Ohio Gas & Oil Magazine December 2016

GasandOilMag.com

December 2016 • A Free Monthly Publication

Industry Fuels Harrison Co. Growth Drilling Brings Back Jobs Harrison County Industry Leaders Robert Sterling, William Host, Nicholas Homrighausen, & Dale Norris IN THIS ISSUE: WHAT DOES A TRUMP PRESIDENCY MEAN?

Furniture for Life

American Made Hardwoods Walnut Creek Furniture

3473 State Route 39 • Walnut Creek, Ohio 44687 330.893.3383

Green Acres Furniture

7412 Massillon Road • Navarre, Ohio 44662 330.359.6251

Homestead Furniture

8233 State Route 241 • Mount Hope, Ohio 44627 866.674.4902

Troyer Furniture

985 West Main Street • Sugarcreek, Ohio 44681 330.852.4752 WO-10507035

www.FurnitureHeartland.com

KO-10477126

GasandOilMag.com

OhioGas&Oil

1

Table of Contents DECEMBER 2016

4

A Look Ahead Gas & Oil Events

5

Firefighters Receive Specialized Oil Field Training

8

Energy Report

9

Partnership Comments on Growth of Industry

Negotiating a Pipeline Contract? Here Are Some Tips

12

No Debate: Fracking Brings Manufacturing Back

14

OOGA Tour

Ohio Supreme Court Rules in Landowner Royalty Case

18

Trump Administration Will Focus On Abundance Of Issues, Including Energy

22 OhioGas&Oil

G.C. Dix II GCDixII@dixcom.com David Dix DEDix@dixcom.com

EXECUTIVE EDITORS Ray Booth RBooth@dixcom.com

16

21

2

Andrew S. Dix ASDix@dixcom.com

10

20

PUBLISHERS

Roger DiPaolo RDipaolo@dixcom.com Rob Todor RTodor@dixcom.com Lance White LWhite@dixcom.com

RE G IO NAL E DIT O RS Don’t Give up on Those Mineral Rights Yet

Media Hype Aside, Energy Industry Is Exceptionally Safe

Harrison County Industry Leaders

Scott Shriner sshriner@recordpub.com Cathryn Stanley CStanley@dixcom.com Niki Wolfe NWolfe@dixcom.com

GasandOilMag.com

Table of Contents DECEMBER 2016 ADVER TISING Kim Brenning Cambridge, Ohio Office KBrenning@dixcom.com 740-439-3531 Kelly Gearhart Wooster & Holmes, Ohio Offices KGearhart@the-daily-record.com 330-287-1653 Jeff Kaplan Alliance & Minerva, Ohio Offices JKaplan@the-review.com 330-821-1200 Mark Kraker Ashland, Ohio Office MKraker@times-gazette.com 419-281-0581 Diane K Ringer Kent, Ohio Office DRinger@recordpub.com 330-298-2002 Janice Wyatt National Major Accounts Sales Manager JWyatt@dixcom.com 330-541-9450

24

Chevron Donates Spill Response Trailer to Harrison County

26

Dominion Grants Enrich Energy Applications

29

Construction Quick Tip: Ask Your Builder About Disaster-Resilient Materials

30

Chevron Gift Boosts Oil and Gas Workforce Program

31

Ohio Well Activity Graph

32

Horizontal Drilling Activity Graph

L AYOUT D E SIG NE R Kassandra Walter

kwalter@times-gazette.com

J&M

CO NTE NT CO O RDINAT O R

Carpentry LTD

Emily Rumes

GasandOilMag.com

erumes@the-daily-record.com • Pole Barns • Garages • Barns • Stables • Riding Arenas • Horse Barns • Decks • Outbuildings • Metal Roofing

FREE

“The Quality You Want For Your Project”

Estimates 330.231.0125

Expert LARGE “Gas & Oil” is a monthly publication jointly gs Reroofing Scale Buildin produced by Dix Communications. Metal Conventional Copyright 2016.

AL-10454264

Most Jobs Are Complete In Just Two

GasandOilMag.com

jmcarpentryltd.com

December 2016 • A Free Monthly

Publication

‘Generations of Amish Craftwork with Modern, Professional Site Management’

Agricultural Residential Commercial Any Size Custom

Days

Fredricksburg, Ohio 44627

Industry Fuels Harrison Co. Growth Drilling Brings Back Jobs

On The Cover:

Harrison County officials are bullish on the future of their community, due to the sustained impact of the gas and oil arkWest industry. on, M n

rath xpansio Ma Eye E

Harrison County Industry Leaders Homrighausen, & Dale Norris Robert Sterling, William Host, Nicholas IN THIS ISSUE: WHAT DOES A TRUMP

PRESIDENCY MEAN?

OhioGas&Oil

3

A Look Ahead

Ohio’s Gas & Oil Events • December 1-3, 2016 National Science Teachers Association Conference.

Greater Columbus Convention Center, 400 N. High St., Columbus; includes OOGEEP Workshop, “Teaching STEM Using the Gas & Oil Industry,” Dec. 2

Over a million homes... one address CutlerHomes.com

• December 15, 2016 Ohio Oil & Gas Association annual Holiday Membership Reception. Cherry Valley Lodge, 2299 Cherry Valley Road, Newark • March 8-10, 2017 Ohio Oil & Gas Association Winter Meeting, Easton Hilton, Columbus.

JoAnn Clark

joannclark@cutlerhomes.com Cell: 330-323-3362 Office: 330-627-6920 AL-10423196

“We Always Have Time For You”

Carol Goff & Associates Your Oil & Gas Connection

REAL ESTATE

Lori Frank, Broker www.carolgoffrealestate.com

Look for us on

Cambridge • 740-439-1111 New Concord • 740-826-7557 Zanesville • 740-454-6777 S.Zanesville • 740-454-6778 Coshocton • 740-622-7653 Newark • 740-366-2121 St. Clairsville • 740-695-5559 New Lexington • 740-342-4511 Hebron • 740-527-2710 Marietta • 740-373-3020 Caldwell • 740-305-5294

FOR SALE or LEASE 128 STEUBENVILLE AVE., CAMBRIDGE

Great location for this comm. bldg. w/ nearly 30,000 sf. of space.

The property includes several large warehouse areas w/ plenty of room for storage. Large fenced parking area w/ space for over 30 vehicles. 5 large overhead doors & side dock entrance.

$325,000.

Call our Cambridge office @ 740-439-1111

9232 CADIZ RD., CAMBRIDGE

Great commercial site w/ 42 acres, large brick home, insulated commercial building 96 x 32 w/ gas unit heater w/small radiant heater in shop area. Building also has 13’ ceilings with (2) 10’ doors and (1) 12’ door. Could be developed for residential. Mineral rights are reserved.

$750,000.

Call Carol Goff @ 740-819-2301

145 S. 23rd. St., CAMBRIDGE Great office building for Rent on 0.910 acres. Close to shopping and Interstate. $4,000/ Mo. Call our Cambridge office @ 740-439-1111

11422 OLD NATIONAL RD., CAMBRIDGE Nice building for Rent with 3 bays, 2 baths, and over 6000 Sq. Ft. 220 Power. $8,000/ Mo. Call our Cambridge office @ 740-439-1111

CAROL GOFF & ASSOCIATES OPERATES 12 OFFICES. COVERING 16 COUNTIES IN SOUTHEASTERN & CENTRAL OHIO, AND NOW OPEN IN VIENNA, WV! We are a full service Real Estate company handling both buyers and sellers of residential, commercial, farms, acreage and investment properties. We also offer auctioneering services and appraisals.

CA-10507350

4

OhioGas&Oil

Visit us at www.carolgoffrealestate.com

GasandOilMag.com

Firefighters Receive Specialized Oil Field Training

F

irefighters from New Concord, Bethesda and Barton experience,” said Camri Druzin of the Barton Volunteer Fire recently completed an intensive Oilfield Emergency Department. Both Roe and Druzin cited the classroom training Response Training Program conducted by the Ohio Oil and hands-on fire behavior labs as especially helpful. and Gas Energy Education Program.

During the two-day training program, firefighters learned fieldFirefighters representing the New Concord Fire Department tested tactics and procedures for combating potential drilling Story continued on page 6 learned how to safely respond to potential, but rare, oil and natural gas emergency incidents. In total, 46 firefighters from 16 counties participated in the hands-on training program held at the Wayne County Regional Fire and Rescue Training Facility on Sept. 17-18 and Oct. 22-23.

