april 2013 ohio gas & oil magazine
DESCRIPTION
The April 2013 edition of The Ohio Gas & Oil Magazine published by Dix Communications.TRANSCRIPT
Dix Communications - Gas & Oil April 2013 Edition 1www.OhioGO.com
Andrew S. [email protected]
G.C. Dix [email protected]
Ray BoothExecutive [email protected]
Rob TodorExecutive [email protected]
Cathryn StanleyRegional [email protected]
Niki WolfeRegional [email protected]
Kimberly LewisRegional [email protected]
Ed ArchibaldSE Ohio Sales Cambridge, Ohio [email protected] 740-439-3531
Janice WyattNational Major Accounts Sales [email protected]
Peggy MurgatroydSE Ohio Sales Barnesville and Newcomerstown, Ohio [email protected] Barnesville 740-498-7117 Newcomerstown
Jeff KaplanNE Ohio Sales Alliance & Minerva, Ohio [email protected] 330-821-1200
Kelsie DavisLayout Designer
“Gas & Oil” is a monthly publication jointly produced by Dix Communication newspapers across Ohio. Copyright 2013.
Cover Photos: Congressman Johnson visits ‘Land Lab’, photo by Michael Neilson/Dix CommunicationsConstruction on processing plant in Kensington by Laurie Huffman/Dix Communications
◆Congressman visits lab ............................pg. 3◆Focus on safety following fatality ...........pg. 4 ◆1st women to graduate from program .....pg. 6 ◆EQT donates funds ................................pg. 11 ◆Sales up over 24% in shale counties .....pg. 10◆Young lawyers riding the wave .............pg. 12◆$1 billion natural gas processing plant
opens in Kensington in May ..................pg. 14◆Art focusing on industry
sought for show .....................................pg. 16 ◆Number of patients increasing ..............pg. 18◆Adjacent lands may be drilled ..............pg. 20 ◆Rex Energy donation .............................pg. 21 ◆Natural gas processing plants critical
to Utica Shale Development ..................pg. 23◆ It’s not easy being ‘techno Amish’ ........pg. 24◆What are those little checks ...................pg. 28◆Oil & Gas Assn. adds staff ....................pg. 31
◆Ohio BWC offers safety services at no additional cost to employers .............pg. 32◆Middle school students design frack water cleaning process ..........................pg. 37◆10 things about ‘fracking tax’ ................pg. 38◆Council to sell water for fracking ..........pg. 41◆Cambridge Alumni and friends receives donation from EQT Corp. .....................pg. 44◆Group claims fracking secrecy illegal ...pg. 48◆Job postings on the rise .........................pg. 50◆EQT donates to Firefighters Assn. .........pg. 54◆Turner Oil Supports BARK project. ......pg. 55◆Ohio farmers Union takes positions ......pg. 56◆Energy revolution a ‘game changer’ .....pg. 58◆Proponents urge lawmakers...................pg. 59◆Council says pipeline will create jobs ...pg. 61◆Zeigler hired to direct OPC ...................pg. 62◆Companies shut down for dumping ......pg. 64
Table of Contents
Attributions
A FREE monthly PublicAtion
Ohio
octobER 2012 • www.ohiogo.com
10 things to know
about frack tax
Cong. Johnson
visits Land Lab
A FREE monthly PublicAtion
Ohio
octobER 2012 • www.ohiogo.comAPRIL 2013 • www.ohiogo.com
A FREE MONTHLY PUBLICATION
Opportunity Knocking
Spotlighton
Safety
New Gas
Processing Plant
Gas&Oil1
Gas & Oil April 2013 Edition - Dix Communications www.OhioGO.com2
Gas&Oil2
A W.D. Larson Company
Allstate Peterbilt of New Philadelphia, Ohio
“If You Can’t Come To Us, We’ll Come To You”!!!
24 Hour/7 Days A Week/ 365 DaysRoad Service Available
We Have Oil Field Trucks In StockFor Sales Call Bob Boughman At The Offi ce Or Cell: 330-243-6386
327 Stonecreek Rd. N.W., New Philadelphia, OH 44663
Phone: 330-339-5555 • 800-362-6680Fax: 330-339-6698
On Board Computer Diagnostics For Cat, Cummins, and Peterbilt MX
and PX Engines
TOWING SERVICE
AVAILABLE
10124313
Full Service All Makes
Body ShopAsk Us About CNG And LNG
Powered Trucks
Dix Communications - Gas & Oil April 2013 Edition 3www.OhioGO.com
During a recent visit to the Zane State College’s Cambridge campus,
Congressman Bill Johnson spent the afternoon meeting with col-lege President Dr. Paul Brown, administrators, instructors and students, and received a firsthand look at the school’s new oil and gas land lab. He also met with several students to learn more about what they were studying, the skills they were acquiring, and the impact a Zane State education
was having on their lives. During a stop in one of the classrooms, Johnson and the group
talked about job opportunities available in the industry. Many of the students cited the emerging job market in the oil and gas industry as the main reason they decided to enroll.
Johnson also toured and learned more about the medical, welding and industrial electricity programs during his visit to the school.
Congressman visits Zane State lab
Judie PerkowskiDix Communications
“You’re getting in on the beginning of a really good deal, so you should be excited. You will be able to stay in Ohio and raise your kids in Ohio,” he said.
After Rep. Johnson’s visit to a welding class, Deanna Duche, director of welding education, commented,
“Cong. Johnson’s interest in our oil and gas-related programs has given us a great opportunity to communicate to the public about the need for more skilled welders. There is a common mis-conception that manufacturing in this area is in decline and that welding as a career, is a dead-end. Nothing could be further from the truth. There are companies that are turning down millions of dollars worth of work, because they cannot find enough qualified welders.
“The high demand for skilled welders, especially pipe weld-ers, has benefitted our graduates, by raising the starting wage significantly. Our biggest problem at present, is that we cannot
Michael Neilson/The Daily Jeffersonian/www.buyjeffphotos.comCongressman Bill Johnson, looks through a virtual welding simulator while on a tour of the Cambridge campus of Zane State College. Cong. Johnson also talked about the impact education has in the oil and gas industry. Also pictured are Zane State College President Dr. Paul Brown and Dr. Chad Brown, executive vice president.
Congressman Bill Johnson met with staff members and also talked to students in various classes. During the tour, Johnson got a first hand look at the new technology in use with practical applications at the school Continued on pg. 4
Gas&Oil3
10127573
SUGARCREEK, OHIO [email protected] 10116255
Gas & Oil April 2013 Edition - Dix Communications www.OhioGO.com4
The death of one worker on a Carroll County well pad on February 25, has led to a re-
newed emphasis on safety training.According to the Carroll County
Sheriff Department’s incident re-port, Abdal L. Audeh, 28, of Dover, and Alex R. Cox, 20, of Cadiz, were attaching long-handled tongs used to manipulate pipe on the Brace West pad located at 1165 Brussel Road, in Washington Township, ap-proximately six miles north of Car-
rollton, when they lost control of the apparatus, which swung around, striking Audeh across his back.
Cox, who sustained a head lacera-tion when he fell backwards on the rig, told investigators he and Audeh had forgotten to hook up a safety line, called a “snub line,” which would have prevented the tongs from swing-ing completely around.
Paramedics performed CPR on Au-
deh at the scene before transport-ing him to Aultman Hospital in Canton, where he was pronounced dead. According to autopsy results released by Stark County Coroner, Dr. P.S. Murthy, Audeh died from massive blunt injuries to his chest.
Cox was treated at Mercy Medi-cal Center in Canton and released.
This is the first fatality related to drilling activity in Carroll County.
The Brace site is operated by R. E. Gas Development, a subsidiary of Rex Energy Corporation. Company officials re-leased a statement saying the company would remain in com-munication with authorities and would “fully cooperate in the
investigation” of the incident.Audeh and Cox were contractors
with Rex Energy and employees of Sidewinder Drilling, Inc., a private-ly-owned drilling contractor based in Houston, TX, which owns and operates a fleet of land rigs to meet the needs and demands of oil and gas exploration and development
companies. Company spokesman, Travis Fitts, senior vice president of human resources and health, safety and environ-ment, said Sidewinder Drilling “has no higher priority” than employee safety and would “review all corporate-wide safety training and procedures.”
Georgette HuffDix Communications
deh at the scene before transport
Focus on saftey following fatality
“No higher priority’ than employee safety.”
- Travis Fitts
turn out enough graduates to meet the demand.” The Cambridge Zane State College Campus is located in
Guernsey County, which is now one of the 18 full or partial Ohio counties represented by Johnson.
Johnson was recently named to serve on the House Energy and Commerce Committee.
“CONGRESSMAN VISITS LAND LAB” from pg. 3
Gas&Oil4
Sparta Steel & Equipment Corp.
www.spartasteel.com
Accepts all major credit cards• Fast Delivery • Friendly Service • Dependable
9875 Chestnut Ave. SE, E. Sparta, OH 44626330-866-9621 • 1-800-732-4272 • Fax 330-866-9625
STEEL SERVICE CENTER• Rebar • Angle • Channel• HR Bars • CF Bars • Beams • Tubing • Pipe • Deck Plate • Expanded Metal/Grating
• Flat Sheets • HR Plate Galvanized Sheets • Stainless Steel and Aluminum Items
• Shearing • Saw Cut • Plate Burning • C.A.D. Burning
10071710
NowLeasing!
Extended leasing options are available on a 15 lot addition with room to expand if needed. Upgrade to suit your company’s needs, or lease as is. All lots are 50’ x 50’ with lot markers, and electrical hook ups already installed. A shelter area is available for company gatherings. Stonehouse Campground is located on State Route 60, 2.3 miles north of Lowell, Ohio along the beautiful, historic, Musk-ingum River. The campground is five minutes from Beverly and fifteen minutes from Marietta in Washington County, Ohio.
Several options are available!Contact us at: 740-896-2765 or 740-525-1696
Stonehouse Campground LLC
10125860
Checking Facts. Busting Myths
www.eidohio.org
A JOINT EFFORT OF OOGA | OOGEEP | IPAA 10063099
Dix Communications - Gas & Oil April 2013 Edition 5www.OhioGO.com
Focus on saftey following fatality
Gas&Oil5
“The qualityyou want for your project”
Carpentry LTDCarpentry LTDJ&M
“The qualityyou want for your project”
Free
online: www.jmcarpentrylimited.com Fredericksburg, Ohio 44627
330.231.0125Estimates
“Generations of Amish craftwork with modern, professional site management”
online: www.jmcarpentrylimited.com
AgriculturalResidentialCommercialAny SizeCustomPole BarnsGarages BarnsStablesRiding ArenasHorse BarnsShedsOutbuildingsDecks Metal Roo�ng
10099926
Gas & Oil April 2013 Edition - Dix Communications www.OhioGO.com6
They have been best friends since high school, now they are both graduating
from Zane State College on May 11.Stephanie Jones and Jessica Cobb, both of Caldwell, will be
the first females to receive an associate degree from the col-lege’s inaugural Oil and Gas Engineering Technology program.
For Jones, her decision to attend Zane State was almost a foregone conclusion, even though her first steps into higher education was not exactly conducive to oil and gas. She has an Associate of Liberal Arts, an Associate of Medical Administra-tion and a certificate for pharmacy technician, all from Wash-ington State College.
It wasn’t until 2011 that she became interested pursuing a career in the oil and gas industry.
“Working in the oil and gas and mining industry, is a family tradi-tion,” she said. “Several men in our family have worked in mines, both of my grandpas and an uncle were miners. My dad worked in oil field services.
“I’m the next generation and the oldest grandchild, so I have to set the bar. My father wasn’t at all shocked at my decision, but my grandmother’s reaction was a different story.”
women graduate from gas/oil program
Jessica Cobb, l, and Stephanie Jones, stand on the base of the pumpjack which will be installed in Zane State’s gas and oil lab, now under construction at the college’s Cambridge campus. Cobb and Jones are the first two females who will graduate from Zane State’s Oil & Gas Engineering Technology Associate Degree Program in May.
1stJudie Perkowski
Dix Communications
Jones said she attended a class that explained the drilling opera-tion and it piqued her interest in mud drilling. Mud drilling refers to any fluid used in the drilling process. Mud engineering is knowing the correct physical and chemical characteristics of fluids, solids and chemicals required to safely drill a well.
“That’s how I knew I wanted to get into mud drilling or mud en-gineering,” said Jones. “I checked out the oil and gas program at Marietta, but it was so expensive. Then I heard about Zane State’s program; it was closer to home and there was a big difference in the cost,” said Jones.
Cobb’s situation was similar to Jones’s as far as a family tradition, but not in oil and gas. She grew up in a family of police officers. So, she decided to give it a shot.
“My dad was a cop, and I have uncles and cousins who are cops,” Cobb said.
“When I was a junior in high school I enrolled at Mideast Ohio Career and Technical Center in Zanesville for the criminal justice program. After I graduated, I wasn’t sure what I wanted to do.
“I liked the idea of going into the medical field, so I began working in home health with handicapped children and adults. During this time I enrolled at the Washington County Career Center to study phlebotomy. I am now a certified phlebotomist, and I also have a certificate in sign language from Washington State College. I worked in home health care for five years, but it was very stressful, and I was tired of living from pay-check to paycheck.”
The thought of going back to school full-time wasn’t easy for ei-ther Jones or Cobb. College is a huge commitment. They both had responsibilities and both had a young child. And because oil and gas classes were divided between the Zanesville and Cambridge cam-puses, there would be a lot of traveling. But they realized the ben-efits outweighed the cost, monetarily and personally.
Jones’s decision to apply to Zane State’s oil and gas progam was influenced by family tradition. Cobb’s decision was to better provide for herself and her daughter. Both were determined to demonstrate that women were capable of working in a male-dominated field.
Cobb initially signed up for Zane State’s program on alternative energy, until she spoke with a college advisor.
“After a 20-minute discussion about the oil and gas program, I was hooked,”said Cobb.
Grants and loans paid for their tuition, and their families helped them out by caring for their children while they attended school. Cobb’s daughter, Tylee, is four; Jones and her husband, Bill, have a three-year-old son, Jax.
“We are just as employable as the male grads from this class.”
- Jessica Cobb
Continued on pg. 8
Gas&Oil6
Dix Communications - Gas & Oil April 2013 Edition 7www.OhioGO.com
Gas&Oil7
LUNCH & DINNER SERVED DAILY
OFFSITE CATERING AVAILABLE
WE CATER TO YOUR OIL WELL
HIDEAWAYBUFFALOGRILL.COM4021 MAHONING RD. CANTON 44705
1010785
MAST TIRE“Large or Small, We Sell ‘em All!”
Auto • Farm • Commercial
H ROAD SERVICE AVAILABLE H
(740) 685-1199Andy Mast
519 Main St., Pleasant City, Ohio 443772
10122328
Quality Tells, Price and Service Sells
*SafeLandUSA *CDL�with�Hazardous�Materials
*Heavy�Equipment�Operator *Roustabout
*General�and�Construction�-�OSHA�10�and�30�hr.
A�Better�Career�Choice!
Training�for�the
Oil�&�Gas�Industry
545�University�Drive�NE
New�Philadelphia�OH��44663
800-227-1665�Phone/Fax10075807
INDUSTRIAL
RADIATOR & A/C INC.
10880 Lynchburg Rd. Kensington 330-894-2848
LicensedTo Chill
2 MOBILEVANS ON-SITE
A/C &RADIATORSERVICE
COMMERCIAL,FARM ANDRESIDENTIAL
TUBES,HOSESAND
HYDRAULIC LINES
SPECIALIZINGIN
INDUSTRIALACCOUNTS
Open Monday to Friday, 8 AM to 5 PM
10125015
Gas & Oil April 2013 Edition - Dix Communications www.OhioGO.com8
Two years ago these two young women were unsure of what their education had to offer in the rapidly changing job market. Today, they say their decision to enroll at Zane State is one of the best decisions they ever made.
“If you’re not sure about what you want to do, they (advi-sors) will help you build a solid foundation in just about any career choice,” said Jones.
While Jones is focused on mud drilling and engineering, Cobb is focusing on compression and design. A compressor station, also called a pumping station, is the engine that powers an interstate natural gas pipeline. The compressor station com-presses the natural gas — pumping up its pressure — providing energy to move the gas through the pipeline.
With graduation just around the corner, they smile and say they are anxious to begin a new career and look forward to further advance their education.
They are also proud of their capstone project. A capstone involves the entire class by combining skills and knowledge acquired from the program to physically build something re-lated to gas and oil. Every student in the program is required to contribute, and the capstone project must be completed before graduation.
Cobb and Jones’s idea for the project was to build a metering station for the new gas and oil lab that is under construction. It
was unanimously accepted by their classmates.They also started a Gas & Oil Club for students to partici-
pate in trade shows and fairs, which they passed down to the next class of students.
In their “spare time,” they are members of the Noble County Junior Women’s League, a community outreach program for underprivileged children.
“There are some people in the industry that have a tradi-tional view of women working at non-traditional jobs ... We have proven over the past two years that we can run with the boys,” said Jones.
Cobb added, “We are just as employable as the male grads from this class.”
“They earned the right. They took the classes, learned the same skills and did everything asked of other students,” said Tim Snodgrass, of the Physical Science/Environmental Re-source Management and assistant director of Energize Appa-lachian Ohio at Zane State College.
For more information about Zane State’s Oil and Gas Engi-neering Technology program, visit www.ZaneState.edu or call (740) 588-1226.
“1ST WOMEN GRADUATE” from pg. 6
Reservoir Res·er·voir nounA portion of the formation found to contain commercial quantities of hydrocarbons within the pores of the rock.
Gas&Oil8
10125032
Dix Communications - Gas & Oil April 2013 Edition 9www.OhioGO.com
Gas&Oil9
Quaker City (740) 679-2141Zanesville (740) 455-2141
St. Clairsville (740) 695-2141
1002591710127834
Gas & Oil April 2013 Edition - Dix Communications www.OhioGO.com10
Sales up over 21% in strong shale counties
Economic activity has increased in Ohio counties as a result of shale exploration and the early-stage produc-tion of oil and gas from shale reservoirs, according to a
new study by Cleveland State University’s Maxine Goodman Levin College of Urban Affairs.
The study analyzed local sales receipts and total employ-ment in areas categorized as strong shale counties – namely, the eastern Ohio counties of Ashtabula, Belmont, Carroll, Co-lumbiana, Cochocton, Geauga, Guernsey, Harrison, Mahon-ing, Portage, Stark, Trumbull and Tuscarawas.
Among the key findings: • Total sales activity in strong shale counties increased 21.1
percent, from $12.3 billion in 2011 to $14.9 billion in 2012. • The rebound in sales activity in strong shale counties be-
gan in 2011 and continued strongly through 2012. • The growth in sales activity among strong shale counties
is occurring in a part of Ohio that has experienced little invest-ment over the past several decades.
