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Table of Contents 4
Industry Gives House Sellers A Boost
6
Who’s Got The Right Of Way
9
TransCanada Debates Adding New Pipeline
10
Rally Held to ‘Support American Energy’
12
Shale Insight 2014 to be Held in Pittsburgh
14
Oil and Gas Activity Spurs Louisville New Hire
Cliff Little / Guernsey OSU Extension Dan Davis / Dix Communications
G.C. Dix II
David Dix
EXECUTIVE EDITORS Lance White
Laurie Huffman / Dix Communications
Ethane Cracker Benefits Many
18
Teachers Take Field Trip to Production Sites
20
Students Prepare for Industry Jobs
22
Shell Sells Shale Gas Rights for $2.1 Billion
24
Gas, Oil Transforming Economic Development
27
Compromise Reached in Holmes Drilling Case
28
Important Cases Go Before OH Supreme Court
30
Utica Shale Academy New Source for Learning
34
Andrew S. Dix
Judie Perkowski / Dix Communication
17
33
PUBLISHERS
Thomas Doohan / Dix Communications
Roger DiPaolo
Amadeus Smith / Dix Communications
Ray Booth
Rachel Sluss / Dix Communications Jonathan Fahey / Associated Press
Rob Todor
Dan Davis / Dix Communications
Christine L. Pratt / Dix Communications
REGIONAL EDITORS Kimberly Lewis
David J. Wigham / Attorney Rachel Sluss / Dix Communications
Erica Peterson
Be Fair, Be Prepared Don Gadd / Landman
Cathryn Stanley
Students Give Thumbs Up to Zane State Program Judie Perkowski / Dix Communication
36
Frank McClure / Attorney
38
Trux Keeps on Truckin’
41
Zane State Donors Are Epic
42
School District Takes New Steps in Stem Education
44
Explaining Horizontal Drilling with Twinkies
Protecting Your Family’s Interests from Divorce
Thomas Doohan / Dix Communications Judie Perkowski / Dix Communication
Amadeus Smith / Dix Communications Kimberly Lewis / Dix Communication
Niki Wolfe
Judie Perkowski
LAYOUT DESIGNER
ADVERTISING DIRECTORS ADVERTISING DIRECTORS Rhonda Geer
Harry Newman
Kim Brenning
Jeff Kaplan
Ohio OCTOBER 2012 • www.ohiogo.com
47
Cambridge Man Names Senior VP at OOGA
48
Stark State Opens $2.3 Million Training Center
51
Ohio House Speaker Given ‘Patriot Award’
52
Stop Singling Out Fracking for Water Shortage
55
Hess Corp. Host United Way Kick-Off
56
Energy and Earhquakes
59
Barnesville Attorney Brings Shale Experience
60
Buckeye Water Service Provides for Industry
63
Debunking the Myths of Hyrofracking
64 Ed Archibald
A FREE MONTHLY PUBLICATION
66
Laurie Huffman / Dix Communication
Judie Perkowski / Dix Communication Chris Faulkner
Judie Perkowski / Dix Communication Isaac Orr / The Heartland Institute
Judie Perkowski / Dix Communications
Greg Kozera
EV Energy Partners to Drill in Tuscarawas Co. Judie Perkowski / Dix Communications
Rex Energy has Meet and Greet with Landowners Thomas Clapper / Dix Communications
69
Deadline Sept. 30 for Gulfport Grants
70
EIA Study Predicts Growth
72
Energy Briefs
75
Relationships Grow with Extended Pipeline
DIGITAL CONTENT MANAGER COVERAGE AREA Brad Tansey
76
Marcellus Shale Named Largest in US
ART DIRECTOR
79
Colorado Democrats Avoid Fracking Fight
80
Gas and Oil Jobs Going to Local Workforce
82
Belmont College Adds Energy Industry Programs
85
‘Gas Prices Are Just Too Low’
86
Company Helps Fund Barneville K-9 Unit
Jeff Pezzano
Pete Kiko
LAYOUT DESIGNER Jenna Conaway
“Gas & Oil” is a monthly publication jointly produced by Dix Communication newspapers across Ohio. Copyright 2014.
Kristen Spicker / Dix Communications
Ivan Moreno / Associated Press
Dan Garcia / Attorney
Cathryn Stanley / Dix Communications
Judie Perkowski Dix Communications
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AMBRIDGE, OH — A new study to determine the effect shale development will have on Guernsey County communities and how the issues will be addressed, particularly in housing, was the focus for a recent meeting of the Housing Advisory Committee, moderated by Kim Haught, director of Cambridge City Economic and Community Development, and Evelyn King, development specialist. The HAC is taking part in the Guernsey County Shale Development Plan, funded by a grant from The Ohio State University Extension. OSU will act as a consultant for the Guernsey County Planning Commission. Haught said input from attendees at the meeting will help the HAC coordinate housing needs with available funds. “The plan should provide the greatest long term benefit to the greatest number of present and future citizens of Guernsey County,”said Haught. “This study will help us determine the impact of the gas and oil industry in regards to housing.” The composition of attendees at the meeting included heads of local social service agencies and residents of Guernsey County, a representative from the Veterans Commission, Habitat for Humanity and a Realtor. No one from City Hall, except Haught and King, or the county commissioners’ office were in attendance. Everyone received questionaires to complete and distribute to friends, neighbors and co-workers. King said the Shale Development Plan should have widespread community support, and should be based on and reflect community values, beliefs and expectations.
“We want to hear from the general public, from people in the community whose housing affordability has been affected by the gas and oil industry,” said King. The primary task of the HAC will be to identify gaps in housing services for the low to moderate income population in the area. Once the gaps have been identified, the HAC will recommend eligible Community Housing Impact and Preservation (CHIP) activities and funding that will increase service to that population. Eligible project categories include rehabilitation assistance for owner or rental home repair; home ownership assistance (down payment assistance and rehabilitation); and new construction with Habitat for Humanity. (Check with HAC for eligible funding source.) King said, “the cost of housing in the community, primarily rentals, was created by the gas and oil industry. Our residents are being priced out of the county. Especially the disabled and senior citizens.” Several people said they were aware of instances when people were actually forced from their homes because the owners raised their rent exponentially to accommodate workers in the gas and oil industry. One attendee said that a problem with the gas and oil boom is that in spite of some gas and oil companies’ success, there are some that have suspended or curtailed their operations because of lower than expected production from their wells. Even with modern technology, some geologists say they don’t think anyone has hit the “sweet spot,” so it is still a gamble when millions of dollars are at stake. In the best case scenario, companies are still reluctant to commit to any permanency, so they look for temporary occupancy for their workers and are willing to pay an exorbitant price.
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“There is more than one reason that we (in Guernsey County) have no affordable housing. We have asked for gas and oil people to get involved. But, because many workers are temporary, the gas and oil companies nor the city is willing to undertake necessary projects such as water and sewage and paved streets, in addition to other necessities like Internet service, to consider new construction,” said King. “Additionally, many low and moderate income people have not recovered from the loss of jobs because of business closures, which has lead to mortgage foreclosures adding more people to the list of those looking for affordable rent.” A question was posed regarding the current drive to demolish houses that have been vandalized and are no longer safe. Why does the process to hold property owners liable for repairs or demolition take so long, giving vandals the time to make the house un-livable and un-repairable. Realtor Dave Ogle said there are 500 vacant homes in Cambridge. “Investors would fix them up if they could get a tax break or incentive.” King said she is working on a deal to address home restoration and is partnering with other agencies to help people Anyone who would like to complete a survey about issues important to you relating to housing, should call Haught or King at (740) 432-4882, or (740) 439-5491. Surveys should be returned by to the Economic and Community Development office, downstairs at the city administration building, 1131 Steubenville Ave.
Cliff Little Guernsey County OSU Extension Agricultural and Natural Resources Educator
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t has become a common occurrence in Eastern Ohio to see oil and gas related pipelines being installed through pastures and crop fields. While many sections of these lines are installed and reseeded to the farmer’s satisfaction, some are not. Lately, I have been asked by farmland owners and contractors alike to assess the reseeding success of individual sections of right-of-ways. Below are some ideas which I hope will curb some of the incidents I have noticed. Above all, have the document prepared by your attorney addressing the farm needs and reseeding. Too many times landowners are attempting to negotiate a potentially lifelong contract without legal advice. Identify the location and width of the temporary work area and pipeline. Landowners might want the pipeline company (referred to as the grantee) to provide a plat depicting all portions of the construction and installation operations permitted under the easement. It would also be helpful to the farming operation to identify the construction time period while ensuring it does not exceed the negotiated number of days to complete. Of course, landowners wanting their farm reclaimed to specific standards will also need to define the consequences for noncompliance with the contract terms. One document that provides specific guidance on farmland reclamation is the Ohio Department of Natural Resources Division of Soil & Water Conservation “Pipeline Standard and Construction Specifications.” As the landowner, you may want the final say as to the completeness of the reclamation project. This means the landowner needs a company contact name and number to consult during the process. Landowners will also need to define entry and exit points, types of gates to be utilized. In addition, establish who is responsible to maintain the gates and fence. Farmers may need a defined area for crossing the pipeline
even when under construction. It is possible surface water such as springs, ponds and streams might be impacted and the farm owner might want to include in the agreement the remedy for such impact. Any of these items not in writing will be difficult to enforce. Landowners might want to describe in their contract what locations and forages are to be seeded, the seeding method to be used and seeding rates. It might also be helpful to provide a description on how the area is to be mulched and what water diversion practices will be installed. Water diversion practices such as silt fences and water bars can be quite an obstacle when mowing and/or clipping. Identify, once vegetation is established, when and whom will be responsible to remove these items and reclaim these areas. Crop yields and timber will be impacted, possibly for years. Part of the pipeline negotiation settlement should take all crop damages for multiple years into account. It is possible that the disturbed pipeline will become weed infested or experience erosion. If this occurs, what procedure is to be followed and how soon? Proper weed control is an occasion sensitive practice that is best accomplished in a timely manner. Although not recommended, some farmland owners may have lumped all “appurtenances” such as but not limited to, drips, valve, piping and metering equipment under one document. All of these structures might need fence, some kind of reseeding and long term weed plans. The landowner might also want to retain and reserve the right to continue to enjoy use of the surface of the easement for any and all purposes, provided they do not interfere with or prevent the pipeline company use. It might be important to landowners to reserve the right to build and use the surface of the granted easement area for drainage ditches, roads, gardens, lawns, grazing, plantings and crops. It might also be important to some farm operators to reserve the right to construct a private or public road across the easement as
the farm expands or in support of the current operation. The scope of a pipeline company’s activities on the easement may impact the farm operation and therefore could be described and limited in the right-of-way grant. For example, if no hunting, fishing, loitering, lodging, camping or similar activities by the grantee or its contractors or guests are permitted, be sure to have your attorney add this to the document. Parking of vehicles, trucks or other equipment necessary for construction might also be limited to the period of construction if likewise described in the agreement. For some farms, preserving esthetics is important and they might not want the easement area to be used as a storage area or staging area. If not, this should be agreed to in writing. Finally, nothing lasts forever. Some landowners might want to describe what triggers the end of this agreement. To eventually clear the farm title of this encumbrance, landowners may want to consider only granting the use of the easement for a specific term. In addition, carefully consider any language in the easement agreement that purports to give rights to the grantee in perpetuity or exclusively. We have only begun to describe a few points on how pipelines impact pastures. For more landowner related information go to The Ohio State University website, www.serc.osu.edu/extension. Never sign anything without talking to your attorney and remember to put everything in writing.
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Join us at the Guernsey County Jr. Fair Livestock Sale • Friday, Sept. 12, 2014 • Beginning at 9:00 a.m. • Guernsey County Fairgrounds, Old Washington • Two Sale Rings sell simultaneously. Swine starts at 9:00 a.m. It is time once again to support the youth of our county by attending the Guernsey County Junior Fair Livestock Sale. We are gearing up for another exciting sale and hope you will be a part of it. NOTE: Buyer’s who need a person to buy on their benefit in the second sale ring can make arrangements to do so on Sale Day.
Sale Order 9:30 a.m.
SHEEP ARENA
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What’s Selling 12 Dairy Product Baskets 105 Goats 75 Pens of Rabbit Fryers 75 Pens of Chicken Broilers 65 Lambs 40 Market Steers 22 Beef Feeder Calves 30 Dairy Beef Feeder Calves 210 Hogs
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For Additional Info Contact: OSU Extension, Guernsey County Phone: 740-489-5300
Dan Davis Dix Communications
I
n response to a growing need for natural gas in the Midwest, Gulf Coast and portions of eastern Canada, TransCanada is evaluating the viability of adding a new natural gas pipeline to its existing ANR Pipeline system. The proposed ANR East Project would reportedly stretch from Clarington, along the Ohio River in northeast Monroe County, to Bridgman, Mich., a distance of approximately 500 miles. “In general, ANR is continuing to evaluate the feasibility of the new natural gas pipeline that would connect to our existing ANR Pipeline system,” said Gretchen Dewailly Krueger, spokesperson for TransCanada. “We are actively seeking commercial support, while concurrently reaching out to local communities along a potential route. We have not yet made any regulatory filings with the Federal Energy Regulatory Commission or other agencies. “As the project moves forward, we will again reach out to the local communities to provide additional information and gather feedback. At that time, we will be able to provide more project specific information such as time lines, scheduled activities, pipe size and proposed construction methods and a suggested route. We will also have detailed, one-on-one conversations with each impacted land-
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owner about next steps, right of way compensation and future land use.” Krueger was quick to note the route being considered has not been finalized. “We hope to make a decision by the end of this year on whether to pursue the ANR East Pipeline Project,” she added. The Calgary, Alberta, Canada-based company operates 42,500 miles of natural gas transmission pipeline in North America, one of the largest systems on the continent, tapping into nearly every major gas supply basin and transporting approximately a fifth of the North America’s daily natural gas supply. The company is also the continent’s third largest natural gas storage provider with a capacity of more than 400 billion cubic feet. Corporate assets include the ANR system, which transports natural gas from Texas and Oklahoma to the Gulf of Mexico, as well as points in the Midwest, including those in Ohio, Indiana, Illinois, Wisconsin and Michigan, and the Keystone Pipeline system, transporting nearly 25 percent of Canada’s crude oil exports to the United States along its 2,639 mile length.
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and I am confident in saying that our commitment to Pennsylvania’s coal industry does not mean we have to sacrifice clean air.” In April, in anticipation of EPA’s proposed rule, Pennsylvania submitted a plan that would achieve lower emissions from existing power plants, which would lead to cleaner air, by removing obstacles and encouraging efficiency projects. At the heart of Pennsylvania’s plan is efficiency and the preservation of states’ authority and discretion in the development and implementation of emissions control programs. “No one disagrees that protecting our environment is crucial, and that we need to do our fair share,” Corbett said. “In Pennsylvania, that is exactly what we are doing. We have proposed a plan to EPA that would realize lower emissions and cleaner air through increased efficiency, without endangering jobs or our stable and diverse energy supply.” The Pennsylvania Department of Environmental Protection (DEP) will be testifying on EPA’s proposed rule, offering Pennsylvania’s plan for how cleaner air, lower energy prices and more jobs can be achieved through a responsible plan for emissions reduction that recognizes Pennsylvania’s diverse energy resources. For more information about Governor Corbett’s energy plan for Pennsylvania, visit www.governor.pa.gov/energy. To review the plan submitted by Pennsylvania, visit www.dep. state.pa.us, select “Air,” then “Bureau of Air Quality.”
u
arrisburg, PA – Pennsylvania Governor Tom Corbett led an event on behalf of working families in Pennsylvania’s energy sector this summer. Joined at the Rally to Support American Energy in Pittsburgh by West Virginia Governor Earl Ray Tomblin and Ohio Lieutenant Governor Mary Taylor, Gov. Corbett criticized the U.S. Environmental Protection Agency’s (EPA’s) recent proposed rule for power plant emissions reduction, which could result in significant job loss in Pennsylvania. “In Pennsylvania, nearly 63,000 men and women work in jobs supported by the coal industry,” Corbett said. “Anything that seeks to or has the effect of shutting down coal-fired power plants is an assault on Pennsylvania jobs, consumers, and those citizens who rely upon affordable, abundant domestic energy.” Pennsylvania’s coal industry is a vital contributor to the state’s economy, with direct, indirect and induced impacts responsible for approximately $4.1 billion in economic output; $2.1 billion directly by the coal industry. Of the nearly 63,000 jobs attributed to Pennsylvania’s coal industry, more than 8,100 are miners. Coal is a crucial energy resource, used to generate more electricity than any other resource in Pennsylvania and responsible for approximately 44 percent of the state’s electricity generation. In 2011, Pennsylvania generated 227 million megawatts of electricity, making it the second largest producer of electricity in the United States and the largest net exporter of electricity among the states. “Reducing greenhouse emissions is a goal we support,” Corbett said. “However, some officials refuse to acknowledge that coal is now cleaner, and they don’t recognize the advancement this American industry has made, particularly in Pennsylvania. In recent years, Pennsylvania has made great strides to reduce emissions,
Anyone interesting in registering should visit shaleinsight.com/ register-now. Registration before Sept. 16 costs Marcellus Shale Coalition members $775, non-members $975, academic and nonprofit attendees $475 and government attendees $375. A discount for groups more than five people is$725 for Marcellus Shale Coalition members and $925 for non-members. The fee includes attendance to the pre-conference woorkshops, luncheons, conference materials, a conference bag and more. For more information visit shaleinsight.com.
