april 2015 gas & oil magazine-ohio edition

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UTOPIA PIPELINE WILL ENTER WAYNE COUNTY

BRAINSTORMING IDEAS FOR SHALE ACADEMY

SHALE-ABRATION SET FOR JUNE

PROPOSED GAS & OIL TAX OPPOSED

FARM BUREAU TO HOST SAFETY BRIEFING

PRIDE OF THE HILLS TO ADD 40 NEW EMPLOYESS

TREMORS SHAKING UP WELL DISCUSSIONS

RULES FOR CHEMICAL DISCLOSURE

WOMEN IN ENERGY

KEEP THE BOOM ALIVE

BILL TO REPEAL ETHANOL MANDATE

PIPELINE AWARD PRESENTED

UNITIZATION BILL PASSES HOUSE

UPCOMING EVENTS

PRESSURE FOR TOUGHER SAFETY RULES

OFFICIALS DISCUSS ROVER PIPELINE

Table of Contents

Andrew S. Dix(:+P_'KP_JVTJVT

G.C. Dix II.*+P_00'KP_JVTJVT

David Dix+,+P_'KP_JVTJVT

EXECUTIVE EDITORS

Ray Booth9)VV[O'KP_JVTJVT

Rob Todor9;VKVY'KP_JVTJVT

Lance White3>OP[L'KP_JVTJVT

Roger DiPaolo9+PWHVSV'KP_JVTJVT

Cathryn Stanley*:[HUSL`'KP_JVTJVT

Niki Wolfe5>VSML'KP_JVTJVT

Judie Perkowski17LYRV^ZRP'KP_JVTJVT

Kimberly Lewis23L^PZ'KP_JVTJVT

Erica Peterson,7L[LYZVU'KP_JVTJVT

Cathryn StanleyCathryn StanleyCathryn StanleyCathryn StanleyCathryn StanleyCathryn StanleyCathryn StanleyCathryn StanleyCathryn StanleyCathryn StanleyCathryn StanleyCathryn Stanley

REGIONAL EDITORS

PUBLISHERS

Gas&Oil2Gas&Oil2


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OHIO SUPREME COURT ACCEPTS JURISDICTION

INNOVATIVE THINKING GENERATES BUSINESS

STRONGER PENALTIES ON ILLEGAL DUMPING

OOGA MEETING HAS RECORD ATTENDANCE

NOBLE COUNTY ADDRESS ON SHALE IMPACT

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Gas & Oil is a monthly publication jointly produced by Dix Communications.

Copyright 2015.

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Bobby Warren Dix Communications

WOOSTER Can there be Utopia here? Before answering, recognize it is yet another proposed pipeline through Wayne County.

Ken Collins, a consultant with Kinder Morgan, a Houston-based energy infrastructure company, met with county offi -cials to inform them about the proposed Utopia East line. If approved, it will run about 240 miles and feature two 12-inch lines to carry ethane, a refi ned product. The ethane will be converted to ethylene, which is used in the manufacturing of plastics. It is considered a wet gas.

The line will start in Harrison County and move northwest to Fulton County. There will be four points feeding into the line in Harrison and Carroll counties. The pipeline will enter Wayne County east of Mount Eaton in Plain Township and exit west of New Pittsburg. Affected townships in Wayne are Paint, Salt Creek, East Union, Franklin, Wooster, Plain and Chester.

Because the pipeline will be only in Ohio, the U.S. Army Corps of Engineers will be the lead agency and not the Fed-eral Energy Regulatory Commission. Other agencies that will be involved in the process include the Ohio Department of Natural Resources, the Ohio Environmental Protection Agency and U.S. Fish and Wildlife Service.

Commissioner Ann Obrecht wanted to make sure someone from Kinder Morgan was going to meet with landowners and township trustees.

We want to make sure landowners are treated fairly and the land is still useable, Obrecht said at Wednesdays meet-ing.

Collins said it will happen. The pipeline is still in its pre-liminary stages, and no open houses have been scheduled. But, people will talk to landowners and the trustees.

We will meet with all stakeholders along the route, Col-lins said.

Duane Wood, program administrator for the Wayne Soil and Water Conservation District, raised concerns about top soil, subsoils and the compaction of top soil.

We want to make sure the soil gets put back as close to original as possible, Wood said.

Farmers want the top soil saved and put back, and they do not want too much rock in the subsoils. Additionally, there is a lot of systematic drainage tile in Wayne County, and Wood would like to see a drainage contractor available to deal with any issues post construction.

It could be a long time before problems arise regarding drainage, Obrecht said.

Wood also spoke about fragipan, a layer in the soil that limits water. If the fragipan layer is broken, water will fl ow through it and likely cause a wet stream to appear.

While the pipeline will require about 50 feet of permanent easement, the number will likely be 100-150 feet during con-struction to allow for equipment on the property. Wood said soils will be compacted as pipe is delivered, and he wanted to know what access farmers will have during construction when the route cuts through their farms.

A lot of people are concerned about pipelines and what they will do to their properties, Obrecht said.

Collins said he will take all of the questions back to Kinder Morgans experts for answers.

The project is expected to employ hundreds of union la-borers, and if Kinder Morgan receives a permit to construct the pipeline, several sections will be under construction at the same time. Letters have been sent to the affected property owners. A survey is expected to be done in the spring.

The application and permit is expected to come in January 2016, with construction beginning November 2016 and the line being in service in January 2018 for the Utopia East pipe-line. It will carry about 50,000 barrels a day.

Reporter Bobby Warren can be reached at 330-287-1639 or [email protected]. He is @BobbyWarrenTDR on Twitter.

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STEUBENVILLE- Officials from education and indus-try met recently to brainstorm ideas for the Utica Shale Academy on how to better prepare students for the oil and gas field.

A dozen people representing the Jefferson County Educa-tional Service Center, Utica Shale Academy, Southern Local School District, Ohio Department of Education, Barnesville Exempted Vocational Service District, Escalys, Express En-ergy Services, and Utica East Ohio LLC gathered at JCESC for a Utica Shale Academy Advisory Council meeting and discussed ways to fine tune the curriculum to benefit both students and their potential employers. A teleconference was also conducted concerning the OPEN Petroleum Education Network, which provides online courses for the shale school.

We all have different roles and our goal is to educate kids and get them jobs in oil and gas, said Dr. Chuck Kokiko, chief academic officer at JCESC, which sponsors the academy at Southern Local High School. We wanted provide them a link to the industry where they can get jobs. Weve fulfilled that promise and the kids are learning. The key to being successful is to include folks like you.

The idea was borne of talks last year between Southern Local Superintendent John Wilson, Dr. Kokiko and JCESC Superintendent Dr. George Ash. Since opening its doors, the program has more than 40 students involved in a blended learning curriculum using a mixture of virtual learning, hands-on activities, lectures from shale industry representatives and field trips to area rig sites. Utica Shale Academy Director Eric Sampson provided a glimpse of a typical day for a student, saying the flexibility of blended learning enables them to work at home or at school to catch up on general classes required for graduation, in addition to shale-related studies.

