA OTTAWA

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octobER 2012 • www.ohiogo.com OCTOBER 2013 • www.ohiogo.com

A FREE FREE monthly MONTHLY PublicAtion PUBLICATION

Hazardous water not an issue U.S. Chamber weighs in on shale Safety training ‘top of mind’

DRILLING

DOWN

Cover Photo: Ray Booth / Dix Communications A pipeline stretches through the countryside of southern Tuscarawas County

3


4

Gas & Oil

October 2013 Edition - Dix Communications

Southern Zone Edition

Mallory Evans Dix Communications

M

INERVA —For more than 40 years, American Road Machinery has made municipal vacuum trucks and snow plows in its Minerva shop. Two years ago, the company expanded to meet the growing needs of the gas and oil industry. Company President Nick Ballas said the foray into gas and oil began with vacuum tankers and winch trucks. American Road Machinery also makes frac tanks and spill response trailers. The shop can outfit trailers with full width tail rollers, aluminum tool boxes, steel deck plating and riser blocks, exterior winch controls, air lines and trailer hook-ups. Customers were buying tankers and trucks, so Ballas said expanding the business into parts and services was the logical next step. Ballas opened a retail location called Tough Equipment in June. Truck parts including fluids, brakes, filters, lighting, engine parts, seats, ratchets and tie down straps, wire connectors and wheels are available. Oil field equipment is also sold through Tough Equipment, including frac and vac hoses, hammer unions, cam lock fittings, valves and pipe fittings, winch cables and custom hydraulic hoses among other things. Service and delivery are available 24 hours a day, seven days a week. Ballas is pleasantly surprised with the response to the 24/7 service. He said the company is able to react to 90 percent of the needs immediately, and the remaining 10 percent are able to be completed in a short amount of time. In addition to vacuum tank and winch truck repairs, American Road Machinery will rebuild vacuum pumps. American Road Machinery has a dedicated sales person who travels each day, spreading the word about the company’s offerings. “A lot of the oil field guys came here from somewhere else and they didn’t know where to go locally,” Ballas said. American Road Machinery is picking up customers from

Louisiana, Texas and Oklahoma. Some of these companies buy the Minerva-made products and send them off to other areas. Ballas said there are still growth opportunities for American Road Machinery within the gas and oil field. “I really think we’re just at the tip of this. Every day there is something new coming into the area,” he said. “I think we’ve got a really good thing going.” Ballas has seen the economic effects of the oil and gas industry on the area, especially in Carroll County. American Road Machinery’s location in Minerva is prime for meeting the needs of area oil fields. Traditionally, American Road Machinery mounted dump truck bodies. Now they are starting to mount dumps on oil and gas company trucks. The company picks up custom fabrication jobs too. Moving into gas and oil required a large investment on American Road Machinery’s part, but Ballas believes the gas and oil industry has many years left in the area. The company just added eight new employees for a total of 40. They moved to two shifts in September. Employees are reacting positively to the company’s expanding scope. “These guys can do anything. There’s not a whole lot we can’t do with a piece of steel,” Ballas said. “Our philosophy is if it goes on a truck or is related to a truck, it makes sense for us.” American Road Machinery’s snow plow and vacuum truck business is still thriving as well. Ballas said recently new plow designs were added, increasing sales. The plows are most often sold to Kentucky, Arkansas, Virginia and New York City. American Road Machinery is located at 401 Bridge St. in Minerva. The Tough Equipment retail location is at 15595 Lincoln St. S.E. For more information, call 330-868-7724 or visit www.americanroadmachinery.com


Dix Communications - Gas & Oil

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Gas & Oil

Southern Zone Edition

October 2013 Edition - Dix Communications

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Dix Communications - Gas & Oil

October 2013 Edition

7

Bobby Warren Dix Communications

W

OOSTER — Flames shot up around an oil tank on the afternoon of Sept. 8 as crude oil burned, filling the skies with a plume of black smoke and heating up the immediate area off of Millborne Road. Forty firefighters from 15 departments from around Ohio were at the scene, not due to any emergency, but to receive training in handling gas and oil fires at the Wayne County Fire & Rescue Regional Training Facility. The Ohio Oil & Gas Energy Education Program has a training site on the grounds of the facility, and it was leading another session on Sept. 8 and 9. OOGEEP Executive Director Rhonda Reda said there are so few oil and gas emergencies, despite 65,000 wells in Ohio, that firefighters do not receive training for dealing with these kinds of fires. “The organization feels obligated to provide the training, and this was the first of its kind in the country,” Reda said, adding several other states have modeled their programs after the one developed here. People like Mark Lytle of Buckeye Oil Producing Co., Jim Smail of JR Smail Inc., Ron Grosjean of Ken Miller Supply and Bill Bennett of Cedar Valley Energy were instrumental in pushing for funding and instruction. The result has been a 12year relationship with the regional training facility, and OOGEEP trained its 1,000th firefighter this year. It costs about $750 to train a firefighter, and the oil and gas producers in the state pay for it, Reda said. Fire departments from seven other states have sent personnel here to train, Reda said. However, this year, they have had to turn away those from outside of the Buckeye State because of the demand at home. The organization is running more training sessions: Six a year, up from four. The number of participants is kept at 40 to maintain a ratio of one instructor for every five firefighters. Instructors will also lead several class-only training sessions. “This is why Ohio is considered a leader in safety and education,” Reda said. During the two-day sessions, the first day is spent in the classroom, and the second one is spent outdoors working with “the props,” including a crude oil tank, and putting out live fires. Steve Waltman, training facility director, delayed Sunday afternoon’s exercises after the wind shifted during lunch. The equipment had been set up based on the wind patterns, but it

Firefighers take part in a training exercise.

had to be moved to react to the new flow of air. Waltman said he would rather slow things down than risk the safety of the firefighters. “Safety is our No. 1 concern,” Waltman said. Once the crude oil was ignited, teams of firefighters approached the blaze and hit it with water, at times retreating because of the intense smoke or to allow another team to train. While a foam product will knock down the fire in three to four minutes, using the water allows all of the trainees to gain experience dealing with the fire, said Eric Smith, OOGEEP board chairman. It also allows them to see how the fire moves. OOGEEP’s lead instructor, Charlie Dixon, said the facility is an outdoor behavior lab, where participants learn the principles behind flammable liquid fires, especially crude oil. They get to see the vapors burning, the cooling effects of water and the extinguishing effects of the foam, Dixon said. “Guys get a lot of good experience” at the training facility, instructor Mike “Pineapple” Raymond said. “The guys get to see fire; it’s the only way to get a good education.” “There is nowhere else to get this kind of training in the state,” instructor Dallas Terrell said. Matt Moran of Canaan Township Fire Department and Andrew King of the Chippewa Township Fire Department were among the local firefighters who attended the training session. Both appreciated being a part of it. “I learned a lot,” King said. “They kept it realistic.” “It’s hot,” Moran added. Several times he and his colleagues had to retreat because of the smoke. “This hits home,” King said. “We have a lot of wells in Wayne County,” Moran said. Both said they would recommend the training to others bwarren@the-daily-record.com.


8

Gas & Oil

Southern Zone Edition

October 2013 Edition - Dix Communications

Alison Stewart Dix Communications

R

AVENNA — The Portage County Health Department is approaching its busiest season for well water sampling. According to state sanitarian and geologist Jack Madved, the arrival of fracking in Portage County has caused local well owners to inquire about testing for hazardous materials that could be in their water. “It has been a little bit of a learning curve for us,” said Madved. “Well owners have been contacting us the past couple of years concerned about fracking and how it affects their water. We provide them with information about fracking and its risks as well as a water sampling service.” According to Madved, no hazardous minerals have been found in Portage County’s well water as a result of fracking. He recommends people get a water sample taken before fracking begins in order to get a baseline of what minerals are in their water. A tier test can be provided for those concerned about their water quality. These tests were put together by the Ohio Department of Natural Resources, Ohio Department of Health and Ohio EPA. A tier one test samples the water for the most common minerals found in Ohio water including sodium, magnesium, potassium, etc. A tier two test samples the water for those minerals and then some including calcium, iron, and the level of hardness in the water. The most efficient and most costly test, the tier three, samples water for all the minerals from the first two tiers plus BTEX and methane. Overall, the number of calls for testing has dropped, he said. “About two years ago I was receiving about 15 to 16 calls for water samples a day,” said Madved. “Things have dwindled down quite a bit. Some weeks we’ll have four or five tests a week and then other weeks we won’t have any.” The Summit County Health Department’s Water Quality Programs Coordinator Tom LaPlante said drilling in Summit has not been as big of an issue as it has been in Portage. “Summit County hasn’t seen a lot of horizontal hydraulic fracking,” said LaPlante. “Therefore, we do not need to spend a lot of resources on this issue.”

LaPlante said the occasional concerned water well owner will call, but it is rare, with approximately half a dozen phone calls a year. The Summit County Health Department offers the same tier samples as Portage County, but so far no water tests have been requested. “Normally when people think they are having an issue with fracking it ends up being iron, dissolved methane or another organic material caused by having an older well,” said LaPlante. “We advise them to have their well physically cleaned to

“Normally when people think they are having an issue with fracking it ends up being iron, dissolved methane or another organic material caused by having an older well.” – Tom LaPlante remove sulfer and iron reducing bacteria.” According to LaPlante, the total cost for the land owner comes to $531 for those receiving a tier three test. The tier one and tier two tests are less, at between $300 to $400. “The majority of our time is spent explaining the process of fracking and its risks,” said LaPlante. According to LaPlante, along with water quality, there is also a potential risk to air quality. Sam Rubens, director of air quality for the Akron Regional Air Quality Management Agency, said drilling has the potential to create ozone, but a case of this has not yet been seen in Ohio. “Diesel emissions from the trucks and drilling equipment and natural gas can combine and create ozone in the air,” he said Rubens. “Any extra ozone in this area is going to be a problem. We have not seen these ozone elevations here. It is just a potential problem.” Rubens handles air quality matters in the Summit, Portage and Medina counties. astewart@recordpub.com


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Dix Communications - Gas & Oil

October 2013 Edition

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9


10

Gas & Oil

October 2013 Edition - Dix Communications

Southern Zone Edition

Frank McClure Attorney

W

hen talking about Estate Planning & Asset Protection Planning in Ohio in 2013, if we didn’t talk a little bit about the new Ohio Legacy Trust Act, we would be missing one of the biggest changes in the law for a long time. This act took effect in the State of Ohio on March 27, 2013. This Act provides for a new type of Trust, which allows an unprecedented level of asset protection in Ohio. Unlike a normal revocable trust, the assets owned by an Ohio Legacy Trust are in most cases shielded from creditors. With this act, Ohio has joined a minority of states in allowing these types of asset protection trusts. An Ohio Legacy Trust is available to not only Ohio residents, but also the residents of any state as long as the trust is created and administered in accordance with all of the provisions of the Ohio Legacy Trust Act. The Ohio Legacy Trust is an irrevocable trust, meaning once the trust has been formed the Grantor no longer has the power to terminate the trust. Is this a problem? Not really, because the Grantor has already determined when and how they wanted to have the trust terminate when they had the trust drawn up. The Grantor can still maintain many other powers and rights with regards to the trust. Here are a few of the powers the grantor can retain: • the Grantor can be the sole beneficiary of the Trust or a joint beneficiary; • the Grantor can provide guidance and direction concerning Trust investments; • the Grantor can continue to live in a residence held by the Trust; • the Grantor can veto distributions from the Trust; • the Grantor can remove and replace the Trustee; • the Grantor can direct other distributions of trust assets to person’s other than the Grantor, Grantor’s creditors, or Grantor’s Estate. These powers allow a Grantor a large amount of control over the Ohio Legacy Trust, but also allow a level of asset protection not found in a standard revocable trust. The Ohio Legacy Trust also has limitations in regards to the Trustee. First, the Grantor cannot be the Trustee of the Legacy Trust. Second, the Trustee must be an Ohio Trustee. There-

fore the Trustee can be either an individual who resides within Ohio, including the Spouse of the Grantor or any other family member or an Ohio corporate Trustee. These restrictions are necessary, to properly protect the trust assets, but the Ohio Legacy Trust Act still allows a great deal of flexibility in naming a Trustee. As with any type of estate planning, it is important to plan ahead in creating an Ohio Legacy Trust. This Trust is subject to a Fraudulent Transfer Statute in Ohio and cannot be used for the purpose of defrauding or avoiding known creditors. This statute comes into effect in all asset protection planning. In forming the trust, the Grantor must sign an affidavit, under

