the northeast ong marketplace - december 2014

PRSRT STDU.S. POSTAGE PAIDBECKLEY, WV 25801

PERMIT NO.19

CHANGE SERVICE REQUESTED

DECEMBER 2014P.O. BOX 1441 • OAK HILL, WV 25901 | WWW.ONGMARKETPLACE.COM

WATER MANAGEMENT - Page 6 Water Management in the Shale Gas Era

HEALTH & SAFETY - Pages 10-11 Specialized Winter P.P.E for the Oil & GAs Industry

ONG SPOTLIGHT - p 3

ENVIRONMENTAL MANAGEMENT - p 14

INDUSTRY INSIGHT - p 18-19

NEW TECHNOLOGY - p 22

LEGAL & FINANCE - p 26

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NORTHEAST OIL & NATURAL GAS INDUSTRYwww.ongmarketplace.com

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From transportation to installation, we’ve got your containment solution. Contact us today and find out why we’re called the“One Stop Shop.”

A Message from Cabot Oil & Gas Corporation

This year one of the major themes for Cabot Oil & Gas Corporation was one of growth. Just last month it was announced that due to the increasing number of employees, Cabot’s North Region Headquarters in Pittsburgh would be moving from its current location to a new, larger building a few miles down the road. And earlier in the year the brand new office building in Susquehanna officially opened to house our growing staff in our area of operations.

The company recognizes that one of the major challenges in the future with the upcoming Crew Change and our continued operations is workforce development of local talent. Cabot has partnered with the Lackawanna College School of Petroleum & Natural Gas and announced a $2.5 million endowment to assist in further developing the program. Graduates of the School of PNG are finding employment with local Marcellus-related companies across Pennsylvania. The School of PNG has a 90% job placement rate for its students thanks in part to its work directly with employers to ensure that students are learning technology that is

currently being used out in the field. Companies like Cabot, Southwestern Energy, Williams, Baker Hughes and many others are benefiting by hiring these students who are ready to being their jobs immediately without a lengthy training program.

As operations continue in the Marcellus, we will continue to create new positions that need to be filled by skilled workers. This will help put people to work in a career that offers family-sustaining wages and the opportunity to work across the Commonwealth. The Lackawanna College School of Petroleum & Natural Gas is just one of the many opportunities students in high school can look forward to as well as individuals who may be looking for a career change. And because we

are hiring local employees - Cabot’s Pennsylvania workforce is approximately 80% local - these individuals are an integrated part of the community where they live and work.

Cabot Holiday Happenings:

. Cabot and its subsidiary, GasSearch Drilling Services, will once again hold a toy drive to benefit Susquehanna County Interfaith and Wyoming County Interfaith Friends. Toys and monetary donations will be dropped off on December 11 at their respective locations. All donations will be split 50/50 between the organizations, except for any checks we request for obvious reasons. This is our fourth year raising funds and collecting toys during the holidays.

. Cabot is also making a $1,250 donation to TREHAB to help with their\ Thanksgiving program.

. Cabot’s Pittsburgh office is also hosting a toy drive ending on December 11 to benefit the Toys for Tots program.

. Cabot’s Pineville, West Virginia office is hosting a toy and fund drive to benefit the Wyoming County (West Virginia) Toy Fund. For all toy/fund drives, Cabot will be matching all monetary donations made by our employees.

All employees are invited and encouraged to participate in the local programs as they see fit and we generally have a large outpouring of support for these organizations. For our employees it really hits home that just the donation of a single toy can help make another family very happy during the holidays.

December 2014

THE ONG SPOTLIGHT

[email protected]

ResponsibleReclamationAn opportunity to restore diversity

• Conservation seed mixes• Native seeds

• Pollinator forage

• Bioengineering materials

Are Your Vessels PA Compliant? Under PA law, Chapter 3a Boilers and unfiredpressure vessels regulations and amended bySenate Bill 802 it is required to have vesselsinspected and registered before use in PA

Pressure Vessel & TankInspections & Registration

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Williamsport, Pennsylvania

www.nuweldinc.com

Joe Kelihar - Business Development ManagerMarcellus/Utica Division

(570) 560-5819 • [email protected]


ARTICLESTHE ONG SPOTLIGHT: A Message from Cabot Oil & Gas Corporation ................................................. 3

WATER MANAGEMENT: Water Management in the Shale Gas Era .................................................. 6

HEALTH & SAFETY: Specialized Winter P.P.E for the Oil & Gas Industry ..................................... 10-11

ENVIRONMENTAL MANAGEMENT: Super Sized Containment ........................................................ 14

INDUSTRY INSIGHT: Construction of One or More Crackers .............................................................. 18

NEW TECHNOLOGY: Alleviating Issues around Logistics, Productivity ......................................... 22

LEGAL & FINANCE: A Look Ahead at Potential Federal Regulations ............................................. 26

ADVERTISER INDEXAIR & TEK ........................................................... 16ALPINE ELECTRIC .............................................. 11AMERICAN REFINING GROUP .......................... 11BLUE ROCK ENERGY PARTNERS ...................... 16BRAWLER INDUSTRIES, LLC ............................ 15BRI-CHEM ........................................................... 20CALU ................................................................... 11CARBO CERAMICS ............................................. 17CHANCELLOR INSURANCE ................................. 5CPI SERVICE ....................................................... 13CST INDUSTRIES ................................................. 8D&S INDUSTRIAL PRODUCTS .......................... 12DRILL BABY DRILL ............................................... 9DR WELL SITE .................................................... 16ERNST SEED ......................................................... 3ETC ........................................................................ 5GOODWIN PUMPS - XYLEM .............................. 16HETRICK MFG, INC .............................................. 5HUNTER TRUCK SALES ..................................... 13INLAND TARP & LINER ........................................ 1JH TOMBLIN FENCE CO ....................................... 5JM MILLER .......................................................... 16LEE REGER BUILDS ............................................. 5L&L BOILER MAINTENANCE ............................ 11MACHINERY STREET ......................................... 12MID-ATLANTIC STORAGE ................................. 11MJ PAINTING CONTRACTOR ............................... 4NEW PIG ............................................................. 24NORTH AMERICAN FIELD SERVICES ............... 11NU-WELD .............................................................. 3ONG LIST .............................................................. 5OIL CENTER RESEARCH .................................... 20“O” RING ............................................................ 20PPC LUBRICANTS .............................................. 11PREMIER SAFETY & SERVICE INC ................... 27

