August 2012 Gas & Oil Magazine by Gannett NEO

Dix Communications - Gas & Oil

August 2012 Edition

Ohio AuGuSt 2012 • www.ohiogo.com

A FREE monthly PublicAtion

Table of Contents ◆ Gas/Oil industry Doubles job

◆ ‘We must get it right’: Shale development means

creation impact .............................................. pg. 3

economic development ................................ pg. 24

◆ Penn State Study Follows the Water ............. pg. 4

◆ Chesapeake Energy employees pitch in ..... pg. 26

◆ Natural gas can fuel development in Ohio ..... pg. 6

◆ New technology, water treatment

◆ Tips on becoming industry partner ................ pg. 8 ◆ Significant U.S. shale plays

will help solve water usage issues ............... pg. 28 ◆ MAC Trailer continues strong sales ............. pg. 30

leading to bonanza ...................................... pg. 10 ◆ Foam: Fire department using new technology to

◆ BOOM leads to caution ............................... pg. 32 ◆ High schools, adult education respond to

extinguish oil and gas well fires ................... pg. 15 ◆ Rootin’ for a boomer: Money slows,

emerging industry with new curriculum ....... pg. 34 ◆ Oilfield workers help clean up cemetery ...... pg. 36

but that is to be expected ............................ pg. 18

◆ Zane State College receives funds to offer

◆ Business picks up in Carroll County ............ pg. 20

free oil and gas-related counseling to

◆ Pipeline Easements

small business owners ................................ pg. 38

Steps to Protect Landowner Rights ............. pg. 22

◆ Inside CONSOL Energy .............................. pg. 40

Attributions Andrew S. Dix Co-Publisher ASDix@dixcom.com

Ray Booth Executive Editor RBooth@dixcom.com

G.C. Dix II Co-Publisher GCDixII@dixcom.com

Cathryn Stanley Regional Editor CStanley@dixcom.com Niki Wolfe Regional Editor NWolfe@dixcom.com

Ohio A FREE mon

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• www.ohiogo AuGuSt 2012

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stry Gas/Oil Indu Doubles Jobt Impac Study Penn State llows Fo The Water me An How To BecoPartner Industry

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

Cover Photo by: Review Photo/Kevin Graff Gas is burned off at the drilling site on Route 619 in Marlboro, OH.

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August 2012 Edition - Dix Communications

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Dix Communications - Gas & Oil

Gas/Oil industry

ith the influx of oil and gas companies arriving in eastern Ohio, most people expect job growth. What they may not realize is that there are added benefits for every oil and gas job - nearly two to be exact. If Ohio follows the same trend as Pennsylvania did with the development of the Marcellus Kimberly Lewis Shale, Dix Communications it will find each job created by the oil and gas industry creates nearly two jobs somewhere in the state. Dr. John Gregor, an economics professor at Washington and Jefferson College in Washington, Pa., said the Penn State study determined the 1:2 ratio for the Marcellus Shale. He noted the model is based on the economy before shale exploration, pointing out that once development occurs, there are changes in support industries. “When they first came to Washington County, jobs were farmed outside the area, and now the jobs are inside the county,” he said, speculating the outside workers are either becoming Pennsylvania residents or have been replaced by local workers based on the reduction of out-of-state license plates. According to a study led by Dr. Tim Kelsey of Penn State University on the economic impact of Marcellus Shale in Pennsylvania, each new Marcellus well generated 30 jobs in Pennsylvania during 2009 and around $4 million in total output within Pennsylvania’s economy. “This includes the jobs created by direct gas-industry spending and indirectly through the companies with whom they

August 2012 Edition

job creation impact

contract, by worker spending of earnings and by mineral-right owner spending of leasing and royalty dollars,” the study said. Another study prepared by the World-Class Industrial Network, LLC., in collaboration with the Marcellus Shale Education and Training Center, on job creation in West Virginia’s Marcellus Shale indicates that more than “90 percent of job creation takes place in the pre-drilling and drilling phases of well development.” “Jobs, however, will not disappear once a well is completed because new ones will be started elsewhere - Marcellus activity is anticipated to last for decades,” it stated. An economic-impact study on the emerging Utica Shale, prepared for the Ohio and Gas Energy Education Program, stated in 2010, “Ohio’s natural-gas and crude-oil industry supports more than 4,490 direct jobs, which contributes to a total 12,950 Ohio jobs due to the leasing, royalties, exploration, drilling, production and pipeline-construction activities in various geological formations within Ohio.” The OGEEP study also states “more than 204,000 jobs will be created or supported by 2015 due to exploration, leasing, drilling and connector pipeline construction for the Utica Shale reserve.” It also notes 4,614 jobs were created in 2011 from well exploration and development, midstream, royalty and lease expenditures, and this number is expected to jump to 22,297 in 2012.

“Each job created by the oil and gas industry creates nearly two jobs somewhere in the state”

204,000 Ohio jobs created by the Gas & Oil Industry

Review Photo/Kevin Graff Workers unhook water lines after pumping concrete around the sheath in the well in order to help protect the local water supply.

Gas & Oil

August 2012 Edition - Dix Communications

Penn State Study Follows the

new publication, offered by the Penn State University Extension, explores the use of water in mining natural gas from deep shale formations. “Water’s Journey Through the Shale Gas Drilling and Production Processes in the MidAtlantic Region” analyses the various means in which water flows through the natural-gas John Lowe industry vis-à-vis the MarcelDix Communications lus shale shale formation. The lead author of the publication is Charles Abdalla, professor of agricultural and environmental economics. Although the publication focuses on the Marcellus shale formation in Pennsylvania, much of the information is applicable to Ohio. The chief use of water in the mining process, of course, is hydraulic fracturing — injecting water under high pressure to open fissures in rock formations, thus releasing natural gas or petroleum that had been entrapped, as it were, in the rock. “One of the misconceptions is that ground water is contaminated by [fracking],” Abdalla said. “There is not much evidence of that. These formations are so far down there is not much chance of that.” “Water’s Journey...” details how state and interstate government agencies are being challenged to keep up with the rapid pace of shale-gas development. It notes that new technologies are being tried in both the resource-development process and in managing environmental and water quality and quantity impacts. The regional river basin commissions, which exist largely in the eastern part of the Marcellus region, have been handling

Water

Water’s Jou rne the Shale Gas y Through Drilling and Production Processes in the Mid-Atlantic Region

The Mid-Atlantic Water Program is a coordinated effort among Delaware State University; University of Delaware; Universit y of of Columbia; Universit the District University of Marylandy of Maryland; , Eastern Shore; Penn State; Virginia State University; Virginia Tech; and West Virginia Universit y.

Marcellus water-management issues by developing regulations to address the industry’s demands on water resources and potential quantity impacts. “This publication focuses mostly on Pennsylvania because it has the most Marcellus drilling activity of any state to date,” Abdalla said. “Much of the data comes from the Susquehanna River Basin Commission, which has been out in front in collecting water use data. “We raise issues pertinent to most other mid-Atlantic states with Marcellus shale, as well as Ohio. “The issues discussed —including acquisition and transport of fresh water for drilling, treatment, transport, and discharge of drilling wastewater — also may pertain to other shale deposits, such as the Utica shale, which underlies parts of these states.” For more information on obtaining copies of the report, call 814-865-6713, or send a request by email to AgPubsDist@psu. edu. The publication also is available on the web at http://pubs. cas.psu.edu/FreePubs/PDFs/ee0023.pdf.

