December 2018
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SHALE INSIGHT 2018 CONCLUDES
OILFIELD EXPO HOSTED BY OOGA
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Table of Contents DECEMBER 2018
3
A Look Ahead Gas & Oil Events
G ROUP PUBLISHER
4
OOGA Technical Conference
Bill Albrecht
6
Shale Insight 2018 Concludes
EXECUTIVE EDITORS
8
Women in Energy Network
Ray Booth rbooth@daily-jeff.com Ted Daniels tdaniels@the-daily-record.com
CONTENT CO ORDINATOR Doris Sigg
dsigg@the-daily-record.com
“Ohio Gas & Oil” is a monthly publication. Copyright 2018.
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OhioGas&Oil
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U.S.Home Heating Bills Likely to be Slightly Higher this Winter
12
Ohio Sen. Rob Portman visits Petta Enterprises in Cambridge
13
Ohio Court Rulings Continue in Legal Battles Between Over Sevred Mineral Rights
15
Guernsey County Community Development Corporation Receives Donation to Purchase New Hybrid Van
16
Belmont County EMA Trailer Ribbon Cutting
17
Belmont College Offers Natural Gas Utility and Pipeline Field Skills Training Program
19
Ohio Well Activity
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Horizontal Drilling Activity Graph
On The Cover:
The staff of Ohio Gas & Oil would like to wish all of our readers and advertisers a very bright, happy and healthy holiday season and a happy, healthy and prosperous New Year!
DECEMBER 2018 ADVER TISING John Kridelbaugh Cambridge, Ohio Office jkridelbaugh@daily-jeff.com 740-439-3531 Kelly Gearhart Wooster & Holmes, and Ashland, Ohio Offices kgearhart@the-daily-record.com 330-287-1653 419-281-0581 Mindy Cannon Alliance & Minerva, Ohio Offices mcannon@the-review.com 330-821-1200 Kim Brenning Kent, Ohio Office kbrenning@recordpub.com 330-298-2012
L AYOUT DE SIG NER Phil Luks
pluks@recordpub.com
A Division of GateHouse Media Ohio 212 E. Liberty St. Wooster, OH 44691 330-264-1125 editor@spectrumpubs.com. DECEMBER 2018
A Look Ahead
Gas & Oil Events DECEMBER 13, 2018 OOGA HOLIDAY RECEPTION,
Aurora, CO 80019 USA. For more info, visit www.womensenergynetMEMBERSHIP work.org
Thursday, Dec. 13, 4:30 p.m., The Virtues Golf Clug (formerly known as Longaberger Golf Club), One Long Drive, Nashport, OH. Contact Georgette McElroy, gmcelroy@ ooga.org.
MARCH 27-29, 2019 WOMEN IN ENERGY NATIONAL CONFERENCE, Wednesday, March 27 - Friday, March 29, 2019. Gaylord Rockies Resort & Convention Center 6700 N. Gaylord Rockies Boulevard
DECEMBER 2018
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OOGA
Technical Conference Ray Booth | GateHouse Ohio From new technology to refurbished equipment, the Technical Conference and Oilfield Expo, hosted by the Ohio Oil & Gas Association in Cambridge, delivered a wide range of vendors and speakers for the energy industry. Mike Chadsey of the Ohio Oil & Gas Association said it was a great turnout for the fourth annual event in Cambridge. “The Technical Conference and Expo is the Association’s opportunity to bring together the best and brightest within our industry to showcase the latest and greatest innovations in the oilfield,” Chadsey said. “This year we covered a wide range of topics that focused on different sectors of the industry to provide value to our diverse membership. It was a great day and thanks goes out to Jo Sexton from the Cambridge Area Chamber of Commerce for moderating and to her hotel, restaurant and retail members for welcoming our folks to town.” The premier sponsor for the event was Ohio811. org, a collaboration between the Ohio Utilities Protection Service (OUPS), the Ohio Oil and Gas Association (OOGA) and the Ohio Gas Producers Underground Protection Service (OGPUPS), to consolidate Ohio’s two utility protection