PSB ........................................................................ 4PULS ................................................................... 23RIGMAIDS ........................................................... 11SHALE MEDIA GROUP ......................................... 9SHANNON SAFETY ............................................ 11SKYCASTERS ...................................................... 27ST!CK .................................................................... 5TANK CONNECTION ........................................... 20TELSLOV, INC ....................................................... 7UNIT LINER ........................................................... 7WEAVERTOWN ENVIRONMENTAL ................... 11WELL SERVICE GROUP ..................................... 17

CALENDARSASSOCIATION MEETINGS ................................... 4NETWORKING EVENTS ..................................... 13TRAINING & WORKSHOPS ............................... 16UPCOMING EVENTS .......................................... 21

EVENTSNAPE .................................................................. 21NGL FORUM ...................................................... 23MARCELLUS-UTICA MIDSTREAM ..................... 24

CONTACT US FOR ADVERTISING,INFORMATION OR MAILING LIST CHANGES:


P. O. Box 1441 • Oak Hill, WV 25901855-269-1188

Fax: 304-465-5065E-mail: [email protected]

The Northeast ONG Marketplace will not be liable for any misprint in advertising copy which is not the fault of The Northeast ONG Marketplace. If a misprint should occur, the limits of our liability will be the amount charged for the advertisement.

We do not assume responsibility for the content of advertising or articles herein. Any warranties or representations made in the advertisements are those of the advertisers and not The Northeast ONG Marketplace.

ASSOCIATION MEETINGS

PIOGA Winter Meeting | February 24-25, 2015Champion, PA - www.pioga.org

2015 OOGA Winter Meeting | March 11-13, 2015Columbus, OH - www.ooga.org

OGIS New York | April 20-22, 2015New York, NY - www.ipaa.org

AESC Annual Winter Meeting | February 18-20, 2015San Antonio, TX - www.aesc.net

PESA Annual Meeting | April 22, 2015Greensboro, GA - www.ipaa.org

Custom Purification Systems - Natural Gas Drying & Purification - Regenerative Dryers - Refrigeration Dryers

Deliquescent Dryers - Filtration Systems - Custom FabricationHigh Pressure Ball Valves - Center Guided Check Valves

Specialized Precision Machining

Visit us at www.psbindustries.comCall us at 1-814-453-3651

December 2014

www.ONGlist.com

SELL YOUR NEW OR USED OIL AND GAS FIELD EQUIPMENT

ONG Services, LLC P.O. Box 443 Harrison City, PA 15636 Phone: 724‐858‐7797

Serving the Oil and Natural Gas Explora�on and Produc�on Industries

FREE 60 DAY TRIAL OFFER ON ALL POSTS USE DISCOUNT CODE: ONG619

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By: Len Crawford III, Vice President of Sales & Marketing, TekSolv Inc.

At the turn of the century, new regions of the United States experienced rapid economic growth from multiple oil and gas booms due to the advancement of horizontal drilling techniques. With these new shale plays developing in areas of the country that had never seen oil and gas production supporting infrastructure,

from roads to power distribution was typically undersized or not in good working order. In the case of roads and other supporting mechanical infrastructure, redevelopment and improvements could occur over time however, standards for water management must be adhered to starting from day one, in order to align to standards set by the Department of Environmental Protection (DEP), Susquehanna River Basin Commission (SRBC) and other state and federal agencies.

These federal and state requirements led to an instant need for a new, innovative water management technology that could withstand the cold and mountainous terrain

of the Marcellus, Utica, and Bakken shale plays. From these needs, HydroWatchTM was born. In addition to the features of previous water management systems, many additional technology upgrades were required to ensure accuracy and efficiency. This involved temperature monitoring, water truck transfer stations, data-logging with reports, and multistage pump systems to overcome the pressures from mountain top pipelines. Along with these cutting-edge technologies, HydroWatchTM included card swipes and touch screens which allowed for a convenient user experience.

Innovation spurred innovation. As our clients began using HydroWatchTM and system administrators became familiar with our technology, word spread about its ease of use. Additional adaptations to meet new customer requirements then launched many new product offshoots. Federal and state officials then began to become accustomed to HydroWatchTM reporting and valued the information our product delivered to them at their fingertips. The success and trust that was earned from the beginning then led to new customers and recommendations from current users. HydroWatchTM soon became the dominant water management software in Eastern Pennsylvania.

Trusted SolutionsThe HydroWatchTM fill control panel revolutionized the way water transfer occurred at water extraction sites. Previously, transactions were recorded using a pencil, paper, and a 24/7 attendant who then had to hand off their records to be entered into a database for manual reporting and data analysis. Error prone systems led to massive data losses; whereas a HydroWatchTM fill control panel never loses data, never takes a break, and offers system diagnostics never seen before. With the addition of automated valves, dosing volumes of water to trucks with fill and control LED lights allowed for efficient fill times and simplified all processes. System administrators then had complete truck fill logs with company information, AFE/Lease Numbers with a time and date stamps. This new data allowed for report generation that helped water coordinators make informed decisions and led to

requests for additional water extraction and pump totals. As data improved, so did reporting which leads to more efficient processes. Today, users of the HydroWatchTM fill control panel recognize the technology and understand that this new equipment is simplifying and improving all of our jobs.

Improvement to the control system design was an additional upgrade that had not typically been seen before. Previous to shale gas exploration, solution providers bid projects for manufacturing facilities that required a very competitive bid with little room for what were considered once as, “niceties.” Since oil and gas is an around the clock operation with no room for downtime and distributed across wide areas, these previously considered, “niceties,” were now requirements for these water management applications. Such upgrades included surge voltage protection on all incoming power and communications, redundant power supplies, and additional diagnostic tools that indicate if fuses are blown or circuit breakers are tripped.

Another huge change to water management tools in the shale gas era was the need for full time maintenance and support personnel. To this end, the new support personnel must be able to autonomously support water management systems without support directly from the hardware or software developers. This need then drove for standardization of both hardware and software with typical spare parts in stock for emergency client needs. HydroWatchTM became that standard turn-key solution that led to faster delivery times for what was once considered new and revolutionary technology.

Future of HydroWatchTM

As smart phone technology advances and the desire for converged data with Dashboard views of operations continues, HydroWatchTM will evolve with these other technologies to become a single interface for more than just water management. Just as Customer Relationship Management (CRM) software platforms have become all inclusive accounting packages, HydroWatchTM will be the engine that drives data in real time for real time decisions. New features and applications will include site security, access control, remote users and data management, GPS data, and other software benefits.

