P.O. Box 535, Granville, Ohio 43023-0535 Phone: 740-587-0444 – Fax: 740-587-0446 Visit us online at www.ooga.org Return Service Requested Ohio Oil and Gas Association WATER TRUCKS Specifications for use in ohio Call 1-866-332-3172 for more information Allstate Peterbilt of Cleveland 8650 Brookpark Road Brooklyn, OH SERVICE HOURS: M-F: 7:30 am - Midnight Allstate Peterbilt of New Philapelphia 327 Stone Creek Rd. NW New Philadelphia, OH SERVICE HOURS: M-F: 7:30 am - 8:00 pm Allstate Peterbilt /Ford of Youngstown 3680 LeHarps Road Youngstown, OH SERVICE HOURS: M-F: 7:00 am - Midnight 16 Midwest Locations to Serve You www.allstatepeterbilt.com YOUR OIL FIELD TRUCK HEADQUARTERS 2013 PETERBILT 367
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your oil field TruCK HeAdQuArTerS · dispose of 100,000 gallons per day with a Total Dissolved Solids (TDS) concentration of 50,000 parts per million (ppm). The first question is
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P.O. Box 535, Granville, Ohio 43023-0535Phone: 740-587-0444 – Fax: 740-587-0446 Visit us online at www.ooga.org
Return Service Requested
Ohio Oil and Gas Association
WATER TRUCKS
Specificationsfor use in
ohio
Call 1-866-332-3172 for more information
Allstate Peterbilt of Cleveland8650 Brookpark Road Brooklyn, OH
SERVICE HOURS: M-F: 7:30 am - Midnight
Allstate Peterbilt of New Philapelphia327 Stone Creek Rd. NW New Philadelphia, OH
SERVICE HOURS: M-F: 7:30 am - 8:00 pm
Allstate Peterbilt /Ford of Youngstown3680 LeHarps Road Youngstown, OH
SERVICE HOURS: M-F: 7:00 am - Midnight16 Midwest Locations to Serve You
www.allstatepeterbilt.com
your oil fieldTruCK HeAdQuArTerS
2013 PETERBILT 367
The recent legal battle between Patriot Water and the Ohio Environmental Protection
Agency (Ohio EPA) has resulted in an appeal decision that strengthens the Ohio Department of Natural Resources (ODNR) “sole and exclusive” authority under Ohio Revised Code Section 1509.02.
Under the Strickland administration in 2010, Patriot Water (Patriot) was granted a permit to install (PTI) by the Ohio EPA to treat brine stemming from oil and gas operations. The Patriot facility, located near the city of Warren in Trumbull County, then sent the treated water to the Warren Wastewater Treatment Plant (WWTP) for final disposal into the Mahoning River. To do this, the treatment plant needed to modify their National Pollutant Discharge Elimination System (NPDES) permit to accept the treated water from Patriot.
Two questions were at issue regarding the initial NPDES permit. First, did Ohio EPA (via the NPDES permitting program) or ODNR (via Ohio Revised Code Section 1509.22 on brine disposal) regulate this activity? Secondly, does Patriot’s activity impact water quality?
On the second question, Patriot voluntarily agreed to do a pilot study on water quality and toxicity. The study would determine how much brine would begin to cause the death of certain indicator species in the river. The study found that Patriot could safely discharge 664,000 gallons of brine per day. This was based upon the mortality rate of water fleas that was determined based on the study. Ohio EPA, however, modified the findings as the study
did not observe “chronic mortality rates” and only permitted Patriot to dispose of 100,000 gallons per day with a Total Dissolved Solids (TDS) concentration of 50,000 parts per million (ppm).
The first question is the heart of the legal battle between Patriot and Ohio EPA. In 2012, Ohio EPA issued a new NPDES permit to WWTP. In it, a new section was added prohibiting the plant from accepting brine from oil and gas operations “unless and until it is approved by the Chief of the Division of Oil and Gas Resources Management”. This language was added because Ohio EPA believed the previous permit violated Ohio Revised Code (ORC) Section 1509.22, noting that ODNR has the authority to regulate the disposal of brine. Additionally, according to Ohio EPA, since Patriot’s facility was not using “new technology” as describe within, Patriot could not dispose of water until its technology was approved by the ODNR.
Both Patriot and WWTP filed appeals to ERAC on this change to their previously accepted permit. Their appeal was centered around whether Ohio EPA Director Scott Nally had the authority to bar brine disposal under his regulatory authority and not ODNR’s regulatory authority.
On July 3rd, a decision by the Environmental Review Appeals Commission (ERAC) was made that could allow the Patriot Water Treatment Plant to continue to operate. ERAC determined that a section of the 2012 NPDES permit barred WWTP from accepting brine and must be struck. The decision stated Ohio EPA only has authority under Chapter 6111, not 1509.22. In their decision, they note that language regarding ODNR’s “sole and exclusive” regulatory authority (as changed
Legal Action Update
Recent Decision on Patriot Water Strengthens ODNR’s “Sole and Exclusive” AuthorityBy: Brian Hickman
BulletinOhio Oil and Gas Association
Volume 62, Number 5, July/August 2012
Visit us online at www.ooga.org
Senate Bill 315 Provisions Become Law on Sept. 10 - page 9
Please see page 6
“(T)he bill acknowledges the well-established rule that one administrative agency may not, unless otherwise provided for by statute, enforce the rules and regulations of another,” noted the ERAC opinion.
Page 2 July/August 2012Ohio Oil & Gas Association Bulletin – www.ooga.org
The wildfires were raging June 27-29, 2012 in Colorado Springs while The Independent Petroleum Association
of America’s (IPAA) mid-year meeting took place. In a safety update letter to IPAA members on the organization’s website, Barry Russell, President and CEO of IPAA told members that the U.S. Forest Service had confirmed 450 firefighters, three heavy air tankers, four Single Engine Air Tankers, one lead plane and two helicopters were tackling the blaze and that more people would be arriving the following day to help. A Type 1 National Team, described as the Navy Seals of firefighting, had arrived in Colorado Springs, according to the U.S. Forest Service, and the team had taken command. The IPAA donated money to the fire fighters and others who had come in from all over the United States to assist. It was obvious that the fires were more than the locals could handle on their own and that they needed the assistance of a larger
President’s Comments
Jerry James OOGA President
national group to protect their livelihood; and an impressive group of fighters had come together to help them do just that. Like the residents of the Colorado Springs area, our industry too is fighting our own fire of sorts. It is a fire of regulations that is being fraught upon us by government. When it comes to the number of regulatory and tax proposals being made across the producing states and on a national level, it is clear that we need all the help we can get. Like those fighting the Colorado fires, oil and gas producers, organizations, investors, corporations, etc. from all over the country need to work together to fight these regulations.
Many of our members belong to several good trade associa-tions and for good reasons. For example, members of the Ohio Oil and Gas Association belong to IPAA because we need national representation as well as the opportunity to network with other state oil and gas associations to address the onslaught of government regulatory and tax propos-als. Hydraulic fracturing, for instance, has been reviled in the press even though it has long been regulated at the state level and has been proven safe in over 1,000,000 treatments! As a result, the federal government is now looking to see how they can regulate. Over a dozen agencies of the federal government alone are looking at regulatory issues for our industry. In McDermott, Will and Emery’s Energy Business Law blog of April 30, 2012, Brandon H. Barnes and James A. Pardo posted the following regarding the federal gov-ernment’s attempt to issue unnecessary regulations on our industry:
“President Obama’s position that hydraulic fracturing must be conducted in a “safe and responsible” manner has been inter-preted as suggesting the need for increased federal regulation of fracing. Indeed, various federal agencies have stepped forward with proposed regulations targeting air emissions, chemical
Please see page 17
July/August 2012 Page 3Ohio Oil & Gas Association Bulletin – www.ooga.org
Page 4 July/August 2012Ohio Oil & Gas Association Bulletin – www.ooga.org
Ohio Department of Natural Resources
ODNR Crafts New Drilling Permit RequirementsBy: Brian Hickman
Stemming from recent changes to the Ohio Administrative Code (OAC) and the Ohio Revised
Code (ORC), the Ohio Department of Natural Resources Division of Oil and Gas Resources Management (DOGRM) has revised their drilling permit application.
According to the ODNR’s website, the permit changes were need to comply with recently enacted administrative rules pertaining to well construction, which become effective on August 1st. Changes were also needed in light of the September 10th effective date of provisions included in Senate Bill 315, which was enacted this June.
Changes to the permit will now require a producer to:
- Provide DOGRM with a detailed casing and cementing plan
- Indicate which formations will be tested, produced, and hydraulically fractured
- Identify the water sources utilized in the completion operation
- Submit a copy of the Road Use and Maintenance Agreement (RUMA) or “best efforts” affidavit if no RUMA was agreed to (for horizontal wells only)
DOGRM has informed to the Association that they will be sending out the above forms to any operator that has received a drilling permit in the last year and anyone applying for a new permit.
