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PUBLISHERS Andrew S. Dix
G.C. Dix II
David Dix
EXECUTIVE EDITORS Lance White
Roger DiPaolo
Ray Booth
Rob Todor
REGIONAL EDITORS Kimberly Lewis
Erica Peterson
Cathryn Stanley
Niki Wolfe
Judie Perkowski
Table of Contents
ADVERTISING DIRECTORS Rhonda Geer
Harry Newman
Kim Brenning
Jeff Kaplan
Janice Wyatt
Jeff Pezzano
ART DIRECTOR Pete Kiko
DIGITAL CONTENT MNGR Brad Tansey
5
Playing Lease ‘Poker’
6
Lt. Gov. Visits Drilling Rig
9
Safety First
10
Training for Emergencies
12
Business Potential
15
Employment Outlook Strong
16
Important Oil & Gas Ruling
19
Energy Briefs
20
Billions Currently Invested
22
Mid-Year Evaluation of Industry
25
State’s Plan Questioned
26
Energy Bill Freezes Mandates
28
Gulfport Donates to Foundation
30
Workshops Aim to Educate
Bill Dannley / Leasemap Ohio
Judie Perkowski / Dix Communications Kristen Tomins / Dix Communications
OTTAWA
MORROW ORROW
GN
KNOX
FRANKLIN LIN
FAIRFIELD
PERRY
HLAND
PIKE
VINTON
Sophie Kruse / Dix Communications
Coverage Area: MAHONING
COLUMBIANA
CARROLL
HARRISON
GUERNSEY BELMONT
MONROE
WASHINGTON ATHENS
MEIGS JACKSON
Marc Kovac / Dix Capital Bureau
MORGAN
HOCKING ROSS
UM
NOBLE
PICKAWAY AY
Marc Kovac / Dix Capital Bureau
PORTAGE
G
IN
SK
U
M
Judie Perkowski / Dix Communications
STARK ST
COSHOCTON
LICKING
FAYETTE
SUMMIT
YNE WAYNE
HOLMES
ARE UNION DELAWARE
Laurie Huffman / Dix Communications
JEFFERSON
MARION
David Wigham / Attorney
GEAUGA
TUSCARAWAS
DIN
RD FO AW CR
MEDINA ASHLAND
WYANDOT
MADISON
“Gas & Oil” is a monthly publication jointly produced by Dix Communication newspapers across Ohio. Copyright 2014.
HURON
SENECA
Sophie Kruse / Dix Communications
TRUMBULL
LORAIN
RICHLAND
COCK
CUYAHOGA
ERIE
SANDUSKY
OD
Thomas Doohan / Dix Communications
Carroll, Harrison, Columbiana, Guernsey, Monroe, Noble, Belmont, Mahoning, Portage, Stark, Summit, Tuscarawas, Coshocton, Trumbull, Holmes, Muskingum, Medina, Wayne, and Washington.
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Bill Dannley Landmand, Leasemap Ohio
W
OOSTER — You’d think it would be a nobrainer. A company takes an oil and gas lease on a property. Now, if you remember my May column about constructive notice and the need to record, you’d expect them to immediately scamper on down to the courthouse and record. Right? That depends. Remember the old Kenny Rogers song “The Gambler?” It goes “Know when to hold ‘em, know when to fold ‘em....” Well, that the dilemma oil and gas companies face when they take leases. I call it lease poker. When a company pursues a new prospect, they don’t make the decision by throwing a dart at a map or prowling around with a divining rod. Careful geologic research goes into evaluating the area. Whether they employ subsurface mapping, landstat imagery, SLAR imagery, geochemical analogy, seismic lines, all proven geologic methods, all incredibly expensive. Before a title abstractor hits the courthouse or a landman knocks on a single door, a sizable investment has already been made. And the location of the new prospect is top secret. If word leaks out that a major producer has begun leasing in a new area, other companies --especially lease brokers-- will swarm in. Prices per acre, landowner royalties will skyrocket. So confidentiality has to be maintained for a long as possible. The need for secrecy runs counter to the need for constructive notice. Recording leases clearly defines the area of the new prospect: the specific tracts signed, their exact location and, sometimes, the terms and conditions offered. So companies only record once they hold a significant leasehold. Two examples of lease poker: Phillips Production and Chesapeake Energy. About ten years ago I worked a leasing project along the southern border of New York State for Phillips Production, an old and well-respected oil and gas producer. The area contained some older Clinton production with huge swaths of available acreage. The landowners hadn’t been approached in years. Wide open spaces. So I with about a dozen other leasemen hit the ground hard in the fall of 2004, taking five-year leases at $5 per acre per year. The last thing Phillips wanted to do was tip their hand by recording. So they didn’t
Know when to hold ‘em...” Chesapeake did the same thing in 2011. Moving into Stark County as part of the Utica play, their landmen worked hard and silent, piling up leases but recording nothing. Know when to hold ‘em...” Phillips didn’t record until the spring of 2005, when leases covering 50,000 acres plus suddenly showed up in the courthouse. More followed. The word got out. Other companies showed up, but Phillips was so well established no one could compete. “Know when to fold ‘em...” On December 5, 2011 Chesapeake Energy showed its hand, inundating the Stark County Recorder’s Office with a single filing of1,046 leases. The average number of leases recorded annually in Stark: about 1,000. “We’ve never had that many documents filed at once in one day,” recalled Laura Steenrod, Chief Deputy Recorder of the Stark County Recorder’s Office. “Know when to fold ‘em...” Both companies played lease poker, and won big. But for some companies, holding leases doesn’t make sense. These producers record almost all their documents, if not immediately, in a timely fashion. Why the difference? Say a producer has been active in an area for years. Wells, tanks, infrastructure for anyone to see. Their interest is obvious and selfevident. There’s no confidentiality to protect. They take a lease to augment their leasehold. Record ASAP. Or maybe a driller becomes aware of a tract of unleased land surrounded by existing production. In the business, that is known as an “inside tract.” Very little acreage is available; no big leasing programs are possible. So once you pick up what you need, why not record? It just makes sense. So if a new company starts leasing in your area but nothing shows up in the courthouse, well, “Know when to hold ‘em...” And when those leases get recorded... I think you can fill in the rest. Bill Dannley has worked in the oil and gas business for over 35 years as both a title abstractor and petroleum landman. He is a partner in Leasemap Ohio, which specializes in lease takeoff research and has over 400 Ohio townships on file. Bill can be reached at 330-262-0588. For more information visit www.leasemapohio.com.