In summary, these new technology upgrades will lead to data analysis for determining the cost of water per barrel, efficiency of sites, operators, and different support companies while ensuring that minimum standards are met. HydroWatchTM dashboards allow all user levels to be both responsible for their job, and also improve their decision making ability.

Len Crawford III is the architect of the HydroWatchTM software platform and is the Vice President of Sales and Marketing for TekSolv, Inc. For further information about HydroWatchTM, visit us online at: www.teksolv.com

WATER MANAGEMENT IN THE SHALE GAS ERA

WATERMANAGEMENT

December 2014

Local operator interface to communicate site and water network conditionsConfigurable for a myriad of water transfer applicationsAbility to integrate into SCADA systemsCustomizable on-board and wireless I/O configurationsSatellite communications

Innovative approach. Reliable water management system

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Prevention. For your Safety

TekSolv.com 302.463.7954 [email protected]

• In stock and ready to ship

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• Available in powder coated with BLM or custom colors

• Liners for secondary containment units are available in flexible polyethylene, polypropylene, and spray-in 100% polyurea

• 3, 4, 5 & custom sized heavy-duty one piece walkovers

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Statewide

Mid Atlantic

Each month, over 11,000 subscribers in the oil and gas industry receive this free business-to-business resource. Our mailing list is frequently updated using a variety or resources

to maintain distribution to the most current industry professionals working throughout the region.

ONG Marketplace [email protected] 855-269-1188

APPROXIMATE DEMOGRAPHICS:

December 2014

CALL FOR WHITE PAPERS!

Share your expertise with over 11,000 monthly readers. Contact us to schedule an opportunity for the industry to learn what you know.

ONG Marketplace [email protected] 855-269-1188

Natural Gas Job Opportunities!DBD - assisting hiring managers increase their qualified candidate pool throughout the U.S.A.

Many Class A & B CDL Drivers – Tanker, Hazmat, Flatbed / Local, Regional & OTR drivers posted - PA, OH, WV and IN

Mechanical Engineer / PM – Wilkes-Bare, PACDL A/ Cement Operators – Shelocta, PA

Landfill Drillers and Operators - Dispatcher– O&G, - Carlisle, PA & Dover, OH

Project Manager – Civil Construction O&G pipeline exp. - OHExperienced Hydro Exactor Operators with CDL – PA & OH

Heavy Equipment/ Diesel Mechanic –Burgettstown, Altoona PA & Dover, OHDrafter Construction - AutoCAD – Bedford County PA

Visit: Drillbabyjobs.com to apply “Like us”! Facebook.com/drillbabydrillstaffing814.317.5155

YOUR NEWS SOURCE FOR THE SHALE OIL & GAS INDUSTRY

Radio InternetEvents Publication Video

shalemediagroup.com 150 W. Beau Street Washington, PA


By: Amy Savage, Owner of Oil & Gas Safety Supply

Working outdoors in temperatures at or below freezing with limited daylight hours in the Marcellus and Utica Shale region is a daily occurrence from December through March. During these months it is critical that workers protect themselves from the winter elements by donning the correct personal protective equipment (P.P.E). This will help your body retain heat and lessen the threat of frostbite and hypothermia caused by prolonged exposure to extremely cold temperatures, including wind chill. The key pieces of P.P.E. to add to your wardrobe for winter months are reflective products for visibility, FR balaclavas for head warmth, and appropriate gloves and boots.

Limited daylight hours and worker visibility is a topic that you probably discuss at your daily or monthly safety meetings. Insulated FR Firezero brand jackets provide 360 degrees of reflective high-visibility trim is a good way to ensure that any member of your team can be seen day or night. Other ways to get your workforce

into reflective gear to they can be seen in low light conditions include flame resistant safety vests, arm and leg bands/straps, reflective leg gaiters, high viz suspenders, 4 inch reflective hard hat stickers (put one on the front, the back, and one on each side), or consider a Brim Guard for each employee. This is a reflective band designed to fit the edge of a MSA

Full-Brim hard hat, that shines when lights hits it. A Pelican brand waterproof hard hat headlamp equipped with optional red LED for nighttime use is another safety tool that helps keep your insulted gloved-hands freed up, to safely complete job tasks.

The Coldavenger FRC Expedition Balaclava is a one-of-a-kind flame resistant face liner that provides the warmth of Polartec fleece to protect your head, neck, and face

against the cold temperatures. Designed with three foam inserts and a hook and loop closure system, the wearer can customize the piece to ensure the proper fit. It also has a detachable ventilator to keep your airways relaxed with warm, humidified air, so breathing while you work on the jobsite in bitter temperatures is more comfortable – all of these amazing features and flame resistant for personal safety and compliance.

The two most important pieces of personal protective equipment for wintertime are gloves and boots. A variety of the insulated and water resistant gloves are finally available for the Oil & Gas Industry. The best way to prevent hand injuries is to use the correct gloves for the job, and often times in the winter that means changing the hand protection you usually purchase, to

those made with Thinsulate or similar for warmth, or Hipora for water resistance. This includes adding impact or metacarpal gloves that have built-in protection on the top of the glove to protect the bones in your hand.

Steel-toe or Metatarsal boots protect the bones in your feet and water resistant boots are essential for field work. A new product in the market is the Muck Brand Metatarsal boot, which provides year round use in both subfreezing temperatures and eighty degree weather. Other extremely useful wintertime P.P.E. for your hands and feet include SnoSeal beeswax leather water-proofer, a boot & glove dryer, Lift brand thermal glove liners (prevent your hands from sweating), and Merino wool socks are great insulators or Bama socks for wellington slip on boots.

In conclusion, do not forget to protect your head, hands, and feet during the winter months – they are your most important tools!

A quick reminder about flame resistant winter work wear. Before you choose to wear a product that is not FR, please take a moment and assess the flash fire hazard risk for your job type. FR is something you must wear while you are on oil and gas jobsite locations, not only because it is a safety requirement, but mainly because it will protect you in the event of a flash fire. Here are the key points to remember about wearing FR clothing, especially in the chilly winter months: 1. The clothing self extinguishes or resists ignition 2. Does not melt directly onto the skin 3. Provides the wearer escape time 4. In the event that you are exposed to a flash fire, it will decrease your chance of burn injury and increase your chance of survival.

