Shale Play - Northeast Ohio Edition 6-28-12

Gov. John Kasich PSC cracking down on Report: Don’t worry too much signs drilling rules/3 about quakes and fracking/17 hydrant draining/14

SHALE PL A Y EXPLORING LOCAL GAS AND DRILLING OPPORTUNITIES • Thursday, June 28, 2012

INSIDE

Chesapeake selling pipelines for $4B

Gas boom leads to lawsuits in Ohio

WHEELING, W.Va. — To help reduce a projected deficit ranging anywhere from $9.5 billion to $22 billion, Chesapeake Energy is selling its stake in natural gas pipeline systems for $4 billion/Page 11 This rig between Miller Road and Ohio 517 in the upper northwest corner of Elkrun Township will be drilling what Chesapeake has named the Grubbs Well. The growth of drilling operations in Columbiana County has led to a number of lawsuits.

Site chosen for processing plant

Photo by Patti Schaeffer

HANOVERTON, Ohio — A 117acre site located about a mile south of the village has apparently been chosen for a proposed $400 million shale gas collection and processing plant/Page 12

By TOM GIAMBRONI Staff Writer LISBON, Ohio — The shale gas boom under way in Columbiana County has been a boon to the legal profession judging by the number of lawsuits.

More than a dozen shale-related lawsuits have been filed over the past year alone in county Common Pleas Court, including three lawsuits filed earlier this month. The lawsuits are: ∫ TGS-Nopec Geophysical Co. and Chesapeake Exploration filed a lawsuit against Marilyn Slates of North Canton seeking access to 332 acres in Hanover Township so it can perform seismic testing.

The property’s mineral rights have been leased to Chesapeake, which hired TGSNopec to perform the seismic testing needed to determine the best places to drill. According to the lawsuit, Slates — as the trustee for the land — has refused to sign off the paperwork that would allow the company access to the property for testing.

• Please see LAWSUITS, page 2

Drilling road work under way First Utica rig to be in Vienna PRSRT STD US POSTAGE PAID WHEELING, WV PERMIT NO. 856

By DAN POMPILI Shale Play VIENNA, Ohio — Road construction continued earlier this month along Warren Sharon Road near the Wollam Racing Stables as work crews prepare for the large trucks that will bring Trumbull County’s first Utica Shale drilling rig.

It began in May when a tree was cut down at the planned access point, and now, Youngblood Paving of Wampum, Pa., put down the blacktop for the access road onto

the farm property, where the well will be drilled.

County Engineer Randy Smith said the road milling also took place and will be followed by the chip-and-fill process and resurfacing, weather permitting.

Canonsburg, Pa.-based CNX has signed a road maintenance agreement with Trumbull County, posted a $100,000 road bond and certified $1 million in liability insurance.

CNX is a subsidiary of CONSOL Energy.

County officials negotiated with CNX for road-strengthening work that will prepare Warner and Warren Sharon Roads to handle the heavy truck traffic that comes with a drilling operation, including transport of the drilling rig itself.

To prepare Warner Road for the traffic, 2 inches of blacktop will be added to the exist-

ing surface. The section of Warren Sharon Road will be milled, chipped and sealed, then re-paved.

Smith said trucks exiting Ohio 82 will then take Warner Road north to Warren Sharon Road and west about half a mile to the well site.

CNX Spokeswoman Lynn Seay said key infrastructure work needs to take place before any site construction can begin.

Seay said CONSOL’S director of Ohio operations, Harry Schurr, said the company is planning on a July drilling date, but no specific day has been set.

The well was permitted at the end of April, and road construction was expected to begin

by May with a June drilling date.

• Please see UTICA, page 2

SHALE PLAY

2

Thursday, June 28, 2012

Lawsuits continued from page 1

Photo by Dan Pompili

Construction crews from Youngblood Paving of Wampum, Pa., recently began laying blacktop for a new access road for what is expected to be the first Utica Shale natural gas well in Trumbull County, Ohio. The work, along Warren-Sharon Road in Vienna Township, will improve the roadways in advance of drilling expected in July.

Utica continued from page 1 The drilling pad will be approximately 200 yards south of Warren Sharon Road and about 150 yards west of Warner Road.

The county is also in talks with Houston-based Carrizo Gas for another well in Vienna, along Ridge Road. Carrizo has obtained

a permit for one along Hayes Orangeville Road in Hartford.

The Hartford site is purely speculative for now, Carrizo sources said, because the company does not know what the Utica shale play may yield in their acreage.

A permit obtained in Mercer County, Pa., likely will be Carrizo’s first exploration of Utica shale, and Hartford may be drilled later if they believe it will be productive.

A drilling permit for rural land lasts for two years.

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The lawsuit asks the court to declare that Chesapeake has the right to have its agent conduct seismic testing on the property, issue an injunction granting them access, and also award the plaintiffs $25,000-plus in damages as compensation for the revenue being lost due to the delay.

This is the second such lawsuit filed in the county, and the property owners won the first one on a technicality, but the action was refiled with Chesapeake added as a plaintiff. ∫ Roger, Carolyn, James and Bruce Starkey of Mechanicstown in Carroll County filed a lawsuit against Patriot Energy Partners of Lisbon, PEP Leasing of Lisbon, Andrew and Thomas Blocksom of Lisbon, and Robert Dickey of Lisbon. The lawsuit alleges they are involved in some fashion with Patriot Energy and/or helping secure mineral rights leases from the Starkeys on behalf of Patriot Energy.

Also named as defendants are Buckeye Oil Producing Co. of Wooster, Bass Energy of Fairlawn, Wimsatt Family of Paris, Sonata Investment Co. of Columbus, and Chesapeake Exploration because all may have an interest in the leased property.

The gist of the lawsuit and several others filed against Patriot Energy allege the company engaged in questionable business

practices to obtain the leases for only a fraction of what they were really worth and then sold the leases to other companies for significantly more money.

A restraining order is sought to prevent the Blocksoms and Dickey from notarizing or assigning any more leases in which they have an interest and that the lease agreement with Patriot Energy be voided. The Starkeys also want more than $1 million in damages. ∫ Another lawsuit was filed by a group of property owners in the Lisbon and Leetonia areas against Columbia Gas and its parent company over the Brinker Storage Field. Columbia Gas had pre-existing leases for these properties to store gas in underground tanks. The plaintiff claims these leases have since expired due to lack of activity on the property, which would allow them to enter into new leases for significantly more money.

The plaintiffs in this lawsuit — the fourth of its kind — are Daniel and Sandra Gruszecki, Miller Road, Leetonia, Ohio; Richard and Diane Dowd, Ohio 517, Lisbon; John, David and Jennifer Krawchyk, Ohio 558, Leetonia; Dale Riehl, Leetonia Road, Leetonia; Tracy and James Bruderly Jr., Lodge Road, Leetonia; Michael and Dawn Moore, Leetonia Road, Leetonia; and Daniel and Lynn Hill, Woodville Road, Leetonia.

SHALE PLAY

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SHALE PLAY

Thursday, June 28, 2012

3

Kasich signs drilling rules COLUMBUS, Ohio (AP) — The policy debate over hydraulic fracturing in Ohio doesn’t end with Gov. John Kasich’s signing of new drilling rules in mid-June.

A fellow Republican in the Ohio House said that he and some GOP colleagues plan to revisit the governor’s proposed tax increase on the industry before the session ends in December, setting up a likely fight between lawmakers, the governor and the oil and gas industry.

Hydraulic fracturing, or fracking, in-volves blasting millions of gallons of chemically laced water into the earth to fracture shale formations and release oil, natural gas and natural gas liquids such as propane.

The energy measure signed by Kasich lays out rules for disclosing the chemicals that are used in the process, construction of wells and reporting of water sources and amounts used as the developing Utica and Marcellus shale formations running under parts of Ohio are explored.

The legislation also

Ohio Gov. John Kasich, right, signs into law new drilling rules for his state.

AP Photo

makes changes to Ohio’s clean energy standard, affecting the types and percentages of renewable energy that are being phased in by utility companies.

But lawmakers chose to leave out the governor’s plan to raise severance taxes on high-producing oil and gas wells tapped using high-pressure fracking.

Kasich wants to funnel proceeds from his proposed

tax increase into modest statewide income-tax relief in two or three years, after a grace period in collections that would allow well operators time to recover their startup costs.

Studies have diverged on the tax’s economic impact on the growing industry, but polls show voters support Kasich’s proposal.

Ohio Oil and Gas Association executive vice

president Tom Stewart said his organization of energy producers is largely supportive of the sweeping energy bill that Kasich signed Monday at Echogen Power Systems in Akron.

But Stewart said he believes Kasich’s proposal to increase the tax to 4 percent singles out large oil and gas producers over smaller ones, raising a potential legal question.

“I think there could be some problems when you start singling out by (shale) formations, or certain sized businesses,” he said. “You have problems regarding equal treatment under the law.”

Stewart said the industry continues to fight the tax hike, and they have some support in the Republicandominated state Legislature to make adjustments.

“I don’t think the conversation’s dead,” Stewart said. “John Kasich is trying to do his best for the welfare of Ohio, I know that.

He wants good things to happen for Ohio. But I don’t think he has a good handle on oil and gas right

now. What we’re seeing is a lot of caution out there in the oil field.”

Kasich spokesman Rob Nichols said there’s been no evidence the governor’s tax hike would deter drilling.

“The industry is growing, it’s growing in terms of (job) applications, in terms of permits, in terms of number of wells — and this occurring long after the governor’s plan for the severance tax was known publicly,” he said. “At the end of the day, Ohio remains a very high tax state and this is about driving down the income tax to make us more competitive to put Ohioans back to work.”

GOP State Rep. Lynn Wachtmann, of Napoleon in northwest Ohio, is among those who believe the issue needs more study.

He said he believes an agreeable compromise could be reached by December or January.

“My end goal is to have a severance tax that encourages further investment as well as development of these natural resources,” he said.

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SHALE PLAY

4

Thursday, June 28, 2012

TRUMBULL COUNTY ECONOMY IMPROVES Local manufacturers: Hiring on an upswing

By LARRY RINGLER Shale Play WARREN, Ohio — Amid concerns about weakening in the nation’s job market, the area’s unemployment rate continued to improve in April, gradually setting a more stable economic foundation in home and vehicle sales.

“I have several doctors’ offices who have called for medical assistants, both clinical, including phlebotomy (drawing blood) and office workers,” said Diana Moss, health care coordinator at the Trumbull Career and Technical Center in Champion.

Vicki Thompson, the school’s adult education director, said the school is seeing demand for everyone “from high school graduates to people in their 60s. It had been real slow, but (employers) are starting to call again. The trend is upward, especially in manufacturing.”

Thompson said companies in the past often would take experienced workers from other businesses. But with workers retiring at a more rapid rate, companies are facing a shortage of trained employees and are turning to schools like TCTC to fill the gap.

She said the school earlier in June signed a “gigantic pact” with General Motors Co. Lordstown

Chris Ferry of Newton Falls in Trumbull County, Ohio, practices welding at Trumbull Career and Technical Center.

Welding is a growing field with workers expected to be in demand as the shale drilling industry grows.

Photo by Larry Ringler

Complex to train workers. Two other companies want to send six to eight students into a training program.

Demand also is increasing for welding, construction and other skilled trades, partly driven by job growth in the oil and gas shale drilling companies moving into the area to tap the Utica Shale.

U.S. Sen. Sherrod Brown, DOhio, late last week announced the U.S. Department of Labor is providing $6 million to train workers in the Mahoning Valley and Shenango Valley of western Pennsylvania to counter an “acute and critical” manufacturing skills

shortage of trained workers for shale and other manufacturing jobs. Jobs are acknowledged as the first step in an economic recovery, since a steady paycheck translates into house, vehicle and other purchases.

Trumbull County home sales in April presented a mixed bag, with unit sales falling to 130 from 137 a year ago, but the median price rising to $64,050 from $62,900.

April new-vehicle sales showed some small gain to 2,150 from 2,083 in the same month of 2011.

Sales tax receipts for February, which Trumbull County received from the state in May, rose 10.8

percent from the year-ago period to $1.85 million, by far the best February since the recession started.

It all stems from a steady reduction of the area’s jobless numbers, though with a note of caution.

Warren’s unemployment rate in April dipped to 8.7 percent, its second straight month under 9 percent and lowest since 8.6 percent in October 2008 as the Great Recession was starting to be felt.

Trumbull County’s rate dropped to 7.6 percent, best since the same number in October 2008.

However, a big part of the percentage drop is people have given up looking for work during years of recession.

Warren’s labor pool shrank to 17,500, with 1,500 unemployed, in April compared to 19,400 available workers and 1,700 jobless in October 2008.

The work force in the latest county rate was 100,000, with 7,600 people unemployed, compared to a labor pool of 105,100 and 8,000 unemployed in October 2008.

Some training courses continue to grow.

Moss said the training and career center has been able to place students training in drawing blood with the American Red Cross.

Pharmacy technicians also are in demand.

She added nursing homes and other caregivers “are crying for” state tested nursing assistants, or STNAs, who provide bathing, dressing, feeding, grocery shopping and other direct patient care.

The school is seeking registrants for a class starting in July that will offer a Health Care Associate program, which follows STNA training.

Students at 200 percent or below of poverty level — $22,340 for one person, $30,260 for a twoperson household and $46,100 for a family of four — may participate in a lottery through the Compass services program to get financial aid. Students also can get assistance through local OneStop state offices, prompting Moss to expect more students for fall classes.

SHALE PLAY

Thursday, June 28, 2012

5

How much money will village reap?

By KATIE SCHWENDEMAN Shale Play EAST PALESTINE, Ohio — A member of this village’s council is tired of waiting and wants to know how much money the village could reap through an oil and gas lease.

Fran Figley brought up the matter during a recent council meeting and referenced an article in the Lisbon Morning Journal about offers being made to Lisbon for municipal property.