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Dix Communications - Gas & Oil

October 2013 Edition

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12

Gas & Oil

October 2013 Edition - Dix Communications

Southern Zone Edition

ODNR chief speaks at Guernsey Energy Coalition meeting Judie Perkowski Dix Communications

C

AMBRIDGE -- If you are familiar with Fort Recovery, Ohio, then you certainly know that among its 1,430 residents, the head honcho at the Ohio Department of Natural Resources calls the historic village home. James Zehringer, director of the ODNR, was guest speaker at the Guernsey Energy Coalition meeting Thursday morning at the Southgate Hotel. “I was born and raised in Fort Recovery, in Mercer County, where I married my high school sweetheart and still reside today,” he said. “I am a fish and poultry farmer.” Zehringer, former director of the Ohio Department of Agriculture, served in Ohio Gov. John Kasich’s cabinet since 2011, in the Ohio House of Representatives from 2007 to 2011, and as a Mercer County commissioner from 2002 to 2007. Zehringer was promoted to the director position in 2011, just about the time that word of a possible gas and oil boom was brought to the attention of the president of the Cambridge Area Chamber of Commerce, Jo Sexton, who wasted not a minute in organizing the first Coalition meeting in July of 2011. By Sexton’s calculations, “this is the 27th consecutive meeting of the Coalition.” Zehringer spoke about the growing shale development in eastern Ohio and ODNR’s role in regulating the oil and gas industry. “There were no regulations for the industry until the 1960s. Our biggest role was telling farmers to get legal advice to protect their property. We were educating them by telling them to get an attorney,” he said. “Since then the ODNR has evolved into the chief regulatory agency for the gas and oil industry in Ohio.” “Ohio is blessed with many natural resources, our state parks, in addition to our many lakes and rivers, the wildlife, and abundance of coal, natural gas and oil,” he said. “This is a very exciting time for the gas and oil industry in southeastern Ohio. There are more than 49,000 gas and oil wells in Ohio, in production. Guernsey County is now fifth in the number of wells drilled, behind Carroll, Harrison, Columbiana and Noble counties. “The ODNR oversees every facet of the drilling operation, from the beginning exploratory phase to the completion and reclamation of the property. It is our duty to regulate shale development responsibly,” Zehringer said. “This is a very fast and innovating industry.”

Cambridge Area Chamber of Commerce President Jo Sexton, l, welcomed James Zehringer, r, and Richard Simmers, c, both from the Ohio Department of Natural Resources, to the monthly Guernsey Energy Coalition meeting Thursday at the Southgate Hotel. Zehringer is director of the ODNR; Simmers is chief of the Oil and Gas Operations Division.

“To be successful the ODNR revisited lessons learned: “There must be a clear and transparent regulations program, and a competent and well trained staff to enforce the regulations ... regulations which are based on science, not emotion, not politics, just based on scientific facts. “Based on production and predictions, we believe the Utica [shale formation] is the real deal, and will produce a staggering amount of energy for Ohio.” Zehringer introduced Rick Simmers, chief of the division of oil and gas operations, and a 28-year veteran at the ODNR. Simmers explained drilling process regulations, which he said at the most stringent in the country. “There will be a change to the current reporting system regarding horizontal wells. Instead of companies reporting production annually, they will have to report production quarterly, beginning in January 2014,” said Simmers. “We are also looking to increase our field staff. Jobs are posted on the ODNR website.” Other changes drillers are asking for an increase to the number of wells allowed on a four-acre pad, from 12 to 14. Simmers also commented on current midstream operations (such as pipelines), which transport the gas and/or oil to processing, fractionation and “cracker” plants where they move the gas/oil components to their respective markets. “The industry will develop in this area because of the location of natural gas. Oil can be transported by truck or rail, but natural gas can only be delivered by way of a pipeline. “We are still in the early stages, in fact, the very beginning, of shale development in the Utica. In 2015, the drilling will be in earnest,” said Simmers. The passage of Senate Bill 315, is a compilation of proposals


Dix Communications - Gas & Oil

www.OhioGO.com

ODNR chief speaks at Guernsey Energy Coalition meeting

October 2013 Edition

ocay owned since

that created a broad energy policy for Ohio. The relevant provisions related to the Ohio oil and gas industry can be broken down into three distinct categories: direct oil and gas policy, midstream proposals, and underground injection control program proposals. However, the most discussed change to oil and gas law has been the disclosure of hydraulic fracturing fluids and how they will be disposed. With SB 315, Ohio now has the most stringent regulations for disclosure of hydraulic fracturing fluids in the nation. jperkowski@daily-jeff.com

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14

Gas & Oil

October 2013 Edition - Dix Communications

Southern Zone Edition

CARROLL COUNTY ENERGY PROJECT Kimberly Lewis Dix Communications

C

ARROLLTON — The Ohio Power Siting Board and Carroll County Energy held a public information meeting on Aug. 22 at Carrollton High School with approximately 35 people in attendance. Residents had an opportunity to speak with representatives of Carroll County Energy, as well as representatives of the Ohio Power Siting Board, to learn about the proposed natural-gas electric-generation plant to be built in Carroll County. This information session is the first step of the process before the Ohio Power Siting Board approves a certificate allowing the plant to be constructed. The OPSB reviews applications for the construction of major utility facilities, including electric power plants and transmission lines. It is comprised of seven voting members, and chaired by the chairman of the Public Utilities Commission of Ohio. Carroll County Energy announced plans in early July to build a 700-megawatt natural-gas electric power plant in Carroll County. The plant would supply enough electricity for 700,000 homes. During the session, it was noted that some environmental studies have been completed and more are underway. Tetra Tech is conducting environmental studies, as well as community issues to be addressed. According to a press release, Carroll County Energy has determined the direct economic benefit of $655.2 million and 500 new construction jobs from direct spending on construction; indirect economic benefit of $62.5 million and 156 new jobs from purchase of local supplies and services; and induced economic benefit of $127.4 million and 450 new jobs from workers spending wages locally. According to the company’s press release, the project is an $800 million capital investment. Winslow said previously it will take two to three years to build the plant. The proposed facility is on 77 acres of land that is a part of a 233-acre farm. The site is approximately one-half mile east of state Route 9 and two-and-a-half miles north of Carrollton. It is adjacent to Carroll County Community Improvement Corporation’s land that is designated for industrial and commercial development. The facility will employ new state-of-the-art General Electric natural-gas and steam turbine technology in a configuration referred to as “combined-cycle.” This configuration captures waste heat and generates additional electricity using a steam turbine. According to a press release, the facility will produce 50 percent of the carbon dioxide and less than 10 percent of the sulfur dioxide and nitrogen

that a conventional coal-fired power plant produces to generate the same electricity. Winslow said the project is in the process of completing environmental studies and will be applying for and obtaining the necessary permits. He expects Carroll County Energy to submit its application to the Ohio Power Siting Board by the end of summer. The application will be reviewed by the Ohio Power Siting Board and includes an application review, an investigation, public notices, public hearing and other steps before the application will be approved. The entire process could take nine months. Additional information about any future open houses will be available at www.carrollcountyenergy.com.

Dix Communications Photo / Kimberly Lewis Mike Settenneri, part of the legal team for Carroll County Energy, (right) speaks to residents about the application process the company is beginning with the Ohio Power Siting Board.

Dix Communications Photo / Kimberly Lewis Jonathan Winslow, project manager for Carroll County Energy, LLC, points to the site of the proposed natural-gas electric-generation plant will be built. He and other employees of Carroll County Energy met with residents during a information meeting hosted by the Ohio Power Siting Board.


Dix Communications - Gas & Oil

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October 2013 Edition

15

CARROLL COUNTY ENERGY PROJECT

Dix Communications Photo / Kimberly Lewis Carroll County Energy displayed an aerial map that would show where the proposed plant will be built in relation to state Route 9. The 77-acre site will use 17 acres for the generating facility.

Dix Communications Photo / Kimberly Lewis Sean and Janet Smith (from left) ask Matt Butler, spokesperson with the Ohio Siting Board, questions about Carroll County Energy’s proposed power plant and the process that the company’s application goes through at the information meeting held Aug. 22 at Carrollton High School.

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16

Gas & Oil

Southern Zone Edition

October 2013 Edition - Dix Communications

U.S. Chamber weighs in on energy development W Judie Perkowski Dix Communications

ASHINGTON — It was a rare chance to interview someone who not only has access to, but actually was involved in developing the energy policies and initiatives for the legislative, executive and regulatory branches of federal and state governments. Christopher Guith, vice president for policy at the U.S. Chamber of Commerce’s Institute for 21st Century Energy, was a chief representative of the administration during the drafting and debate of the Energy Policy Act of 2005. He was very forthcoming about questions concentrating on the oil bonanza in eastern Ohio. During the interview, he was asked if there are any foreseeable additions or revisions to the Energy Act considering it was enacted almost 15 years ago, based on information gathered in the late 1990s, and that even five years ago Ohio’s 32 Appalachian counties could not even imagine what is going on today in regards to this tremendous oil boom. Guith posits that “the chances are slim and none ... No one knows for sure how this will play out, it is speculative at best. And, it is up to the states to handle all the regulatory issues, they are the best to do that, they have local expertise. “Our goal is to try and present policy that would not inhibit the ‘golden goose.’ Ohio is on a great trajectory, especially relating to the job market. We don’t want policy changes to prevent the goose from laying more [golden] eggs.” In regards to Gov. Kasich’s push for an increase in the severance tax on oil, natural gas and condensate from horizontal drilling, Guith said, “it is not our [the federal government’s] mandate to get involved in state politics, but a comprehensive three-part study: America’s New Energy Future: The Unconventional Oil and Gas Revolution, shows that shale will create millions of jobs and trillions in investments over the coming

decades.” Phase I of the study quantifies the national impacts of shale, while Phase II details the state by state job and revenue impacts. In September 2013, Phase III was released, which goes even further by looking at the impact on manufacturing and other downstream activities. The third phase of the study quantifies the economic impact of reduced shale energy production as a result of a more restrictive regulatory environment. “The problem is, we need to appreciate that Ohio is not the only game in town. Producers have many places they can go to in this country. They will go to where they can get the best deal and the best operating environment,” he said. As Ohio enters into midstream operations, pipelines in general and the Bluegrass Pipeline in particular, have begun to generate concerns from the public. The proposed 1,100-mile pipeline begins in northeast Pennsylvania and travels through Ohio to an existing pipeline in Kentucky to the Gulf Coast. Targeted in-service date is middle to late 2015. “Interstate pipelines are governed by significant federal law and licensed for interstate transportation with the Federal Energy Regulatory Commission,” said Guith. “The Pipeline and Hazardous Material Safety Agency sets the national construction safety standards. “Pipelines are a way to move natural gas liquids ... You can transport oil by truck or rail, but natural gas liquids can only be transported by pipelines. Pipelines will send the product to fractionation and storage facilities and eventually to other pipelines and markets. FERC is responsible for regulating interstate transportation rates and services for natural gas pipelines, the construction of natural gas pipelines, and overseeing related environmen-

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October 2013 Edition

17

U.S. Chamber weighs in on energy development tal matters. FERC is also responsible for regulating interstate transportation rates and services of crude oil and petroleum products. With all that the development of Utica shale has to offer, the best thing it can bring to small towns like Cambridge are jobs. “It is an employees’ market. We don’t have the workforce to accommodate the industry. While more women have entered the workforce in the last five years, gas and oil is still a male driven industry, because of the physical labor. Their best opportunity is in the support and skilled sector — such as geology and petroleum engineering. “The shale development in Ohio will benefit small towns by the investment made by oil and gas companies, which creates new businesses with a new supply of products,” said Guith. “We are on the verge of a manufacturing renaissance across the country, state by state the numbers are there, because of upstream, midstream and downstream operations. It’s a domino effect ... one phase effects the next, and so on and so on. “Numbers based on an IHS study concluded the period, which began in 2012, to 2020, will witness the greatest job growth. By 2025, the gas and oil industry could employ more than 3.9 million people nationwide. Raising taxes would constrain those numbers. If that happens (higher taxes), by 2015, there will be 1.4 million less jobs created than without government intervention.

