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Table of Contents 4
Energy Coalition Resumes Meetings
7
Bringing People Together
8
Political Landscape for Gas/Oil Industry
11
Mile Stones Abundant in Current Shale Play
12
American Refining Group Breaks Ground
15
Who’s Who in State Elections
16
Communication Key at Well Site Fires
19
Kent State Stark Hosts Utica Summit II
20
Simple Substances Create Educational Opportunity
22
Map Books Provide Pipeline Information
26
Stark Sheriff Department Ahead of Curve
27
Partnerships Needed to Handle Oil and Gas Influx
28
Engineering Class Provides Practical Experience
30
Ohio CAT Invests $1 Million in Foundation
33
Belmont College Safety Classes Expanded
34
Energy Industry Employing Social Media
36
New Stem Academy for Mahoning Schools
PUBLISHERS Andrew S. Dix G.C. Dix II
Judie Perkowski / Dix Communication
David Dix
State Senator Troy Balderson / Ohio 20th District Marc Kovac / Dix Capital Bureau
Sophie Kruse / Dix Communications
EXECUTIVE EDITORS Lance White
Kimberly Lewis / Dix Communication
Roger DiPaolo
Marc Kovac / Dix Capital Bureau
Ray Booth
John Lowe / Dix Communications
Rob Todor
Rachel Sluss / Dix Communications Linda Hall / Dix Communications
REGIONAL EDITORS Laurie Huffman / Dix Communication Laurie Huffman / Dix Communication Judie Perkowski / Dix Communication
Amadeus Smith / Dix Communications
Kimberly Lewis Erica Peterson Cathryn Stanley Niki Wolfe Judie Perkowski
LAYOUT DESIGNER
ADVERTISING DIRECTORS Kim Brenning
Rhonda Geer
Harry Newman
Jeff Kaplan
Ed Archibald
Jeff Pezzano
DIGITAL CONTENT MANAGER COVERAGE AREA Brad Tansey ART DIRECTOR Pete Kiko
LAYOUT DESIGNER Jenna Conaway
“Gas & Oil” is a monthly publication jointly produced by Dix Communication newspapers across Ohio. Copyright 2014.
Ohio OCTOBER 2012 • www.ohiogo.com
A FREE MONTHLY PUBLICATION
39
Protect Your Oil and Gas Interests into the Future
41
Should I Sell
42
Shale Production Still on Rise
45
Stark Commissioner Says Gas and Oil Welcome
46
Reseeding Over Pipeline
47
Company Donation Aids Students
49
Court of Appeals Weighs in on Dormant Mineral Act
51
West Branch Students Prep for Stem Careers
54
Newbie on Scene in Columbus
57
Energy Briefs
58
Embrace Energy Independence
61
Kent State Offers Job Training for Gas/Oil
62
For Cleaner Environment, Support Domestic Gas
64
Dragon Products Receives Abatement
66
Upcoming Events
70
Buckeye State Energy Plans Annual Meeting
72
OOGA Presents a Unified Voice
Frank McClure / Attorney Don Gadd / Landman
Marc Kovac / Dix Capital Bureau Laurie Huffman / Dix Communication
Laurie Huffman / Dix Communication David Wigham / Attorney Amadeus Smith / Dix Communications Judie Perkowski / Dix Communication
State Representative Brian Hill / Ohio 97th District
Michael James Barton / ARTIS Research Bobby Warren / Dix Communications
Kara Taylor / Dix Communications David Hill / President, Ohio Oil and Gas Association
Judie Perkowski Dix Communications
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he said. “We are very safety conscious on the sites and in the communities where we do business.” Mize relies on his 21 years experience as a firefighter in his home town of Shreveport, Louisiana. He has held several highranking first responder designations and safety-related positions from which he retired in 2011. In 2013 he was offered and accepted his current position at Momentum. “Oil and gas companies have invested more than $14 billion in Ohio. We want to see more money come back to local communities for infrastructure, schools, expanding businesses and opening new ones. There is a lot of growth yet to come. Most experts say we have at least 150 years of oil and gas production, maybe more. “Even with the Scio and Kensington facilities both operating, we cannot deliver our product fast enough. Right now the product we produce from natural gas liquids today is already to be shipped out tomorrow, either by rail cars, trucks or pipelines. We are not yet in the storage mode. Referring to the propane crisis last winter throughout the country, Mize said Momentum is trying to keep up with the demand and with three facilities online, they will be prepared for the winter months. He said 76 percent of trucks carrying propane from Momentum facilities will stay in Ohio. The triple complex of the Scio, Kensington and Leesburg plants are natural gas gathering and compression facilities constructed and operated by a partnership between M3 Midstream, EnerVest and Williams, and includes processing, natural gas liquids fractionation, loading and terminal facilities constructed and operated by Momentum. jperkowski@daily-jeff.com
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AMBRIDGE, OH — After a three-month hiatus, the Guernsey Energy Coalition met Sept. 4 at its usual venue at the Southgate Hotel in Cambridge. The meeting was sponsored by Dominion East Ohio. The monthly Coalition meetings, moderated by Jo Sexton, president of the Cambridge Area Chamber of Commerce, have been the epicenter of education of the gas and oil industry in eastern Ohio for the past three years, until Sexton announced in June that the meetings would continue, but only quarterly. “The meetings are still very important to help keep community leaders and business people up-to-date about the gas and oil industry, and it has been a great place to network. During the course of the past three years, we have covered every topic, more than once, with speakers from every facet of the industry. We now want to continue the momentum with great speakers on a quarterly schedule. Sexton introduced Eric Mize, emergency preparedness/public awareness manager, who presented an overview of his position and responsibilities at Momentum, a division of Texas-based M3 Midstream. Mize operates out of an office in Salineville in Columbiana County, famous as the place where Confederate Gen. John Hunt Morgan was captured during the Civil War in 1863. Salineville is now famous for the Kensington gas collection and processing plant, the second phase of a natural gas fractionation, storage, rail processing complex, which includes the Scio plant in Harrison County. Both facilities opened in 2013. Completing the trilogy is the Leesburg Cryogenic Processing facility in Carroll County, scheduled to open in mid-October. Mize explained the terms upstream, which refers to exploration and production phase; midstream refers to the transmission, refining and processing of the product; and downstream is the distribution and retail sales of the product. Momentum Midstream provides oil and gas producers with reliable midstream services linking the wellhead to the market. “If you go to any oil and gas company in Louisiana, Arkansas, or Texas, a picture of Ohio is on the wall. Ohio is the new Texas,” he said. Mize quickly captured the audience’s attention with his southern drawl and self-deprecating humor. He spoke about emergency preparedness and how Momentum has contributed back to the communities on several levels by making sure they operate in a safer environment. In his position, Mize is dedicated to indoctrinating employees throughout the company and surrounding communities about safety by staging five-day safety program for local firefighters. “Education is one way the company gives back to the community. Safety is not only built in to the process to protect company assets, but also to protect workers, the ground, wetlands and the total environment. We are doing much more than is being reported,”
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ne of the biggest contributions of the oil and gas industry in southeastern Ohio has been the continued economic growth and job opportunities presented to the people and communities in the region. This industry has been a boon to the area in terms of jobs, education, and economic development. We are still in the early stages, and our goal is to continue the growth and make sure the skill-specific education is in place to ensure that these jobs remain southeastern Ohio jobs. It’s great to see our educational institutions developing curricula around this industry, and in turn, the industry communicating what it needs in terms of skills and expertise to our universities, colleges, and community technical schools. Other important oil & gas issues There are a number of substantial needs when it comes to the oil and gas industry in southeastern and eastern Ohio. When we fulfill these needs in ways such as putting in place effective infrastructure and workforce development, we find a productive way to keep these communities thriving, even after the resource has been taken out. Continued infrastructure development is a key to actually utilizing the resource once it comes out of the ground. By focusing on getting the essentials in place, our state will realize this resource’s full potential for our energy sector and economy. We must also focus on Ohio’s greatest asset — our dedicated workforce. During this General Assembly, I sponsored Senate Bill 1, which helps Ohio’s unemployed and underemployed find work through continued education and job training, with a focus on the energy sector. Senate Bill 1 authorizes a revolving fund, which will pro-
vide loans to Ohioans who need additional job training. The loans will be distributed through public and private colleges, universities and career centers. This bill is another piece of the puzzle that connects job seekers with new opportunities right here in the Buckeye State. Building relationships between businesses, schools, and career centers will help shape curriculum in a way that prepares graduates for open job opportunities, which will in turn facilitate quick job placement. By investing in both our infrastructure and our people, southeastern Ohio communities directly affected by oil and gas exploration will continue to see growth and sustainability through a trained workforce and future economic development. Oil and gas exploration has been an enormous benefit to this area, and we must continue fostering relationships between businesses and the people to move forward in a productive manner.
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OLUMBUS — David Hill’s position on politicians isn’t complicated. The longtime Guernsey County oil and gas operator and current president of the Ohio Oil and Gas Association looks for candidates who will back straight-forward legislation and policies that balance the needs of eastern Ohio’s growing shale oilfields with environmental regulations that penalize egregious offenders. “If we know going forward that these legislators support sound energy policy that balances energy development with the best interests of the state of Ohio... those are the people we can support,” Hill said during a recent stop at the Statehouse. Hill and Shawn Bennett, senior vice president of the Ohio Oil and Gas Association, recently sat down with Gas & Oil to discuss the state of shale exploration in Ohio and the coming general election, which will shape oil and gas policies over the next two years. Here’s what they had to say: • Production Statistics: The Ohio Department of Natural Re-
sources recently released production totals for the second quarter of the year. A total of 2.5 million barrels of oil and 88 billion cubic feet of natural gas were produced from a little more than 500 horizontal wells in April, May and June, up from 1.9 million barrels of oil and 67 billion cubic feet of natural gas produced during the first quarter. Three wells in Seneca Township in Noble County reported the highest oil production in the state, while wells in Monroe and Belmont counties reported the highest natural gas production. Hill said the totals will continue to rise, particularly as exploration and production technologies advance. “We’re still on the front end,” he said. “We’re in the embryonic stages of this play. I think we have 45 rigs running. I expect that number will continue to increase. ... Here’s something about the play that gets missed: As we sit here today, there’s this nice sweet spot that we talk about, Guernsey, Noble, Monroe, moving a little bit into Washington. But that’s the liquids-rich part of the play. If you go east, that gas gets drier, but it’s abundant gas... The price
of natural gas is depressed right now, but it’s not always going to be depressed. So there will be a day when we grow out of this pod we’re working in now. If the price of natural gas goes up, we’re going to go start drilling all the way to the Ohio River. Simultaneously, on the other side of the play, by the time you get to Muskingum County, Liking County, that’s the oil window. We currently don’t have the technology to produce the oil window. That’s as we sit here today... We’re in the embryonic stages. Ohio, we’ll figure this oil window out. ... It’s going to go east, and it’s going to go west.” He added, “As an oil and gas producer myself and representing 3,300 members, what I really want to do is help them go find more oil and gas, because it’s creating thousands of jobs here in Ohio. Ohio really is in the middle of this phenomenon we’re experiencing, where oil production in the United States is actually rising... In the United States of America, we consume 19 million barrels of oil per day. We’re currently producing 8.5 million barrels a day, and that’s the highest level in the last 27 years. So oil production in the United States is rising, which makes us less dependent on foreign oil, and with all of the things going on and where the oil is located in the Middle East, these become national security issues.” • Severance Tax: In May, the Ohio House, on a split vote, passed a much-debated plan to increase tax rates on oil and gas produced via horizontal hydraulic fracturing. HB 375 would set that tax rate at 2.5 percent, with lower rates for vertical wells. The first $10 million of production will not be taxed, allowing companies to recoup their initial well investments. The state also would provide nonrefundable tax credits for commercial activity taxes paid on horizontal wells. Of the resulting revenues, more than $20 million would go to state regulatory efforts, a new well-plugging program and geological mapping activities. A total of 17.5 percent of the remainder would be directed to local governments, with specified amounts directed to eastern Ohio shale counties. The remaining money would be used for a statewide income tax cut. The final vote in the House was 55-38, with many Democrats and a few Republicans opposing. The bill does not have the support of Gov. John Kasich, who has long pushed for a bigger increase in the severance tax. The Ohio Oil and Gas Association supports the legislation, joining backers in saying it would provide clarity and certainty to producers, enable the state to gain some benefit from increased oil and gas production, cover regulatory costs and orphan well capping and provide additional funding for communities near the state’s emerging shale oilfields. “As written, we support it,” Hill said. “We’d love to get this issue resolved and go on about the businesses of finding oil and gas. ... We want to eliminate uncertainty. In the oil and gas industry, we have so many uncertainties it would frighten you. We’ve got geology, we’ve got availability of machinery, we’ve got all of these issues. And, so, the uncertainty of where that tax rate’s going to be is troublesome. We need to get it behind us. ... We’re supporting a severance tax — a reasonable severance tax. The severance tax was designed to fund the regulatory body. ... It was never contemplated to do any more than that.” HB 375 could be among the bills lawmakers take up during their final voting sessions of the year. “It’s lame duck” Bennett said. “There are no bets when it comes to lame duck legislation. Anything can happen.”
