February 2013 Ohio Gas & Oil Magazine by Gannett NEO

Dix Communications - Gas & Oil

www.OhioGO.com

February 2013 Edition

Ohio octobER 2012 • www.ohiogo.com

A FREE monthly PublicAtion

Table of Contents

◆ $2.2 billion to Ohio landowners ..............pg. 3 ◆ EQT focus on conversion of fleet and drilling rigs to natural gas .................pg. 4 ◆ Horizontal drilling, hydraulic fracturing advance shale development .....................pg. 6 ◆ Site work begins near Summerfield ........pg. 8 ◆ Treatment services for Chesapeake .......pg. 11 ◆ OMEGA has new home on the web ......pg. 12 ◆ Students attend iBELIEVE camp ..........pg. 15 ◆ Environmental Council’s second town hall meeting in Cambridge ....................pg. 16 ◆ Progress made at new field office ..........pg. 21 ◆ Be savvy when extra pipelines are requested ..........................................pg. 22 ◆ Miller’s Clothing and Shoes ..................pg. 23

◆ Accountability & keeping your word ....pg. 28 ◆ Why do I need to read my existing lease? .................................pg. 30 ◆ Seismic mapping for natural gas ...........pg. 33 ◆ Important issues in 2013 .......................pg. 34 ◆ Watershed negotiates non-development oil, gas lease for Seneca Lake ...............pg. 37 ◆ Pipeline instillation a major topic ..........pg. 38 ◆ US energy independence by 2013 .........pg. 42 ◆ Old company has new impact ...............pg. 44 ◆ Shale and You: A workshop for landowners .......................................pg. 46 ◆ Chesapeake Energy listed on Fortune’s 100 Best Co. to work for ......pg. 48

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

Rob Todor Executive Editor RTodor@dixcom.com

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

Cathryn Stanley Regional Editor CStanley@dixcom.com

Ray Booth Executive Editor RBooth@dixcom.com

Niki Wolfe Regional Editor NWolfe@dixcom.com

Ohio on ion icAti

PublicAt Publ hly thly mont mon A FREE A FREE

om go.co go.cm .ohio www.ohio 2013 • www

bER 2012 FEbRuARy octo

Well pads: of it all V EQT on NG icles) Veh (Natural Gas

urges Farm Bureaue Savvy’ ‘B

ON and $2.2 BILLIco unting answers ite may have OMEGA webs

Janice Wyatt National Major Accounts Sales Manager JWyatt@dixcom.com 330-541-9450 Peggy Murgatroyd SE Ohio Sales Barnesville and Newcomerstown, Ohio Offices PMurgatroyd@dixcom.com 740-425-1912 Barnesville 740-498-7117 Newcomerstown Jeff Kaplan NE Ohio Sales Alliance & Minerva, Ohio Office JKaplan@dixcom.com 330-821-1200 Kelsie Davis Layout Designer

Cover Photo: Laurie Huffman, Dix Communications Louisville City Manager Tom Ault stands before the site currently being leveled for construction of a new field office for Chesapeake Energy Corporation.

Gas & Oil

February 2013 Edition - Dix Communications

www.RCWSUPPLY.com www.YELLOWSLINGS.com rcwinc@rcwsupply.com

www.OhioGO.com

SHALEWEAR™

Work Wear Designed Specifically * *RCW I NDUSTRI AL SO UT I O S* * forL the Oil &N Gas Industry Y o u r H y d r a u l i c H o s eSe r v i c e Sp e c i a l i s t Your FR Solution * *RCW I N D U S TR I A L S O L U T I O NS * *

* *RCW I NDUSTRI ALFlame SO LUTI ONS** Resistant garments that meet S y n t h e t i c S l i n g s Wi r e R o p e C a i n NFPA & OSHA Standards Y o u r H y d r a u l i c H o s e S e r v i c e Sh p e c i a l i s t y n t h e t i c S l i n g s Wi r e R o p eU C h a i n U S T R I A L S O L U T I O N S * * * * R C W I N D S T R I A L S O L U T I ON S * * SHALEWEAR™ offers H y d a u l i c & n e u m a t i c R e p a i r sprotection, Hy d r aul i c&P ne u mr a t i c R e p a i r sP Y o u r H y d r a u l i c H o s e S e r v i c e S p e c i a l i s t durability and comfort. Ho s e S e r v i c e S p e c i a l i s t C y l i n d e r R a m sP u m p s S y n t h e t i c S l i n g s Wi r e p e -C hai n C y l i n d e r R a mR so P um p s I n d u s t r i a l F r i c t i o n Ma t e r i a l Mention this ad for Sy n t h e t i c S l i n g s Wi r e R o p e C h a i n Synthetic Slings -Wire Rope -L Chain H y d r a u l i c & P n e u m a t i c R e p a i r s * * R C W I N D U S T R I A L S O U T I O N S * * I n d u s t r i a l F r i c t i o n Ma t e r i a l 20% off your first i r e R o p e C h a i n Hydraulic & Pneumatic Repairs H y d r a u l i c & n u m a t i c R e p i r s apparel purchase* Y o ur H y d r a u l i c HP os ee Se r v i c e S p e c i al i s ta C y l i n d e r a m s P mps Cylinder -c Rams -Pumps -R Repairs -m New e um a t i c R e p a i r s S y n t h e t i S l i n g s Wi r e Rm o p e CP ha i n C y l i n d e r R a s u p su Industrial Friction Material -t Machining H y d r a u l i c & Pa ne um at i c R e p a i r s I n d u s t r i l F r i c i o n Ma e r i al I n d u s t r i a l F r i c t i o n Ma t e r i alt a ms P u m p s Cy l i nd e r-Ra ms-Pumps I nd us t r i alFr i c t i onMat e r i al t i o nMa t e r i a l shalewear.com

Yo urHy dr aul i cHos eSe r v i c eSpe c i al i s t

4 29Way ne s b ur gRDSE Cant o n, OH4 4 7 0 7 Ph.3 3 0 4 5 2 6 5 4 8 Fa x33 045 284 45

4 8 1 0So ut hwa yAv e nueSW Ca nt o n, OH4 4 7 0 6 Ph.3304785300 Fa x3 3 0 4 7 8 5 5 6 6

429Way ne s bur gRDSE Cant on, OH44707 Ph.3304526548 Fax3304528445

4810Sout hwayAv e nueSW Cant on,OH44706 Ph.3304785300 Fax3304785566

Locally Owned & Operated Since 1972

429 Waynesburg Rd. SE 4810 Southway Ave. SWhwayAvenueSW 4 2 9 Wa y ne s b u r g R D ERDS 4810Sout 4 2 9 Wa y n e s b uS r g E Canton, Oh 44707 4810Sout hwayAv e nueSW Canton, Oh 44707 Cant on,OH44707 Cant on,OH4 4706 C a n t o n , H 44707 C ant on,OH44706 42 9h Wa y n e s b u r g R D S EO 4810Sout hwayAv e n ue S W3 P . 3 3 0 4 5 2 6 5 4 8 P h . 3 0 4 7 8 5 3 0 0 Ph. 330-452-6548 Ph. 330-478-5300 Ca nt o n, OH4 4 7 0 7 C ant on,O H44706 h . 3 3 0 4 5 6548 P h.3304785300 FP a x 3 3 0 4 5 2 8 4 4 52 x330478556 6 h .P 3 3 0 4 5 2 6 5 4 8 Ph.3304785300 Fa rentwear.com Fax 330-452-8445 Fa xF 3 3 0 4 5 2 8 4 4 5 F a x 3 3 0 4 Fax 330-478-5566 a x 3 3 04 5 2 84 4 5 Fax3304785566 48 1 0S o u t h w a y A v e nueSW 78-5566 *Applies to direct sales only Cant on, OH44706 Ph.3304 7 8 5300 7944 Whipple Ave., N.W. North Canton, Ohio 44720 Fax3304 7 8 5566 10102286 10078142 1-800-686-5776 • 330-494-5776

CAMBRIDGE, OHIO

2327 Southgate Pkwy • Cambridge, OH (Close to I-70 and I-77 Interchange)

800.228.5150 or 740.435.3200 www.choicehotels.com

We Welcome the Oil and Gas Industry!

• Choice Gold Award Winner! • Complimentary “Your Morning Breakfast” • Indoor Pool, Hot Tub and Fitness Center • Free High Speed Internet • 32” Flat Screen HDTV’s in all rooms • Free Weekday Newspaper • Free Local Calls • Microwave and Refrigerator in all Rooms CHOICEprivileges®

YOUR

REWARDS PROGRAM

breakfast

morning

10106267

Dix Communications - Gas & Oil

www.OhioGO.com

February 2013 Edition

Chesapeake has paid $2.2 billion to

hesapeake Energy Northeastern Ohio. FolCorporation, the seclowing is some of the ond-largest producer high points of what the of natural gas, a Top 15 procompany has accomducer of oil and natural gas plished in the past two liquids, and the most active years. driller of new wells in the – Chesapeake currently operates 13 rigs in Ohio, and has U.S., has reached the second drilled a total of 134 wells in the play. As of the end of Septemanniversary of its drilling acber, it operated 32 producing wells, had 37 waiting on pipeline, tivity in Ohio. and 65 in various other stages of completion, according to a “We spudded the Buell Well recent, year-end report from Kenworthy. Laurie Huffman in Harrison County in Decem– Chesapeake’s local employment record has also made a Dix Communications ber of 2010, so we have just hit tremendous jump in the past two years. Chesapeake now emour second anniversary in Ohio,” ploys 550 people who live in the state of Ohio, up from 40 in said Pete Kenworthy, manager of community relations for January of 2011. The total annual salary for those employees the company’s Canton office. “During the time Chesapeake is more than $32 million. has been operating in Ohio, a little more than two years now, – Chesapeake has spent more than $58 million on road we have experienced tremendous growth that has benefitted improvement projects. And, at the end of the third quarter in both state and local economies as well as landowners in the 2012, the company had spent $3.3 billion in capital expendieastern part of Ohio. To date, we have spent more than $3 tures, which includes both leasehold and drilling activities. billion to acquire leasehold and drill – To acquire its industry-leading wells in Ohio. Our employment has 1.3 million acres, the company paid also grown to include more than 550 “I grew up in this part of Ohio. It is more than $2.2 billion to Ohio landOhioans.” exciting to see so many locals ben- owners. The company, which has head– Chesapeake has donated nearly quarters in Oklahoma City, focuses efit from the increased jobs, invest- $1 million to various projects and only on discovering and developing ment and personal wealth associat- organizations throughout its operatunconventional natural gas and oil ed with Utica Shale development.” ing area in Ohio. Notably, more than fields onshore in the U.S. It holds $100,000 has been given to multiple -Keith Fuller, Chesapeake leading positions in the Utica and United Way affiliates and $60,000 Marcellus unconventional gas shale was raised to build a Habitat for Huplays, which are primarily located in manity house. And, to date, Chesapeake employees have volunteered close to 800 hours of their time to various projects throughout the operating area. “I grew up in this part of Ohio. It is exciting to see so many locals benefit from the increased jobs, investment and personal wealth associated with Utica Shale development. And we, at Chesapeake, look forward to further expanding the benefits of this economic opportunity,” said Keith Fuller, senior director of government affairs at the Chesapeake office in Canton.

