gas & oil magazine - august_2012
TRANSCRIPT
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Dix Communications - Gas & Oil August 2012 Edition
Andrew S. [email protected]
G.C. Dix [email protected]
Ray BoothExecutive [email protected]
Cathryn StanleyRegional [email protected]
Niki WolfeRegional [email protected]
Ed Archibald
SE Ohio SalesCambridge, Ohio [email protected]
Janice WyattNational Major AccountsSales Manager [email protected]
Peggy MurgatroydSE Ohio SalesBarnesville andNewcomerstown, Ohio [email protected] Barnesville740-498-7117 Newcomerstown
Jeff KaplanNE Ohio SalesAlliance & Minerva, Ohio [email protected]
Owen WilliamsLayout Designer
“Gas & Oil” is a monthly publication jointly produced by Dix Communication newspapers across Ohio. Copyright 2012.
Cover Photo by: Review Photo/Kevin Graff
Gas is burned off at the drilling site on Route 619 in Marlboro, OH.
◆ Gas/Oil industry Doubles job
creation impact ..............................................pg. 3
◆ Penn State Study Follows the Water ............. pg. 4◆ Natural gas can fuel development in Ohio ..... pg. 6
◆ Tips on becoming industry partner ................pg. 8
◆ Signicant U.S. shale plays
leading to bonanza ......................................pg. 10
◆ Foam: Fire department using new technology to
extinguish oil and gas well res ................... pg. 15
◆ Rootin’ for a boomer: Money slows,
but that is to be expected ............................pg. 18
◆ Business picks up in Carroll County ............ pg. 20
◆ Pipeline Easements
Steps to Protect Landowner Rights .............pg. 22
◆ ‘We must get it right’: Shale development means
economic development ................................ pg. 2
◆ Chesapeake Energy employees pitch in .....pg. 26◆ New technology, water treatment
will help solve water usage issues ...............pg. 2
◆ MAC Trailer continues strong sales ............. pg. 3
◆ BOOM leads to caution ...............................pg. 3
◆ High schools, adult education respond to
emerging industry with new curriculum .......pg. 34
◆ Oileld workers help clean up cemetery ...... pg. 36
◆ Zane State College receives funds to offer
free oil and gas-related counseling to
small business owners ................................pg. 3
◆ Inside CONSOL Energy ..............................pg. 4
Table of Contents
Attributions
Ohio
Inside: U.S. s hale pla ys leading to en
erg y bonan za
A FREE n tl y PublA t n
O h io
AuGu S t 2 01 2 • w w w.ohiogo.com
Penn S ta te S tud y
Follo ws
T he Wa ter
Ho w To Become An
Indus tr y Par tner
Gas /Oil Indus tr y
Dou bles Jo b
Impac t
Na tural Gas
Fueling De velopmen t
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Gas & Oil August 2012 Edition - Dix Communications
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as/Oil industry job creation impa
With the influx of oiland gas companiesarriving in eastern
Ohio, most people expect jobgrowth.
What they may not realize is
that there are added benefits forevery oil and gas job - nearly
two to be exact.
If Ohio follows the same trend
as Pennsylvania did with the
development of the Marcellus
Shale,
it will
find each
reated by the oil and gas industry
es nearly two jobs somewhere in
tate.
. John Gregor, an economics pro-
r at Washington and Jefferson
ege in Washington, Pa., said the
State study determined the 1:2
for the Marcellus Shale.
noted the model is based on the economy before shale
oration, pointing out that once development occurs, there
hanges in support industries.
When they first came to Washington County, jobs were
ed outside the area, and now the jobs are inside the coun-
he said, speculating the outside workers are either becom-
Pennsylvania residents or have been replaced by localkers based on the reduction of out-of-state license plates.
cording to a study led by Dr. Tim Kelsey of Penn State
ersity on the economic impact of Marcellus Shale in
sylvania, each new Marcellus well generated 30 jobs in
sylvania during 2009 and around $4 million in total output
n Pennsylvania’s economy.
his includes the jobs created by direct gas-industry spend-
and indirectly through the companies with whom they
contract, by worker spending of earnings and by miner
owner spending of leasing and royalty dollars,” the stud
Another study prepared by the World-Class Industri
work, LLC., in collaboration with the Marcellus Shal
cation and Training Center, on job creation in West Vir
Marcellus Shale indicates that more than “90 percent
creation takes place in the pre-drilling and drilling phwell development.”
“Jobs, however, will not disappear once a well is com
because new ones will be started elsewhere - Marcellus
is anticipated to last for decades,” it stated.
An economic-impact study on the emerging Utica
prepared for the Ohio and Gas
Education Program, stated in
“Ohio’s natural-gas and crude
dustry supports more than 4,4
rect jobs, which contributes to
12,950 Ohio jobs due to the lroyalties, exploration, drilling
duction and pipeline-const
activities in various geological
tions within Ohio.”
The OGEEP study also states “more than 204,000 jo
be created or supported by 2015 due to exploration, l
drilling and connector pipeline construction for the Utic
reserve.” It also notes 4,614 jobs were created in 201
well exploration and development, midstream, royal
lease expenditures, and this number is expected to ju
22,297 in 2012.
Kimberly Lewis
Dix Communications
“Each job created bythe oil and gas industry
creates nearly two jobssomewhere in the state”
204,000Ohio jobs created by the Gas & Oil Industry
Review Photo/Kevin Graff
Workers unhook water lines after pumping concaround the sheath in the well in order to help protectlocal water supply.
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Gas & Oil August 2012 Edition - Dix Communications
nn Stat Study Follows th WatrA
new publication, of-fered by the Penn StateUniversity Extension,
explores the use of water inmining natural gas from deepshale formations.
“Water’s Journey Throughthe Shale Gas Drilling and Pro-
duction Processes in the Mid-
Atlantic Region” analyses the
various means in which water
flows through the natural-gas
industry vis-à-vis the Marcel-
lus shale shale formation.
The lead author of the pub-
on is Charles Abdalla, professor of agricultural and envi-
mental economics.
though the publication focuses on the Marcellus shale for-
on in Pennsylvania, much of the information is applicable
hio.
e chief use of water in the mining
ess, of course, is hydraulic frac-
g — injecting water under high
ure to open fissures in rock for-
ons, thus releasing natural gas or
leum that had been entrapped, as
re, in the rock.
ne of the misconceptions is that
nd water is contaminated by
king],” Abdalla said. “There is
much evidence of that. These for-
ons are so far down there is not
h chance of that.”
Water’s Journey...” details how
and interstate government agencies are being challenged
eep up with the rapid pace of shale-gas development. It
s that new technologies are being tried in both the re-
ce-development process and in managing environmental
water quality and quantity impacts.
e regional river basin commissions, which exist largely
e eastern part of the Marcellus region, have been handling
Marcellus water-management issues by developing regu
to address the industry’s demands on water resources a
tential quantity impacts.
“This publication focuses
on Pennsylvania because it h
most Marcellus drilling activity
state to date,” Abdalla said. “M
the data comes from the Susqu
River Basin Commission, wh
been out in front in collecting
use data.