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ITTSBURGH, PA — The Shale Insight 2014 conference is scheduled for Sept. 24-25 at the David L. Lawrence Convention Center in Pittsburgh. The conference focuses the creation and development of clean, natural gas from Marcellus Shale specifically. By connecting policy makers, industry leaders and elected officials with sponsors, attendees and industry companies, the Shale Insight conference provides participants the opportunity to discuss the developing industry with its main players. With keynote speakers ranging from Bill Richardson, former secretary of the U.S. Department of Energy and 30th Governor of New Mexico, to Dana Perino, a former White House press secretary and political commentator and co-host of Fox’s “The Five,” the conference provides a wide variety of speakers with different viewpoints and experiences. Along with speeches from keynote speakers, the conference also includes public affairs and technical sessions. Some of the sessions; topics include drilling and completions in the Appalachian basin, creating sustainable habitats through pipeline development and how shale is impacting America in world energy exports. The Shale insight conference provides attendees the chance to attend pre-conference workshops and discussions. Held Tuesday, Sept. 23, the event hosts technology showcase keynote presenter, Kemal Anbarci, the vice president and managing executive of Chevron. The showcase allows companies to present developing technologies to natural gas producers, midstream pipeline and service community. Topics for the day include pre-drilling water sampling, protection of sensitive lands and the planning of the Underground Injection Wells in Pennsylvania. The official conference starts with registration at 6:30 a.m. on both days. A continental breakfast that lasts until 8 a.m. will help wake up participants and prepare them for a day of keynote presentations, breakout sessions and networking. With multiple networking breaks held in the exhibit hall throughout the day, participants are able to meet with industry leaders, suppliers or other conference attendees to bounce ideas off each other or create new business contacts. The conference concludes Thursday, Sept. 25 at 1:30 p.m.
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OUISVILLE, OH — Vince Marion was hired to fill a position in Louisville primarily due to oil and gas developments in the area. City Manager Tom Ault said the position of director of planning and development had been left vacant for at least four years, but the city decided it re-fill it based on oil and gas development, in part, along with growing numbers of residents, which can also be traced back to oil and gas activity. So far, Marion is working at top speed to keep up with anticipated growth as oil and gas companies continue to set up shop in the city. Since Marion took the position four months ago, he has focused primarily on two commercial development projects. One, called the 44 Corridor, consists of 12 parcels of land owned by seven different people. About 75 to 80 percent of the area being developed is part of Brookside Farms, located on State Route 44, just of U.S. Route 62. The development will be mostly commercial with
some residential. The old Brookside Farms barn is currently being rented out for events, and that will remain unchanged. “We’re expecting to see increased development as a result of the oil and gas industry. But, Louisville, in of itself, has a good location,” Marion explained. The second project that has demanded Marion’s attention is a new commercial/residential development being built on 133 acres situated between California and Broadway avenues, just off Route 62. The conceptual site plan consists of 245 condo units, each with two bedrooms and two-car garages, and a commercial strip behind the condos, facing Route 62. “I am told the developer may put a restaurant there, or maybe a small plaza, or both,” said Marion. When asked if Louisville is beginning to run out of land suitable for more commercial development, Marion said the city will continue to annex land from Nimishillen Township as the need arises in order to meet the growth potential. He pointed out the
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city has already sprang back from the commercial downsizing it experienced about a decade ago. Along with Chesapeake Energy, which has built a field office in Louisville complete with a five-story, 87,000-square-foot office building, the city also boasts Allegheny Ludlum steel plant; Midlake and HP, which both manufacture specialty products; and Ohio Transformer. In addition, Marion said he just found out 77 Energy is moving onto a portion of the 300 plus acres Chesapeake owns at the field office. 77 Energy specializes in providing pipe and materials needed for Midstream construction as well as for drilling. “We have a lot of good industries in town that are diversified, and we want to see an even more diverse employment base developed here,” Marion closed.
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Thomas Doohan Dix Communications contribute to low ethylene prices which makes chemical manufacturing more affordable. With European chemical producers working with more expensive feedstocks, foreign investors have been looking to this region. She said 54 percent of all investment in the chemical industry is from overseas. Already, Klein said some Ohio chemical companies have announced expansions. From Ashta Chemicals in Ashtabula county to Potash Corp. in Allen County, she said companies are planning on expanding their operations. With growth expected, Klein said everybody wins. tdoohan@the-daily-record.com.
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OOSTER, OH — Proposed ethane cracker plants in the Utica and Marcellas shale regions mean bright futures for everyone — from chemical producers to chemical consumers. Shell Chemicals and the Odebrecht Organization have been taking steps to build ethane crackers plants in the area for a number of years. Shell has been making plans in Beaver County, Pennsylvania and Odebrcht’s plan is for Wood County, West Virginia. Ohio Oil and Gas Association director of public relations Mike Chadsey said the plants will be good for the gas and oil industry because producers will no longer have to send their ethane, a product of natural gas production, to the Gulf coast of Canada for processing. “We found a market for our product,” he said. Chadsey said this also means ethylene production will stay local and that is good for everyone. “Chemistry and chemical manufacturing is pretty much used in every industry,” Ohio Chemistry Technology Council president Jenn Klein explained. Chemical producing companies, manufacturing businesses, technologically companies, research laboratories and agriculture all use chemicals, she said and explained the list goes on. She added “we make the product that makes products possible.” Klein said it all starts with natural gas producers delivering their ethane to cracker plants. The ethane is literally cracked, or split, she explained into ethylene by means of heat. Plastics, resin adhesives and other adhesive products are all rooted in ethylene, she said and described how from those products more chemicals can be produced with more processing. The OTCC president explained everything from beverage containers, plastic food wrappers and pharmaceuticals all have their roots in ethylene. While Chadsey and Klein said the proposed cracker plants are good for everyone, Klein said added that it is particularly good for Ohio. “(Ethylene) is kind of a feed stock for the chemical manufacturing industry,” Klein said and explained the buckeye state is the 6th highest chemical producing state in the country. With cracker plants so close to Ohio, she said the already robust Ohio chemical industry will have plenty of opportunities to grow and get stronger. Klein said the cracker plants spur industry growth because they
Ph/Fax: 330.698.1555 Mon.-Fri.: 8AM to 5PM; Sat. till Noon
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eachers from around Ohio got a front-row view of the gas and oil production process. Put on by the Ohio Oil and Gas Energy Education Program (OOGEEP), the two-day workshop allowed Ohio teachers to get a full understanding of the production process, from gathering core samples to storing the gas and oil. Day one involved in-class projects, many of which Eric Sampson, director of the new Utica Shale Academy, will take back to the school. “The experiments we did in the classroom are things we’ll definitely be doing back at the academy,” Sampson said. Sarah Tipka, OOGEEP board member and workshop coordinator, said it was important to allow teachers to spend classroom time learning in more ways than listening and taking notes. The teachers were broken up into seven groups, with each group focusing on a specific part of the production process. “Teachers teaching teachers is better than them just getting lectured. On day two, the teachers went on a tour of area production sites. The tour was comprised of stops at two EnerVest Operating LLC sites (one drilling location and another ready for hydraulic fracturing), Dorfman’s Production Co./Brineaway, Inc.’s Class II Injection well, GonzOil Inc’s directionally drilled producing well and the Chippewa compressor station and storage fields run by Dominion East Ohio. Diane Smith, who teaches biology and earth science at GlenOak High School, said she’d like to bring in representatives from OOGEEP regularly to speak with students about the various career paths
in the field. “I used to work for the oil and gas industry for six years. It’s exciting to come back to see what’s been going on,” Smith said. “There’s a big market for jobs now.” Scott Patterson, a science teacher at Mount Vernon High School, said some of what was learned during the workshop could be used in various science classes not focused specifically on energy production. That information could help teachers with lessons on minerals, geologic time and the carbon cycle. Jeff Shipman, who teaches the gas and oil program at Marlington High School, will focus his classes on what the industry will move toward in the coming years — processing. He said he’ll have his students focus on repair and upkeep of machinery used in the midstream process. “We’re going to press more with the delivery system,” Shipman said. Over a million homes... one address CutlerHomes.com
JoAnn Clark
joannclark@cutlerhomes.com Cell: 330-323-3362 Office: 330-627-6920
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KRON, OH — The University of Akron (UA) houses the National Center for Education and Research on Corrosion and Materials Performance (NCERCAMP). The Department of Defense and Congress selected Akron, Ohio as a relevant and resourceful location. “The reason that it’s in Akron is we have all these resources available to us and that it’s really at the heart of all this really new gas and oil exploration,” Annie Hanson, Manager of Continuing Education and Outreach at NCERCAMP, said. “Our best products, which will be our students, are here ready to solve those problems that we expect to occur at any point now.” Corrosion impacts the nation’s economy to a tune of over $400 billion a year and is the main threat to oil and gas pipelines. UA launched the nation’s first Corrosion Engineering degree program in response. The university began working on the program in 2010, and there are about 100 students enrolled currently. The first graduates will complete the degree in May 2015. Hanson said many of those enrolled are interested in working in the gas and oil industry due to the recent and incredible need for energy, especially while Ohio has been booming with Marcellus Shale, Utica Shale, fracking, and more. “Our bachelor of science is the first and only in the nation,” Hanson said. “So, it’s very unique. It’s a very unique set of skills, and those students will be in high demand because they’re so unusual.” UA is working with students to make them marketable in the gas and oil industry. For example, co-op experience is built into the undergraduate program. Co-ops are similar to paid internships; however, students go back to the same company multiple times to work with different aspects of the business. Many Corrosion Engineering co-ops are offered within the oil and gas industry, and many students have worked for companies such as Marathon, BP and Colonial Pipeline Co. “I found that being on co-op was both vastly different and surprisingly similar to the college experience I’ve had so far,” Nate Sutton, a third-year corrosion engineering major, said. “You have a chance to put into practice everything you’ve been learning from a scientific and engineering basis. But at the same time you’re exposed to real world problems, open-ended problems, and you have to make a lot of your own decisions regardless. So, I think the combination of classroom experience and co-op experience, especially with BP, has been tremendously helpful. Sutton works downstream at his co-op with BP but hopes to explore upstream opportunities as well. In the future, he hopes to pursue some business training along side his degree and work in a couple more BP refineries. “Corrosion mitigation is one of the fastest growing fields that I’ve been exposed to, and then, also the amount of help the university gives you in going to professional conferences and exposing you to the industry is something I really like about corrosion engineering,” Sutton said. UA also offers professional development opportunity courses such as the Fundamentals of Coatings I. This specific course is
offered by the Society for Protective Coatings (SSPC), and tuition is sponsored by NCERCAMP. “This is kind of like the very first class to introduce them to coatings,” Hanson said. “Coatings are one of the most popular corrosion prevention techniques. So, it’s a really important tool for the Corrosion Engineering students to have.” The course takes place from 8 a.m. to 5 p.m. for five days. At the end of the course, students must complete a test and achieve a certain percentage in order to receive a certificate for completion. Fundamentals of Coatings I has been offered twice at UA as of this summer. Students learn the foundations of coatings from a chemical engineering perspective. Curriculum within the course includes a general overview of coating. After completing this basic course, students can move on to take more advanced SSCP courses. “I think the curriculum here is unique, and it’s one of a kind in the world, from what I understand,” Instructor Luke Clark said. “For these students to be exposed to very basic terms—this is a very basic course—they are introduced to this side of corrosion prevention. It’s a good foundation for them when they go out, and they practice their skills and knowledge that they’ve acquired here at the university.” u
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oyal Dutch Shell has agreed to sell drilling rights in shale formations in Louisiana and Wyoming for $2.1 billion in two transactions. In one of the deals, announced Thursday, Shell will also receive drilling rights to land in Ohio and Pennsylvania. Shell is working to focus its onshore U.S. drilling program on a few of the more prolific formations in an effort to boost profitability. The company wrote down the value of its shale acreage in the U.S. by $2.1 billion last year amid lower natural gas prices. Shell will sell its Pinedale acreage in Wyoming to Ultra Petroleum for $925 million and 155,000 acres in the Utica and Marcellus shale formations in Ohio and Pennsylvania. It will sell its Haynesville acreage in Louisiana to Vine Oil & Gas and the investment firm Blackstone for $1.2 billion. Shell and other major oil and gas explorers regularly sell rights to fields where production is flat or declining. They then use that cash to fund exploration programs designed to discover new or more prolific fields that oil giants need to fuel growth. The Pinedale and Haynesville formations produce dry gas, which is less profitable than oil or so-called natural gas liquids, at relatively moderate rates. The Marcellus shale in Pennsylvania has proven to be an extraordinarily prolific dry gas producer, and profitable for drillers because it produces gas at high rates per well. The Energy Department says the formation will produce an average of 15.9 billion cubic feet of gas per day in September, nearly a quarter of total U.S. production.
Ohio’s Utica shale is also proving to be prolific, and it includes a higher proportion of more profitable liquid hydrocarbons. Utica gas production is expected to rise to 1.3 billion cubic feet per day in September, up nearly eightfold from 155 million cubic feet per day at the start of 2012, according to the Energy Department. “We continue to restructure and focus our North America shale oil and gas portfolio,” said Marvin Odum, president of Royal Dutch Shell’s U.S. division, Shell Oil Company, in a statement. “We are adding highly attractive exploration acreage, where we have impressive well results in the Utica, and divesting our more mature, Pinedale and Haynesville dry gas positions.”
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September
10-11 September
24-25 September
26
October
4
October
11-12
YOUNG 2014 Conference and Expo, “A Celebration of Manufacturing” at Covelli Centre, 229 East Front Street, Youngstown. For more information call 330-7442131, ext. 21. The Shale Insight 2014 conference, David L. Lawrence Convention Center in Pittsburgh. For more information visit shaleinsight.com.
Energy Jobs and Career Fair, Belmont College, St. Clairsville, Ohio.
33rd Annual Probate Practice Seminar, Squaw Creek Country Club, Vienna, Ohio. Featured speaker is Jeff Kern: Shale Valuation Estates. For more information go to trumbullprobate.org OOGEEP October Firefighter Workshop, Wayne County Fire & Rescue Training Facility, 2311 South Milbourne Rd., Apple Creek 44606. Go to http://oogeep.org/event/oogeep-responding-to-oilfieldemergencies-training-workshop-4/ for registration information.
October
14
November
1-2
Utica Summit II, Kent State University at Stark, North Canton, 8 a.m.-2 p.m.
OOGEEP November Firefighter Workshop, Wayne County Fire & Rescue Training Facility, 2311 South Milbourne Rd., Apple Creek 44606. Go to http://oogeep.org/event/oogeep-responding-to-oilfield-emergencies-training-workshop-5/ for registration information.