Gas & Oil

February 2013 Edition - Dix Communications

www.OhioGO.com

EQT’s focus on conversion of fleets and drilling rigs to natural gas

epresentatives of the EQT Corporation told the Guernsey Energy Coalition about the company’s focus on safety when members held their 19th meeting earlier this year in Cambridge. Jo Sexton, president of the Cambridge Area Chamber of Commerce, introduced representatives of EQT CorporaJudie Perkowski tion: Andrew Place, corporate Dix Communications director of energy and environmental policy; Jessica Carpenter, community advisor; and Nathaniel Manchin, manager of community relations. The company has been in the business for more than 120 years, but does not intend to rest on its laurels. Carpenter and Manchin presented a brief history of company, the Environmental Protection Agency’s new rules for gas and oil drilling, and its latest endeavor to promote an industry in its infancy in the United States. Carpenter said it was her job to “make sure we do things the right way. I do the legwork to get you to the right person to answer your questions.” “EQT has 10,000 acres here and one well operating in Spencer Township — for now,” said Manchin. “Our focus is on safety, natural gas fleet conversion, natural gas drilling rig conversion and “green completion” technology. “We are very excited about natural gas conversion,” he said. “The EQT Corp. not only talks the talk, we also walk the walk,” said Place, who explained to attendees how the company is in the forefront of converting its transportation fleet’s fuel source from diesel and regular gasoline to compressed natural gas. “Natural gas vehicles is not a new thing. NGVs have been around for some time in other parts of the world. It just makes sense. We know that natural gas is cheaper. The cost, equivalent to a gallon of gasoline, is about $1.77. It cost me about $13 to fill up my company vehicle. The average mileage for a tank of natural gas is 250 miles. “It’s cleaner. We know that emissions from carbon dioxide can be reduced 20 to 30 percent. Air emissions from diesel fuel, used primarily for trucks and school buses is eliminated, there is no odor. And, we have an abundance of domestic local fuel right in our own backyard. “We have opened our first natural gas filling station in Pittsburgh which supplies fuel for 60 of our company vehicles. It is very popular for fleets — ours and others. We are encouraging

Jo Sexton, president of the Cambridge Area Chamber of Commerce, seated second from l, gets ready to introduce representatives of EQT Corporation at the Guernsey Energy Coalition’s monthly meeting at the Southgate Hotel in Cambridge. Seated, l, Nathaniel Manchin, manager of community relations; Andrew Place, standing, corporate director of energy/environmental policy; Jessica Carpenter, r, community advisor.

other industries to convert their vehicles. We are scheduled to add 80 more vehicles this year and to replace up to 10 percent of our fleet each year to use compressed natural gas. “It is cheap, easy as filling up at a regular gas station, and eases environmental concerns.” Retrofitting a car to accommodate CNG is not cheap. Cost for an automobile is $2,000 to $3,000; double or triple that amount for trucks. In regards to “green completion,” EQT’s natural gas drilling rig conversion is a priority. Place said the EPA passed new rules in 2012 banning the practice of venting gas into the atmosphere without burning or flaring. The new process filters out fracking fluids, debris and sand. He said drillers will be required to convert their well operations by 2015. The environmental benefit of retrofitting is a 27 percent reduction in nitrogen oxide, 86 percent reduction in carbon monoxide and 6 percent reduction in particulate matter. The sale the captured natural gas, an otherwise “wasted product,” could save gas and oil companies millions of dollars. EQT has five gas wells in Green County that are already in compliance with the new policy. Continued on pg. 12

Dix Communications - Gas & Oil

www.OhioGO.com

February 2013 Edition

Affordable Housing

...located in the heart of the Utica Shale Region R E NTA AvAiL Ab LE LS NO

ONE-yEAR ! WN LEASE-TO -O buye for qualified

Move-in read

New York Financing a

vailable

for qualified b

uyers!

Pennsylvania Ohio Utica Shale Region

Quality Homes & Communities OHIO

PENNSYLVANIA

Colonial Heights

Sandy Valley Estates

Cranberry Village

Port Royal Village

Suburban Estates

(740) 314-5182

(330) 866-3873

(724) 776-3255

(724) 929-4224

(724) 834-0931

Lake Sherman Village

Southern Terrace

Forest Park Village

Somerset Estates

Sunny Acres

(330) 484-4767

(330) 542-3312

(724) 776-3198

(814) 443-3533

(814) 445-6071

Meadowood

Spreading Oaks Village

Pine Valley Estates

917 Two Ridge Road Wintersville, OH 43953

7227 Beth Avenue SW Navarre, OH 44662

9555 Struthers Road New Middletown, OH 44442

(330) 542-3312

11461 State Road 800 NE Magnolia, OH 44643

1229 SR 164 Columbiana, OH 44408

7140-29 Selby Road Athens, OH 45701

(740) 593-3952

100 Treesdale Drive Cranberry Twp., PA 16066

102 Holly Drive Cranberry Twp., PA 16066

485 Patterson Lane Belle Vernon, PA 15012

1873 Husband Road Somerset, PA 15501

1283 Sugar Hollow Road Apollo, PA 15613

(724) 478-4395

33 Maruca Drive Greensburg, PA 15601

272 Nicole Lane Somerset, PA 15501

Explore our communities online! UMH.com

UMH owns and operates modern manufacturedhome communities offering the highest-possible value per dollar for home ownership.

Licensed by the Ohio Department of Financial Institutions and the Pennsylvania Department of Banking. NMLS #200331 10101379

Gas & Oil

February 2013 Edition - Dix Communications

www.OhioGO.com

Horizontal drilling, hydraulic fracturing advance shale development

he process of drilling and completing a single horizontal oil or gas well takes about 70 to 100 days, after which the well can be in production for 20 to 40 ventional reservoirs that have been tapped for more than a cenyears. That typically includes tury. Knowing it was there did producers no good because the four to eight weeks to prepare oil and gas in the rock is unable to flow very far due to the low the site for drilling, four or five permeability formations. They could drill a traditional vertical weeks of rig work including well into the shale, but very little oil or gas would flow into the drilling, casing and cementNorm Shade well bore. ing, and moving all associPresident, Horizontal drilling involves drilling down vertically to a ated auxiliary equipment off desired depth and then making a 90 degree turn to continue ACI Services the well site before fracturing drilling laterally through the shale seam away from the vertioperations commence, and two to five days for the multi-stage fracturing operation. TechnoContinued on pg. 18 logical advances in horizontal drilling and hydraulic fracturing continue to advance Ground Surface the development of the oil and gas trapped within tight shale formations thousands of Conductor Casing 100’ ‐‐ feet underground. Once completed, the production site is about the size of a two-car garage, with the Aquifer rest of the site restored to its original condi1000’ ‐‐ Cement tion. Local impacts, such as noise, dust, and Surface Casing land disturbance, are largely confined to the initial phase of development. Drilling Mud But what really happens underground? Horizontal drilling and hydraulic fracturSalt Water Zone 2000’ ‐‐ ing (often called “fracking”) have been around for 50+ years. What pioneers of Intermediate Casing modern shale fracturing developed in the Barnett shale around Fort Worth, Texas in Cement the 1990s was the technique of combining these two technologies with innovative proppants – fine sand and ceramic beads – to “prop” the cracks open so that oil and gas could be released to the drill hole. It took a lot of trial and error to figure out the exact Production Casing combination of these techniques that would Conductor Tubing Kick‐off work, but the resulting developments have 7000’ ‐‐ Point revolutionized the U.S. oil and gas future. Geologists have always known that the shales and similar rock formations were the Production Zone sources for the oil and gas that percolated upward over millions of years into the conShale Fractures

Because the initial production rate is high, producers recover their investment faster.

Dix Communications - Gas & Oil

www.OhioGO.com

February 2013 Edition

Lost Your Minerals? Krugliak, Wilkins, Griffiths & Dougherty is centered in the heart of the Utica shale region, ensuring our clients aggressive local representation in oil and gas disputes. Our oil and gas practice group has more than 60 years of combined knowledge and experience in oil and gas law. We’ve successfully represented clients in recovering and preserving mineral interests in Ohio’s Utica Shale. Log onto our website at www.kwgd.com and click on our Oil and Gas tab for more information about Ohio’s Dormant Mineral Act. Our firm has been recognized as one of the 2013 Top Ranked Law firms in the United States. Visit www.kwgd.com to learn more about our firm.

KRUGLIAK, WILKINS, GRIFFITHS & DOUGHERTY CO., L.P.A. attorneys at law

KWGD.com

Contact any one of the attorneys below toll free at 877.876.9958 to discuss your case: William G. Williams | bwilliams@kwgd.com Nathan D. Vaughan | nvaughan@kwgd.com Gregory W. Watts | gwatts@kwgd.com

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

10106272

Gas & Oil

February 2013 Edition - Dix Communications

www.OhioGO.com

‘Cooling’ plant site work begins near Summerfield

xcavation work is reportedly taking place at the site of a proposed “wet” gas cooling plant in eastern Noble County. And a preliminary legal document to purchase the property has been filed in the county recorder’s office. Noble County commissioners heard from a project engineer with MarkWest Energy Partners recently, and received schematics of the proLisa Loos posed gas processing complex, fitDix Communications tingly named Seneca, which will be located near Summerfield. Aaron Heydinger, project engineer with MarkWest, presented Cryogenic Processing Plant drawings to Engineer Mark Eicher and commissioners. The plant will have two phases. There will be low truck traffic associated with the plant after construction. Eicher recently advised Beaver Excavating of Canton was moving earth. MarkWest last year announced plans to build two processing plants in Ohio to process the liquids rich gas coming from the Utica Shale development. A plant is being constructed in Cadiz in Harrison County. According to the Noble County Recorder’s Office, a Memorandum of Option between Reserve Coal Properties Co., Cannonsburg, Pa., and MarkWest Utica EMG LLC, Denver, Colo., was filed Nov. 13, 2012, regarding the property in Marion Township. Deadline for acting on that option, regarding 418 acres owned by Reserve Coal Properties, is Jan. 28, said Noble County Recorder Juanita Matheney. MarkWest Utica EMG and Colorado-based Antero Resources in November joined forces for the Noble County project. According to reports, MarkWest Utica will operate an interim refrigeration natural gas processing plant at the Seneca processing complex. It will be capable of handling up to 45 million cubic

feet per day. It is slated to be completed in the second quarter of 2013. That will be followed by the new Seneca I, a cryogenic gas processing facility capable of handling 200 million cubic feet per day. That is expected to be in operation by the third quarter 2013. The agreement also calls for Seneca II, a 200 million-cubicfeet-per-day cryogenic facility that could open in late 2013. Antero has leased about 60,000 acres in Ohio. It is running one drilling rig and plans to add a second rig next year. It has permits for five wells in Noble and Monroe counties. Antero is reportedly building the needed pipeline in Noble County. Before the completion of the fractionation complex in Harrison County and associated pipelines, Antero’s natural gas liquids processed in Noble County may be transported to either the company’s Houston, Pa., fractionation and marketing complex (the largest facility of its kind in the Marcellus shale) or its Siloam fractionator in South Shore, Ky., sources report.

49381 State Route 250, Harrisville, OH 43974

• Certified Mechanic • Offer Financing • We sell late model ATV, UTV, Dirt Bikes & Motorcycles FEBRUARY SPECIAL: Free ATV/UTV Service Inspection

740-546-4554

10110519

There is more to do than sail, but relaxing is what it’s all about

Ohio’s Best “Most Relaxing Weekend Getaway 2010”

www.carrollcountyohio.com 877-727-0103

10110260

Check our website for all Carroll County events! 10090897

Dix Communications - Gas & Oil

www.OhioGO.com

February 2013 Edition

MAC LTT

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

MAC LTT

VACUUM TRAILER

MAC LTT

LIQUID TANK TRAILERS MAC LTT 330-474-3795 office 1400 Fairchild, Ave. Kent, Ohio 44240 sales@macltt.com www.MACtrailer.com

MAC LTT

BOB TAIL TRUCK MOUNT 10109917

NOW LOOKING FOR NEW DEALERS – PLEASE CONTACT US

Gas & Oil

“I’ m not ready ye “I’m not ready yet.”

February 2013 Edition - Dix Communications

www.OhioGO.com

(What is it that you’re not ready for?

(What is it that you’re not ready for?)

Move to Copeland Oaks while still active, and you can enjoy ev Move to Copeland still active, and you can enjoy living, everything you do now,Oaks onlywhile more. With maintenance-free wonde you do friends, now, onlyand more. Withhealth maintenance-free living, available wonderfulif the nee quality care and services friends,now and quality health care and services available if the need arises, is the ideal time to secure your future. And peace of mind now is the ideal time to secure your future. And peace of mind. When you’re ready, call us at (800) 222-4640. When you’re ready, call us at (800) 222-4640.

Copeland Oaks welcomes people of all faiths.

10110095

At Copeland Oaks, we focus on your health and wellness so you can fully OhiO’s COmplete seniOr living D OhiO’s COmplete seniOr living DestinatiOn enjoy life. 80015th South 15th• Sebring, Street • Ohio Sebring, Ohio 44672 • www.copelando 800 South Street 44672 • www.copelandoaks.com Call us today at (800) 222-4640

Because You Need It Yesterday!

