Ohio Gas & Oil Magazine June 2018 by Gannett NEO

June 2018

A Free Monthly Publication

DOMINION ENERGY OHIO

to Start Two More Projects

Findlay-based Marathon Petroleum TO BUY REFINER ANDEAVOR IN THIS ISSUE:

“NEXT BIG THING”: BUSINESS LEADERS PUSH NEW INDUSTRY FOR WEST STARK

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OhioGas&Oil

Table of Contents JUNE 2018

A Look Ahead Gas & Oil Events

G ROUP PUBLISHER

“Next Big Thing”: Business Leaders Push New Industry For West Stark

Bill Albrecht

One of Exxon’s Top Women Tests If Big Oil Can Score in Shale

EXECUTIVE EDITORS

Dominon Energy Ohio to Start Two More Projects

Ray Booth rbooth@daily-jeff.com Rob Todor rtodor@the-review.com Ted Daniels tdaniels@the-daily-record.com

CONTENT CO ORDINATOR Emily Rumes

erumes@the-daily-record.com

OhioGas&Oil

Peer-Reviewed Study Finds No Groundwater Contamination from Fracking in Ohio

Marietta College’s Alex Petrovski ‘20 Earns Robert Evans Internship Award

Farmers Reap Frustration Over NEXUS Construction

Findlay-based Marathon Petroleum to Buy Refiner Andeavor

Petroleum Engineering Majors Claim Top Spot at Third Annual PioBiz Competition

Ohio Well Activity

Horizontal Drilling Activity Graph

On The Cover: This Marathon Refinery in Canton, Ohio became part of the Marathon Petroleum Company in 1998 and has been fully owned by MPC since 2005. Marathon is now expanding its reach across the U.S., buying refiner and pipeline owner Andeavor for more than $23 billion.

JUNE 2018 ADVER TISING John Kridelbaugh Cambridge, Ohio Office jkridelbaugh@daily-jeff.com 740-439-3531 Kelly Gearhart Wooster, Holmes County, and Ashland, Ohio Offices kgearhart@the-daily-record.com 330-287-1653 419-281-0581 Mindy Cannon Alliance & Minerva, Ohio Offices mcannon@the-review.com 330-821-1200 Kim Brenning Kent, Ohio Office kbrenning@recordpub.com 330-298-2012 Janice Wyatt National Major Accounts Sales Manager jwyatt@recordpub.com 330-541-9450

L AYOUT DESIG NER Adam Arditi

aarditi@the-daily-record.com

A Division of GateHouse Media 212 E. Liberty St. Wooster, OH 44691 330-264-1125 spectrum@the-daily-record.com JUNE 2018

A Look Ahead

Gas & Oil Events June 21-22, 2018

OOGEEP SCIENCE TEACHER WORKSHOP: STEM LESSONS IN OIL AND GAS ENERGY EDUCATION

The goal of this workshop is to help foster energy education by connecting science education to the energy industry. This workshop includes: curriculum, classroom supplies, material kits, seven “handson” learning stations, evening social gathering, a special oilfield tour (day 2), Continuing Education Units credit documentation, overnight accommodations, meals and much more! Optional graduate credits are available through Ashland University at an additional cost. Location: Lafayette Hotel, 101 Front Street,

Marietta, Ohio. Early registration is encouraged because this workshop is limited to only 40 participants and will fill up quickly! No “walk-in” registrations are permitted. Workshop limits: 4 teachers per school, 4 out-of-state teachers total, and no home-school teachers at this time. www.oogeep.org/event/oogeepscience-teacher-workshop/

July 12-16 OHIO FIRE & RESCUE OFFICER DEVELOPMENT CONFERENCE (OFCA)

Ohio www.ohiofirechiefs.com/aws/ OFCA/pt/sp/conference

June 22 & 23 OIL SHOW & AUCTION (OIL & GAS ANTIQUE SHOW)

Location: Embassy Suites, 2700 Corporate Exchange Dr, Columbus, OH 43231 https://checktheoilmagazine.com/annual-show/

August 6 & 7 OOGA SUMMER MEETING

Presented by the Ohio Fire Chiefs’ Association. Location: Hilton Columbus at Easton 3900 Chagrin Drive, Columbus,

Save the date! Zanesville Country Club, 1300 Country Club Dr., Zanesville, Ohio. Online registration will be available soon. https://www. ooga.org/events