To view DOGRM’s new permitting forms on their webpage, go to: http://www.ohiodnr.com/mineral/forms/tabid/10372/Default.aspx
OOGA Staff ContactsThomas E. StewartExecutive Vice President [email protected]
Brian HickmanGovernment Affairs Manager Communications Director [email protected]
July/August 2012 Page 5Ohio Oil & Gas Association Bulletin – www.ooga.org
Governor’s Executive Order
Gov. Kasich Bans Oil, Gas Exploration Within and Under Lake ErieBy: Brian Hickman
On July 10th, Governor John Kasich signed Executive Order 2012-10K which banned the Ohio Department of Natural Resources (ODNR) from entering into
a lease or permit for the extraction of oil or natural gas from or under the bed of Lake Erie. The ban, which was issued during an Ohio Fish Day in Port Clinton, will expire on the last day of service by Governor Kasich.
In the order, Kasich cited his reason for reinstituting a ban on Lake Erie production. Specifically, he mentioned the need to provide certainty for the area’s economy and environment.
“(I)t is important for the continued environmental protection and economic development of the Lake Erie region that the State bring certainty to the question of whether the Director of Natural Resources will permit oil and gas drilling from and under the bed of Lake Erie, if the current congressional ban on drilling in or under the Great Lakes should be lifted,” noted Kasich in the order.
Kasich spokesman Rob Nichols noted the importance of the “in or under” language of the Executive Order. This distinction would prevent the ODNR from issuing horizontal drilling permits from shore to extract oil or natural gas from the lakebed.
The original ban on Lake Erie exploration was created by Governor Bob Taft during his two terms as Ohio governor, ending when Taft left office in 2007. Congress had previously banned Lake Erie production even before Governor Taft’s executive order.
The ban, which was has a long history of advocacy by environmental interest, received a measured level of support from environmentalists and a state legislator. The Ohio Environmental Council praised the move, stating that the order carries legal significance should the federal ban be removed by Congress.
Another environmental group took the ban as a first step to protect Ohio from drilling. “Today, Governor Kasich stepped forward to protect Lake Erie from the perils of gas drilling,” stated Julian Boggs, advocate for Environment Ohio. “Now we need a moratorium on fracking to protect the rest of Ohio.”
Finally, State Representative Nickie Antonio (D-Lakewood) applauded the Governor’s order, but stated more needed to be done. “While I applaud Gov. Kasich for issuing this executive order which bans drilling in Lake Erie, Ohio needs a long-term solution,” said Rep. Antonio in a statement. She went on to note that legislation she introduced this General Assembly – House Bill 304 that would permanently ban oil and natural gas production via Ohio law – should be passed and enacted.
While both the state and federal government has now placed different bans on oil and gas production in and under Lake Erie, it should also be noted that oil and gas production from Lake Erie continues to take place. Canada has been drilling up to the international boundary of Lake Erie since the 1960’s and has been enjoying the benefits of expanded oil and natural gas production since then.
Officers*Jerry James, -President, Marietta*Joel Rudicil - Vice President, Richfield*David R. Hill - Secretary/Treasurer, Byesville*Thomas E. Stewart - Executive Vice President, Granville
TrusteesAdrian Acevedo, The Woodlands, TX*W. Jonathan Airey, Columbus*James S. Aslanides, CoshoctonDow Bowman, SugargroveThomas Booth, Massillon Brent Breon, North CantonClinton W. Cameron, ZanesvilleBenjamin W. Cart, PolandBrian Coblentz, MillersburgMark Conway, WoosterTodd Dever, CambridgeSteven Downey, Charleston, WVBarry Ferguson, ColumbusFrank W. Gonzalez, CantonJames R. Halloran, Chagrin FallsCarl Heinrich, RenoWilliam Hlavin, Akron*Mark D. Jordan, New AlbanyTony Kovacevich, North Canton*Bruce A. Levengood, DoverMark S. Lytle, WoosterGreg Mason, CoshoctonTimothy McNutt, North Canton*Jack K. Miller, WoosterJohn W. Miller, CantonJeff Moore, StowGregory New, BeloitRichard C. Poling, SomersetDan Pottmeyer, ZanesvilleScott Rotruck, Oklahoma City, OKD. Eric Smith, WinesburgMark A. Sparr, WoosterRalph W. Talmage, ColumbusBenjamin H. Thomas, MariettaSarah J. Tipka, DoverHoward J. Wenger, Dalton
Honorary TrusteesLeo Altier, CorningJeffrey J.A. Baker, Westerville William Bennett, WoosterR. Gene Brasel, MiddleportCharles E. Call, StowJames H. Cameron, Zanesville*Steven L. Grose, HartvilleAlan W. Jones, Mt. GileadJerry D. Jordan, ColumbusKirk A. Jordan, Sarasota, FL*William G. Kinney, TwinsburgEdgar W. McCauley, NewarkJames C. Morgan, II, The Villages, FLJerry C. Olds, WorthingtonGraham R. Robb, ZanesvilleR. J. Schwarz, ColumbusBerman J. Shafer, Palm Beach Gardens, FLGuy F. Sitler, Jr., NewarkJames R. Smail, WoosterE. A. Smith, Naples, FLJ. W. Straker, ZanesvilleJohn W. Straker, Jr., ZanesvilleJohn C. Wright, Sistersville, WV
* Executive Committee
Ohio Oil & Gas Association
2012 Board of Trustees
Page 6 July/August 2012Ohio Oil & Gas Association Bulletin – www.ooga.org
in Senate Bill 315) clearly states that one regulatory agency may not act on behalf of another.
“(T)he bill acknowledges the well-established rule that one administrative agency may not, unless otherwise provided for by statute, enforce the rules and regulations of another,” noted the ERAC opinion.
They also found that ORC 1509.22 is controlling for oil and gas produced brine throughout Ohio. EPA lacks any authority in Chapter 6111 for produced brine.
With this decision in hand, Patriot prepared to get their facility back online. However, in media reports after the decision, ODNR stated that they would not grant approval
to Patriot to dispose of brine via the WWTP. This was due to the belief that disposal of brine may only happen three ways under Ohio law: deep underground injection, use as a road salt, or obtaining a permit for new technology to dispose of brine in a new way. ODNR feels that Patriot’s facility does not currently fall under this “new technology” provision and appears unlikely to issue Patriot the needed approval for new technology.
The oil and gas industry should note that the process has produced a clear line outlining the sole and exclusive regulatory authority of ODNR.
Recent Decision on Patriot Water Strengthens ODNR’s “Sole and Exclusive Authority”(cont. from p. 1)
July/August 2012 Page 7Ohio Oil & Gas Association Bulletin – www.ooga.org
Dispelling the Myths
How Oil and Gas is Regulated Under the Safe Drinking Water ActBy: Brian Hickman
We tend to hear it all the time now from environmentalists, the media, and others on how
the oil and gas industry is not regulated under any federal law. Those against oil and gas exploration use this as an instrument to advocate for stronger regulations – at the local, state or federal levels – because of this lack of federal oversight.
We all know that this couldn’t be further from the truth and that the industry has a long history of federal oversight into the drilling and production processes. But, how do you explain that to a group of people, a reporter, or anyone else in a clear and simple way? Hopefully, these articles will help you do just that. First, we will take a look at the Safe Drinking Water Act (SDWA)
The SDWA is the lynchpin of water regulations to ensure that Americans have a safe system for drinking water. Originally, this bill was passed by Congress in 1974 (when both chambers had a Democrat majority) in an effort to regulate the nation’s public drinking water supply and to protect the public health. The focus of the bill was primarily on the treatment of drinking water, not its supplies. The law was amended in both 1986 and 1996 to further protect drinking water, but generally to protect supplies of drinking water (for example rivers, lakes, streams, springs and ground water wells).
The SDWA authorizes the U.S. Environmental Protection Agency (U.S. EPA) to set national standards to protect drinking water supplies from both potentially naturally-occurring and man-made contaminants. This authority includes the underground injection control (UIC) program,
which regulates the construction, operation, and permitting of injection wells for underground storage or disposal. The UIC program classifies injection wells into six classes: geologic sequestration wells (Class VI), shallow non-hazardous injection wells (Class V), shallow hazardous and radioactive injection wells (Class IV), mining wells (Class III), oil and gas wells (Class II) and industrial and municipal waste disposal wells (Class I).
It is the Class II disposal wells that are the focus of federal oil and gas regulation under the SDWA. As part of the SDWA, states may request primacy (or first in authority) over the federal UIC program if under one of two key criteria.
First, state UIC programs must meet minimum federal standards. These include regulations on the construction, operation, monitoring and testing, reporting, and closure of injection wells. All standards must be met by an operator or owner of an injection well. Secondly, states must show the U.S. EPA that their standards are effective in preventing the endangerment of underground sources of drinking water (USDW’s).
If one of these criteria is met, then a state may be given primacy over the UIC program at the discretion of the U.S. EPA. Should a program in the eyes of the U.S. EPA fail to meet one of these standards, the U.S. EPA may withdraw primacy and assert their regulatory authority over the program.
With over 144,000 Class II wells injecting over 2 billion gallons of brine and other fluids to enhance well production each day across the United States, you can see why there is
Please see page 11
Page 8 July/August 2012Ohio Oil & Gas Association Bulletin – www.ooga.org
UIC Rules
New Rules on UIC Program Now Effective Due to Emergency Executive OrderBy: Brian Hickman
On July 10th, Governor John Kasich signed an executive order making the recently proposed underground
injection control (UIC) program rules package effective regulation for the next 90 days. The Ohio Department of Natural Resources (ODNR) submitted this rules package to the Common Sense Initative (CSI) office on June 7th to begin the formal process of adopting these rules.
