June 2019
A Free Monthly Publication
OHIO SHALE INVESTMENT HITS $74 BILLION
ETHANE STORAGE SEEN AS
KEY TO APPALACHIAN REVITALIZATION IN THIS ISSUE: COLLABORATE! – guest editorial
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OhioGas&Oil
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Table of Contents JUNE 2019
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A Look Ahead Gas & Oil Events
G ROUP PUBLISHER
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Ohio Shale Investment Hits $74 Billion Since 2011
Bill Albrecht
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OOGA Welcomes Brad Miller, Director of Membership
EXECUTIVE EDITORS
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Today’s In Demand Jobs Week Tour
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Ethane Storage seen as Key to Appalachian Revitalization
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Collaborate! - Guest Editorial
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Ohio Court of Appeals Clarifies MTA and DMA Issues in Recent Oil and Gas Rights Cases
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Training Center to Provide New Opportunities
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Ohio’s Oil and Gas Industry Recognizes Teacher Appreciation Week
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Spotlight on Perry: Meet a Teacher who Rocks it
Beth Bailey bbailey@daily-jeff.com Ted Daniels tdaniels@the-daily-record.com
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ADVER TISING Paul Reynolds Cambridge, Ohio Office preynolds@gatehousemedia.com 740-439-3531 Aaron Bass Wooster & Holmes, and Ashland, Ohio Offices abass@gatehousemedia.com 330-264-1125 419-281-0581 Mindy Cannon Alliance & Minerva, Ohio Offices mcannon@the-review.com 330-821-1200 Jim Williams Kent, Ohio Office jim.williams@recordpub.com 330-298-2012
Ohio’s Oil and Gas Industry Offers a Wide Variety of Career Opportunities
CONTENT CO ORDINATOR
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Ohio Well Activity
Doris Sigg
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Horizontal Drilling Activity Graph
dsigg@the-daily-record.com
JUNE 2019
L AYOUT DESIG NER Phil Luks
pluks@recordpub.com
On The Cover:
“Ohio Gas & Oil” is a monthly publication. Copyright 2018.
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The Ohio Oil and Gas Association has teamed up with Ascent Resources, The Ohio Department of Education and Lt. Governor Jon Husted’s office to hold a tour of a well pad and drilling rig for students.
A Division of GateHouse Media Ohio 212 E. Liberty St. Wooster, OH 44691 330-264-1125 editor@spectrumpubs.com. JUNE 2019
A Look Ahead
Gas & Oil Events JUNE 25-26, 2019
OOGEEP SCIENCE TEACHER WORKSHOP STEM LESSONS IN OIL & GAS ENERGY EDUCATION Lafayette Hotel, Marietta, OH The goal of this workshop is to help foster energy education by connecting science education to the energy industry. During the workshop, each teacher will receive resource materials, classroom supplies, lesson plans, poster, maps, Science Standards, Benchmark Connections, internet links and activities, plus a few other special surprises! Seven learning stations will include hands-on experiments, background information, industry guest speakers, graphic organizer ideas, internet activities and career connections. This free teacher workshop includes: overnight accommodations, meals, curriculum, classroom supplies, material kits, “hands-on” sessions, a dinner cruise, a special oilfield tour, CEU credit documentation, an optional *Ashland University graduate credit, plus much more!
JULY 12-13, 2019 OFCA’S OHIO FIRE & RESCUE OFFICER DEVELOPMENT CONFERENCE OHIO FIRE & RESCUE OFFICER DEVELOPMENT CONFERENCE BY THE OHIO FIRE CHIEFS’ ASSOCIATION
Glenmoor Country Club 4191 Glenmoor Rd NW Canton, Ohio 44718
JULY 16-17, 2019 OOGEEP GEOLOGY TEACHER WORKSHOP GEOLOGY AND OHIO’S OIL AND GAS INDUSTRY Schoenbrunn Inn & Conference Center, New Philadelphia, OH Designed specifically for middle school and high school geology and earth science teachers, this workshop will connect Ohio’s Physical Geology Standards to hands-on lessons related to the crude oil and natural gas industry. Participating teachers will receive lesson plans, geological maps, digital resources, rock and mineral kits and other classroom supplies. This free teacher workshop includes: overnight accommodations, meals, curriculum, classroom supplies, material kits, hands-on sessions, an evening social gathering, a special field trip, CEU credit documentation and optional Ashland University graduate credits, plus much more!
