NOVEMBER 2015 • A FREE MONTHLY PUBLICATION
State Misses Frack Tax Deadline The Latest from Utica Summit III
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Shale Column Project at Zane State Almost Complete
Nov 4-5, 2015
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Gas & Oil
November 2015
Ohio Edition
Table of Contents 5
UTICA SHALE ACADEMY STUDENTS TOUR CARDINAL GENERATING STATION
6
BURIED PIPELINES MOVE NATURAL GAS 2.5 MILLION MILES OF PIPELINE AND GROWING
7
ACCOUNTING COURSE FOR OIL, GAS OFFERS STUDENTS A FIELD-SPECIFIC INSIGHT INTO INDUSTRY
8
OHIO UNIVERSITY STUDENT: HOW FRACKING SAVED MY FAMILY
9
DEADLINE MEANS WORK AHEAD FOR ORRVILLE UTILITY AGREEMENT WITH EPA
10
ASSET PROTECTION MISTAKES PEOPLE MAKE WHEN THEY OWN OIL AND GAS INTERESTS
13
WAYNE CO. FILES FERC LETTER TO REJECT ROVER PIPELINE
14
MILLER’S MUSEUM: PRESERVING PETROLEUM’S PAST
16
ENERGY COALITION HEARS ABOUT NEW ‘CHECKBOOK’
17
THOUSANDS OF TEACHERS TAKE NEW OIL, GAS KNOWLEDGE BACK TO THEIR CLASSROOMS
18
OOGEEP AWARDS RECORD NUMBER OF SCHOLARSHIPS IN 2015;
SCHOLARSHIP FOUNDATION NOW ACCEPTING DONATIONS TO CONTINUE EFFORTS
20
PRESIDENTIAL CANDIDATE VISITS SALEM, TALKS ENERGY PLAN
23
SENATOR LOU GENTILE TESTIFIES FOR HORIZONTAL WELL SAFETY BILL
PUBLISHERS Andrew S. Dix ASDix@dixcom.com G.C. Dix II GCDixII@dixcom.com David Dix DEDix@dixcom.com
EXECUTIVE EDITORS Ray Booth RBooth@dixcom.com Roger DiPaolo RDipaolo@dixcom.com Rob Todor RTodor@dixcom.com Lance White LWhite@dixcom.com
REGIONAL EDITORS Judie Perkowski JPerkowski@dixcom.com Erica Peterson EPeterson@dixcom.com Cathryn Stanley CStanley@dixcom.com Niki Wolfe NWolfe@dixcom.com
Gas & Oil
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November 2015
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ADVERTISING
24
OPINION: STATE MISSES TAX DEADLINE
25
SAFELAND SAFETY AWARENESS CLASS PLANNED
26
GOING LOOOOONG
Jeff Kaplan Alliance & Minerva, Ohio Office JKaplan@the-review.com 330-821-1200
27
GULFPORT DROPS SUIT AGAINST BARNESVILLE
Mark Kraker Ashland, Ohio Office MKraker@times-gazette.com 419-281-0581
28
SHALE COLUMN PROJECT AT ZANE STATE ALMOST COMPLETE
30
THE LATEST FROM UTICA SUMMIT III; OFFICIALS SAY GAS AND OIL PRODUCTION IN UTICA REGION MEANS BRIGHT FUTURE
33
OOGA EXPO, TECHNICAL CONFERENCE IS NOV. 4-5
34
STONEBRIDGE OILFIELD SERVICE’S CEO SPEAKS AT WATER CONFERENCE
35
THE UTOPIA EAST PIPELINE PROJECT: A HORSE OF A DIFFERENT COLOR
36
DOYLESTOWN RESIDENTS ASK FOR SUPPORT AGAINST PIPELINE
37
THORLA MCKEE OIL FESTIVAL CELEBRATES FIRST WELL
38
GUERNSEY CO. COMMISSIONERS OPPOSE ENERGREEN PROJECT
39
TAKING IT TO THE CLASSROOMS
Kim Brenning Cambridge, Ohio Office KBrenning@dixcom.com 740-439-3531 Kelly Gearhart Wooster & Holmes, Ohio Offices KGearhart@the-daily-record.com 330-287-1653
Jeff Pezzano VP Advertising Sales & Marketing Kent Ohio Office JPezzano@dixcom.com 330-541-9455 Diane K Ringer Kent, Ohio Offices DRinger@recordpub.com 330-298-2002 Janice Wyatt National Major Accounts Sales Manager JWyatt@dixcom.com 330-541-9450 DIGITAL MEDIA MANAGER
Brad Tansey BTansey@dixcom.com
LAYOUT DESIGNER Elizabeth Horne
EHorne@the-daily-record.com
“Gas & Oil” is a monthly publication jointly produced by Dix Communications. Copyright 2015.
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Gas & Oil
Ohio Edition
November 2015
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Gas & Oil
November 2015
Utica Shale Academy students tour
Cardinal Generating Station B
RILLIANT — Twelve students from the Utica Shale Academy in Belmont County, were joined by the school administrators Micah Fuchs, principal and group leader; Angie Hannahs, assistant superintendent and chaperone; and tour leader Rose Grear of South Central Power Co., sponsor of the tour of the Cardinal Generating Station in Brillilant, on the banks of the Ohio River, bordering West Virginia. The group’s itinerary began at 7 a.m. when they boarded a motor coach for the two hour ride, after picking up additional people on the way, to the massive coal plant technically called the Cardinal Generating Station. “Student were most impressed with the generator and control room which ran the entire plant,” said Jerry Robinson, director of the Utica Shale Academy. “Also, the students now have a better understanding of how electricity is produced. “Special thanks to Barnesville Schools, the Cardinal plant and South Central Power Co. for making this educational experience possible.” After the tour, the group was treated to lunch at Mehlman’s Cafeteria in St. CLairsville, courtesy of South Central Power. Pictured are students Austin Miller, Dylan Pryor, Bradley Stephen, Nathaniel Lane, Hayley Holskey, Tannor Burkhart, Kaelan Hannahs, Madison McLaughlin, Cole Stephen, Aaron Kirk, Dylan Kernen, Don Perdue.
Students in the Utica Shale Academy Belmont recently visited the Cardinal Power Plant in Brilliant Ohio. A special thanks to South Central Power Company for providing this opportunity for the students.
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Gas & Oil
November 2015
Ohio Edition
Buried pipelines move natural gas 2.5 million miles of pipeline and growing
G
etting oil and gas out of shale is no small feat, but it’s just the beginning. The raw material coming out of the ground needs to go to a processing facility then be shipped to market, which means a trip through an underground pipeline that could be thousands of miles long. Called transmission pipelines, these interstate systems are designed to carry large amounts of crude oil or natural gas long distances. The federal government estimates these pipelines move one-quarter of America’s energy. Buried about three feet underground, the coated steel pipes are up to 42 inches in diameter and are the most cost effective means to move product. Regulated by the Federal Energy Regulatory Commission (FERC), new pipelines must meet tough environmental, testing and safety standards. Before construction, companies try to negotiate rights-of-way with property owners for new lines; although, the Natural Gas Act grants eminent domain authority for “public need” projects. Pipeline construction and inspection is regulated by the federal Pipeline and Hazardous Materials Safety Administration (PHMSA), which at last count tracked more than 297,000 miles of natural gas transmission pipelines in the country. When smaller gathering and distribution pipelines are counted, the U.S. has over 2.5 million miles of natural gas pipelines, nearly enough to circle the globe 100 times. PHMSA reports pipelines are “by far the safest mode” for transporting natural gas and natural gas liquids (NGLs). According to the Ohio Oil & Gas Association, natural gas production from Ohio’s Utica shale is now at about 2.5 billion cubic feet per day (Bcf/d), and the pipeline takeaway capacity is only 1.4 Bcf/d. The nearly 1 Bcf/d more gas than interstate pipelines can handle creates a “negative basis” for many producers. “Without a pipeline contract to move gas to a processing facility an Ohio Utica producer is stuck selling gas regionally for about half the price he would get if the gas can be delivered to a processor,” said Mike Jacoby, APEG’s director of shale energy. Compounding the problem is the much larger Marcellus shale play next door in Pennsylvania and West Virginia which is also trying to get its hydrocarbons to users and faces the same pipeline limitations. In current conditions, many Marcellus and Utica producers are stuck selling natural gas and NGLs for less than the cost of producing them. “To try and address the pent-up supply pipeline companies are planning and constructing new transmission projects as fast as possible to move gas and natural gas liquids, “ said Jacoby. “The pipelines go where the market demand is; the Gulf Coast has the largest concentration of petrochemical plants in the nation so a lot is headed there.
"Without a pipeline contract to move gas to a processing facility an Ohio Utica producer is stuck selling gas regionally for about half the price he would get if the gas can be delivered to a processor,” said Mike Jacoby, APEG’s director of shale energy.