The article said the county seat could reap up to $5,800 an acre, plus 20 percent royalties through signing with Chesapeake Exploration, the Oklahomabased company that has already secured thousands of leases in Columbiana County.

Figley wants to know how much East Palestine is being offered for village property but Village Solicitor Shirley Smith has declined to make that information public at this time.

She has said on numerous occasions she believes the figures should not be disclosed since the village is currently in negotiations

Village leaders in East Palestine, Ohio, are hoping to sign a natural gas drilling lease for the village’s 640 acres so that natural gas drilling rigs such as this one can soon be in place.

File Photo

with different companies.

She told Figley that other area offers are being printed in the newspaper because those leases have been finalized.

Figley asked her if she saw the newspaper article, to which she responded that she did, however, the article stated that Lisbon has not signed a lease at this point.

Smith said in April she is attempting to negotiate with

Chesapeake Energy, Hillcorp Energy and BP Royal Dutch Shell for 640 acres of village land and that a non-drill clause for park and cemetery land be included in a potential lease.

Of the village’s 640 acres, about 135 acres are park land and 32 acres are cemetery land.

Smith said she is still waiting to receive a formal

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lease from Chesapeake Energy and that the delay is due in part to an employee change within the company.

Figley said several people in the village have asked him where they stand on the matter and told Smith that council members should at least know the figures — even if she does not wish to disclose them to the public.

“I disagree totally that it interferes with us getting

the best price,” he said of the potential lease offers. “I don’t know why council wasn’t told anything.

Maybe some on council have input; it’s been four months now.”

Figley has said more than once he believes some on council are privy to the information but council members have not responded to that claim during the meetings.

Councilman Don Elzer said after the meeting that he doesn’t know what the figures are but can estimate based on knowing how much he has been offered for his own property in town. He believes the village should hold out for a

more lucrative offer in the future.

“I’m hearing in the private sector they are offering $3,500 an acre ... I think the village should wait until the pendulum swings back,” he said.

Smith said during the meeting that there are “varying opinions” on whether waiting is beneficial, but added that at least two individuals she has spoken with outside the village are going to “hold out for higher numbers.”

In addition to negotiating for village land Smith is also talking to neighboring municipalities about leasing as a group. She said Salem sent a letter of interest to the village regarding a group lease.

Elzer suggested at the end of 2011 that leasing as a group would reap more revenue because more acreage would be involved.

Smith said she would present Figley and other council members with leasing information this week.

“Obviously I won’t be entering into a lease without council’s review of that (lease) and approval,” she told Figley.

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SHALE PLAY

6

Cimbar expansion to increase production and employment

A compressor station such as this could be on the horizon for Lisbon if the village approves a natural gas lease with Chesapeake Energy. The compressor station pumps the natural gas into transmission lines.

File Photo

Village of Lisbon wants top dollar

By TOM GIAMBRONI Shale Play LISBON, Ohio — After being told the going rate for shale gas leases had dropped significantly, Village Council learned they were still in line to get top dollar.

Village Solicitor Virginia Barborak advised council members the law firm they retained to assist her in negotiations with Chesapeake Energy advised her the company was willing to pay the village $5,800 an acre, plus 20 percent royalties.

Barborak suggested at the May 29 council meeting they may want to halt negotiations for now because lease offers had declined

significantly. While other communities have been signing leases over the past 18 months, Lisbon moved slowly, and during that period prices rose to $5,800 an acre, only to drop to below $2,000 an acre currently.

She said the newspaper story about the May meeting prompted their attorney to contact her to explain Chesapeake was willing to pay $5,800 per acre and 20 percent royalties, which is the highest the company has reportedly paid.

The village has 80 acres available to lease.

Barborak said it is her understanding that while individual property owners may be offered

$2,000 or less per acre now, Chesapeake is willing to pay the higher amount to governmental bodies.

“I just wanted to clarify that so you didn’t think I lied to you last week,” she told council. Barborak said the next step is to put the lease in writing for council to approve and sign.

Published reports on May 30 indicated that Chesapeake had pulled its offer to pay the village of Carrollton, Ohio, $5,800 an acre and 20 percent gross royalties. According to the report, another drilling company was offering Carrollton $3,500 an acre.

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WELLSVILLE, Ohio — Cimbar Performance Minerals announced the completion of a seven-month, $6.5 million renovation of its Wellsville facility, which will greatly expand production capacity as well as opportunities for local employment.

Company president Albert Wilson said the expansion at the plant, which produces customized mineral products used in natural gas drilling operations, is a result of the burgeoning shale energy industry in the area.

Though the footprint of the Clark Avenue facility remains as before, a revamped milling circuit and other upgrades will allow the plant to more than double its annual output, from 250,000 tons to 650,000. By contrast, Wilson said that when Cimbar acquired the facility last year, its annual output was only 3,600 tons per year.

Wilson also anticipates the need for a greatly expanded workforce to realize these production goals and foresees the hiring of an additional 27 employees to join the current ranks of 24 workers.

“As the market grows, we will add personnel to keep up with the demand,” he said.

According to Wilson, the expansion at the facility is part of a developing local infrastructure that will cater to the natural gas industry as it grows here, as it has grown up around existing operations. Speaking from the company’s headquarters in Cartersville, Ga., he said, “There’s no reason a lot of that production shouldn’t be up there.”

The bulk of the expansion will be utilized for the production of barite, which is used not in the hydraulic fracturing process itself, but the initial drilling of the fracking well. In addition, the plant also produces talc and calcium carbonate, which are used in paint, coatings, plastics, adhesives and the pharmaceutical industry.

With prospects for continued growth in the local shale energy industry looking very bright, Wilson expressed optimism about the company’s future in Wellsville.

“The investment is ongoing on our part,” he said. “We’re there for the long term.”

SHALE PLAY

Thursday, June 28, 2012

7

Proposed Shell tax break in Pa. HARRISBURG, Pa. (AP) — Gov. Tom Corbett, who has been criticized for cutting state spending for schools and social services, is advocating future tax credits worth as much as $66 million a year for a petrochemical refinery planned by Shell Oil Co. in western Pennsylvania to capitalize on booming natural-gas drilling in the Marcellus Shale region.

The Corbett administration is seeking legislative approval now to demonstrate its willingness to share the costs of the multibillion-dollar project, even though the credits would not become available until 2017. The credit would be worth nearly $1.7 billion over the 25 years they would remain in place.

“It’s a competitive climate out there,” said Steve Kratz, a spokesman for the Department of Community and Economic Development. “This is about reindustrializing the state.”

Corbett has not publicly discussed the proposed tax break.

A top aide to Senate President Pro Tempore Joe Scarnati said lawmakers will demand assurances that the plant will be built in Pennsylvania and that promises of 10,000 to 20,000 related jobs will materialize.

“The Corbett administration needs to sell this and, if they can make a compelling case that the amount of jobs proposed is accurate, I think some people (in the Senate) are going to be sympathetic to the credit,” said Drew Crompton, who is chief of staff for Scarnati, R-Jefferson.

Shell already stands to receive 15 years of tax cuts and exemptions under a bill Corbett signed earlier this year to designate the cracker-plant site as an expanded

Pennsylvania lawmakers soon will begin discussions on proposed tax breaks for the petrochemical industry worth $1.7 billion over 25 years.

AP Photo

Keystone Opportunity Zone.

Kratz said the amount of tax credits available to Shell will be calculated annually based on its Pennsylvania tax liability. It could sell all or the unused portion of the credit to suppliers of natural gas containing ethane or manufacturers of products that use ethane or ethane derivatives, he said.

The proposed credit is designed to “keep ethane in Pennsylvania to be used in manu-

facturing and other industries that use ethane and its byproducts,” Kratz said.

The environmentalist group PennFuture criticized the plan, contrasting it with recent cuts in education spending.

“The governor is choosing winners and losers and he has cast his lot with choosing to further help a multi-billion dollar corporation over the education of future generations of Pennsylvanians,”

George Jugovic Jr., the group’s president, said in a statement.

Pennsylvania competed with Ohio and West Virginia for the planned ethane-cracking plant and all three states included tax breaks in their proposals.

In March, Shell announced that it had picked a site near Monaca, about 35 miles northwest of Pittsburgh, and signed a landoption agreement so it can further evaluate the site.

The “cracker” facility would convert ethane from natural gas produced in the Marcellus Shale region into more profitable chemicals such as ethylene, which is used in making products that include plastics, tires and footwear. Shell has said it could spend billions of dollars on the project, which is expected to draw other companies to the area, although actual construction is still years away.

Applications filed for five more East Liverpool drops lawsuit AGREED permits to drill for shale gas

By TOM GIAMBRONI Shale Play LISBON, Ohio — Five more permits are being sought to drill for shale gas in Columbiana County, bringing the total to 38 over the past two years.

According to information from the county engineer’s office, the following permit applications were filed with the Ohio Department of Natural Resources over the past several weeks: ∫ Unity Township: Dalton unit, which is accessible from New Waterford Road and state Route 14. The applicant is SWELPI LP (formerly Shell Western E&P Inc.). ∫ Hanover Township: Hays Trust unit, which is accessible from Speidel and Zeigler roads. The applicant is Chesapeake Exploration. ∫ Center Township: Andrulis unit, which is accessible from LisbonDungannon Road. The applicant is Chesapeake Exploration. ∫ Knox Township: Kibler unit, which is accessible from Knox School Road. The applicant is Chesapeake Exploration. ∫ Salem Township: Riffle unit, which is accessible from Longs Crossing Road.

Chesapeake Exploration is the applicant.

All of the permits sought to date have been approved by ODNR, with the approval period averaging about a month.

The following is the list of drilling permits by township: Butler, 4; Center, 2; Elkrun, 4; Fairfield, 2; Franklin, 2; Hanover, 7; Knox, 4; Madison, 2; Middleton, 4; Salem, 1; Unity, 2; Washington, 2; West, 2.

The following is a list of unpermitted sites under development based on road-use maintenance agreements filed with the engineer’s office. Permits have yet to be sought for these sites: ∫ Elkrun Township: Johnston unit, accessible from Riffle and Pine Hollow roads. ∫ Salem Township: Gologram unit, accessible from Grafton Road; and Roy D unit, accessible from Depot and Winona roads. ∫ Center Township: Mrugala unit, accessible from Depot and Teegarden roads. ∫ Middleton Township: Hays unit, accessible from Vale Road. ∫ Madison Township: Amato unit, accessible from McCormick Run Road.

By TOM GIAMBRONI Shale Play LISBON, Ohio — East Liverpool’s lawsuit against the Columbiana County commissioners over shale gas lease money has officially been dismissed.

Both sides agreed to dismiss the lawsuit in a joint entry filed earlier this month in Columbiana County Common Pleas Court, which comes on the heels of a court order committing commissioners to depositing $1.5 million with the court to help resolve the lawsuit between East Liverpool and the Buckeye Water District.

The BWD was successfully sued for breach of contract by East Liverpool after the BWD quit purchasing water from the city.

This resulted in a $4.8 million judgment against the BWD, which commissioners were also on the

hook for as a co-defendant because the county once operated the water district that later became the BWD. When the BWD balked at paying East Liverpool, saying that to do so could cripple its operations, the city filed a lawsuit against commissioners seeking any money they received for leasing county property for oil and gas development, with the funds to be applied toward the judgment.

To help resolve the lawsuit and get East Liverpool to drop its lawsuit, commissioners agreed to make $1.5 million in future lease money available for satisfying the judgment against the BWD, which would repay the county.

This was followed by the court entry officially depositing the money with the court while East Liverpool and the BWD continue to negotiate.

East Liverpool and Columbia County commissioners agreed to dismiss the lawsuit in a joint entry filed earlier this month in Columbiana County Common Pleas Court, which comes on the heels of a court order committing commissioners to depositing $1.5 million with the court to help resolve the lawsuit between East Liverpool and the Buckeye Water District.

SHALE PLAY

8

Thursday, June 28, 2012

GAS INDUSTRY: Methane emissions half that of EPA estimates

By CASEY JUNKINS Staff Writer TRIADELPHIA, W.Va. — Gas industry leaders believe the amount of methane they release is about half what the federal government claims, but Ben Stout said that still may be too much.

“Even if it is half as bad, it’s still pretty bad,” said Stout, a Wheeling Jesuit University biology professor. “The main thing is that they need to have more monitoring to see how bad it really is.”

A study released earlier in June by the American Petroleum Institute disputes previous findings by the U.S. Environmental Protection Agency regarding the release of methane and other air pollutants from drilling operations.

API’s director of Regulatory and Scientific Affairs, Howard Feldman, said methane emissions were half what previously had been estimated by the EPA. He called the new data the most robust the nation now has on the subject.

“Our new report provides the best, most comprehensive estimate of methane emissions from U.S. natural gas production. It’s based on data from 10 times as many wells as support the estimate EPA has been using,” he said.

“This emissions information is critically important because it allows oil and gas companies, citizens and regulators to gauge the industry’s impact on the environment and allows

‘

“Even if it is half as bad, it’s still pretty bad.”

Ben Stout

companies to measure continued efforts to reduce their environmental footprint.”

The API study accumulated data from 91,000 wells operated by 20 companies over a large geographic area and notes the EPA only studied 8,800 wells in a smaller area.

“The fact that these emissions are much less than earlier, more limited estimates and the fact that operators are already working to reduce emissions from natural gas production is good news for the future of U.S. natural gas development and the game changing benefits of job creation and economic growth that will come with it,” Feldman added.

A recent statement from EPA Administrator Lisa Jackson stated, “Methane, when released directly to the atmosphere, is a potent greenhouse gas — more than 20 times more potent than carbon dioxide.”

Jackson said the first phase of the stricter standards for air emissions will last until January 2015.

From now until then, owners and operators must either flare their emissions or use emissions reduction technology called “green completions,” which she said are already widely used at gas wells.