Judie Perkowski Dix Communications
Q
UAKER CITY — It was her first time on a drill pad. Dressed in coveralls, steel-toe shoes and a hard hat, she could have been mistaken for an intrepid reporter. Ohio Lieutenant Governor Mary Taylor said she was excited to be one of the visitors to the J. Hall Drilling Pad, Rig 63, in Quaker City Thursday afternoon. “I’ve had an opportunity to tour and visit a number of businesses tied to the shale industry across Ohio, but this was my first tour of a drilling pad and it as even more impressive than I imagined. What an exciting operation ... And to think there are so many others just like it across this region of the state — it’s greats news for the local economy, for the workers and for their families,” said Taylor. “Having these resources here in eastern and southeastern Ohio means more jobs, more investment and something positive for every community touched by this boom. It was equally important to see how seriously the industry is taking safety and regulations while working with the state to ensure this opportunity lives up to its potential in a way that protects our health, safety and the land.” Patrick McKinney, president and chief operating officer for Pennsylvania-based Rex Energy Corp., led the tour. “It was our pleasure to host the Lt. Governor on a rig tour and demonstrate to her how we are safely and responsibly developing the Utica Shale in Ohio. Rex Energy plans on operating in eastern Ohio for quite a long time, so any time an elected official has an interest in learning more about
what we do, and more importantly how we doit, we’re always happy to accommodate. We thank the Lt. Governor for her leadership in making Ohio an attractive state to invest capital and fostering a climate where companies like Rex can create jobs and spur economic growth across eastern Ohio,” said McKinney. After a safety briefing, McKinney began explaining the drilling operation and led the group up to a platform at the first level on the rig, and because the rig is stationed on a hill, the view of the countryside is fantastic. The rig is 150 feet from the ground up, called a triple rig, easily identified by the sections of pipe welded every 50 feet. “The company arrived at the site last month and began drilling about three weeks ago,” said Rick Harliss, Rex Energy drilling supervisor. “We are at a vertical depth of about 8,000 feet. We are approaching the curve, which means we will begin horizontal drilling.” The company anticipates the well will be in operation sometime this winter. In addition to explaining the drilling operation, McKinney elaborated on the company profile. “Rex currently has 21,000 net acres across the Utica Shale region — 16,000 acres in Carroll County — and continues to look for more opportunities to expand. The remainder of our net acreage is in Noble, Guernsey and Belmont counties. The company began operations in Guernsey County in 2013. “We have more than 300 employees across our operational footprint. We aim to hire locally whenever possible. In ad-
dition, we strive to hire and work with local contractors and sub-contractors,” he said. “Rex Energy has partnered with two midstream companies to transport and process our natural gas. We use Blue Racer in our Warrior North acreage and MarkWest in our Warrior South acreage. We refer to this area as our Warrior North and South acreage. Both companies have been great to work with in Ohio.” Rex has a total of 26 wells in various stages of development in its Utica operating area. There are six wells planned for the J. Hall pad, and five wells planned for the J. Anderson pad, a short distance from the J. Hall pad. “I have been in the oil and gas industry since 1982, working in Texas, Oklahoma, the Rockies and California. What’s happening in the Appalachian Basin is by far the most exciting time in my career,” said McKinney. jperkowski@daily-jeff.com
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OHIO WELL ACTIVITY
by the numbers
MARCELLUS SHALE
17 5 11 0 11 0 0 44
Wells Permitted Wells Drilling Wells Drilled Not Drilled Wells Producing Inactive Plugged Total Horizontal Permits
UTICA SHALE
4 4 1 Wells Permitted 153 Wells Drilling 284 Wells Drilled 0 Not Drilled 4 67 Wells Producing 0 Inactive 0 Plugged 1345 Total Horizontal Permits
Data as of 06/25/14 Source: Ohio Department of Natural Resources
Kristen Tomins Dix Communications
K
ENT --- For John Lubinski, president and founder of County Fire Protection Inc., safety is and always has been the top priority, especially in oil and gas refineries that his company services across Ohio. CFP offers different services to help people keep their buildings or facilities in compliance with current fire codes, such as fire alarms and extinguishers, back-flow prevention, fire pumps and special hazards prevention, like FM-200, Halon and CO2. Originally known as Summit County Fire Protection, CFP was founded in Kent in 1999 by Lubinski and has since opened locations in Toledo, Columbus and Cleveland due an increase in clients. CFP has been a recipient of the Weatherhead 100 award — an award given to fast-growing companies based on revenue-— every year since 2008. Some of CFP’s clients include BP, Marathon and Cedar Point — all of which are required to have specific fire and safety equipment on site. Lubinski said his company fulfills these requirements through the different services it provides and highly trained employees. In the oil and gas industry, he said, the focus has been on the safety and “stringent requirements” in place to enter and service these refineries. “We’re invested in safety when it comes to these refineries and making sure we know how to correctly work in these types of environments,” Lubinski said. He said by becoming a presence in refineries and facilities that work with oil or natural gas, he and CFP employees hope to further their own awareness in the oil and gas industry while also emphasizing the importance of safety and regulations in those settings. Employees at CFP undergo thorough background checks that include drug inspections and also complete site specific training, ladder safety training, confined space entry training
and hazard communication training, among other safety training programs. “We hold ourselves to higher standards to be able to work [in refineries],” said Lubinski. “I can’t send just anyone in there.” Lubinski described refineries as “potentially highly reactive areas,” which contributes to his company’s guarantee to strictly follow all state and local codes provided by the Occupational Safety and Health Administration, National Fire Protection Association and National Association of Fire Equipment Distribution. Without these codes and a duty to strictly abide by them, Lubinski said a worst-case scenario may range from gas emissions that pose potentially fatal threats to anyone working in the refinery, to dangerous fires and both major, and minor injuries to employees. Lubinski said that CFP employees also conduct unannounced quality control visits, ensuring refineries and other facilities are up to par with these codes and regulations as they’re installed. Because CFP employees may regularly be working around dangerous chemicals during their on-site service trips, such as the toxic gas hydrogen sulfide, monitors are worn at all times to detect levels of combustible gases. “Some of the chemicals and products we’re working around are colorless and odorless, which can put people in even more danger,” said Lubinski. “We want to make our service and their environment as safe as possible.” Lubinski said he also makes it a priority to be available to his customers, no matter what the circumstances may be, by utilizing a 24-hour, 365 days per year phone answering service to accommodate after-hour needs, or emergencies. In addition to Ohio, Lubinski said the company also services western Pennsylvania, West Virginia and some areas of Michigan.