“This puts in perspective the enormous opportunity presented by the potential construction of PTT’s ethane processing facility in Belmont County. Rather than pumping it into a pipeline we would process that ethane here in Ohio.” “No one knows how long it will take to balance supply and demand,” said Jacoby. “Insiders speculate pipeline development and downstream are still years behind Marcellus and Utica production growth and that we will be in a period of oversupply and low prices for the foreseeable future. There may be more pipelines on the way.” Contact Mike Jacoby: mjacoby@apeg.com MAJOR PIPELINE PROJECTS PLANNED FOR THE REGION. • Rover – Energy Transfer Partners’ proposed 711-mile pipeline will connect supply points in Ohio, western Pennsylvania and West Virginia to northwestern Ohio and Michigan, to supply Ontario, Canada. Designed to move up to 3.25 Bcf/d, total cost is expected to be $4.2 billion. • Leach Xpress – Columbia Pipeline Group’s new pipeline will run from Majorsville, W.V., to southeastern Fairfield County (with other system upgrades in southern Ohio) to transport an additional 1.5 Bcf/d of Marcellus and Utica gas. Total cost is estimated at $1.75 billion. Construction is expected to start in the fall of 2016. • NEXUS – Spectra and DTE are building a $1-billion-plus, 250-mile pipeline that will run from Columbiana County to Michigan then on to Ontario. The pipeline capacity will be 1.5 Bcf/d. Construction is expected to be complete by late 2017. • Ohio Pipeline Energy Network (OPEN) – Spectra, through its Texas Eastern system, will construct 75 miles of 30-inch pipeline from Columbiana County to a connection near Clarington (Monroe County) to join a major transmission line sending gas south. It will cost about a half-billion dollars and should be complete by the end of this year. • Utica Ohio River Project – A joint venture project between Regency Partners and Traverse Midstream, this connecting pipeline will send up to 2.1 Bcf/d of Utica gas to REX and Texas Eastern Transmission Company pipelines. Construction of this 51-mile, $500-million project will occur in Jefferson, Belmont and Monroe counties. It is scheduled to be in-service later in 2015.
Gas & Oil
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November 2015
7
Accounting course for oil, gas offers students
a field-specific insight into industry Sophie Kruse - Record Publishing Co
L
ooking at the vast number of careers that are available within the gas and oil industry, it can be easy to overlook a few that bear great importance to the field. One of these is accounting – a behind the scenes job that requires more training than one might expect. Due to this, there are a handful of universities that offer elective courses for students already in the accounting program in order to get them started with a background on the industry. At Ohio University in Athens, Robert Sarikas has been teaching a course called “Oil & Gas Accounting” for four years. Each year, the course is offered in the spring and has about 20 students enrolled. “From my understanding, only Youngstown State has a class like this,” he said. “You have to have someone who knows this to teach it.” Sarikas’ undergraduate degree is in geology, which he followed with graduate degrees in accountancy and taxation. In these programs, he took a few more industry-related course, like multiple law and tax courses for the industry and three petroleum engineering courses. He then worked in the oil and gas division at Arthur Andersen in Huston, followed by a specialty accounting firm with SEC practice in Huston called Thomas Leger. He said there are probably only 30 to 40 total schools in the country with a course like this, but that it’s hard to know for sure. There are four main industries where Sarikas said that specific training is beneficial: banking, insurance, oil and gas exploration and production, and price regulated utilities.
He said that while many students won’t go into the industry specifically, the class can be beneficial for other reasons. “It’s the only elective we have in accounting – the others are require and are generic. The truth is, in the real world of accounting, you’re always doing something pretty industry specific,” he said. “It’s a change of pace, doing something very industry-specific.” For Sarikas course, the first half of the semester students learn about the industry, which is the makeup for the first exam. Then, they get into the accounting of the industry. He said that many firms have come up with their own kind of training for employees working in the oil and gas sector, but that having some background in it is extremely beneficial. “It’s good to be able to see the connection between the real world and the numbers,” Sarikas said. “We’re giving our students another option.”
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Gas & Oil
Ohio Edition
November 2015
Ohio University Student: How Fracking Saved My Family Madison Roscoe - Guest Blogger
political science. Now, here I sit, in large part due to my father’s resolve to give me opportunities I need to succeed. I can honestly say that if it weren’t for the oil and natural gas industry, I wouldn’t be here. It took only six weeks for my dad to change the course of our lives. I only hope that I can make him as proud of me as I am of him. My concern is, how many families aren’t able to give their child the chance to go to their school of choice? How many families would miss out on these opportunities if people opposed to fracking are able to stifle an industry with so much promise? The author, from Beaver County, Pa., is currently a freshman at Ohio University.
KO-10407122
M
y name is Madison Roscoe and I’m currently a freshman at Ohio University studying political science. I wouldn’t be where I am today if it hadn’t been for the Ohio oil and natural gas industry and the opportunities it brought to my family. There’s one major factor that is often ignored in discussions about hydraulic fracturing. Most of the time, the emphasis is on the environment. But what about the fact that this industry has helped to financially stabilize many families, including my own? Some people seem to think that banning fracking would only impact “Big Oil.” But it would be people like me and my family would be harmed the most from shutting down this source of economic opportunity. My father worked two full time jobs for the majority of my life. This meant that I didn’t get to see him very often. He worked during holiday celebrations, vacations, and sporting events. This was just so we could get by as a family. My mother went to college later in her life to become a nurse. That helped, but my dad continued to work a heavy schedule so he could make sure our family was financially stable. In 2011, my dad made a decision that changed our lives for the better. He enrolled at the New Castle School of Trades to get his commercial driver’s license (CDL). He took money from his 401(k) to pay for our bills and his tuition. After only six weeks, he completed the course. In November 2011, he began his first job in the oil and natural gas industry at Keane and doubled his salary from when he worked two full time jobs. After six months, he went to work for Multi-Chem, a Halliburton owned company. This increased his pay even more. My dad’s new schedule had him working ten days with five days off, which meant I could see him a lot more often. He was home for major holidays and finally able to go on family vacations. I don’t think I could explain the amount of excitement in our family when my father could be there to share memories with my mother, brother, and me. During this time, my dad’s employment became even more vital, as my mother had to file for disability. My dad always encouraged me to go for my dreams. His mantra is that determination equals success. I knew what I wanted to do with my life. I wanted to go to college at Ohio University to study
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Gas & Oil
November 2015
9
Deadline means work ahead for Orrville utility agreement with EPA Paul Locher - Dix Communications
O
RRVILLE -- If there were any doubts that the city's electric utility is up against the wall in terms of meeting a Jan. 31, 2017 deadline for complying with U.S. Environmental Protection Agency directives in the wake of a recently completed seven-year negotiation, those concerns were highlighted at Monday's council meeting. Four resolutions on the agenda dealt with the city's immediately moving toward compliance with terms of the agreement. Those resolutions, all of which were adopted unanimously, dealt with converting a boiler from coal to natural gas, engineering and designing a new transmission line, constructing the new transmission line and purchasing materials to convert most of Orrville's street lights to LED technology. City utilities director Jeff Brediger delivered a nearly 20-minute long post-mortem on the agreement that was painfully hammered out between the city and the EPA over a seven-year period. Brediger traced the origins of the lawsuits against power providers and faulted President Barack Obama's administration's "anti-coal focus," saying, "This non-regulatory and non-legislative process has resulted in many settlements forcing utilities to install over $17 billion in upgrades, required them to invest over $630 million for 'environmentally beneficial' projects, resulted in the payment in fines of over $90 million, forced the unplanned shutdown of useful plants and the ultimate shifting of broad impacts to consumers." The current administration, he said, has targeted about 75 percent -- or 850 -- larger coal plants for similar legal action by 2016. Brediger said the city was "not told and will never be told" what the violations were that triggered the EPA suit against it. He said the city agreed to terms of the settlement without any admission of wrongdoing. Ultimately, through the negotiations -- the details of which the EPA has mandated can never be revealed -- the city agreed to invest nearly $2 million to convert its largest generating unit from coal to natural gas, reduce the usage of its other three coal-fired generating units to 10 percent of their capacity, pay a $25,000 penalty and spend $150,000 to convert 800 street lights in the city to LED technology. The LED conversion, Brediger said, will pay for itself in about 18 months. "We were able to make lemonade out of lemons on that one," the utilities director said. Brediger told council the agreement achieves the city utility board's primary objective of retaining as much generation as
possible and preserving its operating permit which allows for consideration of future repowering and fuel switching. He said the agreement additionally provides "huge financial credits in the transmission markets, even if we only operate at 10 percent capacity." While Brediger said the city expended hundreds of hours and spent tens of thousands of dollars on legal and technical consultants, he believes the efforts "saved our customers millions of dollars, retained local ownership and control, kept the system reliability high and provided countless savings and benefits citywide." Going forward, Brediger said, "The picture is just going to look a lot different. Our interest in preserving generation at home remains stronger than ever, especially in light of the pending wave of other generation plant forced retirements." He said that after Jan. 31, 2017 the coal-fired generators "will only be operated for emergencies and limited peaking needs. This will be a huge departure from normal for us and it will take a lot of courage, commitment and support by this community and our employees to make it work." He said Orrville's interest in natural gas, new coal, hydro and wind resources will "almost substitute for two of our three (coal) units and will be here for the next several decades." Brediger told council the city now has a huge challenge in complying with terms of the EPA agreement because the negotiations process "stifled our ability to get ahead of these. It will take a serious effort on the part of our staff to pull these projects off in time." Mayor Dave Handwerk commended Brediger and all employees of the power plant for their work in bringing the electric utility through a very trying period, calling it "a difficult job and a long haul." Reporter Paul Locher can be reached at 330-682-2055, or at plocher@the-daily-record.com.