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18

Gas & Oil

Southern Zone Edition

October 2013 Edition - Dix Communications

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Dix Communications - Gas & Oil

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October 2013 Edition

19

Firefighting equipment is

‘state of the art’

Kimberly Lewis Dix Communications

C

ARROLLTON — When the Carroll County volunteer firefighters attended a course on oilfield emergencies through the Ohio Oil and Gas Energy Education Program, they talked to OOGEEP about a need for specialized equipment to fight oil-related fires. OOGEEP Safety and Workforce Administrator Charlie Dixon presented the Carroll County Volunteer Fire Department with Class B foam equipment for flammable fuels. The equipment is valued at $1,500 and was underwritten by Chesapeake Energy. The equipment included a foam aspirator tube and nozzle. Dixon noted OOGEEP has trained 1,000 firefighters through its “Responding to Oilfield Emergencies” two-day training course, the first such training course in the nation. He noted OOGEEP has invested $2 million in firefighter training, funded by the Ohio Oil and Gas Producers Association over the past 12 years. Through the generosity of the oil-and-gas producers in Ohio through the Ohio Oil and Gas Producers Association, OOGEEP is able to address needs it sees and assists fire departments in receiving equipment needed to fight oil-and-gas fires, said Dixon. Carroll County VFD Fire Chief Jack Swinehart noted that 70 percent of the department, 10 firefighters, has received the training. “I would like to say a big thank you to OOGEEP and Chesapeake Energy for their continued support to our needs,” said Swinehart. “Obviously, all the fire departments in this area help provide first responders to incidents and help mitigate emergencies.” “I would also like to say that without this free program, our firefighters would not get this training,” he said. “The average cost for training like this is $800 per person and this free program helps with the expense of training.” Swinehart and Dixon stressed that this is about “collabora-

Members of the Carroll County Volunteer Fire Department undergo training for oil-and-gas fires through the Ohio Oil and Gas Energy Education Program’s training courses.

tive efforts” of OOGEEP, the oil-and-gas industries and local fire departments working together to keep the communities safe. OOGEEP offered the “Responding to Oilfield Emergencies” on Sept. 7-8 and will again on Oct. 12-13. The class is offered free for firefighters. OOGEEP developed a comprehensive training manual Responding to Oilfield Emergencies and permanent training facility to support local emergency responders, firefighters, police, and state agencies,by enabling them to understand and implement effective emergency response practices at typical oilfield drilling sites and production sites. For more information about OOGEEP’s training classes, see oogeep.org.

Dix Communications Photo / Kimberly Lewis Showing the new fire-fighting equipment designed for oil and gas fires received by the Carroll County Volunteer Fire Department are (from left) Fire Chief Jack Swinehart; firefighters Jeremy McLain, Phil Baker, Nathan Elson and Mark Spencer; with Ohio Oil and Gas Energy Education Program’s Safety and Workforce Administrator Charlie Dixon.


20

Gas & Oil

Beach City

Southern Zone Edition

October 2013 Edition - Dix Communications

Chesapeake helps fund Atwood Bridge rehab

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ELLROY — With a simple ribbon-cutting ceremony, the Atwood Lake Bridge is back in service. The original structure, located on Avalon Road, CR 20, northeast of Dellroy, was built in 1974, as a steel beam bridge on capped pile foundations. The bridge underwent substructure rehabilitation in 2010 that resulted in a load rating of 65 percent of the state legal load limit. Inspections performed over the past several months concluded the bridge could not withstand repeated runs by fully-loaded water tankers and “fracking boxcars” used in well construction. Rather than send its drivers on lengthy detours, officials of Chesapeake Energy, one of the primary users of the bridge, offered to donate half the cost to rebuild the bridge and bring its rating to 100 percent of the state legal load limit. U.S. Bridge of Cambridge rebuilt the bridge, using galvanized steel beams on the existing foundation. Construction began on July 22 and was completed on Aug. 15, three weeks ahead of schedule. The total cost was $175,932. Chesapeake Energy donated $87,966; the remainder was paid from the county engineer’s road fund. Attending the opening ceremony were Jeff Beck, Jake Holland and Bob Whipp from Chesapeake Energy, Nate Wertrick from U.S. Bridge, County Engineer Brian Wise, GIS/Permit Administrator Chris Kiehl and Carroll County Commissioners Jeff Ohler and Tom Wheaton.

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Dix Communications Photo Participating in the ribbon-cutting ceremony on Aug. 21 to officially reopen the Atwood Lake Bridge on CR20 are (left to right) Jake Holland, Chesapeake Energy; Nate Wertrick, U.S. Bridge; Jeff Beck and Bob Whipp, Chesapeake Energy; Carroll County Engineer Brian Wise; GIS/ Permit Administrator Chris Kiehl; and Carroll County commissioners Tom Wheaton and Jeff Ohler.


Dix Communications - Gas & Oil

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October 2013 Edition

21

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22

Gas & Oil

Southern Zone Edition

October 2013 Edition - Dix Communications

NOBLE-CO. CHAMBER GETS DRILLING UPDATE Holly Bilyeu Dix Communications

C

ALDWELL — With the oil and gas industry on the rise, to say that southeastern Ohio has seen an increase in economic growth would be an understatement. A current update about the industry was given during the Noble County Chamber of Commerce’s Lunch while You Learn with guest speaker Shawn Bennett, Director of Energy in Depth-Ohio. “I think we started seeing a lot happening about two years ago,” said Bennett. “It’s all interesting because no one truly believed it was happening. The good news is it’s happening, and the great news is that it’s happening in our area.” According to Bennett, about a year ago, Noble County was seventh in permits obtained, now they are fourth in the state. Carroll County leads the state in permits obtained with 327 permits. Harrison County follows at 130. Currently, Noble County has 64 permits with Guernsey trailing at 51 permits. Monroe County is moving up the list, as they have both Marcellus and Utica wells. “Some of the most rural areas are having the greatest results,” said Bennett. Oil and gas companies that are currently serving Noble County include Antero, Rex, and Consol. Antero has the largest producing well in the county with a daily production of 5,852 of BOE (barrels of oil equivalent). Rex has a well in the county producing daily 3,111 BOE, Consol is beginning their work in the county with only two wells, but the company is on track to drill 11 more in the county. Statistics show that the unemployment rate has been positively affected by the oil and gas industry. The unemployment rate in Noble County went from 11.8 percent in 2011 down to 9.2 percent in August 2012. Likewise in Guernsey County, the rate went from 9.7 percent in 2011 down to 7.4 percent in August 2012. “Not all jobs are in the industry, but as a result of the industry moving in,” said Bennett. Additionally, the sales tax has increased in each county. In Noble County, the sales tax increased by 20 percent, while in Guernsey County, the sales tax increased by 12 percent. “These numbers are reflect before royalties are kicking in,” said Bennett. “Land owners get leasing money, and they’re putting it back in the community.” MarkWest Energy is building Seneca I and Seneca II gas processing plants with reportedly Seneca III and Seneca IV in the process.

Seneca I near Summerfield will be a cryogenic gas processing facility capable of handling 200 million cubic feet per day. Seneca II in Noble County is being planned similarly and could open in late 2013. The ATEX Pipeline and Bluegrass Pipeline companies have both moved to the area. The pipeline infrastructure expects to have built up to 140 miles by the end of 2014. More information about Energy in Depth-Ohio can be found on their website, www.energyindepth.org/Ohio. They are also on Facebook, twitter, and youtube. The next Lunch while You Learn workshop will be held Thursday, Oct. 17 from 11:30 a.m. to 1 p.m. at the Community Center in Caldwell. hollyb@daily-jeff.com

Executive Director of the Noble County Chamber of Commerce Jill McCartney is shown with Shawn Bennett, Director of Energy in DepthOhio, speaker for September’s Lunch while You Learn held at the Caldwell Community Center.

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Gas & Oil

Southern Zone Edition

October 2013 Edition - Dix Communications

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Data as of 9/21/13 Source: Ohio Department of Natural Resources

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26

Gas & Oil

Southern Zone Edition

October 2013 Edition - Dix Communications

Does Santa Claus look like Jed Clampett? I Don Gadd Landman

t has been a couple of months since I set down to pen an article. Upon a wife imposed vacation of no computer, cell phone or doing any work, I am now happy to return to the rat race with new vision and a much calmer blood pressure. This business is like being the mayor. Once people know they can ask questions and get an answer (whether they like it or not), you can spend a lot of your time answering. One of the most asked questions of the last several months has been whether it is advantageous to sell the mineral rights under your land? Truth is: Do you often go to Vegas and play the roulette wheel? You stand a better chance of hitting it big there as predicting whether the oil and gas under your property is worth what is being offered. You can narrow that down a bit if they are currently drilling multiple wells in your area. In event of that, you are probably in an area known as the wet gas window. This fairway is the new sexy as the investor groups like to call it. By all accounts it should eventually deliver more gas and oil than we ever thought possible in the United States. As most of these wells only have what is known as a toe frac (clear out at the end of the horizontal reach) and have many more fracs to be done, there will be a lot more activity once the gathering lines and plants are in place. But, make no mistake; what is anticipated is quite large. So, I asked the question to several geologists associated with the large companies now operating in this area or having knowledge of what is going on. The short of the long is that a one half percent interest in one of these units is worth approximately $500,000 over the life of the well. To break that down into sixth grade English so guys like me could understand it would be the following:

My land comprising 100 acres was leased for a bonus of $4000 per acre ($400,000 to me) and the landowner’s share of the royalty was 20%. A well was drilled and I was in one of the units (contributing 64 acres for the purpose of easy math). The unit size was 640 acres. According to this I have 10% of the unit. Say the well is worth the barrel equivalent of 3,000 bbls per day. That is oil and gas calculated over to what it would amount to if it was oil only. These 3,000 bbls at (easy math) $100/bbl are worth $300,000 a day for 100% of the production or $9,000,000 a month. The land owner gets 20% of this or $1,800,000 per month, but you only own 10% of that which will pay you only $180,000 per month which amounts to $2,200,000 per year. I used these figures because there are wells out there expected to make at least that much money. Some a whole lot less. However, you now have your $400,000 in your pocket and the potential for another pay day in five years, plus there are people knocking your door down saying they will pay $5000 an acre for your oil and gas rights ($500,000 for the 100 acres). What should you do? Again, I ask. Do you play roulette? What if the wells drilled in your area are stinkers? What if you end up outside the wet window? What if it looks like your property may not be drilled or production starts for 5 to 7 years? What if I am sitting on the mother lode and am looking forward to my own tv show called the Byesville Billionaire? It all depends on what you want. Is the money that is assured good enough? Do you plan on living there? Are the kids going to take over the farm? Does a seven figure bank account appeal to you? Yes, Virginia, there is a Santa Claus and he kind of looks like Jed Clampett. Where is Jethro with his massive brain and sixth grade education when you need him?