Photo by Casey Junkins

Chesapeake Energy has the “potential to discharge” 93,800 tons of carbon dioxide and 86.63 tons of methane per year from its natural gas compressor station under construction near The Highlands, as well as the one under construction at Sand Hill.

In 2015, all new fractured wells will be required to use green completions.

According to natural gas producer Devon Energy Corp., green completions take place after a well has been fracked.

Information from Jackson states that such steps will reduce about 95 percent of the “harmful emissions from these wells that contribute to smog and lead to health impacts.”

However, methane is not the only factor when considering air emissions from gas drilling.

Chesapeake Energy, in a legal advertisement, is

seeking an air quality permit from the West Virginia Department of Environmental Protection for the “potential to discharge” the following amounts of these materials on an annual basis from the operations at the Sand Hill compressor station in Ohio County: methane — 86.63 tons; carbon dioxide — 93,800 tons; nitrogen oxides — 82.96 tons; carbon monoxide — 16.87 tons; carbon dioxide equivalent — 95,667 tons; benzene — 0.33 tons; and formaldehyde — 3.22 tons.

There will also be vari-

ous amounts of volatile organic compounds, particulate matter, sulfur dioxide, acetaldehyde, acrolein, ethylbenzene, methanol, nhexane, toluene, xylenes and nitrous oxide. Lower amounts of these pollutants are released at many of the gas production sites throughout the Upper Ohio Valley.

According to the Centers for Disease Control and Prevention, long-term exposure to high levels of benzene can cause leukemia. According to the U.S. Environmental Protection Agency, even at low concentrations, carbon

monoxide can cause fatigue in healthy people and chest pain in people with heart disease.

Stout — an outspoken critic of Chesapeake’s plan to place a gas well 1,300 feet from Wheeling Park High School, largely due to the potential air pollution — said residents and researchers need to see how the operation works.

“Maybe it will be good if the (West Virginia Department of Environmental Protection) approves the well. Maybe then we will get to see how the community responds,” he said.

W.Va. couple sues gas drillers over land lease MORGANTOWN, W.Va. (AP) — A Brooke County couple who claim they were duped into leasing their land to a gas company for $50 per acre in 2007 wants a judge to declare that the lease expired and punish the operators they say took advantage of them.

Ramon and Lois Bowen sued Oklahoma-based Chesapeake Appalachia, Pennsylvania-based Range Resources and Texasbased Statoil USA Onshore Properties last month in Brooke County Circuit Court.

None of the companies has yet filed a response to the allegations, but Chesapeake had the case transferred to U.S. District Court in Wheeling.

The Bowens said that five years before the profit potential

of the Marcellus and Utica shale gas reserves was common knowledge, a land man for Range talked them into leasing 53 acres for what they now know is far less than market value.

They signed a deal for $50 per acre, with rental payments of $7 per year and a 14 percent interest in royalties, amounts they say are “so low as to shock the conscience.”

Julie Archer of the West Virginia Surface Owners Rights Organization said those figures are outrageous.

Some Northern Panhandle residents have gotten as much as $5,000 an acre, she said, and gas companies are required by state law to pay at least 12.5 percent in royalties. Some people have negotiated percentages in

the 20s.

“They really got taken advantage of,” Archer said of the Bowens.

The Bowens’ complaint said the lease also contains other terms that are “lopsided and oppressive,” improperly favoring the operators.

They said they would never have made such a deal, “had they received truthful and accurate information” about the extent of surface disruption that would be required and about the “dramatically greater” value of oil and gas drilling rights.

In 2010, Range signed the lease with the Bowens over to Chesapeake and Statoil.

Chesapeake, which controlled 73 percent of the lease, then tried in January to extend the lease

another five years.

The Bowens say they didn’t cash the $2,655 bonus check that Chesapeake offered. Nor did they negotiate that amount.

Their attorney, Dan Guida, contends the lease expired Jan. 29, and Chesapeake cannot unilaterally extend it. Guida said the language regarding renewal of the lease is ambiguous and suggests the company is obligated to offer a deal at current market value, not merely renew the identical terms.

Any renewal, the lawsuit says, “requires a meeting of the minds ... but no such meeting of the minds existed or exists.”

Guida said he has three similar cases with landowners pending in Marshall County Circuit Court. Those cases are likely to

remain in state court, however, because each involves a land agent who was a West Virginia resident. In the Bowen case, the land man was from Pennsylvania.

A spokeswoman for Chesapeake didn’t immediately comment on either the lawsuit or whether the company has plans to drill on the Bowens’ land.

The lawsuit accuses the companies of fraud, unjust enrichment, trespass and civil conspiracy.

It demands unspecified damages, including a punitive award to deter future bad-faith conduct, and it asks Judge John Preston Bailey to declare the lease null and void.

No hearings have been scheduled.

Thursday, June 28, 2012

SHALE PLAY

9

WELL PRODUCTION REPORTED Companies show varied amounts of gas and oil

By CASEY JUNKINS Shale Play WHEELING, W.Va. — A single Chesapeake Energy well in Wetzel County produced 1.05 billion cubic feet of natural gas and 349 barrels of oil in 2011, according to the West Virginia Department of Environmental Protection.

By comparison, a Chesapeake well in Marshall County yielded a comparatively low 310 million cubic feet of gas and 1,137 barrels of oil last year, showing that production levels in the Northern Panhandle’s Marcellus Shale can vary quite a bit.

“Given that the wells cost $6 million to $7 million, the well revenues would have covered a significant portion of the capital cost. Also the mineral owner should be happy with the royalty check,” said Tim Carr, Marshall Miller professor of energy at West Virginia University.

A survey by the Sunday NewsRegister of 24 random operating wells in Marshall, Wetzel and Tyler counties shows various amounts of oil and gas being produced. The numbers show production from 2011 only, which means there are not yet any figures for Ohio, Brooke or Hancock counties because the pipeline network needed to take gas to market in those counties is still under construction.

Information provided by Chesapeake shows that drilling in the wet gas areas found in the Northern Panhandle — loaded with ethane, propane, butane and pentane — has proven up to three times more profitable than drilling in Pennsylvania’s dry gas regions.

For a typical dry gas well, the company earns about $13,000 in revenue per day. However, the company earns up to $38,800 in revenue each day for wet wells, company statistics show.

“A well that makes more liquids will probably (have) lower gas (pro-

duction) rates, just because the liquids get in the way of the gas. Given that oil is $90 per barrel, one should have such a problem,” Carr added.

Natural gas futures for July delivery are trading at $2.35 per mcf, up slightly from $2 per mcf in April. One mcf is equivalent to 1,000 cubic feet of natural gas.

In Wetzel County, the Chesapeake well yielding 1.05 billion cubic feet of gas and 349 barrels of oil last year is located on surface property in the name of Whiteman. Another Chesapeake well on surface land in the name of Hohman produced only 314 million cubic feet of gas in 2011, but rendered 7,232 barrels of oil, according to the DEP. Also in Wetzel County, a Chesapeake operation in the name of Rine produced 805 million cubic feet of gas last year with 775 barrels of oil.

Another Chesapeake well in the name of Messenger yielded 656 million cubic feet of gas and 2,365 barrels of oil in 2011, DEP statistics show.

The Saber well in Wetzel County, also operated by Chesapeake, produced 614 million cubic feet of natural gas and 12,109 barrels of oil last year.

Finally, a Chesapeake well drilled on land the company owns rendered 911 million cubic feet of gas and 3,710 barrels of oil in 2011.

Louisiana-based Stone Energy Corp., on land in the name of Nice, saw one of its Wetzel County wells produce only 54 million cubic feet of gas in 2011. However, the well also yielded 7,160 barrels of oil last year.

Another Stone Energy project produced 638 million cubic feet of gas and 1,670 barrels of oil on land owned

by Wheeling Jesuit University.

Finally in Wetzel County,

‘

to improve the safety of operations. Nevertheless, for a well on land in the name of Bardall, Chevron reported 412 million cubic feet of gas and 9,542 barrels of oil for 2011.

Another well in the name of Taylor yielded Chevron 496 million cubic feet of gas and 7,370 barrels of oil.

A well Chevron shut down in September in the name of Carmichael produced 345 million Tim Carr, Marshall Miller Professor cubic feet of gas and 126 barrels of Energy at West Virginia University of oil last year.

A well on surface land owned by the Starcovic family yielded Pittsburgh-based EQT Corp. saw one 818 million cubic feet of gas and 494 of its wells produce 768 million cubic barrels of oil, while one in the the feet of natural gas and 14 barrels of oil name of Curry rendered 439 million on land in the name of Tyrell last year. cubic feet of gas and 5,275 barrels of In Tyler County, Houston, Texas- oil for Chevron. based Magnum Hunter Resources saw For its Marshall County operations, a well produce 765 million cubic feet Chesapeake produced 746 million of gas and 4,156 barrels of oil on cubic feet of gas and 6,717 barrels of property in the name of Weese. oil at a well in the name of Law. According to the DEP numbers, On land in the name of Stern, Marshall County features the widest Chesapeake saw a well produce 331.4 range of producing wells. Houston, million cubic feet of gas and 2,813 Texas-based Gastar Exploration — barrels of oil, while a well in the name which has signed deals to develop of Mason Dixon Farms produced 310 wells on property owned by PPG million cubic feet of gas and 1,137 Industries and Bayer Corp. — pro- barrels of oil last year. duced 232 million cubic feet of gas A Chesapeake well in the name of and no oil from a well in the name of Harlan yielded 668 million cubic feet Wengerd. of gas and 745 barrels of oil last year, St. Marys, W.Va.-based Trans with another well in the name of Energy struck a degree of success in McDowell producing 511 million 2011 with wells in the name of Keaton cubic feet of gas and 7,184 barrels of and Groves, respectively. For the well oil. on the Keaton land, Trans Energy renAnother Chesapeake well in the dered 1.03 billion cubic feet of gas name of Waryck rendered 727 million and 1,620 barrels of oil in 2011. cubic feet of gas and 5,274 barrels of The well on the Groves land pro- oil in 2011. duced 827 million cubic feet of gas Chesapeake spokeswoman Jacque and 1,117 barrels of oil.

Bland said the company had no comCalifornia-based oil giant Chevron ment on these West Virginia producassumed control of AB Resources’ tion levels, while officials with Marshall County assets last year, even- Chevron and Stone Energy could not tually shutting many of the wells down be reached for comment.

“Given that the wells cost $6 million to $7 million, the well revenues would have covered a significant portion of the capital cost. Also the mineral owner should be happy with the royalty check.”

Photo by Casey Junkins

Natural gas industry equipment sits at the Wheeling Industrial Park in the Peninsula portion of the city. Chesapeake Energy and other drillers are working in the Wheeling area.

SHALE PLAY

10

Thursday, June 28, 2012

CHK touting natural gas for transportation

By CASEY JUNKINS Staff Writer WHEELING, W.Va. — Noting their company spends “$500,000 per day on diesel” fuel, Chesapeake Energy officials are working to make cheaper natural gas a more viable alternative transportation fuel in the coming years.

This will not just include passenger vehicles, however, as Chesapeake believes more natural gas can be used to power airplanes, trains, recreational boats and construction equipment.

As part of Chesapeake’s latest statement to investors, the company that has been plagued by investor concerns over Chief Executive Officer Aubrey McClendon’s personal dealings by taking a 2.5 percent stake in local drilling operations continues looking for ways to increase demand for its gas — and reduce its $9.5 billion debt.

Though the price of gasoline has dropped slightly over the past few weeks, Chesapeake officials note that “new natural gas engines currently under development and expected to be released soon” are one of the major factors for the increased use of compressed natural gas for transportation.

It also notes that environmental regulations will help promote the gas as a cleanerburning alternative to gasoline.

Chesapeake, the Upper Ohio Valley’s largest active gas driller, and General Electric are also partnering to provide easier access to what they say is a more affordable fuel — compressed natural gas. Also, per an agreement with Chesapeake, GE will provide more than 250 modular “CNG in a Box” stations to establish CNG pumps at existing gasoline stations or other locations.

Chesapeake and GE said Peake Fuel Solutions will bring the technology to market. The technology, according to the companies, allows them to take the natural gas from a pipeline and compress it on-site at an industrial location or refilling station. A CNG vehicle, such as a taxi, bus or small truck, can then refill its tank using a traditional fuel dispenser, much like those used for diesel or gasoline refueling.

Chesapeake Energy, currently building an office complex at Fox Commerce Park near St. Clairsville, states that the “price of oil versus price of natural gas is simply too huge to ignore” regarding the possibility of powering more vehicles and construction equipment on natural gas.

Photo by Casey Junkins

The companies note that buses and other fleet vehicles are the largest consumers of CNG, especially in certain California cities. Some school buses in Los Angeles are now using compressed natural gas in place of gasoline, while some of California’s garbage truck fleets are now using the natural gas. Also, Atlanta is now running some of its public buses on natural gas.

The “price of oil versus price of natural gas is simply too huge to ignore,” Chesapeake notes, referring to oil prices in

the range of $85-$90 per barrel compared to units of natural gas in the $2-$2.50 range.

According to Chesapeake, GM, Chrysler, Honda and Ford are in the process of developing more natural gas vehicles. For maritime shipping, ports in New York City, New Orleans, Seattle and Miami are those featuring fleets most likely to adopt more natural gas-powered vehicles.

Chesapeake also notes that recreational watercraft are also an area of potential

growth in the use of natural gas.

Opportunities also lie with using natural gas to power airplanes and trains, the company believes.

Construction companies could also use the fuel for mining, pumping and other activities. With this in mind, the construction project for Chesapeake’s new office complex at Fox Commerce Park near St. Clairsville is ongoing.

Someday, the company may be able to power these construction vehicles with its own natural gas.