“One of the misconceptions is that ground water is contaminated by [fracking]. There is not much evidence of that.” – Charles Abdalla

Dix Communications - Gas & Oil

August 2012 Edition

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August 2012 Edition - Dix Communications

Natural gas can Fuel development in Ohio

ince graduating from Muskingum University in 1979 and earning a law degree from Capital University in 1989, Donald L. Mason’s life has been immersed in public service, evidenced by his numerous appointments to state and national committees, chairing several that dealt with energy policy. Mason was elected to the Judie Perkowski Zanesville City Council in Dix communications 1979 and served until 1983 when he was elected mayor of Zanesville as a write-in candidate. During his tenure, he oversaw natural gas and cable negotiations, water and sewer infrastructure developmental and other public works projects. In 1991, he joined the Voinovich administration as oil and gas chief and/or deputy director for the Ohio Dept. of Natural Resources. In 1998, he was appointed by Gov. George Voinovich as commissioner of Public Utilities Commission for Ohio and served until 2008. During his tenure as PUCO commissioner, Mason represented Ohio on the Interstate Oil and Gas Compact Commission from 1995-2010, where he chaired various committees, eventually becoming vice chair of the Commission. He was appointed by the U.S. Secretary of Energy Spencer Abraham to the National Petroleum Council, and reappointed by Secretary Samuel Bodman; and as government representative and chairman of the U.S. Dept. of Transportation Technical Hazardous Liquid Pipleine Safety Committee. But, when asked about what he considers to be his most important accomplishments during his tenure in public office and government agencies, he said, “When I was mayor of Zanesville in the 1980s, all economic development efforts were dispersed between various government entities. It was very politi-

ECM develops branch in Ohio

Robert Russell, chief operating officer for Energy Construction Management, looks over a generator used in the oil and gas industry. ECM Rentals rents a variety of equipment used in the oil/ gas industry including compressors, pumps, lifts, heaters and more.

“Natural gas can step into the markets to replace coal at a tremendous savings to the Ohio electricity customer.” – Donald Mason

cal and cyclical. One of my advisors suggested the concept of bridging city and county friction by creating a combined entity that would gather financial and political strength of the city and the county. The county commissioners were very receptive and created a partnership that spanned political party and countycity politics — the Muskingum County Port Authority. “A private study was conducted to determine strengths in the community. That led to recognition that I-70 was the perfect avenue for developing travel and tourism. That is when the county and city created the Zanesville-Muskingum County Convention and Visitors Bureau, which has been a real leader in promoting activities and bringing in outside dollars to the community. “The Muskingum Port Authority and the CVB are key components in the county’s success ... Both entities also have a positive impact on surrounding counties, in addition to Zane State College, which has been a key factor in promoting and providing the education needed for a skilled workforce. “Recently there have been a lot of commercials on TV about coal from the American Coalition for Clean Coal Economy. Coal has always been in abundance in this country. And, for a long time it has served a purpose. Coal is in transition and coal companies are trying to create cleaner emissions. But, natural gas has half of the carbon emissions and none of the particulate matter of coal, and it is cheaper than coal ... Natural gas drilled in our region can easily be utilized for electric power generation,” said Mason. “Natural gas can step into the markets to replace coal at a tremendous savings to the Ohio electricity customer, improve the environment immediately and provide true economic stimulus in the way of jobs and royalty checks to landowners. “The biggest savings are at the bottom line. Natural gas is a ‘natural’ transition for electricity generation because it is domestic, cheaper than coal, more abundant in Ohio, half the carbon content of coal and provide royalties to local farmers and landowners.” Involvement in service applies to Mason’s personal as well as public life. He has been a Rotarian with 30 years of perfect attendance at the Zanesville Noon Rotary Club, he is a 32nd Degree Mason and a Shriner, and was a recipient of an award for outstanding community service by the Grandmaster of Continued on pg. 42

Dix Communications - Gas & Oil

August 2012 Edition

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Gas & Oil

August 2012 Edition - Dix Communications

Tips on becoming industry partner Kimberly Lewis Dix Communications

hesapeake Energy, EnerVest and Rex Energy representatives believe local vendors will benefit from the oil and gas boom, but they do offer some advice on getting on the list. Mark Matusik of Chesapeake Energy, Jim Pritt of EnerVest and Steve Harris of Rex Energy recently said each company requires a master service agreement, which lists the services a vendor can provide. Prospective vendors are reviewed by a risk-management team prior to hiring, since safety is paramount in the oil and gas industry and the industry expects the same for any business it hires. Chesapeake’s master service agreements can be found at its website, www.askchesapeake.com. Matusik said an existing contractor must be unable to meet the company’s requirements before it considers a new vendor. Pritt of EnerVest points out that as shale exploration grows in Ohio, support companies and vendors will move in this direction. Pritt believes the smaller size of EnerVest allows the company to make its decisions more quickly, including the use

of local vendors. Harris of Rex Energy explained the company keeps a list of companies and when services become available, Rex Energy will contact a local supplier to see if it is interested. He recommends interested businesses go to www.rexenergy.com, and click on “supplier info” under “contact us.” “Be patient, there will be opportunities,” Matusik advised. He points out field operators are encouraged to recommend businesses to begin the vendor process. James Ladlee, associate director of the Marcellus Center for Outreach and Research with Penn State Extension, recommends patience and “polite persistence” to local business owners interested in developing a relationship with the oil and gas companies. Specializing in workforce development, Ladlee advises business owners to provide industry field representatives with several business cards so they are aware of the local business and its interest. “And if they call, over deliver,” he stressed. Ladlee also suggests businesses look at providing industryrelated services and items, such as steel-toed boots and clothes.

“Be patient, there will be opportunities.” – Mark Matusik Chesapeake Energy

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August 2012 Edition - Dix Communications

Significant U.S. shale plays leading to bonanza

Norm Shade President, ACI Services

he production of natural gas from shale formations has rejuvenated the natural gas industry in the United States. Shale is the most common type of sedimentary rock. Unlike conventional oil and gas reservoirs, shale gas and oil are self-contained petroleum systems in which the organic carbon-rich shale serves as the source, the reser-

Fort Worth area of Texas was the first economically successful natural gas play in the world as new seismic (underground shock wave) testing and modeling, horizontal drilling, and hydraulic fracturing technologies were developed and applied in the past decade. The Barnett success, along with several years of high natural gas prices, spurred companies to search for other sources of shale gas across the U.S. Some of the other significant shale gas plays include the Antrim Shale located in Michigan; the Fayetteville Shale in Arkansas; the Haynesville Shale in Louisiana and Texas; the Ohio (Devonian) Shale in Pennsylvania, Ohio, Kentucky and West Virginia; the Woodford Shale in Oklahoma; the huge Marcellus Shale in Appalachia; and the promising Utica Shale located primarily in eastern Ohio and western West Virginia.