November
Eastern Unconventional Oil & Gas Symposium, University of Kentucky. Go to http://www.euogs.org/ for more information.
December
2014 Oilfield Expo, International Exhibition (IX) Center, Cleveland.
March
2015 OOGA Winter Meeting, Hilton Columbus at Easton.
5-7 2-4
11-13
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Norm Blanchard
Dan Davis Dix Communications
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AMBRIDGE, OH — The ongoing influx of the gas and oil industry into Guernsey County is, to some degree, transforming the role local economic development officials play. “We have spent a good part of the 15 years I’ve been here going out trying to attract businesses in, or to keep the ones we have here expanding and healthy so they don’t leave,” said Norm Blanchard, executive director of the Cambridge-Guernsey County Community Improvement Corporation and Guernsey County Port Authority. “The difference now is these companies are coming to us. Every day there’s a call from somebody who wants a 15,000, 20,000 square foot building with 10 acres to lay up some equipment around it.” Though the expansion of the industry brought tremendous growth — evident by the changing skyline of Cambridge as multiple-story hotels rose to meet housing needs for gas/oil workers — it simultaneously created new problems. “The problem we have now is trying to find sites for all of (the businesses seeking to locate here),” Blanchard said. “Almost every building of that size is gone. They’re all leased. It’s hard to find one. Occasionally a pipeline company will come in, occupy the property and then move and so the property becomes vacant for awhile.” Given these challenges, the objective of Blanchard and other economic development officials and agencies comes into sharp focus. “Our job is to continue to find any developable sites that we have,” he said. Given the size of Guernsey County — 529 square miles — and a population density of little more than 77 people per square mile (based on 2000 census results), one might naturally lean toward the belief that plenty of land is available. Raw acreage is, in fact, available. But several factors affect the viability of that land for commercial and industrial development. “You have to find property that doesn’t have mines under it, first of all,” said Blanchard. “If they’re mine spoils, you can compact it. But if they’re mine tunnels, you have to fill them, because someone is not going to put a $10 million building over something that pos-
sibly will cause cracks, at the very least, or sinking at the worst.” The rolling topography of the land in Guernsey County is not a major impediment, as hilltops can be removed. However, Blanchard said, the lack of utilities create another hurdle to overcome. Prospective buyers generally do not want to wait until electric service is established and water and sewer lines installed at an otherwise desirable site. Find a parcel of suitable land and the price tag could become an issue. “When you’re looking at manufacturing, they’re not going to pay $100,000 an acre to be in Guernsey County,” Blanchard said. At times, owners seeking to settle in the D.O. Hall Business Center along Route 660 will negotiate land costs, as they seek the most cost efficient course of business, and officials such as Blanchard seek to bring employers to Guernsey County. “We’re always in competition with the surrounding counties, or sometimes as far away as Licking County,” he said. “If we’re going to go out and get control of (a property), we’re going to try to find a property to buy and afford to upgrade.” More people working here means more housing is needed. That housing can be hard to come by. “It is an issue,” Blanchard said. “We did a housing survey. Our rentals are occupied to 98.9 percent. Rentals are tough to find.” Survey results also indicated the five largest hotels in Cambridge are consistently booked to full capacity. “What’s happened in some cases is people have raised the rent,” Blanchard said of the lack of rental properties. In some instances, tenants have been asked to pay double or even triple their previous monthly rental payments in order to remain at a property they’ve called home for many years as landlords seek to capitalize on the need to house gas/oil workers. “The housing stock is not what it was,” said Blanchard. “There’s not housing available.” Management positions of gas/oil companies are affected, as well as field workers. Single-family homes in the $300,000 to $400,000 range are in short supply. New construction is an option, according to Blanchard.
“But we have to have somebody willing to put up a few of them and hope that they’re purchased,” he said. Despite the drawbacks, the area has several pluses working in its favor. The business maxim “location, location, location” applies. The intersection of interstates 70 and 77 provides access to markets on all four compass points. As well, a majority of the nation’s population resides within a day’s drive from the Interstate 70/77 interchange, giving Guernsey County a competitive edge in attracting industry and commerce. “The companies we have here want to be here,” Blanchard said. “That’s their first choice. Our goal is to make sure they don’t look somewhere else.” The cooperation among different local agencies sharing the common goal of promoting development here presents a tremendous resource for prospects. “Every company we’ve dealt with has said to us, ‘Boy, you guys are the easiest people to deal with, and we deal all over the United States, and you guys are the greatest!’ Reason why: Our people aren’t fighting each other,” Blanchard said. For example, a person enters Blanchard’s office with a proposal to locate a business here. He can refer them to the appropriate authorities, be it the mayor of Cambridge or the county commissioners or other offices and agencies. They, in turn, can provide development counseling addressing their specific needs.
“That is a real plus for us,” Blanchard said. Education and training plays a key role in preparing the local workforce for placement in the gas/oil industry. Having both Ohio University and Zane State College centers within the community allow students to learn and prepare for careers locally without the need to travel outside Guernsey County. Plans are under way to work with local school superintendents to create programs in high schools focusing on motivating students to seek higher education in preparation for industrial careers, including those in the gas/oil industry. Funding must be available to development agencies in order to purchase properties which can be developed and sold to businesses seeking to locate locally. “Right now, we’re looking healthy from the influx of money from gas and oil,” Blanchard said. “But we’re trying to look beyond that so we can provide sustainable manufacturing. To do that, we’ve got to get these sites.” Different state and regional agencies provide grant funding for specific types of projects, such as road creation or workforce development. Economic development officials can, with these in mind, pursue funding for specific needs through specific sources. ddavis@daily-jeff.com
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Christine L. Pratt Dix Communications deal with these sorts of decisions on a regular basis, unlike a court of common pleas. Landowners will be better off having the most qualified individuals deciding whether a well should be plugged or given inactive status,” Eckinger said in the immediate wake of the decision. According to Eckinger, the appellate opinion, which cites several Ohio Revised Code sections and his own argument, “position the chief (of the ODNR’s Division of Oil and Gas Resource Management) as the sole initial decider of all issues related to the plugging of Ohio wells.” The case has since returned to Rinfret’s court, where the parties have been working together to fashion a mutually acceptable resolution. “This gets you a well that produces and gets you a (royalty) check,” Rinfret told the Helmses, which had been opposed to the efforts of Ridgeway and Whitney. “You want the well. You want gas.” “Everybody is nodding their heads yes. Let’s see if it works,” said Rinfret, observing, “Mrs. Helms, you’re smiling. That’s the first time I’ve seen you smile. I know there’s been some bad blood between you two, but let’s try to make this work.” cpratt@the-daily-record.com
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ILLERSBURG, OH — After spending the past few years battling, in and out of court, a local couple and the men who have been drilling for gas and oil on their property have found common ground on which to stand. In November, Holmes County Common Pleas Judge Robert Rinfret found the well “inactive” and ordered producers Thomas Whitney and Donald Ridgeway to plug it. In June, the Fifth District Court of Appeals vacated that decision, noting Rinfret did not have jurisdiction to make such a ruling. The court action was the culmination of a civil lawsuit filed by property owners Darrell and Dortha Helms. The lease with Ridgeway and Whitney entitles them to signing bonuses and the better part of royalties paid by deep drilling into the shale. The parties returned Tuesday to Rinfret’s court and put on the record a compromise. Adopting the agreement, Rinfret gave Whitney and Ridgeway until March 1 to bring the well into production. That said, Rinfret warned the Helmses that any interference on their part could result in an extension to the timeline. Should producers fail in their effort to get the well to produce, the lease is forfeited and Ridgeway and Whitney must plug the well. Furthermore, Rinfret said, any property belonging to the producers that remains on the site after March 1, if it fails to produce, will be surrendered to the property owners. The well, originally drilled in 1918, is known as Crider No. 4 and had been used by Whitney and Ridgeway to produce oil and gas from 1976-2009, according to court records. To that point, and into 2010, royalty payments were made to the Helmses. Production stopped in 2009 after a storm knocked down a goat pen and disrupted electric power to the well, according to court records. The appeals decision, sets a precedent that will help to ensure future decisions are made only by Ohio Department of Natural Resources, according to Robert Eckinger, attorney for Whitney and Ridgeway. “This is good news not just for my clients and those in the oil and gas industry, but also landowners. The ODNR has experts who
159 WEST HIGH AVENUE NEW PHILADELPHIA, OH 44663
David J. Wigham Attorney
T
wo cases interpreting one of the most important statutes to the Utica Shale boom, Ohio’s Dormant Mineral Act found at R.C. §5301.56 (“DMA”), were recently heard by the Ohio Supreme Court. To briefly summarize the DMA, the statute was originally enacted in 1989 and then amended in 2006. Its purpose is to eliminate “dormant” mineral interests in favor of the current surface owner. The 1989 DMA provides where the severed mineral interest owner has not utilized its minerals as specified in the DMA for a period of 20 years, the mineral interests are deemed abandoned and are returned to the current surface owner. Importantly, the 1989 DMA is self-executing, meaning that the severed minerals in question will be automatically abandoned if no activity related to the minerals has occurred. The only subsequent action that surface owners need to take is to file a lawsuit to obtain a court order declaring the minerals to be abandoned under the DMA and returned to the surface owner. Under the 2006 DMA, surface owners must first file and serve a Notice of Abandonment on the owner of the severed minerals. The DMA has become central to the disposition of literally hundreds of oil and gas lawsuits between surface owners and severed mineral owners vying for lucrative bonus payments and royalties. The first case is an appeal from the Seventh District Court of Appeals’ benchmark ruling of Dodd v. Croskey, 2013-Ohio4257, in which the Ohio Supreme Court certified the following issue on appeal: “Ohio Revised Code Section 5301.56(B)(3) requires a showing by a party claiming the preservation of a prior mineral interest of a “savings event” that occurred within 20 years prior to notice being served and not a “savings event” after the date of the notice being served.” The Court of Appeals’ decision in Dodd held that a preservation affidavit filed by a mineral owner after receiving a surface owner’s notice of abandonment acts to “cure” all prior activity with respect to the mineral interests rather than preserving the mineral owner’s right to later “contest” the DMA abandonment. The issue being argued before the Ohio Supreme Court is whether the 2006 DMA requires a showing by the mineral owner that a “savings event” occurred within 20 years prior to service of the abandonment notice and not after the notice was served. The way the issue is framed by the Court, it appears that the Court may rule that a savings event cannot occur after the notice of abandonment has been served, thus
meaning that a preservation notice only serves to preserve the right to “contest” the abandonment but is not a savings event in and of itself. The second case involves a request by the U.S. District Court for the Southern District of Ohio to certify questions of state law to the Ohio Supreme Court in a case captioned Chesapeake Exploration, LLC v. Buell. In this case, the Supreme Court agreed to answer the following questions: “Is the recorded lease of a severed subsurface mineral estate a title transaction under the Ohio Dormant Mineral Act, R.C. 5301.56(B)(3)?” “Is the expiration of a recorded lease and the reversion of the rights granted under that lease a title transaction that restarts the 20-year forfeiture clock under the ODMA at the time of the reversion?” The both questions involve an interpretation of what constitutes a savings event under the DMA that would prevent an abandonment of a severed mineral interest. In answering the both questions, the Court will have to first determine whether a recorded lease transfers an interest in real estate. Most Ohio cases hold that a lease does constitute an interest in real property. Rulings in each of these cases could alter the legal landscape now governing hundreds of pending DMA cases and could potentially further swing the balance of legal authority in favor of surface owners. Now that these cases have been orally argued before the Court, written opinions could be issued any time within the next several months. Surface owners who own Utica acreage are reminded of the importance of bringing legal action based on the DMA to clear off old mineral reservations so that the minerals beneath their property can be leased and so that full royalties can be received. 4827-5149-2893, v. 1 David J. Wigham is a second generation oil and gas attorney at the law firm of Critchfield, Critchfield & Johnston, in Wooster, Ohio, with more than 20 years of industry experience. He is also the current chair of the Natural Resources Committee of the Ohio State Bar Association.
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N SSIO I M AD Sept. 12 & 13 at Hochstetler Milling
LOG CABIN DAYS
• Log Home Tour of up to 8 homes for a small donation. • Free seminars - planning, designing, financing, and building your log home. • “Plan your dream” design workshop. • Exhibits of log home furniture and furnishings for your home. • A small log cabin(13’x 24’) will be built on the premises and auctioned off on Saturday at 4p.m. • Chainsaw carving, handhewing, handpeeling, blacksmith, painting demos.
Free Log Home Seminars!
• Lumberjack Show featuring competitive axe throwing, 2-man crosscut sawing, and wood chopping. • Antique steam engine in operation. • Silent auction for authentic Amish quilt and assorted handmade crafts. • Food tent with barbequed chicken, noodles, sandwiches, baked beans, apple butter, kettle corn, homemade ice cream, Amish pies, cakes and pastries. • A delicious “Early Bird” breakfast will be served at 7a.m. on Saturday.
Hours: Friday, Sept.12, 11a.m. - 7p.m. & Saturday, Sept.13, 9a.m. - 5p.m. Location: 552 Hwy. 95. (5 miles north of Loudonville and 1/2 mile east of the Hwy. 95 & 60 intersection). For more information call 800-368-1015 or 419-368-0004. 10286935
Berlin 330-893-1318
Carrollton 330-627-0091
Salem 330-482-7043 10065808
UTICA SHALE ACADEMY A NEW SOURCE FOR LEARNING Rachel Sluss Dix Communications
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ALINEVILLE, OH — Eric Sampson was ready for a new challenge after years of teaching health and physical education at the Southern Local School District. And he certainly got it, becoming director of the new Utica Shale Academy. “I was ready for a change, looking for a new challenge, and starting a new school from the ground up, that is certainly a challenge,” Sampson said. Sampson’s career in education spans 15 years. So when Superintendent John Wilson asked for him to become involved at the Utica Shale Academy in Salineville, Ohio, Sampson expected to he’d be teaching. “I didn’t realize that it was going to involve, basically, running the whole show,” Sampson said. “I look forward to that now. It’s a great challenge, and I look forward to it. I am basically the secretary, the teacher, the principal, the guidance councilor, the special education director—I am covering it all.” The academy is housed at Southern Local High School, 38095 state Route 39 in Salineville. It trains students in grades 9 through 12, preparing them to enter into the workforce in the gas and oil industry. Jefferson County Educational Service Center sponsors the conversion school that offers core classes and specialized courses relevant to the gas and oil industry. The program uses a blended learning method, which means students must spend the majority of their time at school, but they are expected to spend the rest of their hours completing their core classwork online.
The International Association of Drilling Contractors recognizes coursework within the academy, and the school also offers college credit courses. Students are able to take classes through Stark State and receive both high school and college credit. Three different certificates are offered this year, Sampson said. Certifications allow high school seniors to graduate and enter the market eligible to work. The academy can also prepare students to pursue degrees relevant to the gas and oil industry. “There is nothing like this for high school aged students in the state of Ohio,” Sampson said. “We’re offering the program while the student is in high school. We are a great option for kids who can’t find something at a career center. “Everybody in the local school district knows somebody with a rig in their backyard or pipeline,” he added. “This is an industry that could be around for a long time, and they see this as a viable option for themselves.” Classes begin Sept. 5. There is no charge to attend the Utica Shale Academy; however, students must have transportation to and from school. At press time, there were 28 students enrolled in the academy, and the Department of Education requires a minimum of 25 students to open a new school. However, Sampson guesses he will have over 30 enrolled by the end of August. “Down the road, we would hope to open more of these and make our education available to a lot more students that are in this shale region and be a major provider of the local workforce for the industry,” Sampson said.