For information email Amy Savage at [email protected] or call Oil & Gas Safety Supply at (855) 533-8585, visit www.oilandgassafetysupply.com or visit our stores in Washington, PA and St. Clairsville, OH.

SPECIALIZED WINTER P.P.E. FOR OIL & GAS INDUSTRY

HEALTH& SAFETY

Tips from OSHA to Reduce Cold Stress

• Use the buddy system – work in pairs so that one worker can recognize danger signs

• Drink warm beverages like apple cider, tea, hot chocolate or sports drinks. Avoid drinks with caffeine whenever possible. Eat warm, high-calorie foods.

• Be sure that workers take frequent short breaks in warm dry shelters to allow the body to warm up.

• • Avoid exhaustion or fatigue because energy is needed to keep muscles warm.

• Workers face increased risks when they take certain medications, are in poor physical condition or suffer from illnesses such as diabetes, hypertension or cardiovascular disease.

December 2014

The 100% online curriculum provides students with a strong foundation in various essential areas of the oil and gas industry, including geology, legal aspects, geographical information systems, and other topics of value to the industry.

Cal U’s online format allows students to pursue their interests in a variety of legal topics, preparing them for a host of career options in various sectors of the oil and gas industry.

To learn more about the 100% online BA in Jurisprudence with a concentration in Land Management, or the Land Management Certificate, visit Cal U’s website at www.calu.edu/golandmanagement or call 1-866-595-6348.

CALIFORNIA UNIVERSITY OF PENNSYLVANIA Your Education Partner for Life

www.calu.edu/goA proud member of the Pennsylvania State System of Higher Education.

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THE REDUCTION IN RISK FOR AN ACUTE TRAUMATIC HAND INJURY WHILE WEARING THE RIGHT WORK GLOVES.

Are you sure your current ones are right for the job?

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December 2014

an EnPro Industries company

IF YOUR COMPRESSOR IS DOWN, EVERY SECOND COUNTS

It’s time you consider CPI

Like a finely-tuned watch, each component in an oil and gas operation relies on every other component for the whole to function properly. When even the smallest components can interrupt uptime and productivity, you need experienced and reliable partners who can respond at a moment’s notice anywhere in the world to minimize unscheduled downtime. You need partners who understand your business and have the expertise to keep you running efficiently and profitably. You need CPI.

www.CPIcompression.com

Serving the Marcellus and Utica Shale areas from our Philadelphia, PA service center.

Contact: Mike Kauffmann - 267 798 6509Matt Barron - 215 350 7812 David Pann - 276 275 9141

NETWORKING EVENTS

December 3WEN’s Holiday Charity Event

Pittsburgh, PA | www.womensenergynetwork.org

December 4 YPE’s 5th Annual Night of Charity

Pittsburgh, PA | www.ypepittsburgh.org

December 6 TOGA Christmas Party

Maryville, TN | www.tennoil.com

December 12KOGA Christmas Party

Lexington, KY | www.kyoilgas.org

December 21 WEN Steelers vs. Chiefs


December 28 WEN Steelers vs. Bengals


FOR MORE EVENTS VISIT WWW.ONGMARKETPLACE.COM/EVENTS


By: Dan Jeziorski, Director of Client Marketing Services

Huge industrial liners and fabrics are vital to keeping worksites stable and securing containment areas in the Oil & Gas industry.

Above ground containments are big. Rig sites are bigger. And even bigger yet are the liners utilized to contain any potential rig site spill. Keeping these areas safe and secure is a sizable task – and one that is now being managed by a new generation of industrial fabrics and liners referred to as geomembranes and geotextiles.

Often reaching sizes in excess of 100,000 sq. ft, these progressive materials are advancing the level of environmental safety on many rig sites throughout North America, and around the world.

“The Oil & Gas industry as a whole has always dealt with a certain level of scrutiny about their drilling practices and its impact on surrounding land,” says, Kent Metzger, Executive Vice President of Brawler Industries, LLC, North America’s largest manufacturer and distributor of engineered plastic products used for environmental and fluid management applications. “But with the advent of

horizontal drilling and fracking, that scrutiny has intensified significantly.”

According to Metzger, although fracking has revolutionized the ability of companies to tap previously inaccessible energy sources, it has also led to more questions about the process of oil and gas extraction. Environmental groups and, in turn, politicians are focused on the amount of water the process uses, but also the storage of the frac fluids and flow back water. Contamination

of both soil and ground water has also become hotly debated.

“I doubt there’s been any other time when the need to demonstrate that the industry is aware of public concern and, more importantly, that they’re taking proactive steps to address them has been greater,” he notes. “The use of liners and similar products—including those we produce, fabricate, and our customers install—have become a significant part of that effort.”

Although there are many types of industrial textiles currently in use in the Oil & Gas industry, some of the most common applications for these liners revolve around fluid containment in above ground storage tanks, under rig locations, in cutting pits & as secondary containment for tank batteries. Like similar liners deployed in holding tanks, these are constructed of multiple layers of fused materials engineered to form a protective membrane between the fluids they hold and the ground beneath them. It is critical that they be rugged enough to withstand not only the sometimes caustic chemicals they may be required to hold, but also extremely cold temperatures and often harsh environments, because even a small hole could cause devastating seepage into soil and, eventually, groundwater.

It’s probably not surprising to most that there are few—if any—“one-size-fits-

all” solutions when it comes to liners. Size, shape and the type of fluids needing containment are just a few of the factors that must be taken into consideration when it comes to selecting the best fit.

“Our technical team receives multiple calls every day from people who need to find the right solution for their particular situation,” says Brawlers’ National Sales Rep, John Oberly. “We’ve been doing this for over 35 years and we apply that experience to every customer’s situation—even if it means creating a custom solution to meet their unique needs.”

The Brawler manufacturing process, including its ability to create customized solutions, has been gaining significant attention from companies throughout the Oil & Gas industry. The company utilizes a proprietary welding process to join individual sections and create stronger, leak-proof seams. For those companies requiring it, Brawler has the capacity to create a single liner over 100,000 sq. ft. engineered for long-term use. Regardless of size or anticipated application, every component also undergoes a strict quality control process that exceeds industry standards.

“No product goes out the door until it has been thoroughly inspected,” Oberly says. “We know that every item we create and customers install has to withstand the rigorous conditions of an oil field. Our client’s business—and our reputation—depends on getting it right.”