FIREFIGHTERS GET TRAINED FOR OILFIELD EMERGENCIES
C
AMBRIDGE — Area firefighters joined more than 30 emergency responders from across the state to participate in the Ohio Oil and Gas Energy Education Program’s (OOGEEP) Responding to Oilfield Emergencies Training Workshop held recently. Participants from the area included Firefighter Julie Paden of the New Concord Fire Department; Firefighters David Carpenter, Gary Frame, Timothy Neiswonger of the Quaker City Volunteer Fire Department; Training Officer Scott Oakley and Firefighter Beau Guiler of the Senecaville Volunteer Fire Department; and Firefighter William Smith of the Caldwell Fire Company. OOGEEP’s Oilfield Emergency Response Training program began in 2001, and was the first of its kind in the nation. The workshop is fully funded by Ohio’s natural gas and crude oil producers, and is offered at no cost to Ohio firefighters. In the past 13 years over 1100 firefighters from across Ohio and seven other states have attended, with Ohio’s oil and natural gas industry voluntarily funding over $2,000,000 to provide this free training program. Upon completion of the 2-day training, each participant receives a certificate of attendance, documentation for up to 12 CEU contact credit hours, with optional college credit is also available through Hocking College The program is endorsed by the Ohio Fire Chief’s Association, Ohio Society of Fire Service Instructors and the Ohio Fire and Emergency Services Foundation, and has received numerous state and national awards while providing the model for other energy producing states training programs. “As representatives of the industry, we offer the best training by enabling emergency responders to understand and implement effective emergency response practices at typical oilfield drilling sites and production sites. Ohio has always taken the lead in developing safety programs, and we are proud to have built what is such a highly regarded program,” said Charlie Dixon, OOGEEP Safety and Workforce Administrator and fire service veteran with over 37 years experience. In the rare event of an oilfield emergency, the program is devised to provide detailed background information and practical guidelines to assist responders in communicating at the emergency site, evaluating the emergency, and responding to both drilling and production emergencies. The hands-on training portion includes “live burns” utilizing both crude oil and natural gas props. “Ohio’s oil and natural gas industry is dedicated to the safety and well-being of our communities, and our environment, so we train for potential scenarios no matter how rare these events may occur. This program is designed to ensure the both the safety of emergency responders and oilfield workers, as well as alleviate concerns the community may have,” Mr. Dixon added. “We enjoy a great partnership with the emergency responders we work with, and this program allows the communities we operate in to feel confident both the industry and responders are well trained. It’s one more way we can continue to be responsible, community and environmental stewards,” said Ron Grosjean, an Ohio oil and gas producer and Committee Chairman of the OOGEEP Emergency Response Program.
W
OOSTER — Firefighters David Devore and Firefighter/EMT Chris Parker of the Town & Country Fire District, Firefighter Andy Malinish of the Chippewa Fire Department, and Firefighter/EMT Basic Alan Griffiths of the Wooster Township Fire Department joined more than thirty emergency responders from across the state to participate the Ohio Oil and Gas Energy Education Program’s (OOGEEP) Responding to Oilfield Emergencies Training Workshop. OOGEEP’s Oilfield Emergency Response Training program began in 2001, and was the first of its kind in the nation. The workshop is fully funded by Ohio’s natural gas and crude oil producers, and is offered at no cost to Ohio firefighters. In the past 13 years over 1100 firefighters from across Ohio and seven other states have attended, with Ohio’s oil and natural gas industry voluntarily funding over $2,000,000 to provide this free training program. Upon completion of the 2-day training, each participant receives a certificate of attendance, documentation for up to 12 CEU contact credit hours, with optional college credit is also available through Hocking College The program is endorsed by the Ohio Fire Chief’s Association, Ohio Society of Fire Service Instructors and the Ohio Fire and Emergency Services Foundation, and has received numerous state and national awards while providing the model for other energy producing states training programs. “As representatives of the industry, we offer the best training by enabling emergency responders to understand and implement effective emergency response practices at typical oilfield drilling sites and production sites. Ohio has always taken the lead in developing safety programs, and we are proud to have built what is such a highly regarded program,” said Charlie Dixon, OOGEEP Safety and Workforce Administrator and fire service veteran with over 37 years experience. “Wayne County and the adjacent counties have a long history with the oil and gas industry. The fire service needs to understand the industry, and how to respond to incidents related to the industry,” stated Alan Griffiths of the Wooster Township Fire Department. In the rare event of an oilfield emergency, the program is devised to provide detailed background information and practical guidelines to assist responders in communicating at the emergency site, evaluating the emergency, and responding to both drilling and production emergencies. The hands-on training portion includes “live burns” utilizing both crude oil and natural gas props. “Ohio’s oil and natural gas industry is dedicated to the safety and well-being of our communities, and our environment, so we train for potential scenarios no matter how rare these events may occur. This program is designed to ensure the both the safety of emergency responders and oilfield workers, as well as alleviate concerns the community may have,” Mr. Dixon added. “We enjoy a great partnership with the emergency responders we work with, and this program allows the communities we operate in to feel confident both the industry and responders are well trained. It’s one more way we can continue to be responsible, community and environmental stewards,” said Ron Grosjean, an Ohio oil and gas producer and Committee Chairman of the OOGEEP Emergency Response Program.
POTENTIAL Thomas Doohan Dix Communications
N
ORTH CANTON — Business potential — that was the message painted for gas and oil business men and women who attended the Midstream Ohio 2014 conference on June 11 at Walsh University. According to industry leaders, the gas and oil industry in Ohio is booming and along with high production of natural gas is an influx of construction business associated with laying down gas and oil infrastructure. Caimen Energy vice president of business development Brent Breon was one of the speakers at the conference and he said his company, a partnership between Blue Racer midstream and Dominion Gas, deals in this area of business which he said is called midstream. “It’s taking gas from the well head facility,” he said. “To a place natural gas can be sold.” Currently, Breon said Caimen Energy has 1,000 workers in Ohio and West Virginia building the infrastructure required to bring these products from well to market. From construction of pipelines, hotels and land acquisition, he said there is great potential for midstream companies like his, but for businesses doing the infrastructure construction. While there are plenty of job opportunities found within the midstream industry currently, he said the number is only expected to grow. Breon said this is particularly evident when you look at the 1000 workers Caimen Energy has working on some of its infrastructure at this moment. “(They) were really not building anything for us last year,” he said, explaining they are employing people in large quantities in quickly. The Midstream Ohio 2014 conference was put on by the Canton Regional Chamber of Commerce and Shale Directories as part of the Utica Capital Series. The chamber’s event and marketing manager Whitney Prather described Breon’s talk and those of his fellow speakers as “a series of updates.” With these updates, she said it was hoped an environment fostering relationships between business owners, major and minor, could be created and Ohio’s midstream industry potential could be reached.