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TRIBBIE, SCOTT, PLUMMER & PADDEN
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METHENEY ESTATE AUCTION 40 Acre Ohio Farm with Improvements Oil & Gas Minerals Sell Location: 22350 Oxford Rd. Quaker City, Ohio 43773. From Cambridge, take I-77 South for 2 miles and enter I-70 Eastbound for 16 miles and exit to OH513 or exit number 193. Continue on OH-513 South for 2 miles and turn right onto Oxford Rd. Destination will be on the left. From St. Clairesville, take I-70 West 22 miles to exit 193 OH-513. Head South on OH-513 for 2 miles and turn right onto Oxford Rd. Destination will be on the Left.
Saturday September 20, 2014 • 10:00 A.M. 40 Acres * Oxford Twp. * Guernsey Co. *4 Bedroom Home * Oil & Gas Minerals Sell!* Free Gas * 4 BR Home * Barns * Heated 2 Car Garage * Greenhouse with Electric, Gas and Water * East Guernsey LSD Open for Inspection: Tuesday, September 9th from 5-7 PM Located in Guernsey County this idyllic property features a quiet country location with easy access to I-70. The property is comprised of a 4-5 bedroom 2 bath home in excellent condition along with a full basement with another bathroom & shower. Other improvements include a 2 car heated garage as well as a bank barn, machinery and hay barns as well as chicken house with fenced in yard and greenhouses. The land also includes fenced and cross-fenced pasture with plenty of room for cattle, horses or other livestock. Between the meandering creek and a developed spring there is good water supply for livestock. A Generac 20-K back up power unit is capable of powering the entire farm and runs on free natural gas from the property. Join us at the open house on Tuesday Sept. 9th to view this well-kept and desirable offering. Online bidding available.
OIL & GAS MINERALS 40 Net mineral acres of oil and gas rights will be sold separate from the surface. Rights are under current lease to Chesapeake Energy and are at least partially unitized and drilled in the HD McClain 7H well. A copy of the O/G lease is available online. Online bidding available.
REAL ESTATE WILL BE SOLD AT 12:00 P.M. Legal: Parcel #’s 280000614004 in Oxford Township, Guernsey County and the East Guernsey LSD. Taxes are 953.67 per ½ year, any recoupment will be the responsibility of the buyer. Real Estate & Oil /Gas Mineral Terms: 10% nonrefundable down payment, balance at closing w/ no financing contingencies. 10% Buyers Premium. Purchasers should inspect the property prior to bidding and be aware of its condition. Properties are sold strictly "AS IS”, as an estate this property will be sold with no disclosures. Potential Buyers must independently investigate and confirm any information or assumptions on which any bid is placed. • Kaufman Realty & Auctions are agents for the sellers; we are not mineral and legal experts. Potential buyers are advised to seek legal counsel regarding the status of any oil/gas right purchase, prior to bidding. Announcements day of sale take precedence over all previous advertising and statements. Note; Due to the unfortunate passing of Dick Metheney the family is selling the farm and personal property. The Real Estate and mineral opportunity is tremendous and will be sold at 12:00 noon. Tractors and equipment will sell immediately following the farm. Come join us for an excellent auction.
KAUFMAN REALTY & AUCTIONS Sale by Order of: Alice Metheney, Dave Metheney Executor. Probate # 052084. Joel Blue Attorney
330.852.4111 or www.kaufmanrealty.com JASON MILLER, REALTOR/ CAI AUCTIONEER 740.541.7475 or jason@kaufmanrealty.com
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Don Gadd Landman
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efore a road trip, Grandma Minnie admonished us to make sure we had on clean underwear. I would laugh and shake my head at her Victorian ways. But, in essence, she was telling us to be prepared in event something happened. Preparedness prevented us from being embarrassed. As I get older, I catch myself telling my grandkids the same thing or words to that effect. I bring this up because over the course of the last several years I have admonished people to be prepared in event things didn’t go their way. Like holding out for the top dollar on a lease, or holding up a company for more than the going rate on pipelines, roadways, or other easements. In most cases the company has set an amount that is on par with what others are paying in the area and for an old Appalachian landman like me, more than I have spent in almost forty years of doing this. Don’t get me wrong. I have worked with landowners who aren’t being given a fair shake and in most cases both parties have come to an agreement. The blade cuts both ways, but in the end, the property belongs to the landowner and a deal can only be struck with his signature. But, what is fair? I would tell you what is fair is what the market is at that time. Some people sign early in the play and continue to harp about what they missed out on money wise while others have taken the money and bought new tractors, built barns, and got the wife new furniture. It is all relative to how prepared you are in event something negative happened and it all went away. The greatest thing in this business is drilling and producing oil and gas. That’s what this is all about. But, as this is a new play,
the definable area for drilling is still being determined. The rush and frenetic pace of the shotgun lease approach is done in most areas for now. There are wells being drilled and proving up areas for additional drilling, and there are areas where the initial wells have proven not to be of economic value. (At $10 mil per well they better produce a lot.) In the latter area, those that are leased and paid, great. You took the money and ran. Others who are in that “title review” state, my hope is that you get paid before things go south or the company elects to pull out of the area. Hey, it happens. That’s not to say you won’t get leased again someday, but it may be awhile until it can be figured out how to make these wells more productive. (I remember when we thought once we plugged a Clinton/medina well on a property we didn’t think it would be leased again.) Then there are those that my dad used to call “barons of the bluegrass.” Generally, they were the leaders of the pack and had their minds set on getting the “top dollar” they had heard others had received in the hot areas. In event they didn’t have enough acreage; they would be out helping form the landowner groups and be the most vocal in the meetings. I would remember what Grandma Gadd said and admonish them to be prepared. This was a young play and its boundaries weren’t yet defined. Most upon reflection would meet somewhere in the middle and an agreement would be signed. Some would not sign for one reason or another, but mostly it was about money. If they were right, they would get more than their neighbors. But, if they were wrong, they probably wouldn’t get near that amount or nothing at all. All I could say was be prepared.
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12317 Dover Road • Apple Creek, Ohio 44606 Phone: 330-857-0001 • Fax: 330-857-2446
Judie Perkowski Dix Communications
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ANESVILLE, OH — You don’t have to be a rocket scientist to figure out that the opportunities for a job in the gas and oil industry in eastern Ohio are here and now. Starting out with only a high school diploma means entry-level, manual, and in most cases, dirty, hard work in the oil fields. The bright side is the pay, twice that of most entry level positions in other industries, and on-the-job training. For those who aspire to a higher level of specialization, education is the key. Keith Smith, Brian Marmie, Danny Graham and Andy Apperson, all students at Zane State College enrolled in Compression classes, a section of the school’s Oil & Gas Engineering Technology program. Smith, a resident of Muskingum County, said he is interested in electricity. He is currently working as an equipment operator for a local business and can only attend classes when his work schedule permits. “This is the third time around for some of my classes, but I am not giving up. I am going to continue going to classes until I graduate,” said Smith. Brian Marmie and Danny Graham, both of Monroe County, said they both lost their jobs in October of 2013 when the company they worked for, more than 22 years, closed its doors. They attended a job fair at their union hall, talked to representatives of Zane State and decided to sign up for the two-year oil and gas program. They
both started classes in February. Andy Apperson is graduating in the fall with a degree in environmental science, but wanted to improve his resume with additional knowledge of the oil and gas industry. They all said the best part of the program is the hands-on experience. “Instead of reading about how a compressor works, we actually have one in the classroom that we can take apart and put back together,” said Smith. “It’s so much easier to learn and much more interesting than looking at a picture of a compressor in a book.” A working 10-foot natural gas compressor was recently donated to the college by the Ariel Corp. in Mt. Vernon. Instructor for the compression class is Rick Warne of Columbia Gas. OGET instructors Bob Stonerock and Paul Pasley said thanks to the generosity of the gas and oil companies and its service providers, the OGET program has acquired several working components of oil field equipment. The original Natural Gas Technology program officially started in May of 2011. The following academic year the name was changed to the Oil and Gas Engineering Technology program. Since the 2012-2013 school year, 18 students have graduated from the program. But several more should have and could have graduated, but were recruited by oil and gas companies before they completed the program. “Even though we really want our students to graduate, the fact that gas and oil recruiters are knocking on the door before they
[students] complete the program, is a great indicator that the program is meeting the demands of the industry,” said Tim Snodgrass, coordinator for Zane State’s Workforce and Economic Development. “The curriculum was approved by the Eastern Gas Compression Roundtable, a non-profit organization whose primary purpose is to provide the natural gas industry with cost effective training programs. “The course of study for the 2014-2015 Oil & Gas engineering Technology includes all the STEM classes — Science, Technology, Engineering, Math. In two short years students can be on their way to an interesting and lucrative career in oil and natural gas exploration, drilling, completion, natural gas compression, distribution and related field services.” For more information about the program, call Zane State Main Campus, 1555 Newark Road, Zanesville, at (740) 454-2501 or (800) 686-8324; Zane State Cambridge Campus, 9900 Brick Church Road, Cambridge, (740) 43-6568, (800) 686-8324, or online at www.ZaneState.edu or www.EpicOhio.org.
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Frank McClure Attorney
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ne of the biggest concerns that I see day to day raised by clients, especially concerning oil and gas interests, is their concern about what happens to the property that my children has or has been given by us if the IN-LAW becomes the OUT-LAW. In other words, parents concerned about their children and the possibility of DIVORCE! I find that families and individuals are increasingly looking beyond prenuptial agreements to shield property from future divorce claims. The main goal is to make sure inheritances, and other assets accumulated before marriage and after marriage, are kept separate from marital property, which a judge can divide up if a couple divorces. Protecting property from the financial ravages of divorce has long been a key concern of families, who often enlist lawyers to draft detailed prenuptial agreements spelling out what’s his and hers before the wedding invitations are sent out. What about assets given after marriage, either though gifts or inheritance? Attorneys are increasingly trying other strategies - especially the creative use of trusts, which can be effective in sheltering assets a spouse has earned before the marriage and/or will inherit. Using multiple, premarital asset-protection techniques, including trusts and prenuptial agreements, can also be helpful if one of the strategies falls through. And since divorce judges have wide discretion in carving up property this can create a danger. Parents of prospective brides and grooms often show the most interest in what are called “lifetime trusts”, because they don’t want to see family property dissipate because of divorce. Families have also grown more comfortable in with using trusts for tax planning
and asset-protection purposes. Also, a growing number of states (including Ohio) have loosened their trust laws to allow trusts to last longer and be better shielded from creditors. A chief attraction of “lifetime trusts” is the fact that they can be set up without the knowledge of the child’s spouse or spouse to be. Many individuals choose to forgo a prenuptial agreement altogether, for fear that it will dim the romance - and for them a trust is a good alternative. ‘Belts and Suspenders’ Approach One of the safest bets, if someone is getting married, is to combine asset-protection structures with prenuptial agreements - what lawyers call the “belts and suspenders” approach. While trusts may shield premarital assets or money that come from a spouse’s parents or grandparents, they may be less effective in dividing up property earned or acquired during marriage. Prenuptial agreements, in turn, spell out exactly how assets, especially what’s obtained after marriage, should be divided in case of divorce or death. They also have the advantage of promoting open discussion among couples about finances. But prenuptial agreements might not hold up in court if drafted improperly or if the couple’s circumstances change greatly after being signed. Premarital planning tactics vary depending on whether the assets in question were generated by the bride or groom or their parents. If it’s the parents that have the property, advisers recommend that they leave gifts or inheritances to their children in “lifetime trusts”, rather than outright. In general, inherited property and gifts in “lifetime trusts”, even those received during marriage, are considered out of the marital estate. When parents transfer family property into “lifetime trusts”, that property is segregated into its own bucket (trust), clearly outlining what’s inherited or given and what’s not.
COUPON By contrast, a gift or inheritance outright to the child deposited into a bank account runs the risk of being subject to division at divorce, if it’s commingled with marital assets such as a joint tax refund or even a paycheck. I recommend to my clients that they set up discretionary “lifetime trusts” for the child’s benefit. In such trusts, the trustee has the power to decide when any distributions are made, rather than having the trust automatically disburse assets when children reach certain ages. Because the trust, rather than the heir, legally holds the inheritance, the assets are much harder for divorcing spouses to reach. What if your children are already married? There cannot be a prenuptial agreement. Again a “lifetime trust” will work, as long as it is fully discretionary which will keep the spouse from accessing it. What a great relief to parents who know that at any time, the in-law can become the out-law. What if your children are already married and you now have oil and gas assets and are concerned with how you will protect these assets from the possibility of the in-law, becoming the out-law after you are no longer here? You now know that you can just do discretionary “lifetime trust” planning to protect your assets as you transfer them to your children and ultimately your grandchildren. It is important to find an attorney who concentrates their practice in the area of asset protection and estate planning. If you would like more information go to our website at www.fmcclurelaw.com.
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Trux TRUCKIN’ Thomas Doohan Dix Communications
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EVILLE, OH — Freightliner, International, Kenworth, Mack and Peterbilt -- these are names commonly associated with highway travel and transporting cargo across the country. But according to Trux and Equipment’s Matthew Fuetter, those are just a few applications for these workhorses of the roads. More and more, he said, semi trucks are being sold to transport materials used for the gas and oil industry. Fuetter, a salesman at the Medina based company, said he has a close tie to the business. The company was started by his father, Kurt Fuetter. In the beginning, Fuetter said the company operated out of their home until it settled into a new facility on 5052 Park Ave. West, Seville earlier in January. With a history of doing wholesale, Fuetter said Trux and Equipment has started to change its business model and has more retail sales. Selling quality late model semi trucks is the company’s game, something they take seriously. “My father who started this was a truck driver for years himself, and a farmer,” Fuetter said. “He instills that with us -- our reputation is on selling a quality piece of equipment. Not that it just looks good, but mechanically it’s good.” For truckers hauling materials related to the oil industry, Fuetter said quality is important. He said truckers often want high quality late model semi trucks, equipped to do off road
hauling of machinery, supplies and tankers for the oil industry. Ohio Oil and Gas Association director of public relations Mike Chadsey said quality is incredibly important for these trucks because they are often carrying very volatile substances across off road terrain. In addition, he said trucks deliver in the drilling equipment to drill sites which costs approximately $4 million. “These trucks need to be in tip-top shape,” he said. “Driven by professionals.” Fuetter said a large percentage of his sales are to truckers looking for just that, as well as those looking for something to handle long hauls. “I’d say 50 percent,” he said. “Half and half.” With wholesale and retail sales of the trucks ranging from $20,000 to $100,000 reaching around 400 units, Fuetter said the oil industry has had a huge impact on their business. “It’s been great,” he said. “We are selling trucks left and right.” Chadsey said the rise of hydraulic fracturing in Ohio over the last three to four years has greatly increased. While he said quantifying the exact increase the rise has on trucking is difficult, he said 1000 wells are being drilled each year. “That’s huge,” Chadsey said. The truck is used for every aspect of the industry including, he said bringing in the equipment, water and sand all needed for the industry into a drill site and then taking it all out again.