services under the unified OHIO811 trademark. “Call Before You Dig” just became easier for Ohio’s excavators and homeowners, increasing public safety and the protection of the state’s critical underground utilities infrastructure. Ohio’s Revised Code requires that ALL excavation contractors, property owners, or utility operators planning an excavation project must notify local utilities a minimum of 48 hours, but no more than 10 working days, prior to beginning any excavation. Now, a single call to 8-1-1 or a visit to OHIO811.org will insure that affected member utilities as well as those owning, operating and maintaining oil and gas production facilities are properly notified of planned excavations. “For nearly 30 years OGPUPS has been enabling oil and gas producers to protect their underground systems in conjunction with OUPS,” said Matt Hammond, Executive Vice President of the Ohio Oil and Gas Association, in a release about the program. “After much consideration we decided that it was in the best interest of all parties to consolidate and streamline the programs within a unified center managed by OUPS.” For more information, visit www.OHIO811.org
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After opening remarks by Matthew Hammond, executive vice president of OOGA, and a welcome by Jo Sexton, CEO of the Cambridge Area Chamber of Commerce, other speakers included: • Robert McHale, MarkWest Energy Partners • Bryan Crowe, MarkWest Energy Partners • Martin R. Shumway, Locus Bio-Energy Solutions • Greg Mason, GeoKat LLC • Chief Rick Simmers, Ohio Department of Natural Resources, Divison of Oil & Gas Resources Management • Roger Lipscomb, Ohio Utilities Protection Service (OHIO811) • Bob Winland, Consultant • Duane Clark, Petrox, Inc. • Mack D. Smith, Dominion Energy Ohio Gold sponsors for the Conference and Expo included Antero Resources and Ergon Oil Purchasing, Inc.; Silver sponsors were Ascent Resources, Universal Pressure Pumping, Inc., Cabot Oil & Gas Corporation and VORYS; Bronze sponsors were American Refining Group, compmanagement, Mac Oil Field Service, Inc., Aspire Energy and Dearing. The Media sponsor was Northeast ONG. OOGA continued on page 5
The Ohio Oil and Gas Association hosted its annual Technical Conference and Oilfield Expo Thursday at the Pritchard Laughlin Civic Center in Cambridge. This event allows those in the industry to highlight services and products. Here, Bill O’Dowd, left and Brendon Keller of ProFire, demonstrate one of their burner management systems. Photograph by Michael Neilson / GateHouse Ohio.
DECEMBER 2018
OOGA continued from page 4
• • • • • •
Profire Energy ONG Marketplace SECUR O&G Sleep Inn & Suite and Comfort Inn WEN - Women’s Energy Network Zimmerman Steel & Supply Co.
AllStar Ecology’s booth. Photograph by Michael Neilson / GateHouse Ohio.
Exhibitors scheduled for the Expo included: • AllStar Ecology Inc. • AMG Peterbilt • Association of Desk and Derrick Clubs • Bluetick, Inc. • Bureau of Workers Compensation, Division of Safety and Hygiene • Capstone Distributor, E-Finity • CompManagement • E-Tank, Ltd/E-Pump • Fairfield Inn & Suites, Cambridge • Hondros College • I.C.E. Service Group, Inc. • InnVite Hospitality • Locus Bio-Energy Solutions LLC • MJ Painting Contractor Corp. • Ohio Department of Natural Resources, Division of Oil and Gas • OHIO811 • ONG Marketplace • OOGSC DECEMBER 2018
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At the Gulf Systems of a Kaiser Premium Urban X display are from left, Mick Maag, Daniel Valentine and Mark Sakach. The display was part of the Technical Conference and Oilfield Expo hosted by the Ohio Oil & Gas Association on Nov. 8 in Cambridge. Photograph by Michael Neilson / GateHouse Ohio.
