January 2014 Ohio Gas & Oil Magazine-South by Gannett NEO

Ohio JANUARY 2014 • www.ohiogo.com

A FREE MONTHLY PUBLICATION

2014 look ahead Industry experts

EXPO SHOWCASES NEW

EQUIPMENT, IDEAS

ODNR POISED TO REGULATE

WELL CONSTRUCTION

Farming: The Armand Family Business Since 1941 But A Pipeline Threatened That.

“We feared it would be a mess,” Albert Armand, Farmer The Armands turned to Goldman & Braunstein to get results. Final Settlement • Five times more money than initial offer • Land integrity preserved for future generations “It is important for all of us to do whatever we can to look after the quality of the land we grow food on. Our attorneys worked very hard to make that happen.”

Experienced eminent domain attorneys only representing landowners

Negotiate easements that protect your property, maximize your compensation and ensure your safety

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614-229-4512 or 888-231-2554 bluegrasspipelineresults.com • ohiopipelineresults.com • www.gblegal.net 500 S. Front Street, Suite 1200, Columbus, OH 43215 We get results for you, not the pipeline companies. Member of the Ohio Farm Bureau 10211941

Dix Communications - Gas & Oil

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January 2014 Edition

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Gas & Oil

January 2014 Edition - Dix Communications

Table of Contents 4

A Landowner’s View

Finishing Touches to Gas & Oil Land Lab Judie Perkowski / Dix Communications

ODNR to Regulate Well Construction

Tax Break for Natural Gas Vehicles

Defining Abstractors

Abstractors Part 2

Cambridge ‘Selling’ Its Location

Shrugging Off Winter’s Bite

Airport Upgrades

Controversial Well Ordered Plugged

Class Receives Samsung Grant

University Looks at Industry Careers

Benefits Will Reverberate Throughout State

Drilling Decision Leaves Future Uncertain

Dominion to Deliver Gas to Ohio

Fortis College Offers Welding Courses

Atlas Oil Announces New President

Ohio Court Sets Arguments in Drilling Case

Hill Named Regional Director for Ohio

Opinion: Industry Benefits Undeniable

Goldman & Braunstein / Attorneys

Laurie Huffman / Dix Communications Marc Kovac / Dix Capital Bureau

Judie Perkowski / Dix Communications

Judie Perkowski / Dix Communications John Lowe / Dix Communications

James MacPherson / Associated Press

Dan Davis / Dix Communications

Holly Bilyeu / Dix Communications

Christine Holmes / Dix Communications Judie Perkowski / Dix Communication

Marc Levy / Mark Scolforo / Associated Press

Alison Stewart / Dix Communications

Lauren Sega / Dix Communication

Southern Zone Edition

PUBLISHERS 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

David R. Hill / V.P. Ohio Oil adn Gas Association

Dix Communications - Gas & Oil

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

COVERAGE AREA OTTAWA

ARE UNION DELAWARE GN

KNOX

MADISON

FRANKLIN LIN

FAIRFIELD

PERRY

HLAND

CARROLL

HARRISON

BELMONT

MONROE

MORGAN WASHINGTON

HOCKING ATHENS

MEIGS

NORTHERN ZONE SOUTHERN ZONE PIKE

JACKSON

Ohio

Well’s Brine Water can Fight Icy Roads

Mac LTT Expands Out of State

Franklin Equipment Opens New Location

House Considers New ‘Frack’ Tax

OOGA Official Comments on Tax Package

Oilfield Expo

Protecting Your Oil and Gas Interests

Obama Pushes for more Oil Production

Supply Industry Feeling Gain

End of the Year Tax Talk

Tax Revenues Continue to Climb

Safety Program Looks at Burner Management

Markwest in Joint Venture with Gulfport Energy

Jobs Outlook High for 2014

EQT Corp. Announces 2014 Forecast

Caldwell Receives Part of Oil Lease Payment

State Grants Fund Gas & Oil Education

State of American Energy 2014

COLUMBIANA

GUERNSEY

NOBLE

PICKAWAY AY

VINTON

ROSS

SUMMIT

COSHOCTON

LICKING

FAYETTE

STARK ST

HOLMES

MORROW ORROW

MAHONING

JEFFERSON

MARION

WAYNE YNE

PORTAGE

TUSCARAWAS

MEDINA ASHLAND

DIN

RICHLAND

WYANDOT

RD FO AW

GEAUGA TRUMBULL

LORAIN

HURON

SENECA

COCK

CUYAHOGA

ERIE

SANDUSKY

January 2014 Edition

Judie Perkowski / Dix Communications Kyle McDonald / Dix Communication

Marc Kovac / Dix Capital Bureau

Judie Perkowski / Dix Communications Frank McClure / Attorney

Dina Cappiello / Associated Press

Kelley Mohr / Bobby Warren / Dix Communication

Marc Kovac / Dix Capital Bureau

Shawn Bennett / Energy in Depth, Ohio Judie Perkowski / Dix Communication

Rob Todor / Dix Communication

Lisa Loos / Dix Communication

Marc Kovac / Dix Capital Bureau

Gas & Oil

January 2014 Edition - Dix Communications

Southern Zone Edition

A landowner’s view Goldman & Braunstein Attorneys

ore than 100 pipelines are currently planned or under construction in Ohio and it’s safe to say that more are on the way. Thus, the number of landowners affected by these projects is growing rapidly, particularly in areas where farmland is prevalent. Each landowner we represent—and we only represent landowners, never pipelines—has unique concerns when it comes to a pipeline easement agreement. Compensation is a major issue, but so is how their land is used, potential future development, and, of course safety. What is consistent though in each of these cases is that when the landowner has legal representation from an experienced eminent domain attorney, the deal they end up with is almost always far better than the initial offer from the pipeline company. The following landowners, each of whom we represented, have agreed to share their personal stories in hopes of helping other landowners who may face similar situations.

Preserving A Family Farm

arming is the Armand family business. The Armands operate two farms totaling more than 900 acres. Their properties include The Harper Valley Farm that has been owned and run by the Armand’s since 1941. In early 2012 a surveyor showed up at Albert Armand’s door. That’s when he learned that the Enterprise Pipeline would affect both properties. “We weren’t happy about the prospect of a pipeline,” Armand explained. “In the best case scenario we feared it would be a mess for us.” You see, the Armand’s have a history with pipelines. Armand remembers when his grandfather negotiated two pipeline easements through the property in the early 1950’s. They lost a crop and the land was never restored properly. So this time around the integrity of the property was Albert Armand’s main concern. “The dollar value was not out of line,” Armand said. “But we wanted guarantees that the ground would be as productive after they left and that the work would be environmentally responsible. We also wanted assurances that when they left, we would not have to worry about inadvertently violating any regulations in terms of erosion or pollution.” “I actually tried for quite some time to work out a deal regarding land quality issues, but the land agent would not cooperate. The answer was always ‘we can’t do that. We can’t do this.’ The land agent implied that if I didn’t sign, we would lose in court and get less money than what they were now offering.” That’s when Armand sought legal representation. Eminent domain attorneys Michael Braunstein and William Goldman stepped in, collected all the information the Armands could provide, and ultimately negotiated what Armand describes as “a more equitable settlement,” that included five times more

money than had been originally offered by the pipeline company. In addition, Armand is confident that the integrity of his family’s land will now be preserved for future generations. “It is important for all of us to do whatever we can to look after the quality of the land we grow food on. I wanted to make sure that when this pipeline project was finished the land was as good as it could be. Our attorneys worked very hard to make that happen.”

Studio 1492 Photography The back row from left to right is - Ellie Armand, Diane Armand, Albert Armand, Lexie Armand - Front row is Will Armand with dogs Shadow and Reese.

www.OhioGO.com

Dix Communications - Gas & Oil

January 2014 Edition

Can That Easement Stand?

ike Albert Armand, Ken Detterman comes from a long line of farmers. His 110-acre farm has been in his family since 1836, when his great- great-grandfather bought it. Ironically, Detterman’s grandfather also dealt with a pipeline and signed an easement agreement back in 1942. Now Sunoco Logistics has a pipeline that is routed across the Detterman land. And while no product has been pumped through that old line in more than a decade, Sunoco Logistics still claimed the 1942 easement was valid along with the provisions that went with it. “My grandfather got a grand total of around $50 for that easement,” Ken Detterman explained. “I can’t believe any court in the country would uphold that judgment all these years later.” Upon learning a number of his neighbors were facing the same situation, Detterman set up a landowners’ meeting and then created a landowners’ group. The Ohio Farm Bureau referred him to Goldman & Braunstein. “The first attorney we met with worked by the hour, so we didn’t know how much it would ultimately cost us,” Detterman explained. “Goldman & Braunstein work on a contingency fee. We were more comfortable with that.”

Goldman & Braunstein have hammered out a new easement agreement on behalf of Detterman. And while the new pipeline will follow the same route as the old one, the compensation is greater than they were initially offered and safeguards are now in place. “They can only put one line in and we are protected legally if there is ever a leak,” Detterman said. “This will protect our future and the future of our kids when they inherit the land.”

A Pipeline Set To Run Through A Community Jewel

he Dawes Arboretum in Newark, Ohio: 1,800 acres of beautiful grounds dedicated to increasing the love and knowledge of trees, history and the natural world. The Arboretum’s mission is to provide exceptional education programs and events, as well as maintain incredible horticulture collections. When Arboretum executive director Luke Messinger first saw an aerial photo outlining the proposed path of the ATEX pipeline, his first thought was “How can we stop this. “ He feared the impact of the pipeline’s proposed path through the Arboretum would be incredibly detrimental to their daily operations. Messinger learned quickly that stopping the pipeline wasn’t an option. “I was hopeful however that if we had experienced legal help on our side we could propose an alternative route on our property that would minimize disruption to our operations,” he explained. Eminent domain attorneys Goldman & Braunstein were retained. Their first order of business was to tour the Arboretum, taking a close look at the proposed path and alternative routes that Messinger believed would cause less damage to both the natural habitat and the work that is done there daily. “Their ability to understand the uniqueness of our property and our daily operations was critical in order for them to negotiate in our best interests,“ Messinger explained. “You can’t just arbitrarily draw a line through this property if you don’t understand its use.” According to Messinger, the attorneys were able to both “demonstrate and clearly communicate the value of the land.”

ATEX agreed to move the 8,500 feet of pipeline on the Arboretum’s property so research and youth education areas were not impacted. Messinger believes they would have been had ATEX stuck with its original routing. “From the start, our goal was to minimize the pipeline’s impact. The pipeline company was agreeable I think, because Goldman & Braunstein were able to communicate the passion, level of education and love the community has for this property. It was in the pipeline company’s best interest to work with us.” Attorneys Michael Braunstein and William Goldman can be reached at 614-229-4512 or toll free at 888-229-4569. For more information visit www.ohiopipelineresults.com or www. eminentdomainattorneysoh.com.

Photo Courtesy of Dawes Arboretum

Gas & Oil

January 2014 Edition - Dix Communications

Southern Zone Edition

Zane State College adds ﬁnishing touches

To Gas & Oil Land Lab

Judie Perkowski Dix Communications

AMBRIDGE — The best way for students to learn about oil and gas formations is to have actual samples of the raw materials and scaled-down versions of the machinery and equipment. Zane State College’s Oil and Gas Engineering Technology Program on the Cambridge campus, boasts one of the first, — if not The first — oil and gas programs to offer students a hands-on experience. Now that a pump jack and related equipment are in place, coming soon to the oil and gas lab is a geological shale column. The column will be comprised of five layers of oil and gas producing rocks and stone typically found in Ohio: Marcellus and Utica shale, Trenton limestone, Clinton sandstone and Berea sandstone. The two samples of shale rock displayed in the photo are from the Marcellus and Utica formations in New York. The Marcellus formation is gigantic — beginning in northern New York it covers at least half of Ohio, and other states in between. Paul Pasley, instructor at Zane State’s Oil & Gas Engineering Technology Program in Cambridge, is spearheading a project to build a column with veneers of actual samples of each layer of rock, sandstone and limestone. “We are going to build a 6-by-2 foot concrete pillar with a granite base which will be covered with veneers of each shale rock sample from the Utica and Marcellus formations,” said Pasley. “We will layer the column according to the actual structure of the stone and shale. I have the plans and design, the next step is building and assembling the column after we have all the components. A granite base is necessary because of the weight it will hold — about 600 pounds when completed. The column will have an educational placard attached to identify each layer.” Pasley said he is currently looking for a source of “Clinton sandstone.” Another addition to the lab’s hands-on materials, is a PIG — pipeline inspection gauge — a valuable instrument used to perform numerous maintenance operations, said Robert Stonerock, also an instructor at the college’s oil and gas program. The PIG will be inserted into a launching station and pro-

pelled through the pipeline using artificial air pressure. While the PIG is propelled forward, it will clean, decontaminate and remove unwanted debris from the pipeline. PIGS can also determine wear and tear or breaks in the pipeline. The pipeline version at the college’s oil and gas lab will be 150 feet long. At the end of the pipe, the PIG will be removed and students can analyze the contents for problems, questionable remains, and potential hazards. This will provide students with real-life experience without exposing them to the possible dangers of high pressure gas. If anyone can help locate sandstone or limestone samples, call Robert Stonerock or Paul Pasley at 740-588-1381 or email rstonerock@zanestate.edu or ppasley@zanestate.edu. jperkowski@daily-jeff.com

Robert Stonerock, l, and Paul Pasley, instructors at Zane State’s Oil & Gas Engineering Technology Program in Cambridge, hold a poster representing the layers of shale rock found in Ohio in the Marcellus and Utica shale formations. Pasley is spearheading a project to build a similar column with actual samples of each layer of rock. Two samples stacked on the table are from l to r, the Marcellus formation and the Utica formation. The Utica shale lies beneath the Marcellus.

Dix Communications - Gas & Oil

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January 2014 Edition

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Gas & Oil

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January 2014 Edition - Dix Communications

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Dix Communications - Gas & Oil

January 2014 Edition

ODNR triples regulatory staff,

poised to regulate gas,

oil well construction

James Zehringer

Laurie Huffman Dix Communications

ANTON -- The Ohio Department of Natural Resources wants the public to know while they want to see the gas and oil industry succeed in Ohio, they don’t want it to be at the expense of the environment or the citizens of the state. “That is our mission,” said James Zehringer, director of ODNR. Zehringer and Rick Simmer, chief of the ODNR’s Division of Oil and Gas Resources, presented information on Ohio’s gas and oil exploration and production during a talk recently held at Malone University, in Stark County. The event was organized by the Canton Regional Chamber of Commerce. Zehringer was brought on board by Governor John Kasich a little more than two years ago, after previously serving as the director of the Ohio Department of Agriculture. “Ohio is blessed with natural resources. Along with gas and oil, we have coal, water and public lands,” said Zehringer. “Our goals, as the division of the ODNR in charge of resources are 1) to safeguard the water quality; 2) clean up our 74 state parks; and 3) to regulate oil and gas responsibly, which is pretty important, because we have to do this right. We have nine divisions in the ODNR, and Oil and Gas Resource Management is one.” Zehringer pointed out there has been a shift to Southern Ohio recently, in Noble and Belmont counties, in particular, in terms of oil and gas exploration and production, and he said there has been some pretty staggering results. Also, a new well in Monroe County is breaking records for oil and gas production, grossing $1 million per week. “That is just one well, and most wells don’t gross anywhere near that amount,” said Zehringer. Zehringer said the ODNR projects the wells to be drilled in Ohio will take a large jump next year, with 1,180 predicted to be drilled in 2014, compared to 625 in 2013, and 215 in 2012. As he pointed out with this prediction, the activity is expected to go through the roof. In anticipation, the ODNR has beefed up its staff. In 2010, the ODNR had only 37 full-time people to regulate the oil and gas activity. “We have talked to other states to discuss lessons learned, and we’ve learned we have to

have our regulatory staff in place,” Zehringer said. “So, we’ve tripled our staff in the last two years. That includes 50 on-theground inspectors.” Zehringer said regulation is the key to keeping the industry a safe one for Ohioans. He said there is a proposed severance tax, but no amount has yet been set, and as far as the impact of that on the industry is concerned, he said, “I don’t know what that will be, but, I can tell you our severance taxes are pretty low.” He also pointed out Governor Kasich’s intent with the severance tax is to lower income tax. Simmers also spoke to say it is the ODNR’s intent to regulate well construction, which is “largely unregulated now.” New rules will be put in place in draft form as of Jan. 1, and once they are finalized, the gas and oil companies will be required to submit an engineering plan for ODNR approval. “We’ll review their plan and make sure they follow the proper processes during construction,” said Simmers. Simmers also told those present during the talk the ODNR has residency requirements for its staff. “We live and work in the areas where we inspect, and in the counties where we regulate,” he said. “Utica is developing faster than any play in the U.S.,” Zehringer concluded, “and, we’re expecting to see a lot of positive results continuing.”

