Dix Communications - Gas & Oil
www.OhioGO.com
November 2012 Edition
Ohio octobER 2012 • www.ohiogo.com
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Table of Contents
◆ Making the BEST decisions ....................pg. 3 ◆ Does existing lease hold your land? ........pg. 4 ◆ Renewable Energy or Natural Gas Which Has More Potential? ....................pg. 6 ◆ Stark State awarded $13.2 million for oil and gas training ............................pg. 8 ◆ Local Airports help industry soar ..........pg. 10 ◆ Federal government over-regulates industry ..........................pg. 12 ◆ Chesapeake Energy to announce 3rd quarter results ..................................pg. 13 ◆ Coalition keeps people informed ...........pg. 14 ◆ EQT Corp. rolls out the ‘Welcome’ mat .................................pg. 16 ◆ Worker’s Comp: Are your employees covered? ..............................pg. 18
◆ “What it is, is what it is’ ........................pg. 22 ◆ Stark State College names oil and gas programs coordinator ............................pg. 23 ◆ Ground broken for Zane State campus .................................pg. 26 ◆ Money: First things first ........................pg. 28 ◆ Oil/gas jobs challenge business owners wanting hire employees .........................pg. 38 ◆ Stewart named chairman of Ohio Oil and Gas Assn. ......................pg.40 ◆ Chesapeake Energy benefit golf outing raises $60,000 ............................pg. 42 ◆ Rex Energy creates scarecrow oil rig ....pg. 44 ◆ Utica Shale Voter’s Guide Released ......pg. 45
Attributions Andrew S. Dix Co-Publisher ASDix@dixcom.com
Rob Todor Executive Editor RTodor@dixcom.com
G.C. Dix II Co-Publisher GCDixII@dixcom.com
Cathryn Stanley Regional Editor CStanley@dixcom.com
Ray Booth Executive Editor RBooth@dixcom.com
Niki Wolfe Regional Editor NWolfe@dixcom.com Ed Archibald SE Ohio Sales Cambridge, Ohio Office EArchibald@dixcom.com 740-439-3531 “Gas & Oil” is a monthly publication jointly produced by Dix Communication newspapers across Ohio. Copyright 2012.
Janice Wyatt National Major Accounts Sales Manager JWyatt@dixcom.com 330-541-9450 Peggy Murgatroyd SE Ohio Sales Barnesville and Newcomerstown, Ohio Offices PMurgatroyd@dixcom.com 740-425-1912 Barnesville 740-498-7117 Newcomerstown Jeff Kaplan NE Ohio Sales Alliance & Minerva, Ohio Office JKaplan@dixcom.com 330-821-1200 Owen Williams Layout Designer
Cover Photo: Jeff Hendershot/The Review Pictured is a drilling rig near Ohio Route 619.
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Making the BEST decisions
Martha Filipic OSU Extension
O
hio State University Extension of Guernsey County is hosting a workshop on shale energy development on Nov. 10. “Shale and You: A Workshop for Landowners and Communities” will be held at the Pritchard Laughlin Civic Center, 7033 Glenn Highway, Cambridge, from 1 p.m. to 6 p.m. Registration is $10 and must be received by Monday, Nov. 5, by the Guernsey County office of OSU Extension in Old Washington, Ohio. Registration forms with the office’s address and other details can be downloaded (PDF) at http://go.osu.edu/shaleandyouPDF or by going to http://shalegas.osu.edu and clicking on the “Shale and You” event under “Upcoming Extension Events.” “What we hope to do is help landowners and community leaders make the best decisions possible,” Peggy Hall, of the OSU Extension Agricultural Law Program, said. “We’re not attempting to discuss the pros and cons of such development -- that’s something for individuals and policy-makers to consider. As an educational institution, OSU Extension simply aims to provide relevant information to help inform those who are dealing with shale energy development.” The workshop will include presentations by OSU Extension educators on: • Update on Ohio Shale Development and Activity, by Chris Penrose, OSU Extension educator in Morgan County. • Community and Strategic Planning, by Eric Romich, OSU Extension field specialist in energy development. • Tax Issues for Communities and Landowners, by Dave Marrison, OSU Extension educator in Ashtabula and Trumbull counties. • What to Do When “Sudden Wealth Happens,” by Polly Loy, OSU Extension educator in Belmont County.
• Leasing Issues for Farms and Rural Land, by Clif Little, OSU Extension educator in Guernsey County, and Peggy Hall, OSU Extension Agricultural Law Program. • Pumping the Product: Pipeline Easements and Construction, by Mark Landefeld, OSU Extension educator in Monroe County, and Chris Zoller, OSU Extension educator in Tuscarawas County. • Natural Resource Issues: Where to Find Helpful Resources, by Steve Schumacher, OSU Extension educator in Belmont County, and Mike Lloyd, OSU Extension educator in Noble County. • A Landowner’s Point of View, featuring Schumacher and a panel of landowners who have dealt with shale development directly. The program ends with “What If Problems Arise,” featuring a panel of Extension educators and moderated by Dale Arnold of the Ohio Farm Bureau. In addition, tables with information in the lobby of the auditorium will be staffed throughout the afternoon to allow participants to get more information on issues they are specifically concerned about, Hall said. “OSU Extension has been a leader in providing educational programs to landowners and community leaders who are being confronted with what are sometimes very difficult decisions about this issue,” Hall said. “We’ve offered more than a hundred educational sessions on topics such as lease agreements and pipeline easements in the last two years and have reached more than 12,000 people. But this is the first time we’ve pulled together a program with so much of our expertise in one place. I think it will be a valuable program for anyone interested in learning more about these issues.” aglaw@osu.edu
“This is the first time we’ve pulled together a program with so much of our expertise in one place,” - Peggy Hall, OSU Extension
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Does existing lease HOlD your land?
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andowners are abuzz about leasing their land for shale production. New leases are typically paying royalties greater than the traditional 12.5%. New leases now come with up-front “bonuses” just to sign the lease. Some “bonuses” have reached as high as $5,000 per acre. But, what if there is already a lease covering your land? The Ethan Vessels leases typically in place will Marietta Attorney preserve all of the oil and gas rights to the lessee to the center of the earth. So, if there is an existing gas lease, the landowner usually cannot re-lease the same property. The question is: How long does an oil and gas lease endure? Most existing gas leases contain a habendum clause that specifies the duration of the lease. These leases have a primary term ranging from a few months to several years. This means that the lease, at a minimum, exists from the signing date until the end of the primary term. Then, most leases have a secondary term. Most state that the lease will continue “so long as oil or gas is found in paying quantities” or similar words. This means that the lease continues as long as the lessee is profitably producing the well. However, questions arise. How much is “paying quantities”? Ohio courts have not provided a firm cutoff. Courts have held that zero production is not “paying quantities.” Courts look to see if royalties have been paid to the landowner. Even small royalties are often sufficient to establish “paying quantities.” But….royalty means royalty. Some shallow producers are
sending out small checks claiming to be royalties, but they are nothing but small checks. A true royalty should verifiably be correlated to the production from the property. Random small checks, unrelated to actual production, are not royalties. Gaps in production? If production declines or stops, the operator has an obligation to restore production. The oft-quoted saying is that “the law abhors a forfeiture.” So, courts will not fault an operator for stopping production for several months to get the well producing again. Several years is another matter. What can the landowner do to cancel an unproductive lease? The first method is the statutory forfeiture. Under Ohio law, the landowner can send a notice via certified mail to the lessee declaring that the lease is void. If the lessee fails to respond, and after thirty days from receipt, but before sixty days, the landowner can then file an “Affidavit of Forfeiture” with the county recorder’s office. This notifies all potential lessees that the land is free of the lease that previously held the property. Usually, however, the lessee responds. By statute, the lessee can file an “Affidavit of Production” or “Affidavit of Non-forfeiture” with the recorder’s office. This nullifies the landowner’s attempt to cancel the lease. The only remaining option is to file a lawsuit. The landowner sues the operator/producer. The landowner asks the court to declare that the lease is expired because gas or oil is not being produced in paying quantities. Ultimately, the court will conduct a trial to decide whether the production satisfies the terms of the lease. If the court sides with the landowner, the Court will issue an order directing the county recorder to cancel the lease. If the court sides with the operator, the lease remains in effect. Is all of this worth it? Ten years ago, probably not. Today? Yes, it is. As a landowner, you may be wrongfully
“Is all of this worth it? Ten years ago, probably not. Today? Yes, it is.” - Ethan Vessels
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Renewable Energy or Natural Gas
Which Has More Potential?