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Shale Insight 2018 Concludes
Shale Insight 2018 concluded its conference in midOctober as the leading conference on American shale energy, industries, and jobs. The conference allows leaders in the gas and oil industry to network with the nation’s foremost leaders on shale development, power generation distribution, pipeline capital investment, energy driven manufacturing and alleviating energy poverty. Conference officials also note it was a chance to “learn from innovative thought leaders during three days of pre-conference workshops, technical and public affairs sessions, national keynote addresses, and a dynamic exhibit hall integrated with general and breakout session programming including new networking lounges featuring the major shale players.” Titled “Natural Gas: America’s Pipeline to Power Generation and Emerging Opportunities,” the conference featured Andrew Wheeler, who was the EPA Act-
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ing Administrator. Wheeler told attendees he is leading a “new EPA” focused on deregulation and streamlined permits. The Marcellus News noted that “While Wheeler spoke favorably of the shale oil and gas industry, he also included words of support for the coal industry (he’s a former coal lobbyist). President Donald Trump did the same thing two years ago when he addressed Shale Insight–hyping coal.” Wheeler, 53, began his professional career with the EPA in the early 1990s but later became a lobbyist for the coal industry. The Beaver County Times reported that “during his speech in the David L. Lawrence Convention Center, Wheeler reassured those in attendance that they have a ‘new champion’ in the White House in the form of Trump. “To that end, he hammered home several priorities previously put forth by the president: deregulation, bringing back the coal industry and streamlining the permitting process. “Speaking about the beleaguered state of the coal industry, Wheeler told the oil and gas executives ‘if we walk away from coal in the United States, we would be walking away from developing new, clean-coal technologies.’ ” Wheeler said the EPA has previously made regulatory or enforcement decisions based purely on what he called “hidden science.” The Times reported Wheeler said that lack of transparency created mistrust in the agency from the American public. Wheeler said this is why the agency going forward will only rely on science that is “publicly available.” “Americans deserve to know the science that is guiding EPA decisions that impact their lives, especially when it is funded with taxpayer dollars,” Wheeler said. The Pittsburgh Business Times reported that the EPA has finalized 28 separate instances of deregulation saving $1.6 billion and developing 49 more that could provide $100 billion in savings. Wheeler said that didn’t come at the expense of environmental quality: U.S. air pollution dropped 73 percent between 1970 and 2017 and energy-related carbon dioxide emissions has dropped 14 percent between 2005 and 2017; global emissions rose 20 percent. Industry-related greenhouse gas emissions dropped 2 percent between 2016 and 2017. The Business Times said Wheeler underlined a numShale Insight continued on page 7
DECEMBER 2018
Shale Insight continued from page 6
The Dominion Times reported that Wheeler said that in looking to future actions, “the EPA is considering whether to separately regulate methane since it’s already covered in the existing standard. It’s also considering whether to regulate the industry as one sector, given the differences between production and processing on one hand and storage and distribution on the other. “Also, he said, EPA is close to proposing a new Waters of the U.S. definition. The 2015, Obama administration proposal wasn’t about water quality but federal power, he said.” As part of the SHALE INSIGHT™ 2018 Conference, the Marcellus Shale Coalition’s (MSC) Research Collaborative hosted the annual Technology Showcase which provides suppliers of emerging technologies an opportunity to introduce their innovations to the natural gas producer, midstream/pipeline, downstream and service community. Introductions were given by Shawn Bennett, Deputy Assistant Secretary Office of Oil and Natural Gas, United States Department of Energy; and Eric Mahroum, Senior Advisor on Minority Business, Office of Ecober of EPA plans, including cutting how long EPA en- nomic Impact and Diversity. The keynote speaker was Joe Frantz, PE, Vice Presiforcement actions take from several years to, hopefully, within a calendar year. He said enforcement inspec- dent, Engineering Technology, Range Resources. tion reports timeline has been cut from 280 days to 60 days, which he said reduces uncertainty but also speeds improvements to the environment. The Pittsburgh Tribune-Review quoted Wheeler as noting that the country’s formula for success in energy production is to “incentivize innovation, not stifle it with regulation.” “As President Reagan once said, ‘government’s first duty is to protect the people, not run their lives.’ These principles are not new or unique. They are ingrained in America’s DNA, and they have a new champion of the Authorized Dealer of BARBCO Underground Construction Equipment White House, President Trump,” Wheeler said at the conference. The Dominion Post reported on some statistics quotWHATEVER YOU NEED TO GET THE JOB DONE ed by Wheeler: • The EPA has completed 28 deregulatory actions, providing savings of more than $1.6 billion. It’s developing another 49 actions that could save up to another $100 billion. www.TRS.RENT • 844.333.2754 • From 1970 to 2017, air pollutants fell by 73 percent while the economy grew by 260 percent. From 2005 to CANTON, OHIO 2017, U.S. energy-related emissions fell by 14 percent while emissions around the globe rose by 20 percent. • Since 1990, natural gas production more than dou• AUGER BORING MACHINES & AUGERS bled while natural gas production-related methane • CUTTING HEADS & CASING ADAPTERS emissions fell by 16 percent. During Trump’s tenure so far, from 2016 to 2017, CO2 emissions fell by 2.7 per• GUIDED BORING PILOT TUBE SYSTEMS cent, he said. • TUNNEL ATTACHMENTS FOR BORING MACHINES “These achievements flow from private sector inno• CRADLE BORING MACHINES vation with cooperation between Washington and the states,” Wheeler said. WO-10652717
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Women in Energy Network
Thousands of women are breaking ground in energy industry careers, and more than 4,000 of them are members of the Women’s Energy Network, founded in 1994 by Karyl McCurdy Lawson. The network just recently started an Ohio chapter. The vision of the Women’s Energy Network is to be the premier organization that educates, attracts, retains, and develops women working across the value chain. WEN’s mission is to provide networking opportunities and foster career and leadership development of those who work in the energy industries. WEN currently has more than 4,000 members across 20 chapters in Greater Albany, Greater Atlanta, Boston, Chicago, Colorado, Houston, South Louisiana, México, Greater New York City, Ohio, Greater Oklahoma, Permian Basin, Greater Philadelphia, Greater Pittsburgh, Susquehanna Valley (Penn.), North Texas, South Texas, Utah, Washington D.C., and West Virginia to satisfy networking and career development needs. More than 20 years later, WEN remains committed to providing high caliber events and networking to its diverse membership. The WEN Ohio chapter was formed in 2018 in response to a geographic expansion initiative within the tri-state area. The chapter membership is primarily comprised of individuals across Ohio who hold various positions within the energy sector, including management, development, technology, law, operations, accounting, finance, marketing and environmental. Chapter members discuss matters of importance to the energy industry at monthly programs and special events, and welcome others with a common interest of promoting women in the energy industry. Members receive exclusive access to mentoring, career center, group discussions, member-only networking events, expert speaking engagements and more. There are opportunities for volunteering, mentoring, leadership and attending career advancement training seminars. The WEN 2019 National Conference is scheduled for March 27-29 in Denver, Colo. Keynote speakers scheduled for the National Conference include the Honorable Dawn DeBerry Stump, commissioner of the United States Commodity Futures Trading Commission, and Dr. Christine Mann Darden, retired NASA, on Thursday, March 28; and Alice Jackson, president of Xcel Energy-Colorado, and Sandy Asch, founder of Organizational Excellence LLC, on Friday, March 29. Visit www.WomensEnergyNetwork.org for additional information. Story continued on page 11 8
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U.S. Home Heating Bills Likely to be Slightly Higher this Winter Stacy MacIntyre | Principal contributor, U.S. Energy Information Administration Heating degree days and average winter household expenditures for heating fuels heating degree days (weather) dollars per household 5,000 $5,000 history forecast
colder
heating degree days
4,000
$4,000
3,000
$3,000
2,000
$2,000
propane heating oil $1,000 electricity natural gas
1,000 warmer
0 12-13
13-14
14-15
15-16
16-17
17-18
18-19 winters
Source: U.S. Energy Information Administration, Short-Term Energy Outlook, Winter Fuels Outlook, October 2018 Note: The propane price is the weighted average of Midwest and Northeast prices. Prices for all other fuels reflect national averages.
ter in much of the country. More information about EIA’s expectations for winter fuels prices and expenditures is available in the Short-Term Energy Outlook supplement on winter fuels, released at noon today. EIA’s short-term projections of heating demand are based on the most recent temperature forecasts from theNational Oceanic and Atmospheric Administration (NOAA). NOAA’s forecast anticipates that the 2018–2019 winter will be 1% colder than last winter, which is close to the average of the previous 10 winters. Expenditures for Midwest households using propane as their primary heating source are expected to deU.S. Home continued on page 11
Most U.S. households can expect higher heating expenditures this winter (October through March) compared with last winter according to EIA’s Winter Fuels Outlook. Higher expected winter heating expenditures are mainly the result of higher prices for heating fuels, as temperatures are expected to be similar to last winU.S. total heating degree days in winter months (October through March) heating degree days 4,500 forecast plus 10% (cooler than expected)
4,000
NOAA-based forecast
3,500 actual heating degree days
3,000
0
forecast minus 10% (warmer than expected)
08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 winters
Source: U.S. Energy Information Administration, based on National Oceanic and Atmospheric Administration Climate Prediction Center.