Have an oil and gas issue? We can help. • Represented over 2,600 lessors, mineral owners, and landowners for leasing, sale of minerals, and pipeline right-of-ways. • With more than 100 years of combined oil and gas experience, our attorneys have been involved in over 200 litigation and arbitration cases involving breach of lease, fraud, underpayment of royalties, invalidity of lease, dormant mineral and marketable title issues, and mineral reservation interpretation. Contact one of the attorneys below to discuss your case: William G. Williams | bwilliams@kwgd.com Gregory W. Watts | gwatts@kwgd.com KWGD.com Toll Free at 877-876-9958 4775 Munson Street NW | Canton, Ohio 44718 | 330.497.0700 | Offices Throughout Ohio CJ-10596092

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OhioGas&Oil

“Next Big Thing”:

Business Leaders Push New Industry For West Stark

By Samantha Ickes | Independent staff writer Vice President of Marketing at Tesla NanoCoatings spoke of the benefits of drawing business related to the oil and gas industry to western Stark County during the annual Massillon Development Foundation Building Business breakfast.

still a major employer in Stark County. As time moves forward and industries grown and change, it is critical for cities to follow the trends. Partners with the Massillon Development Foundation gathered for the group’s Building Business breakfast Wednesday morning to discuss the expanding oil and MASSILLON gas industry and the benefits of drawing more compaIn the 1950s, the city was booming with the produc- nies into western Stark County. Joseph Barone, vice president of Marketing at Tesla tivity of the steel industry. Steel manufacturing provided the Massillon area’s NanoCoatings, spoke of the economic impact of new largest job base. Today, the manufacturing industry is petrochemicals and plastics manufacturing and the capacity for making the Appalachian region of Ohio, West Virginia, Pennsylvania and Kentucky a hub for this type of manufacturing. “This city is well positioned for what is coming as a result of the oil and gas boom in the country and here in the Appalachian Basin,” Barone said.

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MARKETING THE REGION The petrochemical center resides in the Gulf Coast and is negatively impacted by hurricanes each year, Barone said. He added the weather impact is worsening as the Gulf Coast experiences more severe storms and hurricanes, creating a need for a second petrochemical center in the U.S. Proximity to Shell Chemicals’ ethane cracker plant in

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for what is coming as a result of the oil and gas boom in the country and here in the Appalachian Basin.”

– Joseph Barone | Vice President of Marketing Tesla NanoCoatings JUNE 2018

“As these companies come into the area along the Ohio River, the demand for workers is great. It’s great now, and it’s going to get greater.”

lon business development leaders to explore opportunities. The capital investment in the region could improve the community and schools, Herncane said. He added bringing plastics into the area would have an impact on the economy similar to what the steel industry once had. Many people who reside in Stark County find jobs outside of the county, Herncane said, a trend he’d like to reverse. Bringing a new industry here could attract new residents to work in those jobs and bring new families to the area, scenarios that would have a positive economic impact on western Stark County. “Every so often communities have to take a look at – Joseph Barone | Vice President of Marketing what they’re doing and try to latch on to the next big thing,” Herncane said. “Manufacturing is still very prosTesla NanoCoatings perous, but there are industries that are within that sector that are really going like plastics and petroPotter Township, Pa. also makes the region a strong chemicals. Those are companies we could reach out to option for growing these industries. The facility em- to bring to this area.” ploys more than 6,000 people and has discussed expanding in the near future, Barone said. Reach Samantha at 330-775-1133 or samantha.ickes@ “Appalachian basin is the cheapest place in the world indeonline.com to manufacture petrochemicals,” he said. On Twitter: @sickesINDE The Stark County area presents opportunity petrochemical and plastics companies for a variety of reasons, Barone said. The next step in developing the area is to market toward companies within the field and showcase opportunities in Stark County. He highlighted intermodal facilities, flat land and the success of Baker Hughes, an oilfield service company with a hub in Massillon. Ted Herncane, president of the Massillon WestStark Chamber of Commerce, said the MDF has developed a target and now needs to market the region and lean on resources such as Baker Hughes and those knowledgeable about the industry, including Barone and Garret Kloots, vice president of business development at Republic Short Line. “We have to be very proactive about that,” Herncane said. “The days of sitting by waiting for the phone to ring are gone. It’s a very competitive world. The industries are very competitive, and economic development is competitive. Everybody around the country wants to be the next big thing.” BRINGING JOBS TO THE AREA Enticing new business to the quad-state region can create more than 100,000 jobs, according to an analysis by the American Chemistry Council. “As these companies come into the area along the Ohio River, the demand for workers is great,” Barone said. “It’s great now, and it’s going to get greater.” Barone said jobs in the petrochemicals and plastics fields are desirable for many workers because of the high entry-level pay and medical benefits. Barone said there’s room for growth in the fields and urged Massil-

