March 2014 Ohio Gas & Oil Magazine-Southern Edition by Gannett NEO

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Utica Seminar looks at 2020

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Gas & Oil

March 2014 Edition - Dix Communications

Table of Contents

Southern Zone Edition

PUBLISHERS

20,000 O/G Wells Could be Drilled Laurie Huffman / Dix Communications

Andrew S. Dix Northern/ Southern Zone ASDix@dixcom.com

Forum is Presented by Physics Class Judie Perkowski / Dix Communications

G.C. Dix II Southern Zone GCDixII@dixcom.com

Wolf Run, Barkcamp Eyed for Drilling

History of Moore Well Service

Lauren Sega / Dix Communications

EXECUTIVE EDITORS

Sunoco Pipeline Moves Ahead

Train Accidents Stir Worries

Ray Booth Southern Zone RBooth@dixcom.com

Nexus Pipeline Completion Pushed

Education Program has Scholarship

Partnership Leads to Student Opportunity

Chesapeake Founder Re-emerges

Smail Headed to Hall of Fame

Sins of Omission

Momentum, It’s Customers Come to Aid

Clean Fuels Ohio Clears the Air

Pride of the Hills Expanding

Chesapeake to Begin Move

STEPS Discusses Safety Regulations

Property Owners Have ‘ROW’

Marc Kovac / Dix Capital Bureau

Bobby Warren / Dix Communications Matthew Brown / Associated Press Laurie Huffman / Dix Communications

Laurie Huffman / Dix Communication Bobby Warren / Dix Communications Bill Dannley / Leasemap Ohio

Kimberly Lewis / Dix Communications

Judie Perkowski / Dix Communications

Brandon Zaffini / Dix Communications Laurie Huffman / Dix Communications Judie Perkowski / Dix Communications Dan Plumley / Attorney

David Dix Northern Zone DEDix@dixcom.com

Rob Todor Southern Zone RTodor@dixcom.com Lance White Northern Zone LWhite@dixcom.com Roger DiPaolo Northern Zone RDipaolo@dixcom.com

REGIONAL EDITORS Cathryn Stanley Southern Zone CStanley@dixcom.com Niki Wolfe Southern Zone NWolfe@dixcom.com Judie Perkowski Southern Zone JPerkowski@dixcom.com Kimberly Lewis Northern Zone KLewis@dixcom.com Erica Peterson Northern Zone EPeterson@dixcom.com

Dix Communications - Gas & Oil

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ADVERTISING DIRECTORS Kim Brenning Southern Zone Sales Cambridge, Ohio Ofﬁce KBrenning@dixcom.com 740-439-3531

March 2014 Edition

Ohio

Gov Aides Knew of Pro-Drilling Plan

Reverse Domino Effect

Thanking Gas & Oil Industry for Growth

Gas & Oil Impact on Real Estate

Jeff Kaplan Southern Zone Sales Alliance & Minerva, Ohio Ofﬁce JKaplan@dixcom.com 330-821-1200

Talks About Trans Alaskan Pipeline

Hearings on Marketing State Sites

Rhonda Geer Northern Zone Sales Wooster & Holmes, Ohio Ofﬁces RGeer@dixcom.com 330-287-1653

OKKI Energy is Doing OK

Kasich No Longer Supports Drilling at State Parks

Utica 2020

Oklahoma Drillers Look to Reuse Water

Marketing is the Key to Growth

Association Opposes Proposed Severance Tax

New Report from Ohio University

Focusing on the Big Picture

The ‘Hit Parade’

Macchiarola Named Anga Vice President

US RT 30 to Move Out of Stark County

Peggy Murgatroyd Southern Zone Sales Barnesville and Newcomerstown, Ohio Ofﬁces PMurgatroyd@dixcom.com 740-425-1912 Barnesville 740-498-7117 Newcomerstown

Harry Newman Northern Zone Sales Kent, Ohio Ofﬁces HNewman@dixcom.com 330-298-2002 Janice Wyatt National Major Accounts Sales Manager JWyatt@dixcom.com 330-541-9450 Jeff Pezzano VP Advertising Sales & Marketing Kent Ohio Ofﬁce JPezzano@dixcom.com 330-541-9455

COVERAGE AREA OTTAWA

MARION

WAYNE YNE

KNOX

COSHOCTON

MADISON

LICKING FRANKLIN LIN

FAIRFIELD

PERRY

VINTON

HARRISON

MONROE

MORGAN WASHINGTON

HOCKING ROSS HLAND

ATHENS

MEIGS

NORTHERN ZONE SOUTHERN ZONE PIKE

JACKSON

Rachel Sluss / Dix Communications

Laurie Huffman / Dix Communication

Judie Perkowski / Dix Communications Marc Kovac / Dix Capital Bureau

Judie Perkowski / Dix Communication Marc Kovac / Dix Capital Bureau

Judie Perkowski / Dix Communications Sarah Terry-Cobo / The Journal Record Niki Wolfe / Dix Communications

Judie Perkowski / Dix Communications

Ginny Favede / Belmont County Commissioner Frank McClure / Attorney

CARROLL

BELMONT

NOBLE

PICKAWAY AY

COLUMBIANA

GUERNSEY

MAHONING

STARK ST

HOLMES

MORROW ORROW ARE UNION DELAWARE

FAYETTE

SUMMIT

MEDINA

Parker Perry / Dix Communications

PORTAGE

JEFFERSON

DIN

RD FO W RA

RICHLAND

WYANDOT

ASHLAND

SENECA

COCK

TRUMBULL

LORAIN

HURON

GEAUGA

TUSCARAWAS

SANDUSKY

CUYAHOGA

ERIE

Julie Carr Smyth / AP Statehouse

Laurie Huffman / Dix Communications

Gas & Oil

Southern Zone Edition

March 2014 Edition - Dix Communications

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Dix Communications - Gas & Oil

March 2014 Edition

Laurie Huffman Dix Communications properly,” said Simmers. He indicated the ODNR has the authority to approve well construction plans, and make changes to them. Once drilling starts, the company involved must report to the ODNR every step of the way, and the ODNR monitors that process as well. “If a company does something wrong while drilling, we have the authority on site to shut them down. It costs a company $100,000 to $150,000 per day to stop production. And, we can do that, and then we can require them to run the tests we request. Not many states have that authority,” Simmers said. He noted many states are using the regulations set by the ODNR for oil and gas production as a model, and he said that is something that makes the agency extremely proud.

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LLIANCE -- We have all heard oil and gas is very big business. And, during a February talk given by Rick Simmers, chief of the ODNR’s Oil and Gas Resources Management Division, this fact became even more evident. It costs approximately $500,000 to $1 million to construct each well pad, and somewhere between $7-to-$10 million to drill just one well, using hydraulic fracturing methods, Simmers explained. Expensive, yes. Yet, these wells in the Utica shale formation have the potential to pay back the initial investment within just three months. “And, some say the production life of a well can be up to 50 years,” Simmers added. “So, you can see the potential.” Simmers spoke to Rotary members from Alliance, within Stark County, and along with outlining the amazing potential for oil and gas in Ohio, he also reiterated what we are seeing only the early stages of operation. “We now have 40 very large oil companies that have moved into the area,” said Simmers, “including Exon, Chevron, BP, and Chesapeake, which is the company that got the drilling started in the Utica.” Simmers said he has been with the ODNR for the past 28 years, and he never thought he would see this kind of development here. As of mid-February, there were 1,000 permits for drilling issued in the area, with move than 700 wells already drilled and 301 in production. In addition, there has been $12 billion spent in infrastructure in Ohio since 2011, and so far, it is still not enough to handle the production. And, the demand will only keep growing, dramatically so. Simmers stressed it is estimated there is a potential in the Utica for 20,000 wells to be drilled. “Of the 700 wells completed, we have 301 in production, and the other 400 that are not in production are mainly waiting for infrastructure,” said Simmers. He explained the gas and oil companies and the processing plants work closely together and there are monetary penalties if promises on either end are not met. If a well is not producing as promised, the company will be penalized by the processing plants, and, similarly, if a plant is not able to handle the amount being produced they promised to, there will be penalties. “We are in the very early stages of production. We know it has to be done properly, and we’re here to make sure it’s done

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Gas & Oil

Southern Zone Edition

March 2014 Edition - Dix Communications

Fracking Forum is presented by

award-winning physics class Judie Perkowski Dix Communications

Hill of the Ohio Oil & Gas Association and Greg Pace of the Guernsey County Citizen Support on Drilling Issues. United Way and Eclipse Resources also had table displays and gave attendees an opportunity to talk one-to-one about services they provide to the community. jperkowski@daily-jeff.com

Judie Perkowski/Dix Communications The Buckeye Trail High School senior physics class, which won the ﬁrst three levels of a nationwide contest, “Solve for Tomorrow,” sponsored by Samsung and partners. They include, l to r, front row, Tyler Doudna, Travis Pontius, Alexis Williams, Samantha Workman; second row, Sadie Taggart, Catie Smith, Kelsey Beros and Katelyn Bennett; back row, Anthony Reicher, Lane Starr, Spencer Warden, Grant Johnson, science teacher; Morgan Dougherty, Jonathan Morton, Josh Toland, Adam Evans.

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LD WASHINGTON — Sixteen students in a senior physics class at Buckeye Trail High School demonstrated a science project they developed for a presentation about hydraulic fracturing and analysis of its effect on local water quality. The award-winning efforts of the class went almost unnoticed, evidenced by the sparse attendance to the event. Billed as a Fracking Info Forum held in the school’s auditorium recently, the students and their science teacher, Grant Johnson, videotaped the event, the third stage of a contest, “Solve for Tomorrow,” sponsored by electronics giant Samsung and its partners. The class entered the contest last fall, based on an idea by Elizabeth Kline, an instructor for Zane State’s Environmental Science Health & Safety Program. “It was a collaboration between teachers and students,” said Johnson. “We won the first phase of the contest for ‘best idea’ for a class project. All public school teachers were invited to submit an entry.” Their winning idea to focus on the effect of hydraulic fracturing on water quality, allowed them to compete as one of 255 state finalists, where they won a two Galaxy tablets. At the third phase of the contest the class was one of 51 state winners of a Samsung $20,000 tech package, which included a video kit. The class was required to use the video kit to record their presentation and submit it to Samsung. If they are chosen as one of 15 state winners, they will compete for a tech package valued at $35,000 and a chance to go on to the national competition where five winners will be announced in Washington, D.C. and awarded a $140,000 tech package. The contest, Solve for Tomorrow, sponsored by Samsung and its partners, was initiated to encourage students to engage in a STEM education — Science, Technology, Engineering, Mathematics. The students spoke to gas and oil experts and visited several well sites in the area. They tested samples taken from water sources within close proximity to the wells. Their PowerPoint presentation revealed favorable results for all tests performed, meaning none were below acceptable levels. After the class presentation, attendees heard remarks from several speakers: Randy Sheppard of the Guernsey County Board of Health; Elizabeth Kline of Zane State, Stephanie Laube ofUnited Way of Guernsey & Noble Counties, David

Dix Communications - Gas & Oil

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ENGINEERING & AUTOMATION

March 2014 Edition

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Gas & Oil

Southern Zone Edition

March 2014 Edition - Dix Communications

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Dix Communications - Gas & Oil

March 2014 Edition

Wolf Run, Barkcamp eyed for drilling Marc Kovac Dix Capital Bureau

OLUMBUS — Newly released documents outline plans to market several state parks for oil and gas drilling by the same state agency that regulates such activities in eastern Ohio’s emerging shale oilfields. The Ohio Department of Natural Resources’ “draft outline for communication plan” and other records obtained by a liberal advocacy and environmentalist groups also show a senior adviser to Gov. John Kasich knew of the strategy, which included gaining support from industry and business groups to counter environmental concerns. “What is outrageous is that the document both recognizes the regulatory role of ODNR and then goes on to list the very organizations it regulates as allies in their propaganda campaign to drill in state parks,” Brian Rothenberg, executive director of ProgressOhio, said in a released statement. “It is bad enough that corporations influence policy through ALEC and Citizens United, but these are full-stop Nixonian tactics.” An ODNR spokeswoman, however, defended the draft plan, which she said “was never implemented, just used for discussion.” “Any responsible organization plans in advance what it is going to do especially when it knows it is going to face fierce opposition to progress,” Bethany McCorkle, a spokeswoman for the agency, said in a released statement. “The fact that these secretly funded extremist groups are attacking us today validates the wisdom of anticipating the attack and planning for it.” Rob Nichols, a spokesman for the governor, added in a released statement, “I don’t know what specific pieces of paper different people saw a year and a half ago, but of course the administration is going to coordinate and plan ahead on an important issue like gas production on state land. If we didn’t, these same extremist groups would be attacking us for not planning ahead.” The ODNR documents note plans to “exercise state-owned drilling rights” at Sunfish Creek State Forest in Monroe County, Wolf Run State Park in Noble County and Barkcamp State

Park in Belmont County “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 opponents, who are skilled propagandists.” The latter includes the Sierra Club, Ohio Environmental Council, Rep. Bob Hagan (D-Youngstown), the Natural Resources Defense Council and others, who, the plan notes, “will attempt to legally and physically halt the drilling,” “attempt to create a public panic about perceived health risks” and “slant news coverage against us.” ODNR would focus its communications on countering such efforts by spotlighting the “millions of new dollars to restore deteriorating park and forest infrastructure... repair deteriorating dams controlled by ODNR” and “thousands of new jobs for Ohioans,” among other “Key Messages” detailed in the marketing strategy. Potential “stakeholders” and “allied groups” for delivering ODNR’s message about fracking on state-owned land included chambers of commerce and energy company Halliburton. The documents drew quick criticism from environmental groups. “Our state government should not be frittering valuable time and taxpayer money on a PR campaign designed to ‘neutralize’ legitimate concerns about impacts to public lands and public health and safety from fracking in our state parks and forests,” Nathan Johnson, staff attorney for the Ohio Environmental Council, said in a released statement. “The ODNR should be an impartial watchdog, not an industry cheerleader. It’s shocking to learn that ODNR laid plans to actively enlist the help of extractive industries to ‘marginalize’ respected voices for the preservation of our natural heritage.” Marc Kovac is the Dix Capital Bureau Chief. Email him at mkovac@dixcom.com or on Twitter at OhioCapitalBlog.

Gas & Oil

March 2014 Edition - Dix Communications

Southern Zone Edition

History of Moore Well Services in Cuyahoga Falls includes two generations of experience Lauren Sega Dix Communications

Falls. “We both grew up in the oil field,” said Jeff Moore, a member of the Board of Trustees for the Ohio Oil & Gas Association. “It was hands on all the time. From the time we could work our dad had us either working on equipment or learning the business. But it also evolves with time, so we learn something new every day.” Jeff’s experience in the oil and gas industry was furthered by his work at K.S.T. Oil and Gas Company from 1987 until 1996, according to the Moore Well Services website. It was there that he learned equipment operation and installation of natural gas compressors and pipelines. Keith Moore spent time at K.S.T. as well, gaining experience as a mechanic, truck driver, equipment operator and “where he is today, a specialist in the drilling and service rig operations,” according to the website. Jeff Moore said that although the history of Ohio oil and gas is over 150 years, “he (Robert Moore) and now we continue to develop new ways to produce and service the conventional wells that is the back bone of the industry and providing service that customers can count on. Employing about 25 people, including 13 full-time employees, three to five part-timers and another five sub-contractors, Moore Well Services, is readily adapting to changes in the oil and gas industry, Jeff said. “The core of the business has not changed,” said Jeff Moore. “We are in the energy business, producing and providing local energy for the residents and business owners in the area.” Moore Well Services still serves other oil and gas companies that have wells throughout the state of Ohio, local municipalities and school districts, developers and contractors and many others. But the technology that supports these services is what has changed, said Jeff Moore. “We are able to monitor each well or field remotely and will be alarmed if anything changes,” he said. “Every 15 minutes

we scan our network of wells connected to the Internet for reports and changes in operations.” Jeff Moore said the family business started after K.S.T. sold. Robert Moore was Vice President of K.S.T. and “wanted to further his career and his passion of utilizing and producing the natural resources that are available.” While the business is now run just by the two Moore brothers, Jeff Moore said there is still a place for family in the oil business. “Like any business, you have to dig in and weather the storm,” he said. “At the end of the day, or storm, I feel there will still be a place for the family business in our industry.”