Students have core courses and work on their PetroEd modules, Sampson said, adding that current modules include International Association of Drilling Contractors (IADC) Rig Pass, Introduction to the Petroleum Industry DIT Drilling Fo-cus, and Introduction to Well Control . We visit rigs for field trips and supplement with speakers. [Brian Logue of Express Energy Services] has talked four or five times. We have 45 stu-dents and 33 are enrolled in PetroEd trying to get certified for jobs or theyre going to college for a degree.

Sampson said PetroEd had a full catalog of courses but could develop more specific ones if necessary, adding leaders

were also looking at career tech certification. Moreover, there were articulation agreements with two colleges but he hoped that will grow even more.

Cameron Thompson, a representative of PetroEd, gave an overview of the course catalog. He said it rains mostly for drilling contractors and has worked with the likes of Chesa-peake and Chevron, while the program supplements existing courses at the university and high school levels. He said there were roughly 400 different courses available but more could also be developed to meet specific needs.

Thompson described various modules and explained how students would log into the system to study the programs and perform post-assessments. OPEN worked with such sites as BP, Texas A&M and Halliburton to develop the catalog and uses industry sponsorships to defray costs. Since all of the con-tent is online, it does not require instructors or textbooks. Pro-grams can be translated in languages such as English, Spanish and Vietnamese and it further includes online assessments which are graded in real time. Thompson said pupils would also complete a final assessment. On the administrative side, educators and even industry officials would be able to access test results and related information.

Dr. Kokiko said the group would look at introductory courses and officials should be cognizant of the level of train-ing and skill set for the high school students. He also queried industry reps about what they were looking for in student pre-paredness. Mark Hay and Chad Butler of the UEO Buckeye fractionation facility in Scio said instrumentation was in de-mand in this area, while Logue also mentioned mudding and wirelines. Discussion ensued and Kokiko said courses could be designed through PetroEd or some other vendor.

Kevin Williams, who works with agricultural and environ-mental Pathway systems for ODE, said the blended learning concept was innovative. He said the ODEs Pathways program included four courses from hydraulics and electrical systems to environmental science at a minimum of 450 hours. The oil and gas program was developed with Stark State University and mirrors an introductory course at the college.

Following the two-hour session, the local leaders expressed their pleasure with the conversion school and the opportuni-ties it gives to students and the community. Hay and Butler expressed their desire to work with the conversion school, be it as lecturers or for field trips to the Harrison County facility.

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Angela Hannah, who represented Barnesville EVSD, said an-other USA site was being eyed for her area in Belmont Coun-ty and Dr. Ash noted that fi ve Utica Shale Academy schools were being eyed in the region.

Dr. Kokiko encouraged industry offi cials to spread the word so more companies could get involved for the better-ment of the academy and community.

We all have different roles and the goal is to educate kids and get them jobs in oil and gas, Dr. Kokiko concluded, say-ing further discussion would occur over the curriculum.

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OLD WASHINGTON The Cambridge Area Chamber of Commerce is hosting the second annu-al Friends and Family Fest 2015 - A Shale-abration, on June 20 at the Guernsey County Fairgrounds.

This day-long event celebrates Ohios energy production and Ohioans stewardship of the land.

The Chamber of Commerce is currently seeking sponsors for this annual event being held for its second year. Eclipse Resources and the International Union of Operating Engi-neers have each signed on as Platinum sponsors. Buckeye Water Service is a Silver sponsor.

Additional sponsorships are currently being offered at multiple levels with various benefits and promotional oppor-tunities.

Friends and Family Fest is a free event, due to partner-ships with interested businesses and organizations. Sponsors will have exhibit booths along with educational and product displays on the fairgrounds. The fairgrounds can accommo-date large equipment displays and demonstrations. An ag-gressive marketing campaign and community outreach plan is underway, in order to give sponsors ultimate recognition and exposure.

The Chamber of Commerce is securing stage entertain-ment to be announced in a few weeks. Returning this year for day-long entertainment are the Dock Dogs and Dan Armitage, the Buckeye Sportsman. The Hawg Trough and childrens Trout Pond are scheduled for interactive enter-tainment throughout the day. The Oglebay Good Zoo is sure to be an attraction for young children and families. The Ohio Oil and Gas Energy Education Program is developing en-tertainment that will be exciting for all ages. And the Mobile Energy Education Unit will make another appearance this year.

This event brings the community and the oil & gas com-panies together for increased understanding and knowledge of the oil & gas industry, said President Jo Sexton of the Cambridge Area Chamber of Commerce. At the same time, the festival will include many family activities that are sure to

entertain and engage all age groups. It will be family friendly and educational. And of course, food vendors will be serving up festival fare! Sponsor packages are as follows:

Platinum $10,000 (limited sponsorships available) Pre-event promotions: logo/name in all pre-event

marketing 20 free tickets to VIP reception Event day promotions; page ad in program; banner;

public address announcements Prime booth space and equipment display space

Gold $7,500 (limited sponsorships available) Dock Dog sponsor day of event runs all day 12 free tickets to VIP reception Event day promotions; page ad in program; banner,

public address announcements Preferred booth space and equipment display space

Silver $5,000 (unlimited sponsorships available) 6 free tickets to VIP reception Event day promotion; bold listing in program; banner,

public address announcements Booth space.

Additional sponsorships are available, by request, for indi-vidual events and activities including those for: stage spon-sorship, stage acts and bands, parking, childrens trout pond, the Oglebay Good Zoo, sphering and the Kiss the Pig Con-test, among others.

Booth rentals are also available.

Sponsorship inquiries should be directed the Cambridge Area Chamber of Commerce at 740-439-6688, or by email to [email protected].

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Marc Kovac Dix Capital Bureau

COLUMBUS Industry representatives voiced opposition on March 3 to Gov. John Kasichs proposed tax increase on oil and gas produced via horizontal hydraulic

fracturing.The Ohio Oil and Gas Association, the American Petro-

leum Institute and others reiterated what theyve been saying for several years, since the governor initially proposed the sev-erance tax change that is, a tax increase would drive away exploration and investment and any resulting economic boost in eastern Ohios emerging shale oilfi elds.

Shawn Bennett, executive vice president of the Ohio Oil and Gas Association, told the Ohio Houses Ways and Means Committee that dropping oil prices have prompted a retreat in investment in the state.

He offered a list of companies who have pulled out of Ohio, waiting for commodity prices to rebound.

In December of 2014, Ohio had a record 59 rigs operating in the Utica, Bennett said in testimony submitted to lawmak-ers. Today, a third of those rigs have simply left the state....

He added, The legislature should not add additional tax burdens on an already-struggling industry. The proposed sev-erance tax before this legislature will dramatically decrease the chance of success in this effort and only serves as a deter-rent to future recovery, growth and stability in Ohios oil and gas industry.