JUNE 2018

OhioGas&Oil

One of Exxon’s Top Women

Tests If Big Oil

Can Score in Shale Kevin Crowley | Bloomberg EXXON MOBIL’S SARA ORTWEIN has delivered some of the energy industry’s biggest engineering feats over a 38-year career. Her newest challenge: Winning in the nimble, fast-moving world of shale. Ortwein’s task is as much cultural as technical. Exxon had given along leash to the XTO shale unit she runs, freeing it from the parent company’s famously exhaustive planning. Now she’s moving XTO’s headquarters to Exxon’s Houston hub to better blend the unit’s shale know-how with the oil giant’s technical and management expertise. Exxon was slow to the shale revolution that wildcatters began in 2005.By buying XTO in 2010, it served notice it had arrived. And Ortwein,who started at Exxon drilling wells in East Texas, was named to lead the unit in 2016. She’s one of just three women among the company’s top tier of 25 executives, in an industry long dominated by men. “It’s a different culture for a different part of the business than a big mega-project,” Ortwein said in an interview. “Bringing it on campus means we can still retain all the experience and expertise of XTO” in shale while getting “the face-to-face benefit” of Exxon’s experts across disciplines. Ortwein is seen within the company as the perfect leader for such an effort, with a career marked by a string of breakthroughs. Off Russia’s Pacific Coast,

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“We have the ability if the market changes, upwards or downwards, either to pick up rigs rapidly or lay down rigs if we need to. It adds another dimension to our portfolio.” – Sara Ortwein | President of Exxon’s XTO Energy she was part of a subsea project that broke multiple drilling records, boasting an 8 miles-long sideways well. She also worked on liquefied natural gas operations in Qatar that were unprecedented in their day, enabling the kingdom to tap one of the world’s largest gas bonanzas. Now the pressure is on for Ortwein to deliver once again. Exxon is struggling with global production declines that are weighing on its stock price. Her portfolio, which includes fast-to-develop wells in the Permian Basin, provides the best opportunity to quickly arrest the output gap, making it the cornerstone of Chief Executive Officer Darren Woods’s eight-year, $230 billion plan to resuscitate Exxon. She’s orchestrating a big expansion of the company’s rig fleet in the region from 24 in March to 30 by the end of the year. If successful, that’ll make Exxon the region’s top driller. “We have the ability if the market changes, upwards or downwards,either to pick up rigs rapidly or lay down rigs if we need to,”Ortwein said. “It adds another dimension to our portfolio.” The oil and gas industry is still mostly a man’s world but was even more so in the 1980s when Ortwein began her career. That didn’t put her off when

JUNE 2018

she graduated from the University of Texas as a civil engineer. “I interviewed with a lot of different industries, but I found the oil and gas industry very dynamic,” she said. “I really was drawn to the people, the passion for the business and the pace of the business.” For greater gender diversity in the industry, society as whole needs to encourage more women and minorities to study science and math “to ensure we are accessing the entire talent pool,” she said. There have been some notable recent successes. Occidental Petroleum Corp. elevated Vicki Hollub to CEO in April 2016, while Chevron Corp. and Royal Dutch Shell Plc both have women CFOs. BP Plc and Shell recently appointed women to lead their U.S. businesses. Efforts to boost female participation in the industry rely heavily on high-profile executives like Ortwein because they exemplify how women can rise to the top in male-dominated industries, said Katie Mehnert,founder of Houston-based Pink Petro, which promotes gender diversity. “The first step is to get women in these positions but then we need to socialize it, make it normal,” Mehnert said. “Telling their stories creates a culture of transformation.” Ortwein was promoted to oversee XTO when oil markets were just starting to recover from the worst crash in a generation. At the time,American crude was trading for about $46 a barrel and Exxon’s U.S. oil and gas wells were in the midst of a two-year run of negative returns. Now oil is close to $68 a barrel and production from the Permian has doubled to 3 million barrels a day, which is more than OPEC-member Kuwait. Such is the importance of the field to Exxon that it spent

JUNE 2018

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Sara Ortwein, president of Exxon’s XTO Energy, speaks during the 2018CERAWeek by IHS Markit conference in Houston on March 6, 2018. Photo by: Aaron M. Sprecher/Bloomberg-With assistance from Bloomberg’s Sabrina Valle . Copyright: Bloomberg

almost $6 billion buying additional drilling rights last year. The plan is to triple Exxon’s shale production to almost 800,000 barrels a day by 2025, which would be a fifth of the company’s output today. To do that, Ortwein is convinced the XTO will have to incorporate Exxon’s traditional strengths of project management,technology and long-term planning, while preserving its fast-paced no-frills culture. An example: The Permian’s production has risen so fast that pipeline capacity is scarce, forcing some producers to take lower prices for their oil. To combat this, Ortwein wants to utilize Exxon’s vast Texas infrastructure. “Connecting the Permian production through the midstream, to the downstream, and chemical gives us a value chain advantage,” she said.“I think it’s a real competitive advantage.” Ortwein’s rivals aren’t resting easy. Blending XTO’s shale operation in to the rest of Exxon will make it a more formidable competitor, said Greg Guidry, the executive vice president who runs Royal Dutch Shell Plc’s shale business. “I’m much more concerned of XTO as a competitor as being a full part of Exxon than I was when they were separate,” Guidry said. “No question about it.”