JULY 16, 2019 OOGA SUMMER MEETING TELL A FRIEND Glenmoor Country Club 4191 Glenmoor Rd NW Canton, Ohio 44718
JULY 24-25, 2019
Hilton Columbus at Easton 3900 Chagrin Drive, Columbus, OH 2019 ARRI CONFERENCE 43219
JULY 15, 2019 OILFIELD PATRIOT AWARD DINNER Monday, July 15, 2019 5:00 PM
JUNE 2019
25th. The first day will feature presentations by experts in the science, policy, and implementation of reforestation on active mining sites, abandoned mine lands, and previously reclaimed land. The second day will include site visits to several projects in Ohio at various stages of the Forestry Reclamation Approach. Opportunities for networking and collaboration will occur throughout the conference. Registration Early registration is $125 until June 30th, 2019. After June 30th, registration increases to $150. Registration includes a buffet lunch, coffee and snacks on Day 1, and transportation and lunch for the field trip on July 25th. SAF continuing education credits pending, we anticipate approximately 8 hours. Vendor registration costs $225 and includes a display booth space at the Civic Center, and one individual registration. Partners The 2019 conference will be a production of several important partners, including the Ohio Department of Natural Resources, USDA/ Natural Resources Conservation Service, and Ohio University in Athens, Ohio.
JULY 29-30, 2019
2019 CONNECTIONS TO EDUCATION CONFERENCE RESTORING PRODUCTIVE FOROHIO ASSOCIATION FOR CAESTS ON MINE LANDS IN OHIO REER AND TECHNICAL EDUCAPritchard Laughlin Civic Center, TION’S 2019 CONNECTIONS TO Cambridge, Ohio EDUCATION CONFERENCE
The annual Mined Land Reforesta- Hilton Columbus at Easton tion Conference will take place in 3900 Chagrin Drive, Columbus, OH Cambridge, Ohio, on July 24th and 43219 OhioGas&Oil
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Ohio Shale Investment
Hits $74 Billion Since 2011 MARK WILLIAMS | The Columbus Dispatch, GateHouse Ohio
Investment in the energy-rich shale sector in eastern Ohio continues to grow, reaching $74 billion since 2011, according to a report commissioned by JobsOhio. The quarterly report, done by Cleveland State University’s Energy Policy Center at the Maxine Goodman Levin College of Urban Affairs, shows that about two-thirds of that investment has been in drilling, land acquisition, building roads and other expenses tied to the “upstream” portion of oil and gas production. The rest has been spent on activities such as collecting and gathering the oil and gas along with transmission lines and investments in natural-gas power plants and other uses. “The landscape for American energy looks vastly different now than it did just five or 10 years ago, and that is largely due to the resources being unlocked in the Ohio Valley,” said Matt Cybulski, director of energy and chemicals at JobsOhio, in a statement. The study represents investment through the first half of 2018. It comes just weeks after researchers at IHS Markit released estimates that show by 2040, the Utica and Marcellus shale regions in Ohio, West Virginia and Pennsylvania will supply 45% of U.S. natural gas production. That’s up from 31% this year. Production of natural-gas liquids ethane, propane and butane is expected to double during this period, accounting for 19% of the nation’s total. The latest data shows production from the region, which is primarily natural gas, continues to surge. Oil production in the final three months of 2018 was 5.8 million barrels, a 38.6% increase from the same period in 2018, according to the most recent report from the Ohio Department of Natural Resources.
Gas production hit 663.5 million cubic feet, a 32 percent increase from the final three months of 2018. The report shows 2,575 horizontal shale wells, with 2,241 reporting oil and gas production. The Cleveland State report is based on investment data by companies working in the region. In the first half of 2018, much of the investment was focused on Belmont, Monroe and Jefferson counties on the state’s eastern edge. Meanwhile, additional investment is being made to further develop the region’s pipeline system to get resources to markets. But what is attracting the attention of Andrew Thomas, the executive in residence at the Energy Policy Center, and research associate Mark Henning is how the resources will be used and whether it will be in the state. A $700 million Cleveland-Cliffs iron-making plant set to open in Toledo next year is using natural gas to make hydrogen, they said. A similar $500 million project being developed in Ashtabula County in northeast Ohio by Petmin USA will do the same thing. Meanwhile, the state continues to wait on whether Thai chemical company PTT Global Chemical and its South Korean partner, Daelim Industrial Co., will proceed with a giant proposed petrochemical plant in Belmont County that would depend on ethane. “Creative uses are going to come out of this cheap natural gas we have in this in area,” Thomas said. Their report does not track job totals tied to shale, and Thomas said it is something that needs to be done. “We’re continuing to see that the center of gravity for natural gas is moving from the Gulf (of Mexico) coast to Appalachia,” he said. mawilliams@dispatch.com @BizMarkWilliams
“We’re continuing to see that the center of gravity for natural gas is moving from the Gulf (of Mexico) coast to Appalachia”
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OOGA Welcomes Brad Miller,
Director of Membership LYNDSEY KLEVEN | OOGA Communication Manager
JUNE 2019
velop this role within the OOGA and building our membership,” said Matthew Hammond, executive vice president of OOGA. “It is long overdue for OOGA to have someone focused solely on our membership and strengthen affiliations with our organization as we stand to present a unified voice for the industry.” We are currently in a position to grow our membership and maximize revenue. Over the past few years membership has changed to reflect the concentration of the Utica play, consolidation of both shale and conventional operators, service companies and other entities within membership classifications.