“We raise issues pertinent t
other mid-Atlantic states with M
lus shale, as well as Ohio.
“The issues discussed —inc
acquisition and transport of fre
ter for drilling, treatment, tra
and discharge of drilling was
— also may pertain to other shale deposits, such as th
shale, which underlies parts of these states.”
For more information on obtaining copies of the repo
814-865-6713, or send a request by email to AgPubsDis
edu.
The publication also is available on the web at http
cas.psu.edu/FreePubs/PDFs/ee0023.pdf.
John Lowe
Dix Communications
“One of the misconcep-tions is that ground wa-ter is contaminated by[fracking]. There is not
much evidence of that.”– Charles Abdalla
W at e r ’ s J o ur ne y T hr o ug h t he S hal e G as D r i l l i ng and P r o d uc t i o n P r o c e s s e s i n t he M i d - At l ant i c R e g i o n
T he Mi d - A t l ant ic W at e r P ro gr am i s a c o o r d i nat e d e f f o r t amo ng De law ar e Stat e U ni v e r si ty ; U ni v e r si ty o f De l aw ar e ; U niv e r si ty o f the Dist r ic t o f C o lumb ia; U ni v e r si ty o f Mar y l and ;U ni v e r sit y o f Mar y l and , E aste rnSho r e ; P e nn St at e ; V ir gi nia Stat e U niv e r si t y ; V i rgini a T e c h; and W e st V ir gi ni a U ni v e r sit y .
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Dix Communications - Gas & Oil August 2012 Edition
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atural gas can dvlopmnt in Oh
Since graduating fromMuskingum Universityin 1979 and earning a
law degree from Capital Uni-versity in 1989, Donald L. Ma-son’s life has been immersed
in public service, evidenced byhis numerous appointments tostate and national committees,chairing several that dealt withenergy policy.
Mason was elected to the
Zanesville City Council in
1979 and served until 1983
when he was elected mayor of
sville as a write-in candidate. During his tenure, he over-
natural gas and cable negotiations, water and sewer infra-
ture developmental and other public works projects.1991, he joined the Voinovich administration as oil and
hief and/or deputy director for the Ohio Dept. of Natural
urces. In 1998, he was appointed by Gov. George Voinov-
s commissioner of Public Utilities Commission for Ohio
erved until 2008.
uring his tenure as PUCO commissioner, Mason repre-
d Ohio on the Interstate Oil and Gas Compact Commis-
from 1995-2010, where he chaired various committees,
tually becoming vice chair of the Commission. He was ap-
ted by the U.S. Secretary of Energy Spencer Abraham to
National Petroleum Council, and reappointed by Secretaryuel Bodman; and as government representative and chair-
of the U.S. Dept. of Transportation Technical Hazardous
id Pipleine Safety Committee.
ut, when asked about what he considers to be his most im-
ant accomplishments during his tenure in public office and
rnment agencies, he said, “When I was mayor of Zanes-
in the 1980s, all economic development efforts were dis-
ed between various government entities. It was very politi-
cal and cyclical. One of my advisors suggested the con
bridging city and county friction by creating a combined
that would gather financial and political strength of the c
the county. The county commissioners were very recept
created a partnership that spanned political party and c
city politics — the Muskingum County Port Authority.
“A private study was conducted to determine strenthe community. That led to recognition that I-70 was t
fect avenue for developing travel and tourism. That i
the county and city created the Zanesville-Muskingum
Convention and Visitors Bureau, which has been a real
in promoting activities and bringing in outside dollars
community.
“The Muskingum Port Authority and the CVB are ke
ponents in the county’s success ... Both entities also
positive impact on surrounding counties, in addition t
State College, which has been a key factor in promoti
providing the education needed for a skilled workforce“Recently there have been a lot of commercials on TV
coal from the American Coalition for Clean Coal Eco
Coal has always been in abundance in this country. An
long time it has served a purpose. Coal is in transition a
companies are trying to create cleaner emissions. But,
gas has half of the carbon emissions and none of the par
matter of coal, and it is cheaper than coal ... Natural gas
in our region can easily be utilized for electric power g
tion,” said Mason.
“Natural gas can step into the markets to replace coal
mendous savings to the Ohio electricity customer, imprenvironment immediately and provide true economic st
in the way of jobs and royalty checks to landowners.
“The biggest savings are at the bottom line. Natura
a ‘natural’ transition for electricity generation becau
domestic, cheaper than coal, more abundant in Ohio, h
carbon content of coal and provide royalties to local f
and landowners.”
Involvement in service applies to Mason’s personal
as public life. He has been a Rotarian with 30 years of
attendance at the Zanesville Noon Rotary Club, he is
Degree Mason and a Shriner, and was a recipient of anfor outstanding community service by the Grandma
Judie Perkowski
Dix communications
Continued on
“Natural gas can stinto the markets to place coal at a trem
dous savings to the Ohelectricity customer.”– Donald Mas
rt Russell, chief operating officer for Energy Construction
agement, looks over a generator used in the oil and gasstry. ECM Rentals rents a variety of equipment used in the oil/ ndustry including compressors, pumps, lifts, heaters and more.
CM develops branch in Ohio
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Dix Communications - Gas & Oil August 2012 Edition
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ips n cing industry prtn
Chesapeake Energy, En-erVest and Rex Energyrepresentatives believe lo-
endors will benefit from the oil and gas boom, but they dosome advice on getting on the list.
ark Matusik of Chesapeake Energy, Jim Pritt of EnerVest
Steve Harris of Rex Energy recently said each company
res a master service agreement, which lists the services
ndor can provide. Prospective vendors are reviewed by
k-management team prior to hiring, since safety is para-
nt in the oil and gas industry and
ndustry expects the same for any
ness it hires.
hesapeake’s master service agree-
s can be found at its website,
w.askchesapeake.com. Matusik
an existing contractor must be
le to meet the company’s require-s before it considers a new ven-
tt of EnerVest points out that as shale exploration grows
hio, support companies and vendors will move in this di-
on. Pritt believes the smaller size of EnerVest allows the
pany to make its decisions more quickly, including the use
of local vendors.
Harris of Rex Energy explained the company keeps a
companies and when services become available, Rex
will contact a local supplier to see if it is interested. H
ommends interested businesses go to www.rexenergy.co
click on “supplier info” under “contact us.”“Be patient, there will be opportunities,” Matusik adv
He points out field operators are encouraged to recom
businesses to begin the vendor process.
James Ladlee, associate dire
the Marcellus Center for Outrea
Research with Penn State Ext
recommends patience and
persistence” to local business
interested in developing a relat
with the oil and gas companies
Specializing in workforce dement, Ladlee advises business
to provide industry field repr
tives with several business ca
they are aware of the local business and its interest.
“And if they call, over deliver,” he stressed.
Ladlee also suggests businesses look at providing in
related services and items, such as steel-toed boots and c
mberly Lewis
Communications
“Be patient, there will beopportunities.”
– Mark Matusik
Chesapeake Energy
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ignifcant U.S. shale plays leading to bonan
The production of naturalgas from shale forma-tions has rejuvenated
the natural gas industry in theUnited States.