• Employment growth in strong shale counties is not yet evi-
dent. In 2011, strong shale counties began to experience a positive
growth trend in terms of estimated sales receipts. This trend continued and strengthened through 2012. Strong shale coun-ties not only reversed negative average sales trends from the previous three years, but also outperformed moderate shale counties, weak shale counties and non-shale counties.
While there is a clear positive trend in sales receipts, the em-ployment data show a modest increase of 1.4 percent in the av-erage employment yearly growth rate for strong shale counties between 2011 and 2012. Over the same period, moderate shale counties and non-shale counties experienced similar increases of 1.4 percent and 1.3 percent, respectively.
Trends at the county level also hold true at the Metropolitan Statistical Area (MSA) level. Strong shale MSAs experienced an average sales receipt increase of 17.3 percent between 2011 and 2012, outpacing moderate/weak MSAs (11.0 percent) and non-shale MSAs (6.4 percent).
Gas&Oil10
THIS IS PROFESSIONAL-GRADE ENGINEERINGTHIS IS PROFESSIONAL-GRADE ENGINEERING
10129742
YOUR SATISFACTION IS OUR GUARANTEE! WE WILL NOT BE
UNDERSOLD!
TALK TO OUR EXPERTS!1051 Southgate Parkway Cambridge, OH
whitesidesofcambridge.com
Gas • Diesel • 1 Ton • 3/4 TonLongbed • Shortbed • Crew Cab
Full Size • Medium SizeWhitesides Has A
Truck For You!whitesidesofcambridge.com
Ph: 432-2347 or 1-800-887-0934 877-243-8256Ask about our
GuaranteedCredit Approval
• www.whitesidesofcambridge.com • e-mail: [email protected] • Visit Us On autotrader.com
Trucks! Trucks!Trucks!
Dix Communications - Gas & Oil April 2013 Edition 11www.OhioGO.com
Sales up over 21% in strong shale counties
Gas&Oil11
Lori Frank, BrokerLori Frank, Broker REAL ESTATE
648 Wheeling Ave., Suite B, Cambridge 439-1111
28 E. Main, New Concord826-7557
Zanesville • (740) 454-6777Coshocton • (740) 622-7653Dennison • (740) 229-7231
New Lexington • (740) 343-4161
“We Always Have Time For You”
www.carolgoffrealestate.com
CAROL GOFF & ASSOCIATES OPERATES 6 OFFICES COVERING 10+ COUNTIES IN SOUTHEASTERN OHIO.
We are a full service Real Estate company handling both buyers and sellers of residential, commercial, farms, acreage and investment properties. We also offer auctioneering services and appraisals.
Visit us at www.carolgoffrealestate.com 10130140
Beautifully restored interior by local Architect. Paved parking in rear. Newer elec-trical. GREAT Commercial location at 809 Steuben-ville Ave., Cambridge, OH. $194,900 Call Carol Goff for more details 819-230
2br apt and a 1br apt upstairs. Tenants pay all utilities. The downstairs is rented as one, but can be made for 2 businesses. Large basement for storage and many updates throughout at 951-955 Steubenville Ave., Cam-bridge, OH. $189,000 Call Susan Crews for details 819-5829
HISTORIC DISTRICT LOCATION
SEVERAL DOWNTOWN PROPERTIES FOR SALE OR LEASEDOWNTOWN LOCATION
113 3rd St. S.E. New Philadelphia
330-364-5866email: [email protected]
www.surveyorsohio.com 1011
6581
The Colonel Taylor InnBED & BREAKFAST
Welcomes the oil & gas industry and all other professionals for our special weekday rates
633 Upland Road, CambRidge, ohio 43725740-432-7802 www.coltaylorinnbb.com
F WEDDINGSF LUNCHEONS
F TEAS F SPECIAL GROUP EVENTS
10130430owneR: CaRol Coats-goff
Gas & Oil April 2013 Edition - Dix Communications www.OhioGO.com12
The burgeoning gas and oil industry has led to the expansion of many ancillary busi-nesses.
One of those is in the city of Alliance, where the law office of Geiger, Teeple, Smith and Hahn has been in existence for over 50 years.
Almost from its inception the office has been involved in advising clients in the gas & oil industry. But, like many other businesses, the recent boom in Eastern Ohio has affected Geiger, Teeple, Smith and Hahn in many ways.
Brent A. Barnes, an associate in the office since 2010, was brought in specifically to work with the gas and oil industry. He’s not been surprised by the local boom, but says he’s learned to expect the unexpected.
His closest associates in the office are Dustin J. Hatherill and Matthew L. Mohr.Hatherill originally was hired for his expertise in title work, and until 2012 spent
the majority of his work in that field. Mohr is the so-called “baby” of the group. He is a recent graduate from the Uni-
versity of Akron and was brought in specifically to handle the expanding gas and oil cases.
“There’s always a disparity between what you’re taught (in law school) vs. the business,” says Mohr. “Oil and gas wasn’t a course that was offered, and it wasn’t tested on the bar (exam).”
The result, especially for Mohr, is that he has had to learn on the fly.“I’m as much a geologist as I am an attorney,” he laughs. “I do a lot of reading.”But the hard work pays off in rewarding ways.“Usually, we’re litigating law,” says Barnes. “Now we’re helping to create law.”Hatherill says he first experienced “a lot more hostile” environment between
Young lawyers riding the wave
landowners and companies, but it’s “calmed down” a little since then.
“It’s helped that I have a little more experi-ence now,” he says.
“From a legal standpoint it’s creating a lot of opportunities,” adds Hatherill. “We’re seeing an influx of lawyers from Texas and Louisiana who have experience in gas and oil coming up here.”
Barnes says it’s too early to get a sense of any consistency in how mineral rights disputes will be judged.
“It’s a shotgun — all over the place,” he says. “The courts are trying to balance two competing interests and come up with the best results for everyone.”
Hatherill says he enjoys the work but admits it’s “one of the hardest things I have had to tackle.”
“People think this is black and white and there’s always one answer to everything,” he says. “In most if not all of the cases that’s just not true.
“There’s really no authority, no guidance for us. We’re just taking it day by day.”
Mohr said he’s noticed a huge age gap in his work.
“There’s no in-between,” he says. “The law-yers working in oil and gas are either really young, like the three of us, or older because they’ve been involved with it since the 1950s.”
As for what lay ahead, Barnes says there’s no crystal ball.
“It’s impossible to predict the future,” he says. “We’re just here to ride the wave.”
Young lawyers riding
Rob TodorDix Communications
“Usually, we’re litigating law. Now we’re helping to create law.”
- Atty. Brent A. Barnes
Dustin J. Hatherill Brent A. Barnes Matthew L. Mohr
Gas&Oil12
Dix Communications - Gas & Oil April 2013 Edition 13www.OhioGO.com
Gas&Oil13
R & R Truck Sales 1650 E. Waterloo Rd., Akron330-794-9304
www.rrtrucksales.net
Daniel Ralich Vice President
330-352-4739$196,500
New & Used
New 2013 Mack Granite
w/Dickirson Rigup 500 HP, 18SP GU813
R & R Truck SalesR & R Truck Sales1650 E. Waterloo Rd., Akron1650 E. Waterloo Rd., Akron330-794-9304330-794-9304
www.rrtrucksales.netwww.rrtrucksales.net
Daniel RalichVice President
330-352-4739 196,500196,5002007 Mack Granite
CTP7132007 Mack Vision
CXN6132005 Mack Granite
CV7132007 Mack Vision
CXN613
10130155
10125528
Gas & Oil April 2013 Edition - Dix Communications www.OhioGO.com14
$1 billion natural gas processing plant opens in Kensington in May
A nearly $1 billion natural gas processing plant is under con-struction in Kensington, and
much of the end product will wind up heating homes in Stark County. The facility is slated to be the largest inte-grated Midstream service complex in eastern Ohio.
Local business owner Donna Man-full, who co-owns Manfull’s Service with her husband, Burton Manfull, said she has seen a lot of extra traf-fic already, while the plant is under construction, and she is being told the
onslaught of trucks hasn’t even begun.“We live right in the center of it all because we’re up on a hill right
across from the hill where the plant is being built, just about one quarter mile up Route 644. And we can see they’re just drilling all around us,” said Manfull. “But, everyone associated with the project so far has been so polite.”
Construction of the plant is being handled by Fagen Inc., me-
chanical and electrical contractors. The facility is being built on state Route 644, just south from Kensington, where it in-tersects with U.S. Route 30 and state Route 9. Kensington, in Hanover Township, Columbiana County, is a sleepy little community that has a post office but is unincorporated, with only an estimated 1,648 people residing there.
The natural gas processing plant was originally to be a part-nership that included Chesapeake Midstream Development, but when Chesapake Energy sold its Midstream interests to Access Midstream Partners, this changed. The plant is now being built by a partnership between Access Midstream Part-ners, out of Oklahoma City, Ok.; M3 Midstream, also known as Momentum, out of Houston, Tx.; and EV Energy Partners,
“We will invest significant capital and technical resources to develop this project in a responsible manner.”
- Frank Tsuru
Gas&Oil14
TRUST MATTERS. Especially When It’s Your Money.
Have you ever wondered who your financial consultant really works for? I work strictly for you. I work hard to build a relationship of trust by providing thoughtful, unbiased guidance and placing your interests first.
Invest with a knowledgeable financial consultant who’s on your side; someone who truly cares whether your investments are right for you.
Call today for more information or to schedule a consultation.
Heritage Financial & Investment Services, LLC.
Financial & Estate Planning/Investment & Insurance Services
Nikki V. Baker-Lude, CFP®, ChFC®
LPL Financial Advisor 117 N. Main Street, Suite 22
Woodsfield, OH 43793 Office: 740-472-9161 [email protected]
www.lpl.com/heritagefinancial
Securities and Financial Planning offered through LPL Financial,
a Registered Investment Advisor, Member FINRA/SIPC
10126947
Laurie HuffmanDix Communications
Dix Communications - Gas & Oil April 2013 Edition 15www.OhioGO.com
also of Texas. The partnership plans to invest approxi-mately $900 million over the next five years with the ma-jority of the capital invested in the first two years.
This is the first of several natural gas plants coming to eastern Ohio, and these facilities are critical in getting the gas cleaned and moved to commercial pipelines. The Co-lumbiana County plant will be connected to a sister plant in Leesville, Carroll County, and both to a midstream pipeline hub, about 40 miles south of Kensington, in Har-rison County. The plan is for the plant to process natu-ral gas from seven counties in the general area. The two plants combined are anticipated to process 800 million cubic feet of natural gas per day and to create 60 new jobs.
The Kensington plant is slated to open in May. It will take natural gas product from Chesapeake, among others, and will process it and feed it into commercial pipelines, including Dominion East Ohio, which serves a large por-tion of Stark County.
“We will invest significant capital and technical re-sources to develop this project in a responsible manner, utilizing the highest industry standards,” said Frank Tsu-ru, president and CEO of Momentum.
Mark Houser, EVEP’s president and CEO, remarked the company was delighted to be a part of this next step in the development of Utica Shale.
Construction has started on a $1 billion natural gas processing plant being built near Kensington. This is the first of several natural gas plants coming to eastern Ohio, and these facilities are critical in getting the gas cleaned and moved to commercial pipelines. The Columbiana County plant will be connected to a sister plant in Leesville, Carroll County, and both to a midstream pipeline hub, about 40 miles south of Kensington, in Harrison County. The plan is for the plant to process natural gas from seven counties in the general area. The two plants combined are anticipated to process 800 million cubic feet of natural gas per day and to create 60 new jobs. The Kensington plant is slated to open in May. It will take natural gas product from Chesapeake, among others, and will process it and feed it into commercial pipelines, including Dominion East Ohio, which serves a large portion of Stark County
Gas&Oil15
"Your Equipment Repair Specialist”
LRCLance Repair Company
Serving the Trucking and Heavy Equipment Industries
By Providing Shop, Field, and On Site Lube Services
(330)880-0361 10188 Forty Corners Road
Massillon, Ohio 44647
www.lancerepaircompany.com10110853 t h e s a f e t y g r o u p . c o m
The Safety Group, LLC10901 Clay Pike Derwent, Ohio 43733Phone (740) 685-8784 • Fax (740) 685-0288
We offer Wrangler and Bulwark FR ClothingPEC Basic Orientation and
Safeland USA/SafeGulf TrainingFor more information call 740-685-8784
10110433
Gas & Oil April 2013 Edition - Dix Communications www.OhioGO.com16
Carroll County Arts has announced a call for entries for a com-munity art show, “Rig it Up,” in April. The subject is the oil and gas industry as depicted in Carroll County.
Selected art work will be transported to and from Atwood Resort for display at the Oil Baron’s Ball on April 13.
The show is open to all adult artists with a limit of three entries per artist. Entry fees are $5 for each entry if a Carroll County Arts member and $10 for each entry if a non-member.
Art work will be screened for acceptance into the show. All medi-ums or two-dimensional work will be accepted. Photography, com-puter-generated art and three-dimensional art is excluded. All work must be framed and wired for hanging, not to exceed 48” framed. Saw-tooth hangers will not be accepted. Each work must be labeled on the back upper right corner to include artist’s name, address, tele-phone number, title, medium, and price if for sale.
Accepted entries will be judged and displayed at the Carroll Coun-ty Arts Center, 204 W. Main St., Carrollton. There are no separate categories for oil, watercolor, etc. Each work will be judged against the other. If an entry is not for sale, it must be labeled “NFS” and a
value indicated. Carroll County Arts retains a 30 percent com-mission on any work sold.
Awards to be given are $100 for first place, $75 for second place, $50 for third place and $100 for “People’s Choice.” The awards will be announced April 13 at the Oil Baron’s Ball. Winners will be notified by phone or mail.
Work is to be delivered to the Carroll County Arts Center the week of April 1 through April 6. The show ends April 30 and work must be picked up by May 4.
The Carroll County Arts Center is open Monday, Tuesday, Friday from 10:30 a.m.-4 p.m., Thursday from 1-8:30 p.m., Saturday 11 a.m.- 2 p.m., closed Wednesday and Sunday.
For further information, call 330-627-3739.
Art focusing on industry sought for show
Gas&Oil16
FULL SERVICE PARTS &
ACCESSORIES RETAIL STORE
RV RENTALS STORAGE
MAINTENANCE PROPANE
MOBILE SERVICE “Like” Us On
Onsite job trailer & RV experience.Servicing the local Gas & Oil Industry.
“Our mobile service truck will come to you when you need us!”
“Where All Your RV Needs Are Met!”
10070624
www.allprorvservice.com
Dix Communications - Gas & Oil April 2013 Edition 17www.OhioGO.com
Gas&Oil17
of Canton
330-456-6800
Bobcat of Akron
330-633-3999176 West Avenue,
Tallmadge, OH
Bobcat of Canton
330-456-68001534 Shepler Church Ave. SW,
Canton, OH
Bobcat ofCleveland216-663-9380
5095 Taylor Drive, Bedford Hts., OH
Bobcat ofCleveland-West440-327-0515
32200 Lorain Road, North Ridgeville, OH
Bobcat ofWooster
330-264-6474480 West Henry Street,
Wooster, OH
Bobcat ofYoungstown330-799-2555330 North Meridian Road,
Youngstown, OH
LEPPO RENTS LEPPO RENTS LEPPO RENTS LEPPO RENTS LEPPO RENTS LEPPO RENTS
10118583
Gas & Oil April 2013 Edition - Dix Communications www.OhioGO.com18
Number of patients increasingWhile the oil and gas industry has
only scratched the surface of the Utica Shale, insofar as Mid-
stream development and drilling are concerned, representatives from Mercy Medical Center say outpatient and Statcare volume has already increased in Carroll and Tuscarawas counties, due to added numbers of workers in the area. And, while the medical center has an expansion of its Emergency Department under construction at the main campus, in Stark County, it will continue to assess the growth of patient services and make further adjustments as needed.
Rosemary Brace, manager of the Carrollton Statcare facility, and Bar-bara Frustaci, administrative director of the Offsight Rehabilitation Ser-vice Line, said they have also seen a significant increase in the center’s Work Health & Safety Occupational Medicine Services. While they have keep the hours of operation the same, they have had to bring extra staff in at times to accommodate the additional patients they have received due to the emerging gas and oil industry. Mercy Medical Center has Statcare as well as Occupational Medicine locations in Stark, Carroll, and Tus-carawas counties that offer immediate treatment of work-related injuries and illnesses, physical exams, drug screens, breath alcohol testing, ran-dom testing program management, hair follicle drug testing, pulmonary/respiratory/examinations, 24-hour occupational nursing, on-site nursing,
Photo courtesy of Mercy Medical CenterKaren Coughlin, director of cancer services at Mercy Cancer Center, in Stark County, answers questions and gets participants registered for a cancer study in 2012
Continued on pg. 30
audiometric and vision screenings, laboratory services, certified medical officer review, training/health/wellness programs, and OSHA compliance programs. The center also provides commer-cial driver sleep testing, among many other services, and it has a laboratory and diagnostic service facility in Louisville, within Stark County, where Chesapeake Energy is currently building a
Gas&Oil18
Barb Wire, Vinyl,Board Fence
Residential - Agricultural - Privacy FencePole Barns - Garages
Ridgeline Fencing330-204-7805
10125008
Festivals, homecomings, music, parks, camps, museums, lakes for boating, and
great restaurants to suit everyone. Check our website often for
updated lists of things happening in the county!
www.carrollcountyohio.com
877-727-010310125013
159 WEST HIGH AVENUENEW PHILADELPHIA, OH 44663
Miller’s Clothing and Shoes
(330) 364-2688
WRANGLER FR
CARHARTT
STEEL TOE 11”
WATERPROOF
1011
6254
Laurie HuffmanDix Communications
Dix Communications - Gas & Oil April 2013 Edition 19www.OhioGO.com
Number of patients increasing
Gas&Oil19
Pennsylvania
New York
OhioUtica Shale Region
Affordable Housing...located in the heart of the Utica Shale Region
Cranberry Village100 Treesdale Drive Cranberry Twp., PA 16066(724) 776-3255
Forest Park Village102 Holly Drive Cranberry Twp., PA 16066(724) 776-3198
Pine Valley Estates1283 Sugar Hollow Road Apollo, PA 15613(724) 478-4395
Port Royal Village485 Patterson Lane Belle Vernon, PA 15012(724) 929-4224
Somerset Estates1873 Husband Road Somerset, PA 15501 (814) 443-3533
Suburban Estates33 Maruca Drive Greensburg, PA 15601(724) 834-0931
Sunny Acres272 Nicole Lane Somerset, PA 15501(814) 445-6071
PENNSYLVANIAOHIO
UMH owns and operates modern manufactured-home communities offering the highest-possible
value per dollar for home ownership.