“We want people to start talking and making connections,” Prather said. “And things to start happening.” While there is plenty of potential for businesses in the industry, she said it is a difficult one to get into. As a result the conference hosted a business panel aimed at educating those in attendance on how to be successful at winning bids. Filled with various experts in the field, the panel described how it can be difficult to break into this potential. “I don’t think anybody could come in and win it by luck alone,” panelist Joy Ruff of Dawood Engineering said. She advised them to stick to their niche and said “don’t over promise on what you can do.” Panelist Mike Garofalo of Beaver Excavating agreed and said it is important to have a plan and to keep it simple. “We put together a team, dedicated time and effort to this market. We built an early list of potential customers,”he said of when his company broke into the industry. “If you don’t pick out your prime customers, you’ll probably just get overwhelmed and get lost in the shuffle.” Joe Greco of Black Bear Energy Services said he came to the event because speakers Bent Breaon of Caiman Energy, Adam beck of Access Midstream, Mark Butta of EnLink Midstream are some of big players in the midstream industry. “It gives me a feel for the companies’ needs.”
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Sophie Kruse Dix Communications
C
ANTON — As the gas and oil industry grows, the employment outlook for minority groups and women is projected to be higher than ever, and there are more opportunities for the groups. These were the main topics at the “Energize Ohio: A Community Conversation about Energy, Opportunities and Workforce Readiness” summit in Canton on June 10. The summit focused on employment outlook in the gas and oil industry for minorities and women and was sponsored by American Association of Blacks in Energy, Hispanics in Energy, U.S. Department of Energy Minories in Energy Intiative and the American Petroleum Institute. “Women are gaining, but not fast enough,” said J. Michael Treviño, advisor to American Petroleum Institute. Treviño presented the IHS study “Minority and Female Employment in the Oil & Gas and Petrochemical Industries.” Currently, women in the industry are primarily found in jobs like office and administration support, sales, service and management, but the bulk of jobs that will soon be available are more blue collar replacements for those in the industry retiring. According to a summary of the IHS study, “there is significant potential for female blue collar employment if interest and training were direct toward women to increase female participation in those areas.” The main findings of the study were that over 955,000 job opportunities would come by 2020 and nearly 1.3 million by 2030. 32% of the total jobs, 408,000, are projected for AfricanAmerican and Hispanic workers through 2030 and female employment is projected to account 185,000 of the total job
opportunities through 2030. African-American and Hispanic workers are also projected to make up nearly 20% of new hires for business, financial and management jobs. The IHS report also projects that there will be a wide variety of jobs available that require a broad spectrum of education, from a high school diploma, post-secondary training to a doctorate degree. However, for these projections to be accurate, there must be many changes within the industry. Science, technology, engineering and mathematics education must greatly improve at the primary and secondary school levels for women and minorities. There must also be higher graduation rates for these two groups. “It’s extremely difficult starting as a female in our industry,” said Rhonda Reda, executive director of Ohio Oil and Gas Energy Education Program, which works extensively to provide resources for Ohio teachers, including how to make the material they teach relevant to the real world, so that students could see the link between what they’re learning and what they could be doing. Pastor M. LaMont Miles of Mt. Olive Baptist Church in Canton stressed the importance of getting the message to youth that these opportunities are available. “They don’t know this is available to them,” said Miles. “When opportunity knocks, they have to be ready to open the door.” Miles, who works with many children in the Canton area, hopes that the opportunities can be conveyed more to them so they realize the potential.
David Wigham Attorney
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OOSTER — Ohio’s Seventh District Court of Appeals hears appeals from most of the counties that are experiencing rapid Utica development, including Mahoning, Columbiana, Jefferson, Carroll, Belmont, Harrison, Monroe and Noble Counties. On April 3, 2014, the Seventh District issued its much anticipated ruling in Walker v. Noon, 2014-Ohio-1499. In the appeal, the Court was asked to resolve conflicting lower court rulings regarding the interpretation of Ohio’s Dormant Mineral Act, found at R.C. § 5301.56 (“DMA”). On June 2, 2014, Ohio’s Seventh District Court of Appeals issued another significant ruling based on Ohio’s Dormant Mineral Act found at R.C. §5301.56 (“DMA”), in a case known as Schwartz v. Householder, 2014-Ohio-2359. This ruling expands upon and adds to the Seventh District’s benchmark ruling in Walker v. Noon, 2014-Ohio-1499 issued on April 3, 2014. The Schwartz decision represents another victory for surface owners attempting to recover ownership of severed minerals that were deemed abandoned prior to the amendment of the DMA in 2006. To recap the DMA, the statute was originally enacted in 1989 and then amended in 2006. Its purpose is to eliminate “dormant” mineral interests. The 1989 DMA provides where the severed mineral interest owner has not utilized its minerals as specified in the DMA for a period of 20 years, the mineral interests will be deemed abandoned and returned to the current surface owner. Importantly, the 1989 DMA is selfexecuting, meaning that the severed minerals in question will be automatically abandoned if no activity related to the minerals has occurred. The only subsequent action that surface owners need to take is to file a lawsuit to obtain a court order declaring the minerals to be abandoned under the DMA and returned to the surface owner. Under the 2006 DMA, surface owners must first file and serve a notice of abandonment on the severed mineral owner. Accordingly, the 1989 DMA has become central to the disposition of literally hundreds of oil and gas lawsuits between surface owners and severed mineral owners related to the Utica Shale development. In the Seventh District’s benchmark ruling of Walker v. Noon, the Court held that the 1989 DMA was indeed self-
executing, meaning that where nothing had been done with the minerals in the previous 20 years, the minerals automatically return to the surface owner. The Walker Court also held that the 2006 DMA could not be applied retroactively and did not affect abandonments which had already occurred prior to June 30, 2006, the effective date of the amendment. Schwartz v. Householder expands upon the ruling in the Walker decision in several ways that are important to surface owners. First, the Schwartz Court took the opportunity to clarify an earlier holding in Dodd v. Croskey 2013-Ohio-4257, and ruled that although Dodd did not address the 1989 DMA, there is no argument under Dodd that the 1989 DMA does not apply. Secondly Schwartz held that there is no conflict between the 1989 DMA and Ohio’s Marketable Title Act. In fact, the DMA is an amendment to the Marketable Title Act so mineral owners cannot argue that the Marketable Title Act applies instead of the DMA. Third, and most importantly, Schwartz held that a surface owner does not need to first implement the notice provisions of the 2006 DMA before proceeding with a legal action under the 1989 DMA. Finally, the Court took the opportunity to repudiate a lower court ruling known as Dahlgren v. Brown Farm Properties, Carroll County Common Pleas Court, Case No. 2013 CVH 274455, and also briefly addressed the DMA’s Constitutionality. The Schwartz ruling is yet another important ruling for surface owners who own property in the Utica and are attempting to recover ownership of minerals that were abandoned and therefore vested to them under the 1989 DMA. It further eliminates many defenses asserted by alleged severed mineral interest owners in these cases. Surface owners are reminded of the importance of bringing a legal action based on the DMA to clear off old mineral reservations so that the minerals beneath their property are marketable and so that the minerals can be leased and royalties received. David J. Wigham is a second generation oil and gas attorney at the law firm of Critchfield, Critchfield & Johnston, in Wooster, Ohio, with more than 20 years of experience in the industry. He is also the current chairman of the Natural Resources Committee of the Ohio State Bar Association.