“This program is invaluable for first responders,” said firefighter Rebecca Barkely of the New Concord Fire Department. “There was great classroom material and hands-on experience.”

Barkley and fellow firefighter Rebecca Spencer thought the fire behavior labs were educational and fun.

“This is a growing industry, we need to be prepared,” said Captain Dustin Roe of the Bethesda Fire Department. “This is a great

GasandOilMag.com

OhioGas&Oil

5

Story continued from page 5

and production site incidents, evaluating oil and natural gas emergencies, and obtaining valuable site-specific information during an emergency.

More than 1,416 firefighters from across Ohio and seven other states have successfully completed the program, now in its fifteenth year.

The first day of the program focused on distinguishing between normal operations and true oil field emergencies. Classroom presentations provided an overview of Ohio’s oil and gas industry, including the processes and procedures used to develop these energy sources.

6

OhioGas&Oil

On day two, firefighters received intensive hands-on training utilizing the OOGEEP outdoor fire-behavior lab. The training site includes several pieces of oilfield equipment designed to allow firefighters to experience and respond to potential oilfield incidents. OOGEEP’s state-certified fire instructors assist firefighters at each of the hands-on stations.

“This information-packed and intensive two-day program emphasizes safety and best practices when firefighters engage oil and natural gas related operations,” said OOGEEP Executive Director Rhonda Reda. “Our state-certified instructors, many of whom are current or retired firefighters themselves, take pride in providing fellow emergency responders with this valuable safety information. It is because of our instructors that firefighters

GasandOilMag.com

can earn required CEU credits as well as an optional graduate credit.

It is endorsed by the Ohio Fire Chief’s Association, Ohio Society of Fire Service Instructors and Ohio Fire and Emergency Services Foundation, and funded entirely by Ohio’s oil and natural gas producers.

from across the nation look to OOGEEP’s training program as a highly regarded model.”

WO-10495384

The OOGEEP training program and curriculum was developed as a collaborative effort between Ohio’s oil and gas industry, government regulators, firefighters and emergency response experts. The course meets national and state fire safety standards and attending firefighters

GasandOilMag.com

OhioGas&Oil

7

Energy Report

W

ith some politicians and interest groups heralding Europe’s energy policies as a model to follow, the U.S. Chamber’s Institute for 21st Century Energy examined what would happen if the U.S. was forced to pay EU energy prices.

In this report, the Institute examined the policies and regulations which have led to much higher prices for energy in the European Union. The report found that European energy policies and prices would impose a $676 billion drag on the U.S. residential sector, with the average American household seeing price increases of $4,800 per year for their energy. This increase in prices would The report is the third in the Energy Institute’s Energy lead to the elimination of 7.7 million jobs in the United States.

Accountability Series. The series takes a substantive look at what would happen if energy proposals from candidates and interest The Energy Institute’s report identifies four key factors that make groups were actually adopted. energy more costly in the European Union: 1) restrictions that inhibit access to low-cost, existing electricity supply and oil and “Saying that the U.S. should become more like Europe when it natural gas supplies; 2) more generous subsidies provided by EU comes to energy policies has become a common refrain in some members for uneconomic technologies; 3) EU policies that place circles, so our report takes these politicians and interest groups at a tax on carbon emissions and 4) much higher taxes on energy their word and presents the facts about what that would actually consumption. These factors have driven EU prices over the past mean for our economy,” said Karen Harbert, president and CEO several years to rates that are 1.6 to 2.4 times greater than U.S. of the U.S. Chamber’s Institute for 21st Century Energy. “The prices per unit of energy consumed. types of policies being advocated by leading candidates, such as restricting energy production and imposing new mandates, “Over the past few years, the growth in the U.S. economy has would drive up energy prices and reduce America’s global far exceeded Europe’s—fueled by affordable American energy,” competitiveness.” said Harbert. “The American energy renaissance has led to a resurgence in manufacturing, some of it at the expense of the European Union due to such high prices. The U.S. should do everything possible to retain our competitive advantage, not copy the EU’s failed approach.”

TOOLS OF THE TRADE Whether you’re out on the rig or in your own backyard We have 7 convenient locations to serve you!

Orme Hardware Cambridge

New Concord

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

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

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

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

Newcomerstown

Cadiz

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

Berlin

(Formerly Kandel’s Hdwe.)

Newark

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

CA-10423033

Arcanum

210 S. Main St., Arcanum, OH Phone: 937-692-8282

ormehardware.com 8

OhioGas&Oil

The Energy Institute’s report also provides state-level analyses of seven key states. Colorado, Illinois, Indiana, Michigan, Florida, Ohio, and Wisconsin would all see state GDP loses and less employment with EU energy prices. Florida would see the highest number of job losses (377,400) and annual GDP reduction ($28.5 billion), while Indiana households would see the biggest annual increases in energy prices ($5,450 per household.)

The report utilizes publically available data on jobs and production levels and the IMPLAN macro-economic model. A Technical Appendix to the report explains the methodology and sources of data.

The mission of the U.S. Chamber of Commerce’s Institute for 21st Century Energy is to unify policymakers, regulators, business leaders, and the American public behind a common sense energy strategy to help keep America secure, prosperous, and clean. Through policy development, education, and advocacy, the Institute is building support for meaningful action at the local, state, national, and international levels.

The U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.

GasandOilMag.com

Partnership Comments on Growth of Industry

T

he Appalachian Partnership for Economic Growth featured information about eastern Ohio’s natural gas development in its recent newsletter.

According to information reported from the U.S. Energy Information Administration, Ohio, Pennsylvania and West Virginia have accounted for 85 percent of U.S. shale gas growth. Shale gas represents two-thirds of the U.S. natural gas production.

“Eastern Ohio’s low-cost natural gas is changing America’s energy picture and attracting new gas-fired In addition to pipelines taking natural gas to large electric generating plants to the state,” an article stated. population areas, liquefied natural gas is being shipped via tanker to Europe and Asia.

“The boom is a product of the Utica and Marcellus shale in the tri-state area known as the Appalachian Basin.”

Matt Waldo, senior manager of research with JobsOhio, said, “Ohio’s spot price for natural gas is more than 40 percent lower than the Eastern U.S. average… This fuels our tremendous downstream demand.”

Pennsylvania Ohio

85% of U.S. Shale Gas Growth

West Virginia

TEAMSTERS LOCAL 637 WELCOMES

CA-10508909

GIBSON TRUCKING

GasandOilMag.com

TEAMSTERS LOCAL 637 PEOPLE HELPING PEOPLE 740-453-2102 OhioGas&Oil

9

Negotiating a Pipeline Contract?

Here Are Some Tips years.

A

Clif Little • OSU Extension, Guernsey County s the development of shale energy continues, pipelines and related infrastructure are spreading across farmland. New gathering lines now extend out to wells that have come on-line in recent

In addition, intrastate and interstate transmission pipelines are being built so that more natural gas can move from settings where it is extracted to distribution networks serving homes, businesses and other end-users.

contractors or guests ought to be prohibited, the landowner’s attorney should make this restriction clear. Parking of vehicles, trucks or other equipment necessary for construction may also be limited to the period of construction, if likewise described in the agreement.

For some farms, preserving esthetics is important. If a landowner does not want the easement area to be used as a storage area or staging area, for example, this should be agreed to in writing.

In addition, permanent fencing around pipeline structures may be needed. Identify all fencing issues in the contract, what type, if it is permanent or temporary and who will maintain it.

Some farmers will lose forage production and need additional forage for livestock. Do not forget to include these damages in the contract and be aware that damages might extend beyond one year.