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Source: U.S. Energy Information Administration, based on Census Bureau American Community Survey 2017
DECEMBER 2018
U.S. Home continued from page 10
cline because the Midwest, the region with the Heating Oil highest concentration of propane heating, is the U.S. average household winter heating oil U.S. average household winter heating oil only region expected to have warmer weather consumption price expenditures gallons (kWh) dollars per gal dollars this winter. 600 $7 $2,400 Because weather creates great uncertainty in $6 $2,000 winter energy forecasts, EIA’s Winter Fuels Out- 500 $1,646 $5 look includes projections for 10% colder and 10% 400 $1,600 $4 warmer scenarios. In the past 10 winters, actual 300 $1,200 $3 temperatures compared with NOAA’s Septem200 $800 ber forecast have been more than 10% colder $2 100 $400 once and more than 10% warmer three times. $1 The average household winter heating fuel 0 $0 $0 12-13 14-15 16-17 18-19 12-13 14-15 16-17 18-19 expenditures in EIA’s forecast provide a broad guide to expected heating expenditures. Fuel expenditures for a particular household will also Propane U.S. average household winter propane U.S. average household winter propane depend on the size and energy efficiency of that price expenditures home and its heating equipment, indoor tem- consumption gallons (gal) dollars per gal dollars $3.50 $2,400 perature preferences, and local weather condi- 800 tions. 700 $3.00 $2,000 The choice of primary heating fuel varies con- 600 $2.50 $1,528 $1,600 siderably by region, contributing to regional dif- 500 $2.00 $1,200 ferences in total expenditures. Natural gas is the 400 $1.50 most common space heating fuel in every region 300 $800 $1.00 except the South, where electric heating is more 200 $400 $0.50 prevalent. Heating oil is much more common in 100 $0 0 $0.00 the Northeast than in other regions, while pro12-13 14-15 16-17 18-19 12-13 14-15 16-17 18-19 pane is more common in the Midwest. Source: U.S. Energy Information Administration, Short-Term Energy Outlook, Winter Fuels Outlook, October 2018 Note: Winter covers the period October 1 through March 31.
Natural Gas U.S. average household winter natural gas U.S. average household winter natural gas consumption price expenditures thousand cubic feet (mcf) dollars per mcf dollars $28 $2,400 70 60
$24
50
$20
40
$16
30
$12
20
$8
10
$4
$400
$0
$0
0
12-13
14-15
16-17
18-19
$2,000 $1,600 $1,200 $644
$800
12-13
14-15
16-17
18-19
Electricity U.S. average household winter electricity U.S. average household winter electricity consumption price expenditures kilowatthours (kWh) dollars per kWh dollars $0.36 $2,400 12,000 $0.32
10,000
$0.28
8,000
$2,000
$0.24 $1,600 $0.20
6,000
$0.16
4,000
$0.12 $0.08
2,000
$0.04
0 12-13
14-15
DECEMBER 2018
16-17
18-19
$0.00
$1,181
$1,200 $800 $400 $0
12-13
14-15
16-17
18-19
OhioGas&Oil 11
Ohio Sen. Rob Portman
visits with Petta Enterprises in Cambridge, Ohio Ray Booth | GateHouse Ohio
On Nov. 2, U.S. Senator Rob Portman (R-OH) toured Petta Enterprises, a company in the oil and gas industry that specializes in waste hauling and transfer, brine sales, truck wash outs, and pad cleanup in Guernsey County. The company is growing and creating more jobs as a result of tax reform and regulatory policies that Portman has fought for in the Senate. Portman visited with workers on site and held an employee town hall, learned more about how the new technologies in use in Eastern Ohio are impacting the region’s economy, and discussed his efforts on tax reform and regulatory relief that are helping support Ohio businesses, families, and jobs. “Today’s employee town hall was a good, constructive discussion, and I enjoyed hearing about how the recent tax reform law is making a difference for Petta Enterprises,” said Portman. “I’ve visited more than 20 businesses around Ohio that have announced new investments in their businesses and their workers, including higher wages, bonuses,new equipment, and increased investment in workers’ benefits. In addition, more than 600 businesses across the country have announced similar investments specifically because of this tax reform law. This is exactly what Congress intended to accomplish when we crafted this new law, and I expect these terrific results to continue. I appreciated the feedback I received today, and I will continue working to improve the economy and help working families and small businesses succeed and flourish.” So far on his tax reform tour in 2018, Portman has visited Kroger, Worldpay Inc., Helping Hands, and the Sheffer Corporation in Cincinnati, the UH Rainbow Center for Women and Children and Tremco in Cleveland, the Fredon Corporation and Steris Corporation in Mentor, GKM Auto Parts in Zanesville, Wolf Metals in Columbus, Bruns General Contract-
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ing in Tipp City, Lima Pallet Company in Lima, Velvet Ice Cream in Utica, ProMedica in Toledo, the Bowery Project and the Ronald McDonald House in Akron, the YMCA in Youngstown, Ariel Corporation in Mt. Vernon, Dayton Children’s Hospital, hosted a roundtable with members of the Ohio Craft Brewers Association in Columbus, and hosted a roundtable with the North Canton Chamber of Commerce. At each event, Portman has heard examples of savings from the Tax Cuts & Jobs Act, including, investing in new plants and equipment, increasing wages, paying bonuses, increasing charitable giving, reinstating health care, expanding 401(k) benefits, and making additional contributions to employee pension plans.