A
sizeable portion of the 2009-2010 economic stimulus went toward development of renewable energy. There is no shortage of spin promoting renewable energy as the perfect solution that can eliminate the country’s dependency on imported oil. But an objective look at the facts proves that this is not a realistic expectation anytime in the Norm Shade foreseeable future. Capturing President, and using renewable energy ACI Services requires major investments in capital equipment and infrastructure. 2010 figures from the U.S. Department of Energy (DOE) show that 37% of the country’s energy came from oil, most of it (80%) imported. Natural gas provided 25%, growing from 21% in 2008. Coal’s share fell to 21%, due to stiffer environmental restrictions. Nuclear made up 9%, and renewable energy sources accounted for just 8% of total energy needs. Renewables would have to increase to five times 2010 levels in order to eliminate oil imports. The 8% renewable contribution is made up of 3% from hydroelectric, 4% from wood and biomass (including ethanol), slightly less than 1% from wind, and less than 0.1% from solar. Most of the hydroelectric projects were completed decades ago. Building more dams and flooding more land are unpopular and therefore limit hydroelectric growth potential. Biofuels use waste and plant matter. Raw materials, such as corn for ethanol, compete with food production, driving up prices and making this an unlikely growth source either. Wind and solar, which together provide about 1% of U.S. energy, have potential, but expectations must be realistic. The equipment required for capturing solar energy is very expensive and solar energy is only produced when the sun shines, not necessarily when energy demand is highest. Cloudy days limit its potential and it’s not useful for transportation fuel, which is
the largest energy need. Winds are also unpredictable – sometimes weak, sometimes too strong – only productive about 30% of the time. Energy storage technology is inefficient and currently limited. Wind and solar contributions are so small that government advocacy over the past several years has hardly made a dent toward reducing oil imports. Looking ahead, DOE’s projections show that renewable energy, in all forms, will grow to only 15% of the country’s needs by 2035, even factoring in a forecast reduction in overall energy demand due to efficiency gains and reduced manufacturing. Fortunately, there is more time for development of technology to increase the amount, reliability and cost-effectiveness of renewable energy. The reason is that domestic natural gas resources are abundant due to shale, where technological advances are spurring development. High reserves per well make shale gas deliverability respond quickly to development activity, growing to 32% of all gas production by the end of 2011. Bountiful supplies and low prices have increased the use of natural gas by electric utilities, switching from coal to meet tightening EPA air quality regulations. Increasingly too, gas is catching on as a low cost fuel for vehicles. DOE estimates domestic natural gas reserves of 284 trillion cubic feet (TCF), but gas industry experts think that total developable U.S. reserves will reach 1,200 to 2,100 TCF as technology increases. That is 50 to as many as 90 years of supply. Regionally, the U.S. Geological Survey’s (USGS) first estimate of Utica Shale reserves pegs them at 38 TCF of recoverable natural gas, 940 million barrels of oil and 9 million barrels of natural gas liquids like ethane and propane. The Utica lies beneath the Marcellus Shale, which is viewed as one of the richest natural gas reserves in the world. USGS estimates tend to be highly variable and subject to revision. For example, USGS last year estimated that the eight-state Marcellus play contains some 84 TCF of undiscovered, recoverable gas, far more than its 2002 estimate of just 2 TCF. Drilling has really just begun in the Utica, and it is likely that its reserves will also increase as more wells demonstrate high production rates.
“There is no shortage of spin promoting renewable energy ... but an objective look at the facts proves that this is not a realistic expectation anytime in the foreseeable future.” - Norm Shade
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Imaging Ohio’s Subsurface
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Stark State awarded $13.2 million for oil and gas training
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tark State College has been awarded $3.26 million in grants from the Department of Labor and The Timken Foundation to fund oil and gas-related labs and equipment at the Energy Innovation Center of its new Downtown Canton Satellite Center, scheduled for completion in 2015. The funds to construct the EIC, being built in downtown Laurie Huffman Dix Communications Canton, were received in early 2011 through a $10 million grant from the State of Ohio. The Canton Satellite Center will become the headquarters for the college’s training in the oil and gas industry. The $2.76 million from DOL and $500,000 from The Timken Foundation will fund education training systems for associate degree and certificate programs related to the growing oil and gas industry. It will also cover costs to create and supply training labs for oil and gas instrumentation and electronics, geographic information systems, geology, drilling, production, and welding. In addition, the money will be used for development of ShaleNET-US and Lease Operator labs, which will
Submitted Photo Fall 2011 Certificate Ceremony at Stark State College, in North Canton. include mock-ups and supplies for well head, tank battery, pump jack, natural gas compression and production/well site training. “These generous awards position Stark State College to become a national model for curriculum development in the shale oil and gas industry,” said Para M. Jones, Ph.D., president of Stark State College. “Employers need well-trained, credenContinued on pg. 34
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Cambridge Airport runway extension project necessary for projected increased traffic
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he influx of gas and oil industry personnel descending on southeastern Ohio has had a dramatic effect on the Cambridge Municipal Airport. Sales for jet fuel has more than doubled from the same time period last year and operations (businessrelated for take off and landing) has increased about 40 percent. Judie Perkowski “This year’s increase in fuel Dix Communications sales were primarily due to corporate jets and helicopters used by representatives of the oil and gas industry,” said Terry Losego, airport manager. “General aviation fuel sales are also up from last year, from 8,800 gallons to 9,649.” All figures reflect sales from Jan. 31 to Sept. 30 in 2011 and for the same time period in 2012. “Compared to several other airports, we are doing OK,” he said, “but we could do so much better for our customers and
CAMBRIDGE, OHIO
our community.” The airport was open to the public in 1968 and has undergone several improvements throughout the years, but nothing compares to the $3.5 million runway expansion project through a capital improvement program, which began this year, and with completion tentatively scheduled for 2017. The hefty price tag includes a 5 to 10 percent local match of the cost, $84,000 for a project study, a $300,000 environmental study, in addition to other considerations of historical significance. The airport has a current runway of 4,300 feet with plans for expansion to 5,000 feet. “Additionally, the current truck and equipment is outdated. The truck used to dispense fuel to planes needs to be replaced — it’s the original truck bought in 1968. It works for small planes, but is not adequate for larger jets. We also need equipment to tow planes that weigh more than 13,000 pounds to a staging area, a larger hangar and an auxiliary power unit (generator) would be nice. None of this is cheap,” he said. “But, for all this to happen, things have to fall in place. “To receive any grant money you must have a certain number of operations per year (500) that use the airport. And you Continued on pg. 11
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Garrett Knott/The Daily Jeffersonian/www.buyjeffphotos.com Joe Barber, l, pilot for the Ohio Department of Natural Resources, and Terry Losego, manager of the Cambridge Municipal Airport, pose in front of a Bell Jet Ranger III helicopter that landed at the airport recently. “airport” from pg. 10 have to have 250 planes that need additional runway.” According to website information, the airport accommodates approximately 3,500 to 4,000 flights per year. There are tie downs for 13 aircraft, 10-T hangers and one community hangar, in addition to Unicom communication and automated weather operating service. The weather is a pivotal consideration. The ideal temperature for take off and landing is 59 degrees with a barometric pressure of 29.2. Higher temperatures and pressure require a longer runway. The average temperature in Cambridge for June, July and August of 2012, was 87 degrees. The oil and gas industry is a 24-7-365 business. Funding for the airport’s operating expenses comes from the City of Cambridge, the county, a small amount from the Village of Byesville and Jackson Township, and from fuels sales and hangar fees.
“The oil and gas industry has created a new enthusiasm in the community and with the Airport Authority Board. All airports in Ohio are governed by the Airport Authority Board under the Ohio Revised Code. “For once, Guernsey County and the entire area is in the spotlight,” said Losego. “They [oil and gas people] have brightened the place. We would like to be able to honor our guests’ requests.” One request came to fruition — a pilot’s lounge. A place where pilots can relax while their customers are conducting business in town. The new addition to the airport office was paid for by private donations. “Not one dollar of taxpayer money was used for the lounge. Everything was donated: the entire construction, the electrical and plumbing, to the recliners and the television,” said Losego. “I just hope the city and county can meet the demands of the oil and gas industry. I hope everyone realizes the importance Continued on pg. 32
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Federal government over-regulAtes industry Ohio is at the center of a very transformative revolution. Our newly accessible oil and natural gas resources have the potential to revitalize our economy and rejuvenate a once-struggling manufacturing sector. While the State of Ohio encourages energy development, outside of Ohio many energy projects have been blocked or delayed Rep. John Adams by stifling over-regulation from Washington. Majority Whip Energy development and infrastructure projects across the country increasingly face significant delays, regulatory hurdles, and litigation by opposition groups. Two recent examples of delayed projects – the Keystone XL pipeline and Shell’s plans for drilling off Alaska – should remind Ohio that, now more than ever, we must demand a balanced U.S. energy policy predicated on sound, efficient regulation. Both Keystone XL and Shell’s Alaska venture illustrate the truly mind-boggling labyrinth of regulatory delays that energy producers must endure nowadays. For TransCanada,
C
the company proposing to build the Alberta-to-Texas oil pipeline, delays and a mandated route-change through Nebraska have added more than a billion dollars to the cost of the project, suspended tens of thousands of high-paying jobs, and delayed the investment of more than $20 billion into the U.S. economy.