The Governor was permitted to implement these rules via executive order because the ODNR had informed him that an emergency exists. Under Ohio law, the Governor may make any administrative rules effective if an emergency exists. To do so, the ODNR had to inform the Governor in writing that an emergency exists that warrants immediate executive action.
As a whole, the rules package makes minor changes to the program (due to a mandatory 5-year review) and implements additional recommendations stemming for the recent Northstar #1 report. The new rules would amend Ohio Administrative Code Sections 1501:9-3-06 (permitting) and 1501:9-3-07 (operating, monitoring and reporting).
In regards to permitting, additional testing and monitoring requirements are being requested. First, at the discretion of the Chief, injection well operators may be required to perform any of the following tests or evaluations: pressure fall-off test, geological investigations pertaining to potential faulting near an injection well (including seismic surveys), monitoring plan for seismic activity, testing and recording of the original bottomhole injection interval pressure, gamma ray, compensated density-neutron and resistivity geophysical logging suite, radioactive tracer or spinner survey, or any other test deemed necessary by the Chief.
If these tests are required by the Chief, then no fluid shall be injected into the well until the Chief has evaluated the test results. The Chief may withhold his authority to inject fluids
based upon the test results and may order the plugging of the well if it is deemed necessary.
The final substantive change to OAC 1501:9-3-06 deals with extending the period of review for an injection well permit. The change would extend the current five day review period by ten additional days to fifteen days. The permit also extends the public legal notice provided to the general public for at least five consecutive days.
OAC 1501:9-3-07 involves changes to the operating, monitoring, and reporting of operational and proposed injection wells. For injection wells that were permitted prior to the effective date of the rule, an automatic shut-off device will be required to be installed. This is done in case the maximum allowable surface pressure is exceeded. For wells permitted after the effective date of the rule, they will be required to have a device that continuously monitors the well. This monitoring information may be reviewed by ODNR at any time and the Chief may require this information to be submitted to ODNR. Injection wells operating before the effective date of the rule will be required to report monitoring results annually to the ODNR.
As stated above, the proposed rules package will be effective for 90 days after the executive order was signed (October 11, 2012). However, these rules have been introduced to the Joint Committee on Agency Rule Review (JCARR) and their formal vetting process will begin. Barring anything unforeseen, it is believed that the rules package would be approved by JCARR before the executive order terminates.
To review the proposed rules, along with the CSI report on the rules from ODNR, log on to the “UIC Rules” page of the ODNR website, located at: http://www.ohiodnr.com/tabid/24038/Default.aspx.
www.theenergycoop.com
Committed to providing safe, reliable energy.• National Gas &
125 State Route 43 5012 W. Washington St. Hartville, OH 44632 Charleston, WV 25313 330-587-1230 304-776-7740
July/August 2012 Page 9Ohio Oil & Gas Association Bulletin – www.ooga.org
On September 10, 2012, all relevant provisions of Substitute Senate Bill 315 (SB 315) will become law. SB 315 impacts all Ohio oil and gas producers, as different portions of the bill impact “horizontal wells” and also vertical wells.
Some major provisions in SB 315 will change the way that producers operate in the state of Ohio. Below are a few of the major provisions of SB 315 that impact Ohio oil and gas producers.
SB 315 requires the disclosure of all chemicals intentionally added during the drilling process until the surface casing is set (including the chemical abstract services (CAS) number) on all wells. (The bill was amended to exclude chemicals deemed a trade secret by an operator or service company.) An invoice for all chemicals used on the well site must be maintained by the operator for 2 years and made available to the Chief upon request. A producer is in substantial compliance with these reporting provisions if a minor variation is found due to an inaccurate or incomplete report from a supplier.
After the initial completion, operators must again make all chemical disclosure if the well is refraced or newly completed.
Operators must provide chemical information, including those deemed a trade secret, to a medical professional in the event that an incident happens on the well site and an injury due to a chemical compound occurs.
“Material and Substantial Violation” now includes the failure to submit a “report, test result, fee or document” that is required under Ohio oil and gas law. (ODNR will provide notice and a 30 day cure period to those who have failed to file before a MSV is issued.)
SB 315 allows ODNR to enter into “cooperative agreements” with other state agencies. OOGA was successful in amending this language to clarify that such agreements “shall not be construed to dilute or diminish the division’s sole and exclusive authority as established in this section”.
The bill requires that a producer file a Road Use and Maintenance Agreement (RUMA) or check the appropriate box on an oil and gas permit pertaining to a RUMA. The producer can then state that they do have a RUMA in place and submit an affidavit to ODNR stating they negotiated in “good faith” but could not reach such an agreement.
A horizontal well is now defined in Ohio law as a well that is drilled to the Point Pleasant, Utica, or Marcellus Shale formations and is stimulated.
A well pad is now defined as the area needed for one or more horizontal wells.
Water wells within 300 feet of a wellhead in an urbanized area and 1,500 feet of a horizontal wellhead should be tested. If a producer is denied access to such a water well by a landowner, then the producer reports the denial to the Division.
Reporting of all water (including sources and amounts) anticipated to be used on a well must be done to ODNR.
Insurance coverage on horizontal wells was increased to $5 million (bodily injury and property damage) from agents licensed or operating in the State of Ohio.
A new fee for unitization applications of $10,000 for an application submitted under Ohio Revised Code Section 1509.28.
Finally, and most robuling to the Association, “per day” violations on oil and gas operators (both for civil and criminal violations) were created under the law. (This currently includes even minor violations.)
For more information on how SB 315 will impact your company, log on to our website and view the full version of Senate Bill 315 provisions. Log on to: http://ooga.org/issues-advocacy/archive/substitute-senate-bill-315/ for more information.
Senate Bill 315
Senate Bill 315 Provisions Become Law on Sept. 10By: Brian Hickman
Page 10 July/August 2012Ohio Oil & Gas Association Bulletin – www.ooga.org
IPAA
IPAA Partners with RegScan to Create Environmental Compliance SystemBy: Brian Hickman
RegScan, a compliance mangement service provider, has partnered with the Independent Petroleum Association
of America (IPAA) to create the IPAA Environmental Compliance System. The system provides its users with realtime access to state and federal regulations.
As you know, the oil and gas industry has seen some rapid expansion due to recent shale activity. As a result of this activity, new federal and state regulations have been placed upon the industry. To insure that those within the industry have the necessary information, RegScan combined their technological expertise with IPAA’s industry expertise to create the IPAA Environmental Compliance System.
According to the System’s website, “users of the IPAA Environmental Compliance System have instant online access to state and federal regulations and statutes, essentially in real time. The comprehensive guide contains all the regulatory requirements — fully integrated with permit applications, guidance documents, AND audit checklists — all of which can be accessed through the patent-pending Socrates project management platform. Updates are seamless and automatic, so the most current information is always available.”
The program currently includes suites for 11 jurisdictions, including Ohio.
For more information, log on to: http://ipaa.regscan.com/
Producers of Crude Oil and Natural Gas in 31 Counties of Ohio
2012 OOGA Holiday Reception December 18, 2012
Cherry Valley Lodge, Newark, OH
July/August 2012 Page 11Ohio Oil & Gas Association Bulletin – www.ooga.org
a need for the federal government to delegate the authority to the states. State UIC programs must follow the federal standards for regulation, but are allowed to go above and beyond these standards to protect their distinct native geologic conditions.
In 1983, Ohio requested and received primacy from the U.S. EPA. Since that time, the U.S. EPA has determined that the Ohio UIC program has met or exceeded these guidelines as described above.
Again, delegation is a far cry from zero regulation as our opponents would say. The next time someone tells you that your industry is not regulated under federal law, tell them that the federal SDWA sets federal UIC standards and that the state of Ohio (because of primacy) has gone above and beyond these standards.
In the next OOGA Bulletin, we will discuss how the industry is regulated under the federal Clean Water Act.
How Oil and Gas is Regulated Under the Safe Drinking Water Act (cont. from p. 7)
Page 12 July/August 2012Ohio Oil & Gas Association Bulletin – www.ooga.org
Utica Shale
Ohio Map of Utica Shale ActivityProvided By: MacKenzie Land & Exploration Ltd.
July/August 2012 Page 13Ohio Oil & Gas Association Bulletin – www.ooga.org
Unites States Environmental Protection Agency
U.S. EPA Trying to Expand Enforcement Powers to Inspect Fracing at Well SitesBy: Brian Hickman
Recent reports claim that the U.S. Environmental Protection Agency (EPA) is exploring the use of new
statutory authorities to conduct multimedia inspections of hydraulic fracturing operations on well sites. EPA is exploring the so-called “general duty” provisions contained in the Clean Air Act (CAA) and the Spill Prevention Control and Countermeasures (SPCC) and other measures to prevent oil spills under the Clean Water Act (CWA) to conduct these on-site inspections. These actions confirm previous statements that the U.S. EPA will use all existing authority to oversee hydraulic fracturing.
This stems from recent U.S. EPA actions in Texas, Pennsylvania, and West Virginia. In May, EPA Region III (Texas) sent Range Resources a letter requesting information concerning inspections under the CAA’s general duty clause and the CWA’s SPCC rules. Reportedly, U.S. EPA did a sweep of Marcellus Shale wellsites using this similar authority.