• Dumping Penalties: Another bill being considered by state lawmakers is HB 490, which outlines increased penalties for those who illegally dump oilfield waste. The bill was prompted, in part, by an incident in Youngstown that led to a criminal conviction against the perpetrator. HB 490 would expand ODNR’s authority to revoke or suspend drilling and related activities of those who break the state’s environmental regulations. The legislation also would tighten requirements for transporting brine and increase potential prison time and civil penalties for violations. The Ohio Oil and Gas Association is supportive of law changes that would penalize individuals who purposely break the law. But members are concerned about unintended consequences. “As an association, we want to ensure that the law addresses bad actors appropriately,” Bennett said. “The last thing we want to see happen is a bill that may no be worded correctly or appropriately that may cause some of our members to become felons.” Hill added, “I’ve been an oil and gas operator in the state of Ohio for 35 years. We need policing, we need the bad actors to pay a consequence for what they do. It makes the entire industry look bad. We fully support having teeth [to oil and gas regulations]. We just need to make sure that unintended consequences of that don’t hurt oil and gas operators that are trying to do the right thing.” On the Youngstown incident, he offered, “The guy was doing something egregious. Some citizens saw it happen. They reported it to the authorities, and by that evening, they identified who the perpetrator was and what was going on... Bottom line, the system works.” • Differing Opinions: Differences in positions on issues like the severance tax aren’t “deal breakers” for Hill and others when considering which candidates to support in November. “We look at the situation and the politician in its totality,” he said. “We’re not going to separate things out. I think it would be reckless for us to say we would let anything be a deal breaker. ... Politics is the art of the possible. We can work with politicians who differ with us on the severance tax issue.... There will be life after severance tax. There’s going to be a lot of other issues we’ll have to work on. There’s always going to be new regulations that come down the pike. There are going to be technologies developed in the next five years we haven’t even thought of yet. It’s going to create different aspects of how we regulate that. There’s going to be conversations driven by changing technology.” He added, “Are there areas where we have differences of opinion? Obviously. Ohio has always been business friendly and has treated oil and gas favorably. We want to continue that, because ultimately, if we’re successful in finding oil and gas, that’s good for all of Ohio. With all of the things going on in the world right now, there’s supply disruptions all over the world, if we didn’t have this shale revolution going on in the United States, we’d be paying a lot more than $3.30 for our gasoline, a lot more. The domestic natural gas prices in the United States Would not be at their record low levels we have now....” Marc Kovac is the Dix Capital Bureau Chief. Email him at mkovac@dixcom.com or on Twitter at OhioCapitalBlog. u
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Sophie Kruse Dix Communications ing about two-thirds less than Marcellus, located in Pennsylvania, West Virginia and New York. The other shale producing regions included on this report are Haynesville, in Louisana and Texas; Eagle Ford in Texas; Fayetteville in Arkansas: Barnett in Texas; Woodford in Oklahoma; Bakken in North Dakota; and Antrim in Michigan, Indiana and Ohio. For the Utica play, Chadsey believes there’s a next step that the industry will be taking. “A lot more pipelines are going to be needed. ... An infrastructure needs put into place. I think that will be the next big part of the conversation.”
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OLUMBUS, OH — Aug. 12 was a big day for the Utica shale industry, which is dominant in Ohio, when it recorded the 1,000th horizontal well drilled into the ground. Now, according to the Ohio Department of Natural Resources, Oil and Gas division, the Utica/Point Pleasant Shale has surpassed that number — clocking in with 1,076 wells drilled as of Sept. 13. “It shows that this play is the real deal,” said Mike Chadsey, director of public relations for the Ohio Oil and Gas Association. “There’s more ahead of us than behind us.” According to Chadsey, this is important for logistics of the area. “What it does is help establish the boundaries of the play,” he said. There’s more for the industry to be excited for as the Utica play is just one permit shy of reaching 1,500 horizontal permits. In the second quarter of 2014, these horizontal shale wells produced 2,467,283 barrels of oil and 88,673,741 Mcf of natural gas (or 88 billion cubic feet), according to the ODNR. These products were produced by 504 different wells, which each individually produced on average 4,895 barrels of oil and 175,939 Mcf of gas. According to the report that was released by ODNR, the highest producing oil well was Antero Resources “Myron” well in Noble County. It produced 78,309 barrels in 91 days of production. The highest producing gas well was Hall Drilling’s “Hercher North” well, located in Monroe County. It produced 1.4 billion cubic feet of gas in 91 days of production. There are other milestones to celebrate. According to a report by the Energy Information Administration, natural gas production in the Utica shale play has increased by 10 times since January 2012, making Utica one of the fastest growing areas of gas production in the country. The region was producing 155 million cubic feet per day in January 2012 and has risen to an estimated 1.3 billion cubic feet a day presently. However, compared to some of Utica’s neighbors, it has further to go. While another report by the EIA said that Utica is leading in terms of emerging shale plays, and will be added to the US Department of Energy’s monthly oil and gas report this month — which includes the country’s six most prominent regions, it still is produc-
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INERAL CITY, OH —- Representatives from American Refining Group Inc. (ARG) and Campbell Construction Inc. gathered Tuesday to break ground on a $1.2 million project to build a new 9,136-square-foot facility at ARG’s Sandyville crude-oil terminal in Mineral City. When complete, the facility will enclose 4,144 square feet of office capacity and 4,992 square feet of shop space and will include a conference room equipped with state-of-the-art technology. A staff of 18 will be based there comprising drivers, administrative support and supervisory personnel. “We’re (currently) in a building that was never designed for office use and we’ve outgrown it,” said Gary Welker, ARG’s manager of crude-oil operations.
Because of a significant increase in available maintenance-shop space, ARG also aims to add another full-time mechanic. “We’ve had to contract a lot of our truck maintenance and repair work to third parties because there just wasn’t room,” Welker said. ARG’s Ohio operations also include a terminal in Randolph where five crude-truck drivers and a dispatcher are based. Between the two sites, Ohio operations supply an average of 1.35 million barrels of crude oil annually, the vast majority of which is shipped by rail, to the refinery in Bradford, Pa. ARG’s refinery is situated on approximately 131 acres in the heart of McKean County and was the birthplace of the domestic oil industry more than 130 years ago. The refinery has a rated capacity of 11,000 barrels per day and processes light sweet paraffinic crude.
ARG reported it partnered with Campbell Construction, a Butler builder, due in part to “shared values such as integrity, trust, excellence and quality, as well as a commitment to community and social responsibility.” According to Campbell Vice President of Business Development Jeff Stevenson, more than 50 people will work toward the project’s completion, which is expected by the end of February. “This is a complete turn-key, design-build project. We handle all design, engineering, permitting and construction,” Stevenson said. ARG President and Chief Operating Officer Jeannine Schoenecker said, “We are pleased to be able to make this major investment in our Ohio operations, which will also enable us to better serve our crude suppliers now and far into the future. “The crude oil we gather in Ohio is crucial to our refinery’s operations,” Schoenecker explained, “and this expanded, improved facility will only become more critical to our growth and success there.” u
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TUESDAY, OCTOBER 21, 2014 - 9:00 AM CRAWLER TRACTOR: Caterpillar D4H Series II; LOADER BACKHOES: Case 590 4x4 Turbo; Case 580 Super K 4x4 w/ Extendahoe; Case 580 Super K 4x4; Crane: P & H Century 128; EXCAVATORS: Caterpillar 320L; Kobelco SK220LC Mark III; Kobelco SK220LC Mark IV; Kobelco SK200LC Mark IV; Kobelco SK200LC; John Deere 690D-LC; Hitachi EX120-3; SKID STEER LOADER: Case 1845C; ROAD MAINTENANCE EQUIPMENT: ROLLERS: (2) Dynapac CA-12D 48” Vibratory; Bomag BW60HD 68”; Bomag BW75S 30” Tandem Walk-Behind; PAVER: Bidwell B362 Paver w/ Paver Sections; SCREED: Terramite Clarion Style Roller Screed w/ 3-15’ & 3-30’; Terex OMS1-0L26 Vibratory Morrison Style Power Screed; MANLIFTS: Genie Z-60 4x4; Genie S-60; DUMP TRUCKS: 1987 International S1954; 1983 International S1954 w/ Attenuator; 1983 International S1954; 1980 International 1954; FLATBED TRUCKS: 1989 Mack MS200; 1992 International 4700; (2) 1991 International 4700; MISCELLANEOUS TRUCKS: 1985 Vac All Crane Carrier Cab & Chassis; 1977 Ford Lift Flat 32’ Bucket; 1981 Ford LF8000 w/ National 756 Crane; PICKUP TRUCKS: (2) 2002 Dodge Ram 2500; 2005 Ford F250; 2001 Ford F250 w/ Utility Bed; 1998 Dodge Ram 2500; VANS: (2) 2006 Ford Econoline; DUMP TRAILER: 1986 Pioneer; TRAILERS: 1976 Fruehauf 6500 Gal. Tanker; (2) Fontaine 45’ Spread Axle; 1989 Hurst T/A Tag; 1975 Tri-Axle Tag; 1997 Homemade T/A Car Hauler; 1986 Soil Trailer; 1969 Totem All 610 Flatbed; MISC: Air Compressors, Welder, Rock Splitter, Attachments For Equipment, ETC; MUST Note: There is a five (5%) percent buyer’s premium on items over $1,000. There is a ten (10%) buyer’s premium on items $1,000 or less. Auction Firm Lic# 63198716259 V. Peter Clark Lic# 2003000092 Note: There is an additional 2% buyer’s premium for Online & Absentee Bidders.
11TH FALL AUCTION
CONSTRUCTION EQUIPMENT - TRUCKS & TRAILERS 423 ASHWOOD ROAD, DARLINGTON, PA 16115
THURSDAY, OCTOBER 23, 2014 - 9:00 AM Announcing: The complete Liquidation of Patken Construction Co., Inc. Other Area Contractors & Dealers will be Participating. Quality Consignments Accepted - Call 800-842-6221 or 304-266-2955
CRAWLER LOADERS: Caterpillar 953B; Caterpillar 953; Caterpillar 943 CRAWLER TRACTORS: Caterpillar D5CXL; Fiat Allis HD 31; Caterpillar D4E; RUBBER TIRED LOADER: Caterpillar 924G IT; LOADER BACKHOE: Caterpillar 420 4x4; Case 580K Series III; EXCAVATORS: Caterpillar 315BL; Kobelco SK160LC Dynamic Acera; John Deere 690ELC; New Holland EC270; Daewoo 450; MINI EXCAVATORS: IHI IS30G; Komatsu PC20-5 SKID STEER LOADER: Case 1845C; ROLLERS: Dynapac CA115 66” Single Drum; Bomag 211D-3 Single Drum Vibratory; Rammax Ditch Roller; FORKLIFTS: Lull 844 Highlander 8K#; Skytrak 7038 6K#; MANLIFTS: ILG 600AJ; Simon MP110; DUMPERS: Terex PTR6000; Terex PS6000; Terex PSR4000; Terex PTR3000; Terex PSR3000; Terex HD1000; END DUMP: Terex TA30 FARM TRACTORS: John Deere 4520 4X4; John Deere 4050 4x4; John Deere 4040; John Deere 4650 4x4; New Holland 8340 4x4; New Holland TS110; (4) New Holland TS90; Massey Ferguson 8120 4x4; Massey Ferguson 362A; Tafe 45DI 4x4; TRUCK TRACTORS: 2001 Kenworth; 1994 Peterbilt Michigan Special; DUMP TRUCKS: 2000 Mack Tri-Axle; 1994 Mack RD688S Tandem Axle; 1988 Western Star Tandem Axle; 1976 Mack DM685S Tandem Axle; 1995 International 4700 Single Axle; 1993 Ford F350 4x4 Single Axle; PUMP TRUCK: 2003 Mack MR w/ Pumpstar 42m Pump; FLATBED TRUCK: 2005 Chevrolet 7500; SERVICE TRUCKS: 2004 Ford F350; 2003 Ford F550 4X4 Crew Cab; TRAILERS: 1995 Trail King 35 Ton Lowboy; 2000, Loadking 25 Ton Tag; 1980 Vulcan T/A Roll Tail w/Winch; (4) New 2014 Topline Tag; 1984 Haulmore Enclosed Car Hauler; 2014 Big Bee Dump; 2004 Topline T/A Tag; LOTS OF MISC: Broom, Rake, Box Blades, Pressure Washers, Generators, ETC. MUST Note: There is a two (2%) percent buyer’s premium on items over $1,000. There is a ten (10%) buyer’s premium on items $1,000 or less. Auctioneer: V. Peter Clark Lic# AU005098 PA Auc. Co. Lic# AY000267L PA Auc. House Lic.# AH001793
www.yoderandfrey.com 10292772
Marc Kovac Dix Capital Bureau
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OLUMBUS, OH — Ohio voters will decide next month whether to give Gov. John Kasich and a slate of other statewide Republicans second terms or replace them with Cuyahoga County Executive Ed FitzGerald and a slate of other Democratic hopefuls. All five main statewide officeholders are on the ballots, as well as two Ohio Supreme Court justices, about half of Ohio’s senators and all 99 state representatives. Republicans currently control all statewide offices and the state’s high court, plus both chamber of the state legislature. GOP members hold super majorities in the latter. Here’s a quick rundown of the statewide races: • Governor: Kasich was elected four years ago with plans to privatize the state’s economic development efforts, eliminate unnecessary and burdensome business regulations and reduce tax rates, among other campaign promises. He’s accomplished those tasks, via the creation of the nonprofit JobsOhio, the establishment of his Common Sense Initiative to review regulations and multiple tax cuts implemented as part of biennial and mid-biennium budget bills. The governor also touts a lower unemployment rate, a rainy day fund that went from less than a dollar to more than $1.4 billion and an expansion of Medicaid eligibility implemented over objections from many Statehouse Republicans. But his opponent says Kasich’s policy decisions have actually hampered the state’s post-recession recover. FitzGerald cites statistics showing Ohio’s work force is growing at a slower rate than most of the rest of the country. Democrats also point out Kasich support of Senate Bill 5 (public employee collective bargaining reform that was soundly defeated by voters), abortion restrictions and other law changes that they say are hurting needy Ohioans. On the oil and gas front, Kasich is pushing for an increase in the severance tax on production from horizontal wells — a stance that has put him at odds with some Republican members of the Ohio House. FitzGerald has said he would look to communities around eastern Ohio’s emerging shale oilfields before considering substantive changes in the severance tax.