“We must remain vigilant to protect our rights to develop our resources.” - Rep. John Adams Similarly, Shell has invested over $4 billion to explore its leases in the Chukchi and Beaufort Seas north of Alaska. After five years of planning, the company has yet to complete a single well due to ongoing regulatory delays. Recently, the Obama Administration glibly stated that ongoing delays were simply Shell’s fault. In response, Alaska Governor Parnell sent a letter to Congressional leaders refuting the comment and outlining the “pattern of federal obstruction designed to prevent Continued on pg. 40
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3 ThingS
You must be willing to do to get an oil/gas job Working in the oil and gas industry is not necessarily for everyone. First, employees must pass a drug test. That may seem like a nobrainer, but industry representatives report that is the number one requirement for a job in the oil and gas industry. Rhonda Reda, executive director of the Ohio Oil and Gas Kimberly Lewis Energy Education Program, Dix Communications listed passing a drug test as the number one requirement for industry employees and the hardest. “People not passing the drug tests is a huge problem,” she said. “There is a lot of liability in the oil and gas industry. Employees have to at their best.”
Applicants “cannot pass the drug tests,” Carroll County Economic Development Director Glenn Enslen told the Carroll County Chamber of Commerce members recently. “That is the biggest problem I hear from the oil and gas businesses.” Some of the other requirements are not for the faint of heart. Secondly, Reda pointed out applicants must be willing to work in all types of weather. “These wells work 365 days a year,” she explained. The workers must be willing to work in the snow, rain and heat, sometimes when the weather is the most harsh. And third, applicants must also be willing to work long days. In Carroll County, those working on a well site may work a 12hour shift for two weeks straight. Enslen noted employers have told him applicants “do not want to work nights or weekends,” something required to work on the well sites. The OOGEEP lists other job requirements for employee to have a safe driving record; are physically fit; able to safely operate, maintain and perform minor repairs on equipment; and work as a team.
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Chesapeake Energy
to announce third quarter financial results Nov. 1 Laurie Huffman Dix Communications
Certain vendors and those who have lease agreements penned with Chesapeake Energy became a little nervous when the company announced in September it was selling the vast majority of its Permian properties, substantially all of its midstream assets, and certain noncore leaseholds for total net cash proceeds of approximately $6.9 billion. The company stated it needed to use a portion of the proceeds to fully repay its $4.0 billion of term loans during the 2012 fourth quarter. And, according to spokespersons at the company’s headquarters in Canton, the problem was based solely on the fact the company was in a pre-production leasing phase that would be corrected once the wells begin to be drilled in larger quantities and the product begins to be removed and put on the market. A pulse check will soon be publicly available as on Oct. 9, Chesapeake Energy Corporation scheduled its 2012 third quarter operational update and financial results to be released after the close of trading on the New York Stock Exchange on Nov. 1. The company also scheduled a conference call to discuss the release for 9 a.m. on Nov. 2, EDT. The telephone number to access the conference call is 913-312-0381 or toll-free 888778-8907. The passcode for the call is 8299445. Those who
would like to participate in the call are encouraged to place calls between 8:50 and 9 a.m., EDT. For those unable to participate in the conference call, a replay will be available for audio playback at 1 p.m., EDT on Nov. 2, which will run through midnight on Nov. 16,. The number to access the conference call replay is 719-457-0820 or toll-free 888-203-1112. The passcode for the replay is 8299445. The conference call will also be webcast live on Chesapeake’s website at www.chk.com in the “Events” subsection of the “Investors” section of the company’s website. The webcast of the conference will be available on the company’s website for one year.
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eQt Corp. rolls out the ‘Welcome’ mat Judie Perkowski Dix Communications
CAMBRIDGE — Several hundred people from the area accepted an invitation to “meet and greet” personnel of the latest gas and oil company that is getting ready to makes its presence known in Guernsey County. EQT, a major player in the Applachian Basin and one of the country’s largest natural gas producers, rolled out the welcome mat at the Deerassic Park Education Center in Cambridge Sunday, Sept. 30,, and gave visitors a chance to get an up-close look at some of the equipment the company uses for its construction and drilling activity. The kids had fun climbing into the bucket of the gigantic backhoe. (Which was immobile, of course.) “We want to introduce ourselves to the community. This is our first time in Guernsey County and we are very excited to be here,” said Steve Schlotterbeck, president of EQT’s exploration and production division. “We want to get our message out. We would like to become part of the community. “EQT, formerly known as Equitable Resources, was in Ohio years ago in the Lordstown area. EQT is just our call letters. Our focus is natural gas ... the discovery of the Utica shale presents us with a perfect opportunity to return to the area.” Schlotterbeck said EQT “is just getting started” in Spencer Township where the excavation phase is underway. “We are planning on drilling two test wells. We have a permit for one well and a second permit is forthcoming. We will
Submitted Photo EQT Corporation personnel welcomed visitors to EQT’s Sunday afternoon open house in Cambridge. From l to r: Ellen Donley, director of community relations, Steve Schlotterbeck, president of exploration and production; Sam Storey, strategic sourcing manager; and Natalie Cox, director of corporation communications. begin drilling by the end of October and hope to have production results next year. As most people in this area probably know, drilling a well is a tedious and long process. But, we are optimistic,” he said. Although striking gas and oil can be extremely lucrative, the average cost for drilling one well is $8 to $10 million. EQT has been in business for more than 120 years and has 1,800 employees throughout the company. For more information, visit www.EQT.com.
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This workforce solution was funded by a grant awarded under the President’s Community-Based Job Training Grants as implemented by the U.S. Department of Labor’s Employment and Training Administration. The solution was created by the grantee and does not necessarily reflect the official position of the U.S. Department of Labor. The Department of Labor makes no guarantees, warranties, or assurances of any kind, express or implied, with respect to such information, including any information on linked sites and including, but not limited to, accuracy of the information or its completeness, timeliness, usefulness, adequacy, continued availability, or ownership. This solution is copyrighted by the institution that created it. Internal use by an organization and/or personal use by an individual for non-commercial purposes is permissible. All other uses require the prior authorization of the copyright owner. 10081803
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November 2012 Edition
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Providing Solutions to the Oil & Gas Industry Through High Quality Machining, Fabrication and Prototyping
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Gas & Oil
November 2012 Edition - Dix Communications
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Worker’s Comp:
T
Are your employees covered?
he development of Ohio’s shale by the gas and oil industry is attracting employers to the state from around the country. With this is mind, the Ohio Bureau of Workers’ Compensation is conducting outreach efforts to employers who are setting up operations in Ohio, as well as those who will have employees working temporarily in the state. “The BWC is engaging the industry to increase awareness on certain requirements, programs and services we offer while ensuring they have the appropriate coverage,” said Scott St. Clair, BWC regional business consultant in Cambridge. “Given the significant growth in gas and oil in recent years, we believe there are both a large contingent of employers in the industry and in numerous ancillary occupations and services used to sustain the industry that could benefit from our services. “While most businesses strive to understand the regulatory responsibilities regarding their industry, many may not realize the same with respect to Ohio’s workers’ compensation requirements, especially if they are operating out of state. There are issues we would like to make them aware of, including interstate jurisdiction, segregation of payroll, payroll reporting and the construction payroll cap, 1099s (and sub-contractors) and our various discount rating programs and safety services,” said St. Clair. Ohio is a monopolistic workers’ compensation system which does not allow private insurers to underwrite workers’ compensation policies for employers doing business in the state. Because of this, there are key coverage requirements that differ from the private coverage most gas and oil companies use. Some employers assume an all-states endorsement exempts their company from obtaining Ohio workers’ compensation coverage for employees who work temporarily in the state, however, Ohio Revised Code 4123.54, says the assumption is only partially true. More specifically, Ohio extends an exemption to employers from another state for their employees working temporarily in Ohio if the exemption is reciprocal — the other state extends an exemption for Ohio employees working temporarily in their state. It is important to ensure your company has the proper coverage for workers before you begin operations in Ohio. “The BWC wants to play a helpful role with respect to economic development and we want this outreach to make a positive difference. Our goal is to make sure workers are safe at work while helping their employers to pay as little in workers’ compensation premiums as possible. Further, we want to minimize any confusion and affirm our service and assistance at any level,” said St. Clair. “Given the scale of businesses involved, we believe a comprehensive outreach to this employer base is important.” The Bureau’s website has been updated with a page specifically for the oil and gas industry. The following link will take you directly to the page at www.ohiobwc.com:
https://www.ohiobwc.com/employer/brochureware/OilandGasIndustry.asp The link is also on the home page with a banner. There is helpful information with specific contact information for each of the business consultants in the Oil and Gas region. For questions or concerns about Ohio Workers’ Compensation coverage requirements, contact a business consultant in one of the BWC customer service offices listed below. Cambridge: Scott St. Clair, (740) 435-4251 or cell, (614) 357-9498; Canton: Lorrie Goodnight, (330) 471-0950; Columbus, Brian Jackson, (614) 728-8336, or cell (614) 359-3160; Cleveland (Garfield Heights): Kathy Fischer, (216) 584-0307 or cell (614) 357-7043 or Tom Gallagher, (216) 584-0275 or cell (216) 618-4048; Youngstown: Christine Williams, (330) 797-5038 or cell (614) 359-5400. Visit the Ohio bureau of Workers’ Compensation website at www.ohiobwc.com.