Shale is the most common
type of sedimentary rock. Un-
like conventional oil and gas
reservoirs, shale gas and oil are
self-contained
petroleum sys-
tems in which
the organic car-
bon-rich shale
serves as the
source, the reser-
and the seal.
hen shale gas wells come on-line, they startwith high production rates. But production
ally declines 50 to 60 percent in the first
After that, the well production declines more slowly,
ually leveling-off to provide a long production life of
etimes 50 or 60 years. The Barnett Shale in the Dallas –
Fort Worth area of Texas was the first economically s
ful natural gas play in the world as new seismic (under
shock wave) testing and modeling, horizontal drilling,
draulic fracturing technologies were developed and app
the past decade.
The Barnett success, along with several years of high gas prices, spurred companies to search for other sou
shale gas across the U.S. Some of the other significan
gas plays include th
rim Shale located in
gan; the Fayetteville
in Arkansas; the H
ville Shale in Lo
and Texas; the Ohi
vonian) Shale in P
vania, Ohio, Kentuc
West Virginia; the ford Shale in Oklaho
huge Marcellus Shale
palachia; and the promising Utica Shale located prim
eastern Ohio and western West Virginia.
Norm Shade
President,
ACI Services
“Oil from shale is themost signicant newdevelopment in the U.S.
energy picture...”
Continued on
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Dix Communications - Gas & Oil August 2012 Edition
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EAST PIKE, ZANESVILLELOCATION, LOCATION, LOCATION! Just off I-70this commercial building is almost 12,000 sq. ft. Lots oparking! NEW ROOF. Commercial Location w/approx3.5 acres. Very high visibility location between Zanesvill& Cambridge.
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Fire department using new technologyextinguish oil and gas well fres
In an effort to maintainsafety for those they serve,the Newcomerstown
Emergency Rescue Squad’sFire Division has invested in
a new way of helping fight oiland gas well fires.
This new way of fighting
fires is actually through an ap-
plication of a specialized foam
directly applied on the fire.
The foam prevents the re-
lease of vapors from the fire
by “blanketing” the fire and es-
sentially extinguishing it, said
her Stein-Wells, president of NERS.
looks like a gigantic bubble bath for lack of a better de-
tion,” she added.
far, the department has purchased 10 five-gallon pails of
oam. However, Stein-Wells said the foam is rather expen-
She said the foam costs approximately $28 per gallon,
this type of foam is known as ATC AR-AFFF foam or
eous Film Forming Foam.
e foam is biodegradable and environmentally-friendly
h requires very low energy input to produce a very high
ty foam blanket that floats on the fuel surface.
ein-Wells said the foam is mixed with water in hoses on
ire truck and these specialized hoses are used to spray the
m on the fire. They also have a portable foam pack that isin cases where the fire is relatively small in size or dif-
t to get to but very flammable.
e said the department has been called to several oil and
al gas well fires recently. Most recently, she said they
called to help with a fire at an oil well storage tank ex-
on off River Road, Gnadenhutten, in January of this year.
ever, one of the main problems for firefighters to extin-
h the fire is actually turning off the fuel source. To do that,
ghters must call the telephone number of the company on
ide of the well that is on fire to have company officials
ond to the scene. In that case, she said firefighters use bin-ars, if they cannot get close to the fire.
e also said on-lookers and sight-seers are also a problem
n firefighters are trying to locate the well site as the ve-
s hinder the response of emergency vehicles by blocking
oad. Locating the well itself can be difficult, especially
n the wells don’t have addresses.
ometimes that’s a challenge because there is no address to
ite so that makes it more difficult to locate for firefighters
also for the person calling in the fire if they are not familiar
the area,” she said.
ein-Wells said Newcomerstown firefighter and paramedice Wright has done many hours of research to find the right
uct and type of foam to be used to extinguish these fires in
the most efficient manner.
Besides the use of the new AFFF foam, she said the fiers are also continuing to do trainings on how to safe
efficiently extinguish an oil and gas well fire.
“We are trying to send our members (firefighters an
medics) to specialized training,” she said.
Newcomerstown firefighters are required to attend
training sessions at the fire station and this is just one mo
that the village fire department is helping to ensure the
of those they [email protected]
Niki Wolfe
Dix Communications
Newcomerstown Emergency Rescue Squad’s Fire Divisiofighters Derek McCune, in the fire truck, and Nate Steinoff the new portable foam pack that the fire departmenfor oil and gas well fires.
oam:
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Rtin’ fr boomeRMony slows, but that is to b xpctd
My recent travelsaround the oil andgas people operat-
ing in this area have revealed
that the bloom is off the roseas far as the current activitygoes. Not to say all is lost, but,as predicted, the initial shot-gun approach and high dollarsflooding the area are rapidlydrying up in most areas.
The current trend on thoseunpaid leases is to renegotiateto a lower price or return thelease all together. This is not a
new thing, as it has happened in
r areas of these current booms. It was expected. But, liked, not all is lost. There are several things that can be donethe next weeks and months to see if your land has poten-or this deep drilling.e involves a little snooping on your part. That is, therebeen several wells drilled in the area over the last sev-
months. I know some to be veryand some to be relatively poor
today’s standards). I know thisuse of the people I associate withquestions that I ask. You and thosend you can be finding out the info.o, be realistic about your expec-ns. Over the weekend some goodds of ours said they were con-d once again about their lease.people who have it have strungout for almost a year. They havetheir certified letter in demanding
ment like many of their neighborswere ready to jump to anotherThen, they get a letter saying
will get paid but at a reduced rate. wanted to know whether to sign the letter or not. Theytheir neighbors were not going to sign because they wereng out for the top money they were promised.ll, maybe they will get that, but in all probability they willLike the poor guy named Angelo we were dealing with in
upstate Pennsylvania. He didn’t sign because they we$250 per acre apart. He died this past year without even offering to pick up his lease at any rate. That’s justthe dice and in this case he lost.
That’s not to say you will if you hold out. But, as thespanies now retrench and determine where they are gdrill their first programs they will be coming back andin where they need and really not look at other placesmay not come back at all as the big freewheeling lease aand drive up the price of rentals really didn’t work owith several companies. They spent a lot of money andreally generate a lot of locations. That is, sufficient acrone area to justify drilling a well or paying the leases.
The option is to buy leases at a much higher rate or juoff. (The latter being more common in this play.) So, apeople get left with a bad taste in their mouths. No w
they brought J.R. back. Just don’t let this drive your of the future.Educate yourself and those around you. Find out w
picked up leases in your area. Approach this with a myou can use to block up acreage that a company can lGo to the recorder’s office. Colleen Wheatley and h
at the Recorder’s office can hepull up your deeds to see if thany reservations on the deedcan’t give you an opinion as shan attorney, but just finding yocan help a lot.