U.S. EPA claims in the letter that the “general duty” clause of the CAA imposes responsibility on operators at facilities that house hazardous substances to take proactive steps to prevent accidental releases and minimize the potential damage. The provision provides U.S. EPA with the “purpose and general duty” to prevent these releases and minimize their impacts. The letter also claims that, under SPCC provisions, U.S. EPA feels that if a facility could reasonably be expected to discharge oil into or on navigable waters and exceeds certain storage requirements (1,320 gallons above ground, 42,000 gallons below ground) is subject to SPCC regulations.
The “general duty” authority has rarely been applied to oil and gas sites. This is chiefly due to oil and gas wellsites not being permanent “brick and mortar facilities”. Also, the “general duty” authority is usually used by the U.S. EPA to show liability. It is believed that this provisions is being legitimized due to the fact that hydraulic fracturing operations “clearly have the potential for air releases”, as one
source described it. The source went on to note that applying SPCC rules to hydraulic fracturing operations might be more difficult, as most releases during the process are intentional and not “accidental” as required under the rules.
Additionally, it has been noted that the agency is doing a comprehensive review of their authority to find “holes” that would allow for additional oversight and regulation over hydraulic fracturing.
All through the process, U.S. EPA continues to face criticisms from various entities. First, many believe that U.S. EPA struggles with the legal authority to do inspections regarding hydraulic fracturing due to various state regulations and industry-specific regulations under the Safe Drinking Water Act (SDWA).
Secondly, as seen in the recent investigations of groundwater contamination in Pavillion, Wyoming and Dimock, Pennsylvania, the agency continues to face problems with evidence and criticisms stemming from utilizing Superfund authority. This stems from the agency’s Superfund law authority being strictly tailored to hazardous substances from hydraulic fracturing, as the law does not regulate natural gas, petroleum or other related substances. U.S. House Republicans continue to question EPA Administrator Lisa Jackson and White House advisers over this authority.
The final regulatory provision being utilized by the agency is the CWA 404 permitting authority. CWA Section 404 requires an operator to obtain a “dredge and fill” permit if the well construction occurs near a water of the United States. U.S. EPA has used this authority to provide a broader venue for oversight. As one industry attorney noted, the 404 authority allows them to “go out in the oil and gas patch right now with relatively little question as to their ability to enforce the law”.
Please see page 15
Page 14 July/August 2012Ohio Oil & Gas Association Bulletin – www.ooga.org
Appalachian Basin News
Court Rules PA Can’t Restrict Local Governments From Using Zoning Law to Regulate Oil, GasBy: Brian Hickman
On July 27th, a Pennsylvania appellate court ruled that provisions contained in the recently passed “Act 13” are
unconstitutional because it violates substantive due process. The 4-3 split ruling will almost certainly lead to an appeal before the Pennsylvania Supreme Court. The decision shows that some arguments supporting local control over oil and gas continue to gain traction.
As you may recall, Act 13 in Pennsylvania created statewide standards for the zoning of oil and gas wells, including localities. A group of seven municipalities and other various interests filed a lawsuit that, even in legal circles, was considered a long shot to succeed.
The municipalities contended that they had a right to use their land-use powers to determine where drilling activity could happen within their borders. Act 13 would take away this power for the benefit of the oil and gas industry. They further claimed that the new law would impact their existing plans for development because drilling was allowed no matter how the area was zoned. Municipalities were specifically concerned about the permitting of drilling, drilling pits, and pipelines in every district (regardless of zoning) so long as certain setbacks were observed.
The state argued that the law was an appropriate use of police power, falling within their obligation to oversee the development of the state’s natural resources.
In a 4-3 split decision, the state’s Commonwealth Court ruled that Act 13 violates the state constitution. Act 13 “violates substantive due process because it does not protect the interests of neighboring property owners from harm, alters the character of neighborhoods and makes irrational classifications,” stated Judge Dan Pelligrini, who wrote the majority’s decision.
“If the commonwealth-proffered reasons are sufficient, then the Legislature could make similar findings requiring coal portals, tipples, washing plants, limestone and coal strip mines, steel mills, industrial chicken farms, rendering plants and fireworks plants in residential zones for a variety of police powers advancing those interests in their development,” wrote Pellegrini. “It would allow the proverbial ‘pig in the parlor instead of the barnyard.’”
The dissenting opinion, penned by Judge P. Kevin Brobson, noted that Pennsylvania law “strikes a balance both by providing for harvesting of those natural resources, wherever they are found” and restricts drilling based upon criteria like location and noise level. “The law promotes the health, safety, and welfare of all Pennsylvanians by establishing zoning guidance to local municipalities that ensures the uniform and optimal development of oil and gas resources in this commonwealth,” noted Brobson.
On July 27, Pennsylvania Governor Tom Corbett appealed the commonwealth’s decision to the State Supreme Court. When doing so he released a statement expressing his confidence that the law will be deemed constitutional.
“It is the General Assembly and Governor’s prerogative to establish policy; it is the court’s job to pass judgment on the constitutionality of this policy, not its merits. Act 13 clearly meets the constitutionality test, and I am confident the Supreme Court will adhere to its responsibility in a prompt and timely manner,” the release stated.
On another note, the Pennsylvania Supreme Court may not overturn a lower court decision on a tie vote. The Supreme Court currently is comprised of 3 Republican and 3 Democrat members.
July/August 2012 Page 15Ohio Oil & Gas Association Bulletin – www.ooga.org
Utica and Marcellus Wells Designed and Permitted Offices in: Ohio, Pennsylvania, and West Virginia
www.hammontree-engineers.com Charles Hammontree, P.E., P.S.
Members: OOGA, PIOGA, IOGAWV, and IPAA
5233 Stoneham Road
North Canton, OH 44720
1-800-394-8817
••
▪ Urban and Rural Well Plats ▪ Gas Line Surveying and Staking ▪ Transportation Management ▪ Construction Inspections
▪ Well Pad and Impoundment Designs
▪ Wetland Studies ▪ Water Well Testing ▪ Geotechnical/Slope Stability
443 Athena Drive Delmont, PA 15626
3376B Main Street Weirton, WV 26062 104 Newell Avenue St. Clairsville, OH 43950
Supplying Quality Lubricants Refined Using Penn Grade Crude
He also noted that this is substantial, as 404 violations can be serious and include criminal liability.
With all of these regulatory questions floating around, producers must be cautious for another reason – “environmental justice”. The Obama Administration has made environmental justice a top concern of their administration,
specifically regarding natural gas wellsites. The concern is that U.S. EPA would cite equality as part of a broad scope under which to take action on hydraulic fracturing jobs. This would fly in the face of the basic principal of oil and gas development – drilling for minerals where they are located within the earth.
U.S. EPA Trying to Expand Enforcement Powers to Inspect Fracing at Well Sites (cont. from p. 13)
Ohio Oil & Gas Energy Education Program
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To order, please call 740-587-0410 Visit us online at www.oogeep.org
Page 16 July/August 2012Ohio Oil & Gas Association Bulletin – www.ooga.org
disclosures, wastewater handling and other fracing-related issues. Many natural gas stakeholders have expressed concern about this building wave of federal regulation, from different agencies and regulators, and the potential that this will result in inefficient, burdensome and even conflicting federal-versus-federal and federal-versus-state regulatory requirements.
Perhaps in response to these concerns, on April 13, President Obama signed an executive order creating a taskforce of 13 federal agencies to “coordinate the efforts of Federal agencies re-sponsible for overseeing the safe and responsible development of unconventional domestic natural gas resources and associated in-frastructure and to help reduce our dependence on oil…” While some in the oil and gas industry have applauded the creation of this taskforce for its potential to streamline and coordinate federal activity on fracing, stakeholders will keep a close eye on the path taken by the Obama Administration.
Barnes’ and Pardo’s assertion that the government’s attempt at regulation of hydraulic fracturing is just the beginning is sobering indeed, especially if this new “taskforce” proves to be detrimental to our industry. If (as it appears) there are numerous other regula-tory and tax proposals also being made then we as an industry have many fires to fight ahead of us. It is impossible for any one company or state trade association to address the onslaught of issues we are facing as an industry. Therefore, just like the firefighters in Colorado, we must come together from all over the country to address these issues. Getting involved not only on the state level but also at the national level as well is necessary to pro-tect our industry. Our livelihood is at stake.
Offices in Canton, Akron, Alliance, New Philadelphia & Sugarcreek
KWGD.com
Located in the heart of Ohio’s Utica Shale play, our law firm represents oil and natural gas producers, pipeline companies and energy service providers. Krugliak, Wilkins, Griffiths & Dougherty’s Oil and Gas Team has more than three decades of experience providing representation in the areas of:
With 51 attorneys in more than 25 practice areas, Krugliak, Wilkins, Griffiths & Dougherty has a proven record in the legal industry.
Lease & Title Issues • Easements • Acquisitions • Contracts • Operating Agreements Litigation • State & Local Government Disputes • Joint Ventures • Gas Transportation
From left: Owen J. Rarric, John B. Schomer, David E. Butz, Dean A. Swift, William G. Williams, Nathan D. Vaughan, Scott M. Zurakowski and Gregory W. Watts.