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November 2012 Edition
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Our Services include: • Water Transfer • Oil Field Services • Pads & Pipe Lines • Excavation Services • Welding Services • Trucking & Hauling (Any Size/Load) • Crew/Staffing Services • Fuse HDPE Poly Pipe (Multiple Certified Poly Fusion Crews)
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“lease” from pg. 4 barred from reaping the benefits of the new leases — simply because the existing lessee claims “production.” It is worth checking. Disclaimer. As with all articles on legal issues, this article is intended for educational and informational purposes. The reader should not rely on this article as a substitute for actual legal advice regarding his or her particular case. You should consult an attorney regarding the specifics of your situation.
10053823
Ethan Vessels is an attorney in Marietta, Ohio with the firm of Fields, Dehmlow & Vessels, LLC. His firm is actively representing landowners throughout East and Southeast Ohio regarding oil & gas lease forfeiture actions, as well as royalty disputes and other oil & gas matters. Visit www.fieldsdehmlow.com for more information.
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November 2012 Edition
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Since 1967, Copeland Oaks has been a community for active adults aged 55 and over seeking an engaging, vibrant place to call home
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At your location or ours, we’ve got you covered. AultWorks Occupational Medicine specializes in treating work-related injuries and illnesses. We are certified by the Ohio Bureau of Workers’ Compensation. Our services include: • Injury Care • 24-Hour Drug and Alcohol Screenings • DOT and FAA Physicals • Pre-placement Physicals • Random Management Programs • Mobile Medical Unit • Travel Medicine Program... and more! www.aultman.org Canton 330-491-9675
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“What it is, is what it is...’
I
had the smartest attorney in America in my office recently. He said when he graduated from law school he realized he wasn’t the brightest bulb in the bunch when it came to all things related to the law, but he was real good at estate planning and money planning so he has excelled in that field. That practice has blossomed now that the oil and gas boom Don Gadd has made some Jed Clampetts Landman out there they have begun the wise trip to town to discuss what they should do with all this new found wealth before they fritter it all away.
“... like the (clause) where a guy wanted lowered down in the well on a wire line to personally inspect the formation.” - Don Gadd This led attorney 3 (as I will call him to keep a flood of people rushing to his office) into discussing with other clients the leasing prospects and resulting money there from, landowner groups, representation and ultimately getting the right lease negotiated. (Now here comes why I respect this man and think a lot of him). He said he was astonished at the leases being offered. Who could possibly understand all the verbiage on 18 to 22 pages?
MAST TIRE
Anyone who claimed to know it all couldn’t possibly. The best someone could do for you is try to get a handle on it the best they could, negotiate with some integrity and hope the people you are dealing with live up to their part of the deal. No one has become an expert on this in the last five years or so since these leases started appeared in the eastern part of the U.S. Wow! An honest man, and an attorney to boot. Not that I am putting attorneys down, as one of my closest friend is an attorney and he has kept me out of dutch several times during my governmental career. But, this guy has hit a home run with his take on what is happening and his struggle to comprehend the legal contract being used to bind everything together. And make no mistake; the lease is simply that, a legal contract. It is bound and governed by the laws we have established to govern dealings in between people, corporations and even governments. It has no magical ph and should not be treated any different than any other agreement. It has articles and clauses common to this industry like other industries would have. The idea and practice of “what a prudent operator would do” has been held in many courts. So, reading your “contract” and seeing an smart guy to invest your future earnings like the attorney in my office will go a long way in determining your happiness with the contract you are about to sign. I am nearing my 40th year in this business and the first thing I say to a prospective lessor is to take it toLaboratory your attorney, I will be glad to Water Analysis Services meet with him orAnalytical her. But,Support don’t think that everything you want will be in the agreement. Negotiations are to conclude with a “contract” good for both parties. Over the years, I have savedSelect-O-Sep different leases and clauses I have run into that either enlightened me or amused me like the one where guy wanted lowered down in the well on a wire line to personally inspectwww.selectosep.com the formation (True). Some of the current that are thick as Bibles are going to make that crgilpin@selectosep.com Please O Boxcontracts 158 740-994-4290 77520 Freeport-Tipp library along withRd some of the scrupulous comments made at 740-658-3912 Freeport, OH 43973 meetings by those practicing that are not as smart or perhaps as We have office space available for rent honest as this guy. What it is, is what it is, and it’s only as good as the person on either end of the contract.
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crgilpin@selectosep.com 740-994-4290 740-658-3912 We have office space available for rent 10079426
Dix Communications - Gas & Oil
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November 2012 Edition
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stark state College names oil and gas programs coordinator
S
tark State College has named petroleum engineer S. Kathleen Steere to the position of coordinator of its oil and gas programs to address the educational and partnership needs of the emerging industry. In the newly-created post, Steere will lead the College’s recently-formed Oil and Gas Advisory Committee and will spearhead the development of new oil and gas curriculum. She will assist with plans for Stark State’s newly-announced $10 million Downtown Campus/Energy Center, which will serve the education and training needs of the oil and gas industry and serve students in Stark and surrounding counties. Steere also will be the College’s liaison with local and national oil and gas programs while developing partnerships within the industry and other higher education institutions. Steere is transitioning to the new position from working as a chemistry lab technician at the college for the past seven years, where she also has presented fuel cell seminars to area educators. She worked as a geologic consultant to the Belden and Blake Corporation, as a petroleum engineering consultant, in Illinois, and a geologist in both Ohio and Texas. Steere also was an instructor at Frontier Community College, in Illinois. She received Bachelor’s Degrees in petroleum engineering and petroleum geology from Marietta College. Her professional memberships include the American Association of Petroleum Geologists, the National Associate of Scientific Materials Managers, and the Mid America Paleontology Society.
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November 2012 Edition - Dix Communications
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ground broken for Zane State campus
A
John Lowe Dix Communications
host of dignitaries, including Gov. John Kasich, braved a downpour to celebrate a first in the history of modern Guernsey County — the groundbreaking for a facility that will give the county a degree-granting institution. About a dozen of those dignitaries tossed shovelfuls of sand to symbolize the start of construction of the Cambridge Education and Training Center
of Zane State College. The additional facility, which will be on the north side of Brick Church Road across from what is now the Willett-Pratt Training Center, will boast an area of 37,000 square feet. The Cambridge facility will house the College’s energy programs among others. The facility will live its philosophy of energy efficiency and training. For example, it will utilize geo-thermal heating and cooling. Also, a dual axis windmill will be installed to generate electricity as part of Zane State’s alternative energy program. “We must become energy independent,” State Rep. Brian Continued on pg. 30
“If you think creatively and you have vision, there isn’t any question you can have great success.” - Ohio Gov. John Kasich
Michael Neilson/Dix Communications Some of the dignataries taking part in the groundbreaking Thursday for the Zane State College Cambridge Education and Training Center.
You know the difference between a financial advisor and a salesman. So do we. When it comes to your investments, you need solid guidance. But how can you be sure your financial advisor isn’t thinking about a commission instead of your future? The key is to find a professional
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Money: First things first
S
o, you received a sizable amount of cash from your gas & oil lease. What now? Many consider buying things that they want (maybe not need) such as “toys.” However, you must take care of other things first, and then, perhaps, the toys can be purchased. 1) taXes The first thing that one J. Daniel Cox should be prepared for is TAXFinancial Planner ES on bonus lease money. We live in a “progressive” tax system. This means the higher the amount of bonus, the higher the amount and percentage of taxation. This bonus money is typically taxed as ordinary income at the Federal and State levels. We help clients calculate the amount that they will pay by April 15 following the year which the bonus is paid. 2) personal DeBt - pay off (maybe) In most cases we advise paying off most, if not all, of the client’s personal (non-business) debt. We can demonstrate why this is true even though one can no longer write off interest
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payments. The key is you will no longer have ANY payments to your bank or other creditors. 3) accelerated Depreciation (tax write offs) > farming/ business operations It may make sense to invest in buildings and/or equipment. This is typically true if the client is still in farming operations. Qualified purchases would qualify for IRS deductions of depreciation immediately under IRC section 179. 4) retirement plaNNiNG Do you have a PLAN for your retirement? If not, it’s time to get busy. Meeting with a qualified Financial Planner is the first step to establish goals, review assets and then to create a game plan. The key is implementation over time with periodic reviews with your Advisor to make sure you stay on track. This plan also will also consider Estate planning needs, who do you want to inherit what, when and how. How do you avoid and/ or plan for Federal Estate taxes upon your passing? Are there gifting strategies which you should consider? 5) investments Annuity investments - these offer tax deferral. This means that you do not pay taxes on any gains within the annuities until you begin to take distributions. This is a buy and hold strategy which may be appropriate as one of many “buckets” within
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Continued on pg. 38
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Point Restaurant
WE OFFER GREAT LUNCH ITEMS AS WELL AS SPECIALS DAILY
MONDAY:
TUESDAY:
ALL-U-CAN-EAT SIRLOIN TIPS ONLY $9.95!!! 4 til 9
THE BEST DEAL IN GUERNSEY COUNTY FOR A STEAK
2-FOR-1 STEAK NIGHT Yes you read it right TWO STEAK DINNERS for ONLY ONE PRICE!!! All our steaks are fresh cut daily and prepared on an open flame grill mmmmmm.
wEDNESDAY:
THURSDAY:
wACKY wEDNESDAYS AT THE POINT
.50 JUMBO!!!! wINGS (7 homemade sauces to choose from) .70 TAKEOUT 1.00 FF BASKETS 1.00 BEERS any of our beers to choose from 5 til 9
ENJOY ONE OF OUR DIFFERENT LUNCH AND DINNER SPECIALS EACH MONTH wITH BEVERAGE SPECIALS AS wELL
FRIDAY-SATURDAY:
BBQ & BUCKET BEER
10063104
If you are looking for food delivered right to the job sights call to have one of our full menu faxed. We offer delivery at no charge with a minimum of 25.00 order. The Point offers mobile food units, as well, that will come to any site or large event that your company may be having and cater any type of lunch or dinner. Call us at 740-439-9045 or just stop in and visit us at The Point where we welcome all the oil workers into our area. Thanks so much for your business. Hope to see you soon. Annie and the Crew!!!!