Full Hazardous Location Electrical Distributor

Supplying the Oil and Gas Industry For 35 years

“We speak the Language”

Call Today

800-356-7944

9200 Southgate Road • Cambridge • Ohio

10110069

Dix Communications - Gas & Oil

www.OhioGO.com

February 2013 Edition

Tervita to provide water treatment services for Chesapeake

ervita Corporation, a leading North American environmental and energy services company, has been awarded a contract to treat Chesapeake Energy’s produced and tophole drilling water in its Utica shale production in Ohio, to help Chesapeake Energy efficiently continue its Aqua Renew™ program by recycling water in its operations. “This is a great opportunity for us to partner with one of the major players in the Utica by recycling and reusing a resource as vital as water,” said Phil Vogel, president, Tervita U.S. “Tervita’s water treatment capabilities and technologies, paired with our integrated service offerings, are invaluable to our customers as they continue to put more effort into responsible and sustainable resource development.” Tervita will provide Chesapeake Energy with a water treatment facility, in Carroll County, with an option for mobile water treatment technology. Using its Hybrid Water Recycling Technology, Tervita can remove hydrocarbons and suspended solids from produced water, top-hole drilling water and well pad rain water. In addition to these services to Chesapeake Energy, Tervita can provide hardness removal, well site sludge and ponds treatment, if necessary. Tervita can also deploy its proprietary Mobile Processing System to treat flowback and produced water by removing un-

wanted suspended solids, so water can be reused. “Chesapeake Energy is pleased to select Tervita as our Utica water treatment vendor,” said Tim Dugan, Chesapeake Energy district manager, Utica. “Tervita’s treatment process will provide clean water and decrease our process costs which will increase our efficiency with reusing water.” Tervita Dioxi-TreatTM and Tervita Dioxi-GreenTM (Cl02) will be available to Chesapeake as a cost-effective solution to a variety of challenges encountered with oilfield waters that require treatment prior to reuse. In addition to water treatment technologies, Tervita offers a variety of environmental solutions in the Utica and Marcellus shale play, including engineered landfills, closed-loop systems, drilling fluids services and frac tank rentals. Tervita is a leading North American environmental and energy services company. Tervita maintains a strategically located network of more than 95 state-of-the-art waste management facilities and a fleet of specialized equipment and assets to help customers address production and operational waste challenges. Its highly effective, convenient and environmentally sound solutions help minimize environmental impact and maximize returns.

J&D Automotive and Transmissions

ENGINEERING & AUTOMATION

YOUR COMPLETE AUTOMOTIVE HEADQUARTERS

One Mile from Interstate 70 on East Side of Zanesville on Richards Road Across from Vocational School.

M-F 8-5pm Foreign - Domestic Commercial Reputation Built On Quality. We can Handle Any Transmission! Treating Customers Right Since 1984

357 Richards Rd Zanesville, OH 740-454-8013 www.janddtrans.com

10106659

Complete Auto and Truck Service Center Seven Service Bays. Most Repairs Done in One Day! Parts and Labor For 12 Months or 12,000 Miles Warranty

• • • • • • • • • •

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

Experts in Natural Gas Basic Systems, Inc. (740) 432-3001 (office) www.basic-systems.com 10107150

Gas & Oil

February 2013 Edition - Dix Communications

New & Used New

OMEGA has new home on the web

2013 Mack Granite

w/Dickirson Rigup

500 HP, 18SP GU813

196,500

$ 2007 Mack Vision

2007 Mack Granite

CXN613

2007 Mack Vision

CTP713

2005 Mack Granite

CXN613

www.OhioGO.com

CV713

new website for the Ohio Mid-Eastern Governments Association (OMEGA) is now online. The new site is designed to provide up-to-date information on federal and state economic and community development grant and loan programs available in the OMEGA region. The website also offers a data center that provides indepth statistics for the following counties: Belmont, Carroll, Columbiana, Coshocton, Guernsey, Harrison, Holmes, Jefferson, Muskingum, and Tuscarawas. Links to other federal and state agencies are also listed. Meeting dates and featured speaker information will be updated on a regular basis. The new site was launched in time to post an economic development report for a 30-day comment period. As an economic development agency certified by the U.S. Department of Commerce, Economic Development Administration (EDA), OMEGA is required to post all Comprehensive Economic Development Strategy (CEDS) reports for a period of 30 days for comment by the public. CEDS reports are designed to bring together the public and private sectors in the creation of an economic development roadmap to diversify and strengthen regional economies. A new report is produced every three years with an update required each of the two years between new reports. The public comment period will end on Tuesday, Feb. 19, 2013. The final report will be posted on the website and remain until the next required update. The report is also available at the OMEGA office weekdays from 8 a.m. – 4 p.m. CD copies are available upon request. The OMEGA office is located at 326 Highland Avenue in Cambridge. For more information, contact Cindi Kerschbaumer at (740) 439-4471, ext. 206 or cindik@omegadistrict.org. “EQT’s Focus” from pg. 4

R & R Truck Sales 1650 E. Waterloo Rd., Akron 330-794-9304 www.rrtrucksales.net

Daniel Ralich Vice President

10102944

330-352-4739

When asked about the company’s future plans in Guernsey County, Place said “The Utica Play is a game changer ... We are committed to the region in substantial numbers. We are pretty sure how much natural gas is there and what’s going to be produced. That knowledge is what pays for the operation.” EQT does not own rigs, wells, water trucks, drilling equipment or anything else that it takes to operate a site. The company contracts for services for everything from drilling and transporting natural gas to “cracker” plants, where the gas is separated into other liquids. EQT Corporation is one of the largest and oldest natural gas producers in the Appalachian Basin operating in Pennsylvania, Virginia, West Virginia, Kentucky, and now Ohio, with 14,000 productive wells and 5.2 trillion cubic feet of total natural gas reserves, and growing.

Dix Communications - Gas & Oil

www.OhioGO.com

February 2013 Edition

A W.D. Larson Company

Allstate Peterbilt of New Philadelphia, Ohio “If You Can’t Come To Us, We’ll Come To You”!!! 24 Hour/7 Days A Week/ 365 Days Road Service Available On Board Computer Diagnostics For Cat, Cummins, and Peterbilt MX and PX Engines

TOWING SERVICE AVAILABLE Full Service All Makes Body Shop

We Have Oil Field Trucks In Stock For Sales Call Bob Boughman At The Office Or Cell: 330-243-6386 327 Stonecreek Rd. N.W., New Philadelphia, OH 44663

Phone: 330-339-5555 • 800-362-6680 Fax: 330-339-6698 10109471

Gas & Oil

February 2013 Edition - Dix Communications

Growing for over 65 years!

www.OhioGO.com

Buy Direct from the Grower and Save $

330-866-5521 or Toll Free 800-521-7328 10110158

Commercial or Residential Planting Jobs, Wholesale Christmas trees and B&B Evergreens, We are the Evergreen Experts!

12 Months of Privacy for your sites www.smithevergreen.com smithevergreen@neo.rr.com 10076042

At your location or ours, we’ve got you covered. AultWorks Occupational Medicine specializes in treating work-related injuries and illnesses. We are certified by the Ohio Bureau of Workers’ Compensation. Our services include: • Injury Care • 24-Hour Drug and Alcohol Screenings • DOT and FAA Physicals • Pre-placement Physicals • Random Management Programs • Mobile Medical Unit • Travel Medicine Program... and more! www.aultman.org Canton 330-491-9675

Alliance 330-823-8864

Orrville 330-684-4767

Berlin 330-893-1318

Carrollton 330-627-0091 10065808

www.OhioGO.com

Dix Communications - Gas & Oil

February 2013 Edition

Students attend iBELIEVE Camp

ive Malvern High School sophomore students attended a leadership camp during the summer by the Ohio Association of Student Councils and sponsored by the iBELIEVE Foundation at Wright State University. Participating students included Savanna Simpson, Delaney Vahila, Zachary Kerns, Malcolm Simmons, and Joshua Browning. This was a five-day, four-night camp where students acquired and fostered leadership skills for their futures. The goal of iBELIEVE 2012 is to provide scholarships to highschool and middle-school Appalachian students. Malvern High School scholarships for their five students were provided by the iBELIEVE Foundation from Chesapeake Energy. The objectives of iBELIEVE are: • Provide financial sponsorships for Appalachian teens to get important soft-skill development with the focus on leadership, communication, and problem solving skills; • Implement a strong foundation and leadership core in high schools, middle schools, and Appalachian communities with the goal of 10-percent student body participation in four years; • Increase collegiate attendance and retention for Appalachian and first-generation students; • Focus on raising the retention of collegiate graduates and young professionals in Appalachian communities; and

• Build peer mentorship with successful student leaders from non-Appalachian counties.

Dix Communications Photo/ Thomas Clapper Malvern sophmores (from left) Delaney Vahila, Zach Kerns, Josh Browning, Malcolm Simmons, and Savanna Simpson attended a leadership camp by the Ohio Association of Student Councils and sponsored by the iBELIEVE Foundation.

10100778

Gas & Oil

February 2013 Edition - Dix Communications

www.OhioGO.com

Environmental Council’s second town hall meeting in Cambridge

resenting a forum for the public to question city and county officials about their role in the developing shale gas and oil industry, representatives of the Columbus-based Ohio Environmental Council welcomed approximately 30 people to the event at the Cambridge Area YMCA Wednesday evening. Jack Shaner, deputy director Judie Perkowski and senior director of OEC LegDix Communications islative and Public Affairs, and Melanie Houston, director of OEC Water Policy and Environmental Health, also shared information about how to research and comment on state laws, rules and regulations in reference to the gas and oil industry. Panel members were Jeff Deeks, fire chief for the Cambridge Fire Department, who answered questions from the audience about fire prevention and safety at well sites; and Del George, Guernsey County engineer, answered questions about

drilling companies’ responsibilities regarding road use in Guernsey County. Deeks said that the majority of firefighters have received training regarding gas and oil fires of all kinds and that the two-day event was paid for by the Ohio Oil and Gas Energy Education Program. “The fire department doesn’t have all the fancy equipment, but we do our best. We have also joined the Buckeye STEPS Program,” said Deeks. “Public safety is our number one concern.” The Buckeye STEPS (Service, Transmission, Exploration and Production Safety) program promotes safety, health and environmental improvement in the exploration and production of oil and Continued on pg. 18

THE GREEN GEO TEX TILES & THE GREY GEO TEX TILES ®

10107024

www.boomenviro.com

1(800)-770-BOOM 1 Coffin Ave. New Bedford, MA 02746

Dix Communications - Gas & Oil

www.OhioGO.com

February 2013 Edition

of Canton 330-456-6800

LEPPO RENTS

330-633-3999 176 West Avenue, Tallmadge, OH

Bobcat of Canton

LEPPO RENTS

330-456-6800

Bobcat of Cleveland

216-663-9380

Bobcat of Cleveland-West

1534 Shepler Church Ave. SW, Canton, OH

5095 Taylor Drive, Bedford Hts., OH

LEPPO RENTS

440-327-0515

Bobcat of Wooster

330-264-6474

Bobcat of Youngstown

32200 Lorain Road, North Ridgeville, OH

480 West Henry Street, Wooster, OH

330 North Meridian Road, Youngstown, OH

330-799-2555

10109933

LEPPO RENTS

Bobcat of Akron

Gas & Oil

February 2013 Edition - Dix Communications

www.OhioGO.com

“HorizonTal drilling” from pg. 6 cal well bore. This technique allows the production company to “mine” a seam of oil or gas bearing shale by drilling laterals that penetrate the oil or gas bearing shale layer horizontally. Lateral lengths can range from 1000 ft. to more than 10,000 ft. The long lateral creates a large surface area in contact with the rock and the potential for a lot more oil or gas flowing into the well bore. Typically, steel pipe known as surface casing is cemented into place at the uppermost portion of a well for the explicit purpose of protecting the groundwater. The depth of the surface casing is determined based on groundwater protection and other factors. As the well is drilled deeper, additional casing is installed to isolate the formation(s) from which oil or natural gas is to be produced, which further protects groundwater from the producing formations in the well. Casing and cementing are critical parts of the well construction that not only protect any water zones, but are also important to successful oil or natural gas production from hydrocarbon bearing zones. After the well is drilled and completed, the lateral section of the well pipe is perforated. Then a fluid mixture that is about 80 percent water, 19.5 percent sand and 0.5 percent various lubricants and chemicals, is pumped down the well at very high pressure. This so called hydraulic fracturing process is a high- pressure stimulation process used to create small cracks in the tight shale rock that allows fluids and natural gas trapped in the formation to flow more easily into the well pipe and up to

the surface. When the pressure is released, the fractures attempt to close, but the sand contained in the fluid keeps the fractures open, making an easy path for oil and gas to flow into the well. Fracking opens up hundreds of little conduits for oil and gas to flow through (or actually around) the rock to get to the well bore deep underground. The proppants hold those little conduits open so they don’t close up right away. Hydraulic fracturing and horizontal drilling have considerably increased the efficiency of oil and gas recovery for three reasons. First, there is lower geological risk - because producers know where the shale is, there are no dry holes. Second, many laterals can be drilled in several directions from one drilling pad. The same horizontal drilling rig can be moved slightly to extend a new lateral instead of packing up and moving to a new location to drill a new vertical well. And third, there are high initial production rates. Relative to vertical wells, shale wells are expensive to develop because of the high cost of long laterals and fracturing treatments. However, as a result of the efficiencies and greater production volumes described above, the per-unit cost of production is lower. In addition, because the initial production rate is high, producers recover their investment faster. Pictures are worth a thousand words, and an excellent video of the process can be found at http://marcelluscoalition. org/2009/01/drilling-process-video/.