The administration and others have countered such asser-tions, saying Ohios current and proposed severance tax rates are well below other shale oil states and would not deter ex-ploration and production.

Kasichs budget proposal calls for increased tax rates for oil and gas produced via fracking to 6.5 percent. Twenty percent of the proceeds would be directed to communities in eastern Ohios emerging shale oilfi elds.

Im disappointed by those who say the severance tax re-form will kill the industry, Kasich said during his State of the State speech earlier this month. Thats a joke. Thats a big fat joke because Ive talked to them in private. And Ill tell you what, our severance tax will still be competitive with our energy-rich states. And you know what? Lets reform the sev-erance tax so all Ohioans can have lower income taxes and we all benefi t from this whole industry.

But Chis Zeigler, executive director of the American Petro-leum Institute of Ohio, said there could not be a worse time to raise severance taxes.

There should be no doubt that development of Ohios shale resources in 2015 will look markedly different from just last year, he said in testimony submitted to the Houses Ways and Means Committee. The impending economic impact on supporting small businesses and local governments is yet to be determined. Again, there is never a good time to be the recipi-ent of increased taxes, but for the oil and natural gas industry and supporting businesses the results could be devastating.

Brian Chavez, co-owner of an independent oil and gas com-pany and speaking on behalf of the Southeastern Ohio Oil and Gas Association, said businesses like his are already pay-ing more in taxes than other industries.

The proposed severance tax increase will limit our ability to continue to produce oil and gas we have worked genera-tions to develop and maintain, he said in testimony to law-makers. The Utica and Marcellus shales are a blessing for Ohios future, but to develop them is extremely expensive, and most producers are hesitant to stake their entire company to drill these wells.

Some other groups that submitted testimony to lawmakers Tuesday urged a severance tax increase but with more pro-ceeds directed to eastern Ohio communities affected by the industry.

While no one likes to increase taxes, in reality this in my mind is an impact fee, said Harrison County Commissioner Don Bethel. Most of our county villages and townships re-ceive little benefi t from this industry, and with many oil and gas employees living and working outside a municipality, our villages are without much needed income tax but yet deal with a multitude of issues and extreme pressure to upgrade their severely inadequate infrastructure. Currently, Harrison County has over $85 million of infrastructure issues that have needed done for years. Our villages have spent three decades in poverty since the coal industry waned, and many of our re-tirees are very regretful that they didnt ask for a severance tax or impact fee on coal.

Marc Kovac is the Dix Capital Bureau Chief. Email him at

[email protected]

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Belmont, Guernsey, Monroe, Noble and Washington County landowners and interested residents are in-vited to attend a special oil and gas briefing on safety procedures and practices, sponsored by Farm Bureau offices in area counties. The briefing will be held at the Mid-East Ca-reer Center, 57090 Vocational Road, Senecaville, Ohio April 20 at 7 p.m.

The program will be facilitated by Dale Arnold, Director of Energy, Utility and Local Government Policy with the Ohio Farm Bureau Federation (OFBF). Joining Arnold will be Charles Dixon, Director of Safety and Workforce Develop-ment with the Ohio Oil and Gas Energy Education Program (OOGEEP).

Landowners in the area understand that they have a re-sponsibility to monitor oil and gas production that goes be-yond lease agreements, Arnold said. Many are looking for resources that can help them understand the well site safety procedures workers apply on a daily basis and how they work with local first responders to address emergency situations. They want to know what role they and other interested com-munity stakeholders can support the process.

OOGEEP has developed a comprehensive training pro-gram on responding to oilfield emergencies and a permanent training facility to support local emergency responders (fire-

fighters, police, state agencies, etc.) by enabling them to under-stand and implement effective emergency response practices at typical oilfield drilling sites and production sites. This pro-gram was the first of its kind in the country.

During the briefing, participants will explore technology ex-pansion impacting Ohios oil and gas industry and what proce-dures producers use in evaluating and responding to produc-tion site emergencies.

Many local residents have noticed emergency situations in several areas around the region, including Ohio, Betsy Anderson, Organization Director for Belmont, Guernsey, Monroe, Noble and Washington County Farm Bureaus said. While the briefing is not intended to be a training program, meeting participants can get a better understanding of what they need to know, see and do with accident prevention, on-site facility operations and working with energy producers on a regular basis.

The Ohio Farm Bureau Federation is the states largest gen-eral farm organization, encompassing 88 county Farm Bureau organizations and over 208,000 member families statewide. For additional information contact Farm Bureau (740) 425-3681

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Christine Pratt Dix Communications

KILLBUCK, OH After playing host to a recent job fair, Pride of the Hills is pre-paring to welcome some 40 new employ-ees into the fold.

In the past fi ve years, the business went from employing just over 50 workers to around 300.

Pride of the Hills Manufacturing Inc. is a manufacturer and supplier of oil fi eld and natural gas production and automa-tion equipment. PHMI is parent company to Grace Automa-tion, which focuses on sales and support service in the fi eld, and Pride of the Hills Manufacturing of Wooster, which spe-cializes in sheet metal fabrication.

At a recent on-site job fair, the company took in more than 100 applications from individuals, 71 of whom stayed for a pre-sentation, which included welder testing, an orientation and tour of the facility, according to administrator Tammy Murray Parsons, who considers the event to have been wonderfully successful.

Currently, applications are being reviewed and several can-didates have moved on to second interviews, she said, noting that while some may be hired in the short term, other applica-tions will remain on fi le to be reconsidered as jobs open in the future.

The organization currently has available 40 positions from entry level to skilled trades.

The company has found great success in development of a gas production unit, which helps oil companies separate gas from liquid. It also has started production of a patent-pending gas conditioning trailer, which allows producers to use natu-

ral gas to power engine or to blend natural gas with diesel to power engines used in the process, according to Matt Smith, sales and support service.

While the companys growth spurt has occurred largely over the last fi ve years, Pride of the Hills has been around, under the tutelage of Curt Murray Sr., for 40 years, said Parsons.

The company has a national and international presence in the industry, according to Smith, who said fi eld employees do the bulk of their work within a 6-8 hours radius of Holmes County.

The companys approach to hiring, according to Parsons, goes along with our vision of family. If you have an oppor-tunity to help, you have an obligation to do so. We hire them into our family.

In the area, she said, theyve given many employees and their families their fi rst exposure to benefi ts, including health care and investment opportunities. The companys Pride Uni-versity provides training for unskilled and skilled employees, helping to send the message to employees, their children and grandchildren that the American dream is alive and well.

Parsons said the company enjoys benefi tting from the strong ethics of the local work force. A person with the right char-acter attributes can be trained to do very well, she said, add-ing, We get excellent candidates people who are willing to work hard, she said. We like to make an investment in our employees and they make an investment in us.

Reporter Christine Pratt can be reached at 330-674-5676 or [email protected]. Shes @drnewsgirl on Twitter.