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Gas & Oil

January 2014 Edition - Dix Communications

Southern Zone Edition

Tax break for natural gas vehicles? Marc Kovac Dix Capital Bureau

per gallon charged for conventional vehicle fuel. “With the discovery of major shale plays in North America combined with advancements in drilling to harvest these vast stores of natural gas and oil, Ohio an our nation are experiencing a major energy revolution,” O’Brien told the House Finance Committee this week. “Considering these shale plays have enough reserves to provide our nation’s needs for 100 years with cheap and reliable supplies, governments and the private sector must rethink their policies to capitalize on this energy boom.” mkovac@dixcom.com

“Ohio has an enormous opportunity present in shale, an opportunity which many states can only dream of having.” – State Rep. Dave Hall

10209551

OLUMBUS — Consumers and businesses would get tax breaks to buy new vehicles or convert existing ones to run on natural gas under legislation being considered in the Ohio House. HB 336, which had its first hearing before the chamber’s Finance Committee, also would provide incentives for the purchase of electric vehicles and phase-in motor fuel tax collections for compressed natural gas. The bipartisan legislation has more than 60 co-sponsors, including its two primary carriers, Reps. Dave Hall (R-Milllersburg) and Sean O’Brien (D-Brookfield). It’s aimed at taking advantage of increased oil and natural gas production in eastern Ohio’s emerging shale oil fields. “Ohio has an enormous opportunity present in shale, an opportunity which many states can only dream of having,” Hall said in testimony presented to the Finance Committee. “But unlike our friends to the east, west and south, we aren’t fully harnessing the potential of natural gas after it has been developed. HB 336 would greatly improve Ohio’s existing alternative fuels policy and has the right mix of incentives to spark investment. Passing this policy sends a clear message to car owners and companies everywhere: Ohio is CNG-friendly.” Among other provisions, the legislation would provide tax credits of up to $5,000 for light vehicles and $25,000 for heavy vehicles to cover new purchases or conversions. The bill also would provide $16 million for grants to local governments and nonprofit groups wanting to convert their existing vehicle fleets to run on compressed natural gas. HB 336 would provide sales tax credits up to $500 for the purchase of electric vehicles. And it would phase-in motor fuel tax collections on compressed natural gas over a five-year period, starting at 7 cents per gallon equivalent and eventually increasing to the 28 cents

Dix Communications - Gas & Oil

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January 2014 Edition

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January 2014 Edition - Dix Communications

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Dix Communications - Gas & Oil

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January 2014 Edition

Defining

Judie Perkowski Dix Communications

AMBRIDGE — Three years ago, if you mentioned the term “abstractor” to average residents of southeastern Ohio, they probably would have a quizzical look on their face. Today, abstractor is generally recognized as someone who has “something” to do with the gas and oil industry. Actually, the term is part of the nomenclature that describes gas and oil industry occupations. An abstractor is a person who summarizes information of the ownership of a particular parcel of real estate, someone who searches records and files pertaining to a specific property to disseminate its history and to determine if there are any conveyances and/or encumbrances affecting the property. According to Guernsey County Recorder Colleen Wheatley, “the first wave (of abstractors) was in 2010 when a group of about 20 people from Michigan made their presence known in Guernsey County when they began researching deeds, mortgages, leases and right of ways for gas and oil companies, virtually any paperwork associated with a particular property or properties.” Three years later, different crews from multiple gas and oil companies have come and gone. Abstractors from around the country continue to occupy seemingly every inch of available space in the Guernsey County recorder’s office, spilling out to the adjacent hallway and every nook and cranny that can accommodate a table, chair and a computer that has Wi-Fi. For one group of abstractors it has been an exciting ride. In an interview with Max Townsend, field landman and director of eastern division operations for Cimmaron Field Services, Inc., said it all started in Ohio for him and his crew about two years ago while he was on a job in Fort Worth, Texas. “I received a phone call on a Thursday morning with instructions to be in Ohio by Monday,” he said. “Cimmaron contracted with four local Ohio landmen. I was asked to select two people from an existing project in Texas, and get the crew going on client projects in Guernsey County. I drove 17 hours straight over the weekend, and found myself at the Holiday Inn in Zanesville, where we stayed for a few months. We were moved to Pennsylvania for the next couple of months and then spent a year and a half at Salt Fork Lodge. Over time the crew grew from seven to about 35,” he said.

Not knowing much about Ohio, Townsend said he actually “stumbled” across the Salt Fork Lodge. “We discovered it was a great place for some of the crew to stay, and invite their families to visit in the summer. It turned out to be a great place for all of us. We absolutely loved our stay. The people at Salt Fork Lodge could not have been kinder to us. We all made great memories there.” One of the biggest problems Townsend and his crew encountered while researching documents was when the information was not complete and they had to work through curative documents for filing. “A field landman’s purpose, via client direction, is to understand and lease the correct person for oil and gas exploration. There are many cases where information may not be complete and we have to contact a family member to sort out the story. In some cases the only way we can make contact with people is face-to-face by knocking on their door. You never know what you are going to run into when you knock on someone’s door, even when you want to offer them money. “The majority of local people treated us very well and welcomed us to the area ... There is probably a small sub-set of people who were unhappy we are clogging up their courthouse, and that has impacted them in some way ... We understand.” Field land work projects can last from a couple of weeks to several years. Townsend said he has been with Cimmaron for three years. He travels home to Texas once a month. “We are very grateful for the success our clients have experienced in the area. With the current price of oil and natural gas and many very prolific wells being completed in this area, the future looks promising. It is exciting to be part of this community and seeing the positive economic impact of our work in southeastern Ohio,” he said. Townsend and his crew are currently ensconced at the Oglebay Conference Center in West Virginia. Cimmaron Field Services, Inc. began offering land acquisition right of way services in 1993. Since then its client list has grown to include oil and gas companies, public utilities and the public works departments of a growing list of state, county and municipal government agencies. Services cover every aspect of right-of-way acquisition, from initial route selection to final permitting.

Gas & Oil

January 2014 Edition - Dix Communications

Southern Zone Edition

PART 2 Judie Perkowski Dix Communications

AMBRIDGE — “The past three years have been amazing,” said Colleen Wheatley, Guernsey County Recorder in her office in Cambridge. “Total receipts for 2011 were $564,533, we were very excited, compared to annual total receipts for the previous five years, which averaged $150,000 a year. Then, it was Boom Town. The year-end revenue for 2012 doubled to $1,278,891, total revenue as of Dec. 17 is $1,119,329, with two weeks to go to the end of the year.” Wheatley said she remembers in 2010, the first time a group of about 20 abstractors from Michigan set up their computers to research documents their clients needed to buy leases. Little by little, office traffic steadily increased. Until 2012, when it was an explosion of researchers flooding the recorder’s office looking for that last piece of paper that will lead the owner down the Yellow Brick Road. “We are open from 7 a.m. to 8 p.m., Monday through Thursday and 7 a.m. to 4 p.m. on Friday and 9 a.m. to 2 p.m. on Saturday, and they kept asking for a little more time,” said Wheatley. “We try very hard to accommodate them, we even set up Wi-Fi. And, considering the number of people clamoring for space, everything has gone without any major mishaps. For the most past, they are very respectful. We enjoy having them here.” Currently, abstractors continue to scrutinize documents for gas and oil companies eager to buy mineral rights. “Although the majority of searches now are for rights-of way for midstream operations — pipeline construction,” she said. “If their search ends without success in contacting the last person whose name is on the document, they must submit a forfeiture notice for publication in the newspaper. The forfeiture process cleans up the title to the property, and after a designated time frame an attorney notifies the recorder’s office that the lease is released. “When we went online in September everyone thought it would eliminate the number of abstractors here, but it didn’t. Our records are indexed from 1990 to the current date and images of the actual document from 1996. It didn’t help because they want to look at the old stuff. Leases, deeds, titles, mort-

gages and rights-of-way from the original property owner, which could be in the 1800s.” Wheatley’s eyes lit up when she said, “It doesn’t look like there is any end in sight. I was told to look out for 2014.”

Guernsey County Recorder Colleen Wheatley, l, peruses a lease agreement with Gerald Benson, of MattMark Drilling Co. at Wheatley’s ofﬁce in the Guernsey County Administration building in Cambridge. Wheatley said her department’s revenue has doubled since 2011.

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January 2014 Edition

Cambridge ‘selling’

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AMBRIDGE — The city of Cambridge has become an attractive location for energy related companies seeking to direct their operations throughout this region of Ohio and neighboring states as well. “Because of our location, we have become a focal point for companies looking to establish regional headquarters,” said Norm Blanchard, executive director of the CambridgeGuernsey County Community Improvement Corporation. Because of the promise of the Marcellus and Utica shale formations as harbors of petroleum and natural gas, energy related companies have flocked to the area.

“Because of our location, we have become a focal point for companies looking to establish regional headquarters.” – Norm Blanchard Although most of the oil drilling activity has been east of Interstate 77, Cambridge and Guernsey County have proven to be attractive to companies wishing to do more than simply drill locally. “If a company locates a headquarters in Guernsey County, it has easy access in four directions,” Blanchard said, “and that’s what they like.” Nevertheless, when it comes to business, nothing is a given, he said. “We’re in a competition with other states,” he said, alluding to Pennsylvania and West Virginia. “Ohio wasn’t going to incentivize energy companies because the oil is here and they are going to come where the oil is. But a regional headquarters is different.” Although companies will go where the resources are, nothing requires them to establish in one specific community and that’s where incentives can make a crucial difference. The incentives that motivate a company are availability of land for building a headquarters, the cost of the land, dollars for training a workforce and tax incentives, Blanchard said. A component that has deterred a number of companies and businesses from locating here has been the high prices for land that many property owners have been asking, he said. jlowe@daily-jeff.com

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Shrugging off winter’s bite

in NORTH Dakota oilfields

James MacPherson Associated Press

ISMARCK, N.D. (AP) — Some people were choosing to stay indoors as an arctic blast swept across the Northern Plains, but the prospect of temperatures not cracking single digits had a different effect on the roustabouts, roughnecks and thousands of others working outside in western North Dakota’s oil patch. For them, it was just another challenge to face as they go about the task of pulling nearly a million barrels of oil a day out of the ground. “This is what I love to do,” said Craig Hovet, during a break from maintenance work on a well near Mandaree. “The joke around here is: This kind of weather keeps out the riffraff.” Hovet and his crew shrugged off blowing snow and singledigit temperatures in early December, but the real deep freeze was just ahead. The projected high for Dec. 5 was minus 6 degrees, falling to minus 10 by Dec. 7, with overnight lows to 24 below as a major winter storm bulldozed from the Rockies eastward. Temperatures that had hovered in the single digits across Montana began dropping Dec. 4, and the National Weather Service forecast record or near-record lows in several parts of the state overnight. The bitter cold predicted ranged from minus 9 degrees in Missoula to minus 27 in Butte and Shelby. The extreme cold prompted the Red Cross to release a statement urging people to stay inside or layer up to guard against frostbite if they must go out. The agency also asked residents to check on their neighbors, especially if they require special assistance or live alone. The cold snap was widespread, blamed on the jet stream’s move southward and expected to linger through much of the week. In Minnesota, the icy blast came with a snow dump approaching 3 feet in the northeast, though much of that was lake-effect snow on the shores of Lake Superior. At least five people died in fatal crashes in Minnesota, plus at least two more in Montana and North Dakota. Oklahoma postponed high school football championship games as the storm moved in. North Dakota historically has conjured up images of a bleak, wind-swept and treeless wasteland. The perception was so great that one group a decade ago proposed changing the state’s name by dropping “North” and leaving just “Dakota,” to dispel the state’s image of inhospitable winter weather. That was before North Dakota’s recent oil bonanza that has brought swarms of people to the state in search of a good

economy, a job and a fresh start. Now, thousands of new oil wells have been punched though the prairie, bringing billions of dollars to the state and more jobs than takers. It’s a boom that doesn’t stop for the weather. “Harvesting oil is a 24/7, 365 operation,” said Ron Ness, president of the North Dakota Petroleum Council, an industry group that represents hundreds of oil-related companies. “The pace probably slows during extreme blizzard conditions — and there are extra precautions on safety — but it’s work that is not going to stop.” Longtime oilmen say clothing has improved over the years. And many rigs now have “doghouses” — small heated buildings — nearby and workers can go to them to get warm. “You have to know when to give them breaks, and learn to watch them so they don’t get too cold,” said Larry Dokken, 67, of Williston. Dokken has worked in the oil patch for nearly 50 years, with not-so-fond memories of working in minus-85 wind chill. He now operates a consulting firm that finds workers for oil companies, and prefers hiring cold-acclimated people from North Dakota or Montana — with at least five years of experience, too. “If they’ve made it that long, they’re probably going to stick around. A lot of people don’t know what cold is,” Dokken said. “My history books in grade school said George Washington and his army suffered at Valley Forge, and I’m sure they did,” said Daryl Andersen, a North Dakota native and 30-year oilman who now runs a well services company. “But we’re colder here than they ever were.” North Dakota’s notorious bitter cold isn’t a deterrent for Dylan Grossman, a 23-year-old Alaska native who has posted a Craigslist ad seeking a laborer’s job in the oil fields. Grossman is currently in Florida, where he’s struggled to find work. He said he intends to move to North Dakota soon and has asked his mother to mail him his warmest clothes. “I’ve heard it’s cold and flat in North Dakota,” Grossman said. “I think I can layer for it.” Hovet, who grew up in North Dakota, has heard that before. He recalls four Texans walking off a job site after being in North Dakota for just one day last winter. “It was about 5 above and sunny and really kind of a pretty day,” Hovet said. “They got their truck stuck in a ditch and their equipment got frozen up. They said, ‘The heck with this, we’re going back to Texas.’”

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Dix Communications - Gas & Oil

January 2014 Edition

Development leads to airport upgrades

Dan Davis Dix Communications

AMBRIDGE -- The recent explosion of gas and oil development here has brought a need for enhancements and upgrades at the Cambridge Municipal Airport. Airport Manager Terry Losego addressed the Cambridge-Guernsey County Community Improvement Corporation recently, presenting the goals and accomplishments of airport and providing an update of county and city funding. “Due to the increase of corporate users and oil and gas aircraft, the airport has received numerous requests for de-icing equipment, auxiliary power units and overnight hangars,” Losego said. He discussed the importance of the FY14 Grant in the amount of $443,182.00. “This grant will provide replacement of two obstruction light poles and extensive compliance issues which are pertinent for the airport’s runway extension,” Losego said. “The goals of the airport were well received by everyone present.” On a related note, Delta Airport Consultants has expressed interest in the Storm Water Prevention Plan. This plan is required to be in place for the purpose of applying de-icing fluid to aircraft in need of this service. The board agreed to purchase a hand sprayer and pursue the SWPP.

