September 2012 Ohio Gas & Oil Magazine by Gannett NEO

Dix Communications - Gas & Oil

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September 2012 Edition

Ohio SEPtEmbER 2012 • www.ohiogo.com

A FREE monthly PublicAtion

Table of Contents

◆ There’s Room to Grow ............................pg. 3 ◆ ‘Thumper Trucks’ do the job ...................pg. 5 ◆ Word on the Street: Comments from 5 Mayors.......................pg. 6 ◆ Keep on the GO with ohiogo.com...........pg. 8 ◆ Farm Bureau to help inform public .......pg. 10 ◆ A different kind of pipeline ...................pg. 12 ◆ Grocery brings ‘taste of home’ to workers ..............................................pg. 14 ◆ Chesapeake Energy promoting safety ...pg. 16 ◆ Experts: Some fracking critics use bad science ......................................pg. 18 ◆ Teachers learn first hand, on site ...........pg. 22

◆ Chesapeake office means up to 400 jobs ........................................pg. 26 ◆ Summer camp showcases gas and oil drilling .................................pg. 28 ◆ Marcellus Shale ‘a national treasure’ ....pg. 32 ◆ Role of coal has changed .......................pg. 34 ◆ Ohio’s gas/oil industry honors OOGEEP exec Rhonda Reda ......................36 ◆ Rex Energy assists county firefighters with turnout gear ...................................pg. 38 ◆ Upcoming events in Gas & Oil industry ............................pg. 42

Attributions Andrew S. Dix Co-Publisher ASDix@dixcom.com

Ray Booth Executive Editor RBooth@dixcom.com

G.C. Dix II Co-Publisher GCDixII@dixcom.com

Cathryn Stanley Regional Editor CStanley@dixcom.com Niki Wolfe Regional Editor NWolfe@dixcom.com Ed Archibald SE Ohio Sales Cambridge, Ohio Office EArchibald@dixcom.com 740-439-3531 “Gas & Oil” is a monthly publication jointly produced by Dix Communication newspapers across Ohio. Copyright 2012.

Janice Wyatt National Major Accounts Sales Manager jwyatt@dixcom.com 330-677-7180 Peggy Murgatroyd SE Ohio Sales Barnesville and Newcomerstown, Ohio Offices PMurgatroyd@dixcom.com 740-425-1912 Barnesville 740-498-7117 Newcomerstown Jeff Kaplan NE Ohio Sales Alliance & Minerva, Ohio Office JKaplan@dixcom.com 330-821-1200 Owen Williams Layout Designer

Cover Photo: AP Photo/Sue Ogrocki A drilling rig is pictured near Calumet, Okla. Oklahoma in this Friday, July 20, 2012 photo.

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There’s Room to GRO

mong the numerous lot truck stop and convenience store. Ingress and egress at the industries impacted Pilot is not directly governed by a traffic light, though one is by the explosion of oil located several hundred feet to the north near the eastbound and gas exploration and devellane off-ramp from the interstate. opment in eastern Ohio, lodgGiven the amount of tractor-trailer and automobile traffic aling ranks high on the list. ready experienced at the intersection, the effect of additional If not purchasing homes or traffic entering Southgate Parkway from Dozer Road could leasing apartments, field workcreate significant traffic snarls. ers and office staff require The Ohio Department of Transportation conducted traffic housing. Some choose to place studies at the site, Blanchard said. Though no solution has yet be decided upon, diverting Dozer Road to the south and confifth-wheel campers either on necting to the state route at a less constricted point is being lots made available for that Dan Davis given consideration. purpose by property owners or Dix Communications Naysayers have predicted the gas and oil industry will rise in established campgrounds. and rapidly fall here. But many are lodged in local hois not evidenced, however, tels and motels. So many, in fact, that “We are certainly being strongly byThis double-digit percent increases in ocrecent purchases in Cambridge, impacted by the industry. A Blanchard said. The planned new hocupancy rates are common. “The oil and gas industry has imgreat many rooms are being tel construction combined with the pacted the Guernsey County lodging sale of existing hotels indicates posiutilized by Chesapeake workers tive and powerful economic forces industry overall by a 20 percent increase,” said Debbie Robinson, execare at work. and others,” utive director of the Guernsey County “Those (who purchased the hotels) – John Kist were Visitors & Convention Bureau. all people who obviously saw The nine hotels/motels currently that something is going to happen in operating in Guernsey County, including Salt Fork Lodge in Cambridge that’s going to make those hotels viable,” he said. Salt Fork State Park, boast about 900 beds. This figure does not The successes in Guernsey County are repeated throughout include cabins or bed and breakfast inns. much of eastern Ohio. Aside from bolstering existing lodging establishments, the “Twenty percent of our existing rooms (1,300) are being utilized Monday to Thursday. Additionally, restaurants in the influx in business has another impact, according to Robinson. area are showing an increase in business,” said Tuscarawas “It has also motivated corporations to pursue the opportunity County Convention and Visitor’s Bureau Executive Director to build new lodging facilities,” she said. “These new faciliDee Grossman. ties will provide more construction work for our residents and, The governments of communities with lodging taxes in place once the facilities are in operation, more hospitality jobs.” are experiencing an increase in revenues. Enter Norm Blanchard and the Cambridge-Guernsey County “We are certainly being strongly impacted by the industry. Community Improvement Corporation. A great many rooms are being utilized by Chesapeake work“We’ve had several ... at least a half dozen ... site selectors ers and others,” said John Kist of the Stark County (Canton) for various hotel chains look here,” said Blanchard, the CIC’s convention and visitors bureau. “Overall, 2012 will probably executive director. “Three are in the final stages of what they be our best year ever for lodging tax.” call ‘due diligence’ and are taking a look at where they’re going The gas and oil industry helped breath new life into a lifeless to be located.” business recently. One new hotel is expected to be erected on the site of a for“The Atwood Lake Resort is reopening because of the shale mer hotel along Southgate Parkway. The site for another abuts development in Carroll County,” said Director Amy Rutledge a Sheetz property, also along Southgate Parkway. of the Carroll County Convention & Visitors Bureau and CarThe third planned new construction is a complex along roll County Chamber of Commerce. “The debt was paid off and Dozer Road, a paved two-lane township road terminating at a the work to reopen has all been paid for by signing bonuses. campground. The influx of workers will give the property a consistent base That project exemplifies one characteristic highly sought afof room rentals that will let the managers continue to make upter by developers: Proximity to major roadways and intersecgrades to the property. Carroll County is also experiencing an tions. In this case, the intersection of Interstate 70 and Route 85 percent increase in bed tax collection over last year, which 209 (Southgate Parkway). is attributed to the oil and gas industry.” It also creates a hurdle to overcome, Blanchard said. Though Dozer Road connects to the state route, it does so near a Pi-

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September 2012 Edition - Dix Communications

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Dix Communications Photo / Michael Neilson Huge trucks role down Wheeling Avenue in Cambridge, OH. The trucks are used to generate seismic waves underground to map Gas & Oil formations.

‘Thumper Trucks’ do the job T

hey call them “thumper trucks” and they tend to raise eyebrows as people attempt to puzzle out their purpose the first time they appear in a community. Now, they are popping up all over eastern Ohio as the gas and oil industry has rediscovered the region. That correlation between the trucks and the industry, indeed, serves as a clue to John Lowe Dix Communications the trucks’ purpose: Discovery of gas and oil in Ohio’s previously untapped Marcellus and Utica shale formations. Often a precursor to actual drilling, thumper trucks help the industry decide which areas more likely harbor the natural gas and petroleum deposits. The commonly used term, thumper trucks, seems apropos in that that is essentially what the trucks do: Thump the ground. The thumping generates seismic waves in the earth that can be measured and that can offer to the expert eye an image of the structure of what lies thousands of feet below the surface of the earth. Here’s how it works: Equipped with a large metal “foot,” as it were, the thumper truck raises the foot and then “stomps” the ground. The foot is usually raised to a height of about 10 feet before it is dropped for the impact. The stomping generates seismic waves into the ground that are then reflected back to the surface. The waves — which reflect or refract differently depending upon the density of the strata they encounter — are picked up by

“Equipped with a large metal ‘foot,’ as it were, the thumper truck raises the foot and then ‘stomps’ the ground. The foot is usually raised to a height of about 10 feet before it is dropped for the impact.”

geophones and recorded graphically. The resulting data is then sold to drilling companies. What the experts are looking for are indications of a rock layer of a certain porosity — a porous rock layer that could hold gas or oil within it.