Though much of this infrastructure is constructed to the satisfaction of rural landowners, complete with restoration of pastures and crop fields, complaints are registered from time to time. In some cases, dissatisfaction can be traced to landowners’ attempts to negotiate with pipeline companies on their own, without legal counsel. Based on observations in Guernsey Agreements with a pipeline company need to clearly define the County and the surrounding region, there are steps one can take company’s responsibilities for land restoration. A landowner to avoid needless conflict. might want to describe what locations are to be replanted, seeding method to be used, as well as what forage cultivars, It is important that the landowner understand the total number seeding rates and even what mulch type is to be used. It can be of pipelines, depth of pipeline burial, appurtenances, future uses helpful to provide a description of what water diversion practices which the pipeline company desires for the right-of-way area should be employed. Practices such as silt fences and water bars and what uses the company may want to grant to other utilities. can be an obstacle when a field needs to be mowed or clipped, Before signing any sort of agreement with a pipeline company, so the contract must identify when obstacles should be removed a landowner should insist on pinpointing the pipeline and and when and whom is to restore the land. temporary work area. A good option is to ask the company for a plat showing the area’s location and dimensions. Beginning and The Soil and Water Conservation at the Ohio Department of ending dates for construction and installation can and should Agriculture has published a document titled “Pipeline Standard be negotiated and written into the agreement. Also to be spelled and Construction Specification” that addresses restoration issues out are entry and exit points for the landowner’s fields, types of in detail. In the process of pipeline installation, large rocks will gates to be utilized, as well as who is responsible for maintaining be unearthed. Some landowners have elected to have boulders placed in a location for their use or sale. gates and fences.

Unless agricultural operations are suspended entirely during pipeline installation, a specific place for farm equipment to cross through the construction area needs to be identified. It is also possible that springs, ponds and streams might be affected, in which case an appropriate remedy must be identified. As with other points of agreement with the pipeline company, anything not put in writing will be difficult to enforce.

The company’s activities might have an impact on farming operations and therefore can be described and limited in the right-of-way grant. For example, if hunting, fishing, loitering, lodging, camping or similar activities by the company or its

10 OhioGas&Oil

When pipelines go through timber, a landowner will need compensation for damages. There are several successful means to handle these losses. Probably the simplest is to agree upon a price per foot of pipeline through the woodlot. Landowners should be paid for the damaged marketable timber and any hardwood of pole size which would have been marketable within the next twenty years. It might also be possible for the landowner to retain possession of this timber and have it placed at a specific location on the farm which should be accessible even after pipeline installation. It can be helpful for landowners to hire a consulting forester when negotiating timber issues. A list of consulting foresters can be provided by the local OSU Extension

GasandOilMag.com

office or the ODNR Service Forester.

It is prudent to soil test the pipeline area after installation, as lime and fertilizer needs will change significantly after soil disturbance. Landowner attorneys will need statements written into the contract which require pipeline installers to follow the fertilizer and seeding recommendations of the landowner.

The landowner may want to stipulate in writing that he or she, not the firm building the pipeline, has the final say about the completeness of restoration. The landowner will probably have need for a company contact and telephone number utilized for the sake of regular consultation as reseeding and other kinds of reclamation are happening. Landowners should discuss consequences for non-compliance of the right-of-way contract with their attorney.

It is possible for a right-of-way to become infested with weeds or to experience soil erosion. If this occurs, what procedure is to be followed and for how many years after construction do the company’s responsibilities for remediation last? If the landowner negotiates for additional items to be placed on the farm such as drips, valves, and metering equipment, how will these be maintained? All of these measures may require fencing, some kind of reseeding, and long-term plans for weed control.

Another issue landowners should seriously consider is contract-described limitations on their use of the right-ofway. For example, it may be important to reserve the right to install drainage ditches, tiles or to construct a road across the easement. In addition, PVC pipe conduit may be needed for water and electric either in support of current farm operations or in anticipation of expanded operations.

If the property has been enrolled in a United States Department of Agriculture government program it is important to have protection in the agreement for the possibility of recoupment of program payments.

Finally, nothing lasts forever. Some landowners may want to describe what triggers the end of an agreement, and what procedures must be followed to clear the farm title of encumbrances. Any language that appears to give rights to the company, “exclusively” needs to be considered carefully by the landowner and their attorney.

More information about pipelines can be found online at www.serc.osu. edu. Property owners need to keep in mind that the items in an offer for a right-of-way are negotiable, and it is advisable to never attempt to negotiate without the assistance of an attorney.

PO BOX 226 7643 FORT LAURENS ROAD STRASBURG, OH 44680 HOURS: MON, WEDS, FRI 8-5 TUES, THURS 8-6, SAT 8-12

INSTALLATION AVAILABLE

B&W Gooseneck Protect Your Truck From Deer

Grill Guards Bumpers Lighting Headache Racks

Tool Boxes Wheels & Tires Lift Kits Nerf Bars

Winches Hitches Fender Flares Floor Mats

WWW.TRUCKOHIO.COM WO-10507694

GasandOilMag.com

OhioGas&Oil 11

No Debate: Fracking Brings

Manufacturing Back Jackie Stewart • Energy In Depth Ohio

O

ne thing both Hillary Clinton and Donald Trump could agree on is the fact that America’s surge in natural gas production, which has driven down prices, is bringing manufacturing back.

“What that means for viable manufacturing and industrialization in this country is enormous.”

Only a few years ago, the United States watched manufacturing jobs get shipped overseas. In fact, some of the hardest hit areas were in Pennsylvania, West Virginia and Ohio, leaving the tristate, typically defined as the “Rust Belt,” suffering economically.

“The oil and natural gas industry supports 10 million high-paying Americans jobs and can create another 400,000 new jobs per year. This exploration will also create a resurgence in American manufacturing — dramatically reducing both our trade deficit and our budget deficit.”

On the Republican side, Trump has agreed that our energy renaissance has been a boon for trade and manufacturing,

But then fracking came to the Marcellus and Utica shales and The White House National Economic Council recently released a everything changed. Within a few short years, vacant plants report entitled “Revitalizing American Manufacturing” which along the Ohio River were given new life and thousands of new finds that since early 2010, U.S. manufacturing has added over jobs were created.

800,000 direct jobs. The White House links this directly to shale production: “The surge in American natural gas production has On the Democratic side, Clinton recently referenced a report lowered energy costs for manufacturers and driven job growth.” that discussed how the U.S. was on track to surpass Russia in domestic oil and natural gas production and went on to note, In 2014 PricewaterhouseCoopers put out a report, which stated that the annual cost savings to the manufacturing sector 12 OhioGas&Oil

GasandOilMag.com

from shale gas could mean $22.3 billion by 2030 and $34.1 billion by 2040. This savings, in turn, would lead to 930,000 shale gas-driven manufacturing jobs by 2030 and 1.41 million jobs by 2040.

The reason low natural gas prices are so important is due to the fact that oil and natural gas are used as the feedstock to American made products we use each and every day.

The image on the right is a quick illustration of how that works.

Without oil and natural gas, developed by fracking, the manufacturing of numerous products, including wind turbines and solar panels would not even be possible (ethane and propylene are used to make renewable infrastructure).

Both Democrats and Republicans agree: shale production is fueling manufacturing – and that means jobs are surging back.

The promise of job creation is already proving true in Ohio. Steel is again being manufactured, and resurgence is occurring up and down the Ohio River as the manufacturing industry is coming back to life.

Natural gas production from the Marcellus and Utica shales and the intersection of these technological advances in manufacturing has not gone unnoticed, which is why companies are investing billions in ethane crackers along the Ohio River.

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

10 Evergreen Varieties Available 4 foot to 14 foot

GasandOilMag.com

AL-10377870

The Youngstown Regional Chamber, Youngstown State University, Humtown Products and Freshmade 3D joined forces to show the innovation in manufacturing plastics by creating life sized 3D printed Donald Trump and Hillary Clinton bubbleheads by using manufactured sand and fiberglass (a petroleum based product).

Instant noise/dust reduction 12 month privacy for your sites Call for a planting quote today!

www.smithevergreen.com smithevergreen@neo.rr.com OhioGas&Oil 13

OOGA Tour

G

eology students from Kent State University and “Today was a proud day for me as a Kent State alumnus, to Muskingum University recently took part in a tour watch how these Kent State students showed their passion sponsored by the Ohio Oil and Gas Association. for our shared industry was very special for me,” Chadsey said. “They understand how the work they will do after The tour included a Utica Shale production pad graduation powers our state and our economy.” owned by PDC Energy, located just outside Senecaville, a Clinton Sandstone well and a Class 2 injection well, both At the first stop on the tour, the PDC Energy Utica Shale owned by David Hill of Guernsey County, who is also production pad, Hill showed students how the well was president of the Ohio Oil and Gas Association. put into production, the equipment on site to manage that production and the state of the art technology used to make “The reason we host these site visits is we think that it is it all work. absolutely critical to get the next generation ready for the challenges they will face in this industry,” Hill said “They At the Clinton Sandstone well, Hill showed the technology will be the problem solvers of tomorrow.” used to make this well pump and function. He also took the opportunity to discuss the difference in wells from the first In addition to being president of OOGA, Hill is also a location to the second. graduate of Muskingum University.

