Posts tagged "Senate Bill 165"
The Sunday Shale Show: Guest Brian Hickman, Director of Communications, Ohio Oil and Gas Association
Sunday, March 17th, 2013 | 0 Comments
For The Sunday Shale Show this week, Energy in Depth sat down with Mr. Brian Hickman, Director of Communications, Ohio Oil and Gas Association.
Look at the way Ohio has tried to proactively look at oil and gas law we have SB 165, we have SB 315 and those two pieces in and of itself have been major upgrades in Ohio oil and gas law especially 165 had been real forward-looking pieces–Brian Hickman, OOGA
As Mr. Hickman acknowledged, there is great potential in the future development of our state’s shale deposits, and its potential is recognized worldwide, with more and more interest and investment coming in to the Buckeye State.
For this reason, OOGA and other organizations (like Energy in Depth) have placed a priority on educating the public about the industry, its practices, and the incredible benefits this continued development will bring for Ohio’s workforce and its communities.
Energy in Depth thanks Mr. Hickman for his efforts, and for joining us on The Sunday Shale Show. We look forward to continuing to work with those working directly or indirectly with the oil and gas industry to provide in-depth analysis of what’s taking place in Ohio (and beyond), and what it means for our communities and our state.
Stay tuned for The Sunday Shale Show next week!
The Sunday Shale Show: Guest Tom Stewart, Executive Vice President, Ohio Oil and Gas Association
Sunday, September 16th, 2012 | 0 Comments
Energy in Depth – Ohio sat down with Mr. Tom Stewart of the Ohio Oil and Gas Association on the Sunday Shale Show to talk about some the key issues of the day regarding natural gas development in Ohio and todays current regulatory structure.
Most people believe that Ohio now has the most stringent, our Governor likes to say that, the most stringent frac disclosure laws of any of the producing states here in the United States while still offering protections to people that engage in the industry – Tom Stewart, Ohio Oil and Gas Association
Energy in Depth – Ohio thanks Tom for joining us to talk about natural gas development and what impacts he and the association have seen to Ohio. Given today’s current regulatory structure and economic climate, Ohio has much to gain from the exploration and production of natural gas. These are exciting times in Ohio and with the associations help and leadership, the companies working directly or indirectly will surely continue to benefit because of all of this growth and potential.
Stay tuned for the next Sunday Shale Show!
Tags: Crude Oil, Energy in Depth - Ohio, natural gas, Ohio Oil and Gas Association, OOGA, Senate Bill 165, Senate Bill 315, Shale, Sunday Shale Show, Utica, Utica Shale, utica shale play eastern ohio energy in depth eid drill natural gas oil liquids economic prosperity jobs
Improved Regulations Set the Stage for Increased Shale Development
Saturday, September 8th, 2012 | 1 Comment
This month, Substitute Senate Bill 315 sponsored by State Senator Shannon Jones (R) takes effect creating the “Gold Standard” of oil and gas regulations in the country. This bill was introduced at Governor John Kasich’s request in March 2012. It was debated and changed as it moved through both the Ohio House and Senate, was signed into law in June, and becomes effective this month.
The law updates Ohio Revised Code Chapter 1509 on regulations governing crude oil and natural gas production. The legislation improves upon existing regulations already lauded by STRONGER, an EPA supported review group composed of state regulators and independent consultants. As the law goes into effect this month it sets a foundation of even stronger protection for Ohio’s environment in advance of continued Utica Shale development. Some of new requirements required under the law include:
Increased water protection:
- The permit application requires a report on anticipated sources of water and if that water will come from the Lake Erie or the Ohio River water shed. Because Ohio signed the Great Lakes compact with several other states, and parts of Canada, Ohio must return water taken from the Lake Erie water shed.
- In addition, other regulations put into effect this year prohibit oil and natural gas development in or under Lake Erie.
- The bill also requires water testing out to a radius of 1,500 feet from the well head. This is done to establish a base line water test for future use.
- On the well completion report all additives used must be disclosed on the completion report. This includes all materials used while developing until the surface casing is set.