“Oil from shale is the most significant new development in the U.S. energy picture...”

voir and the seal. When shale gas wells come on-line, they start out with high production rates. But production typically declines 50 to 60 percent in the first year. After that, the well production declines more slowly, gradually leveling-off to provide a long production life of sometimes 50 or 60 years. The Barnett Shale in the Dallas –

Continued on pg. 39

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August 2012 Edition - Dix Communications

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Dix Communications - Gas & Oil

foam :

August 2012 Edition

Fire department using new technology to extinguish oil and gas well fires

n an effort to maintain safety for those they serve, the Newcomerstown Emergency Rescue Squad’s Fire Division has invested in a new way of helping fight oil and gas well fires. This new way of fighting fires is actually through an application of a specialized foam directly applied on the fire. The foam prevents the reNiki Wolfe lease of vapors from the fire Dix Communications by “blanketing” the fire and essentially extinguishing it, said Heather Stein-Wells, president of NERS. “It looks like a gigantic bubble bath for lack of a better description,” she added. So far, the department has purchased 10 five-gallon pails of the foam. However, Stein-Wells said the foam is rather expensive. She said the foam costs approximately $28 per gallon, and this type of foam is known as ATC AR-AFFF foam or Aqueous Film Forming Foam. The foam is biodegradable and environmentally-friendly which requires very low energy input to produce a very high quality foam blanket that floats on the fuel surface. Stein-Wells said the foam is mixed with water in hoses on the fire truck and these specialized hoses are used to spray the foam on the fire. They also have a portable foam pack that is used in cases where the fire is relatively small in size or difficult to get to but very flammable. She said the department has been called to several oil and natural gas well fires recently. Most recently, she said they were called to help with a fire at an oil well storage tank explosion off River Road, Gnadenhutten, in January of this year. However, one of the main problems for firefighters to extinguish the fire is actually turning off the fuel source. To do that, firefighters must call the telephone number of the company on the side of the well that is on fire to have company officials respond to the scene. In that case, she said firefighters use binoculars, if they cannot get close to the fire. She also said on-lookers and sight-seers are also a problem when firefighters are trying to locate the well site as the vehicles hinder the response of emergency vehicles by blocking the road. Locating the well itself can be difficult, especially when the wells don’t have addresses. “Sometimes that’s a challenge because there is no address to the site so that makes it more difficult to locate for firefighters and also for the person calling in the fire if they are not familiar with the area,” she said. Stein-Wells said Newcomerstown firefighter and paramedic Steve Wright has done many hours of research to find the right product and type of foam to be used to extinguish these fires in

Newcomerstown Emergency Rescue Squad’s Fire Division firefighters Derek McCune, in the fire truck, and Nate Stein, show off the new portable foam pack that the fire department uses for oil and gas well fires.

the most efficient manner. Besides the use of the new AFFF foam, she said the firefighters are also continuing to do trainings on how to safely and efficiently extinguish an oil and gas well fire. “We are trying to send our members (firefighters and paramedics) to specialized training,” she said. Newcomerstown firefighters are required to attend weekly training sessions at the fire station and this is just one more way that the village fire department is helping to ensure the safety of those they serve. nwolfe@dixcom.com

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August 2012 Edition - Dix Communications

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Gas & Oil

August 2012 Edition - Dix Communications

Rootin’ for a boomeR

Money slows, but that is to be expected

y recent travels around the oil and gas people operating in this area have revealed that the bloom is off the rose as far as the current activity goes. Not to say all is lost, but, as predicted, the initial shotgun approach and high dollars flooding the area are rapidly drying up in most areas. The current trend on those unpaid leases is to renegotiate Don Gadd to a lower price or return the Independent Landman lease all together. This is not a new thing, as it has happened in other areas of these current booms. It was expected. But, like I said, not all is lost. There are several things that can be done over the next weeks and months to see if your land has potential for this deep drilling. One involves a little snooping on your part. That is, there have been several wells drilled in the area over the last several months. I know some to be very good and some to be relatively poor (by today’s standards). I know this because of the people I associate with and questions that I ask. You and those around you can be finding out the same info. Also, be realistic about your expectations. Over the weekend some good friends of ours said they were contacted once again about their lease. The people who have it have strung this out for almost a year. They have sent their certified letter in demanding payment like many of their neighbors and were ready to jump to another ship. Then, they get a letter saying they will get paid but at a reduced rate. They wanted to know whether to sign the letter or not. They said their neighbors were not going to sign because they were holding out for the top money they were promised. Well, maybe they will get that, but in all probability they will not. Like the poor guy named Angelo we were dealing with in

upstate Pennsylvania. He didn’t sign because they were still $250 per acre apart. He died this past year without anyone even offering to pick up his lease at any rate. That’s just rolling the dice and in this case he lost. That’s not to say you will if you hold out. But, as these companies now retrench and determine where they are going to drill their first programs they will be coming back and filling in where they need and really not look at other places. Some may not come back at all as the big freewheeling lease all deals and drive up the price of rentals really didn’t work out well with several companies. They spent a lot of money and didn’t really generate a lot of locations. That is, sufficient acreage in one area to justify drilling a well or paying the leases. The option is to buy leases at a much higher rate or just back off. (The latter being more common in this play.) So, a lot of people get left with a bad taste in their mouths. No wonder they brought J.R. back. Just don’t let this drive your actions of the future. Educate yourself and those around you. Find out who has picked up leases in your area. Approach this with a map that you can use to block up acreage that a company can look at. Go to the recorder’s office. Colleen Wheatley and her staff at the Recorder’s office can help you pull up your deeds to see if there are any reservations on the deeds. She can’t give you an opinion as she isn’t an attorney, but just finding your deed can help a lot. Also, be realistic. Get together and find a real figure that will put money in all your pockets and won’t give the company fits. Remember sometimes half a loaf is better than none and in this business the real money is made in production, not leasing. If you can lure a company into drilling in your area, and it hits a reasonable well you have helped everyone get closer to your expectations. It is really nice going to the mailbox once a month to pick up the check. The only fight on your hands could be the spouse beating you to the mail box. I settled that one, too. No, I don’t have a Post Office box, but anything under a certain amount is hers. Anything above that, I get the check. I really root for a boomer.

“Get together and find a real figure that will put money in all your pockets and won’t give the company fits. Remember sometimes half a loaf is better than none.”

Dix Communications - Gas & Oil

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August 2012 Edition

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August 2012 Edition - Dix Communications

Business picks up in Carroll County Kimberly Lewis Dix Communications

“I

would definitely say Carroll County is more active and more vibrant than it was two or three years ago. People are smiling again,” said Carroll County Chamber of Commerce Director Amy Rutledge. “People are more optimistic than they used to be.” That optimism can be found in a variety of businesses, from real estate to retail. For NAI Spring in Canton, a Stark County real-estate company that focuses exclusively on commercial and industrial real estate, Carroll County is the “place to go.” NAI Spring President Dan Spring pointed out Carroll County does not have a huge industrial base and the company did not have a large presence in the past. But today, you cannot drive anywhere in the county without passing one of its signs. The oil and gas boom “has affected our business,” Spring admitted. “We have been in business for a little over 10 years. We have had growth every year. We have already hit our numbers from last year and we are only halfway through the year. I attribute that to the oil and gas boom.” He points out the “run-of-the-mill companies working for Chesapeake want a standard 10,000 to 20,000-square-foot building with 5-10 acres of gravel lot.” Not something easily found in Carroll County, Spring said, “Some existing businesses realized the time to expand is now and snapped up available space.” “It is now at a point where (incoming businesses) are looking at raw land, although there are some buildings still out there, just not a ton,” Spring said. At Bud’s Farm Toys, located at 75 W. Main St., Carrollton, owner Cheryl Garner has noticed increased foot traffic in downtown this year as more families of oil and gas workers