• Attorney General: In the attorney general’s race, Republican incumbent Mike DeWine faces Democratic challenger David Pepper, a former Cincinnati city councilman and Hamilton County commissioner. Among issues being debated in this race are the state’s efforts to combat prescription painkiller and heroin abuse and addiction and the pace at which the state’s crime lab is processing DNA evidence. • Secretary of State: Republican incumbent Jon Husted faces Democratic challenger Nina Turner, a state senator from Cleveland, in the race for secretary of state. Much of the debate in this race has focused on election issues — in particular, a federal judge’s ruling that Republican-backed law changes and directives issued by Husted were unconstitutional. Husted set uniform early in-person voting hours for all counties based on the recommendations of bipartisan county elections boards, absent action by the state legislature. Turner has said the secretary should allow more evening and weekend hours for early voting. • Auditor: Republican incumbent Dave Yost faces Democratic challenger John Carney, a state representative from the Columbus area, in the race for state auditor. One issue that continues to surface in this contest is JobsOhio, the private nonprofit created to spearhead the state’s economic development efforts. State law blocks the auditor from fully reviewing the financial books of JobsOhio. Yost was at odds with the group and issued subpoenas during his term to review JobsOhio’s operations. Carney says he would have done more to force the nonprofit to reveal how it is spending public money. • Treasurer: Republican incumbent Josh Mandel faces Democratic challenger Connie Pillich, a state lawmaker from Cincinnati, in the race for state treasurer. Among other issues, Mandel has faced criticism for a series of telephone town hall meetings — sessions that his office says help to connect with Ohioans and that his opponents say amount to spending public funds to support his campaign. But Mandel also points out that cost-cutting measures implemented since he took office have saved $6 million. • Supreme Court: Two incumbent Supreme Court justices face challengers. Republicans Judi French and Sharon Kennedy will face Democrats John P. O’Donnell and Tom Letson, respectively. Marc Kovac is the Dix Capital Bureau Chief. Email him at mkovac@dixcom.com or on Twitter at OhioCapitalBlog.
John Lowe Dix Communications
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AMBRIDGE, OH —- Local firefighters have all of the company-supplied, chemical information they need to tackle confidently any fires that may occur on gas and oil well sites in Guernsey County. That was the consensus expressed recently by various local fire chiefs. The two-pronged issue of transparency about hazardous materials and consequent preparedness of fire departments arose after a June incident in Monroe County involving a fire at an oil well site and a fish kill in a nearby creek. According to reports in various media, including The Columbus Dispatch, WKSU (a radio station of Kent State University) and Mother Jones magazine, a June 28 fire at a Monroe County oil well site destroyed trucks and enabled toxic chemicals to flow into Opossum Creek as a result of firefighters from eight departments using about 300,000 gallons of water to douse the blaze. In the immediate aftermath, a spokesman for the Ohio Department of Natural Resources said the agency could not confirm the fish kill was related to the fire. However, a subsequent report issued by the Environmental Protection Agency contended that several chemicals entered the stream during the fire, resulting in the deaths of more than 14,000 “aquatic animals.” (Media reports had claimed a kill of 70,000 fish.)
Allegations also were made that the oil company stonewalled in releasing information about some of the chemicals on site because the information was proprietary and, therefore, a secret protected by trade rights. The contention was that delaying tactics could pose a hazard for firefighters, for residents in the vicinity of a fire and for the environment. Contrary to those contentions, a group of area fire chiefs indicated they were confident they are being informed of chemicals at well sites. “The local [oil well] companies have been helpful,” Cambridge Fire Chief Jeff Deeks said. “They have been stopping by to get to know us and we’re real appreciative of that.” Deeks said it is important to know what chemicals are present at a site. “That’s always a concern,” he said. “That’s always an issue ... and not just for oil and gas companies. It could change our tactics greatly. If we find out they have xyz chemical, that could change entirely how we fight the fire. “The local companies have been helpful. They give us a Tier 2 report that lists the chemicals they have on site and each fire department gets a copy of that.” But Deeks’ department, although it has received training on oil well fires, likely will not have to contend with such fires very often. “We’re not likely to face it here in Cambridge,” he said. “That’s
jlowe@daily-jeff.com u
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something the volunteer fire departments, especially the ones to the east of us, would face although we may be called to help.” Byesville Fire Chief Ron Tatgenhorst said there are no wells in the territory served by his department. To the east is another story. The Quaker City Fire Department has responded to three or four fires at oil well sites although none has been spectacularly large, Chief Tim Eagon said. In one instance, a fire was started by a person answering a cellular telephone. The friction of the man putting the phone to his ear resulted in a static spark that caused methane in the vicinity to explode. In all of the cases, the company representatives have been helpful, he said. “They let us do our job,” he said, adding that the foreman at a given site always meets firefighters as they arrive, informing them about what has happened and providing them with any other information they may need. When necessary, firefighters have used foam as an extinguishing agent and the oil companies “have been generous on cost recovery,” he said. “They’re nice people to work with,” Eagon said. The Antrim Fire Department has assisted in fighting several oil well site fires, Chief Don Warnock said. But most of those have been at conventional wells dating to the 1970s and were caused by lighting strikes, he said. The Antrim department also has been called for emergency medical services involving smashed fingers and smashed feet. “But from the fire side, there have been no issues,” Warnock said. “I think they’re trying really hard to be good neighbors.”
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ANTON, OH — Utica Summit II will take place at Kent State University at Stark in the University Center Oct. 14 from 8 a.m. to 3 p.m. This event gathers industry experts to discuss Utica Shale development opportunity. Canton Regional Chamber of Commerce, The Repository and Shale Directories are sponsoring this second annual event. Attendees will learn what an ethane cracker can do for Ohio. Ethane Crackers can turn Utica energy into the building blocks for plastics and chemicals. “The event is specifically directed toward a larger audience than we usually attract because we’re talking mostly about downstream benefits from the Utica gas, and mainly, the possibility of increased manufacturing in chemicals and plastics because of the ethane in the Utica,” David Kaminski, Director of Energy and Public Affairs at the Canton Regional Chamber of Commerce, said. Seven speakers will lead high-level discussions about what is possible in the present and future with current technology at the forum. The lineup of speakers will discuss what Utica Shale means to manufacturing, transportation job creation and more. Speakers include Senior Economic Advisor at American Petroleum Institute Rayola Dougher, Founder of TopLine Analytics of Philadelphia Tom Gellrich, U.S. Chamber of Commerce’s Institute for 21st Century Energy Senior Vice President for Policy Christopher Guith, Center for Economic Development Assistant Director at the Maxine Goodman Levin College of Urban Affairs at Cleveland State University Iryna Lendel, General Manager for GAIN Clean Fuel Bill Renz, Vice President of HIS Chemical Consulting Anthony Palmer and International Affairs and Trade Senior Director at SPI: The Plastics Industry Trade Association Michael Taylor. “We’ve given them [speakers and attendees] an opportunity to network at the meeting and given them a business opportunity,” Kaminski said. “The people who attend the meeting come because they want to be informed, and they want to find their place. Were creating an event for them to learn and figure out where to go with the information.”
Tickets are $250 and include a continental breakfast and a lunch. The American Petroleum Institute and Energy Nation are sponsoring a free reception after Summit II. The event called Women and Energy will promote career opportunities for women in the industry. Kaminski said he hopes Summit II attendees will stay for the reception and anyone interested show as well for this first-time event.
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Linda Hall Dix Communications
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OOSTER, OH — An organic substance — tuna, beef, or egg — lettuce leaves, a drink bottle, sand, balloon, pond or creek water, a balance scale and masking tape can be the stuff of which STEM (science, technology, engineering and mathematics) education is made. This particular set of items is used for a lesson developed by the Ohio Oil and Gas Energy Education Program for teachers who attended its annual Science Teacher Workshop, this year held at the end of July at the R.G. Drage Career Technical Center in Massillon. The lessons taught during the two-day workshop were ones teachers can take back to their own classrooms to involve their students in preparing for a burgeoning industry. This particular lesson, called “It’s A Gas,” said Rhonda Reda, OOGEEP’s executive director, is designed to mimic “old plant and animal life turned into a crude oil or vapor which we know as natural gas,” created by heat and pressure over time. As part of the hands-on experiment, the balloon, set in a sunny window, will fill up, creating methane, or natural gas, Reda said. Two other experiments taught at the workshop also serve as instruction in biotic materials and geologic time. OOGEEP anticipates teachers will not only associate scientific principles with the experiments, but also career connections, Reda pointed out. “I got involved with the OOGEEP workshop because I was searching for content that we could teach in a new course being offered at Northwestern Middle School called Energy and the Environment,” said teacher Lee Kimmich. “It is important for students to understand how the oil and gas industry impacts their lives,” Kimmich said, elaborating, “The workshop provided very useful information that educators could use in their classroom to help students understand how we harvest oil/ natural gas and distribute it to consumers.” “The OOGEEP workshop provided all attendees with an entire lab book of different activities (including supplies) that they could take back to their classrooms and do with their students,” Kimmich said, adding, “OOGEEP will also refresh the lab kits as needed.”
At Northwestern Middle School, “we will most likely incorporate lab activities and other information regarding the drilling, refining and distributing processes into our Energy and the Environment course starting second semester.” One of the goals is preparation for future careers, when “the oil and gas industry is definitely an option for students as they graduate high school and begin working in a field of their choos choosing,” Kimmich said. “All STEM occupations can offer students a solid career path with many opportuni opportunities,” he said. “The exciting part about STEM education is it allows students to explore a wide variety of STEM careers while in middle (and) high school so they can discover their strengths (and) interests and build upon them if they so desire.” Rittman Middle School teacher Marilyn Peacock also demon demonstrated her interest in the topic by attending the workshop. “I teach renewable and nonre nonrenewable energy resources in my sixth-grade science classes,” Pea Peacock said. “Since I always have a lot of cur current information about renewable re resources, I thought I should learn about the most recent advances in the nonrenew nonrenewable resources,” she said. “I was especially interested to learn about fracking.” At the workshop, “we were divided into seven groups,” Peacock said, “and each group was given two lessons to teach to the entire group. All of the les lessons were hands-on and matched our science indicators.” “Two of the hands-on classroom lessons match my indicators on fossil fuels, so I plan to incorporate both of those into my lessons this year,” Peacock said, adding, “I also was given a DVD about fracking, which I intend to show to my students. “Finally, they offered to come into our classrooms to teach a lesson, and I plan to do this as well.” “(We) help coordinate guest speakers in the classroom,” Reda affirmed, connecting career chemists and geologists, for example, with related academic lessons, “not to only learn from an expert,” but to see a STEM career choice lived out.