FULL MENU AVAILABLE
10082096
(330) 364-2688
29
Authorized Full Servicing Dealer Briggs & Stratton, Tecumseh, Kohler, Kawasaki, Honda
CELEBRATE NEW YEARS EVE WITH US AT THE TIKI LOUNGE INSIDE SOUTHGATE HOTEL
WRANGLER FR
November 2012 Edition
740-435-9437 151 HIGHLAND AVE., CAMBRIDGE
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November 2012 Edition - Dix Communications
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“zaNe state” from pg. 26 Hill said. “We have an opportunity to do that and Zane State is here to help us train that workforce of the future.” The college’s capital improvements here will be paralleled by a similar improvements at the main campus in Zanesville where an Advanced Science and Technology Center will be constructed. Cambridge Mayor Tom Orr was ecstatic about Zane State’s expansion in the county. “There’s an energy, people,” he said. “Can you feel it? This is an awesome opportunity.” While the new addition will enhance educational opportunities for residents of the county, the county has much to give back, Orr suggested. “We’ve got a lot of things to offer that no one else in the state has,” he said, alluding, among other things, to gas and oil resources in the Utica shale deposits. Norm Blanchard said the county has much about which to be proud. Blanchard is executive director of both the CambridgeGuernsey County Community Improvement Corporation and the Port Authority. “I take double pride with what we’ve done here in Cambridge,” he said. “With half of the population and probably less than half the industry, we’ve raised nearly enough to match what Zanesville did.” State Rep. Andy Thompson said that, as in so many things, Zane State was “front and center” when he guided a corps of economic development professionals through four of the counties he represents. “Right now, we have a palpable sense of enthusiasm about what is going on with oil and gas,” Thompson said. “Zane State is making it possible to maximize that opportunity.” Although Gov. Kasich believes that the process of tapping the Utica shale oil should be pursued, he doesn’t see it as a panacea for all of the region’s woes. “I don’t believe in putting all of our eggs in one basket,” he said. Instead, he believes in diversification and, for that reason, was pleased to learn of Zane State’s emphasis on a STEMM approach — that is, an emphasis on science, technology, engineering, mathematics and medicine. He also praised the college’s pragmatic, yet visionary, approach to teaching skills that industries and businesses need. “If you think creatively and you have vision, there isn’t any question you can have great success,” he said. The state’s support of Zane State’s improvements came about because Kasich’s belief that institutions of higher learning have to cooperate and view themselves as part of a team in which they don’t contend all of the time for their own “pieces of the (funding) pie.” “What we have to do in an era of limited resources is ask, Where is the need and where can we leverage what we have to bring about good things?” jlowe@daily-jeff.com
Pumps • Cylinders • Hose Assemblies Fabrication • Testing & Diagnosis Supplies • We Make Hoses While You Wait
960 N Wooster Ave, Strasburg, OH
330-878-4101
10070238
Our Sights are Set on your Water
Water Sampling
3rd Party Sampling for Oil, Gas Drilling, Mining & Residential Call for Pricing Tom Wickersham • Ohio EPA Certified Operator 330-205-7810 • wick1352@yahooo.com 10077959
35 Years experience in the Oil & Gas Industry
Premium Diesel • Gasoline • Motor Oil and Lubricants Drivers have OSHA 10 and SafeLand USA safety training
interested in getting your message out to
the gas & oil industry?
CONTACT OUR DISPLAY ADVERTISING DEPARTMENT 740-439-3531 FOR MORE DETAILS
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November 2012 Edition - Dix Communications
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“airport” from pg. 11
Garrett Knott/Dix Communications Terry Losego of the Cambridge Municipal Airport next to a gas truck with the gaz nozzle used for refueling.
Wireline Wire•line noun : A slender, rodlike or threadlike piece of metal usually small in diameter, that is used for lowering special tools (such as logging sondes, perforating guns, and so forth) into the well. Also called slick line.
10070230
of the infrastructure the oil and gas people need to do their business.” “If we are going to grow, the airport if critical,” he said. “We are competing with our neighbors ... There are hundreds of airports in Ohio competing for grant money. We need legislative intervention. We need all entities working together for a common goal.” ••••••••••••••••••• Abbreviated projected schedule for the Runway Expansion Project. Losego said the airport would be closed for about six weeks during the construction period. FY2012 — Prepare plans and specifications for Runway 4-22, which includes bidding phase of project. FY2013 — Runway 4-22 rehabilitation. FY2014 — Runway 4-22 vertical-guided GPS approach and airport obstruction chart study, which includes data collection of aerial photogrammetry, engineering, ground control topographic survey and object identification for vertical-guided GPS approach analysis. FY 2015 — Prepare Runway 4-22 runway safety area compliance/runway extension and cost benefit analysis (Phase I) for stream relocation and runway extension to meet the demand of traffic at the airport. And may include compliance of environmental impact related to runway extension. FY2016 — Continuation of study which began in 2015 (Phase I). State apportionment or discretionary Federal Aviation Agency funding is anticipated for this project. Phase II consists of final environmental review process, approval and permitting. Prepare plans and statistics for Runway 4-22 rehabilitation, extension, medium intensity runway lights replacement, installation, runway safety area compliance and taxiway. Plans/statistics include bidding phase of project. FY2017 — Runway 4-22 rehabilitation, extension MIRL replacement, RSA compliance construction. (Construction cost is $3.3 million-plus) FY 2018 — Taxiway to Runway 4 end construction ($750,000). FY2019 — Update Aviation Leadership Plans to reflect current conditions, and as per findings/recommendations of the RSA compliance environmental process (ALP cost is $50,000). FY2020 — Wildlife security fencing assessment Phase I ($50,000). FY2021 — Wildlife security fencing Phase I construction (Cost is $125,000 and $25,000 for construction management). ••••••••••••••••••••• Counties in the GAS&OIL magazine distribution areas that have functioning airports: Guernsey, Belmont, Noble, Muskingum, Coshocton, Monroe, Tuscarawas, Washington, Monroe, Columbiana, Portage, Stark, Carroll, Mahoning and Harrison.
ETHAN VESSELS LIFE MEMBER MILLION DOLLAR ADVOCATES FORUM
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330-823-9033
“Like” Us
“When It Is Just Too Important To Trust Anybody Else”
Checking Facts. Busting Myths
Downtown on the Square
www.eidohio.org A JOINT EFFORT OF OOGA | OOGEEP | IPAA
Phone
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108 East High Avenue, New Philadelphia, Ohio 44663
(330) 343-7161 houseofstones.com
10063099
TRUST MATTERS. Especially When It’s Your Money. Have you ever wondered who your financial consultant really works for? I work strictly for you. I work hard to build a relationship of trust by providing thoughtful, unbiased guidance and placing your interests first. Invest with a knowledgeable financial consultant who’s on your side; someone who truly cares whether your investments are right for you. Call today for more information or to schedule a consultation.
Heritage Financial & Investment Services, LLC. Financial & Estate Planning/Investment & Insurance Services
Nikki V. Baker-Lude, CFP®, ChFC® LPL Financial Advisor 117 N. Main Street, Suite 22 Woodsfield, OH 43793 Office: 740-472-9161 nikki.lude@lpl.com www.lpl.com/heritagefinancial Securities and Financial Planning offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC
10077565
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Gas & Oil
STRAIGHT TALK STRAIGHT
November 2012 Edition - Dix Communications
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“stark” from pg. 8
tialed workers to fill a wide range of jobs. In conjunction with industry leaders such as Chesapeake, EnverVest, Marathon, ShaleNET-US, The Timken Company, Dominion and others, Stark State is addressing the need for highly-skilled workers pursuing gainful employment in Ohio’s expanding oil and gas industry.” Jones also reported it is “very exciting” for Stark State to play such a critical role in workforce development for Ohio’s oil and gas industry and promote economic development in northeast Ohio. The college’s industry-approved credentialing, credit-based stackable certificates and degrees will prepare adults for various stages of employment and will allow them You lease your land. The drillers drill. to progress to develop new skills for advanced employment. The energy comes up. The checks come in. “These DOL awards are highly competitive, and the funds will Then what? benefit our local economy through a better-trained workforce ready to work for oil and gas companies,” Jones added. ou’ve got a lot of things you can do with the money; like pay off equipment and Participation in Career Enhancement programs allows stumachinery, vacation in Hawaii, get the motor home you’ve always dreamed about. dents to broaden and develop new work skills, certify profiAll well and good. But, these are short term goals. ou’ve got lotleasing ofwith things you can with the ciencies, and earn college credit toward a degree.Courses are ou’ve got Newly wealth your for drilling rights quickly a lotacquired of things youafrom can do theland money; likedo pay offcanequipment disappear if money, you don’t carefully consider your options for achieving long term on-campus, but can also be held on site and tailored for the like pay off equipment and machinery, machinery, vacation in Hawaii, get the motor home you’ve always dreamed a financial growth and stability. needs of local businesses. vacation in Hawaii, get the motor home you’ve needBut, to talk to somebody isn’t goals. interested in making a killing off your All well andYou good. these are shortwho term For more information, call 330-494-6170.