Connolly, Hillyer, & Ong, Inc. Attorneys and Counselors at Law Since 1964
Brad L. Hillyer • James J. Ong Brett H. Hillyer 201 N. Main St., P.O. Box 272 • Uhrichsville, Ohio 44683
(740) 922-4161 • (740) 922-2229 Fax
139 E. Main St., P.O. Box 71 • Newcomerstown, Ohio 43832 CJ-10678022
In early April the Ohio Oil and Gas Association welcomed Brad Miller to our staff in the role of Membership Director. The OOGA is excited to have Brad in this newly created position with the goal of driving new membership and providing current members a go-to membership resource person. Brad Miller, As Membership DiOOGA Membership Director rector Brad will focus on recruiting new members, some in categories the organization has not previously placed a focus on targeting. Another component of this role will be retaining current members to ensure they are recognizing value of their membership and educating them on the work your Association is doing on your behalf. This is especially vital as we’re entering a period of consideration for dues restructuring. Finally, Brad will be assisting in driving sponsorships for all of our events. “I am excited for this opportunity to help the Ohio Oil and Gas Association bolster its membership. I am eager to get to know current members and develop strategies for growing this Association,” said Miller. Brad’s background and experience at the Ohio House of Representatives lends him to be a strong fit for the OOGA and this role. Following his graduation from the Ohio State University, Brad began working at the House as a communications assistant. He transitioned to the Ohio House Republican Organization Committee (OHROC) where he was director of communications for more than four years. Most recently he was press secretary/deputy communications director for the Ohio House Speaker and Republican caucus. “I am greatly looking forward to seeing Brad de-
(740) 498-5196 • (740) 498-5197 Fax hillyerlaw@hillyerlawoffice.com
OhioGas&Oil
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Today’s
In demand jobs week tour ucation and Lt. Governor Jon Husted’s office to hold a tour of a well pad and drilling rig for students at Harrison Hills Jr/Sr. High School during In Demand Jobs Week. In Demand Jobs Week, [was] from May 6-10 and is a statewide celebration of jobs, industries, and skills that are in demand in Ohio. Ohio’s oil and gas industry took this as an opportunity to share with local students and educators up close a local well pad with an active drilling rig in Harrison County. Amanda Finn, with Ascent Resources shared that, “we are so very proud of the work we do here in Harrison County and we happily jumped at the opportunity to showcase one of our locations to students that, perhaps, will one day hopefully be part The Ohio Oil and Gas Association has teamed up of our industry in Ohio.” with Ascent Resources, The Ohio Department of EdWith ever increasing operations in Ohio, Ascent Resources is the most active producer in Ohio and is the number one producer of natural gas in the state. “Today’s” continued on page 7
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“Today’s” continued from page 6
“It takes a team of people working together towards a common goal to pull a tour of this scope off,” shared Mike Chadsey with the Ohio Oil and Gas Association. “Our ongoing goal is to continue to bring awareness and excitement around our industry and today’s tour with the school was part of the objective, and we could not have done that without our partners at Ascent and the Lt. Governor’s office.” Once on the pad, the students put on their safety gear and were split into two groups to explore the operations. The first group climbed up the rig stairs to learn about how a well is drilled and the various jobs available with a natural gas producer, while the second group walked around the pad location to learn about the various supplies, contractors and vendors that it takes to put a well into production. Then the two groups switched. During the tours, the students asked a wide array of questions ranging from technical aspects of the operation, different career opportunities, and steps they need to take to get there. Many expressed an interest to pursue a career in the industry to the several of the rig crew members on location.