“EnvironmEnTals council’s sEcond mEETing” from pg. 16

gas. The organization meets monthly at the Willett Pratt Training Center. Answering questions about chemicals used in the hydraulic fracturing process, Deeks said Senate Bill 315 requires a MSDS, a material safety data sheet listing all chemicals used at a drill site, and the sheet must be posted at the site. In regards to how the department would handle an emergency at a drill site, he said the department works with several agencies and other fire departments depending on the situation. Depending on the severity of a gas and oil fire, “the Federal Emergency Management Administration would be involved.” Del George explained how gas and oil companies are legally bound to maintain and repair damage to county and township roads and bridges that provide access to shale development areas. “It all comes down to a matter of safety,” said George. “If the road is not safe, I will close it down. We have a number of Road Use Management Agreements. We recommend the driller drive the roads with us to view the road(s) they plan to use for access to their drill site, to actually see where problems could arise ... All drilling companies, which include companies who provide a service to the drilling company, for example, someone who provides water, must also sign a RUMA.”

Properties Available Apartments, Homes Warehouse Space Available Short or Long Term Leasing Fully Furnished & All Inclusive Rates

Call PatMac. 330-340-8109 Patmac@tusco.net 10095469

Losing Sleep Over Taxes? Let Us Help You Rest Easy! Bookkeeping: Accounts payable & accounts receivable, data entry Payroll: Quarterly taxes, ACH services, W2’s, 1099’s Tax Preparation: Individual, business, farm tax, direct deposit with e-file Quick Books: Set-up, installation, at your facility or our office 61114 Southgate Rd. Cambridge, OH

740-432-2300

10106280

Dix Communications - Gas & Oil

www.OhioGO.com

February 2013 Edition

J&M Carpentry LTD

Agricultural “Generations of Amish  Residential craftwork with modern,  Commercial professional site management”  Any Size  Custom  Pole Barns  Garages  Barns  Stables  Riding Arenas  Horse Barns  Sheds  330.231.0125 Outbuildings  Decks  Metal Roofing 

e Fre Estimates “The quality you want for your project”

online: www.jmcarpentrylimited.com Fredericksburg, Ohio 44627

10099926

Gas & Oil

February 2013 Edition - Dix Communications

www.OhioGO.com

The Colonel Taylor Inn BED & BREAKFAST

TRUCK SALES, INC.

New & Used Truck Sales - Leasing Service - Parts - Body Work Not just highway trucks! We also service RV’s, school busses, fire trucks, all types of trailers and specialty vehicles.

Canton, OH

Young Freightliner & Isuzu

Sales, Parts & Service

1-800-362-0495

Young Volvo

Sales, Leasing, Parts & Service

1-800-308-0838

JayMac Body & Frame Body work, alignment & four large paint booths

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

1-866-601-7654

Young Trailer Repair Trailer repair and rehabilitation

330-479-8992

10091068

633 UPLAND ROAD, CAMBRIDGE, OHIO 43725 740-432-7802 www.coltaylorinnbb.com OWNER: CAROL COATS-GOFF

“We Always Have Time For You”

REAL ESTATE

Lori Frank, Broker

F TEAS F SPECIAL GROUP EVENTS

www.carolgoffrealestate.com

10082094

www.youngtrucks.com

F WEDDINGS F LUNCHEONS

1620 E. Wheeling Ave., Cambridge 439-1111 28 E. Main, New Concord 826-7557 Zanesville • (740) 454-6777 Coshocton • (740) 622-7653 Dennison • (740) 229-7231 New Lexington • (740) 343-4161 Millersburg • (330) 674-2225

For All Your Real Estate Needs,We Have An Office Near You! 28 E. Main St. New Concord, OH 43762 740-826-7557 431 Center St. Dennison, OH 44621 330-229-7231

1620 E. Wheeling Cambridge, OH 43725 740-439-1111

2465 Panther Dr. Suite B New Lexington, OH 43764 740-343-4161

1108 Maple Ave. Zanesville, OH 43701 740-454-6777

Millersburg, OH 330-674-2777

533 Main St. Coshocton, OH 43812 740-622-7653

Carol Goff & assoCiates operates 7 offiCes CoverinG 10+ Counties in southeastern ohio. We are a full service Real Estate company handling both buyers and sellers of residential, commercial, farms, acreage and investment properties. We also offer auctioneering services and appraisals.

Visit us at www.carolgoffrealestate.com

10110228

Dix Communications - Gas & Oil

www.OhioGO.com

February 2013 Edition

Progress made at new Chesapeake field office in Louisville

n 2012, the Chesapeake Oil Co. purchased 291 acres of land comprising the Beck Industrial Park, an area the city of Louisville had developed with the hope of bringing more industry to the city. Chesapeake has stated the plans are to construct facilities for its Utica shale operations on the site, which is located Laurie Huffman between Beck Avenue and Dix Communications State Route 44, south of Main Street. The facility will house at least three buildings, according to Keith Fuller, Chesapeake’s senior director of government affairs. An office building at least five stories high will be constructed, along with a shop where equipment can be worked on and another building to house Chesapeake’s affiliate oil field services companies. Thus far, a road leading into the industrial park off State Route 44 has been constructed as well as a bridge to traverse

over the portion of Nimishillen Creek that runs across the property near the entrance from Route 44. The city of Louisville had received a grant from Ohio Department of Transportation to pay for 70 percent of the $3.5 million road and bridge Continued on pg. 32

Louisville City Manager Tom Ault stands before a new road and bridge recently constructed to connect the new Chesapeake Energy Corporation field office to State Route 44.

Car, Medium Truck, Heavy Duty Truck & Trailer Repair/Maintenance Service Tire Sales. Diagnostics. Hydraulics D.O.T. Inspections. Suspension Work Welding and Custom Fabrication Mobile Services, Fleet/Oilfield Onsite

"One Call can handle it all, at PROMARK” 10109422

Gas & Oil

February 2013 Edition - Dix Communications

www.OhioGO.com

Be savvy when extra pipelines are requested

ow much extra should a landowner charge and should a separate lease be created each time new pipe is installed leading to or from an oil and gas well? These are burning questions considering the oil and gas companies will soon need to transport their products for marketing. These questions were answered and other helpful information was Laurie Huffman given during a Gas and Oil talk reDix Communications cently held in New Philadelphia that was organized by the Ohio Farm Bureau. Speakers included Dale Arnold, director of energy, utility, and local government policy for the OFB, and Joe BachDale Arnold, director of energy, utility, and local government policy man, Tuscarawas County engineer. for the Ohio Farm Bureau, talks to a member of the audience According to Arnold, factors to consider when establishfollowing a recent discussion held in New Philadelphia addressing ing payment for additional pipeline to be installed include the requests for additional pipeline by gas and oil companies. length of the pipe, and the width of the pipe, including total acreage to be effected, either temporarily or permanently, plus rary pipes laying across the top of the ground. And, he said, the impact this installation will have on future use of the land. temporary pipes can be in place for decades. Bachman also A separate lease should also be created for each additional pointed out Ohio EPA rules apply when pipes are running pipeline. For those who are in a drilling unit or pool, find out across streams, and phone numbers are required to be posted where the pipeline will be placed. The pipe may go across on the pipelines, in case of emergency, which should also be some people’s property and not others. included in the lease. “Talk to your county auditor, then get a market value price, “Easements last forever and a day. So do temporary water in dollars per acre, from a realtor,” said Arnold. “You must also pipes. So, these should be handled on a separate lease,” said consider loss of value, such as loss of timber production, loss Arnold. “Intra-state pipeline will be of nursery stock, loss of crop producput in by national gas and oil comtion and replacement costs for feedpanies and you will see a tremen“Take your time. Negotiate on ing livestock, and loss due to comdous amount of development, all to paction of the land, plus any costs good faith. Consider the use of be either installed or updated. Havto correct it. The value of guardianthe property, and remember — ing access to good legal counsel is ship (landowners watching over the key. Also, when ditches are created pipeline) should also be factored in, everything is negotiable.” to install larger pipes, they are in a along with the cost of personal attor-Dale Arnold “v” shape and are not just a slit in the ney fees, consultants, surveys, filing ground. That’s why the companies fees, etc. Also, talk to your banker need an 80-foot right-of-way. Your and ask if it will change the value of land will be changed. So, legal counsel will help protect you.” your land to have pipe running through your property.” In conclusion, Arnold advised, “Take your time. Negotiate Plug all this information into a spreadsheet to come up with on good faith. Consider the use of the property, and remember a cost, and divide that by the number of feet to get a dollar — everything is negotiable.” amount per foot. “The cost will probably be different from the dollar-per-foot price originally thrown out at you,” Arnold assured. Bachman noted Tuscarawas County requires pipes to be placed 60 inches deep, and this should be put in the lease. In some cases, Arnold said, he has even seen “so-called” tempo-

Dix Communications - Gas & Oil

www.OhioGO.com

February 2013 Edition

Miller’s Clothing and Shoes:

Offering anything from work boots to suits

or approximately 35 years, Miller’s Clothing and Shoes in New Philadelphia has been supplying men with anything from suits to work boots. Now, they are adding flame and fire resistant apparel to that listing. The addition of “FR clothing” — as it is commonly referred to — is a result of the influx of the oil and gas industry workers comNiki Wolfe ing to the area, said owner Marty Newcomerstown news Miller. The store carries flame resistant clothing from Wrangler and Carhart, as high visibility items. They also specialize in work boots that are needed for oil and gas field sites. Miller predicts that “this is just the beginning” of the oil and gas industry boosting the local economy. He knows one family that is living in Carrollton, that shops at Miller’s, and is in the oil and gas industry. He said they moved here from Louisiana and expects to be here

Marty Miller of Miller’s Clothing and Shoes in New Philadelphia holds up one of the new high visibility flame resistant jackets that he now carries in his store.

some eight to ten years for the oil and gas industry. Even though Miller’s Clothing and Shoes specializes in men’s clothing, they also offer and can order in flame resistant clothing for women. Continued on next pg.

Your BIGGEST Little Tank Shops

BCS

Bulk Carriers Service

BCSG

Bulk Carriers Service

2743 Brightwood Rd. S.E. • New Philadelphia, OH 44663-6773 Phone: 330-339-3333 Fax : 330-339-6606 Toll Free: 877-367-8265

2296 Larson Rd SE • Gnadenhutten, Ohio 44629 Phone: 740-254-4445 Fax: 740-254-4446

JIM EVERETT / DOUG MILBURN

TRAVIS SWAUGER / ED DUGAN

10110221

Gas & Oil

February 2013 Edition - Dix Communications

www.OhioGO.com

“millErs cloTHing and sHoEs” from pg. 23 “If I don’t have it, I will do my best to get it,” he said. Miller is no stranger to merchandising or to Newcomerstown for that matter. He began stocking shelves at a Newcomerstown clothing store back when he was only 12 years old. He said his roots are in southern Tuscarawas County by attending school in Newcomerstown. He can also remember getting his first haircut at Poland’s Barber Shop in the village and visiting the dentist, Dr. Murray, in Newcomerstown. But, Miller is a true people-person and does his best to provide what the customer wants. “I try to take good care of them (the customer) to have what they need and what they want,” Miller said about his customers. Miller’s Clothing and Shoes also offers alterations and embroidery. Miller said he also has police, fire and deputy sheriff uniforms, and tries to purchase as much USA-made items as possible. Miller’s Clothing and Shoes is open Monday, Tuesday, Wednesday and Saturday from 9:30 a.m. to 5:30 p.m.; Thursday and Friday from 9:30 a.m. to 8 p.m.; and closed Sunday. They may be reached by calling 330-364-2688. Miller’s Clothing and Shoes is located at 159 W. High Ave., New Philadelphia.