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Gas & Oil
Ohio Edition
November 2015
Asset Protection Mistakes People Make Frank A. McClure, JD, AEP - Counsellor at Law
W
hen looking at what people do or don’t do with their property, when they own oil and gas interests, I thought we could come at it from a different angle. That angle would be from the direction of what people mistakenly do or don’t do to protect their oil and gas interests. This article will look at seven asset protection opportunities that are often overlooked. Obviously, because of space these are just the seven I decided to use for this article. Mistake number 1: Failing to use Domestic Asset Protection Trusts (DAPT). Domestic Asset Protections Trusts have become one of the most popular and widely-used asset protection techniques. In fact, as I have written before, Ohio’s DAPT has been in effect for a number of years now. Although many more people are taking advantage of these, many others are not. Some have failed to use this technique because of the uncertainty about whether it will work. This is often based upon a misunderstanding about the objectives of an asset protection structure. The goal is to put the client into a better position than the client was in without the structure. Thus, there will not be a 100% success rate, but in almost all situations, this technique will help. Mistake number 2: Failing to use Dynasty Trusts. Dynasty Trusts aren’t just estate tax savings vehicles. They are also used to provide asset protection and divorce protection for the beneficiaries for as many generations as applicable state law allows. In Ohio, it is left to the trust maker to decide how long is appropriate. This type of trust is commonly known as a Dynasty Trust. Just as clients may use lifetime trusts for the first generation, the same concepts apply to more remote generations as well. There is no reason not to protect the assets for grandchildren, great-grandchildren and other beneficiaries if this is what you wish to do. Over a million homes... one address
Mistake number 3: Failing to use third-party discretionary trusts. A third-party trust is a trust that is set up for beneficiaries other than the trust maker. For example, a trust set up for the benefit of the trust maker’s spouse and descendants is a thirdparty trust. There is no stronger asset protection technique than a transfer to an irrevocable trust in which the trust maker is not a beneficiary. Unless the transfer was a fraudulent conveyance, there is almost no challenge to this technique. Transfers to the trust need not even be completed gifts for gift tax purposes to be protected. Mistake number 4: The use of staggered distribution trusts. A lot of trusts are drafted to give the beneficiaries staggered distributions at different ages. For example, a common design is to distribute say one-third at age 25, one-half of the balance at age 30 and the balance at age 35. On the surface this looks great, but it needlessly subjects the trust assets to the creditors and divorcing spouses of the beneficiaries. Instead of this design, the trust can instead be drafted to continue for the beneficiary’s lifetime (known as a lifetime trust) with the beneficiary being named as a trustee upon reaching a selected age, with a co-trustee. Mistake number 5: Using support trusts rather than discretionary trusts. Many trusts are drafted to give the trustee the power to make distributions to the beneficiaries for their health, education, maintenance and support. These trusts are often called support trusts. In Ohio, support trusts are available to certain classes of creditors, including divorcing spouses. A discretionary trust (see mistake #3) on the other hand, gives the trustee absolute discretion over distributions and thus generally protects the assets from all classes of creditors. Mistake number 6: Not using charging order protection. People often use charging order protected entities such as limited liabil-
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November 2015
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When They Own Oil and Gas Interests ity companies (LLC) and limited partnerships (FLP) to protect assets. The assets don’t have to be business assets. They can be cash, brokerage accounts, life insurance, real estate (including oil and gas interests), and just about any other asset class. Owning these assets in your own name subjects them to the possible attachment by a personal creditor. There is no reason to hand these assets over to a creditor when it is so simple and cost-effective to form and maintain a charging order protected entity. A charging order is defined as court-authorized right granted to a judgment creditor to attach distributions made from a business entity. A charging order as the only remedy a creditor has, works well to cause the creditor to settle the dispute at a lower dollar value rather than risk getting a lien over an entity that may not make any distributions. Mistake number 7: Using single member LLCs rather than multi-member LLCs. The philosophy behind charging order protection is that it would be unfair for the other member(s) if that member has to be in business with the creditor of the debt-
or member. Thus, Ohio provides that the creditor merely gets a charging order which is an economic interest that doesn’t include any voting powers. However, when there is only one member of the LLC, the philosophy of protecting another person does not necessarily exist. Maybe just making the LLC a multi-member LLC would give much more protection and also help you make some transfers to loved ones for estate planning purposes. These are not intended to be an exhaustive list of mistakes people make when doing or not doing asset protection planning. They are merely an attempt to make you think about some possibilities and from there find out the ever growing asset protection planning ideas that attorneys throughout the United States are creating. With this in mind it is important to talk to an attorney who concentrates in this area of estate planning and asset protection. If you wish to learn more, please go to www.fmcclurelaw. com to read other articles about asset protection and how it may relate to oil and gas or contact our office.
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November 2015
13
Wayne Co. files FERC letter to reject Rover Pipeline Thomas Doohan - Dix Communications
W
OOSTER -- Wayne County Commissioners filed a letter with the Federal Energy Regulatory Commission in mid-September asking the agency to reject Energy Transfer's proposed Rover Pipeline, saying the proposed route could hinder the county's economy and create safety concerns. Energy Transfer has proposed the construction of a 711-mile pipeline. With starting points in southeastern Ohio, western West Virginia and southwestern Pennsylvania, the pipeline will stretch northwest across Ohio toward southern Michigan. On its way north, the pipeline will cross-cut 18 counties, one of them being Wayne County. The proposed route traverses the county's southern tier, passing through what the commissioners call in their letter "agriculturally productive and environmentally sensitive land." For these reasons, among others, the commissioners are requesting FERC "reject the proposal by Rover." In the Sept. 15-dated letter, it describes how Wayne County is the top dairy producing county in Ohio and has the third largest agricultural economy in the state. The pipeline, as it is proposed, the commissioners write, will jeopardize those agricultural resources. "The proposed pipeline will uproot trees; contaminate quality topsoil, cut through existing cold water sources and inevitably damage existing successful farms in our region," the letter stated. The commissioners' claims are not unfounded, as Wayne County OSU Extension educator Rory Lewandowski said the pipeline development through farm land can have negative impacts on agriculture. In May, in response to a suggestion by residents living farther north along the path of the Nexus pipeline to move it south along Rover's path, he said the soil disruption would have "long term impacts on yields." Specifically, Lewandowski said, no-till fields would be disturbed and it would take years for the benefits of the tillage practice to return. He noted the pipelines could change the way water flows, causing increased erosion or pooling. "Soil compaction is definitely a concern," Lewandowski added. In the letter, commissioners also addressed issues of safety. The pipeline is projected to pass through an area of Wayne County which a recent public safety communications systems study revealed to be underserved. Firefighters and first responders in the area, the commissioners write, have experienced dead spots and lapses in radio communication. "While plans are in place to attempt to address some of the current public safety system's shortcomings, the additional dangers and traffic produced by the placement of the Rover pipeline in the underserved area is cause for concern." The letter lists data from the Pipeline and Hazardous Materials
Safety Administration, which is responsible for pipeline safety, and paints a picture of the potential hazards associated with pipelines. The statistics describe how PHMSA has 135 inspectors who oversee 2.6 million miles of pipeline, of which it has inspected about 20 percent, or 520,000 miles, since 2006. Over the past 10 years, there have been 117 incidents involving gas transmission lines, the commissioners wrote. Over the past 20 years, similar pipeline incidents have caused 41 deaths, 195 injuries, and $1.6 billion in property damage. "Apart from rerouting the entire pipeline, Wayne County would ask that Rover take steps to preserve the valuable agricultural assets of the county," the commissioners wrote. Ohio Farm Bureau Director of Energy, Utility and Local Government Policy Dale Arnold said the commissioners' filing with FERC is a significant step in ensuring the interests of Wayne County residents are upheld. FERC's approval process is viewed as a court case, he said, and each filing counts as a piece of evidence for granting approval, denial or recommendations for how to improve. "It puts FERC on notice, as well as the company," Arnold said. "The county government has some issues and concerns and they need to be addressed before the project moves forward." In an email, Vicki Granado, a spokeswoman for Energy Transfer, said the pipeline developers are looking forward to continuing to work through the FERC application project and hope to receive approval and begin construction in early 2016. In developing the Rover Pipeline, she said, Energy Transfer has taken steps to minimize the environmental and agricultural impact and safety issues. "Rover Pipeline has performed comprehensive environmental, cultural and civil surveys throughout its route selection process and believes that the route presented to FERC will allow the safe construction of the pipeline with the least impact on the surrounding areas," Granado said. Reporter Thomas Doohan can be reached at 330-287-1635 or tdoohan@the-daily-record.com.
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Gas & Oil
November 2015
Ohio Edition
Miller’s Museum: preserving petroleum’s past Jonathan Scholles - Dix Communications SHREVE—A quintessential oil man, the late Ken Miller, founder of Ken Miller Supply in Wooster, was passionate about the industry he devoted his life to — just as his father, Albert, did. So passionate, Miller spent 20 years curating a massive homage to the gas and oil business, creating the Ken Miller Supply Museum just outside of Shreve. The museum is complete with hundreds of artifacts, including a oil derrick, old fashioned gas pumps, machinery and tools and up to 60 vehicles used in the industry. The collection is enough to make the Smithsonian Institution drool. And, interestingly enough, the famed Smithsonian visited Miller’s Museum three times, vying for pieces of its collection, says Jack Miller, son of Ken Miller and president of Ken Miller Supply. “A lot of people have taken a lot from the gas and oil industry, but my dad wanted to give back to it ... and humanity really,” said Jack Miller on his dad’s motivation to curate the museum in the early 1980’s. “He believed that our heritage and industry ought to be saved,” Jack Miller added. “Not many people gave back they way he did.” Ken Miller started working in the industry as a teenager.
A variety of old gas pumps are on display at Ken Miller Supply Museum in Shreve. Jack Miller, president of Ken Miller Supply, stands next to one that dates backs to when gas was 15 cents a gallon. It’s protected by seven padlocks. "People were thieves back then and gas was cheap,” said Miller, explaining the multiple padlocks.