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word on the Street: Comments from 5 Mayors the question, “how is the oil and gas industry impacting your community,” was posed to several mayors of towns or cities situated on the Marcellus-Utica Shale formations.

“The Caldwell Village sewer plant has been providing water to one company for the drilling and fracking process. Millions of gallons of water previously released into Duck Creek are now being used to bring the wells into fruition.”

Tom Orr Mayor of Cambridge

Pat Fallot Mayor Louisville

“It’s kind of neat to see so many different license plates and so much activity in Cambridge. The discovery of oil and gas in our area has definitely changed our landscape. I’m very excited about the potential benefits from the oil and gas, but I am cautiously optimistic. “Of course, everyone would like everything to be warm and fuzzy, but you have to allow for challenging situations as well as the benefits, ie: the traffic, tankers, big trucks, the noise, longer waits at restaurants, etc. Some people are being displaced from their homes. Everything comes with a price. And, of course, the recent storm really stretched our resources and manpower. (Editor’s note: A storm on June 29 in Guernsey County resulted in trees being knocked down, significant damage to property and massive power outages, some as long as 10 days.) “For me, with the arrival of the oil and gas industry, it’s the increase of meetings to attend. There is a lot of speculation by the public, so it is important for me to get — and share — as much reliable and accurate information as possible. “But, the uptick is the jobs, in the oil and gas industry and local businesses. The unemployment rate in Guernsey County has dropped from 12 to 8 percent, the lowest it has been in years. We should all welcome our new residents.”

lowell Anderson Mayor of Caldwell “The Utica and Marcellus Shale Play has had a great impact for those landowners in Noble County. Although it is still in the exploration stage, several wells have come in big already. “One only has to visit the county recorder’s office daily to observe the volume of business being conducted in that office. We are in the heart of Appalachia Ohio and the oil and gas boom is a welcome respite from the failed economy we have experienced during the past five years.

“ I think it’s a very good thing that’s going to happen in Stark County, and in the state of Ohio. It will bring jobs, and we want to be sure to have local people fill these job opportunities because the job market has been very dry here. “We’re very excited about having Chesapeake coming to Louisville, as well as some of the other companies involved in the oil and gas industry. We’re excited, and we welcome them to town. “We know this will be more traffic in the city, but we also hope it will help our housing industry. We have some houses for sale, and I understand Chesapeake has already been in contact with one of our real estate agencies to ask to be considered first when a house goes on the market. That’s a real plus for us. We will also have more students coming into our schools, and funding from the state is based on the number of students. This will be another plus.”

Jim Friel Mayor of Newcomerstown “There is a demand for water. So, the village had to create a bulk station to provide water to be trucked in to drill sites. It was constructed so that it would keep trucks outside of the village. This will protect the streets from the heavy traffic of trucks. “Our Hampton Inn is being impacted by the gas and oil. They are constantly full and are turning people away due to no rooms. As per the manager, there is no end in sight. “Officials within the county are stressing that communities have to be prepared for the influx of people coming into our area. They will have needs: a place to stay, restaurants, entertainment, essential needs, etc. With this in mind, we need to make the community aware so they (our people) will be prepared. This is the main topic of our civic groups. We need to get the word out.” Continued on pg. 30

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Keep on the GO with ohiogo.com

evelopments in the gas and oil industry are changing every day. An easy way to keep up with them are at www.ohiogo.com, a website created by Dix Communications that is designed for industry executives, employees and community leaders and the community to keep up with news and features about the gas Rob Todor Dix Communications and oil industry. Visitors to www.ohiogo.com can read features about their neighbors and friends who have businesses that are dealing directly with the gas and oil industry. One example is MAC Trailer in Alliance and Kent, which has experienced unprecedented growth in supplying a variety of inventory for the gas and oil companies. There are also stories that bring readers up to date with the latest technological advances in the industry, such as how the drilling companies are reprocessing water used at its well sites. Another interesting article highlights how the Newcomerstown Emergency Rescue Squad’s Fire Division is using a new application of specialized foam if they need to fight oil and gas well fires.

The gas and oil companies are excited to give back to the communities in which they are working through service projects. Those events are highlighted also, such as Chesapeake Energy’s Operation Blue campaign, a volunteer initiative in which employees have recently cleaned up brush areas from natural parks areas and built platforms for tents at a Boy Scout reservation. Readers of ohiogo.com don’t have to worry about missing any stories. Previous issues of Gas & Oil magazine are available for reading, and there’s a multitude of sites to find up-tothe minute information on the Links page. Have questions or concerns about the gas and oil industry, or just want to find out more information about what’s happening next? There’s also a place to go for that to, by clicking on the Events tab. As sure as the gas and oil industry expands so will ohiogo.com to keep up with the latest news, trends and developments.

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Farm Bureau to help inform public

n an effort to better inform the public in the Newcomerstown community about the gas and oil movement, a public meeting has been set up to answer questions. Dale Arnold of the Ohio Farm Bureau Federation will be speaking at 6 p.m. Monday, Sept. 10 at the David Barber Civic Center, 1066 E. State St., Newcomerstown. Niki Wolfe Arnold has been director of Dix Communications Energy Services for the Ohio Farm Bureau Federation since 1995. During his tenure, he has managed self-help energy aggregation groups, research projects on electric load profiling, energy efficiency, on-site generation, net metering, customer friendly interconnection, biomass energy, pipeline development and oil and gas exploration. Arnold represents farm, small business and residential energy consumers on utility advisory boards focusing on demand side management/energy efficiency. He has served on local, state and national working groups focusing on technical evalu-

ation, education/outreach, and community planning, all dealing with energy. He has served on task forces leading to creation of Ohio’s Advanced Energy Initiative as detailed in SB 221, and utility scale wind farm siting guidelines created in response to HB 562. Oil and gas exploration will impact all of Ohio. Arnold is inDale Arnold volved in regional and state working groups exploring how leasing, pipeline easements and infrastructure expansion will impact farmers and rural communities, and what they can do now to address them. The Ohio Farm Bureau Federation has over 214,000 members families statewide. Arnold works with Farm Bureau leaders create effective energy policy on local, state and national levels. He has authored papers advocating a Diversified Energy Portfolio using domestic oil and coal resources, nuclear and renewable technologies. He is a native of Knox County, where his family can trace their involvement in Ohio agriculture starting in the 1820s.