Also, be realistic. Get togethfind a real figure that will put in all your pockets and won’t gcompany fits. Remember somhalf a loaf is better than none this business the real money iin production, not leasing. If ylure a company into drilling iarea, and it hits a reasonablyou have helped everyone getto your expectations. It is realgoing to the mailbox once a m
pick up the check. The only fight on your hands couldspouse beating you to the mail box. I settled that one, tI don’t have a Post Office box, but anything under a amount is hers. Anything above that, I get the check. Iroot for a boomer.
Don Gadd
dependent Landman
“Get together and nda real gure that will put
money in all your pocketsand won’t give thecompany ts. Remember sometimes half a loaf isbetter than none.”
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usinss picks up in Carroll Count
“Iwould definitely say Car-roll County is more activeand more vibrant than it
two or three years ago. People are smiling again,” saidoll County Chamber of Commerce Director Amy Rut-e. “People are more optimistic than they used to be.”
at optimism can be found in a variety of businesses, fromestate to retail.
r NAI Spring in Canton, a Stark County real-estate com-
that focuses exclusively on commercial and industrial
estate, Carroll County is the “place to go.”
AI Spring President Dan Spring
ted out Carroll County does not
a huge industrial base and the
pany did not have a large presence
e past. But today, you cannot drive
where in the county without pass-
ne of its signs.
e oil and gas boom “has affected
business,” Spring admitted. “We
been in business for a little over
ears. We have had growth every
We have already hit our numbers
last year and we are only half-
through the year. I attribute that
e oil and gas boom.”
points out the “run-of-the-mill companies working for
apeake want a standard 10,000 to 20,000-square-foot
ding with 5-10 acres of gravel lot.” Not something easily
d in Carroll County, Spring said, “Some existing business-alized the time to expand is now and snapped up available
e.”
is now at a point where (incoming businesses) are looking
w land, although there are some buildings still out there,
not a ton,” Spring said.
Bud’s Farm Toys, located at 75 W. Main St., Carroll-
owner Cheryl Garner has noticed increased foot traffic in
ntown this year as more families of oil and gas workers
arrive to visit or stay in Carroll County.
“At Christmas, the oil and gas workers were comin
buy toys for their kids,” she said, noting the diecast co
tion equipment and trucks are popular. The business als
diecast tractors, Radio Flyer wagons, Breyer Horses, a
ture memorabilia and signs.
When the economy dipped in 2008, so did the store’s“Much of our business is selling older diecast collec
Our toys were not a necessity, and people cut their recre
collecting,” she explained.
During Christmas and this spring, Garner saw b
pick up. “It was better than last
she said. The oil and gas boo
helped me a little bit.”
Owner Brad Rogerson has
employees at Carson NAPA, loc
308 E. Main St., Carrollton, b
of an increase in business frodents receiving royalties and b
as well as the oil and gas indus
The increase has not been
one area, he said. “It has been
bit of everything.”
Like Garner, Rogerson saw
crease in business in 2008 to
“People started putting off repairing their cars,” he exp
“This year, and most of last year, people started to catc
their repairs.”
While he has sold some equipment and specialty auted items to the oil and gas workers, he has noticed the
difference in people doing their own repairs.
“They are not just buying higher quality parts, they
ing further to do a more complete repair,” he explain
example, do-it-yourselfers are replacing the entire brak
just the brake pads.
“They are doing the job right,” Rogerson said.
imberly Lewis
Communications
“Some existing busi-nesses realized the time
to expand is now andsnapped up availablespace.”
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iplin esntsteps to Protect Landowner Rights
Many Ohio landown-ers have been, orsoon will be, ap-
proached by a pipeline compa-
ny representative trying to ob-tain a pipeline easement. Thismemo provides an overview of the steps that a landowner willwant to consider in prepara-tion for being approached by apipeline company representa-tive. This is important becausea pipeline easement is likelya forever encumbrance on theproperty!
Step 1 “The Title Re-
search”: Determine whetherthere are any existing ease-ments or right of way agree-
s affecting your property’s title. Pipeline rights granted inast can have a significant impact on your ability to sign apipeline easement. A prior easement may allow a pipelinepany to install new pipelines on your land. It’s importantow that, unlike oil and gas leases which are for a limitedion, most easements last forever.ep 2 “The Decision About Granting”: The landowner’sdecision is whether he is willing to agree to a pipelinement. If the landowner absolutely does not want a pipe-
on his property – no matter the terms or compensation –the landowner should tell that to the pipeline company ASN AS POSSIBLE, so the pipeline can be re-routed aroundproperty. If a re-route isn’t possible the landowner willto immediately hire an attorney (knowledgeable about
ines) to discuss options.ep 3 “The Knock on the Door”: When the pipeline com-representative first approaches you to sign an easement
ill likely want to obtain your signature on the spot. Yoube told there is a certain timetable within which you needgn, and if you don’t sign, the company will take your landugh eminent domain. You will also be told that your neigh-
signed the easement and the neighbors will be angry withf you do not sign. You will feel pressure to sign quickly.there is no rush for you to sign! You will want to be fullymed about your rights and understand every word in thement before you decide to sign.ep 4 “The Negotiation of Terms”:You want to make surethe easement terms adequately protect you and your landver – and that will take negotiations. Some of the terms youwant to include: (1) Description of the specific purpose of ipeline; (2) the specific location; (3) the type of pipeline tostalled; (4) Specific requirements regarding construction,tenance, and remediation; and (5) terms to adequatelyct you and your property and sufficiently compensate you
he easement and for any damages.ep 5 “Show Me the Money”: After negotiating terms, fo-
cus on the question that has been on your mind since yoed thinking about pipeline easements—what am I gettifor this? While the easement will likely last forever, tythe only compensation you will be paid for on the eas
is a one-time payment agreed to at the time of signingabout how the easement will affect the property, properand property value at the present time and also what futuor value the easements may inhibit.
Step 6 “The Threat of Eminent Domain”: A pcompany may have the right to acquire a portion of yothrough eminent domain if you do not agree to grant ament. However, do not let the threat of eminent domainyou to accept the easement and compensation that a pcompany representative first offers you. Even if a part land is taken by eminent domain a landowner has the “just compensation” for that land, and your land values
at its “highest and best use” which is usually well in exthe amount initially offered to a landowner.
NOTE: This article has been prepared for informationposes only and is not legal advice. This general discusthe law should not be used to solve individual probleno person should act upon any information contained article with regard to their own unique factual situation wfirst seeking their his/her own attorney knowledgeable
easements and rights of way.
Mr. Emens is a partner in the Emens & Wolper Law Firm
whose major areas of practice are Corporate Law, O
Gas Law, and Family Owned Businesses. For more thayears, he has counseled numerous clients on business
and gas issues including oil and gas leases, acquisitio
sales, and represented many clients before state and
regulatory agencies.
Sean Jacobs is an associate with Emens & Wolper Law
LPA. His primary areas of practice include Oil and Ga
Estate Planning, and Corporate Law. Mr. Jacobs re
speaks to groups of landowners around the state of Ohi
various topics related to oil and gas.
J. Richard Emens,
also attributing
Sean Jacobs
Emens & Wolper Law Firm
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Shale development meanseconomic development,and that’s exciting news
for Ohio. It means tens of thou-
sands of good-paying jobsacross our state, all while help-ing to lower power costs forOhio consumers.