At the Class 2 injection well, Hill told the students, “you Mike Chadsey, director of public relations for OOGA, also can’t have production without injection.” Students watched had a personal interest in the tour. delivery trucks unloading and then moved into the pump

14 OhioGas&Oil

GasandOilMag.com

house to see how the fluid was moved from the tanks down the wellbore. Hill showed how the site functioned, showed the students the well head and pointed out the equipment and gauges.

Chadsey said the tour ended with questions from students, such as: when will the industry come back, what will it look like when it does?

MADE IN PENNSYLVANIA

(844) TOP-MATS Sales@TopMatsUSA.com www.TopMatsUSA.com CA-10509697

Call us for a

Modular Aluminum Compressed Air Piping

Catalog &

• • • • •

Prices on

Fast Installation Time Superior Air Quality Diverse for many applications Energy Efficiency Installation Available!

12317 Dover Road, Apple Creek,

OH 44606 | 330.857.0001 GasandOilMag.com

WO-10507032

WO-10432232

INSTALLATION AVAILABLE

OhioGas&Oil 15

Ohio Supreme Court

Rules in Landowner Royalty Case

I

David J. Wigham • Attorney n a closely watched and long-awaited case with potentially sweeping industrywide consequences, the Supreme Court of Ohio refused to adopt a default rule regarding deduction of postproduction costs from landowner royalties in Ohio.

In the case of Lutz v. Chesapeake Appalachia, L.L.C., issued on November 2, 2016, the Supreme Court of Ohio ruled that a determination of what postproduction costs, if any, may be deducted from landowner royalties must be decided based on the language used in each individual oil and gas lease, or, if the lease language is ambiguous, based on extrinsic evidence. As a result, the Court declined to answer the certified question of law regarding which default rule Ohio should follow: the “at the well” rule (which permits the deduction of postproduction costs) or the “marketable product” rule (which limits the deduction of postproduction costs under certain circumstances).

Despite the fact that the Court declined to establish a default rule, the decision nevertheless could have far-reaching consequences for both landowners and producers. In particular, older leases containing gas royalty provisions drafted when natural gas prices were regulated could generate significant litigation going forward. Based on the Lutz decision, courts will likely determine future royalty-dispute cases on a lease-by-lease basis by examining the lease language and extrinsic evidence such as old landowner royalty statements. Not only will this likely prove an onerous burden on producers and landowners, it may also prove to be a potential bar to landowner class action lawsuits based on underpayment of gas royalties.

The potential scope of the Lutz ruling could be limited primarily to older leases that were signed prior to the deregulation of natural gas in 1992. Many modern leases intended for Utica shale development contain more detailed provisions that attempt to more clearly spell out what postproduction costs may be deducted

16 OhioGas&Oil

from landowner royalties. Shale producers have used these more modern leases to lease thousands of acres and have attempted to keep them as uniform as possible.

Also, most older leases signed prior to deregulation were intended for use with conventional wells and do not contain provisions that allow for the development of unconventional shale wells. Thus, most shale producers will often seek to amend these older leases prior to proceeding with shale development, thereby providing landowners with an opportunity to renegotiate royalty and postproduction cost provisions, in addition to other important lease provisions.

These more modern leases may still be subject to considerable dispute regarding what types of postproduction costs are deducted from landowner royalties and whether these costs are reasonable.

As Justice Pfeiffer observed in his dissent in Lutz, producers completely control postproduction costs, and these costs can be easily manipulated. Producers should be wary of challenges to both the type and amount of postproduction costs being deducted from landowner royalties. And since many shale producers have used standard lease forms, or slight variants of standard forms, landowners sharing acreage in a drilling unit are potentially in a better position to jointly pursue claims together based on underpayment of landowner royalties.

Another area of potential dispute involves how oil and gas are priced for purposes of landowner royalty payments.

For example, a producer could be paying oil royalties based on a lower spot market price for oil when it is actually selling its oil at a much higher futures price based on a commodity contract. Also, a producer could be paying gas royalties based on a much lower price

GasandOilMag.com

used to sell gas to a related subsidiary company, who will then mark up the price to sell to an unrelated third party. In either of these instances, landowners could potentially recover additional royalties based on such price differential.

Many shale producers have carefully drafted the lease language they are using for shale development and have included provisions intended to allow for deduction of postproduction costs from landowner royalties and the payment of royalties. With Utica development proceeding in Ohio, producers are relying on such provisions to pass on postproduction costs to landowners and paying royalties based on lower pricing than are actually received. Producers commonly provide royalty statements that are difficult, if not impossible, to read or interpret. This, combined with some producers being reluctant to provide postproduction cost information and commodity pricing (while being exclusively in control of this information), has created a climate of uncertainty, which will undoubtedly lead to litigation by landowners seeking to recover postproduction costs wrongfully withheld from the royalties or for the underpayment of royalties.

Ohio landowners who have leased their minerals and who are now receiving royalties from Utica Shale wells are urged to seek assistance in evaluating all of their royalty audit and possible litigation options. These landowners are also encouraged to retain experienced legal counsel for assistance. There may be situations involving drilling units in Monroe and surrounding counties where producers could possibly be underpaying royalties based on incorrect commodity pricing or are improperly deducting postproduction costs from royalties, or both. Landowners will need assistance from an experienced counsel to work with a royalty auditor to ensure that royalty payments are properly being paid and any underpayments are recovered.

David J. Wigham is a second-generation oil and gas attorney at the law firm of Roetzel & Andress, with more than 25 years of experience in the industry. He maintains offices in Akron and Wooster, Ohio, and can be reached at 330-762-7969.

HOLIDAY WRAP-UP SALE

Stop in for these great savings and more for best selection.

TRAVEL TRAILER

FIFTH WHEEL

2017 PRIMETIME AVENGER 26BK

2017 PRIME TIME CRUSADER LITE 28RL

#134011

LIST $20,880

NOW

#125679 LIST $39,433

MOTOR HOME

MINI PARK MODEL

2017 FOREST 2017 THOR FOUR RIVER WILDWOOD WINDS 23U #129751 39FDEN LIST $83,228

NOW

#122652 LIST $43,153

51,998 $29,999 $12,999 $27,999 $52,995 ONLY

$115

AL-10508703

PER MO*

GasandOilMag.com

Sleeps Ten, Outside Kitchen

NOW

ONLY

$219

PER MO*

Light Weight

$

ONLY

$359

PER MO*

Sleeps Six

NOW

ONLY

$229

PER MO*

Mini Park Model, Residential Appliances

OhioGas&Oil 17

Trump Administration Will Focus On Abundance Of Issues, Including Energy

O

Shawn Bennett • Ohio Oil and Gas Association

ne thing is for certain. The electorate may be in but the jury is still out when it comes to what will happen during a Trump presidency. There have been many predictions, but when the rubber hits the road there is a limited amount of change that will be able to take place over the next four years.

do to help or hurt an extractive industry? In one word, regulation. In a recent survey of 600 executives by Grant Thornton/Hart Energy, more than one-half of respondents indicated that regulatory hurdles and delays were a top business risk for their companies.

I don’t believe it is any secret that President Obama abused In order to look forward we have to understand how we got his executive authority to circumvent what he perceived as here in the first place. In 2008, Obama won Ohio’s oil/gas and a congressional roadblock to passing his policy priorities. coal counties by a margin of 39,955 votes. In 2016, Trump won During his two terms in office, there were 250 executive them by a margin orders and more of 112,546 votes, a than 230 “executive swing of 152,501 memoranda” issued votes from 2008.

by President Obama.

Despite consisting While these orders largely of sparsely and memoranda populated areas, the ventured anywhere vote swing in those from education counties accounted to government for approximately debt, there were a third of Trump’s plenty that were a margin of victory in direct threat to the Ohio. domestic production of oil and natural That large shift was gas. due in large part to Trump’s pro coal, A Clinton presidency oil and natural gas would likely have message as well as been much of the Clinton’s very anti same.

Secretary coal, oil and natural Clinton was quoted gas message. The more interesting impact was that Clinton as saying that with her massive amount of regulations there underperformed with union labor members. Trump won would not be many places left in our country to drill. Given the union vote by 52% in the state. A dramatic improvement this misguided rhetoric, our country under a President over the 37% Romney took home just four years earlier. The Clinton could expect a defacto ban on domestic oil and gas change in support can be attributed to one simple message. production.