In other action, Losego and Secretary Brenda Dolweck attended a Nov. 6 Ohio Utica Midstream Development Forum at which Congressman Bill Johnson was the featured speaker. He discussed the economical impact and job growth in Ohio. An estimated 38,000 jobs have already been created due to the oil and gas boom. By the year 2035, an estimated 260,000 jobs will have been created in the state. Greg Sullivan of MarkWest Energy presented statistics on the facilities in Cadiz (Belmont County) and Seneca Plants (Noble County). The Cadiz plant is currently processing 60 million cubic feet of gas daily and will process 400 million cubic feet of gas daily when fully operational, he said. The Seneca Plants will process 600 million cubic feet of gas daily. Several other speakers from Dominion East and Spectra Energy spoke on the progression of the pipeline. Ohio Oil and Gas Energy Education Program Executive Director Rhonda Reda presented a program called “STEM”(science, technology, engineering, math) which is now being presented in Ohio middle schools to gear students towards career opportunities in the oil and gas fields. ddavis@daily-jeff.com

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Controversial well ordered plugged

ILLERSBURG — Unproductive since 2009, a controversial well has been ordered plugged by a Holmes County judge. Judge Robert Rinfret’s decision was the culmination of a civil lawsuit filed in Holmes County Common Pleas Court by Darrell and Dortha Helms against Thomas Whitney and Donald Ridgeway, who lease land and own a well on the Helms’ Brinkhaven property. Whitney and Ridgeway are now appealing that decision. The well, originally drilled in 1918, is known as Crider No. 4 and had been used by Whitney and Ridgeway to produce oil and gas from 1976-2009, according to court records. To that point, and into 2010, royalty payments were made to the Helmses. Production stopped in 2009 after a storm knocked down a goat pen and disrupted electric power to the well, according to court records. Conflict ensued about restoration of power. Rinfret found Helmses’ “only objection to the electrical line was that the new pole be placed in their yard.” He notes that a generator could have supplied power in the interim and full power could have been restored following erection of a new electric line in 2011 or 2012. Whitney and Ridgeway, through their attorney Robert Eckinger, continue to claim a generator would not have provided the steady source of power required to operate the pump and the Helmses failure to cooperate is the cause of the lack of production. From 1998-2009, the well averaged 97.75 barrels of oil a year, according to Eckinger, who said there is no question about its potential to produce. Nevertheless, Rinfret found the well, unproductive for more than two years, was inactive and must be plugged by Whitney and Ridgeway. Rinfret’s decision nullifies the claims of Whitney and Ridgeway on the mineral rights, including those associated with future production associated with horizontal drilling. It’s the ruling the Helmses were hoping for when they hired attorney Thomas White to help them clear the property’s title. The outstanding lease with Ridgeway and Whitney would have entitled them to signing bonuses and the better part of royalties paid by deep drilling into the shale. With signing bonuses in southeastern Ohio reaching $7,000 an acre, the financial gain is great for the holder of a property’s

mineral rights, said White, who said many landowners are now tidying up old claims to avoid problems in the future. But, he said, producers also are taking notice of the financial potential, often making last-ditch efforts to breath life into old wells to preserve a claim on future production, which, because of technological deficiencies may be several years down the road for residents in Holmes County, where reserves of natural gas are not enough to force the deep oil to the earth’s surface. In fact, Eckinger said, Ridgeway and Whitney had made efforts to make the well active after being contacted by ODNR about well. Their efforts were abandoned when the lawsuit was filed in November 2012. Nevertheless, Eckinger said, he believes the well not only has the potential of being productive, but even more so than before. This, plus his clients’ potential gains from fracking, have prompted him to appeal to the Fifth District Court of Appeals. Significant in Rinfret’s decision was not only the “inactive finding,” but “he gave the court authority to have the well plugged,” said White, explaining it is the first time he knows of a court making such a far-reaching order, otherwise the responsibility of the Ohio Department of Natural Resources. “We think that is perfectly fine,” White said or Rinfret’s order to plug the well, calling it “a tremendous assist to landowners in getting old wells and leases off land.” Ridgeway and Whitney would disagree, and in light of the pending appeal have asked the court to stay imposition of the order to have the well plugged.

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LD WASHINGTOIN — The senior physics class at Buckeye Trail High School, under the instruction of teacher Grant Johnson, has received a scholarship for being one of the 51 winners in Samsung’s Solve for Tomorrow contest. The school received a laptop, video camera, software, two tablets, and a technology grant for $20,000. The contest recognizes winners from each state and the District of Columbia. The project investigates the effects of hydraulic fracturing on Guernsey County groundwater. Students are speaking to oil and gas experts and will be collecting water samples. Grant and his students collaborated with Zane State College to complete the project. The project will be presented at the Science Fair coming up Feb. 1.

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January 2014 Edition

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Dix Communications - Gas & Oil

January 2014 Edition

Christine Holmes Special to Dix Communications

EW CONCORD — Martha Garber, checker at Patton and Thomas dining halls at Muskingum University, could retire a wealthy woman. “We aren’t lucky people that win lotteries or anything like that,” said Garber. Garber, better known as Dining Hall Marty, has the opportunity to sell her mineral rights to a hydraulic fracturing company. Leasing mineral rights is becoming a hot topic for many landowners in the surrounding area. In Garber’s case, she was offered more than $5,000 per acre. Living on 52 acres of land, that would be about $270,000 for selling her mineral rights, plus a percentage of what oil is extracted through the process. The amount is enough for Garber to pay off her mortgage and still have some money left over. By selling her mineral rights, she is allowing drilling companies to come on her property and drill for the natural gas trapped in the shale rock formations deep in the earth. Hydraulic fracturing is the method used to extract this natural gas through the process of injecting water, chemicals, and sand to break apart the rock. “One of the benefits of fracking is that we’ve been able to take something that wasn’t a resource before and produce a lot of natural gas from it which has really dropped the price of gas,” said Muskingum University’s associate professor of geology, Stephen Van Horn. Although people may be looking forward to benefits from selling mineral rights, there are many critics who are concerned with the environmental and medical impacts of fracking. “Gas and oil do not come up clean the way you get them in your furnace or at the gas pump,” said Debbie Cowden, a family practitioner from Loudonville, Ohio. “They come up with other chemicals on them.” Speaking at a panel on fracking held on Muskingum’s campus last month, Cowden said these chemicals are carcinogenic if not explosive. Fracking not only raise health concerns, some believe it also impacts the availability of resources citizens have. Hydraulic fracturing requires a significant amount of water to be effective. Ted Auch, Ohio program director for FracTracker Alliance, said Utica wells in the State of Ohio are using from 4.6 to 4.8 million gallons of water per well. “In Carroll County that is about 85 percent of the county’s human water usage,” said Auch during last month’s fracking

panel. Not only is water used to drive hydraulic fracturing, waste water is produced and must be disposed of properly into disposal wells. Although fracking raises concerns for some people, others believe these concerns are exaggerated. “Despite the sensational claims made by some filmmakers and activists, fracking tends to have less of an environmental impact than older forms of oil and gas development,” said Jonathan Adler, environmental law professor at Case Western Reserve University School of Law. Adler believes the environmental risks from fracking are actually relatively small and can be easily manageable. “Fracking should not be cause for particular environmental concern, and is well regulated in most states,” he said. Many students who attended the panel had questions for the speakers about the effects of hydraulic fracturing. Trent Dougherty, director of legal affairs for the Ohio Environmental Council, believes college students, the next generation of leaders, should express interest to their state government if they care about hydraulic fracturing and their environment. “Unfortunately, it isn’t always high on students’ lists,” he said. “I know it wasn’t the highest thing on my list when I was a college student.” For those students interested in fracking and the oil industry, a new major will be offered at Muskingum University for the fall of 2014. The petroleum geology major is meant for students looking for employment in the energy industry. “We’re starting to see increased activity in our area, which means an increase in need for geologists and hopefully this will serve the students and prepare them to take those types of jobs,” said Van Horn. Such careers are geared toward slightly higher positions such as an exploration geologist where their job is to find places to drill. These locations very well could be in the New Concord area. There have been several wells drilled over the summer just a few miles east of New Concord, along Interstate 70. Although there hasn’t been any drilling right in the immediate area, it’s slowly moving closer, Van Horn predicts that it will be close to New Concord within six months to a year. As for Marty, she hopes this is true because drilling has not yet begun on her property. “They’re saying that we’re kind of on the border line of where good oil is and that they may be coming to our area later on,” she said.

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January 2014 Edition - Dix Communications

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January 2014 Edition

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Gas & Oil

January 2014 Edition - Dix Communications

Southern Zone Edition

Benefits will ‘reverberate’

throughout state Judie Perkowski Dix Communications

AMBRIDGE — Presenting a synopsis of several towns and cities, off the beaten path of oil-rich eastern Ohio, that have benefited from the presence of dozens of gas and oil companies entrenched in the majority of the 32 Appalachian counties, Linda Woggon, executive vice president of the Ohio Chamber of Commerce, told attendees at the Guernsey Energy Coalition meeting, “the benefits from the development of gas and oil in eastern Ohio will reverberate throughout the state,” and that we (communities) are beginning to understand what gas and oil has to offer, including challenges we need to overcome, and how we can all benefit without an oil well in our backyard. The monthly meeting at the Southgate Hotel, sponsored by the Cambridge Area Chamber of Commerce and moderated by Chamber President Jo Sexton, engages speakers associated with the gas and oil industry to inform, educate, and entertain, local business, civic and government leaders and officials about the status of the gas and oil phenomenon in Appalachian Ohio. “Practically everyone knows that Carroll County is the epicenter of oil and gas with three times the well activity of the next county in second place. It was not too long ago that Carroll County had predominantly dirt roads and one motel. To date, more than $40 million has been spent in road construction, sales tax revenue hit the million dollar mark this year, there is a brand new hotel in Carrollton, and the county boasts 200 new millionaires,” said Woggon. “The Atwood Lake property, in Tuscarawas and Carroll counties, has been rescued from bankruptcy, local businesses have expanded their product lines and number of employees. Many people have been hired just to service the needs of the gas and oil industry. The same is happening in Steubenville where a company that makes signs recently hired one employee to handle rush orders for gas and oil business, and Youngstown is starting to make a comeback after the earthquake episode. A steel pipe factory there has 350 new hires and 800 people were hired in spin-off jobs. An estimated $8 billion has been invested in the Youngstown area since 2008. Woggon cited several cities in western Ohio, such as Dayton and Cincinnati, where supply chains to the gas and oil industry are on a steady growth. Dayton has seen in the largest increase in employment, related to the gas and oil industry, in 20 years.

“Cincinnati businesses joined the Ohio Oil and Gas Association to become part of the member list of businesses. The companies were eager to make their presence known and to their availability. A landscaping company in Cincinatti began making calls to gas and oil companies about reclamation of well pad areas. They landed a job, and one job led to another and another. So much business, they opened an office in eastern Ohio. “Baker Hughes has announced they are building a huge processing plant in Massillon, and Chesapeake has opened their main Ohio office in Canton. “This is just the tip of the iceberg,” she said. Woggon said there are three things she believes are important to retain Ohio’s economic growth: We don’t want to be overly aggressive with regulations and legislation; we have to make sure our workforce has the right skills needed for industrial growth; and we have to be aware of the many groups, locally and from out-of-state who are trying to ban drilling altogether. Also offering his expertise in legislative affairs was State Sen. Troy Balderson, who was appointed to serve as a member of the National Conference of State Legislatures Task Force on Energy Supply. Balderson, a leader in energy policy from the Statehouse, is also chairman of the Senate Standing Committee on Energy and Natural Resources. Balderson reiterated his commitment to Senate Bill 1, cosponsored by Sen. Bill Beagle. “OhioMeansJobs Workforce Development Revolving Loan Program, created by SB 1, is a loan program for education funded by $25 million from casino taxes, with no burden on tax-payers,” said Balderson. The money will provide an education, from public or private college, career schools and career-technical training centers that offer adult training for qualified applicants for growing job sectors, such as gas and oil, while facilitating quick job placement after fulfillment of the require education. The funds will be used to provide loans to individuals to cover their education. Preference will be given to schools that have partnered with businesses that will pay back part or all of the participants’s loan that provided the funds for the training program. Balderson recounted his experience years ago when he could not find qualified people to work in his family’s auto repair business. He said he eventually spoke to a represen-

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tative of the Chrysler Corp. and asked about sponsoring an apprenticeship. Balderson said he paid half of a young man’s education in return for a three-year commitment from his future employee to finish his schooling and become part of Balderson’s workforce. “Business and educators are ready and willing to participate in SB 1, they are just waiting for the money, which is controlled by the Board of Regents (Ohio Treasury Department),” said Balderson. “They just need the money from the Regents. “The key is for business leaders, future employees and educators work together to form a plan. It is up to them. They can structure their plan any way that works for them. Who they want or need to hire and the education required to fill the jobs,” he said. “Age is no barrier. Anyone can work out a plan with an employer for education and future employment. All it takes is commitment.” Balderson also said we need our children to focus on the current and future job market. All jobs do not require a college education, some good paying jobs only require a certification or special training. “Our kids are not engaged in what’s going on in the job market today, especially in technology. Everything associated with gas and oil industry is run by technology ... The technology that runs the oil and gas industry is incredible. It’s worth businesses time to talk to educators. We need businesses and educators to form a partnership. To be on the same page. “We have the facilities, we have the people, and not just gas and oil jobs,” he said. “We have 100,000 jobs on the state’s website, OhioMeansJobs. We have the opportunity now, what we change now will insure growth and a stable future.” jperkowski@daily-jeff.com

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10213503

Jo Sexton, president of the Cambridge Area Chamber of Commerce, welcomes Linda Woggon, executive vice president of the Ohio Chamber of Commerce, and State Sen. Troy Balderson, to the Guernsey Energy Coalition meeting Thursday morning. Woggon and Balderson were guest speakers.