- The additives used must be disclosed to the Division of Mineral Resource Management (DMRM) and will also be provided to Jim Zehringer, Director of the Ohio Department of Natural Resources, said:
I can assure Ohioans that our regulators will demand strict compliance with all aspects of this tough new law.
Smart, strong, and enforceable regulations ensure Ohioans health and safety while enabling the expanded production of natural resources from the Utica Shale. With no environmental violations to date, Ohio already has a strong environmental success record in Utica Shale development which will be further strengthened by these new rules.
Ohio Energy Development Providing Opportunities for Ohio Grads…Like Me!
Tuesday, March 20th, 2012 | 0 Comments
There are great opportunities developing for Ohioans in the oil and gas industry, especially for young people like myself. Last Thursday I had the opportunity to participate in the University of Akron. While working as an engineer on northeast Ohio building projects, I completed my courses by attending night classes, finalizing my masters project on advanced energy technologies. With experience in construction and my research work in energy, I am convinced great opportunities exist for Ohioans in the oil and gas industry. I am a graduate of Walsh Jesuit High School and soon the University of Akron with a bachelors of science in mechanical engineering. I plan to graduate once I secure a career opportunity, and judging from what I’ve seen, that opportunity is not something I will have to travel for.
The OOGA Winter Meeting showcased more than one hundred companies and 1,500+ industry contacts for me to speak with at the event. When I went around to booths introducing myself as a college student in search of a career opportunity many responded, “So and so needs one (or three) of those,” and “We are hiring!”. I can think of any other fields of expertise where this is the case in our current economy.
Leaders from industry, environmental organizations and state government spoke about the tremendous opportunity and numerous benefits for people in Ohio.
Worthy of mention are the very knowledgeable Ohio oilfield service companies and producers. They have been operating safely and responsibly utilizing hydraulic fracturing technology for over seventy years. We are also very fortunate to have great leadership in the Ohio Department of Natural Resources (ODNR). With their hard work and the help of other experts, national oil and gas regulatory peer review organizations have recognized Ohio’s regulations, as passed in Senate Bill 165, have much to offer other states in the way of proper guidance on stringent regulations designed to protect the environment.
I found the Ohio Oil and Gas Energy Education Program to be interesting and highly informative as well. They did an excellent job of educating someone new to the industry by informing me where the opportunities are, possible career paths, and relevant positions based on my experience. This was especially helpful as my master’s project was focused on advanced and solar energy technologies. After a detailed cost analysis on one of the most advanced solar cell technologies, it is no secret why current opportunities in solar energy are few and far between. I needed to regroup and determine other opportunities where my skills could benefit potential employers. It’s becoming clear these opportunities are here in Ohio.
I met representatives from transportation, construction, risk management, real estate, manufacturing, plastics, steel and not just oil and gas companies. This helped me understand the opportunities for Ohioans in developing the Utica Shale are bigger than either you or I can imagine.
It is encouragement I wish all of my fellow graduates could experience. However, in this economy, I am glad to have the opportunity for employment in Ohio energy, one of the few bright spots in an otherwise fledgling economy where folks like me are trying to gain a job to start a decent living.
Tags: American Jobs, EID-Ohio, Energy in Depth - Ohio, Hydraulic fracturing, Jobs, ODNR, Ohio oil and gas industry, oilfield services companies, OOGA, OOGA trade show, OOGA Winter Meeting, OOGEEP, Senate Bill 165
Athens County Commission Will Embrace Shale or Stagnation
Friday, February 3rd, 2012 | 5 Comments
I have a unique connection to Athens – it is home to Ohio University, mine and my parents’ alma mater– and of course it remains the home of friends, family and fond memories. I had all of this in mind when the Athens County Commissioners considered a proposal to restrict natural gas development.
The restrictions, of course, are being proposed by groups using false statements based in fear and speculation to halt natural gas development before it can even begin. Opposition groups use this tactic knowing that once development begins, and the benefits begin racking up, communities take notice and support shale development overwhelmingly. Especially communities like ours which have a long history of poverty, high unemployment and economic decline. Luckily for us, we already have a strong contingent of shale supporters- the not so silent majority- who will fight actions like the ones being proposed.