Ohio Sen. Rob Portman, right, was in Cambridge on Nov. 2, visiting Petta Enterprises on North Third Street. Talking with him from left, Brian Petta, Bill Petta, Aiden Petta and Will Petta. Photo by Michael Neilson / GateHouse Ohio
DECEMBER 2018
OHIO COURT RULINGS CONTINUE
IN LEGAL BATTLES BETWEEN OVER SEVRED MINERAL RIGHTS David J. Wigham | Attorney
Hundreds of lawsuits between surface own owners and mineral ownown ers over ownership of valuable oil and gas rights are pending in Ohio, and important legal issues are still being sorted out by the Ohio courts. This is even more than two years after the Ohio Supreme of Ohio issued its landmark decision on September 15, 2016 in Corban v. Chesapeake Exploration, LLC, 2016-Ohio5796. Recall that Corban held that the 1989 version of the Ohio Dor-
mant Minerals Act (“1989 DMA”) could only be relied upon by surface owners in cases brought before June 30, 2006. The Court also held that the 1989 DMA was nothing more than an evidentiary mechanism that assisted in proving a claim for abandonment of minerals and did not automatically abandon and vest ownership of severed mineral rights in the surface owners at that time. As a result, surface owners must first follow the mandatory statutory notice procedure set forth in the 2006 version of the
Ohio Dormant Minerals Act (“2006 DMA”) before an abandonment case can be filed. A recent decision issued by the Ohio Court of Appeals for the Eleventh District illustrates the importance of understanding the individual components that constitute “mineral rights” and how these components can be severed and separately conveyed. The recent case of Thompson v. Custer, 2018Ohio-4476, involved a dispute between the surface owner (Custer) Ohio court continued on page 14
OHIO’S LEADING CHOICE IN OIL AND GAS LAW 222 South Main Street Akron, OH 44308 330.376.2700 121 North Market Street, 6th Floor Wooster, OH 44691 330.376.2700
Roetzel’s experienced Oil and Gas attorneys provide a wide array of legal services focused on landowner representation including: • Leasing and lease renewals, ratifications and amendments • Litigation, including: { Lack of production { Dormant Mineral Act { Marketable Title Act
• Pooling and unitization • Pipeline easements • Surface development • Mineral LLC’s • Royalty disputes
For additional information, contact Dave Wigham at dwigham@ralaw.com, Randy Moore at rmoore@ralaw.com, or Tim Pettorini at tpettorini@ralaw.com. RALAW.COM ROETZEL & ANDRESS, A LEGAL PROFESSIONAL ASSOCIATION
Gas & Oil Team Members Luke Palmer, Sara Fanning, Ben Fraifogl, Bret McNab and Pat Hanley
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Ohio court continued from page 13
and a mineral owner who claimed to own one-half of the minerals (Thompson). The producer, BP, signed an oil and gas lease with the surface owner (Custer) and initially paid a $3,900 per acre bonus for Custer’s one-half mineral interest. BP later reconsidered the title to the property and paid the rest of the bonus to Custer for the remaining half of the mineral, despite Thompson’s claim to this interest. In an earlier appeal in the same case, the Court of Appeals reversed the matter under the authority of Corbin, holding that the 1989 DMA did not apply and that the 2006 DMA contained the controlling procedure by which mineral rights could be abandoned or preserved. On remand before the trial court, Thompson brought additional claims for slander of title, conversion and unjust enrichment, essentially seeking to recover the lease bonus that BP paid to Custer for the mineral interest claimed by Thompson. Eventually, the trial court quieted title to the reserved minerals in favor of Thompson under the 2006 DMA, but dismissed Thompson’s claims seeking to recover the bonus paid by BP. On appeal, Court of Appeals cited to the important Ohio case of Eisenbarth v. Reusser, 2014-Ohio-3792. Eisenbarth is oft-cited as the first case in Ohio that describes the “bundle of sticks” that make up a severed mineral interest as follows: “five individual attributes of a severed mineral estate: right to develop (with ingress and egress), right to receive bonus payments, right to receive delay rentals, right to receive royalty payments and right to lease (known as the executive right).” Eisenbarth went on to hold that these attributes are separate and any one “stick” in the bundle of sticks can be severed and separately conveyed. Applying Eisenbarth to the facts of the case, the Court of Appeals found that Thompson had reserved both the right to lease and the right to a lease bonus when it reserved its one-half interest in the minerals. Thus, Custer did not own the right to lease Thompson’s half interest or the right to the bonus for this interest. However, the Court of Appeals went on to rule that Thompson had no right to the mistaken overpayment that BP paid to Custer under Custer’s lease with BP. BP never entered into a lease with Thompson, and any benefit to Custer came from BP. By the time this case was decided, Shale producers such as BP were no longer developing in this area. Therefore, Thompson’s leasing opportunity was gone. The result of this case certainly would have been different had BP developed this area and drilled horizontal Shale wells. Had this occurred, Thompson would have been able to assert trespass and conversion claims against BP for the withdrawal of Thomp-
14 OhioGas&Oil