He worked in about 200 wells, asking a lot of questions along the way and gaining a wealth of knowledge. “He had a petroleum degree just from hard knocks,” Jack Miller said. One the items on display at Miller’s Museum is Ken Miller’s first work truck. In 1959, Ken Miller had just started his business and was getting ready to move frack to a well for water when the engine on the truck gave out, needing rebuilt. “At that point, he had it in his mind that he was done,” Jack Miller said. Luckily, though, a local oil delivery man, Bill Hughes, looked at the engine, saying it was a $700 fix, providing Ken Miller the confidence to carry on and, eventually, build his empire. Now Ken Miller Supply has grown to 11 locations in five states. Ken Miller, though, died in 2004 — six months after wife, Lois. He was 79. She was 74. Behind the museum is the original Ken Miller Supply office, a small gray structure. It’s first year in business, the building had no heat. It was so cold that winter, Jack Miller said, the phone technician refused to install service until it warmed up. Stepping into the museum is a fantastical walk through time. From Edwin Drake and the origins of the gas and oil industry to the one of the fastest cars in the world, the collection covers it all. A pioneer, Drake, known as Colonel Drake, was the first to drill for oil in the 1850s. Although, at the time, he had no way to sell it and went bankrupt. “He created the biggest industry and didn’t know it yet,” Jack Miller said. Another interesting item on hand is a gas and oil delivery wagon, which delivered door-to-door in western Ohio in 1918. Ken Miller outbid a major oil company by a dollar to secure the prized item, paying $5,001 for the vehicle. Not far from the delivery wagon is the “Wirt Special,” a fully customized race car with four engines and four synchronized transmissions built in 1958. Running on rocket fuel, it can reach speeds up to 170 miles per hour and was labeled the second fastest car in the world. “It never quite had the distinction of being the fastest in the world,” Jack Miller said. Regardless of age or industry insight, Miller’s Museum appeals to all audiences. It’s open every second Saturday of the month from noon-3 p.m. Reporter Jonathan Scholles can be reached at 330-287-1632 or jscholles@the-daily-record.com. He is @jonschollesTDR on Twitter.
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November 2015
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Jack Miller, president of Ken Miller Supply in Shreve, shows off his prized huckster wagon, used by traveling salesmen to sell medicinal products made from oil.
Delivery methods for gas and oil have drastically changed. Jack Miller, president of Ken Miller Supply, shows this first hand, pointing out a delivery wagon last used in 1918. Many items at Ken Miller Supply Museum have been highly sought after by the Smithsonian Institute.
16
Gas & Oil
November 2015
Ohio Edition
Energy Coalition hears about new ‘checkbook’ Judie Perkowski - The Daily Jeffersonian
C
AMBRIDGE -- Ohio taxpayers will be able to track the spending habits of state agencies, boards, cabinet departments, commissions, statewide elected officials, local governments and schools districts — if these entities agree to join Ohio Treasurer Josh Mandel’s online checkbook project. Representing Mandel’s office at the recent Guernsey Energy Coalition meeting was Dan Risko, deputy director of regional representatives, and Lindsey Kerr, public affairs liaison, both of whom were introduced by Norm Blanchard of the Community Improvement Corporation, in Jo Sexton’s absence. Sexton is president of the Cambridge Area Chamber of Commerce, sponsor of the monthly meeting. Risko said Mandel began the process of developing OhioCheckbook.com in 2013 due to Ohio’s dismal ranking in the annual Public Interest Research Group’s* ranking of the Buckeye State in regards to providing online access to government spending data — it ranked 46th out of 50 states. Mandel used funds from his operating budget to create the first of its kind “Treasurer’s Transparency Project,” without requesting additional appropriations from the legislature. The project gives Ohioans a clear picture of how their taxes are spent, but does not provide information about individual tax refunds, welfare payments and paychecks due to privacy restrictions. The only salaries visible are those of elected state officials. The OhioCheckbook.com website was launched Dec. 2, 2014, setting a new national standard for government transparency, and for the first time in Ohio history all state spending information will be available on the Internet, with no cost to the those providing information, or to the general public. According to a press release from Mandel’s office, OhioCheckbook.com earned Ohio PIRG’s Follow the Money2015 Number One ranking in the country for government fiscal transparency. On April 7, Treasurer Mandel sent a letter to 18,062 local government and school officials representing 3,962 local governments throughout the state calling on them to place their checkbook level data on OhioCheckbook.com and extending an invitation to partner with his office at no cost to local governments. Local governments include cities, counties, townships, schools, library
districts and other special districts. “Treasurer Mandel was joined by dozens of local government leaders from across Ohio who have partnered with the Treasurer’s office to post their spending information online. These local governments and school districts are among the first wave to launch their checkbooks live on OhioCheckbook.com which includes more than six million checks that equate to more than $14.2 billion worth of total spending,” said Risko. Last week, the first 114 — of the 3,962 local governments and 611 school districts spending sites — launched live on OhioCheckbook.com, with hundreds expressing an interest in the project. Read more about the local government launch at http://wwwohiotreasurer.gov/News/4378. The Treasurer’s Office is partnering with OpenGov, a leading government technology company to develop the transparency sites. Mandel’s office paid a one-time licensing fee of $975,000 for the system with an annual maintenance fee of $400,000 to $950,000 depending on the number of local governments that participate. Mandel said the database contains more than 112 million transactions by state agencies and boards from 2008 through June of 2014. He said OhioCheckbook.com will be updated monthly.
Norm Blanchard, executive director of the Community Improvement Corporation, l, introduced guest speakers from office of State Treasurer Josh Mandel, Lindsey Kerr, public affairs liaison and Dan Risko, deputy director of regional representatives. Natalie Hugebeck, r, is the Cambridge Area Chamber of Commerce administrative assistant.
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November 2015
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Thousands of teachers take new oil, gas knowledge back to their classrooms Sophie Kruse - Record Publishing Co.
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hanks to workshops offered through Ohio the teachers have good information they can share with students. Oil and Gas Energy Education Program, OOGEEP has done a great job inviting teachers to hear about more than 2,700 teachers have gained (the industry) and learn about it.” knowledge about the industry to take back to their As an incentive, OOGEEP has given more than 250 scholarclassrooms. ships since 2007 for students pursuing studies connected to the oil Craig Whitaker is a teacher at Perry High School where he and gas industries. teaches physical geography for juniors and seniors, as well as a “Craig is our perfect scenario,” said Mark Bruce, communicaduel credit course at Stark State University on the same topic. He tions director with OOGEEP. “He went to the workshop, took it attended the workshop last summer and has since implemented to the classroom and taught it. And now he has students pursing a many aspects into his own lesson plans. career. It’s the perfect circle, it’s what we strive to create.” “A lot of what [OOGEEP] teaches at the workshops was reWhitaker said he’s seen students will all different aspirations lated to some of the Ohio core learning standards,” Whitaker said. take some thing from his course. “I’ve been able to take some of those projects they had and imple“I’m seeing kids wanting to go into welding careers or college mented them within my class. They tie in to what we’re seeing in bound taking (my course) because they’re seeing themselves the textbooks, going on in the news in the local region and actual heading in that direction,” he said. “It’s making a connection from events taking place in Northeast Ohio in the industry.” the classroom to the real world. I’m giving them opportunities, For one specific assignment, Whitaker has his students research information on what path to take.” and find where deposits were made and where Ohio may had been located on the planet at that time. Whitaker said he’s had many students who have had their interest in the industry sparked. “I have a couple of students at Kent, Akron and Marietta that have come through the geology program,” he said. “OOGEEP has tied it together for them. We’re seeing the industry explode in this region, kids are seeing the benefits and drawing an interest.” According to Jeanne Gogolski, teacher consultant with OOGEEP, the workshops are important also because it allows students to see career opportunities they otherwise might not have HARVEST THE SAVINGS OF known about. “The teachers are the gatekeepers,” she said. “We make sure
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Gas & Oil
November 2015
Ohio Edition
OOGEEP Awards Record Number of Scholarships in 2015; Scholarship Foundation Now Accepting Donations to Continue Efforts Mark Bruce - OOGEEP Communications Director
T
hanks to the generosity of Ohio’s oil and gas producers and allied industries, the Ohio Oil and Gas Energy Education Program (OOGEEP) through the Ohio Oil and Gas Energy Education Foundation, awarded a record 56 scholarships to students representing 19 universities, college or technical institutes in 2015. To date, OOGEEP and Ohio’s oil and gas industry have awarded more than 250 scholarships to students from 99 hometowns in 48 Ohio counties. Below are just a few of the comments received from 2015 scholarship winners: “Now, more than ever, we need to attract as many of America’s most enthusiastic and innovate students to the energy industry as we can to drive our country into the future. Receiving this scholarship offered me excitement and optimism for my future within the industry.” - James Roche, Mechanical Engineer, Ohio State University “Thank you for your generosity and vote of confidence. I promise I will work very hard and I hope one day I will be able to help students achieve their goals just as you have helped me.” Domenic Ellis, Welding Technology, Belmont College “Your investment in my future will be put to good use and will not be forgotten. I hope that one day I too will be able to give back to the community as your foundation has.” - Derek Krieg, Petroleum Engineering, Marietta College Industry experts volunteer their time to serve on the OOGEEP Scholarship Committee. They spend countless hours reviewing every application to ensure the applicants have the desire to get an education that will assist them as they pursue their goals in Ohio’s oil and gas industry. The students are judged on energy career, an essay, letters of recommendation, academic achievement, awards or special recognitions, community service
and other outside activities. “The scholarship committee reviewed more than 160 applications from students planning to attend accredited colleges and trade schools, demonstrating the growing interest of young people in our industry,” said Frank Gonzalez, GonzOil, Inc. and OOGEEP Scholarship Committee Chair. “Thanks to all that have donated time, expertise or funding to the Scholarship Foundation. Those efforts help to ensure a new generation will carry on the tradition of Ohio’s oil and gas industry by providing local energy supplies to the region.” If you’d like to volunteer for the Scholarship Committee or make a donation, contact OOGEEP Executive Director Rhonda Reda at (740) 587-0410 or by email at rreda@oogeep.org. You can also learn more on our website oogeep.org/about-page/foundation. Derek Krieg (left) and Megan Pennock (right)
Gas & Oil
www.GasandOilMag.com
November 2015
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Members of the scholarship committee.