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A different kind of pipeline

ipelines are an essential part of the oil and gas business. Without them you just have very expensive holes in the ground instead of income producing (and tax producing) streams of income for many years to come. Unlike the small two inch lines of the past, these new lines can measure 18, 24, and even 30 inches in diameter. So, Don Gadd it is important to take the negoLocal Landman tiations of rights of way seriously. Being fair, but also, pragmatic in your dealings will reward both the landowner and the transmission company. I learned early always to be fair, but most of all, reasonable when negotiating right of way over land where the well is not located. Like most kids, I learned from my Dad. He was a deputy and later a police officer. On the side, he was a landman for a lot of the small companies that dotted our area in the late 1960’s and 70’s. Often my siblings and I got to ride along on those long trips, like to Akron, but mostly, we would end up at a barn or home in Noble or Guernsey County. It was fun for us and I am sure Dad enjoyed having someone along. I learned a lot from listening. I also learned that my dad was a pretty good detective. It must have been a habit of Mr. 20 Questions (what we called Dad), as he could come away with a lot of information about what was going on in a particular area, who was related to who and some idea of who to talk to next. To Dad, there were other types of pipelines, like the ones he developed for information. I never forgot the lessons he taught me and have developed pipelines of my own along the way. One such source is the local business community. Dad used to “interrogate” the local barber, men who worked the late shift cleaning downtown and bribe the paperboys with milkshakes to find that stolen item or find out who was lurking

in the area of the crime. He generally got his man. Learning where everyone went to church on Sunday, the local homecomings, and county fairs were great in-ways for getting his good reputation around. Fair and honest Frank. He lived by it and was proud of it. Never stuck anyone for a nickel and even fought with the company once in a while to get a reasonable deal for all. Me? Well, I’ve developed and honed those attitudes and skills, too. My favorite source among the business district isn’t the barber, as I have a new one, and we are just getting acquainted. I had a girl stylist, but she wasn’t much into what I do. However, one such source has been “old Sudzee” and his sidekick, Irv, the Buffalo Man. Seems everyone has to wash their clothes sometime or the other. Even the guy under the bridge gets in once a year just in case he meets his Maker. Grandma always said, “Never know when you will need clean drawers!” Washing clothes is mind-numbing and just outright boring. It’s always nice to have someone to chat with. Old Sudzee, being a former a high stakes, high rolling oil and gas guy, (and you would be surprised at how many of our small businessmen in the area were in oil and gas) loves to talk the business with his clients. However, like others, he has become a necessary hub in the pipeline of information or confirmation of a rumor I have heard. And, you wonder why all these out of town companies are so secretive about what they do. All this keeps me in the loop with what is happening and the potential areas of future happenings. It’s just part of the business. So, like me, I urge all to develop their “pipelines” of information. The saying of “ignorance is bliss” doesn’t benefit you when negotiating some of the big pipeline deals coming down the pike. It’s important to understand that the right of way is important to both landowner and the company. A smooth and workable agreement makes for happy parties on both sides for many years to come. Like my Dad, I won’t be around forever, but my legacy in the area may so that’s why it is important to be fair and honest. Something we all need to keep in mind when dealing with others.

“To Dad, there were other types of pipelines, like the ones he developed for information.” – Don Gadd

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Grocery brings ‘taste of home’ to workers

nyone who has ever traveled for work knows that sometimes you crave that special food that tastes like home. Kishman’s IGA owners Tom and Jan Kishman, as well as their sons Tom Jr. and Matt, are bringing “home” to the oil and gas workers in the Minerva area by offering regional foods Denise R. Freeland found in the south. In preparation for the influx Dix Communications of workers, Tom and Jan traveled to Towanda, Pa., months ago, talking with business owners and visiting the IGA there to gather ideas for products to carry. “Fracking’s been a Godsend,” Tom said, noting the Kishman’s IGA team has been proactive about seeking the business of oil and gas workers and their families who are moving into

the area, including delivering doughnuts to drilling sites. Always on the lookout for new and innovative ways to serve its clients, Kishman’s IGA recently added a smoker on its front porch. A variety of products are smoked every day except Sunday, using hickory from Carroll County, including pulled pork, beef brisket, chicken, salmon, English roast, shaved pork loin, St. Louis ribs, beef ribs, macaroni and cheese, and baked beans. Jan noted they recently tried a new Vermont white cheddar macaroni and cheese with bacon, which was a big hit. Kishman’s IGA has also recently expanded its Cajun offerings to include crawfish, alligator, Cajun spices, and Community Coffee roasted in Louisiana, among others, to meet the needs of oil and gas workers moving into the area from the South. Continued on pg. 33

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Gas & Oil

September 2012 Edition - Dix Communications

www.OhioGO.com

ChESAPEAkE EnERGy promoting safety

afety surrounding the Utica drilling efforts in Ohio is, of course, a big concern. Chesapeake Energy Company, the most common energy company found working in this area, reports one way it is making the process of suppling natural gas safer is by utilizing underground pipelines. Chesapeake believes pipeLaurie Huffman lines are the safest and most Dix Communications efficient way to transport these products across the nation. Out of sight and out of mind, they are becoming an integral part of our country’s ever-expanding energy infrastructure. These underground transportation highways fill a vital public need by transporting natural gas and petroleum products to heat homes, fuel electric generation plants, power vehicles and increase U.S. energy security, and they cut down on truck traffic while doing so. However, it is important for individuals living or working near pipelines to contribute to pipeline safety by knowing how to recognize pipeline locations in their area, recognizing un-

authorized activity or abnormal conditions near pipelines, and knowing how to react in the unlikely event of a pipeline leak or emergency. In addition, the public is asked to call 811 before digging to ensure no pipelines in the area to be dug will be affected. As technology continually evolves, Chesapeake also makes efforts to utilize new methodology to ensure safety for the public, its workers and the environment. One example of this is the company’s use of blow-out preventers. This equipment is used during drilling to protect against unexpected high pressures underground. Automatic emergency shuts-offs are also utilized, and when pipelines are constructed, X-rays are taken to inspect the strength of the welding. The pipes are then filled with water and tested at 1.5 times the normal operating pressure. Chesapeake also reports the company exceeds government regulations for required spill prevention plans at well operations. Preventative maintenance and routine inspections are also a part of the company’s efforts to ensure safety. In addition, the company routinely examines its work practices. Future issues of Gas & Oil will continue an in-depth exploration and provide updates on Chesapeake’s safety practices in relation to air, green house emissions, groundwater protection, workforce safety and other major areas of concern.

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September 2012 Edition - Dix Communications

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ExPERTS: Some fracking critics use bAD SCiEnCE Kevin Begos Associated Press

n the debate over natural gas drilling, the companies are often the ones accused of twisting the facts. But scientists say opponents sometimes mislead the public, too. Critics of fracking often raise alarms about groundwater pollution, air pollution, and cancer risks, and there are still many uncertainties. But some of the claims have little — or nothing— to back them. For example, reports that breast cancer rates rose in a region with heavy gas drilling are false, researchers told The Associated Press. Fears that natural radioactivity in drilling waste could contaminate drinking water aren’t being confirmed by monitoring, either. And concerns about air pollution from the industry often don’t acknowledge that natural gas is a far cleaner burning fuel than coal. “The debate is becoming very emotional. And basically not using science” on either side, said Avner Vengosh, a Duke University professor studying groundwater contamination who has been praised and criticized by both sides. Shale gas drilling has attracted national attention because advances in technology have unlocked billions of dollars of gas reserves, leading to a boom in production, jobs, and profits, as well as concerns about pollution and public health. Shale is a gas-rich rock formation thousands of feet underground, and the gas is freed through a process called hydraulic fracturing, or fracking, in which large volumes of water, plus sand and chemicals, are injected to break the rock apart. The Marcellus Shale covers large parts of Pennsylvania, New York, Ohio and West Virginia, while the Barnett Shale is in north Texas. Many other shale deposits have been discovered.