son’s minerals without a lease, putting Thompson in an excellent position to demand a new lease and a bonus from BP. The Thompson v. Custer opinion, and its citation and analysis of Eisenbarth v. Reusser, illustrate something that most mineral owners do not always realize: that not only can a mineral interest be severed from the surface, but the five separate rights in the “bundle of sticks” that constitute a mineral interest can be separately conveyed or reserved. Thus, a careful review of the mineral title should be undertaken to ensure that these individual rights have not be severed or separately transferred. Some mineral owners have been surprised to discover that they own greater or fewer rights than were previously realized. This case also highlights the importance of retaining experienced oil and gas counsel to advise clients as to title and ownership of severed royalty and mineral interests. David J. Wigham is a second-generation Ohio oil and gas attorney with more than 26 years of experience in the industry. He is a shareholder at the law firm of Roetzel & Andress and maintains offices in Akron and Wooster, Ohio. He can be reached at 330-762-7969, or dwigham@ralaw.com.
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Guernsey County Community Development Corporation
Receives Donation to Purchase New Hybrid Van Ronald D. Gombeda | Guernsey County Community Development Corp.
The CDC was recently presented a donation check from Utica Resources Ventures, LLC to purchase a 2018 Chrysler Pacifica Hybrid that will be utilized by the CDC’s Veterans Medical Transportation program. The program is a free service offered to Guernsey County veterans and was created to transport veterans to medical appointments across Ohio. Service is available six days a week and on average the CDC will assist 15 to 20 veterans each month. The van is outfitted with the ADA compliant Revability wheelchair accessible system. This system will ensure comfortable and safe transportation for our passengers, and because it’s a hybrid, we will be saving money on our fuel costs, which are quite substantial.
Executive Director Ron Gombeda stated, “This purchase was an all out team effort that succeeded in purchasing the best van possible for the money we received. We all are so very grateful for the generosity bestowed upon us by Utica Recourses; the entire origination is absolutely wonderful.” Utica Resources Ventures, LLC is an oil and gas company locally based out of Marietta, Ohio and is very active in the local Utica Shale. The company prides itself on being engaged members of our area communities. For more information please visit www.guernseycountycdc.com or call 740-439-0020.
Pictured here (L to R) receiving the donation check are Arren Keith driver for the CDC’s VMT program, Melissa West VMT driver, Ron Gombeda CDC Executive Director, Frank Smendziuk Program Manager for Utica Resources, James Macquire Landman for Utica Resources, Levi Wade President of the CDC Board of Directors, Frank Toth CDC Transportation Supervisor, and Heather Neff CDC Development Director.
DECEMBER 2018
OhioGas&Oil 15
Belmont County
EMA Trailer Ribbon Cutting
On a cold November afternoon on the outskirts of St. Clairsville, the staff of the Emergency Management Agency (EMA) in Belmont County eagerly cut the ribbon on the county’s new state of the art emergency response vehicle. The process for this long-awaited milestone started more than a year ago when local active driller Ascent Resources held a training drill exercise with the EMA and other first responders in the county. At the end of the day, the team involved gathered inside a rickety school bus that was then serving as the county’s command center. It became clear once everyone was inside that there was not enough room to conduct a debriefing, so everyone filed back outside to discuss the day’s events. On the way out of the bus, the staff of Ascent Resources noticed the outdated communica-
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16 OhioGas&Oil
tions equipment and rusty desks. It was clear that the current county command center was not going to be able to make do any longer. Fast forward a couple of months, and Amanda Finn with Ascent Resources had raised nearly $50,000, donated from Ascent Resources along with help from fellow Utica producing companies Antero Resources and EQT, which was enough to purchase and outfit a new command center for Belmont County. During a ribbon cutting ceremony held on November 13, Finn shared that, “today was a long time coming, but I think the trailer turned out really well and will benefit not only Ascent, Antero and EQT, but the other producers active in the Utica, as well as the entire community it will be able to serve.” The newly acquired Fifth Wheel has 911 dispatch capabilities, a meeting area that can hold up to 20 people [with room to move], a small kitchen, two bathrooms with a shower, as well as flat screens and sleep quarters. While the vehicle will be based in St. Clairsville, it can be dispatched by any of the surrounding counties for shared use. Mike Chadsey with the Ohio Oil and Gas Association said at the ceremony, “this trailer is ready to roll, to serve the people of Belmont County, thanks to our member companies stepping up to provide the funds necessary to make it happen. We are so grateful for their ongoing commitment to the communities that they operate in.”