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OOGEEP recognizes an obligation to assist schools in the era of reduced school funding — “an issue for everybody,” Reda said. “A lot of teachers are pulling (funding) for materials out of their own pockets.” “The oil and gas industry that funds (workshops and supplies)” pays for “a very large material box,” containing some reusable materials, such as pipettes and scales, which can also be used outside of OOGEEP curriculum. “We hit a milestone this year,” Reda said, with the 16th annual workshop. Over the years, teachers from all 88 counties have participated, she said. “That’s pretty significant — a pretty large outreach,” indicative as well of how the industry supports education. As part of the summer workshop, participants took an oil field tour. The free teacher workshop includes many resource materials, links to other sources, internet activities and industry speakers, as well as making available continuing education credits. Reporter Linda Hall can be reached at 330-264-1125, Ext. 2230, or lhall@the-daily-record.com. She is @lindahallTDR on Twitter. 10293847
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ORTH CANTON, OH — ET Rover Pipeline LLC announced that maps of the proposed natural gas pipeline are now available at libraries in each of the 18 Ohio counties through which the route currently passes. The approximately 810-mile natural gas pipeline is proposed to connect the rapidly expanding Marcellus and Utica Shale production areas to markets serving the Midwest, Great Lakes and Gulf Coast regions of the United States, or for export to Canada. From the Canadian hub facility in Dawn, Canada, natural gas will be supplied back to the United States for delivery to the northeastern United States, Great Lakes Region and the Canadian Provinces. The approximately $4.3 billion project will create a temporary
workforce of up to 10,000 construction jobs and an estimated $153 million in tax revenue paid yearly to the states and counties crossed by the pipeline while it is in operation. ET Rover is designed to transport up to 3.25 billion cubic feet per day of domestically produced natural gas. The list of counties and library locations in Ohio are listed below. Maps are available in either the adult reference department or public documents area of each library and are for reference only. Additional information on the project can be found on the ET Rover Pipeline website at www.energytransfer.com/ops_etrover. aspx or by calling the project’s toll-free number at 1 (888) 8443718.
Ohio county locations from starting to ending point on the proposed route: Monroe County, Monroe District County Library, 96 Home Ave. Woodsfield; Noble County, Caldwell Public Library, 517 Spruce St. Caldwell; Belmont County, St. Clairsville Public Library, 108 W. Main St., St. Clairsville; Jefferson County, Steubenville Public Library, 407 S. Fourth St., Steubenville; Harrison County, Puskarich Public Library, 200 E. Market St., Cadiz; Carroll County, Carroll County District Library, 70 Second St. Carrollton; Tuscarawas County, Tuscarawas County Public Library, 121 Fair Ave., New Philadelphia; Stark County, Stark County District Library, 715 Market Ave., N. Canton; Wayne County, Wayne County Public Library, 304 N. Market St. Wooster;
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Ashland County, Ashland Public Library, 224 Claremont Ave., Ashland; Richland County, Mansfield-Richland Public Library, 43 W. Third St., Mansfield; Crawford County, Bucyrus Public Library, 200 E. Mansfield, Bucyrus; Seneca County, Tiffin-Seneca Public Library, 77 Jefferson St., Tiffin; Hancock County, Findlay-Hancock County District Library, 206 Broadway, Findlay; Wood County, Wood County District Public Library, 251 N. Main St., Bowling Green; Henry County, Napoleon Public Library, 310 W. Clinton St., Napoleon; Defiance County, Defiance Public Library, 320 Fort St., Defiance; Fulton County, Wauseon Public Library, 117 E. Elm St., Wauseon.
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Stark sheriff running for re-election believes his
Laurie Huffman Dix Communications leagues at the OSHP now work in the area of security for a couple of the larger gas and oil companies, Chesapeake Energy and Midsream. He has been in touch with them and the three are planning on attending a safety meeting together in the near future. Another example of these kinds of commercial partnerships he is working to create and nurture includes Young Truck Sales, in Canton, where Maier’s department set up a safety display to help drivers learn more about reaction times, etc. “Some employees will also be coming in from out of state, and we are adept at laws that apply to out of state residency,” Maier said. “We are also anticipating an increased need for weighing trucks, so we have a scale enforcement team in place as well. That unit has already been going out to meet company leaders and attend safety meetings to let them know what they will have to do to comply with the law.” “We are certainly excited about an increase in gas and oil traffic and the good that will bring to our county. We also have to ensure it is managed for safety. And, I believe we’re already ahead of the curve in our preparations,” Maier closed. lhuffman@the-review.com
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tark County Sheriff George Maier, a Democrat running for re-election on the November ballot, reported he is already taking steps to ensure the anticipated growth in gas and oil activity is handled properly. One thing that the county is expected to see is more heavy truck traffic. “We will see more heavy equipment being transported that will need to be permitted by the state, the county, and maybe even the sub-divisions,” Maier said. He also believes his experience in the state highway patrol has provided him with extensive background in commercial enforcement, which will give him the edge he needs. This experience has spurred him to build a commercial enforcement unit in Stark County, and the team members have been going out since January to talk with companies about the requirements and prepare for the influx ahead of time. Maier also worked for the sheriff department in Harrison County, where a large amount of gas and oil activity has been taking place. One thing he learned a lot about while there was the bonds required by the companies to protect the county from damage to its roads. “Another thing the deputies will be more involved in is working to make sure these agreements are in place and checking them so the county doesn’t end up footing the bill when there are damages to the roadways,” Maier said. As the traffic continues to increase, county engineers across the state will also be required to have more maintenance done on the roads.“The more the truck traffic increases, it will certainly be of more benefit to the county. And, it will also increase our responsibilities in the sheriff’s office. And, that increased activity will also bring more revenue to the county. So, I will not rule out hiring more deputies,” Maier explained. “But, we will also have to work with our commercial partners and make sure the increased activity is being done safely and our roadways aren’t damaged. So, our deputies are already out talking to the gas and oil companies, building these partnerships ahead of time.” Maier also worked at the state highway patrol as a commander before becoming a sheriff in Stark County, and two of his col-
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Larry Dordea, Republican candidate for Stark County sheriff, says
Laurie Huffman Dix Communications
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and activity. I believe we need a posture that sends a message to all criminals that they will be apprehended if they break the law in Stark County. “It’s not about hiring a bunch of new people. It’s about better managing the resources we have,” Dordea said. “Stark County also needs to have cooperative policing. Law enforcement needs to network together and to bring in clergy, medical and social services agencies that can help share in the responsibility of making sure our communities are safe. We have to have an adequate work force. I am not saying we don’t need to hire more people. But, we don’t need to hire 20 more deputies because of an influx in oil and gas. We need to better manage and deploy our current manpower resources.” Dordea has 36 years of experience in law enforcement, and one of the main philosophies he has developed from knowledge gained throughout those three and a half decades is to create an atmosphere where apprehension is more likely so criminals will take their crime elsewhere. “If you don’t do that, you are leaving out a significant piece of the crime prevention puzzle,” he closed. lhuffman@the-review.com
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arry Dordea, a Republican candidate running for Stark County sheriff in the November general election, believes the gas and oil industry has already created a more robust economy in the county, which, in turn, should allow more deputies to be hired when the need arises. “The sales tax revenues are larger than anticipated. So, the natural next step would be to move some of those resources toward law enforcement,” said Dordea, who currently serves as chief of police in the Village of Hartville, located within Stark County. Dordea pointed out as new gas and oil related companies come into the area, more work will need to be done on the roads, for one thing. “We need to talk with these companies to discuss the ramifications to the infrastructure. Their goal is to create good public relations, so that gives them an interest in making sure our roads stay in good condition and are not damaged,” Dordea said. “By the same token, they could invest a good amount of the money they are making to help with the additional law enforcement needs that are also being created. They will be making a significant amount of money on oil and gas reserves, so that would be the responsible thing to do.” Another area of concern is centered around the fact that as more men and women come into the area to work at new gas and oil related jobs, the amount of domestic violence, alcohol-related and health issues will also increase. “So, with an influx in new labor, we have to create an atmosphere where they can seek help. Maybe the new companies could even hold meetings so their employees don’t feel they have no support network as they come into a new area, often without knowing anyone,” he added. Dordea also believes the county sheriff department will need to have a group of investigators on hand who are capable of following up on an increase in criminal complaint calls. “They will need to be able to collect evidence, take photos, and interrogate witnesses,” Dordea said. “If there is not an atmosphere where criminals are likely to to be apprehended, there is no deterrent to crime. I don’t believe we need an oil and gas bureau to handle the influx of people
Judie Perkowski Dix Communications
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KRON, OH — About 100 students are currently enrolled in The University of Akron’s Corrosion Engineering degree program, the nation’s first. The university began working on the program in 2010. The first graduates will complete the degree in May 2015. Many Corrosion Engineering co-ops are offered within the oil and gas industry, and many students have worked for companies such as Marathon, BP and Colonial Pipeline Co. Mary Cole, a fourth year corrosion engineering major at The University of Akron, performed data analyses on corrosion inhibitors during her time spent with her co-op at BP. Her next co-op rotation will take place in Anchorage, Alaska with BP. She said she will likely be working on inhibitors in her next rotation as well. “I’ve done two co-ops at BP in Houston working on one of their corrosion teams,” Cole said. “We do a lot of work on coating selection, making sure coatings are applied directly and making sure things are up to standards. So, I wanted to come in and try to learn about the standards. Since NCERCAMP is sponsoring this course, it’s a great chance to take it for free.” Josh Geyer, a fourth year corrosion engineering major, has a coop with Colonial Pipeline. He sees himself doing maintenance on gas and oil pipelines in the future. “My main goal of this course was to get a general understanding of different coatings, what different coatings are used for, and how
they can be applied,” Geyer said. “So, it definitely helps with the pipelines because there’s a vast array of coatings you can use. Getting to know the different kinds helps.” UA also offers students a strong basis for research within the gas and oil industry. For example, the Research Lab for Corrosion and Reliability Engineering houses a number of tanks with real industrial specked pipelines where the corrosion squad tests different corrosion mitigation techniques. “These experiments have been going on for two years,” said Annie Hanson, manager of Continuing Education and Outreach at NCERCAMP. “This is an example of a macro scale experiment, and it’s kind of what sets our program apart because we’re doing projects with real industrial pipeline.” Dr. Homero Castaneda, an assistant professor, worked with Pemex and now conducts his research in UA’s laboratories with students. The six-inch pipeline in the tanks is gathering data for pipelines’ corrosion in different environments. Castaneda explained that some corrosion is good while other corrosion is bad. Within his research, he can notify companies whether corrosion on their pipelines is good or bad and whether it should be controlled, mitigated or replaced. “We make that distinction,” Castaneda said. “We make that research happen, then they companies can invest in their assets.” Replacing pipeline is the most expensive solution to fixing a corrosion issue. Castaneda said companies can be saved millions of
only for the work experience but for the technical knowledge that it gave me. So I would attribute the university’s willingness and the corrosion program’s willingness to support undergraduate research as being at least partly responsible for getting me the job opportunity that I had the past few months.” UA’s Corrosion Engineering degree program acts as a pioneer within the industry, and the university hopes the graduating classes will have a unique edge in the job market. Students are being given the tools they need to solve problems and create solutions in their own backyard. u u
dollars if they are able to either control or mitigate the corrosion. “I think our market leach, here in Akron, is that it’s not only basic research, like many other places, and it’s not impure application,” Castaneda said. “We link the science to the application and we have proof of evidence. Different companies are coming back and they are happy to understand why these things happen and not only give a solution.” Third-year corrosion engineering major Nate Sutton works in Castaneda’s lab and has been recognized for research he has done by professional industries including the National Association of Corrosion Engineers (NACE). “The research that I worked on was very helpful in the application process to my co-op from this past summer,” Sutton said. “Not
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ADIZ, OH — Ohio CAT has announced a groundbreaking gift of $1 million to the Foundation for Appalachian Ohio. From its Cadiz location in Harrison County, Ohio CAT shared the news of its investment in FAO’s mission of creating opportunities for Appalachian Ohio’s citizens and communities over the coming five years. “Ohio CAT is heavily invested in and employs over 230 people at its five Appalachian Ohio locations,” said Ken Taylor, president of Ohio CAT. “We have seen FAO’s work to grow philanthropic resources with communities like Harrison County first-hand, and we know our $1 million will create permanent and enduring positive change in Appalachian Ohio through the Foundation,” he went
on to say. The Foundation for Appalachian Ohio was created to help the Appalachian Ohio region grow the philanthropic resources available for communities and nonprofits. With historically fewer philanthropic assets in Appalachian Ohio, the region’s communities have not had the same ability to address challenges and pursue new opportunities as communities in other areas of the state. The Foundation is focused on closing this philanthropy gap because philanthropic funds offer a flexible way for communities and nonprofits to make a difference for citizens. These funds are an indicator of prosperity and possibility. With the transfer of wealth anticipated across our region in the coming years, as well as the
influx of resources communities like Belmont County are experiencing through oil and gas development, Appalachian Ohio is at a pivotal moment for securing resources to benefit communities today and far into the future. “We are so grateful not only for Ohio CAT’s gift, but for their leadership in highlighting the importance of philanthropy in Appalachian Ohio today,” said Cara Dingus Brook, FAO’s president Ralph E. Swonger Jr. Bruce Beck and CEO. “Appalachian Ohio is at a critical time for developing 330-268-8824 330-327-5960 the philanthropic resources all of our communities, nonprofits, and brucebeck@neo.rr.com leaders need. Ohio CAT’s $1 million gift will help grow philanthro- ralphswonger@neo.rr.com py in the Appalachian communities where the company is located, including Bolivar, Cadiz, Millersburg, Youngstown and Zanesville, and it will reverberate across the entire region for generations.” Ohio CAT first became a member of the Foundation’s “I’m a Child of Appalachia” Network in 2009 with a five-year, $250,000 gift. With Ohio CAT’s support, FAO has grown the resources available to the broader region while also partnering with eight counties in growing local philanthropy focused on their own communities. Store Hours Because of Ohio CAT’s new gift, the Foundation will have much Store7 Hours Monday - Friday AM - 6 PM Saturday ............7 AM7- AM 4 PM - 6 PM Monday-Friday greater ability to support Harrison County, as well as the region’s Sunday .............10 AM -AM 4 PM- 4 PM Saturday...........7 Intersection of Rts. 43of & 183 Intersection Rts. 43 & 183 other communities and nonprofits, in their efforts to make a differ- Malvern, Sunday...........10 AM - 4 PM Ohio / 330-863-0611 Malvern, Ohio / 330-863-0611 Honor ence. Shop Online: Chow Shop Online: robertsons.doitbest.com Show robertsons.doitbest.com In Stock! For more information about Ohio CAT and the Foundation for Services Appalachian Ohio, visit www.AppalachianOhio.org. SPECIAL PRICE • Oilfield Supplies Intersection of Rts. 43 & 183 • Millwork Malvern, $ Ohio / 49 330-863-0611 $ 99 $ 99 u with thisShop ad Online: • Screen &*Glass Repair Some restrictions apply.