TALK From From the the
Ground Up Ground Up You lease your land. The drillers drill. STRAIGHT The energy comes up. The checks come in. TALK Then what? Y
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From STRAIGHT the always dreamed about. All well and good. But, Newly acquired wealth from leasing your land for drilling rights can quic
Ground TALK Up
good fortune. Community subsidiary of The Community Bank) can provide these areFinancial shortAdvisors term (agoals. youifwith true, honest counsel consider in how to manage your financial for long now and disappear you don’t carefully your options for resources achieving term Newly acquired wealth from leasing your land generations to come. We’re the alternative to the slick Wall Street brokers. Community financialFinancial growth and stability. for Advisors drilling rights can quickly disappear if you (CFA) currently manages over $135 million for local families and in our area. We’re your neighbors and we’re well-known for the confidentiality You businesses needdon’t to talk to somebody who isn’t interested in making a killing off you carefully consider your options for achieving and trust that’s so important these days. long term financial growth and stability. good fortune. Newly acquired wealth can change your life. We can help make sure it changes need to talk to somebody who isn’t interested for the You better. Community Financial Advisors (a subsidiary of The Community Bank) can p
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contact ou’ve got a lot of things you can doPlease with theus for: money; like pay off equipment an
in honest making a killing off good Investment Management / Trust &your Estate Administration / fortune. Retirement Planning you with true, counsel in how to the manage your financial resources for now Youinlease your The drillers drill. Community Financial Advisors (CFA) you’ve machinery, vacation Hawaii, get land. motor home always dreamed Community Financial Advisors (a subsidiary of ab 113 North Fifth Street, Zanesville, Ohio / 740.453.0620 / cfa@thecombank.com generations come.The We’re thearealternative togoals. the slick Wall Street energy comes up. The checks comebrokers. in. Comm All well andtogood. But, these short term The Community Bank) can provide you with true, About Then what? Newly acquired wealth from leasing your land formillion drillingfor rights quickla Financial Advisors (CFA) currently manages overus $135 localcan families 110 years ago our founders set to the standard for what caring for neighbors honest counsel in how manage your financial disappearinifour you carefully consider your for achieving ou’vedon’t got a islot of things domaintained with the options money; likefor pay offtheequipment and term all about. Everyou since,can we’ve a reputation being “go to” long businesses area. We’re your neighbors and we’re well-known forWe’re the confide when it toand caring trust in our community. resources for now generations toalways come. machinery, vacation incomes Hawaii, getand the motor home you’ve dreamed about. financial growth and folks stability. All well and good. But, these these short term goals. and trust soalternative important days. the toarethe Wall Street brokers. You that’s need to talk to somebody whoslick isn’t interested in making a killing off your Newly acquired wealth from leasing your land for drilling rights can quickly Newly acquired wealth can change your life. We can help make sure it chang good fortune. Community Financial Advisors (CFS) currently disappear if you don’t carefully consider your options for achieving long term Submitted Photo financial growth and stability. Community Financial Advisors (a subsidiary of The Community One-Year Certificate Ceremony held in 2011 at Stark State over $135 million for local familiesBank) andcan pr for the better.manages You need tocounsel talk to somebody who isn’t interested in making a killing off yourfor now a College, in North Canton. you with true, honest in how to manage your financial resources PleaseWe’re contact us for: businesses in our area. your neighbors and good fortune. generations toCommunity come. We’re the Advisors alternative to the slick Wall/ Street brokers. Commu Investment Management / Trust(a&subsidiary Estate Administration Retirement Planning Financial of The Community Bank) cantrust provide we’re well-known for Financial the confidentiality and Community Advisors (CFA) Financial Advisors (CFA) manages overyour $135 million for for local an you with true, honestcurrently counsel in how to manage financial resources nowfamilies and that’s so important these 113 Fifth Street, Zanesville, Ohio / 740.453.0620 cfa@thecombank.com generations to come. We’re the neighbors alternative to days. the slick Wallwell-known Street /brokers. Community businesses inNorth our area. We’re your and we’re for the confiden Financial Advisors (CFA) currently manages over million foryour local families Newly acquired wealth can$135 change life.andWe and trust that’s so important these days. businesses in our area. We’re your neighbors and we’re About us well-known for the confidentiality can ityour changes Newlyand acquired cansure change life. Wefor can the help better. make sure it changes trusthelp that’swealth somake important these days.
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Tried and True.
Securities and Advisory Services offered through LPL Financial, a Registered Investment Advisor. Member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates.
Not FDIC Insured
No Bank Guarantee
May Lose Value
Not Insured by any Federal Government Agency
Not a Bank Deposit
Space Available
110acquired years ago our founders set your the standard for what caringsure for itneighbors wealth can change life. We can help make changes Apartments, Homes for the better.Newly is all about. Ever since, we’vePlease maintained a reputation for being the “go to” for the better. contact us for: Warehouse Space Available Investment / Trustand & Estate / Retirement Planning folks whenManagement it comes to caring trustAdministration in our community. Community Financial Advisors (CFA) Short or Long Term LeasingTried and113 Fifth Zanesville, 740.453.0620 / Investment cfa@thecombank.com 113Securities NorthStreet, Fifth Street, Zanesville, Ohio //LPL 740.453.0620 / cfa@thecombank.com and Advisory Services offeredOhio through Financial, a Registered Advisor. True. North Member FINRA/SIPC. About us or its licensed affiliates. Fully Furnished & All Inclusive Rates Insurance products offered through LPL Financial 110 years ago our founders set the standard for what caring for neighbors Please contact us for: Investment Management / Trust & Estate Administration / Retirement Planning Community Financial Advisors (CFA)
About us
10081933
Call PatMac. 330-340-8109 Patmac@tusco.net
110 years ago our founders set the standard for what caring for neighbors folks when comes to caringmaintained and trust in our community. for being the “go to” is all about. Everitsince, we’ve a reputation folks it comes to caring andthrough trustLPLinFinancial, our acommunity. and Advisory Services offered Registered Investment Advisor. Tried and True. when Securities
is all about. Ever since, we’ve maintained a reputation for being the “go to” Not FDIC Insured No Bank Guarantee May Lose Value Not Insured by any Federal Government Agency Not a Bank Deposit
Tried and True.
Member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates.
Securities and Advisory Services offered through LPL Financial, a Registered Investment Advisor. No Bank Guarantee May LoseMember Value Not Insured by any Federal Government Agency Not a Bank Deposit FINRA/SIPC.
Not FDIC Insured
10070237
Dix Communications - Gas & Oil
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Buy Direct from the Grower and Save $
Growing for over 65 years!
November 2012 Edition
35
There is more to do than sail, but relaxing is what it’s all about
Ohio’s Best “Most Relaxing Weekend Getaway 2010”
www.carrollcountyohio.com 877-727-0103
330-866-5521 or Toll Free 800-521-7328 Commercial or Residential Planting Jobs, Wholesale Christmas trees and B&B Evergreens, We are the Evergreen Experts!
12 Months of Privacy for your sites
Nov. 23 Nov. 23
Animated Windows Reveal
7:00 pm – Gather at the Gazebo on the Square
Then take this enchanted stroll through downtown Carrollton as the area merchants and business people reveal their beguiling animated window displays. Displays will remain throughout the season to fill you with holiday cheer. The evening will conclude with cookies and hot chocolate at the First Presbyterian Church.
Nov. 23 & 24 22nd Annual Gobbler Open Nov. 24
Carroll Meadows Golf Course 1130 Meadowbrook Ln Carrollton 330-627-2663 Carrollton Christmas Parade 1:00 pm – Theme is “A Christmas Treasure”
Lineup is noon on the school street (3rd NE). We will have floats, tractors, animals, weenie toss, plenty of candy. Carrollton High School Band, and of course Santa will be there.
Nov. 24
www.smithevergreen.com smithevergreen@neo.rr.com 10076042
The Canton Small Business Development Center, Kent State University at Stark and Roetzel & Andress Law Firm present:
McCook House Candlelight Tour
6:30-8:30 pm – 15 Public Square
The Eastern Ohio Farm Toy Show and Auction
9:00-3:30 pm – Garner’s Auction Barn 1186 Canyon Rd. SE, Carrollton 330-627-5343 Auction 4:00 pm Check our website for all winter events!