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Marc Kovac Dix Capital Bureau

COLUMBUS Theres one message that has been heard loud and clear at the Statehouse: The good people of the Ma-honing Valley are tired of earthquakes and ex-

pect their public offi cials to do everything in their power to prevent future fracking-induced tremors.

Companies that pump massive amounts of salty oilfi eld waste into the ground now are required to install seismic mon-itors to track earth movement.

When those devices record quakes even small ones the state can step in and shut down operations until it can as-sess the situation and devise plans to prevent additional seis-mic events.

Which brings us to the nearly nine-hour hearing that took place in Columbus in March, before a state panel that is con-sidering an appeal to restart operations at a Trumbull County injection well where a couple of minor quakes happened last summer.

Both sides have legitimate-sounding arguments.American Water Management Services Inc. says the two

seismic events a magnitude 1.7 tremor in July and a 2.1 about a month later were minor and were not felt by the general populace or big enough to cause damage.

Company offi cials want to restart injections at the site, only at a reduced volume, to see whether the reduction would help control any ground movement. The state allowed similar ac-tivities at a Washington County well, with the results showing a correlation between reduced injections and reduced seis-micity.

The company also points out that it has invested millions of dollars in the operation, and offi cials arent happy that the states been stringing them along with promises of restarted activities that never come to fruition.

Add to that the ongoing development of guidelines by the state for dealing with wells that are tied to ground movement. Theres no timeline for adopting any new guidelines, leaving AWMS in limbo.

We believe that it is fundamentally unfair to enforce a to-tal suspension against AWMS and this well when we submit the best scientifi c evidence and opinion support resumption of this well at some level, John Keller, legal counsel for AWMS, told the Ohio Oil and Gas Commission. ... If the state truly desires to take at least six months if not longer to come up with this statewide policy, at least we should not have to have 95 percent of our revenue in this $5 million facility curtailed for that entire period when admittedly we complied with all of the requirements of the permits and the law and have cooper-ated in all respects.

The state counters that similar lower-level seismic activity occurred at the Northstar well, about seven miles away, months before a magnitude 4 earthquake shook the Youngstown area. That bigger quake was tied to Northstar, which was shut down.

State offi cials are concerned that the quakes will get bigger if injection activity at the Weathersfi eld well continues. And that could have dire consequences for the schools, homes, businesses and other community areas nearby.

The state is trying to develop a policy, criteria, in place to minimize the risk, said Brett Kravitz, legal counsel for the state. We do not want Weathersfi eld to be an experiment. They deserve to have an opportunity to have the division for-mulate this policy as a way of minimizing risk....

Again, both sides offer legitimate-sounding arguments. The ultimate decision in this case will have repercussions

for eastern Ohios fracking-related activities.The question is whether state offi cials remember the out-

cry from residents affected by earlier fracking-induced earth-quakes and how that public pressure will affect the ultimate state policy on wells that cause seismic activity.

Marc Kovac is the Dix Capital Bureau Chief. Email him at [email protected] or on Twitter at OhioCapitalBlog.

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Matthew Daly and Josh Lederman Associated Press

WASHINGTON (AP) On March 20, the Obama administration said it is requiring companies that drill for oil and natural gas on federal lands to dis-close chemicals used in hydraulic fracturing, the first major federal regulation of the controversial drilling technique that has sparked an ongoing boom in natural gas production but raised widespread concerns about possible groundwater con-tamination.

A rule to take effect in June also updates requirements for well construction and disposal of water and other fluids used in fracking, as the drilling method is more commonly known.

The rule has been under consideration for more than three years, drawing criticism from the oil and gas industry and envi-ronmental groups alike. The industry fears federal regulation could duplicate efforts by states and hinder the drilling boom, while some environmental groups worry that lenient rules could allow unsafe drilling techniques to pollute groundwater.

Reaction to the rule was immediate. An industry group an-nounced it was filing a lawsuit to block the regulaion and the Republican chairman of the Senate Environment and Public Works Committee announced legislation to keep fracking regulations under state management.

The final rule hews closely to a draft that has lingered since the Obama administration proposed it in May 2013. The rule relies on an online database used by at least 16 states to track the chemicals used in fracking operations. The website, Frac-Focus.org, was formed by industry and intergovernmental groups in 2011 and allows users to gather well-specific data on tens of thousands of drilling sites across the country.

Companies will have to disclose the chemicals they use within 30 days of the fracking operation.

Interior Secretary Sally Jewell said the rule will allow for continued responsible development of federal oil and gas re-sources on millions of acres of public lands while assuring the public that transparent and effective safety and environmen-tal protections are in place.

Jewell, who worked on fracking operations in Oklahoma long before joining the government in 2013, said decades-old federal regulations have failed to keep pace with modern technological advances.

Ive personally fracked wells, so I understand the risk as well as the reward, Jewell said. We owe it to our kids to get this right.

Fracking involves pumping huge volumes of water, sand and chemicals underground to split open rocks to allow oil and gas to flow. Improved technology has allowed energy companies to gain access to huge stores of natural gas underneath states from Wyoming to New York but has also raised widespread concerns about alleged groundwater contamination and even earthquakes.

The Interior Department estimated the cost of complying with the rule would be less than one-fourth of 1 percent of the cost to drill a well.

Despite that assurance, the new rule drew immediate criti-cism from energy industry representatives and congressional Republicans, who warned it could disrupt the yearslong en-ergy boom in the U.S.

This administration never misses a chance to appease radi-cal environmentalists, said House Speaker John Boehner, R-Ohio.

The new rule amounts to regulating a process that is al-ready properly regulated by states, Boehner said. Mean-

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while, the people who work hard every day to produce Ameri-can energy safely and reliably will have to bear needless costs and headaches.

Two groups, the Independent Petroleum Association of America and the Western Energy Alliance, filed suit in federal court in Wyoming seeking to block the rule. The suit claims the rule would impose unfair burdens that will complicate and frustrate oil and gas production on federal lands.

Sen. James Inhofe, R-Okla., chairman of the Senate envi-ronment panel, introduced a bill to keep regulations under state management, saying the new rule adds unnecessary, duplicative red tape that will in turn make it more costly and arduous for our nation to pursue energy security.

The League of Conservation Voters called the bill an im-portant step forward to regulate fracking. Even so, the group was disappointed with the continued reliance on FracFocus, a private website that has taken on increasing prominence in recent years as it collects data on drilling sites.

The final rule improves on previous versions, said Madeleine Foote, legislative representative for the conservation league, but it represents a missed opportunity to set a high bar for protections that would truly increase transparency and reduce the impacts (of fracking) to our air, water and public lands.

While the new rule only applies to federal land which makes up just one-tenth of natural gas drilling in the United States the Obama administration is hoping the rule will serve as a model and set a new standard for hydraulic fractur-ing that states and other regulators will follow.