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28

Gas & Oil

October 2013 Edition - Dix Communications

Judie Perkowski Dix Communicatons

C

AMBRIDGE — Demonstrating a MASHH unit, a new, innovative process for cleaning workers’ clothing that has been subjected to potentially hazardous silica dust, Donald “Donny” Beaver, CEO of the Pennsylvaniabased HalenHardy, said his business is “cleaning up.” Literally. Beaver was a guest speaker at the August Buckeye STEPS Network meeting at the Willett Pratt Training Center on the Zane State College campus. “Our primary concern is worker hygiene,” said Beaver. “This is the first demonstration of our MASHH unit at a public forum.” Beaver and his crew explained how fast and efficient the MASHH unit works. Denny Middleton, of HalenHardy product development, was dressed in a work uniform with an OSHA approved helmet and breathing apparatus, and covered with talcum powder to simulate silica dust. He stepped into the unit, turn on the controls and in less than 30 seconds walked out 10 times cleaner than any currently used method, such as a compressed air hose or a hand-held vacuuming device. The MASHH clothes cleaning system consists of a mobile cleaning booth, an air reservoir, air spray manifold and exhaust ventilation system. Compared to the vacuuming and compressed air hose techniques, which were hard for the individual to erase all signs of the dust, the air spray manifold process was the most effective for removing dust from the individual’s clothing and equipment. According to a study performed in 2005 by the Pittsburgh Research Laboratory, The MASHH cleaning process doesn’t just blow dust from a workers’clothing. The dust is extracted by a vacuum system that draws the dust into a contained unit and is removed through a “baghouse” dust collector. This newly designed method is relatively inexpensive and can be easily installed at any operation to allow workers to clean their clothing without contaminating the worker, the work environment, or co-workers. Dust samples taken inside the respirator of test personnel performing the clothes cleaning process, has shown very minimal, to no respirable dust. Since the air exhausted by the dust collector causes the booth to be under negative pressure, no measurable quantities of dust were ever measured escaping from the booth to contaminate the work environment or other workers. The Mobile Air Shower by HalenHardy, “helps protect workers and their families from respirable silica dust” said Beaver. “We spent last year studying the danger to employees

Southern Zone Edition

by air-borne silica dust while working in various jobs in the gas and oil industry, especially involving sand-moving operations. Silica is the primary component of sand. Multi-stage fracking technologies involve pumping large volumes of water and sand into the well at a very high pressure to fracture the shale. The sand (proppant) allows the fractures to stay open so oil and gas can flow to the surface.” The National Institute for Occupational Safety and Health identified exposure to airborne silica as a health hazard to workers conducting some hydraulic fracturing operations. And, while sand is an important and necessary element in drilling operations, it is also the most difficult to contain during certain stages of the drilling operation, primarily at the sand delivery site. “A silica dust cloud is visible when sand is transferred from a sand mover to a moving belt. But even after the dust cloud is gone, it’s not over,” said Beaver. The Occupational Safety and Health Administration recently proposed long-awaited rules to limit crystalline silica, a move it said would prevent nearly 700 deaths a year by reducing exposure to these very small particles that can cause lung cancer and other diseases. OSHA also reported that engineers are working on new designs and retrofits, such as replacing transfer belts with screw augers on sand movers. Moving sand through an auger system rather than a belt will help contain the sand and reduce dust release. “We are focused on being a bird dog to help protect workers who are exposed to harmful substances,” said Beaver. “We are serving the gas/oil industry by cleaning up messes or preventing them from occurring.” Also in attendance at the meeting was Sen. Troy Balderson (R-20th District), who along with Sen. Bill Beagle, have been at the forefront of the creation and passage of Senate Bill 1: OhioMeansJobs Workforce Development Revolving Loan Program, which will become effective Oct. 10. Balderson spoke briefly about the importance of business leaders speaking up about what they are looking for in regards to employees. “What skills or training do you expect when you advertise for employment,” said Balderson. “This program has been established to assist with job growth and advancement through training and retraining,” said Balderson. “The director of the development, who has yet to be appointed, will administer the program and award funds to any institution that will use those funds to award loans to participants in a workforce training program approved by the director. “I need business to reach out and tell learning institutions


www.OhioGO.com

Standing in front of the MASHH unit, l to r: Denny Middleton, product development for HalenHardy; Donald Beaver, CEO of HalenHardy; Josh Beaver, Sen. Troy Balderson, Joe Greco, president of Buckeye STEPS; Troy Beaver, Branden Guida. Not pictured Alex Moore, HalenHardy vice president of sales. MASHH is an acronym for Mobile Air Shower by HalenHardy..

Denny Middleton, product development manager at HalenHardy of Pennsylvania, stands in the MASHH unit dressed in typical work clothes and covered with talc to simulate how the unit vacuums off silica at a work site. Middleton explained to attendees at the Buckeye STEPS Network meeting how the MASHH unit works. The demonstration was performed at the Willett-Pratt Training Center in Cambridge.

Dix Communications - Gas & Oil

October 2013 Edition

29

what you need. I need you to engage in conversation with them. Talk to educators. High school kids need to know where their education will take them. “This program is also available to displaced workers, those who need new or additional training to be active in the workplace.” Balderson said funding for the $100 million program — specifically for worker development — will come from casino taxes. “I’m not asking for businesses to pay for the program, I just want them to get involved. I want them to say “yes,” we will hire people with these particular skills ... We can sponsor an apprenticeship. This program is open to all areas of business, and all educational institutions who want to participate.” Jeff Daniels of Ohio State University, said it is important to engage children at an early age to begin thinking about the future. He suggests schools and businesses encourage students in fourth and fifth grades to enroll in STEM classes. STEM is an acronym for Science, Technology, Engineering and Math. Daniels also noted an upcoming event related to the Workforce Development Revolving Loan Program to bring students, business and education together to find out what kind of employees businesses want, need, and how the program works. The event is a student-industry networking event, sponsored by the Buckeye Shale Energy Organization. It will be at the Ohio Union on the OSU campus on Oct. 31. Details will be announced. The Buckeye Service, Transmission, Exploration, Production Safety Network, commonly known as Buckeye STEPS Network (BSN), promotes safety, health and environmental improvement in the exploration and production of oil and gas in Ohio. BSN fosters a work environment that relies upon open communication and trust. jperkowski@daily-jeff.com


30

Gas & Oil

Southern Zone Edition

October 2013 Edition - Dix Communications

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October 2013 Edition

31

Marc Kovac Dix Capital Bureau

C

OLUMBUS — A watchdog group is questioning effectiveness the state’s lobbying disclosures, following an influx of campaign contributions from oil and gas interests over the past two years. Common Cause Ohio says existing lobbyist reports do not reflect what firms are really spending to shape state policy, particularly laws related to horizontal hydraulic fracturing, or fracking. “People living with fracking in their communities wonder why the state is moving so quickly, and a big reason is the lobbying blitz by the industry,” Common Cause’s Catherine Turcer, said in a released statement. “A full and fair debate about this issue depends on giving people a better look at how and why fracking interests have been so successful in Ohio.” Among other findings, Common Cause noted that oil and gas industry lobbyists reported $43,000 in spending in Ohio in 2011 and ‘12, compared to $12.7 million reported in Pennsylvania, where they are required to report how much compensation they receive from clients. Common Cause also found that fracking interests pumped upward of $1.8 million into lawmaker and political party campaign coffers. Rep. Dave Hall (R-Millersburg), who serves as chairman of the House agriculture committee, outpaced other office-holders, with $164,665 in campaign contributions. House Speaker Bill Batchelder (R-Medina) was second, with $137,893, followed by Gov. John Kasich with $101,065. Top donors included Ariel Corp. ($246,810), the Ohio Oil and Gas Association ($244,187) and Chesapeake Energy ($196,550). “... Why would anyone be giving in this significant way?” Turcer said. “How does it impact policy?” But Tom Stewart, executive vice president of the Ohio Oil and Gas Association, said it should come as no surprise that his trade group is supporting campaigns of office-holders and candidates that support the industry. “We obey every lobbying law out there,” he said. “We fully report on time, always on time. We report all of our activity that we do politically where dollars are spent, as required by law.” He added, “We engage in the political process. That is our right. We speak to the political process. That is our right. And we stand proudly behind it.” Hall said campaign contributions do not sway how he votes

on issues or what bills he moves through the agriculture committee. “I vote on, is a bill a sound bill? Does it move Ohio forward? Is it creating jobs?” he said. “You look at some of the things we’ve done. I allow everyone to have a say. I have that reputation as a chairman to do that. (Campaign contributions) are not swaying me one way or the other.” Marc Kovac is the Dix Capital Bureau Chief. Email him at mkovac@dixcom.com or on Twitter at OhioCapitalBlog.

“We speak to the political process. That is our right. And we stand proudly behind it.” – Tom Stewart


32

Gas & Oil

Southern Zone Edition

October 2013 Edition - Dix Communications

Buckeye Career Center preparing students

for oil and gas industry careers Niki Wolfe Dix Communications

N

EW PHILADELPHIA — Buckeye Career Center in New Philadelphia is taking a pro-active approach in its ability to train local residents for the oil and gas industry. Adult Education Director Erin VanFossen said the center is offering SafeLandUSA courses to companies, classes and area residents — all in preparation for residents to get jobs in the oil and gas industry. The 8-10 hour course is essential for any employee new to the oil and gas, and petrochem industry that will consistently be working in plant, dockside, onshore or offshore facilities. This is required for any employee of a company that does exploration, production, drilling and/or refining work for any of the leading operators. “You have to have SafeLandUSA (class) under your belt, even before you step onto the job site,” VanFossen said. There are five Buckeye Career Center-certified trainers for this course: Roger Cooper, Tom Hackenbracht, John Oliver, Dale Swaldo and Dan Varner. There is a charge for the course to be taught (either on-site

or at the career center) and mileage may also be charged depending on where the class will be located. VanFossen said some high schools have offered this class to their students in preparation of the oil and gas industry coming to the area. She said they believed it would be beneficial for their students so they had an instructor come to the class. Class size can consist of 10 to 25 students. In terms of a high school class, the course can be completed in 2 to 5 days, in order to accommodate a school schedule. In all, they have taught approximately 50 SafeLandUSA classes and VanFossen said they’ve had a 100 percent passage rate. Buckeye Career Center also offers other classes related to the oil and gas industry including, Heavy Equipment Operator, Roustabout, General and Construction - OSHA (1 and 30 hours), Globally Harmonized System (GHS), and Job Safety Analysis (JSA). However, VanFossen said many of the courses, both high school student and adult, available at Buckeye Career Center are related to the oil and gas industry. She said even the culinary arts program or auto body repair program courses can be related back to the oil and gas industry. She said they are preparing their students for tomorrow’s careers. To learn more or to schedule a class, call VanFossen at 330308-5720 or 1-800-227-1665; or visit www.BuckeyeCareerCenter.org.

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34

Gas & Oil

October 2013 Edition - Dix Communications

Southern Zone Edition

Stacy Mathews Dix Communications

C

AMBRIDGE -- In a state-wide effort to increase awareness and accessibility to Ohio’s workforce system, the Guernsey County Opportunity Center will soon have a new moniker - OhioMeansJobs - Guernsey County. \The idea behind the change is to create a single brand to easily identify each of the centers. Currently, each of Ohio’s workforce centers has a unique name and a unique website. Now, each center will be referred to as OhioMeansJobs Centers and will be identified by the county. The product will be the same across the county. Job seekers will be able to locate jobs in any Ohio county, making the search for employment much easier. OhioMeansJobs - Guernsey County will continue to be an excellent resource to both businesses and job seekers. Housed in the Department of Jobs and Family Services building at 324 Highland Ave. in Cambridge, the center has combined with several agencies to provide assistance to the community. Veterans’ Services, Youth Services, the Bureau of Vocational Rehabilitation and the employment agency are all located here. The core services provided include resume development, interview tips, workshops, career and skill assessments and access to jobs. All services are free. The Resource Room is the main hub of the center. Here, job seekers will find a fullyequipped computer lab. Twelve computers and thirteen laptops, all with internet access, are available to search for jobs, fill out online applications, create resumes and cover letters, explore community and educational resources and connect with employers. A fax machine, telephone, printer and copier are also available. Available jobs are posted and updated weekly, providing the most up to date information to those seeking employment. In addition to these valuable resources, six employment and training specialists are employed and on hand at the center to assist the job seeker. The specialists can help find jobs, fill out applications, create resumes and type cover letters. Once the job seeker has created a resume, the center will save it and store it in a database. The resume can be retrieved any time and changes can be made as needed. The center is a very valuable asset to our community. In addition to helping people find jobs, businesses can partner with the center to find employees. “We want to keep business in Guernsey County,” said man-

ager Sue Sikora. “And, we want those businesses to hire locals.” One way the center tries to achieve this is by building strong employees. Assistance for education is available for “in demand” fields such as medical, oil and gas and truck drivers. Other assistance is available and the staff at the center work hard at finding any help they can for job seekers looking to further their education and move up in their field. Another way to keep companies hiring locally is by the center guaranteeing their employees. This means that the center will offer wage reimbursement to new employees who have come through the center.

“We want to keep business in Guernsey County... and, we want those businesses to hire locals.” – Sue Sikora “We want employers to know that we believe in the people we have helped and worked with and have been hired. It is our way of guaranteeing or offering security to businesses who trust us to hire for them,” Sikora explained. Companies can also use the center for their current employees. Sikora added, “Say, for instance, a new software program is needed at a business. We will provide on the job training to the businesses employees so they can learn the new software without losing valuable time.” There are many, many ways that the one-stop centers can and do benefit the community. Job seekers, employers, students, veterans, disabled citizens, and employees looking to upgrade can all find the help and information they need. If you are interested in learning how the center can help you or if you are ready to find a job, there is an orientation offered every Monday through Thursday at 10 a.m. The OhioMeansJobs - Guernsey County center is located at 324 Highland Avenue, in the center of the Department of Jobs and Family Services building. The hours are Monday through Friday, 7:30 a.m. - 4 p.m. The phone number is 432-1952.