As with anything else, we
need to ensure that our local
communities are consulted and
that we rely on scientists and
experts throughout the process
to maintain a quality water
supply. That means keeping a
close eye on brine injection,
aking protective actions when necessary.nd we need to ensure that Ohio jobs created through shale
lopment are filled by Ohio work-
st April, I helped convene a shale
lopment jobs fair in North Can-
Jobseekers began lining up at
am, and by the end of the day,
than 1,200 people came look-
or work—many of them returning
ans. Thanks to the natural gas
m throughout Ohio, more of thoseand women who lined up last
l will find a job. More of those he-
who fought for our country won’t
to fight for work when they come home—and our entire
will benefit as a result.
t there’s more than we can do. Federal training assistance
ailable to ensure that workers are equipped with the right
sets for jobs in shale development. In June, I visited a
gas training center at Steubenville’s Eastern Gateway
munity College (EGCC). EGCC offers several train-
rograms for jobs in the Utica and Marcellus shale plays,ding a U.S. Department of Labor (DOL)-funded initia-
called ShaleNet that works to ensure that local residents
ualified and can be hired for new jobs in the oil and gas
stry. EGCC also has a program, Retrain America that of-
similar training for Ohioans looking for work in the shale
stry. We need to continue investing in federal workforce
lopment efforts.
e should also help partner businesses with local commu-
colleges and workforce investment boards in order to de-
p specialized curricula and training. I saw a good example
is at a company called Tremcar, in Dover, which manufac-tankers for use in shale development and the petroleum
stry. Tremcar has been coordinating with the Buckeye Ca-
reer Center and Stark State College to train Ohioans f
jobs in the natural gas industry. The company emplo
eral graduates and interns of programs at the Buckeye
Center, and will be bringing in a welding instructor from
State College to run intensive two-week welding trainiits new hires.
We need to support these existing partnerships,
also need to build more of them. That’s why I introdu
Strengthening Employment Clusters to Organize R
Success (SECTORS) Act. This bill would help local com
ties and educational institutions tailor workforce strate
meet industry needs. This bill would allow more worker
ceive placements and attract more businesses to our sta
SECTORS Act would organize stakeholders connect
regional industry—businesses, unions, education and t
providers, and local workforce and education system adtrators—to develop plans for growing that industry.
We know that Ohio is home to countless innovativ
panies and a world-class workf
now we need to ensure that
companies arriving in the state
lizing all that Ohio has to offer.
I’m optimistic about this e
opportunity. I’m eager for the jo
natural gas exploration will b
Ohio, and I’m committed to m
sure those jobs are filled by OhThis is a whole new industry
plore. But we must get it rig
must pay close attention to ensu
our future energy needs are met by our own workers.
U.S. Senator Sherrod Brown represents the state of O
For more information: http://www.brown.senate.gov/
Sherrod Brown
U.S. Senator - Ohio
“We must pay closeattention to ensure thatour future energy needsare met by our own
workers.”
W ust gt it right’hale development means economic developmen
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hsapak enrgy mploys pitch
C
hesapeake Energy employeesare using hammers and saws
to help local organizationsart of Operation Blue, the com-’s volunteer campaign.
peration Blue is an opportunity
Chesapeake employees to give
to local communities,” said
ee Belden, community relations
dinator. “It is an annual sum-
volunteer campaign that allows
oyees four hours of company
to roll up their sleeves and get
ork. Our Ohio employees have
dy given hundreds of hours of munity-service time, and con-
to look for worthy projects to
h they can donate time in the future.”
n July 20, the employees traveled to The Wilderness Center
ilmot to remove brush, assist in removing an invasive bush
imberly Lewis
Communications
Photo / John McLaChesapeake Energy employees (from left) Jenn Klein, Stephen B
Matthew Mroczkowski and Steve Rybicki volunteered to buforms for the Seven Ranges Boy Scout Camp, near Kensing
July 10 as part of the company’s Operation Blue prContinued on pg. 27
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wn as autumn olive, and apply herbicide.
n July 10, volunteers built 27 4.5-x 9-foot wooden plat-
s for camper tents at the Seven Ranges Boy Scout Reser-
n, in Kensington, Carroll County.
e 27 volunteers cut a large amount of wood, assembled
orm kits, screwed the platform pieces together, stacked
latforms and moved them to a storage location. The Boy
t camp’s goal is to replace 5 to 10 percent of their 40-year-latforms each year.
st June, more than 30 employees volunteered more than
hours in Malvern to build a home as part of the Habitat
Humanity program. In December, employees provided 100
volunteer hours over two days to package more than
pounds of food at the Akron-Canton Regional Foodban
Toolpusher Tool•pusher noun
: The location supervisor for the drilling contracto
usually a senior, experienced individual who h
worked his way up through the ranks of the drilling cre
positions. His job is largely administrative, includin
ensuring the rig has sufficient materials, spare parts anskilled personnel.
esapeake” from pg. 26
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Gas & Oil August 2012 Edition - Dix Communications
ew technology, water treatmentwill help solve water usage issues
While each verticalhydraulic fractur-ing well replaces 32
traditional horizontal wells, as
far as production and efficien-cy are concerned, there is stillan issue related to how muchwater is used in the process, aswell as what to do with it af-terward.
On average, a single gas and
oil well can consume 5 to 8
million gallons of fresh water
that may never enter the fresh
water cycle again. New tech-
gy can help, especially with regard to the smaller oil and
ompanies that may not have the funds to build their ownr treatment plants, such as Chesapeake Energy Corpora-
hesapeake is building a reprocessing plant to clean up the
r it will use for its oil and gas production in this area of
, according to Michael Gruber, of Stark County Associa-
of Realtors, who gave a recent talk in Canton on Oil and
Fracking. Gruber also informed, according to Ohio law,
water used in the hydraulic fracturing process must be ei-
reprocessed or placed in a Class II injection well.
was found sewage treatment plants cannot remove the
s, which are mainly salt,” Gruber said. “In Pennsylvania,
there was a problem with fish kills, and while it took
while to figure it out, they eventually found it was from t
salt content in the water being shot back onto the surfac
the sewage treatment plants, so that process was outlaw
He also admitted that right now, Ohio is taking somefracking waste water from Pennsylavnia, since the in
wells here are the closest to be found.
Officials in the Alliance City Water Department rep
city’s waste water treatment plant cannot remove eno
the solids from the drilling waste water to be consider
resource. The city of Warren was granted a permit fr
Ohio EPA that would have allowed their waste water tre
facility to be utilized by the oil and gas industry, but t
permit was modified to specify it cannot be utilized f
type of waste water. A letter from the Ohio EPA to the ci
cated the state doesn’t want to “get into” having municiinvolved in reprocessing the waste water from the hy
fracturing well sites.