Drilling fluids company opens $2 million facility

By SCOTT McCLOSKEY Shale Play BENWOOD, W.Va. — The North Benwood Industrial Park offers a great central location for a new $2 million drilling fluids facility, the company’s president of U.S. operations said.

Representatives with AES Drilling Fluids LLC, based in Houston, Texas, met with city and state officials for a ribboncutting ceremony this month at the new facility. Joining the ceremony were state Senate President Jeff Kessler and Delegate Mike Ferro, both DMarshall.

Jim Sherman, president of U.S. operations for AES Drilling Fluids, said the industrial park is a great fit for the new drilling fluids plant.

“We’re glad to be here. This is a good facility; it fits what we needed,” said Sherman. “It’s a good location for the potential in the Utica Shale, where we’re trying to get some work from some of the local customers. We needed a nice size warehouse for

some expansion, and this is just centrally located for us. We’re lucky to be here, and we’re lucky to find it.”

Sherman said AES needed a site that is “used to a little bit of industry.”

“It’s more about storage and blending than it is anything else with us. ... We use a lot of synthetic oils,” he added.

The new facility makes a synthetic oil-based drilling fluid, or “drilling mud,” which is used in the natural gas industry’s drilling process. The plant is now fully operational and employs about 17 full-time workers, according to Russell Marks, operations manager for AES. Marks said the facility rents drilling fluid to customers like Chesapeake Energy, who use it during the drilling and fracking process.

The fluid is eventually transported back to the plant, where it is “reconditioned” and used again. It aides workers in removing the cuttings from wells, according to Marks.

Photo by Scott McCloskey

Benwood Police Chief Frank Longwell, left, and Jim Sherman, president of U.S. operations for AES Drilling Fluids, talk prior to a ribbon-cutting ceremony Thursday for the new AES facility located in the North Benwood Industrial Park.

The AES facility is built on a 180- by 120-foot concrete pad and holds about 20 large tanks that provide nearly 9,000 barrels worth of storage. In addition, the

facility has a couple of 3,000barrel tanks, including several tanks that store calcium chloride water.

Benwood Police Chief Frank

Longwell, who also co-chairs the community’s economic development committee along with Mayor Ed Kuca, said he is excited about AES locating in the city’s industrial park and hopes it will continue to create spinoff economic growth for the community.

“They’ve done a tremendous job on locating here. ... They made the property look very presentable,” said Longwell.

“It will be more revenue for the city, more jobs for the Ohio Valley and, hopefully, this will have more spinoff.

“Benwood is certainly taking full advantage of the drilling, natural gas and oil boom, and we’re just glad we will be able to capitalize on this particular business. ... It fits like a glove for the city,” said Longwell.

“We will continue to work with other development opportunities to move Benwood forward.”

Kuca said the community is fortunate to have AES locate there.

SHALE PLAY

Thursday, June 28, 2012

11

Board explores legal avenues to stop well

By TYLER REYNARD Staff Writer WHEELING, W.Va. — The Ohio County Board of Education is exploring its legal options in the event permits to conduct natural gas drilling near Wheeling Park High School are approved, which could occur soon now that the public comment period has closed.

School officials in a letter appealed directly to West Virginia Department of Environmental Secretary Randy Huffman in an effort to prevent Chesapeake Energy from drilling near the school. Also filing objections during the 30-day period were the Ohio County Commission and several members of the public. A petition containing 310 signatures also was submitted to the DEP. The proposed site is about 1,300 feet from the high school, more than twice the legal limit for wells to be located from an “occupied dwelling,” but objections cite concerns over potential health hazards and consequences of inexperienced drivers sharing the road with drilling trucks, among others.

The land on which the well would be drilled is owned by the Parks System Trust Fund of Wheeling, and the lease is signed by members of the Wheeling Park Commission.

Board of education attorney

Patriot Field at Wheeling Park High School in Ohio County, W.Va., is less than one-quarter mile from where Chesapeake Energy is planning to drill for natural gas.

Photo by Tyler Reynard

Patrick Casey said park commission attorney James Gardill has not yet fulfilled his request for information related to the proposed drill site. The two have been unable to meet in person, but Casey said he believes Gardill is open to “finding common ground.”

“So basically the Park Commission and their counsel is

just sitting there — or at least not helping us,” Board of Education President Erik Schramm said.

“They haven’t expressed an interest in caring for our children or those folks at Wheeling Park High School, I take it.”

Fellow board attorney Kevin Coleman said there is no time restriction on when the DEP must rule on the permit applications.

“Chesapeake has made it clear publicly, and to us, that they intend to move forward the minute they get the permit,” Casey said.

Board members discussed legal options with Casey and Coleman behind closed doors during an executive session, but Casey said no legal action will be taken until the DEP approves

Chesapeake’s permits, if at all.

“The board is resolved to fulfill its mission and protect the students, and they’re prepared to move forward in whatever avenue is necessary,” Casey said.

Coleman said he forwarded the high school’s evacuation plan to the DEP. He also filed a Freedom of Information Act request with DEP, seeking a copy of Chesapeake’s permit application to drill in Oglebay Park, which called for the closing of Oglebay Stables. Park commissioners objected to that proposed site, and it subsequently never developed at that location.

Coleman is also seeking the DEP’s records of investigations conducted into the approximately 12 citations he claimed Chesapeake has received since October.

Chesapeake selling pipelines for $4 billion

By CASEY JUNKINS Staff Writer WHEELING, W.Va. — To help reduce a projected deficit ranging anywhere from $9.5 billion to $22 billion, Chesapeake Energy is selling its stake in natural gas pipeline systems for $4 billion.

Also by selling these assets to Global Infrastructure Partners, Chesapeake can reduce previously projected capital spending by about $3 billion during the next three years as the Oklahoma Citybased company continues looking for ways to increase its profitability. The driller also needs to pay back the $4 billion loan it took from Goldman Sachs last month.

“We greatly appreciate the hard work and dedication of our midstream employees as they have contributed to building one of the largest and highest quality midstream businesses in the industry,” said Chesapeake Chief Executive Officer Aubrey McClendon. “We look forward to the continued success of our midstream businesses under the leadership of its existing midstream management team and GIP’s new ownership.”

In the natural gas industry, companies such as Chesapeake Energy, XTO Energy, Chevron and Range Resources are known as producers because they own the gas that is pumped from the ground. “Midstream” assets

SOLD! Chesapeake Energy is selling its stock in the officially independent midstream company known as Chesapeake Midstream Partners to GIP. Chesapeake Midstream Partners is a publicly traded company on the New York Stock Exchange that is technically separate from Chesapeake Energy. include pipelines and processing plants — such as those operated by Dominion Resources, Williams Partners (Caiman Energy), MarkWest Energy and others — which are needed to take the gas to market.

According to the company’s website, Global Infrastructure Partners is “an independent infrastructure fund manager that combines deep industry expertise with industrial best practice operational management. The fund invests in high quality infrastructure assets in the energy, transport and water/waste sectors where we possess deep experience and relationships.” Among the company’s

Photo Provided

As natural gas companies continue building pipelines to pump Utica and Marcellus shale gas out of the Ohio Valley, Chesapeake Energy is selling its piping facilities for $4 billion. listed partners are former employ- Partners to GIP. Chesapeake ees of General Electric and Credit Midstream Partners is a publicly Suisse. traded company on the New York “We have enjoyed a mutually Stock Exchange that is technicalbeneficial partnership with ly separate from Chesapeake Chesapeake over the past three Energy. years, and we look forward to J. Mike Stice is chief executive continuing to provide Chesapeake officer of Chesapeake Midstream with high quality midstream serv- Partners. ices while expanding these offer“We have built a very talented ings to other producers requiring and profitable organization, and I similar services,” said Adebayo am very excited about the future Ogunlesi, GIP’s managing part- of our independent midstream ner. businesses,” Stice said. “We In the specifics of this transac- believe our unique combination of tion, Chesapeake Energy is sell- contractual, organic and droping its stock in the officially inde- down growth is unmatched in the pendent midstream company midstream industry.” known as Chesapeake Midstream Stice also serves as president of

Chesapeake Energy’s fully owned subsidiary, Chesapeake Midstream Development, which also operates some pipelines and processing facilities. Chesapeake Energy has signed a letter of agreement to sell these assets to Chesapeake Midstream Partners.

The transactions together would equal a $4 billion deal.

“We have been working for the past few months to monetize our substantial and valuable midstream assets and are pleased to announce the sale of our investments in (Chesapeake Midstream Partners ) and a plan to sell our remaining midstream assets at attractive prices,” McClendon added. “Importantly, the sale of (Chesapeake Midstream Development) will also reduce previously planned capital expenditures by approximately $3 billion over the next three years.”

Much of Chesapeake’s financial difficulties result from McClendon’s personal business dealings with local Chesapeake leaseholdings, which saw him take a 2.5 percent personal interest in Brooke, Ohio, Marshall and Wetzel County Chesapeake operations.

This left some investors concerned because Chesapeake is a publicly traded company, while McClendon’s firms — Larchmont Resources and Jamestown Resources — are his own businesses.

SHALE PLAY

12 — Thursday, June 28, 2012

This farm field is part of the 117 acres in Hanover Township where a $400 million shale gas collection and processing plant is to be built. This view is from the Intersection of Hagan and Tunnel Hill road, looking northwest.

THE OLD DELP FARM

Photo by Tom Giambroni

Site chosen for shale gas collection and processing plant

By TOM GIAMBRONI Shale Play HANOVERTON, Ohio — A 117-acre site located about a mile south of the village has apparently been chosen for a proposed $400 million shale gas collection and processing plant.

The property is located at the intersection of Ohio 644 and Tunnel Hill and Hagan roads and was sold by Bill O. Burns, trustee, according to real estate transfer records filed at the Columbiana County Auditor’s Office.

Locals refer to it as the old Delp farm.

The address of the property is listed as 11687 Route 644, which was sold for $1.8 million to Utica East Ohio Midstream LLC, a subsidiary created for the project by M3 Midstream, which is one of the partners in the joint venture along with Chesapeake Midstream and EV Energy Partners.

The plant will serve as a collection and compression site for natural gas extracted by shale drillers in the region, with an initial capacity of 600 million cubic feet per day. It includes a cryogenic processing plant that extracts natural gas liquids from the shale gas, such as propane, butane and ethane.

The NGLs will be piped from the plant across Carroll County to a $500 million

shale gas storage and transfer hub being constructed in Harrison County by MarkWest Energy Partners as part of the project.

The dry natural gas from the Hanoverton plant will be transferred into local natural gas pipelines.

None of the companies involved in the Hanoverton project has commented, but an employee in the auditor’s office said the cover letter attached to the real estate transaction they received stated the land was to be used for a gas processing plant.

The employee said he made a notation on the transaction to check on the property in a year to see if the plant had been constructed, which would increase the taxable value of the land.

County Commissioner Mike Halleck said it is his understanding the Burns property is where the plant is to be built, “and we’re very excited.”

M3, which is also known as Momentum, is to run the plant, which will be built over five years, with the first phase expected to become operational by May 2013.

Chesapeake Energy and its affiliates are the majority partner in the venture, with a 59 percent interest, followed by M3 with a 33 percent interest and EV Energy at 8 percent.

Thursday, June 28, 2012 — 13

SHALE PLAY

14

Thursday, June 28, 2012

PSC cracking down on hydrant draining

By CASEY JUNKINS Staff Writer MOUNDSVILLE, W.Va. — The West Virginia Public Service Commission is warning natural gas companies to stop draining water from fire hydrants for use in natural gas drilling operations.

“It’s just helter skelter out here,” said George Lagos, general manager and chief operator for Marshall County Public Service District No. 4, which serves a large area of the county between Moundsville and Cameron. “They just stop wherever to get water.”

Commission officials note they have received complaints from northern West Virginia about “truckers” — presumably working as subcontractors for drilling companies — allegedly taking water from fire hydrants without approval from local water utilities. Commission information states the truckers reportedly hauled the water for use at natural gas drilling and fracking sites.

No particular drilling company or subcontractor is mentioned, but companies operating in the area stretching from Hancock County in the north to Marion County in the south include Chesapeake Energy, Chevron,

Gastar Exploration, EQT Corp., Trans Energy, CNX Gas Corp., Magnum Hunter and Stone Energy Corp.

“These takings come at the expense of the local water utility and its customers. If enough of a revenue shortfall is created, the water utility customers will have to make up the expense through an increase in rates,” the commission states.

Lagos said he knows subcontracGeorge Lagos tors are taking water from hydrants in Marshall County.

“We have been trying to catch them,” he said. “They want the water so they can spray it on the roads.”

According to West Virginia Code, anyone who takes water without the knowledge of the owner and while attempting to evade payment can face misdemeanor charges.

Penalties can range from a $2,000 fine to a full year jail sentence.

“If anyone sees someone out doing this we ask them to call us to report it,” added Lagos, noting his office’s phone number is 304-843-1234.

To report someone taking water from a fire hydrant, one could also call the commission office in Charleston at 304-340-0300.

‘

“It’s just helter skelter out here. They just want to stop wherever to get water.”

Photo by Casey Junkins

The Public Service Commission of West Virginia is warning natural gas company subcontractors to stop taking fracking water from fire hydrants.

Chesapeake selling Ohio acreage, company trying to reduce debt

By CASEY JUNKINS Staff Writer CADIZ, Ohio — Oklahoma City-based Chesapeake Energy wants to shed the leases it holds on 337,481 acres in Ohio’s Utica Shale to help reduce the company’s $9.5 billion debt.

In the company’s most recent presentation to investors, Chesapeake officials state they believe the liquids-rich Utica Shale gas leaseholdings should be worth $13,000 to $17,000 per acre. Were Chesapeake to gain even $10,000 per acre from a buyer for this Ohio acreage, it would yield more than $3.37 billion.

Company information also shows completing this deal may allow Chesapeake to focus its operations in Ohio counties such as Jefferson, Harrison, Columbiana and Carroll because the acreage in these counties is not in the package for sale.