You can also mail the completed form to OOGEEP, P.O. Box 187, Granville, Ohio 43023. The Ohio Oil and Gas Energy Education Foundation is a 501C(3) foundation and donations may be tax deductible. OOGEEP and the Foundation would like to thank the members of the scholarship committee for the time and effort they donate to this worthy effort. Gretchen Addington ......................................... Eclipse Resources Bob Belden, Jr. ...............................................The Belden Brick Co. John Cramer ........................Superior Well Services/ A Nabers Co. Brian Chavez ..............................................................Condevco, Inc. Mark DePew ................................................................... Petrox, Inc.
Todd Dever ............................................................... Devco Oil, Inc. Amy Dobkin......................................................... XTO Energy, Inc. Frank Gonzalez ............................................................ GonzOil, Inc. Mark Lytle ........................................... Buckeye Oil Producing Co. Marty Miller ............................... Alliance Petroleum Corporation Eric Smith ................................................. Maric Drilling Company Mark Sparr ................................................................. J R Smail, Inc. Sarah Tipka ..................................................... Tipka Oil & Gas, Inc. Ron Van Horn .................................................... Schauer Insurance Terry Wiegmann ............................................ Quick Solutions, LLC.
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Gas & Oil
November 2015
Ohio Edition
Presidential Candidate visits Salem,
talks energy plan
Chelsea Shar - Dix Communications
S
ALEM — Republican presidential candidate Marco Rubio made a campaign stop at BOC Water Hydraulics to talk about his energy plan if elected in 2016. Rubio’s message was about creating jobs in the oil and gas industry, limiting government involvement in the oil and gas industry and changing the way higher education works in order to fuel a renaissance. “We need a higher education system in this country that graduates fewer Greek philosophers and more engineers, scientists, welders and electrical specialists because here is the truth, the market for Greek philosophers is significantly tight in the last 1,000 years,” he said, gaining a laugh from the crowd. Rubio, a senator from Florida, took a tour of the hydraulics facility with its president, Todd Olson. Olson said he coordinated to host Rubio at his family’s business, which produces water hydraulic products to a global market. He explained that through his conversations with Ohio Treasurer Josh Mandel about international trade issues, he started talking with Rubio’s campaign and ended up hosting the presidential hopeful. “I am hoping to see some vision and some leadership in how we are basically going to have a long-term plan in the energy market and how we will have a level playing field. There’s a lot of aspects to that international trade piece and sometimes (when) we engage in trade we don’t have a level playing field and we disadvantage our businesses,” he said. Mandel introduced Olson and Rubio to the crowd of locals and said out of any presidential candidate this election, Rubio has campaigned in Ohio the most. “Marco has a different message. A different message than we are hearing from any of the other presidential candidates. He is tapping into a different demographic,” he said. Rubio started by praising the innovation and production coming out of BOC Hydraulics, saying it was the perfect place to stop and talk about how American’s “energy potential” can be harvested for the 21st century. “I believe that due to the combination of our natural resources and our human resources that this nation has the greatest energy
potential of any nation in all of human history,” he said. Rubio said that the ability to achieve that goal is thwarted by Washington and blamed leaders in both parties. Rubio summarizes his energy plan with the tag line “minimizing government bureaucracy, maximizing private innovation and optimizing American resources.” He cited the EPA’s regulations and the 30,000 new pages of EPA regulations that have been established since Barack Obama has been president as a way the government has hurt job growth. Rubio stuck to the conservative view of limiting all governmental agencies by instituting a national regulatory budget.
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8 www.GasandOilMag.com Gas & Oil August 2015
He said if elected he will stop the Clean Power Plan immediately. Rubio has also expressed opposition to the Clean Air Act. On October 1, the EPA decreased the limit for ground-level ozone to 70 parts per billion. The U.S. Chamber of Commerce and local chambers like the Canton Area Chamber of Commerce have taken a stand against the law, saying it will harm businesses that already can’t comply to ozone emissions regulations and will negatively effect business growth in the U.S. “It’s time we let coal back to the task of creating jobs and growing our economy,” he said. Like many of the gas and oil company experts have been advoor to grow in cating, Rubio said in order for the gas and oil industry the U.S. there needs to be an expansion of the infrastructure and Toll Free more gas and oil pipelines. He referred to the process a gas or oil drilling company has to go through in order to get a permit in Florida, his home state, which deals with six regulatory agencies. “As president I will simplify the permitting process for oil and gas pipelines,”Instant he said. noise/dust reduction One of the12 pipelines supports isfor opening Keystone Pipemonthheprivacy yourthe sites line. Call for a planting quote today! “It is innovation, not regulation that leads to cleaner, cheaper energy... That is why conservatives, not liberals have the more suswww.smithevergreen.com tainable energy agenda,” he said. smithevergreen@neo.rr.com Rubio voiced his support of hydraulic fracturing, crediting it
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with access to $100 billion of natural gas in the U.S. 34thproviding Annual Celebration 2015 “The $100 billion worth of natural gas and the $550 billion of oil beneath our feet are doing the people of Ohio no good pent up in the shale rock, yet Barack Obama and Hillary Clinton continue to argue that it’s more important for us to stabilize and subsidize wind turbine and solar panels than to expand access to our extraordinary resources,” he said. He added that if elected he will rewrite the offshore drilling plan to allow drilling in the outer continental shelf. Larry Parker, a former car salesman from Parker Chevrolet in Salem and a former Perry Township Trustee, was in the audience. He said hearing Rubio speak re-enforced his support of the presidential candidate. “He seemed to understand reality,” he said. Parker said although he never worked in the oil and gas industry, the energy market impacted his business with the rise and fall of gas prices. Roxanne Morris, of Warren, also was in the audience. She is a CRAFTS OF DISTINCTION veteran and said she supports Rubio after watching him in the At Great Trail Festival Grounds • State Route 43 Republican debates. “I could see it in his eyes, (Donald) Trump has no substance, Two Big Weekends ★ but Rubio is very★strong,” she said. Rubio is running against29, 14 other Republican Aug. 30 andcandidates in the hopes of gaining the Republican primary vote in May to move on Sept. 5, 6 & 7 to the November 2016 presidential election. @CShar_AR on Twitter
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November 2015
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Senator Lou Gentile testifies for horizontal well safety bill C
OLUMBUS, OH - State Senator Lou “This is common sense, straight forward legislation intended Gentile (D-Steubenville) offered spon- to ensure the health and safety of first responders and local ressor testimony on Senate Bill 166 in Ohio idents,” said Gentile. “I’m working to make sure that the men Senate Energy and Natural Resources Commit- and women who are responding to these situations have all the tee. information they need to perform their jobs quickly and effiThe bill, which would require well owners and ciently to protect the families and communities near well sites.” operators to distribute emergency response plans to local first This bill follows several well emergencies such as the Eisenresponders and emergency management agency officials, aims barth well pad fire and the methane gas leak in Sardis, Ohio, and to protect the communities in which horizontal wells operate. is modeled after a similar Pennsylvania law. Senator Gentile Well owners and operators have emergency response plans, has been working closely with members of the first responder but currently don’t have to share them with first responders. community, local emergency management, and the oil and gas Senate Bill 166, which was introduced by Senator Gentile after industry on the issue of horizontal well safety and the creation working with local first responders, emergency management of- of this legislation. ficials, and oil and gas industry officials, is a proactive approach Senator Gentile represents the 30th State Senate District, to managing well emergencies. which comprises 10 counties in Eastern Ohio.
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Gas & Oil
Ohio Edition
November 2015
Opinion:
State Misses Tax Deadline Marc Kovac - Dix Capital Bureau
C
OLUMBUS — Stop me if you’ve heard this before. Back in June, Republican Senate President Keith Faber (R-Celina) and Republican House Speaker Cliff Rosenberger (R-Clarksville) announced an agreement by the two chambers to come to an agreement on the touchy severance tax issue that has been under debate for several years. “We have made substantial progress in the past two weeks,” Faber said at the time, noting that lawmakers, industry groups and Gov. John Kasich were close to a compromise on tax changes that would affect oil and gas produced via horizontal hydraulic fracturing. The timing was notable, because it came days before lawmakers finalized the biennial state budget, and many expected a severance tax increase of some sort to be included in the two-year spending plan. “We’ve reached a point where concepts and ideas are actually being drafted into legislation,” Faber said. But the sides still weren’t in complete agreement, so instead of adding severance tax language to the budget, lawmakers opted to launch a new study effort, with a report required by Oct. 1. “The thing that we are committed to continue today is the open and frank dialogue on where we can find common ground to move forward for the industry and the tax policy of the state,” Rosenberger said. Faber added, “The deadline’s a hard deadline. There was a lot of discussion about whether this was just a stalling tactic. ... Make no mistake: There’s going to be a solution to this problem, and lest one side think that they can drag it out or extend the ball, that’s not an option ...” There was some acknowledgement at the time that the final plan likely would include some sort or tax rate increase. “Clearly, if we’re talking about a severance tax, we’re increasing it from the current rate,” Rosenberger said. That was back in late June. Where do things stand now? There could be a report issued any day now, but as of Oct. 1, there was none, plus no indication that lawmakers are ready to
increase the severance tax anytime soon. “The severance working group is diligently working on its draft report,” Sen. Bob Peterson (R-Sabina), who’s been spearheading the discussions, said in a released statement on the deadline day. “Changing market conditions within the oil and gas industry provided an extra challenge, and we believe it is far more important to get it right than to meet a calendar guideline. We’ve made significant progress and remain confident a long-term solution can be found that can address market conditions and the future of the industry in Ohio.” Brad Miller, a spokesman for Rosenberger, added in a released statement, “Conversations regarding future action on Ohio’s severance tax have been ongoing throughout the summer, and we believe that the panel is very close to issuing a report of findings. Addressing the severance tax is a substantial undertaking that requires input from all sides of the issue. We have been committed from the beginning to making this an open and inclusive process while working with the Senate and the administration, as well as industry experts to make sure our work results in a comprehensive report that will serve as a guide for effective, responsible and balanced policymaking for years to come.” Kasich, who has been pushing for a severance tax increase for some time now, was polite about the situation earlier this summer. There are indications his patience is again wearing thin. “Oil and gas productivity in our state continues to break records, yet our outdated tax system hasn’t kept up,” Joe Andrews, the governor’s spokesman, said in a released statement. “The governor remains committed to making sure that these companies pay a fair share of the profits they reap by tapping Ohio’s new-found oil and gas resources so that we can continue to cut the income tax for all Ohioans and invest in communities. We stand by willing and ready to help lawmakers get this done.” Again, stop me if you’re heard this before. Marc Kovac is the Dix Capital Bureau Chief. Email him at mkovac@dixcom.com or on Twitter at OhioCapitalBlog.