Brian Deese, a senior adviser to President Barack Obama, said the rules for public lands could serve as a template that the oil and gas industry could adopt to help address the pub-lics concern about the health and safety of fracking.

Ultimately, this is an issue that is going to be decided in state capitals and localities as well as with the industry, he said.

The rule will make the Interior Departments Bureau of Land Management the largest customer of FracFocus. Nearly 95,000 wells nationwide are registered with the site, which is managed by the Ground Water Protection Council and the In-terstate Oil and Gas Compact Commission. Both groups are based in Oklahoma. The groundwater council is a nonprofit organization while the oil and gas commission is a collection of state officials from energy-producing states.

Jewell said BLM will have representation on FracFocus board, adding that the group has taken steps to improve its platform, including adopting a new format that allows data to be automatically read by computers.

While Inhofe and other congressional Republicans are like-ly to mount an effort to block the rule, Jewell predicted the rule would survive because the industry recognizes that sen-sible regulation of fracking is appropriate.

We expect that these rules will stick, she said.

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MARIETTA Congressman Bill Johnson (R-Mari-etta) announces that he is hosting the 2015 Women in Energy Summit on at the Zane State College, Cambridge campus, from 9 a.m. to noon Friday, April 17.

This event is being held in response to the overwhelming success of Ohios first-ever Women in Energy Summit held last April in Mahoning County.

Registration opens at 8:30 a.m., the summit will begin at 9 a.m. with opening remarks by LeeAnn John-son, wife of Congressman Johnson.

Two reports will be presented: The State of the Industry, presented by Jackie Stewart of Energy in Depth Ohio, and Energy Education and Scholarships for Energy Careers, presented by Rhonda Reda of the Ohio Oil and Gas Energy Education Program. Addition-ally, there will be three panels: Opportunities in Manufacturing & Skilled Trades, featuring rep-resentatives from the International Union of Operating Engineers Local 18, Plumbers and Pipefitters Local 495 and Detroit Diesel. Opportunities in STEM and Energy Careers, featuring rep-resentatives from Eclipse Resources, MarkWest Energy Partners, Council of Smaller Enterprises, and American Petroleum Institute Ohio; and Recruiting Women for Todays Energy Careers, featuring representatives from OhioMeansJobs and the Cambridge City School District. All panels will be moderated by the events emcee, Jo Sexton, president and CEO of the Cambridge Area Chamber of Com-merce.

Over the past few years, Ive become increasingly optimis-tic about the countless opportunities coming our way through the harvesting of our own natural resources here in Eastern

and Southeastern Ohio opportunities that are here for us now, and opportunities that will be available to our children and grandchildren, said Bill Johnson. I have met with hun-dreds of companies involved in the energy field, both directly and indirectly. These businesses, both large and small, contin-ue to tell me the same thing, that we need to start talking to young women about opportunities for careers in energy.

Johnson added, In response to this continual feed-back, and building on the success of last years

event in Mahoning County, I am hosting this summit in Cambridge. I felt it was very

important to have a similar event in another area of Ohio that is seeing

a major upswing in energy devel-opment. We need to let women know that there are opportunities for them in the energy sector. Its a conversation we need to begin now, in schools and around our dinner tables.

I am pleased to facilitate this ef-fort to bring leading women in the

energy field here to speak to our community leaders, students, and edu-

cators about the important career oppor-tunities women have.

The summit will feature women working in various energy related careers: manufacturing, trades,

engineering, and at the executive level.This event is free and open to the public; however, reser-

vations are required. To RSVP for the event, attendees may contact Congressman Johnsons Salem District Office at 330-337-6951 or online by visiting his website at: http://billjohnson.house.gov/

The 2015 Women in Energy Summit will be at Zane State College, Cambridge Campus, Epic Center Community Room; 9900 Brick Church Road.

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Jonathan Fahey AP Energy Writer

NEW YORK (AP) OPEC and lower global oil prices delivered a one-two punch to the drillers in North Dakota and Texas who brought the U.S. one of the biggest booms in the history of the global oil industry.

Now they are fi ghting back.Companies are leaning on new techniques and technol-

ogy to get more oil out of every well they drill, and furiously cutting costs in an effort to keep U.S. oil competitive with much lower-cost oil fl owing out of the Middle East, Russia and elsewhere.

Everybody gets a little more imaginative, because they need to, says Hans-Christian Freitag, vice president of tech-nology for the drilling services company Baker Hughes.

Spurred by rising global oil prices U.S. drillers learned to tap crude trapped in shale starting in the middle of last de-cade and brought about a surprising boom that made the U.S. the biggest oil and gas producer in the world. The in-crease alone in daily U.S. production since 2008 nearly 4.5 million barrels per day is more than any OPEC country produces other than Saudi Arabia.

But as oil fl owed out and revenue poured in, costs werent the main concern. Drilling in shale, also known as tight rock, is expensive because the rock must be fractured with high-pressure water and chemicals to get oil to fl ow. It be-came more expensive as the drilling frenzy pushed up costs for labor, material, equipment and services. In a dash to get to oil quickly, drillers didnt always take the time to use the best technology to analyze each well.

When oil collapsed from $100 to below $50, once-profi t-able projects turned into money losers. OPEC added to the pressure by keeping production high, saying it didnt want to lose customers to U.S. shale drillers. OPEC nations can still make good profi ts at low oil prices because their crude costs $10 or less per barrel to produce.

Now drillers and service companies are laying off tens of thousands of workers, smaller companies are looking for larger, more stable companies to buy them, and fears are rising of widespread loan defaults. OPEC said in a recent re-port that it expects U.S. production to begin to fall later this year, echoing the prediction of the U.S. Energy Department.

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To compete, drillers have to fi nd ways to get more oil out of each well, pushing down the cost for each barrel. Experts estimate that shale drillers pull up just 5 percent to 8 percent of the oil in place.

Were leaving behind a large amount of hydrocarbons, and thats quite unacceptable, Freitag says. It requires dif-ferent thinking now.

Engineers have adapted some of the best sensor technol-ogy and mathematical models, developed fi rst for deep off-shore drilling, to see into the rock better. As they drill, they use imaging technology to fi nd natural cracks in the rock that they can then use as a target when they fracture the rock, to leverage natural highways for oil and gas.

After they fracture the rock, they can map the new cracks. That way they can know how close they can drill another well to target more oil without sapping production from the fi rst well. EOG Resources, one of the pioneers of shale oil drilling, has reduced the space between wells in an area called the Leonard Shale, in Texas, to 560 feet from 1,030 in 2012.

Drillers are fi nding they can back into wells drilled only a few years ago to re-frack them or inject specially tailored fl uids to get oil fl owing again. That can return a well in some cases to peak output, without the expense of drilling a new well.

The companies are also getting much faster.Exxon says it has cut the time it takes to drill a well in

North Dakotas Bakken formation by one-third over the past four years. It has also cut by half the cost of fracturing the rock and preparing the well for production. Exxon will run 13 rigs in the Bakken this year, the same number it did last year, despite the low prices.

