May 2020
A Free Monthly Publication
OHIO-MADE ENERGY IS ESSENTIAL TO MODERN LIFE
FIRST-CLASS STEM CURRICULUM AVAILABLE FOR AT-HOME LEARNING IN THIS ISSUE: FOOL ME ONCE… - GUEST EDITORIAL
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NEWS. BUSINESS. TECHNOLOGY. ALLIANCE Mindy Cannon 330.821.1200
CAMBRIDGE Mindy Cannon 330.821.1200
OHIO’S GAS & OIL INDUSTRY RAVENNA Bill Albrecht 330.996.3782
WOOSTER Aaron Bass 330.264.1125
CALL YOUR LOCAL OHIO GAS & OIL SALES REP. TODAY
Table of Contents MAY 2020 G ROUP PUBLISHER Bill Albrecht
EXECUTIVE EDITOR Beth Bailey bbailey@daily-jeff.com
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Ohio-Made Energy Is Essential to Modern Life
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Ohio Natural Gas and Oil Industry Steps Up to Help Communities Respond to COVID-19 Pandemic
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First-Class STEM Curriculum Available for At-Home Learning
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Fool me once… - Guest Editorial
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MEMBER SPOTLIGHT: Alex Stroman, TC Energy
Mindy Cannon Alliance & Minerva, Ohio Offices mcannon@the-review.com 330-821-1200
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ODNR Operations During Coronavirus Outbreak
Bill Albrecht Akron & Kent, Ohio Offices balbrecht@gatehousemedia.com
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Case Law Update: Ohio is One Step Closer to Learning Whether the DMA and MTA both Apply to Mineral Rights
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Ohio Well Activity
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Horizontal Drilling Activity Graph
On The Cover:
From the hand sanitizer in our bags to the life-changing medicine in our cabinets, and from advanced medical equipment to the band-aids in our first-aid kits, natural gas and oil is essential to modern life. The natural gas and oil Ohio produces, does more than heat homes and fuel our cars, as nearly every consumer product we touch is manufactured using these raw materials. MAY 2020
MAY 2020
A Look Ahead Gas & Oil Events
ADVER TISING Mindy Cannon Cambridge, Ohio Office mcannon@the-review.com 330-821-1200 Aaron Bass Wooster & Holmes, and Ashland, Ohio Offices abass@gatehousemedia.com 330-264-1125 419-281-0581
L AYOUT DESIG NER Phil Luks
pluks@recordpub.com
212 E. Liberty St. Wooster, OH 44691 330-264-1125 “Ohio Gas & Oil” is a monthly publication. © GANNETT Co. Inc. 2020
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A Look Ahead
Gas & Oil Events DUE TO THE COVID 19 PANDEMIC, MANY EVENTS HAVE BEEN CANCELED OR POSTPONED. PLEASE CHECK WITH THE EVENT COORDINATOR FOR NEW DATES AND TIMES.
MAY 2-3, 2020
OOGEEP RESPONDING TO OILFIELD EMERGENCIES TRAINING
INSTRUCTORS Lead Fire Instructor: Chief Brent Gates, New Concord Fire Department – Ohio Certified Fire Instructor – Adjunct Instructor Ohio Fire Academy – Board of Directors, Ohio Fire Chiefs’ Association – President, Southeast Fire Chiefs’ Association – More than 40 years experience in emergency response and fire education Other Instructors: Includes a team of 15+ state certified fire instructors, emergency responders and industry experts with more than 500 years of combined experience in the oil and gas industry and/ or fire service. TRAINING LOCATION Wayne County Fire & Rescue Regional Training Facility 2311 South Millborne Road, Apple Creek, OH 44606 www.oogeep.org
technical educators and partners gather to exchange time, resources, strategies, solutions and more. Over three days of learning, growing and finding inspiration, attendees are equipped with a year’s worth of support in their daily responsibilities as leaders in education.