While at the meeting a lot of bad information was thrown around. Given that the Utica Shale has the potential to create thousands of new jobs and help return prosperity to Athens I feel compelled to correct some of the accusations thrown around as the stakes are pretty high in this game. Look no further than a new study which confirms that states, and communities, that responsibly develop their homegrown energy resources tend to do better economically than areas that do not.
At the meeting many claimed hydraulic fracturing is a new process. While the conversation is new, the process is not. As the old adage goes, folks are entitled to their own opinion not their own facts. The facts, according to ODNR and others, show that fracturing has been used in more than 15,000 Ohio wells since 1990 and in over 85,000 Ohio wells since 1953.
In all of these applications, and in over 1.2 million applications worldwide, there has never been a confirmed case of groundwater contamination caused by hydraulic fracturing. This has been reaffirmed by EPA Administrator Lisa Jackson, the Groundwater Protection Council and state regulators across the nation among many others.
The same process that has been used for years is used today, only now it’s more refined, precise and includes significant environmental safeguards. Fracturing solutions are composed of 99.5% water and sand with 0.5 % of solution. This is injected under pressure into shale formations to create tiny fissures allowing the oil and gas to escape. It is the same technique as used in the more common Clinton or Berea wells that have been developed in Ohio and Athens since the 1950’s.
It has been argued that horizontal exploration is new, and somehow alters the process into something entirely different. Again, this is not the case. Commercial use of horizontal well development was first practiced in France in 1983. Developing a well horizontally allows qn operator to access reserves while decreasing their environmental footprint. With one horizontally well, operators are now able to access the equivalent of what would have previously taken thirty-two wells.
Some tend to refer to the whole process of development as called hydraulic fracturing. It is important to point out hydraulic fracturing is only one step used in development and lasts just a few days, 3-5 to be exact.
There are several other misconceptions. One is that hydraulic fracturing solution is secret, kept behind lock and key. This is simply not true. Want to know what’s in fracturing fluid? Well, visit fracfocus.org to find a searchable well-by-well database of what’s being used in the fracturing process; you can also visit the Ohio Department of Natural Resources web page. Here in Ohio, State law stipulates that companies file a completion report, including the content of hydraulic fracturing solutions, to the state regulatory agency.
Another misconception is that groundwater is at risk during development. Section 1509.221 of Ohio Code clearly states:
“A well shall be constructed using sufficient steel or conductor casing in a manner that supports unconsolidated sediments, that protects and isolates all underground sources of drinking water as defined by the Safe Drinking Water Act”.
ODNR will only issue a permit if it concludes the extraction of oil and gas will not result in the presence of any contaminant in underground water where the presence of that contaminant may result in the system’s not complying with any national primary drinking water regulation or may otherwise adversely affect the health of persons. In fact, many operators in Ohio are currently exceeding the regulations in place to provide additional protections against groundwater contamination.
To be clear – there is NO “Haliburton loophole”. It has been suggested (incorrectly) that hydraulic fracturing was once regulated under the Safe Drinking Water Act (SDWA) and was strategically removed from SDWA. This is simply not the case. Hydraulic fracturing has never been regulated under the SDWA by the EPA in the history of the law or the agency. For the oil and gas industry, SDWA deals with the regulation of produced waters being disposed of via the underground injection control (UIC) program. Hydraulic fracturing has always been regulated by states.
The development of oil and gas is also regulated by the Clean Air Act and no less than six federal environmental laws. Under the Clean Air Act in particular, oil and gas operations are subject to the National Primary and Secondary Ambient Air Quality Standards and Standards of Performance for New Stationary Sources portions of the Clean Air Act just to name a few. In fact, Ohio EPA is currently in the process of implementing new air quality rules on oil and gas development.
I am hopeful my testimony was helpful in separating science and experience from speculation and falsehoods. I am hopeful that Athens County will act in the best interest of all its citizens and embrace the economic hope that natural gas development will bring to our region.
Stark County Forum Provides Valuable Information on Shale Development
Tuesday, November 15th, 2011 | 0 Comments
Last night at Robertson’s Heating and Supply in Alliance, State Representative Christina Hagen, (R-50th District) held a business forum panel discussion regarding natural gas development happening in the district. Sitting on the distinguished panel were nine well informed members from the natural gas industry as well as government representatives.