10230779

oore Well Services, founded in 1996, was started as a family business by Robert Moore. Robert’s sons, Jeff and Keith Moore, continued the business at 837 Seasons Road in Cuyahoga

www.OhioGO.com

Dix Communications - Gas & Oil

March 2014 Edition

experienced - knowledgeable - trusted - leaders in:

Mineral rights explore your options with kiko!

our results speak for themselves November 4, 2013 - 2000 Acre Mineral Rights Auction: Belmont, Monroe, Tuscarawas, Knox, Stark, Holmes, and Morrow Counties in Ohio.

Auction Total: $5,856,557.00 November 16, 2013 - 1072 Acre Surface and Mineral Rights Auction: Lawrence and Mercer Counties, Western Pennsylvania.

Auction Total: $9,166,905.00

Gas & Oil

Southern Zone Edition

March 2014 Edition - Dix Communications

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Dix Communications - Gas & Oil

March 2014 Edition

Sunoco Pipeline project moves ahead Bobby Warren Dix Communications

OOSTER — A buried pipeline to transport new petroleum products can move forward in Wayne County now that the commissioners approved an easement for Sunoco Pipeline. Dubbed the Tiffin to Easton Pipeline, Sunoco, operating for Inland Corp., will install a new, 12-inch steel line within primarily the road rights-of-way. It will run parallel to an existing 8-inch line. Among the products it might convey are gasoline, fuel oil, diesel fuel, jet fuel and kerosene. Sunoco wanted to begin the project in October, but there was some delay because the plan called for “open cuts” in township roads, said Rob Kastner, the county’s water management engineer and administrator of the storm water pollution management regulations. Trustees wanted the company to bore underneath the road and not cut through the pavement. The pipeline will stretch about 22 miles in Wayne County. It will enter north of West Salem and travel in a southeasterly direction, eventually running somewhat parallel to Sterling Road and cross south of the roadway to the east of state Route 3. In Milton Township, it will run to the north and parallel to state Route 604. The pipeline will go under Interstate 71 and state Routes 57 and 585. It will terminate at a valve station in Easton in Chippewa Township. When crews go underneath I-71, they will bore horizontally for 1,500 feet. Wayne County Commissioner Scott Wiggam said the county engineer and township trustees have signed off on the easement. Lisa Johnson, deputy director of the Planning Department, said the project went through the construction application permit process. Some areas of the pipeline will be in a flood plain. The contractor will need to make sure everything is put back in the same condition and the surface will have to be at the original grade. The project will disturb 185 acres of ground in the county, and because of this, Sunoco needed to submit a storm water pollution prevention plan, which it did. Kastner said the company is going beyond what is required for sediment and erosion control. The Ohio Environmental

Protection Agency looked at the wetland areas and stream crossings, and “We looked at everything outside of that,” Kastner said. When the project was announced in September, Sunoco Logistics Partners CEO Michael J. Hennigan said it would “give refiners and marketers in the Midwest convenient and costeffective access to eastern Ohio and western Pennsylvania markets, including Pittsburgh.” It is expected to have the ability to transport 85,000 barrels per day initially, with the ability to increase the capacity to 110,000 barrels per day. The project was scheduled to be operational by May 2014. Kastner said it is about a seven-month project when construction begins. Reporter Bobby Warren can be reached at 330-287-1639 or bwarren@the-daily-record.com. He is @BobbyWarrenTDR on Twitter.

Bobby Warren/Dix Communications Wayne County Water Management Engineer Rob Kastner checks out the plans for the Tifﬁn to Easton Sunoco Pipeline project. About 22 miles of pipe will be installed to transport petroleum products. It will enter Wayne County north of West Salem and end in Easton in Chippewa Township.

Gas & Oil

March 2014 Edition - Dix Communications

Southern Zone Edition

Train accidents stir worries about crude transport Matthew Brown Associated Press

ILLINGS, Mont. (AP) — At least 10 times since 2008, freight trains hauling oil across North America have derailed and spilled significant quantities of crude, with most of the accidents touching off fires or catastrophic explosions. The derailments released almost 3 million gallons of oil, nearly twice as much as the largest pipeline spill in the U.S. since at least 1986. And the deadliest wreck killed 47 people in the town of Lac-Megantic, Quebec. Those findings, from an Associated Press review of U.S. and Canadian accident records, underscore a lesser-known danger of America’s oil boom, which is changing the global energy balance and raising urgent safety questions closer to home. Experts say recent efforts to improve the safety of oil shipments belie an unsettling fact: With increasing volumes of crude now moving by rail, it’s become impossible to send oilhauling trains to refineries without passing major population centers, where more lives and property are at risk. Adding to the danger is the high volatility of the light, sweet crude from the fast-growing Bakken oil patch in Montana and North Dakota, where many of the trains originate. Because it contains more natural gas than heavier crude, Bakken oil can have a lower ignition point. Of the six oil trains that derailed and caught fire since 2008, four came from the Bakken and each caused at least one explosion. That includes the accident at Lac-Megantic, which spilled an estimated 1.6 million gallons and set off a blast that levelled a large section of the town. After recent fiery derailments in Quebec, Alabama, North Dakota and New Brunswick, companies and regulators in the U.S. and Canada are pursuing an array of potential changes such as slowing or rerouting trains, upgrading rupture-prone tank cars and bolstering fire departments. Company executives were expected to offer a set of voluntary safety measures in the coming days at the request of U.S. Transportation Secretary Anthony Foxx. “I’m absolutely positive the railway industry will come up with techniques to define how to minimize risk,” said Allan Zarembski who leads the rail-safety program at the University of Delaware. “The key word is ‘minimize.’ You can’t eliminate risk.”

Since 2008, the number of tanker cars hauling oil has increased 40-fold, and federal records show that’s been accompanied by a dramatic spike in accidental crude releases from tank cars. Over the next decade, rail-based oil shipments are forecast to increase from 1 million barrels a day to more than 4.5 million barrels a day, according to transportation officials. By rail, it’s roughly 2,000 miles from the heart of the oil boom on the Northern Plains to some of the East Coast refineries that turn the crude into gasoline. Trains pulling several million gallons apiece must pass through metropolitan areas that include Minneapolis, Chicago, Cleveland and Buffalo. Some cities such as Chicago have belt railroads that divert freight traffic from the metropolitan core. But elsewhere, railroad representatives said, the best-maintained and safest track often runs directly through communities that were built around the railroad. Trains sometimes have no option but to roll deep into populated areas. That’s the case in Philadelphia, New Orleans, Albany, N.Y., and Tacoma, Wash. Experts say the explosive nature of Bakken oil derailments caught everyone off guard — from regulators to the railroads themselves. “I don’t think people understood the potential for a problem if there were a derailment,” said Jason Kuehn, a former railroad executive and now vice president for the industry consulting firm Oliver Wyman. A major accident was narrowly avoided last month in Philadelphia, where six tanker cars carrying oil derailed near the heart of the city on a bridge over the Schuylkill River. The CSX freight train had picked up North Dakota oil in Chicago and was headed for a refinery in South Philadelphia. Nothing was spilled, but the accident rattled nerves. Sandy Folzer, a retired professor in Philadelphia, said she worries about oil cars travelling alongside commuter rails. “During rush hour, I imagine there are a couple hundred people on each train,” Folzer said. “That scares me, that there’s explosive material so close to where commuters are.” Proposals to route trains away from population centers are modeled on rules adopted after the 2001 terrorist attacks to restrict cargoes even more hazardous than oil — explosives,

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Train accidents stir worries about crude transport Hydraulic Solution Center radioactive material and poisonous gases. When the rules were being written, California regulators pushed their federal counterparts to include oil. But Transportation Department officials said they were “not persuaded.” Federal safety officials say it’s time to reverse that decision, given the huge growth in tank cars carrying crude and ethanol, another flammable liquid involved in recent derailments and explosions. The rules gave railroads broad discretion, and routing decisions are not automatically reviewed by regulators. But the Federal Railroad Administration is authorized to reject any routes found to be too risky. That has never happened since the rules took effect, said FRA Associate Administrator Kevin Thompson. Even where trains can be re-routed through less-populous areas, critics say that simply shifts the risk to smaller communities with fewer resources to handle a fiery accident. Rural and suburban municipalities in Maine, Illinois and Vermont already have pushed back against the proposal. In Hartford, Vt., Town Manager Hunter Rieseberg said it was “a fantasy” to think that moving hazardous shipments through rural areas would resolve safety problems. John Hanger is former Pennsylvania secretary of environmental protection and now a Democratic candidate for governor calling for safer crude transportation. He is critical of regulators for suggesting that “lives are more precious in urban areas because there are more people there. That’s an ethical, moral calculation that has to be avoided at all costs.” The routing rules in place for other hazardous materials list 27 factors to consider, including shipment volumes, nearby population densities and proximity to “iconic targets” or environmentally sensitive areas. Rail companies weigh whether routes are “practicable” and consider economic impacts such as rail network congestion. While that can involve trade-offs, transportation consultant Steven Ditmeyer said railroads have made huge strides since the industry was deregulated in 1980. “You cannot avoid the economic issues,” said Ditmeyer, an adjunct professor at Michigan State University. “Because the risk is so high, the railroads do have an incentive to run a safe railroad.” But pointing to Lac-Megantic, he said, “sometimes they screw up.” Associated Press Writer Maryclaire Dale in Philadelphia contributed to this report.

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Nexus pipeline completion pushed to 2016-2107; another new pipeline planned Laurie Huffman Dix Communications

TARK CO. -- The completion date for the Nexus pipeline has been pushed out from 2015 to 2016 or 2017. The pipe will traverse through Stark County on its way from processing plants in Ohio up to Michigan and Canada. The 250-mile project is a partnership between Spectra, Enbridge, and DTE Energy, and it is expected to carry up to 2 billion cubic feet of gas a day to a hub near Detroit, according to a report from Energy Source Natural Gas Services. The path of the 30-to-36-inch pipeline is planned to cross through potions of Washington, Lake and Marlboro townships, but that plan is subject to change, pending federal approval. Along with the Nexus pipeline, Spectra has also announced another project called the Ohio Pipeline Energy Network (OPEN). This pipe line will be built in Columbiana, Carroll, Jefferson, Belmont, and Monroe counties, and will consist of approximately 73 miles of new 30-inch diameter mainline pipe

and associated pipeline support facilities in Ohio, including one compressor station. OPEN will transport newly emerging natural gas supplies to markets, and Texas Eastern marketing activities have led to the identification of Chesapeake Energy as an anchor shipper fro the OPEN project, according to a release issued by Spectra Energy. OPEN will provide shippers with new receipt points in numerous Ohio counties, as well as adding a primary receipt point in the Uniontown, Pa., area, in order to deliver to points across the Texas Eastern market delivery and access area in the Central and Southeast regions. Spectra has conducted an open season to seek interest in the project, and has announced agreements are in place with an anchor shipper and regulatory review of the project has begun. The company continues to engage with potential customers interested in capacity as it moves forward with the execution plan. For more information, email acdiestel@spectraenergy.com.

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Ohio education program has industry scholarship

OLUMBUS -- The Ohio Oil and Gas Energy Education Program and the Ohio Oil and Gas Energy Education Foundation are offering scholarships to students pursuing careers in Ohio’s natural gas and crude oil industry. To be eligible for the scholarship, students must have an energy career goal, and are required to be either an Ohio resident or planning to attend or enroll in an accredited Ohio college, university, or technical school. The scholarships can be renewed up to four years. Those interested must apply by March 31, 2014. Students are judged on career goals, an essay, letters of recommendation, academic achievement, special recognitions, awards, community service and outside activities. Scholarship winners will be announced in May 2014. “Changes in technology and energy demand continue to drive our need to encourage more students to pursue careers in Ohio’s oil and gas industry,” states Rhonda Reda, executive director, OOGEEP and the Foundation. “The scholarships are part of our organization’s continued STEM (science, technology, engineering and math) educational and workforce development programs. “OOGEEP is also helping students and the public on how to obtain training for these good paying jobs. We have identified and compiled a list of qualified training programs offered by Ohio educational institutions categorized by career path. To date, OOGEEP has identified educational and training programs at more than 70 different Ohio colleges, universities, career centers and technical schools. “The list can be found at www.oogeep.org/industry-workforce/careers/.” “Ohio’s oil and gas industry voluntarily funds the scholarship program through contributions, memorial donations and proceeds from special industry training programs,” adds Frank Gonzalez, GonzOil, Inc., and the OOGEEP/ Foundation Scholarship Committee Chair. “Ohio ranks fourth in the number of wells drilled behind Texas, Oklahoma and Pennsylvania. The increased oil and gas exploration in the state is helping to turn Ohio’s economy around. Our industry is creating and supporting thousands of Ohio-based jobs in upstream, midstream and downstream ac-

tivities. Scholarships and qualified training programs are crucial to our Foundation’s goal of developing an educated and well trained oil field workforce in Ohio.” The mission of OOGEEP is to facilitate educational, scholarship, safety and training programs; to promote public awareness about the industry; and to demonstrate to the general public the environmental, energy and economic benefits of Ohio’s independent natural gas and crude oil producers. OOGEEP and the Foundation are funded by Ohio’s natural gas and crude oil producers and do not use taxpayer dollars. For more information on OOGEEP and full details of the scholarship program, as well as the Career in Ohio series, visit www.OOGEEP.org.

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Mid-East and Pioneer Pipe partnership leads to student opportunity

ARIETTA -- Today’s version of career-technical education is definitely “not your father’s vocational school,” and the recent partnership between MidEast Career and Technology Centers and Pioneer Pipe Inc. validates that statement. This year five senior students who are enrolled in MidEast’s Welding Technology Program have transitioned from learning in the lab on the Zanesville Campus to attending lab each day at Pioneer Pipe Inc. in Marietta. This hand-selected group of students receives valuable training and work experience at Pioneer while continuing their academic coursework at the Buffalo Campus in Senecaville. This unique pre-apprenticeship program affords the students the opportunity to complete various welding certifications, which could potentially lead to them becoming second year journeymen at the end of their senior year of high school. The typical path for the apprenticeship program consists of five years of on-the-job training during the day and school in the evenings. Dave Archer, owner and CEO of Pioneer Pipe Inc., said that the program initially began because the company had a difficult time finding capable employees. That’s when he thought to try using career centers and piloted the program with students from Washington County Career Center. Students are selected to participate in the program based on their grades, attendance, welding skills, and work ethic. Archer said, “We’re just a small part of this equation. Students and schools are the key parts. This program is a huge part of our growth in the pipeline fabricating business.” Archer is confident that “with the partnerships developed with career centers, the program will continue to grow and allow these students to have a career and be able to spend their

entire life at home and not have to leave the area.” Initially the program began with one instructor, Justin Betts, and as it has grown they have added Phil Wells as an additional instructor. Mid-East students in the program include Luke Shultz from Cambridge High School and Dakota Mooney, Zachery Miller, Kameron Rayner and Tyler Wiley, all from Caldwell High School. Three of these students have already completed their high school coursework using A+ online curriculum. They have also been able to stay involved in extracurricular activities at their home schools with three of them playing football and two of them wrestling this year. Dave Irvin, Mid-East Welding Technology instructor said, “This is just an overall great opportunity for young people.” Mid-East Superintendent William A. Bussey is enthusiastic about the partnership. “The relationship between Mid-East Career and Technology Centers and Pioneer Pipe is the most beneficial partnership I have seen in my 38 years of being an educator. Welding students learn valuable skills to earn certifications in an environment hosted by Pioneer Pipe. Then, after successful completion of the program, they will be hired by the company and enter as a second-year apprentices. Pioneer Pipe benefits by having a pool of skilled welders in the ‘pipeline’, so to speak,” said Bussey. “Those of us at Mid-East and all involved in career-technical education appreciate the willingness of Pioneer Pipe to provide these experiences for students and hope to duplicate this partnership arrangement with other companies.” Participating students share the same excitement and fully understand the benefits. Senior welding participant Kameron Rayner said, “It has been a great opportunity to learn the skills

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Above: Mid-East student Luke Schultz works in the training lab at Pioneer Pipe Inc. in Marietta. Left: Pictured are, l to r, front row, Pioneer instructor Phil Wells, Tyler Wiley, Kameron Rayner and Mid-East Welding Instructor Dave Irvin; back row, Pioneer instructor Justin Betts, Luke Schultz, Zachery Miller and Dakota Mooney.

that are needed in the work place, while Mid-East continues to offer me an education. The partnership between the two has been great.” Tyler Wiley, another student in the program, agreed. “The partnership between Mid-East Career and Technology Centers and Pioneer Pipe has given me an opportunity that will set the foundation for the rest of my life,” said Wiley. “We are very excited to have this partnership with Pioneer Pipe Inc. and look forward to continuing to provide excellent opportunities for our students for many years to come. It’s truly a ‘win-win’ situation for all that are involve,” Mid-East Business Partnerships and Placement Coordinator Shannon Kenily said.