One of the clearest examples of a misleading claim comes from north Texas, where gas drilling began in the Barnett Shale about 10 years ago. Opponents of fracking say breast cancer rates have spiked exactly where intensive drilling is taking place — and nowhere else in the state. The claim is used in a letter that was sent to New York’s Gov. Andrew Cuomo by environmental groups and by Josh Fox, the Oscar-nominated director of “Gasland,” a film that criticizes the industry. Fox, who lives in Brooklyn, has a new short film called “The Sky is Pink.” But researchers haven’t seen a spike in breast cancer rates in the area, said Simon Craddock Lee, a professor of medical anthropology at the University of Texas Southwestern Medical Center in Dallas. David Risser, an epidemiologist with the Texas Cancer Registry, said in an email that researchers checked state health data and found no evidence of an increase in the counties where the spike supposedly occurred. And Susan G. Komen for the Cure, a major cancer advocacy group based in Dallas, said it sees no evidence of a spike, either. “We don’t,” said Chandini Portteus, Komen’s vice president of research, adding that they sympathize with people’s fears and concerns, but “what we do know is a little bit, and what we don’t know is a lot” about breast cancer and the environment. Yet Fox tells viewers in an ominous voice that “In Texas, as throughout the United States, cancer rates fell — except in one place— in the Barnett Shale.” Lee called the claims of an increase “a classic case of the ecological fallacy” because they falsely suggest that breast cancer is linked to just one factor. In fact, diet, lifestyle and access to health care also play key roles. Fox responded to questions by citing a press release from the Centers for Disease Control and Prevention that doesn’t support his claim, and a newspaper story that Risser said is “not based on a careful statistical analysis of the data.” When Fox was told that Texas cancer researchers said rates didn’t increase, he replied in an email that the claim of unusually high breast cancer rates was “widely reported” and said there is “more than enough evidence to warrant much deeper study.” Another instance where fears haven’t been confirmed by science is the concern that radioactivity in drilling fluids could threaten drinking water supplies. Critics of fracking note the deep underground water that comes up along with gas has high levels of natural radioactivity. Since much of that water, called flowback, was once being discharged into municipal sewage treatment plants and then rivers in Pennsylvania, there was concern about public water supplies. But in western Pennsylvania, the Pittsburgh Water and Sewer Authority did extensive tests and didn’t find a problem in area Continued on pg. 20

Dix Communications - Gas & Oil

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September 2012 Edition

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“critics” from pg. 18

rivers. State environmental officials said monitoring at public Marcellus Shale Protest said in response to a question about $ “any possible benefit in electric generation must water supply intakes across the state showed non-detectable its claims that levels of radiation, and the two cases that showed anything be weighed against the direct harm from the industrial processwere at background levels. es of gas extraction.” MEpotential SAthe Sabout Concerns problem also led to regulatory One expert said there’s an actual psychological process at A H T S changes. work that sometimes blinds people to science, on the fracking N An analysis by The Associated Press of data from Pennsylvania found that of the 10.1 million barrels of shale debate and many others. b u d g e t w i s e f u“You r n i t ucan r e literally put facts in front of people, and they will wastewater generated in the last half of 2011, about 97 percent was either recycled, sent to deep-injection wells, or sent to a just ignore them,” said Mark Lubell, the director of the Centreatment plant that doesn’t discharge into waterways. ter for Environmental Policy and Behavior at the University of Critics of fracking also repeat claims of extreme air pollution California, Davis. threats, even as evidence mounts that the natural gas boom is in Lubell said the situation, which happens on both sides of a some ways contributing to cleaner air. debate, is called “motivated reasoning.” Rational people insist Marcellus air pollution “will cause a massive public health on believing things that aren’t true, in part because of feedback crisis,” claims a section of the Marcellus Shale Protest website. from other people who share their views, he said. Starting at Yet data from the U.S. Energyr Information Administration Vengosh noted$the problem of spinning science isn’t new, or $ o st helping to turn many large show that the shale gas boomee is limited to one side in the gas drilling controversy. For example, (s power plants away from coal, which emits far more pollution. industry supporters have claimed that drilling never pollutes And the U.S. Environmental Protection Agency passed new water wells, when state regulators have Perfect confirmed cases where Sleeper rules to force drillers to limit releases of methane from wells it has. He says the key point is that science is slow, and research Perfect Sleeper Firm Per and pumping stations. into gas drilling’s many possible effects are in the early stages, Some environmental groups now say that natural gas is havand much more work remains to be done. ing a positive effect on air quality. “Everyone takes what they want to see,” Vengosh said, addEarlier this year, the group PennFuture said gas is a much ing that he hopesStarting that atthe fracking debateeach willpiece become more tock The Shelves cleaner burning fuel, and it called gas-fired power plantsLeather “orcivilized as scientists obtain more hardANY data. SIZE! $ Visit our Gallery wders LifeofFood Pantry! magnitude cleaner” than coal plants.

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Gas & Oil

September 2012 Edition - Dix Communications

www.OhioGO.com

Teachers learn first hand, on site Judie Perkowski Dix Communications

he 14th annual Teacher Workshop at BelmontHarrison Career Technical Center in St. Clairsville Aug. 8, 9, attracted 40 teachers from 12 Ohio counties who were interested in promoting the science of oil and gas in their classrooms. The annual event is sponsored by the Ohio Oil & Gas Energy Education Program. The two-day workshop included science demonstrations and presentations by OOGEEP staff and industry professionals, and a bus trip to three oil/gas well sites in the tiny town of Hannibal on the Ohio River, about an hour southeast of St. Clairsville. “The teacher workshops continue to be one of my favorite events all year. It’s a great time for the teachers and the industry to really connect ... Everyone is fantastic, and I always walk away from these rejuvenated!” said Rhonda Reda, executive director of OOGEEP. “To date, more than 2,600 teachers have participated in the teacher workshops. And, counting this group, teachers from all 88 Ohio counties have participated in the program. “The workshops help Ohio teachers, students and schools meet their state and national science standards. Teachers also receive information about Ohio scholarships and career opportunities for their students. And, they all received supplies to conduct the same experiments in their classrooms that they observed at the workshop.” The workshop offers continuing education credits and optional Ashland University graduate credit to teachers who complete this free two-day program. Laura McComb, a teacher at Caldwell Elementary of the Caldwell Exempted Village School District in Noble County,

Dix Communications Photo / Judie Perkowski Josh Bailey of Corp Oil Field Services demonstrates the start-up procedure for the pump-jack, at the Bradfield #1 vertical gas well in Hannibal

said she enjoyed the workshop. “The program was very interesting ... I learned a lot. There were a lot on presentations on the entire oil and gas process. I’m excited to bring this information back to my students,” said McComb. After completing Day One of the workshop in the classroom, on Day Two the teachers boarded a Lakefront bus to visit, for many, their first upclose view of an old gas well, a new well site and a test well site. First stop on the field trip itinerary was to the Bradfield No. 1 vertical well in Hannibal, where the group witnessed the startup of a natural gas well that actually has been in production since 1982. Scott Talmage, company spokesperson for Northwood Energy Corp. based in Columbus, and president of its ancillary company, Northwood Exploration, explained the components of the Bradfield gas well battery (separator, holding tank and meter), while Corp Oil Field Services employee Josh Bailey hand-cranked the motor on the pump-jack. Talmage was also a presenter at the workshop classroom activities.

“The program was very interesting ... I learned a lot. There were a lot on presentations on the entire oil and gas process. I’m excited to bring this information back to my students,” –Laura McComb.

Next stop was a few miles down the road to the Eisenbarth No. 1 horizontal well on the Marcellus Shale Play completed in 2011. The well is approximately 6,300 feet deep with pipelines that stretches almost a mile in opposite directions. The Eisenbarth has been tested for viability and productivity and, according to field supervisor Rick Pyles of Protege Energy II, LLC, “the well is expected to produce 3 mcf (million cubic feet) per day, with condensation (oil) captured equaling 300 barrels — per day — and is one of 12 wells expected to be drilled at the site.” The water pond adjacent to the well pad is about the size of 10 football fields. Protege Energy and Northwood Energy are partners in the Continued on pg. 23

www.OhioGO.com

Dix Communications - Gas & Oil

September 2012 Edition

“teachers” from pg. 22

Dix Communications Photo / Judie Perkowski Forty school teachers from 12 counties participated in the recent teacher workshop at the Belmont Harrison Career Technical Center in St. Clairsville. exploration, development and production of the Eisenbarth No. 1 well and the Dangel No. 1 Utica Shale Test Well. The Dangel is located at a (very) high elevation within a five-mile radius of the main road in Hannibal. The Dangel well is a single stage hydraulic fracture, with a depth of 12,000 feet. It is Northwood and Protege’s newest well site in the area. No projections of productivity were given. The only other “equipment” at the Dangel site were two gigantic tanks which looked like regular propane tanks on steroids. The tanks will be used to store condensation (oil) collected from the well. On the trip back to St. Clairsville, the group viewed the movie “Truthland,” the oil and gas industry’s retort to the “nonsensical Hollywood-produced movie which tries to demonize the oil and gas industry,” said Reda. Sarah Tipka, OOGEEP Education Committee Chair, board member and natural gas and crude oil producer added, “OOGEEP’s goal is to provide Ohio’s teachers with the information and materials needed to enhance their students’ knowledge of natural gas and crude oil, and their applications throughout the world.” OOGEEP’s next teacher workshop will be Sept. 24 at the Renaissance Hotel in Cleveland, in conjunction with the American Association of Petroleum Geologists’ annual meeting, and is open to Ohio teachers. For more information about OOGEEP’s educational and other public outreach programs, call Rhonda Reda at (740) 5870410, email rreda@oogeep.org, or mail inquiries to OOGEEP, P.O. Box 187, Granville, OH 43023.