– Adjunct Instructor Ohio Fire Academy – Board of Directors, Ohio Fire Chiefs’ Association – President, Southeast Fire Chiefs’ Association – More than 40 years experience in emergency response and fire education Other Instructors: Includes a team of 15+ state certiSOOGA ANNUAL TRADE SHOW fied fire instructors, emergency reBroughton’s Community Building sponders and industry experts with Marietta, OH 45750 more than 500 years of combined experience in the oil and gas industry and/ or fire service. OOGEEP RESPONDING TO OILTRAINING LOCATION FIELD EMERGENCIES TRAINING Wayne County Fire & Rescue ReINSTRUCTORS gional Training Facility Lead Fire Instructor: 2311 South Millborne Road, Apple Chief Brent Gates, New Concord Creek, OH 44606 Fire Department www.oogeep.org – Ohio Certified Fire Instructor
SEPTEMBER 24, 2020 OCTOBER 3-4, 2020
JUNE 26, 2020
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JULY 27 – 29, 2020
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Hilton Columbus at Easton 3900 Chagrin Drive, Columbus, Ohio 43219 The 2020 Connections to Education Conference is where career-
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MAY 2020
Ohio-Made Energy
Is Essential to Modern Life GREG MASON | Ohio Oil and Gas Energy Education Program From the hand sanitizer in our bags to the life-changing medicine in our cabinets, and from advanced medical equipment to the Band-Aids in our first-aid kits, natural gas and oil is essential to modern life. The natural gas and oil Ohio produces, does more than heat homes and fuel our cars, as nearly every consumer product we touch is manufactured using these raw materials. National political discussions are missing the mark. A ban on “fracking,” the technology that is unleashing Ohio’s energy abundance, would wreak havoc on working families, the strength of our state’s economy, our environment, and the manufacturing of the very products we all need. With Ohio’s position as a key battleground state and a leading producer of American natural gas and oil, residents deserve the facts, data and clear-eyed analysis of the value responsible energy development creates. America’s surge in energy production has created generational benefits for Ohioans. State data and independent academic research shows that it supports more than 200,000 family sustaining Ohio careers, has saved Ohioans $45 billion in home energy costs since 2011, and has made Ohio a leader in clean air progress. Over the past decade, more than $78 billion has been invested in shale-related activities here, according to an analysis from Cleveland State University. Those tensof-billions of dollars have meant full diners, new small businesses, and economic development spanning from Marietta to Toledo. Take the 500 acres of land purchased by Orin Holdings just up Route 7 from Steubenville, for example. A few weeks ago, the company and Jefferson County officials announced the acquisition, which is slated to house two state-of-the-art gas-to-liquids plants in Saline Township. From the Ohio Valley, the owners saw the opportunity abundant, affordable natural gas presents, to establish new manufacturing and create good-paying careers for hundreds of local residents. This facility, coupled with the proposed PTT Global ethane cracker plant along the Ohio River in Belmont County, will permanently employ hundreds of our local, high-skilled Ohioans, bringing good-paying jobs to a region that for so long saw
MAY 2020
manufacturing move away. And that’s not to mention the thousands of local building and union trade members who’ve been hard at work constructing new manufacturing facilities, natural gas power generators, and energy infrastructure. For the past decade, we’ve all benefited from Ohio’s leadership as the nation’s fifth largest natural gas and a leading oil producer. Should a ban on hydraulic fracturing take hold, economic data tells us the Appalachian Basin would see an erosion of these broadly shared benefits. According to analysis from the U.S. Chamber Of Commerce, approximately 700,000 Ohio jobs would be lost over the next five years and our economy could shrink by $245 billion. Energy costs — from the thermostat to the gas pump — would rise, causing the cost-of-living to increase by almost $6,000 annually. Ohioans realize the benefits shale development provides to the Buckeye State as more than 78 percent, according to public opinion polling the Ohio Oil and Gas Energy Education Program conducted last year, support continuing oil and natural gas development and even more believe the industry is important to their community. While we’re all facing challenging times and strong headwinds, we’re optimistic about the future that’s ahead and the value of working together to provide Americans with clean, affordable energy supply. It’s important we all remain engaged and think critically about the key role Ohio-produced energy plays in keeping us healthy and safe while making the many things we enjoy about our modern life possible. About the Author Greg is a Certified Petroleum Geologist with 40 years experience in prospect development, drilling and completion procedures in the Appalachian Basin. He is a past adviser to the Secretary of Energy on research matters concerning Unconventional Resources Development in the United States.