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Energy Banking Team

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35

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36

Gas & Oil

Southern Zone Edition

October 2013 Edition - Dix Communications

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OMEGA helps find AEP

funds for feasability study C

Paul Prater, second from right, manager of community affairs for American Electric Power, presents a $10,000 check to l to r, Del George, Guernsey County Engineer; Skip Gardner, Guernsey County Commissioner; and Tom Laughman, Guernsey County Commissioner.

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AMBRIDGE — To meet the demands of the shale development industry as well as other businesses, local officials said Guernsey County needs to expand the availability of suitable property for business development. County officials have identified the area along the US 40 East Corridor, between Corduroy Road and SR 265, as the county’s primary target area for development. Water, gas, power, broadband, and easy access to US 40, I-77, and I-70 are readily available along this corridor. Fifteen businesses already exist along this corridor; however, business expansion and sustainable development is hindered by lack of a public wastewater collection and treatment system. To meet this need Guernsey County plans to conduct a feasibility study to assess the most cost effective solution for extending wastewater services to this corridor. The estimated cost to complete this study is approximately $19,000. Del George, Guernsey County Engineer, contacted the Ohio Mid-Eastern Governments Association (OMEGA) to see what potential funding sources may be available to assist with the cost of this study. OMEGA identified that AEP’s Local Economic Advancement Program (LEAP) may be an option and worked with George to prepare and submit the grant application for $10,000. On August 20, AEP notified the county that the grant application was approved. The county engineer has also obtained commitments from the existing businesses along this corridor to pay for the remaining cost of this feasibility study. According to George, this is an excellent example of the public and private sectors working together to develop a more sustainable community. Guernsey County is very grateful for the grant from AEP and the contributions from the local businesses which demonstrate the support of the County’s efforts to develop this corridor.


38

Gas & Oil

Southern Zone Edition

October 2013 Edition - Dix Communications

Cambridge officials question airport classification

C

AMBRIDGE -- The results of the Ohio Department of Transportation Office of Aviation’s recent study of the Cambridge Municipal Airport did not sit well with some local officials. Held Sept. 13 at the Zane State College Cambridge branch location, the primary objective of the Ohio Airports Focus Study was to share how Ohio’s general aviation airports are being classified and the types of aviation system coverage being provided today, and to seek input on: Whether the classification system accurately depicts what’s happening at your airport of interest; whether Ohio has appropriate general aviation airport coverage; if Ohio has the right types of aviation facilities and services in the right places; what improvements should be considered in the future; and which compliance factors should be considered when evaluating the airport system. Local officials on hand included Airport Manager Terry Losego, Steve Potoczak of Delta Airport Consultants, Cambridge Area Regional Airport Authority Board of Trustees member Tom Stemmer, accomplished pilot Carl LaRue, CambridgeGuernsey County Community Improvement Corporation/ Guernsey County Port Authority Executive Director Norm Blanchard and Jeannette Wierzbicki of Ohio Mid-Eastern Governments Association. The study classified the Ohio airports in one of four levels. The study classified the Cambridge Municipal Airport as a “Level 3” airport. This classification of airports serves light, twin-engine and single-engine aircraft flying for business, pleasure and training. Its purpose is to fulfill nearly all the needs of piston-powered aircraft. Jet-powered aircraft can use these airports, but the primary focus is on meeting the facilities and services that support piston-powered aircraft. However, Losego and Potoczak reportedly had several objections as to the criteria of the study for the value of the airport to the community. Objection points were: • The value of the airport was based on the pilot surveys submitted based on the dollar amount they spent in the community, commonly lunch • No consideration was given to the corporate jets that are

doing business in the area • No consideration was given to the oil and gas boom bringing more than a billion dollars to the area and corporate jets arriving and departing on a regular basis • Points were deducted for not having a maintenance facility on site; however, the Cambridge airport has as many as five men available to perform on-site repairs. The Airport Authority and elected officials are encouraged to access the Airport Focus Study online at www.AirportsFocusStudy.ohio.gov and fill out the form to object to the classification of the airport.

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Dix Communications - Gas & Oil

October 2013 Edition

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40

Gas & Oil

Southern Zone Edition

October 2013 Edition - Dix Communications

Drilling DOWN

Laurie Huffman Dix Communications

T

he gas and oil industry works with government and civic leaders to adhere to laws and regulations regarding safety, not only for crews working on the sites, but for communities. Any time a community sees the big trucks and rigs coming in for the first time, there is understandable concern raised for the protection of the environment. Keeping water supplies clean and usable, and what the gas and oil companies plan to do with the drilling fluids, are always topics of concern at public meetings. A recent town hall meeting, held in Salem, located in Columbiana County in Eastern Ohio, consisted of the typical questions that gas and oil officials are accustomed to hearing. Several featured speakers discussed injection wells and addressed concerns that were raised by the audience. Some in attendance had questions about the longevity of the cement casings used to contain the wastewater underground; others wanted to know how much of this fluid was being placed underground, in light of Ohio recently accepting wastewater from Pennsylvania. According to a recent article in The Columbus Dispatch, more than 14.2 million barrels of fracking fluids and related waste were pumped into 190 disposal wells, called Class II undergound injection wells, in 2012. That was a 12 percent increase from the previous year, according to the newspaper. Information provided by environmentalhealthproject.

org indicated the fracking fluids can contain additives that would be harmful if they were ingested by humans through underground water sources. The list of these chemicals include acid to remove cement and drilling mud; biocide, which reduces growth of organisms; gelling agent to increase fluid viscosity; iron control; buffer, to adjust the ph balance; scale inhibitor, to prevent carbonates and sulfates; clay stabilizer, to prevent migration of the clays; corrosion inhibitor, to reduce rust formation; and propant, to prop open the fractures; among a number of others. Currently, the Ohio Department of Natural Resources, along with many scientists and the gas and oil industry, are working in partnership to study the effects of these underground wells on water tables and other natural resources. Much of the funding for these studies come from federal grants. “The more information you have, the better and easier it is to make the decisions that have to be made,” said Mark Bruce, a spokesman for the ODNR, to The Dispatch. A 2011 study by researchers and extension educators at Penn State’s College of Agricultural Sciences found that at over 200 drinking water wells near the Marcellus Shale in 20 Pennsylvania counties, little statistically significant evidence of contamination from fracking was found. The study, conducted from February 2010 to July 11, found methane in about a quarter of the water wells before any drilling occurred. The study found little to no additional methane after drilling. The results of the study were published in dailyitem.com.

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October 2013 Edition

41

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Southern Zone Edition

October 2013 Edition - Dix Communications

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October 2013 Edition

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44

Gas & Oil

Southern Zone Edition

October 2013 Edition - Dix Communications

Upcoming Events OCTOBER

12-13 OCTOBER

18

OOGEEP Fall Firefighter Training, at Wayne County Fire and Rescue Training Facility, Applecreek, Ohio. Visit http:// coldsparkdev.com/oogeep/wp-content/ uploads/2013/02/2013-Firefighter-Brochure_Interactive.pdf for more information.

NE Ohio Safety Conference & Expo, Trumbull Career & Technical Center, Warren. Visit http://www.cityofyoungstownoh.org/ for more information.

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OCTOBER

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Utica Summit 2014, Canton Memorial Civic Center. For more information visit http://www.uticasummit.com.

Appalachian Gas Conference, Omni William Penn Hotel, Pittsburgh, Pa. Visit http://www.platts.com/ConferenceDetail/2013/pc333/index for more information.

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Dix Communications - Gas & Oil

October 2013 Edition

45

Delivering Excellence Since 1934

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46

Gas & Oil

Southern Zone Edition

October 2013 Edition - Dix Communications

Alison Stewart Dix Communications

T

WINSBURG — William Kinney, 61, president and owner of Twinsburg-based Summit Petroleum, began the small, independent gas operation in 1984. But he has worked in the industry since 1976, when he graduated from Kent State University with a bachelor’s degree in industrial engineering. He started his career at Park Ohio Energy. “I quit the day my son was born, Sept. 10, 1984,” said Kinney, of Hudson. Park Ohio Energy had wanted him to make a special trip to New York during the birth of his son, he said. That’s when he decided to start his own business.

Summit Petroleum drills, owns and operates crude oil and natural gas wells in Ohio, Pennsylvania and New York. The majority of Kinney’s sandstone oil and gas wells are located in Hudson, Twinsburg, and the Geauga county area. “In 1984, there were a number of small producers like me in this part of Ohio,” said Kinney. “The number just keeps dwindling. Only one or two others are up here besides me. We’re a shrinking breed.” But Kinney is determined to stay in business. Summit Petroleum has joined in projects with larger operators coming into the area. “Having partnerships with other companies has given us in-

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terest exposure and knowledge of shale development,” said Kinney. His goal is to see Summit Petroleum continue on as a small independent oil company and hopes to one day see his sons come into the business. Though Ohio’s future in the business is not looking bright in Northeast Ohio, Kinney said, the southern area of the state has a large future in drilling. “This is a rugged technical business which has a lot of appeal,” said Kinney. His favorite aspect of his work is the thrill he gets from creating something. “I like to make stuff happen,” said Kinney. “It’s rewarding for the land owners because they get revenue and free gas. It’s rewarding for the employees that get to keep going. Also, the wells themselves are so different and interesting.” Kinney is not opposed to fracking and believes it is not a dangerous issue. According to Kinney, there have been more than 10,000 horizontal wells completed without environmental damage. “Nothing bad has happened as a result of hydraulic fracking,” he said. “I have personally drilled over 1,000 wells. People hear the word ‘fracking’ and think of a fracture of a broken window, but that’s not what it is. Fracking is more like cutting a piece of cake rather than breaking a window.” Fracking has created a lot of wealth for drilling areas, Kin-

Dix Communications - Gas & Oil

October 2013 Edition

47

ney said. “If there was something wrong about fracking then we wouldn’t do it,” he said. “We give people a reason to move back or stay in states with low economies by doing what we do. I’m proud to say I’m part of that.” Kinney is past president of both OOGA and of the OOGA Executive Committee and currently serves as chairman of the OOGA/Dominion East Ohio Gas Project Review Committee. He was presented with the Oilfield Patriot Award, an annual honor bestowed by the trade association. The award was established in 2006 and recognizes individuals who have made significant contributions to protect, promote and advance the common interests of those engaged in all aspects of Ohio’s crude oil and natural gas industry. Kinney said winning this award is the “high water mark” of his career. “This industry works because I enjoy doing it,” said Kinney. “It is fun, thrilling, and I work with a great group of people. It has never once felt like work. We provide something that the community and country need. I feel pretty good about what I do.” astewart@recordpub.com

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Gas & Oil

October 2013 Edition - Dix Communications

Southern Zone Edition

A SHALE RENAISSANCE W

ASHINGTON — A new study illustrates the farreaching economic contributions of unconventional oil and natural gas development, particularly in the manufacturing sector, says API Vice President for Policy and Economic Analysis Kyle Isakower. “The oil and natural gas revolution has created millions of jobs, and this study shows the broader economic benefits are being felt by households and manufacturers across the U.S.,” said Isakower. “Oil and natural gas have been pillars of the recovery, and other sectors are now coming back stronger and faster because of affordable and abundant energy and raw materials -- despite economic headwinds. As a result, Americans have more income, more buying power, and a more competitive economy.” The study by IHS Global Insight, “America’s New Energy Future: The Unconventional Oil and Gas Revolution and the Economy – Volume 3: A Manufacturing Renaissance,” expands on IHS’s earlier research into unconventional oil and natural gas -- resources generally unlocked from shale deposits and other tight formations using hydraulic fracturing and horizontal drilling. The latest report outlines the full chain of economic activity resulting from unconventional development, from drilling and refining to petrochemical supplies and manufacturing. According the study, the full unconventional value chain supported 2.1 million jobs last year, and is projected to support 3.9 million jobs by 2025, including 515,000 manufacturing jobs. “Unconventional energy has been a remarkable economic stimulus with implications far beyond oil and natural gas producing states,” said Isakower. “New supplies are changing the

game for businesses that use or make energy-intensive products including chemicals, aluminum, steel, cement, and foodstuff. But to unlock our full manufacturing potential, those in Washington must turn aside efforts that would impose duplicative regulations on shale development, raise production costs, and limit access to domestic resources.” According to the study, unconventional oil and gas will steadily increase U.S. competitiveness, contributing $180 billion to the U.S. trade balance by 2022. In addition, unconventional energy: Increased disposable household income by $1,200 in 2012, rising to $3,500 in 2025; Generated $74 billion in government revenues in 2012, rising to $138 billion in 2025; Attracted U.S. capital investments totaling $121 billion in 2012, rising to $240 billion by 2025; Contributed $284 billion to the U.S. GDP in 2012, rising to $533 billion by 2025; and Supported $150 billion in earnings for U.S. workers in 2012, rising to $269 billion by 2025. API is a national trade association that represents all segments of America’s technology-driven oil and natural gas industry. Its more than 550 members – including large integrated companies, exploration and production, refining, marketing, pipeline, and marine businesses, and service and supply firms – provide most of the nation’s energy. The industry also supports 9.8 million U.S. jobs and 8 percent of the U.S. economy, delivers $85 million a day in revenue to our government, and, since 2000, has invested over $2 trillion in U.S. capital projects to advance all forms of energy, including alternatives.