10212361

Gas & Oil

January 2014 Edition - Dix Communications

Southern Zone Edition

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Dix Communications - Gas & Oil

January 2014 Edition

Pa. gas drilling decision leaves future uncertain

Marc Levy / Mark Scolforo Associated Press

ARRISBURG, Pa. (AP) — The energy industry and policy makers in Pennsylvania, the heart of the nation’s gas drilling boom, are thinking about their next moves after the state’s highest court threw out significant portions of a law that limited the power of cities and counties to regulate the industry. The state Supreme Court voted 4-2 on Dec. 20 to strike down portions of a 2012 law that had been crafted by Gov. Tom Corbett and his industry-friendly allies in the Legislature. Republican leaders in the General Assembly said the decision raised more questions than it answered and could damage the growing industry. They said they were not sure, for example, what the ruling would mean for the millions in impact fees being collected under the law. Pennsylvania has over the past five years seen a boom in drilling and related industries rushing to exploit the deposits in the rock formation known as the Marcellus Shale, which lies deep underneath several Eastern states. The high court’s decision comes as the energy industry is increasingly able to harvest oil and gas from those previously unreachable formations and, as a result, is bumping up against suburban and urban expectations of land use in states including Texas, Colorado and Ohio, where a similar legal challenge is under way. The court majority said the law violated the state constitution, although they issued different opinions about why. Seven municipalities had challenged the law that grew out of the state’s need to modernize 20-year-old drilling laws to account for a Marcellus Shale drilling boom made possible by innovations in technology, most notably horizontal drilling and hydraulic fracturing. The process, popularly called fracking, has drawn widespread criticism from environmentalists and many residents living near drilling operations. “Few could seriously dispute how remarkable a revolution is worked by this legislation upon the existing zoning regimen in Pennsylvania, including residential zones,” wrote Chief Justice Ron Castille. He said the law’s rules represented an unprecedented “displacement of prior planning, and derivative expectations, regarding land use, zoning, and enjoyment of property.” After the industry began descending on the Marcellus Shale in earnest in 2008, state Supreme Court decisions expanded the legal gray area surrounding the extent of municipal authority over the operation and location of oil and gas wells, critics of the decisions say. Some companies complained that

municipalities, mostly in southwestern Pennsylvania, had tried to use zoning rules to unreasonably limit drilling. As a result, many in the industry made it a top priority to secure a law that eliminated any municipal authority over how drilling companies could operate. Corbett took office in 2011 and backed the industry, believing that a 1984 state law had intended to do that anyway. Colorado and Ohio have recently passed such laws. In New York, where state officials essentially put Marcellus Shale drilling on hold, state courts are currently deciding whether local governments have the right to ban the industry from operating within their borders. The law restricted local municipalities’ ability to control where companies may place rigs, waste pits, pipelines and compressor and processing stations. The new zoning rules never went into effect because of a court order. A narrowly divided lower court struck them down in 2012, but Corbett appealed, saying lawmakers have clear authority to override local zoning. Among the objectionable provisions cited by the lawsuit were requirements that drilling, waste pits and pipelines be allowed in every zoning district, including residential, as long as certain buffers were observed. “We must not allow today’s ruling to send a negative message to job creators and families who depend on the energy industry,” Corbett said, adding he will continue to work to help the energy industry thrive. Republican leaders said they were unsure whether the decision invalidated impact fees that have generated hundreds of millions of dollars. The municipalities argued the zoning restrictions ran counter to objectives of protecting the environment, health and safety of people who live there, and three of the six justices agreed. A fourth justice ruled that the law violated the municipalities’ constitutional rights to due process to carry out community planning. Justice J. Michael Eakin said he would have upheld the law. He had concerns about the power the majority gave to the state’s thousands of local entities at the expense of the Legislature. “Giving standing to some 2,500 sets of local officials to sue the sovereign based on alleged violations of individual constitutional rights is misguided, and will have precedential repercussions — I fear we will soon face a tide of mischief that will flow from such an ill-advised notion,” Eakin said.

Gas & Oil

Southern Zone Edition

January 2014 Edition - Dix Communications

Dominion to deliver West Virginia gas to Ohio pipelines

ICHMOND, Va., - Dominion, one of the nation’s largest energy companies, has contracted to deliver 500,000 dekatherms per day of natural gas produced in West Virginia to various interconnections with pipelines in Ohio, as producers look westward to seek new markets for Marcellus production. The company also has closed on agreements with two natural gas producers to lease approximately 100,000 acres of Marcellus shale rights underneath several of its natural gas storage fields in West Virginia. Dominion has farmed out nearly 80,000 acres to CONSOL Energy in Lewis and Harrison counties in its Fink-Kennedy and Lost Creek storage areas. It has also subleased nearly 9,000 acres to CONSOL Energy mainly in Gilmer and Ritchie Counties in its Racket-Newberne storage area. Dominion has also farmed out approximately 13,000 acres to Triana Energy LLC in Harrison and Taylor Counties in its Bridgeport Storage area. In conjunction with the farmout with CONSOL, Dominion Transmission and CONSOL have executed a binding precedent agreement to transport 250,000 dekatherms per day from the Fink-Kennedy area to two different points in eastern Ohio. One is an interconnection with the Texas Eastern pipeline at Mullet, Ohio, and the other an interconnection with the Rockies Express Pipeline in Clarington, Ohio. The contract term is 15 years beginning in November 2016. Dominion has also received commitments from various producers to transport 250,000 DT/day to interconnections in Lebanon, Ohio. These long term contracts begin in June 2014 and continue with various terms up to 21 years. Dominion will retain the storage fields, but permit directional drilling into the much deeper Marcellus shale formation. The farmout agreements will result in payments to Dominion of approximately $200 million over a period of nine years, and an overriding royalty interest in the natural gas produced. These projects have already been announced and support the growth plan. CONSOL Energy Inc. is a Pittsburgh-based producer of natural gas and coal. The company is a leading producer in the Marcellus Shale and is transitioning its active exploration program into development mode in the Utica Shale. CONSOL Energy has proved natural gas reserves of 4.0 trillion cubic feet. Safety and compliance are the company’s foremost val-

ues. CONSOL Energy is a member of the Standard & Poor’s 500 Equity Index and the Fortune 500. Additional information about CONSOL Energy can be found at its website, at www. consolenergy.com. Triana Energy is an oil and gas exploration and production company headquartered in Charleston, West Virginia, with operations in the Appalachian Basin and Nova Scotia. Dominion is one of the nation’s largest producers and transporters of energy, with a portfolio of approximately 23,500 megawatts of generation, 11,000 miles of natural gas transmission, gathering and storage pipeline and 6,400 miles of electric transmission lines. Dominion operates one of the nation’s largest natural gas storage systems with 947 billion cubic feet of storage capacity and serves retail energy customers in 15 states. For more information about Dominion, visit the company’s website at www.dom.com.

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January 2014 Edition

Fortis College offers welding courses

Alison Stewart Dix Communications

AVENNA -- As an area of study, welding has become popular in recent years due to the demand for jobs in the industry. Fortis College, in Ravenna, offers courses for those interested in a career in welding. “Welding has really taken off and welding is a part of trucking,” said Vicki Young. Fortis College’s welding department Chair. “We have large trailer producers in this area and a huge segment of our student population are employed by these companies.” Welding engineering employs science and engineering in joining components made of metals, ceramics, plastics, and other materials. Welding engineering includes design of the joints to be welded, development of the detailed joining procedures to be used, selection of the materials incorporated in the joint, joint inspection, and quality control for the final product according to Young. “The duration of our welding program is fifteen months,” said Young. “Each class is ten weeks in length.” Young said there are currently 75 students enrolled in the welding program at the Ravenna location. The program consists of a great amount of math, safety and operation, gas welding, metal welding and more. The courses consist of lectures and labs. Young said there are many reasons why jobs in this industry are in such high demand. “The baby boomers are retiring, so it is essential younger people be trained to be able to take over these jobs,” said Young. “There is also a high deficit in the welding industry be-

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cause of a lack of skilled laborers. It is sort of like fighting two entities at once, to fill the void of skilled labor and to replace the void of people retiring.” There has been an influx of repairing infrastructure in the United States, Young said. The shipping industry has also become more important these past few years. The demand for truck drivers has increased greatly due to large manufacturing industries taking off, said Young. There are several Fortis College locations across the country, but the branches in Ravenna (at 653 Enterprise Pkwy.) and Atlanta, GA are the only two that offer welding courses, according to the Fortis College website. astewart@recordpub.com

Gas & Oil

Southern Zone Edition

January 2014 Edition - Dix Communications

Atlas Oil announces new president Lauren Sega Dix Communications

tlas Oil Chairman and CEO Sam Simon announced the selection of former Vice President Michael Evans as the new president and chief operating officer, effective immediately. This newly created position will be fully established by the first of the year. “After 28 years of being involved in the day to day leadership of Atlas, I will now move to a more strategic and visionary role,” said Simon. “Michael and I have been partners and business associates for the past 17 years. I have complete confidence in his ability to take over the reins as president.” Evans joined Atlas in 1996, and has held several executive positions, including directing real estate development sales, serving as commercial and industrial sales manager and as chief development officer, said Evans. “I have also directed several acquisitions for the company, so I have pretty much touched every part of the business,” he added. Evans’ business career spans more than 24 years, said the Oct. 16 news release. For eight of those years, Evans served as a financial analyst supporting General Motors Executive Staff business units at Electronic Data Systems. Evans eventually earned the lead financial role for the negotiating team on EDS’ spin off from General Motors in 1996. Atlas Oil, which currently supplies 15 gas stations in Ohio, also has an affiliate-- Seaway Fuels Trucking-- in Toledo, which handles regional distribution of fuel products. Earlier this year, Atlas Oil launched a crude hauling business in Canton.

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Southern Zone Edition

Ohio court sets Feb. 26 arguments in drilling case

OLUMBUS, Ohio (AP) -- The Ohio Supreme Court has scheduled arguments in a closely-watched lawsuit that challenges the state’s authority to supersede local zoning laws with centralized regulation of oil and gas drilling. The case brought by Munroe Falls, an Akron suburb, against Beck Energy Corp. will be argued Feb. 26. It centers on a Beck project that began on private property in 2011 with state permission. In the process, the city contends the company sidestepped 11 local laws on road use, permitting and drilling. Both foes and supporters of drilling are watching the case. Its outcome could prevent or allow cities to enact local drilling bans, which has implications for the spread of hydraulic fracturing, or fracking. Beck’s well was traditionally drilled, but Ohio’s state regulatory program oversees both well types.

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Gas & Oil

Southern Zone Edition

January 2014 Edition - Dix Communications

Hill named regional director for Ohio

avid R. Hill of David R. Hill Inc. is the new IPAA regional director for Ohio, replacing Jerry James of Artex Oil Company. Hill is one of 33 directors elected from each of the U.S. regions. He was elected Nov. 7 at the IPAA Annual Meeting in San Antonio, TX. Hill will serve as an Ohio’s Regional Director for 2013-15. Regional Directors are limited to four consecutive two-year terms. Hill’s role as regional director is to work with both IPAA and the Ohio Oil and Gas Association (OOGA) on outreach, education and legislative efforts on behalf of the oil and gas industry in Ohio. He also currently serves as Vice President of OOGA. He is a longtime oil and gas producer whose company is based in Byesville, Ohio. “Today the oil and gas industry is ever changing and growing due in large part to shale development here in Ohio and across our county and the world. Such activity requires day in and day out efforts to reach out to communities all across

Ohio to answer questions about the industry and talk about the positive impacts of exploration and production. I am delighted and honored to serve both the industry and Ohio in my role at OOGA and my new position at IPAA”. - David Hill

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Dix Communications - Gas & Oil

January 2014 Edition

Opinion:

Industry benefits undeniable David R. Hill Vice President, Ohio Oil and Gas Association

ver the past few years I’ve traveled across Ohio discussing energy issues in various forms with many diverse audiences. With the dramatic increase in energy activity in this area due to the Utica and Marcellus Shale, energy is becoming an issue that is on almost everyone’s mind. One of the questions I get is, “Yeah, I know this Oil and Gas activity creates a lot of jobs, but tell me what are the other benefits, if any.” I cannot help but believe that some of these people are trying to dismiss the overwhelmingly positive effects of a good paying job. Often times the questioner is from a metropolitan area and you get the impression they have lived comfortable lives and probably not felt the sting of no job, a low paying job or outright poverty. Prior to moving to Cambridge in 1969, my family lived in North Central West Virginia. One of my best friends, Donald, lived in a house along a busy state highway near a roadside rest area. Donald and his older sisters were raised by a single mother. They had no indoor plumbing and had to get their water from a pitcher pump at the roadside rest area nearby. They also had to use the roadside rest areas outside toilets when they needed to use the restroom. There were no jobs then for Donald’s mom or his older sisters. Unfortunately, without jobs that paid a living wage, Donald and his sisters were sentenced to a life of poverty. After moving to this area we witnessed another economic calamity, the scaling back and finally the closure of Central Ohio Coal. Ask the children, nieces or nephews of the men and women who worked in this area at Central Ohio Coal in the 1970’s and 80’s about the devastating impact of watching good paying jobs disappear before your eyes. As a product of Appalachia, I have witnessed abject poverty up close and personal. Now, because of the advent of hydraulic fracturing and horizontal drilling, Appalachia, and this area in general, has a wonderful opportunity to rise economically and be proud once again. All one has to do is drive down Southgate Parkway and witness the hustle and bustle of new construction or the full parking lots at our restaurants and stores. Take a drive out into the Eastern part of Guernsey County and witness the men and women working at the drilling pads or laying the pipelines. Head down State Route 660 and witness the dramatic growth

of Zane State University, due in large part to the expansion of their energy and engineering programs. Technical colleges and vocational schools all across Ohio are gearing up to train our young men and women to find employment in the oil and gas industry right here at home. We now have hard working men and women making a good living wage producing clean, inexpensive and abundant domestic energy to a nation that is starving for more right in our own backyard. For those of you with children or grandchildren, please consider this. Our children now have an opportunity to be raised in this area, educated in this area and secure a good paying job and stay in this area. All the while raising their children here and keeping our families intact. So, if you believe as I do, that the recent oil and gas activity has the ability to allow the people of Southeast Ohio to experience the prosperity that has alluded so many for decades then this is your call to action. Educate yourself on these issues and correct the naysayers when you hear them using misleading statements or outright lies in an attempt to deny this area a wonderful opportunity. You simply cannot under value the positive influence of a good paying job on an individual, a family, and community or a nation. Bottom line: Without the ability to provide your family shelter from the storm or food on the table, really not much else matters. Please visit www.OOGA.org and www.OOGEEP.org for more information about the oil and gas industry of Ohio.

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January 2014 Edition - Dix Communications

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Well’s brine water can fight icy roads Judie Perkowski Dix Communications

RECKSVILLE — With snow in the fore- enhanced product of the original that includes a corrosion cast, Ohio’s oil and gas industry will be as- inhibitor. That product was recently approved for use by the sisting with efforts to help keep the roads Clear Roads Organization of 26 State Department of Transsafe. portation’s including ODOT. “During this time of the year, state road crews Kris Kamps, retired director of Public Service and Properand communities make their own brine by mixing fresh water ties for North Royalton, has used AquaSalina for a number and rock salt to deice roads. Many people are unaware that of years. Ohio’s oil and gas industry is a large producer of natural brine “We did a lot of research on de-icing roads and realized that that comes from conventionally drilled wells,” said Rhonda it was costing the city more to make brine in-house than to Reda, executive director of the Ohio Oil and Gas Energy Ed- buy existing brine and have it delivered,” Kamps said. “Plus ucation Program. we realized that this product worked in lower temperatures “Brine water from conventionally drilled wells that meets and was better for the environment.” state law can be used by communities for the purpose of deicA number of Ohio oil and gas companies around the state ing roads.” are eager to supply Duck Creek Energy with produced brine. One industry member, Duck Creek Energy, is ahead of the “Our company looks forward to the opportunity of reusing curve and has developed technology to manufacture a note- for brine instead of injecting it into a disposal well,” said Doug worthy road deicer from produced brine. Gonzalez, president of Canton-based GonzOil. “Every gallon Based in Brecksville, Ohio, the company created AquaSa- of naturally occurring brine that is repurposed displaces a gallina in 2003 and received approval for its use as a deicer and lon of fresh water that is used to make brine to fight icy roads.” dust suppressant from the Ohio Department of Natural Re“Advances in technology allow the oil and gas industry to sources in 2004. AquaSalina is natural seawater that is a by- continue to be good corporate stewards of the environment,” product of oil and gas well production. Duck Creek processes Reda said. “Duck Creek Energy’s brine-based technology is the seawater to clean water standards except for the salt con- an excellent example of that.” tent into a deicer that is used by snow removal contractors and OOGEEP’s mission is to facilitate educational, scholarship, municipalities in Ohio. safety and training programs; to promote public awareness “AquaSalina eliminates the need to use fresh water to make about the industry; and to demonstrate to the general public brine from rock salt,” said David Mansbery, president of Duck the environmental, energy and economic benefits of Ohio’s Creek Energy. “It also reduces the amount of rock salt and independent natural gas and crude oil producers. OOGEEP is chlorides going into Ohio’s sewers, streams and lakes by 40 not funded with any taxpayer dollars. percent.” For additional information, contact Duck Creek Energy at Mansbery shared that several Ohio Department of Trans- 440.838.5135. portation districts are going to be trying AquaSalina+, an

Dix Communications - Gas & Oil

www.OhioGO.com

Well’s brine water can fight icy roads

David Mansbery, president of Nature’s Own Source, LLC, seated second from l, with company employees Cindy Thomas and Trish Gibbons at the third annual Oilﬁeld Expo and Safety Congress at the I-X Center in Cleveland recently. Mansbery was promoting Aqua Saline, a liquid corrosion inhibited deicer and dust suppressant, one of his company’s products, which is recycled brine water produced from conventional production wells. The product is generally used for deicing roads.