The panel members included:
- Larry Wickstrom, Ohio Department of Natural Resources
- Terry Fleming, Ohio Petroleum Council
- Matt Hammond, Chesapeake
- David Mustine, JobsOhio
- Joe Greco, Clean Harbors
- Tom Stewart, Ohio Oil and Gas Association
- Timothy McKeen, Steptoe & Johnson, Attorneys at Law
- Rich Frederick, Ohio Workforce Development
- Rhonda Reda, Ohio Oil and Gas Energy Education Program
The crowd of about 50 people was extremely interested in the topic and the event ran 30 minutes over the allotted time with a Q&A session. Stark County Treasurer Alex Zumbar and Alliance City Councilman Larry Dordea were also in attendance to hear from the panel.
The event began after a short introduction and welcome from State Rep. Hagen. Ronda Reda, who serves as Executive Director of OOGEEP, was the first speak and she used her time to give a brief overview of the long 150 year history of exploration and production in Ohio.
One of the most interesting slides in her presentation was a photo of a family from my hometown of Stow located in Summit County. In the photo the family put every product they use that is derived from crude oil and natural gas on their front lawn. Some say a picture is worth a 1,000 words; in this case this picture is worth 6,000 products, which are only available because of the oil and gas industry.
After the OOGEEP presentation several panel members discussed workforce development.
Rich Frederick and David Mustine shared that there are 80,000 job openings on the JobsOhio website that are unfilled because of a lack of trained workers. The same was said about the oil and gas industry where a similiar deficit exists. According to Frederick, to help close this gap there are 77 jobs programs in 13 agencies working to get people qualified and back to work.
Mustine shared with the audience that just down the road Stark State is setting up several training programs to address this issues by providing needed training to Ohioans so they can fill these jobs now and in the near future as the industry will need to fill a gap likely to be left by an aging workforce.
Providing needed training and qualification opportunities is critical as according to the OOGEEP economic impact study released this year, Ohio can expect to see over 205,000 jobs created by the oil and gas industry in the coming years.
Next Tom Stewart from OOGA explained that Senate Bill 165 , which updated rules and regulations governing the industry, that Ohio is ready to become very active in oil and natural gas production while safely protecting the environment. This is noticeable in the review of Ohio’s regulation by STRONGER, a workgroup consisting of state regulatory agencies, environmental organizations and industry groups, who found that Ohio’s regulations were “well-managed, professional and meeting its program objectives”.
Tim McKeen, the attorney on the panel, encouraged everyone to know their rights and hire attorney if they wanted to lease their property for exploration. Indeed, this is good advice especially considering most homeowners have no previous knowledge when approached with an oil or gas lease.
State Geologist Larry Wickstrom from ODNR was on-hand to explain the differenes between the Marcellus and Utica Shale.
Finally, Rep. Hagen closed the meeting by saying that development of the Utica and Marcellus Shale is the opportunity that Ohio and the 50th district have been needing for a long time. This is a game changer in Ohio and will require a skilled workforce, the right and reasonable regulation and most of all an industry committed to being a good corporate neighbor. Luckily, we have all these needed elements in place in the Buckeye State and are ready to move forward.
Tags: Alliance, Chesapeake, Clean Harbors, Economy, EID-Ohio, Energy In Depth, Jobs, JobsOhio, ODNR, Ohio Petroleum Council, OOGA, OOGEEP, Robertson's Heating and Supply, Senate Bill 165, Shale, shale gas, State Representative Christina Hagen, Stronger, workforce development
Shale Development Roundtable Highlights Ohio’s Success With Natural Gas Development
Wednesday, November 2nd, 2011 | 1 Comment
Yesterday we had an opportunity to attend a round table discussion at Lakeland Community College’s Holden University Center focusing on the development and production of natural gas from the state’s shale resources. The event was sponsored by Congressmen Bob Latta (R) and Steven LaTourette (R) and included insight from many industry professionals, state officials and other key stakeholders who discussed early successes and plans for continued responsible development of our natural gas resources.