• Complete Oil Field Services • Frac Support • Completion support • General Excavation • Spill Trailer & Shower Trailer Rental

Wade Pol, President 4188 S.R. 14 Ravenna, OH 44266

Office: Fax: Cell:

330-325-7177 330-325-0263 330-697-1783

10100703

Dix Communications - Gas & Oil

www.OhioGO.com

February 2013 Edition

Blanchard Grinding up to 42” high 96 diameter 1020, A36, 1045, 4140, T-1, C1119, C1144 CNC Milling 40 x 70 CNC Flame Cutting Heat Treating and Annealing

SimcoxGrinding.com

800-321-9107

Fax: 800-858-0329 10109930

CRUDE AWAKENING Representing Owners of Mineral Interests and Land Owners • Lease Review, Negotiations and Counsel • Dormant Mineral Act • Lease Forfeiture and Held by Production Issues • Estate Planning • Litigation • Business Transactions – Celebrating 60 Years in the Practice of Law –

Tribbie, Scott, Plummer & Padden w w w. t s p pl aw.c om

1 3 9 West E ighth S t., C ambr idge •

740-432-6322

10110072

Gas & Oil

February 2013 Edition - Dix Communications

www.OhioGO.com

KISS

STEEL

KNOWLTON INDUSTRIAL STEEL SUPPLY ALL METALS

LRC Lance Repair Company

"Your Equipment Repair Specialist” Serving the Trucking and Heavy Equipment Industries By Providing Shop, Field, and On Site Lube Services

Aluminum Brass Copper Galvinized Carbon Stainless All Grades Hot & Cold 1018 1045 4140 4150 A-36 Plate A-588 Cor-ten A-514T-1 A.R. 400

Huge Assortment of ALL SHAPES Bolts & Nuts Angles All Grades & Stainless Beams Channels WE HAVE ON PREMISE Culverts C.N.C. Plasma Machine D.O.M. Tubes Certified Welders Race Car Tubes Sheer, Brake & Iron Worker Expanded Metals Flexibend Folder Flats Sheet ASK ABOUT Plate Squares FREE DELIVERY Hexes Sq. & Rec. Tubes MON-FRI 8-5:30 Rounds SAT 8-5 All Thread Rebar Concrete Wire

(330)880-0361

300 Zane Grey Norwich/Zanesville

www.lancerepaircompany.com

visit us on the web www.knowltonindistrialsteel.com Local 740-872-6100 • Toll Free 888-280-9370 Fax 740-872-9999

10188 Forty Corners Road Massillon, Ohio 44647 10110853

10107074

At Kenworth of Canton, we specialize in the repair and maintenance of medium and heavy duty trucks. Our Service department has over 40 years of combined mechanical certified technicians, along with 10 service bays.

Our parts department has a large inventory of class 7 & 8 truck parts to meet your needs. We also offer a free delivery service to your location.

Give Kenworth of Canton a call and let us help keep your fleet on the road!

330-456-4496

Toll Free: 888-844-4422

www.hissonggroup.com 10111057

www.OhioGO.com

Dix Communications - Gas & Oil

February 2013 Edition

Quaker City (740) 679-2141 Zanesville (740) 455-2141 St. Clairsville (740) 695-2141

10109003 10025917

Gas & Oil

February 2013 Edition - Dix Communications

www.OhioGO.com

AccountAbility and keeping your word

had rolled up the payment for pipeline with the damages to paid $16.50 a rod ($1 a be paid when the line was finished. One payment for all. I exfoot) for a pipeline right plained further that though the fee seemed reasonable, the idea of way in the mid-eighties. of combining everything into one payment was not. The price was being necessiAs your favorite tax accountant will tell you, there is tax to tated by a competing oil and pay on all ordinary farm income. And getting paid on a right gas company paying $25 a of way is considered that. However, damages are not. They are rod. You would have thought the reparation costs that you have incurred as a result of letting I robbed the national treasury someone do business on your property. Figure loss of income when my boss found out about from crops such as corn, winter wheat, timber, etc. And, bethis exorbitant amount. I had lieve it or not, this isn’t a one year problem. Once the ground to explain myself and was reDon Gadd is disturbed, it may take many years for it to come back to the lieved I only received a tongue Landman necessary place in order to grow crops again. You may want to lashing for being so cavalier have language in fertile fields to separate the top soil from the with the finite resources of the company. sub soil and make sure it is laid back appropriately. A lesson I never forgot. But, in some respects, a good lesThe second flag I pointed out with his right of way was the son to learn as a young man. Accountability and keeping your half-sentence allowing the company to place “additional” lines word became much more important than just seeing how much alongside of and through the property “at the same cost.” What money you could throw at a problem to make it go away. did that mean? It didn’t say for “additional” payment of X I was reminded of my first time of amount per foot which is common in paying for pipeline by the foot when right of ways. The decision he had I ran into a Harrison County resident “Accountability and keeping your to make was how many lines did he in Venice, Florida. After some conword became much more imporwant going through his property and versation about oil and gas, he asked if it was going to be more than one, me to review his right of way form tant than just seeing how much how much was he going to be paid? he had received. His property was money you could throw at a probI had told him earlier that to satisfy along State Route 800 and the lake. lem to make it go away. ” his mind he should ask the company He didn’t necessarily want a pipeline to survey or set out the route of the taking up his entire prime frontage. -Don Gadd line and have the company make a I knew the area and could see his map of same to be recorded with the point. But to be fair to those around right of way (a term the company him, I encouraged him to sign the agreement with stipulations later agreed to). At that point he had to decide whether or not he could live with. he would grant a right of way for just one line only, or for adThe first item to look at was the term “lineal feet.” It was ditional lines to be laid in the future for additional payments. unclear to him what that meant. I explained that for each foot The money seemed great at first ($25 a foot). However, I of pipeline laid on the property, the company would pay him X amount of dollars. The catch being (in this agreement) they Continued on pg. 32

Fish is this country’s biggest import second only to oil!

Domer’s Fish Hatchery Inc. has spent the past 20 years promoting and building a multi million dollar fish farming industry in eastern Ohio. As a result of Domer’s direction, Ohio is now the #1 hybrid bluegill producing state in the country, also the #2 yellow perch and #4 large mouth bass producing state in the country, with returns as high as $20,000.00 plus per acre. We are in need of larger and smaller fish farmers. The entire world has long ago surpassed its sustainable supply of wild fish, making fish farming the only alternative.

If you have land, water, common sense and the means to finance this new and growing industry feel free to contact

Domer’s at 330-204-8267 or 330-556-9633 or write to 5273 Waltz Rd. NE, Mineral City, Ohio 44656

10106510

o a

o t e g e d e o e

e s t X n d e d

y y e

Dix Communications - Gas & Oil

www.OhioGO.com

February 2013 Edition

es s t Ra oan

L w w Lo R ne fo

on aLL tYPes of BUsIness eQUIPMent 36 MontHs 2.99% 48 MontHs 3.24% 60 MontHs 3.49%

LUNCH & DINNER SERVED DAILY

OFFSITE CATERING AVAILABLE

WE CATER TO YOUR OIL WELL Main Office (740) 622-8311

East Pointe (740) 622-9089

New Philly (330) 343-9800

Mount Vernon (740) 397-2277

Newark (740) 366-3900

Heath (740) 522-1335 10109071

HIDEAWAYBUFFALOGRILL.COM

4021 MAHONING RD.

CANTON 44705 1010785

Anderson Propane Service, LLC Anderson Propane Services, LLC has been in the bulk propane business since 1999 and has 35 years of propane experience. We are a family owned business and have expanded our business to the Muskingum County area as well to better serve the area allowing us to cover a geographical territory from Columbus to Marietta.

COMMERCIAL

RESIDENTIAL

• Oil Field Industry • Portable dispensing units for filling D.O.T. tanks 20, 30 & 40 lbers • Units on Skids • L.P.G Gas Hoses 350 P.S.I working Pressure • High Pressure Regulators to deliver gas where you need it. • 100 gallon to 1000 gallon ASMF tanks for little jobs to big jobs heating frac tanks to flaring gas in the drilling or completing stages • Tanks for small heaters to campers for your workers (your most important asset) • We offer 20 – 30lb cylinder cages with OSHA warning stickers. • Safeland Certified

Highest Quality Service Lock Ins to hedge against high winter rates Option to pre-buy your gas in the summer with monthly installments & budgets

We have a combined 90,000 gallons of Propane Storage, 4 delivery trucks, 4 service trucks 18003 Suite #1 • Caldwell Ohio 43724 1-888-596-5153 Office 740-732-2030 • Cell 740-581-2788

10094452

Gas & Oil

February 2013 Edition - Dix Communications

www.OhioGO.com

Why do I need to read my existing lease?

s the boom continues, landowners have called us because they have been unable to join in the action for up-front bonuses and enhanced royalties because of the existing lease burdening their land. The existing lease, of course, grants the rights to produce the oil and gas to the lessee (the proEthan Vessels ducer, typically). Marietta Attorney These rights can be, and frequently are, assigned to other producers. It is no secret that the shallow producers are assigning these rights, or portions of these rights, to companies capable of producing the shale formations. In a previous article, I discussed how the lack of production of the shallow well can terminate the existing lease. However, there are other lease provisions that can affect the “shallow” producer’s ability to assign to a “deep” producer, or to even hold the lease at all. You must read your lease. We have encountered the following issues: • Anti-assignment clauses. Some leases have language that specifically prevents the lessee from assigning the oil and gas rights to another entity. This is contested by both sides. Lessees have claimed that the law will not permit lessors to “unreasonably” withholding consent. This remains to be settled by the courts. • Pooling restrictions. “Pooling” is the practice of aggregating contiguous leased properties into an amount of acreage that the government requires, or the industry needs, for drilling operations. Typically, the deeper the well, the greater the required acreage. Today, the horizontal shale wells require 640 acres. In some leases, the lessor and lessee had originally agreed that the lessee could not “pool” the lessor’s acreage at all or limited the acreage into which it could be pooled. Assigning this type of lease to a horizontal producer presents problems: the landowner can object to being pooled into a 640-acre (or even a 1,280-acre) unit. Of course, the existing lease remains valid. Contesting on this basis can result in making the property profitable for no one. Defined production. Most leases have the nebulous “production in paying quantities” language. However, a select few specifically define the amount the annual production required to

hold the lease. Has your well produced that amount? • Depth restrictions. Do not assume that your existing lease grants the rights to the center of the earth. Some leases specifically reserve only “shallow” rights for the lessee, even from the inception of the lease. Have you looked? • Indefinite promises to produce and delay rentals. This could consume and entire article. Nonetheless, shallow producers have been attempting to hold acreage by claiming that the indefinite payment of “delay rentals” holds the lease open. Recent Ohio court decisions confirm the general national consensus that “delay rentals” (payments made to keep a lease active during periods of lack of production) apply only during the primary term of the lease, not indefinitely. Continued on pg. 32

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

Orme Hardware New Concord

Cambridge

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

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

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

Berlin

(Formerly Kandel’s Hdwe.)

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

Cadiz

Newark

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

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

ormehardware.doitbest.com

10062538

Dix Communications - Gas & Oil

www.OhioGO.com

February 2013 Edition

APARTMENT LIVING AT ITS BEST.

Connolly, Hillyer, Lindsay & Ong, Inc. Attorneys and Counselors at Law Since 1964 Brad L. Hillyer • Shawn P. Lindsay • James J. Ong Brett H. Hillyer

Luxurious. Spacious. 1, 2 & 3 Bedrooms.

Oil and Gas Lease?

FEATURES INCLUDE:

Get your best deal Call Brad Hillyer before you sign!