Jobs. It is very hard to vote for a candidate that wants to see the industry that has provided a significant amount of work In a recent U.S. Chamber study, they looked at what a ban for their members face an administration laser focused on on hydraulic fracturing would actually mean to the United its demise.

States as well as Ohio. The results were alarming. The U.S. would be projected to lose 14.8 million jobs; gasoline and Since commodity prices and production costs are the true electricity prices would almost double while natural gas drivers of oil and gas development, what can a President prices would skyrocket to over $12 per MMBTU. Here in

18 OhioGas&Oil

GasandOilMag.com

Ohio, the state could expect to lose 397,000 jobs and the cost of living for the average family could go up by an estimated $4,000 a year.

Those projections should be a cause for concern for every American trying to provide a better life for their families.

However, as proven by this year’s election, people believe those concerns were heard and understood by Donald Trump which is why they elected him President. While there is a limited amount of action President elect Trump may take to rollback existing regulation, there are a few big-ticket items that should be at the top of his list. For the oil and gas industry, the Obama Administration’s hydraulic fracturing rules pertaining to minerals managed by the Bureau of Land Management are a serious issue for operators in the western portions of the United States and to a lesser extent the Wayne National Forest in eastern Ohio.

Hydraulic fracturing has always been regulated by the states and these overaggressive rules have been weighing heavily on those operators’ minds.

One of the major issues for operators in the state of Ohio will be the removal of pending rules on methane emission standards that target existing oil and gas facilities.

These pending rules could do irreparable harm to the conventional oil and gas producer who operates a large number of marginal wells. If allowed to go forward, the new regulations will likely cause these wells to be capped and plugged prematurely thereby leaving much needed resources in the ground that will never have the opportunity to be tapped again.

Congressman Bob Gibbs recently stated, “EPA’s WOTUS rule is an excessive expansion of federal authority with no return on water quality improvements. It is time for the EPA to begin treating the states as partners rather than adversaries.”

In the coming weeks and months it will become clear what the President elect, and Congress, will be able to accomplish in regards to this very important sector of the economy.

By design, our Federal system moves slow and is hard to change. However, those rules that have not been fully implemented will be the easiest way for the President to chart a new course for the oil and gas industry.

While history will be the judge of a Trump presidency, those in Appalachia are the ones who helped to deliver the race for him and stand to benefit the most considering the energy sector plays a vital role in the success of our region.

This industry, just like every other industry, relies on consistent and common sense regulation. Let’s just hope we return to that type of sensibility over the next four years and allow Appalachia to prosper once again.

Another issue that may be addressed, is the opposition to pipelines that we have seen creep up over the past several years. It seems that activists have turned their attention from exploration and production and moved to blocking important pipeline projects from ever being placed in service.

Ron Braucher, Owner

This opposition has caused projects to be delayed or simply abandoned. If we look closely at the Keystone XL pipeline or even more recently the Dakota Access pipeline, activists have found a close ally in our current President who has held up or blocked projects that have met their regulatory requirements. Under a Trump Presidency we anticipate requests by activist groups to stop such projects will be met with much more scrutiny, thereby allowing those projects to move forward in a more expeditious manner.

GasandOilMag.com

“Put Our Experience To Work For You”

AL-10393795

Another issue, that is not oil and gas specific, is US EPA’s expansion of the definition of “Waters of the United States” or more commonly known at WOTUS. WOTUS is currently facing a 31-state lawsuit opposing the Obama administration’s far-reaching rule in federal court. As Ohio

Fleet Maintenance • Inspections Full Service • Trailer Repair Farm Equipment Repair Towing Available

330-488-2000 1-888-488-2009 Located on Rts. 30 & 44 • 383 East Walnut • East Canton OhioGas&Oil 19

Don’t Give up on

Those Mineral Rights Yet

T

Andrew P. Lycans Lycans • Attorney

he Ohio Supreme Court’s recent decision in Corban v. Chesapeake Exploration, L.L.C., 2016-Ohio-5796 that the Dormant Mineral Act of 1989 is not self-executing dealt a seeming death blow to claims that ancient oil and gas reservations had terminated automatically with the severed interest vesting in the surface owners with nothing being recorded in the chain of title. However, based upon current case law, there are still limited circumstances in which the surface owner might be able to prevail in a title dispute, even though the surface owner has not complied with the notice and recording provisions found in the Dormant Mineral Act of 2006.

Prior to 1925, Ohio law required the use of words of inheritance to create a fee simple estate. The words of inheritance or perpetuity were required to show that an owner’s interest was not limited to his life alone, but passed to his heirs or beneficiaries. The Ohio Supreme Court held in 1884 in the case of Ford v. Johnson, 41 Ohio St. 366, 367 (1884) that elementary property law required the use of the word “heirs” to create something other than life-estate in real property. This requirement was eliminated when the Ohio legislature passed General Code § 8510-1 in 1925, and is currently found in Ohio Revised Code § 5301.02, which states: “The use of terms of inheritance or succession are not necessary to create a fee simple estate.” Thus, a grantor will be assumed to have conveyed everything he owned with regard to the property, unless the document clearly indicates that the grantor intended to convey something else.

In Ewing v. McClanahan, 33 Ohio App. 3d 46 (1986), the Twelfth District Court of Appeals recognized that title documents must be evaluated by the state of the law at the time the document was signed. Thus, for documents signed after 1925, no words of inheritance would be required to convey everything the grantor owned. Prior to the revision of the law in 1925, however, words of inheritance would be needed to create something other than a life estate in the party receiving the interest.

of the Dormant Mineral Act of 2006. For instance, at least one court has held that notice on the severed mineral owner must at least be attempted by certified mail.

Further, the Ohio Supreme Court has held that, after receiving such a notice, the severed mineral interest owner then has 60 days to file a preservation claim to avoid abandonment. Thus, surface owners could expend significant resources tracking down the current owner of the severed mineral interest who has done nothing with that interest for decades, only to then have that person file a preservation claim, leaving the surface owner with nothing to show for their efforts—and this assumes that it’s even possible to determine who currently owns the severed mineral interest, as transfers upon the death of one owner are often not recorded in the county where the property is located.

If the minerals were reserved prior to the enactment of General Code § 8510-1 in 1925, however, then the surface owner may have another option. If the reservation did not include words of inheritance, the Ford and Ewing cases suggest that the grantor reserved nothing more than a life estate, which would terminate upon the death of the grantor with the reserved minerals reverting to the owner of the surface. Any grantor who made such a reservation prior to 1925 would almost certainly have died in the ensuing 91 plus years. Thus, surface owners may be able to reclaim their mineral rights by bringing a quiet title action seeking a determination that the life estate has terminated and that the mineral rights reverted to the surface owner upon the death of the person who reserved those minerals almost a century or more ago.

Mr. Lycans is a member of Critchfield, Critchfield and Johnston, Ltd., a law firm with extensive experience in all aspects of the oil and gas industry which has been representing landowners, producers, drillers, service providers, and others in the industry for over 75 years.

How might this benefit surface owners who seek to claim ownership of the minerals underlying their property?

After the Corban decision, such surface owners would seemingly have to comply with the onerous provisions 20 OhioGas&Oil

GasandOilMag.com

Media Hype Aside, Energy Industry

Is Exceptionally Safe

T

Robert Bradley Jr. • Institute For Energy Research he new movie “Deepwater Horizon” chronicles For natural gas, 99.999997 percent of cases experience no the 2010 oil spill in the Gulf of Mexico. This is a spills. Since 1984, pipeline leaks have decreased 94 percent. story worth telling, but the Deepwater disaster should not indict the entire energy industry.

Industry officials spend billions on rigorous inspections and maintenance. Recently, they’ve increased inspections, Oil and natural gas firms actually have an exceptional used new devices to detect weaknesses in infrastructure safety record. Thanks to improved technology and and required operators to craft unique inspection safety standards, incidents like Deepwater are extremely protocols. rare. Historically, only two accidents occurred besides Deepwater: the 1969 Santa Barbara Oil Spill and the 1989 Ironically, it’s green extremists that make pipelines unsafe.

Valdez Oil Spill.