“The company has altered its plans to develop all of its highly prospective acreage and instead will focus its development on those counties where its land ownership is more concentrated than the land ownership in the counties being offered for sale,” Chesapeake states on the sale listing as a “rationale for selling.”

Chesapeake spokesman Pete Kenworthy declined further comment, noting the listing by acreage marketer Meagher

DEBT-REDUCING MEASURES ∫ Eliminating the use of company aircraft for personal travel ∫ Replacing annual cash bonuses with performancebased awards ∫ Establishing minimum stock ownership guidelines ∫ Retaining an independent compensation adviser Energy Advisors contains all relevant information on the potential sale. This information shows the company would like to complete the sale by Aug. 17.

Chesapeake notes most of the acreage for sale lies in the wet gas or oil window. These are areas that should yield ethane, propane, butane and pentane, in addition to the methane dry gas.

The leases for sale are in two contiguous bands of counties. In northeast Ohio, acreage in Huron, Ashland, Lorain, Wayne, Summit, Portage, Geauga, Ashtabula and Trumbull counties is listed. To the south, parts of Licking, Fairfield, Hocking,

Vinton, Meigs, Athens, Perry, Muskingum, Morgan and Washington counties are listed for sale.

As part of the ongoing effort to reduce the company’s debt, Chesapeake previously announced plans to sell more than 500,000 acres of leases in Colorado and Wyoming and reduce director compensation.

The company also needs to pay back the $4 billion loan it took from Goldman Sachs.

Chesapeake also will soon have four new board members

and a new chairman, a step officials hope will help give the driller lasting stability.

Many concerns investors have regarding Chesapeake stem from worries over Chairman and Chief Executive Office Aubrey McClendon’s personal business dealings with local Chesapeake leaseholdings. These dealings saw McClendon take a 2.5 percent personal interest in Brooke, Ohio, Marshall and Wetzel County Chesapeake operations.

This left some investors concerned because Chesapeake is a

publicly traded company, while McClendon’s firms — Larchmont Resources and Jamestown Resources — are his own businesses.

McClendon has since agreed to end this practice by June 30, 2014 — and to eventually relinquish his chairmanship of the company. According to the letter to shareholders, the company is taking other measures to reduce debt, including: ∫ eliminating the use of company aircraft for personal travel; ∫ replacing annual cash bonuses with performance-based awards; ∫ establishing minimum stock ownership guidelines; and ∫ retaining an independent compensation adviser.

The information shows that Chesapeake is classifying its West Virginia acreage in the same category as the Ohio acreage under the Utica Shale banner. It shows the company having significant holdings in Jefferson, Harrison, Columbiana and Carroll counties in Ohio, along with some holdings scattered throughout Belmont County.

For West Virginia, Ohio, Marshall, Wetzel and Brooke counties all have very large amounts of acreage leased to Chesapeake, while the company has some holdings in Hancock and Tyler counties.

Thursday, June 28, 2012

SHALE PLAY

15

Muskingum Watershed halts drilling water sales NEW PHILADELPHIA, Ohio (AP) — Officials overseeing reservoirs in Ohio’s largest contained watershed have decided to halt water sales to oil and gas drillers in response to environmental concerns as they await a water-availability study.

Environmentalists and other members of the public have raised concerns about the Muskingum Watershed Conservancy District selling water to drillers for use in hydraulic fracturing, which injects millions of gallons of chemical-laced water into the earth at high pressure to free gas. Environmental groups have said they fear that drawing the water from reservoirs could leave insufficient water supplies for the public and wildlife.

Conservancy district executive director John Hoopingarner said it’s in the public’s interest to stop the sales until the district receives an independent water-availability study and updates its water supply policy.

“We want to fully understand the concerns of interested groups and the public and ensure that each step in the process is transparent and open for public review,” Hoopingarner said.

The conservancy district said the moratorium on new sales will not affect a previously-approved sale of up to 11 million gallons from Clendening Reservoir in Harrison County to Oklahoma-based Gulfport Energy Co. The Clendening reservoir typically contains about 8.6 billion gallons of water.

The Ohio Environmental Council, the Southeast Ohio Alliance to Save Our Water and the Buckeye Forest Council praised the district’s decision stopping sales for now.

Melanie Houston, director of water policy and environmental health for the Ohio Environmental Council, said in a release that the public has raised valid concerns and there is “much scientific information and public opinion to be gathered.”

But officials in Cadiz, Ohio, in Harrison County, are disappointed with the district’s decision.

“Their inaction will cause an increase in truck traffic, random withdrawals of water from creeks and streams in the watershed and will slow down the pace of oil and gas development because of the difficulty in finding water,” Rich Milleson, economic development director for the Cadiz Community Improvement Corp., said.

The village hoped to get conservancy district approval to increase its purchase of water from Tappan Lake and resell the extra water to oil and gas companies.

The village buys lake water for its municipal water supply, but wants to use money from the sale of extra water to rebuild and expand its waste water treatment plant to meet Ohio Environmental Protection Agency standards.

Milleson says more research isn’t necessary.

“They have the science to know they can withdraw great amounts of water from those lakes without any impact,” Milleson said.

The conservancy district hopes to have results this year from a water-availability study of three of its reservoirs by the U.S. Geological Survey. The district approved the study of the Atwood, Clendening and Leesville reservoirs earlier this year.

The MWCD covers more than 8,000 square miles, or about 20 percent of Ohio, from just above Canton to Marietta and drains into the Muskingum River. Overall, the MWCD spans five counties and portions of 22 others and includes a system of 16 reservoirs.

The conservancy district, formed in 1933 to develop and implement a plan to reduce flooding and conserve water for beneficial public uses in the Muskingum River Watershed, has authority under Ohio law to sell water from its reservoirs.

AP Photo

In this photo, a cutaway of a Toyota Prius is housed at the National Alternative Fuels Training Consortium in Morgantown, W.Va. The cutaway is used for training first responders on how to work on the vehicle in an emergency.

UNDER THE HOOD WVU teaches about alternative-fuel cars MORGANTOWN, W.Va. (AP) — A plain, white building in a business park off Bakers Ridge Road houses a key component in America’s transportation future.

This is the home of WVU’s National Alternative Fuels Training Consortium — the nation’s epicenter for training and promotional programs for alternative fuel and advanced technology vehicles such as electric, natural gas and hydrogen.

The building itself is unremarkable — outside it’s a white box. Inside are an administrative area, a few classrooms — one small and one large — a lab and a five-bay shop.

What goes on inside is what sets it apart.

NAFTC’s goal is to promote and foster energy independence through four areas of emphasis: Curriculum development, training courses and workshops, education outreach; and program management.

It was founded in 1992 as WVU worked with the natural gas industry to develop its program, but has since expanded to include other alternativefuel transportation.

The NAFTC offers more than 25 courses and workshops, Assistant Director Judy Moore said. More than 30,000 technicians have taken 1,600 courses — people from the U.S. Air Force, the Department of Energy, NASA, Disney, city metro departments, public utilities and more.

More than 650,000 people have attended more than 1,500 workshops and awareness events.

What’s under the hood — and inside the trunk — of an electric car is far different from what’s inside a gasoline-powered one. Emergency responders take courses to learn how to rescue people from electric cars without harming themselves or the people they’re rescuing.

The training isn’t all done at NAFTC headquarters, Moore said.

The consortium has 50 sites across

‘

“I will never have to put gas in it in Morgantown.”

— Al Ebron

the country: National training centers at community colleges and universities, and associate training centers at secondary schools and tech-ed schools that focus on auto tech students.

NAFTC also has a grant from the U.S. Department of Energy to develop materials for its Clean Cities Coalition program.

Every even-numbered year since 2002, NAFTC has coordinated National Alternative Fuel Vehicle Day Odyssey. The 10-year anniversary 2012 Odyssey is set for Oct. 19.

Odyssey is aimed at the general public, Moore said, and offers rideand-drives, vehicle displays, workshops, demonstrations, trivia contests, lab and garage tours, and more.

The 2002 Odyssey drew 17,000 people to 51 sites in 31 states. It has grown over the years — 2010 drew 230,000 people to 131 sites, including schools and higher education facilities, across the U.S. and Canada.

“It’s a pretty significant event and we do it all from right here,” Moore said.

This year’s goal is to attract 250,000 people to 150 sites. The kickoff event is set for Indianapolis; they may also go to Washington, D.C. Although NAFTC operates under the WVU Research Corp., it isn’t devoted to research. Reflecting on Odyssey, Executive Director Al Ebron said, “Our primary focus is to truly educate the public about the vehicles.” In one shop sits the consortium’s 2011 Chevy Volt, received last August through a federal

American Recovery and Reinvestment Act program.

They use it for transportation and training.

The Volt is a plug-in hybrid electric vehicle. It travels about 35 miles on pure battery power, then switches to gasoline power — the engine acts as a generator to run the electric motor, giving a total range of about 375 miles.

Ebron liked it so much he bought one himself.

Asked about fuel usage, he said, “I will never have to put gas in it in Morgantown.”

Visible on the wall, just past the Volt, is a biodiesel vat to make biodiesel fuel. Biodiesel is a petroleum alternative made from fat or oil, and is generally blended with petroleum diesel. B-20, for instance, is 20 percent biodiesel and 80 percent petroleum diesel.

Another bay holds a cutaway Toyota Prius — a regular hybrid that uses battery power at low speeds — that shows the car’s innards.

Among its uses, first responders learn how to approach one safely.

They can scan barcodes on various components to learn about the car’s mechanisms.

Auto technicians learn how to diagnose problems on the Prius. There’s a “bug box” computer in the back. The teacher can flip a bug switch, and the trainees have to figure out what’s wrong.

On this spring day, several NAFTC staffers are gathered around the Prius, learning the ins and outs, so they can explain it to others at a Pittsburgh conference.

A working Prius sits outside — used, like the Volt, for transportation and training — along with two Chinese-made electric cars that are smaller, less comfortable, less powerful and with less driving range than their American and Japanese counterparts.

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Thursday, June 28, 2012

Corbett seeking shale tax credit HARRISBURG, Pa. (AP) — Gov. Tom Corbett’s administration began its public relations effort this month to build support for a 25year tax credit worth up to $1.7 billion that it wants to foster a petrochemical industry in Pennsylvania around the state’s supply of natural gas from the vast Marcellus Shale formation.

Three of Corbett’s cabinet secretaries held a forum at the Beaver County community college, near the Pittsburgh-area site of a multibillion-dollar petrochemical refinery planned by a subsidiary of Netherlands-based oil and gas giant Royal Dutch Shell PLC. The Republican governor’s administration has just begun sharing with the public the details of what lawmakers say would be the biggest package of taxpayer-paid incentives in Pennsylvania’s history for a project Corbett bills as the reindustrialization of the state.

Secretary of Revenue Dan Meuser said the “Pennsylvania Resource Manufacturing Tax Credit” would more than pay for itself through the creation of thousands of new jobs.

The goal of the incentive is to lure an entire industry, not just the Shell plant, Secretary of Labor and Industry Julia Hearthway said.

The recently revealed plan of Corbett’s would not affect the state’s finances right away — the $66 million-a-year tax credit would first take effect in 2017. But Corbett wants the state Legislature to approve the tax credit before the end of June when law-

Pennsylvania Gov. Tom Corbett smiles during a news conference after he signed an unemployment compensation bill into law, June 12 in Harrisburg, Pa. Corbett is beginning an effort to get a huge tax credit for the gas industry.

AP Photo

makers leave Harrisburg for the summer to show Shell that the state is serious about its offer of financial incentives for the refinery and a surrounding chemical manufacturing industry.

Shell’s so-called ethane cracker would be the first built in the northeastern United States, spurred by the rapid growth of

drilling in the Marcellus Shale formation, which is thought of as the nation’s largest-known natural gas reservoir.

However, many rank-and-file lawmakers have not been briefed on the matter and legislation is just being introduced.

“Without knowing the details, I really can’t speak to it, whether it makes economic sense,” Rep. Glen Grell, R-Cumberland, said. “I would need to know what is the amount of state tax credits that is going to be applied per job created.

Then we have to evaluate that versus what it could cost to incentivize or create jobs elsewhere.”

The Corbett administration’s financial incentive plans for Shell appear to revolve around the tax credit and a newly created tax-free zone for the site that the Legislature approved in February. Lawmakers briefed by administration officials said they were told that taxpayer-paid financial aid would be considered to help clean up the site

where the plant would be built, but administration spokesman Steve Kratz said that no such financial aid is available for private entities.

Administration officials have declined to estimate the value of the tax-free site to Shell.

Under the legislation, the tax credit would apply to any ethane cracker in Pennsylvania that converts natural gas liquids to ethylene, which is then used to produce chemicals that go into everything from plastics to tires to antifreeze.

The credit would be equal to a nickel per gallon of ethane purchased and used in manufacturing ethylene in Pennsylvania.

Shell’s industrial complex would likely attract many smaller, specialized chemical plants, according to the Washington, D.C.based American Chemistry Council, and the Corbett administration wants to encourage that by allowing Shell to sell or transfer the tax credit to companies that supply the ethane or use a derivative.

Shell has estimated that the core plant could employ several hundred people and create up to 10,000 construction jobs. The American Chemistry Council estimated last year that a manufacturing industry around the plant could employ another 2,400 people, plus another 8,200 people indirectly through the ongoing purchase of supplies and raw materials. Also, Corbett warned that he has heard that Ohio and West Virginia are still trying to lure away the Shell cracker with their competing offers of financial incentives. In the meantime, some of the natural gas liquids produced from the Marcellus Shale region are already under contract to be piped down to the Gulf Coast, where 26 of the nation’s 29 crackers are located.