• Fireplace

Over 30 years of oil and gas experience. "We do oil and gas title searches, correct titles, remove old leases, pipeline agreements, well plats and permitting”

Potters Creek Office: 330-821-4363

201 N. Main St., P.O. Box 272 • Uhrichsville, Ohio 44683

www.ForRent.com/PottersCreek 10105692

(740) 922-4161 • (740) 922-2229 Fax chwlawoffice@sbcglobal.net

TAKE A TOUR TODAY!

with gas logs • Central gas heat/ AC • Private balcony or patio • Your own 10’ x 20’ garage w/opener • Washer/dryer connections • All kitchen appliances furnished • Water, Trash & Sewer Included

Alliance, Ohio

For more information on our Canton properties go to www.westgatemgt.com 10110096

“Where All Your RV Needs Are Met!” Onsite job trailer & RV experience. Servicing the local Gas & Oil Industry. “Our mobile service truck will come to you when you need us!”

www.allprorvservice.com

FULL SERVICE RV RENTALS PARTS & STORAGE ACCESSORIES MAINTENANCE PROPANE RETAIL STORE MOBILE SERVICE 10070624

“Like” Us On

Gas & Oil

February 2013 Edition - Dix Communications

www.OhioGO.com

“ProgrEss madE” from pg. 21

“rEad my ExisTing lEasE” from pg. 30

construction project, which Ault said will keep trucks off Beck Avenue and Georgetown Road by routing traffic into the site off Route 44. The city will pay the remaining 30 percent of the project. Ault has reported Chesapeake is spending “tens of millions of dollars” for the balance of the site development. Pete Kenworthy, marketing manager for Chesapeake, recently reported the field office may be completed by the end of 2013, but he added that is probably optimistic, and said the completion may wind up being early in 2014.

You must analyze those checks you receive. Are they royalties or purported “delay rental” payments? Is the lessee claiming an indefinite right to hold your land?

“accounTabiliTy” from pg. 28 have seen as high as $65 a foot in some areas here recently. Now, that figure involved not only paying for lineal footage, but took into account the diameter of the line. Each increase in pipe size increased the fee to be paid for the right of way. What a novel idea. But, an expensive one. I wish I would have had a check book like that. With these changes in mind, he was ready to have his first meeting with the right of way company and begin the process of getting a right of way agreement that was not only acceptable to him, but worked for the company. Next month I will tell you how it worked out with some of the additional clauses we needed to add, and the hitches encountered prior to getting down to business.

Disclaimer. As with all articles on legal issues, this article is intended for educational and informational purposes. The reader should not rely on this article as a substitute for actual legal advice regarding his or her particular case. You should consult an attorney regarding the specifics of your situation. Ethan Vessels is an attorney in Marietta, Ohio with the firm of Fields, Dehmlow & Vessels, LLC. His firm is actively representing landowners throughout East and Southeast Ohio regarding oil & gas lease forfeiture actions, royalty disputes, and other oil & gas matters. Visit www.fieldsdehmlow.com for more information.

Forest Management Specialists

Marvin Yoder, owner 10139 St. Rt. 93 NW Dundee OH 44624 330-603-9269 10110073

10093437

Dix Communications - Gas & Oil

www.OhioGO.com

Kyle McDonald

eismic testing to search for and map natural gas beneath the ground for future drilling is happening throughout Portage County, and now on stretches along most of state Route 43, heading south from the Twin Lakes area, through Kent, Brimfield and Suffield and into Stark County. Kent residents began asking questions Thursday, noticing a long orange cable, connected to metal seismic activity monitors strung through downtown Kent and across driveways, lawns and intersections that continues for miles. The work along state Route 43 is being carried out by Precision Geophysical Inc., a Millersburg company that maps the data throughout Michigan, Indiana, Ohio, Tennessee, Pennsylvania, Virginia, West Virginia and New York, according to the company’s website. The process uses large trucks that carry Enviro-Vibes sounding equipment, which sends pulses into the ground that are read by the roadside monitoring equipment. “The process provides data that is used by geophysicists to determine the best location for drilling natural gas wells,” Kent Service Director Gene Roberts said. Precision Geophysical is not testing within Kent’s city limits, however, as the city determined that a bond requirement of $2.25 million would be necessary to insure the value of Kent’s state Route 43 pavement. State Route 43 runs along South Water and North Mantua streets. The bond requirement was deemed too high by Precision Geophysical, according to an email sent by Roberts to city officials when the company sought a permit.

Ravenna Record-Courier

February 2013 Edition

“The bond is to protect the city’s pavement,” Roberts said, explaining that the pulses sent out by the Enviro-Vibes equipment can potentially damage it. Portage County Engineer Michael Marozzi said the work has been carried out by similar companies throughout Portage County for about half a year now. “They’ve done a tremendous amount of this testing. From what we know, they’ve strung lines all over Portage County,” Marozzi said, noting that his department only issues permits for the jobs on county roads. Brent Kovacs, a public information officer for the Ohio Department of Transportation, which issues permits for the rightof-way use for such activity on state routes, said the work is now common in northeastern Ohio counties that sit above the Marcellus and Utica shale formations that house natural gas deposits. “I would say it’s normal in the counties that they’re looking to do the fracking in,” he said.

Sparta Steel & Equipment Corp.

www.spartasteel.com

STEEL SERVICE CENTER • Rebar • Angle • Channel• HR Bars • CF Bars • Beams • Tubing • Pipe • Deck Plate • Expanded Metal/Grating • Flat Sheets • HR Plate Galvanized Sheets • Stainless Steel and Aluminum Items

• Shearing • Saw Cut • Plate Burning • C.A.D. Burning 9875 Chestnut Ave. SE, E. Sparta, OH 44626

10071710

Accepts all major credit cards • Fast Delivery • Friendly Service • Dependable

330-866-9621 • 1-800-732-4272 • Fax 330-866-9625

L Manufactures of Silt Sock R Heavy and Hot Shot Hauling Water Hauling T

Curt Luburgh (740) 819-7271 Matt Robinson (740) 819-0521

10109753

Gas & Oil

February 2013 Edition - Dix Communications

www.OhioGO.com

Important issues in 2013 A

s we enter another legislative term in the Ohio House of Representatives, there are a lot of important issues on our plate that will be addressed in the coming two years. Last session brought a wide range of new reforms to spur job creation, encourage business growth and ensure greater government responsibility. We will immediately start tackling the next Andy Thompson biennium budget, as well as looking at utility costs, taxes, regulatory State Rep. burdens and ways to find greater ef94th District ficiency in our government operations. The topic of jobs remains front and center in the 130th General Assembly. In Washington County, the latest figures show that the unemployment rate plummeted to 5.5% as of the end of December. There is much more to do, but people are returning to work not just in Washington County but in many other

counties across the state. More than 120,000 jobs have been created inside our borders since January 2011. The Ohio General Assembly has also helped provide small family businesses and farms more certainty, now that the estate tax has been officially repealed. Regarding efficiency, staterun agencies are now subject to performance audits. Beyond that, reforms enacted in the areas of Medicaid, corrections, and transportation reduced taxpayer costs substantially.

“I am opposed to raising taxes on oil and gas producers because I believe we should not threaten or delay the fantastic progress we’re making economically in the shale areas.” -State Rep. Andy Thompson

Shale development and tax policy relating to that development are also on the front burner. The governor proposes to raise the severance tax in order to offer a modest income tax cut to taxpayers across the state. I am opposed to raising taxes on oil and gas producers because I believe we should not threaten or delay the fantastic progress we’re making economically in the shale areas. I believe this rising tide will lift all boats if given a bit more time to develop. Clearly our educational institutions have a fantastic opportunity in workforce development to produce the thousands of new employees the oil and gas industry will need as the shale play continues. We are continuing to implement reforms in education and workforce development, to ensure greater accountability and to promote excellence at all levels. As Speaker William Batchelder said during his inaugural address, “Our students are the ones left to face the many challenges that we either have not yet overcome or have yet to encounter.” Our reforms will ensure that these students are properly-equipped with the skills necessary for success. Rep. Thompson may be reached by calling (614) 644-8728, e-mailing Rep95@ohiohouse.gov, or writing to State Rep. Andy Thompson, 77 South High Street, Columbus, Ohio 43215.

330-364-5866

email: wardemler@surveyorsohio.com www.surveyorsohio.com

10109069

113 3rd St. S.E. New Philadelphia

Dix Communications - Gas & Oil

www.OhioGO.com

February 2013 Edition

“Get Acquainted Luncheon”

The Safety Group, LLC 10901 Clay Pike Derwent, Ohio 43733 Phone (740) 685-8784 • Fax (740) 685-0288

l e d d

We offer Wrangler and Bulwark FR Clothing PEC Basic Orientation and Safeland USA/SafeGulf Training For more information call 740-685-8784 t h e s a f e t y g r o u p . c o m10110433

Members of Unity Presbyterian Church and First Presbyterian Church talk with workers from the local gas and oil industry during a free “Get Acquainted Luncheon” held in Cambridge.

WOLFE RADIATOR WORKS Big or Small - We do it All! Complete Radiator & Fluid Line Service

auto - truck - hvy equip. - industrial - commercial - oil cooler repair

Brake Hoses Made to Order

over 25 years experience!

Complete Fluidline Tube and Hose Fabrication

1710 Maysville Ave., Zanesville, OH 888-824-1884

Engineering, IT, & Technical Staffing Solutions Provider Putting America Back to Work!

Experienced In: Technical Staffing for Shale Oil and Gas

www.wolferadiator.com

proud dealer of 10108047

Residential - Agricultural - Privacy Fence Pole Barns - Garages

Barb Wire, Vinyl, Board Fence

www.integrityjobs.com 888-262-3226 Call Now! 14 Whitehall Drive Akron, Ohio 44278 888-262-3226

Ridgeline Fencing 330-204-7805 10105073

10106587

Gas & Oil

February 2013 Edition - Dix Communications

www.OhioGO.com

New Aluminum

SUPERIOR

CRUDE OIL

TANK

Trailers

p p

P.O. Box 500 - Beach City, OH 44608

1-800-826-5377 or 330-756-2030 superiortank@yahoo.com superiortank2@gmail.com www.superiortankinc.com

New 130BBL

e f r m

WATERVAC New & Used Trailers

t p p

SALES SERVICE PARTS

New Frac

l u s New & Used Trailers w a

SAND

10107075

Supplying the Material Handling Industry for Over 40 Years!

p l b a M a

9462 Main Ave SE East Sparta, Ohio 44626

10068382

Williams Toyota Lift

Phone (330) 866-2121 Fax (330) 866-3701

( c c t O

www.OhioGO.com

Dix Communications - Gas & Oil

February 2013 Edition

Watershed negotiates non-development oil, gas lease meeting, and will review comments and suggestions received for Seneca Lake property

he Muskingum Watershed Conservancy District has negotiated an oil and gas lease for 6,700 acres of its property at Seneca Lake in Guernsey and Noble counties that will prohibit any surface development on MWCD property and add protections to adjacent private properties. The lease agreement between the MWCD and Antero Resources of Colorado was presented to the MWCD Board of Directors for review during a meeting Friday, Jan. 18, with an expected recommendation for the Board to approve the lease at the Board’s meeting in February. The lease contains a number of environmental protections for the MWCD property at Seneca Lake that includes additional protections for property owners adjacent to the MWCD-owned property, said Sean D. Logan, MWCD’s chief of conservation. “The MWCD has always negotiates basic protections into the leases it enters into,” Logan said. “This lease builds upon those, utilizing the concerns and comments that were provided to our staff and Board of Directors from the public. We are pleased that we received very serious, very thoughtful suggestions and guidance from the public that shares our concerns in this process.” Under the lease terms, there will be no well pads, lease roads or pipelines on MWCD property, and surface operations on adjacent lands where the MWCD shares in the well or lands also leased by Antero and located within a half-mile of MWCD property also will be subject to the terms of the lease, said Mark Swiger, MWCD’s natural resources administrator who has negotiated and managed MWCD leases for more than 35 years. Other protections of the reservoir area included in the lease, according to Swiger, include: • The MWCD will have an opportunity to view Antero’s well development plans annually. • The MWCD will have the right to review the location of all well pads, associated roadways and pipelines. • The MWCD will review all erosion and sedimentation plans, safety plans and engineering site plans prior to any construction. • The MWCD will have access to the construction site prior to work commencing and during the drilling and completion phases. • The lease also will include light and sound control to reduce the impact to the immediate lake community. Financial terms of the lease still are being negotiated, Logan said. The lease document also can be found on the MWCD website (www.mwcd.org/conservation) and public comments will be accepted by the MWCD by sending an email message to senecacomments@mwcd.org, by fax at 330-64-4161 or by regular mail to, Seneca Comments, MWCD, P.O. Box 349, New Philadelphia, OH 44663. The MWCD staff plans to recommend to the Board of Directors to enter into the lease with Antero at the Board’s Feb. 15