APARTMENT LIVING AT ITS BEST.
Oil and Gas Educational Series
Regulation of Oil and Gas in Ohio
The first program of a four-part series will review S.B. 315, Ohio’s newest law on oil and gas, as well as the regulations in the State of Ohio, including set-backs, chemical disclosure, requirements for pre-drilling, groundwater testing and permitting, among others.
Thursday, Nov. 1, 2012 • 6:30 - 8 p.m.
Kent State University at Stark • Main Hall Auditorium 6000 Frank Avenue NW • North Canton, OH 44720 $10 per person • $15 per couple Register online at: www.cantonsbdc.org The public presentations are designed to provide education to members of the community. Presented by knowledgeable attorneys at Roetzel & Andress, each event will provide a factual forum, with an opportunity for attendees to ask questions regarding the subject matter.
Luxurious. Spacious. 1, 2 & 3 Bedrooms.
In a Quiet Wooded Setting. Alliance, Ohio
FEATURES INCLUDE:
• Fireplace
Short Te Leas rm Availaes ble
with gas logs • Central gas heat/ AC • Private balcony or patio • Your own 10’ x 20’ garage w/opener • Beautifully landscaped grounds • Washer/dryer connections • All kitchen appliances furnished • Large walk-in closets • Water, Trash & Sewer Included
®
Kent State University, Kent
red trademarks and may not
State and KSU are registe
be used without permission.
10081798
Potters Creek Office: 330-821-4363 www.ForRent.com/PottersCreek
For more information on our Canton properties go to www.westgatemgt.com
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November 2012 Edition - Dix Communications
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Residential * Commercial * Agricultural
We Service All Makes & Models
TRUCK SALES, INC.
New & Used Truck Sales - Leasing Service - Parts - Body Work Not just highway trucks! We also service RV’s, school busses, fire trucks, all types of trailers and specialty vehicles.
Canton, OH
Young Freightliner & Isuzu
Sales, Parts & Service
The LiftMaster® SL 585 is a durable heavy-duty gear-driven operator for use on heavy gates and high-cycle applications such as gated communities and industrial locations. The powerful design supports gate lengths up to 70 feet and gate weights up to 1,600 pounds. This model is ideal for heavy commercial and industrial installations.
1-800-362-0495
Young Volvo
Sales, Leasing, Parts & Service
1-800-308-0838
JayMac Body & Frame Body work, alignment & four large paint booths
1-866-601-7654
Young Trailer Repair Trailer repair and rehabilitation
330-479-8992
www.youngtrucks.com
2150 St. Rt. 39 NW, Dover, OH 44622 9931 E. Pike Rd., Cambridge, OH 43725
www.waynedoor.com
Doors & Operators * Dock Equipment Material Handling Equipment Gate Operators
(800) 532-2216 (740) 439-7555
10080743
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10080639
Medium Duty Parts & Service Center
WISECHEVY.COM
10052810
330-325-9991 1572 ST. RT. 44 RANDOLPH OHIO
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November 2012 Edition
J&M Carpentry LTD
Agricultural “Generations of Amish Residential craftwork with modern, Commercial professional site management” Any Size Custom Pole Barns Garages Barns Stables Riding Arenas Horse Barns Sheds 330.231.0125 Outbuildings Decks Metal Roofing
e Fre Estimates “The quality you want for your project”
online: www.jmcarpentrylimited.com Fredericksburg, Ohio 44627
10066887
37
38
Gas & Oil
November 2012 Edition - Dix Communications
oil/gas jobs challenge business owners who want to hire and retain employees David Shallenberger Rea & Associates, Inc.
Businesses that want to work with the large oil and gas companies have to deliver products and services like never before — often 24/7/365. More often than not, this requires additional staff. While these jobs are good for the economy, they present challenges to business owners who are having problems recruiting the right people and retaining current employees. HirE THE riGHT PEOPlE Companies use to post ads in the help wanted section of the local paper and receive good resumes for more people than they needed. Today, recruiters need to try additional tactics. Identify job websites to advertise on and investigate college recruiting, if applicable. Expand geographically and look for candidates in nearby towns. Companies that are regarded as great employers find it easier to recruit. This reputation cannot be obtained overnight, but those businesses with strong employee practices have an advantage. Bragging about those things that make you a great place to work is not as powerful as getting employees to say it. Utilize current employees to find new ones. Consider offering incentives to any team member who refers a candidate that is hired and ultimately works for the company for a set period of time. Encourage them to participate in local and industry activities that will put them in touch with potential employees. Involve them in the recruiting process, either talking to candidates or reviewing applications. Not only will they help identify top candidates, but they’ll be invested in the company’s success. FiGHT TO KEEP EmPlOyEEs As businesses expand to handle increased activity from the oil and gas industry, realize other businesses are doing the same. Industry insiders need to increase their workforce, too. Quality employees, especially welders and truck drivers with high quality CDLs are prime targets. Long-term employees may be poached. The allure of a new job, better pay and big signing bonuses may be enough to entice the most loyal employees. There are many ways to keep employees “in the fold.” Wage increases, bonuses, fringe benefits, perks and qualified pension plans are many of the more traditional ways that employees can be rewarded for their efforts. However, most importantly, remember the importance of talking to your employees. Understand their concerns and desires and make sure they know their efforts are appreciated. Give them the opportunity to share their opinions. Challenging work, productive feedback and strong leadership are also tied to employee satisfaction. Those people who feel appreciated and properly rewarded will be those most likely to stay. The oil and gas industry is competitive and serious about its hardwork ethic. Any business that wants to work in this industry has to meet or exceed expectations. Having a consistent and ready team will give a business a competitive advantage. Quality staffing will help businesses deliver on customer promises.
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“MoNeY” from pg. 28 your overall retirement plan. Some annuities offer riders such as a death benefit and/or an income benefit. BE CAREFUL. Many annuities are highly expensive, difficult to understand, illiquid, and do not offer a “Step Up in Cost Basis.” This last point means that your beneficiaries may need to pay taxes on their inheritance. 6) stocks Purchasing stock from large, very well-known and established companies is an excellent way to achieve tax deferred growth. This “bucket” is long term money that you may never need and could be a great method for your heirs to receive inheritance in a tax efficient manner. Inherited stocks receive a “Step Up in Cost Basis”; meaning that heirs could avoid capital gains taxes. Many stocks pay significant quarterly dividends. We usually advise the client to reinvest these dividends back into the stock when received. This can compound your gains. Downsides: stocks can be volatile and can lose value. Any dividends, whether reinvested or not, are subject to ordinary tax rates. 7) real estate Consider buying other farms or land can be another alternative for growing your nest egg. Land values are increasing now as well as real state taxes. However, land is a great diversifier, which makes sense for some of our clients. 8) Fees Knowing how your broker/planner is paid is important. Are they paid a one time up front commission? How much is it? Ultimately, you are paying this whether you know it or not. Many financial professionals choose to be paid a small quarterly fee based on the value of your account. This fee is typically paid by your account. Therefore, they have a vested interest in the long term value of your account beyond just day one. 9) toYs You now have your plan and you have begun its implementation. Now is the time to consider the TOYS should you have remaining assets for these purchases. sUMMarY Talk to qualified experts such as a financial planner, the Farm Bureau, OSU Extension, CPAs and an attorney prior to making a decision which can not be “unmade.” Create a PLAN and do it the right way. Ten years from now, you will be glad you did. You could then look back and know you did the right thing for yourself and your family. Cox & Cook Wealth Advisors, 90 S. High Street, Dublin, OH 43017 - (888) 203-1003.
Long string Long•string noun : The last string of casing set in a well. 2. the string of casing that is set at the top of or through the producing zone, often called the oil string or production casing.
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Ron Braucher, Owner
Fleet Maintenance • Inspections Full Service • Trailer Repair Towing Available
330-488-2000 1-888-488-2009
10039562
“Put Our Experience To Work For You”
Located on Rts. 30 & 44 • 383 East Walnut • East Canton
10070768
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Training for the Oil & Gas Industry *SafeLandUSA *CDL with Hazardous Materials *Heavy Equipment Operator *Roustabout *General and Construction - OSHA 10 and 30 hr. 545 University Drive NE New Philadelphia OH 44663 800-227-1665 Phone/Fax 10075807
40
Gas & Oil
November 2012 Edition - Dix Communications
“FeDs” from pg. 12 development of Alaska’s abundant resources base.” What should we draw from these examples? Principally, I would argue that no energy project is safe from government interference. Right now, the U.S. Environmental Protection Agency and a host of other federal agencies are examining ways to limit or ban hydraulic fracturing – a technology central to Ohio’s shale boom. Such measures would stifle our energy revolution and upend our hopes for significant job creation and economic growth. We must acknowledge and respond proactively to attempts of government over-reach from Washington. Second, energy production across America will be vital to growing our economy and stabilizing energy costs. Last year, I co-sponsored a House resolution (H.R. No. 305) that urged the Obama Administration to allow for oil and natural gas production off Alaska and in the Gulf of Mexico as well as permit the Keystone XL pipeline. I supported the resolution because I understand how my constituents benefit from these projects: U.S. energy development creates jobs, generates tax revenue, lowers energy costs, and bolsters our nation’s independence from overseas oil. The Utica and Marcellus Shale could be a windfall for Ohio consumers, laborers and taxpayers. Already, lower natural gas prices as a result of increased supplies have saved Ohio homeowners over $200 in 2010. If the shale revolution proceeds, we can expect to see the creation of over 80,000 jobs and the generation of over $1 billion in government revenues for the state in the next few decades. Many in Eastern Ohio may not be surprised by these statistics; they are direct beneficiaries of this transformation. Buckeyes should rejoice in our newfound energy prosperity. But, we must remain vigilant to protect our rights to develop our resources. Given what we’ve seen across the United States, we can no longer blithely assume that the Shell Alaska and TransCanada examples are merely outliers. In fact, they may be the new standard of regulatory overreach. If we allow the federal government to continue this pattern of delay, Ohio energy consumers, workers and taxpayers will ultimately pay the price.