OOGEEP Teacher workshop attendees

Belmont County: holly Bennett, Belmont College Energy Institute; Brian Blake, Belmont Career Center; Georgeann Canter, Bridgeport high School; Kylie Canter, Bridgeport high School; Marianne Clark, St. John Central Grade School; Kim fuchs, Buckeye trail Elementary; Mary hendershot, St. Mary’s Central Grade School; Brian hendershot, Ohio Northern University; Mary Mowrer, St. Mary’s Central Grade School; Ed Mowrer, Belmont College Energy Institute; Chris tomich, St. Clairsville; Brent tripp, harrison Career Center; Samantha Watts, St. Mary’s Central Grade School. Clark County: Melinda hixon, Adriel School; Cheri leffel, triad high School; Anna Schack, Risen Christ lutheran. Coshocton County: tim Kilpatrick, Coshocton County Joint vocational School District; Sue Sheck, Coshocton County Career Center. Delaware County: Jody Biggins, Cheshire Elementary School; Jill Johnson, Buckeye Valley Middle School. Franklin County: Noreen Castellano, Cheshire Elementary School; Kristi Ramsey, St. Catherine School. Green County: Pat Murakami, fairborn Intermediate School. Guernsey County: Shirleen Beynon, East Guernsey local; laura McComb, Caldwell Exempted Village School; lori Smith, East Guernsey local; Jessica Stepleton, Governor’s Office of Workforce transformation. Hamilton County: Jenny lohmann, hamilton County Dept. of Environmental Services. Lucas County: Jeannine Petcoff, Springfield high School. Marion County: Joan Griest, Marion City Schools; Pam holman, River Valley high School; Kecia Stewart-Slob, River Valley high School; lydota taylor, the EdVenture Group. Miami County: Doug Maynor. Ross County: Danielle Penrod, Waverly Junior high; Debbie Robinett, Worthington Elementary School.

Gas & Oil

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Gas & Oil

September 2012 Edition - Dix Communications

www.OhioGO.com

Chesapeake office means up to 400 JObS Laurie Huffman Dix Communications

a drilling rig is moved, for instance. Many of these affiliates may wind up in the Louisville field office, the most likely of which are listed below along with the year they were bought or created:

he new field office Chesapeake Energy Corporation is constructing in Louis-

ville means several things. For the company, it will bring centralization as its Utica drilling operations in the area pick up speed. For the city, it means more income tax dollars. For the community, it means up to 400 jobs, 200 of which will be new positions, and a boost to the local economy. Many are now wondering what makes up a Chesapeake field office, and what companies it may house. Officials report any of the company’s affiliates located in Ohio and nearby may wind up at the new Louisville site, which will be situated on 291 acres the company purchased between Beck Avenue and Route 44, south of Main Street (Route 153). Employees in Chesapeake’s field operations are right in the heart of the company’s production activities. And, since producing oil and natural gas requires many steps between drill site construction and selling production down the pipeline, Chesapeake has founded or acquired field service affiliates to provide the company control over the entire process, which equates to savings as well as speed, by eliminating the need for new contracts every time

• Chesapeake Midstream Development, (2002), provides services to move the product into pipelines. • Nomac Drilling, (2001), provides drilling services. • Nomac Services, (2011), delivers drilling, mud logging, geosteering and geotechnical services. • Performance technologies limited, (2011), provides pressure pumping for hydraulic fracturing. • thunder Oilfield Services, (2011), holds Chesapeake’s trucking, tool rental and excavating businesses. • hodges Oilfield trucking, (founded in 1932, acquired in 2006), offers heavy hauling and rig transportation. • Oilfield trucking Solutions, (2010), provides water Continued on pg. 27

Chesapeake Energy Corporation, building a new field office in Louisville now, is the second-largest producer of natural gas and the most active drilling program in the U.S. The company states it is positioned for growth with an increase in proved reserves, from 2002 through 2011, at a 27 percent, a rise in average daily production at a 23 percent, and an increase in fully diluted adjusted earnings per common share at a 20 percent for the same period.

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Dix Communications - Gas & Oil

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September 2012 Edition

“jobs” from pg. 26 transfer services in the Marcellus and Utica shales and hauls crude oil in the Eagle ford Shale.

tinued to aggressively expand its business operations and land holdings, even as natural gas prices have plummeted, a condition for which the company is partly responsible due to an increase in natural gas supply availability.

• Great Plains Oilfield Rental, (2006), supplies tools and services, including drill pipe, drill collars, tubing, and frac tanks. Chesapeake employs about 13,000 people, with about 4,600 of those being at the company’s corporate headquarters in Oklahoma City. The company is reportedly strapped for cash, currently holding more than $13 billion in debt. Chesapeake officials report that’s primarily because the company has con-

Porosity Por•o•si•ty noun : A measurement of the amount of pore space found in a formation. A formation can be highly porous but have low permeability if the pore spaces are not connected.

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Gas & Oil

September 2012 Edition - Dix Communications

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SummER CAmP showcases gas and oil drilling Denise R. Freeland Dix Communications

tudents attending Minerva Elementary’s first-ever summer enrichment camp had the opportunity to learn from geologists and oil and gas industry experts, as well as doing hands-on environmental data collection, and publishing a website to share all they learned. The camp got under way July 9 with team-building activities and an introduction to the Global Learning and Observa-

“They were very excited that the science they were going to be doing was real and the data was going to be used by real scientists.” – Debbie Hartwig

tion to Benefit the Environment (GLOBE) program, a worldwide hands-on, school-based science and education program in which students collect that St., is analyzed by scientists. 536 data Main Caldwell, Ohio “They were very excited that the science they were going to be doing was real and the data was going to be used by real www.benschaferrealty.com scientists,” said camp leader Debbie 536 MainHartwig. St., Caldwell, Ohio The students also participated in an activity that introduced www.benschaferrealty.com them to geology and the life cycles of different types of rocks. They also learned about taking core samples by “drilling”

Dix Communications Photo / Denise Freeland Chesapeake Energy Community Relations representative Aimee Belden shows Minerva Elementary students around a Chevy Tahoe that runs on compressed natural gas.

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“caMP” from pg. 28 through various types of candy bars with drinking straws and trying to identify what was in each from the sample. The students then participated in a “web quest,” in which each student chose to be a geoscientist, petrochemical engineer, investigative journalist or a graphic designer. The groups of students were then charged with becoming experts on the oil and gas industry throughout the week and working together to create a website for the community. While at the Beech Creek Botanical Garden and Nature Preserve in Alliance, the group also did soil experiments, led by GLOBE Trainer Nancy Baker-Cazan. The students learned to assess the color, texture and moisture levels of soil, and to use vinegar to test the pH, all tests done by oil and gas industry scientists. Water Analysis Laboratory Dominion East Ohio Gas Support Company geologist and Minerva Analytical Services resident Phil Zbasnik shared his rock collection with the students and also explained the geology of shale-gas deposits and the drilling and fracturing process.Select-O-Sep Chesapeake Energy hydrogeologist Mark Deering talked to the students about the science of geology, and Aimee Belden, www.selectosep.com Chesapeake Community Relations representative, gave the children up-close look at a Chevy Tahoe that runs on comcrgilpin@selectosep.com P O Boxan 158 pressed natural gas. Rd 740-994-4290 77520 Freeport-Tipp 740-658-3912 Freeport, OHthen 43973 The group traveled to a drilling site in Carroll County We have office space available for rent where Chesapeake Manager of Corporate Development Ryan Dean explained what they were seeing. On Friday, the students finished and launched their website,

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which can be seen at http://kafafa.com/accounts/minervainfodepot/. Their parents also visited to see a slide show of the week’s activities. The students said they hope to continue adding to the website during the upcoming school year. The enrichment camp was entirely funded by Chesapeake Energy, which also provided goody bags, notebooks and rock kits for the students.