“Nearly four decades of experience means that we understand what our customers need,” says Oberly. “We maintain a vast inventory of materials at all times, ensuring we can fill even the largest orders if needed. We also have a full fleet of trucks at every facility. This means when a call comes in, we can load and transport the products directly to the site, sometimes within hours, to begin the installation process.”

Brawler Industries now has manufacturing and distributions centers in 4 key locations to service the oil and gas fields, with its latest acquisition in Houston, Texas. This plant greatly expands the products and services offered by Brawler, including:

• Vertical integration of geomembrane manufacturing and fabrication - Co-extruded multi-layer film up to 22’ wide lay flat - Single- or double-sided texturing - Thicknesses from 12 mil up to 80 mil• Vertical integration of cast extrusion - Multi layer reinforced materials up to 12’ - Single- or double-sided texturing - Thicknesses from 6 mil up to 8 mil - Custom colors and thicknesses available - Geotextile composite liners• In house QC testing• Cold weather blends• Large pre-fabricated panels• Frac Tank liners

Like all of Brawler’s locations, the Houston plant offers the industry’s fastest and most responsive turn-around times to fit your scheduling needs.

For more information, contact Brawler Industries at 800-364-7688 or www.brawler.com

SUPER-SIZED CONTAINMENT

ENVIRONMENTALMANAGEMENT

Brawler liners provide trouble-free, long-term liquid impoundment

December 2014

15 SafeLand USA Orientation Bentleyville, PA www.shalemarkets.com

22 PEC Basic Orientation - SafeLand USA Washington, PA www.rjrsafety.com

27 PEC Safeland Washington, PA www.pioga.org

3 SafeLand USA Orientation Monroeville, PA www.shalemarkets.com


12Energy Industry Training Series Washington, PA www.energytrainingseries.com

19PEC Basic Orientation - SafeLand USA Washington, PA www.rjrsafety.com


2 Energy Industry Training Series Washington, PA www.energytrainingseries.com


2-5 OSHA 5810 – Hazards Recognition and Standards for On-Shore Oil and Gas Exploration & ProductionMorgantown, WV www.safetyandhealth.ext.wvu.edu


9 PEC Basic Orientation - SafeLand USA St. Clairsville, OH www.rjrsafety.com

9 SOOGA Tax Seminar Marietta, OH www.sooga.org

11 PEC Basic Orientation – Safeland USA Clarksburg, WV www.hshi.com

16 Fundamentals of Shale DevelopmentWilliamsport, PA www.pioga.org

18 PEC Basic Orientation - SafeLand USA Washington, PAwww.rjrsafety.com


8PEC Basic Orientation - SafeLand USA Washington, PA www.rjrsafety.com

TRAINING & WORKSHOPS

DECEMBER JANUARY (cont.)

JANUARY

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By: By: Rick Stouffer, Senior Energy Editor, Shale Media GroupEdited By: Mindy Gattner, Editor, Shale Media Group

It seems likely a relatively simple process: Produce ethylene, the plastics building block, by super-heating ethane found in natural gas, and “crack” the gas molecules, causing said molecules to reform into ethylene.

The question asked by Appalachian Basin non-industry types, such as potential workers, politicians, economic development officials and retailers looking for a

wave of new shoppers is, “what the heck is taking so long?”

For more than 3-1/2 years, Shell Chemical has methodically plodded along concerning its proposed “world-class” cracker, which may be built on land in Beaver County, Pennsylvania, near Monaca.

Permits have been applied for, discussions with state Department of Transportation officials concerning possibly relocating roads to a more

cracker-friendly location have been held, numerous public forums have taken place and ethane suppliers have been secured. The list of preliminary steps taken by the Royal Dutch Shell unit is long and as one would think, expensive.

No Gold Plated Shovels Yet

Still, no decision to break out the gold-painted ceremonial shovels for photos has been made – at least publicly.

However, in early November, Shell took what many considered a huge step on the road to a cracker when it said it’s exercising its option on the Horsehead Corp property near Monaca, PA.

No closing date was released and the purchase price is confidential. “Shell can confirm the statement by Horsehead Corp that we are exercising our land option to purchase Horsehead’s property in Beaver County, PA, having determined the site is suitable for the potential development of our proposed facility,” Shell said, in a statement. “However, we have not made a final decision to build the project; we will make that decision when our full project evaluation is complete.”

“The land purchase is a necessary step for Shell to advance the permitting process and allows us to proceed with some preliminary site development work,” according to the Shell statement. “Shell has consistently noted receipt of the necessary permits is required before we can reach a final investment decision. Shell previously communicated plans to perform some preliminary site development work once site demolition work by Horsehead is complete. This preliminary work would allow Shell to maintain or accelerate the project schedule, if we decide to build the facility.” Several hurdles must be crossed before Shell can make a final investment decision. The company is in the engineering and design for the facility, which also would include more than one polyethylene facility onsite.

Major regulatory permits, such as a state air permit, must also be green-lighted. Many of the permits Shell is seeking require it to be the owner of the property, officials said, explaining the timing of the land purchase.

Shell is pursuing regulatory approval from the US Army Corps of Engineers to build a dock for barge access to the proposed facility.

The Pennsylvania Department of Environmental Protection is reviewing a major air permit for the potential cracker plant, with public hearings likely to be scheduled for early 2015.

The entire evaluation process has been slowly moving forward since spring 2012, when Shell signed the option with Horsehead on the 340-acre property. The company extended the option three times, paying $3.9 million for the extensions.

Shell also reportedly bought a warehouse across the street from the Horsehead site for $1.87 million, and began approaching property owners near the site along Route 18 nearly two years ago, seeking options to acquire additional land.

Last January, Horsehead began demolition on the former smelter site, with Shell paying for the work, slated to be completed early next year.

“We continue our due diligence and our assessment of the site,” Michael Marr, Spokesman for Shell, told Shale Media Group. “We continue to advance our efforts to obtain local ethane supply for our potential petrochemical facility. To date, we have approximately 10 signed agreements in place with durations up to 20 years.” What has changed since March 2012, when Shell said the Monaca site was its first choice should it build an Appalachian cracker, is that the number of proposed crackers for the Pennsylvania/Ohio/West Virginia region has jumped fivefold.

Today, no fewer than five projects have been announced to great fanfare, talk of heightened economic vitality, family-sustaining jobs, etc.