For him, the biggest sign of the effects the industry has on trucking is the shortage of commercial drivers licenses in the state. He said since the oil embargo in 1973, the oil industry has been low, and fewer people were getting into related industries. When hydraulic fracturing came around, Chadsey said the state did not have the personnel to support the industry. However with the industry growing, he said things are changing and look good for all related industries. “There is a slow ramp up to meet the needs of the industry,” Chadsey said. For Trux and Equipment, Fuetter said the slow ramp up has included selling many Freightliner and International semi trucks. However, he said they sell all different brands of trucks. For those doing off road hauling from job sites, he said the trucks that work best are set up with high gears, locking rear weals and heavier transmissions, often Kenworth, Peterbilt and Mack trucks. “They have got a good niche in that market,” he said. tdoohan@the-daily-record.com u
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ZANE STATE
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Honored guests in attendance were: • Kent Dubbe, Ariel Corp. Vice President of Human Resources and Organizational Development, who said his company is pleased to contribute to Zane State’s OGET program. Ariel is the world’s largest manufacturer of separable reciprocating gas compressors utilized by the global energy industry to extract, process, transport, store and distribute natural gas from the wellhead to the end-user. • Norm Shade, senior consultant and President Emeritus of ACI Services, Inc. based in Cambridge, said he is pleased to be a partner in a joint venture that will benefit the school, the students and the community. ACI Services provides engineered compressor products and services to a worldwide market. Shade is also a member and representative of the Gas Compressor Association. The Gas Compressor Association is a professional trade organization “dedicated to the enrichment of its members and the industry, products an services for the natural gas compression market.” The GCA organization represents manufacturers, distributors, suppliers and transporters of gases, cryogenic liquids and related products. Following the program guests were invited to enjoy refreshments and to tour the EPIC Center. jperkowski@daily-jeff.com u
AMBRIDGE, OH — A gathering at the Zane State College EPIC Center applauded the generosity of companies honored for their civic mindedness at a special event on the college’s Cambridge campus in early August. Pam Jira, Zane State’s executive director of institutional advancement, welcomed local and state officials, gas and oil industry and business leaders, “to show our appreciation to our donors: Ariel Corporation, ACI Services, Inc., U.S. Bridge and the Gas Compressor Association, for the 10-foot reciprocating gas compressor presented to the college for students enrolled in the school’s Oil & Gas Engineering Technology program.” Zane State’s OGET program can lead to a career in oil and natural gas exploration, drilling, completion, production, natural gas compression, distribution, and related field services. The joint venture between the four companies is an investment in the school’s oil and gas program and offers students a realistic and legitimate exercise in understanding how a compressor works and why it is an integral part of oil and gas operations. Zane State President Dr. Paul Brown said the donated compressor “gives the college another piece of actual equipment used by the gas and oil industry that helps to expand the college’s base of education and enhances our program to produce highly skilled employees for the oil and gas industry. Thank you for your commitment to build a vibrant community.” After brief remarks by Chairman of the College Board of Trustees John Knight and Zane State OGET instructor Paul Pasly, OGET student Brian Marmie said he is embarking on a new career and recounted the event which lead him to enroll at Zane State. Marmie said he enrolled in college’s compressor operator program after he lost the job he had for 22 years when the plant shut down last year. He is confident with the training and knowledge he acquires from the program, he will be a qualified candidate for several positions in the gas and oil industry.
Amadeus Smith Dix Communications
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he Alliance and Marlington school districts will introduce a new STEM program at the middle school level. Alliance Middle School Principal Jason Dixon, who came to the Alliance school district this year, said the Gateway program from Project Lead The Way (PLTW), a STEM (Science, Technology, Engineering, Math) education program developer, is designed specifically for middle school students. Sixth- and seventh-graders will take an introductory design class. Those who have taken and passed the course will move on to a robotics course, said Brian Misanko, who will teach PLTW at Alliance Middle School. Dixon said he’d like to see the Gateway program act as a starting point for continued STEM education in the Alliance school district. “The hope is that it moves into the high school,” Dixon said. Dixon and Misanko expect this to be the foundation for further education and preparation for higher education and careers in STEM fields. Anna Minor, assistant superintendent and curriculum director for Marlington Local Schools, said Marlington has similar plans. “We’re looking for ways to fund Lead The Way at the high school level,” Minor said. Tyler Kwasnicka, an eighth-grade science teacher, will be teaching the Gateway design and robotics courses. The base of coursework will not only lend itself to a potential high school level program from PLTW, but also Marlington’s current program focused on the gas and oil industry. “The programs will compliment each other,” Minor said.
In February, the ACT released a report that showed a large number of high school graduates having an interest in STEM but not pursuing careers in related fields. And there will be 1 million fewer STEM professionals than there will need to be in the next decade if the U.S. is to remain globally competitive with other leading nations, according to a report from President Barack Obama’s Council of Advisors on Science and Technology. In a March 4 article in The Alliance Review, Dick Morris, an Alliance High School math teacher, suggested that making students aware of STEM opportunities at the middle school level will help them make the efforts necessary to find their way into STEM careers. The two units of the Gateway program Marlington and Alliance will use are foundation units, according to Project Lead The Way’s website. Students will develop problem-solving, research and design skills through designing, in teams, things such as playgrounds and furniture. Students will use Autodesk design software to make their designs. Using this software could give the middle schoolers an edge in the job market later on. “When I was in Dayton (preparing to teach the Gateway program), I looked on monster.com and there are companies wanting two years experience on Autodesk,” said Misanko. The robotics course will have students designing intricate codes to generate complex automated movements in machines. “The coding is upper level,” Misanko said. “It’s not just make the robot go forward for 10 feet.”
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hose working in the oil-and-gas industry talk about finding the “sweet” spot. For teachers attending Ohio Oil and Gas Energy Education Program’s workshop, the “sweet” spot involved a Hostess Twinkie. Rori Leath, education director of The Works in Newark, drilled vertical holes in the middle of the snack cake using a straw. Then, she used a flexible straw bent at a 90-degree angle to demonstrate horizontal drilling. She, Kimberly LaGreco of the National Society of Petroleum Engineers in Houston, and teachers Sally Chronister of St. Aloysius School, Deann Zavarelli of Alliance Middle School, Richard Scarsella of Choffin Career and Technical Center and Drake Yost of Canton McKinley Senior High School measured the amount of filling obtained into using the different methods of drilling. When Leath accidentally broke through the bottom of the snack cake, one of the teachers noted they had “reached another formation.” “We worked so hard to find a way to teach horizontal drilling,” laughed OOGEEP Executive Director Rhonda Reda. “The great thing is they can eat (the snack cake) afterwards.” The teachers used sponges, food coloring, PVC pipe, fabric and more as they applied science, technology, engineering and math to the oil-and-gas industry. Most of the teachers taught science-related classes. The two-day workshop featured classroom applications the first day and on-site visits during the second day. The classroom portion was held at R.G. Drage Career and Techni-
cal Center. Reda explained the history of Ohio’s oil-and-gas exploration and talked about different uses for oil and gas, from shampoo to medicine to makeup. She noted that while shale exploration is new to the area, Ohio has a long history of oil-and-gas exploration with 275,000 total wells drilled with 65,000 wells still active. In the 1980s, Ohio experienced another boom with 6,085 wells drilled. “We will never do that again. With horizontal fracturing and technology, we will not need to do that many wells,” Reda said. “A single horizontal well can replace 32 vertical wells.” She pointed out that the geology has to be “just right” for a horizontal well. The workshop focused on providing the teachers with tools to educate their students about the formation; migration and trapping; exploration; drilling and well stimulation; production; refining; and petrochemicals and products. In the process, the teachers learned about the intricacies of the oil-and-gas industry. Teachers experimented using a variety of items to create gas, show porosity and permeability of rock formations, create sound boards to determine isopach maps, build a model oil well, build a pipeline, learn about refining the materials, and learn the products made using oil and gas. Louisville Middle School science teacher Laura Esposito found the experiment involving the creation of sound boards to replicate seismographs created for oil-and-gas exploration useful in her classroom. “I already teach students about sound waves. I can build on
that using these experiments,” she said. The teachers not only got hands-on training by doing the experiments, they also had to create a video or Power Point presentation to show others at the workshop. On the second day, participants got to see their experiments first hand as they toured an EnerVest Operating’s horizontal drilling site and fracturing pad near Louisville. Joe Wade, a drilling and completion engineer for EnerVest, explained the drilling process to the teachers. While at the fracturing site, Reda and Wade reassured the teachers that the environmental impact was minimal and all the water tanks and equipment would be gone within two days. Participants also toured an injection well site, owned by Dorfman Production Co.
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OLUMBUS, OH — As its membership grows alongside the state’s expanding oil and gas industry, Ohio Oil and Gas Association (OOGA) Executive Vice President Thomas E. Stewart has announced that Shawn Bennett, a long-time supporter and voice for Ohio energy producers, has joined the association as senior vice president. A native of Cambridge, Bennett received his bachelor’s degree in political communications from Ohio University. For his work on behalf of the oil and gas industry, Bennett received the Southeastern Ohio Oil and Gas Association’s Workhorse Award, The Daily Jeffersonian’s 2013 Person of the Year Award and was named to Columbus Business First’s Top 20 to Know in Energy in 2013. Bennett said, “It is truly a great opportunity to work and learn underneath the leadership of Tom Stewart, a man I deeply respect.”
In his new role, Bennett will contribute to OOGA’s advocacy and public-policy efforts on behalf of the association’s more than 3,300 members and assist with managing day-to-day operations. “Shawn has been a strident supporter of energy development in the state for many years and has great knowledge about the processes, regulations and issues concerning our industry in Ohio,” said Stewart. “I am pleased to have him join my team to support the hundreds of oil and gas producers operating throughout the state.” Previously, Bennett served as director of Energy In Depth-Ohio (EID), a grassroots advocacy, research and education initiative organized in support of responsible oil and gas development. In his role as EID director, Bennett worked with business leaders, elected officials and residents in eastern Ohio regarding the safety and economic benefits of oil and gas exploration.
Laurie Huffman Dix Communications
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ANTON, OH — A $2.3 million Well Site Training Center was opened this month by Stark State College. The 7,000-square-foot site is located at the corner of Cherry Avenue and Third Street Southeast, which Para Jones, president of the college, said during her remarks at the grand opening ceremony is a perfect location as it connects with U.S. Route 30, state Route 43 and I-77. The purpose of the site is “to make us the shale capital,” Jones said. “This facility showcases our mission of creating public/private partnerships to provide students with state-of-the-art education and training and prepare the workforce needed by business and industry in the region,” Jones explained. The lab contains cameras and will eventually become a distance learning site, it was also announced. Jones reported once a state appropriation from Gov. John Kasich of $10 million was given to the college about two years ago for a two-phase expansion in Canton, Kathleen Steere, coordinator of the college’s gas and oil programs, seized the opportunity and went to work to leverage the funding by partnering with three other colleges, bringing in another $14.9 million in U.S. Department of Labor grant funds. In addition, Stark State will receive $2.76 million to provide the ShaleNET credit curriculum in the Utica Shale region. The college’s three partners in the ShaleNET curriculum are Westmoreland County Community College in Pennsylvania, Pennsylvania College of Technology in the Marcellus Shale Region, and Navarro College of Texas,
located in the Eagle Ford and Barnett Shale Region. Corporate partners include Chevron, Shell, Anadarko Petroleum Corp., Chesapeake Energy, XTO and Encana. In addition, a $500,000 grant from The Timken Foundation also funded oil and gas training equipment for the center. The training lab, which is Phase I of the college’s planned expansion, includes an indoor ShaleNET well site trainer as well as a pump jack, a gas separator, gas compressor, and stock tanks in the outdoor portion of the lab. Indoors, the ShaleNET lab contains cutaways to show how various well site equipment works, such as separators, which separate the rock and salt from the well fluids through a heating process, and well heads, where the students can learn how the fluids are removed and where all the equipment is attached. A number of large cranes were on hand for the students to learn to master, as well as a Meter Run/Meter Shed that records flow of the gas components through gathering/distribution pipeline, complete with nine student learning centers attached to FloBoss equipment so the students can learn to read the flow data. The second phase of the expansion will include opening a new Canton satellite facility across the street from the Well Site Training Lab, which will consist of classroom space and will allow the college to consolidate four current classroom locations in Canton into one, once the renovation of the facility is complete. Jones thanked all the donors as well as the political delegation that was instrumental in securing the $10 million appropriation, consisting
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of state Reps. Kirk Schuring, Christina Hagan and Stephen Slesnick. She also noted support from Sen. Frank LaRoche. Remarks were also given by James Zehringer, director of the ODNR, who said, “This is the type of facility Gov. Kasich has been pushing colleges to create. It allows students to go right into the workforce. Stark State will educate, train, and put people to work in the oil and gas industry, and Gov. Kasich is very proud of this training center.”
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ANESVILLE, OH — The highlight of the Ohio Oil and Gas Association’s annual twoday summer meeting at the Zanesville Country Club was the presentation of the Oilfield Patriot Award to Speaker of the Ohio House William G. Batchelder (R-Medina), the ninth person to receive the award since it was established in 2006. It is the first time since the award was created that a politician’s name was even in the conversation. More than 450 attendees applauded the past eight award recipients, people in the industry who made significant contributions to “protect, promote and advance the common interest of those engaged in all aspects of the Ohio oil and gas industry.” Emcee of the event, OOGA Executive Vice President Tom Stewart, said he was proud to welcome Batchelder into that special group of “patriots for the industry and patriots for the ideals of their country.” “Bill Batchelder has gone above and beyond that extra mile by being actively involved in the process, by blazing new trails and convincing others to see his vision. Bill has achieved his dream and we will all benefit,” said Stewart. “He is a staunch advocate for the oil and gas industry and we applaud him for his honesty, integrity and leadership.” Several state officials spoke highly of Batchelder’s integrity and noted several bills that have passed the legislature because of him. OOGA President David Hill said he has a unique ability to form coalitions for successful passage of legislation. He is very good at
listening to others’ point of view. “We recognize Bill Batchelder for his hard work and for serving this institution. You are leaving things better than what they were, not only for the oil and gas industry, but for all Ohioans.” Because of term limits, Batchelder is serving his last term as Speaker of the Ohio House of Representatives, which ends in December. Batchelder reminisced about his 46 years of public service, 30 of those years in the Ohio House of Representatives, and realizing his dream of becoming speaker of the House. His parting remarks drew a standing ovation. “People do not realize how important the industry is in regards to the economy, and all the industries it supports. From chemicals to cosmetics, to the manufacturing and clothing industries, and everything in between. They all depend on oil and gas,” he said. Batchhelder is the husband of Judge Alice Batchelder, a federal judge on the U.S. Court of Appeals for the Sixth Circuit. Batchelder was born and raised in Medina. He earned his undergraduate degree in history at Ohio Wesleyan and his juris doctor from Ohio State University College of Law. “Our Summer Meeting was a huge success again this year, with membership and attendance both up from last year, and with the excitement in the air about the industry. Everyone enjoyed the fellowship with new and old friends,”said Mike Chadsey, OOGA director of public relations. Producers Service Corporation in Zanesville, sponsored the event.
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alifornia, Nevada, and much of the southwest are experiencing major droughts. So when Golden State lawmakers killed a bill that would have banned the practice of hydraulic fracturing -- or “fracking” -- environmentalists cried foul. These “fractivists” claim the controversial drilling technique sucks up limited water supplies and exacerbates droughts. That claim is nonsense. Fracking represents a tiny fraction of the nation’s water consumption. There’s no reason to single the practice out by banning it altogether. Fracking involves injecting a pressurized water mixture into shale rock to free up the embedded oil and gas for extraction. This process typically uses about 2-4 million gallons of water per well. That amount seems huge. But relative to total water consumption in the United States, it’s miniscule. New York City uses more than 4 million gallons of water every six minutes! Overall, fracking accounts for only 0.3 percent of freshwater consumption nationwide. Meanwhile, less critical activities account for much more water consumption. Golf courses account for 0.5 percent of all freshwater consumption in this country. And the amount of water used in car washes every day is almost 100 times more than the amount used to frack a well. If lawmakers choose to single out fracking for draining limited water supplies, the economic effects could be devastating. Fracking-related projects add about $283 billion to U.S. GDP every year. Fracking has empowered a dramatic expansion in the American energy industry, leading to hundreds of thousands of new jobs and billions in new growth.
It would be preposterous to suppress fracking while allowing obviously less critical activities to continue unencumbered. Fracking plays a crucial role in state economic development. Keeping the putting greens crisp does not. Regulators shouldn’t single out the former if they’re willing to ignore the latter. What’s more, fracking also brings significant yet overlooked environmental benefits. Researchers at the University of Texas have determined that the amount of water saved producing electricity at a natural gas plant rather than a coal plant exceeds the water used to frack a well by as much as 50 percent. Fracking can, of course, be made more water-efficient. And energy companies have every incentive to do so. Saving water saves money. Trucking water to drilling sites can cost upwards of $400,000 per 100,000 barrels transported. And the energy industry is already embracing conservation measures. Fracking operations increasingly use recycled water and brackish water -- a mixture of freshwater and seawater. Recycled water is in heavy use in the Marcellus Shale, where roughly 90 percent of flowback water is reused. Currently, about 16 percent of fracking fluids nationwide include reused water. According to the respected energy consulting firm IHS, that figure is set to double over the next decade. Singling out fracking as a threat to our nation’s limited water supplies is completely spurious. And banning fracking while allowing golf courses and car washes and other non-essential activities to continue would defy all logic. Chris Faulkner is chief executive officer of Breitling Energy Corporation and author of the forthcoming book ‘The Fracking Truth.’