arrive to visit or stay in Carroll County. “At Christmas, the oil and gas workers were coming in to buy toys for their kids,” she said, noting the diecast construction equipment and trucks are popular. The business also offers diecast tractors, Radio Flyer wagons, Breyer Horses, agriculture memorabilia and signs. When the economy dipped in 2008, so did the store’s sales. “Much of our business is selling older diecast collectables. Our toys were not a necessity, and people cut their recreational collecting,” she explained. During Christmas and this spring, Garner saw business pick up. “It was better than last year,” she said. The oil and gas boom “has helped me a little bit.” Owner Brad Rogerson has added employees at Carson NAPA, located at 308 E. Main St., Carrollton, because of an increase in business from residents receiving royalties and bonuses, as well as the oil and gas industry. The increase has not been in only one area, he said. “It has been a little bit of everything.” Like Garner, Rogerson saw a decrease in business in 2008 to 2010. “People started putting off repairing their cars,” he explained. “This year, and most of last year, people started to catch up on their repairs.” While he has sold some equipment and specialty auto-related items to the oil and gas workers, he has noticed the biggest difference in people doing their own repairs. “They are not just buying higher quality parts, they are going further to do a more complete repair,” he explained. For example, do-it-yourselfers are replacing the entire brakes, not just the brake pads. “They are doing the job right,” Rogerson said.

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August 2012 Edition

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August 2012 Edition - Dix Communications

Pipeline easements

Steps to Protect Landowner Rights

any Ohio landowners have been, or soon will be, approached by a pipeline company representative trying to obtain a pipeline easement. This memo provides an overview of the steps that a landowner will want to consider in preparation for being approached by a pipeline company representative. This is important because J. Richard Emens, a pipeline easement is likely a forever encumbrance on the also attributing property! Sean Jacobs Step 1 “The Title Research”: Determine whether Emens & Wolper there are any existing easeLaw Firm ments or right of way agreements affecting your property’s title. Pipeline rights granted in the past can have a significant impact on your ability to sign a new pipeline easement. A prior easement may allow a pipeline company to install new pipelines on your land. It’s important to know that, unlike oil and gas leases which are for a limited duration, most easements last forever. Step 2 “The Decision About Granting”: The landowner’s first decision is whether he is willing to agree to a pipeline easement. If the landowner absolutely does not want a pipeline on his property – no matter the terms or compensation – then the landowner should tell that to the pipeline company AS SOON AS POSSIBLE, so the pipeline can be re-routed around your property. If a re-route isn’t possible the landowner will want to immediately hire an attorney (knowledgeable about pipelines) to discuss options. Step 3 “The Knock on the Door”: When the pipeline company representative first approaches you to sign an easement he will likely want to obtain your signature on the spot. You will be told there is a certain timetable within which you need to sign, and if you don’t sign, the company will take your land through eminent domain. You will also be told that your neighbors signed the easement and the neighbors will be angry with you if you do not sign. You will feel pressure to sign quickly. But, there is no rush for you to sign! You will want to be fully informed about your rights and understand every word in the document before you decide to sign. Step 4 “The Negotiation of Terms”: You want to make sure that the easement terms adequately protect you and your land forever – and that will take negotiations. Some of the terms you will want to include: (1) Description of the specific purpose of the pipeline; (2) the specific location; (3) the type of pipeline to be installed; (4) Specific requirements regarding construction, maintenance, and remediation; and (5) terms to adequately protect you and your property and sufficiently compensate you for the easement and for any damages. Step 5 “Show Me the Money”: After negotiating terms, fo-

cus on the question that has been on your mind since you started thinking about pipeline easements—what am I getting paid for this? While the easement will likely last forever, typically the only compensation you will be paid for on the easement, is a one-time payment agreed to at the time of signing. Think about how the easement will affect the property, property uses, and property value at the present time and also what future uses or value the easements may inhibit. Step 6 “The Threat of Eminent Domain”: A pipeline company may have the right to acquire a portion of your land through eminent domain if you do not agree to grant an easement. However, do not let the threat of eminent domain cause you to accept the easement and compensation that a pipeline company representative first offers you. Even if a part of your land is taken by eminent domain a landowner has the right to “just compensation” for that land, and your land values will be at its “highest and best use” which is usually well in excess of the amount initially offered to a landowner. NOTE: This article has been prepared for informational purposes only and is not legal advice. This general discussion of the law should not be used to solve individual problems and no person should act upon any information contained in this article with regard to their own unique factual situation without first seeking their his/her own attorney knowledgeable about easements and rights of way.

Mr. Emens is a partner in the Emens & Wolper Law Firm, LPA, whose major areas of practice are Corporate Law, Oil and Gas Law, and Family Owned Businesses. For more than forty years, he has counseled numerous clients on business and oil and gas issues including oil and gas leases, acquisitions and sales, and represented many clients before state and federal regulatory agencies. Sean Jacobs is an associate with Emens & Wolper Law Firm, LPA. His primary areas of practice include Oil and Gas Law, Estate Planning, and Corporate Law. Mr. Jacobs regularly speaks to groups of landowners around the state of Ohio about various topics related to oil and gas.

Dix Communications - Gas & Oil

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Gas & Oil

August 2012 Edition - Dix Communications

‘We must get it right’

Shale development means economic development

hale development means economic development, and that’s exciting news for Ohio. It means tens of thousands of good-paying jobs across our state, all while helping to lower power costs for Ohio consumers. As with anything else, we need to ensure that our local communities are consulted and that we rely on scientists and Sherrod Brown experts throughout the process U.S. Senator - Ohio to maintain a quality water supply. That means keeping a close eye on brine injection, and taking protective actions when necessary. And we need to ensure that Ohio jobs created through shale development are filled by Ohio workers. Last April, I helped convene a shale development jobs fair in North Canton. Jobseekers began lining up at 4:30am, and by the end of the day, more than 1,200 people came looking for work—many of them returning veterans. Thanks to the natural gas boom throughout Ohio, more of those men and women who lined up last April will find a job. More of those heroes who fought for our country won’t have to fight for work when they come home—and our entire state will benefit as a result. But there’s more than we can do. Federal training assistance is available to ensure that workers are equipped with the right skill sets for jobs in shale development. In June, I visited a shale gas training center at Steubenville’s Eastern Gateway Community College (EGCC). EGCC offers several training programs for jobs in the Utica and Marcellus shale plays, including a U.S. Department of Labor (DOL)-funded initiative called ShaleNet that works to ensure that local residents are qualified and can be hired for new jobs in the oil and gas industry. EGCC also has a program, Retrain America that offers similar training for Ohioans looking for work in the shale industry. We need to continue investing in federal workforce development efforts. We should also help partner businesses with local community colleges and workforce investment boards in order to develop specialized curricula and training. I saw a good example of this at a company called Tremcar, in Dover, which manufactures tankers for use in shale development and the petroleum industry. Tremcar has been coordinating with the Buckeye Ca-

reer Center and Stark State College to train Ohioans for new jobs in the natural gas industry. The company employs several graduates and interns of programs at the Buckeye Career Center, and will be bringing in a welding instructor from Stark State College to run intensive two-week welding trainings for its new hires. We need to support these existing partnerships, but we also need to build more of them. That’s why I introduced the Strengthening Employment Clusters to Organize Regional Success (SECTORS) Act. This bill would help local communities and educational institutions tailor workforce strategies to meet industry needs. This bill would allow more workers to receive placements and attract more businesses to our state. The SECTORS Act would organize stakeholders connected to a regional industry—businesses, unions, education and training providers, and local workforce and education system administrators—to develop plans for growing that industry. We know that Ohio is home to countless innovative companies and a world-class workforce— now we need to ensure that energy companies arriving in the state are utilizing all that Ohio has to offer. I’m optimistic about this exciting opportunity. I’m eager for the jobs that natural gas exploration will bring to Ohio, and I’m committed to making sure those jobs are filled by Ohioans. This is a whole new industry to explore. But we must get it right. We must pay close attention to ensure that our future energy needs are met by our own workers. U.S. Senator Sherrod Brown represents the state of Ohio. For more information: http://www.brown.senate.gov/

“We must pay close attention to ensure that our future energy needs are met by our own workers.”