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Ethane Storage
seen as key to Appalachian Revitalization THE ASSOCIATED PRESS | Copyright 2019
Plans are underway in Appalachia to create two underground facilities to store ethane, a byproduct of natural gas drilling seen as integral to revitalizing a region still struggling from the loss of industrial and manufacturing jobs decades ago. Experts say the availability of storage facilities will help the tristate region of eastern Ohio, southwestern Pennsylvania and northern West Virginia attract petrochemical plants that turn ethane into raw plastic and, the hope is, attract manufacturing companies to make products ubiquitous to modern life. Energy Storage Ventures is awaiting approval of state permits to construct an underground facility to store ethane and other natural gas liquids, said David Hooker, the Colorado-based company’s president. Meanwhile, Appalachia Development Group in Charleston, West Virginia, wants to build a much larger storage facility somewhere in the tristate region. Company President and CEO Steven Hedrick said the creation of a petrochemical and plastics industry could lead to billions of dollars in investment and tens of thousands of jobs in the coming years. “The people of Appalachia deserve this opportunity,” Hedrick said. Technological advances in hydraulic fracturing, better known as fracking, have helped fuel an oil and gas boom in Appalachia and southwest states like Texas. It has also provided an abundant supply of ethane that is driving the expansion of the petrochemical industry in its epicenter along the Gulf Coast of Texas and Louisiana, where most ethane storage also is located. Ethane is a gas when brought to the surface along with methane, the far more abundant “dry” natural gas used to cook our food and heat our homes. Ethane is colorless, odorless and, like methane, highly combustible. It becomes a liquid when super-cooled at processing plants called fractionaters that separate out other natural gas liquids. While most ethane produced
This April 18, 2019 file photo shows part of a petrochemical plant being built on the banks of the Ohio River in Monaca, Pa., for the Royal Dutch Shell company. The plant, which is capable of producing 1.6 million tons of raw plastic annually, is expected to begin operations by 2021. (AP Photo/Gene J. Puskar, File)
today is shipped out of the region via pipelines, a portion is “rejected” and winds up in the natural gas stream. “Cooking eggs with ethane in the morning is like cooking eggs with hundred-dollar bills,” Hedrick said, paraphrasing U.S. Energy Secretary Rick Perry. “It gets the job done, but it doesn’t make sense.” Industry experts say there is enough potential ethane production in Appalachia’s Utica and Marcellus shale fields to supply four or five petrochemical plants in the region. They also say underground storage is vital to providing an uninterrupted supply to those plants. “When you look at the ethane market that is developing, I just can’t imagine those plants operating without storage in that market,” Energy Storage Ventures’ David Hooker said. Energy Storage Ventures’ subsidiary, Mountaineer NGL Storage, hopes to begin construction along the Ohio River as early as this summer. Hooker said initial plans call for building a facility capable of storing 1.5 million barrels of natural gas liquids, primarily “Ethane” continued on page 9
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“Ethane” continued from page 8
ethane but also propane and butane. The company will use fresh water to carve out space in a salt formation more than 6,500 feet underground. Resulting brine water from construction will be transported across the Ohio River via pipeline for use at an alkaline plant in West Virginia, Hooker said. Appalachia Development Group is considering sites in the region for its Appalachia Storage Hub and Trading Facility, which Hedrick said would be capable of storing 10 million barrels of natural gas liquids. The first signs of the emergent ethane petrochemical industry are clearly visible northwest of Pittsburgh, near Monaca, Pennsylvania, where thousands of workers are building an ethane “cracker” plant for Royal Dutch Shell capable of producing 1.6 million tons (1.45 million metric tons) of raw plastic annually. The plant’s ethane supply will come from Shell’s own pipeline system connected to processing facilities in Ohio and Pennsylvania, negating the need for bulk storage. Petrochemical plants without those resources will need ready access to ethane stored underground, according to experts. That includes a much anticipated cracker plant for ethane conversion that a
JUNE 2019
partnership between two Asian companies is considering building in eastern Ohio’s Belmont County. The partnership between Thailand’s PTT Global Chemical and South Korea’s Daelim Industrial has received clean air and water permits from the state but hasn’t fully committed to construction, despite having already spent more than $100 million on planning, according to partnership spokesman Dan Williamson. Industry analysts and backers of the two storage hubs say the availability of ethane storage and the decision whether to build the plant are intertwined. “To me, the key is PTT Global,” Hooker said, adding that he “can’t imagine” the plant operating without ethane storage. He said he’s had conversations with PTT-Daelim. Appalachia Development Group’s Hedrick agrees with Hooker’s assessment. Without the PTT-Daelim partnership or another regional petrochemical plant, Hedrick said his storage facility project probably won’t be viable. “The two go hand in glove,” Hedrick said. “We need both at the same time. Without customers, it’s awfully hard to make a business case.”