The US economy operates under a supply-and-demand mentality. Five crackers placed in that maxim means project developers must ascertain if there is sufficient ethane produced from the Marcellus and Utica Shale plays to handle what conservatively could be a half-million barrels of ethane per day.

The estimate takes into account three other pieces to the cracker puzzle, which were introduced post-March 2012, three ethane pipelines: the Sunoco Logistics-MarkWest Mariner West line to crackers in Sarnia, Ontario and Mariner East line to Marcus Hook, PA, for shipment internationally and Enterprise Product Partners Appalachian-to-Texas-Express (ATEX) Pipeline to Gulf Coast crackers.

Combined, the pipelines are, or will, flow between 260,000 and 330,000 BPD of ethane. Securing sufficient ethane for announced crackers and pipelines will be no problem, industry experts tell SMG. Most say there’s room available in the Marcellus-Utica ethane pool.

16,346%

It’s crazy the amount of ethane we’re getting from the Marcellus and Utica,” Tom Gellrich, Founder, TopLine Analytics of Philadelphia, told SMG.

CONSTRUCTION OF ONE OR MORE CRACKERS IN THE APPALACHIAN BASIN STILL PROBABLE

INDUSTRYINSIGHT

December 2014

“Ethane production within the region continues to row,” Lysle Brinker, Equity Research Director, IHS, in Norwalk, Ct, told SMG.

RBC Energy Analyst Kelly Van Hull told SMG there is no doubt concerning ethane supply in the Appalachian Basin, as her analytics firm projects a 16,346% jump in ethane production within five years.

“In July, according to Energy Information Administration data, 49,000 Bbls of ethane were being produced, for the Mariner West and ATEX pipelines,” Hull told SMG. “We project by 2019, up to 850,000 BPD will be produced from the Marcellus and Utica.”

If the projections are accurate, or even close to accurate, what about the demand side of the supply-demand equation?

Actually, there is very little direct demand for ethylene produced from one, two or 32 crackers. “Ethylene must be converted into something else before it is able to be consumed in a manufacturing process

or end-use,” Stephen Zinger, Head of Americas Chemical Research with Wood Mackenzie in Houston, told SMG. “Most ethylene [60% globally] is converted into polyethylene, used for bags, films, packaging, bottles, toys and many other plastic applications. Another key ethylene derivative is ethylene glycol [10% of global ethylene demand] used for anti-freeze and for polyester fibers/plastics.”

Zinger said it’s likely that if a cracker or crackers are built in the Northeast, they will be accompanied by polyethylene and/or ethylene glycol plants to consume the ethylene on-site.

Shell and Odebrecht have said they will build polyethylene plants at their cracker sites – if the crackers are built.

“Ethylene is difficult to transport [because it’s a super-cold liquid] whereas polyethylene and ethylene glycol are much easier to ship either domestically by railroad or by container ship internationally,” according to Zinger.

Gellrich and Zinger agreed nearly half of the demand for polyethylene and ethylene glycol in the US is in the Appalachian Basin or certainly within 500 miles of the region, so an ethylene complex in the Northeast will be well positioned to serve the local market [relative to where most of the existing ethylene complexes are in the US Gulf Coast].

“Placing the cracker in the Basin provides cost savings in shipping the ethane and natural gas to the Gulf Coast and then the plastics back to the Basin,” TopLine Analytics’ Gellrich told SMG. “It also puts you closer to your customers, both strong incentives for Basin crackers.”

Gulf Coast Activity

More than enough supply and demand within a couple days’ drive, why are cracker projects announced, then further communications are next to nonexistent? No need to rush to build, the experts tell SMG. Just look at the Gulf Coast.

On the Gulf, where US crackers relocated to in search of cheap natural gas (the cracking industry was founded in West Virginia’s Kanawha River Valley in 1920), roughly 17 new-build, refurbish, de-bottleneck projects involving ethane crackers are under way or will be in the near future.

“The Gulf Coast has the infrastructure in place the crackers need, so that’s where the investment is first being made,” van Hull said.

“The first wave of new or expanded crackers on the Gulf largely will be onstream by 2016-2017, increasing North American ethylene production by 50%,” Gellrich told SMG. The world market for ethylene will need time to adjust to the massive increase, he added.

“Rushing to get another cracker in place makes no sense,” Gellrich said.

Van Hull added cracker developers must institute a backup plan for Appalachian plants when they are taken offline for planned or unplanned maintenance, and specifically, what to do with the ethane?

“Producers aren’t going to quit producing, so companies need a back-up plan. For one unit, how to handle the ethane not a problem, but for five, it is,” Hull said. “There is no ethane storage in the Northeast.”

The bottom line concerning construction of a cracker(s) in the Appalachian Basin, the development process is continuing.

Shale Media Group (SMG) is a news, information, education and mapping resource dedicated to the shale oil and gas industries by messaging across video, Internet, publications, events and radio. For more, check out ShaleMediaGroup.com to access all platforms, including: TheMarcellusShale.com, TheUticaShale.com, TheShaleAcademy.com and ShaleEnergyNow.com. Rick Stouffer is the Senior Energy Editor at Shale Media Group. Contact him at [email protected].

(Photo from Shell of an ethylene cracking plant in Singapore)

Ethane Crackers Projects Announced for the Appalachian Basin

Developer

Shell Chemical/Royal Dutch Shell

Odebrecht/Braskem

Appalachian Resins

Marubeni-PTT Global Chemical

Aither Chemical

Ethane Demand

105,000 BPD

60,000 BPD

18,000 BPD

NA

NA

Ethylene Produced

1.6 MMTY

1.0 MMTY

300,000 MTY

NA

600,000 MTY

Cost

$4.0 billion

$3.8 billion

$1.0 billion

NA

$500 million

In-Service

2020

NA

NA

NA

NA

(All numbers are approximates. BPD—barrels per day; MMTY—million metric tonnes/year; MTY—metric tonnes/year) Source: Shale Media Group research


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DECEMBER2-3

OSHA Oil & Gas Safety Conference Houston, TX | www.oshasafetyconference.com

2-42014 Oilfield ExpoCleveland, OH | www.ooga.org

7-11AAPG/SEG/SPWLA Hydraulic Fracturing Conference Austin, TX | www.aapg.org

27-29Marcellus-Utica MidstreamPittsburgh, PA | www.marcellusmidstream.com

3-5SPE Hydraulic Fracturing Technology ConferenceWoodlands, TX | www.spe.org

3-5IADC Health, Safety, Environment & TrainingHouston, TX | www.iadc.org

11-13NAPE ExpoHouston, TX | www.napeexpo.com

17-18Ohio Energy Management ConferenceColumbus, OH | www.mecseminars.com

23-25Water and Wastewater Equipment Treatment and Transport ShowIndianapolis, IN | www.wwett.com