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REMOVED CHESAPEAKE FOUNDER REEMERGES WITH NEW VENTURE Laurie Huffman Dix Communications

ubry McClendon, the founder of Chesapeake Energy, has a new venture/partnership up and running, and according to Stark County Commissioner Richard Regula, he is again targeting the Utica shale formation. It has been reported McClendon has raised up to $500 million for his new venture, and he is ramping up with purchases in the region. McClendon, who was forced to step down as Chesapeake’s CEO in 2013, is staging what many are calling his “come back,” with American Energy Partners LP. However, Forbes Magazine stated in late 2013, McClendon will serve as manager of the partnership and will pick and choose the investment properties, but he is not the one holding the purse strings. The article also indicated American Energy Partners has raised $1.7 billion, in equity — and debt, while it has been busy buying acreage in the Utica. “The partnership currently has no assets, and it won’t until it raises enough money. In this partnership, the only thing you’re betting on is McClendon,” the article also stated. Even though American technology has brought the gas and oil industry to the point where enough product is available to heat 25 million homes a year, growth, growth, and more growth is still expected. Estimates by the International Energy Agency indicate by 2020, the U.S. will overtake Saudi Arabia and Russia as the world’s largest producer of crude oil and natural gas. The IEA also states the U.S. could be energy independent by 2035.

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Smail Headed to Oil and Gas

Hall of Fame Bobby Warren Dix Communications

OOSTER — More than five decades Still, “It’s been a good ride,” Smail said. “It’s a great industry, ago, Jim Smail had a dream to be in and it has been good to me. I was fortunate to get in the busithe oil and gas business, and on March ness in my mid-20s.” 5 the oilman, banker and rancher will be inductThe ceremony is March 5 in Easton, and Smail will be ed into the Ohio Oil and Gas Association Hall of among the dozen people to be inducted in the hall. Joining Fame. him are Fred A. Badertsher, Robert D. Barrick, Thomas P. Gi“When you get old, they think they have to give it to you,” usti, Steven L. Grose, James Halloran, Carl Heinrich, Dr. WilSmail said. “I heard you need to be 65 to be nominated liam Hlavin, Angela Howard, Thomas E. Niehaus, Richard C. — that’s scary.” Poling and Thomas E. Stewart. Smail owns or has interests in a diverse group of compaThe Ohio Oil and Gas Association inducts people every nies covering nearly all aspects of the gas and oil industry. four years, and there have been 113 inducted since 1987. J.R. Smail Inc. is on the production side of the business, and it has interests in Ohio, New York, Pennsylvania, West Virginia, Kansas, Texas, Louisiana, Illinois and Montana. He owns Poulson Drilling Co., which owns a drilling rig that is hired out on contract. Hagen Well Service LLC is a service company. He also has a trucking company, DTS Inc. Smail is a past president of the Ohio Oil and Gas Association, and in 2009 he was awarded the organization’s Patriot Oilfield Award. Getting the honor was a surprise, Smail said. He is humbled and honored to be considered among some of the people he looked up to in the industry, people like Ken Miller and Jim Morgan. Being in the gas and oil business is something Smail always wanted to do, ever since the day a producer started drilling on his father’s farm outside of Shreve when he was eight years old. He loved the sights, the sounds and the smells. The industry has been good to Smail, but recent changes with shale exploration has been making it more difficult for legacy producers. Shale exploration has driving up the costs for leases, pipe, drilling and completing wells, Smail said. “We have found so much gas in shale that the price of natural gas has dropped.” Back in 2009, the cost for gas was about $12 per thousand cubic feet, and it is now around $3. “It’s not been good for conventional operators,” Smail said. “There has been a lot of turnover as the older ones are getBobby Warren/Dix Communications ting out or turning over operations to the next generation. The Jim Smail, who received the Ohio Oil and Gas Association’s Oilﬁeld Patriot Award in 2009, is among a group of 12 people who are being regulatory side is more difficult.” inducted into the organization’s Hall of Fame March 5 in Easton.

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March 2014 Edition

SINS of

OMISSION Bill Dannley Attorney

n my column last month, I explained how oil and gas companies utilized county recorder’s offices to ascertain the legal status of a landowner’s mineral rights. I concluded by stating that, if contacted by a company, “Don’t be surprised if he or she knows more about your oil and gas rights than you do.” Well, that’s true. Sort of. I suppose I didn’t exactly lie -but I didn’t tell the truth, the whole truth and nothing but the truth, either. Yes, their abstractors exhaustively research the public record. The problem is not their research but the public record itself. The public record contains myriad mistakes, flaws and gaps that can seriously mislead or distort their conclusions. I describe these as falling into two categories: Sins of Omission and Sins of Commission. First, Sins of Omission. By that, I’m referring to the failure of companies and landowners to get relevant documents into the public record. For example: Recently I was contacted by a woman from West Virginia. She owned one-half the oil and gas rights, about 200 acres, under a tract in Carroll County and she couldn’t understand why no company or lease broker had contacted her. The Carroll County Recorder’s Office is on-line, so I did a quick search. I found she had signed a five-year lease a couple years before; the lease was still in term. When I asked her about that, she told me the company sent her a cancelation of the lease. She hadn’t recorded it. On my advice, she did. In short order, she signed a five-year lease with a handsome rental bonus. Again: About 20 years ago I leased a tract of land in Coshocton County for a company interested in Rose Run production. They shot a couple seismic lines and discovered an excellent drill site. Unfortunately, it was right on the property line. The adjacent neighbor had a well on her property, and the producer had a reputation for being difficult. When I told our lessor about this, he assured me that this neighbor had bought her lease and well from the producer years ago. I went to see her and, indeed, she pulled out an assignment giving her full rights. Again, she simply hadn’t both-

ered to record. I signed her, recorded the assignment and the new lease, concurrently. The company unitized the properties and drilled a terrific well. A variant type of Sin of Omission is the failure of landowners to file affidavits on recorded leases to clarify their legal status. Another example: About 30 years ago an oil and gas company hired me to research a large area in Seneca County, go in and lease it. To their dismay, I found that another company had gone through a couple years before and picked up over 500 leases in the target area, about 40,000 acres, all with fiveor ten-year terms. My client opted to purchase these leases (actually, my client didn’t have much of a choice!) None of these landowners had been paid. Not a dime. But of those leases only two landowners had bothered to file affidavits of non-payment, breaking their leases. The rest were held by the default leases. Although my client offered far better terms, only a few property owners got to enjoy the difference. (Landowners, if you’ve signed a five-year lease with a fiveyear option to extend: Head’s up. If the company that owns the lease fails to exercise their right for those additional years, make sure there’s a cancelation filed. If necessary, have your attorney pursue it.) So maybe, in my first article, I ever so slightly misspoke? Better to say that “producers know more about your oil and gas rights, as reflected in the public record, than you do? “ Not as punchy, or as lyrical. Well, show me some mercy. After all, how often does a guy that works in courthouses get to exercise poetic license? Next Month: Sins of Commission. I bet you can hardly wait. 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 takoff research and has over 400 Ohio townships on file. Bill can be reached at 330-262-0588. For more information visit www. leasemapohio.com.

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March 2014 Edition - Dix Communications

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Momentum, its customers come to aid of propane business

Kimberly Lewis Dix Communications

omentum’s ability to facilitate a delivery of propane gas during the week of Jan. 28 to Saline Oil and Supply Company in Salineville is “huge.” That delivery helped more than 35 residences and businesses have heat during this frigid weather and propane shortage. Momentum “did a wonderful job with the delivery,” said a spokesperson from Saline Oil and Supply Company. “We can’t get deliveries (of propane). Our suppliers aren’t able to get deliveries because of the propane shortage,” she explained. “We can’t get it if they can’t get it.” Momentum helped organize the delivery of 8,000 gallons of propane to Saline Oil by working with its customers who own and purchase the propane from its Scio facility. The Scio facility is operated by Momentum and is owned through a partnership with Access Midstream and EV Energy Partners to create Utica East Ohio Midstream. For the company which delivers propane to customers in Columbiana, Carroll, Jefferson and Stark counties, Saline Oil’s spokesperson calls the delivery and the efforts of Momentum’s employees “huge.” She noted her company made short deliveries, taking 100 gallons to as many customers as it could to get them through the crisis. Crews were still delivering emergency fuel on Thursday. They had already delivered fuel to 35 homes and businesses. “They were all critical,” she said of the customers. “All were very low or out already.”

“We are trying to weather this storm and doing the best we can,” she said of the crisis. She admitted she is worried about upcoming weeks. “We usually get to two deliveries a week. Now, we can’t get one,” she explained. “I’m hoping this crisis will break soon.” Eric Mize, emergency preparedness and public awareness manager at Momentum, received phone calls from both Columbiana County Emergency Management Agency Director Luke Newbold and Carroll County EMA Director Tom Cottis about the situation. Cottis has been working with the oil-andgas industries and knew Momentum had the product. Cottis commended Mize for setting up the delivery for Saline Oil, which was no easy task. “We are fortunate to have someone like Eric to work with and a good relationship with the company to get these results,” Cottis said. “It took a lot of time on his part to coordinate the delivery. He pointed out, “A lot of residents in Carroll County are on propane. Saline Oil serves many in the Fox Township area.” Mize acknowledged the delivery involved the hard work of many people at Momentum and the cooperation of Total Energy, which owns the propane being processed in UEO’s Scio facility, and Total’s customers. Mize said there were many phone calls to Oklahoma, Kansas, Colorado and Texas to make this delivery happen. Momentum “doesn’t own the product. Producers send the product to our plants to process it into a saleable commodity,” he explained. A midstream company, Momentum serves as essentially a middleman, creating a saleable product like

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March 2014 Edition

Momentum, its customers come to aid of propane business propane and butane from the raw product for a company and delivering it to the company’s customers. Although the Scio plant is only at 25 percent of its production capacity, Mize explained that 100 percent of its product is distributed to Total’s customers. He noted 37 percent goes out by truck, while 63 percent is sent by rail. He said 71.5 percent of the product being sent by truck stays in the Ohio regional area. Mize said 231 customers are served by the finished products leaving the Scio facility. He pointed out that the facility does not stock pile its finished products. “What is produced in our plant today is shipped tomorrow,” Mize explained. “Nothing is stored.” He has been told the propane shortage may have been caused by more propane being used in the Midwest this summer to dry wheat, more use during this historical winter and

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people not buying as much as they would have because of the area’s recent mild winters. “It was a perfect storm,” said Mize. He commended Total Energy and its customers for their willingness to “give up some of their propane to help Saline Oil.” “Not one person said no (to helping Saline Oil), Mize said. “Everybody had to work together to make this small miracle happen.” He noted that Momentum, Access Midstream and EV Energy “broke all kinds of records to safely get this plant built and into production.” Without the plant being in production, Momentum would not have been able to get Saline Oil the propane necessary to keep residents warm and businesses operating. “That’s huge,” Mize said. “I am so proud to work for a company that was able to pull this (delivery) off.” Main building includes 1140 sq.ft of office space, 2109 sq.ft garage w/loft, 2443 sq.ft repair garage w/12'ceilings, 312 sq.ft of storage and a detached 1200 sq.ft 2 stall garage. There is a 2 bedroom 1 bath apartment w/carport attached to main building also a 3 bedroom 2 bath w/attached garage house trailer behind main building. The structures all have updated roofs on them. This all sets on 2.5 acres of ground and sets between I-77 and St. R t. 21 access to I-77 in less than 2 minutes. This property would be good for any type of business, there is more than 1 acre of vacant land that could be made for storage to compliment your business. We could discuss any changes that would help with your business i.e. gravel, remodel, redesign or whatever your company may need to get set up and running. The lease on this property will be a Net lease for 1 year (term length negotiable). These properties are currently available. Lease will be 6000.00 per month. Feel free to contact me at 330-795-3185.

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March 2014 Edition - Dix Communications

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Clean Fuels Ohio clears the air

March 2014 Edition

Sam Spofforth

Judie Perkowski Dix Communications

There are approximately 20-plus CNG fuel stations in Ohio, with more on the way. Dan Hackett of IGS CNG Services, a visitor to the Energy Committee meeting, said his company is planning on building four CNG stations in Ohio this year, and four in 2015. And, he is not alone, dozens of companies already enrolled in the Clean Fuels Ohio program are planning to install CNG fueling stations for their businesses and some are even planning on incorporating a public fueling bay. In addition to Ohio Green fleets, Clean Fuels Ohio offers Drive Electric Ohio, Ohio NGV Partnerships and Driving Force Fleet programs. “Our focus is on greening fleets across the state and educating the public and decision-makers about responsible and sustainable transportation options,” said Spofforth. Since its launch in 2008, Ohio Green Fleets program has engaged hundreds of fleets across the state in workshops, seminars and individual meetings. There are 140 public and private organizations that have begun the process of earning Ohio Green Fleet certification. Clean Fuels Ohio administers federal and state grants through the U.S. Department of Energy and the U.S. Environmental Protection Agency. Since 2009, Clean Fuels Ohio has been awarded two grants through the U.S. DOE Clean Cities program and three grants through the U.S. EPA totaling more than $13 million in federal funding. For information about the Clean Fuels Ohio program, visit the website at www.cleanfuelsohio.org or call the office in Columbus at 614-884-7336. jperkowski@daily-jeff.com

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AMBRIDGE -- Since the gas and oil industry has taken over a good portion of Appalachian Ohio, folks have been waiting patiently for the cost of filling up at the pump to drop — dramatically — well, that day is here. Well, sort of. There’s a different kind of gas station for a different kind of vehicle that uses a different kind of gas. “Compressed natural gas filling stations are like any other gasoline filling station, except CNG is inherently less noxious, colorless, odorless, very safe, and doesn’t leak into the ground water,” said Sam Spofforth, executive director of Clean Fuels Ohio and guest speaker at a monthly Energy Committee meeting, sponsored by the Cambridge Area Chamber of Commerce, and led by President Jo Sexton, in the Chamber’s conference room. “The benefits of a Natural Gas Vehicle are proven and reliable. It uses a homegrown domestic fuel. Maintenance costs are equal or less than gasoline or diesel-powered vehicles. NGVs are quiet, 80 to 90 percent lower decibels than diesel. And, natural gas is abundant,” he said. Headquartered in Columbus, Clean Fuels Ohio’s primary program is Ohio Green Fleets, offered to any business or government agency fleet. Contracted services include detailed fleet analysis and recommendations, help with fleets to develop a comprehensive strategy for improving environmental performance through education, funding, collaboration, and strong public-private partnerships. While NGVs that run on CNG might be a breath of fresh air, that initial breath is not cheap, although data shows that the payback for investing in a NGV can be realized within two to three years. Conversion kits are available for cars and trucks, you can do it yourself, or hire a mechanic to install, for example, a bio-fuel CNG/gasoline conversion kit and CNG cylinder (tank). Prices for kits range from $995 to $1895 and cylinders range from $1395 to $3995. Also, locate CNG fueling stations in your area to be sure you’ll have regular access to the fuel. But, also note that the vehicle will run on regular gasoline with the bio-fuel conversion kit. “Bio-diesel can be made with a variety of oils, new or used vegetable oil or animal fat. It extends the life of the engine, and reduces carbon emissions like soot, into the atmosphere,” he said.