Dix Communications - Gas & Oil

www.OhioGO.com

October 2013 Edition

auction “EXCITING OHIO UTICA SHALE OPPORTUNITY”

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TO BE OFFERED IN 14 PARCELS LOCATED IN: Belmont, Monroe, Tuscarawas, Knox, Stark, Holmes, and Morrow Counties of Ohio. Here is your chance to invest in one of the biggest shale plays in history. Absolute auction, all sells on location to the highest bidders: at the KIKO Auction office located at 2722 Fulton Dr. NW Canton, Ohio 44718. Directions: Take I-77 north of US Rt. 30 to Fulton Dr. (Exit #107B) go west to address. For online bidding go to www.kikoauctions.com or www.proxibid.com. PARCEL #1: 168.9 acres. Goshen Township in Belmont County. PARCEL #2: 260 acres. Mead Township in Belmont County. PARCEL #3: 449 acres. Salem Township in Monroe County. PARCEL #4: 130 acres. Perry and Rush Township in Tuscarawas County. PARCEL #5: 164 acres. Perry and Rush Township in Tuscarawas County. PARCEL #6: 210.5 acres. Jackson Township in Knox County. PARCEL #7: 157 acres. Jackson Township in Knox County. PARCEL #8: 40 acres. Tuscarawas Township in Stark County. PARCEL #9: 87.7 acres. Tuscarawas Township in Stark County. PARCEL #10: 147.8 acres. Tuscarawas Township in Stark County. PARCEL #11: 143.8 acres. Tuscarawas Township in Stark County. PARCEL #12: 117 acres. Sugarcreek Township in Stark County. PARCEL #13: 184 acres. Paint Township in Holmes County. PARCEL #14: 160 acres. Franklin Township in Morrow County. Bidding will be per net mineral acre. Mineral title search reports available on request. TERMS ON REAL ESTATE: 10% down due day of auction. Buyer’s premium of 10% to be added to the final bid to establish the purchase price. All information contained herein was derived from sources believed to be correct. ONLINE TERMS: 15% Buyer’s premium to be added to highest bid to establish purchase price. Go to www.proxi.com/kiko to register for on line bidding and terms. AUCTIONEERS/REALTORS®: Peter R. Kiko, 330-705-5996. Email peter@kikocompany.com. www.kikoauctions.com

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50

Gas & Oil

Southern Zone Edition

October 2013 Edition - Dix Communications

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October 2013 Edition

51

OSU team researching shale

C

OLUMBUS — Ohio State University researchers have begun focusing their expertise on the shale energy industry in Ohio. With the industry growing at a rapid pace in Ohio and around the country, Ohio State aims to produce research that can help inform policymakers, industry leaders and the public. The university formed a research cluster with a $50,000 seed grant from the university’s Environmental Sciences Network in October 2012. The team, the Shale Environmental Management Research Cluster, has attracted about 30 Ohio State faculty members from four colleges across the campus: the College of Food, Agricultural, and Environmental Sciences (CFAES), the College of Engineering, the College of Public Health, and the College of Arts and Sciences. The group also includes researchers from the University of Toledo’s Department of Chemical and Environmental Engineering and several representatives from the U.S. Geological Survey’s Ohio Water Science Center, and is partnering with faculty from West Virginia University under a new shale energy partnership. All of the Ohio State faculty in the research cluster are also

part of the university’s Subsurface Energy Resource Center (SERC), established in 2011 to provide research and policy guidance in the shale arena. The center now has more than 80 affiliated researchers who provide foundational expertise and integrate research efforts across campus to answer important shale-related concerns. “The shale energy industry is moving very quickly, and there’s not really much science behind what’s happening and what impact it can have, good or bad,” said Zuzana Bohrerova, coordinator of the team and research specialist and associate director of Ohio State’s Ohio Water Resources Center. “There is a lot of misinformation and a lot of fear that does not have a lot of science behind it. We want to work on getting more data, so there can be responsible decision-making around shale issues,” Bohrerova said. Team members have applied to the National Science Foundation (NSF) and the U.S. Department of Energy for nearly $13 million in funding for a half-dozen broad multidisciplinary studies involving ecological health, sustainability and biodiversity related to shale development.

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October 2013 Edition - Dix Communications

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54

Gas & Oil

October 2013 Edition - Dix Communications

Southern Zone Edition

Robert L. Bradley, Jr. Institute for Energy Research Several of the country’s most powerful environmental groups have latched on to this spring’s 10,000 barrell Arkansas oil spill to fight against a federal permit for Keystone XL, a proposed transnational pipeline project. New Washington-DC subway ads from SumOfUs.org claim this spill is just a “preview” of what will come by connecting Canadian oil deposits with refineries in the Texas Gulf Coast. This now standard tactic among green groups-opposing new energy projects by highlighting dissimilar accidents-is obstructionist thinking. Nobody likes oil spills, but the energy industry has proven it can contain pipeline ruptures quickly and safely. The Mayflower Incident Unified Command Joint Information Center reports swift and diligent remediation efforts following the Arkansas spill. The oil has already been almost completely cleaned up. Families are being compensated by pipeline-owner ExxonMobil. And the local environment has been restored. The spilled oil did not reach nearby drinking water supplies. And air quality monitors are detecting no or below-actionlevel fumes. There were no deaths or injuries either. Pipelines are careful operations because oil spills are costly to bottom lines and can sully hard-earned reputations. Accidents can pollute water and soil, harm or kill animals, disrupt lives, and far worse. Under state and federal regulations, companies responsible for spillage must work with government authorities to collect the oil, dispose of it properly, and remediate the affected areas. In recent years, oil companies have made a concerted effort to learn from spills and adopt practices aimed at preventing future accidents. According to a 2009 study by the Environmental Research Consulting, the oil industry has reduced spills by 77 percent since the 1970’s.

Pipelines in particular have benefited from a 35 percent reduction in spillage rates, largely thanks to the introduction of new computer, ultrasonic, and electronic technology combined with improved procedures. Smart pigs, which are barrelshaped devices carrying sensors, travel through pipelines to check the structural integrity of pipeline walls. Flyovers by sensor-equipped airplanes provide early detection of potential weaknesses. According to the U.S. Department of Transportation, digging is one of the main causes of pipeline incidents. Industry and government have also work together on a public information campaign that encourages contractors and homeowners to call 8-1-1 before they dig to avoid damaging pipelines. However, we do live in an imperfect world. People will make mistakes and equipment sometimes fails. So the energy industry cannot promise that spills will never occur. But claiming that oil pipelines should never be built because there’s a risk of an accident is just silly. Following that reasoning, one could also argue against all highway construction, since it’s impossible to ensure they will be absolutely safe and collision-free. Of course, no one would buy that logic. Highways are essential to the U.S. economy and our way of life -- just like oil. What’s more, Keystone XL itself will be one of the safest and most technologically advanced pipelines ever constructed. It’s designed with over 20,000 sensors to detect leaks, along with valves that automatically shut off in the event of a rupture. And a pipeline is a much safer oil transportation medium that barges, railcars, or tankers. By building the Keystone XL, 830,000 barrels of Canadian oil could flow daily to U.S. Gulf Coast refineries where it would be processed into the fuels required by industry and


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consumers. If the Obama Administration rejects Keystone, the Canadian government has stated that the project will turn to building the pipeline to the Pacific Ocean, where its oil would be loaded on tankers and shipped to China. Environmental protections are not nearly as stringent where the oil will be processed in China, the country with the world’s most greenhouse gas emissions. For a variety of reasons, regulators should no longer appease environmental extremists by holding up Keystone XL. Oil accidents are rare and quickly dealt with, and state-of-theart pipeline technology promises improving operation in a world that, unfortunately, cannot be accident-free. With political energy and leadership failing, it is refreshing to see leaders of global energy companies defend their moral right and financial opportunity to serve consumers with affordable, reliable energies. Energy education is well servedand corporate responsibility enhanced-by debunking the tired arguments of climate alarmism and rejecting government energy planning.

October 2013 Edition

55

Call For Great Rates

Robert L. Bradley Jr. is CEO of the Institute for Energy Research and author, most recently, of Edison to Enron: Energy Markets and Political Strategies (John Wiley & Sons).

10159242

PARTNERING WITH MINERAL OWNERS IN THE UTICA SHALE Noble County • Eastern Guernsey County • Western Belmont County • Harrison County

FLATIRON ENERGY PARTNERS, LLC (Flatiron) has signicant capital allocated to the acquisition of mineral and royalty rights in the above mentioned counties in the Utica Shale. Generally, we prefer to buy a portion of a mineral owner’s interest (i.e. 50%). We are not a broker or “ipper”. We are not buying oil and gas leases. Given below, are a few reasons why a mineral owner may want to consider a partial sale of their mineral and royalty rights:

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PARTNERING TOGETHER - With Flatiron as an investor in a mineral estate, a land owner can have assurance that a large group of professional oil and gas “eyes” will be on all aspects of what occurs with future drilling, development, unitizations, the sale of commodities and other issues that transpire in the development of shale wells. By selling a portion of your minerals to Flatiron, one takes on a professional oil and gas partner. REDUCING RISK - By selling a portion of non-producing minerals, an owner can hedge against the possibility of their area not being developed or an uneconomic well being drilled on their property. This way, an owner can assure themselves of a substantial payday and still keep the upside in the event that successful wells are drilled in the future. DELAYS IN DEVELOPMENT – As a mineral owner, one does not have control of the timing of the development of shale wells. Typically, oil and gas leases give exploration companies 3, 5 or in some cases, up to 10 years in which to begin drilling. For owners that would prefer to capitalize on their minerals today to use proceeds to invest or enjoy elsewhere, selling a portion may be a good option. If you are interested in this opportunity, please contact us for an offer. We have an acquisition team in the area and are able to meet in person to discuss our process. • • • • •

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Belmont County Owners Alan Kilian: (918) 232-5105

Guernsey County Owners Andrew Lawson: (214) 794-2302

Noble County Owners Austin Eudaly: (817) 683-4777

Harrison County Owners James Lawson: (251) 545-8290

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TOP COUNTIES WITH HORIZONTAL DRILLING ACTIVITY BY NUMBER OF SITES

1. Carroll County 333 2. Harrison County 133 3. Columbiana County 89 4. Noble County 64 5. Monroe County 59 6. Guernsey County 53 7. Belmont County 52 8. Jefferson County 38 9. Mahoning County 27 10. Portage County 15 11. Stark County 13 Tuscarawas County 13 12. Trumbull County 11 13. Washington County 8 14. Coshocton County 5 15. Muskingum County 3 Holmes County 3 16. Knox County 2 17. 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 9/21/13

25

50

75

100

125

150

335


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Dix Communications - Gas & Oil

October 2013 Edition

57

It’s a

‘Shale-a-Bration’

O

LD WASHINGTON — The Cambridge Area Chamber of Commerce is hosting the Friends and Family Fest 2014 – A Shale-abration, on May 10, 2014, at the Guernsey County Fairgrounds in Old Washington. This day-long event will celebrate Ohio’s energy production and Ohioans’ stewardship of the land. Friends and Family Fest is a free event, due to partnerships with interested businesses and organizations. Sponsors will have exhibit booths along with educational and product displays on the fairgrounds. The fairgrounds can accommodate large equipment displays and demonstrations. An aggressive marketing campaign and community outreach plan is in development, in order to give sponsors ultimate recognition and exposure. “It is our hope to bring the community and the oil & gas companies together for increased understanding and knowledge of the oil and gas industry,” said Chamber President Jo Sexton. “At the same time, the festival will include many family activities that are sure to entertain and engage all age groups! It will be family friendly and educational. And of course, food vendors will be serving up festival fare!” The Chamber of Commerce is in the process of securing live entertainment and activities that will take place throughout the day. The Chamber’s planning committee is exploring unique activities like dock dogs, a Johnny Cash tribute, sphering, and fly fishing instruction. A children’s trout pond is also being planned for young anglers. The Chamber of Commerce is currently seeking sponsors for this event. EQT Corporation has signed on as a $10,000 Platinum sponsor. Additional sponsorships are currently being offered at multiple levels with various benefits and promotional opportunities. Sponsor levels and benefits are as follows: A sponsor rate sheet follows. • Platinum — $10,000 (limited sponsorship available), includes: logo/name in all pre-event marketing; 20 free tickets to VIP reception; event day promotions including 1/2 page ad in program, banner and public address announcements; prime booth space and equipment display space • Gold — $7,500 (limited sponsorships available), includes: “Dock Dog” sponsor day of event; 12 free tickets to VIP reception; event day promotions including 1/4 page ad in pro-

gram, banner and public address announcements; preferred booth space and equipment display space • Silver — $5,000 (unlimited sponsorships available), includes: 6 free tickets to VIP reception; event day promotion including bold listing in programbanner and public address announcements; booth space. Additional sponsorships are available, by request, for individual events and activities including stage sponsorship, stage acts and bands, portalets, parking, children’s trout pond, sphering, and “Kiss the Pig Contest,” among others. Booth rentals are also available. Direct all inquiries to the Cambridge Area Chamber of Commerce, 740-439-6688, or by email to jsexton@cambridgeohiochamber.com.