Colonial Heights917 Two Ridge Road Wintersville, OH 43953(740) 314-5182
Lake Sherman Village7227 Beth Avenue SW Navarre, OH 44662(330) 484-4767
Meadowood9555 Struthers Road New Middletown, OH 44442(330) 542-3312
Sandy Valley Estates11461 State Road 800 NE Magnolia, OH 44643(330) 866-3873
Southern Terrace1229 SR 164 Columbiana, OH 44408(330) 542-3312
Spreading Oaks Village7140-29 Selby Road Athens, OH 45701(740) 593-3952
UMH.com
Explore our communities online!
Licensed by the Ohio Department of Financial Institutions and the Pennsylvania Department of Banking. NMLS #200331
Quality Homes & Communities
RENTALS AvAiLAbLE NOW! Move-in ready!
ONE-yEAR
LEASE-TO-OWN!
for qualified buyers
Financing available
for qualified buyers!
10101379
Gas & Oil April 2013 Edition - Dix Communications www.OhioGO.com20
Adjacent lands may be drilled without consent
After several months of trying to set up a face-to-face meet-ing with state representatives
in regards to questions about Ohio Revised Code 1509.022, Kathi Albertson of Guernsey County fi-nally succeeded in a electronic person-to-person meeting via Skype, between attendees at a meeting at the Cambridge campus of Zane State College and State Reps. David Hall and Andy Thompson at the Statehouse in Columbus.
Joining Albertson and several local residents and Farm Bureau members were Dale Arnold, director of energy policy at the Ohio Farm Bureau, and State Rep. Brian Hill.
The point of contention by Albertson is ORC Section 1509.022 , which refers to the location of wells using directional drilling — more commonly referred to as horizontal drilling — and states, “Except as provided in 1509.021 of the Revised Code, the surface location of a new well that will be drilled using directional drilling, may be located on a parcel of land not in the drilling unit of the well.”
Albertson said she did not understand an email sent to her from Thompson on behalf of Hall’s explanation as to how this could be beneficial to land owners who own property adjacent to state parks or the Muskingum Watershed Conservancy District.
Albertson noted that with her original lease with Enverest the as-sumed intent was that any well drilled [on her property] would be
Judie PerkowskiDix Communications
vertical and would then include that parcel of land in the drilling unit. In other words, Albertson said she knows she is bound by the old lease, but takes exception to the state adding ORC 1509.022 which allows for a well to be drilled on land using horizontal drill-ing that would extend beyond her property and keep her from get-ting royalties.
“This issue extends beyond my land and is a potential problem for anyone with land adjacent to state parks or the MWCD,” said Albertson. “In both instances the plan is to extract gas and/or oil from those lands by setting the drilling pads on adjacent proper-ties.”
Hall’s explanation was that the “intent of ORC 1509.022 was to form a partnership with drilling companies and land owners. The rule could facilitate unitization of private property with state park lands.”
Unitization is when a gas and oil producer combines several pro-ducing leases over a pool of gas and/or oil that would otherwise be unrecoverable. Everyone in the unitized field will share in the production based on their acreage in the unit.
Hall also said the issue is more complex that had previously been believed. And, it is not clear whether or not the state owns all the mineral rights under state park lands.
Dale Arnold pointed out that 80 percent of the gas/oil leases in Ohio were older leases. Additionally, leases are binding contracts
Gas&Oil20
800 South 15th Street • Sebring, Ohio 44672 • www.copelandoaks.com
“I’m not ready yet.”
Move to Copeland Oaks while still active, and you can enjoy everything you do now, only more. With maintenance-free living, wonderful friends, and quality health care and services available if the need arises, now is the ideal time to secure your future. And peace of mind. When you’re ready, call us at (800) 222-4640.
OhiO’s COmplete seniOr living DestinatiOn
(What is it that you’re not ready for?)
Copeland Oaks welcomes people of all faiths.
At Copeland Oaks, we focus on yourhealth and wellness so you can fully enjoy life.
800 South 15th Street • Sebring, Ohio 44672 • www.copelandoaks.com
“I’m not ready yet.”
Move to Copeland Oaks while still active, and you can enjoy everything you do now, only more. With maintenance-free living, wonderful friends, and quality health care and services available if the need arises, now is the ideal time to secure your future. And peace of mind. When you’re ready, call us at (800) 222-4640.
OhiO’s COmplete seniOr living DestinatiOn
(What is it that you’re not ready for?)
Copeland Oaks welcomes people of all faiths.
PrOgrAm theme“PArAdise is Where i Am...” May 18, 2013 5:00 pm - 8:00 pm • Hors d’oeuvres, Dinner, Dessert@Copeland Oaks, Murphy Auditorium$100/ticket, Event benefits the Copeland Care FundLimited seAtiNg AVAiLABLe*a portion of your ticket cost is tax-deductible
gOLd LeVeL sPONsOrsDr. and Mrs. Donald B. Swegan Mr. and Mrs. Robert SeboWilliams & Case Insurance Agency
FOr mOre detAiLs Or tO reserVe yOur seAt ANd diNNer, please call 330-938-7769.
COPeLANd OAKs CuLturAL series diNNer
KeyNOte sPeAKerJim tresseL
Former Ohio State University Head Football Coach
and current University of Akron Vice President of Strategic Engagement
erL
Former Ohio State University Head Football Coach
and current University of Akron Vice President of Strategic Engagement
10129479
Continued on pg. 30
Dix Communications - Gas & Oil April 2013 Edition 21www.OhioGO.com
Adjacent lands may be drilled without consent
Anyone who has ever smelled freshly popped popcorn knows the scent brings back memories of movie the-aters.
Now, thanks to Rex Energy, residents at Great Trail Care Center can experience those memories with freshly popped popcorn.
Rex Energy stepped in to assist Great Trail Care Center after its popcorn popper broke and could not be replaced because of the center’s small activities budget.
“Friday was our first in-house movie day with the new pop-per and it smelled just like a theater,” said Tonya Howell, Great Trail referral manager. “Our residents loved it. Special thanks to Debbie Herrington, Rex’s office manager, for always being so willing to help out. We will be using the popper for in-house and marketing activities.”
The center delivered 62 bags of popcorn to the residents at Carroll County Apartments in Carrollton for its movie night and plans to do the same at the Minerva Senior Apartments.
“The residents told me they felt like they were actually at the movies and it was so nice as they haven’t been there in years. They said they could smell the popcorn down the halls and it made them want to come out and watch the movie with the
Rex Energy brings back popcorn for movies
Submitted PhotoEnjoying some of the popcorn made with a popcorn popper donated by Rex Energy to Great Trail Care Center are (from left) Great Trail Care Center Administrator Sarah Sonego, Great Trail Activities Director Tara Henderhan and Rex Energy representative Debbie Herrington.
group, as they have the option of watching it in their rooms,” said Tara Henderhan, Great Trail activities director. “It was greatly appreciated by all.”
Gas&Oil21
10130141
CRUDE AWAKENINGRepresenting Owners of Mineral Interests and Land OwnersRepresenting Owners of Mineral Interests and Land Owners
• Lease Review, Negotiations and Counsel
• Dormant Mineral Act
• Lease Forfeiture and Held by Production Issues
• Estate Planning • Litigation • Business Transactions
– Celebrating 60 Years in the Practice of Law –
Tribbie, Scott, Plummer & Paddenw w w . t s p p l a w . c o m
139 West Eighth St . , Cambridge • 740-432-6322139 West Eighth St . , Cambridge
Gas & Oil April 2013 Edition - Dix Communications www.OhioGO.com22
The composition of the raw natural gas extracted from producing wells depends
on the type, depth, and location of the underground deposit and the geology of the area. Oil and natu-ral gas are often found together in the same reservoir, or natural gas may be found separately. Before natural gas can be sold commer-cially, it requires processing to clean the raw natural gas by sepa-rating impurities and various non-methane hydrocarbons and fluids
to produce pipeline quality dry natu-ral gas.
Raw natural gas is commonly collected from a group of adja-cent wells and is first processed at the collection point for remov-al of free liquid water and natural gas condensate. The condensate is usually trucked to an oil refinery, and the water is disposed of as wastewater. The raw gas is then pipelined to a gas process-ing plant where the initial purification is the removal of any acid
Gas&Oil22
Williams Toyota Lift
Supplying the Material Handling Industry for Over 40 Years!
Phone (330) 866-2121 Fax (330) 866-3701
9462 Main Ave SE East Sparta, Ohio 44626
Williams Toyota Lift Williams Toyota Lift
10068382
Anderson Propane Services, LLC has been in the bulk propane business since 1999 and has 35 years of propane experience. We are a family owned business and have expanded our business to the Muskingum County area as
well to better serve the area allowing us to cover a geographical territory from Columbus to Marietta.
Anderson Propane Service, LLC
COMMERCIAL
• Oil Field Industry• Portable dispensing units for filling D.O.T. tanks 20, 30 & 40 lbers • Units on Skids• L.P.G Gas Hoses 350 P.S.I working Pressure• High Pressure Regulators to deliver gas where you need it.• 100 gallon to 1000 gallon ASMF tanks for little jobs to big jobs heating frac tanks to flaring gas in the drilling or completing stages• Tanks for small heaters to campers for your workers (your most important asset)• We offer 20 – 30lb cylinder cages with OSHA warning stickers.• Safeland Certified
RESIDENTIAL
Highest Quality ServiceLock Ins to hedge against high winter ratesOption to pre-buy your gas in the summer with monthly installments & budgets
We have a combined 90,000 gallons of Propane Storage, 4 delivery trucks, 4 service trucks
18003 Suite #1 • Caldwell Ohio 43724 1-888-596-5153
Office 740-732-2030 • Cell 740-581-2788
• Safeland Certified
10094452
Dix Communications - Gas & Oil April 2013 Edition 23www.OhioGO.com
Norm ShadePresident,
ACI Services
Natural gas processing plants critical to Utica Shale development
The composition of the raw natural gas extracted from producing wells depends
on the type, depth, and location of the underground deposit and the geology of the area. Oil and natu-ral gas are often found together in the same reservoir, or natural gas may be found separately. Before natural gas can be sold commer-cially, it requires processing to clean the raw natural gas by sepa-rating impurities and various non-methane hydrocarbons and fluids
to produce pipeline quality dry natu-ral gas.
Raw natural gas is commonly collected from a group of adja-cent wells and is first processed at the collection point for remov-al of free liquid water and natural gas condensate. The condensate is usually trucked to an oil refinery, and the water is disposed of as wastewater. The raw gas is then pipelined to a gas process-ing plant where the initial purification is the removal of any acid
gases (hydrogen sulfide and carbon dioxide), if present. Next, wa-ter vapor is removed from the gas using a process such as glycol dehydration.
In addition to methane, which is the primary component of pipeline quality natural gas, the “rich gas” currently most sought after in the Utica Shale play contains other hydrocarbons such as ethane, propane and butane. Although these hydrocarbons are typically liquids at underground pressures, they become gaseous at atmospheric pressure. Collectively, they are called natural gas liquids (NGLs).
These valuable NGLs are recovered in large gas processing plants using a low temperature cryogenic distillation process in-volving expansion of the gas followed by distillation in a demeth-anizing fractionating column. Some gas processing plants use a lean oil absorption process rather than the cryogenic expansion process.
The residue gas from the NGL recovery section is the final, purified sales gas – mostly methane - which is pipelined to the end-user markets. The gas processing plant may include a frac-tionation train that further separates the valuable NGL stream into ethane, propane and butane for sale. For economic reasons, not all
Gas&Oil23
Continued on pg. 26
UEO (Processing)
UEO (Fractionation)Markwest (Processing)
New Eastern Ohio Gas Processing & Fractionation Plants
NiSource/Hilcorp (Processing)
MarkWest (Processing &Fractionation)
Gas & Oil April 2013 Edition - Dix Communications www.OhioGO.com24
It’s not easy being ‘techno Amish’
I describe myself as being techno Amish.
Not that I will not cross over and use new things, but hav-ing to be instructed on how to use it, and gaining some kind of mastery of it really gives me a lot of consternation. Thank God my daughter graduated from that I.T. program. I put her to work for me and let her upgrade, fix, and teach me all the nuances of the personal computer. Now, I find out that
we will all be working on a Pad and connected by a cloud somewhere. No wonder it has been raining and snowing so much.
One thing that hasn’t changed is the relationship that needs to be forged between the landowner and the oil and gas company. As I have explained over the last several months, we have come a long way since I rode around with my dad and took right of ways for a quarter a rod. Today there are guys showing up to sign groups at meetings offering more money than most of us have seen in our lives. They drive Mitsubishi cars, have ear rings, and enough papers for you to sign that you thing you are taking out a new loan on a car.
Don GaddLandman
But, it has to be good. Right? Someone that represents you has ne-gotiated a great deal and everyone gets to sign the same lease, right of way, or whatever else will be shoved in front of you.
Not so fast.If you are not sure, then look it over. Ask the agent to meet with you
again and write down your questions as you read through the agree-ment. Anything you sign will affect not only you, but all those that will own the property after you. It’s great getting drilled and someday getting royalties, but in order to get that money you go back to what I have been talking about these last several months. Someone has to build a pipeline.
I recently met with a family that had a right of way agreement hand-ed them and they were unsure whether they were going to sign it. I had talked to a neighbor a few days before that on the phone and knew the offer the company had offered him. I agreed to meet.
The first thing I assured them of was that not all oil companies are big bad J.R. Ewing types. (He died) Then I talked to them about their property as each agreement has to be tailored to both parties negotiat-ing the agreement. I found out they were signed with a different oil company than the one drilling next door and they only owned less than 40 acres. It was pretty likely they wouldn’t be receiving royalties any time soon.
So, we got into the meat of the issues. Their home set way back off the road and they only owned 300 feet of frontage. The right of way
Gas&Oil24
10127907
702-469-3078
We’ll beat any local price – guaranteed.
Dix Communications - Gas & Oil April 2013 Edition 25www.OhioGO.com
they were presented was 100 feet in width with the ability to build additional lines as needed. No map, no location of the line, and only that they would survey before installing and of course the normal language that you couldn’t build upon it.
To them that meant that with one line down the middle of their field they could never build along the road unless it was in a swamp. If more than one line was put in, then they were looking at putting their outhouse in a tree overlooking the creek and hoping they got permission to do that. Obviously, this agreement wouldn’t work for them. Even at 1,000 acres I probably wouldn’t have recommended it.
So we set down some reasonable changes like giving the company 50 foot in width during construction and 25 feet after installation. The right of way was changed to one line only. If the company did a good job, then they could grant another right of way if needed. And since the line would only be coming from one group of wells and not a transport line, we placed a cessation cause in there that would make the right of way null and void after 24 months of no oil and or gas coming through the line. Finally, we adjusted the price to what the neighbor was getting (almost) instead of the 1/3rd amount they had been offered. All reasonable changes that made the landowners agreeable, but most of all an agreement that would get signed.
I know the young man that was sent out there may be scratching his head and may even try to bluff his way through the changes But, in the end, he will learn something about dealing with people. It’s a nice job and you make a lot of money doing what the boss tells you, but in the end making a good deal for all is what it is all about.
J&D Automotive andTransmissions
One Mile from Interstate 70 on East Side of Zanesville
on Richards Road Across from Vocational School.
M-F 8-5pm
YOUR COMPLETE
AUTOMOTIVE HEADQUARTERS
357 Richards Rd Zanesville, OH740-454-8013 www.janddtrans.com
Complete Auto and Truck Service Center
Seven Service Bays. Most Repairs Done in One Day!Parts and Labor For 12 Months
or 12,000 Miles Warranty
Foreign - Domestic - Commercial
Reputation Built On Quality. We can Handle Any
Transmission!Treating Customers Right Since
1984
1010
6659
Gas&Oil25
At Kenworth of Canton, we specialize in the repair and maintenance of medium and heavy duty trucks. Our Service department has over 40 years of combined mechanical certifi ed technicians, along with 10 service bays. Our parts department has a large inventory of class 7 & 8 truck parts to meet your needs. We also offer a free delivery service to your location. Our Richfi eld location has a full ser-vice body shop.
Give Kenworth of Canton a call and let us help keep your fl eet on the road!
330-456-4496 CantonToll Free: 888-844-4422330-659-4123 Richfi eld
www.hissonggroup.com& RICHFIELD& RICHFIELD& RICHFIELD
10128191
Gas & Oil April 2013 Edition - Dix Communications www.OhioGO.com26
gas processing plants include this capability, and the NGL stream is instead transported as a mixed product to standalone fractionation complexes located near rail terminals or liquid pipelines for ship-ment to refineries or chemical plants that use the components for feedstock.
The development of Ohio’s Utica Shale is currently hampered by a lack of gas processing facilities. Investments of more than $10 billion in processing facilities, pipelines and compression facilities are required to get the pipeline gas and NGLs to market. Seven processing-separation plants for natural gas and NGLs have been recently completed or are near completion in Eastern Ohio.
Columbiana County’s Kensington Plant is a state-of-the-art cryo-genic processing plant for producing pipeline quality natural gas, built and operated by Utica East Ohio Buckeye (UEO), a partner-ship of three companies. NGLs will be stripped out and pipelined from Kensington to UEO’s new processing, natural gas liquids frac-tionation, loading and terminal facility at Scio in Harrison County. Both plants are scheduled for completion in the spring of 2013.
MarkWest, already the largest processor and fractionator of natu-ral gas in the Appalachian Basin, is building two new cryogenic processing facilities in Cadiz in Harrison County. Both are sched-
“NATURAL GAS PROCESSING PLANTS” from pg. 23 uled to begin operations in during 2013. A smaller, temporary facility has been in operation since the fall of 2012.
The Cadiz complex will also include a de-ethanization facility where ethane will be removed from the gas stream and delivered into the new ATEX Express ethane pipeline that will run 1,230 miles from Pennsylvania to the Gulf Coast. The propane and heavier natural gas liquids will then flow via pipeline to a new Harrison County fractionation plant for further separation.
MarkWest is also building an interim natural gas refrigera-tion processing plant at its Seneca complex near Summerfield in Noble County. That will be followed by a new cryogenic gas processing facility expected to be in operation at Seneca by the fall of 2013, and a further cryogenic facility later in the year.
NiSource Gas Transmission and Storage’s Midstream and Minerals Group LLC and its partner, Hilcorp Energy Co., have plans for a new Utica cryogenic processing network to be op-erational in the fall of 2013. Called Hickory Bend, it includes a pipeline and a natural gas processing plant at an unspecified location in Mahoning County.
These and other gas infrastructure developments in east-central Ohio‘s Utica play are expected to alleviate constraints by mid-year 2013, which will result in rapid increases in Ohio natural gas and NGL production. Utica Shale gas infrastructure development is expected to continue through at least 2015. This will spur more well drilling and increased production longer term as economics justify them.
Gas&Oil26
10107331
Yoder Fence& Brush Removal LLC
7239 Township Road 654, Millersburg, Ohio 44654
Phone: (330) 359-6136Cell: (330) 763-0497Fax: (330) 359-0825
Free EstimatesNo job too large or small!
We build all kinds of farm fence.