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Gas & Oil

March 2014 Edition - Dix Communications

Pride of the Hills

Southern Zone Edition

expanding

Brandon Zaffini Dix Communications

ILLBUCK -- While unemployment levels across major sectors of the U.S. economy remain high, a company in Killbuck has broken away from the negative trend and continues to expand, and hire, at a high rate. Pride of the Hills Gas, originally located in Big Prairie, has gone through several recent expansions in Killbuck, which is where the headquarters for the business will eventually end up. The owners of Pride of the Hills -- father and son Curtis Murray Sr. and Curtis Murray Jr. -- shifted much of the business to Killbuck in January 2010, revitalizing the industrial park there. Since then, they have added on to the warehouse building several times -- once in June and again in November with a building project that should be finished by April. Murray Sr. noted how helpful local officials had been with his relocation and expansion efforts. “The mayor, the city council, county commissioners and county engineers have truly bent over backward to help us, and are still helping us with this stuff,” he said. “It’s been amazing to experience that kind of support.” In September, the Holmes County commis-sioners approved a 10-year, 50 percent enterprise zone tax abatement for the company. Pride received and met the terms of a smaller enterprise zone abatement in May, completing a $10,000 project and hiring four employees, said Tom Wilke, executive director of the Holmes County Economic Development Council in September. Under the September agreement, the company committed to creating 40 full-time positions over the next three years. Wilke said at the time that the additional payroll represents nearly $1.5 million annually. Pride of the Hills has employees across the country in several oil-pivotal locations such as Dallas Fort Worth and Oklahoma City. That’s the national side to a business that, according to Murray Sr., is almost growing too fast. “We have to control the growth because demand is just so high,” he said. “And I won’t take on work that I’m not sure we will able to deliver.” 1 of 3 2/12/14 2:16 PMKillbuck industry rises - The Daily Record | Wayne & Holmes ... http://www.the-daily-record.com/business/2014/02/09/killbuck-...

The main piece of equipment sold and manufactured at Pride of the Hills is a gas production unit, or GPU, that helps oil companies separate gas from liquid. “When they get the gas out of the ground,” Murray Sr. explained, “it pushes a bunch of fluids up with it -- mostly oil and water. What a GPU does is separate the gas from the liquid. Then it separates the two liquids, the gas and the oil, from each other.” The purchasing price for a GPU ranges from $90,000$150,000, depending on the model. Murray Sr. estimated Pride of the Hills has been manufacturing, on average, 300 GPUs a year, and that’s in addition to several other types of equipment, including separator units and gas measurement skids. With demand so high, Murray Sr. and Murray Jr. have had to find creative ways to adjust to higher volumes. “The key to keeping up,” Murray Jr. explained, “is hiring good management. It’s all about good people. We have great employees, and that’s allowed us to grow where we are currently. And when you look over just the last five years, you would find that a lot of our managers are new. That’s what is most important. ... You can acquire materials, land, buildings and things like that, but the human factor is our biggest challenge in growing the business, and it’s the most important asset. We want to attract and maintain quality employees. “ As it stands right now, there are about 160 employees working for Pride of the Hills Gas, but that number is constantly going up. Murray Jr. said the type of employee Pride of Hills looks for are people who are dependable, who have a good work ethic and who want to come and participate in a growing business -- who are eager to learn and be a part of a growing organization. Pride of the Hills, on its end, can provide extensive job training to potential employees. “What we can offer,” Murray Jr. said, “is a lot of training so our employees can develop a real skill, so that they can be more marketable -- though hopefully they want to stay with us -- and a very competitive wage with good benefits.” Murray Jr. noted the turnover rate for employees was low, and the reason for that, he thought, is the workers feel good about their growth potential. “I think a lot of people are happy to find a place where they

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get so much training, where they can learn a life skill, and where they can expect something like a 30 percent increase from their entry-level wage after they finish our four year training program,” Murray Jr. concluded. Employment at Pride of the Hills Gas should be fairly stable going forward. Murray Sr. and Jr. indicated they were committed to keeping up with increased demand -- they had no intention of slowing down. Coming up shortly, they said, there was a possibility of establishing a joint venture with a company in Houston. Reporter Brandon Zaffini can be reached at 330-674-5676 or bzaffini@the-daily-record.com.

Dix Communications - Gas & Oil

March 2014 Edition

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Mike Schenk photo/www.buydrphotos.com The owners of Pride of the Hills shifted much of he business from Big Prairie to Killbuck in 2010. Since then they added on to the warehouse building several times – once in June and again in November with a building project that should be finished in April.

Mike Schenk photo/www.buydrphotos.com A crew works on a double gas production unit. Pride of the Hills has about 160 employees.

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Southern Zone Edition

March 2014 Edition - Dix Communications

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Dix Communications - Gas & Oil

March 2014 Edition

Chesapeake employees to begin move into Louisville field office in May or June

Laurie Huffman Dix Communications

OUISVILLE -- The Chesapeake Energy field office under construction in Louisville, a small city within Stark County, is nearly complete. Louisville City Manager Tom Ault reported he visited the site in early February to find about 20 trucks out in the lot belonging to various contractors and Chesapeake employees. “They’ve been working on the inside of the building for a while now, and the exterior has been complete for some time,” said Ault. “They want to begin moving into a portion of the building (possibly the top three floors) in April or May.” Ault said along with the office space, which is 87,000 square feet in diameter and five stories high, Chesapeake has also built a 6,000 square foot utility structure that houses pumps for the water system and serves as a maintenance accessory to the office building. When the company purchased the more than 300 acre site, the original plan was to also build a maintenance garage that would have been one floor, roughly the same square footage in diameter as the offices, with about eight or more overhead

doors, but that plan is currently on hold. “With construction slowing at the moment due to harsh weather, there is still activity going on, but just not at the same pace,” said Ault. “We’re hoping they will fill up all the acreage at the site. But, at this time the sand transload center that was part of the plan is also on hold.”

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March 2014 Edition - Dix Communications

Southern Zone Edition

Buckeye Steps group discusses safety regulations Judie Perkowski Dix Communications

AMBRIDGE -- The first Buckeye STEPS meeting of the new year at the brand new Zane State EPIC Center attracted a large crowd and some brand new members. STEPS President Joe Greco welcomed everyone and gave a brief overview of the impressive facility. He noted that after the meeting there would be a tour of the building, and the skywalk connecting Zane State to the Willett Pratt Training Center, where STEPS meeting were previously held. Guest speakers included Sarah Ghezzi, industrial safety consultant specialist for the Ohio Bureau of Workers Compensation, who said the BWC websites are open to everyone for information about where to go for services offered, requirements for occupational safety and health resources, reporting injuries, occupational hazards, inspections, safety standards and compliance directives for any individual, business or industry. The Occupational Safety & Health Administration (OSHA) was recently moved from under the Department of Commerce to the BWC. OSHA and the National Institute for Health and Safety (NIOSH) websites offer information about state and federal regulations, and include weekly fatality reports, inspection data, including citations, on any business, including the gas and oil industry. There is also information about silica at www.cdc.gov/niosh, the Chemical Safety Board at www.csb.gov, and websites devoted to heavy equipment safety, transportation safety and even a Rough Terrain Fork Lifts Association of Equipment Manufacturers. The www.BWC.ohio.gov web site offers a wide selection of training courses and educational programs, safety videos, lots of gas and oil videos, to help workers and employers recognize, avoid and prevent safety and health hazards in their workplaces. OSHA also offers training and educational materials and research articles that help businesses train their workers and comply with the Occupational Safety and Health Act.

The Ohio Oil & Gas Association’s Cambridge safety council meets the second Wednesday of the month at the Cambridge Country Club. • DennyTomcik, special projects branch chief of the Ohio Emergency Management Agency, said a committee with members from area fire departments, highway patrol, the Emergency Management Agency, Emergency Medical Services, Homeland Security and Department of Health has been discontinued. Tomcik said “table top exercises,” such as the one initiated in Carroll County, serve an important segment of economic growth to communities, and acts as a starting point for requirements from Homeland Security. Topics covered were Ohio-Indiana Rail exercises, first responders awareness training sponsored by the Ohio Oil and Gas Energy Education Program, including online training is available to all responders to gas and oil incidents; local farm public safety planning, and current industry challenges such as pad development and transporting products, processing plant developments, and new state reporting requirements. • Carl Lamb of TrenchTech, Inc., a company that recently opened an office in Washington County, Pa., said TrenchTech offers engineered shoring solutions for any size project. He said the company wants to be of service to the gas and oil industry in eastern Ohio. “In addition to excavation and shoring, TrenchTech also does safety training. The most dangerous segment in the industry is construction activities, the greatest risk is a cave-in. The most obstructive elements are water, highways and utilities, in addition to a hazardous atmosphere of flammable, toxic gas.,” said Lamb. “We have trained trench inspectors who adhere to industry standards, and we are happy to be closer to Utica and Marcellus operations.” • Troy McCollister, executive director for Zane State’s Center for Workforce Development, entrepreneurship and shortterm training for business, said his job is to create an environment that attracts business and encourages business start-ups

Dix Communications - Gas & Oil

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March 2014 Edition

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March 2014 Edition - Dix Communications

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Dix Communications - Gas & Oil

March 2014 Edition

Property owners have a “ROW” Dan Plumley Attorney You receive a knock on your door; you open it; you are greeted by an individual who wants to bring a survey crew onto your property to survey for a pipeline right-of-way (“ROW”). A number of questions should immediately come to mind: • Do I have to give them access? • When do they want to do this? • How many people will want access? • Is this a onetime access or will they want continuing access? • What happens if damage is done by the survey crew? • What if someone is injured while on my property? Do I have potential liability? • How many pipelines do they want the right to install? • Where will they be located? • Do I have to give them a right-of-way? • Will my access to my property be interrupted? • Can the power of eminent domain be used to “take” the right-of-way? • If I agree to a right-of-way, what is it worth? These matters and more are all legitimate questions and concerns. First, let’s address access to your property. There are two types of entities that may request access: a public utility including an entity that has a certificate of public convenience and necessity granted by the Federal Energy Regulatory Commission (“FERC”) or a strictly private entity. Ohio treats access, and may treat appropriation, the same for both types of entities. Section 163.03 of the Ohio Revised Code provides for access for public utilities and those with a “certificate of public convenience and necessity” and Section 1723.01 provides the right for private entities to enter onto your property if they are engaged in surveying to lay or construct a pipeline. Both statutes grant the power of eminent domain. However, with respect to a strictly private pipeline company the question exists as to whether the Ohio Legislature overstepped its bounds by granting access to private property for purely private benefit and by granting to a private third party the power of eminent domain. This may be especially true since

the statute is not very detailed, sets few, if any, limits on the access to your property, fails to provide any compensation to the landowner for the access and sets no limits on the appropriation. Engaging in litigation to test the constitutionality of the statute, or to raise the issue of undue delegation is very expensive, often protracted, and therefore should be avoided if possible. If the pipeline company is a public utility or has a certificate of necessity from FERC, the same statutes involving access apply, but it is far easier for the pipeline company to show public necessity, making a constitutional challenge to one of these entities difficult indeed. Fortunately, I have found most pipeline companies to be amenable to arriving at reasonable access times, who may have access to your property, and setting a time that the right to come onto your property for surveying is terminated. The issue of determining the terms and conditions of a right-ofway and compensation for that right-of-way are far more difficult to achieve and are beyond the purview of this article. Second, if you have successfully negotiated the access issue and are willing to explore the granting of a ROW, what is it worth? In order to answer this question you need to know the size of the intended pipeline, whether more than one pipeline will be installed, what is the width of the requested ROW (usually 75 to 100 feet), and will temporary workspace around the ROW be requested. The value may also vary depending on how strategic your property is to the pipeline route. Moreover, if you and a group of your neighbors can make available a long stretch of the land needed for the pipeline there is value to this benefit. A landowner is also entitled to damage payments for crops and timber loss. The ROW will last for decades. The agreement should provide for protection to the landowner and should be both specific and comprehensive. In order to achieve these protections a multipage addendum or special conditions will most certainly be needed. At the end of the day the written agreement will prevail and the oral commitments and promises made by a third party “landman” that has long ago departed the area will be for naught.

Gas & Oil

March 2014 Edition - Dix Communications

Southern Zone Edition

Records: Ohio gov aides knew of pro-drilling plan Julie Carr Smyth AP Statehouse Correspondent

OLUMBUS (AP) — Top advisers to Republican Gov. John Kasich knew the Ohio Department of Natural Resources planned to discredit environmental groups and two lawmakers while promoting drilling in state parks and forests in 2012, new records show. Top administration officials met with department leaders about the plan, the governor’s spokesman acknowledged Tuesday. Invitees to that meeting included Kasich’s chief policy adviser, chief of staff, legislative liaison and then-environmental czar Craig Butler, whom Kasich recently appointed to lead the Ohio Environmental Protection Agency. Spokesman Rob Nichols downplayed his earlier claims that the administration had no knowledge of the plan. “I don’t know what specific pieces of paper different people saw a year and a half ago, but of course the administration is going to coordinate and plan ahead on an important issue like gas production on state land,” he said in an email. The department said the plan was only discussed and never implemented. A memo outlining the communications strategy was released Friday. It labeled the so-called eco-left, including the Sierra Club, Ohio Environmental Council and others as adversaries. Halliburton and other energy companies the department is charged with regulating were named as allies, as were national, local and state chambers of commerce. The proposal, created by a senior department official assigned to special projects, suggested enlisting allied groups to counteract “zealous resistance by environmental activist opponents, who are skilled propagandists.” A final draft was dated Aug. 20, 2012, the same day a state email indicates that Kasich’s top policy adviser, Wayne Struble, had scheduled a meeting on the matter. Asked Tuesday whether the meeting took place, Nichols said, “I think so, yes.” ProgressOhio, a liberal group that joined in the Sierra Club’s release of the documents, called it a “Nixonian” governmentenemies list. Among those targeted were Democratic state Reps. Robert Hagan and Nickie Antonio, who on Tuesday called for Ohio House hearings on the matter. The pair called the strategy memo improper and unprecedented. “The governor is quick to jump in bed with Halliburton

and the oil and gas companies, with no apparent regard for the legitimate concerns of Ohio citizens,” said Hagan, of Youngstown. “This document raises a lot of questions regarding taxpayer resources being used to play politics, and taxpayers deserve answers.” Nichols questioned their outrage. “Representative Hagan and the Sierra Club — one of the largest, secretly-funded groups on the planet — have a pact to try and kill the fracking jobs that are helping get Mr. Hagan’s own communities back on track,” he said. “It’s pretty hard to reason with folks bent on that kind of self-destruction.” The memo theorized that Ohio families would be vulnerable “to messaging by opponents that the initiative represents dangerous and radical state policy by Gov. Kasich.” It anticipated that environmentalists would attempt to slant news coverage, incite public panic over health risks and physically halt drilling. At the same time, the memo noted that partnering with drilling interests “could blur public perception of ODNR’s regulatory role in oil and gas.” The department has not said who ordered the proposal to be drafted, how much it cost, or whether any outside organization was involved. Natural Resources spokesman Mark Bruce said Friday the plan was more than a year old and he was not aware of how it came about. The plan singles out Halliburton among energy companies to be considered allies. State records show Halliburton’s lobbyist in Ohio is Dwayne Siekman, a vice president at The Strategy Group Company, whose Delaware, Ohio, address he lists on his registration. The firm’s sister company, Strategy Group for Media, handles Kasich’s political communications. A representative said Tuesday the firm had no role in crafting the state plan. Ohio opened state parks and other public lands to drilling in 2011, but has not acted on the new law. Nichols said the law called for a state oil and gas commission to be created to authorize drilling activity, but Kasich has opted not to appoint the panel yet because the governor doesn’t believe the regulatory structure around the practice is mature enough.