24-26Alternative Fueling Expo & ConferenceMonroeville, PA | www.alternativefuelingexpo.com

1-5SPE Production and Operations SymposiumOklahoma City, OK | www.spe.org

3-5SPE Digital Energy ConferenceWoodlands, TX | www.spe.org

22-26SAGEEPAustin, TX | www.eegs.org

24-25SPE Coiled Tubing and Well Intervention ConferenceWoodlands, TX | www.spe.org

25-26WVMA Marcellus to ManufacturingCharleston, WV | www.wvma.com

FEBRUARY(cont.)

JANUARY

FEBRUARY

MARCH


By: Tom Foster, ONG Marketplace

Energy producers across America — and especially in Pennsylvania’s Marcellus Shale region — have been leasing the land from land owners to allow drilling companies to extract natural gas. The deals come with potentially lucrative benefits, but also risk and responsibility.

“I found a lot of issues related to well site logistics, management, safety, efficiency and having access to the publicly available site data to all the players in the industry easily and where applicable,” said Manish Gorawala, MyShaleWell founder and CEO.

“I want to make that data easily accessible and transparent. Basically, MyShaleWell is a platform to setup, manage and engage all the industry players associated with the well sites effectively and quickly.” The way he saw it, no one was handling the issues related to productivity, efficiency, transparency and access to information part very well.

Energy ProducersThere is a gap in the existence of a platform which would allow producers to perform the tasks in setting up the well site logistics, such as identifying suppliers, service providers, workers, trainers, and trucking companies to perform various tasks on the site. They need to easily perform environmental monitoring, engage the community and ensure supplier diversity, so that time and money are saved to get a well site up and running quickly.

From the suppliers, service providers, trucking companies and workers engaged in

the industry, there is a gap in easy access to learn about opportunities offered by the industry. MyShaleWell brings these together in close association so that these individuals can offer their services in more meaningful ways.

Suppliers, service providers, refiners and trucking companiesThe MyShaleWell platform allows users to market services, materials and equipment to energy companies, producers, and other suppliers or service providers in the industry.

Suppliers can list their company’s services information on the marketplace, have access to RFP posted by producers, can advertise the business in mobile or web to other users of the platform, market to producers, Search “Suppliers/ Workers / Equipment” etc.

• Logistics – ability to plan, manage and inventory operations including Equipment / Materials / Subcontractors/ Employees. • Supplier diversity - access to diverse suppliers and service providers to meet Surveying Process ACT 13 SECT 2316 requirement in State of Pennsylvania • Workers - Find workers, post jobs, manage workers • Access to RFQs to provide services and bid for projects posted by

energy producers. Provide ratings to other players • Access to information on mobile and web platforms

Community MembersWherever there is a well site set up by an energy producer there are many activities that go on in and around the site. Some of these disruptions include traffic, noise, pollution, big trucks hurting the landscape and other environmental issues.

“With the absence of our platform, the community members don’t have the information about the sites that are in their community,” said Gorawala. “Now the service providers and energy producers can keep the suppliers, service providers, workers, trucking companies, trainers, businesses and community members updated with information that they previously did not have.” Land OwnersAnother issue facing landowners: problems keeping track of and managing royalty payments. MyShaleWell allows energy producers to enter the payments information for the well site being managed, creating a transparent data-rich dashboard shared with the landowners for the relevant site(s).

The pricing model Free for community members, landowners and workers.

Six-month Free Trial – for the service providers, suppliers and refiners, after which it is $10 per user per month.

Three-month Free Trial - for energy producers, after which it is $50 per user per month. The platform is built to save industry players time and money, by making their logistics more efficient.

Our goal is to globalize the industry with this platform and make this available to all the players in the industry such as suppliers, service providers, trucking companies, refiners, workers, land owners and energy producers worldwide.

MyShaleWell platform includes all of the players from the bottom up to the heavy hitters.

“I joined the advisory panel for the development of the MyShaleWell platform because it is directly solving many big issues that have been facing the shale gas industry for a very long time,” said Michael McCawley, a professor at West Virginia University. “Manish is addressing issues such as environmental monitoring, community engagement, safety and security of workers.”

To learn more about the platform and its features please visit www.MyShaleWell.com or download the mobile app from Apple or Google app store by searching the text “MyShaleWell”.

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By: Kenneth J. Fleeman, Manager of Engineering, ABARTA Energy

Oh how times have changed. A circa 1990 Department of Energy report sang the praises of horizontal drilling and hydraulic fracturing. The report was unique in that it rightly acknowledged the environmental benefits of both technologies and that it was issued on CD-ROM, all cutting edge technologies for the time. Fast forward to today when “fracking” is portrayed as public enemy number one. Despite the false perception, the abundance of natural gas affords the United States reduced levels of carbon emissions without the onerous tax burden had the U.S. subscribed to the KYOTO treaty. It also provides our citizenry affordable fuel to heat homes, power vehicles and grow competitive manufacturing businesses. The most significant impact is the changing geo-political landscape. The United States is nearly self-sufficient and will soon be exporting energy thus shifting the balance of world power.

Meanwhile, many agencies of the federal government have been hard at work expanding their regulatory power over the energy sector. Most federal lands are off limits to oil and gas development or development is seriously impeded by red tape. A case in point is the curtailed level of development in the Gulf of Mexico post-Macondo, the spill which occurred in April 2010. A myriad of pending changes to existing programs and new proposals pose significant political risk to future development on private lands. We need to be aware of these changes and be involved in the regulatory process.