July/August 2012 Page 17Ohio Oil & Gas Association Bulletin – www.ooga.org
Discovery MembersAnadarko Petroleum CorporationArtex Oil CompanyBP AmericaChesapeake Energy Corporation Devon Energy Corporation
The Oxford Oil CompanyShell Oil CompanyXTO Energy Inc.
Wildcat MembersAmerican Refining Group Atlas Energy, L.P. Caiman Eastern Midstream, LLCChevronDominion East OhioThe Energy CooperativeEnerVest Operating, LLCGatherco, Inc.
Gulfport Energy CorporationDavid R. Hill, Inc.J.D. Drilling Company Ken Miller Supply, Inc.KENOIL, Inc.Knox/Jordan GroupLocal 18 IUOEMountaineer Keystone LLC
Ohio Natural Gas & Oil Development LLCProducers Service CorporationREX Energy CorporationVallourec & Mannesmann USAVorys, Sater, Seymour & Pease LLP
Scout Members
AECOM Technical ServicesAdvanced Energy Services, LLCAlberts Spray Solutions LLCAlliance Petroleum CorporationAmerican Plastic Pipe & SupplyAmerimar Reality CompanyAntero ResourcesApple Mobile Leasing Inc.ARCADIS U.S. Inc.ARM GroupAtlas Copco Construction Mining TechniqueAultCareAVT Inc.A.W. Tipka Oil & Gas, Inc.Babst CollandBaker & Hostetler, LLPBakerwell, Inc.Barrett Paving Materials Inc.Bass Energy, Inc.Benesch, Friedlander, Coplan & Aronoff LLPBL Companies, Inc.Black McCluskey Souers & Arbaugh, LPABlackridge ResourcesBorton LawsonBuckeye Oil Producing Co. Burgess & NipleBurleson LLPCameron Drilling Co., Inc. Canter Surveying GPS Services, Inc.Canton Erectors Inc.Cardno ENTRIXCentury National BankClean HarborsColumbia Gas of Ohio, Inc.Conestoga - Rovers & AssociatesConsol Energy Critchfield, Critchfield & Johnston, Ltd.Dawood Engineering, Inc.Delta Energy LLCDiversified ResourcesDominion East OhioDorfman Production Co. DTE Pipeline CompanyEDCO Producing, Inc.Edgemarc Energy Holdings LLCE.L. RobinsonEnduring Resources, LLCEnerVest Operating, LLCEnterprise Fleet ManagementE-Pak Manufacturing
ERMErnst Conservation SeedsEverflow Eastern Partners, L.P.Excalibur Machine Co.Express Energy CompanyFalco EnergyFifth Third BankFinn CorporationFirstMerit BankFulbright & Jaworski L.L.P.GBQ Partners LLCGraybar ElectricHalcon Resources CoporationHall, Kistler & Company, LLP HalliburtonHess CorporationHigh Sierra Crude Oil & MarketingHull & AssociatesHunt Oil CompanyIA Construction CorporationIntegrys Energy Services, Inc.Interstate Gas Supply, Inc.IPS EngineeringJackson Kelly PLLCJim Bourbeau Land Service, Inc.JMW Trucking, Welding & ManufacturingK&L Gates LLPKegler, Brown, Hill & RitterKelchner, Inc.KeyBankKilburn Law Firm, PLLCKimble CompaniesKincaid, Taylor & GeyerKirk Excavating & Construction, Inc.Kokosing Construction Co.Krugliak, Wilkins, Griffiths & DoughertyKwest Group, LLCLarson Design GroupLindy Paving, Inc.LJ Stein & Company, Inc.Local 66 IUOELoomis, Ewert, Parsley, Davis & Gotting, P.C.LW Survey Co.M3 Midstream LLCMarcellus Resource GroupMacKenzie Land & Exploration, Ltd.Maric Drilling Company MarkWest Energy Partners, L.P.Mason Producing, Inc.McNees, Wallace & Nurick, LLCMcTech Corp.McTish, Kunkel & Associates
Mercy Medical CenterMFC Drilling, Inc.Mid-Ohio Pipeline ServicesMoore Well Services, Inc.MS Consultants, Inc.NCL Natural Resources, LLCNewpark Resources, Inc.New Pig CorporationNicolozakes Trucking & ConstructionO’Brien & GereOhio CATPanhandle EnergyPDC Energy, Inc.Peak Exploration & ProductionPetrox, Inc.Pipe-Valves, Inc.Plains All AmericanPNC Wealth ManagementPowder River Land Services, LLCPrinciple Energy ServicesPro Football Hall of FameProducers Supply Company, Inc.PVR PartnersRETTEWRichard L. Bowen & AssociatesRiskControl360R&J Trucking, Inc.Sadler Law Firm LLPSAICSierra Buckeye, LLCStantecSteptoe & Johnson PLLCSummit Petroleum, Inc.SunSource Hydraulic Service & RepairSuperior Well ServicesTest America Laboratories, Inc.Tetra Technologies, Inc.Tetra TechThompson Hine LLPTracker Lario Utica, LLCTRC CompaniesTrendwell Energy CoporationTri-State Environmental ServicesTriad EngineeringUniversal Well Services, Inc.URS CorporationVelocity Ohio Midstream, LLCWeir Oil & GasWestfield Bank, FSBWheeling & Lake Erie Railroad Co.Will-Burt Company
Explorer Foundation Corporate MembersOhio Oil & Gas Association
Page 18 July/August 2012Ohio Oil & Gas Association Bulletin – www.ooga.org
Thank Youto our sponsors for helping make this event a success!
July/August 2012 Page 19Ohio Oil & Gas Association Bulletin – www.ooga.org
Gold Sponsors
Alliance Petroleum Corporation
Buckeye BOP
Buckeye Water Service Co.
Equity Oil & Gas Funds, Inc.
Gatherco, Inc.
H.A.D. Inc
Halliburton
Integrys Energy Services, Inc.
Interstate Gas Supply, Inc.
Kokosing Construction Co.
Mac Oil Field Service
MFC Drilling, Inc.
Moody & Associates, Inc.
Packers Plus Energy Services Inc.
Protégé Energy II LLC
Valley Petroleum, Inc
Westerman
Altheirs Oil, Inc.
APO Pumps & Compressors
Atlas Energy, LP
Bakerwell, Inc.
Black, McCuskey, Souers & Arbaugh
Blue Dot Energy Services LLC
Elexco Land Services, Inc.
Energy Services Corporation
EnergyUSA-TPC
Esmark Excalibur
Glenn O. Hawbaker Inc.
Hunting Titan
Integrity Pipeline Services, LLC
KIKO
Knox Energy, Inc.
NPS Norris Production Solutions
OGIA Insurance Agency
Ohio Utilities Protection Service
Patten Producing Co.
PECCO, Inc.
Reserve Energy Exploration Company
Sequent Energy Management
Triad Engineering, Inc.
Triad Hunter, LLC
Weatherford
Silver Sponsors
Buckeye Oil Producing Co.
Devco Oil, Inc.
Hickman Global Staffing LLC
New Pig Corporation
Select Energy Services
Universal Well Service
Bronze Sponsors
Page 20 July/August 2012Ohio Oil & Gas Association Bulletin – www.ooga.org
Oilf ield Expo2 012
Save the Date!December 4-6, 2012
I-X CenterOne I-X Center Drive, Cleveland, Ohio 44135
The Ohio Oil and Gas Association is pleased to present the all-indoor oilfield expo. Mark your calendars for an exciting opportunity to network with the oil and gas industry.
Visit www.ooga.org for details.For additional information, please contact Kristy Hawthorne at [email protected]
Dec. 4 – Exhibitor set up and reception Dec. 5-6 – Expo and Conference
July/August 2012 Page 21Ohio Oil & Gas Association Bulletin – www.ooga.org
» 20% lower total installed costs than welded steel
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Reel after reel, you’ll reduce installed and operating costs, safety risks and construction time with Fiberspar LinePipe. Call Patrick Lay at 740.241.2022 or email [email protected].
Page 22 July/August 2012Ohio Oil & Gas Association Bulletin – www.ooga.org
RETTEW Welcomes Burwell, Goff, McCarthy and Smith
Press Releases
Additionally, he coaches and mentors staff, and he plays a role in business development. Goff has 12 of experience in designing, constructing and maintaining all aspects of commercial and industrial facilities. He is well versed in civil, structural and architectural design concepts, in addition to mechanical, electrical, and plumbing design concepts. His construction management experience includes cost estimating, project scheduling, bidding, onsite supervision and final inspections. Goff has a bachelor’s degree in civil engineering from Ohio University. He resides in Summit County, Ohio.
Kevin M. McCarthy
McCarthy is a senior environmental scientist in RETTEW’s natural sciences division in the firm’s Canton office. Working with oil and gas clients involved in Ohio’s Utica Shale play, he determines the best route for permanent waterlines needed for oil and gas extraction to minimize impacts to federally regulated waters, including jurisdictional wetlands. He also works to obtain permits for clients from various regulatory agencies, and he provides wetland and stream delineations. McCarthy has 23 years of diversified experience in environmental consulting for numerous public and private clients. He is well versed in wetland delineation, wetland violation reclamation planning and implementation, and wetland creation for compensatory mitigation. Additionally, he has conducted forest conservation data collection, forest stand mapping and forest conservation planning pursuant to the Maryland Forest Conservation Act. McCarthy has a bachelor’s degree in forest management from West Virginia University. He resides in Stark County, Ohio.