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FRACKING FORUM SET FOR JULY 26 OUDONVILLE — A free public forum at the Loudonville Public Library, 122 E. Main St., will be held July 26 from 6:30-8:30 p.m. The focus will be on hydraulic fracturing and the toxic waste stream destined for communities across Ohio. The majority of fracking flowback waste is injected into the earth via Class 2 injection wells and enhanced recovery injection wells. The forum will consist of several presentations: — Fracking In Ohio — A basic overview of hydraulic fracturing and Ohio legislation presented by Melanie Houston, MS, Director of Water Policy & Environmental Health for the Ohio Environmental Council — Injection Wells 101 — Overview of Class 2 injection wells and threats posed to local communities presented by Brian Kunkemoeller, Conservation Manager of the Ohio Chapter of the Sierra Club. — Personal Impact Stories and Forum Closing Comments There will be a question and answer session during each segment of the forum. For more information contact Bill Baker, organizer, at 419-612-4069.
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CHESAPEAKE ENERGY BOARD APPROVES SPINOFF
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KLAHOMA CITY (AP) — Chesapeake Energy Corp. said its board has approved a previously announced plan to spin off its oilfield services business into a separate, publicly traded company. The Oklahoma City-based oil and natural gas producer said Monday that the new company will be called Seventy Seven Energy Inc. To separate the companies, Chesapeake shareholders will receive one share of Seventy Seven Energy for every 14 shares of Chesapeake stock they own as of June 19. No fractional shares of Seventy Seven Energy will be issued. Instead shareholders entitled to one will receive cash instead. The distribution is expected to happen June 30, after the market closes. Seventy Seven Energy has applied to list its stock on the New York Stock Exchange under the symbol “SSE.” Trading is expected to begin on July 1. Seventy Seven Energy, based in Oklahoma City, provides drilling, hydraulic fracturing, oilfield rentals and other services to oil and gas producers. Chesapeake first announced in February that it was planning to spin off the business to streamline its operations. In May, the company said the move would cut about $1.1 billion of debt from its balance sheets. Shares of Chesapeake closed at $29.87 Friday. Its shares are up nearly 10 percent since the beginning of the year. COMPANY ENSURING COWS AREN’T HARMED ISMARCK, N.D. (AP) — An Oklahoma energy company says it has taken steps to ensure its facilities aren’t harmed by cows. North Dakota health officials say a cow may have rubbed against a tank valve on Tuesday, spilling about 20 barrels of natural gas condensate in western North Dakota. The site is owned by a subsidiary of Oneok Inc. based in Tulsa, Oklahoma. Officials say the cleanup is under way and booms have been put in tributary to the Little Missouri River as a precaution. Oneok says in a statement that the tank valve has been locked to prevent possible spills in the future.
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ANTON -- A Midstream activity update was among the topics during a Utica II Summit held in June at Walsh University by the Stark County Regional Chamber of Commerce. A portion of the event was devoted to talks from representatives of three large Midstream companies,who provided updates on their company’s current assets and plans for the future. The investments outlined were astounding, and the consensus was “this is still only the beginning” with regard to gas and oil development in this area of the country. Presenters included Mark Butta, director of commercial services for EnLink Midstream, which is involved in many premium oil and gas plays in America, including the Utica. Butta said many people don’t understand the current development in Marcellus and Utica. “The well pads built today are the size of a Walmart parking lot. Utica is the Ohio River Valley’s number one asset,” he said. Butta explained his company has invested $80 million to date in Marcellus and Utica shale. Assets include 7,300 miles of gathering pipe, 12 processing plants, with another in construction, six fractionation plants, three underground storage facilities, 200-miles of oil pipe, rail and barge terminals, a trucking fleet, and 8 brine disposal wells. EnLink has plans to grow out-of-region markets, establish a rolling pipeline via truck fleet to capture first barrels, and continue to develop a long-term strategy for pipeline and storage. Access Midstream’s Adam Beck, project manager, said the company owns and operates assets in nine states, totaling $8.3 billion. The company has a field office in North Canton, with 95 employees, and is investing $1.8 billion in the Utica through 2015. A total of 357 miles of pipe is already installed in Utica, 377 wells are connected, and the company is involved
in two joint ventures: Cardinal Gas Services and Utica East Ohio Midstream. Assets include Harrison Hub Processing, in Harrison County, and 2014 projects include an additional 148 miles of pipe, equaling a $400 million investment, plus an additional 19 compression units, equaling $125 million. Brent Breon, of Caiman Energy II’s Blue Racer Midstream, created in a partnership with Dominion, said the company estimates $30 billion in Midstream capital is required to develop the Utica shale, and the Northeast is expected to become a net supply zone over time. “Northeast production is a game changer. Production is meeting and exceeding demand. The wet Marcellus and Utica show strong returns and will drive Northeast production growth,” said Breon. Blue Racer Midstream is planning to construct a cryogenic processing plant, a processing complex, and begin construction of gas gathering pipelines. At this time, more than 900 construction workers are already laying pipeline in Ohio and West Virginia for Blue Racer Midstream, and more than 250 construction workers are building processing plants for the company in the same states. Blue Racer’s current assets include a Natrium I Fractionation Plant, in Monroe County; plus two processing facilities under construction, Berne I and II Cryogenic Processing, in Monroe County, and Natrium II Fractionation Plant, which is being built in Monroe County. The company is also currently in negotiations to support the following expansions: Berne III Cryogenic Processing; Lewis I, II, and III Cryogenic Processing; and Petersburg I and II Cryogenic Processing. Also, in anticipation of gathering pipe completion to bring condensate to Natrium, a marketing hub will also be created with storage, class I rail, and permitted barge capability.