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SafeLand Safety Awareness class planned Beyond the Standard Wooster
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EW PHILADELPHIA — A SafeLand Basic Safety Awareness Course is being offered through Adult Education of Buckeye Career Center on Nov. 9, Dec. 14, Jan. 13 and Feb. 10. The course is essential for any oil and gas or petroleum employee, and is open to participants from a variety of industries. The eight-hour course will provide a general understanding of safety issues in the field, along with a complimentary OSHA introduction and overview for those new to the industry. This course gives workers a comprehensive understanding of job safety prior to entering the job site, reducing the number of preventable accidents. After completing the course, each participant will receive a picture ID with a unique barcode that stores the participant’s course information in an online database for companies to access. The cost for the eight hour course, workbook, certification and ID is $150. Businesses may send multiple participants or have the course held at their facilities. To register for the class or for more details, contact Vicki Swaldo, Registration Assistant, Adult Education, Buckeye Career Center, at 330-308-5720, ext. 1522 or 330-339-2288; email vswaldo@buckeyecareercenter.org. Pre-registration is required.
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Gas & Oil
November 2015
Ohio Edition
Going Looooong Don Gadd - Landman
N
ow that the gold rush is over in most of the areas of Ohio, I have seen that wide eyed stare from more than one landowner. That stare that says they were either bowled over by all the excitement or held their cards close and ended up missing the proximate time for leasing their land. Then there are those that did join a group, went to the meetings, and still ended up outside the window of activity. All that excitement, all those thousands of dollars per acre, when is it coming back? For most the answer will be not in our lifetimes for there may be oil and or gas under your lands but technology hasn’t caught up with the new drilling and there has to be something to drive that oil and gas to the well bore to be recovered. So, what is one to do if they are in the window? The first payment of their lease has been paid and the second or extension of the primary term is due. What if you don’t get paid the second time around? Is your lease still good? What are your options? The first place to look is your lease. I hope you received a copy of it as most of the leases taken only had memorandums recorded at the courthouse. The information on these memorandums is spare but will give you an idea of the time of signing and the length of the lease (at lease the first 3 or 5 years). Additionally, if the lease was sold to someone else, there will be notations on the leases that will direct you to whomever currently owns your lease. By following these short steps or looking your own name up on the computers in the recorder’s office you will be able to gather most of the information you need to get ahold of the current owner of your lease. Next, send a letter to the current owner asking for a copy of your lease. Most companies will comply as good relations with the landowners is a priority with most oil and gas companies
and I have found the big companies to be very forward in their dealings with the landowner. If the direct approach doesn’t work, while you are in the courthouse to start with looking up information on your lease, look to see which of your neighbors have signed leases with the same company. The information on most leases is the same and will give you an idea of what your lease has in it. And, like any area, there is that guy who always gets a copy of everything he signs. If you are interested in doing all this, then more than not your outlook is to go long on your side. Living on the land most of your life, your interest is in getting paid or starting the lease thing all over again. But there are some pitfalls, as you will see. In most leases there are clauses that require you to notify the owner of the lease that it is in default. Additionally, I have seen clauses that require proof of a bonifided counter offer from another company that the current owner has the right to match. All these take time and more importantly money to complete. Also, competent legal advice should be used anytime it comes to voiding something that is of record. My hope is that you all get paid and drilled. The purpose of a lease is to get drilled and from my side of the table I always enjoy being the last guy to ever lease that guy. Each month he goes to the mailbox for his royalty check I tell him to think of me as I enjoy seeing them again in their new F150 (I’m a Ford man). Now, if you are not particularly interested in going long yourself, and it looks like the kids and grandkids have no particular interest in perpetuating life on the farm, then you might be interested in letting others go long. I met such a group here this month and was impressed by their pitch to buy my minerals. All or part, they were interested in both ways. I listened and will inform you next month after my next meeting with them.
Gas & Oil
www.GasandOilMag.com
November 2015
31
Gulfport drops suit against Barnesville Cathryn Stanley - Dix Communications
B
ARNESVILLE -- A lawsuit against the Village of Barnesville by Oklahoma City -based Gulfport Energy Corp., filed on March 5, 2015 in U.S. District Court, has been dropped. The announcement, from Gulport, the Village of Barnesville and Antero Resources, who intervened as a party to the lawsuit later, was released to the Barnesville Enterprise on Friday, Oct. 9, following the decision on Thursday evening. The parties agree as follows: “Gulport previously filed a lawsuit against the Village of Barnesville in US District Court. Antero intervened as party to the lawsuit. While the parties have not resolved their differences, they do agree that the lawsuit is an impediment to discussion of and resolution to those differences. The parties agree that the pending litigation does not provide the best and most cost effective forum in which to address all present concerns of all parties. As a result, Gulport will voluntarily dismiss its lawsuit at this time. Gulport, the Village of Barnesville and Antero will continue to discuss all aspects of their relationships and will attempt to resolve their differences without resort to litigation.” The suit, which garnered national and international attention
from the media and environmental advocates, sought a declaration of Gulfport’s rights to withdraw water from Slope Creek Reservoir for its fracking operations under a Water Use Agreement between the company and the village signed on August 17, 2012. The agreement will terminate at the end of 2017, unless the two parties agree to an extension. The suit claimed the agreement granted Gulfport “the unrestricted right to draw water from the Reservoir unless and until the health and safety of area residents and businesses are impaired” and that Gulfport has and will continue to pay Barnesville “in excess of $75,000 annually”. The suit further claimed that if “Barnesville fails to provide Gulfport its contractually-entitled water supply, and Gulfport therefore cannot produce its mineral interests, Gulfport stands to lose millions of dollars.” The suit claimed Gulfport held, and still holds “superior rights to draw water from the Reservoir over all third-parties”. In April the Village hired Columbus-based law firm Barnes and Thornburg, LLP to represent them in the suit. The Village used funds previously earmarked for the Slope Creek waterline replacement project, currently in the planning stages, to retain the law firm.
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November 2015
Ohio Edition
SHALE COLUMN PROJECT AT ZANE STATE ALMOST COMPLETE
Judie Perkowski - Dix Communications
T
he Zane State campus in Cambridge has changed dramatically in the past couple of years. The addition of the Paul R. Brown EPIC Center, the skywalk connecting the college with the Willett Pratt Training Center, and the addition of several pieces of workable oil and gas equipment stationed at various points on the college’s premises, and in full view of the public. The latest addition to the unconventional landscape is a sixfoot geologic rock column, designed to demonstrate the many layers of sandstone, limestone and other compressed properties that are consistent in the Utica and Marcellus Shale formations. The idea for the shale project originated several years ago when Robert Stonerock and Paul Pasley, instructors for the oil and gas engineering technology program at Zane State College,
were inspired by a rock column exhibited at the Ohio Department of Natural Resources. Stonerock said the column wasn’t specifically designed to represent the make-up of hydrocarbons, but they liked the idea. “We talked about building a rock column on campus for several years. A column that represented the different layers of rock in the Utica and Marcellus Shale Plays. Then finally, in 2013, we were told there was some money in the budget to start on the project,” said Stonerock. “This is a project Paul and I put together at a very low cost. “We are completing the project for under $2,000, which includes the cost of the stone, the concrete, gas for trips to the quarries, and our time. “Finding all the different pieces of rock to illustrate the many
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Left: Students in the Oil and Gas Engineering Technology class at Zane State College work together on the capstone project for several graduating seniors. The project is scheduled to be finished by the end of October or the first of November. The project was an idea by the college’s instructors in the oil/gas program, Robert Stonerock and Paul Pasley.
layers that form the Marcellus and Utica Shale, was difficult. We contacted several state agencies in New York and Kentucky about quarries we thought would have the rock made of the composition we needed — with no luck. The Ohio Department of Natural Resources, on the other hand was very helpful in addition to a couple of private quarries. “Kipton Quarry in Oberlin and Lone’s Landscaping in Nashport, donated Trenton limestone. We wanted the base to be made of granite, but it is very expensive, so we just replicated the look of granite. Also, Medina and Clinton sandstone was unavailable.”