OhioGas&Oil

DOMINION ENERGY OHIO

to Start Two More Projects Staff Report | Canton Repository DOMINION ENERGY OHIO is preparing to start two pipeline replacement projects, while a third project has been delayed because of weather. Two more pipeline replacement projects have been started by Dominion Energy Ohio while work on a third has been delayed because of weather. The gas utility company started work this past week to install 14,660 feet of plastic pipeline on Sixth Street SW in Canton. The $2.2 million project will affect portions of Third, Fifth, Seventh and Ninth streets, as well as several other streets in the area. Work should continue until the end of July, the company said. In mid-May, work is scheduled to start on Southway Street SW from Westdale to Hopple avenue SW. Crews will replace 3,540 feet of bare steel pipe with a coated steel pipeline. It is a $1.36 million project and should be finished in mid-July. The pipeline being replaced in those projects dates to 1899 to 1955.

Meanwhile, crews still are working on Marietta Avenue SW in Canton Township where Dominion is replacing 5,084 feet of bare steel pipe with 6,220 feet of coated steel line originally installed in 1946. Work on the $1.1 million project is being extended one week until May 7 because of inclement weather, the company said. All three projects are part of Dominion’s pipeline infrastructure replacement program, which started in 2008. It’s expected to take 25 years and cost $4 billion to replace 5,500 miles of line in Dominions 22,000mile system. Additional information about the projects is available online at www.dominionenergy.com, keyword: Pipeline Replacement, or by calling Dominion at 800-362-7557, between 7 a.m. to 7 p.m., Mondays through Fridays. Customer also may email questions to Dominion’s Ohio construction support department at OhioConstructionSupport@dominionenergy.com.

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JUNE 2018

OhioGas&Oil

Peer-Reviewed Study Finds No Groundwater Contamination

from Fracking in Ohio BY Jackie Stewart | Energy in Depth THE FIRST EVER AND AWARD WINNING Utica Shale study to examine the root source of methane (CH4) linked to fracking has finally been published in a scientific journal. The long awaited multi-year University of Cincinnati (UC) groundwater study that found no impacts from fracking was finally published this week in the peer-reviewed journal Environmental Monitoring Assessment – more than two years after researchers first announced its findings. The study was also blessed by the Ohio Environmental Council in 2014 as their recipient for the “Science and Community Award.” Notably, the study’s topline conclusions echo comments made by the report’s lead researcher and a master thesis that was uncovered by EID two years ago, stating: “We found no relationship between CH4 concentration or source in groundwater and proximity to active gas well sites.” “… our data do not indicate any intrusion of high conductivity fracking fluids as the number of fracking wells increased in the region.” The study further highlights how incredibly important the publication of the findings are, given the fact that it truly is a first-of-its-kind, stating: “[O]ur study is the first to characterize CH4 sources in groundwater in the Utica Shale drilling region of Ohio, and is one of only a handful of time series studies of CH4 concentration and associated isotopic composition in an oil and gas extraction area.” While this study is indeed a first for Ohio, this is just one of more than two dozen studies showing that fracking is not a major threat to groundwater, and as EID has previously covered, the report’s now-confirmed topline conclusion is all-the-more noteworthy considering it was partially funded and orchestrated by anti-fracking groups. In fact, the study received over 18 percent of its funding from the anti-fracking Deer Creek Foundation. In other words, it should come as no surprise that the hypothesis was not supported by the facts of the data, and we applaud UC for acknowledging that point as well. The researchers reveal in the study that: “We hypothesized that CH4 concentration would increase as the number of shale gas wells in the area in-