10109426
23 YearsExperience
TOOLSOF THE TRADE
Cambridge134 North 11th Street
Cambridge, OHPhone: 740 432-2712
Cadiz634 Lincoln Avenue
Cadiz, OHPhone: 740 942-1223
Newcomerstown102 N. River Street
Newcomerstown, OHPhone: 740 498-8131
New Concord51 East Main StreetNew Concord, OH
Phone: 740 826-4160
Berlin(Formerly Kandel’s Hdwe.)
German Village CenterBerlin, OH
Phone: 330-893-2812
Newark67 West Main St.
Newark, OHPhone: 345-7515
ormehardware.doitbest.com
Whether you’re out on the rig or in your
own backyard
10062538
We have six convenient locations to serve you!
Orme Hardware
Dix Communications - Gas & Oil April 2013 Edition 27www.OhioGO.com
Gas&Oil27
TWO EXCITING COMMERCIAL DEVELOPMENT/SHALE-GAS PLAY PROPERTIES FOR SALE/LEASE ON I77-DOVER AND CAMBRIDGE!!
OPEN HOUSE / SATURDAY, APRIL 20
SATURDAY, APRIL 20 / 10:00 am - 5:00 pmVisit Hartzler’s for Special Sales, New Display Models & Refreshments
SKYLINE FACTORY TOUR / 11:00 am - 2:00 pmTake a tour through the Sugarcreek plant and see how our homes are built. We will provide a shuttle from our lot to the factory.
10:00 am - 5:00 pm
Special Sales, New Display Models& Refreshments
1457 St. Rd. 39 NW, Dover, OH 44622 / www.hartzlers.com
10123518
Gas & Oil April 2013 Edition - Dix Communications www.OhioGO.com28
What are those little checks?Is the lessee sending you, the
landowner, little checks every month? Every three months? Do
you know what they are? You need to know.
As we continue to represent land-owners, a regular theme has emerged. Producers love to send little checks. Does this mean that the lease is still valid? By cashing those little checks, has the landowner agreed that the producer still has a valid lease? What the check is, and what it claims to be,
may be very different.• Royalties — A royalty check is what everyone hopes to receive.
If the well (or wells) on the land are producing gas or oil, the pro-ducer is supposed to send the landowner a share of the proceeds — historically 12.5%, but more these days. Some wells do not produce much, so the check may only be $10 or $20. That’s okay. Not every well is as gusher.
However, be suspicious if the check has remained the same for years. Some producers have sent “royalty” checks when, in fact, there has been no production. A royalty ought to fluctuate: it de-
Ethan VesselsMarietta Attorney
pends on the price of gas (or oil) and how much the well produced. If you have received the same $5 “royalty” every month for five years, you should be investigating the actual production.
• Delay rentals — When a landowner signs a brand new lease, the lessee is promising to produce gas or oil from the land. However, the lessee usually cannot get a rig out the fol-lowing week to drill. So, the lessee will often promise to make a payment, usually an amount per acre and per month, to pay the landowner until the well is drilled. This keeps the lease active, even without production.
How long can the lessee do that? Some producers have been routinely paying “rentals” for decades, and then claim that these payments hold the lease indefinitely. As landowner advocates, we hold the opposite view.
The Monroe County Court of Common Pleas recently is-
What the check is, and what it claims to be, may be very different.
Gas&Oil28
Properties AvailableApartments, Homes
Warehouse Space AvailableShort or Long Term Leasing
Fully Furnished & All Inclusive Rates
Call PatMac. [email protected]
10095469
TDIAMOND
FENCINGAGRICULTURAL AND EQUINE
FREE Estimates330.739.4500
•Hi Tensile •Board Rail •Non-Climb •Vinyl Kote •Chain Link •Woven Wire
Now AvailableClearing & Dozer Work
10128266
Specializing in…Horse & LivestockUtility & Landscape
Equipment & FlatbedEnclosed CargoDump & Aluminum
Why trust your cargo to anything less than USA quality?
Ph/Fax: 330.698.1555 Mon.-Fri.: 8AM to 5PM; Sat. till Noonjrtrailersales.com
• Sales• Service
• Installation
• Repairs• Parts
• Supplies
1012
7688
Continued on pg. 33
Dix Communications - Gas & Oil April 2013 Edition 29www.OhioGO.com
pends on the price of gas (or oil) and how much the well produced. If you have received the same $5 “royalty” every month for five years, you should be investigating the actual production.
• Delay rentals — When a landowner signs a brand new lease, the lessee is promising to produce gas or oil from the land. However, the lessee usually cannot get a rig out the fol-lowing week to drill. So, the lessee will often promise to make a payment, usually an amount per acre and per month, to pay the landowner until the well is drilled. This keeps the lease active, even without production.
How long can the lessee do that? Some producers have been routinely paying “rentals” for decades, and then claim that these payments hold the lease indefinitely. As landowner advocates, we hold the opposite view.
The Monroe County Court of Common Pleas recently is-
Gas&Oil29
www.sandyvalleychiro.com
11201 State Rt. 800 N.E., Suite D Magnolia, Ohio 44643Monday - Thrusday 9am - 12:30pm; 2-5:30pm • Friday 9am-1pm
We Are BWC Certifi ed/Most Insurance Accepted/We Are A Medicare ProviderA larger variety of insurance now being accepted!
Welcome Dr. Justin Herceg
to the practice and community
330-694-1695
Pain Relief Neck Pain Disk Herniation Weight Loss
Products Sciatica Back Pain Carpal Tunnel Headaches Leg Pain Rehabilitation Massage
Therapy
10121162
Gas & Oil April 2013 Edition - Dix Communications www.OhioGO.com30
“ADJACENT LANDS MAY BE DRILLED” from pg. 20
“NUMBER OF PATIENTS INCREASING” from pg. 18
consolidated field office.“Mercy Medical Center is a preferred provider for the Utica Shale
oil and gas industry,” said Frustaci. “The biggest push has been in Carroll County, so far. But, oil and gas activity is also picking up in Tuscarawas county, so patient numbers are also growing there too.”
Richard Regula, director of market outreach for Mercy Medical Center, said he reached out to people in the gas and oil industry to make them feel welcome in the area and to let them know their needs will be accommodated. “The people I talked to told me since they are not welcome in New York and there was a lot of prejudice against them in Pennsylvania, they were relieved to receive a welcome in Ohio,” said Regula. “And, once I started to research and learn more about the needs of the industry, I was surprised. I had thought more emergency room facilities would be needed. But, since these com-panies take such good safety measures — they have good safety re-cords. What I found that they will need more of, is family medicine. These workers are moving their whole families here and are happy to be doing so, and they intend to stay here for a long time.”
Gas&Oil30
and cannot be changed by law. “One of the easiest ways to address the ORC 1509.022 issue would
be to create a rule that required a surface rights agreement before a drilling rig is placed on a parcel of land for the purpose of extracting resources from under state or federal lands,” said Arnold.
Albertson said that she had spoken to other land downers with prop-erty adjacent to Salt Fork State Park and the Muskingum Conservancy lands and that they, the landowners, are not opposed to drilling, they just want to be treated fairly.
Reps. Hall and Thompson said that given the feedback at the meet-ing, adjustments might need to made on this issue and that House Bill 133 needs more work.
House Bill 133 Summary• Creates the Oil and Gas Leasing Commission to oversee and facili-
tate the leasing of land that is owned or controlled by a state agency, including a state university, for the purpose of the exploration for, de-velopment of, and production of oil and natural gas resources.
• Repeals prior authority for certain state agencies to enter into oil and natural gas leases.
• Establishes four classifications for all property that is owned or controlled by a state agency, and requires each state agency to inven-tory and classify each parcel of land that is owned or controlled by the agency.
• Prohibits a state nature preserve from being nominated or leased under the act for the purpose of exploring for and developing and pro-
ducing oil and natural gas.• Authorizes a state agency, beginning on the act’s effective date
(Sept. 11. 2011) and ending on the effective date of the rules adopted by the Commission under the act, and in consultation with the Com-mission, to lease a formation within a parcel of land that is owned or controlled by the state agency for oil and gas drilling.
10127991
Dix Communications - Gas & Oil April 2013 Edition 31www.OhioGO.com
Ohio Valley Oil & Gas Assn. adds staffAs part of its continuing effort to aid regional busi-
nesses in gaining access to the economic opportuni-ties presented by the Marcellus and Utica shale, the
leadership of the Ohio Valley Oil & Gas Association has added two staff members.
Lisa Duvall has been named as industry and community relations director, and Tricia Zaccagnini has been named as membership renewal and event manager.
“The impact of the Marcellus and Utica shale drilling is enormous in this region,” said Matt Steele, OVOGA board president. “The mission of the OVOGA is to educate our mem-bers, provide networking opportunities and help businesses grow. Lisa and Tricia will play integral roles in this.”
“The OVOGA is pleased to have professionals of this caliber join our team and help position our members in the forefront of the shale gas revolution,” said Josh Gasber, vice president of the OVOGA board of directors.
“The shale industry represents a tremendous opportunity for this area,” Duvall said, “and I look forward to helping members of the OVOGA make the connections that lead to growth.”
“With the influx of oil- and gas-related companies and peo-ple in the Ohio Valley, I am proud to be a part of the OVOGA which promotes Valley businesses and organizations to those new residents,” Zaccagnini said. “I find it an admirable concept
and hope that through the OVOGA’s efforts, local companies will see an increase in business.”
A native of Belmont County, Duvall is a graduate of Bellaire High School and West Liberty State College with a bachelor of arts degree in secondary education. She was a reporter and associate lo-cal news editor at The Times Leader; field representative and press
Lisa Duvall Tricia Zaccagnini
Gas&Oil31
PointPointStonyStonySUPPLY
2010 PRO RETAILER OF THE YEAR
7880 Stony Point Rd. N.W.Sugarcreek, Ohio 44681
330-852-4512Monday-Friday 6:00am to 5:00pm
Sat. 7:00am to 11:30am
Culvert Pipe In Stock:(Corragated with Smooth Interior)
DeWalt 18-V Reciprocating Saw
(DC385K)
DeWalt 18-V 2 Tool Combo Kit
(DCK255X)
DeWalt 18-V Impact Drive Kit
(DC825KA)
DeWalt 18-V 4 Tool Combo Kit
(DC455X)
DeWalt 18-V 1/2” Drill/Driver/Hammer Drill Kit
(DC0950KX)
DeWalt Electric Reciprocating Saw
(DW304PK)
4”x20’ w/Bell End6”x20’ w/Bell End8”x20’ w/Bell End10”x20’ w/Bell End12”x20’ w/Bell End15”x20’ w/Bell End
18”x20’ w/Bell End24”x20’ w/Bell End30”x20’ w/Bell End36”x20’ w/Bell End42”x20’ w/Bell End48”x20’ w/Bell End
10128658
Continued on pg. 34
Gas & Oil April 2013 Edition - Dix Communications www.OhioGO.com32
Ohio BWC offers safety services at no additional cost to employers
Looking for additional safe-ty resources to help protect your workers in Ohio?
The Ohio Bureau of Workers Compensation offers safety ser-vices at no additional cost.
The BWC provides workplace safety services and programs at no additional cost to your company — they’re included in the pre-miums you already pay for Ohio coverage.
Offerings included in your Ohio workers’ comp premiums, from
training to on-site consulting services, and safety programs to grants, the Division of Safety & Hygiene is available to help you prevent workplace accidents and injuries. A veteran staff of safety and health, industrial hygiene and ergonomics profession-als provide consultation and training for your company, either on-site or at a BWC office near you.
In the end, your company can save money and, more impor-tantly, save lives.
Also, our annual Ohio Safety Congress & Expo — the fore-most occupational safety and health event in the Midwest — is coming to the Greater Columbus Convention Center April 9-11. This event features informative speakers, more than 150 educa-tional sessions and a dynamic Expo Marketplace.
In the meantime, don’t forget to report your payroll and pay your premiums before the Feb. 28 deadline. This covers the July 1 to Dec. 31, 2012, payroll period for private employers. To report payroll and pay premiums online, visit ohiobwc.com and click the report & pay premium link on the home page. Our Go-green discount provides a one percent discount per payroll period (up to $1,000 for private employers) when you file your payroll and pay your premium in full on ohiobwc.com.
Scott St. ClairBureau of Workers Comp.
Regional Business Consultant
Gas&Oil32
Action Sport Cycles
11333 Union Avenue, NEAlliance, Ohio 44601
330-821-8777
GRIZZLY® 550 EPS
Shown with optional accessories. ATV model shown is recommended for use only by riders 16 years and older. Yamaha recommends that all ATV riders take an approved training course. For safety and training information, see your dealer or call the ATV Safety Institute at 1-800-887-2887. ATVs can be hazardous to operate. For your safety: Always avoid paved surfaces. Never ride on public roads. Always wear a helmet, eye protection and protective clothing; never carry passengers; never engage in stunt riding; riding and alcohol/drugs don’t mix; avoid excessive speed; and be particularly careful on difficult terrain. Specifications subject to change without notice. *Based on ADP competitive comparison study of CVT belt components reported in warranty and non-warranty repair order records for 2007-2010 model year CVT belt-driven 4x4 ATVs 400cc and above. ©2012 Yamaha Motor Corporation, U.S.A. All rights reserved. • yamaha-motor.com
™
your hunt for the ultimate atv is over.Out here, don’t take chances. Take a Yamaha Grizzly. Even on the most grueling terrain, the Grizzly 700 FI Auto 4X4 EPS gives you a rock-solid, smooth, comfortable ride. Plus it’s fully loaded: On-Command® 4WD, Ultramatic® transmission, EPS and more – making it #1 in durability* and off-road capability. Need less power? Check out the Grizzly 450 EPS or 550 EPS. Yamaha Grizzly ATVs. Real World Tough. To get you there and back, hunt after hunt, year after year.
GRIZZLY® 550 EPS
Shown with optional accessories. ATV model shown is recommended for use only by riders 16 years and older. Yamaha recommends that all ATV riders take an approved training course. For safety and training information, see your dealer or call the ATV Safety Institute at 1-800-887-2887. ATVs can be hazardous to operate. For your safety: Always avoid paved surfaces. Never ride on public roads. Always wear a helmet, eye protection and protective clothing; never carry passengers; never engage in stunt riding; riding and alcohol/drugs don’t mix; avoid excessive speed; and be particularly careful on difficult terrain. Specifications subject to change without notice. *Based on ADP competitive comparison study of CVT belt components reported in warranty and non-warranty repair order records for 2007-2010 model year CVT belt-driven 4x4 ATVs 400cc and above. ©2012 Yamaha Motor Corporation, U.S.A. All rights reserved. • yamaha-motor.com
™
your hunt for the ultimate atv is over.Out here, don’t take chances. Take a Yamaha Grizzly. Even on the most grueling terrain, the Grizzly 700 FI Auto 4X4 EPS gives you a rock-solid, smooth, comfortable ride. Plus it’s fully loaded: On-Command® 4WD, Ultramatic® transmission, EPS and more – making it #1 in durability* and off-road capability. Need less power? Check out the Grizzly 450 EPS or 550 EPS. Yamaha Grizzly ATVs. Real World Tough. To get you there and back, hunt after hunt, year after year.
GRIZZLY® 550 EPS
Shown with optional accessories. ATV model shown is recommended for use only by riders 16 years and older. Yamaha recommends that all ATV riders take an approved training course. For safety and training information, see your dealer or call the ATV Safety Institute at 1-800-887-2887. ATVs can be hazardous to operate. For your safety: Always avoid paved surfaces. Never ride on public roads. Always wear a helmet, eye protection and protective clothing; never carry passengers; never engage in stunt riding; riding and alcohol/drugs don’t mix; avoid excessive speed; and be particularly careful on difficult terrain. Specifications subject to change without notice. *Based on ADP competitive comparison study of CVT belt components reported in warranty and non-warranty repair order records for 2007-2010 model year CVT belt-driven 4x4 ATVs 400cc and above. ©2012 Yamaha Motor Corporation, U.S.A. All rights reserved. • yamaha-motor.com
™
your hunt for the ultimate atv is over.Out here, don’t take chances. Take a Yamaha Grizzly. Even on the most grueling terrain, the Grizzly 700 FI Auto 4X4 EPS gives you a rock-solid, smooth, comfortable ride. Plus it’s fully loaded: On-Command® 4WD, Ultramatic® transmission, EPS and more – making it #1 in durability* and off-road capability. Need less power? Check out the Grizzly 450 EPS or 550 EPS. Yamaha Grizzly ATVs. Real World Tough. To get you there and back, hunt after hunt, year after year.
GRIZZLY® 550 EPS
Shown with optional accessories. ATV model shown is recommended for use only by riders 16 years and older. Yamaha recommends that all ATV riders take an approved training course. For safety and training information, see your dealer or call the ATV Safety Institute at 1-800-887-2887. ATVs can be hazardous to operate. For your safety: Always avoid paved surfaces. Never ride on public roads. Always wear a helmet, eye protection and protective clothing; never carry passengers; never engage in stunt riding; riding and alcohol/drugs don’t mix; avoid excessive speed; and be particularly careful on difficult terrain. Specifications subject to change without notice. *Based on ADP competitive comparison study of CVT belt components reported in warranty and non-warranty repair order records for 2007-2010 model year CVT belt-driven 4x4 ATVs 400cc and above. ©2012 Yamaha Motor Corporation, U.S.A. All rights reserved. • yamaha-motor.com
™
your hunt for the ultimate atv is over.Out here, don’t take chances. Take a Yamaha Grizzly. Even on the most grueling terrain, the Grizzly 700 FI Auto 4X4 EPS gives you a rock-solid, smooth, comfortable ride. Plus it’s fully loaded: On-Command® 4WD, Ultramatic® transmission, EPS and more – making it #1 in durability* and off-road capability. Need less power? Check out the Grizzly 450 EPS or 550 EPS. Yamaha Grizzly ATVs. Real World Tough. To get you there and back, hunt after hunt, year after year.
your hunt for the
���������THE���THE�� ��� �LEADER�� ��� �LEADER�� ��� �LEADER�� ��� �LEADER�� ��� �
��� ��MOST ��� ��MOST ��������OFF-ROAD��������OFF-ROAD������CAPABLE������CAPABLE
your hunt for the ultimate atv is over.your hunt for the
��� ��������� ������IN PROVEN��� ������IN PROVENIN PROVEN��� ������IN PROVEN������������������������������������DURABILITY���������DURABILITYDURABILITY���������DURABILITY�*�*
10125318 10126832
Dix Communications - Gas & Oil April 2013 Edition 33www.OhioGO.com
sued a landmark decision in the case of Hupp v. Beck Energy confirming that “delay rentals” can only operate during the primary term (the initial definite period set forth in the lease). Otherwise, a lessee can indefinitely tie up land with no effort to develop it, simply by sending a nominal check. It is unfair to the landowner.
This issue has been vigorously contested by the producers. We suspect that it will end up before the Ohio Supreme Court.