Misguided environmentalists frequently vandalize pipeline construction sites. In Iowa, extremists protesting That’s still too many from the industry viewpoint, but the Dakota Access Pipeline set fire to construction sites, energy development involves unique risks. Workers causing $1 million in damage. In North Dakota, four handle heavy equipment and toxic material. That’s why security guards were injured and over two dozen people developers have created new technologies that reduce pepper sprayed after a violent pipeline protest. danger. Automated machinery reduces the chance of human error. New water pipelines reduce waste. And Extrapolating larger danger from the Deepwater tragedy improved drilling cuts the amount of time workers spend and installing punishing regulations beyond newly underground. updated best practices has real economic costs.

Moreover, energy firms have worked closely with the Today, the oil and natural gas sector supports over nine Occupational Safety and Health Administration (OSHA) million jobs and generates substantial economic activity. to develop new safety standards for equipment posing the highest risks.

Take Colorado, where the industry now supports over 213,000 jobs and represents over nine percent of state GDP. As a result, a new OSHA study shows that the average Additionally, state tax revenue from energy firms has injury rate on new oil rigs is a third less than that of older jumped by 50 percent since 2010. That’s money that can be rigs. invested in schools, roads, and other public infrastructure.

Meanwhile, the overall fatality rate for the oil and gas industry has dropped 60 percent since 2003. And the rate of work-related injury and illness has fallen 40 percent since 2005.

This is the American energy economy in action. But regulations prevent it from reaching its full potential.

Under President Obama, the Environmental Protection Agency has finalized nearly 150 new rules. Overall, EPA regulations cost $386 billion annually -- over 2 percent of These are substantial gains. As of 2014, the private sector GDP. suffered 3.2 job-related, non-fatal injuries per 100 fulltime workers. The energy industry, by comparison, had a Indeed, the anti-energy constraints could cost the oil and rate of only 2.1. And offshore drilling is even safer, with natural gas industry 830,000 jobs. an injury rate of just .5 per 100 workers.

The Deepwater Horizon spill was a tragedy. But it was Transportation is also incredibly safe -- especially also an isolated incident. The energy industry has driven pipelines. substantial safety and environmental improvements and is well on their way to zero accidents and zero spills.

Consider liquid pipelines. Since 1999, accidents are down 50 percent. Now, in 99.999 percent of cases, oil and Robert L. Bradley Jr. is the founder and CEO of the Institute for petroleum arrive safely at their destinations.

Energy Research.

GasandOilMag.com

OhioGas&Oil 21

Harrison County Industry Leaders Nicholas Homrighausen, left, Harrison County’s Executive Director of Community & Economic Development, speaks with Harrison County Commisioner Dale Norris, Harrison County Engineer Robert Sterling and Harrison County Commissioner William Host in front of some relays at an AEP laydown yard near Cadiz.

I

n eastern Ohio, Harrison County continues to see the “We are in the sweet spot of where most of the gas is separated benefits of the gas and oil industry despite a general slump and processed before going to market. That is on a steady rise.

“Furthermore, we just announced that a 1,000 megawatt power in drilling across the nation. plant is to be built in our industrial park.”

“Even in the aftermath of the Organization of Petroleum Exporting Countries flooding the gas and oil market, the In total, Harrison County has seen 382 permits issued and 328 industry remains a strong presence in the county,” Nicholas wells drilled with 270 of those producing as of November. As Homrighausen said. Homrighausen is the Executive Director of of that time, Chesapeake Energy was the leading producer.

Community and Economic Development in Harrison County.

The county also has seen a great deal of economic spinoff from He doesn’t deny OPEC’s actions have impacted the industry, the energy activity, Homrighausen said. An example is the but they haven’t crippled it. increase in sales tax revenue from sales at the four processing plants in the county. (Those facilities are the Utica East Ohio “It hurts the drilling a little bit,” he said. “But as far as the Plant in Scio, a MarkWest plant in Hopedale and two MarkWest midstream companies, they are continuing to grow. plants in Cadiz.)

“Also, interest from potential companies in our county has not slowed down.” Homrighausen believes the gas and oil industry has been steady in Harrison County in part because of the county’s location.

22 OhioGas&Oil

“The industry has been a shot in the arm and has given us hope to grow this county to its full potential,” he said. “This is our second chance to fill the county with as many diverse industries as we can bring here.”

GasandOilMag.com

Because of money received from the oil and gas leasing of countyowned land, the Harrison County Board of Commissioners has been able to provide funds of more than $140,000, on average, for water, sewer and infrastructure improvements to nearly every village in the county.

At present, the commissioners and Homrighausen are working on specifications and will seek bids for a countywide, water and sewer master plan.

“We want to take this opportunity to fix, improve and expand the county’s infrastructure,” he said. “We want to be ready for future growth throughout the entire county.”

With an eye to the future when the wells eventually run dry, Homrighausen and commissioners are placing a priority on the county’s business diversification.

“As I said, we want to attract as many diverse businesses and industries as possible to this area. So, when and if that does happen, we will still be flush with businesses and able to weather any fluctuation in one area of business downturn.

WO-10508287

“We definitely don’t want to put all our eggs into one basket.”

GasandOilMag.com

844-333-2754 • www.trs.rent

OhioGas&Oil 23

Chevron Donates Spill Response

Trailer to Harrison County

C

hevron Appalachia has donated and emergency response personnel who work tirelessly to a hazmat spill response trailer to keep our communities safe. The importance of their hard Harrison County’s Emergency Management Agency (EMA).

The trailer donation is part of Chevron’s close partnership with local first responders in the company’s regional operating areas including eastern Ohio, southwestern Pennsylvania and the West Virginia panhandle.

As part of its commitment to support local first responders, Chevron made both monetary and equipment donations to 49 different volunteer fire departments and 8 county first response agencies across its regional operating area totaling nearly $236,000. Specific to Harrison County, Chevron has made first response-related donations to the counties valuing $24,000.

“Chevron is very proud to support our local first responders

Jeremy Kulow and Eric Wilson from the Harrison Co. EMA office are shown with a hazmat spill response trailer donated by Chevron Appalachia. In addition to the trailer, the company also donated $3,500 to the Harrison Co. EMA and $3,500 to the Washington Township Volunteer Fire Department.

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

AultWorks Occupational Medicine specializes in treating work-related injuries and illnesses.

We are certified by the Ohio Bureau of Workers’ Compensation.

Our services include: • • • • • •

Injury Care Drug and Alcohol Screenings DOT and Pre-placement Physicals Pre-placement Physicals Random Management Programs Mobile Medical Unit

AL-10065808

www.aultman.org/aultworks 1-844-285-9675

24 OhioGas&Oil

Canton 330-491-9675

Alliance 330-823-8864

Orrville 330-684-4767

Carrollton 330-627-0091

GasandOilMag.com

Hydraulic Solution Center

The trailer came packed with hazmat spill response supplies and also includes operating space to set up an incident command center.

Your One-Stop Source For:

work cannot be overstated,” said Trip Oliver, Manager of Policy, Government and Public Affairs for Chevron’s Appalachian Mountain Business Unit. “We also recognize that it’s a privilege to operate in these communities. Giving back and partnering with stakeholders at the local level, including first responders, is a responsibility that we take very seriously.”

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

As local governments and first responders often face budget challenges, partnerships like this help ensure that the necessary resources and equipment are available to provide critical community safety services. Harrison County EMA director, Eric Wilson, thanked Chevron for their continued support, collaboration and commitment to community safety.

“Throughout the year, we’ve made important progress in upgrading our facilities and technologies, including 911 response capabilities, and Chevron’s generous donation helps further ensure that we have the equipment needed to keep our communities safe,” said Wi l s o n . “ W e ’ r e grateful for com mu n it y partners like Chevron and for their support of local first responders.”

GasandOilMag.com

330-601-0430 YOUNGSTOWN

1034 N. Meridian Rd. Youngstown, OH 44509

330-779-5570 CHARLESTON (DUNBAR) 901 Dunbar Ave. Dunbar, WV 25064

304-766-0070 WHEELING

WO-10473683

A look inside the trailer which will act as a base for first respondents.

WOOSTER

210 S. Jefferson Rd. Wooster, OH 44691

3600 Wetzel St. Wheeling, WV 26003

304-232-6006

E-mail: cwooster@bwrogers.com • www.bwrogers.com OhioGas&Oil 25

Dominion grants fund projects, which include monitoring of wetlands and energy applications.