A major highlight of the event included testimony by representatives from several local small businesses, oil and gas industry professionals, regulatory and state governmental officials. While many topics were addressed one central theme resonated loud and clear – natural gas development from Ohio’s shale resources, if done well with sensible regulations, will help to revitalize our communities and provide new opportunities for the 535,000 hard working Ohioans currently looking for employment.
The roundtable provided an opportunity not only to plan but also to discuss indirect impacts that will affect upstream, midstream and downstream assets as well as local businesses and suppliers that will provide needed materials for well completion. Several panelists confirmed this experience in other parts of the country and indicated Ohio would see these impacts expand significantly within the next few years as exploration, development and production grow all over the state.
Indeed, although we are still in the early stages of development we are already seeing these impacts on sectors that have long been staples of our economy. Sectors like the manufacturing and local steel industry are already seeing significant increases in their business leading to expanded hiring. In fact, some cities in Ohio, like Steubenville, are seeing very significant upticks in employment and opportunities for their residents. As a result of the safe and responsible development of Ohio’s shale resources the city recently experienced an uptick of hundreds of jobs resulting in the community experiencing the second largest drop of unemployment in the nation!
Panelists also discussed the need to ensure that all Ohioans have an opportunity to gain from the benefits that increased production will bring. They highlighted that it is critically important for the state to have an effective workforce development and educational network in place to ensure this outcome. Such a system helps folks learn new skills and prepare for these new challenges. David Mustine of JobsOhio was on hand to provide perspective on the resources currently available. He provided a thorough rundown of the 77 job training programs located in 13 different state agencies that exist to help people find and qualify for work.
In addition, panelists discussed the importance of a strong educational network supporting natural gas development through workforce traning, and technological research and development to name a few. Panelists highlighted how Ohio’s colleges and universities are rising to meet this opportunity and have begun developing new programs to ensure that local residents have the education they need to capitalize on this historic opportunity. The development of new programs are a welcome addition to complement those renowned programs that already exist in our great state. One example is the industry leading Marietta College’s petroleum engineering program. This program is one of the oldest of its kind in the Nation and last year 100% of its graduates found jobs with over 70% of those jobs in the oil and gas industry according to Terry Fleming of the Ohio Petroleum Council.
Of course none of this would be possible if Ohio did not have strong state regulations in place to ensure natural gas development is done responsibly. These regulations were recently strengthened by the passage of Senate Bill 165 which passed with broad bi-partisan support and recieved positive reception from industry and environmentalists alike. This will only add to, and strengthen, our state’s existing regulatory portfolio developed by committed folks like Rick Simmers of the Ohio Department of Natural Resources (ODNR). Rick and his team sat down over four years ago and conducted extensive reviews to write a plan to structure, staff and fund a strong regulatory program based on lessons learned from other states. The program he and his team put in place is working in Ohio, a fact that was confirmed when STRONGER reviewed our states regulation in January 2011.
STRONGER is a non-profit, multi-stakeholder organization that assists states in documenting the environmental regulations associated with the exploration, development and production of crude oil and natural gas. In their review the group found:
Ohio’s program is overall well managed, professional and meeting its objectives.
They also made note of many areas of strength for our regulatory system including strong enforcement tools, review of contamination pathways and comprehensive well completion reporting requirements to name a few. Facts like these give credence to the statement made by Scott Rotruck of Chesapeake Energy that “Ohio has all of the tools we need to operate in a predictable business and regulatory environment”.
All in all yesterday’s conversation was a great experience and will help ensure that industry, government and other non-governmental agencies continue to work together to ensure natural gas development in Ohio is done correctly maximizing the benefit for all. This roundtable was not only educational but is also a reflection of what has happened all over our state and in the state house in Columbus. Shale and its development is the conversation of the day in every part of Ohio and events like this discussion, and those like it occurring in homes across our state, will ensure we continue to successfully and safely develop this needed resource.