Dix Communications - Gas & Oil

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August 2012 Edition - Dix Communications

Chesapeake energy employees pitch in Kimberly Lewis Dix Communications

hesapeake Energy employees are using hammers and saws to help local organizations as part of Operation Blue, the company’s volunteer campaign. “Operation Blue is an opportunity for Chesapeake employees to give back to local communities,” said Aimee Belden, community relations coordinator. “It is an annual summer volunteer campaign that allows employees four hours of company time to roll up their sleeves and get to work. Our Ohio employees have already given hundreds of hours of community-service time, and continue to look for worthy projects to which they can donate time in the future.” On July 20, the employees traveled to The Wilderness Center in Wilmot to remove brush, assist in removing an invasive bush Continued on pg. 27

Photo / John McLaughlin Chesapeake Energy employees (from left) Jenn Klein, Stephen Beucler, Matthew Mroczkowski and Steve Rybicki volunteered to build platforms for the Seven Ranges Boy Scout Camp, near Kensington, on July 10 as part of the company’s Operation Blue program.

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Dix Communications - Gas & Oil

“Chesapeake” from pg. 26 known as autumn olive, and apply herbicide. On July 10, volunteers built 27 4.5-x 9-foot wooden platforms for camper tents at the Seven Ranges Boy Scout Reservation, in Kensington, Carroll County. The 27 volunteers cut a large amount of wood, assembled platform kits, screwed the platform pieces together, stacked all platforms and moved them to a storage location. The Boy Scout camp’s goal is to replace 5 to 10 percent of their 40-yearold platforms each year. Last June, more than 30 employees volunteered more than 200 hours in Malvern to build a home as part of the Habitat for Humanity program. In December, employees provided 100

August 2012 Edition

volunteer hours over two days to package more than 12,000 pounds of food at the Akron-Canton Regional Foodbank. Toolpusher Tool•pusher noun : The location supervisor for the drilling contractor, usually a senior, experienced individual who has worked his way up through the ranks of the drilling crew positions. His job is largely administrative, including ensuring the rig has sufficient materials, spare parts and skilled personnel.

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Gas & Oil

August 2012 Edition - Dix Communications

New technology, water treatment will help solve water usage issues

hile each vertical hydraulic fracturing well replaces 32 traditional horizontal wells, as far as production and efficiency are concerned, there is still an issue related to how much water is used in the process, as well as what to do with it afterward. On average, a single gas and oil well can consume 5 to 8 Laurie Huffman million gallons of fresh water Dix Communications that may never enter the fresh water cycle again. New technology can help, especially with regard to the smaller oil and gas companies that may not have the funds to build their own water treatment plants, such as Chesapeake Energy Corporation. Chesapeake is building a reprocessing plant to clean up the water it will use for its oil and gas production in this area of Ohio, according to Michael Gruber, of Stark County Association of Realtors, who gave a recent talk in Canton on Oil and Gas Fracking. Gruber also informed, according to Ohio law, the water used in the hydraulic fracturing process must be either reprocessed or placed in a Class II injection well. “It was found sewage treatment plants cannot remove the solids, which are mainly salt,” Gruber said. “In Pennsylvania,

there was a problem with fish kills, and while it took them a while to figure it out, they eventually found it was from the high salt content in the water being shot back onto the surface from the sewage treatment plants, so that process was outlawed.” He also admitted that right now, Ohio is taking some of the fracking waste water from Pennsylavnia, since the injection wells here are the closest to be found. Officials in the Alliance City Water Department report the city’s waste water treatment plant cannot remove enough of the solids from the drilling waste water to be considered as a resource. The city of Warren was granted a permit from the Ohio EPA that would have allowed their waste water treatment facility to be utilized by the oil and gas industry, but then the permit was modified to specify it cannot be utilized for that type of waste water. A letter from the Ohio EPA to the city indicated the state doesn’t want to “get into” having municipalities involved in reprocessing the waste water from the hydraulic fracturing well sites. The good news is new technology has produced a mobile water treatment process that can be set up on each drilling site. HTI Water Divisions stated it has found one of the biggest opportunities for the use of its proprietary forward osmosis filtration technology is in reclaiming drilling wastewater from gas exploration operations. The application of this technology is considered by some to save money and dramatically reduce energy consumption, while reclaiming or recycling millions of Continued on pg. 39

Dix Communications - Gas & Oil

August 2012 Edition

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Gas & Oil

August 2012 Edition - Dix Communications

MAC Trailer continues strong sales

usiness has been going so well in the gas and oil industry in this region that it’s starting to show signs of an inevitable slowdown. Mike Conny, CEO of MAC Trailer Manufacturing of Alliance, doesn’t expect that lull to continue. In fact, his company has just received an order for 50 new tankers to haul crude Rob Todor oil from well sites. Dix Communications “The drilling is slowing down because supply has outgained demand,” says Conny, “and the price of natural gas has lowered. “We expect ups and downs in this business,” adds Conny, whose company has experienced unprecedented growth in the last year with the gas and oil industry boom in Eastern Ohio. “You’re either on fire or out; it’s something we prepare for.

“You’re either on fire or out; it’s something we prepare for.” “We’re fortunate to still have our other products and we’ve never once left our core business.” MAC Trailer, under Conny’s leadership, has had the ability to accurately forecast their customers’ needs and keep the company on the cutting edge of the industry. “Of course, we’re very fortunate that much of the current gas and oil business is in our backyard right here in Ohio,” says Conny, “but we’re also shipping products to Alberta, Canada; North and South Dakota, and Texas.” Conny says he is constantly in touch with industry leaders. The challenge, he says, is “to stay ahead of the curve.” “We’re always looking at other potential products so when Continued on pg. 31

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Dix Communications - Gas & Oil

August 2012 Edition

“Mac Trailer” from pg. 30 things do pick up you are prepared.” Asked for one word to describe his outlook, Conny says, “Excited.” “The industry is going to continue to be volatile,” he says, “but over the next five years I see good fortune. We should see several thousands of wells drilled in the state of Ohio, according to our research. I’m told the hot spot of the gas and oil industry in the entire country is right here in Carroll and Columbiana counties. It’s really something.”