The good news is new technology has produced a
water treatment process that can be set up on each drilli
HTI Water Divisions stated it has found one of the bigg
portunities for the use of its proprietary forward osmosi
tion technology is in reclaiming drilling wastewater fr
exploration operations. The application of this techno
considered by some to save money and dramatically
energy consumption, while reclaiming or recycling mill
Laurie Huffman
Dix Communications
Continued on
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Dix Communications - Gas & Oil August 2012 Edition
• www.whitesidesofcambridge.com • e-mail: [email protected] • Visit Us On autotrader.com
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ering a Guernsey Co property just East of Cambridge with a lot of OW factor along with privacy & seclusion. As impressive as the clean &3,000 sq. ft. 2 story home is you may be even more dazzled with the
x72 horse barn with stalls & the 64’x120-riding arena built by Mortondings. The buildings are all in move-in condition. The land itself is
marily wooded with some timber potential along with fenced pasturesaddocks for horses or other livestock. From a corporate retreat to ancutive farm or a host of other uses this property has a lot of potentialthe discerning buyer. Take advantage of an offering in the heart of theca Shale Play . The farm will be offered in 5 parcels ranging from 5e to 40 acres with the Oil & Gas rights offered separately.al: Parcel #’s 020000557000, 020003442000, and020000553 in
mbridge Twp of Guernsey County. Taxes are $2332.43 per half ms: Home, barns and land sell Absolute with Oil & Gas rights sell-to owner’s confirmation. 10% nonrefundable down payment, balance
at closing in 30-45 days, no financing or inspection contingencies. Inding buyer is asserting that they will have the funds to close. 10%er’s premium will be added to highest bid price to determine final
contract price. Any required inspections must be completed prior ding. Property will be offered in parcels and combination all acrefrontage amounts are approximate & subject to final survey. All intion gathered from sources deemed accurate but is not guaranteeder must independently investigate and confirm any information sumptions on which any bid is based.
Tractor, Steiner & Equipment New Holland 3010 Tractor with 7309 Loader; New Holland 472 HaNew Holland Baler; New Holland manure spreader; New HillanHay rake; Kuhn GRS 25 N hay tedder; Stump grinder; shop toolsChattel Terms: Cash or good check with proper ID
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JASON L. MILLER, CAI AUCTIONEER740.541.7475 or [email protected]. ANTHONY KAUFMAN, CAI, BROKE
330.231.4211 or anthony@kaufmanrealty
Kaufman Auctions LLC888-852-4111
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Thursday, Aug. 16th @ 6:00 PM
3 Acres*Offered in 5 Parcels*3,000 Sq. Ft. Home* Riding Arena & Horse Barn*2.5 miles from I-77* Dead End Road* Morton Stall BaArena*Fenced Pasture*Riding Trails*Guernsey Co. *Cambridge Township*
Open for inspection Thursday Aug. 2nd from 5-7 PM.
Exceptional Home & Buildings on 103 AcresOil & Gas Rights (17 Acres un-leased)
Also selling Tractor- Steiner & Implements
cation: 10936 Inland Rd. Cambridge, OH. 43725 GPS Coordinates: 40.060485,-81.534863 Directions: From I-77 at Exit #47 follow O
st 2 miles to Inland Rd. then South ½ mile to farm.
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Checking Facts. Busting Myths
www.eidohio.org
A JOINT EFFORT OF OOGA | OOGEEP | IPAA
TOOLSOF THE TRADE
Cambridge34 North 11th Street
Cambridge, OHhone: 740 432-2712
Cadiz634 Lincoln Avenue
Cadiz, OHhone: 740 942-1223
Newcomerstown102 N. River Street
Newcomerstown, OH
hone: 740 498-8131
New Concord51 East Main Street
New Concord, OH
Phone: 740 826-4160
Berlin(Formerly Kandel’s Hdwe.)
German Village CenterBerlin, OH
Phone: 330-893-2812
Newark67 West Main St.
Newark, OHPhone: 345-7515
ormehardware.doitbest.com
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MAC Trailer continues strong sales
Business has been goingso well in the gas andoil industry in this re-
gion that it’s starting to showsigns of an inevitable slow-down.
Mike Conny, CEO of MACTrailer Manufacturing of Alli-
ance, doesn’t expect that lull to
continue. In fact, his company
has just received an order for
50 new tankers to haul crude
oil from well sites.
“The drilling is slowing
down because supply has out-
ed demand,” says Conny, “and the price of natural gas has
red.
We expect ups and downs in this business,” adds Conny,se company has experienced unprecedented growth in the
year with the gas and oil industry boom in Eastern Ohio.
u’re either on fire or out; it’s something we prepare for.
“We’re fortunate to still have our other products and
never once left our core business.”
MAC Trailer, under Conny’s leadership, has had the
to accurately forecast their customers’ needs and keep th
pany on the cutting edge of the industry.
“Of course, we’re very fortunate that much of the curr
and oil business is in our backyard right here in Ohio
Conny, “but we’re also shipping products to Alberta, C
North and South Dakota, and Texas.”
Conny says he is constantly in touch with industry lThe challenge, he says, is “to stay ahead of the curve.”
“We’re always looking at other potential products s
Rob Todor
Dix Communications
“You’re either on re orout; it’s something weprepare for.”
Continued on
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Dix Communications - Gas & Oil August 2012 Edition
s do pick up you are pre-
d.”
ked for one word to describe
outlook, Conny says, “Ex-
.”
he industry is going to con-
to be volatile,” he says,
over the next five years I
good fortune. We should seeral thousands of wells drilled
e state of Ohio, according
ur research. I’m told the hot
of the gas and oil industry in
ntire country is right here in
oll and Columbiana counties.
eally something.”
c Trailer” from pg. 30
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boom lds t cutin
While Carroll Countyleaders look forward tothe boom from the oil
and gas industries, they are con-ed about the bust that traditionally follows.
We all know that the boom will eventually go bust. It is
rative that we work on sustainable economic development
he county,” explained Carroll County Economic Develop-
Director Glenn Enslen.
We are working with two venture-capital funds to invest in
oll County, and we are working with Senator Lou Gentile’s
e on legislation that will provide substantial tax breaks for
who invest in venture-capital funds that in turn invest in
alachian Ohio,” he said.
embers of the Carroll County Chamber of Commerce are
itting idle as the boom lurks in
not-so-distant future. In May, the
mber formed the Futures Commit-with community leaders, govern-
officials and residents “to review
implement a positive course of
n that Carroll County needs for
ery near future and a long-range
ok.”
x members of the committee trav-
to Towanda, in Bradford County,
to meet with business and com-
ty leaders about what that area
xperienced since Marcellus Shaleoration began more than five years
The topics included the impacts
on counties, townships, roads, schools, crime and healt
as well as economic development, business, and tourism
Locally, Enslen said the county may face several issue
as housing and labor.
“We may have difficulty in providing housing for lo
moderate-income residents as the oil and gas industry eand utilizes available housing at inflated rates,” he said.
“We are working with a state group to do a compreh
study of housing in our area and determine what the b
tions may be. Do we need apartments, condos, or single
homes? When we have an idea which may be best, w
work with developers to deliver tax credits to make such
ect attractive for the developer,” Enslen said.