prior to that meeting for any potential lease changes and upgrades, said Logan, MWCD’s chief of conservation. “The MWCD is pleased to provide this deliberate process in order to demonstrate the environmental concerns built into the lease and to allow interested citizens with an opportunity to review the lease and offer their own comments and suggestions,” Logan said. “For 80 years the MWCD has been negotiating and managing leases for oil and gas development on the MWCD properties, and the MWCD lease has been used by public and private landowners as a model.” The MWCD pledged in 2012 after meeting with a group of interested residents and groups that it would enhance opportunities for public input and transparency into the process of oil and gas leasing of MWCD property as part of the interest in the Utica shale region in Eastern Ohio. MWCD officials held a public meeting last October in the Village of Senecaville in which they announced that lease negotiations would begin and invited comment during and following the meeting, and pledged that any lease developed for recommendation to the Board of Directors first would be available for a period of public review and comment prior to any action by the Board. The public meeting and public review and comment period are not required by law, and input previously received by the MWCD following the public meeting were incorporated into the proposed lease agreement with Antero, Logan said. The MWCD previously signed leases related to the Utica shale development in 2011 with Gulfport Energy Co. for MWCDowned property at Clendening Lake in Harrison County and a similar non-development lease in 2012 with Chesapeake Energy Co. for MWCD-owned property at Leesville Lake in Carroll County. The MWCD has managed oil and gas leases on its properties for its entire 80-year history as a part of its overall natural resources stewardship program. There are approximately 275 traditional (Clinton development) wells that the MWCD receives royalties from, Swiger said. The MWCD, a political subdivision of the state, was organized in 1933 to develop and implement a plan to reduce flooding and conserve water for beneficial public uses in the Muskingum River Watershed, the largest wholly contained watershed in Ohio. Since their construction, the 16 reservoirs and dams in the MWCD region have been credited for saving more than $10 billion worth of potential property damage from flooding, according to the federal government, as well as providing popular recreational opportunities that bolster the region’s economy. A significant portion of the reservoirs are managed by the MWCD and the dams are managed for flood-risk management by the federal U.S. Army Corps of Engineers. For information about the MWCD, visit www.mwcd.org and follow the MWCD on Facebook and Twitter.

Gas & Oil

February 2013 Edition - Dix Communications

www.OhioGO.com

Pipeline installation a major topic in Ohio

t this stage in natural gas and oil development within Ohio, pipeline development is becoming a major issue, according to Dale Arnold, the Ohio Farm Bureau Federation Director of Energy, Utility, and Local Government Issues, who spoke on the topic at a recent public program held in New Philadelphia. “Construction and remediation standards must be considered when Laurie Huffman interstate, intrastate, and local colDix Communications lection pipelines are installed,” said Arnold. Pipeline and energy development companies have begun contacting residents across the region to request preliminary surveys and environmental evaluations, and Steve Quillin, president of the Tuscarawas County Farm Bureau, recommends accompanying them in the process to meet company representatives, get contact information, discuss the farm’s soil and water conservation requirements, and note infrastructure that could be impacted during a possible construction project. George and David Mizer, landowners from Harrison County, near Tappan Lake, in Cadiz, recently had pipeline installed on their property, and the two spoke at the farm bureau session to outline some of the pitfalls. First of all, the brothers said not to be in a hurry when negotiating an agreement. “These companies are in a hurry,” they said. “But, us farmers, we aren’t used to this stuff. The Ohio Farm Bureau recommended we not sign anything right away, so we slowed things down.” As the two were negotiating their first contract with Dominion Gas, the company told them trees had to begin being

Dix Communications Photo/ Laurie Huffman David Mizer, right, talks with Tuscarawas County Engineer Joe Bachman at a recent public forum held by the Ohio Farm Bureau.

Dix Communications Photo / Laurie Huffman George Mizer, right, answers questions after speaking at a Farm Bureau session covering issues related to pipeline installation across farm land

cleared so deadlines could be met. The Mizer brothers signed an agreement just for that portion of the work so they could negotiate for a longer period on the main contract. The extra time proved fruitful, as they were able to negotiate the application of gravel along the sides of a pipeline ditch that was 10 feet wide and 7 feet deep, paid for by the company at a cost of $20,000. The two said they were given good advice they have always followed, which is: “If you don’t like the way the meeting is going, then say the meeting is over.” They also advise if there is a representative you are not comfortable with, tell the company to send someone else. The Mizers also pointed out if land being crossed will be pasture, and if there are renters who farm or who own livestock, that is also something to think about. The brothers had pipeline laid where their renters wanted it, and the renters were also able to plan where the fencing would be placed. The two said beware of temporary fences, because they had to add barbed wire to keep their livestock from going through it. In the end, they requested all their temporary fences be woven wire. They also suggested working alongside the contractors as they usually know little, if anything, about farmland. As final advice, the two said, “You don’t know how strong the EPA is until they come onto your property. You will want to have some say about reclaiming your land ahead of time, before they come around.” The Mizers asked Dominion Gas to build up and wrap the sides of a stream to be crossed with pipeline. Now, the brothers report the stream is in better shape than it ever was, and they won’t have issues to deal with later from the EPA.

Dix Communications - Gas & Oil

www.OhioGO.com

Quality Environmental Services, Inc.

February 2013 Edition

Ohio’s Largest Hitch & Parts Inventory!

Trailer Sales, Renting & Leasing - Repair & Service - Hitches

67440 Falloure Rd. Belmont, Ohio 43718

Over 300 Hitches in Stock

(740) 782-1767 Fax (740) 782-1905 Contact: Fred Blackman www.qesinc89.com qes@windstream.net

Pipe Trailer

Monorail

1Peter 1:13

Pre-Mining Hydrology Studies Pre-Drilling Hydrology Studies Dam Maintenance Impoudment Inspections Monitoring Wells Pump Repair & Replacement Spring Developments Stream Monitoring Waste Water Treatment AMD Treatment NPDES Sampling & Reporting Quarterly & Article III Sampling Ohio Sewage System Installation Opacity and Air Monitoring Reporting Potable Water Replacement

Refuse Trailer

AKRON

1750 E Waterloo Rd

10101878

1 mile east of I-77 (Rt. 224)

330-798-1698 800-691-9914

Potty Trailer

CANTON

1220 30th St. NE

3 miles east of I-77 (Rt. 30)

330-580-4445 800-311-126010089910

Ron Braucher, Owner

Fleet Maintenance • Inspections Full Service • Trailer Repair Towing Available

Located on Rts. 30 & 44 • 383 East Walnut • East Canton

10063104

330-488-2000 1-888-488-2009

10039562

“Put Our Experience To Work For You”

Gas & Oil

February 2013 Edition - Dix Communications

ER LA N D B M U C

www.OhioGO.com

Miller’s Clothing and Shoes WRANGLER FR

LIMESTONE

53681 Spencer Rd., Cumberland, OH

(740) 638-3942

WATERPROOF STEEL TOE 11”

CARHARTT (330) 364-2688

10109077

159 WEST HIGH AVENUE NEW PHILADELPHIA, OH 44663

Mon. - Fri. 7:00 A.M. - 4:00 P.M. Sat. 7:00 A.M. - 12:00 P.M.

All Limestone Products

or f l l a C g • Sand and Gravel Haulin s • Aggregate Lime Price • Top Soil

10038257

SUGARCREEK, OHIO 330-852-2466 www.whistlingpinehomes@marketplaceohio.com

10109090

Uhrichsville Distribution Center Warehouse & Office Space 4,000 to 45,000 sq. ft with more available Large parking area Location off Rt. 250 & Rt. 36 at Trenton EXIT

Available: RJ Corman

& Ohio Central

Call for details • 330-949-6207

10102620

Dix Communications - Gas & Oil

www.OhioGO.com

February 2013 Edition

TRUST MATTERS. Especially When It’s Your Money. Have you ever wondered who your financial consultant really works for? I work strictly for you. I work hard to build a relationship of trust by providing thoughtful, unbiased guidance and placing your interests first. Invest with a knowledgeable financial consultant who’s on your side; someone who truly cares whether your investments are right for you. Call today for more information or to schedule a consultation.

Heritage Financial & Investment Services, LLC. Financial & Estate Planning/Investment & Insurance Services

Nikki V. Baker-Lude, CFP®, ChFC® LPL Financial Advisor 117 N. Main Street, Suite 22 Woodsfield, OH 43793 Office: 740-472-9161 nikki.lude@lpl.com www.lpl.com/heritagefinancial Securities and Financial Planning offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC

10107644

The Canton Small Business Development Center, Kent State University at Stark and Roetzel & Andress Law Firm present:

Oil and Gas Educational Series

Basic Contracts Used in Oil and Gas Management This program examines operating agreements, pooling and utilization agreements, oil and gas leases and other contractual agreements used in the exploration, production, and marketing of oil and gas. 10107331

Yoder Fence

23 Y Experiears ence

& Brush Removal LLC

The public presentations are designed to provide education to members of the community. Presented by knowledgeable attorneys at Roetzel & Andress, each event will provide a factual forum, with an opportunity for attendees to ask questions regarding the subject matter.

7239 Township Road 654, Millersburg, Ohio 44654

Phone: (330) 359-6136 Cell: (330) 763-0497 Fax: (330) 359-0825

We build all kinds of farm fence.

Free Estimates

No job too large or small!

Thursday, Feb. 14, 2013 • 6:30 - 8 p.m.

Kent State University at Stark • Main Hall Auditorium 6000 Frank Avenue NW • North Canton, OH 44720 $10 per person • $15 per couple Register online at: www.cantonsbdc.org

10109426

Kent State University, Kent

red trademarks and may not

State and KSU are registe

be used without permission.

10110492

Gas & Oil

February 2013 Edition - Dix Communications

www.OhioGO.com

With new tech, US energy independence by 2035

he days of worrying about imminent decline of crude petroleum production (known as “peak oil”) and a consequent energy crisis can be pushed well into the future, an expert from The Ohio State University suggested. “Forget about peak oil,” Jeff Daniels said during a meeting of the Guernsey County Energy Coalition at the Southgate Hotel. John Lowe The development of horizontal Dix Communications drilling technology, as well as the use of hydraulic fracturing, will open the United States and the world to crude oil reserves previously untouchable. As a result, the United States will be energy independent by 2035, Daniels said. Although the new method of drilling that enables energy companies to tap into the fossil fuel reserves in the Marcellus and Utica shale formations here in eastern Ohio is costly, that expense is more than justified by the crude oil recovery rate, Daniels said. “Horizontal drilling has a recovery rate three to four times greater than [conventional] drilling,” he said.

The conventional method of vertical, drilled wells only captured 15 to 20 percent of the oil present, leaving about 80 percent of the reserve behind. “Shale energy is just the beginning,” Daniels said. “We will be using horizontal drilling in the [traditional] fields.” The current boom with regard to the shale promise is “not a geology play,” he said. “It’s a technology play.” Horizontal drilling is the biggest “game changer” to come along in petroleum engineering in the course of Daniels’ 50-year career in geology, he said. Despite Daniels’ belief there is yet an abundant supply of petroleum worldwide, he espoused a balanced approach to satisfying our energy needs. Nuclear and renewable energy sources must be developed and deployed in addition to our continued use of fossil fuels, he said. The meeting Thursday was the 18th gathering of the Guernsey County Energy Coalition, said Jo Sexton, president of the Cambridge Area Chamber of Commerce. The next meeting will be Jan. 3. She suggested members go online to check out how oil drilling rigs work. “The more we understand about what is going on, the better,” she said.