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Salvation Army; the USO; and Carol Geib of the YMCA. Stevie Fairchild said the Women’s Initiative focused on Dolly Parton’s Imagination Library, where any child, from birth to six years old, can be enrolled in the program to receive an age-appropriate book mailed to their home once a month. For more information about the program, call Fairchild at (740) 439-3558. Keynote speaker the Rev. Randolph White focused on what it means to be a hero and extolling the virtues of the community service clubs, 4-H, National Honor Society and many others, including preachers, who “bring hope.” White concluded his inspiring speech by stating, “Do all the good you can, in any way you can, for as long as you can.” Laube returned to the podium to announce United Way’s 201415 goal is $225,000. “Please remember the money we raise stays in Guernsey and Noble counties,” she said. “We are not only meeting a goal, we are meeting our community’s needs.” For information about United Way programs, agencies or how to volunteer for an event, call the office at (740) 439-2667, or online at uwguernsey@guernseyunitedway.com. jperkowski@daily-jeff.com u
AMBRIDGE, OH — The 2014 United Way of Guernsey & Noble Counties kick-off at the Guernsey County Senior Center last week attracted a large crowd treated to a breakfast with all the fixins,’ courtesy of the Hess Corp. This was the second year the New York-based gas and oil company has sponsored the event. The program began with a welcome by United Way Board President Angela Grywalsky, followed by Stephanie Laube, United Way executive director, who spoke about Hess’ commitment to the United Way. “Hess has done a lot more than sponsor this breakfast,” said Laube. “Hess has donated more than $7,000 to the agency. They are amazing people to work with ... they definitely walk the walk.” Speaking on behalf of Hess, Rob Williams, Utica operations manager, said, “We [Hess] are dedicated supporters of United Way. This is a small way to show we want to help the community. Thank you for allowing us to be part of the community ... to be a part of United Way.” Laube spoke briefly about the Young Professionals and United Way Ambassadors, who are a vital part of the fundraising campaign, before introducing representatives of United Way Partner Agencies who were in attendance: Marlene Henderson, American Red Cross; Mollie Crooks, Big Brothers/Big Sisters of Guernsey & Noble Counties; Ed Mullholand, Boy Scouts; Becky McCallister, Girl Scouts; GMN TRi-County CAC; Guernsey County Cancer Society; Shon Gress, Guernsey County Senior Citizens Center; Michelle Carpenter, Haven of Hope; Dama Ferguson, Hospice of Guernsey, Inc.; Lutheran Social Services; Madeline Watson, Noble County Health Dept. Youth Programs; Capt. Gary Thornton, The
Isaac Orr The Heartland Institute
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hio sits above the Utica and Marcellus shales, two geologic formations that have rich energy potential waiting to be unlocked by the process of hydraulic fracturing, commonly referred to as “fracking.” Increased energy production has the potential to be a powerful economic engine for unemployed Ohioans, but the debate over hydraulic fracturing has served to highlight the natural and political fault lines running through the state. These fault lines have become most apparent near Youngstown, an area that has felt two different sets of minor, fracking-related earthquakes, one in 2011 and one in the spring of 2014. The 2011 earthquakes are thought to be caused by disposing of wastewater from the hydraulic fracturing process in deep underground injection wells (the same kind used for carbon capture and sequestration), and the 2014 quakes are thought to have been caused by the hydraulic fracturing process itself. Despite these quakes, the residents of Youngstown have rejected bans on hydraulic fracturing three times within the last year, by double-digit or near-double-digit margins on each vote, dealing radical environmental groups a hat-trick of defeat in their quest to ban the practice. Youngstown residents have embraced hydraulic fracturing largely because the quakes were mild, Ohio regulators acted quickly and efficiently to take steps limiting future risks, and hydraulic fracturing has sparked an economic recovery in Rust Belt communities throughout the state. When most people think of earthquakes, they think of Hollywood-style earthquakes twisting bridges and splitting roads in two, but these are not the kind of tremors Youngstown experienced. The largest earthquakes felt in Youngstown in 2011 measured at 2.7 and 4.0 in intensity, and they resulted in zero injuries and no cases of verified damage. The largest of the 2014 quakes was a magnitude 3.0, which the US Geological Survey categorizes as a minor quake that produces vibrations similar to the passing of a truck. Not only were the quakes minor, but state regulators wasted no
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time in identifying the problems, shutting down activity directly contributing to the risk, and crafting new rules that have been applauded by the industry and environmental groups, such as the Environmental Defense Fund. Among the new rules are requirements that companies install sensitive seismic monitors before drilling horizontally into rock formations within three miles of a known fault area or an area where seismic activity greater than 2.0 has occurred, and drilling must be suspended pending investigation when monitors detect seismic activity above magnitude 1. These safeguards and the sterling track record of Ohio regulators in dealing with oil-and gas-related earthquakes have given residents confidence that proper precautions will be taken to make sure hydraulic fracturing is done in an environmentally responsible way, while providing a huge economic stimulus in an area that has been trending downward for decades. In some ways, the Youngstown area is an unfortunate poster child for the term Rust Belt. The region lost more than 16,000 manufacturing jobs during the Great Recession, and the unemployment rate peaked at 12.9 percent in March of 2009. Now, hydraulic fracturing is starting to shake off some of that rust, as evidenced by the construction of a $1 billion steel plant by Vallourec, a French manufacturer of steel pipes for the oil and gas industry, which employs 350 people. Additionally, a local pipefitters union, which reported 40 percent unemployment at the height of the recession only 4½ years ago, reached full employment last year, and as the business manager of Local 396 states, “None of this would have been possible without the oil and gas industry.” This dramatic drop in unemployment led Local 396 to rally against the fracking ban in Youngstown, creating a rift between blue-collar workers and greens, two demographics that have traditionally supported Democratic candidates. As more states seek to increase their economic opportunities by expanding their oil and natural gas industries, Ohio’s restrictions on wastewater injection wells and required mapping of geologic fault lines will likely serve as a blueprint for regulators in other states. But even if other states have fewer worries about natural geologic faults, the political ones will be sure to shake things up. Isaac Orr (iorr@heartland.org) is a research fellow for energy and environmental policy at The Heartland Institute headquartered in Chicago. Its mission is to discover, develop and promote free-market solutions to social and economic problems. For more information, visit its website or call 312/377-4000.
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TOP COUNTIES WITH HORIZONTAL DRILLING ACTIVITY BY NUMBER OF SITES
1. Carroll County 424 2. Harrison County 251 3. Belmont County 148 4. Guernsey County 136 5. Monore County 135 6. Noble County 110 7. Columbiana County 103 8. Jefferson County 44 9. Mahoning County 30 10. Tuscarawas County 17 11. Portage County 15 Trumbull County 15 12. Stark County 13 Washington County 13 13. Coshocton County 5 14. Holmes County 3 Morgan County 3 Muskingum County 3 15. Knox County 2 16. Ashland County 1 Astabula County 1 Geauga County 1 Medina County 1 Wayne County 1 WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, DRILLED, COMPLETED, PRODUCING, PLUGGED SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 08/09/14
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aron Bruggeman has joined the law firm of Bricker & Eckler LLP as an attorney on the firm’s Shale, Oil & Gas team. Aaron’s practice focuses primarily on oil and gas matters for clients in Ohio and West Virginia. Based in the firm’s Marietta office, Bruggeman will maintain regular hours two to three days a week in his hometown of Barnesville, Ohio, with an office located at 160 East Main Street in downtown Barnesville. “We are pleased to welcome Aaron to our growing team of oil and gas attorneys,” said Kurt Tunnell, managing partner of Bricker & Eckler. “Aaron’s presence in Southeast and Eastern Ohio and West Virginia will allow us to meet the increasing demands of our clients throughout the region.” Bruggeman brings to the firm experience with matters related to shale, oil and gas; and a variety of litigation and insurance matters. With bar admissions in both Ohio and West Virginia, he will continue to work with clients throughout the Mid-Ohio Valley on both sides of the river. Bruggeman earned his bachelor’s degree in political science from Ohio University in 2008 where he graduated cum laude, and he graduated summa cum laude from Capital University School of Law in 2011. While earning his juris doctorate, he was the Associate Notes Editor of the Capital University Law Review. A good steward of his community and profession, Bruggeman is active in a variety of leadership roles in his community. He is a member of the Barnesville Rotary Club, a member of Ohio University’s Eastern Regional Coordinating Council and a member of the Energy & Mineral Law Foundation. He serves as secretary for the
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Ohio State Bar Association’s Young Lawyer Section Council and is an active member of the Belmont County Bar Association. For more information about Aaron, visit his full biography. About Bricker & Eckler: Named to The National Law Journal’s “2013 Midsize Hot List,” Bricker & Eckler is one of Ohio’s leading law firms. Located in Columbus, Cleveland, Cincinnati-Dayton and Marietta, the firm represents a wide variety of clients, including businesses and corporations, nonprofit organizations, governmental agencies, health care entities, school districts, municipalities, banks and insurers. Bricker & Eckler has more than 350 active clients in the Southeast Ohio region, including 40 clients it has represented for 25 years or more. Many of the firm’s attorneys were raised, have family in or live in the region today. Learn more at www.bricker.com/marietta and www.bricker.com/southeast
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EW CONCORD, OH — Anyone who has ever spoken to Peggy Whited, either in person or on the phone, will most likely comment on her upbeat, positive attitude in addition to her business acumen, regardless of where she worked. Desirable qualities business people cherish in their employees. Whited’s ability to understand and adapt to all the nuances of a business, landed her a position at Buckeye Water Service that has evolved from office manager to office manager and human resources director in less than three years since she was hired by owner/operator Fred Badertscher in 2012. Sitting at her desk in her office, Whited is a perfect example of what an education, and a great smile, can do for a career. Whited, originally from Cuyahoga Falls, helped run her mother’s upholstery and fabric store in Tallmadge, until mom sold the business several years ago. In 1991, Whited and her husband, John, moved to his hometown of Cumberland. After their son entered high school, Whited decided to rejoin the workforce, and in 1998, because of her experience in bookkeeping, was appointed as clerk-treasurer for the village to complete a vacated term. She ran for the same position in 1999 and won. She resigned in 2002 after serving for four years. In 2008 she was appointed fiscal officer for the Village of Cumberland, serving until late 2013. At the beginning of her career, and because of her interest in accounting, she said she initially wanted to work at the State Auditor’s Office. “You must hold at least an associate degree to be considered for a job in the auditor’s office,” she said. “But at some point, I realized I really liked marketing and did not want to commute to Columbus every day.” Eager to expand her education in information technology, she enrolled at the former Muskingum Area Technical College (now Zane State), while she was working for the Village, completing her twoyear degree in applied business/information technology in 2003. She graduated with an almost perfect grade point average of 3.977, be-
came a member of Phi Theta Kappa, recognized as the official honor society for community colleges, and was a recipient of the Presidential Scholar Award, among other accolades. Instead of resting on her laurels, Whited enrolled at Franklin University, graduating summa cum laude in 2005 with a Bachelor of Science in Digital Communication, while she was employed at the Zanesville Advertiser as its production graphics supervisor. When the Advertiser was bought out by the Times Recorder she retained her employment until 2008, when she was rehired as the village’s fiscal officer. In 2010 she began working at the Cambridge Area Chamber of Commerce until 2012 when the office manager’s job at Buckeye Water Service became available. She was hired immediately. As office manager she is responsible for organizing and coordinating office operations, procedures and supervising the office staff. She manages all payroll processes and accounting-related tasks including weekly, monthly, quarterly and year-end taxes and reports, and initiated and implemented direct-deposit payroll for BWS employees. As the human resources director, she developed HR policies and procedures, in addition to directing and coordinating employment, compensation, labor relations, benefits, training and other employee
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y now, you’ve probably heard of the term “fracking” and have a foggy understanding that it has something to do with extracting natural gas from the ground. Unfortunately, the term has been spun to mean something new, unnatural, and rife with bad consequences, says engineer and environmentalist Greg Kozera. “Greater independence from foreign oil, job creation, a cleaner environment and a much-needed shot of economic growth is just the beginning of what hydraulic fracturing has meant to us in recent years, yet many think of fracking as the new dirty word, associated only with corporate greed,” says Kozera, an expert in domestic energy and author of “Just the Fracks, Ma’am,” (http://www.justthefracksbook.com/). “I want to replace the unfounded fears people have about fracking with facts. This is simply too important an issue for so many people to make decisions based on misinformation.” Kozera, who has worked on every aspect of the process as a veteran in the oil and gas industry, debunks the five biggest myths that are hobbling honest debate in the United States. • Myth No. 1: Fracking is a drilling technique. Actually, it’s a method to improve oil and gas production from a well after it’s drilled. From there, the well is evaluated and the geology is reviewed. Production from the well – if there’s any – is monitored with an electric evaluation log that’s run on most vertical wells and is used to help decide if and how a well should be fracked. After the evaluation is complete, then and only then is the decision made to frack a well and how it should be done. • Myth No. 2: Fracking is new. Fracking is nothing new; in 1947, the oil and gas industry discovered the method as a way of improving production in the country’s oil wells. In fact, more than 90 percent of the wells drilled in the United States have required fracking for gas and oil, he says. “Without fracturing, we would have no significant domestic oil industry and we’d have to rely on imports for nearly 100 percent for our fuel and transportation,” Kozera says. “If this ever happens, you will think gas at $4 per gallon is cheap!”
• Myth No. 3: Fracking is explosive. The original way that wells were stimulated, going back into the 1800s, involved a process known as “shooting,” wherein explosives were lowered into the well and set off, causing an explosion down the hole that would create a small cavern. Shooting was dangerous, involving a horse-drawn wagon filled with nitroglycerin, which can be very unstable. Hydraulic fracturing replaced shooting because it is safer and far more effective. Fracking is not explosive. • Myth No. 4: Fracking causes earthquakes. According to the United States Geological Survey, the U.S. averages more than 1.3 million earthquakes exceeding a magnitude of 2.0 annually based on data gathered from 1900 to 1999. Remember, fracking didn’t begin until 1947. Earthquakes are very common and have occurred within Earth’s crust for as long as there has been a crust. • Myth No. 5: Fracking contaminates groundwater. This is a major concern of the public – and understandably so! Clean drinking water is critical to life. However, if fracking contaminates drinking water, it would have done so long before now. We simply cannot frack up thousands of feet through solid rock. We know that rock is porous and fracturing fluids leak off into the rock and naturally induced fractures. As fluid leaks off, however, the fracture eventually quits growing in height and length, and ultimately does not reach our water sources. About Greg Kozera Greg Kozera is an engineer with a master’s degree in environmental engineering and an environmentalist with more than 35 years of experience in the natural gas and oil industry. He is the president of the Virginia Oil and Gas Association and the author of “Just the Fracks, Ma’am,” (http://www.justthefracksbook.com/). Kozera has worked in the field on frack crews, done the engineering designs for fracks and has managed facilities with more than 200 employees. Kozera has a comprehensive understanding of the fracturing process and how important it is to our children, grandchildren and the security of our nation.