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Collaborate! Guest Editorial
GREG KOZERA | Shale Crescent USA
We just got back from our spring vacation to Florida and Walt Disney World last week with our youngest son and his family. My wife and I are annual pass holders so I never really noticed what the cost of a oneday admission had become. During Easter Week, a one-day ticket to the Magic Kingdom costs $139.00. Thousands of people from all over the world were at the Magic Kingdom last week. The ride lines were long with an hour-long wait being common. People still happily paid the $139 admission price. Walt Disney World is not just about the rides or shows. The Disney folks find ways to create a magical experience for their guests. They always seem to find ways to do the little things and sometimes big things that go above expectations to delight their guests. On our visit, Space Mountain, an indoor high- speed roller coaster, broke down during the time we were scheduled to ride with our “fast pass.” We immediately got a bonus fastpass on our smartphone for any ride at any time we chose. Our grandkids used it to ride Space Mountain later in the day after it was back in operation. Lynnda and I picked a different, tamer ride. At Shale Crescent USA, we cannot create a Disney experience but we can exceed our prospects expectations. At the World Petrochemical Conference (WPC) when Jerry James and Wally Kandel did the Shale Crescent USA lunch presentation to a packed room, there was an energy & excitement rarely experienced at a technical Conference. No one was ready to leave at the end of the presentation. Almost everyone stayed for Q&A to get additional information. Some attendees stayed for over an hour. The point is, your customers or prospects and the audiences we all speak to won’t always remember what we said or what we did, but they will always remember how we made them feel. What about you and your business? How do you make your prospects and customers feel? Are you memorable? Will they want to come back? Are they willing to pay you extra like Disney? I love it when one of our prospects says “Wow, we had no idea you could help us like you have.” Or, “We are coming to The Crescent because of the information you provided and what you have done for us.” We
know we are creating value. One of the best ways to create these types of experiences for prospects or customers is through collaboration. Collaboration is working with another individual or group of people to create or produce something. Collaboration is not the leader telling people what to do or how to do something. A good leader knows they are not always the smartest or most experienced individual. They also know a group is smarter and has more expertise than an individual. A smart leader is humble enough to know there is a lot they don’t know. Collaboration is a creative process. It is about brainstorming and sharing ideas. They are no bad ideas. Some ideas may seem not to make any sense at the time until someone adds something to it. One idea may get someone else in the group to come up with an idea or solution that does work. Collaboration requires trust, creativity, open mindedness, willingness to share and effective communication. If done properly the result is better than any individual could have achieved alone. If you are the leader and want to be involved in the process, I encourage you to be the facilitator and not the idea person. Help your people to work together. Draw out their ideas. Keep them focused and moving forward. Make sure everyone is involved. No idea or individual can be put down or laughed at. You should clarify and confirm where your team is and help to summarize the final result. Does collaboration really work? When I do a leadership workshop, one of the teambuilding exercises I do is to have groups build a tower using spaghetti and marshmallows. It is always done exactly the same way so I can compare groups. I have had hundreds of individuals and teams do this exercise in the last 15 years. The tallest tower ever built was by a group of 6 Desk & Derrick Club women in Charleston a number of years ago. They built it so solid that they carried it around the ballroom. I asked, “Who in your group was the leader?” They looked at me in surprise and responded, “WE COLLABORATED.” At Shale Crescent USA collaboration is the norm. The Shale Crescent USA pocket marketing booklet we put together for WPC took 3 hours to develop with 5 Shale Crescent team members collaboratKozera continued on page 11
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Kozera continued from page 10
ing. It was a hit at WPC and all the conferences and meetings we have attended since. It gets people’s attention and communicates a simple powerful message. I routinely work with Tom Crooks of the Stonewall Group, who is part of our Executive Com-
mittee and Nathan Lord, our Business Manager on marketing and sales ideas for Shale Crescent USA. The result is always far better than anything I could develop on my own. None of us is as smart as all of us. As smart as we might be, we
don’t know everything. I know that I’m not “the brightest bulb.” If you have a tough problem to solve or want to grow your business, take advantage of the smart people in your organization and their collective intelligence. If you are the leader, you don’t want to be the answer person or chief problem solver. Be the leader and teach your people to collaborate. Thoughts to ponder. © 2019 Shale Crescent USA Greg Kozera, gkozera@shalecrescentusa.com is the Director of Marketing and Sales for Shale Crescent USA. He is a professional engineer with a Masters in Environmental Engineering who has over 40 years’ experience in the energy industry. Greg is a leadership expert and the author of four books and numerous published articles.