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October 2013 Edition - Dix Communications

B

ARNESVILLE -- Gulfport Energy has paid a $250,000 fine and agreed to change the way it builds drilling pads after the Ohio Department of Natural Resources found contaminated soil at seven of the company’s well sites. It is the first fine to be levied against a horizontal shale driller in the state, said Mark Bruce, ODNR spokesman, and could be a prelude to higher standards for pad construction. ODNR inspectors found contamination from brine — salty water often found in gas and oil deposits — and other drilling fluids in May and June at well pads in Harrison and Belmont counties. Drilling at the sites ceased following the discovery. Bruce said the spills happened because of incorrect handling. The liquid then escaped through rips in protective pad liners and into the soil. ODNR spokesman Mark Bruce said one of the agency’s

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inspectors found contamination at a Harrison County well, which prompted a more thorough investigation. The seven drilling pads with contaminated soil were the Eagle Creek pad in the Egypt Valley area of Belmont County; the Inherst pad, south of Barnesville in Belmont County; the McCort pad, south of Barnesville in Belmont County; the BK Stephens pad, between U.S. 22 and Piedmont Lake in Harrison County; the Gustina-Bear pad, south of U.S. 22 near Piedmont Lake in Harrison County; the Clay pad, south of U.S. 22 near Piedmont Lake in Harrison County; and the Ryser pad, north of U.S. 22 near Clendening Lake in Harrison County. The contamination was confined to small areas, leading investigators to believe they caught the problem early on. Testing by both ODNR and Gulfport showed no contamination of groundwater, streams or ponds, Bruce said. Gulfport is the second biggest Utica Shale driller in the

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state with 86 well permits and nine producing wells. On Tuesday it scaled back its third quarter production estimate, citing pipeline delays and “higher than anticipated downtime during simultaneous operations.” Bruce said Gulfport already cleaned up and replaced the contaminated soil at the well pads. Bruce said Gulfport tested several local water wells but found no contamination. There also was no pollution in streams or ponds. The company must rebuild the pads to ODNR-approved specifications before it resumes drilling, and submit engineering plans to the agency for any proposed wells through February, according to a compliance agreement that took effect Monday. Gulfport also agreed to keep manifests for six months documenting each fluid used in its production operations. Gulfport spokesman Paul Heerwagen said the company appreciates the ODNR “working with us on this issue.” This week’s fine follows the Sept. 5 agreement between Harch Environmental Resources, a St. Clairsville company that dumped brine down a hillside and into a pond on a farm near St. Clairsville, and ODNR. Harch has agreed to pay a $100,000 fine, suspend its brinehauling operation for 30 days and submit daily hauling logs to ODNR for six months. In each case, ODNR has reserved the right to pursue civil or criminal action against the companies if they break the agreements or commit new violations.

October 2013 Edition

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Judie Perkowski Dix Communications

S

Southern Zone Edition

Attendees at the Detweiler Oil Pad tour, sponsored by PDC Energy and the Ohio Oil and Gas Association, included l to r, Shawn Bennett, field director for Energy in Depth; Judie Perkowski, reporter for The Daily Jeffersonian and GAS&OIL magazine; Penny Seipel, vice president of public affairs at OOGA; and David Hill, president of David R. Hill, Inc. and vice president of OOGA. Water storage tanks and the oil rig in the background are only two parts of the gas and oil drilling equation.

ALESVILLE — An invitation to media representatives, from PDC Energy and the Ohio Oil and Gas Association, to tour a working oil rig site was a chance to actually visit a place usually off limits to the prying eyes (and ears) of the five acres is devoted to the well pad, still offers undisturbed press. fodder for a variety of animals on the Detweiler property, inFive reporters and three photographers met at the Cam- cluding horses, a donkey and several llamas. The animals’ barn bridge Country Club to prepare for the visit to the well pad. is not far from the grinding drone of the The group listened to David Hill, of David R. Hill, Inc. and huge drilling apparatus, but the animals seem unfazed by vice president of OOGA, give an overview of the well site and their multi-million-dollar surroundings. what to expect on the tour, and a safety presentation by Adell Thanks to Penny Seiple, vice president of public affairs for Heneghan, director of environmental health/safety for PDC OOGA, Celesta Miracle, vice president of government relaEnergy. Hill, president of his company in Byesville and PDC, tions for PDC Energy; and Hill, reporters and photographers based in Colorado, are partners in the aforementioned drilling were allowed to talk to people who actually worked at the well site, including PDC employees Jeff Salen, director of drilling operation. All participants were required to don protective clothing, operations, and Blake Roush, district operations manager. Salen explained how PDC is at this particular point in time eyeglasses, hard hat and steel-toe shoe protectors before emwith three wells at different stages of the process. From explobarking on the tour of the Detweiler Pad in Wills Township ration to actual drilling and production, PDC contracts with near Salesville. several different companies who provide a variety of services Arriving at the well site, the group watched huge trucks roll Continued on pg. 72 down a gravel road, but the rolling grassland, of which almost


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Connolly, Hillyer, Lindsay & Ong, Inc. Attorneys and Counselors at Law Since 1964

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ENGINEERING & AUTOMATION

October 2013 Edition

63

Tools of The Trade Whether you’re out on the rig or in your own backyard We have six convenient locations to serve you!

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

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Southern Zone Edition

Safety first priority of

Buckeye STEPS Judie Perkowski Dix Communications

C

AMBRIDGE — Since April of 2012 when the first Buckeye STEPS meeting was officially called to order at the Willett Pratt Training Center in Cambridge, employers and employees associated with the gas and oil industry and its service providers have had a forum for learning more about workplace safety rules and regulations, networking and topics of interest presented by industry experts. The man who worked very hard to bring the STEPS Network to Ohio relied on his instincts and his networking skills. The Buckeye STEPS Network was established in Ohio by Joe Greco, director of new business development and outside safety compliance for Esmark Excalibur Machine Co. in Pennsylvania, where he is responsible for acquiring profitable long-term agreements through safe, environmental stewardship and harmonious relationships in all facts of business, predominantly in original equipment manufacturing machine work and fabricating in the energy fields. “I have been working with safety rules and regulations since I began selling construction equipment in my hometown in Pennsylvania 26 years ago,” Greco said. “History shows that equipment is built with safety a priority. I gravitated to the idea that it would be great to sell the idea of how the equipment I sold also lent itself to good environmental stewardship and to protecting the health of the operator, which led me to the STEPS Network.” The National STEPS program, an acronym for: Service, Transmission, Exploration and Production Safety Network is an all-volunteer organization founded in 2003 in Texas. “I realized that the organization promoted safety as the foundation for recommended practices, while working the energy fields and also promoting environmental stewardship and health,” Greco said. “I was introduced to the STEPS concept when Range Resources wanted to start what is now STEPS of Pennsylvania. I was asked to promote the start of the organization and my efforts were very successful. The very next day I traveled to West Virginia and got in on the ground floor to begin what is now the Appalachian STEPS Network. “It was when I became involved in the program that I met Rick Ingram, national STEPS chair. He asked for my assistance in starting a STEPS Network in Ohio and I accepted. “I spent a few months researching southeast Ohio and de-

cided on Cambridge because of the proactive efforts of Jo Sexton, president of the Cambridge Area Chamber of Commerce, and the positive support of Mayor Tom Orr, Tim Snodgrass of the Willet Pratt Training Center and Sen. Troy Balderson, chair of the Ohio Senate Natural Resources and Energy Committee. It was an added plus to have the area be the hometown of the very informative GAS&OIL magazine. “Buckeye STEPS is working on an alliance with OSHA aimed at pro-actively engaging efforts to educate and direct companies concerning the welfare of their employees and bringing them home safely at the end of the day. Also, we have the privilege of working with Sen. Balderson’s Senate Bill 1 and the OhioMeansJobs initiative. SB1 has the ability to institute energy-related curriculum, like what is offered at Zane State, to high schools, trade schools, colleges and universities. Displaced workers and veterans are encouraged to participate.” The next Buckeye STEPS meeting is 9 a.m. Friday, Oct. 4 at the Willett Pratt Training Center on the Zane State campus. Greco is a member-at-large of STEPS in Pennsylvania, on the board of directors for Appalachian STEPS Network, president and board member of Buckeye STEPS. He enjoys attending sporting events, especially Pittsburgh Pirates games, where he networks with the Pirates by introducing the organization to companies in the shale gas industry. jperkowski@daily-jeff.com

Joe Greco, president and board member of the Buckeye STEPS program, is pictured at one of his favorite places — Pittsburgh Pirates ball game.


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CLASSIFIEDS

October 2013 Edition

65

Your Business Resource

200 - Antiques & Collectibles

470 - Home/Condo Rental

470 - Home/Condo Rental

425 - Land Sale/Rent

695 - Cleaning Services

Simpler Thymes, a home décor and handmade furniture store is having a Christmas Open House November 2nd from 10 am- 5pm. 209 Seneca Ave Ste. B, Byesville Ohio 740-705-0429

Country Setting 62084 Beech Circle Dr. in Cambridge, Large Country lots available (40 x 130) Also avail: 2 BD, Mobile Home, EMSD, $450 + utilities Lic. installer of mfg. homes. Complete site prep & utilities. For More Information regarding properties as well as installation information contact (740) 255-0698

3 RV Sites w/ water, sewer & 50 amp service.

4 Lg., RV Sites, Full hook up, 1 price inc. all, 4 mi. from Pleasant City on St. Rt. 821. County Setting. Call Shawn 630-8725

Xtreme Cleaners, now open! A professional cleaning service for both residential homes and commercial business. Like us on Facebook, Call ahead for an appointment. 21396 Bridgewater Rd. Quaker City Ohio 740-705-2051

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For Sale By owner Country Club Estate, Four premium house lots in Byesville/Cambridge area. Beautiful wooded high dry land. Underground utilities include natural gas, water, elec, telephone, internet and cable TV. Lot sizes from 1.80 to 2.36 acres. Priced from $19,900 to $35,900. Protective covenant in place that will protect your investment. If you are going to build now, or in the future, why not consider these beautiful lots in a upscale development. Phone owner 740-705-1710

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Southern Zone Edition October 2013 Edition - Dix Communications Gas & Oil 66