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T. CLAIRSVILLE, OH — The Workforce Development and Community Education Department at Belmont College will be offering several industry safety training courses. These courses will include hands on safety training in Mine Safety as well as SafeLand training for the oil and gas industry. All courses will be at the Belmont College Main Campus in St. Clairsville. The following safety courses specific to the mining industry: • Introduction to Mining is a one-week course from 6 to 9:55 p.m. Oct. 20-24. This course will provide general orientation to the coal mining industry, including mining technology, methods, machines and chain of command. Miners’ rights and responsibilities will be addressed, as well as descriptions of various local, state and federal agencies. • Mine Law and Safety is a one-week course offered from 6 to 9:55 p.m. Oct. 27-31. Any student who wishes to participate in this class must first successfully complete the Introduction to Mining
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ong disparaged as a forum for sharing silly videos and endless opining, social media channels like Twitter and Facebook are becoming increasingly important to energy company bottom lines. From conversations about hydraulic fracturing to the ongoing Keystone XL debate, social media allows companies to take the public’s pulse on critical issues while providing a new opportunity to engage interested audiences quickly and cost effectively. The changing media landscape, in which digital channels are challenging the supremacy of the traditional print outlets, means that energy companies that ignore social media are doing so at their own peril. When it comes to social media, many people immediately think about cat videos or friends “checking in” at the newest restaurant down the street. Many Facebook news feeds are filled with friends, new and old, complaining about their latest flight or sharing a photo from a recent vacation. To the extent that people use Twitter (last year, Pew Research Center found that only 18 percent of American adults do), their feeds likely are a mix of sarcasm and gossip, with the occasional splash of real news. Buried within those layers of trivial content, however, is not only a world of breaking news and current events but an opportunity to engage audiences constructively and pro-actively. For those who take the time to learn how to use these platforms to their advantage, there also is a chance to assess — and possibly influence — the public discussion around issues that are critical to a company’s success or failure. This type of engagement on social media can protect and enhance a company’s reputation, stave off and correct misinformation about its (or an entire industry’s) operations, and ultimately help preserve (or secure) a company’s license to operate in certain communities. By the Numbers: The Length, Breadth and Depth of Social Media Nearly 70 percent of U.S. adults read newspapers (either print or online), including 60 percent of young adults aged 18-24. The average American (aged 15 and up) watched television for nearly three hours per day in 2012, according to the U.S. Bureau of Labor Statistics. By contrast, less than 20 percent of American adults are on Twitter. Fewer than one in four use LinkedIn. Among adults, Instagram and Pinterest are used only by about one in six and one in five, respectively.
With such comparatively small usage, it’s easy to see why some companies write off social media to focus on traditional print and television advertising. But these numbers mask an important fact: Social media has incredibly high rates of usage by key influencers: men and women who are deeply interested in a particular subject and gather and share news on a topic as it breaks. That is why, for example, virtually every journalist — from network TV correspondents to local newspaper editors — is on Twitter. Even though usage rates may seem small among the general population, the impact and influence of social media cannot be denied. According to a March 2014 report from Shareaholic, which tracks social media and web traffic, Facebook was responsible for over 20 percent of the overall traffic that websites received (based on a review of data from more than 300,000 websites). That’s an increase of almost 40 percent since December 2013. Pinterest was the second largest social media source for web traffic referrals, driving a little over 7 percent of all traffic to the analyzed sites, representing a 48 percent increase since December 2013. Twitter was in third place, referring about 1 percent of all traffic. Once again, some of these numbers may sound small, but the number of people influenced is high. For example, a review of web traffic in April 2014 for five of the largest integrated oil and gas companies demonstrated an average of about 141,000 unique visitors that month for each site. Based on the numbers from Shareaholic, Twitter could be driving over 1,000 visitors to each respective site. More than 28,000 could be visiting these sites from Facebook referrals, representing individuals that companies otherwise might not have influenced at all had they ignored social media. Traffic referral numbers come with caveats. Overall web traffic measurements can — and often do — include multiple visits by the same individual. But even a fraction of the referral numbers listed above would constitute a significant source of potential engagement with the public. Given the ease with which information is shared on social media with other individuals, engaging these audiences also can have a multiplier effect. What This Means for the Energy Industry: It’s no secret that the oil and gas industry’s public image is not good. When people were asked their opinion, positive or negative,
of 25 major U.S. industry sectors in an August 25, 2013 Gallup poll, oil and gas ranked dead last. Only 26 percent of respondents registered a positive view. And since 2001, those numbers have not materially changed. Clearly, the industry needs to tell a better story to the American public. That it’s not doing so certainly is not due to a lack of opportunity or positive points that could be made. Construction of the Keystone XL pipeline — a major topic of interest for much of the past half decade — has enjoyed sustained popular support for several years. In fact, an April 2014 poll actually showed that approval had hit an all-time high. The top search results for #KeystoneXL on Twitter reveal a predominantly pro-pipeline sentiment. Many of these tweets emphasize the jobs that will be created from construction work, as well as positive messages related to energy security and independence. Polling data also suggest strong public support for domestic oil and gas production, even if the industry itself often is maligned. A University of Texas poll from March 2014 showed that concern about consuming oil from foreign sources was a full 10 points higher than worries about the environmental impact of oil and gas drilling. More than 70 percent of respondents said job creation is a benefit of domestic natural gas production; 66 percent and 64 percent said the natural gas boom is associated with lower costs and increased energy security, respectively. Over 80 percent of respondents supported more natural gas production, and nearly two-thirds were in favor of increased oil production. These results track with broader trends in the public mood. Unemployment and lackluster job creation were considered the top problems facing the United States, according to a May 2014 Gallup survey, whereas the environment and pollution tied for the least important among 13 issues presented. A separate Gallup poll that was conducted just one month after the Deepwater Horizon rig exploded in the Gulf of Mexico in April 2010 showed that Americans still supported offshore drilling. One year later, in 2011, approval had grown 10 points, and a year after that — according to a Pew poll — support had risen another five points. These opinions have not changed much over the years, which indicates there are opportunities the oil and gas industry can pursue to promote its value to the economy. Executives at some of the industry’s larger companies deserve credit for investing in campaigns to tell the story. However, despite decades of effort and hundreds of millions of dollars spent on television and print ads, the industry’s reputation still is poor, suggesting that new strategies should be considered. Steve Everley (@saeverley) serves as team lead for the nationally recognized Energy In Depth program, a public education program on hydraulic fracturing and tight resource development. He recently was ranked among the top 10 oil and gas professionals on Twitter. steve.everley@fticonsulting.com
Amadeus Smith Dix Communications
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he Mahoning County Education Service Center (MCESC) has developed new Science Technology Engineering and Math (STEM) curriculum and will open a new academy in fall 2015. A state STEM subcommittee, made up of representatives from the Ohio House of Representatives, Ohio Senate, Ohio Department of Education, Ohio Department of Development and Ohio Board of Regents, approved the MCESC’s application to start the school. This isn’t the first development in STEM education at MCESC, however. Ron Iarussi, superintendent for the MCESC, said the center has been working with area school districts to develop STEM education at every level. “We’ve been having this discussion about STEM for quite a long time,” Iarussi said. MCESC has already provided professional development in STEM education for kindergarten- through eighth-grade teachers and began STEM initiatives at the elementary and middle school levels. Five school districts in Mahoning County have partnered with MCESC in the STEM initiative: Canfield, Struthers, Austintown, Poland and Jackson-Milton. At the fundamental level, the new curriculum will teach problem solving through cooperative and project-based learning. Iarussi said districts use methods such as Lego learning at the elementary school level. The setup at the middle school level (seventh and eighth grade) gives teachers a better way to plan and execute STEM course work. “Member schools are now implementing self-contained classrooms,” he said. In the self-contained classroom, two teachers work with one group of students (class size is typically in the upper 20’s). One teacher focuses on math and science, the other on language arts and social studies. Iarussi said the base skills learned through STEM can be applied in all subjects and the two teachers can work together to develop STEM lesson plans and projects. Students must apply to be in the class. Iarussi said acceptance into the class is not based on grades. Rather, administrators and faculty look at attendance and effort. The new STEM school, Valley STEM+ME2 Academy, will be
for ninth- and 10th-graders and will have a focus on manufacturing. MCESC worked with several manufacturers around the county to develop the curriculum. Iarussi said giving the students the option to matriculate the academy early on in their high school career will allow them to take the necessary courses if they choose an alternative college or career path later on. Each grade level at the academy will have about 75 students. While the MCESC will hold spots at the STEM school for students coming from the partner districts, the academy will be open to all districts. A location for the school has not been determined. @ASmith_AR on Twitter
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t is important to “plan while you can”! In other words, if you put off planning and don’t do it, many things can happen to your oil and gas interests which planning would have protected. Let’s look at this planning from the prospective of how we can protect your wealth, preserve it and make it grow. Wealth can be difficult to accumulate, and really even harder to preserve. This type of planning can be called legacy wealth planning, because it describes the things we need to think about to preserve your wealth from risks when passing it on to your loved ones at the time of your death. The philosophy of this approach is not just about how much is left for your loved ones, but the meaning, impact and use of the inherited wealth later for them. Let us first look at what makes it difficult for someone to preserve wealth. One cause of asset erosion is the federal estate tax. The estate tax used to be more of a factor for many Americans than today, as the amount you can pass on at death free of tax is now $5.34 million per person. Ohio did away with its estate tax for people dying after January 1, 2013. If you have a net worth in the $5.34 million range or greater, congratulations but the bad news is that the government is waiting to collect their share of the excess over that sum. Income taxes can be another great risk to inherited wealth. Baby Boomers received billions of dollars of inherited wealth in the form of IRAs and 401k’s and annuities. They will pass on more billions of retirement accounts when they die. In addition to the estate tax, income taxes (federal and state) will erode that wealth either immediately or each and every year as money is withdrawn. Another risk to accumulated wealth and its protection are lawsuits. In 2007 there were approximately 300 million Americans and they filed over 107 million lawsuits! People who have been able to accumulate wealth are prime targets for those who are litigation minded by nature or who have scams to run. The elderly are well known targets for such scam artists. The remarriage of a surviving spouse that then ends in divorce or death, puts the surviving spouse’s estate at risk of claims by that spouse. This puts the children from the first marriage at risk. Also, a new spouse can exert such undue influence that the surviving spouse may end up moving the estate of the first spouse to die, thus depriving the children of their eventual inheritance.