• Shut-in royalties — These payments are akin to “delay rent-als,” except that a well has produced, but it has temporarily stopped because of a lack of market for the product. Many courts in the U.S. treat these as equivalent to “rentals.” Accordingly, as with “delay rentals,” a “shut-in royalty” should not be indefinite and should not alter the lessee’s obligation to develop and market the gas or oil.
• Indiscriminate payments — We have noticed that some smaller producers simply send out small checks, with the os-tensible intent to send something, anything, in an effort to give the illusion that they continue to hold the lease. Producers are routinely arguing that landowners have “waived” their right to contest the lease because they accepted payments. (Courts are not necessarily buying this argument, though.)
What to do? Do not cash those little checks—unless you know what they are. Call the producer. Ask. Is it a royalty? Be sure to get proof of the production. Delay rentals? Has the primary term expired? Shut-in royalty? How long has the well been “shut in”?
Disclaimer: As with all articles on legal issues, this article is intended for educational and informational purposes. The reader should not rely on this article as a substitute for actual legal ad-vice regarding his or her particular case. You should consult an attorney regarding the specifics of your situation.
Ethan Vessels is an attorney in Marietta, Ohio with the firm of Fields, Dehmlow & Vessels, LLC. His firm is actively representing landowners throughout East and Southeast Ohio regarding oil & gas lease forfeiture actions, lease dis-putes, and other oil & gas matters. Visit www.fieldsdehm-low.com for more information.
“WHAT ARE THOSE LITTLE CHECKS” from pg. 28
Gas&Oil33
Young Freightliner& IsuzuSales, Parts & Service1-800-362-0495
Young VolvoSales, Leasing, Parts & Service1-800-308-0838
JayMac Body & FrameBody work, alignment & four large paint booths1-866-601-7654
New & Used Truck Sales - Leasing Service - Parts - Body Work Not just highway trucks! We also service RV’s, school busses, �re trucks, all types
of trailers and specialty vehicles.Canton, OH
Young Trailer Repair Trailer repair and rehabilitation
330-479-8992
Young VolvoSales, Leasing, Parts & Service1-800-308-0838
JayMac Body & FrameBody work, alignment & four large paint booths1-866-601-7654
of trailers and specialty vehicles.Canton, OH
Young Trailer Repair Trailer repair and rehabilitation
330-479-8992
TRUCK SALES, INC.
www.youngtrucks.com
10129645
1012
4426
Fresno, Ohio
Roofi ng, Siding, Garages, Pole Barns
330-231-3179
CONSTRUCTION, LLC
DIESEL EXHAUST
ACTION SPECIALTYEXHAUST SALES
514 North Street - Caldwell, OH740-732-5551 10126831
Gas & Oil April 2013 Edition - Dix Communications www.OhioGO.com34
secretary for then-U.S. Rep. Ted Strickland and regional director for Gov. Strickland. She most recently managed a successful state-wide judicial campaign in West Virginia.
With the exception of her college years, Tricia (Lollini) Zac-cagnini is a lifelong resident of the Ohio Valley. She is a graduate of Ohio University with a bachelor of science in communications, Wheeling Jesuit University with a master of business administration and is currently pursuing a teaching certificate. Prior to working for the OVOGA, Zaccagnini served as the public relations manager with the National Technology Transfer Center. Zaccagnini is also a coordinator with The Gala Group in Wheeling, WV, which provides
“OHIO VALLEY OIL & GAS ASSN.” from pg. 31 quality wedding and event planning for the Upper Ohio Valley. She resides in Rayland, OH, with her husband, Neal.
The Ohio Valley Oil & Gas Association is a regional alliance of businesses whose mission is to support oil and gas produc-tion and distribution in the Eastern Ohio, Northern West Vir-ginia and Western Pennsylvania areas through the use of local businesses and employees; to be a resource to match needs of the oil and gas producers and distributors with local providers and to be a resource for new business entities serving the oil and gas industry. Membership information may be found at www.ovoga.org.
Gas&Oil34
Monorail
Refuse Trailer
Pipe Trailer
Potty Trailer
Ohio’s Largest Hitch & Parts Inventory!
Trailer Sales, Renting & Leasing - Repair & Service - Hitches
Over 300 Hitches in Stock
AKRON1750 E Waterloo Rd1 mile east of I-77 (Rt. 224)330-798-1698800-691-9914
CANTON1220 30th St. NE
3 miles east of I-77 (Rt. 30)330-580-4445800-311-126010089910
Manufactures of Silt SockHeavy and Hot Shot Hauling
Water HaulingCurt Luburgh (740) 819-7271Matt Robinson (740) 819-0521
10126967
L R T
BEN SCHAFER REALTY
“Your COMPLETE Real Estate Headquarters”
Specializing in ALL things Real Estate
→ Helping clients buy or sell
→ Selling real estate at Auction
→ Conducting appraisals
→ Managing & Marketing rentals
→ Representing clients’ mineral rights
→ Consulting on leases, right-of-ways, etc.
536 Main St., Caldwell, OH 740-305-5054 www.benschaferrealty.com Call us for all of your real estate needs!! 10128671
AMERICANPRODUCERS SUPPLY
Industrial, Construction and Oil Field Supplies
Hand and Power Tools Heaters & Fans Hydraulic Hand Pumps Generators Pipe Wrenches, Cutters Safety and PPE Pipe Stands Lifting/Rigging Pipe Valves & Fittings Abrasives Janitorial Supplies Cutting Tools
Authorized Service Center for:
7 Locations In Ohio and West VirginiaTo find the one nearest you, call or visit our website
800-482-0310www.americanproducers.com
10127369
Dix Communications - Gas & Oil April 2013 Edition 35www.OhioGO.com
Gas&Oil35
AultWorks Occupational Medicine specializes in treating work-related injuries and illnesses. We are certified by the Ohio Bureau of Workers’ Compensation. Our services include:
• Injury Care• 24-Hour Drug and Alcohol Screenings• DOT and FAA Physicals• Pre-placement Physicals• Random Management Programs• Mobile Medical Unit• Travel Medicine Program... and more!
www.aultman.org
At your location or ours,we’ve got you
At your location or ours,covered.
Canton330-491-9675
Alliance330-823-8864
Orrville330-684-4767
Berlin330-893-1318
Carrollton330-627-0091
10065808
10127466
CUSTOM WELL SITE FABRICATION
BCSBulk Carriers Service
2743 Brightwood Rd. S.E. • New Philadelphia, OH 44663-6773Phone: 330-339-3333 Fax: 330-339-6606
Toll Free: 877-367-8265
JIM EVERETT / DOUG MILBURN
BCSGBulk Carriers Service
2296 Larson Rd. SE • Gnadenhutten, Ohio 44629Phone: 740-254-4445
Fax: 740-254-4446
TRAVIS SWAUGER / ED DUGAN
Gas & Oil April 2013 Edition - Dix Communications www.OhioGO.com36
Gas&Oil36
Learn more at WWW.TGS.COM
TGS DELIVERS OHIO
Attributes include:• 409mi2multi-client3Ddata• SurveyislocatedintheheartoftheUticaShale• FormationsimagedincludetheUticaShale,Point
Pleasant,TrentonBlackRiverandtheKnox
TGS has begun acquisition of its Firestone 3D project in Northeast Ohio.
With newonshore 3D seismic and the largestwell log database inNorthAmerica, TGSoffers themost completeonshoremulti-clientdataavailable.
• Interpretive products available including basintemperaturemodeling,tops,etc.
• LASPlus(workstationready)welllogsavailable• Deliveryoffinal3Dvolumesexpectedinearly2013
QualityMulti-client Data
ForfurtherinformationcontactTGSat:Tel:+17138602100Email:[email protected]
10110619
Dix Communications - Gas & Oil April 2013 Edition 37www.OhioGO.com
Middle school students design frack water cleaning process
A group of four Meadow-brook Middle School stu-dents put their heads to-
gether last year and over the course of a number of months developed an environmentally friendly pro-cess for cleaning contaminants from “fracking” water and recy-cling it.
“We’re literally cleaning dirt,” said Mike Zuress, an eighth-grade student at the middle school.
“It makes it so safe it turns it into soil,” said fellow eighth-grader, Derek
Rost.Together with classmate Parker Black and seventh-grader, Will
Ford, the boys began working on the project last summer as one of the teams in a STEM competition. (STEM is an acronym for “sci-ence, technology, engineering, mathematics.”)
If they win, they each will receive a week at Disney World and a $2,000 scholarship.
They are keeping the details of their project a little close to the vest because they may be aiming even higher than the competition.
“They’re considering [patenting the process],” said Jeanette Rost, the group’s adviser and Derek’s mother. A teacher at Brook Elemen-tary School, Mrs. Rost had learned of the competition while watch-ing the Today Show during a snow day last year.
Although she and the other parents encouraged the boys, they were the ones who took the idea and ran with it.
When they were brainstorming ideas for a project, the boys were
Derek Rost, l, Will Ford, Mike Zuress and Parker Black relax at Meadowbrook Middle School where they developed a process to clean and recycle the water used in hydraulic fracturing.
Gas&Oil37
Call For More Information or For A Personal Appointment.
1-866-968-70323 LOCATIONS TO SERVE YOU
NEW PHILADELPHIA AT NEW TOWNE MALL400 Mill Ave SE, Suite 901, New Philadelphia, Ohio 44663
STEUBENVILLE2230 Sunset Boulevard, Suite 2B, Steubenville, Ohio 43952
EAST LIVERPOOL108 E. 5th Street, East Liverpool, Ohio [email protected]
The world is changing...Technology is changing...
Education is changing...Ohio’s premier online school
www.go2qda.org
QDA Provides Options for Today’s Students
Are you looking for an innovative home-schooling option?
Have you recently transferred here from another area?
Are you looking for a school to meet your needs?
QDA’s coursework is approved by the State of Ohio, transferrable to all school districts, approved for entrance into the military and college.QDA offers:• The latest in online OR textbook-based Home Schooling K-12• State Approved Accredited Curriculum• Computer & Internet Reimbursement• Extracurricular Activities & Field Trips• Flexible scheduling• Over 265 successful graduates to date
TheThe
Freedomto
anywherefrom
Tuition Free K-12 Public School
AT QDA ... Every child is important to us - we want
your child to succeed!
ENROLL TODAY!ENROLL TODAY!OVER 650 STUDENTS ENROLLED!
10117281
John LoweDix Communications
Continued on pg. 42
Gas & Oil April 2013 Edition - Dix Communications www.OhioGO.com38
10 thingsGov. John Kasich has made
no secret about his desire to increase taxes on oil and gas
produced in eastern Ohio’s growing oilfields, saying the entire state should benefit from the valuable resources in underground shale formations.
But Statehouse Democrats and some Republicans remain skeptical of the governor’s plan, voicing a desire to use the increased tax collections to help local governments and schools or concerns that a tax hike could hinder future fracking-related economic de-
velopment.Proponents and opponents are in the midst of a debate on the
issue, via hearings on Kasich’s biennial budget plan. Here are 10 things you should know about oil and gas taxes and what the governor is proposing:
1. Severance: The severance tax is so named because filers “extract, or sever, certain natural resources from the soil and wa-ters of Ohio,” according to an explanation by the Ohio Depart-ment of Taxation.
Last year, there were about 1,300 individuals or business enti-ties that filed severance taxes, said Gary Gudmundson, spokes-man for the taxation department. Of those, 984 focused solely on oil or natural gas.
2. The Rates: According to the Department of Taxation, sev-erance taxes are levied based on the weight or volume of re-sources extracted from the ground.
Under current rates, filers pay 10 cents per barrel of oil and 2.5 cents per thousand cubic feet of natural gas produced. Pro-duction valued at less than $1,000 is exempt if used on the same property where it is extracted, according to the taxation depart-ment.
Upward of $10.2 million in total severance taxes were paid in the state in fiscal 2012. The total included more than $2 million in natural gas payments and about $467,000 in oil payments.
3. Where the Money Goes: According to the Ohio Depart-ment of Taxation, 90 percent of oil and gas severance taxes cur-rently are directed to the state’s unreclaimed lands fund. It’s used to reclaim “land, public or private, affected by mining or control-ling mining drainage,” according to Ohio Revised Code.
The remaining 10 percent goes to the state’s geological map-ping fund for “field, laboratory and administrative tasks to map and make public reports on the geology, geologic hazards and energy and mineral resources of the state.”
4. Kasich’s Plan: Under the governor’s proposal, rates would
Mark KovacDix Communications
remain unchanged or would be reduced or eliminated for low-volume producers with vertical wells.
Increased rates would be enacted for higher-volume, horizontal wells, the focus of oilfield activities in eastern Ohio, with the ex-panding use of horizontal hydraulic fracturing, or fracking.
According to Tax Commissioner Joe Testa, owners of high-vol-ume horizontal wells would be taxed at a rate of 1 percent for gas and 4 percent for oil, natural gas liquids and condensate. The lat-ter would be taxed at a lower 1.5 percent rate during the first year of production to enable producers to recoup their drilling costs.
Additionally, “To provide immediate revenue to local govern-ments, the owners of high-volume horizontal wells will provide a no-interest impact loan of $25,000 per well when the permit is obtained,” Testa told the House’s finance committee last week. “This will aid local governments during the period of drilling when there is increased stress on infrastructure.”
The proceeds from collections on horizontal wells would go to the state’s general revenue fund. The proceeds from conventional vertical wells would continue to be directed to unreclaimed lands
about the ‘fracking tax’
Gas&Oil38
Experts in Natural Gas
ENGINEERING & AUTOMATION
• Facility Engineering • Station & Unit Automation • Turnkey (EPC) Solutions • Project Management • Material Procurement • Horsepower Selection • Feed Studies • Measurement • Liquid Handling • 2D & 3D Drafting & Design
Basic Systems, Inc. (740) 432-3001 (office) www.basic-systems.com
10128177
Continued on pg. 46
Dix Communications - Gas & Oil April 2013 Edition 39www.OhioGO.com
Gas&Oil39
GENERALRV CENTER
AKRON CANTONREGINAL AIRPORT
Mt. Pleasant St.
Greenburg Rd
Mayfair Rd.
77
Lauby Rd.
N
3063 GREENBURG RD., N. CANTON, OH 44720
(330) 896-8977www.generalrvohio.com
GENERALRV CENTER
PARK
TRA
ILER
ONLY
$249 PER MO*
NEW FOREST RIVERWILDWOOD 39DEN#92848 “Mini Park Model” Huge slideouts, sleeps 8 residential refrigerator, large windows, a must see!LIST: $37018.50SHOW PRICE
$27,998
CLAS
S C’
s
ONLY
$379 PER MO*
NEW COACHMENFREELANDER 21QBQueen bed, awning, generator, U-shaped dinette, TV & more!LIST: $69,957SHOW PRICE
$49,999 CLAS
S A’
s
ONLY
$550 PER MO*
NEW COACHMENMIRADA 34BH#89664 Bunkhouse with 2 slides, sleeps 7, 2 TV’s, booth dinette & much more.LIST: $107,059SHOW PRICE
$85,995
TRAVEL TRAILERS
Bunkhouse, sleeps 9, power awning &
tongue jack, LCD TV
ONLY
$109 PER MO*
POWER AWNING
NEW PRIMETIME AVENGER 26BH#94055LIST: $19,655SHOW PRICE
$12,998Bunkhouse FW,
Tripleside, outside kitchen, a must see.
ONLY
$339 PER MO*
5TH WHEELSNEW KEYSTONEMONTANA338DB#93764
LIST: $61,738SHOW PRICE
$44,998Rear kitchen,
large living room, lots of counter top space.
ONLY
$229 PER MO*
NEW KEYSTONE LARADO 294RK#91726
LIST: $34,018SHOW PRICE
$25,998
TRAVEL TRAILERS
Double bunk slide-out, fi berglass, sleeps 7 Only 5100lbs. Priced to sell fast!
ONLY
$168 PER MO*
NEW PRIMETIME TRACER 2670BHS#90057
LIST: $30,523SHOW PRICE
$18,998
TRAVEL TRAILERS TOY HAULER
ONLY
$249 PER MO*
“Toy Hauler”, sleeps 6, big
garage, ramp door, generator rack, big slideout.
NEW FOREST RIVERWORK & PLAY 30WRS#91602
LIST: $33,523SHOW PRICE
$26,998
WIN
NEB
AGO, TH
OR, M
ONTA
NA
HUND
REDS
OF
RVS
ON S
ALE: C
OACH
MEN
, FLE
ETWOO
D!
1) $99/mo. 7.75% APR for 96 mos. 2) $109/mo. 5.49% APR for 120 mos. 3) $168/m0. 5.49% APR for 120 mo. 4) $209/mo. 5.49% for 114 mos. 5) $299/mo 5.49% APR for 144 mos. 6) $309/mo. APR for 180 mos. 7) $379/mo. 5.49% APR for 180 mos. 8) $515/mo. 5.49% APR for 180 mos. 9) $579/mo. for 240 mos. 10) $968/mo 5.49% for 240 mos. All Payments are based on 20% down and with approved credit. Factory provided RV photos and fl oor plans shown in this ad are for illustration purpose only. All RV prices are plus tax, title and fees, sale prices are not valid in combination with any other adver-tised special offers, rebates or discounts. All units are subject to prior sale. Offers not valid on prior sales. Prices and offers valid until June 30, 2013.
1013
0073
10127983
Gas & Oil April 2013 Edition - Dix Communications www.OhioGO.com40
Gas&Oil40
Wade Pol, PresidentOffi ce: 330-325-7177Fax: 330-325-0263Cell: 330-697-1783
• Complete Oil Field Services
• Frac Support
• Completion support
• General Excavation
• Spill Trailer & Shower Trailer Rental
• Complete Oil Field Services• Complete Oil Field Services• Complete Oil Field Services• Complete Oil Field Services• Complete Oil Field Services• Complete Oil Field Services• Complete Oil Field Services• Complete Oil Field Services
• Frac Support• Frac Support• Frac Support• Frac Support
4188 S.R. 14 Ravenna, OH 44266
10117501
p r o d u c e r // l e a s e s
oil & Gas
ocay owned since
Your area specialist.
gerald benson // President // 740.685.0404
Mark a. benson // exec. Vice President // 740.801.0808
Mike Young // belle Valley associate // 740.680.3609
P.O. Box 7 // 10341 Pioneer Road // Byesville, Ohio 43723
1972
www.mattmarkdrilling.com
1003
9109
A division of sonrise ConstruCtion, Custom built homes
10091803
Dix Communications - Gas & Oil April 2013 Edition 41www.OhioGO.com
It was a busy night for Bethesda Village Council members re-cently as members signed a
contract with LBG Water Services LLC to sell water from the village reservoir to be sold to local fracking companies.
Jim Harber from LBG Land Ser-vices LLC of New Philadelphia, Ohio presented council with a one-year contract for the village to sell water from the reservoir at a price of $5 per one thousand gallons.