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“Mayors” from pg. 6

Denny Roudebush Carrollton Administrator

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In Carroll County where there are more than 100 well sites, residents have noticed a quick trip to the store takes a little longer. “Traffic is the biggest thing we have seen, the additional traffic.” “I start my day at 7:15 a.m. and it is OK. But by 8 a.m., the traffic on Main Street and Canton Road gets bad until 4-5 p.m. It’s like someone flipped a switch. That’s the biggest thing we have seen at this point.” Roudebush noted the village and county officials have spoken to officials at the Ohio Department of Transportation about adding turn lanes and turn signals at some of the intersections. “Nothing has materialized yet,” he said. He believes local officials will need to continue to stress the importance of those improvements. State Routes 9, 39 and 43 travel through the village and are heavily traveled by both local and truck traffic. Although the village has seen an increase in population, Roudebush said the village has seen minimal changes in the income-tax revenue, but “that may change.”

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Marcellus Shale â&#x20AC;&#x2DC;a national treasureâ&#x20AC;&#x2122;

he Marcellus Shale is about to become the most productive natural gas field in the U.S., according to new data from energy industry analysts and the federal government. Ten years ago the United Norm Shade States Geological Survey estimated that President, the Marcellus Shale ACI Services contained 1.9 Tcf (trillion cubic feet) of recoverable natural gas. Although that is a lot of gas, spread over the enormous geographic extent of the Marcellus, it was not that much per acre. With recent Marcellus natural gas production rates surging to almost 6 Bcfd (billion cubic feet per day), comprising 9% of U.S. production, USGS now estimates recoverable reserves of 84 Tcf, and perhaps as high as 144 Tcf. Other studies have ranged nearly ten times higher than that! Whatever the reserves ultimately prove to be, it is widely agreed that the Marcellus Shale is a national treasure. Named for the town of Marcellus, New York, where the shale reaches the surface, it is a geological structure that formed roughly 390 million years ago when Devonian age seas covered much of North America. The black, low density, carbonaceous (i.e., organic rich) shale lies beneath much of the Appalachian Basin of Ohio, West Virginia, Pennsylvania, and New York, as well as small areas of Maryland, Virginia and other states. Most of the Marcellus Shale layer lies a mile or more below the earthâ&#x20AC;&#x2122;s surface, making it an expensive drilling target. Typical drilling costs exceed several million dollars for a horizontal well with hydraulic fracturing. Some of the more prevalent areas to date are those where thick layers of Marcellus Shale can be drilled at minimum depths. In West Virginia, the Marcellus formation is as much as 200 ft. thick. In extreme eastern Pennsylvania, it is 790 ft. thick, thinning to the west, becoming only 49 ft. thick along the Ohio River and only a few feet thick in Licking County, Ohio. Natural gas is trapped within the pore spaces of the shale, having difficulty escaping through the very thin and poorly connected pore spaces. This low permeability meant that historic wells in the Marcellus produced gas at unimpressive rates, however many of them continued to produce gas for decades. As with other shales, relatively new horizontal drilling and hydraulic fracturing technologies have allowed this rich resource

to be developed economically, and production rates are much, much higher than what was seen in earlier wells. It is estimated that more than 1000 Marcellus gas wells have been drilled in northern Pennsylvania, but are not yet flowing because of insufficient interstate and gathering pipeline infrastructure to take the gas to market. Interstate pipelines added nearly 1.5 Bcfd of capacity last year, and many additional pipeline projects have been proposed or are in various stages of completion. The boom also has expanded demand for gas compression and processing facilities. Further, Shell Oil Co. plans to build a $2 billion petrochemical plant north of Pittsburgh to turn Marcellus gas into other consumer and industrial products including plastics. In less than five years, the Marcellus Shale has turned the northeast U.S. into one of the most important natural gas producing regions of the country, with vast amounts of investment continuing to enter the region.

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“grocery” from pg. 14 CHEVY RUNS DEEP

The Kishmans are working on plans for a 10,000 squarefoot addition and a complete remodel and reorganization of the store, which will enable it to better serve the Stark, Carroll and Columbiana counties market. The addition will extend north toward U.S. Route 30, encompassing new, larger storage rooms and two new loading docks. In conjunction with the addition the interior of the store will be completely remodeled and reorganized, Jan said. Tom credits loyal customers with making the expansion possible, adding, “We’d like to thank everybody in Minerva and the tri-county area for supporting us. If it wasn’t for them, we wouldn’t be able to do this.” Kishman’s IGA is located at 202 E. High St. in Minerva and can be reached at 330-868-7727. It is open 7 a.m.-9 p.m., and the Gas & Go is open 6 a.m.-9 p.m.

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Role of coal has changed Judie Perkowski Dix Communications

s spokesman for the Guernsey-Muskingum Electric Cooperative, Inc., Garry Mbiad, general manager and CEO, said the cooperative was founded in 1938 in New Concord by a group of farmers from Guernsey, Noble, Morgan, Muskingum and Tuscarawas. Mbiad has been employed at GMEC for 32 years. He is officially retiring Aug. 31. “The farmers banded together, secured a loan from the government, established good business practices, and eventually became part of Buckeye Power, Inc., the generation and transmission cooperative jointly owned by 25 distribution cooperatives in Ohio,” said Mbiad. “Although cooperatives are continuously evolving because of changing regulations, the biggest changes occurred from the 1930s until the mid-1970s when most rural areas were electrified. “The main power source for electricity in Ohio was and remains coal because of our abundant supply. Eighty percent of the cooperatives’ power supply is coal, 10 percent is gas and 10 percent renewables. (Renewable energy comes from natural resources such as hydropower, sunlight, wind, rain, tides and geothermal heat, which are naturally replenished.) “Nuclear energy has been too expensive and the waste is hard to get rid of. Over the test of time coal has been the king of electricity markets because of its availability and because it has been the cheapest. Coal has always set the floor for electric generation prices. “But, that’s not the case any more. There is a war on coal in this country both in terms of mining it and burning it. Many older coal power plants have been closed or will be closed because they are either too impractical or too expensive to retrofit to comply with new EPA standards.” Mbiad said the cost of coal is increasing because of additional regulations on coal mining; stricter regulations on burning and the increasing cost of transporting the coal to the plant. And, demand is down because of the recession in 2008 when there was a loss of manufacturing. The biggest blow to the coal industry is the recent discovery of a huge reserve of shale resources in the Marcellus and Utica Shale Formations which has allowed natural gas to take a huge chunk of power generation from coal, Mbiad said. “Natural gas is cheaper and cleaner,” he said. “But, we are still in the infancy stage, relating to the demand for electricity by oil and gas companies, for their well sites, field offices and

Dix Communications Photo / Judie Perkowski Garry A. Mbiad, general manager and CEO of GuernseyMuskingum Electric Cooperative, in his office at the cooperative’s temporary headquarters while the company’s customary office in New Concord is undergoing renovations. processing plants. “If we pursue all the energy policies in this country, coal will certainly continue to have a valuable place at the table, though no longer the undisputed King for electric generation, it will continue to be a member of the Royal Family, along with the new Prince — natural gas. According to the U.S. Energy information Administration, since 2004, natural gas usage has increased from 17.9 percent in 2004 to 30.8 percent projected for in 2012. In 2004, coal led the energy industry with 49.8 percent of all U.S. electricity generation for all sectors (businesses, homes, government), steadily declining to a projected 36.7 percent in 2012. U.S. power plants have increased natural gas use by 40 percent compared to 2011. But not all the news is depressing for the coal industry, one of the biggest — and most costly — projects is Buckeye Power’s flagship Cardinal Power Plant in Brilliant, Ohio, which will soon join the “best in class” in reduction of emissions of sulfur dioxide, nitrogen oxides, mercury and particulates, with the completion of flue gas desulfurization systems, commonly know as “scrubbers.” The $300 million project, launched four years ago, will re-