Tags: Chesapeake, Congressman LaTourette, Congressman Latta, EID-Ohio, Greater Cleveland Partnership, Jobs, JobsOhio, Lakeland Community College, Marietta College, ODNR, Ohio Petroleum Council, OOGA, Senate Bill 165, shale gas, Stronger, Utica Shale
OOGA Chief Lays Out the Facts on the Ron Ponder Show
Wednesday, October 12th, 2011 | 0 Comments
Earlier today, Tom Stewart — executive VP of the Ohio Oil and Gas Association and our fearless leader here at EID Ohio — sat down for a quick chat with Ron Ponder, the popular host of “Points with Ponder” on WHBC in Canton. Here’s a link to the full audio: http://www.youtube.com/eidohio#p/a/u/0/1B2iyPKowvE
Below are a few highlights from that interview, which focused on separating some of the myths from facts on the responsible development of the Utica Shale in Ohio – along with some bits about the history of fracturing technology in America, and the tremendous economic and employment potential of this homegrown Ohio resource:
Ponder: This [hydraulic fracturing] issue is not going to go away and we always cover it from both sides of the issue so give us an idea and tell us who you represent and what your position is on [hydraulic fracturing]?
Stewart: I represent the Ohio Oil and Gas Assocation and since the 1940s it has advocated on behalf of independent oil and gas produces – anybody that is engaged in the process of exploring for, developing and producing oil and gas resources in the state of Ohio. I also serve as the Executive Director of Energy in Depth — a grassroots campaign to get information out on the subjects we are talking about.
Ponder: So, now we can automatically assume that you are a pro drilling and a pro [hydraulic fracturing] person? Tell us why.
Stewart: I am pro American energy and pro jobs. I am pro reliable energy. Ohio has a fantastic opportunity with Utica shall development to provide more of what we already have been providing for the state of Ohio which is locally produced resources – primarily natural gas and oil – that are being used here within our borders. With the development of major new technologies we are unlocking the key to a very dense formation that contains a lot of oil and gas but the technology was not there before to get it out and the industry has developed that technology and it will be a very meaningful event for the state of Ohio.
Ponder: You mentioned the Utica Shale but also the Marcellus Shale formations, all of the reports I have read indicate a vast amount of trapped oil and gas beneath the surface. Now the issue here is, I think, is [hydraulic fracturing], can you explain the fracking process to our listeners?
Stewart: Hydraulic fracturing is a process that has been in place since 1947. The first wells hydraulic fractured in the state of Ohio begin in 1952 or 1953. Since that time, there has been over 80,000 wells hydraulic fractured in the state of Ohio. The reason you would frack a well is, you attempt to create permeability – a pathway through resource rock where the permeability does not exist to allow oil and gas to move through the rock and into the well boar. In a lot of reservoirs, like the Clinton sandstone right underneath your feet there in Stark County, there is a lot of oil and gas… that probably came from a source rock below it called Utica Shale. It’s trapped in the Clinton but the permeability characteristic does not allow it to move [freely] so you frack the well to open-up a pathway through the rock [which]allows the oil and gas to come to the well boar and produce in economic quantities.
Ponder: Now the governor just placed $1.7 million additional in the budget for the monitoring of these wells. How confident are you that the ODNR has the resources, the man power, the technology resources to adequately monitor the fracking ?
Stewart: Very confident. In Senate Bill 165 last year… which 118, out of 130 members of the general assembly voted for, so a large bi-partisan majority… doubled funding from the industry to the regulatory program and lock boxed, in matter of fact. In addition… the bi annual budget bill that was just enacted back in June, there was additional money that was brought over from the general revenue funds to give the resources to the oil and gas regulatory program to immediately staff-up and address a lot of specific issues that need to be addressed as this shale play gets up on its feet.
I think that money will eventually be expected to be returned primarily through future severances taxes. So before shale became a huge issue, the resources were doubled-up to make sure they had the resources to protect the public trust.
In Senate Bill 165, which was probably the most significant amendment to oil and gas law since the oil and gas chapter was created in 1960′s, there were specific issues addressed, including the big one, which is well construction and two, frack disclosure where any citizen can go in and look at the public record on well completion reports and find out how the well was fracked, what constituents went into the frack, at what point they went into the frack and in what concentration. You can also get what is called the “frack chart,” which shows you pressure and rate over time. So if there is an incident that happened during that stimulation job out on a well [on a given] day it would show up on that chart. S0 so the complete record is there.