“We may face a labor shortage in the area as folks mig
jobs within the oil and gas ind
he continued. “We will soon b
ing a letter to all chamber masking if they would be intere
forming a co-op program with
cal school district to allow sen
work for half days in local b
and industry.”
Local and county officials,
as the Futures Committee, are l
at what other communities hav
rienced, the issues that need ad
today and what the county’s ne
for the future.
“When we have anidea which may bebest, we will work withdevelopers to deliver tax credits to make sucha project attractive for
the developer.”
imberly Lewis
Communications
CaU tion CaU tion CaU tion CaU tion CaU tion
Ca U t i o n
Ca U t i o n
Ca U t i o n
Ca U t i o n
Ca U t i o n
Ca U t io nCa U t io n
Ca U t io nCa U t io n
Ca U t io
C aU t i o n C aU t i o n
C aU t i o n C aU t i o n
C aU t i o
C aU t i o n C aU t i o n C aU t i o n C aU t i o n C aU t i o
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Dix Communications - Gas & Oil August 2012 Edition
“You can’t go wrong wit the WRIGHT fuel.”
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15 - 18 79th Annual Scio Fall Festival — Scio Museum18 Fish Fry & Movie — Atwood Lake Boats, East Marina
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25 Tractor Pull — Loudon Township VFD Kilgore
25 & 26 Great Trail Festival — Malvern
1 - 3 Atwood Labor Day Boat Show — Marina West
1 - 3 Great Trail Festival Final Weekend — Malvern
2 Car Show — Atwood Lake Boats Marina West
3 Pancake Breakfast — Malvern Methodist Church
8 Dancing on the Bridge — Malvern
15 Tractor Pull — Loudon Township VFD Kilgore
16 Lake Mohawk — Annual Fall Fest
Check our website for all fall events!
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igh schools, adult education respond tomerging industry with new curriculum
One of the biggest fears officials
at the state level have expressed in
regard to the oil and gas industry is
Ohio won’t have enough trained workers to fill the job op-
unities the tidal wave of drilling activities will bring.
response, Marlington High School has adopted an oil and
urriculum for its upper classes, and Alliance City Schools
fering oil-and-gas-specific training for adults in its career
er that will later be offered to high school students.
arlington High School, located in Marlboro Township, Al-
e, has added an Oil and Gas Technology Program for the
-13 academic year, and Lea Packey, assistant to Superin-
ent Joe Knoll, reports 18 students are signed up for the first
on. The district hired a former teacher at the school, Robert
ns to instruct the course, which is offered for juniors and se-
. This first session is also available as an accelerated course
eniors who will only have one year to complete the course.raining students in this growing industry will provide them
career opportunities close to home,” said Nick Evanich,
dinator for the Marlington program. The district’s new pro-
will work in partnership with gas and oil industry leaders
ovide necessary training to students, equipping them with
skills as basic exploration and production of the gas and oil
workplace safety, communication, and team work. Mar-
lington Local Schools has open enrollment, and anyon
ested in learning more about the course may contact Eva
330-823-1300, extension 4209.
Alliance City Schools is offering a new welding course
its adult education program that will coordinate with t
ular welding studies already offered there, and which
available to high school juniors and seniors during the 2
school year. Jan Raber, director of the Alliance Career
reported the new course will focus on aluminum weldi
will be instructed by Cory Heavner, a Mac Trailer Manu
ing staffer who also teaches welding techniques to new e
ees at the Alliance-based company.
“Aluminum welding was added to our welding progr
cause it is a popular area of work, not only for oil and g
for the railroad and other industries,” said Raber.
The regular welding course at ACC covers the major
of arc-welding, plasma arc cutting, oxy-acetylene, and MTIG welding, along with an opportunity to develop suc
welding and fabricating techniques. Both the regular
newly-added aluminum welding courses are 648 hour pr
with classes offered in the evening. Anyone interested in
ing more about the welding courses may contact the care
ter at 330-821-2102.
aurie Huffman
Communications
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“The quality
you want
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Agricultural
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ilfld workrs hlp clan up cmtry
The booming oil andgas industry coming totown,is providing more
than an economic boost to thecommunity, they also provid-ed relief assistance from theviolent storm that ravished thearea on June 29.
Among the towns that were
hit from the storm is Old Wash-
ington. The village was rav-
aged by the high winds that
toppled trees and left debris ev-
erywhere, including the village
cemetery. Residents had much
ean up and were without power for days.
t for every grey cloud, there is a silver lining, and this
m was no exception.e village received relief from each other and also from
us oil and gas companies that pitched in their workers and
rials to help.
hesapeake Energy and Great Plain Oilfield Rental saw not
an opportunity, but a necessity to help out their neighbors
d Washington after the storm caused damage to their vil-
eat Plain Oilfield Rental has 25 employees working out
field office in Old Washington. After the storm, GPOR
stant Field Manager Dan Cox contacted Old Washingtonncil President Ed Wagstaff to see where assistance was
ed.
s members of this community, we feel compelled to as-
said Cox. “Council wanted us to start with cleaning up
Old Washington cemetery.”
addition to his position in the oil and gas industry, Cox
so an infantry officer with the Ohio National Guard and
oordinated clean up efforts in Louisianna following hur-
es Ike and Gustav. He also assisted with clean up after
icane Katrina.
x coordinated more than 15 Great Plains Oilfield Rentaloyees and six volunteers from other service companies
ding, HB II Resources and Energy Worx for the clean up
effort in Old Washington.“Having been through natural disasters, I see the posi
pects of communities standing themselves back up,” sa
“From the time we saw this, it was just a matter of how
could react.”
The company assisted with the cemetery clean up fo
12 hours on the Tuesday following the storm and an add
six hours on Wednesday, July 4.
But the company didn’t just stop helping with clean
forts in Old Washington. They also recognized an oppo
to provide generator support to the Guernsey County
Citizens Center.The Center was in need of a power generator to cont
provide services to area seniors. Great Plains Oilfield
contacted vendor Grady Rentals in Pennsylvania to su
generator to the Senior Citizens Center.
Old Washington is a small village of about 270 res
While many were focused on their own neighborhood
ups, Chesapeake Energy and Great Plains Oilfield Ren
able to relieve some of the already overworked residents
Washington and give back to the community in which t
a part.
Holly Bilyeu
Dix Communications
“As members of this
community, we feel com-pelled to assist.”– Dan Cox, Great Plain
Oileld Rental
Submitted Chesapeake Energy and Great Plain Oilfield Rental ass
cleaning up the village cemetery in Old Wash
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1 0 0 3 9 1 0 9
ane State College receives unds to oer ree oil andas-related counseling to small business owners
Zane State College’s Small Business Development Cen-ter has received funds from the Ohio Department of De-velopment to provide business counseling and training
ed to the oil and gas industry.
ith the new funds, the Center has hired three new counsel-
o provide one-on-one technical assistance to small busi-
es across the state and are scheduling trainings to help
nesses do business with the oil and gas companies.