Then there are the habits of the people who will be receiving inheritances from you. Not everyone is a good money manager. Sudden, unearned wealth for those not accustomed to extra income or having “money to spare” can be too much for them to handle. Fortunes can be lost due to poor management of assets or frivolous spending. When you leave a direct inheritance to someone who doesn’t handle money well, it may go down the drain in a hurry. Some loved ones have other issues, such as special needs due to mental or physical impairments; learning disabilities; troubled marriages; or substance abuse. If talked about these issues can be taken care of in advanced. Also, the high bankruptcy rate threatens many peoples inheritances because an inheritance that vests at the wrong time is lost as part of the bankruptcy estate to be paid to the bankrupt heir’s creditors. Some things are more valuable than money. Things such as, family history, lessons learned, values and virtues important to parents, grandparents, and other ancestors can be lost if not preserved and communicated in some way to your loved ones. Inherited wealth should be stewarded so as to honor and promote those values. Wealth transfer planning without thinking about the meaning of the inherited wealth to the heirs, what the heirs will do with the money, what the money will do to their lives, and how they will live their lives after the inheritances, are all affected by the manner in which an estate plan is designed. Legacy wealth planning should be part of your estate planning, and can be if you take the necessary steps to identify such issues that may affect the wealth you have accumulated as you pass it on to your loved ones. Once the issues are identified and the concerns understood, then there is a foundation of values upon which to build the estate plan. Skillful lawyers who are masters at trust design and other estate planning tools can help you craft a Legacy Wealth Plan that will work for you. It involves family dynamics not just taxes and probate. Simple wills and powers of attorney can’t always meet the challenges. It’s important that you counsel with an attorney whose practice concentrates in these areas of estate planning. If you would like to learn more about protecting your assets (including oil and gas interests), I invite you to go to our website at www.fmcclurelaw.com and find out more about asset protection, legacy planning and how you can attend one of our free workshops.
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just finished my second sale of mineral rights on some property. It was a large tract and the money was right so it was sold. Now, was I right or was I wrong in bringing this mineral property for sale, only time will tell. But, for me, it was the thing to do. There was a willingness to sell and like the leasing that has gone on in the last several years, the purchasing of minerals is winding down in areas not expected to be in the initial round of drilling. The “fairway” as it is described within the business. I know of several others who are farther east who sold their entire property and some who picked the surface back up once it was leased by others who then sold off the minerals. Why? Because these people, in some cases, were able to make quite a profit on their speculation. Not in all cases, but enough to make it worth the gamble. I know I have spoken of this before, but it really comes down to the individual and whether or not he feels he will be drilled in this first round. Factors like monetary need, age, situations relating to holding on to the farm for the next generation (and whether or not they will even want to be back on the farm) will all play into what a person would do if offered a huge amount of money to sell. Like the leasing, do I do it or do I hold out for more money? If I do, do I then sell the land? I have spent many years on the farm. I love it and wouldn’t change anything, but the kids got an education and have moved off. Selling the minerals raises a lot of money and can make the next several years much more comfortable. True. But, I no longer have leasing money. I may miss a big score on a well. I may never get a well.
My advice (and take it for what it is worth-free) is to take your time. Consult your family. Consult a financial planner, and no matter what, use an attorney with all these matters. If for nothing else, your attorney will know what needs to be done to complete this transfer. He (or she) can act as the escrow agent and payee for all matters relating to title and the sale and recording of all documents. Making sure you get what you want recorded in a timely fashion and maybe be a consultant on what others have signed or needed in the documentation to protect you the seller. Now, when was the last time you had an oil guy tell you to take it to an attorney? Not often I would assume. But, as we have often spent many years in this business and are well versed in our business and the ins and outs of leasing, rights of way and the other associated agreements, not many of us have spent years (or even decades) doing deed transfers and all the associated documents therewith. It is in our best interests that the seller is happy and the purchaser is happy with the deal because some day that property may be part of a drilling unit and it makes it so much easier to get along. And, don’t believe you are the first to have to make this decision. When coal was becoming king in the late 19th century, many tracts were bought up to create the reserve to entice the money from Wall Street to invest in coal mines here in Ohio. Without that many of the tracts, or former tracts would not have existed here. Many of the towns, businesses, or even people would not have been here. Growth for our area had its spurt a hundred years ago. Let’s hope this time we have enough people with like minds to make it happen again.
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OLUMBUS, OH — Oil and gas production in eastern Ohio’s emerging shale oilfields continued to increase in the second quarter of the year, according to a new report from state regulators. A total of 2.5 million barrels of oil and 88 billion cubic feet of natural gas were produced from a little more than 500 horizontal wells in April, May and June, according to the Ohio Department of Natural Resources. The second quarter results were up from 1.9 million barrels of oil and 67 billion cubic feet of natural gas produced during the first quarter. Three wells in Seneca Township in Noble County reported the highest oil production in the state, while wells in Monroe and Belmont counties reported the highest natural gas production. An industry group said the results were in line with its expectations and were “very encouraging.” “More wells being drilled and are being put online due to increased infrastructure,” Mike Chadsey, spokesman for the Ohio Oil and Gas Association, said in a released statement. “The second
quarter production numbers continue to show that Utica development has room to grow and that there is more ahead of us than behind us. ... [Production] continues to prove that the Utica is a gas play.” Marc Kovac is the Dix Capital Bureau Chief. Email him at mkovac@dixcom.com or on Twitter at OhioCapitalBlog.
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TARK CO. —- A number of indicators outlined by Stark County Commissioner Janet Weir Creighton, a Republican candidate from Canton running unopposed for re-election on the November ballot, are convincing the entire threemember board of commissioners that oil and gas activity is indeed beginning to impact the county in a positive way. The first is a significant increase in sales tax revenue. The second indicator is an increase in bed tax, which includes taxes on hotel and motel stays. The third is an increase in building permits across the county. “Most of the oil and gas activity is southeast of Stark County. But, we are the beneficiary of some of the new businesses coming into the area, as well as new employees and their purchasing power,” said Creighton. As an example, Creighton mentioned two large companies recently established in the area: Baker Hughes, in Massillon, and Chesapeake Energy, in Louisville. “Naturally, the employees and business leaders are going to gravitate to a larger city in the area. They can probably get a ‘bigger bang for their buck’ that way,” Creighton added. “We’re cognizant of this new influx, and we only hope it continues to come our way and that we continue to receive the fruits of their labor.” Creighton also pointed out a lot of oil and gas activity at county levels in Ohio consist within the government buildings themselves, such as in building departments when new construction is about to begin. She said one reason Stark County will fare well in this area as the influx continues is due to the fact that much of the services and forms needed may be found and filed online. She cited Belmont County as an example because they are not computerized and are having difficulty keeping up with the stepped up pace from the large amount of oil and gas activity there. “Increased revenue and activity are a great problem to have.
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But, you do have to be sure you’re ready for it,” Creighton said. “We are prepared. And, my fellow commissioner, Richard Regula (R-Navarre), also stays on top of the industry and has good relationships with the people involved. So, our lines of communication are open.”
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tudents in Buckeye Career Center’s new Energy Operations program received gifts from Don Young of Beaver Excavating and Charlie Dixon from the Ohio Oil and Gas Energy Education Program – (OOGEEP). Students were given a hard hat, safety glasses and safety vests. Josh Harris, instructor of the new program expressed his gratitude during the presentation, “I would like to thank you for your generosity toward our program and the opportunities that you have afforded our students. 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, student education, firefighter training, industry training, workforce development, research, landowner and guest speaker programs. Pictured are the students in the program at Buckeye Career Center in New Philadelphia.
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David Wigham Attorney
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OOSTER — On August 28, 2014, Ohio’s Court of Appeals for the Seventh Appellate District, the district including most of the counties experiencing significant Utica Shale development, issued its fourth important ruling interpreting Ohio’s Dormant Mineral Act found at R.C. 5301.56 (“ODMA”). In Eisenbarth v. Reusser, 2014-Ohio-3792, the Court of Appeals held, by a 2 to 1 majority, that: 1) oil and gas leases are “title transactions” for purposes for determining whether a savings event has occurred under the ODMA; 2) the 1989 ODMA requires a fixed, rather than a rolling, 20-year look-back period; and 3) owning the executive lease rights does not entitle the surface owner to the entire lease bonus payment. To briefly summarize the ODMA, the statute was originally enacted effective March 22, 1989, and was amended on June 30, 2006. Its purpose is to eliminate “dormant” or unused mineral interests in favor of the current surface owner. The 1989 ODMA provides that where the severed mineral interest owner has not utilized its minerals as specified in the statute for a period of at least 20 years, the mineral interests are deemed abandoned and the title vests back to the current surface owner. Importantly, the 1989 ODMA is selfexecuting, meaning that the severed minerals in question will be automatically abandoned if no activity related to the minerals has occurred. The only subsequent action that surface owners need to take is to file a lawsuit to obtain a court order declaring the minerals to be abandoned and returned to the surface owner. Under the 2006 ODMA, surface owners must first file a serve a Notice of Abandonment on the severed mineral owners before proceeding with the lawsuit seeking abandonment. Although infrequently used previously, the ODMA has become a touchstone statute to the disposition of hundreds of lawsuits between surface owners and severed mineral interests vying for lucrative bonus payments and royalties related to Utica Shale development. The prior three important ODMA decisions issued by the Seventh District Court of Appeals are: 1. Dodd v. Croskey, 2013-Ohio-4257, holding primarily that a mineral interest owner’s filing of a preservation affidavit after notice of abandonment acts to “cure” prior activity with respect to the mineral interest, rather than only giving a right to “contest” the abandonment. 2. Walker v. Noon, 2014-Ohio-1499, primarily holding that the 1989 Act is self-executing, meaning that, where nothing had been
done with the minerals in the previous 20 years, the minerals automatically returned to the surface owner, and the 2006 amendment could not be applied retroactively, and did not affect abandonments which occurred prior to June 30, 2006, the effective date of the amendment. 3. Schwartz v. Householder, 2014-Ohio-2359, primarily holding that held that a surface owner does not need to first implement the notice provisions of the 2006 DMA before proceeding with a legal action under the 1989 DMA. The most significant aspect of the Eisenbarth decision is the Court’s interpretation of the 1989 ODMA to require a static rather a rolling 20-year look-back period. This means that surface owners seeking an abandonment of severed mineral interests must calculate the 20-year look-back period from March 22, 1989 (plus a three-year grace period), rather than using any rolling 20-year period beginning with the latest savings event and ending any time between March 22, 1989 and June 30, 2006. This ruling severely limits the number of potential surface owner cases in which abandonment of minerals under the 1989 ODMA could be obtained, because it restricts the look-back period for savings events to those occurring prior to March 22, 1969 and eliminates a 17-year block of time during which mineral rights could have been abandoned under the 1989 ODMA between 1989 and 2006. The Eisenbarth ruling is almost certain to be appealed to the Ohio Supreme Court, although the Ohio Supreme Court is a Court of discretionary jurisdiction and is not required to accept jurisdiction to hear the case. Eisenbarth also illustrates the volatile nature of the current state of Ohio case law interpreting the ODMA, and the risk involved when analyzing how to proceed with abandonment actions. Surface owners should only seek counsel from experiencing oil and gas attorneys who are knowledgeable and up to date on the current changes in Ohio’s oil and gas law. 4815-0440-9630, v. 1 David J. Wigham is a second generation oil and gas attorney at the law firm of Critchfield, Critchfield & Johnston, in Wooster, Ohio, with more than 20 years of experience in the industry. He is also the current chairman of the Natural Resources Committee of the Ohio State Bar Association.