November 2015
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Right: Robert Stonerock, c, instructor for Zane State College’s Oil and Gas Engineering Technology degree program, gives helpful information to student Samantha Goodhart about the concrete foundation she helped to pour for the geologic shale rock column that will be the capstone project for several graduating seniors. Sam Wilhelm, l, is one of the seniors involved in the project.
The order of rock, from bottom to top: Granite (replicated) and Trenton sandstone which is the Utica Shale; Medina sandstone and Clinton sandstone (replicated) is the Marcellus Shale, which will be topped off with a slab of Berea sandstone. The college’s logo will be carved into the top layer of sandstone. Stonerock said this exhibit can be useful for geology and environmental classes, in addition to oil and gas. The project is expected to be completed by early November. jperkowski@daily-jeff.com
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November 2015
Ohio Edition
The Latest from Utica Summit III Officials say gas and oil production in Utica region means bright future Chelsea Shar - Dix Communications
C
ANTON -- The day when dollar stores and Walmarts are stocked more with plastic products made in the U.S. rather than China or elsewhere is coming and it’s all due to the Marcellus and Utica Shale oil and gas production in the U.S. Speakers at the Utica Summit III in Canton Tuesday addressed an audience of oil and gas business people about the status and future of the oil and gas industry in the U.S. The speakers all had one thing in common, the confidence that the Appalachian Valley sees nothing but brighter days ahead. “The rust belt is now the black belt of America.” Frederick Shepperd, international analyst and speaker at the event said. Speakers addressed the obstacles that the Ohio and Pennsylvania regions have in building up the shale industry, the potential that is in the region and what the global and American economy will look like in decades to come due to the shift in oil powers. Rep. Bob Gibbs, Rep. Tim Ryan and Rep. Jim Renacci, who represent different parts of Stark County, all spoke of their support for oil and natural gas production in the Utica region. Ryan spoke of the importance of the community and businesses jumping on the opportunity now after years of recession. “We’re not standing on a natural resource in my opinion, we are standing on jobs. These are opportunities for all those steel workers and auto workers who lost jobs over the generations to have the opportunity to figure out how to go to work,” he said. Ryan added that politicians across political party lines are supporting the oil and gas industry in Ohio. “We need to figure out, right now, today... how we can pull local investment into our region. We don’t get these opportunities very often,” he said. The discussion has moved from whether there is potential for
the U.S. to become a global power producer of oil and gas to when it will do so. In order for the U.S. to gain global influence in the natural gas and oil industry, speakers echoed some changes that need to occur. There first needs to be a development in the infrastructure, meaning more pipelines across the Midwest so that gas can be shipped once it is produced. Another need in the industry is firm, long-standing contracts with consuming companies and producers, according to Jonathan Winslow, senior vice president for development at Advanced Power. The last thing the Utica region needs to move forward is innovative solutions to industry problems. Winslow said that following a national recession, the economy is in a place where new investment needs to happen. “Opportunity capital is freed up, people are ready to put that capital to work,” he said. Winslow presented on the 1,100-megawatt, natural gas power plant that Advanced Power Services is building in Columbiana County. An announcement was made last week that the company will invest about $1 billion into the project. It is expected to be in operation by 2019. This power plant will be similar to the one Advanced Power is building in Carroll County now. Nicole Decker, an equity sector strategist, predicted that in the coming decades the world will depend on the U.S. for natural gas and oil production. “OPEC has really lost it’s clout. There is a new swing producer in town and that’s the United States,” she said. “Come 2016 we will become an exporter of natural gas.”
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Bruce McKay, managing director for federal affairs at Dominion, discussed some of his company’s business ventures regarding liquid natural gas production and exportation. Dominion recently signed a contract with companies from Japan and India that will last 20 years. The Maryland plant producing the gas products will have the capacity to produce 750 million cubic feet of natural gas per day. The investment in the Maryland facility is worth about $4 billion. More than 100,000 workers are part of the construction process right now and the construction will peak next year. Tom Gellrich, founder of Top Line Analytics, discussed the future of cracker plants in the Ohio area. Cracker plants are facilities that take a component of natural gas and process it to become ethylene. The facilities cost billions of dollars to build, one of the reasons Gellrich said it is taking so long for companies to start building them in the area. Even for large companies like Shell, an investment in a cracker plant could be five years of capital investment for the company all at one time, a big risk for company executives. Gellrich outlined some things that can be done to mitigate those challenges, the main one being to train workers and develop college curriculums for the programs needed to supply skilled workers to a cracker plant. The company most likely to establish a cracker plant in Ohio is Shell because it is a large global player, he said.
November 2015
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“By the end of 2020 I think we will probably have three or four moving ahead,” he said. According to Gellrich, the chemical industry sees the U.S. as the next major producer of gas and oil, ahead of the Middle East. “We are at a tipping point most people don’t see today,” he said. “The chemical industry sees it. ... We are at a crux of a revolution in North America due to our production of Natural gas.” The Utica region is prime real estate for gas and oil companies from around the globe. Jason Hamman, Monroe County’s economic development consultant and founder of Hamman Consulting Group, has worked with companies to find the best places to locate their business based on gas and oil development. He explained the reason Monroe County and other Ohio counties are appealing to companies. “We have the critical site selection factors available for the large scale opportunities at hand. Utility capacity, the strong local economic development support, available industrial sites and buildings, multimodal transportation, rail, barge and highway,” he said. What needs to be done for that growth to happen in other parts of the Appalachian valley, he said, is industrial companies being willing to take a risk. “Sometimes it takes a vision and people taking a risk to make good things happen.”
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Nov 4-5, 2015
Pritchard Laughlin Civic Center
T
he Ohio Oil and Gas Association’s premier fall event, the Ohio Oil and Gas Association Technical Conference and Oilfield Expo will be Nov. 4, 5 at the Pritchard Laughlin Civic Center in Cambridge. “We are excited to bring the OOGA Technial Conference and Oilfield Expo to Cambridge. Not only we will have a variety of presenters focusing on new and improved ways to operate in the oil and gas space, but there will also be the expo component which is great for attendees to check out equipment and services offered by our members,” said Shawn Bennett, OOGA executive vice president, With more than 80 indoor exhibitors scheduled for the conference, and an amazing outdoor display of large equipment, you don’t want to miss the chance to mingle with other oil and gas professionals, listen to speakers who offer their expertise on a variety of topics related to the industry, and be part of the oilfield celebration reception. Now is the time to go to OOGA.com and register online for the biggest and best oil and gas industry exhibits and technical presentations in addition to great camaraderie. Event Schedule • Tuesday, Nov. 3 — Exhibit set-up is 8 a.m. to 4 p.m. for all exhibitors in the main hall. Exhibitor registration is from 10 a.m. to 4 p.m. Registration fee for members is $150, for nonmembers, $250. • Wednesday, Nov. 4 — Registration open 7 a.m. to 5 p.m.; exhibit hall open 8 a.m. to 7 p.m.; technical conference from 9 a.m. to 4 p.m.; Oilfield celebration in the exhibit hall 4 to 7 p.m. • Thursday, Nov. 5 — Registration open 7 a.m. to noon; exhibit hall open 8 a.m. to 1 p.m.; technical conference 9:30 a.m. to 12:15 p.m.; exhibit hall dismantle 1 to 5 p.m. • Purchase advertising through OOGA Storefront, or with attendee registration. All artwork must be submitted by October 16, 2015. Please reference the Advertising Guidelines for additional artwork specifications. Feel free to contact Lyndsey Kleven at lyndsey@ooga. org with any questions. The Pritchard Laughlin Civic Center is at 7033 Glenn Highway, Cambridge. “There is no question, it’s tough times for Ohio’s oil and gas industry. Prices for crude oil and natural gas are at their lowest
levels in decades. The downturn in prices and drilling activity has caused many people to ask the questions: Is Ohio’s oil and gas industry still a major contributor to our local economy? How important in this industry to the average Ohioan? The answers are unequivocally yes and in fact more important now than ever. “The state of Ohio’s oil and gas industry matters to everyone because it’s a part of who we are, what we do and how we do it. Keeping our energy dollars and energy jobs at home is also positive for the economy and our natural security. Now more than ever, we need to continue to support local energy production, pipelines and processing/cracking facilities and refineries that will continue to benefit all Ohioans.” ~ Rhonda Reda, Executive Director, Ohio Oil and Gas Energy Education Program
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Ohio Edition
November 2015
Stonebridge Oilfield Service’s CEO speaks at water conference
ith oil prices remaining low, operators across the speak at this event. Biehl was to speak on modular storage unit Lower-48 all face a similar challenge: how to re- technology that will provide operational flexibility and exploraduce operational costs after so many budgetary tion options and help to avoid unnecessary expenditure on percuts? manent storage. Some of the most beneficial options that Biehl Showing extreme resilience, a multitude of initiatives aiming will present include inground pits and liners, above ground at bringing costs down has been implemented. Marcellus opera- tanks, leak detection, abatement technologies. tors have in fact shaved 14% off their well costs but water costs Other companies that are presenting speakers included continue to grow, reaching an average of $1.4 million per well. SandRidge Energy, ConocoPhillips, BOPCO, QEP Resources, If these figures are alarming, there is hope as recently, an oil- Broad Okay Energy, American Energy Partners, Cedar Strat, field operator in Colorado has reaped the benefits of upgrading Texas Standard Oil, Texas Alliance of Energy Producers, Texas its water management strategy, which led to tripling the use of Independent Producers and Royalty Owners’ Association, and recycled produced water to nearly reach 100%. It is expected US Geological Survey. that the operator will save about $2 per barrel of water, which After the conference, Biehl’s PowerPoint presentation can be would cut down 60% of water-related operating costs. In this viewed on the NEW Stonebridge website www.sbofs.com. The environment, the OPEX reducing opportunity of smart water company launched their new site on Oct. 13 of this year. management has never been more critical. “We are proud of Stonebridge’s past success and are now leOn foot of these pressing challenges, the 21st US Shale Plays veraging it to take the company global via our new website. We Produced Water Management Congress, coming to Houston for are also sharing our experience in water management strategies the very first time on October 28-29, was to scrutinize the latest at the Water Management Conference. This is the perfect opproduced water strategies deployed across the Lower-48. portunity to network with other operators and service providers Stonebridge Oilfield Service’s CEO, Eddy Biehl, was asked to to share best practices,” said Biehl.