January 2014 Edition

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January 2014 Edition - Dix Communications

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Mac LTT expands out of state

Kyle McDonald Dix Communications

ENT -- 2013 proved to be a busy year for Kent-based liquid tanker trailer manufacturer Mac LTT. In addition to bolstering production of its DOT 406 trailers, which are designed for hauling gasoline and diesel fuel, the company branched its manufacturing operations out of state for the first time with the takeover of a 90,000-squarefoot facility in Billings, Mont. The company also builds DOT 407 trailers, used for hauling hazardous chemicals; vacuum trailers, barrel truck mount bobtail vacuum units and fertilizer tankers for the farm industry. Mac LTT President Jim Maiorana said Northeast Ohio Region has provided no shortfall of workers whenever the company has needed to increase its workforce. Since opening the Kent facility in 2011, the company has grown its employee base to 165 workers, 30 of which were hired in 2013. “We’ve had great success bringing in people,” he said. “Most people say, ‘We can’t find welders,’ but honestly, we’ve not had an issue.” The company hopes to increase its employee numbers to 200 in 2014. Maiorana said a clean, safe and indoor working environment has created a strong, motivated workforce at the company’s 160,000-square-foot plant at 1400 Fairchild Ave. in Kent. “We like to pay a fair wage for the industry, treat our employees with respect — the way anybody wants to be treated

— and offer benefits,” he said. When the company is in hiring mode, it often hires welders on the spot if they can pass a welding test, and even those without welding skills can still get into the trade through the company’s training program. “One of my best welders in the shop started out as a plumber and mounter,” Maiorana said. “Within a year’s period, he’s become one of our top welders in the shop.” A welder by trade, Maiorana said he often walks the assembly line himself and likes to pick up a welding machine for hands-on training. “Sometimes I come out and show these guys how its done,” he said, adding that Mac LTT’s welders like to compete amongst themselves to see who can do the best job. In Mac LTT’s first year of production in Kent, the company put out 230 tanker trailers. In 2013, it increased its output to 350 units. Upon completion, most of the tankers wind up out west, in areas including Colorado, North Dakota, Texas and Oklahoma. Maiorana said Mac LTT’s goal is to nearly triple that number in years to come. “We’d like to build about 1,000 tankers a year out of here if the market will take it,” he said. “We can do that out of our existing facilities.”

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Dix Communications - Gas & Oil

January 2014 Edition

Mac LTT expands out of state

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January 2014 Edition

Franklin Equipment opens new location

EWCOMERSTOWN — Franklin Equipment has opened a new location in Newcomerstown at 6206 US Highway 36 SW. This new branch will offer equipment rentals for construction and landscaping businesses and for the oil and gas industry. Parts and service for any equipment brand are available. This location is Franklin Equipment’s fourth in Ohio. Customers may reach the new branch by calling 492-0455. “We’re excited to open this branch,” said Tony Repeta, general manager of Franklin Equipment. “There has been explosive growth in the area, especially in oil and gas. We hope our equipment rentals will be helpful for all the industries that are building there.” Franklin Equipment offers rental equipment as well as new and used equipment and parts and service for the full range of construction and landscaping equipment. Franklin

serves a wide variety of customers, from private landscapers to large scale builders, with equipment to meet all their needs, including loader backhoes, skid steers, track loaders, compact excavators, scissor lifts, telehandlers, light equipment, ag equipment and a wide range of attachments. On-site service is available 24 hours a day, seven days a week by their certified technicians. Franklin Equipment has been selling, servicing and renting heavy machinery since 2008. The company has four locations in Ohio; Columbus, Lancaster, Dublin and Newcomerstown. Manufacturers represented by Franklin Equipment include: New Holland Construction and Agriculture, Hudson Brothers, SkyJack, Land Pride, Multiquip, Paladin, Tamco, Woods and Wacker Neuson. For information, visit the web site at www.franklinequipment.com.

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January 2014 Edition - Dix Communications

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House considers a new ‘frack’ tax Marc Kovac Dix Capital Bureau

OLUMBUS — The Ohio House began deliberations Tuesday on legislation to revamp taxes charged on oil and gas produced in eastern Ohio’s emerging shale oilfields. House Bill 375 calls for lower taxes on existing conventional wells and increasing rates on those drilled horizontally, with excess proceeds devoted to plugging abandoned wells and potentially cutting income tax rates. “I believe this comprehensive tax reform proposal is a fair and balanced approach that will provide oil and gas producers with more certainty,” Rep. Matt Huffman (R-Lima) told members of the House Ways and Means Committee. “Certainty is an important factor to companies when weighing their tax burden and deciding whether or not to invest billions into energy exploration and development within our state.” He added, “Taxpayers, of course, will benefit from this proposal as the creation of two new offsets will impact royalty owners while additional revenues are earmarked for a reduction of the personal income tax.” The legislation is a departure from a plan pursued by Gov. John Kasich, who sought to increase severance tax rates on oil and gas produced through fracking, a process that involves pumping large volumes of water, chemicals and sand into shale formations deep underground. Kasich wanted to use the proceeds of the tax increase to implement a corresponding decrease in the state’s income tax rates. The governor has said repeatedly that the changes are needed to ensure some economic benefit for Ohio from big profits expected by out-of-state energy companies. And he has said his rate proposal was still lower than other states. Republicans balked at the plan, however, saying it could stifle shale oil development and prompt energy companies to focus their attention elsewhere.

House Bill 375 House Republicans’ new bill, which has more than a dozen co-sponsors, calls for tax rates on non-horizontal wells to be cut in half. Horizontal wells would be subject to a 1 percent tax on gross receipts over the first five years of production, then 2 percent thereafter as long as production remains above certain levels. The lower rate during the initial years will allow producers to recoup their costs, Huffman said. Proceeds from the increased severance tax will first go to state regulators overseeing the fracking industry, with extra collections used to cap orphan oil and gas wells and for potential income tax rate cuts. HB 375 also includes additional tax breaks for well owners. House Speaker Bill Batchelder (R-Medina) is co-sponsoring the bill, calling it a “comprehensive, carefully constructed piece of legislation that incorporates many important aspects of oil and gas exploration in Ohio.” He added, “While I did not support previous proposals to institute a severance tax on the oil and gas industry, I believe that this legislation accomplishes many of the goals that needed to be addressed and can give Ohioans confidence in the process.” The governor has not yet taken a firm stance on the new legislation. “Ohio’s getting back on track because of jobs-friendly policies like the $3 billion in tax relief that the governor and the general assembly have enacted, and the governor is always interested in exploring additional ways to build on that tax relief and keep our economic recovery moving forward,” Rob Nichols, Kasich’s spokesman, said in a released statement. “We’re glad the general assembly took this first step, we’re studying the proposal in detail, and we look forward to working with the legislature closely as the bill moves through the legislative process.”

Dix Communications - Gas & Oil

www.OhioGO.com

House considers a new ‘frack’ tax

Support and Criticism Industry groups are supporting the bill. In a released statement, Tom Stewart, executive vice president of the Ohio Oil and Gas Association, called the legislation “rational, substantive and good for Ohio.” “If passed, the package would also provide much needed clarity for oil and gas producers who have already invested heavily and plan to invest billions more to explore the state’s Utica Shale formation,” he said. “The ongoing debate about increasing the severance tax has created an air of uncertainty within the industry. Resolving this issue will allow oil and gas development to flourish in eastern Ohio, which will expand economic opportunity and job growth throughout the state.” Some House Democrats, however, remain opposed, saying lawmakers and the governor should push for a higher severance tax rate and use the proceeds to pay for more state inspectors to regulate the industry, plus provide a needed funding boost to schools and local governments. “Every other state that has found this black and gray gold has benefited, whether it was school systems or whether it was making sure that people are being treated fairly at the local level,” said Rep. Bob Hagan (D-Youngstown). “That’s what we want to do. ... This has been under our feet for over a million years in the eastern part of the state. We’re the ones that should be the biggest beneficiaries of it instead of giving it as a tax break....” mkovac@dixcom.com or Twitter at OhioCapitalBlog.

“If passed, the package would also provide much needed clarity for oil and gas producers who have already invested heavily and plan to invest billions more to explore the state’s Utica Shale formation.” – Tom Stewart

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January 2014 Edition - Dix Communications

TOP COUNTIES WITH HORIZONTAL DRILLING ACTIVITY BY NUMBER OF SITES

1. Carroll County 360 2. Harrison County 154 3. Columbiana County 94 4. Noble County 74 5. Belmont County 65 6.Guernsey County 64 7. Monroe County 59 8. Jefferson County 37 9. Mahoning County 29 10. Portage County 15 Tuscarawas County 15 Trumbull County 15 11. Stark County 13 12. Washington County 9 13. Coshocton County 5 14. Morgan County 3 Muskingum County 3 Holmes County 3 15. Knox County 2 16. Ashland County 1 Astabula County 1 Geauga County 1 Medina County 1 Wayne County 1 WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, DRILLED, COMPLETED, PRODUCING, PLUGGED SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 12/14/13

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Dix Communications - Gas & Oil

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January 2014 Edition

OOGA official comments on tax package

OLUMBUS -- From Thomas E. Stewart, executive vice president of the Ohio Oil and Gas Association: Last week Rep. Matt Huffman and Speaker William Batchelder introduced a comprehensive oil and gas tax reform package that is rational, substantive and good for Ohio. For these reasons, the state’s oil and gas industry supports it. The package, which includes a sensible modification of the severance tax based on actual well economics, would enhance the state’s regulatory framework, increase funding for the Ohio Geological Survey and address the lingering environmental issue of plugging idle and orphan wells from historical production. If passed, the package would also provide much needed clarity for oil and gas producers who have already invested heavily and plan to invest billions more to explore the state’s Utica Shale formation. The ongoing debate about increasing the severance tax has created an air of uncertainty within the industry. Resolving this issue will allow oil and gas development to flourish in eastern Ohio, which will expand economic opportunity and job growth throughout the state. Additionally, the tax reform package would lower taxes for conventional oil and gas producers and eliminate the threat of higher taxes for the state’s thousands of royalty owners and landowners, which was a major point of contention with the

previous tax proposal. The package also earmarks excess revenue for a reduction in the personal income tax for all Ohioans. This tax reform package is based on sound regulatory, environmental and economic policy making that will allow all of Ohio to benefit from a robust oil and gas industry. The Ohio Oil and Gas Association is a trade association with more than 3,300 members involved in the exploration, production and development of crude oil and natural gas resources within the state of Ohio. For more information, visit www.ooga.org.

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January 2014 Edition - Dix Communications

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Oilfield Expo, Safety Congress draws crowd, many exhibitors Judie Perkowski Dix Communications

LEVELAND — If you ever wanted to know anything about the oil and gas industry, the Ohio Oil and Gas Association Oilfield Expo and Safety Congress was the place to be. The OOGA Expo at Cleveland’s I-X Center Dec. 4-5, sponsored by the International Union of Operating Engineers Local 18 and dozens of energy and energy associated businesses and organizations, attracted 212 exhibitors and a thousand visitors. While there were many out-of-state exhibitors represented, from as far west as Washington and Calfiornia, as far south as Florida, Georgia and Texas, and from Kansas and Nebraska in the mid-west, the majority of exhibitors were from Ohio. Exhibitors at the Expo from Guernsey, Noble, Muskingum, Tuscawaras or Belmont counties: Nicolozakes Trucking & Construction, Kimble Companies, Rig Power, Ohio Oil Gathering, Truck Sales & Service, Inc., Weavertown Environmental Group, Zanesville-Muskingum County Port Authority, Energy in Depth, Ohio Project, and Pace Analytical Service Center. The Dix Communications booth, was manned during the event by company personnel: Kim Brenning and Judie Perkowski of The Daily & Sunday Jeffersonian and Ohio GAS&OIL magazine, Janice Wyatt from the Dix corporate office in Kent, Pete Kiko from the Wooster office and Joe Gasper and Harry Newman, both from Record Publishing. Dix is the parent company of several communication entities. Copies of the Dix Ohio GAS&OIL magazine were distributed throughout the event by advertising gurus Brenning and Wyatt who offered visitors “A Luck of the Draw” chance to win a full-page, color ad in the magazine by dropping their business card into a container. A card was drawn at the close of the Expo. Winner was Sunpro, a North Canton business that provides environmental, emergency, oil and gas and high voltage services. The cavernous facility offered vendors the space to exhibit and, in some cases, demonstrate their equipment, educate the public about their business and do a lot of networking. Visitors

could chat face-to-face with representatives of businesses in virtually every facet of the oil and gas industry. The well-organized event offered sessions on industry training, continuing education and technical programs, in addition to safety rules and regulations. OOGA Director of Public Relations Mike Chadsey said, “We are very excited to almost double the number of exhibitors from last year’s event. It’s a positive indication of what’s happening with gas and oil in Ohio ... It’s a good place to do business. The Expo is an event that allows people in the business to network and showcase their services and products.” Since 1947, when a small group of independent oil and gas producers became advocates for the rapidly growing industry, the Ohio Oil and Gas Association, which has grown in size and stature, now represents more than 3,000 members in all areas of Ohio’s oil and gas industry, none more important than the discovery and development of Utica Shale. jperkowski@daily-jeff.com

Even the Pro Football Hall of Fame had an exhibit. Amy Schiefer, account executive promoting Aultworks Occupational Medicine, said football and medicine go hand in hand. The booth, one of the many at the Ohio Oil and Gas Association Oilﬁeld Expo and Safety Congress, distributed useful information and promotional items.

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A huge Baker Hughes truck used for transporting equipment to oil fields, had plenty of room to show off its cargo and accommodations for its driver. The multi-million dollar transportation vehicle and machinery were on display at the Ohio Oil and Gas Association Oilfield Expo and Safety Congress Dec. 4-5 at Clevelandâ&#x20AC;&#x2122;s I-X Center.

Joe Gasper, r, sales manager at The Record Courier in Kent, a Dix Communications newspaper, presents Pete Eliades, l, and Josh Nickles, c, of Sunpro, provider of environmental, electrical and emergency services, with a certificate for a free full-page color advertisement in the Dix Communications Ohio OIL&GAS magazine. Sunpro, provider of environmental, electrical and emergency services, has its corporate office in North Canton. Sunpro employees won the free ad at the event by depositing their company business card in a container at the Ohio Oil and Gas Association Oilfield Expo and Safety Congress. The event was held in Cleveland, Dec. 4-5 at the I-X Center.