Dix Communications - Gas & Oil

www.OhioGO.com

March 2014 Edition

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Dix Communications - Gas & Oil

March 2014 Edition

‘Reverse domino effect’

could happen in Ohio

Parker Perry Dix Communications

f Ohio pulls manufacturers of ethylene and polyethylene into its boarders, a reverse domino effect will occur for Ohio companies. Instead of falling over one by one, industries in the Buckeye State will be pulling each other up. David Mustine, the senior managing director of Jobs Ohio, said that manufacturers of these gases not only have the ability to provide good jobs to Ohioans, but can also be used to the advantage of other companies that use it in their own industry. “ … the products they produce can then give an advantage to other companies that use those products in their production,” Mustine said. Mustine estimates that a large plant that does this type of work can provide a couple hundred jobs for the state. The jobs will be well paying, and will be stable once everything is built. However, in the grand scheme, Ohio has nearly 87,000 jobs related to the polymer and chemical industry. The jobs that will be created solely by the new plants will help hundreds, maybe a thousand, families, but the butterfly effect has the potential to help more. One of those industries that could see a boost is plastic manufactures. Polyethylene is a product in many materials that the plastic industry uses. Some of the more basic products are plastic bags, bottles and containers. Other products include paints, films and coatings. Plastic manufactures in the state have already seen positive results from shale developments, but if manufacturers land in the state it will mean more growth. Mustine said that Wet Gas has been a focal point in the creation of the industry in the state. The way it goes is that ethane is taken from wet gas. The ethane can then be turned into ethylene and then that is converted into polyethylene. If Ohio can get the manufacturers who can produce the polyethylene, it would make the logistics much easier—and cheaper— on the Ohio industries and that use it. Currently, most of the polyethylene that is used by Ohio companies come from the Gulf Coast, nearly 800 miles away from the southern boarder of the state.

However, Ohio is not the only state that is trying to nab this new industry. West Virginia, Pennsylvania and other states that are in the region and have been affected by the dramatic oil findings are all trying to lure the companies to them. They can imagine having similar results for their economy. Ohio does have its advantages though as they try to outmaneuver its rivals. Ohio taxes are friendly toward companies that uses feasible personal properties. “Metro chemical plants are heavy on equipment investment and so there is no tax on that equipment in our state. That’s a real big advantage that we have.” Said Mustine. Though Ohio wants the factories for themselves, it should still be good news to the potentially affected industries if the companies move into the region. Though a border will be between them, it will still cut down close to 600 miles of transportation. Regardless of the competition that the state will have to face, Mustine said that the morale is high. He said that the recent developments over the last two years appears to bode well for the future of gas and oil in Ohio. “The excitement is very high. [There is a] very positive view that the shale industry and wet gas and the ability to process it and to break it into other parts.” Mustine said.

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Gas & Oil

March 2014 Edition - Dix Communications

Southern Zone Edition

Containment system manufacturer thanks gas and oil industry for growth Rachel Sluss Dix Communications

TOW -- A company that relocated to Stow due to growth from the booming gas and oil drilling industry in Ohio was recently recognized by the city. The Stow-Munroe Falls Chamber of Commerce Economic Development Committee awarded Polystar Containment its Industrial Improvement Award Jan. 21 at its 10th annual Community Business Awards. Research and Development Director Rob Huston accepted the award for Polystar’s positive impact on the local economy and its progressive business in the community overall. Polystar Containment manufactures, distributes and installs secondary containment systems for hazardous materials, specializing in containment systems for rail tankers, truck tankers and above ground storage tanks. The business moved from Twinsburg to Stow after experiencing growth in the industry. “We’re grateful for the award, and it’s nice to be welcomed with open arms into the Stow community,” Director of Sales Robert Nightwine said. “We’ll continue to provide the growth that we have had in the past few years.” Polystar Containment is one of the leading companies in the secondary containment industry today, according to Nightwine. He said the company is unique in the market because the products are designed to be more durable and long-lasting while most others are designed to be temporary. Nightwine said the Poly Dike MPE is the most popular item among customers in the gas and oil industry. The wall stands anywhere from one to four feet high around above ground storage tanks. If a storage tank leaks or breaks, the Poly Dike MPE is designed to catch and contain any hazardous waste. Employees often assemble the light-weight and durable wall

within an hour, making it a mobile and reusable solution in the industry. “It [Poly Dike MPE] is designed to be quick and extremely functional,” Nightwine said. “The MPE is almost like building Legos. It’s very easy to do. It’s just putting two pieces of wall together, and you drop a post in between the two and they lock.” Polystar Containment’s truck containment pad is simple to install on site as well because there is often as few as one slab to place down. The product is often set up within 24 hours. The pad consists of a steel core that is capsulated in fiber glass. Steel resists corrosion while fiber glass is chemical resistant. Because the product is well engineered and durable, vehicles are able to drive right onto the pad on site. The pad is often used for transferring hazardous waste from one place to another. Any drip or leak will fall onto the pad, keeping the environment safe. Nightwine said the truck containment pad will never crack and vehicles are able to drive over the product. The military often uses the pad for its own fuel trucks. “The truck containment is, I’m going to say, revolutionary,” Nightwine said. “There are only one or two manufacturers who use steel for trucks, but we are far and away the most advanced and the most popular.” The third most popular product at Polystar Containment is its railroad containment system called Star Track. Nightwine said set-up is more complicated than other products due to the draining system involved with the three pans that are set out. Workers also have to work around rail ties in the ground. “One of the major advantages of our system is there are no gaskets,” Nightwine said. “There are no potential leak points in our rail product.”

www.OhioGO.com

Dix Communications - Gas & Oil

March 2014 Edition

Above: Photo courtesy Polystar Containment / If an above ground storage tank leaks or a valve breaks, Polystar Containment’s most popular product, the Poly Dike MPE, will catch and hold any hazardous waste. Left: Photo courtesy Polystar Containment / Containment pads are efficient in catching any hazardous waste that does fall onto them. work.

Polystar Containment’s products can be reused and relocated. For example, some businesses still lay down concrete in the secondary containment industry. Concrete is permanent, requires more labor, and is expensive. Concrete also cracks over time, and it is porous allowing it to absorb hazardous materials such as hydrocarbon. The material is inefficient and harmful to the environment, according to Nightwine. “Our main initiative is to protect the environment,” he said. “We can’t protect the environment without our customers wanting to make the purchase. It’s really up to them, but once they decide that’s what they want to do, that’s our specialty. We carefully engineer each and every product to ensure that, with the opportunity, the environment is in good hands.” Polystar Containment is always looking for new products to put on the market and ways to further enhance current products. Nightwine said the company pays close attention to customer needs in case the issue could result in a new product. The company is currently working on a “handful” of new options for products and features. “We’re hopeful to expand our product line and contribute to the growth we’re experiencing, and get into different markets,” Nightwine said. “Oil and gas is essential to us, but there are chemical markets, there’s agriculture.” Nightwine and Huston emphazed the gas and oil industry is essential for the nation’s economy and independent energy. And Polystar Containment continues growing and evolving along with the industry. Email: rsluss@recordpub.com Phone: 330-541-9400 ext. 4162

Lisa Scalfaro photo/Dix Communications Polystar Containment, of Stow, Ohio, won the Stow-Munroe Falls Chamber of Commerce’s Industrial Improvement Award in January 2014. Pictured accepting the award is Research and Development Director Rob Huston.

Rachel Sluss photo/Dix Communications Polystar Contaiment Director of Sales Robert Nightwine, left, and Director of Research and Development Robert Huston.

Gas & Oil

March 2014 Edition - Dix Communications

Southern Zone Edition

www.OhioGO.com

Dix Communications - Gas & Oil

March 2014 Edition

Gas/oil impact evident on real estate in Stark County Laurie Huffman Dix Communications

1022171700

TARK CO. -- According to Bryce Custer, of NAI Spring Realty, Stark County offers one of the greatest locations among the seven counties currently being developed for oil and gas production in the Utica shale region. It has a surplus of single and multiple family housing available that a lot of other counties in the area don’t have, as well as some of the finest schools and hospitals and expansive infrastructure already in place. Custer, who gave a talk during a recent Stark County Oil and Gas Partnership event, told those present he’s watched the activity in the county stepping up during the last 2.5 years with increased consulting, water testing, land development, and new offices, including the Chesapeake Energy field office under construction in Louisville, and the office space in the planning stage by Rex Energy, which is looking to build in Carroll County. Louisville Mayor Pat Fallot, during a separate interview, admitted last year, home owners in her town had people coming into their neighborhoods and knocking on their doors to ask if they were interested in selling their homes. “We are also seeing some new homes being built...We’re not sure if that’s because of oil and gas or not, but, we’ll welcome any business or activity that’s willing to come into Louisville,” Fallot said. Chief Executive Officer of the Stark County Association of Realtors, Tom LaRochelle, also reported this week there has been a steady increase in new and existing home sales during the past 24 months. “Many are looking to come into this area, and everyone is looking for warehouses and land,” said Custer. “We’re seeing a lot of development now in Carroll, Stark, and Belmont coun-

ties. Housing and retail and hotels are needed to support the industry, as well as warehouses. We’ve seen everything from new hotels being built to consulting companies coming into Stark County. We’ve seen the whole gamut.” Some of the other positive impacts of oil and gas development, according to Custer, include a rash of companies coming into the area that are bringing new jobs. “Oil and gas has had a tremendous impact as far as jobs is concerned. That’s the exciting part. Seeing people get back to work.” “Along with companies coming into the area that are interested in making products with the wet gas products being pulled up from the ground with the natural gas, Custer closed by saying there is also a $800 million electrical generating plant coming into Stark County by 2015.

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Gas & Oil

March 2014 Edition - Dix Communications

Southern Zone Edition

Author talks about Trans Alaskan Pipeline Judie Perkowski Dix Communications

AMBRIDGE -- Longtime oil man and author John Miller, a former president and chief operating officer of Standard Oil Company (Sohio), was guest speaker at the Guernsey Energy Coalition’s monthly meeting, sponsored by the Cambridge Area Chamber of Commerce and moderated by Chamber president Jo Sexton. The meeting is regularly held at the Southgate Hotel in Cambridge. Miller told the story of his role in the monumental task of constructing the Trans Alaskan Pipeline in his book, “Little Did We Know.” The title comes from a phrase used by Fortune magazine to describe Sohio’s efforts in raising an outrageous amount of money for the project — $6 billion. Miller said the quote, “ It is probably fair to say that seldom in the business of rasing money have so few, who knew so little, done so much,” is pretty accurate, hence the title of the book. Construction on the Trans Alaskan Pipeline was set to begin in 1970. The projected start-up for the oil to start flowing through the pipeline was 1973. But never-ending obstacles meant further delay. In 1974, after satisfying government regulatory requirements the project was finally given the green light, four years after applying for the initial permit. “The Trans Alaskan Pipeline, which at the time, was the largest private industrial project ever undertaken and considered to be the greatest engineering marvel since the Panama Canal, began operating in 1978,” he said. “When I compared the problems that we encountered back then with the challenges facing the gas and oil industry today, I concluded that little had changed and the issues we dealt with would still be topical. The difficulty getting the Keystone XL Pipeline permitted, parallels our experience with the Trans Alaskan Pipeline, and is just one example of not having a well articulated energy policy in this country.” “The Keystone Pipeline, initially proposed in 2008, is an integral part of a system designed to transport crude oil, extracted from tar sands in Canada, to refineries on the Gulf Coast of the U.S. In addition, pipeline laterals would pick up oil produced from the Bakken region allowing movement to refineries in Texas as well as to markets in the Midwest. However, environmental activists oppose the project. Truth of the mat-

ter is these activists are targeting fossil fuels which translates into opposition of anything related to the gas and oil industry. What the owner, TransCanada, has endured in trying to get permission to proceed, is a saga all by itself including numerous go-rounds with the EPA over the adequacy of the Environmental Impact Statement and with the State of Nebraska over the pipeline’s location. A final report by the State Department, who is also involved because the pipeline would cross the U.S. Canadian border, is due to land on President Obama’s desk soon, after which, he will decide whether or not to approve the project.” Miller said he doubts Obama will sign the permit, which has been an ongoing battle for almost six years. But, some good news: The Keystone may be a step closer to approval now that the State Department has concluded the project would have little impact on greenhouse gas emissions. Sixty-five percent of the public is in favor of the Keystone Pipeline, as is the Democratic-controlled Senate, 62 to 37, and the House of Representatives, 237 to 187, in addition to support by the AFL-CIO. “Without a well-conceived energy policy to guide us, we may find ourselves heading in the wrong direction. In my view, the overriding objective of the policy should be energy security through energy independence. All energy options should be on the table including wind, solar and nuclear. “While a high priority needs to be placed on the environment, rigorous and credible cost/ benefit analyses should be the basis for regulations. Clearly, regulation of the energy sector is essential, but it need to be reasonable, not stifling. “There is no easy solution to the negative public image of the gas and oil industry ... Of considerable help, however, are programs such as this energy coalition that educates the public on the various facets of the gas and oil phenomenon that has surfaced here, and raises public awareness of the benefits of having a gas and oil industry presence. I applaud the Cambridge Area Chamber of Commerce for its efforts.” “I don’t have any investments in the industry. I don’t shill for anyone and I have my share of disagreements with some of the things that members of the gas and oil industry do on occasion,” said Miller. “But, I hold a favorable view toward

Dix Communications - Gas & Oil

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Cambridge Area Chamber of Commerce President Jo Sexton, introduced guest speaker John Miller, former president and chief operating officer for Sohio at the Guernsey Energy Coalition meeting recently. From l to r, Jo Sexton, John Miller, David Hill, owner/operator of David R. Hill, LLC, and Shawn Bennett of Energy in Depth Ohio.

the gas and oil industry and all it does to supply energy for our transportation system, generates electricity and power for our manufacturing facilities, provides raw material to the pharmaceutical, chemical and plastics industries, which produce thousands of products that greatly improve the quality of our lives. “Sum it up, you get job creation, economic growth and a higher standard of living.” jperkowski@daily-jeff.com

March 2014 Edition

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Dix Communications - Gas & Oil

March 2014 Edition

OOGEEP provides firefighter training programs

Alison Stewart Dix Communications

Portage County firefighters are pictured going through training to deal with any possible oilfield emergencies.

AYNE CO. -- Approximately 13 years According to Reda, the training session consists of two days. ago, Ohio became the first state to Day one is spent in the classroom where Reda and other inhelp create and implement firefighter structors provide classes. Day two is the hands on portion in training programs specific to oil and gas compli- which the facility simulates both crude oil and natural gas pocations. tential emergencies. Created in 1998, The Ohio Oil and Gas Energy Education “We create situations for them such as potential leaks, spills Program (or OOGEEP), provides a variety of programs or containment,” said Reda. “It is a shame that most of today’s which primarily focus on teacher workshops, scholarships, accidents actually occur from intentional vandalism.” student education, firefighter training, industry training, workThe hands-on day is mostly to get the firefighters familiar force development, research, landowner and guest speaker with the equipment so they will be prepared if an emergency programs. does occur on the oil field. OOGEEP began the training to prepare firefighters for any “It is better to be prepared so everyone feels confident,” emergencies that might potentially come up, according to Ex- said Reda. ecutive Director Rhonda Reda. There was an emergency in Boston Heights, Ohio in January OOGEEP has a permanent training facility located in 2014, in which firefighters were able to manage the situation. Wayne County, which is the only facility of its sort in the state. A privately owned well was receiving a service operation, said “We have trained over a thousand Ohio firefighters, includ- Safety and Workforce Training Administrator of OOGEEP ing several from Portage County,” said Reda. “We have also Charles Dixon. trained firefighters who come to our facility from seven dif“There was some type of ignition point that caused the ferent states.” gas to be on fire,” said Dixon, a retired fire captain who also Reda said many states have modeled their facilities to match worked as an EMS educator with The City of Columbus Divithe curriculum of Ohio’s program. sion of Fire. “That area was evacuated as firefighters worked “We always try to be proactive when it comes to emergency together to bring the situation under control.” response rather than being reactive,” said Reda. “This is why Dixon said everything went well, as expected with the level you don’t hear about a lot of emergencies happening in Ohio.” of training everyone had. Reda said oil and gas training is not part of normal firefightReda said while there was an incident, it was properly maner training but she feels it is the obligation of OOGEEP to aged as a result of everyone being well trained. provide the training for them. Training sessions have ceased over winter but will resume “The industry provides the money for this training with no again at the end of March. cost to the community or the firefighters,” said Reda.