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WEST BRANCH STUDENTS PREP FOR STEM CAREERS WITH ENGINEERING PROGRAM Amadeus Smith Dix Communications
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or years, West Branch High School has been preparing students interested in engineering for careers in the field. West Branch, like other high schools, offers a physics course. The course at West Branch is project-based and gives students an introduction to the environment of STEM careers. Kevin Buckley, who teaches the course, said the students work as a group and in pairs to research and complete several projects throughout the year for a physics competition held at Youngstown State University. In fact, the senior course is a college level course as students can earn dual-credit through a partnership between YSU and West Branch. Buckley said the students start off brainstorming ideas as a group for each project. Then, working in pairs, they’re responsible for designing and building things such as gliders and boats, both propelled by wound up rubber bands. Buckley said project work, which is a key component of his physics classes, helps students decide if they’re interested in STEM careers. “Once we get started with the projects, if the student isn’t interested in the work, it’s clear that they probably won’t want to end up in a STEM job,” Buckley said. For those students who take an interest in that kind of work, especially the engineering side of things, there is a three-year
engineering program offered at the school. Rodger Sharp, who oversees the program, said as students progress through the program they are given more freedom to problem solve and work independently. In the early goings of the first two years, the work is teacherled. In mid-September, a group of students were researching the impact of technologies used in different wars. Students who have advanced to levels with limited teacher involvement use Inventor, a 3-D drafting program, to design things such as motors and small aircrafts. Sharp said Inventor is widely used in engineering programs at the college level and throughout the industry. “When they leave here, they’re more than prepared,” Sharp said. One of the seniors’ first projects for Engineering 3 was creating biodiesel . Alec Shopfer, 18, said the group mixed vegetable oil with potassium hydroxide and methanol. The students heated the substance to 130 degrees Fahrenheit and then let it set over two days. “You have to let it sit to separate the glycerine,” Shopfer said. The seniors will also be designing and building a pulse motor, which, unlike AC and DC motors, works on repulsion. “It’s a pretty difficult project,” Sharp said. @ASmith_AR on Twitter
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OLUMBUS, OH — She says she is a “relative newbie” at the Ohio Oil & Gas Association, but Penny Seipel’s extensive background in politics, government affairs and policy work dating back to her college days at Ohio State University, where she graduated with a Bachelor of Arts in Political Science, has given her the knowledge and experience to effectively represent the gas and oil industry. “My first job at the Statehouse was as a page in the Ohio Senate. I was in college at the time and it was a paid position. Pages are generally tasked with administrative duties like answering phones, running errands, and generally just doing whatever to be helpful and ensure the smooth running of the legislature. “After graduating, I pursued a career in government affairs working for elected leaders at the statehouse and also volunteering or working on campaigns as a paid staffer,” said Seipel. “I worked in the Senate President’s office as an administrative assistant. I left the job for about a year to participate in a study-abroad program for credits toward a second degree. After I came back to Ohio, I was hired as a campaign manager for a candidate in northeastern Ohio. After the campaign, I was hired at the Ohio House of Representatives for State Rep. Bill Seitz, who represented parts of the Cincinnati area and who was appointed chairman of the House Civil and Commercial Law Committee. After I left the Ohio House, I worked for an organization that promoted education issues. I’ve also worked for an independent lobbying firm, which was at the
time, the largest in the state. Then Auditor Mary Taylor offered me a position, and when she and John Kasich ultimately won the race for Lt. Governor and Governor, I interviewed at the Ohio Environmental Protection Agency as a legislative liaison. I was working for the Ohio EPA when I interviewed for vice president of community affairs at OOGA. My position has since been modified to vice president of public affairs.” She is a registered lobbyist and one of four women on the 11 person staff at OOGA’s office in Columbus. “Working at OOGA is by far the most challenging and exciting position I’ve ever had ... That being said, I’ve enjoyed every job that I’ve held, but each for very different reasons. Working at the Ohio EPA challenged me mentally and really started my understanding that having environmental regulation didn’t mean that all industry and commerce across the state had to be halted. It was all about balancing business development and the environment, and it helped lay the foundation for my career today. “If you ask most elected officials why they seek public office, they will likely say they wanted to serve the people of their districts. Oftentimes, for the people working in the office of those elected officials, they have the same passion to serve and make a difference in their communities, they simply don’t want to be in the spotlight to do it. That is why I began working in government affairs and continue to do so today.” As OOGA’s Vice President of Public Affairs, Seipel’s position includes managing all internal and external communications for
OOGA’s members, including industries directly related to the gas and oil industry and some that are not, such as schools and farms. “My job is to gather and share information with communities affected by the gas and oil plays. It is my responsibility to relate accurate information to the public at meetings, seminars, conferences, etc., through speaking engagements and in OOGA’s monthly newsletter, The Bulletin,” said Seipel. “You don’t have to be a member of OOGA to get The Bulletin. Just go online to our website. It is free and available for public perusal.” She said the gas and oil industry is complicated. There are so many segments of our lives that depend on it. It’s not just drilling a hole in the ground searching for gas and oil, and it’s not just about gasoline for your car or jet fuel for planes. It’s about so many other industries that rely on gas and/or oil to run their business, manufacture their products, provide a power source for homes and businesses. “When I joined OOGA in 2012, the industry was on the cusp of all the changes that shale development was going to bring to Ohio. It was incredibly exciting prospect to be part of an industry that was bringing jobs and economic prosperity to the state. I was fortunate to be hired to work for OOGA. I have the opportunity and responsibility, in conjunction with the rest of the OOGA government affairs staff, of representing thousands of our members who need to make sure they have a voice in developing public policy. Our membership ranges from the smallest family-run businesses to large companies that are publicly traded.” Seipel said even with today’s technology, drilling for gas and oil is still a risky business. Millions of dollars are invested before the drill even hits the ground. And, a lot of money is going into research and development to improve the technology already in place to make drilling easier, faster and safer. It is also her job to keep up with local, state and federal laws. What’s pending in the statehouse, how will it affect the gas and oil industry, and to keep her finger on the pulse of the local citizenry. “You can ‘t represent people unless you understand their challenges and what they face every day.” Seipel said she grew up in Columbus. “My family has lived in central Ohio for generations. My dad and all of my uncles actually graduated from the same grade school and high school that my sister and I graduated from. “My husband’s name is Ray and he is from Columbus. He is also a graduate from Ohio State University, but at the time, we didn’t know each other. We didn’t meet until 2010 ... We are fortunate to have quite a bit of family in Ohio and surrounding states.” She said she has been coming to Cambridge for the Guernsey Energy Coalition meetings and other events for the last year and a half and now has three favorite places — Kennedy’s Bakery, The Forum and The Arena. The Ohio Oil and Gas Association was founded in 1947 and today is a trade association with over 3,300 members involved in the exploration, production and development of crude oil and natural gas resources within the State of Ohio. OOGA represents its membership before the Ohio General Assembly, state agencies and the general public. JPerkowski@dixcom.com
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GE OPENS FUEL CELL FACILITY IN UPSTATE NEW YORK ALTA, N.Y. (AP) — General Electric Co. is opening a new facility north of Albany devoted to the development of fuel cells. The facility in Malta opening on Tuesday will be devoted to the development of high-efficiency fuel cells that take in natural gas. GE believes these so-called oxide fuel cells could generate from one to 10 megawatts of power. The company says it has reached a deal with Hudson Valley Community College to install and operate a smaller, 50 kilowatt fuel cell generator. GE officials say the installation at the community college brings their low-emission fuel cell technology a step closer to the commercial market. Hudson Valley college officials say the deal will open the door to new career fields for the students.
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est reserves of natural gas trapped in deep shale rock. Commonly known as fracking, shale gas mining requires pumping large quantities of water mixed with chemicals into deep wells to break apart shale rock. The U.S.-based institute said in a report issued Tuesday that 38 percent of the world’s shale gas is in areas with scarce water. China, Argentina and Algeria have the world’s biggest shale gas deposits. TRANS ENERGY TO RESTORE W.VA. STREAMS IN AGREEMENT HARLESTON, W.Va. (AP) — Oil and gas company Trans Energy Inc. has agreed to restore portions of streams and wetlands in West Virginia that were damaged by natural gas extraction activities. The U.S. Department of Justice says the restoration is part of a settlement with the U.S. Environmental Protection Agency and the West Virginia Department of Environmental Protection. Federal officials say the 15 sites in West Virginia were polluted by Trans Energy’s unauthorized discharge of dredge or fill material. The company also will pay a $3 million to be divided by state and federal governments. Officials allege that the company impounded streams and discharged sand, dirt, rocks and other materials into streams and wetlands without a federal permit. The agreement would resolve both federal and state violations. It is subject to court approval.
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GAS CONVERSION PROJECT IN PIKE CO. GETS TAX BREAKS OUISVILLE, Ky. (AP) — A project to build a facility that would convert natural gas to synthetic diesel and other products in Pike County has received approval for $18 million in state tax incentives. RCC Big Shoal seeks to build a plant that would use natural gas to create synthetic fuel, base oils and lubricants. Several local officials including Kentucky House Speaker Greg Stumbo and Pike County Judge-Executive Wayne Rutherford attended an announcement of the tax incentives Thursday in Louisville. Rutherford says the planned project is good news for a county TEXAS HAS MORE THAN 100 NATURAL GAS FUELING SITES where coal production continues to decline. The plant would draw USTIN, Texas (AP) — Drivers who rely on natural gas to natural gas extracted from Pike County and other nearby sources. power their vehicles have more places to fill up in Texas. The first phase of the project would cost nearly $200 million and The Texas Railroad Commission on Monday announced the employ about 30 people upon completion. state has 104 refueling stations, compared to 69 a year ago. Commission officials say the 60 public fueling stations and 44 WATER SHORTAGES CRIMP CHINA SHALE GAS PLAN private stations serve more than 7,100 natural gas vehicles. AuEIJING (AP) — A research group says more than 60 per- thorities also say Texas has more vehicles running on natural gas cent of China’s vast shale gas deposits are in regions with than on any other alternative fuel. scarce water resources, complicating plans by the energy-hungry Nearly 70 additional natural gas fueling stations are expected to country to tap the natural gas. open next year across Texas. The World Resources Institute says China has the world’s larg-
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State Representative Brian Hill Ohio 97th District
I
t is undeniable that Ohio is playing an extremely important role in the future energy needs of the entire nation. I am proud to represent a district which is so rich in natural resources and can participate so greatly in the oil and gas industry. The shale play is bringing much needed economic activity to the region. A goal which I believe that all Americans and Ohioans should embrace is to become energy independent. Becoming less reliant on foreign energy makes our nation safer and more economically secure. With so much political and economic uncertainty in the Middle-East we must be prepared domestically, sooner rather than later. Whether we are filling up our cars and trucks with gasoline or heating our homes in the winter we should strive to no longer be
at the mercy of foreign energy. In addition to the energy created by the oil and gas industry, thousands of new jobs have been created. Fortunately, we are finding that an increasing amount of the new jobs are being filled by local workers. It is promising to know that Ohio workers are so highly skilled, educated, and motivated to fill these good paying jobs. Going forward we need to continue to encourage job creation in oil and gas and resist the urge to overregulate the industry. I am honored to come to the statehouse each week to represent the hard workers, businesses, and local governments in my district as well as around the state. I fully believe that Ohio’s energy outlook is strong and I am excited for the new opportunities to come.
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EW PHILADELPHIA, OH — Kent State University at Tuscarawas, in partnership with Stark State College, ShaleNET and Ohio Means Jobs (The Employment Source), is offering a floor hand course beginning Nov. 3. This three-week class will run Monday through Friday from 8 a.m. to 4:30 p.m. at the Science and Advanced Technology Center at Kent State Tuscarawas, 330 University Dr., NE, in New Philadelphia. A floor hand operates well drilling and service rigs. They also assist in the connection and disconnection of the pipes and with general maintenance. This class will teach students the basic skills needed and provides required credentials to get an entry level position in the oil and natural gas industry. These are labor intensive jobs; most work schedules will be 12-hour shifts for 14 consecutive days. The 110-hour program includes topics such as an overview of oil and natural gas industries, basic rigging and well control, well production, rig components and electrical systems, pressure and forces, hydraulics, and spill prevention. Industry-recognized certifications awarded as part of the program include IADC Rig Pass/ Safeland/Safe Gulf, Heartsaver First Aid CPR AED, rough terrain forklift, aerial work platform and defensive driving. A valid driver’s license is required. Each candidate must complete an application, have a physical,
pass a urine drug screen and pass a criminal background check. For more information, or to register, please contact the Office of Business and Community Services at Kent State Tuscarawas at 330-308-7434. Submission deadline for application materials is Oct. 24 at 5 p.m. Scholarship funds may be available for veterans and unemployed Ohio residents through Americas Natural Gas Alliance (ANGA) and other sources.
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Michael James Barton ARTIS Research
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resident Obama has called natural gas “the bridge fuel that can power our economy.” He’s right. The natural gas industry is driving economic growth. Natural gas production supports 2.8 million domestic jobs and adds $385 billion to our economy annually. Further development could add another 1.4 million jobs by 2035. However, there’s a real risk that over-regulation will prevent this sector from reaching its full potential. Despite his public comments, President Obama has failed to enact smart reforms. Natural gas production increased on private and state-held lands between 2009 and 2013, but dropped on federal lands. That’s because the approval process for new drilling operations is slow and costly, far beyond the reasonable process to examine any environmental impacts. At least 12 different federal agencies are involved in the rule-making process governing fracking. In a number of states, including New York, Pennsylvania, and Texas, some towns are trying to stop fracking altogether through arbitrary bans and moratoriums. These lock outs are part of the broader effort to control carbon emissions and stave off global warming through unelected regulators. Importantly, these regulators — often sympathetic to the environmental activists — are trying to justify their power grab by claiming global warming is fueling extreme weather events. This spin is unpersuasive. Environmentalists asserted that global warming caused the severe hurricane activity in both 2004 and 2005. Environmentalists later gave a reason for the very quiet subsequent hurricanes seasons: global warming. They can’t have it both ways. President Obama recently declared that “in a world that’s warmer than it used to be, all weather events are affected by a warming planet.” This year’s National Climate Assessment asserted that “human-induced climate change has already increased the strength of some of these extreme [weather] events.” But the claimed connection between global warming and weather
doesn’t hold up. The Intergovernmental Panel on Climate Change explains that “there is limited evidence of changes in extremes associated with other climate variables since the mid-20th century.” The report goes on to demonstrate that the number and severity of droughts in central North America has actually decreased since 1950. Climate experts say that California’s current drought, while severe, is very similar to its 1976-1977 draught and is not the result of global warming. Similarly, Roger Pielke Jr., a University of Colorado professor, found that the number of powerful hurricanes that make landfall has declined in recent years. Likewise, tornado damage has decreased since 1950. Even if definitive evidence linking global temperature gains to extreme weather events does emerge, natural gas production should be seen as the solution, not the problem. Gas is a much cleaner-burning than coal, so expanding production can actually help curb global climate change. The U.S. Energy Information Administration estimates that natural gas emits only half as much carbon dioxide and one-third the amount of nitrogen oxide as coal. Vehicles powered by natural gas produce 30 percent less greenhouse gas emissions than those using gasoline or diesel. Freeing up natural gas production throughout the country would hasten the economy’s transition to this cleaner-burning fuel source and help reduce carbon emissions. Natural gas has already helped our economy and environment immensely. National lawmakers need to take concrete steps to end the de facto government harassment of energy employers who are creating American jobs. It’s time for our government to start supporting an industry that’s already demonstrated its incredible value to America. Michael James Barton is the Director for Energy at ARTIS Research and previously served as the deputy director of Middle East policy at the Pentagon.