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Ohio Natural Gas and Oil Industry Steps Up to Help Communities Respond to COVID-19 Pandemic Industry donates $19,000 in meals, technology and 100,000 pieces of personal protective equipment to support communities, first-responders Ohio Oil and Gas Energy Education Program & Ohio Oil & Gas Association Ohio’s natural gas and oil industry joined together to help first responders, hospital workers, and school districts by donating meals, technology, and personal protective equipment, the Ohio Oil and Gas Energy Education Program (OOGEEP) and Ohio Oil and Gas Association (OOGA) announced today. In total, OOGEEP donated $19,000 in gift cards from local restaurants and grocery stores as well as WiFi hot spots to support student virtual learning to hospitals and schools in Newark, Marietta and St. Clairsville. OOGA worked through its members to collect and distribute over 100,000 personal protective equipment items to first responders and EMAs across southeastern Ohio. “Ohio is a strong community and we’ve always looked out for one another, but especially during these difficult times,” said Kennedy Copeland, OOGEEP spokeswoman. “For the doctors, nurses, and medical professionals on the front lines of keeping us safe, we wanted to say thanks and provide a meal from a local restaurant.” OOGEEP purchased 650 gift cards from Elm’s Pizza Parlor and Snapshots Coffee & Kitchen in Newark to donate to Licking Memorial Hospital. For Marietta Memorial Hospital in Washington County, OOGEEP purchased 650 gift cards from Busy Bee, an area restaurant that sources food from local farms. To sup-
Larry Sloter - Busy Bee Restaurant Owner
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St.Clairsville Superintendent Walter Skaggs port families in St. Clairsville and students with virtual learning, OOGEEP also partnered with St. ClairsvilleRichland City School District to provide $3,000 in gift cards to Kroger and a $3,000 grant for the district to purchase WiFi hotspots for students. “We’ve had a lot of difficulty getting access for some of our kids in outlying areas and we have created some drive-in WiFi access points, but still there’s people who can’t get to those,” Dr. Walter Skaggs, Superintendent of St. Clairsville Schools said. “The fact we’re able to purchase WiFi hotspots with this donation and get our kids access, that means everything to us.” Working through its member companies, OOGA donated masks, gowns, gloves, glasses and wipes to first responders and emergency management agencies across Southeast Ohio. “So many people are hurting right now and facing tough times in one way or another,” Mike Chadsey, director of public relations, said. “We put the call out to our membership for help, and because this is home for so many of our folks, they delivered. Our hope is that our donations quickly get to where they are needed the most and help in some small way.” The equipment will be used by various local agencies on the front lines to continue providing emergency services while keeping responders safe. COVID-19 continued on page 5
MAY 2020
COVID-19 continued from page 4
“We have enjoyed an ongoing partnership with the natural gas industry,” Dave Ivan, director of the Belmont County Emergency Management Agency, said. “Because of that partnership they have recognized what are our needs are during these tough times and stepping up to meet those needs.” The Ohio Oil and Gas Energy Education Program (OOGEEP) is a non-profit statewide education and public outreach program. Created in 1998, OOGEEP provides a variety of programs throughout the State of Ohio. These programs primarily focus on teacher workshops, scholarships, science fair, firefighter training, industry training, career and workforce development, research, landowner and guest speaker programs. Engage with us via oogeep.org, Like us on Facebook and follow us on Twitter. The Ohio Oil & Gas Association (OOGA) is a trade association dating back to 1947 with members representing the people and companies directly responsible for the production of crude oil, natural gas, and associated products in Ohio. The core OOGA membership is comprised of independent oil and natural gas producers, major national oil and natural gas producing companies, and major international oil and natural gas companies—all focused on the exploration, discovery, and production of crude oil, natural gas, and associated liquids in Ohio. Check us out at ooga.org, LinkedIn, Facebook and Twitter
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First-Class STEM Curriculum
Available for At-Home Learning Ohio Oil and Gas Energy Education Program OOGEEP recognizes that students benefit from learning core science, technology, engineering and mathematics (STEM) principles at an early age. As teachers and students adjust to online learning, Ohio’s natural gas and oil industry is helping keep kids engaged while they’re faced with the challenges of learning at home. Materials typically reserved for teachers and schools are now accessible via OOGEEP’s online virtual classrooms. Lessons covering chemistry, earth science, geology and physics are available and range from middle to high school-level, and meet state and national standards. “Many families are looking for supplemental tools to help their students stay sharp and on a schedule during this difficult time,” Greg Mason, Interim Executive Director at OOGEEP said. “Ohio’s natural gas and oil industry prioritizes educating the general public, which is why OOGEEP will be providing families with free online access to the same STEM and Geology curriculum that many teachers incorporate in their classroom plans.” Emphasizing hands-on learning experiences, OOGEEP’s curriculum includes a variety of at-home science experiments that translate STEM concepts to everyday life and careers in the natural gas and oil industry. Here’s a look at a few of the award-winning programs:
GEOLOGY CURRICULUM & LABS: Interactive lessons help kids grasp technical concepts about the basics of geology and minerals. Our curriculum uses tools that challenge kids while providing a unique way to make real-world connections. Geology topics include: Differentiation of Earth’s Layers Active Earth: From Continental Drift to Plate Tectonics Mineralogy: The Building Blocks of Our Rocks Rocks vs. Minerals Ohio’s Sedimentary Basins Earth’s Energy Sources ARE YOU AN ENERGY CHAMPION? OOGEEP’s assessment portals range from word searches and trivia games to comprehensive exams reflecting topics covered in the curriculum. Posters, coloring and activity books geared towards younger students are open to all ages to help keep their minds sharp while at home. Take the Energy Challenge quiz today to see if you have what it takes to be an Energy Champion!