Chesapeake to renegotiate 4,400 N.Y. gas leases ALBANY, N.Y. (AP) — A subsidiary of Chesapeake Energy Corp., the country’s second-largest natural gas producer, has agreed to let more than 4,400 New York landowners renegotiate old gas leases for more favorable financial and environmental terms, state Attorney General Eric Schneiderman said.

Chesapeake Appalachia also agreed to pay $250,000 to cover the state’s investigation costs under the agreement.

Chesapeake had tried to extend the leases in 2009, claiming the state’s de facto moratorium on shale gas development since it started an environmental review in 2008 constituted an uncontrollable event that allows for a lease extension if an “act of god” or unforeseen circumstance prevents drilling.

Schneiderman investigated after receiving complaints from landowners. The leases were signed long before the shale gas boom that began in Pennsylvania in 2007 boosted land prices from as low as $2$3 an acre to more than $1,500 an acre. Many landowners today are also writing extensive environmental protections into leases.

In the settlement, Chesapeake admits no wrongdoing.

“It is unfortunate that we have been in this situation in New York since 2008, where landowners and their mineral lessees have been unable to develop mineral rights in the Southern Tier despite a robust drilling program being undertaken in neighboring Pennsylvania,” Chesapeake spokesman Brian Grove said in a prepared statement.

The state has not permitted shale gas development using horizontal drilling and highvolume hydraulic fracturing since it began an environmental review in 2008. The review and new regulations are expected to be completed this year.

Shale gas drilling in the Marcellus Shale region, which underlies parts of New York, Pennsylvania, West Virginia and Ohio, has slowed this year with natural gas prices at the lowest level in a decade because of high production and reduced demand over the unusually mild winter.

Chesapeake and other energy companies have refocused much of their drilling efforts to areas of the country, such as Texas and Ohio, with higher-priced liquid petroleum products mixed with the gas.

AP Photo

Chesapeake Energy is planning to renogiate more than 4,000 leases in New York.

Thursday, June 28, 2012

SHALE PLAY

17

REPORT: Don’t worry too much about quakes and fracking

By SETH BORENSTEIN AP Science Writer WASHINGTON (AP) — The controversial practice of hydraulic fracturing to extract natural gas does not pose a high risk for triggering earthquakes large enough to feel, but other types of energy-related drilling can make the ground noticeably shake, a major government science report concludes.

Even those man-made tremors large enough to be an issue are very rare, says a special report by the National Research Council.

In more than 90 years of monitoring, human activity has been shown to trigger only 154 quakes, most of them moderate or small, and only 60 of them in the U.S. That’s compared to a global average of about 14,450 earthquakes of magnitude 4.0 or greater every year, said the report.

Most of those are caused by gas and oil drilling the conventional way, damming rivers, deep injections of wastewater and purposeful flooding. Only two worldwide instances of shaking — a magnitude 2.8 tremor in Oklahoma and a 2.3 magnitude shaking in England— can be attributed to hydraulic fracturing, a specific method of extracting gas by injection of fluids sometimes called “fracking,” the report said. Both were last year.

“There’s a whole bunch of wells that have been drilled, let’s say for wastewater and the number of events have been pretty small,” said report chairman Murray Hitzman, a professor of economic geology at the Colorado School of Mines. “Is it a huge problem? The report says basically no. Is it something we should look at and think about? Yes.” With increased drilling to satisfy the country’s thirst for energy, it is important to watch injection and other wells better and consider potential repercussions before starting, the report said. No one has been killed, nor has there been major damage, from man-made quakes in the United States, said the report by the council, which is part of the National Academy of Sciences, a private nonprofit institution that provides expert advice to the government.

“There is potential to produce significant seismic events that can be felt and cause damage and public concern,” the report said.

The research council report shows that most of the tremors that can be blamed on humans occurred in California, Texas, Colorado, Oklahoma, and Ohio. California and Oklahoma had the biggest man-made shakes as byproducts of conventional oil and gas drilling. Colorado has one of the most documented cases of

three 5.0 to 5.5 man-induced quakes because of an injection well. Northern California also has 300 to 400 tiny quakes a year since 2005 because of geothermal energy extraction.

Man-made drilling — usually injections of fluids deep and at high pressure — can trigger shaking because it changes the crucial balance of fluid into and out of the subsurface. That can then affect the pore pressure of the soil and that’s what helps keep faults from moving, Hitzman said.

The report makes sense as far as it goes, said U.S. Geological Survey seismologist William Ellsworth, but since the research council started its study, government geologists have noticed a strange increase in earthquakes that seem man-made. At a professional seismology conference in April, Ellsworth presented a USGS report on a six-fold increase in manmade quakes. He pointed to induced quakes of magnitude 4 or larger in the past year in Texas, Oklahoma, Arkansas, Colorado, New Mexico, and Ohio, but said much of this happened too late for the research council to include in its study.

Hitzman said it’s still too early to tell whether those recent quakes would have changed the report’s conclusions.

Another study — also too recent for the research council report — says a 4.7 magnitude quake in central Arkansas in 2011 was man-made and scientists are still looking at a 2011 quake in Oklahoma that measured 5.6 as a potential but not proven induced tremor, Ellsworth said.

The man-made quakes that Ellsworth has been seeing are almost all related to wastewater injection, he said. Ellsworth said he agreed with the research council that “hydraulic fracturing does not seem to pose much risk for earthquake activity.”

If the country starts capturing the global warming gas carbon dioxide from coal power plants and injecting it underground, there is a potential for a larger quakes given the amount of the heat-trapping gas that would have to be buried, the council’s report said. That’s an issue that needs more study, it said.

Congress and the Department of Energy requested the 240page report.

QUAKE TRIGGERS In more than 90 years of monitoring, human activity has been shown to trigger only 154 quakes, most of them moderate or small, and only 60 of them in the U.S. That’s compared to a global average of about 14,450 earthquakes of magnitude 4.0 or greater every year.

AP Photo

Hydraulic fracturing does not lead to more earthquakes, but underground wastewater injection does pose some risk, a new government report indicates.

18

SHALE PLAY

Thursday, June 28, 2012

Look for Shale Play boxes throughout Mahoning, Trumbull and Columbiana Counties and keep informed!

Shale Play is brought to you by

www.shaleplayneohio.com

SHALE PLAY

Thursday, June 28, 2012

19

Gas panel gets $50,000 grant for project unite

By LINDA HARRIS Shale Play STEUBENVILLE, Ohio — Jefferson County’s Oil and Gas Committee is getting nearly $50,000 in grant money to develop “Project Unite,” a webbased communications system that will allow government leaders, school officials, industry and private citizens to share information and concerns as the shale oil and gas drilling industry moves forward.

The funding, earmarked by the Local Government Innovation Fund, is subject to state Controlling Board approval, but at Wednesday’s meeting committee members began working on the kinds of information they’d like to see on the site.

“It should streamline (things),” Commissioner Dave Maple, the committee’s moderator, said. “It gives the people of the community a little more transparency with the industry, it will reduce a lot of the frustration associated with the (shale) industry.”

Dozens of community groups ranging from township trustees to city government, school leaders and business and industry endorsed the grant application in what the group’s leaders have called an unprecedented collaborative effort.

“The most pleasant surprise was the number of entities that signed on as partners in support of the project and their interest and

Jefferson County commissioners Tom Gentile, left, and Dave Maple discuss the kinds of information that should be included on a new web-based communications system the oil and gas committee is working on.

Photo by Linda Harris

enthusiasm for the whole concept of collaboration,” said Joy Howell, superintendent of the Jefferson County Educational Service Center and a key player in preparing the grant application.

Howell credited a shared

desire to “improve the quality of life for the citizens of Jefferson County that linked us all together in this project, and truly made us a single, united team.”

Commissioner Tom Gentile said the grant was “a remarkable

example of what we can do when we want to.”

“There’s going to be a lot of useful information for our citizens, business and people looking for jobs, and a conduit for the industry to get information out,”

he said.

George Allan, who wrote the grant application before retiring from JCESC, said he’s hoping the success of the initial collaboration “leads to more productive use of our resources and exchanges of information, exchanges of services and exchanges of ideas that can grow the county.”

Once the state controlling board signs off on the grant, Jefferson Regional Planning Commission Director Domenick Mucci said they’ll be able to issue a request for proposals and “create a punch list of what we’d like to see it be.”

The committee meets monthly in the Pugliese Center at Eastern Gateway Community College’s Steubenville campus.

Brown says shale jobs need to go to Ohioans

Photo by Linda Harris

U.S. Sen. Sherrod Brown, DOhio, speaks with Eastern Gateway Community College students and area residents about the potential for jobs and economic growth in Eastern Ohio during a visit to the college’s Pugliese Center.

By LINDA HARRIS Shale Play STEUBENVILLE, Ohio — Saying shale development holds “tremendous potential” for bringing jobs and economic growth to the Buckeye State, U.S. Sen. Sherrod Brown told Steubenville residents this month those jobs need to go to Ohioans.

During a visit to Eastern Gateway Community College’s Pugliese Center, Brown, D-Ohio, said his SECTORS initiative, otherwise known as the “Strengthening Employment Clusters to Organize Regional Success” Act, would ensure training is aligned with the needs of industries that are creating the jobs while providing a “more structured, a more reliable ongoing stream of money” to pay for those programs, which he said are key to ensuring Ohioans benefit from growth industries.

“We must make sure these new jobs are going to Ohioans, not out-of-staters,” Brown said.

“That’s exactly what Retrain America and the ShaleNet programs at Eastern Gateway Community College are designed to do - train locals for shale exploration positions. The SECTORS act takes a similar approach by aligning worker training programs to the needs of industries that are creating jobs. It helps local communities, and educational institutions like EGCC, tai-

‘

“We must make sure these new jobs are going to Ohioans, not out-of-staters.”

— U.S. Sen. Sherrod Brown

lor work force training to meet industry needs. Here in Jefferson County, the SECTORS Act would help the community make sure more workers are prepared for opportunities in shale development.”

ShaleNet is a U.S. Department of Labor-funded initiative focused on preparing local residents for new jobs in the oil and gas industry. Likewise, “Retrain America” offers similar training for Ohioans looking for work in the shale industry. Eastern Gateway is using both to prepare area residents to work in oil- and gas-related jobs.

Kim Cline, project manager at Progress Alliance, described the Jefferson County community as the “gateway to Ohio’s shale region.” Blessed with an interstate highway, river and rail access, she said the shale boom, although still in its infancy, has nonetheless been “a totally different experience for us.” Where before the Progress Alliance staff had to search out potential suitors, she said potential investors now are contacting them in search of

assistance in locating sites or hiring workers.

“In my opinion, Jefferson County’s been really in front of the ball,” she told Brown. “In a lot of (ways) Jefferson County is the poster child for other counties.

We’re trying to stay in the forefront, instead of letting it run us over.”

Tracee Joltes, assistant director of work force outreach at Eastern Gateway, said the school’s ShaleNet program has already graduated about 70 students, roughly 60 percent of whom are working in the oil and gas industry so far. Others have found work in machine shops that serve the industry in some capacity, she said. A program like SECTORS, she said, would “provide more opportunities.”

“These companies want to hire local (workers),” she added. “It costs them less money to hire local.”

Brown said employers in emerging industries — a list he says includes things like solar energy, advanced manufacturing and health care - struggle to find

qualified workers to fill job openings, despite Ohio’s 7.5 percent unemployment rate. He said SECTORS would tailor work force development to the needs of those industries, allowing more workers to be placed in those new jobs and attracting more businesses to the region.

The bill would organize stakeholders connected to a regional industry to develop plans for growing that industry, he said.

Eligible entities would be able to apply for a one-year planning grant of up to $250,000 and a three-year implementation grant of up to $2.5 million, he said.

Brown said the SECTORS program would give schools like Eastern Gateway “an ongoing stream of money” to develop specialized training programs meeting the needs of growth industries in their region.

Prior to meeting with students in one of those retraining programs, Brown fielded questions from residents and listened to their perception of the shale industry.

He told those in attendance that the shale boom “is all good news if done right.” “(And) ‘done right’ means making sure of other things, that any manufacturing is done in this county ... that drinking water is protected, that we know what chemicals are used in the process, and that these jobs are local jobs.”

SHALE PLAY

20

W.Va. making push for natural gas vehicle CHARLESTON, W.Va. — West Virginia’s abundant natural gas supply has Gov. Earl Ray Tomblin ready to order a cost-benefit analysis of switching at least part of the state’s vehicle fleet from gasoline and diesel, according to administration officials and those who have been asked to serve on the resulting task force.

Tomblin plans to issue an executive order that also aims promote this alternative source among the public, said Rob Alsop, his chief of staff.

“He thinks that given the price of natural gas and what looks like the long term development of the Marcellus Shale, this can become a resource for our fleet instead of depending on oil,” Alsop said.

“It could help with job creation and lowering transportation costs in the state.”

The task force is expected to include top executives from gas producers and companies with such relevant holdings as service stations.

“We’re interested in demonstrating that we can improve our nation’s energy security, hopefully by converting at least part of the vehicular fleet in this country, starting here in West Virginia,” said Phil Reale of the state’s Independent Oil and Gas Association, among those asked to join the volunteer group.

Scott Rotruck, a Chesapeake Energy executive and another task force member, called switching at least part of the fleet “an excellent first step in a broader movement that would change the way we all fuel our cars in the U.S.” “The state has several large roles to play, notably this time as a ‘market player’ with fleet conversion,” Rotruck said.

Tomblin is also among 13 governors who appealed to auto makers in an April 27 letter to help them jointly shift their fleets.

“A bipartisan partnership between governors and auto manufacturers in the U.S. makes sense and has the potential to create new options for alternative fuel vehicles and transportation fuel diversity,” the letter said.

Thursday, June 28, 2012

Ohio preps for drilling, researches mineral rights COLUMBUS, Ohio (AP) — Ohio officials are cataloging how much state property sits above the Utica shale as they prepare for potential gas and oil drilling in state parks and forests, which were opened to drilling under a law enacted last year.