10 OhioGas&Oil

“We found no relationship between CH4 concentration or source in groundwater and proximity to active gas well sites.” – Amy Townsend-Small | Associate professor of Geology, University of Cincinnati’s McMicken College of Arts and Sciences. creased, with the isotopic composition of CH4 reflecting an increasingly fossil fuel derived natural gas source, and that pH of groundwater would decrease and electrical conductivity would increase due to the presence of acidic, salty hydraulic fracturing fluids in groundwater. We also predicted that groundwater wells located within 1 km of active shale gas wells would have elevated levels of dissolved CH4 with isotopic ratios reflecting a natural gas source, and that groundwater within this ‘active zone’ would have decreased pH and increased electrical conductivity.” But the data collected from 25 water wells in Carroll, Harrison, Stark, Belmont and Columbiana counties between 2012 and 2015 simply did not support that hypothesis: “Contrary to our hypothesis, we did not see an increase in CH4 concentration or change in isotopic composition of CH4 in groundwater in regularly monitored wells over the study period (Figs. 2 and 3), despite a large increase in the number of producing shale gas wells in our study area (Fig. 1). In fact, we saw a decrease in CH4 concentration in some of our regularly monitored wells, although the number of samples in our time series is relatively small. The low numbers of significant correlations indicate there may be natural variability in concentrations of biogenic CH4 in groundwater in our study area (contrary to our expectation).” As EID has highlighted numerous times, it was at an anti-fracking Carroll Concerned Citizens meeting more than two years ago that lead researcher and UC professor Amy Townsend-Small announced the study’s find-

JUNE 2018

ings, stating that, “I’m really sad to say this but some of our funders, the groups that had given us funding in the past, were a little disappointed in our results. They feel that fracking is scary and so they were hoping our data could point to a reason to ban it.” (emphasis added) But again to the authors of the UC groundwater study’s credit, they correctly reported what the data they collected indicated even though it was contradictory to their hypothesis. In fact the Ohio Environmental Council (OEC) stated, “This innovative research study is examining the potential effects of hydraulic fracturing, or fracking, on groundwater in Ohio’s Utica shale. Led by UC geologist Amy Townsend Small, this first-of-a-kind project is testing for the presence of methane (the primary component of natural gas) and its origins in groundwater and drinking water wells before, during, and after the onset of fracking. Other studies have focused on water contamination only after fracking is complete. The project involves the gathering and analysis of water samples in eastern Ohio by UC graduate and undergraduate students.” The study notes that just 115 drilling permits had been issued in Ohio when the study began in January 2012, and that 1,600 permits had been issued by the

study’s conclusion in February 2015. Most of the 180 total samples were collected in Carroll County, which has emerged as the most-drilled Ohio county, seeing shale well counts increase from just three in late 2011 to 354 in 2015, according to the study’s master thesis. The fact that the samples collected on a “voluntary” basis and based on “landowner interest” — translation: from landowners that were involved with Carroll Concerned Citizens or sympathetic to their efforts — further validates the study’s conclusion. And the findings really couldn’t be clearer: there was no evidence of groundwater contamination attributable to natural gas development in the study area. From the study: “our data indicate that the dominant source of CH4 in groundwater in the Utica Shale region is biogenic, and that neither the CH4 concentration nor its source change with an increasing number of shale gas wells or with changing distance to shale gas wells.” EID applauds the UC research team for not only (finally) getting this study published, but not deviating from the original conclusions reported more than two years ago. We now call for those who have claimed fracking is “poisoning” Ohio groundwater (we’re looking at you, Dennis Kucinich) to acknowledge scientific evidence and stop fear-mongering that is driven more by politics than the facts.

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Marietta College’s Alex Petrovski ‘20

Earns Robert Evans Internship Award Gi Smith | Marietta College MARIETTA COLLEGE’S ALEX PETROVSKI ‘20 (Stow, Ohio) worked hard to earn an internship this summer with Chevron’s Drilling and Completions Department in Houston. One thing the Petroleum Engineering major won’t have to worry about,though, is paying for living expenses during the three months he’ll be living in Texas. Petrovski is the ninth winner of the Robert Evans Internship Award, which was established in 2010 by Denise and Mike Salvino ‘87 to honor the memory of the late Robert E. Evans and the contributions he made to Marietta College and the McDonough Leadership Program. The $5,000 award is given to a rising junior to help pay for the cost of travel, housing, meals and other living expenses while completing an internship with a major national or global organization. “I am honored to receive this award,” Petrovski said. “I will be living in Houston, Texas, for 12 weeks this summer and this award will assist me in covering the expenses I’ll have while I am there. I am most appreciative of Denise and Mike Salvino for providing the Robert Evans Internship Endowment Award and this honor they have given me.” A drilling engineering intern, Petrovski will work on actual projects alongside experienced drilling and completions engineers. In addition to pursuing a major in petroleum engineering, he is also working toward an Engineering Leadership Certificate, is the treasurer for the Marietta chapter of the American Association of Drilling Engineers, a certified Lean Six Sigma Yellow Belt, an active member of the Energy Business Alliance, and a cellist in the Symphonic Band. “As a Leadership student, this internship provides an opportunity to experience leadership in action at a large corporation,” Petrovski said. “Additionally, the in-