Judie Perkowski Dix Communications
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EW PHILADELPHIA, OH — Houston-based EV Energy Partners LP announced it will begin drilling in Tuscarawas County on Oct. 1 to take advantage of the Utica shale oil boom, said EVEP Executive Chairman John Walker, with additional wells planned for 10 eastern Ohio counties including Stark and Tuscarawas, with French partner Total, where the company has acquired about 65,000 acres. The location of the wells was not disclosed. EVEP is a limited partnership with publicly traded stock focused on acquisitions, operations, and development of oil and gas properties. Although the western fringe of the Utica shale formation has not proven, thus far, to be profitable, according to other companies who have tried in vain the capture the allusive reserves, EVEP is “cautiously optimistic” about the company’s chances of striking oil. EVEP is working with experts who are testing unique fracturing techniques to increase the likelihood of producing significant quantities of gas and oil and alleviate major concerns about the fracking process: Diminish flaring which sends gas into the atmosphere for weeks on end; contain methane leaks, disposal of flowback water or brine, and reduce the amount of fresh water, approximately four million gallons, needed to drill each well. Industry efforts have even won some cautionary kudos from environmentalists, calling the industry’s efforts promising, with more improvements necessary to protect water and air quality throughout the country. The Wall Street Journal reported recently how oil and gas companies in North Dakota and Colorado have developed procedures to reduce emissions by 80 percent using compressed natural gas to power rigs, fracking pumps and other equipment used in the process; use treated flowback water to frack wells; and installation of more pipelines. According to previous stories in the Akron Beacon Journal the company announced preliminary plans for eastern Ohio in 2013, and most recently on Monday verified EVEP’s commitment to begin drilling its first exploratory well in less than six weeks. In 2013, EnerVest LTD, the parent company of EV Energy Partners, sold more than 22,000 leased acres in Guernsey, Harrison and
Noble counties Utica shale holdings for approximately $284 million, with additional sales to come. That averages to about $13,000 per acre, according to the story. EV Energy Partners owns 21 percent of the Utica East Ohio natural gas processing plant in Columbiana County and a fractionation plant in Harrison County. jperkowski@daily-jeff.com
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MARCELLUS SHALE
17 2 14 0 11 0 0 44
Wells Permitted Wells Drilling Wells Drilled Not Drilled Wells Producing Inactive Plugged Total Horizontal Permits
UTICA SHALE
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Data as of 08/09/14 Source: Ohio Department of Natural Resources
Thomas Clapper Dix Communications
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ARROLLTON, OH — Rex Energy’s second annual Meet and Greet event was held Aug. 16 at the Carroll County Fairgrounds. Rex Energy representatives were on-hand to speak with landowners. “We will be doing this as long as we have oil to drill,” said Dave Rogers, Rex Energy of Carrollton’s land manager. “This is only a minor thank-you for trusting us and allowing us to use your property.” Donations of food or cash for the Loaves and Fishes Food Pantry were accepted from landowners upon arrival in exchange for the day of fellowship and free food and prizes. Guests were invited for a free lunch catered by Old Carolina Barbecue. The Carroll County Volunteer Fire Department had activities
for the children and the CHS Art Club students provided face painting. The FFA offered a small petting zoo and Kurt James provided inflatables for kids of all ages. Postcards were drawn for door prizes including a Barbecue Grill, a Little Tikes Barbecue grill, a television, a Google Nexus 7 tablet, and more than 40 gift certificates purchased from local shops and restaurants. Boy Scout Troop 151 helped with parking, making popcorn, and collecting and delivering food donations for the Food Pantry. In addition, a 50/50 drawing was held with the proceeds going to the Loaves and Fishes pantry. The cash prize was half, which equaled approximately $175.
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ELSONVILLE, OH — The deadline to apply to the Gulfport Energy Fund for funds to create educational opportunities is approaching. Applications will be accepted until Sept. 30, 2014, and grant awards will be announced no later than Oct, 31, 2014. Tax-exempt organizations, including schools and nonprofits, serving Guernsey, Belmont, Monroe and Harrison counties are invited to apply by visiting the Gulfport Energy Fund webpage at www.AppalachianOhio.org/Gulfport. The Gulfport Energy Fund was established to support the communities where Gulfport operates. This first funding cycle has approximately $57,000 available for grant awards. Typical grant awards will range in size from $500 to $2,500. Grants are distributed on a bi-annual basis to address specific areas of investment essential to ensuring and sustaining a high quality of life. The Gulfport Energy Fund is a fund of the Foundation for Applachian Ohio, a regional community foundation serving the 32 counties of Appalachian Ohio. A 501(c)(3) public charity, the Foundation creates opportunities for Appalachian Ohio’s citizens and communities by inspiring and supporting philanthropy. For additional information on the Gulfport Energy Fund, please visit www.AppalachianOhio.org/Gulfport or call FAO at 740.753.1111. The Foundation for Appalachian Ohio (FAO) is a regional community foundation serving the 32 counties of Appalachian Ohio. A 501(c)(3) public charity, the Foundation creates opportunities
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nergy Information Administration expects natural gas production in the Marcellus Region to continue to grow.” The report shows production has increased from 2 Bcf/d in 2010 to its current level. The agency attributes the growth in production to the oil and gas industry’s “increasing precision and efficiency of horizontal drilling and hydraulic fracturing”, and EIA projects the increase in new well production will offset the typical decline in production of natural gas wells. According to the report: “With 100 rigs in operation and with each rig supporting more than 6 million cubic feet per day in new-well production each month, new Marcellus Region wells coming online in August are expected to deliver over 600 million cubic feet per day (MMcf/d) of additional production. This production from new wells is more than enough to offset the anticipated drop in production that results from existing well decline rates, increasing the production rate by 247 MMcf/d.”
In March, EIA’s DPR showed five of the six U.S. shale plays analyzed for the report have experienced an increase in oil and natural gas production per rig, with the Marcellus Shale having the highest increase in production of natural gas per rig. The Marcellus Shale has held strong as the country’s most prolific natural gas basin, and the projected growth has industry analysts predicting a bright future. Industry veteran Tom Shepstone, owner of Shepstone Management Company, Inc., and editor of NaturalGasNow. org, describes the Marcellus as “Unstoppable”. “These are incredible production numbers coming out of this formation. To put it in perspective, in just the last month, the Marcellus added 252 million cubic feet of natural gas to the daily supply. Assuming an average of 193 cubic feet of gas consumption per day, that’s enough gas to meet the needs of 1.3 million homes, a city slightly larger than Chicago, the nation’s third largest,” Shepstone stated.
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REPORT SAYS OIL PRODUCTION CONTINUES TO GROW ISMARCK, N.D. (AP) — North Dakota’s Industrial Commission says oil production numbers hit record highs again in the state in June as the state’s booming oil industry continues to grow. A report released Friday shows oil drillers in the state produced an average of about 1.09 million barrels of oil a day in June. The state’s Department of Mineral Resources says the production was up from about 1.04 million barrels a day in April. The North Dakota oil patch saw a record 11,079 producing wells in June, up from 10,902 wells in May. The state produced 37.5 million cubic feet of natural gas in June, an all-time high. That’s up from 36.9 million cubic feet of natural gas in May. Oil production numbers typically lag about two months.
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NEW NATURAL GAS PIPELINE PLANNED FOR W.VA., OHIO HARLESTON, W.Va. (AP) — A company is planning a $1.75 billion project that includes laying 160 miles of natural gas pipeline in West Virginia and Ohio. Columbia Pipeline Group announced the investment in a news release Tuesday. The proposal would help transport up to 1.5 billion cubic feet per day of natural gas. Columbia expects to start construction in fall 2016 before putting the pipeline in service in the second half of 2017. It will support natural gas development in western Pennsylvania, northern West Virginia and eastern Ohio. A second component will allow for more Appalachian shipments through a corridor stretching to the Gulf Coast. It primarily involves adding compression for existing pipelines. Columbia Pipeline Group is run by Indiana-based NiSource Inc. Columbia’s companies run about 15,000 miles of interstate natural gas pipeline.
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Spectra spokesman Arthur Diestel tells The Daily Progress (http://bit.ly/1uOmX7j ) in an email that the company is suspending development work on the proposed project. Diestel says the company will continue to evaluate opportunities in the region. Houston-based Spectra is a pipeline builder and operator. INDIANAPOLIS UTILITY TO CONVERT COAL PLANT TO GAS NDIANAPOLIS (AP) — Indianapolis’ local utility plans to convert to natural gas an aging, coal-fired power plant it’s faced growing pressure to retire. Indianapolis Power & Light President and CEO Kelly Huntington tells The Associated Press the utility’s decision to ask state regulators to approve switching the 427-megawatt station to natural gas was the “least cost option” for IPL’s 470,000 Indianapolis metropolitan area customers based on the impact of new federal EPA regulations. Jodi Perras of the Sierra Club’s Beyond Coal Campaign says more than 55 local groups passed resolutions urging IPL to retire the plant that’s long been Indianapolis’ biggest industrial polluter. She says “today, those calls have been answered.” But Perras says the Sierra Club and other groups will now focus on ensuring coal ash around the plant is cleaned up.
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PROJECT AT KY. COAL PLANT TO CATCH CARBON DIOXIDE ARRODSBURG, Ky. (AP) — Political leaders and researchers say a new project to capture carbon dioxide at a central Kentucky power plant is a crucial step to continue burning coal for electricity in a time of tougher environmental regulations. The $19.5 million testing facility under construction at the E.W. Brown Generating Station near Harrodsburg would capture and separate carbon dioxide from the emission stream after the coal is burned. Kentucky Gov. Steve Beshear on Monday called the project “a PROPOSED PA.-TO-NC NATURAL GAS PIPELINE ON HOLD big step forward for solving one of the biggest challenges facing HARLOTTESVILLE, Va. (AP) — Spectra Energy has put the Commonwealth today, and that challenge is carbon emissions.” a proposed interstate natural gas pipeline on hold. The technology is seen as a fix to keep old coal-fired power The pipeline would have run from Pennsylvania to North Caro- plants operating under tighter federal environmental rules. Last lina, and would have crossed Maryland, West Virginia and Virginia. month, the Obama administration unveiled new regulations meant
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to cut carbon dioxide emissions by nearly 30 percent in 15 years. The E.W. Brown plant has coal-fired units that date to the 1950s. So far, carbon capture has remained in the development phase due to high upfront investment costs and recent cheaper prices for natural gas that has enticed utilities to switch to burning gas to achieve lower emissions. The U.S. Department of Energy gave about $14 million for the Kentucky project and it is sponsoring another 15 post-combustion capture projects around the country.
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ALABAMA POWER REDUCING COAL USE AT 3 PLANTS IRMINGHAM, Ala. (AP) — Alabama Power Co. said Aug. 1 it will reduce or end coal use at three generating plants because of federal environmental rules as it spends $1 billion to meet new air emission rules. The utility said it will close two coal-fired generating units at Plant Gorgas in Walker County northwest of Birmingham. It also will eliminate coal as a fuel and switch to natural gas for fuel at DRILLING INDUSTRY USING MORE IMPORTED STEEL three Plant Barry units near Mobile. ITTSBURGH (AP) — Recent state data suggests that MarThe changes are supposed to be finished by 2016. cellus Shale natural gas drillers may be using far more imported steel pipe than previously thought, but the industry is questioning that figure. The Pittsburgh Post-Gazette (http://bit.ly/1v1uP9u ) reports that Department of Environmental Protection records show that over the last two years 77 percent of the shale wells drilled in Pennsylvania were built with foreign steel, while 12 percent used American steel and 11 percent were mixed. U.S. Steel Corp. says a glut of foreign tube steel has put about 260 people out of work at a plant near Pittsburgh and another in Belleville, Texas. The Marcellus Shale Coalition, an industry group, says a brief survey found that more than 90 percent of the steel pipe its members use is American-made.
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COMPANY FINDS NATURAL GAS IN SOUTHEASTERN ND ISMARCK, N.D. (AP) — A company exploring for natural gas outside of western North Dakota’s oil patch says it has found the resource. Strata-X Energy received four drilling permits from the state last year for Emmons and McIntosh counties, in the southeastern part of the state. The Denver-based company drilled a well about 10 miles east of Linton in June and says it hit gas. The company plans to drill three more wells later this year, as it works to determine whether future drillings in the two counties would be economical. Strata-X has leases on about 187 square miles for its Sleeping
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ARCH COAL IDLES MINE COMPLEX IN VA., KY. PPALACHIA, Va. (AP)) — Arch Coal says it is idling the Cumberland River Coal Company complex in Wise County, Virginia, and Letcher County, Kentucky. Officials said Monday that more than 210 full-time positions are being eliminated by the move. Arch Coal CEO John Eaves says the company is responding to market challenges for metallurgical coal used to make steel. Eaves said the company’s strategy is to shift its portfolio toward higher-margin, lower-cost metallurgical coal operations. The mining complex had previously shuttered two contract mines during the second quarter of 2013. Idling the operations will reduce the company’s 2014 metallurgical coal sales volumes by about 200,000 tons. Arch Coal now expects to ship between 6.3 million and 6.9 million tons of metallurgical coal for 2014.
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Kristen Spicker Dix Communications
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ith business booming in the Utica and Marcellus Regions, natural gas companies are looking to expand pipelines to meet increasing production rates. The Marcellus Region natural gas production has out-paced pipeline capacity and the U.S. Energy Information Administration cites Utica as the fastest growing shale region in the country. NiSource, the parent company of Columbia Gas of Ohio, is working on two pipeline projects in the Utica and Marcellus Regions totaling to a $1.75 billion investment that will carry up to 1.5 billion cubic feet of natural gas per day throughout Pennsylvania, West Virginia, Kentucky and even Gulf Coast states Mississippi and Louisiana. However, with pipelines gaining mileage more landowners are being approached for surveys and leases. Many residents living in these regions, remain unaware of their rights and what pipeline drilling involves. That’s where the Interstate Natural Gas Association of America (INGAA) enters the picture. INGAA is a regulatory trade organization that represents the majority of the natural gas companies. The group works with the Federal Regulatory Commission (FERC) and the U.S. Department of Transportation (DOT) Office of Pipeline Safety to ensure that not only are pipelines safe, but that landowners are being compensated properly and respected. “For a landowner, their home and their property is the single most valuable asset they have, so it’s not surprising that when a pipeline wants to build that a landowner will have concerns,” said Cathy Landry, communications director at INGAA. “As such, the pipeline industry has a commitment to landowners.” To fulfill that commitment, INGAA reaffirmed their “America’s Natural Gas Transporters’ Commitment to Landowners,” a document that emphasizes respect and openness for landowners and community members. The commitment has eight tenants spanning from negotiating in good faith to being good industry ambassadors. “Companies often hire contractors to make sure that people know that we have a commitment to treating all landowners with respect and have dialogue with them and treat them respectfully and listen to their questions,” Landry added. She also explained that although the interstate natural gas transmission pipeline falls in the right of federal eminent domain, it is
rarely used. “Pipelines work very hard with landowners to reach agreements with concessions and compensation to the landowners so that the pipeline companies can use their land,” Landry said. “There is a very public, transparent process with lots of public meetings, so if people have concerns they can ask.” The public meetings also enable pipeline companies to fully explain hydraulic fracturing and ensure the pipeline’s safety to landowners and community members. It provides companies a chance to state the necessity of the pipeline while also addressing any questions the public might have. Similarly, FERC also issues landowners a brochure with information on what to expect if natural gas located on their property. The brochure covers the responsibilities of the gas companies, environmental issues and the pipeline installation sequence. Both the brochure and a copy of INGAA’s commitment to landowners are given to landowners before any pipeline work even begins. With the pipelines continuing to expand, natural gas companies are trying to continue building positive relationships with landowners. As INGAA reaffirms their commitment to landowners, Landry explained the organization most important and basic tenant: “It’s just important to remember that it’s these people’s land and you need to treat them with respect.” For more information on landowners’ rights visit www.ingaa.org/ cms/6845.aspx.