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Judie Perkowski Dix Communications
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everal gas and oil companies were asked to submit a mid-year evaluation of their company’s operation in the Utica or Marcellus Shale in eastern Ohio to the #OhioGAS&OIL magazine. Where are they operating, what counties, and are they planning to stay or move on. For the companies that did not respond, information about basic activity was gleaned from the Ohio Department of Natural Resources Division of Oil and Gas Management from January 31, 2011 through June 7, 2014. From Ashland to Wayne counties and 19 others in eastern and southeastern Ohio, more than 1,300 Utica Shale permits have been issued, of which 904 wells have been drilled since 2009. Twenty-one counties in eastern Ohio have attracted the attention of 31 GAS&OIL companies. From those with the largest footprints, such as Chesapeake and Gulfport, to smaller companies like Brammer Engineering and BEUSA Energy, newcomers to Utica Shale development. Companies that have staked a claim in the Utica Shale: • Flatiron Energy Partners, LLC, Dallas, Texas Flatiron Energy Partners was very successful in its efforts on purchasing oil and gas mineral rights over the past year in eastern Ohio. The company invested capital across 130 separate transactions and acquired approximately 5,800 net mineral acres in fee ownership primarily in Harrison, Belmont, Guernsey, Noble and Monroe counties in Ohio. Flatiron is upstream because they now own mineral rights that the operators will be drilling on and under. The company has moved all operations at the St. Clairsville office back to Dallas, as they have finished their current buying program. They are still very active in all aspects of the assets they own in Ohio and West Virginia and are excited about the bright future the Utica/Point Pleasant and Marcellus Shale formations have in eastern Ohio. ~ Austin Eudaly, vice president of acquisitions for Flatiron Energy • Rex Energy, State College, Pa. Rex currently has 21,000 net acres across the Utica Shale region with 16,000 net acres in Carroll County, and continues to look for more opportunities to expand. The remainder of acreage is in Noble, Guernsey and Belmont counties.
Rex began operating in Ohio in 2012 focusing on Carroll, Guernsey, Noble and Belmont counties with operations in Guernsey County in 2013. Rex has over 300 employees working within its operation. The company said they aim to hiring locally whenever possible, in addition to hiring local contractors. Rex Energy has 11 permitted and five producing wells in Guernsey County for a total of 26 wells in various stages of development in its Utica operating area. There are 16 wells in production, one currently being developed in Quaker City, three drilled that are awaiting completion; and six wells waiting for pipeline infrastructure. Six wells are planned for the J. Hall Pad in Quaker City which is expected to be in operation sometime this winter. Rex also recognizes the importance of helping the community in various ways. Among many of its contributions to organizations throughout the county, Rex was proud to donate nearly $10,000 at the Carroll County Fair Livestock Auction for our future farmers. For the local high school, Rex Energy purchased IPads to help advance and enrich educational opportunities for local students. Rex was also honored with the opportunity to help provide equipment and uniforms to the Carroll County Special Olympics team. ~ Patrick McKinney, president and chief operating officer for Rex Energy • Chesapeake Energy, Oklahoma City, Ok. Chesapeake has oil and gas activity in Carroll, Columbiana, Geauga, Guernsey, Harrison, Jefferson, Portage, Stark and Tuscarawas counties. Activity in Carroll County: Permitted, 59; drilling, 27; drilled, 93; producing, 202. Columbiana County: Permitted, 36; drilling, 2; drilled, 30; producing, 31. Geauga County: Permitted, 1. Guernsey County: Permitted, 3; drilled, 2; producing, 1. Harrison County: Permitted, 43; drilled, 24; drilling, 17; producing, 21. Jefferson County: Permitted, 20; drilled, 14; drilling, 1; producing, 8. Portage County: Permitted, 3; drilled, 2. Stark County: Permitted, 5; drilled, 4; producing, 1. Tuscarawas County: Permitted, 4; drilled, 1.
Gulfport Energy Corporation, Oklahoma City, Ok. Gulfport has oil and gas well activity in Guernsey, Harrison and Monroe counties. Activity in Guernsey County: Permitted, 35; drilling, 15; drilled, 4; and producing, 12. Harrison County: Permitted, 9; drilling, 4; drilled, 2; producing, 22. Monroe County: 7 wells permitted. • CNX Gas Co., Canonsburg, Pa. CNX Gas Co. has gas and oil activity in Jefferson, Mahoning, Monroe, Noble, Portage, Trumbull and Tuscarawas. Jefferson County: Permitted, 1. Mahoning County: Permitted, 2; drilled, 1; producing, 3. Monroe County: Permitted, 11; drilled, 1. Noble County: Permitted, 5; drilling, 6; drilled, 8; producing, 10. Trumbull County, Permitted, 1. Tuscarawas County, Permitted, 1; producing, 2. • Antero Resources Corporation, Denver, Colo. Athough Antero is currently considered to be the most active operator in the Marcellus Shale, they, like everyone else, are no match for Cheaspeake’s dominance of parts of the Utica Shale. Antero has gas and oil activity in Monroe and Noble counties. Monroe County: Drilling, 7; drilled, 6; producing, 6. Noble County: Permitted, 22; drilling, 17; drilled, 12; producing, 17. *Antero also has one of the largest producing wells in eastern Ohio— called The Monster — in Monroe County. • American Energy Partners, Oklahoma Çity, OK. AEP has gas and oil activity in Guernsey and Harrison counties. Guernsey County: Permitted, 3; drilling, 5; drilled, 1. Harrison County: Permitted, 14; drilling, 7. • RE Gas Development LLC, Evans City, Pa. RE Gas Development’s gas and oil activity in Carroll, Guernsey and Noble counties. Carroll County: Permitted: 3; drilled, 9; producing, 7. Guernsey County: Permitted, 6; producing, 5. Noble County: Producing, 3. • PDC Energy, Denver, Colo. PDC Energy has gas and oil activity in Guernsey, Morgan and Washington counties. Guernsey County: Drilling 3; producing, 8. Morgan County: Drilling, 2; drilled 1. Washington County: Permitted, 1; producing, 4. • Hess Corporation, New York, NY Hess Corp. has gas and oil activity in Belmont, Guernsey, Harrison and Jefferson counties. Belmont County: Permitted, 5; drilling, 4; drilled, 4; producing, 4. Guernsey County: Producing, 3.
Harrison County, Permitted, 14; drilling, 5; drilled, 9; producing, 5. Jefferson County: Drilling 1; producing, 4. Of the 21 counties in eastern and southeastern Ohio with gas and oil activity, Guernsey County leads the pack with 13 gas and oil companies in some stage of operation: Chesapeake, Anadarko, Gulfport, PDC Energy, Enervest, Devon, Hess, Carizzo, EQT, RE Gas Development, Eclipse, Rex Energy and American Energy Utica.