Companies will save money in the coming months because service companies, rig operators and other suppliers to the industry will lower rates to keep business. Oil companies have been telling investors in recent weeks they expect to see cost reductions of 10 percent to 40 percent, depending on location and type of service.

Drillers are also focusing on the wells in the parts of for-mations that they know to be the most prolifi c, and cutting back drilling in places where they arent quite sure whats below. That reduces overall spending without dramatically decreasing production.

U.S. shale drillers will never push costs as low as OPEC countries. But the U.S. industry may be able to survive or even thrive if drillers can learn to quickly adapt.

There is a signifi cant portion of this that is competitive on a global basis, says Exxon Mobil CEO Rex Tillerson at an annual investor meeting earlier this month. North Ameri-can tight oil supply is more resilient than some people think it is.

Jonathan Fahey can be reached at http://twitter.com/Jona-thanFahey .

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OHIO WELL ACTIVITYby the numbersby the numbersMARCELLUS SHALE UTICA SHALE15 Wells Permitted

15 Wells Drilled 304 Wells Drilled

0 Inactive

0 Not Drilled

0 Plugged

829 Wells Producing

464 Wells Permitted

0 Not Drilled

1 Wells Drilling

0 Inactive13 Wells Producing

Total Horizontal Permits

Data as of 03/21/15 Source: Ohio Department of Natural Resources

267 Wells Drilling

0 Plugged44 Total Horizontal Permits 1864

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U.S. Senators Pat Toomey (R-Pa.) and Dianne Fein-stein (D-Calif.) are working to repeal a law that drives up the cost of everything from gasoline to gro-ceries.

The Toomey-Feinstein Corn Ethanol Mandate Elimina-tion Act of 2015, introduced today, abolishes the corn etha-nol mandate in the Renewable Fuel Standard (RFS). Sen. Jeff Flake (R-Ariz.) is also a cosponsor of the measure.

The RFS requires annual increases in the amount of renew-able fuel that must be blended into the total volume of gaso-line refi ned and consumed in the United States. However, the current statute effectively mandates the use of corn ethanol at the expense of other fuels. The requirement drives up the price of corn, products made from corn, livestock that feeds on corn, and many products on grocers shelves and in refrig-erators.

The RFS requires fuel suppliers to blend millions of gal-lons of biofuels -- most often corn ethanol -- into the nations gasoline supplies. It drives up gas prices, increases food costs, damages car engines, and is harmful to the environment, said Sen. Toomey.

Under government mandates, refi ners -- such as ours in Trainer, Pa. -- are forced to make a choice: increase the etha-nol content in their fuel blends or pay a penalty by purchasing credits from energy traders.

Once again, this is the government using corporate welfare to shower money on a favored industry and then send the bill to the general public. Labor leaders, businesses, and environ-mental groups have lined up to push back against this harmful regulatory regime.

I am pleased to join with Sens. Feinstein and Flake to stop the RFS before more harm is done.

The federal mandate for corn ethanol is both unwise and unworkable. Our bill addresses that with a simple, smart mod-ifi cation to the Renewable Fuel Standard program, said Sen. Feinstein. A signifi cant amount of U.S. corn is currently used for fuel. If the mandate continues to expand toward full

implementation, the price of corn will increase. According to the Congressional Budget Offi ce, that would mean as much as $3.5 billion each year in increased food costs. Americans living on the margins simply cant afford that.

Our infrastructure has a ceiling for the amount of corn ethanol that can be used, and were rapidly approaching it. Companies are physically unable to blend more corn ethanol into gasoline without causing problems for many gas stations and older automobiles. The mandate also pits corn ethanol against other renewable fuels, which has stunted the growth of environmentally-friendly advanced biofuels like biodiesel and cellulosic ethanol. Once the mandate for corn ethanol is gone, the RFS program will be able to focus on those fuels that best reduce greenhouse gas emissions and dont compete with our food supply.

Said Sen. Flake: In 2005, Congress bought into the corn ethanol mandate for billions of dollars, and taxpayers have been stuck with a lemon ever since. Congress can no longer justify a policy that props up the ethanol industry at the ex-pense of taxpayers, consumers, the hungry, and the environ-ment. I am pleased to join my colleagues on both sides of the aisle in supporting the full and immediate repeal of the corn ethanol mandate.

Background: The Renewable Fuel Standard, fi rst enacted in 2005, required refi ners and blenders to use 18.15 billion gal-lons of renewable fuel in 2014. More than 14 billion gallons of this total will be met by the use of corn ethanol, a level that will increase in subsequent years.

There are two key problems with continuing to mandate the consumption of more and more corn ethanol each year:

Corn consumption: Approximately 40 percent of the U.S. corn crop is now used to produce ethanol, artifi cially infl ating food and feed prices while damaging the environment.

Blend wall: As gasoline consumption declines, refi ners face a blend wall when the RFS mandate exceeds the limit at which ethanol can be blended into the fuel supply, deter-mined to be 10 percent of total gasoline consumption.

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Judie Perkowski Dix Communications

COLUMBUS He said back in 1973 when he was a kid, he never thought about growing up to be anything but a fi reman. And, without a doubt, his dedication

to the admirable occupation has served him and his commu-nity well.

New Concord Fire Chief Brent Gates was presented the sec-ond annual Ohio Oil and Gas Energy Education Programs Pipeline Award at the Ohio Oil and Gas Associations winter meeting in Columbus on March 12.

The award is given on behalf of Ohios oil and gas industry, recognizing an individual, not employed in the oil and gas in-dustry, who has made a positive impact on Ohio, said Rhon-da Reda, OOGEEP executive director. Brent has served as one of the lead instructors of OOGEEPs fi refi ghting training workshops since 2006. He has been instrumental in helping to train more than a thousand fi refi ghters about the oil and gas industry, and brings real world experiences and knowledge to fi re departments around the state. We are proud to call him a member of our team.

I was very surprised and humbled to be recognized by Ohios oil and gas industry and OOGEEP, said Gates. As a fi re chief, my mission is to ensure that each and every day, every fi refi ghter returns home, safe and sound. My work with OOGEEP allows me to spread that message to men and women around the state, and I could not be prouder to do so.

Marty Miller, OOGEEP Vice Chairman and Senior Vice President of Operations for Alliance Petroleum Corp., said that Chief Gates epitomizes the image of a public servant.

Brents years of experience, knowledge and his dedication to OOGEEPs fi refi ghting training workshop has and will save lives, said Miller.

Gates joined the New Concord Fire Department in 1978 and has served as fi re chief since 1992.

I worked at a furniture store when I was a kid, which was adjacent to the fi re department in New Concord where I vol-unteered ... I loved talking to the men, said Gates. I always knew that one day I would be a fi refi ghter.