“There is a war on coal in this country both in terms of mining it and burning it.” – Garry Mbiad

Continued on pg. 45

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Ohio’s gas/oil industry honors OOGEEP exec Rhonda Reda

honda Reda, executive director of Ohio Oil and Gas Energy Education Program, was surprised by more than 600 of her industry peers and family members last week at the Ohio Oil and Gas Association’s annual meeting as she was presented the distinguished 2012 Ohio Oilfield Patriot Award. The annual award acknowledges one individual who, by their actions and service, has made significant efforts to protect, promote and advance the common interest of those engaged in all aspects of Ohio’s oil and natural gas industry. Award sponsor Dan Pottmeyer, president, Producers Service Corporation (Zanesville), commented at the ceremony, “Her service and actions continue to make the Ohio oil patch the best in the country. Her work ethic, honesty and integrity have led to better exploration, development and production of the natural resources found in our great state. Her vision and lead-

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ership is being recognized with this award.” A shocked and tearful Rhonda Reda addressed the large audience, stating, “I am truly honored and humbled by this award. It is a pleasure and a privilege to be part of this great industry. These are extremely exciting times, I am truly honored to work with Rhonda Reda so many outstanding and quality people that help produce energy in this great state and in this country.” Reda helped formed OOGEEP in 1997 and since then Ohio’s energy education efforts have been recognized statewide, nationwide and internationally. To date, more than 2,600 teachers have participated in OOGEEP teacher workshops; 800 firefighters have participated in OOGEEP’s firefighter training programs; 1,400 industry workers have participated in specialized training programs, 200 students have been awarded either scholarships or science fair awards, and, last year alone, Reda has also given more than 170 public presentations covering workforce development, economic opportunities, jobs and information on the exploration, drilling and producing practices Continued on pg. 39 Authorized Full Servicing Dealer Briggs & Stratton, Tecumseh, Kohler, Kawasaki, Honda

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Rex Energy assists county firefighters with turnout gear Ryan Smith Dix Communications

ex Energy Corporation, based in State College, Pa., continues to support Carroll County with its most recent donation of $10,000 to the Carroll County Volunteer Fire Department for turnout gear. The donation will allow the fire department to purchase six sets of protective turnout gear, including new boots, gloves, pants and coats that firefighters wear when responding to emergencies. “Rex Energy is proud to partner with local organizations and is steadfast in its commitment to safety, the environment and continuous improvement,” said Thomas Stabley, CEO of Rex Energy. “Partnering with first responders in areas where Rex Energy has operations and ensuring that they are well prepared and equipped to respond to emergencies in the community is a key tenant of our operating principles. We thank these men and women and their families for their service to the commu-

“We thank these men and women and their families for their service to the community, and we look forward to building upon our commitment to this region as our development activities continue in Carroll County.” – Thomas Stabley, CEO of Rex Energy

Rex Energy recently donated $10,000 to the Carroll County Volunteer Fire Department. On hand for the check presentation are (left to right) Devin Herrington, Nathan Elson, Chief Jack Swinehart, Lieutenant Doug Miller, Captain Scott Nicholas, T.J. Hawk, Tyler Barrett, Tyler James, Dave Rogers of Rex Energy, Travis Sikon, Cason Leggett and Paul Sergent of Rex Energy. nity, and we look forward to building upon our commitment to this region as our development activities continue in Carroll County.” Rex Energy was contacted by the Carroll County Volunteer Fire Department requesting assistance in raising $10,000 to aid in purchasing new turn-out gear. Recognizing the fact that these volunteer firefighters put their lives on the line each and every time they respond to a call, Rex Energy was honored to have the opportunity to invest in the community by making this contribution to their fundraising efforts. The company’s first Ohio well is located in Carroll County and its office is located in the county seat, Carrollton. Last year, the company donated $10,000 to the Carroll County Genealogical Society, which was used to purchase a microfilm reader/printer and a computer system to run the reader.

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“oogeeP” from pg. 36 involved in the development of natural gas and crude oil in Ohio. “Rhonda is an enthusiastic educator and tireless advocate on behalf of the oil and gas industry,” said Jerry James, president of OOGA, and of Artex Oil Co. “She has travelled throughout the state educating Ohioans of all ages about the processes and benefits of oil and gas exploration, and our membership greatly appreciates her efforts and contributions. She is the embodiment of an Oilfield Patriot.” Tom Stewart, OOGA executive vice president, believes Rhonda Reda plays an integral role not only in Ohio, but across the United States. “She is recognized nationwide as a leader in energy education, as an advocate for the industry, and ferocious defender of the industry,” said Stewart. “There are several energy education programs across the nation, and no one does it better than Ohio,” said Charlie Burd, executive vice president of the Independent Oil and Gas Assoc. of West Virginia. Jerry Jordan, Knox Energy, Inc., and former chairman of the Independent Association of America, added, “she has contributed greatly in a diverse list of ways. She knows what the mission is, gets involved and gets it done.” Chief Brent Gates of the New Concord Fire Dept. and Ohio Fire Chiefs’ Association board of directors, commented “She shows so much respect. It’s a five star organization. She will always be a part of the fire service for what she has done for

fire departments in the State of Ohio.” Jeanine Gogolski, Education Partners, LLC, and former Ohio teacher, praised Reda for her efforts in education and conduction of OOGEEP’s Science Teacher Workshops, stating “Rhonda has helped reach thousands of teachers and students around Ohio with facts and information about Ohio’s oil and gas industry and has done it in many ways.” Past Oilfield Patriots include Steven L. Grose (2011), David R. Hill (2010), James R. Smail (2009), W. Jonathan Airey (2008), Sarah Tipka (2007) and Jerry James (2006). David R. Hill, Sarah Tipka and Jerry James have all served on the board of directors for OOGEEP and OOGA. The Ohio Oil and Gas Energy Education Program is a nonprofit statewide public outreach program. Its mission is to facilitate educational, scholarship, safety and training programs; to promote public awareness about the industry; and to demonstrate to the general public the environmental, energy and economic benefits of Ohio’s independent natural gas and crude oil producers. OOGEEP is not funded with any taxpayer dollars. The Ohio Oil and Gas Association is a statewide trade association with over 2,600 members who are actively involved in the exploration, development and production of crude oil and natural gas within the State of Ohio. The Association’s mission is to protect, promote, foster and advance the common interests of those engaged in all aspects of the Ohio crude oil and natural gas exploration and production industry.