The contract states that there is a one-year minimum of 10,000,000 gallons to be purchased and a $500 per month fee to be paid to Bethesda for each month LBG does not purchase water after the staging area pumping station is set up.
Council and Mayor Marty Lucas had various suggestions and questions. They agreed on the following changes to the con-tract: LBG will repair or replace roads that have been torn up
Cathryn StanleyBarnesville Bureau
by the water transport trucks; LBG will install their staging area for pumping by March 1st 2013, and LBG will pay for the staging area dirt work to be completed.
Davis suggested a local person to dig the dirt for the staging area. Davis said that person was already providing that service for water service companies.
Mayor Lucas asked Harber to look at the staging area (below the reservoir) with the street committee to discuss options for the best ingress and egress of the staging area.
“I need you guys to tell me what will work and I will work around that,” Harber said.
“This is your community. I want to buy water and you want to sell water. I want to respect your community and cause as little headaches as possible.”
He said the staging area will contain four frack tanks (40 feet long by 8 feet wide) side by side. Each tank holds 25,000 gallons of water.
He estimated that 10 to 30 trucks would come in and out of the area each day, Monday through Saturday. He said they operated
Bethesda council tosell water for fracking
Gas&Oil41
Commercial Real Estate Services, Worldwide.
Spring
10115965
Mon. - Fri.11 am - 5 pm
Looking for comfort, style and durability? We have Carhartt in many styles to choose from, in casual or FR clothing. No matter what your job, Carhartt has the right fit for you! Custom imprinting and embroidery is available.
For Farm, Industrial, Gas and Oil Workers!
We Now Carry Rain Coats & Rain Gear!
ClosedSundays
Sat11 am - 3
New Spring/Summer Inventory has Arrived!Casual/Formal Wear!
61322 Southgate Pkwy. Suite #1 (Directly behind Arby's)740-439-4915
Mon. - Fri.11 am - 6 pm
Casual/Formal & FR Wear!
10129873
Continued on pg. 42
Gas & Oil April 2013 Edition - Dix Communications www.OhioGO.com42
drawn to the natural gas and oil industry. They realized the economic promise of the industry for this area. Yet, they also recognized genu-ine concerns about the potential for environmental hazards from frack water. It was a problem, a dilemma.
Following the entrepreneur’s mantra of finding a problem and solv-ing it, they zeroed in on the fracking issue.
They initially developed a unit designed to be mobile.Meanwhile, executives at Waste Treatment Corp. of Warren, Pa.,
learned about the boys’ project.“When they heard about it, they were all over it like syrup over
pancakes,” Mrs. Rost said.The president of the company invited the boys to Warren and gave
them a tour of the Pennsylvania facility. As they toured the facility, the team realized the initial prototype was not feasible.
“We realized our design wouldn’t fit inside a truck,” Derek said.“So we went to a stationary design,” Parker said.They wasted little time regrouping.“While we were driving back, they were huddling in the back of
the van and drawing sketches,” Mrs. Rost said.Principal Russ Spence said he could not believe how much time
the boys invested in the project. They worked on it during the sum-mer and, when school started, they were spending, on average, three hours, five nights weekly working on it.
With their design reconceived, they turned for technical assistance to Basic Services Inc. BSI engineer Dan Webster helped them with specifications and with drawing up blueprints.
The boys did all of the documentation and even created a Power-point presentation to illustrate their unit and the process it utilizes.
“I’m proud of all of [the boys],” Mrs. Rost said. “When there were snow days for others, there were no snow days for them. They kept right on working.”
two, eight hours shifts per day.Harber also said that the company will be looking to hire two
full-time and one part-time person and that they ‘like to hire within the community.”
Gas&Oil42
Engineering, IT, & Technical Staffing
Solutions ProviderPutting America Back to Work!
Experienced In:Technical Staffing
forShale Oil and Gas
www.integrityjobs.com888-262-3226 Call Now!
14 Whitehall DriveAkron, Ohio 44278
888-262-3226 10105073
CUMBERLAND
LIMESTONE53681 Spencer Rd., Cumberland, OH
(740) 638-3942Mon. - Fri.
Sat.7:00 A.M. - 4:00 P.M.7:00 A.M. - 12:00 P.M.
All Limestone Products
• Sand and Gravel• Aggregate Lime
• Top Soil10038257
Call for
Hauling
Prices
“MIDDLE SCHOOL STUDENTS DESIGN” from pg. 37
The Power Shop- SALES & SERVICE -
Tom Mason Chad Nay
Briggs & Stratton, Tecumseh, Kohler, Kawasaki, Honda, Bad Boy Mowers, MTD
Phone: (740) 545-9011Fax: (740) 545-9555
email: [email protected]
57197 County Road 9, West Lafayette, OH 43845
Authorized Full Servicing Dealer
Visa & Mastercard accepted
10125641
“BETHESDA COUNCIL TO SELL WATER” from pg. 41
Dix Communications - Gas & Oil April 2013 Edition 43www.OhioGO.com
Gas&Oil43
ACI.indd 1 2/19/13 9:11 AM
10118123
CENTRALOHIOTECHNICALCOLLEGE
10126918wheelingtruck.com 800-759-1440
10130120
2013 VOLVO VHD TRIAXLENEW
This Truck Has All The Right Stuff!•Volvo 500 H.P. Engine•Volvo Engine Brake•Eaton 18 SP•4:10 Gear Ratio•20K Front Axle•Double Frame, Dual Steer•46K Full Locking Rears•20K Steerable Pusher Axle•110 Barrel Heritage Custom Vac Tank with Fruitland 500 Vacuum Pumping System•All Polished Alum. Wheels and All The Stainless Goodies•Heated Chrome Power Mirrors, Windows and So Much More!!!
WHOLESALE BLOWOUT$179,921
Price Includes Tank and All F.E.T.S.
wheelingtruck.com 800-759-1440
“BETHESDA COUNCIL TO SELL WATER” from pg. 41
Gas & Oil April 2013 Edition - Dix Communications www.OhioGO.com44
The Cambridge Alumni and Friends Educational Fund received a con-siderable boost in the dollar amount
it was able to award to four Cambridge schools through the organization’s annual grant program.
A check for $1,000 from EQT Corporation was presented to Tim Evancho, Cambridge Alumni and Friends trustee, by Jessica Baker, EQT community advisor, at Rea & Associates in Cambridge, office of Alumni and Friends Trustee Maribeth Wright.
This is the third donation EQT has made to Guernsey County enti-ties this month.
“EQT Corp. places heavy emphasis on literacy and education. We are pleased to partner with Cambridge Alumni and Friends to provide new books for Cambridge area schools,” said Baker. “The donation is from the company’s local giving program.”
Recipients of the 2013 awards are:• Marguerite Younker, Cambridge Middle School and South El-
ementary, $1,000 for current books for school libraries • Alisha Colon, South Elementary School, laptops for learning,
Jessica Baker, community advisor for EQT Corp., c, presents a check for $1,000 to Tim Evancho, trustee of the Cambridge Alumni and Friends Educational Fund, to replenish Cambridge school libraries with current books. Recipients of other grant awards were l to r, seated, Hailee Engle and Olivia Rhodes, Cambridge High School United Nations delegates; standing, l to r, Margie Younker, Alisha Speer, Baker, Evancho, Alisha Colon and Robyn Kyser.
Cambridge Alumni and Friendsreceives donation from EQT Corp.
Judie PerkowskiDix Communications
Gas&Oil44
Full Hazardous LocationElectrical Distributor
Supplying the Oil and Gas Industry For 35 years
9200 Southgate Road • Cambridge • Ohio
“We speak the Language”
Call Today
800-356-7944
Because You Need It Yesterday!
10129743
Continued on pg. 52
Dix Communications - Gas & Oil April 2013 Edition 45www.OhioGO.com
Gas&Oil45
10106272
The Best Lawyers in America® 2013. Copyright 2012 by Woodward/White, Inc., Aiken, SC. Super Lawyers is a registered trademark of Thomson Reuters.
Lost Your Minerals?
4775 Munson Street NW | Canton Ohio 44718 | 877.876.9958 | 330.497.0700 OFFICES IN CANTON, AKRON, ALLIANCE, NEW PHILADELPHIA AND SUGARCREEK
KWGD.com
KRUGLIAK, WILKINS, GRIFFITHS& DOUGHERTY CO., L.P.A. attorneys at law
Krugliak, Wilkins, Griffiths & Dougherty is centered in the heart of the Utica shale region, ensuring our clients aggressive local representation in oil and gas disputes. Our oil and gas practice group has more than 60 years of combined knowledge and experience in oil and gas law.
We’ve successfully represented clients in recovering and preserving mineral interests in Ohio’s Utica Shale. Log onto our website at www.kwgd.com and click on our Oil and Gas tab for more information about Ohio’s Dormant Mineral Act.
Our firm has been recognized as one of the 2013 Top Ranked Law firms in the United States. Visit www.kwgd.com to learn more about our firm.
Contact any one of the attorneys below toll free at 877.876.9958 to discuss your case:
William G. Williams | [email protected] D. Vaughan | [email protected] W. Watts | [email protected]
Gas & Oil April 2013 Edition - Dix Communications www.OhioGO.com46
and geological mapping, Gudmundson said.5. The Return: Testa said the proposed changes would pump
an additional $45 million into the state’s general revenue fund in fiscal 2014, $155 million in ‘15, $305 million in ‘16 and $415 million in ‘17.
Testa added, “ ... right now, oil companies are only able to ex-tract about 10 percent of the shale oil and gas with current tech-nology. As technologies advance and evolve, more oil and gas will be extracted from our shale resources for decades to come. And as long as there is money to be made, the producers and pipeline companies will be active.”
6. The Pros: Kasich has said repeatedly that the severance tax rate should be increased to ensure that out-of-state energy com-panies don’t take Ohio’s oil and gas and the resulting profits from their sale entirely outside of the state’s border.
The governor is quick to point out that energy companies have already invested billions of dollars in Ohio’s oilfields (more than 500 horizontal well permits have been issued to date) the natural resources are here and they’re valuable.
And the administration says the proposed rates are lower than Michigan, Pennsylvania, West Virginia, Arkansas, North Dakota, Oklahoma and Texas.
7. The Cons: Oil and gas industry advocates remain opposed to the tax hike, saying Ohio already is benefiting from increased production and increasing rates could stifle future investment.
As Tom Stewart, executive vice president of the Oil and Gas
Association told reporters late last month, “If you want to see this play develop, what you want these producers to do ... is to take their net revenues and plow it back into the ground, just the same way that a farmer takes his net revenues and plants his field. You want these producers to take the money they make plus more and put it back in the ground to make this economic opportunity expand.”
8. MBR: Kasich initially proposed the frack tax increase in 2012 in Mid-biennium Review, a massive package of policy pro-posals that kept lawmakers busy during what was supposed to be a slower, off-budget year. The original proposal would have used the increased collections to institute a corresponding decrease to income tax rates.
But lawmakers balked, removing the severance tax language from legislation and saying they needed more time to study the issue as part of a larger tax reform effort.
The governor reintroduced the plan as part of his two-year spending proposal, with a lower sales tax broadened to cover ser-vices and an income tax cut.
9. Democrats: Many Statehouse Democrats oppose the gov-ernor’s frack tax plan, saying the proceeds should be directed to local governments and schools and/or communities whose infra-structure has been affected by drilling activities rather than rolled into an income tax cut.
“I’ve never seen so many lobbyists from the gas and oil industry in one place in the 26 years that I’ve been here,” Rep. Bob Hagan,
Gas&Oil46
Canton: 330-455-1202Canton: 330-455-1202Cleveland: 216-431-1630 Columbus: 614-850-0337
www.customclutch.com 10125894
“10 THINGS ABOUT FRACK TAX” from pg. 38
Dix Communications - Gas & Oil April 2013 Edition 47www.OhioGO.com
a Democrat from Youngstown and frequent critic of Kasich, said late last month. “And they’re winning this. So those of us that have an obligation to stand up and fight for local govern-ments and fight for education dollars have to do it now, and we have to confront the governor on it.”
10. Republicans: Some GOP lawmakers also are question-ing the severance tax increase.
“I am concerned on the 200,000 jobs that are projected to come to the state of Ohio,” Rep. Cheryl Grossman, a Republi-can from the Columbus area, told the House’s finance commit-tee last week. “I don’t want to do anything to discourage that. And I think that we are already seeing tremendous benefits as far as home building, restaurants, hotels where that activity is going on. It’s really important to me that they pay their fair share....”
Rep. Dave Hall, a Republican from Millersburg, said some landowners will have to pay the severance taxes, due to the wording of leases established in earlier decades with local oil and gas companies before Ohio’s shale oil deposits were dis-covered.
And Rep. Ron Amstutz, chairman of the powerful House finance committee, has asked taxation officials about the con-stitutionality of the plan, among other questions.
Marc Kovac is the Dix Capital Bureau Chief. Email him at [email protected] or on Twitter at OhioCapitalBlog.
Gas&Oil47
2337 S. UNION AVE. ALLIANCE, OHIO•HORIZONAUDIO.COM
• ALARM SYSTEMS • BLUETOOTH • CRUISE CONTROL • CUSTOM LIGHTING • IPOD INTEGRATION • MOBILE AUDIO & VIDEO • MOTORCYCLE & MARINE
• NAVIGATION • PARKING SENSORS • PERFORMANCE PARTS • RADAR DETECTORS • REMOTE STARTERS • SATELLITE RADIO • TINT
• TRUCK ACCESSORIES • WHEELS & TIRES
( 3 3 0 ) 8 2 1 - 3 5 0 0
10125316
A Growing Company
Questions & OrderingDays (614) 496-3077Fax (614) 939-0566Email: [email protected]: boguefarms.org
Bogue Farms - Tree Farm & NurserySince 1986 we have been shipping trees across the country. We currently have in stock over 50,000 evergreens. Our stock includes 12 different types of Evergreen trees. Our trees are professionally balled and burlapped in all sizes up to 90 in.
All of the services that we offer are done professionally:
Tree Planting- We ensure the health and vitality of each tree- Professional crew for residential and commercial installation- Buy direct from the grower and save $!!! Buy where the professionals buy their trees- Minimum order of 10 trees or $500 per order- Plant trees for screens, privacy, beauty, wildlife- We have tree farms in Guernsey, Knox, Carroll and Licking County
Public Speaking/Tree Consultant- schools, golf courses, civic organizations, home owners, landscape professionals and more.
We guarantee our work 100% and we are committed to our customers and com-munity in providing the best product and the best service.
10127176
Gas & Oil April 2013 Edition - Dix Communications www.OhioGO.com48
Group claims fracking chemical secrecy illegal
An environmental group has filed a complaint with federal regulators over an Ohio law
that blocks public access to details of chemicals used in the oil and gas industry.
The Center for Health, Environment and Justice alleges state officials are violating federal law by allowing horizontal hydrau-lic fracturing without full disclosure in advance to emergency responders and certain state agencies. The group filed a for-mal petition this week with the U.S. Environmental Protection Agency, hoping to prompt federal officials to force the state into compliance.
“The oil and gas industry has come in and created a situation where you will not know what those chemicals are...,” said Brian Rothenberg, executive director of Progress Ohio, a liberal advo-cacy group that is supporting the petition. “They’ve exempted themselves from you knowing what chemicals are causing prob-lems or damage, and a first responder or anybody else responding to an emergency would have to jump through hoops to fix this.”
Mark KovacDix Communications
The Ohio Department of Natural Resources declined comment on the filing Tuesday.
“We have not seen the petition so to comment on it would be inappropriate,” spokesman Matt Eiselstein said in a released state-
Gas&Oil48
Tom Brown Trucking LLCContract Hauling
CompleteDump Service
43890 Vernon Hughes Rd. • Caldwell, OH 43724Phone: (740) 732-5921 • Fax: (740) 732-7068
Tom and Theresa Brown10120864
• High speed wireless internet• Full-service restaurant
and lounge• Boating and fishing
• Indoor and outdoor pools
• Exercise room • Golf and tennis
Salt Fork is your home away from home! We are offering special extended-stay rates for oil and
gas industry workers. Our 148-room lodge features:
For more information on our special oil and gas worker rates
Call Ashima or Risa at 740.435.9003
make yourself at home
10121727
1006
3104
Continued on pg. 57
Dix Communications - Gas & Oil April 2013 Edition 49www.OhioGO.com
Gas&Oil49
facebook.com/cantonmercycantonmercy.org
Mercy Health Center of Tuscarawas County1031 West High Ave., New Philadelphia, OH330-365-5100
• STATCARE Immediate Care CenterNO APPOINTMENT IS NECESSARY.
• Laboratory & Radiology Services
• Cardiac Diagnostics
• Therapy Services (Adult and Pediatric)
• Work Health & Safety Occupational Medicine Services
- Physical Exams (DOT & Non-DOT)
- Drug Screens (DOT & Non-DOT)
- Breath Alcohol Testing (DOT & Non-DOT)
- Random Testing Program Management
- Hair Follicle Drug Testing
- Pulmonary/Respiratory Examinations
- 24-hour Occupational Nursing & On-site Nursing
- Audiometric (hearing) & Vision Screenings
- Laboratory Services
- Certified Medical Officer Review (MRO)
- Training, Health & Wellness Programs
- OSHA Compliance Programs
HE ALTH C E N T E RMERCY
We’ve Got You Covered.
Tuscarawas and Carroll Counties
Mercy Health Center of Carroll County125 Canton Road, Carrollton, OH330-627-7641
• STATCARE Immediate Care CenterNO APPOINTMENT IS NECESSARY.
• Laboratory & Radiology Services/CT Scan
• Cardiac and Vascular Services
• Therapy Services
• Primary Care and Specialty Physicians
• Work Health & Safety Occupational Medicine Services
- Physical Exams (DOT & Non-DOT)- Drug Screens (DOT & Non-DOT)- Breath Alcohol Testing (DOT & Non-DOT)- Random Testing Program Management- Hair Follicle Drug Testing- Pulmonary/Respiratory Examinations- 24-hour Occupational Nursing & On-site Nursing- Audiometric (hearing) & Vision Screenings- Laboratory Services- Certified Medical Officer Review (MRO)- Training, Health & Wellness Programs
- OSHA Compliance Programs
Call 330-627-7641 for hours of operation and appointments
Call 330-365-5100 for hours of operation and appointments
10125433
Gas & Oil April 2013 Edition - Dix Communications www.OhioGO.com50
Job postings for Eastern Ohio Counties
Sue Thomas Sikora, manager of the Guernsey County Op-portunity Center in Cam-
bridge, said jobs in the gas and oil industry are there for the taking, especially in Carroll and Belmont counties.
“The Opportunity Center, part of the ‘One-Stop’ system that includes Guernsey, Muskingum, Coshocton and Licking counties, continues to provide job postings and recruiting sup-port for various oil and gas companies. Oil and gas companies continue to request drivers, technicians and roustabouts ... But individuals interested in oil and gas careers must be willing to travel,” Sikora said. “Eastern Ohio, in particular, the Carroll/Belmont County area, continues to be the hub of activity right now.”