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Ohio Court of Appeals Clarifies
MTA and DMA Issues in Recent Oil and Gas Rights Cases DAVID J. WIGHAM | Attorney
In a series of opinions following the recent Supreme Court of Ohio decision in Blackstone v. Moore, 2018-Ohio-4959, the Seventh District Court of Appeals has ruled that the Marketable Title Act (“MTA”) and the Dormant Mineral Act (“DMA”) apply to both severed mineral or severed royalty interests. In other words, surface owners seeking to terminate reserved mineral or royalty interests have two statutes to use as a possible basis for cancelling these types of interests. Likewise, reserved mineral holders may seek to preserve their severed mineral and royalty interests under both statutes. In general, the MTA calls for an automatic extinguishment of property interests created prior to a surface owner’s chain of title to property, if the surface owner has an unbroken chain of title for more than 40 years after the prior property interest was created and there are no specific references to the prior interest in the surface owner’s chain of title. In Blackstone, the Supreme Court applied the MTA to an oil and gas royalty interest and ultimately held that it was preserved. The Seventh District had previously held in Pollock v. Mooney, 2014-Ohio-4435, that the MTA applies to extinguish or preserve all interests, including oil and gas interests. However, that issue recently had been challenged because of a perceived conflict between the MTA and DMA, which led to some trial court rulings holding that the MTA did not apply to extinguish mineral interests. Under the DMA, if no “savings events” apply to the mineral interest, a surface owner who follows the mandatory notice procedure and other requirements in the DMA may have dormant mineral interests deemed abandoned. 12 OhioGas&Oil
The DMA also allows mineral holder to forever preserve their interest from being abandoned, and, significantly, allows for one mineral owner to preserve as to all mineral owners. The Seventh District in Greer v. Frye, 2017-Ohio4035, has already ruled that the DMA applies to both mineral interests and royalty interests and can be used to have both types of interests preserved or declared abandoned. Since December 13, 2018, when the Supreme Court issued its decision in Blackstone, the Seventh District has issued several rulings that followed Blackstone. For example, in Miller v. Mellott, 2019-Ohio-504, the Seventh District held that both the MTA and DMA apply to mineral interests, and therefore, the trial court erred in holding that the MTA could not be applied to extinguish a mineral interest. Likewise, in Soucik v. Gulfport Energy, 2019-Ohio491 (February 7, 2019), the Seventh District applied both the MTA and the DMA to reverse a trial court ruling that terminated various reserved mineral interests. Finally, in Stalder v. Bucher, 2019-Ohio-963 (March 13, 2019), the Seventh District make it clear that the oil and gas interest was subject to both the MTA and DMA. In all three cases, the Court reviewed both the MTA and the DMA and applied the separate requirements of each statute to determine the validity of the oil and gas interests in question. Regarding the MTA, the surface owner must hold an unbroken 40-year chain of title based on a “root of title” deed that creates the interest upon which marketability is being determined. For example, if the surface owner’s root of title deed contains a mineral reservation, the MTA cannot be used to extinguish the interest. MTA continued on page 13
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MTA continued from page 12
Regarding the DMA, the Seventh District has been also focusing on the surface owner compliance with the mandatory notice procedure. In Shilts v. Beardmore, 2018-Ohio-863, the Seventh District held that surface owners must use “reasonable diligence” in attempting to locate heirs before they can skip the certified mail requirement and serve publication. And then in Sharp v. Miller, 2018-Ohio-4740, the same court ruled that there is no “brightline rule” as to what efforts constitute “reasonable due diligence” and a surface owner’s reasonable diligence will be determined on a case-by-case basis. Id. at ¶ 17. Finally, in Miller v. Mellott, 2019-Ohio-504, the court of appeals then determined that, because the surface owners failed to submit any evidence of their efforts undertaken to identify the names and addresses of mineral holder’s heirs, the surface owners failed to comply with the DMA notice requirements, and therefore the their abandonment notice was legally ineffective. In short, although Ohio law regarding the termination and preservation of mineral rights
is still evolving, the right and obligations of surface owners and mineral holders under the MTA and DMA are becoming more clear, with the rulings in Miller v. Mellott, Soucik v. Gulfport Energy, and Stalder v. Bucher. Nevertheless, surface owners and mineral owners continue to face significant challenges in disputes over ownership of valuable mineral interests. Under either statute, litigation is usually needed to “quiet title” to the disputed mineral or royalty interest before ownership of the interest can be recognized. This uncertainty and the need for litigation highlights the importance of retaining an experienced oil and gas attorney to advise clients with regard to the abandonment, preservation and the ownership of mineral interests. David J. Wigham is a second-generation oil and gas attorney at the firm of Roetzel & Andress, with more than 25 years of experience in the industry. He maintains offices in Akron and Wooster, Ohio, and can be reached at 330-762-7969 or dwigham@ralaw.com.