RETTEW, an Engineering News-Record top 200 design firm providing engineering, transportation,
environmental consulting, planning, surveying and safety consulting services, recently welcomed new hires Thomas “Brad” Burwell; Michael J. Goff, PE; Kevin M. McCarthy and Derek H. Smith.
Thomas “Brad” Burwell
Burwell is a group manager in the firm’s natural sciences division in RETTEW’s Canton office, responsible for managing the day-to-day operations of project teams and coordinating work activities for Canton’s natural sciences group. The group conducts environmental planning and permitting, remediation, wetland delineations, restorations and water and gas pipeline routing for clients involved in oil and gas exploration in Ohio’s Utica Shale play. Burwell comes to RETTEW from the Ohio Department of Natural Resources, Division of Mineral Resources Management, where he managed the coal and industrial mineral regulatory programs, mine safety program and the abandoned mine land reclamation program. He has more than 32 years of experience in the environmental consulting industry. Burwell has a bachelor’s degree in forestry resources management from West Virginia University, and he resides in Tuscarawas County, Ohio.
Michael J. Goff, PE
Goff is a senior engineer in the civil/municipal group in RETTEW’s Canton office. Working with oil and gas clients involved in Ohio’s Utica Shale play, he provides construction management and oversight of temporary freshwater lines required for hydraulic fracturing. He is tasked with ensuring adherence to schedule, budget and specifications. Please see page 47
July/August 2012 Page 23Ohio Oil & Gas Association Bulletin – www.ooga.org
In Memorium
William Howard Atha
William “Bill” Atha passed away on August 20, after a year-long battle with ALS (Lou Gehrig’s disease).
He was born in Marietta, Ohio, on June 4, 1954, and was a graduate of Worthington High School. He then attended West Point Military Preparatory School, and he served our country in the US Army from 1972-1974. He graduated from The Ohio State University with a degree in Communication.
Bill was a fourth generation independent oil and gas producer and a member of the Ohio Oil and Gas Association since 1981. He was active in his ALS support group, and he was a member of Central College Presbyterian Church and the Medallion Golf Club. He enjoyed fishing, boating, golf and reading. Bill loved to laugh, and even through his illness,
he had a positive attitude and an optimistic outlook.
Bill is survived by his wife, Julia Atha; daughters, Chelsea and McKenzie Atha (Stephen Montemarano); mother, Yvonne Atha; siblings, David (Gay) Atha, Richard Atha, Nancy (Joe) Melville, Thomas (Cindi) Atha, and Robert (Carol) Atha; siblings-in-law, Charles Gall, Michael Gall, Marcia Crites (Steve Lawrence), Ken (Ann) Gall, Ron (Sandy) Gall, and Joanne (Mark) Salyer; and many nieces, nephews, and countless friends. He was preceded in death by his father Howard Atha.
Contributions in Bill’s name can be made to the ALS Association Central and Southern Ohio Chapter. Visit www.schoedinger.com to share a favorite memory of Bill.
Additional Publications & Services Available to OOGA Members
Permit List – Distributed via email, fax, or U.S. mail (Weekly) $110.00/year
Plugging List – Distributed via email, fax, or U.S. mail (Weekly) $100.00/year
Completion Cards – Distributed via U.S. mail (Monthly) $100.00/year
Scout Report – Distributed via U.S. mail (Monthly) $100.00/year
American Oil & Gas Reporter Magazine – Distributed via U.S. mail (Monthly) $5.00/year
OOGA Safety Manual – Generic guideline for your company to meet OSHA requirements $50.00
Ohio Oil and Gas AssociationTo order, please call 740-587-0444 Visit us online at www.ooga.org
Become a Member of the Ohio Oil & Gas Association
The Ohio Oil & Gas Association offers key benefits for those involved in the industry:
Bi-weekly and Monthly PublicationsComplete Membership DirectoryIndustry Activity ReportsGovernment Relations
Service OpportunitiesEducation, Networking and ContractsInsurance OpportunitiesWorkers’ Compensation
For more information, please visit our website at www.ooga.org
Page 24 July/August 2012Ohio Oil & Gas Association Bulletin – www.ooga.org
In Memorium
Theodore A. “Ted” DeBrosse
Ted DeBrosse, who died on May 21, 2012, was a long time and distinguished employee of Ohio Department
of Natural Resources (ODNR). Ted was born on June 25, 1930, and was a 1955 graduate of St. Joseph’s College, where he majored in geology. Ted DeBrosse started out his career with the ODNR-Division of Geological Survey in the Coal Geology Section. He was first assigned to the statewide program to calculate coal resources, which was ongoing during the 1950’s and early 1960’s. As part of this effort, he published a Report of Investigation on the coal resources of the Conemaugh Formation of Ohio.
Starting in 1957, Ted DeBrosse was transferred to the Subsurface Section of the Division of Geological Survey. It was here that he began to make a significant contribution to the oil and gas industry of Ohio. Late in 1957, Ted DeBrosse was placed in charge of a project to map the locations of all known oil and gas wells in Ohio. This had never before been done publicly. The project was completed in 1960, just in time for the maps to be heavily used by the public for the Morrow County, Ohio oil boom of the early 1960’s. Ted DeBrosse continued to be involved in updating the maps all during the Morrow County boom, never allowing the maps to become out of date during a time when there was large number of wells being permitted and drilled.
In addition, during the period of the late 1950’s and early 1960’s, Ted DeBrosse became involved in two other activities, the Oil and Gas Fields Map of Ohio and the annual oil and gas statistics. Ted DeBrosse was the co-author on the 1960 Oil and Gas Fields of Ohio map, assisted with mapping of the 1964 Oil and Gas Fields Map, and in 1974, he was the principle author on the 1974 Oil and Gas Fields of Ohio map. The 1974 map served the public for 22 years, until it was updated in 1996. In 1959, Ted DeBrosse started his involvement in the compiling the annual oil and gas statistics for Ohio. He was a co-author for the annual statistics for 1958, 1959, 1964, and 1968, and he was the primary author for the annual oil and gas statistics from 1969 until 1986. This statistical report became known to the industry as “The DeBrosse Report”.
Finally, Ted DeBrosse was best known and distinguished himself during his employment with the former ODNR-Division of Oil and Gas. During the Morrow County oil boom of the early 1960’s, it became apparent that Ohio’s oil and gas laws were inadequate to safely manage the Morrow County oil field. Ted DeBrosse worked with the legislature and industry to help modernize Ohio’s oil and gas laws. As part of this modernization, the Division of Oil and Gas was created in October 1965. Ted DeBrosse transferred over from the Division of Geological Survey to the newly created Division of Oil and Gas, thereby becoming one of the first employees. Over time, he eventually became Assistant Chief of the Division. On three occasions, in 1975, 1975-1977, and in 1983, he was acting Chief of the Division. During his tenure as acting Chief, he initiated and established the idle and orphan well program for the Division. This allowed the Division to finance the plugging and restoration of wells when no one could be found to assume these costs.
Professionally, Ted was a founding member of both the Ohio Geological Society and the Ohio Section of the American Institute of Professional Geologists (AIPG), and was a member of the American Association of Petroleum Geologists (AAPG) for over 50 years. He served as the president and was awarded Honorary Membership by the Ohio Geological Society, served as president of the Ohio Section of AIPG, and was inducted into the Ohio Oil and Gas Association Hall of Fame.
Even in retirement, Ted still remained active. He could be seen around ODNR up until the late 2000’s, meeting old colleagues and his son Myron for lunch. He would also join people from the oil and gas industry for Friday morning coffee in Worthington.
He was survived by wife of 54 years, Betty; children, Richard (Martha) of SC, Myron, Jeffrey (Maryan), and Nanette DeBrosse, all of Columbus; and his grandchildren, Abigail and Michael DeBrosse.
2012 Ohio Oil & Gas Association Oilfield ExpoDecember 4 - 6, 2012
I-X Center, Cleveland, OhioTurn to page 20 of this OOGA Bulletin for a preview of this event
July/August 2012 Page 25Ohio Oil & Gas Association Bulletin – www.ooga.org
Bulletin AdvertisersThe Ohio Oil & Gas Association would like to thank the following companies for their support through advertising in the Bulletin. Classified advertisements for these companies can be found on the pages indicated.
Allied Industry (cont.)Member ProfilesNicholas H. Asher Business Development Meagher Energy Advisors
www.meagheradvisors.com
Founded in 1985, Meagher Energy Advisors is a full-service firm centered on acqusition and divestiture services to the energy industry. Meagher has facilitated the sale of properties across the United States, ranging in size from $5 million to $1.75 billion.
Allied Industry (cont.)Member ProfilesChristopher Baronzzi Attorney Porter Wright Morris & Arthur LLP
www.porterwright.comAs a litigation attorney, Chris is a key part of Porter Wright’s oil and gas practice group. He has experience handling lease and mineral disputes, well construction problems, pipeline easements, eminent domain issues and mechanic’s liens.