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Top CounTies WiTh horizonTal Drilling aCTiviTy By numBer of siTes

1. Carroll County 125 2. Columbiana County 48 3. Harrison County 29 4. Jefferson County 28 5. Monroe County 24 6. Guernsey County 16 7. Belmont County 13 Stark County 13 8. Noble County 12 Mahoning County 12 9. Portage County 10 10. Tuscarawas County 7 11. Muskingum County 3 Coshocton County 3 12.Trumbull County 2 Knox County 2 13. Geauga County 1 Ashland County 1 Medina County 1 Wayne County 1 Holmes County 1 Well SiteS SiteS in variouS variouS Stage tageS:: Permitted, drilling, drilled, ComP ComPleted, ProduC ProduCing, Plugged SourC Sour Ce: ohio dePartment of natural reSour ourC CeS aS of 8/5/12

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Upcoming events in Gas & Oil industry Regional Producers meeting – Region ii Date: Monday, September 10, 2012 time: 1:30 p.m. location: McKinley Grand hotel Address: 320 Market Avenue South, Canton, Oh Ohio oil and gas regulations have seen recent changes that will impact Ohio producers. these changes range from new administrative rules on well construction to legislative changes contained in Senate Bill 315 impacting hydraulic fracturing disclosure, UIC wells, and midstream activities to name a few. tom Stewart, OOGA Executive Vice President, will provide an overview of the changes in Ohio regulations. for additional information, please contact Pete MacKenzie, VP of Operations, at pete@ooga.org yOunG 2012 September 6-7, 2012 Covelli Center, Youngstown, Oh the 2nd annual Youngstown,

nFPA2112/2113 & the hazard of Flash Fire Seminar September 18, 2012 10:00 a.m. – 2:00 p.m. (lunch Provided) hilton Garden Inn Pittsburgh/ Southpointe, Canonsburgh, PA Presented by Bulwark Protective Apparel Attendees will learn more about: the flash fire hazard; the latest flame-Resistant fabrics black Gold Ohio and how they work; understand September 12 – 13, 2012 the Westin Columbus, Colum- NfPA 2112/2113 and Ul certification; how to implement a fR bus, Oh this Infocast Summit takes clothing program quickly. https:// place during a revival of Ohio app.e2ma.net/app2/survey/141 manufacturing with the Utica 0154/213005082/64b3addf45/ and Marcellus booms. As a result, Ohio has seen a significant Energy Choices For Ohio: imrise in demand for steel mills, pacts Of Efficiency, Technolsurveyors, pipe makers, tank- ogy & Carbon management ers for hauling water, trailers for September 18, 2012 transporting frac sand and other 8:30 a.m. – 3:30 p.m. supporting manufacturing and Quest Business & Conference development. http://infocastinc. Centers, Columbus, Ohio com/index.php/conference/665. this one-day workshop will explore the nexus between energy usage and carbon management for Ohio companies, especially Ohio Utica and Natural Gas Conference & Expo, or YOUNG, will be held at the Covelli Centre in Youngstown September 6. As with YOUNG 2011, YOUNG 2012 will be packed with exhibitors, experts and attendees from the shale industry, its suppliers and related industries. www.young2012expo.com

those with current or future reporting requirements through the U.S. EPA’s Greenhouse Gas Reporting Program. http://www. ohio.edu/ce3/ghgrp/. American Association of Petroleum Geologists Eastern Section 41st Annual meeting September 22 – 26, 2012 the Renaissance hotel, Cleveland, Oh www.esaapg2012.org

Pittsburgh Chemical Day September 25, 2012 Omni William Penn hotel – Pittsburgh, PA PCD is the largest, premier oneday event held in the industry. this year’s event promises to be much larger with the focus on the inherent ties between the chemical and energy industries. Generate new network connections to capitalize on industry relationships. www.pittchemday. com

Available Industrial Space Jeff Mathias Owner/Broker

330-827-1038

524 River St. Dover, OH-$895,000

60,000 sq. ft. zoned industrial, 6.95 acres gated w/10’ steel fence, 3 phase power, will subdivide & lease space, 1.2 miles to I-77 exit 83

4302 Shoemaked Rd. SW Port Washington, OH $975,000 or lease for $9,000 monthly 24,000 sq. ft. warehouse on 7.5 acres, 4 offices, conference room, 3 phase power. Easy access to I-77 & I-70 off exit 65

224 Zeltman Ave. NE Strasburg, OH $800 per acre per month lease 6 acres, 2 BR house can be office or living quarters, 6 stall barn & detached workshop. Across from Schlumberger’s new plant

Erie Ave. SW Navarre, OH-$299,900

2379 SR 39 NE New Philadelphia-OH $98,900

507 Wabash Ave. NW, New Philadelphia, OH

330-364-7761

www.pmsold.com jeffmathias@pmsold.net

10841 Fisher Rd. NW Bolivar, OH-$795,000

2.82 acre commercial fenced lot just south of Massillon and 5 miles from Canton. Quick assess to industrial park, and SR 21 and SR 30

40x80, 3,200 sq. ft. cement block bldg. w/restroom, kitchen & 2 offices, open shop space, 3/4 acre lot ideal for fenced in yard, will consider owner financing w/$15,000 down

10062487

Bolivar Industrial Park, 12,000 sq. ft. warehouse w/loading docks & 1,500 sq. ft. office on approx. 4 acres, 3 phase power, 1 mile off of I-77 exit 93

www.OhioGO.com

Dix Communications - Gas & Oil

he reliable choice for locally supplied fuel, lubricants and more on busy oil and gas sites.

1st Choice Energy Services is your local partner, managing your supply of fuels, lubricants, solvents and other materials needed to support Utica Shale oil and gas exploration. Call Eric Leindecker or Larry Baxter toll-free for quotes and service arrangements.

September 2012 Edition

Our Ohio Locations Alliance Bellville Cadiz (Harrisville) Canfield Carrollton Loudonville New Philadelphia Newark

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Gas & Oil

September 2012 Edition - Dix Communications

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Dix Communications - Gas & Oil

September 2012 Edition

“coaL” from pg. 34 move approximately 98 percent of sulfur dioxide produced in the generation process, and will allow it to continue to burn Central Appalachian coal. “Even though older coal plants are being retired in favor of natural gas plants, newer modern coal plants like Cardinal, that have made the investments to reduce emissions, will continue to be competitive, even with natural gas,” said Mbiad. “I think consumers might be wondering why don’t we just convert our power plants from coal to natural gas. Well, just like you can’t put diesel fuel in your car instead of gasoline without changing the motor, you can’t just put natural gas in as a fuel source at a coal power plant without major changes. Is it impossible? No. Is it practical? In most cases, no!” All Ohio cooperatives depend on Ohio Rural Electric Cooperatives, Inc., the statewide trade association, for services like loss control and safety training, group purchasing, lobbying and communications, including production of Country Living magazine, the state’s largest-circulation monthly magazine. The cooperatives get their electricity from Buckeye Power, Inc., an electricity generating and transmission co-op that was formed and is owned by the 25 distribution co-ops, including GMEC. And all these cooperatives are linked together with more than 600 other electric co-ops across the country in a national alliance called Touchstone Energy®.

Apartment living at its best. Luxurious. Spacious. 1, 2 & 3 Bedrooms. In a quiet wooded setting. Alliance, Ohio

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Gas & Oil

September 2012 Edition - Dix Communications

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OhiO Well Activity

by the numbers

MArcellus shAle 10 Wells Permitted 0

Wells Drilling

Wells Drilled

Wells Producing

17 total horizontal Permits

uticA shAle

185 Wells Permitted 28 Wells Drilling 97 Wells Drilled 17 Wells Producing 3 inactive lost hole 5 335 total horizontal Permits

Data as of 8/5/12 Source: Ohio Department of Natural resources NEW AND USED EQUIPMENT AVAILABLE

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WE SERVICE WHAT WE SELL!

Baker & Sons Equipment offers a full service shop with factory trained technicians and two over-theroad service trucks so we are able to service everything we sell! We have a well stocked parts department that includes hydraulic hose repairs.

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Dix Communications - Gas & Oil

www.OhioGO.com

September 2012 Edition

TRUST MATTERS. Especially When It’s Your Money. Have you ever wondered who your financial consultant really works for? I work strictly for you. I work hard to build a relationship of trust by providing thoughtful, unbiased guidance and placing your interests first. Invest with a knowledgeable financial consultant who’s on your side; someone who truly cares whether your investments are right for you. Call today for more information or to schedule a consultation.

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Gas & Oil

September 2012 Edition - Dix Communications

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Ohio SEPtEmbER ER 2012 • www.ohiogo.com A FREE monthly PublicA PublicAtion PICK UP THE LATEST COPY OF “GAS & OIL” AT ANY OF THESE CONVENIENT LOCATIONS THROUGHOUT OUR AREA

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There’s Room To Grow

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TO ADVERTISE: 740-439-3531 CAMBRIDGE 330-821-1200 ALLIANCE 740-425-1912 BARNESVILLE 330-677-7180 FOR NATIONAL 740-498-7117 NEWCOMERSTOWN ADVERTISERS 10040270