When lawmakers were debating that idea, officials from the Ohio Department of Natural Resources had said the state owned less than onethird of the mineral rights under state parks, and they didn’t know who held the rights for land in some cases.

State workers have spent three months reviewing property records in 16 eastern Ohio counties with the most active shale drilling, stretching from Trumbull County south to Monroe County and west to Muskingum County.

The Ohio Department of Natural Resources says the research in those counties is almost done.

“This demonstrates the level of work that is necessary in terms of identifying the mineral rights that are owned by the state,” spokesman Louie Chodkeiwicz stands in his yard within site Carlo LoParo said. “Many property in Broadview Heights, Ohio properties contain hundreds of parcels, all of which had to be are hinging much of Ohio’s job growth strategy on the increase in drilling. researched.”

Environmentalists have expressed More research is planned in up to 19 other counties with less active shale concerns about pollution from drilling drilling, with possibilities ranging from and the method known as hydraulic fracAshtabula County in the northeast corner turing, which blasts millions of gallons of chemically laced water into the earth to Meigs County in southern Ohio.

The industry has flooded the state in to fracture shale formations and release search of gas and oil deposits in the Utica oil, natural gas and natural gas liquids and Marcellus shale formations, and such as propane.

Drilling companies with high interest Gov. John Kasich and other state leaders

AP Photo

of one of the oil and gas wells near his in the Utica shale have offered eastern Ohio landowners more than $5,000 an acre for mineral-rights leases.

It’s not clear when drilling companies might be offered access to state park properties.

Some companies were briefed about state lands last month but received no schedule, said Brian Hickman, a spokesman for the Ohio Oil and Gas Association.

Fracking to begin at Brooke Hills Park

By WARREN SCOTT Shale Play WELLSBURG, W.Va. — After working several months to establish a natural gas well at Brooke Hills Park, crews are expected to begin the next phase this week.

Jacque Bland, media relations specialist for Chesapeake Energy Corp., confirmed some time this week crews could begin hydraulic fracturing the two wells created at the site.

Bland said the work will take two to three weeks because the company doesn’t plan to do it on weekends.

Janice McFadden, the park’s manager, said, “They’re working with us to keep it on weekdays

because of shelter rentals and other activities there on the weekends.”

The process involves pumping hundreds of thousands of gallons of water, mixed with sand and various chemicals, into the underground Marcellus shale to release the gas.

The operation is expected to involve hundreds of trucks that will travel through the park, so plans call for the work to be done mostly at night and on weekdays.

Before drilling began, crews with Chesapeake widened and paved the park’s entrance road and extended it to the drilling site at the rear of the park near Pearce Run. McFadden said Chesapeake has worked

‘

“They’re working with us to keep it on weekdays because of shelter rentals and other activities there on the weekends.”

— Janice McFadden

around the park’s activities since it began operations there last fall.

As an example, she said it scheduled its operations around the Brooke County Fair and Brooke Hills Spooktacular.

McFadden said the operations are expected to be completed anywhere from October to two years from now.

The Brooke County Park

and Recreation Commission, which oversees the park, has received $750,000 for signing a lease allowing Chesapeake to drill on nearly 100 acres at the park.

The park will receive 18 percent of royalties on about 90 acres, with other royalties going to descendants of the W.C. Gist family, which retained mineral rights to a portion of the

land donated to the county for the park.

Park officials don’t know how much they will receive through the royalties, because the quantity of gas at the site isn’t known.

McFadden noted the park won’t receive the royalties until a transmission line is built from the park.

The park board also is slated to receive a right-ofway fee for the property crossed by the line.

The signing fee has allowed the park board to make improvements, such as refurbishing its golf course, adding a fence between the course and the entrance road and installing new playground equipment.

There also are plans to

build a 160-square-foot storage building for tractors and other equipment used to maintain the grounds and its golf carts, which have been the target of vandals in recent years because they are stored outside.

The park board also plans to hire a consultant to aid it in planning future additions aimed at drawing more people to the park.

A water park, ice skating rink and opportunities for snowboarding or skiing have been considered by the group.

McFadden and other park officials said they are comfortable it will be done safely, adding it brings a major source of revenue to the park, which had been struggling financially.

SHALE PLAY

Thursday, June 28, 2012

21

‘

“If the Sierra Club ... had their way and were able to shut down drilling, what would West Virginia’s unemployment rate be?”

— R. Dennis Xander

JOBS NUMBERS DEBATED Gas industry, WorkForce clash on drilling jobs

By CASEY JUNKINS Staff Writer WHEELING, W.Va. — Drillers believe WorkForce West Virginia’s evaluation of their employment levels does not paint an accurate picture, but union leaders said the numbers prove the gas and oil industry is not hiring locally.

WorkForce WV, a division of the state Department of Commerce operating under Secretary Keith Burdette and Gov. Earl Ray Tomblin, lists only 2,244 Mountain State oil and gas workers in 2010. The number actually dropped slightly in 2011 to 2,179, according to those figures.

However, the vice president of the Independent Oil and Gas Association of West Virginia cited a study commissioned by the America’s Natural Gas Alliance that shows 16,888 gas workers in the state for 2010.

R. Dennis Xander, president of Buckhannon, W.Va.-based Denex Petroleum and vice president of IOGA, said this number is “amazing.”

“Between 2008 and 2010, natural gas prices collapsed, falling by something like 60 percent, and still employment is robust,” he said.

“I think the oil and gas industry should get credit for just maintaining jobs in this economic environment. And yet we are actually growing.”

Noting West Virginia’s unemployment rate surged to 6.9 percent last month, Xander wonders how high the rate would be without his industry.

“If the Sierra Club ... had their way and were able to shut down drilling, what would West Virginia’s unemployment rate be?” he said, emphasizing that this is his personal view, rather than the view of IOGA as a whole.

The report Xander cites lists the 16,888 number for 2010 as the “employment contribution of unconventional gas.”

The Marcellus and Utica shale formations are considered by the industry to be unconventional because of the horizontal drilling and fracking needed to extract the gas.

This employment contribution

statistic is a number that includes jobs created for those working in the drilling fields, but also for those working in support positions.

The study refers to this concept as “direct, indirect and induced” jobs.

It states that direct gas jobs are for those who “explore, produce, transport and deliver natural gas to consumers or provide critical supplies or on-site services that support unconventional gas activity.”

The indirect jobs are held by those who supply material or services for the industry, which may be someone who works for a sand or chemical provider. The induced jobs are those caused by the gas workers spending their money, which could include those working for restaurants or hotels.

However, the Work-Force statistics show the number of West Virginia residents working directly for gas and oil drillers has not increased over the past two years, despite a continued upswing in drilling and fracking.

“Our data comes from all Unemployment Insurance-covered employers themselves. They are required by federal and state law to submit employment and wage information on a quarterly basis,” said WorkForce spokeswoman Courtney Sisk.

The Affiliated Construction Trades Foundation and the West Virginia State Building and Construction Trades Council have long voiced concerns about natural gas companies bringing in workers from other states. Dave Efaw, secretary-treasurer of the trades council, cited the WorkForce numbers as evidence for his cause.

“West Virginians are watching the natural gas industry grow in their own backyards, as promised, but the sad part is they’re not part of the growth or even benefiting from it,” he said.

“We see guys in RVs and trucks coming from Texas, Louisiana and other states into our communities to do the jobs local workers can do and getting the paychecks local workers badly need,” Efaw continued.

“Paychecks earned by local

Photo by Casey Junkins

A construction worker is shown at Dominion Transmission’s natural gas processing plant in Marshall County. The state of West Virginia and the natural gas industry are debating the number of jobs created by the industry. workers stay in West Virginia and help our economy — paychecks earned by Texans get sent home to Texas.”

Gas industry jobs paying near-

ly $30 per hour are on their way to Marshall County soon, as Dominion Resources will look to hire 40-45 full-time, permanent workers for the natural gas pro-

cessing plant set to open in December.

There will be positions for electricians, plant operators and loaders.

SHALE PLAY

22

Thursday, June 28, 2012

Classified

Jobs Jobs Jobs! Real Estate! Pets! More!

OPEN N Positions Ready for something new?

Requirements: 7-10/hrs per mo. Willingness to succeed.

Must want to help others!

Training g provided Huge e income e potential! yourlifeimproveshere.com

Programmerr / Analyst Astro o Shapess (located d in n Struthers,, Ohio)) hass an n immediate e opening g forr a Programmerr / Analyst..

The job responsibilities include assisting in fact finding to develop and/or modify information systems; assisting with the development of program specifications; designing, coding, testing and debugging programs and preparing documentation for own programs.

Qualified candidates need a basic understanding of computer logic and the following required languages: PHP, SQL, HTML, CSS (C or C++ and .net are desired).

Other required skills include: familiarity with relational databases and design (ie. Oracle); Linux (any), Apache and the ability to do some higher level math (calculus, stats, etc.). Other desirable skills would be the familiarity with PL/SQL, Triggers, Procedures, networking protocols (such as TCP, UDP). A bachelor’s degree in computer science a plus.

Sh hop Purchasin ng Tooll Roo om Clerrk Local fast paced manufacturing company looking for a full time, aggressive and self motivated individual with a strong computer background to work in an industrial environment.

To schedule, control & track purchasing of plant supplies and inventory.

Excellent b en efit s, workin g en viro n men t an d 401(k) savin g s p lan .

Wag es b as ed o n exp erien ce.

Send d resume e to:: Tribune e Boxx #4894 P.O.. Boxx 1431 Warren,, Ohio o 44482

Looking for a job, looking to hire, or need to relocate?

Next Issue You’ve Deadline: come to Friday, July 6 the right @ 10AM place.

d candiid atess should d Interess ted send d the ei r resumess to::

Kellyy Shaffer,, H.R.. Managerr 65 5 Main n Street, Struthers,, OH H 44471 1 orr to::

kelly.shaffer@astroshapes.com

No o telephone e callss - please

DRIVERS National trucking co. seeks exp. owner & lease operators with a valid Class A CDL. Qualified applicants will provide store to store moves for our national retail account.

Clean background & MVR required.

Competitive pay per mi. & fuel sur-charge paid on a weekly basis. Additional compensation for doubles endorsement.

Average 2200 mi. per week working Sun.- Thurs. eves.

Call 330-538-6188

DRIVERS Applications being accepted for tow truck drivers. Min. 25 yrs of age. Clean MVR. Exp. preferred or mechanically inclined. Resident of Niles or surrounding area. For appt. call between 8:30am - 4:30pm only at: 330-544-6101 INDEPENDENT DRIVERS Clean Class A CDL taking applications for pulling 53 ft. trailers.

Su-Jon Enterprises 3170 Highland Ave SW Warren, OH 44481 330-469-6456

Looking for a bargain?

Check the classified.

You might uncover the bargain of a lifetime.

OTR R DRIVERS S

Assistantt Security Site e Supervisor

Call:: 330-469-6456

Needed full time for local area shopping center. Exp. in security, law enforcement or supervisory exp. preferred but not necessary. Must have high school diploma or GED equivalency, clean criminal background, valid drivers license & able to pass drug screen. 40 hrs. per week. Applicants should mail cover letter, resume & salary requirements to:

with Class A License wanted.

Must have: âˆŤ Good MVR âˆŤ 2 yrs exp. w/53 ft vans âˆŤ OTR exp

WHEN applying for employment for the government, utility or airline jobs, remember you may apply directly with the company at no charge.

Call the Better Business Bureau at: 330-744-3111.

Directorr off Security Eastwood d Mall,, Unitt #490 5555 5 Yngst.. Warren n Rd. Niles,, OH H 44446 6

Shale Play! Shale Play! Shale Play!

DRIVERS

LINUX X SYSTEM M ADMINISTRATOR A progressive aluminum extrusion company in the greater Youngstown, Ohio area has an opening for a

Linuxx System m Administrator.

This position will report directly to the Info. Technology Mgr. and will work with all network users in the organization.

Responsibilitiess include: Daily monitoring and maintenance of 20+ servers; performing back up, file replications and script mgmt. for servers; planning and expanding current service offerings; testing and applying new software and maintenance patches; maintaining and supporting a multi-VLAN Cisco network environment.

The e successfull candidate e willl possess: 5+ yrs. Linux server administration experience; strong Ubuntu Linux experience; and Windows 2003/2008 server.

A solid experience with a multi-server environment and familiarity with databases and web programming languages and automation is a plus. Must be able to troubleshoot and provide viable solutions and possess excellent communication and interpersonal skills.

Position offers an excellent wage and benefit package, work environment and 401(K) Plan.

Send resumes along with salary requirements to: kelly.shaffer@astroshapes.com m or Astro o Shapes,, Inc..

Attn.. Kellyy Shaffer; 65 5 Main n Street, Struthers,, OH H 44471

Locall & Regionall Semi-Dump

R & J Trucking in n Boardman,, OH H iss seeking g qualified d locall and d regionall driverss to o run n semi-dumpss forr construction n workk on n locall oill & gass fields.

Qualified d Applicants: âˆŤ Mustt be e att leastt 23 3 yearss off age âˆŤ 2 yearr mininum m off CDL L experience âˆŤ Hazmatt certification âˆŤ Clean n MVR R a must

We e Offer: âˆŤ Fulll benefitss âˆŤ Vacation n pay âˆŤ Safetyy awards

Calll Zeke e at:

1-800-262-9365,, Ext.. 121 E.O.E.

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$

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$ $ + ! ! & $ + ! # ! + , , +- + #

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ŏ SHALE PLAY

Thursday, June 28, 2012

23

Classified

Jobs Jobs Jobs! Real Estate! Pets! More!