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November 2015
39
THE UTOPIA EAST PIPELINE PROJECT: A HORSE OF A DIFFERENT COLOR By: David J. Wigham - Attorney
E
arly in my career practicing oil and gas law, I never would have imagined that Ohio would transform from a net importer of natural gas to a net exporter. Prior to the Utica Shale boom, gas would be piped from the south to Ohio, stored in underground formations and used for heat during winter months. Now, despite plummeting energy prices, methane (or dry gas) production alone has gone from less than 79 billion cubic feet of natural gas in 2011 to a record 485 billion cubic feet of production in 2014, without showing any signs of slowing. Combined with the massive increase in production of natural gas liquids and petroleum, Ohio is on track to becoming one of the largest energy producers in the country. In order to get this gas production to market, several major pipeline projects throughout Ohio are already in the planning, approval or construction process. This pipeline infrastructure creates many significant legal issues for landowners affected by these pipeline projects. These landowners are seeing pipelines seeking to cross their properties, with or without their consent, and are being confronted with cash settlement offers and proposed easement agreements that are confusing and inconsistent. The need for experienced oil and gas attorneys has never been greater. While every pipeline project poses significant challenges for the landowners involved, one project, the Utopia East Pipeline Project, is truly unique. Like many of its peers, the Utopia East Pipeline, as proposed by Kinder Morgan Cochin, LLC, will comprise a massive interstate project consisting of over 240 miles of interconnected pipeline impacting hundreds of Ohio landowners from Harrison County to Fulton County, Ohio. Unlike its peers, however, the Utopia East Pipeline will not be used to transport unrefined or dry natural gas but will instead transport refined natural gas liquids.
This seemingly subtle distinction has two major effects. To start, this means that the Federal Energy Regulatory Commission (or FERC), while having the power to regulate the tariffs charged by Kinder Morgan, will not have the power to approve or reject the Utopia East Pipeline Project. More importantly, it also means that landowners may be able to fight attempts by Kinder Morgan to acquire easements through the use of eminent domain power in a condemnation proceeding. In terms of negotiating power, landowners are at their weakest when a pipeline company can show that FERC has issued a certificate of public convenience and necessity for a pipeline project. While a pipeline company with such a certificate must still file an action to condemn and pay the resulting court ordered fair compensation for an easement taken from a landowner, the pipeline company’s ultimate success is virtually guaranteed. Even without this certificate, a pipeline company may still obtain easements by condemnation if the company proves it otherwise qualifies under Ohio law. However, the intended use of Utopia East Pipeline may not allow Kinder Morgan to obtain a FERC certificate, and it may also prevent Kinder Morgan from using condemnation proceedings under state law entirely. As a result, landowners represented by experienced oil and gas attorneys are not only more likely to obtain better terms when negotiating with pipeline operators without FERC approval, they are also more likely to succeed in convincing operators to move the pipeline route off of their property entirely. David J. Wigham is a second generation oil and gas attorney practicing in Wooster, Ohio, with nearly 25 years of industry experience. He is also the immediate past chair of the Natural Resources Committee of the Ohio State Bar Association. 4819-5924-9961, v. 3
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Gas & Oil
Ohio Edition
November 2015
Doylestown residents ask for support against pipeline
Bobby Warren - Dix Communications
W
OOSTER -- A Doylestown man asked the Wayne the NEXUS project. The line will come up from Kensington and County commissioners to oppose the NEXUS travel north to meet up with a pipeline in Michigan and eventupipeline project, just like they did the Rover pipe- ally make its way to Ontario, Canada. The 36-inch line will be line. capable of moving 1.5 billion cubic feet of natural gas a day and Jerry Lindeman addressed commissioners Scott Wiggam, Jim will not exceed a pressure of 1,440 pounds per square inch. Carmichael and Ann Obrecht during a time for public comObrecht told Lindeman the commissioners have met with ments at Wednesday's meeting. He said he felt as if those in the Doylestown's mayor and Chippewa's trustees regarding the Doylestown/Chippewa Township were not getting any support project. in their efforts to oppose the NEXUS project, which will cut County Administrator Patrick Herron told Lindeman the through the northeastern part of the township. NEXUS project is not as far along as Rover pipeline, but the The commissioners sent a letter to the Federal Energy Regu- commissioners will have an opportunity to express their conlatory Commission opposing the Rover pipeline because of agri- cerns at a later point. cultural and other concerns. They are worried about the pipeline "We will bring your concerns to FERC, just like with the maypassing through "agriculturally productive and environmentally or and Chippewa trustees," Wiggam said. sensitive land." They also are concerned about how it might hinder efforts to establish the infrastructure for a new public safety Reporter Bobby Warren can be reached at 330-287-1639 or communications system. bwarren@the-daily-record.com. He is @BobbyWarrenTDR on Spectra Energy and DTE Energy are the lead developers on Twitter.
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November 2015
41
Thorla McKee Oil Festival celebrates first well
M
oon Mullen and the Mudducks entertained the celebrates the first oil well in North America, drilled by Silas crowd at the second annual Thorla McKee Oil and Thorla and Robert McKee in 1814. The duo was reportedly Festival on a rainy, and muddy, Oct. 3 in Caldwell. originally searching for salt. Pictured are band members, l to r, Moon Mullen, Dan Settle, Chrissy Cryder/The Daily Jeffersonian/buyjeffphotos.com Jay Rake, and Henry Lowe. The Thorla McKee Oil Festival
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Gas & Oil
Ohio Edition
November 2015
Guernsey Co. commissioners oppose EnerGreen project Rick Stillion - Dix Communications
G
uernsey County commissioners on Oct. 14 signed a resolution opposing a proposed the location and operation of a waste water treatment facility by EnerGreen 360 at the Desmond Hall Industrial Park south of Cambridge. EnerGreen 360 removes waste from drilling sites in Ohio. “The board of commissioners feels that we (Guernsey County) are already absorbing more than our share of frack-related waste with multiple injection wells being located in our county, which the board previously went on record in opposition of,” said commissioners in a resolution unanimously approved by President Ernest “Skip” Gardener, Vice President David L. Wilson and Commissioner Dave Saft. “This untreated, radioactive material would be trucked into court community from the north, south and east, which means it would have to cross Wills Creek, which is the drinking water
source for the City of Cambridge, as well as the entire Guernsey County Water Department system.” The EnerGreen 360 headquarters is located in Columbus, according to its website. EnerGreen 360 is working with the Belmont County Port Authority, Belmont County commissioners, Village of Barnesville and Warren Township trustees regarding the construction of an industrial park at the intersection of Route 800 and Interstate 70 in Belmont County. Because EnerGreen 360 has dual agency oversight, the material is never classified as waste, according to its website. Instead, it is considered an extension of drilling operations and accompanied by an Ohio Department of Natural Resources/Ohio Environmental Protection Agency liability release. rstillion@daily-jeff.com
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November 2015
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Taking it to the classrooms Sophie Kruse - Dix Communications director with OOGEEP. “He went to the workshop, took it to the classroom and taught it. And now he has students pursing a career. It’s the perfect circle, it’s what we strive to create.” Whitaker said he’s seen students will all different aspirations take some thing from his course. “I’m seeing kids wanting to go into welding careers or college bound taking (my course) because they’re seeing themselves heading in that direction,” he said. “It’s making a connection from the classroom to the real world. I’m giving them opportunities, information on what path to take.”
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hanks to workshops offered through Ohio Oil and Gas Energy Education Program, more than 2,700 teachers have gained knowledge about the industry to take back to their classrooms. Craig Whitaker is a teacher at Perry High School where he teaches physical geography for juniors and seniors, as well as a duel credit course at Stark State University on the same topic. He attended the workshop last summer and has since implemented many aspects into his own lesson plans. “A lot of what [OOGEEP] teaches at the workshops was related to some of the Ohio core learning standards,” Whitaker said. “I’ve been able to take some of those projects they had and implemented them within my class. They tie in to what we’re seeing in the textbooks, going on in the news in the local region and actual events taking place in Northeast Ohio in the industry.” For one specific assignment, Whitaker has his students research and find where deposits were made and where Ohio may had been located on the planet at that time. Whitaker said he’s had many students who have had their interest in the industry sparked. “I have a couple of students at Kent, Akron and Marietta that have come through the geology program,” he said. “OOGEEP has tied it together for them. We’re seeing the industry explode in this region, kids are seeing the benefits and drawing an interest.” According to Jeanne Gogolski, teacher consultant with OOGEEP, the workshops are important also because it allows students to see career opportunities they otherwise might not have known about. “The teachers are the gatekeepers,” she said. “We make sure the teachers have good information they can share with students. OOGEEP has done a great job inviting teachers to hear about (the industry) and learn about it.” As an incentive, OOGEEP has given more than 250 scholarships since 2007 for students pursuing studies connected to the oil and gas industries. “Craig is our perfect scenario,”said Mark Bruce,communications
Gas & Oil
Ohio Edition
November 2015
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