STEM CURRICULUM & LABS: From rock formation to end-use products – and every step in between – OOGEEP’s STEM lessons and experiments teach kids about Earth’s natural resources and the technology used to leverage those resources for daily use. Lessons cover: Formation Migration and Trapping Exploration Drilling and Well Stimulation Producing and Transporting Refining and Processing Petrochemicals and Products
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MAY 2020
Fool me once… Guest Editorial GREG KOZERA | Shale Crescent USA
MAY 2020
rus and not giving it a higher priority than they did. Impeachment of the President was the hot topic. If some Americans were hearing about the virus in December, surely someone from the media heard about it. Why didn’t we learn about it? However, blaming doesn’t change anything. We can’t control what people did and didn’t do. What are we going to do now? We can take responsibility of our own actions. We have 100% control of them. We can choose how we respond to this situation. We can’t control what was reported in December. We can question what we hear in the major media now. We can never just assume they have it right. They have been caught in numerous lies and halftruths about topics I have personal experience with. I have attended events in Charleston. When I read the story the next day in the local paper, I wondered Fool me continued on page 8
WO-10733400
I can still remember a high school soccer playoff game we lost, over 10 years ago. It was a hard- fought close game. One leadership key we teach our seniors is to take responsibility. Our team didn’t like some of the referee’s calls. I don’t believe in yelling at officials. They have a tough job. I’m glad we have them. If necessary, I talk to them at an appropriate time. The boys were changing their shoes when one of the underclassmen commented, “The refs stole this one from us.” Before I could say a word one of our senior captains said, “No. It wasn’t the refs. We didn’t play good enough to win.” I smiled. Our captain understood a very important life lesson about taking responsibility. We still see each other periodically. He is a very successful businessman today. A life lesson learned on the athletic field is more important than wins or losses. Our captain understood blaming the ref would not turn the loss into a win. He learned when we take responsibility we take control. If our failures are someone else’s fault we are powerless to fix them. If we blame our boss, spouse, the dog or the government for a being in a bad mood, we have given them control over our lives. If they are the problem, only they can fix it. Taking responsibility allows us to take control of our life. My captain understood he had little control of how the ref called the game. He had control over his actions and responses. He could help his team to play better. We have 100% control over our responses. We had no control over the Coronavirus coming to the USA. If you had been in China, got infected with the virus and brought it here then you would be responsible. I don’t know anyone who did that. I do know business people in New York who met with Chinese visitors back in November and December and learned about the virus. They were concerned and reduced their trips to cities like New York. They knew they could be on a subway packed with strangers or jammed into an elevator. Surely there were media people who also crossed paths with the same information. Unfortunately, no investigative reporter looked into the virus and was able to convince their editor or manager that the Corona virus was more of a threat to Americans than President Trump’s impeachment. We can blame the Chinese for being complacent or for lying to us about details of the virus. We can blame the major media for not learning about the vi-
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Fool me continued from page 7
if the writer was at the same event as me. Fool me once, shame on you. Fool me twice or more, shame on me. We should never take anything at face value. Ask questions. We need to stay informed. Do we really need to have the news on all day? I find, watching all of that negative stuff for any length of time brings me down. It depresses me. If we aren’t careful, we can pass on negative, bringing others down. We need hope in the future to have the power to act in the present. We couldn’t control the virus coming here. We can control its spread by following the CDC and our government’s guidelines. We can stay physically separate from people. We can wash our hands. We can encourage others to do the same. I just listened to a Facebook post from one of my speaker friends in Cleveland. She was talking about all of the things we have to be grateful for. Years ago, I began starting each day by finding at least 3 things to be grateful for. I challenge you to think of 3 things right now, in your own life you are grateful for. I encourage you to do that for just one week. It will change your attitude. I began to question the source of the medications my wife and I take. It is time to quit having 80% of them come from China. I wonder if that includes opi-
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oids? We can put pressure on American companies and our elected officials to change this. With abundant energy, petrochemical feedstocks and advanced manufacturing in Shale Crescent USA, companies will find the most economical place to manufacture products like pharmaceuticals for the USA market here in our Region. We can’t change the past. We have a responsibility to our children and grandchildren to change the future. Someday there will likely be another virus. We can learn from today and make sure our medications, medical equipment and personal protective equipment are made in the USA where we have control. Spring and Easter are a time for new beginnings. Make it a positive week! © 2020 Shale Crescent USA Greg Kozera, gkozera@shalecrescentusa.com is the Director of Marketing and Sales for Shale Crescent USA. He is a professional engineer with a Masters in Environmental Engineering who has over 40 years’ experience in the energy industry. Greg is a leadership expert and the author of four books and numerous published articles.
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MEMBER SPOTLIGHT:
ALEX STROMAN, TC ENERGY BRAD MILLER | Membership Director, Ohio Oil & Gas Association The member spotlight series but which has since been rebranded features OOGA members making as TC Energy. an impact with their membership. Headquartered in Calgary, AlIf you would like to recommend berta, with U.S. headquarters in someone to be highlighted, please Houston, Texas, TC Energy has opcontact Brad Miller at: bmiller@ erations in 37 states and landowner ooga.org agreements in all 50. It has more Stroman, the Government Affairs natural gas storage than any other & Community Relations Manager company on the continent, and 27 for TC Energy—formerly TransCanpercent of the energy used in the ada—has been involved in politics country every day is transported for most of his life. Born, raised through its pipelines, Stroman said. and educated in South Carolina, his Stroman’s portfolio has expandfirst job out of college was with the ed quite a bit in his two-and-a-half South Carolina Republican Party, years with the company and now ultimately becoming the Executive includes government relations work Director at age 23, at the time makin seven states: Ohio, Pennsylvania, ing him the nation’s youngest perKentucky, Tennessee, Mississippi, son to hold such a position for a Louisiana and New Jersey. Not surstate party. prisingly, he is on the road a lot. “In Alex Stroman, TC Energy His work also included a commutotal, I’ve spent 110 nights in Marnications role in the state treasurer’s office and on a riott properties (in 2019),” he said. statewide lieutenant gubernatorial campaign. He has He became quite familiar with Ohio in just his first always enjoyed working with the press and crafting year on the job, predominantly with the Buckeye messages, skills that have helped him in his current XPress project, part of TC Energy’s ongoing modernrole. “Having that background has been important for ization program to update aging infrastructure, upcreating grassroots strategies and understanding the grade natural gas compression systems and increase political realities of certain projects and for accom- pipeline reliability. Expected to be completed later plishing our goals in the halls of power in states and this year, the project will replace about 64 miles of municipalities across the country,” he said. existing pipeline with safer, more reliable pipe. After cutting his chops at the state level, Stroman Although the company has possessed a few differmoved to Washington, D.C., where he served as the ent names throughout the past century, Stroman says Director of Surrogates and Media Training for the Re- TC Energy’s commitment to Ohio and the Appalapublican National Committee during the 2016 elec- chian region has never wavered. “The investments TC tion cycle. He also managed the surrogate program Energy makes in infrastructure, such as in southeast at the Republican National Convention and for the Ohio, change lives and better communities,” he said. three presidential general election debates, spending “We engage with communities very honestly and the final three months of the election detailed to the transparently, and we make sure we are upholding our campaign in Trump Tower in New York City. He lat- end of the bargain. We have a company motto about er became the Deputy Communications Director for being a good neighbor, and I think that is something the 58th Presidential Inaugural Committee, which he we go above and beyond in doing.” called a “huge logistical undertaking.” Moving forward, Stroman feels strongly that the inFrom there, he briefly returned to the RNC head- dustry must be “ever-vigilant” in sharing its story to quarters, serving as a spokesperson for the nomina- a wide audience regarding the positive impacts oil tion of Justice Neil Gorsuch to the Supreme Court, and natural gas have had on homes and businesses and worked for a non-profit supporting the presi- around the world. And he believes the Appalachian dent’s agenda during his first 100 days in office. Then, Basin is a significant part of that narrative. “There’s a in July 2017, looking to broaden his professional op- good story to be told about the North American enerportunities, he joined what was then still TransCanada Member Spotlight continued on page 11
MAY 2020
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ODNR Operations
During Coronavirus Outbreak Ohio Department of Natural Resources The Ohio Department of Natural Resources continues to operate in accordance to guidance from the Ohio Department of Health and Governor Mike DeWine in the wake of the COVID-19 coronavirus in Ohio. We want to assure our visitors that we are monitoring the situation closely and doing all we can to protect the public and our staff. Discover the Outdoors Online with our Experts: If you can’t visit one of our properties in person, we have tools to connect you to the natural, historical and cultural assets of the Ohio Department of Natural Resources. Explore the links on our ohiodnr.gov/odnr-operations-during-coronavirus-outbreak/odnr-digital-discoveries web page to learn more about our properties and programs and take some time to plan your next adventure in Ohio’s great outdoors. What is open: • Public outdoor spaces at Ohio state parks, wildlife areas, forests and nature preserves remain open, including trails, dog parks, and docks with a few exceptions: • Hocking Hills State Park is closed. This closure includes Ash Cave, Cantwell Cliffs, Cedar Falls, Old Man’s Cave, Rock House and Whispering Cave. This closure also includes Conkle’s Hollow State Nature Preserve and several areas at the Hocking State Forest (trails, rock climbing and rappelling area, fire tower area, and day use bridle areas). • Magee Marsh Wildlife Area is closed. • The boardwalk trail at Maumee Bay State Park is closed. • We’ve assembled a list of beautiful hiking trails that may be new to you. If you head out, use common sense, adhere to social distancing guidance, and remember to plan ahead – restrooms and other facilities are closed at Ohio Department of Natural Resources properties statewide. Visit trails.ohiodnr.gov/trail-highlights/ for more information. What is limited: • Parking. If a parking area is full or a parking lot is blocked, move on. Cars parked on roadways or grass will be ticketed. • Fishing. Non-resident fishing and hunting license sales have temporarily been suspended. Individuals who currently possess a non-resident hunting or fishing license may hunt or fish in Ohio if they abide by ODH 10 OhioGas&Oil
guidance to self-quarantine for 14 days before they do so. • Trout stockings will continue this spring but events associated with stockings have been cancelled. • If you wish to access Army Corps of Engineers properties, please check their websites for the latest information. Some Army Corps properties are not accessible at this time. • Shooting Ranges. Class A shooting ranges are closed. All other shooting ranges are open at this time. Check details at our website ohiodnr.gov/odnr-operations-during-coronavirus-outbreak/odnr-digital-discoveries What is closed: • Restrooms and Shower Houses. Please plan accordingly. • State Park Lodges: Burr Oak, Deer Creek, Geneva, Hueston Woods, Maumee Bay, Mohican, Punderson, Salt Fork, and Shawnee State Park • All cabins • All campgrounds (including the campgrounds at Woodbury and Crown City Wildlife Areas) • All visitor centers • Golf courses • Playgrounds • Fire towers • APV areas • Horse camps • State park marina buildings • Naturalist programs, hikes, and special events at ODNR properties are suspended through May 15 • Property Closures: • Old Woman Creek National Estuarine Research Reserve Visitor Center (Erie County) is closed. • Hocking Hills State Park is closed. This closure includes Ash Cave, Cantwell Cliffs, Cedar Falls, Old Man’s Cave, Rock House and Whispering Cave. This closure also includes Conkle’s Hollow State Nature Preserve and several areas at the Hocking State Forest (trails, rock climbing and rappelling area, fire tower area, and day use bridle areas). • Magee Marsh Wildlife Area is closed. • The boardwalk trail at Maumee Bay State Park is closed. • ODNR office locations are closed, but ODNR staff is ODNR continued on page 12