EARN N EXTRA A $$ $ MONEY Y $$ Deliverr Phone e Books Trumbulll Countywide ∫ Flexible Hours ∫ Have Insured Vehicle ∫ Must Be At Least 18 Yrs. Old ∫ No Exp. Necessary ∫ Clerks & Loaders Needed

855-955-7337 www.sddsinc.com,, Ref.. Job b #OH05

FLEXIBLE E DAY WORK K IN N WARREN N AREA

No nights or weekends, working full- time or part-time. Average $8 to $12 per hour. Must have good communication skills, with an outgoing personality ——doing customer service type work.

330-394-1555

FACTORY POSITIONS

Star Extruded Shapes is accepting applications.

Starting rate is $7.90 an hour, weekly pay, and benefits after 90 days. We are a smoke-free & drug free workplace.

Apply in person at: 7055 Herbert Road Canfield OH 44406 between the hours of 8:00am to 4:00 pm.

No Phone Calls Please E.O.E. APP/M/F/V/H

Looking for a

job, looking to

hire, or need to relocate?

You’ve come to the right place.

Shale Play! Shale Play! Shale Play!

Thanks to excellent service, Dollar General Market continues to grow. As a division of Dollar General, the nation’s largest smallformat retail discounter, we proudly offer fresh food and quality products at low prices.

Improving lives through service in our stores and communities, we serve the best interests of our employees as well, with competitive pay and benefits, and advancement potential.

If you are service-minded, you’re welcome to join our store in Niles, OH. Join us at the:

Dollar General Market Hiring Event Friday, June 29, from 10 am to 2 pm Magnusom Grand Hotel 9519 E. Market St., Warren, OH 44484 We are hiring for the following roles:

KEY Y CARRIER

Look no further for a rewarding career opportunity!

Pat Catan’s is looking to fill a Key Carrier position at our Warren retail location. Ideal candidates will have strong communication and customer service skills. Previous planogram work experience is a plus!

If you enjoy merchandising, expressing your creativity with displays, and want to develop your leadership skills, this may be the ideal position for you.

Candidates must be able to work a flexible schedule which may include some nights and weekends.

We offer a competitive hourly rate and a fun, creative work environment!

Applyy at:: Patt Catan’s 1923 3 Ridge e Ave.. SE 330-369-1557 EOE

MAINTENANCE

Par t - t i m e en t r y l e v el maintenance position at Tod’s Crossing, an independent senior housing community. skills required: Painting & janitorial with mechanical aptitude as you will also learn basic maintenance duties. We are an equal opportunity employer.

Criminal background & drug test screening.

Applications accepted Jun n 25-29,, 8am-3pm at the rental office located at: 1330 0 Blakelyy Circle e SW, Warren n 44485..

[No phone calls.]

Need a new home?

MECHANIC Niless Iron n& Metall Co.,, LLC

MAINTENANCE TECHNICIANS

Republic Steel seeks experienced Electrical and Mechanical Maintenance Technicians for our Canton, Ohio steelmaking operations to perform preventive, predictive, and routine maintenance tasks to include troubleshooting issues, repairing mill equipment, and performing inspections, and adjustments.

Qualifications must include at least 3 years experience maintaining heavy manufacturing equipment; mechanical skills- hydraulics, pneumatics, mechanics and basic electrical repair; electrical skills-PLCás (Allen Bradley, ABB), AC / DC motors, controls, digital drives, circuits, electricity and high voltage distribution. A post secondary education or technical trade certificate is preferred. The position requires a willingness to work rotating shifts including weekends and holidays as required.

Base hourly rate of $21.67 plus 20% wkly incentive opportunity, 401k option, fully paid healthcare benefits including dental and vision.

Submit resumes to:

C. Muller, H. R. 2633 8th St. NE Canton, OH, 44704 Or apply online at: www.republicsteel.com

MACHINIST Manual & CNC

1st & 2nd Shift Available

FITTERS & WELDERS

Experience required.

Full Benefits - Top Wages

Seeking individuals with a desire to serve, a drive to excel and a determination to succeed, Dollar General Market truly cares about our customers, our employees, our communities, and our world. Interested candidates can apply in person at our Hiring Event. Learn more at EOE M/F/D/V

Serving others is our mission.

Make it yours.

Apply: careers@girardmachine.com or P.O. Box 298, Girard, OH 44420

Qu alif ic at ions : Looking for seasoned diesel, welding & hydraulics experience.

Expectations:: Will work in all weather conditions, self- motivated, knowledge & competence in trucking, cable & hydraulic crane maintenance & preventive maintenance.

Application n process:: Walk-ins welcome to fill out applications & turn in resumes from 7 a.m. - 4 p.m., Mon.-Fri., at 700 S. Main St., Niles, OH 44446.

(330) 652-2262

PRODUCTION N CLERK

Local manufacturing company currently seeking an experienced manufacturing clerk to join its operations.

This 1st shift, 40-48 hrs. per week position requires 3-5 years’ experience performing hands-on production and shop floor reporting, administrative experience that includes strong computer skills with a working knowledge of accounting principles, time- keeping, and shipping procedures.

Must be able to multi-task in a fast-paced work environment.

This position reports directly to the Plant Manager and offers the right candidate the opportunity to join a financially strong organization and receive a comprehensive benefit package that includes Medical/ Life/Dental/401k options and a competitive wage structure. Pre-employment drug screening including hair follicle testing required.

Interested candidates should submit their resume listing salary history to: Tribune e Boxx #4895 P.O.. Boxx 1431 Warren,, Oh h 44482

STYLISTS

Galleria a off Hair at Howland Corners is looking for (4) PT/FT Stylists. Salon has brand new equip. and completely remodeled and under new mgt.

Send resume:165 Niles-Cortland Rd, Warren SE, Oh 44484.

Sell an item in the classifieds!

WHEN applying for employment for the government, utility or airline jobs, remember you may apply directly with the company at no charge. Call the Better Business Bureau at: 330-744-3111.

The Shaw Group Inc.

is a Fortune 500 company with over 27,000 employees around the world that services the steel, energy, chemical, environmental, infrastructure and emergency response markets for governmental and private sector clients.

We are accepting applications for the following qualified candidates to work in Steel Mill Industrial Maintenance positions: ó ó ó ó ó

Electrical Technicians Mechanical Technicians Maintenance Planners Automation Engineers Maintenance Supervision

Additional incentive potential, 401K, Medical, Dental, and Vision Insurance Short Term and Long Disability Life Insurance

Interested call the:

applicants

should

Human Resources Craft Resource Center Direct: 225.313.5763 or 812.362.6284 Submit resumes to:

aaron.albin@shawgrp.com Or fax to 812.362.6805

E/E/O M/F/D/V

VISUAL INSPECTOR

Manufacturer of steel components for the automotive industry seeks energetic, dependable worker. Visually inspects parts to assure compliance to customer drawings. $10.50/ hr+ incentive+shift differential.

Must be willing to work afternoon shift (3pm-11pm). Drug test required. Company offers competitive benefits package.

Send resume to: Ohio Star Forge Co., H.R. Dept./Visual, P.O. Box 430, Warren, OH 44482-0430.

E.O.E.

Looking for those who are ready to buy? Try the classifieds. The marketplace where you have the buyers attention. Call 1-800-5508742 today!

SHALE PLAY

24

Thursday, June 28, 2012

Classified

Jobs Jobs Jobs! Real Estate! Pets! More!

WELDER/FITTER/ MAINTENANCE Local Aluminum Extrusion Plant seeking an experienced

Welder/Fitter/Maintenance e Mechanic Must be able to read Cad drawings and fabricate parts with minimum of 3 years experience at MIG, TIG, Stick, Flux, and be very accurate/detail oriented.

Must be skilled using an air arc, lance and be certified with pipe and high pressure welds. Candidate will be required to make some machine repairs as needed.

Please send resume to: Extrudexx Aluminum,, Inc. P.O.. Boxx 697 7 North h Jackson,Ohio o 44451 Attn:: H.R.. plove@extrudexohio.com

Burton Health Care Center Burton Health Care Center has positions available for: Activityy Director,, fulll time Activityy Assistantt fulll time Cook,, fulll time Cook/dietaryy aide partt time Housekeeper/laundryy aide,, partt time Interested applicant can submit resumes or apply in person:

Burton n Health h Care e Center 14095 E. Center Street Burton, OH 44021 or fax 440-834-9824 or visit our website at:

www.windsorhouseinc.com

EOE, Drugfree Workplace

LPNs Briarr Hilll Health h Care e Residence e in n Middlefield d Village e seeking: Part-time e LPNs 2nd d & 3rd d shifts..

Calll to o schedule e yourr interview 440-632-5241

x Aluminum,, Inc., a Extrudex long established extrusion company, has a position available for a

Customerr Service e Representative in our North Jackson office.

We e are e seeking an individual that has prior experience in a business environment; experience in the metal industry is beneficial, but not required.

Must be self-motivated, and have the ability to work with minimal supervision. Organizational and administrative skills are a requirement, as well as excellent communication and customer service skills.

We e offerr competitive e payy and d a comprehensive e benefitt package.

Please send resumes to: plove@ExtrudexOhio.com orr P.O. Box 697 North Jackson, OH 44451 Att:: HR

Sell Your Boat Call 1-800-550-8742

Life/Health/Benefitss Producer Independent Insurance Agency in Trumbull Co. is seeking a life/health and benefit producer to sell and service an existing book of business. Experience and licensing required.

Send resume to: trumbullsales@gmail.com Local company in need of a mid-range/local driver.

Must have Class A CDL. Excellent benefits & working environment.

Please apply in person or send resume to: Extrudexx Aluminum,, Inc..

12051 1 Mahoning g Ave.,, North h Jackson,, OH H 44451-0697 7 Attn:: HR R Managerr

Classified ads will work for you, whether you’re buying or selling.

Experience in heavy plate fabrication environment utilizing any of the following processes:

IMMEDIATE E OPENINGS S for FULL L andd PART T TIME

Pay commensurate with experience.

Please send resumes to:

P. O. Box 216 Hubbard, Ohio 44425

Looking for a job, looking to hire, or need to relocate?

You’ve come to the right place.

Shale Play!

RNás & STNAás Autumn Hills Care Center is currently accepting applications for RNás & STNAás.

We have both 12-hour day & night positions available.

We are looking for reliable & motivated individuals to join our growing team.

Competitive wages & benefits.

NO Mandatory OT Apply in person or send resume to:

Autumn Hills Care Center

2565 Niles-Vienna Rd. Niles, OH 44446 DFWP/EOE

Looking for a bargain?

Check the classified.

You might uncover the bargain of a lifetime.

∫ Customerr Caree ∫ Customerr Servicee ∫ & Sales

Accepting Applications

ó On-Site Laundry Facility ó Computer Center ó Activities & Events ó Air Conditioned

CORTLAND Beautifully Updated Large 1 bdrm., $525 2 bdrms., $475, $525 $600 with pool + electric 330-637-6691

New Hampshire House Apts.

1244 Fifth St. SW (Off Tod Ave) Mon. thru Fri., 8-5 p.m.

(Sat. by appt.)

330-393-8900 E.O.E.

MINERAL L RIDGE

Ridgewood Apts .

(On SR 46 Near I80 Interchange) Efficiencies & 1 Bdrm. Units.

Number Of Extras.

On-Site Mgr. Check Us Out Great Location. Priced Right.

Timberr Creek Apartments

VXII Globall Solutionss has

June Move-In Special $50 Laundry Card

740-922-2170 or 740-922-1670

Niles

Inboundd Calll Center

ó Flux Core ó Stick ó Tig ó Submerged Arc

Himalayan Kittens Available now. Registered.

Various colors & white.

330-652-6008 or 330-545-6630

Experienced d Stafff and d Supervisor.

Betterr Living g Now Applyy in n person n att 1460 0 Centrall Parkway,, Warren.. 330-373-6318

HIMALAYAN

TRUCK K DRIVER

MRDD

Welders

WARREN

Fitness Rm. & Lg. Pool Surveillance e Cameras Discounted Cable ALL L UTILITIES S PAID Studio o $415; 1 Bdrm.. $525 Senior Friendly 330-652-2535 www.timbercreekapts.net

Warren

Warren

Gett Itt Alll At “ The New”

Riv er Run A parrtmentss No o ap pliccat ion n f ee *On ly $150 Depo s it

1,, 2 & 3 bdrm.. apts. & townhomes from m $449 * Pet s welcom e On -s ite f ull s erv ic e Day car e, Th eat r e, In t ern et , Fit nes s & B us in es s Cen t er s Open Mon.-Sat. til 5 330-898-3035 www.Warren Apartments.com *Restrictions Apply

ARE E YOU: √ Ablee too passs a criminall backgroundd checkk & drugg scr een? √ Att leasee 18 8 yearss off age? √ Knowledgeablee withh thee Internet,, Word, Excel,, Outlook,, etc?

1 & 2 bdrm.

Starting at $395

WE E OFFER:

√ Competitivee hour lyy rate √ Paidd trainingg √ Trainingg completionn bonus √ *Somee positionss offerr medical,, dental,, & visionn coverage √ *Somee positionss offerr lucrativee incentivee bonuses

Applyy Onlinee at

www.vxi.com Orr Walk-In Mondayy thruu Fridayy 9 a.m.. - 4 p.m.

20 0 Federall Plazaa West 4thh Floor Youngstown,, OH H 44503 Put Your Reta il Sa les And Customer Service Skills to Use In A Car eer With Great Money And Opportu nities!

Includes heat, water & appliances ß Specials ß Call 330-898-6014

WHEN applying for employment for the government, utility or airline jobs, remember you may apply directly with the company at no charge. Call the Better Business Bureau at: 330-744-3111.

NEWTON TWP. Ready to move in. Close to GM/McDonald Distribution center, newly renovated 2 & 3 bdrm. mobile homes, $400 & $425 per mo.

Call 330-979-2482 or 330-824-3700

Looking for skilled Medical Care? There are many qualified services advertised in the classified section everyday.

Shale Play! Shale Play! Shale Play! Shale Play! Shale Play!