THIS IS PROFESSIONAL-GRADE ENGINEERING Trucks! Trucks!Trucks! Gas • Diesel • 1 Ton • 3/4 Ton Longbed • Shortbed • Crew Cab Full Size • Medium Size

Whitesides Has A Truck For You!

whitesidesofcambridge.com

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

Ask about our

Credit Approval

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

Guaranteed

1051 Southgate Parkway Cambridge, OH

whitesidesofcambridge.com 10110074

Dix Communications - Gas & Oil

www.OhioGO.com

February 2013 Edition

OhiO Well Activity

by the numbers

MArcellus shAle

8 5 3 2 2 20

Wells Permitted Wells Producing Not Drilled Wells Drilled inactive total horizontal Permits

uticA shAle

10 Plugged 138 Wells Drilled 279 Wells Permitted 48 Wells Producing 5 Not Drilled 16 Wells Drilling 4 inactive 500 total horizontal Permits

Data as of 1/19/12 Source: Ohio Department of Natural resources Clean, Spacious Furnished Cabins For Rent •CABINS •EFFICIENCIES •CAMPING

Weekly or Monthly Rentals

www.clendeninglake.com

79100 Bose Road, Freeport, Ohio 740-658-3691

35 Years experience in the Oil & Gas Industry

Premium Diesel • Gasoline • Motor Oil and Lubricants 10107062

Drivers have OSHA 10 and SafeLand USA safety training

10039492

MAST TIRE

“Large or Small, We Sell ‘em All!” Auto • Farm • Commercial

H ROAD SERVICE AVAILABLE H

Checking Facts. Busting Myths

Quality Tells, Price and Service Sells

(740) 685-1199

www.eidohio.org A JOINT EFFORT OF OOGA | OOGEEP | IPAA

Andy Mast

10063099

10106290

519 Main St., Pleasant City, Ohio 443772

Gas & Oil

February 2013 Edition - Dix Communications

www.OhioGO.com

Old company has NEW impact

rive by a typical gas or oil well site in Ohio and you will see a synthetic ground cover, usually colored green. You would probably be surprised to find out that its use is not only functional but eco-friendly as well. American Engineered Fabrics, a 100-year-old company based in New Bedford, Mass., has made a substantial entrance into the gas Rob Todor and oil industry in the Utica Shale Dix Communications area. Daniel Weinstein, the company’s president and Chief Executive Officer, is excited about the future for AEF as the industry expands. He’s also proud of the eco-friendly component of the products his company produces. “We’ve sent a large volume of product into Ohio and Western Pennsylvania,” says Weinstein. “If New York opens up the Marcellus Shale we expect to send product there in the future.” A popular use for the AEF product is as a ground cover, or well pad, for the drilling area. It can also be used to secure near-

ocay owned since

“One truckload of our product

can save 300,000 bottles from the landfill.”

-Daniel Weinstein by retention ponds, ensuring the prevention of hazardous materials from leeching into the ground. The product — referred to as felt by contractors — is nonwoven, meaning it is resistant to tears and can withstand extreme temperatures. And it’s eco-friendly from start to finish. It’s produced from recycled green plastic soda bottles — and no additives or dyes are added. “To quantify that,” says Weinstein, “one truckload of our product can save 300,000 bottles from the landfill.” Also, companies that use the material qualify for LEED (Leadership in Energy and Environmental Design) points. Continued on pg. 48

Providing the following services to the Oil & Gas Industry: Winch Trucks Equipment Hauling Frac Tank Moving Dump Trucks Hot Shot Service Lease Road & Site Construction Lease Road & Site Reclamation

1972

oil & Gas p r o d u c e r // l e a s e s

Your area specialist. gerald benson // President // 740.685.0404 Mark a. benson // exec. Vice President // 740.801.0808

MIKE LANZER Cell: 740-260-3397

Mike Young // belle Valley associate // 740.680.3609

10039109

DOUG LANZER Cell: 740-541-5193

www.mattmarkdrilling.com land@mattmarkdrilling.com

P.O. Box 7

10341 Pioneer Road

Byesville, Ohio 43723

Lanzer Excavating LLC 67255 Old 21 Road, Cambridge, OH 43725 Phone/Fax: 740-255-5474 Email: mikelanzer@hotmail.com 10109467

Dix Communications - Gas & Oil

www.OhioGO.com

February 2013 Edition

TGS DELIVERS OHIO

TGS has begun acquisition of its Firestone 3D project in Northeast Ohio. Attributes include: • 409 mi2 multi-client 3D data • Survey is located in the heart of the Utica Shale • Formations imaged include the Utica Shale, Point Pleasant, Trenton Black River and the Knox

• Interpretive products available including basin temperature modeling, tops, etc. • LAS Plus (workstation ready) well logs available • Delivery of final 3D volumes expected in early 2013

With new onshore 3D seismic and the largest well log database in North America, TGS offers the most complete onshore multi-client data available. For further information contact TGS at: Tel: +1 713 860 2100 Email: Info@tgs.com Mu Qu lti- ality clie nt D ata

Learn more at WWW.TGS.COM

Gas & Oil

February 2013 Edition - Dix Communications

www.OhioGO.com

Shale and You: A Workshop for Landowners

andowners and community leaders interested in shale energy development may want to attend an Ohio State University Extension workshop on Saturday, Feb. 23. “Shale and You: A Workshop for Landowners” will be held 1-5:30 p.m. at the Mill Creek MetroParks Farm, 7574 Columbiana-Canfield Road, Canfield. Registration is $15. Materials and refreshments will be guaranteed to those whose registrations arrive at the OSU Extension Ag Law’s office in Columbus by Monday, Feb. 18. The registration form with the office’s address and other details can be downloaded here and is also available athttp://shalegas.osu. edu -- click on the “Shale and You” event under “Upcoming Extension Events.” “We held a similar workshop in Cambridge last November, and those who attended said they got a lot out of it,” said Peggy Hall, assistant professor and OSU Extension field specialist in agricultural and resource law. “Participants especially appreciated the ability to talk oneon-one with OSU Extension educators at information booths over the course of the day,” she said. Hall, who is coordinating the effort, emphasizes that the workshop is designed to help landowners and community leaders make the best decisions possible. It is not geared to discuss the pros and cons of such development.

“As an educational institution, OSU Extension is focused on providing relevant information to help those who are dealing with shale energy development,” Hall said. “We don’t set policy or make decisions for people.” The workshop will include presentations by OSU Extension educators, including sessions on: Update on Ohio Shale Development and Activity, by Chris Penrose, OSU Extension educator in Morgan County. Leasing and Landowners: What if Problems Arise? by Peggy Hall, OSU Extension Agricultural Law Program. Taxation and Wealth Management of Oil and Gas Income, by Dave Marrison, OSU Extension educator in Ashtabula and Trumbull counties, and Polly Loy, OSU Extension educator in Belmont County. Your Private Water Source: When and Why to Test, by Sarah Cross, OSU Extension educator in Harrison and Jefferson counties, and Peggy Hall, OSU Extension Agricultural Law Program. Pumping the Product: Pipeline Construction, by Mark Landefeld, OSU Extension educator in Monroe County, and Chris Zoller, OSU Extension educator in Tuscarawas County. One Family’s Experience with Shale Development, featuring Steve Schumacher, OSU Extension educator in Belmont County and a panel of landowners who have dealt with shale development directly. Continued on pg. 48

QUALITY • SAFETY

Pipeline Construction New Concord, OH

ServiceS include But not limited to: • Pipeline Installation & Line Repairs • Plastic Pipe Insertions • Tank Battery Installation • Well Head Hookups • Pump Jack Installation • Compressor Hookups • Disposal Well Design & Installation Contact: Rick Read Office: (740) 826-1236 • Mobile: (740) 255-6879 10110223

crr@energyservcorp.com

10111261

Dix Communications - Gas & Oil

www.OhioGO.com

February 2013 Edition

Top CounTies WiTh horizonTal Drilling aCTiviTy By numBer of siTes

1. Carroll County 182 2. Harrison County 64 3. Columbiana County 62 4. Jefferson County 35 5. Monroe County 32 6. Guernsey County 26 7. Noble County 25 8. Belmont County 21 9. Mahoning County 15 10. Portage County 14 11. Stark County 13 12. Tuscarawas County 12 13. Coshocton County 5 14. Muskingum County 3 Holmes County 3 15. Knox County 2 Trumbull County 2 14. Ashland County 1 Geauga County 1 Medina County 1 Wayne County 1 Well SiteS SiteS in variouS variouS Stage tageS:: Permitted, drilling, drilled, ComP ComPleted, ProduC ProduCing, Plugged SourC Sour Ce: ohio dePartment of natural reSour ourC CeS aS of 1/19/13

100

125

150

185

Gas & Oil

February 2013 Edition - Dix Communications

www.OhioGO.com

Chesapeake Energy listed on Fortune’s ‘100 Best Companies to Work For’

or the sixth consecutive year, Fortune Magazine named Chesapeake Energy Corporation to its list of 100 Best Companies to Work For®. Chesapeake ranked 26, the highest listed Oklahoma-based employer for the third consecutive year, and the second highest ranked company in the energy industry. The full list and related stories will appear in the Feb. 4 issue of Fortune. Aubrey K. McClendon, Chesapeake’s chief executive officer said, “Empowered and motivated employees continue to make Chesapeake a great place to work. Our employees are focused on creating and delivering value for our shareholders while also making our country more energy secure. Although we have made progress in achieving these goals, we are determined to do even better with our distinctive and attractive corporate culture and workplace being key elements in our drive for further success.” “We believe our workplace culture allows Chesapeake to recruit and retain some of the industry’s best talent,” noted Martha A. Burger, Chesapeake’s senior vice president – human and corporate resource. “We are extremely proud of our nearly 12,000 employees who consistently deliver outstanding performance, quality, innovation and collaboration, even when faced with the cyclical nature of our industry.” Archie W. Dunham, Chesapeake’s non-executive chairman of the board, added, “In addition to our extraordinarily high quality assets below ground, Chesapeake has built an asset base of tremendous breadth, value and energy above ground – our employees. It is a tribute to our management team for their excellence

and efforts that Chesapeake has now been recognized among the 100 Best Companies to Work For six years running.” More information about Chesapeake and its careers can be found at www.chk.com/careers <http://www.chk.com/careers> . To pick the 100 Best Companies to Work For, Fortune partners with the Great Place to Work Institute to conduct the most extensive employee survey in corporate America: 259 firms participated in this year’s survey. More than 277,000 employees at those companies responded to a survey created by the institute, a global research and consulting firm operating in 45 countries around the world. Two-thirds of a company’s score is based on the results of the institute’s Trust Index survey, which is sent to a random sample of employees from each company. The survey asks questions related to their attitudes about management’s credibility, job satisfaction, and camaraderie. The other third is based on responses to the institute’s Culture Audit, which includes detailed questions about pay and benefit programs and a series of open-ended questions about hiring practices, methods of internal communication, training, recognition programs, and diversity efforts. After evaluations are completed, if news about a company comes to light that may significantly damage employees’ faith in management, Fortune may exclude it from the list. Any company that is at least five years old and has more than 1,000 U.S. employees is eligible. For more information on how to apply, see http://bit.ly/n8bVJ3 Information Provided by Chesapeake Corp.

“old comPany Has nEw imPacT” from pg. 44 “That’s a niche that we saw was not being served,” says Weinstein. American Engineered Fabrics has long been a significant force in the oil industry, mostly in retention and spill and erosion control. “We’ve produced pads and booms (to control spills) for quite some time,” says Weinstein. “We worked on the Exxon Valdez spill (in 1989) for example. “We’ve always been environmentally-focused,” he continues. “We wanted to expand our products for traditional construction industries while at the same time offering something eco friendly.” The feedback Weinstein has received from gas and oil companies tells him AEF is on the right track. “Containment is not a big concern in Texas, for example, because the fields are in the middle of the desert,” says Weinstein. “But in Ohio and Pennsylvania they are leasing a lot of land close to homes and communities. In Ohio, for instance, the issue of containment moved from a standard best practice to mandated.

“A lot of the demand comes from its light color,” says Weinstein, “because the typical ground cover is black. Our greencolored fiber can reduce the head load by about 15 or 20 degrees in the spring and summer. That’s a big difference when you’re talking about a whole (rig) crew working on a 300 (feet) by 300, or 600 by 600 pad.”

“sHalE and you” from pg. 46 The workshop is being partially funded by a grant from the U.S. Department of Agriculture’s North Central Region Risk Management Education Center. For more information, contact Chris Hogan with OSU Extension’s Agricultural Law Program at 614-247-7898 or hogan.154@osu.edu.

OVER 200 VEHICLES IN STOCK

CHOOSE BETWEEN HEAVY DUTY & DIESEL TRUCKS, SUVS & CARS

SARCHIONE AUTO SALES

22155 E. State St. • Alliance, OH • 330-823-9033 Hours: M & Th 8-8; T-W-F 8-6; Sat. 8-3 Be sure to check out our new Website at www.sarchione.com