Dominion Grants

Enrich Energy Applications

S

even Ohio colleges and universities were able to in southern Ohio.” share $150,000 in educational grant money given

by Dominion.

According to its website, Dominion grants up to $50,000 in grant money toward proposals that benefit areas Among the seven winners were higher educational such: as business practices; trades such as welding or facilities such as Kent State University at Stark, Cleveland construction; engineering; environmental sciences; State University and the University of Akron. Out of energy-related subjects such as alternative energy of the seven schools that received grant money, four of conservation and technical subjects, such as information them were engineering grants with one technical, one systems and electronics. environmental and one energy-related grant.

Seaton, who is on the committee that selects Dominion “It depends on what’s going on in the colleges and Higher Educational grant winners, said some of the what they’re seeking to do,” said Sharon Seaton, senior winners are determined based on what the committee community affairs representative for Dominion. “This would “prefer or like to see happen in a college or year we happen to have a majority of engineering where university” setting so they can support those programs, I know a few years ago we had a lot of craft categories but they also measure to see if some projects are because of the welding situation and all the developments financially feasible.

26 OhioGas&Oil

GasandOilMag.com

“There are a lot of things we consider when we’re reading all of them and judging,” she said. “We try to funnel the dollars we give to higher education through the higher educational grant programs.”

The grant is available in Washington, D.C,. as well as the states of Connecticut, Maryland, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Virginia and West Virginia.

The Wired Wetland Kent State University at Stark received a Dominion grant of $25,000 to benefit its pond and wetland research area which, according to its website, was established as an EPA-approved wetland research area in 2007.

Greg Smith, an assistant professor of biological sciences, said the area is used to research water quality, hydrology, understanding water tables and issues involving water quality. He said it serves as a “control site for water quality” and a “standard” to be compared with other water sites to measure potential impacts.

He said Kent State University at Stark received this grant through the outreach component of the wetland program, where local schools other than Kent State can use the real-time data given by the wetland equipment to apply to predictions about events such as the impact of heavy rain on various measures of water quality.

“This is not a project that’s going toward developing new technologies for the oil and gas industry,” he said.

“It is a project that’s going toward training students who may — and some almost certainly will — be working in the oil and gas fields.”

Smith said the grant money will be going toward sustainability in the program, such as keeping up with the maintenance of its equipment. He said there is a hope to reach out to more schools, preferably high schools and some middle schools.

“The part we hope will grow is that part where we’re connecting to local schools and getting middle and high school students involved in the project as well as our own university students,” he said.

Story continued on page 28

WHITESIDES HAS A TRUCK FOR YOU! Gas • Diesel • 1 Ton • 3/4 Ton • Longbed • Shortbed Crew Cab • Full Size • Medium Size

Ph: 740-432-2347 or 1-800-887-0934

Ask about our

Credit Approval

877-243-8256 • www.whitesidesofcambridge.com • e-mail: cambridge@whitesides.com • Visit Us On autotrader.com TALK TO OUR EXPERTS! YOUR SATISFACTION IS OUR GUARANTEE! WE WILL NOT BE UNDERSOLD!

Guaranteed

1051 Southgate Parkway Cambridge, OH

whitesidesofcambridge.com

CA-10480906

GasandOilMag.com

OhioGas&Oil 27

Story continued from page 27

Chemical Reactors for Research

The chemical engineering program at Cleveland State University received a $15,000 grant to purchase a reactor experimental service unit for its undergraduate programs.

Dr. Joanne Belovich, a professor and chair of the Department for Chemical and Biochemical Engineering, said the reactors will be used for instructional labs, where undergraduate students can learn about chemical reaction processes.

“Using this service unit plus the reactor, which we purchased separately, the students can do all sorts of chemical reactions. [They can] measure rates of mixing and test out feedback control systems on the reactors.”

—Dr. Joanne Belovich In the case of oil and gas, she said it would teach students how fracking works. She said some of the graduates in the program have moved on to working in the oil and gas industries or worked as chemical producers.

“Chemical engineering is one of the professions used in the petrochemical industry,” she said. “In any process that uses crude oil or natural gas or natural gas liquids, the conversion of those raw materials into useful products probably involves some chemical engineering processes along the way.”

Belovich said the service units act as frameworks for a chemical reactor. The service unit has the ability to pump fluids in and out of the reactor to help stimulate chemical reactions. They also feature temperature control modules and the “ability to program control loops in a service unit,” as well as a “data acquisition system.”

“Knowing the oil and gas industry does have need for chemical engineers, that’s who we’re educating,” she said. “More people to go out into the workforce in that field.”

Drones for Surveying and Mapping The University of Akron received a Dominion grant worth $30,000 to support the school’s surveying and mapping program.

Gary Schuller, professor and program director of the surveying and mapping program, said the grant went toward modernizing the program, which used traditional methods to obtain information on the land.

“Anything that has geospatial orientation, location, coordinates, layout or plans [are what] we’re using in some manner. Oil and gas certainly have a lot of geospatial needs,” he said. “[This involves] mapping of the oil and gas pipelines and deposits and laying out the utilities when they’re being constructed.”

Schuller said the University of Akron hosts the only program that accredits bachelor degrees in professional surveying. He said his program helps “prepare our surveyors with the technical, legal and academic knowledge they need to work in that profession.”

One of the ways Schuller said he wants to “modernize our curriculum” is through the use of unmanned aerial systems, or drones. He said these drones can be used to help survey an area and take “hundreds of images” from the air to create a 3D model to determine the contours and other features of an area.

“It’s a way to collect a lot of geospatial data in a hurry and to cover more ground efficiently in a more complete and robust way,” he said.

Due to FAA regulations involving drones, he said one of the challenges that will come with the program will be to have aspiring surveyors pass an aeronautical knowledge test. This will involve demonstrating knowledge in reading aeronautical charts, airspace communications and a respect to the regulations in place.

The department owns six reactor service units, which can be analyzed by a class of up to 18 students.

She said her department was able to make “a compelling case because our enrollment has increased almost fourfold in the past seven or eight years.”

28 OhioGas&Oil

GasandOilMag.com

Construction Quick Tip:

Ask Your Builder About Disaster-Resilient Materials

S

egments of the home-building industry indicate they are up to the challenge of improving occupant safety. This is welcomed assurance seeing that weather extremes now seemingly occur in every season and are bringing far more intensified blasts of wind, rain, heat, drought, ice and snow.

the construction site. Instead of the lengthy process of building a wood frame, ICFs interlock (like Lego) to assemble a rock-solid envelope. According to Nudura, a leading innovator in this field, the immediate homeowner benefits are as follows: you get impact-resistance from wind up to 250 miles per hour; a fire-resistance rate up to four hours; a greater sound barrier for more peace and quiet inside; energy cost-savings up to 50 percent; a home with even temperatures in every room; and thanks to far less wood everywhere causing mold and toxins, occupant breathing is cleaner and easier.

Did you know that owning a stronger, safer, impactresilient house — and one that requires far less energy consumption to heat and cool — is already possible due to advancements in green-construction technology? For a decade and more, eco-conscious homeowners have been opting for a concrete wall-building system to replace The material planned for your walls is a decision to standard wood framing. Called the ICF system, these be made early in the process and more information is insulated concrete forms are preassembled before reaching available online at nudura.com.

Williams Toyota Lift

AL-10269253

Sales • Service • Rental • Parts

Supplying the Material Handling Industry for Over 40 Years!

9462 Main Ave SE East Sparta, Ohio 44626 GasandOilMag.com

Phone (330) 866-2121 Fax (330) 866-3701 OhioGas&Oil 29

Chevron Gift Boosts Oil and Gas

Workforce Program

S

Sara Klein • Dix Communications

tudents in Stark State College’s ShaleNET Share program received a big boost this autumn thanks to a donation from industry partner Chevron Corporation, which added $215,000 in funding to a $506,483 grant award from Ohio’s Education Innovation Program to support the project.

The gift, which was announced Oct. 19, is part of Chevron’s Appalachia Partnership Initiative, a $20-million effort designed to address education and workforce development in 27 counties across southwest Pennsylvania, northern West Virginia and eastern Ohio.

Chevron’s partnership with ShaleNET Share will seek to enrich integrated workforce education programs at Stark State by developing curriculum resources, supply chain connections, post-secondary training programs and skilled trade certifications.