“As a petroleum engineering intern, I will be working to further my goal of contributing to the energy independence of the United States.” – Alex Petrovski 12 OhioGas&Oil

ternship with Chevron provides a real-world experience where I will have the opportunity to experience the petroleum industry firsthand. As a petroleum engineering intern, I will be working to further my goal of contributing to the energy independence of the United States.” Dr. Gama Perruci, Dean of the McDonough Leadership Program, was a member of the reviewing committee that selected Petrovski for the award. In order to be considered for the award, applicants must be accepted into a summer internship program with a major corporation before they apply for the award. “Even if they aren’t selected for the award, the grant applicants are really getting a great training experience. In addition to searching out a high-level internship, the student must write a cover letter and prepare a résumé for the committee,” Perruci said. Perruci said he is grateful for the Salvinos’ support for experiential education, which is crucial for students to have before they graduate. “I really applaud the Salvinos for placing a requirement for the internship to be with a major global corporation because it makes our students think big - to go beyond their comfort zone,” Perruci said.“There’s a whole world out there and this internship makes our students take that step forward.” Located in Marietta, Ohio, at the confluence of the Muskingum and Ohio rivers, Marietta College is a fouryear liberal arts college. Tracing its roots to the Muskingum Academy back in 1797, the College was officially chartered in 1835. Today Marietta College serves a body of 1,200 full-time students. The College offers 45 majors and is consistently ranked as one of the top regional comprehensive colleges by U.S. News & World Report and The Princeton Review, as well as one of the nation’s best by Forbes.com. Marietta was selected seventh in the nation according to the Brookings Institution’s rankings of colleges by their highest value added, regardless of major. News from Marietta College. For more information contact: Tom Perry, Executive Director ofCommunication & Brand Management, (740) 376-4408, perryt@marietta. edu

JUNE 2018

Farmers Reap Frustration

Over NEXUS Construction Shane Hoover | CantonRep.com Staff Writer A GULLY SNAKED the length of two football fields through Jim Royer’s field on Cartway Street NE. In some places, water had scoured away nearly a foot of topsoil, revealing the yellow and gray clay beneath. “That’s money lost,” Royer said as he surveyed the damage. His corn and soybeans wouldn’t grow in clay. “All your nutrients are in your topsoil. That’s your best part of the ground.” The water that washed away Royer’s topsoil flowed from the construction site of the NEXUS Gas Transmission pipeline that was being built across his farm. Roughly 3,800 feet of the natural gas pipeline would be buried on property he owns, Royer said. It would cost north of $23,000 to fix the erosion damage as it was, he said, and construction wasn’t finished. “One (way) or the other, it’s going to get done,” Royer said. Royer was one of four Stark County farmers who told the The Canton Repository last week that NEXUS wasn’t following agreements the farmers negotiated to prevent permanent damage to their land. They said NEXUS had destroyed the precious topsoil that sustains their crops by mixing it with the clay subsoil or allowing runoff to wash away topsoil. Despite their agreements, NEXUS had refused to talk to them or their representatives to explain how it planned to fix the problems, the farmers said. Central Land Consulting, a company that helped landowners negotiate easements with NEXUS and monitored construction for its clients, has filed complaints with the Federal Energy Regulatory Commission, the regulator overseeing the project. Nothing has changed. “I’ve been farming all my life, basically, and I’ve never seen anyone tear the ground up like these guys are do-

ing,” said Marlboro Township farmer John Bauman. LOSING LAND The 255-mile NEXUS pipeline started near Hanoverton in Columbiana County and would eventually connect to existing natural gas pipelines in Michigan. Detroit-based DTE Energy and Enbridge, a Canadian company, are partners in the $2.1 billion project. When completed, the 36-inch diameter pipeline will carry up to 1.5 billion cubic feet of natural gas a day from the Utica and Marcellus shales to users in Ohio, Michigan and Canada. First, the pipeline needed to cross Paul Wallace’s pig farm on the corner of Mahoning Avenue and Louisville Street NW in Washington Township. Wallace had been farming there for about 30 years, and the land had belonged to his family for close to a Story continued on page 14

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Paul Wallace, a farmer in Washington Township, says construction of the NEXUS Gas Transmission pipeline is damaging his soil. (CantonRep.com/Ray Stewart) JUNE 2018