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Training Center
to Provide New Opportunities Weirton Daily Times
Industry and development officials say the Ohio Valley will be in need of approximately 3,500 skilled welders in the coming years in order to meet the needs of a growing natural gas industry. The problem now is there currently are not enough residents to fill those prospective jobs, even if individuals are encouraged to move here for some of those opportunities. That’s why it has become even more important for our local educational outlets to develop more industrial-focused coursework. A big step toward a solution for the problem was announced this week as the Business Development Corp. of the Northern Panhandle and West Virginia Northern Community College unveiled plans to develop a new training center in Weirton particularly focused on welding programs. The project received support from WesBanco, which
contributed $5,000 toward the effort. WVNCC has been working for some time with our local high schools, and those programs look to be growing. With the training center, there now will be an opportunity for those who may be looking to continue previous education, or maybe even step onto a new career path, to receive certification. College officials say there will be a tiered setup for the curriculum, with students able to go through as many levels of certification as they feel necessary. As natural gas continues to have an impact, and hopefully other industries make their way into our region, new educational programs will be needed to provide opportunities for our residents looking for employment. Hopefully, this is just the first step of many such programs as we continue to reshape the future of the Ohio Valley.
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Ohio’s Oil and Gas Industry
Recognizes Teacher Appreciation Week OOGEEP Announces Free Summer Teacher Workshops In honor of National Teacher Appreciation Week 2019, the Ohio Oil and Gas Energy Education Program (OOGEEP) would like to thank the thousands of teachers who have taken part in the organization’s award winning summer workshops, and to remind educators that registration is now open for the 2019 sessions. The STEM teacher workshop is scheduled for June 25-26 in Marietta, and the geology workshop will be held July 16-17 in New Philadelphia, Ohio. Each year OOGEEP hosts a series of summer workshops which provide Ohio teachers with insight into real-world applications of STEM and geology lesson plans. These workshops help teachers connect Ohio science educational requirements to an energy industry that has a significant energy and economic impact to the state and all Ohioans. “Ohio’s natural gas and oil industry thanks our teachers for their commitment to their students, their communities and their profession.” OOGEEP’s Executive Director Rhonda Reda said, “We are thankful to work together with educators who encourage our future workforce and we look forward to serving as judges during the Ohio Academy of Science’s State Science Day on Saturday, May 11.” OOGEEP’s curriculum, titled STEM Lessons in Oil and Gas Energy Education, includes lesson plans and hands-on science labs. The curriculum demonstrates the importance of STEM in areas such as
geology, physical science, environmental science, engineering and chemistry, and why they play an important role in energy development. These workshops provide teachers with multiple hands-on learning stations, a forum to share best practices on how they educate their students, and an opportunity to participate in a variety of related field trips. Through the generosity of Ohio’s oil and gas producers, there is no cost for teachers to attend. In addition, all attendees receive a wide variety of free resource materials, lab supplies, lesson plans, posters, maps, rock and mineral kits, science standards, benchmark connections, internet resources and activities that can be utilized directly in their classroom. The workshops also provide an opportunity for continuing education credit and an optional graduate credit through Ashland University. Registrations for both workshops are now open and can be found at http://www.oogeep.org/teacherstudents/. The Ohio Oil and Gas Energy Education Program (OOGEEP) is a non-profit statewide education and public outreach program. Created in 1998, OOGEEP provides a variety of programs throughout the State of Ohio. These programs primarily focus on teacher workshops, scholarships, science fair, firefighter training, industry training, career and workforce development, research and guest speaker programs.