Gas & Oil

March 2014 Edition - Dix Communications

Southern Zone Edition

Hearings sought on marketing state sites

Marc Kovac Dix Capital Bureau

OLUMBUS — Two Democratic lawmakers named among “opposition groups” in a draft plan to market state-owned sites for oil and gas production are urging the Republican head of the Ohio House to have hearings on the recently released document. Reps. Bob Hagan (D-Youngstown) and Nickie Antonio (DLakewood) want House Speaker Bill Batchelder (R-Medina) to find determine Gov. John Kasich’s involvement in the Ohio Department of Natural Resources’ draft communication plan. They also want to find out the relationship between the state agency responsible for regulating eastern Ohio’s emerging shale oilfields and energy companies and groups supporting the drilling industry. “We need to know what the governor knew and when he knew it,” Antonio said. “... How deep is the participation of ODNR, our regulatory agency, with those that they are supposed to be regulating?” She added, “The people of Ohio have a right to know their health and safety and the protection of public parks and natural resources are truly being protected, not compromised.” The ODNR plan came to light as a result of public records requests from the liberal advocacy group ProgressOhio, environmentalists and newspaper reporters. The documents, from 2012, note intentions to “exercise state-owned drilling rights” at Sunfish Creek State Forest in Monroe County, Wolf Run State Park in Noble County and Barkcamp State Park in Belmont County “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 opponents, who are skilled propagandists.”

Hagan and Antonio were the lone state lawmakers listed among the latter. Potential “stakeholders” and “allied groups” for delivering ODNR’s message about fracking on state-owned land included chambers of commerce and energy company Halliburton. ODNR and the governor’s office 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. But Hagan, whose Youngstown district was the spotlight of fracking criticism following a series of earthquakes linked oilfield waste injection wells, isn’t buying that assertion. “This plan was implemented,” Hagan said, citing “millions of dollars” in advertising purchased by energy companies in media outlets along Ohio’s eastern border. He added later, “I’ve been here for 28 years, [and] I’ve never seen an organized effort like this. I’ve never seen an effort on behalf of an entire administration....” Marc Kovac is the Dix Capital Bureau Chief. Email him at mkovac@dixcom.com or on Twitter at OhioCapitalBlog.

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Gas & Oil

March 2014 Edition - Dix Communications

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Okki Energy is doing OK

March 2014 Edition

OKKI Energy LLC manager Nelson Bolen

Judie Perkowski Dix Capital Bureau

AMBRIDGE -- He has only been in town a short while but Nelson Bolen is having no trouble acclimating himself to Guernsey County. Bolen has been busy setting up an office for his company, OKKI Energy, LLC, in the business strip across from Aldi’s — 61322 Southgate Parkway, Unit 2. He said he has never before been to Ohio, and he is anxious to get to know the people and the area, and for the people to get to know him and his company. The company’s home office is in Oklahoma City, Okla. Bolen complimented Jo Sexton and said the Cambridge Area Chamber of Commerce has been very helpful. OKKI was incorporated in 2000 as a privately held company engaged in the acquisition of mineral rights throughout the United States. “We have established business in 15 states. And we are focused on acquiring both producing and non-producing minerals. We are very good in the mineral business. We pride ourselves on accuracy and speed,” he said. “When we go into a play, we develop a plan and do what we say we’re going to do. We put mineral portfolios together. You can sell all or part of your acreage. Potential sellers include oil and gas companies, individuals, institutions, trusts, and estates. “People have to remember everything is a calculated risk. Information is the key. This is a huge opportunity for the landowner and the buyer. We do lease property, but we prefer to buy mineral rights. At the end of the day, we offer ease of transaction, transparency and the ability to fund our acquisitions. “An excellent example of OKKI employees is Candace Robinson, a certified professional landman, has both field and in-house experience. All the companies she has been associated with had mineral holdings which she managed from the point of acquisition through leasing, pooling or participation. She also has experience with surface issue between owners,

seismic companies and well operators. She has won several awards, including Landman of the Year, for her work,” said Bolen. “Referrals are our lifeblood. We want people to know who we are ... We take pride in personal contact. We love interaction with people, we love talking to perspective clients. Anyone is welcome to call, we can talk. We aren’t pushy, we operate on the mineral owner’s pace. We are upfront about who we are and what we do. “A good deal is when both parties walk away happy.” According to its website, OKKI’s staff is “committed to negotiating a fair price and meet the seller’s specific needs and expectations. We pride ourselves on timely evaluation and due diligence to insure hassle free closings. OKKI has established itself as an aggressive purchaser of oil and gas properties, closing deals with geologists, landmen and oil and gas companies ...” “Selling your oil and gas mineral rights is a straight forward process where OKKI offers the mineral owner easy access to converting his or her properties into cash,” said Bolen. For more information about OKKI Energy, visit www.okkienergy.com, phone 740-432-6932, or fax 740-432-6983.

The OKKI Energy LLC team includes, l to r, front row, Katy Jo Walker, Candace Robinson, Kristianne McCrary; back row, Austin Beeler, John Newcombe, Nelson Bolen, John Simms, Kyle Burris, Christopher Haggard.

Gas & Oil

March 2014 Edition - Dix Communications

Southern Zone Edition

Gov. Kasich no longer supports drilling at state parks Marc Kovac Dix Capital Bureau

OLUMBUS - Gov. John Kasich says he ODNR and the governor’s office said it is not out of the orno longer supports horizontal hydraulic dinary for agencies to develop communications strategies for fracturing on state-owned parkland and responding to criticism of policy decisions. ODNR also said forests, three years after he signed legislation al- the draft plan was never implemented. lowing those activities. “At this point, the governor doesn’t support fracking in Marc Kovac is the Dix Capital Bureau Chief. Email him at state parks,” Rob Nichols, the governor’s spokesman, said in mkovac@dixcom.com or on Twitter at OhioCapitalBlog. a released statement Wednesday. “We reserve the right to revisit that, but it’s not what he wants to do right now, and that’s been his position for the past year and a half.” In June 2011, Kasich signed HB 133, creating a state oil and Agricultural & gas leasing commission to oversee the leasing of state-owned Industrial land for the exploration and production of oil and natural gas. Service & Repair Supporters said the leases could provide millions of dollars Hydraulic Cylinders • Mobile Wet Lines for state projects and park improvements and cut fuel costs for Ohioans, particularly those living eastern Ohio. Hoses & Fittings • Machining & Fabrication But opponents voiced concern about the environmental Custom Designed Diesel Powered Hydraulic Units impacts of expanded drilling in general and fracking in parTesting, Diagnostics & Repair of Cylinders Pumps & Motors ticular. Bethany McCorkle, an ODNR spokeswoman, said Wednes- We Feature 12317 Dover Road • Apple Creek, Ohio 44606 day that the state has not “agreed to or entered into any leases Phone: 330-857-0001 • Fax: 330-857-2446 in our properties” for fracking-related activity. Lubricants yhydraulics@pcfreemail.com Kasich’s statement Wednesday came following criticism of a draft plan for the Ohio Department of Natural Resources to market certain state-owned land to fracking. The documents, from 2012, note intentions to “exercise state-owned drilling rights” at Sunfish Creek State Forest in Monroe County, Wolf Run State Park in Noble County and Barkcamp State Park in Belmont County “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 opponents, who are skilled propagandists.” 10209554

Dix Communications - Gas & Oil

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March 2014 Edition

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Dix Communications - Gas & Oil

March 2014 Edition

Conference provides look at ‘Shale 2020’ By: Judie Perkowski Dix Capital Bureau

Gas & Oil

March 2014 Edition - Dix Communications

Southern Zone Edition

Judie Perkowski Dix Communications

hat will the Utica shale region look like by the year 2020? That question and many more were answered at the early morning Utica 2020 conference last week at Kent State University, Tuscarawas Campus. Organized by the Tuscarawas Oil and Gas Association, the event attracted more than 300 attendees who listened to the opinions of experts in their field, all relating to the gas and oil industry. Meticulous planning by TOGA co-chairs Mike Lauber and Harry Eadon kept the conference sharp, fast-paced and interesting with 10 speakers, who in turn, presented an impressive agenda. Moderator Shawn Bennett of Energy in Depth, Ohio, kept the ball rolling. • Christopher Guith of the Institute for 21st Century Energy, U.S. Chamber of Commerce said, “We consume more energy than anyone else on the planet ... Our economy is evolving, we are using even more, because our natural gas is cheaper and cleaner than any other energy source. “By 2020, upstream energy activity (exploration and production sector) in the gas and oil industry will almost double, which means more jobs. The majority of midstream and downstream energy activity will be on the Gulf Coast. “Government revenue due to unconventional activity (hydraulic fracturing and horizontal drilling) will net the federal government about $1.6 trillion. There will be a dramatic change in disposable income for most Americans. “We have approximately 120 years of natural gas, 206 years of oil, 464 years of coal. In-place resources, those that geologists have found but remain untouched, amount to 10,000 years of coal, 586 years of gas and 536 years of oil. We have more fossil fuels than any country on Earth. We actually have more coming out of the ground than we are consuming. But, there are no guarantees. “In the very near future, 10 percent of all U.S. coal plants will be shut down. These bans on drilling are hurting the gas and oil industry ... once they go after coal, they will go after gas. We can screw this up.” • Dr. Robert Chase of Marietta College said we need to remember four things: Number one is understanding the resources. “It’s all about the rock. Petroleum physics and geo-

chemical properties of the Utica shale will be defined. “Potential producible reserves per well will be better defined; the best spacing and length of laterals will be determined after much experimentation; and with advances in drilling technology rigs become more compact, more robotic with fewer personnel on the rig floor. Drilling time and drilling costs will decline and spent frack fluids will be recycled. Bottom line — Ohio will become an energy exporter, which will be sustained for a long, long time.” • David Mustine of Jobs Ohio said midstream development has been phenomenal! “The Bluegrass Pipeline will transport gas and oil through 16 Ohio counties on its way to its final destination on the Gulf Coast. The project is a $6.9 billion investment in Ohio. “The infrastructure, new fractionation and processing facilities and pipeline construction will require hundreds, if not thousands of new jobs, in addition to companies who supply a service or product for the gas and oil industry.” • Scott Hallam of Access Midstream Partners Utica Shale, noted Ohio’s long history in the gas and oil industry and gave a forecast of the Utica’s potency. “In the third quarter of 2013, the Utica produced three times as much oil than in the entire year of 2012. It’s exciting to see the Utica live up to expectations. But, what will exploration and production look like in 2020? Predictions of one million barrels a day are even better than previously expected. This brings pipelines, gathering systems, processing plants and fractionation facilities into the state, which brings jobs and economic growth and stability.” • Sean Logan of Sean Logan & Associates, spoke about Ohio’s regulatory climate. Logan said the gas and oil industry has come a long way since the 1800s when Ohio’s first oil well was drilled in Noble County. “It wasn’t until 1965 when the first gas and oil law went into effect. Since then, Senate Bill 165, the first major revision and improvements to Ohio oil and gas law in 25 years,” he said. “Other subjects under consideration for review include well pad construction, drilling waste, public safety. Water withdrawal issues will probably have additional or new regulations, and specific language in regulations relating to well pads

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when they are near the boundaries of a watershed district.” Logan said Ohio’s regulatory program is the best in the country. • Craig Kasper of Hull & Assoc., said they are not a midstream company. “We are consultants, a developing firm. First of all, facilities will change and be modified to accommodate the industry. “Midstream will be very strong in 2020, but, will (in our opinion) peak in five years, depending on the market. Right now, they are playing ‘catch-up.’ • Charlie Dixon of the Ohio Oil & Gas Energy Education Program, said workforce collaboration is everything. “Colleges, schools, public officials are working together to prepare the workforce. The best kept secrets today are career and tech schools. Our future depends on economics, education, engagement, and articulation. We need to collaborate all our resources to succeed,” he said. Dixon said OOGEEP’s predictions for job growth in the gas and oil industry per the organization’s 2011 Economic Impact Study estimated 102,052 direct or indirect jobs in 2013. Actual figures as of December 2013 from the Bureau of Labor Statistics said 169,000 jobs related to the oil and gas industry were filled. The BLS also reported jobs in the construction and fractionation will grow through 2020. The gas and oil industry is ranked fourth in the list of Top 10 industries for job growth. By the year 2020, the BLS stated that by 2020, the Ohio job market will experience a 50 percent job growth in gas and oil. • Paul Boulier of Team NEO listed about a dozen factors influencing how the region should be marketed, “which takes vision and commitment to transform the region into an employment powerhouse.” “Issues and challenges are energy, fuel, derivatives and plastics, and infrastructure opportunities,” he said. “By the year 2020, we need to focus on midstream storage, multiple CNG filling stations, expand refineries, expand advanced material components and new foreign investment. Boulier said we need to upgrade our efforts to develop a skilled labor force and increase accessibility to higher education, promote our proximity to domestic markets, our strong exports, and be able to fight off competition.

Dix Communications - Gas & Oil

March 2014 Edition

He added that shale development will also provide opportunities in the chemical industry. • Michael Weidokal of International Strategy Analysis said the U.S. has less than 10 percent of known shale gas reserves. “In regards to major reserves around the globe, the U.S. is number four, China is number one. And the U.S. could fall farther down when other shale plays are discovered,” said Weidokal. “But, even though other countries have more shale plays, most countries can’t compete with the U.S. in production. Most lack the technology, in addition to other problems. “China has a severe water shortage, Argentina nationalized their industry, so there is less investment, Algeria lacks water and there are attacks on American gas/oil companies, France has outright banned extraction of shale gas, and South Africa is a desert with a very low supply of water. “Key points for the North American forecast for 2014-2018: The U.S. remains the world leader, high levels of investments, we have refined our business models, shale industry has driven down costs, extraction of gas and oil is cheaper here than overseas and demand continues to grow. All leads to a significant boost for the U.S. economy. We will become self-sufficient and a major exporter.” • Ted Ford of Ohio Advanced Energy Economy said new rules and regulations in the Clean Air Act will put coal behind the eight ball because of carbon and climate change, regulations are coming. There is a transformation of the U.S. utility industry currently underway. Other problems we need to solve: Weakening of our energy grid (blackouts), disruptive systems and technologies, and energy security and reliability. “We need to address and reduce our vulnerabilities,” he said. And that means gas and oil working together with renewables. Shale gas will not compete with renewables. Solar and wind are additional power sources.” He said microgrids are also developing rapidly. Microgrids are like islands in the larger grid and can function even if the large grid fails. Micros are a backup system. “But we still have a lack of clarity about energy, and we need a new energy policy,” said Ford. jperkowski@daily-jeff.com

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March 2014 Edition - Dix Communications

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Dix Communications - Gas & Oil

March 2014 Edition

Oklahoma drillers look to reuse produced water Sarah Terry-Cobo The Journal Record

ERRY, Okla. (AP) - Oil and gas companies are burying an increasing amount of pipeline in the northern part of the state, but it isn’t just for high-priced crude. They’re also looking for efficient ways to transport and reuse expensive, toxic produced water. The drillers are finding ways to mix the highly salty water with oil and gas to hydraulically fracture wells. Reusing produced water cuts down on the amount of fresh water and surface water drillers need for frack jobs, and pipelines are less costly than trucking. In Perry, Devon Energy is starting to lay oil, natural gas and water pipelines in the same easement, a system it calls integrated facilities. The new method helps make the Mississippian-Woodford trend efficient and economical, said Mark Matalik, drilling engineering supervisor with Devon. Coordinating the drilling schedules with the pipeline construction lets producing wells tap into the system, rather than using trucks to tran sport water, Matalik said. Putting three lines together also makes negotiating with landowners simpler, said Tim Baker, pollution abatement manager for the Oklahoma Corporation Commission Oil and Gas Conservation Division. Operators are not required to obtain permits from his agency for pipelines that transport the briny produced water. “This is all being driven by horizontal wells,” Baker said. “Operators are using a large amount of water to frack wells, and there is a lot of produced water initially, so there is more of an effort to use pipes than trucks.” Devon began operating the integrated facilities in the second half of 2013, company spokesman Chip Minty told The Journal Record (http://bit.ly/1hSht5C ). Once the company determined that the oil field in north-central Oklahoma was economically viable, it began planning the infrastructure to transport crude and natural gas from the wellhead, he said. Soon afterward, De von decided to include produced water pipelines as part of its infrastructure plans. In the last three to five years, the industry has continued to develop ways to use salty produced water in hydraulic fracturing operations. That hasn’t always been the case, however. When the company began drilling in the Barnett Shale in the Dallas-Fort Worth area, it needed to use fresh water, Minty said.