Space for Lease: Hannibal Professional Center, 52634 Main St. (SR536) Hannibal,OH 43931 Located within a hot spot of the Utica and Marcellus Shale Formations, the Hannibal Professional Center is located at 52634 Main St., Hannibal,OH 43931 on SR536 just 1/2 mile from SR7on the Ohio River in Monroe County, Ohio, less than 1 mile from the New Martinsville, WV Bridge. This location is 3 miles from the Hannibal Industrial Park which offers rail service and barge services. Approximately 5,800 SF available. Flexible space for office, retail or light manufacturing uses. Ample parking is available. Five large open rooms that could be built to suit. One Office suite consisting of 2 private offices (option for 3rd private office), reception area, restroom and walk-in fireproof wall safe ready to move-in. Outparcels available. High speed internet available. Beautiful views of the Ohio River. Banquet facilities available for conferences, training, etc., 24 hrs fitness center to open May-June 2014 on site. Lease Rates & terms are negotiable. Contract (740)213-3568
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OLUMBUS — An advocacy group continues to push for more details of a plan to allow horizontal drilling for oil and gas on state-owned lands that was developed by Gov. John Kasich’s administration and the Ohio Department of Natural Resources. The plan ultimately was shelved, and the governor says he no longer supports the idea. But Alison Auciello, Ohio Organizer for Food & Water Watch, said Thursday that emails and other documents show the administration pursued the plan longer than it initially indicated. And she questions whether parts of the strategy were implemented. “We feel that it’s pretty clear that the administration and the Department of Natural Resources has misled us about how far and about how deeply it planned to go on with this communications plan to promote fracking,” Auciello said. “It shows a lot of inconsistencies in what the administration is saying about the plan and some conflicts of interest. So we’re asking for the attorney general to conduct a full investigation into how far this plan actually went.” The ODNR plan came to light earlier this year as a result of a public records request from the liberal advocacy group ProgressOhio, environmentalists and newspaper reporters. The documents note intentions to “exercise state-owned drilling rights” at several state parks “in a way that maximizes benefits and safeguards for Ohioans, completely avoids park surface disturbance and minimizes forest surface disturbance....” A section of the plan titled, “Communication Problem to Solve,” states that “an initiative to proactively open state park and forest land to horizontal drilling/hydraulic fracturing will be met with zealous resistance by environmental activist op-
ponents, who are skilled propagandists.” ODNR and the governor’s office have said it is not out of the ordinary for agencies to develop communications strategies for responding to criticism of policy decisions. ODNR also said the draft plan was never implemented. And Kasich said in February that he no longer supports fracking on state-owned parkland and forests. “Ohio doesn’t frack on state land, nor does it permit public colleges and universities to frack on their lands,” Bethany McCorkle, ODNR spokeswoman, said in a released statement. “The policy has been examined and considered and the decision was made not to do it, and that’s the policy for the foreseeable future. Out-of-state groups who really don’t know what’s going on in Ohio or understand how Ohio works frequently parachute in to try to advance their particular agendas, but the fact is that Ohio makes its decisions based on what’s best for Ohio, and in this case we don’t think drilling on state land is in the best interest of Ohioans.” But Democratic lawmakers continue to voice concern about public records showing the administration pursued a marketing strategy for fracking on public lands. In a joint statement, Reps. Bob Hagan (D-Youngstown) and Nickie Antonio (D-Lakewood) offered, “These revelations further confirm that the governor’s office has been lying about how long they pursued plans to team up with the oil and gas industry in promoting fracking in state parks and fracking in general. How long can the state’s top official continue to be dishonest with taxpayers? The public deserves to know the full extent to which the governor planned to push fracking in our state parks.” Marc Kovac is the Dix Capital Bureau Chief. Email him at mkovac@dixcom.com or on Twitter at OhioCapitalBlog.
ENERGY BILL FREEZES MANDATES FOR TWO YEARS Marc Kovac Dix Capital Bureau
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OLUMBUS — Gov. John Kasich has added his signature to much-debated legislation freezing renewable energy and efficiency mandates for two years, pending a review by a new study committee. The move came behind closed doors and after numerous environmental and other groups sent letters to the governor urging him to veto the legislation. Kasich offered no formal comment Friday on his decision to sign the bill. His spokesman, Rob Nichols, said only that the governor supports the legislation. Senate Bill 310 stemmed from law changes enacted about six years ago requiring power companies to generate a certain percentage of their energy from renewable sources and to institute efficiency initiatives. Utilities are allowed to pass the costs of meeting the mandates onto their customers. Among other provisions, SB 310 freezes renewable energy and efficiency benchmarks for the next two years and creates a study committee that will have to offer recommendations for future energy-related law changes by September 2015. Absent subsequent legislative action, the renewable energy and efficiency mandates in current law would restart in 2017. Backers of the bill say existing standards are higher than those in place in other states and will lead to higher energy bills for businesses and consumers. But opponents said the bill would reverse course on green energy advancements that are needed to protect the environment and hurt manufacturers of wind turbines and solar panels and other related green industries. “We have an obligation to protect current and future generations from the harm and costs associated with climate change and toxic air pollution emitted by coal-fired power plants,” representatives from five Ohio environmental groups wrote in a letter to the governor urging him to veto the legislation. “Additionally, we have an obligation to
ensure that Ohio’s policies are designed to ensure low-cost, low-emission electricity for families and businesses and that the state is investing in a future that employs a diversity of clean energy resources. SB 310 takes us in the wrong direction.” Marc Kovac is the Dix Capital Bureau Chief. Email him at mkovac@dixcom.com or on Twitter at OhioCapitalBlog.