MAY 2020
Member Spotlight continued from page 9
gy renaissance and what we’re seeing, mainly due to the shale plays in Ohio, West Virginia and Pennsylvania,” he said. “In my role at TC Energy, I am gaining a deeper appreciation and understanding of what this region is doing to remake the American economy and to strengthen American national security.” Why is sharing that story so important? Because the opposition is strong, motivated and good at distorting the many good things the industry has accomplished, Stroman says. “It is important for the industry to continue to look for opportunities to explain, for example, that the reason carbon emissions are going down in the United States is because of clean-burning natural gas,” he said. “So we need to tell the story of what our industry does and how our lives would be completely different under something like the Green New Deal, which would erase all the gains we’ve made to our economy over the past handful of years and over the past generation.” Additionally, he has seen tremendous value and benefit in forming bonds with what he calls non-traditional allies, which he says is going to be the “new frontier to combating the opposition.” For example, “showing that industry and labor are allies against an opposition looking to end our livelihoods is some-
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thing that politically needs to continue.” While Stroman is no stranger to OOGA events, his involvement in the Association is about to escalate. He was elected to the Board of Trustees last fall and began his first term at the beginning of the year. “I’m honored to represent my company as we grow within the organization and I am hopeful about where OOGA is headed in 2020 and beyond,” he said. As a trustee, Stroman hopes his experience and background can provide a helpful perspective, but he is also looking forward to learning from and assisting the people who have “been around a lot longer than I have” and who have helped make OOGA what it is today. At the same time, he is looking forward to building upon the relationship between TC Energy and Ohio. “We’re excited to continue being a part of OOGA and continue to help the industry grow in the state of Ohio in the way that we interact with our landowners and stakeholders across the state,” he said.
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CALL YOUR LOCAL OHIO GAS & OIL SALES REP. TODAY SEE PAGE 1 FOR MORE INFO OhioGas&Oil 11
ONDR continued from page 10
still here to assist you: • All Division of Forestry office locations and state forest office sites, including the Mohican-Memorial Shrine are closed to the public until further notice. All fire towers, horse camps, and APV areas are closed. Hocking State Forest closures additionally include all trails, rock climbing and rappelling areas, and day-use bridle areas. For more information visit forestry.ohiodnr.gov or call 1-877-247-8733. • All Division of Geological Survey office locations, including the Horace Collins Lab are closed to the public until further notice. For more information call 614265-6576 Monday through Friday, 8am to 11:30am and 1:00pm to 4:30pm or email at geo.survey@dnr.state. oh.us. • All Division of Mineral Resource Management office locations are closed to the public until further notice. For more information call 614-265-6633 or email at minerals@dnr.state.oh.us. • All Division of Oil and Gas Resources Management offices are closed to the public until further notice. Staff is available by phone at (614) 265-6922 Monday through Friday 8 a.m. –5 p.m. or via email at oilandgas@dnr.state.oh.us. • All Ohio State Park and Watercraft offices, visitor centers, and nature centers are closed to the public. Staff is available by phone and email to respond to
questions regarding local facilities, as well as current and new reservations. Visit ohiostateparks.org to find the park office number for each park. • All Division of Wildlife district offices, visitor centers, and wildlife area headquarters are closed to the public and all hunter/trapper education courses are to be cancelled until further notice. For more information visit wildlife.ohiodnr.gov. Modifying or Cancelling your Reservation: • Ohio State Park Campground and Cabins: Reservations with an arrival date on or before May 14 will be cancelled automatically. Customers will receive a full refund for these reservations back to the original form of payment where possible. If we can’t refund to the original form of payment, you will receive an Ohio State Parks e-gift card for use on a future reservation. • Lodge Rooms and Cabins: Overnight reservations with an arrival date on or before May 14 will be cancelled automatically. Customers will receive a full refund for these reservations back to the original form of payment where possible. If the refund cannot be processed to the original form of payment, lodge staff will contact guests directly to discuss an alternate form of refund. • Customers with day-use shelter reservations will be notified by the park staff about their reservations.
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SEE PAGE 1 FOR MORE INFO 12 OhioGas&Oil
MAY 2020
CASE LAW UPDATE:
Ohio is one Step Closer to Learning Whether the DMA and MTA both Apply to Mineral Rights David J. Wigham | Attorney Merit briefs have been filed in a landmark oil and gas case currently pending before Supreme Court of Ohio: West v. Bode, Case No. 2019-1494. And the stakes could not be higher for both surface and mineral owners, because the Supreme Court is being asked to decide a single question that carries with it sweeping consequences: whether a surface owner may utilize the Marketable Title Act (“MTA”) to quiet title to severed mineral interests, or whether the Dormant Mineral Act (“DMA”) provides the exclusive remedy to quiet title to severed mineral interests. Under Ohio law, when two statutes are in conflict and if the conflict is irreconcilable, the more specific statute controls over the general statute. The primary issue before the Court in West v. Bode is whether the MTA irreconcilably conflicts with the DMA.