The occupation today referred to as a fi refi ghter is a widely used term that refl ects gender participation. However, the term fi reman remains popular amongst the general public.

Gates is holding his retirement cards close to his vest. He said, retirement is in the near future, but will not elaborate on a specifi c date.

He said his greatest reward in regards to his job, is the sup-port from people in general, and people in the Village of New Concord in particular. People who appreciate what we do.

Gates serves on the Board of Directors of the Ohio Fire Chiefs Association, and holds various leadership positions with the Ohio Society of Fire Services Instructors, South-east Ohio Fire Chiefs Association, Muskingum County Lo-cal Emergency Planning Committee and Muskingum County Planning Commission.

In addition to his partnership with the Ohio Oil and Gas Energy Education Program, he is an instructor at the Mid-East Career and Technology Centers and the Ohio Fire Acad-emy. He is also a member of the International Society of Fire Service Instructors, International Association of Fire Chiefs

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and the Ohio Township Association.He has been named the Ohio Fire Service Instructor of the

Year and awarded the Public Service Award by the Village of New Concord.

Gates and his wife, Julie, a volunteer at the New Concord Fire Dept., have a daughter, Kelsy, who is a registered nurse; and a son, Jacob, a college student and a part-time fi refi ghter at the New Concord Fire Department, Falls Township Volun-teer Fire Dept. and Turco Township Volunteer Fire Dept.

The Ohio Oil and Gas energy Education program is a non-profi t organization responsible for public outreach on behalf of Ohios natural gas and crude oil industry. OOGEEPs mis-sion is to facilitate educational, scholarship and safety pro-grams and to promote public awareness about the industry and its positive effect on the community.

For more information about OOGEEP, visit www.oogeep.org.

[email protected]

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m8PKVK\CVKQPnDKNNRCUUGU2JKQ+QWUGMarc Kovac Dix Capital Bureau

COLUMBUS The Ohio House moved legislation on March 18 to speed up con-sideration of agreements by property owners who want to join together to tap oil and

gas reserves on their lands.HB 8, jointly sponsored by Reps. Christina Hagan (R-Alli-

ance) and Tim Ginter (R-Salem), passed on a vote of 96-0 and heads to the Ohio Senate for further consideration.

The legislation focuses on unitization, a means by which landowners can combine acreage into units to allow oil and gas production.

Theres already a unitization process outlined in state law, as well as application requirements and $10,000 fee. But Ohio Revised Code does not stipulate a timeframe for ODNR to review and decide on such applications. Thats led to some landowners waiting a year or more for a decision from the state.

HB 8 calls for ODNR to hold hearings on landowner agree-ments within 45 days of receiving applications and issue fi nal decisions 30 days thereafter.

We need to provide a reasonable timeline for this respec-tive government-ran permitting process, Hagan said. We are removing uncertainty and creating clarity, we are creating cer-tainty and uniformity where development projects have been stunted into paralysis.

She added that some Ohioans have been waiting nearly two years for decisions from ODNR on landowner agreements.

Unfortunately, certain conditions have served to delay and in several instances totally blocked landowners from being able to exercise their right to benefi t from the resources un-der their land, Ginter said, adding later, By addressing these issues, this bill removes barriers and delays and in doing so it maximizes potential economic opportunities, creates good-paying jobs and assists landowners who desire to exercise their right to develop the minerals underneath their land.

HB 8 also includes provisions for the inclusion of state-owned lands in unitization applications and requirements for uniform assessments of taxes on mineral resources.

Lawmakers in the House did edit language related to state-own lands to include protections for state parks and forests.

HB 8... explicitly states ... that state parks may not be in-cluded in the unitization process and that there may be no surface disruption in state forests, said Rep. Sean OBrien (D-Bazetta). This will help ensure that future generations of Ohioans will continue to be able to enjoy the incredible nature areas our state has to offer while also easing the extraction of valuable oil and gas resources from our local shale plays.

Marc Kovac is the Dix Capital Bureau Chief. Email him at

[email protected] or on Twitter at OhioCapitalBlog.

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Joan Lowy Associated Press

WASHINGTON (AP) Fiery wrecks of trains hauling crude oil have intensified pressure on the Obama administration to approve tougher stan-dards for railroads and tank cars despite industry complaints that it could cost billions and slow freight deliveries.

In February, the Transportation Department sent the White House draft rules that would require oil trains to use stronger tank cars and make other safety improvements.

Nine days later a 100-car train hauling crude oil and petro-leum distillates derailed and caught fire in a remote part of Ontario, Canada. Less than 48 hours later, a 109-car oil train derailed and caught fire in West Virginia, leaking oil into a Kanawha River tributary and burning a house to its founda-tion. As the fire spread across 19 of the cars, a nearby resident said the explosions sounded like an atomic bomb. Both fires burned for nearly a week.

The two accidents follow a spate of other fiery oil train de-railments in the U.S. and Canada over the past few years. The most serious killed 47 people and destroyed the town center of Lac Megantic in Quebec, Canada, just across the border from Maine, in 2013.

The government hasnt yet unveiled its proposed regula-tions. But among them are a stronger tank car design that in-cludes thicker tank walls and electronically-controlled brakes that stop rail cars at the same time rather than sequentially, said Brigham McCown, a Washington-based consultant who was head of the federal agency responsible for safe transpor-tation of hazardous materials during President George W. Bushs administration.

Typically, safety regulators propose tough regulations and the Office of Management and Budget, which looks at eco-nomic and other implications of the rules, demands they be scaled back. This time, however, there may be less resistance.

The more incidents we have, the less likely the adminis-tration will be willing to listen to industry, McCown said. I think the railroad industry starts to lose credibility every time there is an accident.

Kevin Book, an energy industry analyst, said it has become harder to imagine the administration accommodating the in-dustry.

The oil and rail industries want thinner tank walls half an inch thick, instead of the 9/16ths-inch that regulators propose. The thicker the shell, the less oil a tank car can hold, and with about a half-million carloads of crude hauled by rail in the U.S. and Canada last year, the cost difference could add up.

The tank cars in the recent accidents were built to a volun-tary standard written by industry in 2011 to answer criticism that cars used to transport flammable liquids were prone to rupture in an accident and spill their contents and ignite spec-tacular fires. But the two most recent accidents show that the newer cars known as 1232s also are prone to rupture, even at slow speeds. Both trains were traveling under 40 mph.

Those folks who were arguing that the 1232s may in fact be puncture-proof really cant make that argument anymore, Sen. Heidi Heitkamp, D-N.D., told reporters.

A Transportation Department analysis predicts that trains hauling crude oil or ethanol will derail an average of 10 times a year over the next two decades, causing more than $4 billion

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in damage and possibly killing hundreds of people if an acci-dent happens in a densely populated part of the U.S.

Chris Hart, the acting chairman of the National Transporta-tion Safety Board, urged federal regulators in a blog post this week to act swiftly to set new tank car standards, noting that while the government deliberates over new rules, more 1232 cars are entering service.