“Identifying local workforce gaps and ensuring that the right tools, training programs and resources are aimed at creating long-term regional job opportunities is a key Chevron priority,” said Trip Oliver, manager of Policy, Government and Public Affairs for Chevron’s Appalachian Mountain Business Unit.

“We’re excited and proud to support Stark State College’s growing ShaleNET Share project and thank President (Para) Jones for her leadership as well as others involved in these important efforts focused on critical educational opportunities that will strengthen and better prepare the Tri-State area’s workforce for success,” he commented.

Stark State’s oil and gas technologies program offers workforce training that is based in the college’s $3.7 million Well Site Training Lab located in downtown Canton, Ohio. The college is one of four ShaleNET hubs in the nation that is supported by a U.S. Department of Labor Employment and Training Grant to offer oil and gas industry-approved training.

The ShaleNET Share program extends that training to students at partner schools Eastern Gateway Community College, Hocking College, and new partner Belmont College.

Dan Schweitzer, who directs Stark State’s oil and gas

30 OhioGas&Oil

technologies program, said Chevron has been providing scholarship support to help students enrolled in oil and gas certificate and degree programs at the college since the beginning of ShaleNET. “Chevron was a strong industry partner for the original ShaleNET Department of Labor grant,” said Schweitzer, adding that Chevron extended its scholarship support after the original ShaleNET grant ended.

Chevron’s recent gift will help ShaleNET Share students with room and board costs during their participation in an intensive 10-week summer training program. The scholarships are also providing $500 in tuition assistance for each student.

Schweitzer said StarkState will also use a portion of Chevron’s donation to purchase equipment for a SCADA system called “OpenEnterprise” that was developed by Bristol Babcock, a company that specializes in engineered systems and other products for oil and gas, process control, wastewater treatment and other industries.

SCADA, the acronym for Supervisory Control and Data Acquisition, is a type of computer system that gathers and analyzes real-time data to monitor and control large pieces of equipment or industrial plants such as those used in oil and gas refining operations.

Up to 80 students can enroll in the ShaleNET Share program each year. After completing 40 hours of core technical classes at their home institutions, students spend 20 hours on field-specific, hands-on courses at Stark State. A graduate of the program is then prepared to become an instrumentation and measurement technician or a measurement and mechatronics technician, positions that Schweitzer said are in high demand.

“Dominion, Momentum M3, Marathon, Williams, and Chesapeake have each individually requested measurement specialization with electro-mechanical, technician-level curriculum be added to our degree canon,” Schweitzer stated.

Instrumentation and electronic technicians are employed in all sectors of the oil and gas industry.

GasandOilMag.com

Working at well pads, on pipelines and at meter sales points, instrumentation and electronics technicians install, maintain and repair electronics, instruments, and automation and measurement equipment.

The field of mechatronics combines the principals of mechanics, electronics and computing. Mechatronics technicians install, maintain and repair automated

systems at oil refineries, natural gas and related processing plants, well pads, sales meter points, pipelines and compressor stations.

Schweitzer explained that the mechatronics component of ShaleNET’s measurement and mechatronics training offers a crossover skill-set for careers in the natural gas midstream and downstream industries, in advanced manufacturing, and in many other industries where process control is an integral part of daily operations.

The measurement component is a fundamental skill set that instrumentation and electronics technicians must master and that Schweitzer said represents an important upward career path from instrumentation and electronic technician to measurement technician.

OHIO WELL ACTIVITY by the numbers

MARCELLUS SHALE

18 Wells Permitted Wells Drilling 8 Wells Drilled Not Drilled 21 Wells Producing Inactive Plugged 44 Total Horizontal Permits

462 128 278

UTICA SHALE

Wells Permitted Wells Drilling Wells Drilled Not Drilled 1432 Wells Producing Inactive Plugged 2300 Total Horizontal Permits

Data as of 11/12/16 Source: Ohio Department of Natural ResourcResources GasandOilMag.com

OhioGas&Oil 31

TOP COUNTIES WITH HORIZONTAL DRILLING ACTIVITY

BY NUMBER OF SITES

1. Carroll County 509 2. Belmont County 393 3. Harrison County 382 4. Monroe County 298 5. Noble County 202 6. Guernsey County 191 7. Columbiana County 144 8. Jefferson County 90 9. Mahoning County 30 10. Washington County 21 11. Tuscarawas County 20 12. Portage County 15 Trumbull County 15 13. Stark County 13 14. Coshocton County 5 15. Morgan County 3 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 WE L SIT WELL SITES ITES IIN N VAR V VARIOUS A OU AR US SS STA STAGES: T GES GES: PERMITTED, PERMITTED E M T ED D, D DRILLING DRILLING, LLING, DRILLED, D I LE LED, ED D, COM COMPLETED, PLETED PL LET ETED PRODU PRODUCING PRODUCING, PR RODUCING O UCING I G PLUGGED LUGG SOUR SOURCE: S OUR RCEE O OHIO H O DEP DEPARTMENT RTMENT O OF NA NATURAL URAL RESOURCES S U E A AS SO OF 11/12/16 1 11/112/16 11/

32 OhioGas&Oil

25

100

200

400 GasandOilMag.com

Go to the experts at Airgas for all your gas, safety, service & equipment needs Go to the experts at Airgas for all your gas, safety, service & equipment needs

NEW Airgas location in Cambridge, OH

Airgas operates more than 1,100 locations nationwide including 8 nearest NEW Airgas location in Cambridge, OHyou. Visit www.Airgas.com for more location and product information.

Airgas operates more than 1,100 nationwide Airgas Canton Airgaslocations New Philadelphia including9057 8 Beldon nearest Ave.you.

SE Visit 104www.Airgas.com 11th St. NW OH 44707 Newinformation.

Philadelphia, OH 44663 for moreCanton, location and product 330.453.8414

330.339.6211

Airgas Mansfield Airgas Wooster Airgas Youngstown Airgas Canton Airgas New Philadelphia Longview Ave.104 E 11th St. 115NW N Smyser Rd. 905 Beldon 45 Ave. SE Wooster, OH Canton, OHMansfi 44707 eld, OH 44903 New Philadelphia, OH44691 44663 419.524.0511 330.345.0995 330.453.8414 330.339.6211

1055 North Meridian Rd. Youngstown, OH 44509 330.793.9871

Airgas Airgas Scio Airgas Cannonsburg AirgasAirgas Cannonsburg Airgas Mansfi eldCambridge Airgas Wooster Youngstown Road 203 NRd. Eastport St. 1718Meridian Route 980Rd. 1718 North Route 980 45 Longview60969 Ave.Southgate E 115 N Smyser 1055 Cambridge, OH 43725 Scio, OH 43988 Canonsburg, PA 15317 Canonsburg, OH PA 44509 15317 Mansfield, OH 44903 Wooster, OH 44691 Youngstown, Airgas now offers nitrogen services and solutions 740.432.0320 740.945.1385 724.745.7520 724.745.7520 419.524.0511 330.345.0995 330.793.9871 to process the industries for purging and pipeline

applications to optimize plant and pipeline operations, Airgas Cambridge further enhancing the quality and breadth of Airgas’ service and product offerings for our customers.60969 Southgate Road

Cambridge, OH 43725 Airgas now offers nitrogen services and solutions Think Airgas, Your single source for supply, service and support.

740.432.0320 to process the industries for purging and pipeline

YoungstownAirgas Cannonsburg Airgas Scio 1055NNorth Meridian 203 Eastport St. Rd.1718 Route 980 Youngstown, OH 44509 Canonsburg, PA 15317 Scio, OH 43988 330.793.9871 740.945.1385 724.745.7520

The Right Products. The Right Locations. The Right Expertise.

applications to optimize plant and pipeline operations, further enhancing the quality and breadth of Airgas’ service and product offerings for our customers.

WO-10508284

WO-10495378

Think Airgas, Your single source for supply, service and support.

The Right Products. The Right Locations. The Right Expertise.

J&M

Carpentry LTD

‘Generations of Amish Craftwork with Modern, Professional Site Management’

Agricultural Residential Commercial Any Size Custom • Pole Barns • Garages • Barns • Stables • Riding Arenas • Horse Barns • Decks • Outbuildings • Metal Roofing

FREE

“The Quality You Want For Your Project”

LARGE Scale Buildings

Estimates 330.231.0125

Expert Reroofing

AL-10454264

Metal

Conventional

Most Jobs Are Complete In Just Two Days

jmcarpentryltd.com

Fredricksburg, Ohio 44627