If the Court rules that the MTA irreconcilably conflicts with the DMA -- and therefore cannot be used to extinguish severed mineral interests -- surface owners will be left with few remedies to terminate severed mineral interests, primarily because the DMA allows mineral owners to perpetually preserve their interests and to easily defeat surface owner abandonment attempts. For this reason, the Court’s ruling in this case will have major implications in Ohio’s shale play. First, depending on how the Court rules, there could be a major wealth transfer as the ownership of valuable mineral rights shift between surface owners and mineral owners. Second, there will be oil and gas development implications. The increased uncertainty and risk caused by recent inconsistent MTA rulings from lower courts clouds title to minerals and hinders development and increases costs. Case Law continued on page 14
OHIO’S LEADING CHOICE IN
OIL AND GAS LAW Roetzel’s experienced Oil and Gas attorneys provide a wide array of legal services focused on landowner representation including: • Leasing and lease renewals, ratifications and amendments • Litigation, including: Lack of production, Dormant Mineral Act, Marketable Title Act • Pooling and unitization • Pipeline easements • Surface development • Mineral LLC’s • Royalty disputes
WO-10733397
For additional information, contact Dave Wigham at dwigham@ralaw.com or Tim Pettorini at tpettorini@ralaw.com.
GAS AND OIL TEAM MEMBERS: EMILY ANGLEWICZ, SARA FANNING, BEN FRAIFOGL, JEREMY MARTIN AND BRET MCNAB • 222 SOUTH MAIN STREET I AKRON, OH 44308 I 330.376.2700 • 121 NORTH MARKET STREET, 6TH FLOOR I WOOSTER, OH 44691 I 330.376.2700
MAY 2020
OhioGas&Oil 13
Case Law continued from page 13
In many cases, producers are forced to seek protection leases from, or force unitize, both surface owners and mineral owners before receiving permits to drill Shale unit wells, and then must hold bonus and royalty payments in suspense accounts until title to the minerals is cleared through costly litigation. For these reasons and others, West v. Bode is being closely watched by all stake holders in Ohio’s shale play. As of April 20, 2020, merit briefs were filed by both parties to the appeal. In addition, several Amicus briefs were filed, including one on behalf of Ascent Resources and Gulfport Energy urging the Court to hold that the MTA is in direct conflict with the DMA and therefore cannot be used to extinguish mineral interests. Several surface owners and one local producer who will be impacted by the Court’s decision also submitted Amicus briefs, arguing that the MTA should remain a remedy to extinguish severed mineral interests. (Amicus briefs are filed by non-litigants who have a strong interest in the outcome of the case and advise the court of additional arguments for the court to consider). The Appellants still have time to file a reply brief, and then the Court will set the matter for oral argument. At the earliest, we expect the Court to render a decision by the end of the year. MINERAL OWNER ARGUMENTS In their merit brief, the Appellants (the mineral owners) correctly observe that when the original MTA was enacted in 1961, it did not apply to minerals, but was later amended in 1973 to include mineral rights. However, in 1983, the Ohio Supreme Court issued its decision in Heifner v. Bradford, 4 Ohio St. 3d 49, holding that when a severed mineral interest is subject to a separate chain of title, independent from the chain of title to the surface, and title transactions are recorded within the 40year period of marketability within this separate, mineral chain of title, those title transactions break the surface owner’s chain, preventing the extinguishment of the severed mineral interest. Suddenly, the MTA’s stated purpose of “simplifying and facilitating land title transactions” was defeated. The separate chain of title to a severed mineral interest that predates the root title deed can split into hundreds of smaller chains over time, as the severed interest is fractionalized by transfer and inheritance. Each chain can potentially contain a savings event that prevents extinguishment. Complicating matters further, there are instances where severed mineral owners have conveyed royalty interests out of the separate mineral estate, thereby creating two additional layers of chains of title that could be subject to the MTA (mineral fee and royalty chains). And all of this is occurring outside of the surface owner’s record chain of title. It was for this reason, the Appellants argue, that the Ohio legislature enacted the DMA, an amendment to the MTA, to create a separate (and sole) remedy for terminating severed mineral interests. According to the Appellants, when construed together, both statutes contain mechanisms for terminating severed mineral interests, but the DMA is the more specific remedy, in that it applies only to mineral rights. The MTA, by contrast, can be applied to any interest in land, including for example, old, unreleased mortgages, easements and rights-ofway, or even deed or use restrictions. The Appellants then point out that the conflict between the
14 OhioGas&Oil