“As we’ve moved forward through these years and tried to answer these questions about water conservation, we have learned how to complete these wells without fresh water and with certain amounts of saline,” he said. Landowners benefit when oil, gas and produced water pipelines are buried in the same ditch, said Terry Stowers, an attorney and executive director with the Coalition of Oklahoma Surface and Mineral Owners. It may be more expensive to negotiate three pipelines in one easement than a single pipeline, but it’s better in the long run, he said. “If they can p ut in same area, they minimize impact on the surface, and that is a great thing,” Stowers said. In Devon’s case, the ratio of oil to produced water in the Mississippian-Woodford is, on average, about five barrels of water to one barrel of oil, Matalik said. However, in other parts of the Mississippi Lime formation it can be much higher, Stowers said. In some places, companies get about 49 barrels of produced water for every one barrel of oil. The produced water pipeline system reduces the risk of spills, in addition to cutting costs, Baker said. Stowers said he is concerned about long-term maintenance of the saltwater pipeline system. If pipelines aren’t maintained 10 or 15 years after installation, they can leak, he said. “If they are maintained properly, pipelines are by far the safest and most efficient way to move products,” Stowers said. Minty said Devon uses polyurethane pipe to transport produced water, which doesn’t corrode or leak. The company also uses steel pipe treated with catalysts to prevent corrosion, he said. “It is in our vested interest to maintain our pipes, as we do with all of our gathering infrastructure,” Minty said. “The company has an excellent safety record for its gathering system infrastructure, and follows all regulatory maintenance mandates.” Devon hasn’t released cost estimates of the integrated facilities, Minty wrote in an email message. The company will continue to expand the three-pipeline system as it continues to drill in the area. Information from: The Journal Record, http://www.journalrecord.com

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Southern Zone Edition

March 2014 Edition - Dix Communications

Marketing is the key to Newcomerstown growth

Niki Wolfe Dix Communications

EWCOMERSTOWN — Marketing the village has become the new mantra for Newcomerstown or so it seems. Newcomerstown Chamber of Commerce President Pat Cadle said the village is trying to stay ahead of the curve by marketing its approximate 3,800-resident community to those looking to expand in the oil and gas industry. “We need to keep our town in the mix,” Cadle said. He said as officials and those charged with promoting Newcomerstown, “We need to market Newcomerstown and show off all of its opportunities for other businesses and industries.” One way of achieving this is by having Newcomerstown’s groups make a collective effort in working together on community-wide projects. Cadle said the village government, businesses and civic groups all need to work together. “We’re all involved in our own separate entity,” he said. “Each one needs to know what the other one is doing.” In terms of staying ahead of the curve, Cadle said the oil and gas is a key to the continued development of Newcomerstown. With that, he said the Newcomerstown Community Improvement Corporation (CIC) is playing an important role in keeping Newcomerstown’s name in the limelight to attract oil and gas officials. Along with the CIC, the Tuscarawas Oil and Gas Association (TOGA) is marketing three areas of Tuscarawas County for development with Newcomerstown being one of those prime locations in the county for future growth. “We need industry in Newcomerstown,” Cadle said. “It’s what brings the revenue.” Cadle gives credit to this year being Newcomerstown’s bicentennial to aide in the marketing tool for the village. Events

are planned throughout the year to bring individuals to the village. For the bicentennial’s kick-off on New Year’s Eve, there were more than 700 participating in events downtown that evening. “Newcomerstown is a good place to live, work and raise your children with a great education/school system,” he said. The Cy Young Park is a jewel in the community and Newcomerstown has one of the nicest libraries in the entire county, he said. He also said there are opportunities for children such as dance facilities and the Cy Young Youth League. There are many civic organizations to become involved with and a number of churches that will lead to personal growth. “We’re marketing ourselves as a good place to live,” Cadle said. He said officials are working to stay ahead of the curve and be at the forefront of additional development.ONS WE P I P lus “Everyone is working together for a commonTEcase,” ! TIR ROV Cadle E S IDE said, and, “that’s to promote Newcomerstown.” ON W PE

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Dix Communications - Gas & Oil

March 2014 Edition

Association opposes proposeD severance tax

Tom Stewart

Judie Perkowski Dix Communications

OLUMBUS -- The Ohio House Ways and Means Committee presented and approved a 2.25 percent severance tax on horizontally drilled wells, up from 2 percent on the original House Bill 375 proposal. The gas and oil industry proposed a one percent increase for the first five years, instead of the legislators’ response of one percent for the first two years and 2.25 percent for 20 years. After 20 years the tax would return to 1 percent. Rep. Matt Huffman, R-Lima, said the changes came from weeks of negotiations with the governor’s office, the oil and gas industry and eastern Ohio officials. He said, “The bill as introduced was not really workable.” In a recent conference call with Tom Stewart, vice president of the Ohio Oil and Gas Association, and Penny Siepel, vice president of public affairs, Stewart explained the taxes the Ohio oil and gas industry must pay and why the 2.25 percent severance increase is totally unreasonable. Stewart provided proponent testimony on House Bill 375 in January. “First of all, one of the biggest issues is for legislators and others is to understand the terms used by the oil and gas industry,” said Stewart. “For instance, post production costs. Mean exactly what the words say, they are costs associated with getting the product to market. It is what the person who buys the oil and gas pays to have it delivered to his business. My cost is what comes out of the ground. Whomever buys my product is responsible for post production costs. I don’t pay to have it shipped to his business. So, why is the Wall Street Journal stating that the oil and gas industry is selling oil for $100 a barrel. That is not true. It’s probably more like $92 or $93 a barrel. The difference — $7 or $8 a barrel — is the buyer’s cost. He bought my product. That’s what he pays to have the oil brought to market.” “The severance tax is jus one of the taxes paid by the industry and landowners,” said Stewart. “They also pay income taxes, a commercial activity tax —CAT is paid by all businesses — sales tax, ad-valorem (property ), fuel use taxes, employment taxes and all the other taxes that any other traditional manufacturer pays. Landowners pay income taxes, CAT, advalorem and severance taxes. In Ohio, the Commercial Ac-

tivity Tax (CAT) is a tax of 0.0026 percent on a firm’s gross receipts, that translates into nine taxes for the oil and gas industry. The governor wants to increase it to 10 or 11.” Another problem Stewart says is that you cannot base a state tax on a few areas — otherwise known as the “sweet spot,” which only encompasses about seven counties in eastern Ohio. “There are wells that pay off quickly, but many take from four to six years before they pay off. We want the new, independent producers to make a profit and plow their money back into the ground,” Stewart posits. “This a risky business, but there is potential in western Guernsey County.” One of the most important parts of the bill is money to cap orphan wells, which Stewart said is critical. “The plugging program has always been funded from a portion of severance tax paid to the state by the oil and gas producers. HB 375 proposes to provide the Idle & Orphan Fund up to 50 percent of revenues from the adjusted severance tax, above that already delegated. The increase in funding could potentially eradicate abandoned wells in Ohio. OOGA is very supportive of this. “I think we have gotten off track about the oil and gas industry’s proposal. We have a long way to go.” Tom Stewart is editor of the Ohio Oil and Gas Association’s publications, an industry spokesman to media outlets and other forums, treasurer of the Association’s political action committee and public policy advocate in Columbus and Washington, D.C. on behalf of OOGA’s members’ interests.

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Southern Zone Edition

March 2014 Edition - Dix Communications

New report from Ohio University’s Voinovich School highlights local impact of shale activity

THENS -- The Ohio University Voinovich School of Leadership and Public Affairs released the findings of its much anticipated Ohio Shale Development Community Impact Survey in late February. The accelerated pace of unconventional oil and gas (shale) development in eastern Ohio has opened up many opportunities and created many questions about the future of the region. During summer of 2013, the Voinovich School distributed more than 500 surveys to local elected officials across 17 counties experiencing the majority of shale activity and development in Ohio. The survey assesses the impact of shale development within 17 counties in eastern Ohio, with a focus on population, housing, public safety, infrastructure, environment, local employment, area business activity, and economic development. Report findings include: Which shale development activities are being reported across the 17 counties surveyed. The influence that shale development has had on population and how that has impacted local housing and public safety. How shale development activities have impacted local infrastructure and environment. Some of the ways that shale development has altered employment of area residents. The influence of shale development on the local economy. As a major research institution located within the state’s Utica and Marcellus shale plays, Ohio University has a responsibility to address the complex economic, social, environmental and technical questions associated with shale development in Ohio.

“Shale development is having a major impact on the communities of eastern Ohio,” says Scott Miller, director of the School’s Consortium for Energy, Economics & the Environment (CE3). “No one knows better the full effect of this industry on local communities than the target of this survey – the elected officials charged with serving this region: its mayors, county commissioners, township trustees and city managers. The results of this survey will provide a baseline for further analysis and community discussions for years to come.” The report will be the first wave of data releases in what is anticipated to be a long-term look at the impact of shale development activities in eastern Ohio. The Voinovich School is seeking to build collaborative relationships to assist in this undertaking. Interested foundations, organizations, and agencies should contact Robin Stewart, senior project manager, at ce3@ohio.edu for more information.

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FOCUSING ON THE BIG PICTURE:

Oil and gas boom

changing Belmont County Ginny Favede Belmont County Commissioner

ELMONT CO.-- Years ago, the federal government said we were headed for a service based economy….that is changing now due to oil and gas. What Belmont County is experiencing is literally changing our country. There is a great demand for natural gas in the areas of industry, electric power, transportation, liquefied natural gas products, pipeline and a need for supply in the areas of labor, financing infrastructure and in regulation. The good news for Belmont County is that the Shale Gas Revolution is changing America and we are literally at the heart of it all. We are considered to be a part of the Utica Shale Play which is a liquid play. This means the Utica Shale holds crude oil and wet gas. From wet gas we get ethane which is used to create ethylene. Ethylene is used in consumer products like toys, diapers, medical gloves and toothpaste tubes. So the Utica is important, not just because of the oil and gas that comes from it, but because 96% of all manufactured goods have some chemistry in their making. The oil and gas industry is causing expansion in the US Steel industry as new equipment is being manufactured and in the chemical industry as well. The Utica provides the Ohio Valley an opportunity not only in land leases and royalties, site jobs and infrastructure construction but in the ability to attract manufacturing companies that need our product to create their goods. There are tiers of oil and gas industry. Everything is about the “stream.” Upstream, midstream and downstream. Upstream is where we have been for the past two years which is land leasing, royalties, lease bonuses, road construction and pad construction. Midstream is about moving the product, compressor stations, processing stations, fractionating sites and pipeline. This is where our economic development focus lies right now. In trying to “land” those stations or plants. As the product comes out to the ground it is moved via pipeline to these plants. Downstream is what I like to refer to as the big fish! Downstream is refining, chemical manufacturing and fertilizer plants. What is actually done with the product. Our

ability to attack manufacturing is actually good currently as it is the Utica estimates of what they expect to be drawn from our regions soil that makes the chemical industry likely to come back to the Ohio and Appalachian region. Our focus is on the big picture and what our region has the ability to look like 10 or 20 years down the road. We have a huge opportunity in Belmont County and we are working to ensure the economic boom of the oil and gas industry stays for decades to come.

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March 2014 Edition - Dix Communications

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The “Hit Parade” and Oil and Gas Interests! Frank A. McClure Attorney

hen thinking about this month’s article, I began to think about some of the things my clients and people in general worry about. This question holds true whether or not oil and gas interests are in the person’s estate. That one question would be how will I make sure that my family and loved ones are taken care of after dad and/or mom are gone. The “Hit Parade” is one way that we can talk about how to control your assets after your death! Clients ask how we can do that?. As the old adage goes, “Hope for the best and plan for the worst,” but sometimes disasters happen too late to adopt remedies. Fortunately, estate planning lawyers can counsel you, our clients, about providing for change over time through periodic updating of their planning documents, and after one spouse dies, through the use of what is known as “limited power appointment.” So I use what I call the “Hit Parade” story to illustrate the benefits and operation of this option to my clients. I generally assume that dad will die before mom (mortality tables support this). For as long as mom outlives dad, she will see many changes in their family, and she will want to adapt both her own estate plan and also her deceased husband’s plan to keep up with the challenges in their children’s lives. For example: Their child hits a bus. Imagine this scene; their grandchildren miss the school bus, and their adult daughter rushes to drive them to school. She started late, rainy weather has made the roads slick, and the grandchildren’s chatter has distracted her. Nothing unusual! Then the worst happens - she hits a shuttle bus pulling out of the Holiday Inn with 9 litigation lawyers who just attended a seminar on personal injury cases, all of whom get out of the bus holding their necks. Suppose some of’ them actually were hurt, and really couldn’t go back to work. In today’s world we can certainly imagine that any judgment entered by a jury could easily exceed the liability limits on the automobile insurance policy. Their daughter would have a hard time protecting her own assets from the plaintiff’s, but mom and dad have more choices with the money that they provide their children in their estate plans. During their lives the parents can adjust their own plans to keep up with the change. After dad dies he has no flexibility, but in his plan he can provide some room for mom to make

adjustments. What would dad do? Faced with the prospect of leaving the inheritance to his daughter’s creditors, dad would probably leave the bequest instead in a protected trust that made his money available to their daughter for her genuine needs but kept it away from her creditors. This is known in my world as a lifetime protective trust. In addition to amending her own plan, mom can use the limited power of appointment that dad gave her to change dad’s estate plan and leave dad’s money in the same way that dad would have, in an asset protection trust, and provide that the change take place only after mom’s death. Their child hits a tree. Serious trauma from an accident, whether with a car or falling from a horse, can leave the injured person in such a disabled state that few families have the resources for rehabilitation or nursing home expenses.