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CALL YOUR LOCAL OHIO GAS & OIL SALES REP. TODAY SEE PAGE 3 FOR MORE INFO
JUNE 2019
Spotlight on Perry:
Meet a teacher who rocks it ERIC POSTON | GateHouse Ohio When Craig Whitaker was little he thought rocks were pretty cool. He used to collect them in a wagon and wheel them out to the street to try to sell them. Now Whitaker is a physical geology teacher at Perry High School, though it took him a few years to figure out his career path. “It wasn’t until I got into college and found out I really like rocks,” Whitaker said. He attended Kent State University for a Bachelor of Arts in Earth Science and then went on to be an environmental consultant in the Cleveland area for three years. Eventually, he decided he wanted to move back to Perry, where he grew up. First, he furthered his education degree and obtained a Master of Science in Geosciences from Mississippi State. Now Whitaker is in his 16th year of teaching at Perry. Pipeline Award Recently he was awarded the 2019 Pipeline Award from the Ohio Oil and Gas Energy Education Program (OOGEEP). The award was presented during OO-
GEEP’s presentation at the Ohio Oil and Gas Association’s annual industry meeting. Whitaker is the sixth recipient to receive the industry’s annual award, which is given out each year to an individual who has made a positive educational impact in the state.
Craig Whitaker in classroom
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OhioGas&Oil 17
Ohio’s Oil and Gas Industry
Offers a Wide Variety of Career Opportunities New Career Guide and Video Series Offers Look at In-Demand Jobs in the Natural Gas and Oil Industry As we celebrate “In-Demand Jobs Week” in Ohio, the Ohio Oil and Gas Energy Education Program (OOGEEP) wants Ohio students and jobseekers to know that there are more than 75 different rewarding and high-demand careers available in Ohio’s natural gas and oil industry. In-demand jobs are defined as jobs that have a sustainable wage and a promising future based on the projected number of openings and growth. “In 2011, our industry employed around 14,000 Ohioans, and today that number has dramatically increased to nearly 200,000, thanks to the ongoing development of the Marcellus and Utica Shale formations,” Rhonda Reda, OOGEEP Executive Director said. “As a result, workforce development remains a priority for our industry.” OOGEEP recently released a new Career Guide LeROI Gas Compressors by Gardner Denver is one of the world’s leading manufacturers of compressed gas systems. We have built a reputation as a manufacturer of choice and an industry leader. We are seeking a Senior Product Specialist to work within the European Market.
The ideal candidate will have • Bachelor’s degree in Engineering • 4 years’ experience within the compressor industry • Experience in the natural gas industry is also preferred. For a full job description and application information, go to https://ct2.co/ProdSpec-GD
and an online Career Video Series that highlights the in-demand careers in Ohio’s natural gas and oil industry including diesel mechanics, welders, lease operators, land surveyors, CDL truck drivers, derrickhands, geologists, petroleum engineers and many more. As the demand for employees in the industry increases, so does the need for this energy sector to continue to foster relationships between Ohio’s education community and our local natural gas and oil industry. Today, OOGEEP is working with more than 90 Ohio colleges, universities, and career and technical schools that offer training programs in more than 75 different career paths. In addition, OOGEEP will be announcing another 65 scholarship winners to students pursuing careers in the natural gas and oil industry. To learn more about the new “Oil and Gas Careers In Ohio” guides and video series, as well as a list of educational and training programs, visit http://www.oogeep.org/industry-workforce/ careers/. The Ohio Oil and Gas Energy Education Program (OOGEEP) is a non-profit statewide education and public outreach program. Created in 1998, OOGEEP provides a variety of programs throughout the State of Ohio. These programs primarily focus on teacher workshops, scholarships, science fair, firefighter training, industry training, career and workforce development, research and guest speaker programs.
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JUNE 2019
OHIO WELL ACTIVITY by the numbers
UTICA SHALE
MARCELLUS SHALE 23 9 13 21 1 67
Wells Permitted Wells Drilling Wells Drilled Not Drilled Wells Producing Inactive Other Total Horizontal Permits
Data as of 5/11/19
479 157 258 2185
3079
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........ 642 2. Carroll County......... 527 3. Monroe County........ 487 4. Harrison County........470 5. Guernsey County...... 265 6. Noble County.......... 235 7. Jefferson County....... 223 8. Columbiana County... 161 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 5/11/19
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The U.S. Energy Information Administration collects, analyzes, and disseminates independent and impartial energy information to promote sound policymaking, efficient markets, and public understanding of energy and its interaction with the economy and the environment. www.eia.gov
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