The Opportunity Center may be able to support individuals who would like to upgrade their skills to work in energy related fields. The Center has had funds available for those interested,
Judie PerkowskiDix Communications
partnering with local and regional career centers and community colleges to fund short-term trainings.
Sikora offers another perspective on the rising demand for work-ers at established and new local businesses.
“While jobs in the oil and gas industry are exciting to plan for, we can’t lose sight of our local business and industry, in particu-lar our manufacturing sector, which continues to be strong,” said Sikora.
She said that most local businesses have added jobs over the past year and continue to actively hire.
“The Opp Center has been able to help our local businesses with on-the-job training subsidies in support of their hiring and training efforts, and we hope to continue to provide that support to them over the next year.”
Ohio’s unemployment rate in early 2012 was almost 11 percent, latest available report shows as of December 2012, unemployment rate in Ohio dropped to 6.7 percent.
“Seasonal layoffs have contributed to a slight increase we are currently experiencing, however, with a strong local industry, cur-rent job postings reported to the Opp Center and tightening of un-employment rules forcing more to seek work sooner, we will again see the unemployment rate dip below the seven percent mark,” she said.
on the rise
Gas&Oil50
803 S. Mahoning Ave. Alliance, Ohio 44601
(330) 680-4121
COntAiner ServiCe • Oil/GAS Site wOrk CleAn-up’S • Steel • irOn • AluMinuM
COpper • StAinleSS Steel
1012771410125625
Dix Communications - Gas & Oil April 2013 Edition 51www.OhioGO.com
Job postings for Eastern Ohio Counties“We can tell the workforce is ready to get back to work.
This past January we had 1,100 customers visit our Opp Cen-ter, either looking for work, preparing a new resume, or at-tending our Job Shop Workshop.
“In 2012, we had just under 9,000 customer visits for the entire year, so in comparison we can tell this year is going to a busy and exiting one for both the Opportunity Center and our job seekers.”
The ShaleNet website reports the drilling of a single well requires 400 people working in nearly 150 occupations with 47 percent of a well’s workforce consists of jobs that do not require a four-year degree: general labor (20 percent), heavy equipment operators (17 percent), and commercial driver’s
license on and off-road truckers (10 percent).These positions offer an important opportunity to retrain and
assist low-wage, unemployed and dislocated workers for jobs that have significant career growth opportunity, and offer family sus-taining wages.
Porosity Po·ros·i·ty noun: A measurement of the amount of pore space found in a formation. A formation can be highly porous but have low permeability if the pore spaces are not connected.
Gas&Oil51
AREA’S BIGGEST SELECTION
MET-GUARDSAFETY-TOE
• Timberland• Danner• Chippewa• Rocky• Georgia• Wolverine• Justin• Tony Lama
HI-VISAVAILABLE
Charm Harness & Boot Ltd4432 CR 70, Charm, OH
(330) 893-0402Hours Mon., Fri. 7:30-7; Sat. 7:30-3;Tues., Wed., Thur. 7:30-5
10127278
Guernsey Scrap Trucking & J.W. EnterprisesWe specialize in:
45198 Cornstalk Rd. • Caldwell • OH740-732-4807
• Flatbed Services• Excavating• Dump Truck Services• Dump Trailer Services
• Roll-Off ContainerServices
• Equipment Rental
1012987010129876
10128853
Gas & Oil April 2013 Edition - Dix Communications www.OhioGO.com52
$1,000, to provide students with the technology they will need for future success
• Robyn Kyser, South and Central Elementary and Cambridge High School, $600 for I-Pad with cover/case and applications for speech and language therapy
• Alisha Speer, Cambridge High School, $600 to help offset the cost of sending two students to the Ohio Model United Na-tions program in Columbus.
Total disbursements for 2013 grants was $3,200. “Trustees solicit donations for grants from alumni of Cam-
bridge City Schools, local individuals and businesses,” said Wright. “Cambridge Alumni and Friends Educational Fund was initiated by CHS alumni in 2008 to help support our schools.”
Committee members Dave Bennett, Bill Cowgill, Tom Green, Rick Lilienthal, Kathy Milligan, Dee Schick, Dave Caldwell, Donna Gander, John Mark Nicholson, Debbie Mosser and Ed Wright, including Maribeth Wright and Tim Evancho, are gradu-ates of Cambridge High School.
According to its website, EQT Corp. is a technology-driven leader in the integration of air and horizontal drilling, fulfilling a need for safer, more technologically-advanced energy infrastruc-ture by building and operating new pipelines, processing plants, and storage facilities, operating in four states.
Gas&Oil52
• Certifi ed Mechanic • Off er Financing• We sell late model ATV, UTV, Dirt Bikes & Motorcycles
• Amsoll Dealer
49381 State Route 250, Harrisville, OH 43974
740-546-4554 10125441
Quality Buildings Since 1981
alpinestructures.net 1.800.359.7522
CALL FOR
EARLY SPRING SAVINGS!
10x14’ Barnsiding Elite Gable
Located 1.5 miles West of Winesburg on U.S. 62Monday-Friday 7-3:30 Saturday 9-2
330.359.5708 1.800.359.7522 God is our refuge and strength. Psalms 46:1
10x14’ Barnsiding Elite Gable
12x20’ 2000 Series Garage
10128180
72 mos - 0% interest for qualifi ed buyers*
www.owensimplement.comCS SERIES CK SERIES
330-343-5708 Since1962
5219 Deis HillDover 44622 *Limited Time
10130600
“CAMBRIDGE ALUMNI AND FRIENDS” from pg. 44
Dix Communications - Gas & Oil April 2013 Edition 53www.OhioGO.com
Gas&Oil53
** RCW INDUSTRIAL SOLUTIONS ** Your Hydraulic Hose Service Specialist Synthetic Slings -Wire Rope - Chain Hydraulic & Pneumatic Repairs
Cylinder - Rams - Pumps Industrial Friction Material
429 Waynesburg RD SE 4810 Southway Avenue SW
Canton, OH 44707 Canton, OH 44706 Ph. 330-452-6548 Ph. 330-478-5300 Fax 330-452-8445 Fax 330-478-5566
** RCW INDUSTRIAL SOLUTIONS ** Your Hydraulic Hose Service Specialist Synthetic Slings -Wire Rope - Chain Hydraulic & Pneumatic Repairs
Cylinder - Rams - Pumps Industrial Friction Material
429 Waynesburg RD SE 4810 Southway Avenue SW
Canton, OH 44707 Canton, OH 44706 Ph. 330-452-6548 Ph. 330-478-5300 Fax 330-452-8445 Fax 330-478-5566
** RCW INDUSTRIAL SOLUTIONS ** Your Hydraulic Hose Service Specialist Synthetic Slings -Wire Rope - Chain Hydraulic & Pneumatic Repairs
Cylinder - Rams - Pumps Industrial Friction Material
429 Waynesburg RD SE 4810 Southway Avenue SW
Canton, OH 44707 Canton, OH 44706 Ph. 330-452-6548 Ph. 330-478-5300 Fax 330-452-8445 Fax 330-478-5566
** RCW INDUSTRIAL SOLUTIONS ** Your Hydraulic Hose Service Specialist Synthetic Slings -Wire Rope - Chain Hydraulic & Pneumatic Repairs
Cylinder - Rams - Pumps Industrial Friction Material
429 Waynesburg RD SE 4810 Southway Avenue SW
Canton, OH 44707 Canton, OH 44706 Ph. 330-452-6548 Ph. 330-478-5300 Fax 330-452-8445 Fax 330-478-5566
** RCW INDUSTRIAL SOLUTIONS ** Your Hydraulic Hose Service Specialist Synthetic Slings -Wire Rope - Chain Hydraulic & Pneumatic Repairs
Cylinder - Rams - Pumps Industrial Friction Material
429 Waynesburg RD SE 4810 Southway Avenue SW
Canton, OH 44707 Canton, OH 44706 Ph. 330-452-6548 Ph. 330-478-5300 Fax 330-452-8445 Fax 330-478-5566
** RCW INDUSTRIAL SOLUTIONS ** Your Hydraulic Hose Service Specialist Synthetic Slings -Wire Rope - Chain Hydraulic & Pneumatic Repairs
Cylinder - Rams - Pumps Industrial Friction Material
429 Waynesburg RD SE 4810 Southway Avenue SW
Canton, OH 44707 Canton, OH 44706 Ph. 330-452-6548 Ph. 330-478-5300 Fax 330-452-8445 Fax 330-478-5566
www.RCWSUPPLY.comwww.YELLOWSLINGS.com
Synthetic Slings -Wire Rope - Chain Hydraulic & Pneumatic Repairs
Cylinder - Rams - Pumps - Repairs - NewIndustrial Friction Material - Machining
429 Waynesburg Rd. SECanton, Oh 44707Ph. 330-452-6548Fax 330-452-8445
4810 Southway Ave. SWCanton, Oh 44707Ph. 330-478-5300Fax 330-478-5566
10102286
We coat items as small as commercial light fixtures to LARGE drilling equipment including bulk tankers
(tank linings).
4936 Southway St. SW - Canton, Ohio 44706
330-479-9267tankservices.com
10129666
Moneyfor
comMinerals
10129460888-370-0629
Moneyfor
comMinerals
- Locally Owned -
email: [email protected]
2090 Greentree Rd. Suite 140 Pittsburgh, PA 15220
Attn. Utica Shale Mineral OwnersHeld by a lease? Get the income you deserve.
Gas & Oil April 2013 Edition - Dix Communications www.OhioGO.com54
EQT Corp. donates funds to GuernseyCounty Firefighters Association
The EQT Corp. is making its presence known in Guernsey County, not only for its gas and
oil activities, but also because of its generous donations to local entities.
The Guernsey County Firefighters Association was the latest beneficiary of EQT’s generosity.
This past week Mike Warner, president of the Guernsey County Firefighters Association, accepted a check for $23,335 from Jessica Baker, community adviser for EQT, at the Cambridge Fire Depart-ment.
“EQT is happy to support fire departments for their hard work and dedication within their communities,” Baker said. “The check was a result of a grant from EQT’s Foundation.”
Said Warner, “We applied for the grant in mid-December and notified in January that we would get the money. In fact, we were at a training exercise at Cassell Station, which was sponsored by EQT, when we heard the news. It’s a huge asset to all fire depart-ments in Guernsey County and enables us to purchase 15 Panason-ic Toughbook laptops. The laptops will have information readily
Jessica Baker, community advisor for EQT Corp., c, presents a check for $23,335 to Mike Warner, president of the Guernsey County Firefighters Association at the Cambridge Fire Department on Tuesday, Feb. 19. Also pictured are l to r, Byesville Assistant Fire Chief Scott Wilson, Senecaville Fire Chief Jeff Guiler, Lore City Training Officer Mike Warner, Jessica Baker, Cambridge Fire Dept. Capt. Louie Province, and Cambridge Fire Dept. Firefighter Brian Vorhies.
Judie PerkowskiDix Communications
Gas&Oil54
10127440
New 130BBL
New & Used TrailersWATERVAC
P.O. Box 500 - Beach City, OH 44608
1-800-826-5377 or 330-756-2030
[email protected]@gmail.comwww.superiortankinc.com
SALESSERVICEPARTS
New Aluminum
TrailersCRUDE OIL
New Frac
New & Used TrailersSAND
SUPERIORTANK
Continued on pg. 59
Dix Communications - Gas & Oil April 2013 Edition 55www.OhioGO.com
Photo providedBoone Ellis (far right) and Raymond Seiler (second from right) of Turner Oil and Gas Properties are pictured as they presented a check in the amount of $1,000 to the Barnesville Area Reforestation Kommittee (B.A.R.K.) for this year’s annual tree planting project. Accepting the check was Warren Township Trustee and BARK member Jim Grear (second from left). Also on hand was Barnesville Mayor Ron Bischof (far left). The 10th annual planting is tentatively scheduled for Saturday, April 13, 10 a.m. at Barnesville Memorial Park.
Turner Oil supports BARK project
Gas&Oil55
Pumps • Cylinders • Hose AssembliesFabrication • Testing & Diagnosis
Supplies • We Make Hoses While You Wait
330-878-4101960 N Wooster Ave, Strasburg, OH
10070238
Mohican Log Homes
Loudonville, Ohiowww.mohicanloghomes.com 419-994-4088
10125388
Paul G. HesseCell: 330-466-0177Fax: 330-262-0030
John D. PolenCell: 330-466-0176
PO Box 1076474 Industrial Blvd.Wooster, Ohio 44691
10118575
Hydraulic Cylinders • Mobile Wet LinesHoses & Fittings • Machining & Fabrication
12317 Dover Road • Apple Creek, Ohio 44606Phone: 330-857-0001 • Fax: 330-857-2446
Testing, Diagnostics & Repair of Cylinders Pumps & Motors
10127684
Premium Diesel • Gasoline • Motor Oil and LubricantsDrivers have OSHA 10 and SafeLand USA safety training
35 Years experience in the Oil & Gas Industry
10039492
Mike Knowlton Welding, LLCOffi ce: (740) 826-4297www.mikeknowltonwelding.com
Mike Knowlton, Sr., OwnerMike Knowlton, Jr., V.P.
Mike, Jr. Cell (740) 819-4327
Fax: (740) [email protected] Bliss RoadNew Concord, Ohio 43762
10118320
PORTABLE WELDING
Gas & Oil April 2013 Edition - Dix Communications www.OhioGO.com56
Ohio Farmers Union takes 2013 positions on severance taxes, fracking
Severance taxes, the Ohio Turnpike and agriculture nu-trient pollution are among the policy initiatives in the spotlight for The Ohio Farmers Union, a 5,000 mem-
ber family farm and consumer advocacy group.New state and federal level public policy positions are
made by OFU each year at its annual convention. Gone from last year’s policy list is a call for a moratorium on fracking in Ohio until the U.S. EPA issues a report on horizontal drill-ing’s effects on the environment.
“We’ve removed our moratorium request due to the fact that the EPA report is still not complete. We have members in shale counties who stand to benefit from responsible well-drilling, but we also have members greatly concerned about what we don’t know about what fracking will do to water supplies,” said Roger Wise, OFU president.
“We will continue to urge lawmakers to protect farmers and rural landowners and our air and water first. Our new policy position requests that the U.S. EPA include water quality in its ongoing study.”
At the state level, OFU is supporting Gov. John Kasich’s Ohio Turnpike plan with two caveats: First, that northern
Ohio be defined as territory north of U.S. 224 and second that the Ohio General Assembly codify Administration pledges to keep 90 percent or more of Turnpike bond and other revenue in northern Ohio.
OFU is also supportive of raising severance taxes in the state, but differs with Kasich on where new revenue should go.
“Shale counties should see some of that severance tax rev-enue. Keep some of the revenue where it’s collected for public education and infrastructure. We know from other states that roads are going to be torn up in drilling areas, let’s make sure we rebuild them,” Wise said.
OFU is also calling for some severance tax revenue to be set aside for environmental mitigation. Wise also said the group will ask Kasich and legislators to add so-called Natural Gas Liquids to the list of items taxed.
“Conspicuously absent from the governor’s first severance tax proposal were Natural Gas Liquids – the most valuable re-source coming out of the well. Why Ohio would tax silver, but not gold, that’s a question for the governor and the Ohio General Assembly. It appears to be a gift to ‘Big Oil & Gas’,”
Gas&Oil56
Uhrichsville Distribution Center
Warehouse & Office Space4,000 to 45,000 sq. ft with more
available Large parking area
Location off Rt. 250 & Rt. 36 at Trenton EXIT
Call for details • 330-949-6207Available: RJ Corman & Ohio Central
10128349
10125205
STEELKNOWLTON INDUSTRIAL STEEL SUPPLY
ALL METALS ALL SHAPES
visit us on the webwww.knowltonindistrialsteel.com
Local 740-872-6100 • Toll Free 888-280-9370Fax 740-872-9999
MON-FRI 8-5:30 SAT 8-5
ASK ABOUTFREE DELIVERY
Huge Assortment of Bolts & Nuts
All Grades & Stainless
WE HAVE ON PREMISEC.N.C. Plasma Machine
Certified WeldersSheer, Brake & Iron Worker
Flexibend Folder
300 Zane GreyNorwich/Zanesville
AluminumBrass
CopperGalvinized
CarbonStainless
All GradesHot & Cold
1018104541404150
A-36 PlateA-588 Cor-ten
A-514T-1A.R. 400
AnglesBeams
ChannelsCulverts
D.O.M. TubesRace Car TubesExpanded Metals
FlatsSheetPlate
SquaresHexes
Sq. & Rec. TubesRounds
All ThreadRebar Concrete Wire
KISS
Continued on pg. 57
Dix Communications - Gas & Oil April 2013 Edition 57www.OhioGO.com
ment. “However, ODNR maintains that we have the most strin-gent chemical reporting requirements in the nation.”
Environmental groups have long voiced concern about the lack of public disclosure of the specific chemicals used in fracking. The issue has been in the spotlight in recent weeks, after an in-cident in Youngstown involving the illegal dumping of oilfield waste into a storm sewer and subsequent federal criminal charges filed against the business owner involved.
State Rep. Bob Hagan, a Democrat from Youngstown, has com-plained publicly about the lack of information about the chemical composition of the dumped fluids and has introduced legislation that would require increased disclosure.
Teresa Mills, field director for the Ohio office of the Center for Health, Environment and Justice, who filed the petition with the U.S. EPA, said oil and gas companies, under federal law, already
are required to compile information about chemicals used in their operations, with details provided to state and local emergency management offices and fire departments.
The latter are supposed to use the information in developing emergency response plans to deal with potential chemical inci-dents, Mills said.
Under Ohio law, however, such information is filed only with the Ohio Department of Natural Resources and is not readily available for public perusal.
“The chemical inventory and ODNR, you can’t find it,” Mills said. “I have requested it. ... To date, I have not received that in-formation, so I assume that it does not exist.”
Wise said.OFU will also advocate this year for updates to Ohio’s grain
indemnity law. The Grain Indemnity Fund is a producer-funded Ohio Dept. of Agriculture program that keeps farmers whole in the event of a grain elevator failure. No tax dollars or general revenue funds are used to maintain the inspection program or emergency fund.
Shale nounA dense rock formed over millions of years from ancient sediments of decaying, organic material. Although geologists have known about the energy-potential of shale rock for generations, only within the past decade have these resources been considered economical to produce, thanks in large part to the advances in horizontal drilling and the application of the 60-year-old technology of hydraulic fracturing. Shale is known as a “source rock” because it is the source of oil and gas deposits that are contained in sandstone and carbonate formations from which oil and gas are normally produced.