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he 2014 North American Energy Outlook has been released, according to JLL, a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. This report details the impact that the oil and natural gas industry has had on American shale zones in places like Pittsburgh. The report pinpoints the Marcellus shale as the largest and most developed of the shale plays in the United States. The Marcellus shale is the most heavily populated of all the plays with 1.5 million residents in the Pennsylvania counties with 50 or more active wells. Having already reached significant size, it is expected to see the lowest population gains through 2018. Those living here are the oldest, with a median age of 44. There are nearly 80,000 different businesses within this geography. This mass has led to greater industry diversity though the area does have the highest percentage of manufacturing jobs at 21.2 percent. The unemployment rate is at 7.9 percent. Because of its growth, a large population has driven up home values. However, there is plenty of vacant stock in Marcellus to go around (vacancy rate of 15.4 percent). Retail supply is also largely sufficient. Currently, there is a surplus of automobile dealers, general merchandise stores and restaurants. Instead there is a huge need for grocery stores with a retail gap of $237.7 million. Energy Office Markets Leasing demand from natural gas and other energy-related companies is helping to drive growth and bolster the Pittsburgh office market, where rents are at their highest in more than a decade. In fact, the Pittsburgh market is outpacing national growth in rents and occupancy, thanks in large part to the energy sector. Energy Industrial Markets The Marcellus Shale industry continues to have a positive effect on Pittsburgh’s industrial market as the drilling, processing, storage and transportation of natural gas remains strong. Over the past few years more than 50 companies have rushed to the area, many of which are coming from Texas and Oklahoma. They include major independent companies such as Range Resources and Talisman Energy USA, but also include international oil conglomerates such as ExxonMobil and Shell. These companies have located predominately in Washington County, within the Parkway West and Southpointe submarkets. Energy requirements have typically been for warehouses of 10,000 to 20,000 square feet and four to five acres of lay-down yard space. Many of these companies have had a hard time finding existing properties that meet their requirements given Pittsburgh’s topography and history manufacturing steel and glass, often in
huge industrial facilities. Although numerous large blocks of space exist, very little is premium space. Consequently, many companies have met their needs by partnering with developers on build-to-suit projects. Energy Hotel Markets Pittsburgh is a mid-size lodging market which has seen a higher amount of hotel transaction activity than its peers, with deal volumes totaling $330 million since 2011. Our outlook for hotel operating performance, however, is more temperate; RevPAR growth among the city’s downtown full service hotels lagged national averages in 2013. That said, certain submarkets within Pittsburgh are seeing disproportionate demand growth due to specific economic sectors such as energy experiencing rising investment and employment. Pittsburgh currently boasts a slightly larger construction pipeline than Philadelphia, even though Pittsburgh is notably smaller. The hotel development pipeline consists primarily of branded selectservice hotels in downtown and suburban locations near corporate campuses and other demand generators which are expected to post robust growth during the next several years. Hotels with an extended-stay positioning are expected to fare well, as they will be well-suited to accommodate travelers on long-term assignments in the energy sector. A trend of note is the increasingly core and mature positioning of Pittsburgh’s hotel stock. Once primarily conceptualized in larger gateway markets, Pittsburgh is expected to see the addition of a new luxury boutique hotel. Kimpton’s Hotel Monaco Pittsburgh is slated for a late 2014 opening, speaking to investors’ increasingly core view on the market. To learn more about the report or to discuss the specific effects the marcellus shale has on the Pittsburgh area, email Andrew Batson, Pittsburgh researcher, at andrew.batson@am.jll.com.
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ENVER (AP) — Colorado Democrats avoided a politically costly fight over oil and gas drilling after a quid pro quo deal pitched by the state’s fracking-friendly governor prompted groups to drop their dueling ballot proposals. The cease-fire compromise from Gov. John Hickenlooper was announced with great fanfare at the state Capitol Aug. 4 with U.S. Rep. Jared Polis, a fellow Democrat who helped finance two initiatives that sought to limit hydraulic fracturing, or fracking. He agreed to back off his proposals, and groups pitching two profracking proposals said later in the day they would end their campaigns as well. A ballot-battle over drilling had Democrats worried about the implications. Taking the issue to voters could have negatively impacted Democrats in November by increasing fundraising for Republicans who favor oil and gas development and possibly boosting GOP turnout. Hickenlooper is running for re-election, and incumbent Democratic U.S. Sen. Mark Udall is in a closely watched contest against Republican U.S. Rep. Cory Gardner. The race could help determine control of the Senate. As a compromise to avoid the ballot fight, Hickenlooper said an 18-member task force would issue recommendations to the Colorado Legislature next year on how to minimize conflicts between residents and the energy industry. Polis said the governor’s announcement was “truly a victory for the people of Colorado and the movement to enact sensible protections and safeguards around fracking.” Fracking is a technique that blasts a mix of water, sand or gravel, and chemicals into underground rock formations to release trapped oil and gas. Backers of the two measures sympathetic to the industry also declared victory. “This is an exciting turn of events,” said Rep. Frank McNulty, who worked on a ballot question that would have prevented municipalities banning fracking from collecting state revenue that comes from drilling. “For months we’ve asked Polis to pull his initiatives in favor of a more constructive approach.” Another pro-fracking initiative would have called for financial impact statements to be included in future ballot questions seeking greater oversight on energy development. Signatures for the four ballot questions were turned in before Monday’s deadline, but the groups had until Sept. 5 to pull them. The Polis-endorsed measures would have increased the distance
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n August, the Marcellus Shale Coalition (MSC) released the results of its annual workforce survey based on data from 2013. The study found that 83% of new hires from the oil and gas industry came from areas within the Marcellus Shale region [Pa., Oh., W.Va., N.Y., Md. That’s good news for the local workforce, as expanding development in the region is creating an increasing amount of new job opportunities. According to the survey data, MSC member companies (representing nearly 95% of Pennsylvania’s shale production) expect to hire more than two thousand new employees through this year, a continuation of the economic revival the industry has brought to the area. “Shale development represents a generational opportunity for our Commonwealth. Since day one, our industry has focused on fostering the growth of a skilled and well-trained local workforce to ensure that lifelong opportunities are being fully realized,” said MSC president Dave Spigelmyer. “These collaborative and ongoing efforts – industry groups, member companies and other key stakeholders working closely with a host of educational institutions as well as trade schools – continue to deliver strong results in the form of new jobs for our region’s workforce, as reflected again in this survey data.” The survey broke down different fields in which new employees are being hired, with 26.5 percent of new working in engineering and construction, 23 percent of new hires work in equipment operations, 15.2 percent in operations and maintenance, 8 percent in administration, 7 percent in land and 5 percent in environmental, health & safety. Job growth is expected to continue favor southwestern Pennsylvania, and efforts to train and attract workers from within the com-
munity will continue to be a focus of the industry, Spigelmeyer said. “Attracting and retaining a high-quality, local workforce is a key tenet of our Guiding Principles. By nearly all metrics – and with Pennsylvania’s unemployment at its lowest level since September 2008 and well below the national average – we continue to make positive progress on this important commitment, helping to create opportunities for those seeking work in our growing industry. And while some challenges still exist, this survey helps identify gaps to refine and better direct our collective efforts aimed at boosting local job growth for years to come.” Job creation is expected to fall largely into three sub-sectors identified as being in greatest demand to the industry: midstream and pipeline; operations and maintenance; and engineering and construction. Engineering Success It pays to be a petroleum engineer. Quite well, actually. According to CareerCast’s annual Jobs Rated Report, petroleum engineering ranks as the 6th best paying jobs of 2014. Using data collected from the Bureau of Labor Statistics, the report found the average salary of a petroleum engineer to be $130,280. With expansion in oil and gas development in various formations across the country, the field is expected to be one of the highest growth postions, with a 26% projected growth through 2022. The report’s findings are on par with an August 12 study released by American Geosciences Institute (AGI), which found the median salary of petroleum engineers had increased by more than $10,000 since 2011. “The geosciences continue to be a lucrative employment option within the current workforce,” the AGI study concluded.
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T. CLAIRSVILLE, OH — Belmont College announced the addition of a new industry specific program, Instrumentation and Control, as part of their Industrial Electronics degree. The new program was created to teach students the skills required by the manufacturing and energy industries such as, knowledge and practice in electronics, programmable logic controllers, instrumentation and process control integration. According to Judy Sandstead, Belmont College director of program development, “The Instrumentation and Control Associate Degree program will provide students a choice for a career path with many options for jobs in the coal, electric, oil and gas industries.” The Instrumentation and Control program, which supports industry needs in both manufacturing and oil and gas processing plants, places an emphasis on the automatic control of energy production and industrial processes using Programmable Logic Controls Courses in this program include a strong component of practical applications, hand-on laboratory experiences and the principles that focus on basic indus-
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he Workforce Development and Community Education Department at Belmont College will be offering several industry safety training courses. These courses will include hands on safety training in Mine Safety as well as SafeLand training for the oil and gas industry. All courses will be at the Belmont College Main Campus in St. Clairsville. The following safety courses specific to the mining industry: • Introduction to Mining is a one-week course from 6 to 9:55 p.m. Oct. 20-24. This course will provide general orientation to the coal mining industry, including mining technology, methods, machines and chain of command. Miners’ rights and responsibilities will be addressed, as well as descriptions of various local, state and federal agencies.
trial processes. Manufacturers and producers of almost every product depend on complex electronic equipment to control their facilities. Most industrial equipment contains electronic sensors, programmable controllers and electrical devices which continuously monitor and direct the processes within the business. Graduates of the program may be employed as technicians in installation, operations, maintenance, or sales, and may work for employers in energy companies, oil and gas processing facilities, businesses, factories, mines, utilities and primary metal mills. Field technicians travel to industrial sites to install, maintain, and repair customer equipment, while bench technicians work in repair shops located in service centers and factories. Technicians use diagnostic tools that measure a variety of parameters to maintain and repair equipment. For more information about the Instrumentation and Control Program, contact an enrollment services associate at 740.695.8516 or visitbelmontcollege.edu. • Mine Law and Safety is a one-week course offered from 6 to 9:55 p.m. Oct. 27-31. Any student who wishes to participate in this class must first successfully complete the Introduction to Mining course. Students will receive information about the Federal Coal Mine Health and Safety Act of 1977, Title 30, Code of Federal Regulations. In addition to these publicly scheduled trainings, Belmont College can provide any of these safety courses as customized training for business and industry. Customized, affordable training can be delivered at the college or at a business location. For more information about the Mine Safety or SafeLand safety training courses, customized training, or to register, contact the Workforce Development and Community Education Office at 740.699.3869.
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ITTSBURGH, PA — “Gas prices are just too low,” the older gentleman said, not to anyone in particular but to anyone that would listen. As he took a sip of his coffee he continued, “I’m guessing many of these oil guys will just move on out if those gas prices don’t go up. They’ll just stop drilling.” Next to him sat a mountain of a man wearing brown Dickies coveralls that were well worn, so much that his plaid work shirt provided the pathwork for his accidental modesty, and muddied steeltoe boots, which were untied and their tongue folded over the laces, much like the tongue of a Labrador after several hours of flushing birds. “Naw, I think we’ll be alright, these guys aren’t going anywhere. There’s just too much here and not enough of us to get it out,” said the mountain man as he dipped his Texas toast into his dippy eggs, “I need to hire more guys just to keep up with what I got now. Things get slow sometimes because we just don’t have enough pipe in the ground to get things going.” “So, why don’t you just put more pipe in the ground,” responded the older gentleman. “Wish I had control over that one, Chief, no clue what the holdup is.” This conversation seems to happen in a number of townships here in Southwestern Pennsylvania. There is a fear that Marcellus and Utica shale development will be a flash in pan. Many, like the older gentleman above, remember the good old days of steel and coal but they also remember how painful things became as these industries waned over the last couple of decades. Thankfully, these opportunities are real and multigenerational. The Marcellus and Utica shale play will create an economic ripple effect that will touch every person in Southwestern Pennsylvania for the next several generations. Identifying the opportunities that define the limits of this ripple effect, however, have been difficult to identify and adapt. Opportunities that directly support the oil and gas industry exist in the upstream (exploration & production), midstream (gathering & transmission pipelines), and downstream (gas distribution systems and pipelines). Although it is no longer the ‘gold rush’ era of the early years of Marcellus and Utica development, there are a number of services needs that are still needed to support these three market sectors. For the upstream gas operators, there are opportunities relating to a number of wellsite services like completions, cementing, roustabouts, rig hands, water hauling, water treatment, among a host of other opportunities. According to the Pennsylvania Statewide Marcellus Shale Workforce Needs Assessment, an expected 30,684 direct workforce jobs will be created in 2014, up from the 14,777 direct jobs created in 2010 to complete 1,368 wells. This number only promises to increase as shale development continues. As existing transmission lines begin reaching their maximum capacity for natural gas, exploration and production efforts may slow down to allow infrastructure development to catch up with produc-
tion. For many in Southwestern Pennsylvania, this slowdown in production causes many in the region to worry that Marcellus and Utica may be a flash in the pan. Instead, this slowdown in production is temporary as more gathering and transmission lines are design, permitted, and built. It is in this slowdown where entrepreneurs in this region may find the best opportunities. One of, if not the biggest demand is for qualified labor. The mountain man at the diner had it right, there is a massive shortage of skilled and unskilled labor for many of the projects that are planned for this region. Common needs are surveyors, inspectors, pipe welders, Cathodic protection installers, and contractors. Finally, and often overlooked, there is a massive natural gas distribution network in Southwestern Pennsylvania with its own needs and opportunities. In Pennsylvania there are thousands of miles of older bare steel and cast iron pipelines delivering high pressure natural gas to homes and businesses. All of these assets need to be replaced by newer, corrosion-protected, pipelines. Gas utility companies across the Commonwealth are taking advantage of the Distribution System Improvement Charge (DSIC), a Pennsylvania Public Utility Commission-approved charge that allows certain utilities to use a surcharge on customers’ bills to accelerate the replacement of existing aging facilities that will otherwise occur if the utility must wait until the completion of a rate case to begin receiving a return on its investment. Taken from puc.state.pa.us. This authorization is critical in high density residential areas where high pressure gas lines are prevalent. Because of DSIC and the abundance of aging infrastructure, there are a number of opportunities to provide a number of services to the gas distribution industry. While this industry is highly regulated (smaller margins for vendors), there are significant opportunities to create a long term relationship with the handful of utility companies in Western Pennsylvania. The opportunities to provide goods and services to the oil and gas industry are certainly plentiful in Southwestern Pennsylvania. While the upstream sector of the market has a greater tendency to ebb and flow, the midstream and downstream sectors offer a bit more stability for long term strategic planning. As a small business owner in Southwestern Pennsylvania, any desire to participate in this market will require both a solid understanding of the natural gas supply chain and a strong relationships with key decision-makers or influencers in the areas where you would like to operate. Dan Garcia is an Oil and Gas Attorney in Pittsburgh, PA. He received his undergraduate of Texas A&M University and his law degree from the University of Pittsburgh. Please feel free to email Dan at dagarcia76@gmail.com if you have any questions.
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to the department and the community. Neuhardt said eventually Dixie will be introduced to students at Barnesville schools. Neuhardt said Dixie has been well-received so far. The K-9 unit will be funded by the village, drug seizure proceeds and donations. The department was started with the help of donations from Hess Oil, Chestnut Lanes bowling alley, and Bostic and Son Concrete, who poured the pad for Dixie’s kennel. The Chestnut Lanes donation came from a fund raiser by the Barnesville Bowling Association. Another fund raiser is planned for the fall. Corder encourages other businesses to donate as well. “This is a good thing,” Corder said. Donations are appreciated and will be used for Dixie’s equipment, veterinarian bills, food, etc.
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he Barnesville Police Department’s newest member came all the way from the Czech Republic. Dixie, a 15-month-old German Shepherd and her handler, officer Ben Neuhardt, were recently certified as the department’s first K-9 unit. Dixie is also one of the only female K-9s in Belmont County. In August, Officer Neuhardt and Dixie stopped in at downtown Barnesville businesses to introduce themselves and give Dixie a chance to “sniff around”. Officer Neuhardt and Dixie have been in training since she arrived on May 30. She is now certified as a dual-purpose dog, having the ability to sniff out drugs, track, do article and area searches and take down suspects. Her commands are given in German, so that the average person couldn’t give commands, however, Dixie and Neuhardt are so close that she probably wouldn’t obey anyone else. Barnesville Police Chief David Norris said he chose Neuhardt, who has been an officer for four years, to be Dixie’s handler after seeing him with his own German Shepherd. Chief Norris said the Barnesville native was a natural choice and has the right temperament for handling the dog. Neuhardt previously served on the Woodsfield Police Department. Norris said the K-9 Unit is long overdue and will be a benefit
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