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Story continued from page 13

century. About 2,600 feet of pipeline would cross his land diagonally, cutting the farm in half. Workers had graded the site and piled up soil. To the untrained eye, it all looked like dirt. But Wallace quickly spotted a problem. Sticky yellow clay subsoil had been mixed with the crumbly cocoa-brown topsoil. NEXUS was supposed to remove all the topsoil and keep it separate, he said. “That can’t be repaired,” Wallace said of his tainted topsoil. “It’s pretty much lost.” TOPSOIL IS KING Not all dirt is the same. “It’s our fuel,” farmer Ed Monter said. “It’s same as putting gas in your car.” Farmers go to great lengths to enrich and preserve their topsoil. They add nutrients, rotate crops and work to prevent erosion. “A farm without topsoil is no farm,” Monter said. NEXUS crossed hilltops on Monter’s farm on Beechwood Avenue NE north of Cenfield Street in Washington Township. Downhill from the construction area, runoff had flowed through a deep gully in his field of winter wheat, washing away soil, exposing rocks the size of softballs and leaving a ditch almost two feet wide and

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two feet deep where the erosion was most severe. “Even if they haul topsoil back in, it’s not going to be what we had,” Monter said. NO RESPONSE About four years ago, a different company built an 8-inch natural gas line across John Bauman’s dairy farm on Alberta Beach Street NE in Marlboro Township. That company kept the topsoil and subsoil apart and put it all back when construction finished. “In the first year after they were done you couldn’t even tell they were there,” Bauman said. Not so with NEXUS. As had happened at other farms, NEXUS workers mixed Bauman’s topsoil and subsoil, and they broke a drain tile, which caused sediment-laden water to flow out of the construction area, he said. NEXUS also was supposed to give Bauman places where he could cross the construction right-of-way to reach his fields. Bauman said they didn’t give him one until he started driving through the construction area. Bauman said a pipeline worker told him NEXUS was in a hurry to finish the pipeline, and the farmer questioned how many shortcuts the company would take. “The main thing is they have a contract,” Bauman said. “If you have a contract with someone to do something a certain way, you have to do it. They don’t follow it. They seem like they’re exempt from all rules and regulations.” Central Land Consulting helped all four farmers negotiate their easements with NEXUS and was monitoring construction to make sure those agreements were followed. “It is a big deal and it’s going to affect their property and their farming and their crops in the years to come,” said Central Land Consulting Administrative Coordinator Ranae Eberhart. But NEXUS had stopped talking with Central Land Consulting’s staff about construction issues, she said. Central Land Consulting filed complaints earlier this month with the Federal Energy Regulatory Commission, which is regulating the project. FERC spokeswoman Tamara Young-Allen said the agency’s staff was reviewing the complaints and would determine what steps, if any, were appropriate. When The Canton Repository contacted NEXUS about the farmers’ land issues, a spokesman responded with a written statement that said the company “responds diligently to investigate and address all legitimate claims” and used “best management practices, as well as environmental and agricultural inspectors, to protect topsoil and to minimize erosion and sedimentation during and after construction.” “Landowners are encouraged to contact our landowner helpline at 844-589-3655 to raise questions or concerns regarding impacts to their property,” the statement said. Reach Shane at 330-580-8338 or shane.hoover@cantonrep.com. On Twitter: @shooverREP

JUNE 2018

Findlay-based Marathon Petroleum

to Buy Refiner Andeavor By The Columbus Dispatch staff and wire reports

“Marathon is the nation’s secondlargest refiner, with a crude oil refining capacity of approximately 1.9 million barrels per calendar day. Marathon brand gasoline is sold through approximately 5,600 independently owned retail outlets across 20 states and the District of Columbia...” JUNE 2018

But refiners right now are riding an updraft in what is a notoriously volatile business. Marathon’s sales jumped every quarter last year and it’s the same story for Andeavor. Shares of Marathon are up 60 percent over the past year and Andeavor is not far behind. Both hit all-time highs last week. Andeavor spiked even higher before the opening bell Monday, up another 16 percent. Shareholders of Andeavor, based in San Antonio, can choose to receive 1.87 shares of Marathon stock, or $152.27 in cash. Shareholders of Marathon Petroleum will own about 66 percent of the combined company, with Andeavor shareholders owning the rest. Headquarters will be in Findlay, but the combined company will maintain a presence in San Antonio.

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Petroleum Engineering Majors Claim Top Spot at Third Annual PioBiz Competition Student entrepreneurs to use $8,000 prize money to start Oilfield Basics Gi Smith | Marietta College IT DOESN’T TAKE LONG TO FIGURE OUT that Derek Krieg ‘19 (New Matamoras, Ohio) and Sebastian Ziaja ‘18 (Lake Forest, Illinois) love talking about the oil and gas industry. Their passion recently paid off as the two Petroleum Engineering majors won the third round of Marietta College’s PioBiz competition with their company Oilfield Basics. The judges of the “Business Plan” round awarded them $8,000 to put toward their business venture. “Through our organizations that we have leadership positions in, we strive to educate our peers on several aspects of the industry that are not taught in our classes,” Ziaja said. “We thought of this idea over winter break and it quickly evolved due to lack of competition already in the market and our entrepreneurial minds. We felt that our start-up business was important not only for