Chuck Bennell President Tam O’Shanter Company www.tamoshantergolf.com
We are a public 36-hole golf course in Stark County, located between Canton and Massillon. Our 300+ acres are used for commercial recreation (golf ). We are also interested in revenue opportunities from oil and gas beneath the surface of our land.
Jamin Fagin Business Development Manager Lenergy
www.lenergyco.comLenergy, LLC is a full-service general engineering contractor providing design, manufacturing, and construction services to the natural gas and petrochemical industries.
July/August 2012 Page 29Ohio Oil & Gas Association Bulletin – www.ooga.org
New OOGA Members (cont.)
James Higgins – President and CEOFinn Corporation 9281 LeSaint Drive, Fairfield, OH 45014
Allied Industry (cont.)Member ProfilesMike Gray Account Manager Team Industrial Services
www.teamindustrialservices.com
Team provides non-destructive testing services, x-ray, ultrasonic, API, and magnetic particle. Team also has heat treatment, leak repair, hot taps, line stopping, technical bolting, and valve repair.
Joseph Greco Director of New Business Development Excalibur Machine Company
www.excaliburmachine.comDesign, fabrication, machining and assembly servicing the shale play industry. We work on such products as, but not limited to, frac tanks, mud mixing pits and sand masters.
Pete Hallahan Sales Manager Clifton Steel Company
www.cliftonsteel.comClifton Steel is a steel supplier helping Ohio oil and gas companies by replacing wear parts and liners to avoid lengthy breakdowns or shut downs on the oilfield job site.
Please see the following page
Page 30 July/August 2012Ohio Oil & Gas Association Bulletin – www.ooga.org
New OOGA Members (cont.)
John Lubinski – PresidentCounty Fire Protection, Inc. 4620 Crystal Parkway, Kent, OH 44240
Allied Industry (cont.)Member ProfilesDave Harrison Planning, Zoning and Economic Development Administrator Village of Lordstown
www.lordstown.comThe Village of Lordstown is perfectly located with great highway and rail access and has over 1,500 acres of available industrial and commercial property.
S. Kathleen Steere Coordinator, Oil and Gas Programs Stark State College
www.starkstate.eduSpearheads the development of the oil and gas cirriculum, which will serve the education and training needs for the industry.
William A. “Tony” Unger President Tri-State Environmental Services, LLC We provide environmental cleanup services to our customers on a 24/7/365 basis. We specialize in the transportation of hazardous/non-hazardous waste, brine, water, etc. and can also provide vacuum and hydrostatice testing services for scheduled and emergency basis jobs.
July/August 2012 Page 31Ohio Oil & Gas Association Bulletin – www.ooga.org
New OOGA Members (cont.)
Karl Nagle – Account ManagerBaker Hughes 400 Bateman Road Imperial Industrial ParkImperial, PA 15126
Member ProfilesPaul Williams President Wooster Motor Ways, Inc.
www.woostermotorways.comWooster Motor Ways is a 43-year old trucking company. We have a large dry van freight division as well as refridgerator vans and pneumatic tanks.
Page 34 July/August 2012Ohio Oil & Gas Association Bulletin – www.ooga.org
New OOGA Members (cont.)
Mike Archer – President & CEOPioneer Pipe / Pioneer Group 2021 Hanna Road, Marietta, OH 45750
Brian Layman JD, CPA, M.Tax, Admitted to practice law in Ohio and FloridaLayman, D’Atri & Associates, LLC 4481 Munson Street, NW, Suite 301 Canton, OH 44718
Craig Wilson – Student – The Ohio State University5307 Blue Ash Road, Columbus, OH 43229 [email protected]
New OOGA Members (cont.)
Student
www.EIDOhio.org
Page 48 July/August 2012Ohio Oil & Gas Association Bulletin – www.ooga.org
RETTEW Welcomes Burwell, Goff, McCarthy and Smith (cont. from p. 29)
Press Releases (cont.)
Derek H. Smith
Smith is a senior environmental scientist in the natural sciences division in RETTEW’s Williamsport office.
He works with various regulatory agencies on behalf of RETTEW’s key oil and gas clients to secure environmental permits required for water pipelines needed for oil and gas extraction. Specifically, he is tasked with conducting onsite quality control/quality assurance reviews of wetland and stream delineations. Smith also develops protocols and standards for field staff. Smith has 19 years of experience in environmental analysis and documentation within the private sector and state and federal resource agencies. His expertise includes wetland delineation, including disturbed site wetland determinations, and wetland creation and restoration. He is also well versed in aerial photo interpretation and site
evaluation of soils and vegetation. Smith has a bachelor’s degree in wildlife and fisheries Science from Penn State University. He resides in Perry County, Pennsylvania.
RETTEW, ranked 166 in 2012 on Engineering News-Record’s annual list of top 500 design firms, provides engineering, transportation, environmental consulting, planning, surveying, safety consulting and related services to a wide range of clients across the country. Beginning in 1969 as a single-person office, today RETTEW has more than 450 employees. Offices are located in Athens, Lancaster, Lehigh Valley, Mechanicsburg, Pittsburgh, Schuylkill Haven and Williamsport, Pa; Canton, Ohio; and Delhi and Liberty, N.Y. For more information on any of RETTEW’s services, please call 1-800-RETTEW-5 (1-800-738-8395) or visit www.rettew.com.
July/August 2012 Page 49Ohio Oil & Gas Association Bulletin – www.ooga.org
of moisture in the soil and relative humidity can all be factors that necessitate longer or different types of grounding rods and bonding assemblies.
Static Dissipative Materials
In addition to bonding and grounding, static-dissipative materials can also increase worker safety. Static dissipative materials have the ability to discharge energy more rapidly to an earthen source. Materials are often specifically treated to increase their static-dissipative capabilities.
Because pad liners are commonly made of plastic materials that are non-conductive, static can be a constant problem at worksites. Treating the surface or choosing fabrics that have static-dissipative agents incorporated into their chemistry can help minimize the potential for build up.
Static-dissipative footwear is an additional form of protection for workers to channel any built-up energy from the body safely to an earthen source. However, it should not be used as a substitute for static-dissipative work surfaces. For footwear to be effective, flooring / walking surfaces must also be static-dissipative.
For footwear to pass the ASTM F2413 standard, static dissipative footwear must protect the worker from impact and compression hazards as well as, “maintain a sufficiently high level of resistance to reduce the possibility of electrical shock…”
Even absorbent mats, socks, pillows and booms can be specially treated to help dissipate static, making spill response safer when responding to spills of flammable liquids.
It is important to test the static-dissipative properties of surfaces periodically, because many static-dissipative treatments or additives wear off over time.
Increasing Safety
Organizations such as the NFPA, ANSI, API and others have produced numerous publications to help increase worker safety and decrease the risks of working in areas prone to static electricity dangers.
Hazard evaluations and written safety plans help ensure that workers are aware of hazards and know how to properly protect themselves. Plans may include:
•Verifying that transfer areas are properly grounded and that bonding assemblies are adequate
Industrial fires and explosions can have a number of root causes, but according to the NFPA, uncontrolled static
electricity is the primary reason for at least two industrial fires or explosions throughout the world each day.
Static electricity is the result of an imbalance between the number of positive and negative charges in an object. It is commonly caused when two objects rub together then separate – or, in other words, any time there is movement. Static electricity builds up on objects until it is either released to another object, or is discharged naturally to the earth over time.
Materials that are conductive permit the transfer or flow of electricity. Metals are a common example of conductors. Water that contains impurities such as salts, acids, solvents or other materials can also be conductive.
One of the most problematic conductors, however, is the human worker. Because workers don’t often stay stationary, like a metal tank or a piece of processing equipment, it is more difficult to control the static electricity that accumulates on them.
Bonding and Grounding
The earth has a limitless capability to absorb electricity, so creating a path to channel unsafe forms of electricity to the earth is a key to safety. When work happens on pads, concrete, flooring, or anything else that breaks the path between an object and the earth, installing grounding rods is the first step in re-creating that safe path for energy to flow. Grounding rods allow an electrical charge from an object to move quickly to the earth, reducing that object’s voltage or charge to zero.
To further channel this energy and create safer work environments, objects can be bonded together, and connected to a ground source. Bonding creates a path between objects, keeping their electrical potential the same, and channeling it safely the earthen / ground source where it can be dissipated.
For objects that have been allowed to inadvertently build up a charge, test the area before bonding or grounding it. Sometimes, the safest option may be to let it “rest” so that the static can be discharged naturally. This, however, can take several hours or days depending on the situation.
It is important to make sure that both bonding and grounding assemblies are sufficient and appropriate to rapidly discharge energy to the ground. Differences in soil types, the amounts
Safety Article
Protecting Workers from the Hazards of Static ElectricityBy: Chris Dilley, New Pig Corporation
Please see the following page
Page 50 July/August 2012Ohio Oil & Gas Association Bulletin – www.ooga.org
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• Establishing a schedule to periodically check the static- dissipative properties of pad liners and footwear
• Ensuring that all electrical equipment, tools and vehicles are appropriate for the hazards that may be encountered
• Regularly inspecting all grounding straps, clamps and wires to make sure that they are in good working order
• Teaching workers how to properly bond and ground all containers, pipes, hoses, etc.
• Monitoring the work area to identify hazardous gas or liquid leaks
Evaluating and mitigating static hazards is an essential part of safety planning, and will help minimize the potential for fire or explosion hazards at the job site.