Michael Bertolone, business representative for the International Union of Operating Engineers, Local 18, in Cleveland, operates a simulator used to demonstrate what it actually feels like to operate heavy equipment, at the OOGA Oilfield Expo and Safety Congress at Clevelandâ&#x20AC;&#x2122;s I-X Center Dec. 4-5. Bertolone said it is easier, and definitely safer, for prospective employees to practice on the simulator. The technology allows unions to integrate the training into apprenticeship programs on a variety of equipment, from earth movers to bulldozers and cranes.

Dix Communications - Gas & Oil

January 2014 Edition

A waste water tank that holds frack water for recycling was one of the 212 exhibits from businesses in the oil and gas industry at the OOGA Oilfield Expo and Safety Congress at the I-X Center in Cleveland Dec. 4-5. More than 1,000 visitors attended the annual event.

A Sunpro truck, one of the large vehicles and equipment on display at the Ohio Oil and Gas Association Oilfield Expo and Safety Congress, Dec. 4-5 at the I-X Center in Cleveland. Sunpro provides environmental, electrical and emergency services for the gas and oil industry.

Representing the Ohio Oil and Gas Energy Education Program at the OOGA Oilfield Expo in Cleveland, Rhonda Reda, OOGEEP executive director in dark jacket, and Michelle Chippas, Steiner public relations professional in red jacket, speak to visitors at the OOGEEP exhibit.

Gas & Oil

January 2014 Edition - Dix Communications

Southern Zone Edition

WHAT DOES THE MAN BEHIND THE SCREEN HAVE TO DO

WITH PROTECTING YOUR OIL AND GAS INTERESTS? Frank McClure Attorney

n this article I want to discuss something, really someone that has become important in the asset protection world, when using irrevocable trusts. In fact I use them even in revocable trusts, for the reason that these trusts will become irrevocable at some point. In fact it used to be that you would create your trust, name some trustees and hope in the future for the best for all of eternity. But, increasingly, clients aren’t leaving it to luck. They are appointing a “trust protector,” someone given broad power to reshape your trust, if it is necessary over time. Trust protectors, first came into use for offshore trusts many years ago and have gained traction over the past decade in the United States as trust vehicles have become more diverse and complex and especially for irrevocable trusts for asset protection. A trust protector is defined as an independent third party or institution given the authority to perform certain duties with regard to a trust to insure that the wishes and intent of the grantor are fulfilled. Let’s say one of the beneficiaries you named grows up to be a spendthrift or a drug addict. If the trustees wanted to cut him out of the trust, they would have to petition a court, spending money and time and with no guarantee of success. A trust protector could simply step in and do the job. A trust protector could also replace a lazy trustee, move the trust to a state with new, more trust-friendly, laws or even dissolve the trust, distributing the assets to beneficiaries outright. In short, the trust protector can do almost anything to make sure your intentions are fulfilled. What if there is a change in the law and the trust administratively will not function, call on the trust protector? A trust protector can be especially valuable for use in irrevocable trusts, which, by definition, cannot be changed by a grantor or the trustees. Remember we don’t know what the world will look like or what the relationship will be between trustees and beneficiaries or where beneficiaries reside. There are all sorts of possible nuances. A legacy trust, the domestic asset protection trust in Ohio, which could continue in perpetuity, may need a trust protector to make sure the grantor’s wishes and intentions are followed. That is no easy feat, given the longevity of the trust; plenty can change when the time frame could be “forever.” As the years go by, the present trustees didn’t necessarily know the grantor of the trust and because they have a standard as a fiduciary may want to take actions that are not what the grantor in-

tended. At this point the trust protector makes an appearance like the man behind the screen in the Wizard of Oz! Hence the title to this article. The trust protector is not like a trustee who has a day to day responsibility to take care of the trust. Like the man behind the screen, the trust protector just shows up when needed to protect the intentions of the grantor. I would be remiss if I did not give credit to Attorney James Hardgrove who originally came up with the analogy of the man behind the screen, as we were doing a presentation together in Dallas, Texas, about trust protectors, for the National Network of Estate Planning Attorneys. It is difficult to image a type of trust that would not need a trust protector. Consider revocable living trusts (RLT). This is a trust that you create for your own benefit while you are alive. You are the trustee of your own trust, and the beneficiary of your own trust. You are in total control and can use the trust assets freely, and make whatever changes that you wish while you are alive. So why would an RLT need a trust protector?

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The problem is, you will eventually die. When you die, your heirs then become the beneficiary of the trust, and whoever you have appointed as the successor trustee in your trust document will become the acting trustee. Remember the RLT is now an irrevocable trust. Therefore, the same reasons I have stated about, now become things which are now pertinent to what started life as an RLT! So who should the trust protector be? Like the trustee, it should be somebody that you place your trust in. The trust protector should generally be an attorney or a CPA. Why you may ask? Because they are trusted advisors and they should know something about trust laws. Remember, they are coming out from behind the screen and making a decision and then returning behind the screen. The trust will naturally set forth what the trust protector can and cannot do. This is necessary because a trust is a contract and all the pertinent powers and provisions must be contained in the document. So if you are wanting to protect your oil and gas interests, it is important to understand what you need in your in your asset protection and estate planning documents. It is important that you counsel with an attorney who concentrates their practice in the asset protection area of the law. If you would like more information about asset protection and estate planning or to review my past articles concerning asset protection, please go to our firm website at www.fmcclurelaw.com.

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January 2014 Edition

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Gas & Oil

January 2014 Edition - Dix Communications

Southern Zone Edition

To clean up coal, Obama pushes more

oil production

www.OhioGO.com

Dix Communications - Gas & Oil

January 2014 Edition

To clean up coal, Obama pushes more oil production Dina Cappiello Associated Press

E KALB, Miss. (AP) — America’s newest, most expensive coal-fired power plant is hailed as one of the cleanest on the planet, thanks to government-backed technology that removes carbon dioxide and keeps it out of the atmosphere. But once the carbon is stripped away, it will be used to do something that is not so green at all. It will extract oil. When President Barack Obama first endorsed this “carboncapture” technology, the idea was that it would fight global warming by sparing the atmosphere from more greenhouse gases. It makes coal plants cleaner by burying deep underground the carbon dioxide that typically is pumped out of smokestacks. But that green vision proved too expensive and complicated. So the administration accepted a trade-off. To help the environment, the government allows power companies to sell the carbon dioxide to oil companies, which pump it into old oil fields to force more crude to the surface. A side benefit is that the carbon gets permanently stuck underground. The program shows the ingenuity of the oil industry, which is using government green-energy money to subsidize oil production. But it also showcases the environmental trade-offs Obama is willing to make, but rarely talks about, in his fight against global warming. Companies have been injecting carbon dioxide into old oil fields for decades. But the tactic hasn’t been seen as a pollution-control strategy until recently. Obama has spent more than $1 billion on carbon-capture projects tied to oil fields and has pledged billions more for clean coal. Recently, the administration said it wanted to require all new coal-fired power plants to capture carbon dioxide. Four power plants in the U.S. and Canada planning to do so intend to sell their carbon waste for oil recovery. Just last week, former Energy Secretary Steven Chu announced he was joining the board of a company developing carbon capture technology. The unlikely marriage of coal burners and oil producers hits a political sweet spot. It silences critics who say the administration is killing coal and discouraging oil production. It appeases environmentalists who want Obama to get tougher on coal, the largest source of carbon dioxide. It also allows Obama to make headway on a second-term push to tackle climate change, even though energy analysts predict that few coal plants will be built in the face of low natural gas prices and Environmental Protection Agency rules that require no controls on carbon for new natural gas plants. “By using captured man-made carbon dioxide, we can in-

crease domestic oil production, promote economic development, create jobs, reduce carbon emissions and drive innovation,” Judi Greenwald told Congress in July, months before she was hired as deputy director of the Energy Department’s climate, environment and energy efficiency office. Before joining the Energy Department, Greenwald headed the National Enhanced Oil Recovery Initiative, a consortium of coal producers, power companies and state and environmental officials promoting the process. But the environmental benefits of this so-called enhanced oil recovery aren’t as certain as the administration advertises. “Enhanced oil recovery just undermines the entire logic of it,” said Kyle Ash of Greenpeace, one of the few environmental groups critical of the process. “They can’t have it both ways, but they want to really, really bad.” That has become a theme in some of Obama’s green-energy policies. To promote new, cleaner technologies, the administration has allowed companies to do things it otherwise would oppose as harmful to the environment. For wind power, the government has shielded companies from prosecution for killing protected birds with giant turbines. For corn-based ethanol, the administration underestimated the environmental effects of millions of new acres of corn farming. The government even failed to conduct required air and water quality studies to document its toll on the environment. The administration wants to make similar concessions to make carbon-capture technology a success. The EPA last week exempted carbon dioxide injection from strict hazardous waste laws. It classified the wells used to inject the gas underground for oil production in a category that offers less protection for drinking water. Oil companies using carbon to get oil also aren’t subject now to the tougher reporting and monitoring requirements that experts say are necessary to ensure the carbon stays underground, and they’re fighting an EPA proposal that would require them to be if the carbon comes from power plants covered by the new federal rules. “It amounts to looking the other way,” said George Peridas, a scientist with the Natural Resources Defense Council, which supports using carbon for oil extraction. The group believes it replaces dirtier oil or oil produced in more environmentally sensitive places and reduces carbon in the atmosphere. The administration also did not evaluate the global warming emissions associated with the oil production when it proposed requiring power plants to capture carbon. Continued on pg. 62

Gas & Oil

January 2014 Edition - Dix Communications

Southern Zone Edition

To clean up coal, Obama pushes more oil production A 2009 peer-reviewed paper found that for every ton of carbon dioxide injected underground into an oil field, four times more carbon dioxide is released when the oil produced is burned. “There is no form of energy that is free of impacts. It is always about trade-offs and someone will always be unhappy,” the paper’s author, Paulina Jaramillo, the assistant professor at Carnegie Mellon University, said in an interview. Administration officials counter by saying the oil was going to be extracted anyway, so the policy should only be seen as reducing carbon dioxide from coal plants. The administration also promotes the benefits for energy security. Every barrel of oil produced here will mean one less produced abroad. “We are taking carbon dioxide that would have gone to the atmosphere in coal plants, storing it and displacing imported oil with domestic oil,” said Energy Secretary Ernest Moniz, asking a question posed by The Associated Press on C-SPAN’s “Newsmakers” program in September. In Mississippi, where Southern Company’s Kemper County power plant eventually will supply two oil producers with carbon dioxide, Denbury Resources Inc. says it would not be able to produce oil there otherwise. Denbury is already using carbon dioxide trapped beneath a salt dome near Jackson to produce oil in the state. But it can use more carbon dioxide than nature can provide. That’s where the power plant comes in. The federal support for Kemper lowers the cost of installing the carbon capture equipment, and ultimately, the cost of carbon dioxide for the oil producer. The company has entered into a long-term contract with Southern for carbon dioxide. It will permit Denbury to recover a total of between 3.5 million and 4.2 million barrels of oil, a tiny fraction of the 91 million barrels of oil the world consumed daily last month. But for the oil companies, it still means millions of dollars more in revenue. The nearly $5-billion project received $270 million from the Energy Department, prior to the Obama administration, and $279 million more in federal tax credits. A member of Mississippi’s Public Service Commission, Brandon Presley, bristled over what he described as pressure from Washington to approve the project, which already has meant a 15 percent increase in utility bills for Mississippi Power customers. Secretary Chu wrote Presley a letter in May 2010 that said without the Kemper County project, the U.S. government might not be able to use the technology anywhere. The commission approved it over Presley’s objection. “The (Energy Department) is knee deep in this,” Presley said. “I don’t think you’ll find anywhere in the country where you’ve found more heavy-handedness by the federal govern-

ment or by elected officials than what went on here to try and get this passed.” In an interview with the AP, Chu said pairing oil production with pollution reduction is an imperfect method for “developing the capture and ramping up the technologies.” “It’s not one for one,” he said. “You are not sequestering all the carbon dioxide.” While Kemper is the first, it’s not the only one. The Energy Department has provided $1.1 billion to six projects that capture carbon and sell it to oil companies. Four of those projects are power plants. The EPA recently highlighted two of those projects, with a combined $858 million in federal money, as a way to reduce power plant emissions. Both plan on selling the carbon dioxide to oil companies. “We sold the carbon dioxide immediately,” said Laura Miller, a spokeswoman for Summit Power’s Texas Clean Energy Project, which is still working on getting the financing needed to break ground on the 400-megawatt power plant in West Texas. “The projects that are still alive are the ones that are selling the carbon dioxide.” Despite billions in federal aid, coal projects that simply stored carbon dioxide failed to take off. In 2010, a plan for a $1.8 billion power plant in Illinois was replaced with a scaled-back project after it couldn’t secure private financing. In July 2011, American Electric Power, shelved a project in West Virginia that had received $334 million in late 2009, in part because a Democrat-controlled Congress failed to enact legislation, backed by the administration, that would have created a marketplace for carbon dioxide. Oil recovery provided a market for carbon dioxide in the absence of federal legislation or regulations that put a price on it. For power plant operators, it could help offset the cost of the technology to capture it. But the marriage was rocky from the start. Oil companies want to use the least amount of carbon dioxide possible to extract oil, not exactly what is desired in a strategy to reduce pollution. Oil producers, no stranger to federal regulations, don’t want to deal with any more rules, such as strict and costly monitoring and reporting requirements aimed at verifying that the carbon doesn’t escape. On the coal side, it takes more energy, and thus more coal and more carbon dioxide pollution, to run the equipment needed to capture carbon and compress it to be sent down a pipeline to an oil field. It’s the other environmental effects that have local environmentalists concerned. There still is a 31,000-acre surface mine, and the other pollutants that power plants emit that could sully the air locally. Southern Co. was recently cited by the state for discharges from its reservoir on site, which the company blames on ex-

Dix Communications - Gas & Oil

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January 2014 Edition

To clean up coal, Obama pushes more oil production cessive rainfall and the fact that equipment that draws water from the reservoir for use in the plant was not ready. “If you add up all the environmental costs, this is not going to be green,” said Stan Flint, a Jackson-based consultant who works with environmental groups. In June, the Energy Department and California Energy Commission raised serious environmental concerns about a California-based carbon capture-enhanced oil recovery project funded by the Obama administration and recognized by the EPA when it released its power plant standards. In a preliminary environmental evaluation, state and federal officials found the Hydrogen Energy California Project would fail to comply with laws and standards in eight out of 16 environmental areas evaluated. The concerns included whether the project would comply with state landfill rules and its impacts on the blunt-nosed leopard lizard, a protected species. Other studies have looked at the association between carbon dioxide injection and earthquakes. A peer-reviewed study published in November linked for the first time earthquakes in Texas to the injection of carbon dioxide in oil fields. Another potential risk is blowouts. Many oil fields that are ideal candidates for carbon dioxide injection have many old and abandoned wells that may or may not be plugged propWe Deliver erly.

Denbury Resources has had a series of uncontrolled blowouts in recent years, as the pressure created by injecting carbon dioxide tests the cement plugs in long-shuttered wells. The largest, and one that was responsible for one of the largest environmental fines in Mississippi in the past decade, occurred in 2011 at the Tinsley Field, one of several old oil fields that will receive carbon from Southern Co.’s power plant. The company paid $662,500 for a blowout that vented carbon dioxide, oil and drilling mud for 37 days. So much carbon dioxide came out that it settled in some hollows, suffocating deer and other animals, Mississippi officials said. The company ultimately drilled a new well to plug the old one, and removed 27,000 tons of drilling mud and contaminated soil and 32,000 barrels of liquids from the site. The company still claims it’s green because of the carbon it is storing as part of its oil production process. Follow Dina Cappiello on Twitter at http://www.twitter.com/ dinacappiello Associated Press writer Matthew Daly in Washington contributed to this report.