Frank A. McClure Counsellor-At-Law Melissa M. Wilson Counsellor-At-Law Life is complicated enough, protecting your family and your assets shouldn’t be. Call us to register for our free workshop “The 7 Threats to Your Family Security.” March 13th at 1:30 March 27th at 1:30

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Younger adults rarely purchase disability or long term care insurance, and this kind of catastrophe can quickly deplete their assets. Fortunately, Medicaid will cover the expenses of those who qualify but not before a required “spend-down” of their assets first. An inheritance going to the injured family member will simply delay qualification for public benefits without helping those who depend on them. What would dad do? During his lifetime dad would have probably amended his estate plan to provide for the child so that the child could have received his inheritance in the form of a “Special Needs Trust”. With good legal counseling in designing his estate plan, dad can give mom the same flexibility to make adjustments in dad’s plan after his death to take care of the injured child and the child’s family without disqualifying the child from Medicaid. Again, in addition to amending her own plan, mom can use the limited power of appointment that dad gave her to change dad’s estate plan and leave dad’s money in the same way as he would have, in a “special needs trust”, and provide that change take place only after mom’s death. Their child hits the skids. Every family has or knows of some younger adult whose promise and potential has disappeared through substance abuse or victimization in a cult. Whatever the cause, the entire family suffers with the addict, both from their own sense of loss, and their helplessness to bring their child or sibling back to a functional during their lifetime. What would dad do? Dad would probably amend his estate plan to provide for the son to receive his inheritance in an “incentive” trust, to pay for the rehabilitation and give the child clear standards to qualify for the legacy. With good legal counseling in the estate planning design, dad can give mom the same flexibility to make adjustments in dad’s plan after his death to care for the addicted child and the child’s family. In addition to amending her own plan, mom can use the limited power of appointment that dad gave her to change dad’s estate plan and leave dad’s money in the same way as dad would have, in an “incentive” trust, and provide that the change take place only after mom’s death. Their child hits the lottery! Not every hit on the Hit Parade is negative! Sometimes even positive events can require changes to an estate plan. For millions of people playing the lottery brings innocent amusement with the remote possibility of sudden wealth. What if the adult child’s number comes up and he has more than enough to take care of his family’s needs and then some? What if this new found wealth is from a lease on your child’s real estate, which now has a producing well on it? Adding an inheritance to the child’s new fortune mostly benefits the I.R.S. by increasing the estate tax payable by the grandchildren when their parent dies. What would dad do? During his lifetime dad would probably amend his estate plan to provide for the grandchildren to receive the son’s inheritance in a “generation-skipping” trust, to keep the largest amount of money in the bloodline. With good legal counseling in the estate planning design, dad can give mom the same flexibility to make adjustments in dad’s plan after his death to ac-

Dix Communications - Gas & Oil

March 2014 Edition

count for the new wealth and make practical adjustments. In addition to amending her own plan, mom can use the limited power of appointment that dad gave her to change dad’s estate plan and leave dad’s money in the same way as dad would have, in a “generation-skipping” trust, and provide that the change take place only after morn’s death. One spouse may outlive another long enough to see major developments in their children’s lives, and the whole family will benefit with flexibility in an estate plan after the death of one spouse, so that the survivor can adjust their joint legacy to the new realities. It is important for clients to understand the need for flexibility, and their estate planning lawyer should show them how to achieve it. The “limited power of appointment” offers clients a way of providing for unexpected challenges in their beneficiaries’ lives, but they will have this option only if they know about it. That is why it is important for people to ask questions of their estate planning advisors. Without some education, how will you ever know what you can and cannot do? Ask questions. Remember it is your estate and it doesn’t belong to any one else! Also remember that you know about 80% of the law generally, but unfortunately it is the 20% you don’t know that will do you in! If you would like more information about flexible and estate planning or to review my past articles concerning asset protection and estate planning, please go to www.fmcclurelaw.com.

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ABSOLUTE EQUIPMENT AUCTION of BK MINING & CONSTRUCTION SATURDAY •• APRIL 5 •• 10:00 AM 41410 Palmer Road, Belmont, Ohio

Coming west on I-70 from West Virginia, take Exit 208 (Belmont Flushing Exit), turn left. Coming east from Columbus, take Exit 208 (Belmont Flushing Exit), turn right. Proceed 2 miles on S.R. 149. Go right on township road 206, Palmer Road, approx .6 miles on the left. Look for Behm’s Auction signs posted. We have been commissioned to sell the equipment and tools from B K Mining and Construction, LLC of Belmont, Ohio to the highest bidder by a secured party. This is a large auction with a variety of Equipment and Tools. This auction will be for a vast array of buyers, from the small weekender to the large full-scale drilling company and everyone in between. Mark your calendar and plan to attend. For more info and a full listing of items, go to www.behmsauction.com. DRILL RIGS & ACCESSORIES - TRUCKS & EQUIPMENT - FUEL TANKS SHOP ITEMS - PIPE - MILLING MACHINE EQUIPMENT - OFFICE ITEMS

Watson 3000 rotary drill rig mounted on a Henderson truck chassis (this unit is located in Bruceton Mills, WV and will be sold off location - Watson 3000 drill rig, older model mounted on Hendrickson truck (air & rotary) (this drill is in the middle of being rebuilt) BITS & CAMS: 36” muck bit, 30” auger, 18” cuter bit, 20” cutter bit, 22” cutter bit, 64” auger, 26” cutter bit, 16” cutter cam, 18” augers, 14” cam cutter, 18” muck bit, 20” auger, skid of cams & other bits DRILL/CALVERT PIPE: Over 80+ pieces of different sizes - 16” diam pipe (24 ft) - 18” diam pipe ( 8 12 ft pcs) - 20” diam pipe (33, 37, 45, 8 ,13, 11 ,20 ft pcs) - 22” diam pipe (53,23,26,30,33,10,31,9,20,25 ft pcs) - 23” diam pipe (6 33 ft pcs) - 24” diam pipe (25, 33, 10 ,8, 11 ,12, 4 ,5 ,7 ft pcs) - 25” diam (21, 6 ft pcs) - 26” diam pipe (10, 11, 9, 7, ft pcs) 28” diam (13 ft section) - 29” diam (7 ft section) - 30” diam (8, 12, 4 ft sections) - 32” diam x 8’ - 36” diam (4 ft sections) - 41” diam 15 ft sections - 42” diam (9, 10, 12 ft sections) - 48” diam ( 8, 13, 16, 24 ft sections) among others TRUCKS & EQUIPMENT: 2002 Chevy C6500 dump truck, 31,374 miles, good bed (clean truck) - 2001 International 4900 DT flat bed truck 466 engine, 347321 miles, 25’ bed, 33,000 GVW - 1997 GMC C7500 Turbo flat bed truck, CAT 3116 engine, 250277 miles, 22’ bed - 1993 GMC Cat truck, 3116 engine, 376323 miles, 14’ bed, 28,000 GVW - 1995 GMC Top Kick truck, CAT 3116 engine, 250324 miles, 17’ bed, 33,000 GVW (parts truck) - CAT E120B excavator, 5154 hours - Case backhoe 580C (rebuilt engine, 2418.1 hours) Galion loader ML40 453 Detroit diesel with loader forks and bucket and gib pole - Sullair 185 air compressor (185 CFM,100 PSIG, 1738.2 hours) - 20’ Rogers lowboy trailer -older Fontaine road trailer - Jay Line storage trailer - "Tool Shed” - storage trailers - (3) 1500 gallon fuel tanks (2 with pumps and fuel) SHOPS & TOOLS ITEMS: Welders: Hobart R-600S Serial #78WF22729 w/leads - Hobart R-600 24 RT-6922 w/leads - Hobart M300 Serial #80W502191 w/leads - Hobart M600, 24DW-1965 w/leads & cart -Hobart Power Weld 303-GR303 - Lincoln SA-250-D3 125, A925459, 3 cyl - Lincoln Idealarc AC/DC welder, AC330407 w/leads - Lincoln Idealarc welder, Serial #435590 w/leads - Ford 6 cylinder gas welder, Serial #78WF2857 - GMC 302 crate motor - 18” bucket - 24” WB bucket - Cat 20” bucket - rear weights - auger teeth - 3 phase power converters - Carolina HD 12” band saw - Smith & Mills 25” BG shaver - Reeves swing lathe w/9’ bed 30” swing - Sunex 5 speed drill press - Blackhawk PD 22-12 1” cap drill press - Hydro Tek SC series steam jenny - 1986 EM Glo 5 hp single phase 200 PSI air compressor - 600,000 BTU Reddy Heater - master Turbo heaters - Reddy Turbo heater - Industrial floor air mover fan - Binks 136 air sprayer - Handi Clean parts washer - Bernard tank cart - tank carts - work benches - new 300 amp breaker box w/cover - metal work table w/vise - Rigid portable band saw - heavy iron welder’s table - hydr Germatic winch - Homelite water pump w/hose - 10’ iron work bench - 1 ton swinging crane - cylinder rack - man cage - Rubbermaid 300 gallon water trough - (2) 200 gallon fuel tanks with pumps - cement mixer - C.P.T. air compressor - pilot shelving - oil dolly - drums of Rotella oil & fluids - acetylene cutting torches - torches w/hoses & gauges - heavy duty bench vises - bundles of C clamps - welding cables - welding air hose - rolls of wire rope - Honda EG 350 generator - tire, floor, boot & tranny jacks - Honda generators - hydraulic pump - creepers - machinist’s chairs HAND TOOLS & RELATED ITEMS: 4 large heavy duty vices - Cat work box - diamond plate tool box - storage box - stake bed cover w/sides & poles - Craftsman socket sets - sockets - ratchets - extensions - wrenches - screwdrivers - grinding wheels - Rigid pipe wrenches - pipe threading set - Rigid pipe threader - extension cords - multiple bundles of hand tools - choker cables - come-a-longs - chain binders - chains - bottle jacks - flat wire brushes - welding supplies (gloves, helmet, welding rods) - flats of drill bits - air tools - grease guns - taps & dies - elec grinders - stainless steel bits - hand pump & parts - levels - dolly - drum hand tools - cut off discs - metal blades - elec hand tools - Starrett cable cutter - pipe vises - Craftsman 12 drawer top box - tubing benders & banders - hammers - mallets - shelving units - rolling cart - Craftsman adjustable halogen lights - sand blaster - salamander heater - over 570 fence posts banded - 16’ x4’ wood pads - lot of orange traffic barrels - skid of road signs - traffic signs w/ & w/o stands - black rolled water line - concrete chute - lot of fuel cans - drain & flexible pipe - bush hog blades - caulking guns & caulking - sprayers - steel plate lifters - flares - flashlights - shop boxes - barb wire rolls - road lights - ratchet straps - tow straps - tire chains - cast iron pans - cast iron pot - radiators - brake parts - lot padlocks & keys - pump w/hose - cable clamps - starters - elec wire bulbs - 3 fuel tanks - engine parts - metal parts - filters - mini fridge - floor dry - roll black landscape - black felt - oil cans - hyd fittings - collar blocks - several lots of new oil filters - fasteners & organizers - soldering items & much more not listed This is only a fraction of a large auction. A full line of pictures & additional information regarding the auction are available at www.behmsauction.com. This will be an outside auction so dress for the weather. Food and restrooms will be available. Plenty of parking. TERMS: Cash, check expected with bank letter of guarantee. Credit cards are welcome with service charge. 10% buyer’s premium. All items are sold as is where is without any warranty or guarantee. Buyers are responsible for removal of all items. Announcements day of auction take precedence over any and all printed material. All items must be paid for the day of the auction and before removal. Information was taken from reliable sources but is not guaranteed. Buyers are encouraged to inspect and call auctioneer for more information.

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Dix Communications - Gas & Oil

www.OhioGO.com

March 2014 Edition

TOP COUNTIES WITH HORIZONTAL DRILLING ACTIVITY BY NUMBER OF SITES

1. Carroll County 378 2. Harrison County 178 3. Columbiana County 98 4. Monroe County 89 5. Belmont County 88 6. Noble County 76 7. Guernsey County 64 8. Jefferson County 40 9. Mahoning County 29 10. Portage County 15 Tuscarawas County 15 Trumbull County 15 11. Stark County 13 12. Washington County 10 13. Coshocton County 5 14. Holmes County 3 Morgan County 3 Muskingum County 3 15. Knox County 2 16. 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 02/15/14

100

125

150

380

Gas & Oil

Southern Zone Edition

March 2014 Edition - Dix Communications

Macchiarola named ANGA A

executive vice president

NGA President and Chief Executive Officer Marty Durbin announced that Frank J. Macchiarola has been named ANGA’s Executive Vice President, Government Affairs. In this capacity, Macchiarola will strategically integrate ANGA’s federal and state government affairs activities with its broader advocacy resources – communications, market development and research/policy analysis. His first day at ANGA will be March 17, 2014. “Frank brings a trusted, experienced hand to ANGA. He will help execute our mission to promote greater use of abundant, domestic and affordable natural gas,” said Durbin. “Frank understands the economic, environmental and security benefits of natural gas, and his experience with complex national policy issues – from energy to health care – will bring great value to our team.” Macchiarola joins ANGA from the law firm of Bracewell & Giuliani LLP where, as partner in the policy resolution group,

he advised clients on energy legislation and policy along with healthcare, education and labor issues. Prior to his time at Bracewell, Macchiarola was Minority Staff Director for the Senate Health, Education, Labor and Pensions Committee (HELP) under then-Ranking Member Sen. Mike Enzi (RWY). He also previously served as both Majority and Minority Staff Director and Counsel to Sen. Pete V. Domenici (R-NM) in his role as Chairman of the Senate Energy and Natural Resources Committee. “It is an exciting time for American natural gas and it is a real privilege to lead ANGA’s advocacy efforts to advance the greater use of this clean domestic energy source,” said Macchiarola. “I look forward to representing ANGA’s members in their essential role in energy policy discussions affecting natural gas use, development and production.” Macchiarola earned his J.D. from New York University School of Law and a B.A. from the College of the Holy Cross.

OHIO WELL ACTIVITY

by the numbers

MARCELLUS SHALE

13 8 4 0 11 0 0 36

Wells Permitted Wells Drilling Wells Drilled Not Drilled Wells Producing Inactive Plugged Total Horizontal Permits

UTICA SHALE

3 5 6 Wells Permitted 108 Wells Drilling 262 Wells Drilled 0 Not Drilled 3 67 Wells Producing 0 Inactive 0 Plugged 1093 Total Horizontal Permits

Data as of 02/15/14 Source: Ohio Department of Natural Resources

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March 2014 Edition

Gas and oil leaders push to move part of U.S. Route 30 out of Stark County Laurie Huffman Dix Communications from where it currently ends, between Trump Avenue and State Route 44 in East Canton, and move traffic out of Stark County. The design work is expected to be complete by 2016. The mayor of East Canton has reported the village is already flooded with truck traffic and said relief will be welcome. ODOt has reported no money is yet raised to pay for the construction, which is estimated to cost $80 million. The agency is working with local groups to develop a funding package needed to get the construction completed. Regula said partnerships between private and public entities must be formed and in place to keep the project moving.

OptiBlend Industries Inc. 10230523

TARK CO. -- The recently announced plan by the Ohio Department of Transportation to construct a leg of the U.S. Route 30 extension and move it out of Stark County was a move that Stark County Commissioner Richard Regula said is based on needs created by the oil and gas industry. The demands for highways that bypass residential areas is great because it is anticipated truck traffic will drastically increase once gas and oil production continues to step up. Regula said this plan by ODOT is a “momentum we must work to keep going,” and he pointed out during a recent interview there were three key people behind the scenes that were instrumental in getting the plan brought out from the back shelf where it has sat, collecting dust, for decades. “To my knowledge, there were three key people who pushed Governor John Kasich to get the plans moving for the Rt. 30 leg,” said Regula. “I was told those people were Dennis Nash, Doug Sibla, and Tim Timken.” Regula said the trio each brought information to Kasich on the urgency of the project. Nash, discussed the needs related to trucking, as he works for Kenan Advantage Group, which is North America’s largest tank truck transporter of fuel, chemicals, industrial gases, and food-grade products. It has operations in 40 states in the U.S. and 16 operations in British Columbia and the Northwest Territories, as well as having the ability to deliver in 48 states, plus Mexico. Sibla, of Peoples Services, also discussed trucking. His company has operations close to home, which run north from South Carolina up through North Carolina into Virginia and West Virginia and on through Ohio and Michigan. Peoples specializes in transportation and is recognized as a specialist in handling hazardous materials and a broad range of other commodities. Timken, of The Timken Company, located in Canton, impressed upon Kasich how crucial it is to get their steel to the river, because it can now be shipped that way, since the Panama Canal was revamped and made available. ODOT agreed to pay to get the engineering plans updated for the project, and pay for the right of way land purchases and utility relocations. The plan is to move the highway south

is seeking a truck driver for regional runs REQUIREMENTS: Class A CDL with tanker and HazMat endorsements. Minimum 1 year or 100,000 miles verifiable experience; must be willing to work a flexible schedule. OptiBlend offers competitive pay, excellent benefits and opportunity for growth. OptiBlend is an equal opportunity employer. Apply in person at 6820 Manila Rd in Cambridge or call Aaron at 740-995-0817

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March 2014 Edition - Dix Communications

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Columbus ~Youngstown ~ Canton Akron ~ Louisville ~ West Virginia

www.GrowingGood.com

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