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students in petroleum engineering schools, but also to a much larger audience that includes landowners, affiliated industries, and blue and white collar workers of the oil and gas industry who wish to learn more about overall operations.” Krieg added that they believe the product is something that will help those in the industry, but also the general public. “Many processes are inaccurately represented or are not discussed at all, so it’s not our mission to change their mind on any topics, rather provide our audience with an honest overview of these processes so that they are more informed,” Krieg said. Both of the contestants agreed that getting the chance to share the idea in front of an audience and with feedback from three judges was an experience that they never expected as college students. “PioBiz has been a remarkable experience and one that we couldn’t have received anywhere else,” Krieg said. “It is programs like these that truly make Marietta College stand out. Through PioBiz, Sebastian and I were able to methodically sketch out our plans for Oilfield Basics and test our concept with an audience and judges. We were also able to get help from local practitioners who helped walk us through the process of, for example, establishing our business as an LLC.” Dr. Jacqueline Khorassani, Professor of Economics and Director of the Entrepreneurship Program, said they took a different approach to the PioBiz competition - which is in its third year - during 2017-18. Instead of an end-of-theyear competition only, this year there were three rounds that culminated with the Business Plan. “Round 3 of the PioBiz competition requires students to prepare and present full business plans that include a market analysis along with projected costs and revenues for the next three years,” she said. “This year’s competitors had the advantage of being able to gradually develop and improve their plans based on the feedback they received from judges in previous stages of the competition.” Ziaja said they were able to take the feedback they received throughout the year and with each stage of the competition and make their concept stronger. “Although we didn’t win the second round of PioBiz, we received tons of positive feedback about our concept and potential,” he said. “In between the second round of PioBiz and the final round we got to work and developed JUNE 2018

Sebastian Ziaja ’18 and Derek Krieg ’19

Ziaja said they are honored to be the 2018 overall winner. “It shows that the College gives opportunities that all students may participate in,” he said. “The PioBiz competition helped point Derek and I in the right direction and the prize money will help financially take our business one step further.” The judges also recognized the hard work put in by the other two finalists. Courtney Knoch ‘18 (Marietta, Ohio) and Melvin Shuler ‘19 (Columbus, Ohio) each received $1,000 in prize money to put toward their projects. Knoch is looking to create the Everyday Oasis Food Truck Park in Marietta, while Shuler is developing an app called WE-LYVE. “Round 3 judges found all three presented projects worthy and promising,” Khorassani said. “However, they were particularly impressed by the amount of progress that Derek and Sebastian had made in a short period of time. They applauded Derek and Sebastian’s ability to prove their concept by actually being able to sell their services.”

a brand, Oilfield Basics. We presented all of the information that we thought was important to share at our final PioBiz competition and we ended up winning and we have an $8,000 prize to kick-start our business.” Krieg said they are ready to move forward with their business plan. “We determined that we will attempt to bring on outside authors to create a large library with a large range of topics in order to better appeal to our newly discovered markets,” he said. “We also concluded that we will begin filming video blogs to address common concerns News from Marietta College. For more information conand questions that would attract potential customers to tact: Tom Perry, Executive Director ofCommunication & our site and promote a deeper understanding of oilfield Brand Management, (740) 376-4408, perryt@marietta. operations.” edu

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TOP COUNTIES WITH HORIZONTAL DRILLING ACTIVITY BY NUMBER OF SITES

1. Belmont County 580 2. Carroll County 526 3. Monroe County 441 4. Harrison County 419 5. Guernsey County 225 6. Noble County 222 7. Jefferson County 180 8. Columbiana County 153 9. Mahoning County 30 10. Washington County 22 11. Tuscarawas County 20 12. Portage County 15 Trumbull County 15 13. Stark County 13 14. Coshocton County 5 15. Morgan County 3 Muskingum County 3 Holmes County 3 16. Knox County 2 17. Ashland County 1 Astabula County 1 Geauga County 1 Medina County 1 Wayne County 1 WE L SIT WELL SITES ITES IIN N VAR V VARIOUS A OU AR US SS STA STAGES: T GES GES: PERMITTED, PERMITTED E M T ED D, D DRILLING DRILLING, LLING, DRILLED, D I LE LED, ED D, COM COMPLETED, PLETED PL LET ETED PRODU PRODUCING PRODUCING, PR RODUCING O UCING I G PLUGGED LUGG SOUR SOURCE: S OUR RCE E O OHIO H O DEP DEPARTMENT RTMENT O OF NA NATURAL URAL RESOURCES S U E A AS SO OF 5 5/19/18 5/1

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