DC Director Cindy Voorhies, who was recently rec-
zed by the Ohio Department of Development as the top
l Business Development Director in the state because of
ommitment to small businesses, said the Center was cho-
o receive the funds in part because of Zane State College’s
nsive experience in oil and gas training.
hese funds represent an exciting opportunity for small
nesses in Ohio to take advantage of the emerging opportu-
s in the shale industry,” said Voorhies. “Our counselors can
ide the expertise these business owners need to help them
or grow a business and create new jobs.”
e SBDC provides support services free, to clients who
oy up to 500 employees and who are trying to expand
art their businesses. Under Voorhies’ direction, the Zane
College SBDC counseled 413 small businesses in 2011,
including 35 new businesses. Those businesses, in turn,
93 jobs in southeast Ohio.
Funds for this new training and counseling are ex
to last into early fall. Available training includes such
as Master Service Agreement, Loan Procurement, Fi
Analysis, Shale Impact Information, Ohio Safety R
ments and Strategies for Business Growth.
Business owners interested in exploring these train
portunities are encouraged to contact the Small Busine
velopment Center at (740) 432-6568, ext. 1331.
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fact, shale gas development has been so successful that
e is currently a huge surplus of natural gas, depressing
es to the lowest levels in decades. Low prices are great for
umers, but they don’t cover the high cost of shale gas well
lopment. As a result, drilling for dry gas has slowed to a
l so far in 2012. Nevertheless, as prices eventually reach a
onable balance with the cost of production, shale gas drill-
will pick up again, and this vast resource can provide an
omic source of energy for the country into the next cen-
s natural gas prices fell, drillers began shifting more of
rigs to plays that had valuable liquids-rich gas and oil.
alled gas liquids (ethane, propane and butane) and oil re-
n at comparatively higher prices than dry natural gas, al-
gh increased domestic production has reduced prices for
e commodities as well. Some of the major shale plays, that
originally thought of only as natural gas plays, are turn-
out to be significant oil producers. The largest “drillable”
oil producing shale play is the Bakken Shale formation,
ted in North Dakota, Montana and the Canadian province
askatchewan. In addition to the Bakken formation, there is
n the Barnett Shale and the Eagle Ford Shale that stretches
ss south Texas.
ow, oil from shale is the most significant new develop-
t in the U.S. energy picture. New research is showing that
es such as the Bakken and Eagle Ford shale may supply
billions of barrels of domestically produced oil over th
to come, plus large amounts of associated natural gas
2008 to 2010, oil production grew faster in the U.S.
any other country, and the growth has continued. U.S.
duction increased by about 500,000 barrels per day i
and by 700,000 barrels per day in 2011, reducing the co
dependence on imported oil by almost 7 percent in the
years. Production rates continue to increase from Bakk
Eagle Ford as drilling intensifies even more in 2012; an
producers are hoping for similar success in the oil rich of the Utica Shale and other plays.
nanza” from pg. 10
barrels of fresh water normally transported long distan
jected into deep disposal wells and forever lost from th
water cycle.
Most of the source water used in the drilling activities
from surface waters or municipal supplies. “It can take 1
million gallons of water to frack a well,” said Gruber. “
peake is building a huge holding pond in Carrollton rig
and they’re buying water as they can and filling it, mman-made lake, so they’ll have the water when they n
Gruber also said water is used in all phases of oil and g
duction, including exploration, stimulation and product
As of mid-July, Ohio had issued 124 Utica shale p
with 21 wells being drilled now, 35 already drilled, 1
pleted (meaning the hydraulic fracturing is done), an
production.
“Water Technology” from pg. 28
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nsid CoNSoL enrgy
Pennsylvania-based ConsolEnergy, founded in 1860,one of the leading coal and
natural gas producers in the coun-mploys more than 9,000 men and women in 23 states andrio, Canada. Two of them recently agreed to an interviewt their jobs in the oil and gas industry.ere are definite similarities between the two: Both share
ame surname, although they are not related; and both are
uates of Marietta College, a liberal arts private college in
ric Marietta, Ohio. They differ because one of the men is
beginning his career as a petroleum geologist, while the
r is a veteran who grew up with oil and gas in his veins.
Adam Smith and Kevin Smith help support Consol En-
operations in the Utica acreage in Ohio.
vin Smith
vin Smith, 55, senior production engineer for Consol En-
graduated from Marietta College, Class of 1981 and is theh generation in his family’s oil and gas business.
grew up in working for my father’s drilling company in
sylvania. We can pretty much trace our oil and gas roots
to the Drake well where my distant relative, Billy Smith,
ed tools for the well,” said Kevin. “My father was the big-
influence on my decision to choose a career in the oil and
ndustry. I grew up watching with pride how he was able to
out with similar beginnings on the old standard rigs, and
d with that knowledge to form a very successful drilling
producing company.”
vin said his career started out in the field very “handssuch as a roustabout (an oil field worker employed for
orary or unskilled jobs) where he learned how wells were
ed and completed. As
troleum engineer, he
worked in a variety of
ranging from drilling
ompletions, produc-
reservoir engineer-
nd land issues.
rrently, he focuses
hallow oil and gasuction in southwest
sylvania.
also fill in as the
guy consultant’ as I
40 years of experi-
Previously I spent
ears in Ohio drilling
ughout the state and
was vice president at Oxford Oil Co., one of the larg
vately-owned oil companies in Ohio,” he said.
“I love my job. I am very much a hands-on-type enI love working outdoors and dealing with landowners
be stressful at times and frustrating dealing with misin
people in regards to what we do and how we strive to do
safely and with complete environmental responsibility.
“For job seekers, there are many different types of job
energy company like Consol. There are lots of challen
the beginning the hours can be long and at times stress
the rewards are great, and the stability of the energy in
shows there will be a demand for what we provide fo
more generations.
“My advice to anyone who desires a career in this pro
is to be willing to get out there in the middle of an ope
and not be afraid to dedicate some hands-on time to und
what you are doing,” said Kevin.
Adam Smith
Adam Smith, 26, a petroleum geologist for Consol E
graduated from Marietta College in 2009 with a Bach
Science in Geology, and a minor in Petroleum Engineer
Adam is originally from Roseville in Muskingum C
He said he is planning on returning to school to earn a
of Science in Geology.
“I really enjoy the business aspect as much as the te
part of the job, so I also have been considering getting m
die Perkowski
Communications
Submitted Pictured l to r, CONOL Energy employees, senio
duction engineer Kevin Smith, and petroleum gist Adam Smith, discuss operational plans. In CONSOL Energy, the leading diversified fuel produthe Appalachian Basin, formed a strategic partnershHess Corporation to explore and develop oil, liquigas on 200,000 acres of Utica Shale in Ohio. Consorent drilling schedule will include operations in TuscaNoble, Portage, Mahoning and Trumbull counties eastern region of the state.
Submitted PhotoSOL Energy employees Kevin Smith, l, and Adam
h, are looking at the shale rock that was drilled fromell near Waynesburg, Pa. Kevin is a senior productionneer, Adam is a petroleum geologist. Continued on
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Dix Communications - Gas & Oil August 2012 Edition
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Gas & Oil August 2012 Edition - Dix Communications
1. Carroll County 101
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The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.
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