MTA and DMA is irreconcilable by citing several examples when the two statutes could operate differently to the same severed mineral interest, such that a mineral owner could take steps under the DMA to preserve its interest and actually place the interest in production, and at the same time could lose the same interest under the MTA because there was no title transfer in the surface owner’s chain of title within the 40-year period, even though the interest was in production and preserved under the DMA. In other words, the mineral interest could be simultaneously preserved under the DMA and extinguished under the MTA; the mineral owner is the owner of the mineral interest under the DMA and the surface owner is the owner of the mineral interest under the MTA. Thus, Appellants argue, the MTA and DMA irreconcilably conflict with each other. SURFACE OWNER ARGUMENTS Conversely, the Appellees (the surface owners) argue there is no irreconcilable conflict between the MTA and the DMA. Reviewing the history of the enactment of the MTA in 1961, its amendment to include mineral interests in 1973, the enactment of the DMA in 1989, and the amendment of the DMA in 2006, Appellees observe that the extinguishment of a mineral interest under the MTA is separate and distinct process from a DMA abandonment and just because the two statutes operate differently does not necessarily mean that they are in conflict with each other. On one hand, the MTA operates to extinguish prior mineral interests when a person holds “marketable record title” to their property, meaning that there is an “unbroken chain of title … for forty years or more.” On the other hand, the DMA is merely an “evidentiary device” that creates a “conclusively presumption” of abandonment after 20 years of non-use and the failure by the mineral owner to preserve its interest. From this, Appellees conclude that that there is no conflict between the two statutes, but even if there is, the conflict is not irreconcilable. The Appellees also cite to Supreme Court’s decision in Corban v. Chesapeake Exploration, LLC, 2016-Ohio-5796, in which a plurality of the Court distinguished between the DMA’s use of the term “deemed abandoned” from the “extinguished” interest under the MTA. For this reason, the Appellees argue that the fact that the MTA and DMA create different results does not mean they are in irreconcilable conflict. According to Appellees, if the MTA has already operated to extinguish a mineral interest, that interest cannot be revived under the preservation mechanism of the DMA. In summary, one thing is clear: the Supreme Court of Ohio is going to render a decision on this issue and the ability of surfaces owners to extinguish mineral rights under the MTA is at risk. A ruling by the Supreme Court of Ohio that the MTA does not apply to minerals would deal a significant blow to surface owners seeking to extinguish severed mineral interests in their property and grant a huge victory to mineral owners seeking to preserve their ownership of these interests. The combined impact of continued uncertainties in the law and the need for litigation to clear title to minerals highlights the importance of retaining an experienced oil and gas attorney who can advise clients with respect to the rights of surface owners and mineral owners as to severed mineral interests.
MAY 2020
OHIO WELL ACTIVITY by the numbers
UTICA SHALE
MARCELLUS SHALE 26 6 9 36
77
Wells Permitted Wells Drilling Wells Drilled Not Drilled Wells Producing Inactive Other Total Horizontal Permits
Data as of 4/11/20
499 99 154 2481
3233
Wells Permitted Wells Drilling Wells Drilled Not Drilled Wells Producing Inactive Plugged Total Horizontal Permits
Source: Ohio Department of Natural Resources
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YOUR ONE STOP FOR ALL YOUR RESIDENTIAL & COMMERCIAL NEEDS! 355153 ST RT 78, LEWISVILLE ING! LIST NEW RENT! FOR
56901 SPENCER RD., CUMBERLAND ING! LIST NEW RENT! FOR
10000 sq ft (125X80) Commercial Building For Lease, to include 1120 sq ft office space with two private offices, open reception/ dispatch area, private restroom and breakroom. 8880 sq ft of shop space with public restroom and four 14X14 bay doors along with 2 acres of laydown yard. Located on St Rt 78, less than minutes from I 77, Caldwell Exit. Security deposit/ first month rent due upon signing, tenant responsible for all utilities. $9000/ MO. Call Becky Jeffery @ 740-260-2384
Great location just before Cumberland, Ohio on ST Rt 83 South. 2 nice commercial buildings, county water. Almost 5 acres, big graveled yard. Big overhead doors,50 x 70 shop has small office & kitchen. Plus a newer 35 x 50 shop, which currently is a pint shop. Neither building needs anything. Move in & start your business. FOR RENT. $3200/ Mo. Call Jerry Boyer @ 740-680-0979
5748 GLENN HIGHWAY, CAMBRIDGE ING! LIST NEW RENT! FOR
Nice office building. Has 7 private offices. Big reception area. Mens & ladies bathroom. 1 full bath & 1/2 bath. Full kitchen 24 x 40 building for storage or safety meetings. A shop 40 x 60 equipped with air compressor, big door to get trucks in & out. 1/2 bath,waste oil furnace. Big yard to hold all equipment. $4800/Mo. Call Jerry Boyer @ 740-680-0979
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CAROL GOFF & ASSOCIATES OPERATES 13 OFFICES. COVERING 15 COUNTIES IN SOUTHEASTERN & CENTRAL OHIO We are a full service Real Estate company handling both buyers and sellers of residential, commercial, farms, acreage and investment properties. We also offer auctioneering services and appraisals. CJ-10731667
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TOP COUNTIES WITH HORIZONTAL DRILLING ACTIVITY BY NUMBER OF SITES
1. Belmont County........ 689 2. Carroll County..........531 3. Harrison County........510 4. Monroe County........ 502 5. Guernsey County...... 280 6. Jefferson County.......275 7. Noble County.......... 227 8. Columbiana County...163 9. Mahoning County....... 29 10. Washington County... 21 11. Tuscarawas County.... 20 12. Portage County........ 15 Trumbull County........ 15 13. Stark County............ 12 14. Coshocton County....... 5 15. Muskingum County...... 4 16. Holmes County........... 3 17. Morgan County........... 2 Knox County.............. 2 18. Ashland County.......... 1 Astabula County......... 1 Geauga County.......... 1 Medina County........... 1 Wayne County............ 1 I VARIOUS SSTAGES: PERMITTED DRILLING, ,D WELL SITESS IN PLETED PRODUCING, PRODUCINGPLUGGED, PLUGGED DRILLED, COMPLETED, SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF D L A 4/11/20
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