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www.OhioGO.com

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October 2013 Edition

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68

Gas & Oil

Southern Zone Edition

October 2013 Edition - Dix Communications

WHAT IS EMINENT DOMAIN? Goldman & Braunstein, LLP Attorneys

Q

uestion: What is eminent domain? Answer: Eminent Domain is the power of federal, state and local governments and even certain private companies, including pipelines and utilities, to take private property and devote it to a public use. Examples include construction of roads, libraries, pipelines, or even an airport. Both the U.S. and Ohio Constitutions provide that property shall not be taken for a public use without the payment of just compensation. Question: Can I keep my property “safe” from an eminent domain action? Answer: If your property is taken or threatened with being taken for a public purpose, there is little that can be done to stop the government from moving forward. You can however assert your rights and take measures to ensure you receive just compensation. But not all pipeline companies have the power of eminent domain. Each pipeline company and the material in the pipeline must be evaluated. Question: Do I need an attorney if I am facing an eminent domain action? Answer: We think so. Negotiations are very complex and each property is unique. An attorney can make sure you take the proper steps to receive just compensation and protect any other rights from being waived or lost. Question: How is “just compensation” determined? Answer: Just compensation is the fair market value of your land. Fair market value is not based on the current use of your

land, but rather on the highest and most valuable use that the land could be put to. If your land has potential for residential or commercial development, just compensation should be based on that value, even if it is presently used as a farm. Question: Can a landowner determine “just compensation” on their own, or do they need an advisor or lawyer to help? Answer: An expert should analyze your lands development potential and highest value. In a recent case, the Ohio Department of Transportation valued farmland for about $130,000. Their appraiser testified the best use of the land would continue to be farming. We hired an independent appraiser who said the highest and best use of land was commercial. We tried the case and got a judgment awarding our client more than $650,000. Question: If I try to fight an eminent domain case and/or the amount of compensation I have been offered, won’t the process be extremely difficult and also very expensive to hire an attorney? Answer: The Constitution entitles you to just compensation and the procedures that have to be followed in order to obtain compensation are not overly difficult or expensive. For example, our firm handles eminent domain cases on a contingency fee. That fee is then a percentage of what we obtain for you by settlement or trial above the government’s original offer of just compensation and above all expenses. Question: Pipelines to move gas are being announced across the county almost daily. These companies are asking

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landowners to sign easement agreements. Is this different than eminent domain? Answer: Yes, an easement is a limited right to use the land of another for a specific purpose. In the case of a pipeline, the company that owns the pipeline needs an easement to bury it on someone’s land. The property owner still owns the land and is compensated for the easement. Question: What should a landowner do if they’re approached about an easement? Answer: We recommend landowners allow a surveyor onto their property, as forbidding access will not stop the process. But don’t be intimidated by condemning authorities. The law gives you important protections and rights. Landowners should not sign any agreements without first having them reviewed by an expert. An experienced lawyer can assist a landowner in negotiating settlements and developing easements and agreements to protect the property owner. A lawyer is essential if the matter ultimately goes to litigation. Question: What are landowners’ options if they don’t want an easement on their property? Answer: If a landowner doesn’t want to grant an easement, the pipeline company can take the landowner to court because in Ohio many companies have the power of eminent domain. But not all pipeline projects have this authority. In Ohio private pipeline companies regulated as common carriers of public utilities have the power of eminent domain in

October 2013 Edition

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certain situations. And some pipelines that are not public utilities are given the power of eminent domain by specific statute. For example, a pipeline carrying natural gas has the power of eminent domain, but if it carries natural gas derivatives it probably does not. Because it varies, consultation with an attorney is advisable. Question: How can a landowner ensure that their family and their property are properly protected and compensated? Answer: Seeking the opinion of an expert who is knowledgeable and informed in regards to pipeline easements is the best way to ensure fair and equitable treatment. Without proper legal protection, a pipeline company will negotiate an easement that is in their best interest, not yours. The law firm of Goldman & Braunstein, LLP, focuses solely on helping property owners. Both attorneys have extensive litigation experience in eminent domain and pipeline cases. Michael Braunstein is Professor Emeritus at Moritz College of Law at The Ohio State University, and is the author of widely used textbooks on eminent domain and property law. William A. Goldman – a former board member of the Ohio Housing and Development Board and current member of the Columbus Zoo and Aquarium and the Franklin County Veterans Memorial Boards– is one of two eminent domain attorneys listed in Ohio Super Lawyers. Please visit www.ohiopipelines. com for more pipeline information. Goldman & Braunstein can be reached at (888) 231-2554.

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October 2013 Edition - Dix Communications

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October 2013 Edition

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72

Gas & Oil

October 2013 Edition - Dix Communications

Southern Zone Edition

“Continued’” from pg. 60 related to the completion of the well, including reclamation of the land.

Salen said the third well is expected to cost about $3 million, which averages about $100,000 per day, because all the necessary equipment and preparation work for the third well site was already done. The cost for setting up the initial well pad and drilling the first well, takes three times the money and three times the labor. Although the immediate area of the drilling phase is noisy, you could still hear and understand people when they spoke. But, because the operation runs 24-7, and sound travels farther at night, neighbors will no doubt be happy when the well is completed. It was a “first” for the attendees to be able to climb on the 175-foot structure to the “doghouse,” about 25 feet above ground. The doghouse is the central control and monitoring station at the well pad, where two six-man teams work round the clock drilling the third well on the property. One well is already producing, the second well is in the process of getting the well ready for fracking — and the third is now being drilled. Salen said the complete process on this well should take about 25 days — max. (Actually, by the time this story goes to press, the third well should also be ready for fracking.) Roush said the liquids and gas — oil, water and natural gas drawn from the well, are separated. Oil and water is stored in tanks, the natural gas flows through a MarkWest pipeline to a processing facility in Cadiz. Hill said years ago drilling for gas and oil was kind of hit or miss, but with today’s technology, petroleum geologists, seismologists, archeologists, and a variety of soil and rock specialists, reservoirs of gas and oil are easier to find and are more accessible, thanks to hydraulic fracturing and horizontal drilling. “In spite of all the up-to-date equipment and procedures, it is still risky business and very expensive ... each well costs from $4 to $8 million,” he said. “We cannot afford to make a mistake.” The property is owned by the J.J. Detweiler Land and Cattle Co. in Wills Township in Guernsey County. PDC was founded in 1969 in West Virginia, and has continually operated in the Appalachian Basin for more than 40 years. Investment in Ohio began in 2011, totaling more than $200 million to acquire production and leases, as well as complete new horizontal wells. Primary operating areas are Guernsey, Noble, Washington and Morgan counties. The Ohio Oil and Gas Association (OOGA) is a trade association with more than 3,300 members — companies and individuals — involved in all aspects of exploration, production and development of Ohio’s crude oil and natural gas resources. jperkowski@daily-jeff.com

The third oil rig constructed on the Detweiler Pad in Wills Township. The rig is approximately 175 feet from the base. Reporters and photographers were allowed to climb 25 feet to first platform to observe the drilling mechanism, and farther up to another 50 feet to the “doghouse,” the central control and monitoring system under the watchful eye of PDC employees.

Celesta Miracle of PDC Energy, c, hands out coveralls, hard hats, safety glasses and steel-toe shoe protectors to attendees before they embark on a tour of the Detweiler Oil Pad in Wills Township in early August.


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Dix Communications - Gas & Oil

October 2013 Edition

73

49381 State Route 250, Harrisville, OH 43974

• Certified Mechanic • Offer Financing • We sell late model ATV, UTV, Dirt Bikes & Motorcycles Jeff Salen, c, director of drilling operations for PDC Energy, speaks to two of the five reporters who were invited to tour the Detweiler Oil Pad in Wills Township. Salen accompanied the group on the tour and explained the oil drilling process from the exploratory phase to completion.

Check out our October special on our website

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10183462

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

Fax: 330-262-0030 PO Box 1076 474 Industrial Blvd. Wooster, Ohio 44691 petroset@sssnet.com

One of the trucks seen daily transporting equipment at the Detweiler Pad in Wills Township. Equipment is for the installation of an oil rig, storage tanks, pipeline, mobile office for workers and whatever else is necessary for the drilling operation.

This horse is one of the many farm animals that now share their space on the Detweiler farm with PDC Energy’s multi-million-dollar oil and gas drilling operation. The animals seem to be unfazed by the traffic and noise generated by the workers and equipment.

10185565


Gas & Oil

Southern Zone Edition

October 2013 Edition - Dix Communications

Marc Kovac Dix Capital Bureau

C

OLUMBUS — Some are calling it a pickle, the paramecium shape that stretches, north to south, across eastern Ohio’s Utica shale formation. Tom Stewart, executive vice president of the Ohio Oil and Gas Association, said the area stretches through Carroll, Noble, Harrison, western Guernsey, Belmont, Monroe and possibly Washington counties. “A well-defined sweet spot is becoming much, much more evident, (with) some very good wells in a narrow strip,” he said. Wells in that area, he said, are pumping out the volumes of wet and dry gas that have caused so much talk of an economic boon. To the east there are good wells, too, but it’s mostly dry gas, Stewart said. And to the west, there’s the possibility of crude oil. There’s potential for all three areas - and challenges, too, Stewart said. Industry is still developing the infrastructure to transport and process the energy being produced and new technologies to reduce the cost of production. The latter is important, given the abundant supply of natural gas and the resulting lower prices. Stewart, one of the speakers at the Think About Energy Summit in Columbus last week, said energy companies are still validating their Ohio shale wells to determine which areas offer the best production. “We’re not really there yet,” he said when asked about updated projections for the expected economic impact on the state’s economy. “What we need to see a couple of years in the future is what happens when they are done validating and more interested in doing development of their positions.” The two-day summit, coordinated by America’s Natural Gas Alliance, included a variety of discussions on natural gas exploration and production in Ohio. Panels reviewed the potential for generating electricity using natural gas, the possibility of more widespread use of natural gas vehicles and fueling stations and the need for more training programs to prepare workers for positions in the industry. “If we have a well-trained work force, we can produce oil and gas in this state in an environmentally friendly manner...,”

said Rhonda Reda, executive director of the Ohio Oil and Gas Energy Education Program. It starts with the industry and the partnerships that individual companies pursue with these individual colleges and universities.” She added, “We’ve lost several generations of people not wanting to go into the field, especially the trades. We need to work as hard as we can to bring back those jobs.” Stewart said while the full economic impact of Utica shale production is not yet known, Ohioans are benefiting from increased natural gas production. He said households are saving an average of $1,200 a year on their heating bills. “It is Ohio citizens that are going to get the big benefit from having that large-scale supply so very, very close to them, instead of waiting on it to be shipped from the Henry Hub down in Louisiana,” he said. Marc Kovac is the Dix Capital Bureau Chief. Email him at mkovac@dixcom.com or on Twitter at OhioCapitalBlog.

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Dix Communications - Gas & Oil

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October 2013 Edition

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76

Gas & Oil

Southern Zone Edition

October 2013 Edition - Dix Communications

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Dix Communications - Gas & Oil

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October 2013 Edition

We’ve Got You Covered.

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

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Gas & Oil

Southern Zone Edition

October 2013 Edition - Dix Communications

SAFETY TRAINING FOR BUSINESS AND INDUSTRY OFFERED

S

T. CLAIRSVILLE — The Workforce Development and Community Education Department at Belmont College will be offering several industry safety training courses. These courses will include hands on safety training in the following areas: Occupational Safety and Health Administration, Mine Safety, and SafeLand Basic Safety Orientation training for the oil and gas industry. All courses will be held at the Belmont College Main Campus location in St. Clairsville. The OSHA construction industry training program is intended to provide entry level construction workers with general awareness of recognizing and preventing hazards on a construction site. The training courses will be offered on Oct. 15 and 16 from 8 a.m. to 2 p.m. Upon successful completion of the course, participants will receive an OSHA 10-hour construction outreach Department of Labor card. Further safety courses that will be offered are specific to the mining industry. Students who complete will receive four hours of college credit for each course, and after successful completion, earn federal certification. • Introduction to Mining will be held from Oct. 12 through Nov. 13 on Mondays, Wednesdays, and Thursdays from 6 to 10

p.m. This course will provide general orientation to the coal mining industry, including mining technology, methods, machines and chain of command. Miners’ rights and responsibilities will be addressed, as well as descriptions of various local, state and federal agencies. • Mine Law and Safety will be held from Nov. 14 through Dec. 9 with classes meeting on Mondays, Wednesdays, and Thursdays from 6 to 10 p.m. Any student who wishes to participate in this class must first successfully complete the Introduction to Mining course. Students will receive information about the Federal Coal Mine Health and Safety Act of 1977, Title 30, Code of Federal Regulations. Also offered is a twoday SafeLand Basic Safety Orientation training course for the oil and gas industry. Classes will be held on Nov. 8 from 7:30 a.m. to 5:30 p.m. and Nov. 9 from 9 a.m. to 5 p.m. Participants will receive a photo ID SafeLand card, first aid, and CPR cards. Customized training can be delivered at the College or at the business location. For information about the OSHA, Mine Safety, SafeLand safety training courses, customized training, or to register, please contact the Workforce Development and Community Education Office at 740-699-3869.

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October 2013 Edition

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Southern Zone Edition

October 2013 Edition - Dix Communications

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October 2013 Ohio Gas & Oil Magazine-Southern Edition