10053817

Gas & Oil

August 2012 Edition - Dix Communications

boom leads to caution Kimberly Lewis Dix Communications

hile Carroll County leaders look forward to the boom from the oil and gas industries, they are concerned about the bust that traditionally follows. “We all know that the boom will eventually go bust. It is imperative that we work on sustainable economic development for the county,” explained Carroll County Economic Development Director Glenn Enslen. “We are working with two venture-capital funds to invest in Carroll County, and we are working with Senator Lou Gentile’s office on legislation that will provide substantial tax breaks for folks who invest in venture-capital funds that in turn invest in Appalachian Ohio,” he said. Members of the Carroll County Chamber of Commerce are not sitting idle as the boom lurks in the not-so-distant future. In May, the chamber formed the Futures Committee with community leaders, government officials and residents “to review and implement a positive course of action that Carroll County needs for the very near future and a long-range outlook.” Six members of the committee traveled to Towanda, in Bradford County, Pa., to meet with business and community leaders about what that area has experienced since Marcellus Shale exploration began more than five years ago. The topics included the impacts

on counties, townships, roads, schools, crime and health care, as well as economic development, business, and tourism. Locally, Enslen said the county may face several issues, such as housing and labor. “We may have difficulty in providing housing for low- and moderate-income residents as the oil and gas industry expands and utilizes available housing at inflated rates,” he said. “We are working with a state group to do a comprehensive study of housing in our area and determine what the best options may be. Do we need apartments, condos, or single family homes? When we have an idea which may be best, we will work with developers to deliver tax credits to make such a project attractive for the developer,” Enslen said. “We may face a labor shortage in the area as folks migrate to jobs within the oil and gas industry,” he continued. “We will soon be sending a letter to all chamber members asking if they would be interested in forming a co-op program with the local school district to allow seniors to work for half days in local business and industry.” Local and county officials, as well as the Futures Committee, are looking at what other communities have experienced, the issues that need addressed today and what the county’s needs are for the future.

“When we have an idea which may be best, we will work with developers to deliver tax credits to make such a project attractive for the developer.”

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Dix Communications - Gas & Oil

August 2012 Edition

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Gas & Oil

August 2012 Edition - Dix Communications

High schools, adult education respond to emerging industry with new curriculum Laurie Huffman Dix Communications

One of the biggest fears officials at the state level have expressed in regard to the oil and gas industry is that Ohio won’t have enough trained workers to fill the job opportunities the tidal wave of drilling activities will bring. In response, Marlington High School has adopted an oil and gas curriculum for its upper classes, and Alliance City Schools is offering oil-and-gas-specific training for adults in its career center that will later be offered to high school students. Marlington High School, located in Marlboro Township, Alliance, has added an Oil and Gas Technology Program for the 2012-13 academic year, and Lea Packey, assistant to Superintendent Joe Knoll, reports 18 students are signed up for the first session. The district hired a former teacher at the school, Robert Givens to instruct the course, which is offered for juniors and seniors. This first session is also available as an accelerated course for seniors who will only have one year to complete the course. “Training students in this growing industry will provide them with career opportunities close to home,” said Nick Evanich, coordinator for the Marlington program. The district’s new program will work in partnership with gas and oil industry leaders to provide necessary training to students, equipping them with such skills as basic exploration and production of the gas and oil field, workplace safety, communication, and team work. Mar-

lington Local Schools has open enrollment, and anyone interested in learning more about the course may contact Evanich at 330-823-1300, extension 4209. Alliance City Schools is offering a new welding course within its adult education program that will coordinate with the regular welding studies already offered there, and which will be available to high school juniors and seniors during the 2013-14 school year. Jan Raber, director of the Alliance Career Center, reported the new course will focus on aluminum welding and will be instructed by Cory Heavner, a Mac Trailer Manufacturing staffer who also teaches welding techniques to new employees at the Alliance-based company. “Aluminum welding was added to our welding program because it is a popular area of work, not only for oil and gas, but for the railroad and other industries,” said Raber. The regular welding course at ACC covers the major aspects of arc-welding, plasma arc cutting, oxy-acetylene, and MIG and TIG welding, along with an opportunity to develop successful welding and fabricating techniques. Both the regular and the newly-added aluminum welding courses are 648 hour programs with classes offered in the evening. Anyone interested in learning more about the welding courses may contact the career center at 330-821-2102.

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Dix Communications - Gas & Oil

August 2012 Edition

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August 2012 Edition - Dix Communications

Oilfield workers help clean up cemetery

“As members of this community, we feel compelled to assist.” – Dan Cox, Great Plain Oilfield Rental Great Plain Oilfield Rental has 25 employees working out of its field office in Old Washington. After the storm, GPOR Assistant Field Manager Dan Cox contacted Old Washington Council President Ed Wagstaff to see where assistance was needed. “As members of this community, we feel compelled to assist,” said Cox. “Council wanted us to start with cleaning up the Old Washington cemetery.” In addition to his position in the oil and gas industry, Cox is also an infantry officer with the Ohio National Guard and has coordinated clean up efforts in Louisianna following hurricanes Ike and Gustav. He also assisted with clean up after Hurricane Katrina. Cox coordinated more than 15 Great Plains Oilfield Rental employees and six volunteers from other service companies including, HB II Resources and Energy Worx for the clean up

Submitted Photo Chesapeake Energy and Great Plain Oilfield Rental assisted in cleaning up the village cemetery in Old Washington. effort in Old Washington. “Having been through natural disasters, I see the positive aspects of communities standing themselves back up,” said Cox. “From the time we saw this, it was just a matter of how fast we could react.” The company assisted with the cemetery clean up for a full 12 hours on the Tuesday following the storm and an additional six hours on Wednesday, July 4. But the company didn’t just stop helping with clean up efforts in Old Washington. They also recognized an opportunity to provide generator support to the Guernsey County Senior Citizens Center. The Center was in need of a power generator to continue to provide services to area seniors. Great Plains Oilfield Rental contacted vendor Grady Rentals in Pennsylvania to supply a generator to the Senior Citizens Center. Old Washington is a small village of about 270 residents. While many were focused on their own neighborhood clean ups, Chesapeake Energy and Great Plains Oilfield Rental was able to relieve some of the already overworked residents of Old Washington and give back to the community in which they are a part.

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he booming oil and gas industry coming to town,is providing more than an economic boost to the community, they also provided relief assistance from the violent storm that ravished the area on June 29. Among the towns that were hit from the storm is Old Washington. The village was ravaged by the high winds that Holly Bilyeu toppled trees and left debris evDix Communications erywhere, including the village cemetery. Residents had much to clean up and were without power for days. But for every grey cloud, there is a silver lining, and this storm was no exception. The village received relief from each other and also from various oil and gas companies that pitched in their workers and materials to help. Chesapeake Energy and Great Plain Oilfield Rental saw not just an opportunity, but a necessity to help out their neighbors in Old Washington after the storm caused damage to their village.

Dix Communications - Gas & Oil

August 2012 Edition

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Gas & Oil

August 2012 Edition - Dix Communications

Zane State College receives funds to offer free oil and gas-related counseling to small business owners

ane State College’s Small Business Development Center has received funds from the Ohio Department of Development to provide business counseling and training related to the oil and gas industry. With the new funds, the Center has hired three new counselors to provide one-on-one technical assistance to small businesses across the state and are scheduling trainings to help businesses do business with the oil and gas companies. SBDC Director Cindy Voorhies, who was recently recognized by the Ohio Department of Development as the top Small Business Development Director in the state because of her commitment to small businesses, said the Center was chosen to receive the funds in part because of Zane State College’s extensive experience in oil and gas training. “These funds represent an exciting opportunity for small businesses in Ohio to take advantage of the emerging opportunities in the shale industry,” said Voorhies. “Our counselors can provide the expertise these business owners need to help them start or grow a business and create new jobs.” The SBDC provides support services free, to clients who employ up to 500 employees and who are trying to expand or start their businesses. Under Voorhies’ direction, the Zane State College SBDC counseled 413 small businesses in 2011,

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Dix Communications - Gas & Oil

“Bonanza” from pg. 10

August 2012 Edition

billions of barrels of domestically produced oil over the years to come, plus large amounts of associated natural gas. From 2008 to 2010, oil production grew faster in the U.S. than in any other country, and the growth has continued. U.S. oil production increased by about 500,000 barrels per day in 2010 and by 700,000 barrels per day in 2011, reducing the country’s dependence on imported oil by almost 7 percent in the last 2 years. Production rates continue to increase from Bakken and Eagle Ford as drilling intensifies even more in 2012; and now producers are hoping for similar success in the oil rich portion of the Utica Shale and other plays.