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For the latest information on these and other events, including how to register, go to www.ooga.org
Industry Events
SeptemberYOUNG Oil & Gas Expo September 4 - 6, 2012 Holiday Inn/Covelli Center, Youngstown, OH
InfoCast: Black Gold Ohio Summit September 12 - 13, 2012 The Westin, Columbus, OH
Morning Keynote Speaker - OOGA EVP Tom Stewart
Visit www.infocast.com/balckgoldohio for more
information
September (cont.)American Association of Petroleum Geologists Eastern Section 41st Annual Meeting September 22 - 26, 2012 The Renaissance Hotel, Cleveland, OHVisit www.esaapg2012.org for more details
NovemberIPAA Annual Meeting November 8 - 10, 2012 The Ritz Carlton, New Orleans, LA
Contact Kristy Hawthorne at 740-587-0444 or [email protected] to have an event listed.
Page 52 July/August 2012Ohio Oil & Gas Association Bulletin – www.ooga.org
Public Presentations/ Events CalendarJuneYoungstown State University, Sustainable Energy Forum, June 5, 2012Youngstown Metro Housing, June 6, 2012 Cleveland Business Group, June 6, 2012Wadsworth 9.12 Group, Medina Tea Party, June 7, 2012County Recorders Association, June 11, 2012Holmes County Shale Forum, June 11, 2012Spring/ Summer 2012 Industry Training Series, June 12 - 13, 2012Marietta College Teacher Workshop, June 13 - 14, 2012Ohio Department of Education “HOT” (Hands-on-Training) Teacher Workshop, June 14, 2012Tuscarawas Oil and Gas Alliance (TOGA), June 19, 2012Stark State College Oil & Gas Information Session, June 19, 2012OOGEEP Oil and Gas Informational Meeting, June 20, 2012Tuscarawas Ag Day, June 21, 2012The Energy Cooperative Kids Day, June 24, 2012National Fire Academy, June 28 - 29, 2012We the People Convention, June 30, 2012
JulyNortech Energy Enterprise, July 11, 2012Ohio Fire Chiefs Association, July 14 - 18, 2012Dublin/ Worthington Rotary Club, July 18, 2012Ohio Environmental Council Public Forum, July 25, 2012Belmont Harrison Career Technical Center, July 25, 2012Ohio State Fair, July 25 - August 5, 2012Stark State Teacher Sustainable Workshop, July 26, 2012
AugustOhio Association for Career and Technical Education, August 2, 2012Independent Oil and Gas Association of WV, August 6, 2012COSI Teacher Resources Day, August 7, 2012Belmont County Teacher Workshop, August 8 - 9, 2012Boardman Civic Association, August 15, 2012Central Ohio Career and Workforce Development Team August 16, 2012Evets Oil & Gas Construction Services, August 16, 2012Westlake 9-12 Project, August 18, 2012Ross County Soil and Water Conservation District, August 21, 2012Richland County, August 23, 2012
SeptemberSoutheastern Ohio Oil and Gas Association (SOOGA) Trade Show September 12 - 13, 2012Kiwanis Club of Medina, September 13, 2012American Society of Home Inspectors, September 14, 2012Oilfield Emergency Response Training Workshop September 15 - 16, 20122012 Eastern Section AAPG, September 22 - 26, 2012AAPG Cleveland Teacher Workshop, September 24, 2012NARO Appalachian Annual Meeting, September 26, 2012Wayne County Fire School, September 29, 2012
OctoberWomen’s International Network of Utility Professionals Conference October 8 - 9, 2012Columbiana County Safety Conference & Expo, October 12, 2012Oilfield Emergency Response Training Workshop October 13 - 14, 2012Stark County District Library, October 30, 2012
During numerous power outages caused by severe storms across the state, including OOGEEP and OOGA offices, OOGEEP staff volunteered with the American Red Cross of Licking County to
help provide relief to those affected by the storms.
July/August 2012 Page 53Ohio Oil & Gas Association Bulletin – www.ooga.org
The Ohio Oil and Gas Energy Education Program and the Ohio Oil and Gas Energy Education Foundation’s (Foundation) Scholarship Committee announced that 35 students were awarded scholarships. To date, OOGEEP and the Foundation has awarded 108 scholarships representing students from 28 Ohio cities, 19 counties, and 10 different colleges or universities. To be eligible for the annual scholarship, students must have an energy career goal and are required to be either an Ohio resident or planning to attend an Ohio college or university. The students are judged on career goals, essays, letters of recommendation, academic achievement, awards or special recognitions, community service and other outside activities. The 2012 Scholarships were primarily funded through the industry training proceeds, special contributions from Buckeye Oil Producing Co., Chesapeake Energy Corp., Phillip and Linda Dever and Doris and Floyd Kimble Foundation were greatly appreciated.
The Ohio Oil and Gas Energy Education Program proudly acknowledged students from across the state as winners of their award at the 2012 State Science Day competition. Since 1949, State Science Day has been the pinnacle of student originated and inquiry-based science education. It is the academic equivalent of a state athletic championship, and is one of the largest of its kind in the nation. During the event, aspiring young scientists, grades 5 – 12, competed for more than $4.3 million dollars in awards and scholarships.
To qualify for one of OOGEEP’s awards, the students were judged on their scientific research, communication skills, and their outstanding work or knowledge about natural gas and/ or crude oil in the areas of geology, engineering, chemistry, biology and physics. OOGEEP presented the winners with cash prizes and certificates. To date, OOGEEP has presented over 105 awards to students representing 77 Ohio schools from 67 cities and 39 counties.
Page 54 July/August 2012Ohio Oil & Gas Association Bulletin – www.ooga.org
OOGEEP Oilfield Emergency Response Training Workshops The Ohio Oil and Gas Energy Education Program’s Responding to Oilfield Emergencies Training Workshops Spring Series were held March 31 - April 1, April 28 - 29, and May 19 - 20, 2012. Ohio took the lead in the U.S. by creating and implementing the nation’s first Oilfield Emergency Response Training program more than 12 years ago and features both classroom education and hands-on training with natural gas and crude oil props. OOGEEP’s permanent training facility is located within the Wayne County Fire & Rescue Regional Fire School, in Applecreek, Ohio. To date, over 865 Ohio emergency responders from 40 Ohio counties, and 7 other states have participated in OOGEEP’s unique training program. The training program is voluntarily funded 100% by Ohio’s natural gas and crude oil industry. Thank you for your continued support of this program.
The Ohio Oil and Gas Energy Education Program hosted the Spring/ Summer 2012 Industry Training Series on May 31 - June 1, and June 12 - 13, 2012. The two day event began with IADC Rig Pass with SafeLand USA Training. The International Association of Drilling Contractors Rig Pass program provided participants with a renewed outlook on safety, health, and environmental issues.
Each participant received a unique identification card that was individually numbered and entered into the national data base, along with the IADC Rig Pass participant guide. Day two consisted of an H2S Refresher, Hydrocarbon Monitoring Techniques, Condensate and HotWork Review and CPR/ First Aid Certification.
To help foster better natural gas and crude oil energy education, the Ohio Oil and Gas Energy Education Program (OOGEEP) designed and developed a specific education curriculum that meets both state and national science standards. The goal of these workshops are to connect science education to the energy industry. Over the past decade, there have been over 3,000 teachers from across Ohio that have participated in one of OOGEEP’s workshops, impacting thousands of Ohio students each year. OOGEEP hit a milestone this year, teachers from all 88 counties have now participated in an OOGEEP Teacher Workshop. During the workshops, each teacher received resource materials, classroom supplies, lesson plans, posters, DVDs, maps, CEU credits, optional Ashland University graduate credit, science standards, benchmark connections, internet links and activities. The six learning stations include hands-on experiments, background information, industry guest speakers, graphic organizer, internet activities and career connections. The free teacher workshops are funded 100% by Ohio’s natural gas and crude oil producers. OOGEEP’s most recent two day teacher workshop was held at Marietta College on June 13 - 14, 2012. Guest Speakers included: Rhonda Reda, OOGEEP, Steve Zody, Zody Geosciences, Sarah Tipka, A.W. Tipka Oil and Gas, Inc., Jane Hunt, Upper Arlington High School and Jeanne Gogolski, Education Partners, LLC. Marty Miller, Alliance Petroleum Corporation, helped coordinate the unique oil patch field trip that featured stops at Ken Miller Oil Supply (Scott Craycraft and Troy Poling), Ohio Oil Gathering’s Bells Run Station (Bob Gerst), Dominion’s Ludlow Compressor Station (Larry Blake), and trip to Elk Oil’s cable tool rig and shackle line (Roger Eddy). Thanks to everyone for making this event another great industry success! Due to lengthy wait lists, OOGEEP has added additional Teacher Workshops in 2012. The next workshops are August 8 - 9, at Belmont Harrison Career Technical Center in St. Clairsville, Ohio and September 24, at Renaissance Hotel during the Eastern Section of the American Association of Petroleum Geologists meeting in Cleveland, Ohio. For more information on OOGEEP’s Science Teacher Workshops, please contact OOGEEP at (740) 587-0410 or www.oogeep.org.
Page 56 July/August 2012Ohio Oil & Gas Association Bulletin – www.ooga.org