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OOSTER, OH — A manufacturer of custom products for the gas and oil industry has been granted a tax incentive to expand its facility along Columbus Road south of Wooster. Dragon Products, along with MG Real Properties, the owner of the 3310 Columbus Road property, will receive a 50 percent tax abatement on the 20,000 square-feet addition. Shawn Starlin, a project manager with the Wayne Economic Development Council, said Dragon Products manufacturers mainly customize equipment, like pumps, rigs, trailers, storage tanks and other products, used in well production, and it services the equipment it builds. A few years ago, Dragon Products purchased Collier Well, and it has been expanding. The new structure will be used to store raw materials and finished goods and provide space for some light assembly, Starlin said. The cost is estimated to be $600,000. Over the next three years, the company has agreed to hire eight full-time workers, and the total of the new payroll will be around $265,000, which is higher than the average hourly wage in the county, Starlin said. Dragon Products has 23 locations in the United States and Canada. It employs 41 people at the Wooster location, and it has a $1.2 million payroll. Commissioner Ann Obrecht said she is glad the company decided to expand here, given it had other options. Even with the tax break, the company will still be paying more in
taxes, Commissioner Scott Wiggam said. The Wooster Township trustees approved of the enterprise zone agreement with the companies, Starlin said. “It’s a great project with a company that has loads of potential,” Starlin said. The term of the abatement is 10 years. Reporter Bobby Warren can be reached at 330-287-1639 or bwarren@the-daily-record.com. He is @BobbyWarrenTDR on Twitter.
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October
20
October
4
October
4
October
11-12
33rd Annual Probate Practice Seminar, Squaw Creek Country Club, Vienna, Ohio. Featured speaker is Jeff Kern: Shale Valuation Estates. For more information go to trumbullprobate.org Thorla-McKee Well 200th anniversary celebration, Caldwell, Ohio, 10 a.m. to 6 p.m.
OOGEEP October Firefighter Workshop, Wayne County Fire & Rescue Training Facility, 2311 South Milbourne Rd., Apple Creek 44606. Go to http://oogeep.org/event/ oogeep-responding-to-oilfield-emergencies-training-workshop-4/ for registration information.
October
21-23 November
1-2
November
3-21
SPEE Presents: Monograph 3 Short Course. Guidelines for the practical evaluation of undeveloped reserves in resource plays, 8 a.m. to 5 p.m. at Charleston Marriott Town Center, Charleston, West Virginia. SPE Eastern Regional Meeting, Charleston Civic Center, Charleston, West Virginia. “Ramping Up In Appalachia” presents a comprehensive technical program and exhibition of more than 65 companies, both focused on the region’s unique technical challenges. OOGEEP November Firefighter Workshop, Wayne County Fire & Rescue Training Facility, 2311 South Milbourne Rd., Apple Creek 44606. Go to http://oogeep.org/event/oogeep-responding-to-oilfield-emergencies-training-workshop-5/ for registration information. Floor hand training for jobs in the oil and natural gas industries, at Kent State University at Tuscarawas, in partnership with Stark State College, ShaleNET and Ohio Means Jobs. See www.tusc.kent.edu/bcs for course application.
October
Utica Summit II, Kent State University at Stark, North Canton, 8 a.m.-2 p.m.
November
Eastern Unconventional Oil & Gas Symposium, University of Kentucky. Go to http://www.euogs.org/ for more information.
October
Penn State Natural Gas Utilization Conference, Hilton Garden Inn, Canonsburg, Pa. Register at www.2014Utilization.org.
December
2014 Oilfield Expo, International Exhibition (IX) Center, Cleveland.
14
14-15 October
19-21
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2014 Interstate Oil & Gas Compact Commission Annual Conference, Hyatt Regency, Columbus, Ohio. Go to www.http://iogcc.publishpath.com/generalinformation1 for more information.
ORTH CANTON, OH — Industry representatives are invited to “Energy Nation, Women in Energy Reception,” Oct. 14 at Kent State University Stark. American Petroleum Institute will host Energy Nation — Women In Energy reception immediately following the Canton Regional Chamber of Commerce’s Utica Summit II at Kent State University at Stark in North Canton. The reception is free and open to anyone who’d like to network, learn more about Energy Nation and about workforce opportunities for women in the oil and natural gas industry.
5-7
3-4 March
11-13
2015 OOGA Winter Meeting, Hilton Columbus at Easton.
Register by contacting Katy at RSVP@energynation.org Utica Summit II is an event that brings people together to talk about what can be done to fuel transportation across the United States with Utica energy, to build sustainable businesses powered by Utica energy, and to grow businesses that use Utica energy as its raw product to create industrial and consumer goods. Energy Nation brings together the hard-working people of America’s oil and natural gas industry to ensure their voices are heard by our nation’s policymakers.
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ARIETTA, OH — Marietta College and Brouse McDowell will host an oil and gas symposium from 1 to 5 p.m. Thursday, Oct. 16 at the Alma McDonough Auditorium in Marietta. Goals of the symposium include: • Introduce the college’s Land & Energy Management program • Offer “state of the industry” panel discussion to students, faculty and the business community • Provide networking opportunities for participants of the sym-
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OLUMBUS, OH — Marcellus oil production, and predominantly gas production continues to grow at a blistering pace. However, operators are now faced with a new conundrum - whether to pursue liquid rich wells or find ways to make gas wells economic. The current gas price situation in the US means Marcellus operators need to be ahead of the game by developing highly advanced techniques for making marginal wells economic and developing completions strategies for optimizing liquid recovery. Operators are now actively making progress in reducing cluster spacing and optimizing stage and lateral lengths in liquid rich reservoirs to ensure incremental cost and performance gains. Due to the increasing number of trials measuring changes in such variables, the industry at large is now at a point where findings and information sharing could lead to significant commercial gains. The liquid rich Utica is arguably an easy win for Marcellus oper-
posium. Tom Stewart of the Ohio Oil and Gas Association will deliver the keynote address. Anyone interested in attending should RSVP to seminars@ brouse.com Contact Tom Perry, executive director of strategic communications and marketing at Marietta College, at 740-376-4408 for additional information.
ators and many are already seeing significant production successes due to the delivery of optimal completions techniques. However, the increase in near wellbore stimulation and lateral lengths, in the dense, typically higher-pressured, Utica wells, present their own cost challenges. These include ensuring the availability and development of higher PSI rated equipment, developing extended lateral completions strategies and creating frac designs suitable for high pressure wells; challenges that are often easily overcome by hearing what others have already failed and succeeded at. Join Atlas Energy, Statoil, Junex Inc, Encore Energy, and other leading E&Ps operating in the Appalachian basin at Liquid Rich Horizontal Completions Optimization: Marcellus & Utica 2014 (Columbus, October 29-30). SAVE *15% With Code MCGOM, Exclusive To Gas & Oil Magazine Readers: http://www.marcellusutica-completions-2014.com/
Kristen Spicker Dix Communications
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ALDWELL, OH — The Noble County Chamber of Commerce and Tourism Board is hosting the Thorla-McKee Festival Saturday, Oct. 4 from 10 a.m. to 6 p.m. at the junction of Route 78 and Route 564. The festival celebrates the county’s rich 200-year history in black gold, beginning in 1824, when Silas Thorla and Robert McKee accidentally created the first oil well in North America, to today. Stop by for some refreshing chips, pop and water. Soup beans and hot dogs will be prepared cook-out style over a fire pit. Entertainment includes visit from the Shenandoah Traveling Museum and a banjo player who will play floksy tunes throughout the day. The Ohio Oil and Gas Association will be present with kids activities that teach them about oil. The festival also features a park dedication at noon and raffle prizes that will be drawn at 4 p.m.
Prizes include a gift bag from Days Inn and Suites, framed crossstitch picture of the Harkins House Inn and B&B and more. Tickets can be purchased at the Chamber of Commerce offices, Singer Sunoco, Caldwell Vision Centre and Patty’s Place LLC. Tickets cost $5 a piece and six for $25. Volunteers have been working throughout the summer to prepare the Thorla-McKee Park for the festival. Tree trimmings opened the space up and old picnic tables and benches were removed to make room for new ones. The flag station and BZ&C Railroad caboose were restored and an educational kiosk was created for visitors. Also, a new historical marker was installed and gravel was laid down on driveway to the park. The Chamber hopes to make the festival an annual event, so be sure to stop by the first of many Thorla-McKee Festivals. For information or to sponsor the festival call 740-732-7715.
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CAROL GOFF & ASSOCIATES OPERATES 5 OFFICES COVERING 10+ COUNTIES IN SOUTHEASTERN 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.
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OLUMBUS, OH — The Ohio State University campus will host the 4th annual Buckeye Shale Energy Organization (BSEO) meeting Tuesday, Oct. 14 from 1 to 4 p.m. The event will take place at the Ohio Union Cartoon room. According to Andrew House, president of the Buckeye Shale Energy Organization, the event will be a meet and greet where students and faculty from Ohio State and surrounding Ohio universities will have the opportunity to network with leading companies in the oil and gas industry. The first 45 minutes of the event will be reserved for introductions. During introductions Sen. Troy Balderson, chairman of the Senate Energy and Natural Resources Committee, will welcome keynote speaker Rick Cargile, midstream president of Energy Transfer Partners L.P.
“I am excited about visiting with BSEO regarding the ‘Shale Revolution’ discussing the impact it has had on the U.S. economy,” Cargile said. During his presentation Cargile will cover topics such as, security of energy for our nation, improving balance of trade, reducing emissions and creating jobs. “Natural gas is abundant, affordable and clean burning,” Cargile said. ETP is the provider of the upcoming $4 billion Rover Pipeline project that will serve the Utica/Marcellus basin transporting gas from West Virginia through Ohio and Michigan to Canada. Marathon, BP, Halliburton, Weatherford, Schlumberger, Excalibur Machine, CB&I, ODNR, Battelle and others have all been represented in the BSEO meeting.
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David Hill President Ohio Oil and Gas Association effectively advocate on industry issues. Otherwise, self-interest will prevail and policy matters will be to the detriment of at least one segment of the business. As Abraham Lincoln so eloquently said in 1858, “A house divided against itself cannot stand.” The Ohio Oil and Gas Association will continue to serve the needs of all of Ohio’s oil and gas producers. From the “mom and pop” producers of Southeastern Ohio to the fully integrated, multi-national companies, the Ohio Oil and Gas Association will continue to represent the industry’s financial and business interests with unity and clarity.
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OLUMBUS — The Ohio Oil and Gas Association membership has grown at least threefold in the last five years. To say that horizontal drilling in the Utica shale of eastern Ohio has vastly changed the oil and gas industry is an overwhelming understatement. Tom Stewart and the leadership of OOGA has worked tirelessly to address the concerns and needs of the conventional producers while simultaneously integrating the new shale producers into our great organization. We have made great strides in accomplishing that goal. We realize that much more work needs to be done. Serving as OOGA president has allowed me to talk with independent producers from all of the state and around the nation. One theme that stands out more than any other is that there is a multitude of special interest groups that want to impede or even stop the development of domestically produced oil and gas. Now, allow me to go back in time to a period in Ohio’s history immediately after World War II. On Sept. 12, 1945, the directors of the Independent Gas Producers Association of Ohio met in Granville to talk about the shape of the post-war oil business. The discussion sounded familiar: expensing IDC, possible elimination of the depletion allowance, the possibility of an Ohio severance tax, the threat of federal control over industry and the dismal price of natural gas restraining drilling prospects. The directors also discussed the merits of having one statewide trade association. A delegation was appointed to reach out to the Pennsylvania Grade Crude Oil Association, the Lima Grade Crude Oil Improvement Association, representatives from the Corning Grade Producers and the Cleveland-Lodi Grade Producers and, of course, the drilling contractors. In 1947 these groups merged to become the Ohio Oil and Gas Association, bringing together a unified voice that included large (for the time) and small producers, gas and oil, shallow and deep, contractors and allied industries. Since 1947, through many changes wrought by various booms, busts, technologies and policy debates, the Ohio Oil and Gas Association has been successful because it has refused to divide itself. It’s only through a unified voice that OOGA and the industry can
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