In fact, shale gas development has been so successful that there is currently a huge surplus of natural gas, depressing prices to the lowest levels in decades. Low prices are great for consumers, but they don’t cover the high cost of shale gas well development. As a result, drilling for dry gas has slowed to a crawl so far in 2012. Nevertheless, as prices eventually reach a reasonable balance with the cost of production, shale gas drilling will pick up again, and this vast resource can provide an economic source of energy for the country into the next century. As natural gas prices fell, drillers began shifting more of their rigs to plays that had valuable liquids-rich gas and oil. So called gas liquids (ethane, propane and butane) and oil remain at comparatively higher prices than dry natural gas, although increased domestic production has reduced prices for these commodities as well. Some of the major shale plays, that $ were originally thought of only as natural gas plays, are turning out to be significant oil producers. The largest “drillable” U.S. oil producing shale play is the Bakken Shale formation, located in North Dakota, Montana and the Canadian province of Saskatchewan. In addition to the Bakken formation, there is soil e in f u the r n i tBarnett ure Shale and the Eagle Ford Shale that stretches across south Texas. Now, oil from shale is the most significant new development in the U.S. energy picture. New research is showing that shales such as the Bakken and Eagle Ford shale may supply

“Water Technology” from pg. 28

barrels of fresh water normally transported long distances, injected into deep disposal wells and forever lost from the fresh water cycle. Most of the source water used in the drilling activities comes from surface waters or municipal supplies. “It can take 10 to 15 million gallons of water to frack a well,” said Gruber. “Chesapeake is building a huge holding pond in Carrollton right now, and they’re buying water as they can and filling it, making a man-made lake, so they’ll have the water when they need it.” Gruber also said water is used in all phases of oil and gas production, including exploration, stimulation and production. As of mid-July, Ohio had issued 124 Utica shale permits, with 21 wells being drilled now, 35 already drilled, 16 completed (meaning the hydraulic fracturing is done), and 10 in production.

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Gas & Oil

August 2012 Edition - Dix Communications

Inside CoNSoL energy Judie Perkowski Dix Communications

ennsylvania-based Consol Energy, founded in 1860, one of the leading coal and natural gas producers in the country, employs more than 9,000 men and women in 23 states and Ontario, Canada. Two of them recently agreed to an interview about their jobs in the oil and gas industry. There are definite similarities between the two: Both share the same surname, although they are not related; and both are graduates of Marietta College, a liberal arts private college in historic Marietta, Ohio. They differ because one of the men is just beginning his career as a petroleum geologist, while the other is a veteran who grew up with oil and gas in his veins. Both Adam Smith and Kevin Smith help support Consol Energy operations in the Utica acreage in Ohio. Kevin Smith Kevin Smith, 55, senior production engineer for Consol Energy, graduated from Marietta College, Class of 1981 and is the fourth generation in his family’s oil and gas business. “I grew up in working for my father’s drilling company in Pennsylvania. We can pretty much trace our oil and gas roots back to the Drake well where my distant relative, Billy Smith, dressed tools for the well,” said Kevin. “My father was the biggest influence on my decision to choose a career in the oil and gas industry. I grew up watching with pride how he was able to start out with similar beginnings on the old standard rigs, and build with that knowledge to form a very successful drilling and producing company.” Kevin said his career started out in the field very “hands on,” such as a roustabout (an oil field worker employed for temporary or unskilled jobs) where he learned how wells were drilled and completed. As a petroleum engineer, he has worked in a variety of jobs ranging from drilling to completions, production, reservoir engineering and land issues. Currently, he focuses on shallow oil and gas production in southwest Pennsylvania. “I also fill in as the ‘old guy consultant’ as I have 40 years of experience. Previously I spent 25 years in Ohio drilling throughout the state and Submitted Photo CONSOL Energy employees Kevin Smith, l, and Adam Smith, are looking at the shale rock that was drilled from a well near Waynesburg, Pa. Kevin is a senior production engineer, Adam is a petroleum geologist.

Submitted Photo Pictured l to r, CONOL Energy employees, senior production engineer Kevin Smith, and petroleum geologist Adam Smith, discuss operational plans. In 2011, CONSOL Energy, the leading diversified fuel producer in the Appalachian Basin, formed a strategic partnership with Hess Corporation to explore and develop oil, liquids,and gas on 200,000 acres of Utica Shale in Ohio. Consol’s current drilling schedule will include operations in Tuscarawas, Noble, Portage, Mahoning and Trumbull counties in the eastern region of the state. was vice president at Oxford Oil Co., one of the largest privately-owned oil companies in Ohio,” he said. “I love my job. I am very much a hands-on-type engineer. I love working outdoors and dealing with landowners. It can be stressful at times and frustrating dealing with misinformed people in regards to what we do and how we strive to do our job safely and with complete environmental responsibility. “For job seekers, there are many different types of jobs at an energy company like Consol. There are lots of challenges. In the beginning the hours can be long and at times stressful, but the rewards are great, and the stability of the energy industry shows there will be a demand for what we provide for many more generations. “My advice to anyone who desires a career in this profession is to be willing to get out there in the middle of an operation, and not be afraid to dedicate some hands-on time to understand what you are doing,” said Kevin. Adam Smith Adam Smith, 26, a petroleum geologist for Consol Energy, graduated from Marietta College in 2009 with a Bachelor of Science in Geology, and a minor in Petroleum Engineering. Adam is originally from Roseville in Muskingum County. He said he is planning on returning to school to earn a Master of Science in Geology. “I really enjoy the business aspect as much as the technical part of the job, so I also have been considering getting my Mas-

Continued on pg. 42

Dix Communications - Gas & Oil

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August 2012 Edition - Dix Communications

“Consol” from pg. 40 ter of Business degree,” he said. Adam said he never considered the oil and gas industry as a career path until he attended Marietta College. “I went to Marietta undecided about my career; most of my focus was on football. But, luckily, I decided to take environmental geology 101 as an elective science class, and I really enjoyed it. By the following semester, geology was my major. Marietta is world renowned for its petroleum engineering program. The petroleum influence definitely rubbed off on me. “As a petroleum geologist I am responsible for answering questions regarding why, where and how we drill for oil and gas. Why certain areas are better than others for gas and oil production, where do the best conditions exist for optimal oil and gas production, and what are the things to look for that could explain all of this. “In order to become a petroleum geologist, you must have a bachelor’s degree in geology, some oil and gas experience and a curiosity for what is buried thousands of feet deep and is hundreds of millions of years old!” said Adam. “A petroleum geologist is very interesting work that requires a lot of critical thinking. I have the opportunity work with a lot