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Gas & Oil

January 2014 Edition - Dix Communications

Southern Zone Edition

Supply industry feeling gain of oil/gas drilling Kelley Mohr / Bobby Warren Dix Communications

ILLERSBURG -- To the untrained eye, Holmes and Wayne counites have been unaffected by the oil and gas industry in Ohio in the past year. However, local businesses have seen a direct impact from oil and gas exploration in other parts of the state. “Most of the activity is east of us, so it has not had a major impact on lodging and tourism,” said Holmes County Chamber of Commerce Executive Director Shasta Mast. Last year, it seemed Holmes County was on the brink of a flurry of oil and gas activity. However, that activity never came. There had been a lot of hope swelling in Wayne County that the oil and gas development east of here would migrate this way. In the summer of 2012, Devon Energy Production became the first major player to secure a permit to drill a horizontal, hydraulic-fractured well in the county. However, the results were not what was expected, and the company pulled out. Though the play is not here now, Wayne Economic Development Council President Rod Crider and Project Manager Shawn Starlin have continued to work with local companies who are providing products to gas and oil producers. “What we’ve seen is that most of the land men and the oil companies who were trying to buy leases, that activity has slowed. Most of them are either gone or have considerably downsized their presence in Holmes County,” explained Mast. “That’s not to say it’s not going to come here, but with the price of gas decreasing it made it less affordable for them to get it out of the ground and a lot of the infrastructure needed to move the oil and gas once it is out of the ground isn’t in place.” Now, the activity is to the east and the southeast, where infrastructure is being developed to accommodate the oil and gas industry. That’s not to say that oil and gas activity has not had an impact in Holmes County. “I think it has had an impact on businesses in Holmes County that supply the oil and gas industry — like Pride of the Hills, who is still experiencing considerable growth,” said Mast. Pride of the Hills Manufacturing, based in Big Prairie and Killbuck, manufactures, installs and services pressure vessels,

piping and other equipment and services used in the oil and gas industry. The latest project involved Pride of the Hills Manufacturing Wooster, formerly TRING Corp. The Wooster-area manufacturer joined with Pride of the Hills, Killbuck, and it is undergoing an expansion with nearly $3 million invested in new equipment. Much of the growth Pride of the Hills is seeing in Holmes County is being driven by the gas and oil business. The company manufactures gas production units, and Dan Oliver said Pride of the Hills’ technology will be able to help producers who engage in hydraulic fracturing to save money. The gas production units separate gas, oil, sand and water, and it reduces the pressure of the gas coming out of the ground. Because it separates the gas, drillers will be able to use the gas to power the engines that drive the fracking process. “The gas is theirs; they pay for diesel” to operate the engines,” Oliver said. Looking forward, Mast expects to see casual interest from oil and gas companies in leasing Holmes County land, and “I think from the supply perspective, businesses like Pride of the Hills will continue to grow, hire and expand. Different businesses are adding shifts, adding employees, adding space and adding equipment. So while we’re not in the thick of it, it certainly impacts Holmes County,” she said. It’s already happening. Just look at the Village of Killbuck, home to Pride of the Hills and several other businesses. “Their industrial park went from being empty to being full,” said Mast. WEDC also worked with Bob Gralinksi, general manager for Scot Industries, on an expansion project earlier in 2013. The company received certification from the American Petroleum Institute to capitalize on opportunities to work with supply companies and provide them with heat-treated pipes. Another project was with Wooster Tool & Supply, a Westerman company. The company manufactures gas and oil separation tanks and gas production units that are used by companies drilling for gas and oil in the Marcellus and Utica shale plays. The expansion was due to the expected continued growth of oil and gas drilling in Ohio.

Dix Communications - Gas & Oil

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Supply industry feeling gain of oil/gas drilling

January 2014 Edition

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Southern Zone Edition

January 2014 Edition - Dix Communications

End of The Year Tax Talk Marc Kovac Dix Capital Bureau

The state is using the product on wintery roads in several districts. “During this time of the year, state road crews and communities make their own brine by mixing fresh water and rock salt to deice roads. Many people are unaware that Ohio’s oil and gas industry is a large producer of natural brine that comes from conventionally drilled wells,,” Rhonda Reda, executive director of the Ohio Oil and Gas Energy Education Program, said in a released statement. “Brine water from conventionally drilled wells that meets state law can be used by communities for the purpose of deicing roads.” • Production Records: Upward of $2.7 billion in “geologic commodities,” including oil and natural gas, were produced in Ohio last year, according to a report released by the Ohio Department of Natural Resources. Among other findings, the agency said “natural gas production increased 18.4 percent.” • More Severance Tax Talk: The Ohio House began deliberations to revamp taxes charged on oil and gas produced through fracking. House Bill 375 calls for lower taxes on existing conventional wells and increasing rates on those drilled horizontally, with excess proceeds devoted to plugging abandoned wells and potentially cutting income tax rates. The legislation is a departure from a plan pursued by Gov. John Kasich, who sought a bigger increase in severance tax rates on oil and gas produced through fracking and use the proceeds for a tax cut. Marc Kovac is the Dix Capital Bureau Chief. Email him at mkovac@dixcom.com or on Twitter at OhioCapitalBlog.

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OLUMBUS — An update on lawmaker action and other activities at the Ohio Statehouse related to horizontal hydraulic fracturing: • Natural Gas Cars: The Ohio House began hearings on legislation to give tax breaks to consumers and businesses for purchasing new vehicles of converting existing ones to run on natural gas. HB 336 also would provide incentives for the purchase of electric vehicles and phase-in motor fuel tax collections for compressed natural gas. The bipartisan legislation has more than 60 co-sponsors, including its two primary carriers, Reps. Dave Hall (R-Milllersburg) and Sean O’Brien (D-Brookfield). It’s aimed at taking advantage of increased oil and natural gas production in eastern Ohio’s emerging shale oilfields. “Ohio has an enormous opportunity present in shale - an opportunity which many states can only dream of having,” Hall said. “But unlike our friends to the east, west and south, we aren’t fully harnessing the potential of natural gas after it has been developed. HB 336 would greatly improve Ohio’s existing alternative fuels policy and has the right mix of incentives to spark investment. Passing this policy sends a clear message to car owners and companies everywhere: Ohio is CNG-friendly.” • Severance Tax Talk: The Ohio Farm Bureau Federation took positions on a number of policy issues, including one related to taxes on oil and gas produced via horizontal hydraulic fracturing. According to a released statement, delegates at the group’s annual meeting “prioritized how oil and gas severance tax revenue should be used: First use should be for oil and gas regulatory programs, followed by local economic development and then income tax reduction. Delegates also called for any tax credits offered on new severance taxes to proportionally benefit producers and landowners with royalty interests.” • Winter Roads: A company is touting its road deicer that is produced with brine from oil and gas production. David Mansbery, president of Duck Creek Energy, based in Brecksville, says the company’s AquaSalina product “eliminates the need to use fresh water to make brine from rock salt” and “reduces the amount of rock salt and chlorides going into Ohio sewers, streams and lakes by 40 percent.”

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Gas & Oil

January 2014 Edition - Dix Communications

Southern Zone Edition

Tax revenues continue to climb Shawn Bennett Energy In Depth - Ohio

ince Utica Shale development took off in 2011, companies have been investing a tremendous amount of capital in eastern Ohio. Billions of dollars are being spent to create muchneeded infrastructure, developing well sites, and constructing regional headquarters for service companies. In addition, landowners have benefited from lease payments, businesses have seen an uptick in sales activity, and counties are having their roads improved on behalf of the companies operating in their communities. This kind of investment translates to another often-unappreciated benefit: a significant increase in sales tax revenues. Going through the Ohio Department of Taxation’s sales tax distribution website, the true impact of that increased revenue is revealed: Over the past two years, counties with Utica Shale activity have all experienced remarkable increases in sales tax apportionment. Consider: In 2011, the total sales tax apportionment for just five counties — Carroll, Harrison, Noble, Guernsey and Belmont — was more than $15.5 million. But by 2013, revenue jumped nearly 50 percent to $22.9 million. Let’s take a closer look at how oil and gas development is rejuvenating eastern Ohio’s economy, county by county. • Carroll County In 2011, Utica Shale development was just beginning to take off in Carroll County. Since that time, Carroll County has continued to be the top permitted county in the state with 360 Utica permits. In 2011, Carroll County’s sales tax apportionment was $1,933,378.81. As development continued to increase in the county, so did tax revenue: activity in 2012 brought in $2,551,864.99, representing a 32 percent increase in apportioned funds for the county. At the end of 2013, Carroll County’s growth continues — and doesn’t look to be slowing down anytime soon. In 2013, Carroll County brought in $3,279,914.92 in sales tax apportionment. The growth from 2012 to 2013 was a solid 28 percent. To put the total growth into perspective, sales tax apportionment in Carroll County grew by a total of 70 percent over just a two year span. • Harrison County Harrison County is the uncontested leader in sales tax apportionment over the past two years. The county now has two natural gas processing projects by MarkWest and Utica

East Ohio operating and expanding in the county. Utica Shale developers are also seeing very promising results from wells there, which why it is the second most permitted county in the Utica. In 2011, Harrison County’s apportionment was $979,510.94. As development continued to increase in the county, 2012 brought in $1,211,773.78 — a 24 percent increase. In 2013, Harrison County received an amazing $3,131,912.21 in sales tax apportionment, which is an incredible 158 percent increase in just one year. Of course, if we look at a combined two year comparison, that number grows to a monstrous 220 percent growth. • Noble County Representing the southern portion of current Utica Shale development, Noble County is currently experiencing growth it has not seen in years. The home of the first oil well ever developed, the reemergence of expanded oil and gas development is a welcomed boost to the local economy. Noble County is now home to a MarkWest natural gas processing complex, and some very successful wells by Rex Energy, Antero Resources and CONSOL Energy. NobleCounty received $726,578.72 in sales tax apportionment in 2011 prior to shale development. As we moved into 2012, the tax receipts grew to $858,006.59, representing an 18 percent increase in apportioned funds for the county due to responsible development. In 2013, development increased as companies saw strong results from their wells, and MarkWest began constructing its natural gas processing complex. This new development boosted the county’s sales tax apportionment to $1,300,085.89, representing a 51 percent over 2012. All told, thanks to Utica Shale development Noble County’s sales tax apportionment grew 79 percent over the past two years. • Guernsey County On the western edge of current Utica Shale development, Guernsey County is encountering remarkable sales tax apportionment growth due to increased shale development in the region. Being at the crossroads of I-70 and I-77, Guernsey County is not only benefiting from development in the county, but also the development in neighboring counties where goods and services may be less attainable. In 2011 Guernsey County received $4,072,011.88 in sales tax apportionment prior to shale development. Moving into 2012,

Dix Communications - Gas & Oil

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January 2014 Edition

Tax revenues continue to climb Guernsey County experienced a sales tax growth of 13 percent by bringing in $4,591,357.14 in revenues. Fast forward to 2013 and Guernsey County is continuing to grow, bringing in $5,427,179.59, which is an 18 percent increase from 2012 and a noteworthy 33 percent improvement since 2011. • Belmont County Belmont County is home to some of Ohio’s most productive wells by Gulfport Energy. The continued exploration and development in this county bodes well for the area’s economic future, too. In 2011, Belmont County’s apportionment was $7,825,276.73. As development continued to increase in the county, tax revenues grew by 12 percent to $8,738,465.46. At the end of 2013, Belmont County continues to grow at a steady pace, bringing in $9,794,803.51 in sales tax apportionment, representing another 12 percent growth year over year. These revenues are going back to counties to help them run their local governments and pay for needed projects, many of which may not have had available funding prior to shale development. When discussing oil and gas development, the conversation is usually focused on the jobs created by the industry (a recent Ohio Department of Jobs and Family Services report showed shale jobs are up 30 percent over the past two years), or the low natural gas prices resulting from increased development. Rarely do folks begin to correlate the impact of having a thriving economy and improving public budgets, which is exactly what’s happening in the counties where development is taking place. Utica Shale development has brought immense growth to our counties’ sales tax apportionments over the past two years. As we continue to develop the Utica Shale and invest into our communities, this number will continue to rise, giving our entire state a stronger and more sustainable economic future.

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Gas & Oil

January 2014 Edition - Dix Communications

Southern Zone Edition

Safety program looks at ‘burner’ management Judie Perkowski Dix Communications

AMBRIDGE -- Introducing several guest speakers at the December Buckeye STEPS meeting, Bill Nicolozakes, standing in for the organization’s president, Joe Greco, said Buckeye STEPS will begin meeting every month instead of the current schedule of every other month. “We will alternate monthly meetings between a venue in Canton and our regular venue in Cambridge at Zane State College. The Jan. 17, 2014 STEPS meeting will be in Canton; the next Buckeye STEPS Cambridge meeting will be Feb. 7, 2014.” Nicolozakes introduced Jeff Eldredge, sales representative for Profire Energy, Inc., who brought the company’s actual equipment to demonstrate the Burner Management System. “The Burner Management System is used in any upstream and midstream process, any where there is a burner. For instance, lighting the burner to flare gas on an gas and oil rig. One way some companies do this is by lighting the tip of an arrow and having an archer (or bowman) or maybe even a toxophilite — an expert archer — shoot the flaming arrow to light the burner. They must have gotten the idea from the opening of the 1992 Olympic games. “Regardless, that and other archaic, manual ways to light the rig’s burner is downright dangerous. The Burner Management System regulates the gas flow and pressure and shuts off automatically if there is a problem. The operator is never in any danger. The system’s specific application meets safety requirements. Profire will install the system and provide training and maintenance. “BMS goals are to promote safety, protect the environment and increase profitability. It’s just not the box, it’s the entire system,” said Eldredge. “Cost of the system depends on the required equipment and sells for $1,500 to $8,000.” The Burn Management System is a product of Profire Energy, Inc., manufactured in Canada, where manual lighting is illegal. The company also has established an office in Linden, Utah. For more information about the BMS, contact Eldredge at JELDREDGE@PROFIREENERGY.COM. • Jeff Voorhies of Hy-Bon Engineering, an expert in vapor recovery, said if you can collect and contain waste gas emissions, you can turn it into revenue. “You are losing money by not collecting waste gas vapors,”

he said. “Flaring is wasting resources. It is better to recover than to burn it. What gets measured, gets controlled, which makes money. “We offer one-stop shopping. We do the surveys at the work site and determine what works for your company. “Hy-Bon has strengthened its emissions management and vapor recovery stronghold in the oil and gas industry by acquiring Electronic Design for Industry (EDI) in Belpre.” According to its website, Hy-Bon: A global industry leader since 1952, specializes in the identification, quantification and capture of low pressure gas streams, with successful projects currently operating in over 25 countries, ranging from desert to offshore service, improving profits and reducing major greenhouse gas emissions. • Matt Hennis of Ohio Utilities Protection Services, said he deals with contractors. He is a representative between your problems in the field and the OUPS. The OUPS was established in 1979 as a non-profit available 24 hours a day, seven days a week, 365 days a year. By law, everyone must contact the Ohio Utilities Protection Service, 8-1-1 or 1-800-362-2764, at least 48 hours, but no more than 10 working days (excluding weekends and legal holidays) before beginning any digging project. “A vital resource for Ohio residents and businesses alike, the Ohio Utilities Protection Service acts as a communication link between utility companies and individuals planning any digging activity. The Ohio Utilities Protection Services website includes all the information you need to dig safely and protect your community.” • Shane Farolino, Esq. of Roetzel & Andress, a firm more likely known as experts in eminent domain in Ohio. Farolino gave an update on drillers reporting requirements update and EPCRA. EPCRA stand for the Emergency Planning and Community Right-to-Know Act, created in 1986 to help communities plan for emergencies involving hazardous substances. EPCRA requires hazardous chemical emergency planning by federal, state and local governments, Indian tribes, and industry. It also requires industry to report on the storage, use and releases of hazardous chemicals to federal, state, and local governments. Previous implementation of EPCRA reporting requirements for the oil and gas industry was a statement of production due on March 1 of every year, and production reports of