Gas&Oil57
Locally Owned & Operated Since 1972
Mention this ad for20% off your first apparel purchase*
shalewear.comrentwear.com
*Applies to direct sales only
7944 Whipple Ave., N.W. North Canton, Ohio 447201-800-686-5776 • 330-494-5776
Work Wear Designed Specifically for the Oil & Gas Industry
Your FR Solution Flame Resistant garments that meet NFPA & OSHA Standards
SHALEWEAR™ offers protection, durability and comfort.
10117503
10127449
Marvin Yoder, owner10139 St. Rt. 93 NWDundee OH 44624
Forest Management Specialists
“FRACKING SECRECY ILLEGAL” from pg. 48
“OHIO FARMERS UNION” from pg. 56
Gas & Oil April 2013 Edition - Dix Communications www.OhioGO.com58
available for firefighters to identify problems at any emergency, whether it is a fire or a hazardous material spill.
“There is no way we could afford the laptops without EQT’s donation. The laptops are another tool for first responders and for the safety of the citizens of our county.”
According to Panasonic’s website, Toughbook mobile comput-ers have armored cases and are engineered to withstand drops, spills, dust and grime,and to perform in the harshest environments.
Cambridge Fire Chief Jeff Deeks added that the Guernsey Coun-ty Emergency Management Agency will supply a “thumb drive” for information and response to any type of hazardous spill, and includes a mapping program for any location in Guernsey County.
Proponents urge lawmakers to expand natural gas development
The Ohio Petroleum Council (OPC) applauded Governor Kasich’s third State of the State address and said that Ohio’s burgeoning oil and natural gas industry is well
positioned to advance the administration’s goals of continued economic growth and job creation.
“Ohio’s oil and natural gas industry is a proven game-changer in the state’s economic resurgence,” said OPC Legislative Ana-lyst Robert Eshenbaugh. “The arrival of shale energy develop-ment and production in Ohio has brought tens of thousands of new high paying jobs and the promise of a bright economic fu-ture for hard working Ohio families. Our industry not only shares the governor’s desire for progress, we are leading the way.”
In 2012, more than 38,380 high paying Ohio jobs were di-rectly attributed to oil and natural gas activity. These jobs are expected to increase to 143,595 by 2020 and to 266,624 by 2035, according to a recent study by the global information and research firm IHS.
“We are encouraged by the governor’s focus on shale energy,” said Eshenbaugh. “We will continue to work closely with the ad-
ministration and legislative leaders to advance smart regulatory and economic policies for the benefit of all Ohioans.”
OPC is a division of API, which represents all segments of America’s technology-driven oil and natural gas industry. Its 500-plus members provide most of the nation’s energy. The in-dustry also supports 9.2 million U.S. jobs and 7.7 percent of the U.S. economy, delivers $86 million a day in revenue to the government, and since 2000, has invested over $2 trillion in U.S. capital projects to advance all forms of energy, including alternatives.
“We are encouraged by the governor’s focus on shale energy.”
- Robert Eshenbaugh
Energy revolution a ‘game changer’
Gas&Oil58
10076042
330-866-5521 or Toll Free 800-521-7328Commercial or Residential Planting Jobs,
Wholesale Christmas trees and B&B Evergreens,We are the Evergreen Experts!
Growing for over 65 years!
Buy Direct from the Grower and Save $
12 Months of Privacy for your siteswww.smithevergreen.com
Car, Medium Truck, Heavy Duty Truck & Trailer Repair/
Maintenance Service
Tire Sales, Diagnostics, Hydraulics, D.O.T. Inspections, Suspension Work
Welding & Custom Fabrication Mobel Services, Fleet/ Oilfield Onsite
“One Call can handle it all, at PROMARK”
PROMARK TRUCK, TRAILER, AUTO
REPAIR, INC
330.875.3380www.promarkrepair.com
10116516
“EQT CORP DONATES FUNDS” from pg. 54
Dix Communications - Gas & Oil April 2013 Edition 59www.OhioGO.com
available for firefighters to identify problems at any emergency, whether it is a fire or a hazardous material spill.
“There is no way we could afford the laptops without EQT’s donation. The laptops are another tool for first responders and for the safety of the citizens of our county.”
According to Panasonic’s website, Toughbook mobile comput-ers have armored cases and are engineered to withstand drops, spills, dust and grime,and to perform in the harshest environments.
Cambridge Fire Chief Jeff Deeks added that the Guernsey Coun-ty Emergency Management Agency will supply a “thumb drive” for information and response to any type of hazardous spill, and includes a mapping program for any location in Guernsey County.
Hundreds of members of the Ohio Petroleum Council, Ohio Oil and Gas Association and Ohio Shale Coalition urged state legislators to expand natural gas develop-
ment in the state.“Investments in oil and natural gas are refueling Ohio’s econo-
my,” said OPC Legislative Director Robert Eshenbaugh. “Ohio’s energy revolution took off because lawmakers matched prudent fiscal policies with smart and effective regulation. The legisla-ture should build on recent success by allowing greater develop-ment of Ohio’s vast natural gas reserves.”
Proponents urge lawmakers to expand natural gas development
Eshenbaugh addressed more than 200 oil and natural gas ad-vocates, workers, employers and representatives from Ohio’s growing oil and natural gas industry in the Capitol Atrium, as part of the industry’s Oil and Gas Lobby Day on Jan. 23. The event focused on the expanding development of Ohio’s vast natural gas reserves that is revitalizing the state’s economically distressed eastern region and creating thousands of good paying jobs across the state.
A USB flash (thumb) drive is a data storage device that in-cludes flash memory with an integrated Universal Serial Bus (USB) interface. USB flash drives are typically removable and rewritable, and physically much smaller than a floppy disk.
“Mapping will help us find any residence and evacuation routes. This thumb drive will be extremely helpful. Hopefully, we will never have to use it,” said Deeks.
EQT Corp. is one of the largest and oldest natural gas pro-ducers in the Appalachian Basin operating in Pennsylvania, Virginia, West Virginia, Kentucky and Ohio.
ministration and legislative leaders to advance smart regulatory and economic policies for the benefit of all Ohioans.”
OPC is a division of API, which represents all segments of America’s technology-driven oil and natural gas industry. Its 500-plus members provide most of the nation’s energy. The in-dustry also supports 9.2 million U.S. jobs and 7.7 percent of the U.S. economy, delivers $86 million a day in revenue to the government, and since 2000, has invested over $2 trillion in U.S. capital projects to advance all forms of energy, including alternatives.
Gas&Oil59
1818 Hopple Ave. SW Canton, Ohio 44706
12/24/36/48 Volt Alternators
Pickup & Delivery Service Available
Strobe Lights
Electric Motors Pressure Washers
Truck Lighting Wiring Supplies Battery Chargers
Starters
Batteries
Light Plant & Generator Repair Electrical Troubleshooting & Repair
Heaters & APUs
Toll Free (866) 936-0708
10130158
Connolly, Hillyer, Lindsay & Ong, Inc.
Attorneys and Counselors at Law Since 1964
Brad L. Hillyer • Shawn P. Lindsay • James J. Ong Brett H. Hillyer
Oil and Gas Lease?Get your best deal
Call Brad Hillyer before you sign!
Over 30 years of oil and gas experience.
"We do oil and gas title searches, correct titles, remove old leases, pipeline agreements, well plats and permitting”
201 N. Main St., P.O. Box 272 • Uhrichsville, Ohio 44683
(740) 922-4161 • (740) 922-2229 [email protected]
1012
5639
“EQT CORP DONATES FUNDS” from pg. 54
Gas & Oil April 2013 Edition - Dix Communications www.OhioGO.com60
OHIO WELL ACTIVITYby the numbersby the numbersMARCELLUS SHALE UTICA SHALE10 Wells Permitted
4 Wells Drilled 191 Wells Drilled
0 Inactive
0 Not Drilled
0 Plugged
77 Wells Producing
300Wells Permitted
0 Not Drilled
1 Wells Drilling
0 Inactive5 Wells Producing
581 Total Horizontal Permits
Data as of 3/26/13 Source: Ohio Department of Natural Resources
13 Wells Drilling
0 Plugged20 Total Horizontal Permits
Gas&Oil60
T1-11 Unfinished Pine Siding4’x8’x5/8” thick 4” on center grooves
Shop Grade $17.99 each (call for availability) Select Grade $22.99 each
Available at our Massillon, Ohio Location Only
10122913
FEEL YOUNGER, HEALTHIER, AND GET
THE MOST OUT OF LIFE.
SALES AND SERVICE NEW & PREOWNED HOT TUBS
SAUNAS & SWIM SPA
• Reduce Stress
• Increase Blood Flow
• Relieve Pain
• Fun
• Easy To Use
• Feels Good
37 YEARS OF EXPERIENCE
12030 Cadiz Rd., Cambridge, OH 43725 800-223-1240 Toll Free740-432-4818 Office740-260-4380 Cell
BuddyBrillHotTubs.Com10128670
Dix Communications - Gas & Oil April 2013 Edition 61www.OhioGO.com
Petroleum Council says pipeline will create
Ohio jobsThe Ohio Petroleum Council (OPC) has applauded the
Ohio House of Representatives’ passage of HCR 9, a resolution urging the federal government to approve
construction of the Keystone XL pipeline. The resolution now moves to the Ohio Senate for approval.
“Today’s vote shows the growing understanding about the game changing opportunity the oil and gas industry can have on Ohio’s working families,” OPC Executive Director Chris Zeigler said. “The White House has an opportunity to approve the pipeline and create thousands of jobs today. This invest-ment in America will also go a long way to generating govern-ment revenue in the state while enhancing the nation’s energy security.”
“The combined economic benefits of the Keystone XL pipe-line and our state’s emerging shale energy industry will pro-vide millions of Ohioans with a real opportunity for long-term job security and economic prosperity,” Zeigler said.
The OPC applauded the resolution to approve the pipeline, sponsored by Rep. John Adams and supported by Chairman Mike Dovilla, as a step forward in helping fuel job and economic growth in the state. It also noted that the pipeline will increase Ohio’s GDP by $9.6 billion over the next 25 years, according to Canadian Economic Research Institute. Last year alone, Ohio’s oil and gas industry created more than 38,000 new jobs and pro-jections indicate the industry will create over 266,000 additional jobs by 2035.
OPC is an arm of API, which represents all segments of America’s technology-driven oil and natural gas industry. Its more than 500 members provide most of the nation’s energy. The industry also supports 9.2 million U.S. jobs and 7.7 percent of the U.S. economy, delivers $85 million a day in revenue to our government, and since 2000, has invested over $2 trillion in U.S. capital projects to advance all forms of energy, including alternatives.
Gas&Oil61
1003
9562
Fleet Maintenance • InspectionsFull Service • Trailer Repair
Towing Available
“Put Our Experience To Work For You”
330-488-20001-888-488-2009330-488-2000
1-888-488-2009Located on Rts. 30 & 44 • 383 East Walnut • East Canton
Ron Braucher, Owner
10127508
Gas & Oil April 2013 Edition - Dix Communications www.OhioGO.com62
Zeigler hired to lead Ohio Petroleum CouncilChris Zeigler, former chief of staff to Congressman Pat
Tiberi, is the Ohio Petroleum Council’s new executive director, the American Petroleum Institute announced.
“Zeigler joins the council at one of the most exciting times in Ohio’s energy history,” said API Senior Director of State Rela-tions Rolf Hanson. “Ohio is poised to become one of the nation’s leading energy producers, which can be an enormous economic benefit for the state. Zeigler will be focused on fostering smart regulations and fiscal policies to sustain the economic prosperity that shale energy development offers hard working Ohio fami-lies.”
Zeigler, who brings over 20 years of experience in successfully bringing together diverse groups of government, civic and busi-ness stakeholders, will lead OPC’s advocacy efforts and serve as principal spokesperson. In addition to serving as Congressman Tiberi’s chief of staff since 2001, Zeigler has worked for several Ohio legislators, including former Ohio House Speaker Jo Ann Davidson.
He received a BA in political science from The Ohio State University. He begins work with OPC on March 11.
OPC is a division of API, which represents all segments of America’s technology-driven oil and natural gas industry. Its 500-plus members provide most of the nation’s energy. The in-dustry also supports 9.2 million U.S. jobs and 7.7 percent of the U.S. economy, delivers $86 million a day in revenue to the government, and since 2000, has invested over $2 trillion in U.S. capital projects to advance all forms of energy, including alternatives.
Stimulation stim·u·late·tion noun: Generally, any process performed on an oil or natural gas well to increase the flow of energy to the surface. Stimulation processes include fracturing, scale and paraffin removal, controlling unwanted water, and certain types of perforating.
Gas&Oil62
4918 Kidron Rd.Kidron, OH 44636
330-857-20211-800-828-1213
4918 Kidron Rd.
• OVER 112 YEARS IN BUSINESS
• FREE DELIVERY
• SPECIALIZING IN AGRICULTURAL, COMMERCIAL & REMODELING PROJECTS
• CADD SERVICE
• PROFESSIONAL LUMBERYARD
www.gerberlumber.com
10127685
Dix Communications - Gas & Oil April 2013 Edition 63www.OhioGO.com
1. Carroll County 2242. Harrison County 71
3. Columbiana County 674. Jefferson County 35
Guernsey County 35Monroe County 35
5. Noble County 30 6. Belmont County 26
7. Mahoning County 168. Portage County 14
9. Stark County 139. Tuscarawas County 13
10. Coshocton County 511. Trumbull County 4 12. Holmes County 3Muskingum County 3
13. Knox County 214. Ashland County 1 Geauga County 1 Medina County 1
Wayne County 125 50 75 100 125 150 225
TOP COUNTIES WITH HORIZONTAL DRILLING ACTIVITYBY NUMBER OF SITES
WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, WELL SITES IN VARIOUS STAGES: PERMITTED, DRILLING, DRILLED, COMPLETED, PRODUCING, PLUGGEDDRILLED, COMPLETED, PRODUCING, PLUGGEDDRILLED, COMPLETED, PRODUCING, PLUGGEDDRILLED, COMPLETED, PRODUCING, PLUGGEDDRILLED, COMPLETED, PRODUCING, PLUGGEDDRILLED, COMPLETED, PRODUCING, PLUGGEDDRILLED, COMPLETED, PRODUCING, PLUGGEDDRILLED, COMPLETED, PRODUCING, PLUGGEDDRILLED, COMPLETED, PRODUCING, PLUGGEDDRILLED, COMPLETED, PRODUCING, PLUGGEDDRILLED, COMPLETED, PRODUCING, PLUGGEDDRILLED, COMPLETED, PRODUCING, PLUGGEDDRILLED, COMPLETED, PRODUCING, PLUGGEDDRILLED, COMPLETED, PRODUCING, PLUGGEDDRILLED, COMPLETED, PRODUCING, PLUGGEDDRILLED, COMPLETED, PRODUCING, PLUGGEDDRILLED, COMPLETED, PRODUCING, PLUGGEDDRILLED, COMPLETED, PRODUCING, PLUGGEDDRILLED, COMPLETED, PRODUCING, PLUGGEDDRILLED, COMPLETED, PRODUCING, PLUGGEDDRILLED, COMPLETED, PRODUCING, PLUGGEDDRILLED, COMPLETED, PRODUCING, PLUGGEDDRILLED, COMPLETED, PRODUCING, PLUGGEDDRILLED, COMPLETED, PRODUCING, PLUGGEDDRILLED, COMPLETED, PRODUCING, PLUGGEDDRILLED, COMPLETED, PRODUCING, PLUGGEDDRILLED, COMPLETED, PRODUCING, PLUGGEDDRILLED, COMPLETED, PRODUCING, PLUGGEDDRILLED, COMPLETED, PRODUCING, PLUGGEDDRILLED, COMPLETED, PRODUCING, PLUGGEDDRILLED, COMPLETED, PRODUCING, PLUGGEDSOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 3/26/13
Gas&Oil63
Gas & Oil April 2013 Edition - Dix Communications www.OhioGO.com64
Companies
Illegal dumping of up to 20,000 gallons of gas and oil wastewater that wound up in
the Mahoning River caused two Youngstown companies owned by Ben Lupo to be shut down by the state on Feb. 7.
The Ohio Department of Nat-ural Resources issued a release stating it had served orders to D&L Energy and Hardrock Ex-cavating, located at 2761 Salt Springs Road in Youngstown, that permanently revokes operat-
ing permits for both companies. The action came after employees of the companies were caught dumping oil field waste into a storm sewer that empties into the Mahoning River watershed. The revo-cation means D&L must cease its injection well operations in the state, plus its storage at the site and any brine hauling.
“Ohio has enacted some of the most comprehensive oil and gas regulations in the nation to safeguard the public and the environment,” ODNR Director James Zehringer said in a statement. “ODNR treats all allegations of wrong-doing involving oil field waste very seriously and will continue to aggressively investigate each of these cases to ensure violators are held accountable.”
Industry officials praised the state response to the situation but cautioned against making judgments about others involved in Ohio’s growing horizontal hydraulic fracturing, or fracking, in-dustry.
“If an individual or company has willfully violated Ohio law regarding the proper disposal of oil field wastewater and has jeop-ardized the health and safety of the public and the environment, we believe they should be prosecuted to the fullest extent of the law,” Thomas Stewart, executive vice president of the Ohio Oil and Gas Association, said in a released statement. “We caution that the actions of one individual or company should not diminish the reputation of injection well operators who strictly abide by the state’s laws and regulations.”
The ODNR received an anonymous tip on Jan. 31 about the
dumping at the Salt Springs Road facility and immediately began work-ing with the Ohio EPA to stop and contain the release of the waste into the stream. Investigators reportedly confirmed the tip the following day when they watched the illegal activity as it occurred.
Ohio EPA Director Scott Nally was also quoted in the ODNR state-ment as saying, “We are working as fast as possible to complete this cleanup...”
According to the violation issued to the companies by the EPA, the oil-based mud, wastewater, brine and brine residue generated by the oil and gas industry during drilling was intentionally discharged into the storm sewer by company employees under the direction of owner Ben Lupo. The EPA said the release impacted the Mahoning River and one of its tributaries. Initial abatement actions taken by the EPA include:
• Stopping the release of the wastewater into the storm sewer.• Establishing and maintaining containment systems in the tributary
and the river to collect the oil.• Removing the oil and oil-impacted material from the waterway.• Removing the grossly impacted debris media to prevent leaking into
waterway.• Cleaning impacted sewer lines.• Properly managing waste material.• Maintaining remediation until wa-
terway quality is restored to prerelease condition.
Lupo, 62, was charged with violating the federal Clean Water Act and faces
up to three years in prison, a $250,000 fine and a year of supervised release if convicted.
Marc Kovac, Dix Capital Bureau, contributed to this story.
SHUT DOWN
for illegal dumping
Laurie HuffmanDix Communications
“We are working as fast as possible to complete this cleanup...”
- Ohio EPA Director Scott Nally
A FREE monthly PublicAtion
Ohio
octobER 2012 • www.ohiogo.com
FOR THE LATEST IN GAS & OIL NEWS
VISIT OHIOGO.COM
Gas&Oil64