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of very nice, professional and intelligent people. Every day is different so rarely does the job become mundane. One of my favorite perks is being involved in the implementation of cutting edge technology on a daily basis,” he said. “The oil and gas industry is not your typical 9 to 5 day. It is a 24-7-365 industry. Phone calls at 2 a.m. are not uncommon.” Adam said his dream job is to (eventually) have his own business. Since the company’s founding in 1860 and its first active mining operations in 1864, CONSOL Energy has powered the nation with affordable, abundant, reliable domestic energy. Today, CONSOL Energy’s 9,000-plus employees help generate the fuels – coal and natural gas – that comprise two thirds of the nation’s power supply. CONSOL’s Natural Gas Division has grown from a pureplay coalbed methane producer to a full-fledged exploration and production operation. The company is a leading producer in the Marcellus Shale and conducts an active exploration program in the Utica Shale. “Fuel Development” from pg. 6

Ohio Masons. He also belongs to the Knights of Columbus. As an NCAA All-American wrestler during his years at Muskingum University, Mason is uniquely qualified as an Ohio wrestling official, something he has done for more than 32 years. In 2006 he was voted the top official in eastern Ohio and was selected to referee the Ohio High School State Wrestling championships in 2006, 2008 and 2012. Mason is a Muskingum County trustee, immediate past president of the Muskingum County Library System and an officer of the Groundwater Protection Council. He also serves on the Zanesville Board of Zoning Appeals, Downtown Design Review Board, and is chairman of the Planning Commission. Mason created his company, All American Energy Partners, LLC, for regulatory law and strategic planning in 2008. He and his wife, Danielle, have three children and reside in Zanesville. jperkowski@daily-jeff.com

Dix Communications - Gas & Oil

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August 2012 Edition

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1) $99/mo. 7.75% APR for 96 mos. 2) $109/mo. 5.49% APR for 120 mos. 3) $168/m0. 5.49% APR for 120 mo. 4) $209/mo. 5.49% for 114 mos. 5) $299/mo 5.49% APR for 144 mos. 6) $309/mo. APR for 180 mos. 7) $379/mo. 5.49% APR for 180 mos. 8) $515/mo. 5.49% APR for 180 mos. 9) $579/mo. for 240 mos. 10) $968/mo 5.49% for 240 mos. All Payments are based on 20% down and with approved credit. Factory provided RV photos and floor plans shown in this ad are for illustration purpose only. All RV prices are plus tax, titel and fees, sale prices are not vaild in combination with any otyer advertised special offers, rebates or discounts. All units are subject to prior sale. Offers not valid on prior sales. Prices and offers valid until June 30, 2012.

Gas & Oil

August 2012 Edition - Dix Communications

Top CounTies WiTh horizonTal Drilling aCTiviTy By numBer of siTes

1. Carroll County 101 2. Columbiana County 46 3. Jefferson County 27 4. Monroe County 23 5. Harrison County 22 6. Belmont County 13 7. Stark County 12 Noble County 12 Mahoning County 12 Guernsey County 12 8. Portage County 8 9. Tuscarawas County 6 10. Muskingum County 3 Coshocton County 3 11.Trumbull County 2 Knox County 2 12. Geauga County 1 Ashland 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 7/16/12

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Dix Communications - Gas & Oil

August 2012 Edition

ROCKY’S

The al Origin

COMPLETE AUTO AND TRUCK REPAIR. Full Service Parts Department

Over 40 years in business and still growing!

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224 N. MILL ST., WAYNESBURG

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Gas & Oil

August 2012 Edition - Dix Communications

You know the difference between a financial advisor and a salesman. So do we. When it comes to your investments, you need solid guidance. But how can you be sure your financial advisor isn’t thinking about a commission instead of your future? The key is to find a professional M. Ann Sanford Chartered Retirement Planning Counselor First Vice President Financial Advisor 7311 Crossleigh Ct. Toledo, OH 43617 800-330-9699 www.morganstanley.com/fa/annsanford ann.sanford@mssb.com

who collaborates with you to set your objectives, and who has the tools and motivation to consider possible options. As a Morgan Stanley Smith Barney Financial Advisor, I don’t represent products, I represent my clients. With access to indepth research and analysis, I can help you create sophisticated

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investment strategies based on your specific situation. In today’s uncertain world, that’s a very valuable quality.

Noble County native

CRC394261 6814815 FAS001 10/11

Received Gas & Oil Payments? We Can Help! Opportunity In Gas & Oil Bonuses & Royalty Payments... What Happens Next?

• Tax Evaluation • Tax Efficient Investing • Debt Reduction Planning • Financial Planning

Call Today To Schedule A Complimentary Review - We Make House Calls -

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90 S. High Street, Suite A Dublin, OH 43017 • 888-203-1003 Registered Representative, Securities offered through Cambridge Investment Resear ch, Inc., a Broker/Dealer, Member FINRA/SIPC. Investment Advisor Representative, Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Cox Financial Group & Cambridge are not affiliated.

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Dix Communications - Gas & Oil

August 2012 Edition

OhiO Well Activity

by the numbers

uticA shAle

MArcellus shAle 10 Wells Permitted 0

Wells Drilling

Wells Drilled

Wells Producing

163 Wells Permitted 30 Wells Drilling 70 Wells Drilled 12 Wells completed

17 total horizontal Permits

14 Wells Producing 1 Well Plugged lost hole 1 291 total horizontal Permits

Data as of 7/16/12 Source: Ohio Department of Natural resources

The Colonel Taylor Inn BED & BREAKFAST

Guernsey #66 F&AM 730 Wheeling Avenue Cambridge, Ohio 43725 Phone: 740.432.2702

Labor Day Communication: 6:00 am Master Mason Degree 7:00 am Breakfast 8:00 am 2nd Section Master Mason Degree

Stated Meetings:

Welcomes the oil & gas industry and all other professionals for our special weekday rates

7:30 pm 2nd & 4th Tuesdays

ALL MASTER MASONS WELCOME (Parking and Entrance in Rear off Turner Ave.)

F TEAS F SPECIAL GROUP EVENTS

633 UPLAND ROAD, CAMBRIDGE, OHIO 43725 740-432-7802 www.coltaylorinnbb.com

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Gas & Oil

August 2012 Edition - Dix Communications

Ohio AuGuSt 2012 • www.ohiogo.com A FREE monthly PublicA PublicAtion PICK UP THE LATEST COPY OF “GAS & OIL” AT ANY OF THESE CONVENIENT LOCATIONS THROUGHOUT OUR AREA GUERNSEY COUNTY

TUSCARAWAS COUNTY

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Gas/Oil Industry Doubles Job Impact Newcomerstown Stone Creek Tuscarawas Dennison Strasburg Uhrichsville

BELMONT COUNTY

WASHINGTON COUNTY

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How To Become An MAHONING COUNTY Industry Partner

COLUMBIANA COUNTY

New Concord Norwich

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Penn StateCARROLL Study COUNTY Follows MONROE COUNTY The Water

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Natural Gas

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COUNTY Fueling PORTAGE Development Atwater Deerfield

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HARRISON COUNTY Freeport

TO ADVERTISE: 740-439-3531 CAMBRIDGE ALLIANCE Inside: U.S. shale plays leading to330-821-1200 energy bonanza 740-425-1912 BARNESVILLE 330-677-7180 FOR NATIONAL 740-498-7117 NEWCOMERSTOWN ADVERTISERS 10040270