DECEMBER 2018
Belmont College Offers
Natural Gas Utility and Pipeline Field Skills Training Program Julie L. Keck | GTI
The Workforce Development and Community Education Department at Belmont College will be offering a Natural Gas Utility and Pipeline Field Skills Training Program at the Main Campus in St. Clairsville, OH. The four-week program begins on January 14, 2019 with classes running 20 consecutive weekdays from 8:00 am to 5:00 pm. The training program will blend classroom and hands-on field experiences to provide a basic understanding and awareness of natural gas, the natural gas utility and pipeline industry, associated equipment, procedures and operations. The classes are offered at no-cost for eligible students in West Virginia, southwestern Pennsylvania
and southeastern Ohio, thanks to funding from the Appalachian Regional Commission which covers the cost of tuition and program implementation. While the training is targeted at displaced coal workers, veterans, high school graduates, and other displaced workers in the Appalachian region are able to take advantage of the opportunity. Washington Greene County Job Training Agency, Inc. is the grant recipient and is the fiscal agent for the initiative. In order to qualify, students must take and pass a five-panel drug test, clear a criminal background check, possess an active driver’s license with a clear driving history, and have a high school diploma or Belmont College continued on page 18
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Belmont College continued from page 17
GED. All students who complete the program will receive a certificate of completion. This Natural Gas Utility and Pipeline Field Skills Training Program is designed to increase participants’ understanding of the gas utility and pipeline industry, assist building a stronger resume, and enhance the chances of being hired. A job fair with hiring companies will be held on the last day of class to allow students the opportunity to talk with potential employers. Spaces are still available and individuals are encouraged to register now. A program application form can be found on the GTI website at www. gastechnology.org/from-black-to-blue. For more information about the Natural Gas Utility and Pipeline Field Skills Training Program, call the Belmont College Workforce Development Office at 740-6959500. GTI is a leading research, development and training organization that has been addressing global energy and environmental challenges by developing technology-based solutions for consumers, industry, and government for more than 75 years.
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OHIO WELL ACTIVITY by the numbers
UTICA SHALE
MARCELLUS SHALE 16 6 7 23
52
Wells Permitted Wells Drilling Wells Drilled Not Drilled Wells Producing Inactive Plugged Total Horizontal Permits
Data as of 11/10/18
469 121 252 2075
2917
Wells Permitted Wells Drilling Wells Drilled Not Drilled Wells Producing Inactive Plugged Total Horizontal Permits
Source: Ohio Department of Natural Resources
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TOP COUNTIES WITH HORIZONTAL DRILLING ACTIVITY BY NUMBER OF SITES
1. Belmont County........ 593 2. Carroll County......... 526 3. Monroe County........ 455 4. Harrison County....... 430 5. Guernsey County...... 242 6. Noble County.......... 223 7. Jefferson County....... 205 8. Columbiana County...159 9. Mahoning County....... 30 10. Washington County... 22 11. Tuscarawas County.... 20 12. Portage County........ 15 Trumbull County........ 15 13. Stark County............ 13 14. Coshocton County....... 5 15. Morgan County.......... 3 Muskingum County...... 3 Holmes County........... 3 16. Knox County.............. 2 17. Ashland County.......... 1 Astabula County......... 1 Geauga County.......... 1 Medina County........... 1 Wayne County............ 1 I VARIOUS SSTAGES: PERMITTED DRILLING, ,D WELL SITESS IN PLETED PRODUCING, PRODUCINGPLUGGED, PLUGGED DRILLED, COMPLETED, SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF D L A 11/10/18
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DECEMBER 2018
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