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stewart named chairman of ohio oil and gas Assn.
S
tate Review of Oil and Natural Gas Environmental Regulations (STRONGER), Inc. has elected Thomas E. Stewart, executive vice president of the Ohio Oil and Gas Association (OOGA), as the Chair of its Board of Directors. Prior to joining OOGA, Stewart had fifteen years of formal experiTom Stewart ence in the oil and gas industry as a producer and provider of contract OOGA Chairman drilling services. He is the third generation of his family to engage in the exploration, development and production of crude oil and natural gas — a family heritage that extends back to the original oil regions of western Pennsylvania and southeastern Ohio. In December 2001, Stewart was elected to the Board of STRONGER as one of three representatives for the U.S. oil and gas exploration and production industry. Stewart’s selection as Chair on August 31, 2012 marks his second rotation through the organization’s officer seats and his second time as Chair. The name, STRONGER, is an acronym for State Review of Oil and Natural Gas Environmental Regulations. STRONGER was formed in 1999 to reinvigorate and carry forward the state review process begun cooperatively in 1988 by the U.S. Environmental Protection Agency (EPA) and the Interstate Oil and Gas Compact Commission (IOGCC). The mission of STRONGER is to educate and provide services for the continuous improvement of regulatory programs and industry practices in order to enhance human health and the environment. STRONGER is a non-profit, multi-stakeholder organization which shares innovative techniques and environmental protection strategies and identifies opportunities for program improvement. The state review process is a non-regulatory program and relies on states to volunteer for reviews.
Representative John Adams is the House Majority Whip of the Ohio House of Representatives, representing District 78.
hoisting system noun : the system on the rig that performs all the lifting on the rig, primarily the lifting and lowering of drill pipe out of and into the hole. It is composed of drilling line, traveling block, crown block, and drawworks. See also hoisting components.
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November 2012 Edition
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Gas & Oil
November 2012 Edition - Dix Communications
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Chesapeake energy benefit golf outing raises $60,000 for Habitat for Humanity Laurie Huffman Dix Communications
C
hesapeake Energy’s Utica Shale division hosted a golf outing in early October to benefit Habitat for Humanity of Greater Stark and Carroll Counties, and raised $60,000 in the process. The end result surpassed Chesapeake’s goal for the fundraising event, which was $50,000. In addition to making the donation, Chesapeake staff will again assist in a Habitat for Humanity build, similar to what they did in June 2011. The new home for a Habitat for Humanity recipient family will be constructed in the spring, in Carroll County, according to Pete Kenworthy, manager of media relations at Chesapeake. The event took place at Brookside Country Club in Canton. The tournament sponsor was Beaver Excavating, and the lunch sponsor was CESO and Mathena Energy. “Many local companies deserve a great deal of appreciation for their participation in the recent golf outing at Brookside Country Club that raised money for Habitat for Humanity of Greater Stark and Carroll Counties,” said Aimee Belden, community relations coordinator. “Without the support of those sponsor companies, we would not have been able to raise the $60,000 and commit to building a home for a needy family. We look forward to completing this project in the spring when Chesapeake employees will volunteer their time to construct the house in Carroll County.” Contest and team sponsors were: Advanced Oilfield Services, Anderson Excavating, Baker Gas Field Construction, Baker
Submitted Photo Chesapeake Energy benefit golf outing participants take to the course to raise $60,000 for Habitat for Humanity. Hughes, Blue Dot Energy Services, BTI Services, CESO, Complete Energy Services, Compressco Partners, Crescent Services, Crown Oilfield Services, DPS Penn, Elite Gasfield Services, Environmental Management Specialists, Exterran, Extreme Plastics Plus, Force, Gary A. Monroe & Associates, Geo-Technology Associates, Hammontree & Associates, Hull & Associates, Kanawha Stone Company, Kelchner, Ken Miller Continued on pg. 44
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November 2012 Edition
Tuscarawas and Carroll Counties
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Gas & Oil
November 2012 Edition - Dix Communications
“GolF oUtiNG” from pg. 42 Supply, Kenan Advantage Group, Kokosing Construction, Lane Construction, Laurel Aggregates, Mid-Ohio Pipeline Services, Miller & Company, MRW Flares, National Lime & Stone, Oil States, Ready to Haul, Rettew, Rod’s Production Services, Scott Rotruck, Specialty Oilfield Solutions, Stallion Oilfield Services, Stateline Paving -A Lindy Company, Universal Wellhead Service, VersaTech Automation Services, Waterford Tank & Fabrication, Weatherford, Weaver Express, Wolfpack Energy Services, and Wyoming Casing Service.
Submitted Photo Chesapeake Energy hosted a golf outing in October that raised $60,000 to benefit Habitat for Humanity.
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Rex Energy creates scarecrow oil rig
Dix Communications Photo / Kimberly Lewis
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November 2012 Edition
45
utica shale voter’s guide released Energy in Depth-Ohio has launched the Ohio Votes: Utica Shale and the 2012 Election Voters’ Guide. Included in the guide is a fact-check on statements made by the presidential candidates regarding domestic energy development. The resource serves as Ohio’s only voters’ guide focusing exclusively on the positions federal and state candidates have on continued development of natural gas from shale resources. The Utica Shale has reinvigorated Ohio’s economy over the past year and this guide serves as a one-stop information source on candidates’ positions on regarding it’s past, present, and future development. The guide, available at http://www.eidohio.org/energy-indepth-campaign-microsite-home/ <http://www.eidohio.org/ energy-in-depth-campaign-microsite-home/> , is designed to connect voters with information on the positions of candidates seeking the offices of U.S. President, U.S. Senate, U.S. House and State House and State Senate. It also provides easy access to previous guest posts elected leaders and candidates have penned for EID Ohio, as well as fact check on statements made in the recent presidential debates. The guide also provides Ohio voters with third party resources they can access to learn about additional positions these candidates have adopted. In continuing the tradition of fostering an informed and active electorate in Ohio, one that has correctly voted for 24 of the last 26 presidents dating back to 1904, Energy in Depth Ohio welcomes you to the Ohio Votes: Utica Shale and the 2012 Election Voters’ Guide.
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Gas & Oil
November 2012 Edition - Dix Communications
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Your Finances, Your Future
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Gas & Oil
November 2012 Edition - Dix Communications
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Energy Corporation When Raymond Beck drilled the Yurgen #1 well in Ravenna, Ohio in 1978, it marked the beginning of Beck Energy and more than 30 years of exploring, drilling and producing throughout the Appalachian Basin. The price of a gallon of gasoline was around 0.63, less than a gallon of milk, and oil has yet to reach $40.00 a barrel. Since that time, the company has completed more than 300 wells throughout 11 Ohio counties. Beck Energy is proud to be a local company that employs local people and continues to work with Ohio landowners to help develop their mineral rights. Each month, the company sends royalty checks to over 600 landowners as well as providing free natural gas to homeowners on properties where wells are located. The company also has extensive experience operating under Senate Bill 165, which permits the exploration and drilling of wells within urban areas. Beck currently has wells on golf courses, churches and within city limits of many Ohio communities. Some of Beck Energy’s recent wells are located in Cuyahoga Falls, Ravenna and Munroe Falls. Beck Energy is committed to the safety and protection of the environment and has an outstanding record of cooperation with landowners. Today, the company continues to grow as the oil and gas industry in Ohio begins another dramatic change. The discovery of deeper Shale formations known as the Marcellus and Utica, has spawned a boom throughout Ohio. Beck Energy continues to lease and work with local landowners, just as it has done for years. “Not everyone wants to sign a lease with large out of state companies,” said David Beck, the founder’s son and Land Manager for the company. “We get calls every day from people who want to learn more about drilling a well on their property and who feel more comfortable with a smaller local company.” While new opportunities continue to develop in the Shale, Beck will also keep drilling to the Clinton sand stone, the primary geological formation found in Portage County and most of Northeastern Ohio. “We are proud of the job we do here. There is nothing more important than developing our natural resources and helping our country become energy independent. American oil from American soil is what it is all about.”
The Beck Energy office is located in Ravenna, at 4857 Harding Avenue, just off State Route 14. We can be reached at 330-297-6891.
Beck Energy also maintains a field staff and office in Woodsfield, Ohio.
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