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TOP COUNTIES WITH HORIZONTAL DRILLING ACTIVITY BY NUMBER OF SITES
1. Carroll County 413 2. Harrison County 241 3. Monroe County 129 4. Belmont County 124 5. Noble County 108 6. Guernsey County 107 7. Columbiana County 103 8. Jefferson County 42 9. Mahoning County 30 10. Tuscarawas County 17 11. Portage County 15 Trumbull County 15 12. Stark County 13 13. Washington County 11 14. Coshocton County 5 15. Holmes County 3 Morgan County 3 Muskingum County 3 16. Knox County 2 17. Ashland County 1 Astabula County 1 Geauga County 1 Medina County 1 Wayne County 1 WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, DRILLED, COMPLETED, PRODUCING, PLUGGED SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 06/25/14
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T. CLAIRSVILLE — While officially opening their new St. Clairsville office in Belmont County Wednesday, May 21, Gulfport Energy announced the creation of the Gulfport Energy Fund at the Foundation for Appalachian Ohio. Established to support the Ohio communities in which Gulfport Energy is working, the Gulfport Energy Fund will provide funding for projects to enrich quality of life in Ohio counties where Gulfport is active, including Belmont, Guernsey, Harrison, and Monroe counties. “This region is the backbone of the state,” Belmont County Commissioner Matt Coffland said. “We have been blessed with the resources of coal which led to steel and other industries. It has supported many families and been great. The last 20 years we have seen tough times. Now we have been blessed again with gas and oil.” “Work ethic is what you get here in Belmont County. “Friendly, nice, hard-working people - that’s what you will find here,” he said. Coffland also acknowledged Belmont County Port Authority Director Larry Merry and Sue Douglass, executive director of the Department of Development/CIC for “constantly working to bring new opportunities to Belmont County.” David Mustine, Senior Managing Director of JobsOhio also congratulated Gulfport and said they were committed to the office which represented a “major investment” in Ohio. He said Gulfport has been a “good business partner” already and is building on that partnership so that there are more opportunities for southeastern Ohio. Representatives of U.S. Senator Rob Portman and U.S. Representative Bill Johnson also congratulated Gulfport and thanked the company for its commitment and investment in Belmont County and Southeastern Ohio. A proclamation from Johnson was read noting that Gulfport was one of the first major companies to invest in the region and thanked them for showing a commitment to the area by this “brick and mortar investment”. Mike Moore, CEO and President of Gulfport Energy, said the new location was an exciting opportunity and thanked the employees at the office. He also thanked the county commissioners, engineer Fred Bennett and the county’s 9-1-1. “This is a long-term investment for our company. We will be here for a long time and we are building a long-term relationship and partnership in this community,” Moore said. “We want to be the very best corporate citizens we can we,” Moore said, thanking the FOA for helping the company meet
that goal. He said the company has both short and long-term goals for community giving. He talked about Gulfport’s drilling activity in the five counties of operation. Moore said the company has produced 2.4 million barrels of oil equivalent, with 80 percent produced in the Uitca shale at this point. He said the company began drilling in Belmont County in 2010 and has 1,100 drills operating on 180,000 acres. He said Gulfport is still acquiring acreage, particularly in Belmont County, and is hoping to increase that number to 1,500 to 2,000. He said 100 wells were drilled in the county this year and there are many years of drilling ahead. Moore said while the company wants to maximize those activities, it also wants to maximize its community impact. He said Gullfport was second behind Chesapeake Energy to come to the area, but wants to lead in giving back. “We are now actively drilling here and that brings thousands of jobs to Belmont County,” he said, noting a study done by the company that shows the impact of jobs created to support drilling activities. Moore said Gulfport has also been a “vocal” supporter of House Bill 375, the governor’s proposed severance tax on the gas and oil industry in Ohio. Moore said the company has developed a good working relationship with the governor’s office. “This is a tremendous opportunity to transform this area’s quality of life in a sustainable way,” he said. “Through Gulfport’s work in Appalachian Ohio, we have come to know our communities here and to feel a part of them,” he said. “We see the challenges facing these counties and want to support their efforts to create opportunities for their citizens. We at Gulfport Energy believe philanthropy is an essential part of growing stronger communities where we work.” The Gulfport Energy Fund will award grants through a competitive application. Applications will be accepted from tax-exempt organizations serving Belmont, Guernsey, Harrison, and Monroe counties, who are working to create opportunities or address a community need. The Fund will put particular emphasis on projects that serve the entire county, will be sustainable at the end of the project period, use partnerships to increase support, and address needs that would otherwise go unmet. Upon presenting the $400,000 “check” to Cara Dingus Brook, president and CEO of the Foundation for Appalachian Ohio, Moore said it will have a “widespread and lasting
impact”. “I can’t say enough good things about FOA and am excited to be working with them to help them achieve their goals.” “The Foundation for Appalachian Ohio is so pleased to help Gulfport Energy create a legacy of philanthropy here in Ohio,” said Cara Dingus Brook, president and CEO of the Foundation for Appalachian Ohio. “Gulfport’s leadership shows how the energy industry can look ahead to a community’s needs and opportunities, both those today and those long after an energy boom.” Moore will be visiting Harrison and Guernsey counties during his trip to Ohio as well to meet with the advisory committees of the Harrison County Community Foundation and the Guernsey Community Foundation, both managed and supported by the Foundation for Appalachian Ohio. Moore will use these meetings to share the news of the Gulfport Energy Fund and to begin discussions with these communities around meetings to better understand the needs the Gulfport Energy Fund can help address in these areas. More information on the Fund and the grant application process can be found on the Gulfport Energy Fund webpage on the Foundation for Appalachian Ohio’s website, www.AppalachianOhio.org.
Sophie Kruse Dix Communications
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hanks to some free, statewide educational programs, Ohio teachers are able to add some new skills to their teaching arsenal. Ohio Oil and Gas Energy Education Program (OOGEEP), an education program that promotes public awareness of the gas and oil industry, has put on these teacher workshops since the program’s inception 16 years ago. “We were really seeing a lack of really good science education as it relates to the oil and gas industry,” said Rhonda Reda, the executive director of OOGEEP. “The goal of our board of directors is to work with the education community on their science curriculum.” The curriculum has been created and is continued to be revised by a group of educators to keep it relevant with the changing education standards and also keeping up with industry demands. “We’re really looking for high quality, professional development,” said Jeanne Gogolski, a former teacher who now works to develop the curriculum with OOGEEP. “We give [teachers] ideas, background, content and great, fun and interesting activities to get this information to the students … Industry and education should be collaborating. Kids need to have accurate information about what’s going on … We think the best way to do this is to connect industry and education so they’re getting the right information about all these topics.” At the workshops, teachers have hands-on experiments, guest speakers and activities. They also get the opportunity to tour an oil field. Teachers are then able to receive a graduate credit at Ashland University for attending the workshop. At the end of the workshop, attendees receive a box of materials worth $125 to use in their classrooms, that allows them to recreate things they experienced at the workshops with their students. One of the underlying goals is to give students a real-world connection. Teachers will be able to connect what they’re required to teach in the classroom to an industry where there are numerous opportunities awaiting students when they finish school. This connection is made through education in STEM fields: science, technology, engineering and mathematics. “We’re giving them context for the learning that’s happening. That becomes memorable for students,” said Gogolski. “There are plenty of jobs available to [them], whether it’s coming out of high school with a little training all the way to getting a Ph.D. They require skills in STEM, which is an important focus in Ohio education.” Another large emphasis at the workshops is how to attract students to pursue a career in the field. “One of our concerns was that we did not have young kids pursuing careers in the oil and gas industry,” Reda said. Since the start of the workshops, more than 2,600 teachers from all 88 counties in Ohio have come through the program, and the workshops constantly being filled to maximum capacity. The programs are completely free for the teachers, and are funded through the crude gas and oil industry. A nickel is received for each barrel of oil sold, and a penny is received for each MCF sold. The next teacher workshop will be July 30 and 31 at the R.G. Drage Career Technical Center, 2800 Richville Dr. SW, Massillon.
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