Industry offi cials say they need every car they can get to meet shipping demands, and it will take time for manufactur-ers to retool for a new design. U.S. and Canadian offi cials also have not agreed on a phase-out period for the train cars that regularly cross their border.

Transportation Secretary Anthony Foxx told The Associat-ed Press that administration offi cials understand the gravity of the issue and are committed to a comprehensive approach that includes better braking and slower train speeds, as well as enhancing the ability of fi re departments to respond to ac-cidents.

Railroads complain that electronically-controlled brakes would cost them $12 billion to $21 billion and that lower train speeds would back up other rail traffi c through much of the country, slowing freight deliveries and passenger service. Last year they agreed to reduce oil train speeds to 40 mph in high-population areas. Regulators have discussed turning that vol-untary limit into a requirement.

But former NTSB Chairman Jim Hall said that until safety is improved, oil trains shouldnt be allowed to travel any faster than the typical school bus about 25 mph.

Follow Joan Lowy on Twitter at http://www.twitter.com/AP_Joan_Lowy

RAIL SHIPMENTS 022715: Graphic shows crude oil and ethanol shipments by rail in U.S.; 2c x 3 inches; with BC-Oil Train Safety; KSV; ETA 3 a.m.

SOURCES: Association of American Railroads; Renewable Fuels Association

AP

Volatile fuels ride the railsIncreased shipments of ethanol and crude oil on U.S. railways are raising safety concerns amid recent derailments.

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WOOSTER Township trustees from all over Wayne County had an opportunity to hear from Energy Transfer staff and its outreach team about what to expect regarding the proposed ET Rover pipeline slated to bisect Wayne County.

Jim Burns and Susan King of AECOM, a firm hired by En-ergy Transfer to conduct outreach, led much of the meeting at the Wayne County Administration Building on March 5. Stacy McCurdy of Energy Transfer addressed construction and lo-gistical issues.

ET Rover is seeking a certificate from the Federal Energy Regulatory Commission to build the 830-mile pipeline. Later-als from Ohio, Pennsylvania and West Virginia will feed natu-ral gas into the pipeline. The main line will begin near Cadiz, and dual 42-inch lines will run all the way into Defiance, cut-ting through Wayne and Ashland counties. From Defiance, the line will go northward into Michigan and ultimately into Can-ada. The line is designed to transport 3.25 billion cubic feet of natural gas daily. Sixty percent of the volume will be delivered to the Midwest hub in Defiance, with the remaining 40 percent going into Michigan and Canada.

The pipeline is needed because of new gas coming online from new sources, like the Marcellus and Utica shale plays, Burns said. Places, like the Gulf of Mexico, which have histori-cally produced much of this countrys natural gas are seeing production levels drop.

If ET Rover gets the go-ahead to proceed, then 15 crews will be working on 15 segments called spreads simulta-neously, McCurdy said.

The pipeline is expected to create about 10,000 jobs, most temporary, construction jobs, with 4,500-6,500 jobs in Ohio, Burns said.

There could be as many as 900 laborers working in Wayne County on the spread here, and possibly another 100 or more working on a compression station.

Its a big project, Wayne County Engineer Roger Terrill said. He is concerned about what will happen when semis hauling 80-feet trailers with 80,000 pounds of pipe come into the county.

The matter was also raised by Mike Pineapple Raymond, who is the road superintendent in Wooster Township. Im concerned about my roads, he told the group.

Pipe will primarily be staged in a yard in Massillon and be transported directly to the site, McCurdy said. The trucks have steering trailers.

If the project is approved, then ET Rover will look to get the pipe in the ground in the first quarter of 2016, but it will all depend upon the weather, McCurdy added.

While under construction, the open trench for the pipe will have safety fences in residential areas.

All workers, stored pipe and equipment must be within the right of way of the project, King said. Any worker who goes outside of the right of way will be terminated.

Franklin Township Trustee Dale Sidle asked McCurdy how the pipeline will be installed through the wetland areas.

Very carefully, McCurdy said.Each wetland area will be handled differently, King said.

With these federal projects, the permit spells out exactly what must be done.

When Energy Transfer officials first met with the county commissioners in November, Commissioner Ann Obrecht encouraged them to meet with trustees and to inform them about the project. She said Thursday she appreciated how the energy company was working with Land Stewards to look out for the property owners and farmers interests.

However, drainage problems might take a while to emerge, so Obrecht said she would hope the company would have a drainage consultant available for a while.

McCurdy said once the pipeline goes in, Energy Transfer will be a neighbor forever, and if its pipe causes a problem, We own that.

Mark Wilson of Land Stewards talked about how his team will be working with property owners and assessing top soils, subsoils and drainage tiles. Even though Energy Transfer is paying his organization, he and the team are really working for the landowners.

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In Eisenbarth v. Reusser, the Seventh District Court of Appeals held by a two to one ma-jority that, 1) an oil and gas lease constitutes a title transaction capable of preserving a sev-

ered mineral interest under the Ohio Dormant Mineral Act (ODMA), provided the lease was signed during the preced-ing twenty years; 2) for the purposes of the 1989 ODMA, the preceding twenty years refers to the period from March 23, 1969 until March 22, 1989; and 3) the owners of the minerals are entitled to share in any bonus payment in proportion to their share of the minerals, even if one of the mineral owners possesses the executive rights, i.e., the right to sign a lease on behalf of all the mineral owners.

By way of background, the ODMA was originally enacted on March 22, 1989, and, after a three year grace period, be-came effective on March 22, 1992. The purpose of the ODMA is to eliminate dormant or unused mineral interests in favor of the current surface owner. The 1989 ODMA provides that, where the severed mineral interest owner has not utilized the minerals as specifi ed in the statute during the preceding 20 years (referred to as savings events), the mineral interests are deemed abandoned and the title vests back to the current surface owner. The act also provided that a severed mineral in-terest could be preserved indefi nitely by fi ling a claim with the county recorder at least once every twenty years, stating that the severed mineral interest owner did not intend to abandon the interest. The ODMA was amended on June 30, 2006.

Eisenbarth has been a signifi cant decision affecting claims brought under the 1989 ODMA, because the Court of Ap-peals decided that the reference to the preceding twenty years meant the twenty years before the Act was passed. A number of trial courts had determined that preceding twenty years meant any twenty year period without a savings event. In doing so, they pointed to the fact that the act specifi cally al-lowed for the fi ling of multiple preservation claims. If the Act meant to adopt a static look-back period, a single preservation claim would be suffi cient to preserve the interest under the Act. Thus, these courts concluded that the act adopted a roll-ing twenty year look-back period, where any twenty year pe-riod without a savings event would lead to abandonment. The Seventh Districts decision limited the effect of the reach of the 1989 ODMA, holding that any lack of activity from during the 17 year period from 1989 until 2006 (when the

april 2015 gas & oil magazine-ohio edition

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