Dix Communications - Gas & Oil

Safety program looks at ‘burner’ management oil, gas and brine for the previous calendar year. Since 2001, the filing of statement of production satisfied EPCRA reporting requirements, but in April of 2013, a petition challenged whether compliance stated in the Ohio Revised Code. Two statutes, ORC 3750.08 and ORC 1509.11, constituted compliance with EPCRA. The U.S. Environmental Protection Agency said oil and gas drillers must report independently under EPCRA. Farolina also explained additional sections of EPCRA in regards to the oil and gas industry. In other STEPS business, the slate of officers for 2014 was submitted. All retained their positions by acclamation. Next meeting of the Buckeye STEPS will be Feb. 7 at Zane State College in Cambridge. The STEPS acronym stands for Service, Transmission, Exploration, Production Safety Network, which promotes safety, health and environmental improvement in the exploration and production of oil and gas in Ohio. jperkowski@daily-jeff.com

January 2014 Edition

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MarkWest in joint venture with Gulfport Energy M

arkWest Energy Partners and the Energy & Minerals Group, announced this week definitive agreements with Gulfport Energy Corporation to provide stabilization services and potential gathering services for condensate produced within an area that includes Belmont, Harrison, Guernsey, Noble and Monroe counties. Gulfport is rapidly developing their acreage within the wet gas, retrograde condensate and oil windows of the emerging Utica Shale, and currently has over 147,000 net acres under lease. In conjunction with these agreements, MarkWest and EMG will form Ohio Condensate Company, LLC, a new joint venture related to the development of industry-leading facilities and services to support the rapid growth of condensate production occurring in the liquids-rich areas of the Utica Shale. Discussions regarding the joint venture’s condensate solutions are also underway with numerous other Utica producers. Initial infrastructure development will consist of a new condensate stabilization facility, with associated logistics and storage terminal capabilities to be constructed in Harrison County and placed in service by the third quarter of 2014. The facility will have initial stabilization capacity of 23,000 barrels per day (Bbl/d) and an immediate 30,000 Bbl/d expansion is anticipated. The facility will be co-located and fully integrated with condensate storage, and a truck and rail loading terminal that will be constructed and operated by a subsidiary of Toledo, Ohio-based Midwest Terminals and will exclusively serve the joint venture. In the future, a condensate gathering system and regional pipelines may be constructed to support additional deliveries to the facility. Furthermore, the facility will serve as the origin for the previously announced Cornerstone Pipeline, a condensate pipeline project that will terminate near Canton, and is scheduled to become operational by late 2016. MarkWest and EMG are currently developing the largest fully integrated midstream solution in the Utica Shale, which includes hundreds of miles of gas and natural gas liquids gathering pipeline, up to three large-scale complexes totaling more than 1 billion cubic feet of processing capacity and 138,000 Bbl/d of ethane and heavier fractionation capacity. “We are very excited to continue expanding our relation-

ship with Gulfport Energy and provide a critical new service offering for the stabilization and marketing of condensate. Together with EMG, the formation of an integrated condensate solution is a significant milestone in our ongoing development of full-service midstream infrastructure in the Utica Shale and will provide producers with the ability to capture additional uplift from their growing liquids production,” stated Frank Semple, Chairman, President, and Chief Executive Officer of MarkWest. “We believe the increased use of condensate as a feedstock for refineries, and the growing demand from Canada for diluent, will support local, regional and international consumption of Utica condensate.”

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ODNR director says Utica is ‘real deal’ Laurie Huffman Dix Communications

ANTON -- “A total of 270,000 wells have been drilled in Ohio during the last 150 years of oil and gas production. And, we once thought we had enough natural gas to last 10 years. Now, we believe we have enough to last a century,” James Zehringer, director of the Ohio Department of Natural Resources, said during a recent talk at Malone University, in Stark County. “Utica is the real deal. And the numbers of wells being drilled show it,” Zehringer said. He pointed out at this time, a total of 1,006 wells are permitted, 617 are drilled, and 260 are in production. Right now, Utica wells produce 12 percent of the state’s oil needs and 16 percent of its natural gas demand. He also said the state wants to continue to monitor and regulate the activity on its own. He said the federal government doesn’t have the staff or the resources to run the regulatory program. However he admitted Ohio has a lot of “catching

up to do.” “Gas and oil production has been around for a very long time in Ohio, but it is increasing. We have 49,000 wells in production now, and there were no regulations in place at all until the mid-1960s. So, we have a lot to do to stay ahead of the curve and catch up,” Zehringer said. The federal government gave the state of Ohio $170,000 last year to run the regulatory program for gas and oil production. And, Zehringer pointed out if the federal government had to do that on its own for the state with only that amount of money, it wouldn’t stand a chance of being handled as well as the state is handling it, at a total cost to Ohio of $2.1 million per year. “Governor (John) Kasich recently sent a letter to President (Barrack) Obama to tell him we want to remain in charge of our own oil and gas regulations. We know our own geology, and we also want to work with our local government on this,” closed Zehringer.

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Jobs outlook high for 2014

Southern Zone Edition

Rob Todor Dix Communications

ob opportunities in the gas and oil industry continue to grow as the need for experienced and qualified workers are in demand, says Mike Chadsey, Director of Public Relations with the Ohio Oil & Gas Association (OOGA). In the first quarter of 2013, there were more than 5,000 job postings online in Ohio in core and ancillary shale-related industries, according to a report published by the Ohio Department of Job and Family Services. “Stable jobs … increased in all core shale-related industries: oil and gas extraction, support activities for mining, pipeline transportation of natural gas, and utility system construction,” the report said. Chadsey says the top-five careers needed are CDL drivers, machinists, diesel mechanics, welders and well-tenders. “CDL drivers and welders have always been a need,” says

Chadsey. “Those jobs have been there from the start. The others fluctuate as the needs change.” With the emphasis on more upstream construction in the last 12-18 months, particularly in Eastern Ohio, some of the jobs in need have changed. However, with those upstream facilities completed and operational, the need for drivers, particularly, continues to be strong to bring the product from the field. “There are so many loads to move,” says Chadsey, “whether you are talking about water, aggregate and sand to the site, or bringing the product or water out. More of our wells are now being turned on-line.” With the continued demand for skilled laborers, drivers and field technicians, there’s been more emphasis on proper instruction and training for potential hires. According to Chadsey more than 70 programs in high schools, colleges and tech-

SHALE-RELATED EMPLOYMENT BY YEAR 2011 – 161,435 2012 – 167,310 2013 (1st quarter) – 169,235 SHALE-RELATED ESTABLISHMENTS BY YEAR 2011 – 13,387 2012 – 13,412 2013 (1st quarter) – 13,480 Wages (2012 2nd quarter through 2013 1st quarter) The average wage across all industries was $44,367. The average wage in core shale-related industries was $74,382, which was $40,015 greater than the average for all industries. The average wage in ancillary shale-related industries was $59,154, which was $14,787 greater than the average for all industries. Source: Ohio Department of Jobs and Family Services

Dix Communications - Gas & Oil

Jobs outlook high for 2014 nical schools have been approved for supplying the gas and oil industry with qualified workers. As well as jobs that demand a strong, physical labor force are positions that require engineering degrees, says Chadsey. “There are so many jobs that require the ability to work with computers,” he says, “that it requires a different sort of person than 50 or 100 years ago. Now you have to be able to work with your brain as well as your back.” Whatever the position, flexibility is a key component. There’s a lot of travel involved, not just from site to site, but as new well sites are developed. Interested persons who require training for specialized jobs in the gas and oil industry can visit local OhioMeansJobs Centers, which provide free training and other services. Individuals can also post their resumes and look for jobs at www.ohiomeansjobs.com. “Without question jobs will continue to be filled in the shale industry,” says Chadsey.

January 2014 Edition

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January 2014 Edition - Dix Communications

EQT Corporation announces 2014 operational forecast

QT Corporation announced the company’s 2014 capital expenditure forecast of $2.4 billion. The forecast includes $1.9 billion for EQT Production; $475 million for EQT Midstream and the remainder for other corporate items. EQT Production: Utica Development: The company plans to spend approximately $145 million on Utica well development in 2014 — drilling 21 wells in its liquids-rich acreage in Guernsey County. The 2014 Utica wells are expected to have an average lateral length of 6,500 feet. EQT Production owns approximately 14,000 net Utica acres in Ohio. Marcellus Development: The company plans to spend approximately $1.1 billion on Marcellus well development in 2014, drilling 186 Marcellus wells with an average lateral length of 4,800. All wells will be on multi-pad wells to maximize operational efficiency and well economies. Approximately 90 percent of the Marcellus drilling program will focus on the two core development areas of southwestern Pennsylvania and northern West Virginia, with the remainder in central Pennsylvania to further de-risk this future development area. EQT production owns approximately 560,000 net Marcellus acres. EQT Production 2014 capital expenditures is projected to total $1.9 billion, excluding land acquisitions. The breakdown is $1.6 billion for well development, $50 million for developmental geological and geophysical activities and the remainder for overhead, well maintenance and compliance. The 2014 drilling program is expected to support 2015 sales volume of 575-600 Bcfe (Billions of cubic feet equivalent). EQT Midstream: EQT plans to invest $475 million in 2014.

The breakdown is estimated to be $345 million for Marcellus gathering infrastructure and $90 million for upgrades to the Allegheny Valley Connector, a Federal Energy Regulatory Commission regulated transmission pipeline that EQT acquired as part of the sale of its utility business, and the remainder for maintenance and compliance activities. Funding will be provided by cash-on-hand at year end, which includes proceeds from the sale of Equitable Gas Co., and cash generated from operations. EQT Corporation is an integrated energy company with emphasis on Appalachian area natural gas production, gathering and transmission. With more than 120 years of experience, EQT continues to be a leader in the use of advanced horizontal drilling technology — designed to minimize the potential impact of drilling-related activities and reduce the overall environmental footprint.

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January 2014 Edition

Caldwell receives part of oil lease payment Lisa Loos Dix Communications

ALDWELL — Caldwell received part of a oil lease agreement payment recently. A check for $670,950 was added to village coffers. Those funds are expected to help operate the village for the next year, said Councilman Jeff Minosky, chairman of the finance committee. “We don’t need quite that much to run the general fund so we’re going to move $200,000 from the general fund account to back to the light plant investment,” said Minosky. This will allow the money to draw interest. Council approved the transfer of $200,000 from the general fund to Raymond James Financial. The funds will go back to the light plant depository bond fund, said Minosky.

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Light plant investment monies had been withdrawn in order to pay for general fund expenses in 2013 after the defeat of the village income tax a year ago. Council approved the extension of a water withdrawal, pipeline access and damage agreement with CNX Gas Co. to supply effluent water to the company for fracking operations in Noble County through Dec. 31, 2014. The current contract runs through Dec. 31. The pact is in return for repairs to the water plant parking lot. Consol Energy, CNX Gas Co. reported that taking effluent water from Caldwell is a contingency plan and its primary source of water is surface water near a well. lloos@daily-jeff.com

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January 2014 Edition - Dix Communications

State grants fund gas/oil education

Marc Kovac Dix Capital Bureau

OLUMBUS — On Dec. 16, the Ohio Controlling Board signed off on more than $88 million in grants to help schools cut their costs and better teach children. The total included more than $15 million for efforts to prepare students for jobs in eastern Ohio’s emerging shale oilfields. The lawmaker panel left intact all 24 grant suggestions offered by state education officials in the first round of a program backed by Gov. John Kasich and included in the state’s $62 billion biennial budget earlier this year. A total of $250 million - $100 million in the current fiscal year and $150 million in the next one - was earmarked for grants for new technology or other projects aimed at improving student achievement, reducing costs and directing more state funding into classrooms.

A new governing board reviewed applications and offered its recommendations for funding during a meeting earlier this month. Among the recipients OK’d by the Controlling Board Monday was the Northern Local School District, in partnership with 27 rural districts in eastern Ohio, which will receive nearly $15 million for efforts to prepare students for jobs in the oil and gas industry. Additionally, the Carrollton Exempted Village School District in Carroll County, considered a focal point of for horizontal hydraulic fracturing, or fracking, activities, will receive $4 million to “significantly partner with energy industry businesses to create an Energy Resources Dynamics program that establishes new pathways for students to jobs and postsecondary opportunities in the energy field,” according to documents.

OHIO WELL ACTIVITY

by the numbers

MARCELLUS SHALE

18 3 9 0 6 0 0 36

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

388 89 297 0 250 0 0 1024

UTICA SHALE

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

Data as of 12/14/13 Source: Ohio Department of Natural Resources

Dix Communications - Gas & Oil

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January 2014 Edition

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January 2014 Edition - Dix Communications

State of American Energy

2014

ASHINGTON — American Petroleum Institute President and CEO Jack Gerard will deliver a major address to outline priorities for oil and natural gas industry on Tuesday, Jan. 7, 2014. Members of the media are invited to participate in API’s 2014 State of American Energy event. Journalists outside of the DC metro area who RSVP in advance will receive the log in information for the live webcast and dial in information, for the post event press briefing and Q&A session with Gerard. The new year presents an unprecedented opportunity for fueling America’s future, creating jobs and providing much needed revenue to the government. We are in the midst of a game changing point in our history, and America’s future success depends on the choices that decision makers make today concerning the Keystone XL Pipeline, energy production, infrastructure, tax policy and federal regulations. Those choices can mean the difference between more jobs and investment in the U.S. or less, increasing or decreasing imports, and making the U.S. more or less energy secure. API will issue a new report examining oil and natural gas industry investments in America’s infrastructure. Gerard will

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January 2014 Edition

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Dormant Mineral Act disputes to clear title Cure title defects Breach of lease provisions: – Lack of production – Lack of royalty payments – Lack of proper shut-in or renewal payments – Implied covenants

Contact any of the attorneys below toll free at 877.876.9958 to discuss your case: William G. Williams | bwilliams@kwgd.com Gregory W. Watts | gwatts@kwgd.com Ryan W. Reaves | rreaves@kwgd.com

4775 Munson Street NW | Canton, Ohio 44718 | 877.876.9958 | 330.497.0700 OFFICES IN CANTON, AKRON, ALLIANCE, NEW PHILADELPHIA AND SUGARCREEK

10196214

J&M Carpentry

LTD

"Generations of Amish craftwork coupled with modern, professional site management”

● Agricultural ● Residential

● Commercial

FREE

Any Size All Custom ● Pole Barns ● Garages ● Barns ● Riding Arenas "The quality you want for your project” ● Stables ● Horse Barns ● Outbuildings ● Decks

1019506400

Estimates 330.231.0125

Fredricksburg, Ohio 44627 www.jmcarpentrylimited.com

MAC LTT

ACX7-8400-1-AR DOT-407 CRUDE OIL TRAILER

MAC LTT

VACUUM TRAILER

MAC LTT

LIQUID TANK TRAILERS MAC LTT MAC LTT

BOB TAIL TRUCK MOUNT

NOW LOOKING FOR NEW DEALERS – PLEASE CONTACT US

1015894900

330-474-3795 office 1400 Fairchild, Ave. Kent, Ohio 44240 sales@macltt.com www.MACtrailer.com

You’ll love the den we build for you. Your cat will love the den she thinks you built for her.

MeLinda Ricci and Nina from Sandusky, Ohio. A couple of cool cats.