Most producers are aware of the significant impact of the U.S. EPA’s expansion of air regulations impacting oil and gas producers over the past few years. Arguably the rule with the most impact to the industry can be found at 40 CFR Subpart 60 Subpart OOOO - Standards of Performance for Crude Oil and Natural Gas Production, Transmission and Distribution. Subpart OOOO, finalized in 2012, regulates emissions of volatile organic compounds (VOC) as a surrogate for methane from oil and gas operations. The rule includes requirements for the control of VOC emissions from “affected facilities” that include devices as small as pneumatic valves. In addition, the U.S. EPA promulgated the Mandatory Greenhouse Gas Reporting Rule at 40 CFR Part 98 in 2009. Subpart W – Petroleum and Natural Gas Systems, added in 2010 and revised in 2011, is a broadly applicable reporting-only

requirement that mandates the collection of data and the calculation and reporting of greenhouse gas (GHG) emissions from affected oil and gas operations on a basin-wide basis. Some operators and facilities must also report GHG emissions associated with engines and other combustion sources such as heaters under Subpart C – General Stationary Fuel Combustion Sources. The collective operational and cost impact of Subpart OOOO and the Mandatory Greenhouse Gas Reporting rule combined with multiple air quality regulations governing engines, compressors, processing plants, and state specific rules and reporting mandates directed at the industry are substantial. And the EPA is far from done! Industry awaits the Administration’s “policy decisions” on how to regulate methane emissions -- which are now past due. It is anticipated additional sources from the oil and gas sectors will be regulated, perhaps through additional revisions to Subpart OOOO, or directly through additional New Source Performance Standards. The EPA is also under court order to determine whether to ratchet down the National Ambient Air Quality Standard for ozone by December 1, 2014. Much of the country could be thrust into nonattainment, necessitating a regulatory regime that many operators have not been forced to deal with before. Stricter methane and ozone regulations will require significant expenditures for years to come.

More recent efforts, under a variety of statutes, are as follows:

In a Proposed Rulemaking regarding Definition of “Waters of the United States” (79 FR 22188, April 21, 2014), the EPA and the U.S. Army Corps of Engineers seek to regulate additional waters under the Clean Water Act. The West Virginia Chamber of Commerce estimates that this attempt increases the EPA’s regulatory reach from 3.5 million river and stream miles to well over 8 million river and stream miles! This would include seasonal flows and bring all adjoining wetlands under federal jurisdiction.

Per a recent news release, The U.S. Environmental Protection Agency has made a preliminary determination to regulate strontium in the nation’s drinking water through the Safe Drinking Water Act. A regulatory determination is a formal decision on whether EPA should initiate a rulemaking process to regulate a specific contaminant. The determination was put out for public comment.

Earlier this year, the EPA provided technical guidance regarding the use of diesel fuel for hydraulic fracturing that may require a UIC Class II permit under the Safe Drinking Water Act. In Pennsylvania, the EPA takes primary responsibility for all UIC permitting, which increases the EPA’s role with respect to UIC wells needed for waste disposal from oil and gas operations.

The EPA recently sought comments on additional regulation for and disclosure of fracturing chemicals through the Toxic Substances Control Act. It seems that nothing short of complete disclosure of proprietary formulas will suffice despite the uniform disclosure and availability of health and safety impacts for every chemical used in the hydraulic fracturing process.

The EPA also adopted a national enforcement initiative against the energy sector in 2011, resulting in numerous settlements under the Clean Water Act and other statutes. The EPA conducted about 2000 inspections under this initiative, resulting in over 120 enforcement actions in the energy extraction sector in the past three years.

The U.S. Fish and Wildlife Service and the National Marine Fisheries Service recently published three proposals that would expand the designation of critical habitats under the Endangered Species Act and expand the definition of “destruction or

A LOOK AHEAD AT POTENTIAL FEDERAL REGULATION CHANGES

LEGAL& FINANCE

December 2014

adverse modification” from actions that impact critical habitats. (Docket Nos. FWS-HQ-ES-2012-0096, FWS-R9-ES-2011-0072, and FWS-R9-ES-2011-0104). Multiple industry groups joined the IPAA in commenting on these proposals, noting that the proposals are inconsistent with the agencies’ statutory authority and relevant case law, and that increased designations of critical habitat will impact the energy sector and small businesses in ways that the agencies failed to consider. An increasing number of species, such as the Northern Long-eared bat, are proposed for listing as endangered or threatened under the Endangered Species Act expanded critical habitat designations. This will extend planning and impact placement of energy facilities and infrastructure.

These issues are just a few of the reasons that we must be vigilant in monitoring and shaping our legislative and regulatory future. Publications such as this one are part of the solution by keeping us informed. Other avenues for affecting change are exercising our right to vote and participating in industry organizations. There are many organizations through which you can monitor the regulatory landscape and provide input on critical issues. I happen to volunteer for PIOGA, the Pennsylvania Independent Oil and Gas Association. There are many more. Find the one that best represents your interests and get involved.

For more information, please contact Ken Fleeman, [email protected] , 412-963-6134.

Kenneth J. Fleeman, Manager of EngineeringABARTA Energy, 200 Alpha Drive, Pittsburgh, PA 15238-2906412-963-6134 office * 412-352-0133 cell * 412-963-6498 fax [email protected] * www.abartaenergy.com

With contributions and editorial assistance from:Babst-Calland, Jean MositesAll4 Inc., Roy RakiewiczSpillman, Thomas & Battle, PLLC, James ElliottMoody & Associates, Jeff WalentoskyPhoto compliments of ABARTA Energy

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Surging production from the Marcellus and Utica shale plays is nothing short of staggering, and virtually every expert predicts continued growth. By 2018, Marcellus production is expected to reach 20 Bcf/d. Analysts predict the Utica could be even larger than the Marcellus. Operators are spending $18 billion in CAPEX for Northeast shale production growth in 2014 alone.

Billions of dollars are being invested on new gathering, processing, storage and transportation capacity for the region. And major pipelines like the Rockies Express (REX) are reversing course to carry natural gas from the Northeast to new markets across the country and around the world.

The Marcellus-Utica Midstream conference and exhibition puts you at the center of the action this January. Attend to hear directly from top midstream analysts and executives about the latest production estimates from the Marcellus and Utica and learn about major midstream projects in the works. Secure your seat today!

To ATTEND, SPONSOR or EXHIBIT, visit MarcellusMidstream.com

Barry DavisCEO

EnLink Midstream Partners LP

Darrell BullVice President,

Business DevelopmentCrestwood Midstream

Partners

Craig PiersonPresident

Marathon Pipe Line LLC

Karen KabinVice President,

Business Development Kinder Morgan

Energy Partners, L.P.

John Mollenkopf COO

MarkWest Energy Partners

Richard Hoffman Executive Director INGAA Foundation

MARCELLUS

UTICA

the northeast ong marketplace - december 2014

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