In addition, at the request of the Ohio Environmental Council, an amendment was added to Senate Bill 165 that provides for disclosure of all chemicals that are used [in the hydraulic fracturing process]… which are posted up on the ODNR website. That’s in addition huge advances in enforcement authority that were given to the oil and gas regulatory program to make sure that if there was someone creating a problem, that they have the full tools underneath the law to pursue that person and seek corrective action and take action on behalf of the public trust.
All of that was validated by a peer critique that brought the environmental community and regulators from outside the state of Ohio, industry, U.S. EPA and U.S. DOE . [They found] that the oil and gas regulatory program, and specific to hydraulic fracturing revisions in Senate Bill 165… that the regulatory program was very well managed and was meeting its program objectives. It also had a lot to recommend to other states on how to do it right. This was signed off on by the environmental community.
Ponder: The person who did this presumably had no dog in this fight he is objective?
Stewart: It was an organization called STRONGER — The State Review of Oil and Natural Gas of Environmental Regulations – that brings stake holders together to actually do something constructive to improve the situation, instead of trying to destroy the situation. There were environmentalists involved, including an environmentalist from the Oil and Gas Accountability Project and Earthworks… The person that lead the review team is one of the founding members of Earthworks and the Oil and Gas Accountability Project. They signed off on that report saying that the Ohio program is meeting its program objectives and has a lot to recommend to other states.
Ponder: Let us quickly turn our attention to the subject of jobs. I have heard all kinds of projections on how many jobs that the drilling industry is going to increase here in the state of Ohio do you have an estimate?
Stewart: We can talk about that. Let us call it the oil and natural gas exploration and production industry. Drilling is part of that and fracturing is a one day event in the life of a well. [Hydraulic fracturing] is a well stimulation process, it does not have anything to do with drilling and very little to do with production. It is just a well stimulation process to get a well to produce, then you’re done.
There is an economic study that came out which was conducted by Kleinhenz and Associates out of Cleveland. They do a lot of this kind of work for a variety of industries that updated a study that OOGEEP did in 2008… They estimate that if the Utica comes around, as many people expect it to do, that it could generate upwards of 204,000 jobs. That is a significant event for the state of Ohio.
Ponder: 204,000 jobs
Stewart: That is a lot of jobs.
Ponder: That is a lot of jobs.
To listen to the the interview, click HERE.
ODNR, Farm Bureau Road Show Makes a Stop in Z-Ville
Friday, October 7th, 2011 | 0 Comments
Dale Arnold, energy policy advisor for the Ohio Farm Bureau Federation, and Mike McCormac, oil and gas permitting manager for the Ohio Department of Natural Resources (ODNR), have been traveling the state talking to audiences about the safe and responsible development of energy from shale. It’s a road show that has taken them from Portage County all the way to Belmont County — with each stop an opportunity to chat with farmers and answer any and all questions related to the development and leasing process.
One of their meetings was recently held in Zanesville, Ohio. The crowd was a mix of farmers and locals interested in hearing about this new investment in eastern Ohio. The program was very informative focusing on leasing issues and the safety of oil and gas exploration in Ohio.
Mr. Arnold’s presentation focused on the energy market, leasing and what the farmers should look for when leasing their land. His interests are mostly in protecting the farmers and making sure the landowners get the best deal on their lease. The best recommendation he tells the crowd is to get an attorney involved when reviewing the lease. Dale is honest about shale development and is able to put a difficult subject matter into an easily digestible presentation.
Educating the crowd on hydraulic fracturing and horizontal drilling, Mr. Arnold addressed the rumors regarding the practice. He informs the crowd hydraulic fracturing has been around since the 1950s in Ohio. He confirms that the fracturing solution is composed almost entirely of water and sand — on average 99.5 percent — with the remaining 0.5 percent made up of materials and products you could just as easily find at the barbershop. He urged folks to go to www.askchesapeake.com for more information on the process.
The second part of the presentation features Mike McCormac detailing the history of energy development in the state, as well as what to expect in the future from the Utica. Most of what Mr. McCormac’s talks about relates to Senate Bill 165, which passed the Ohio legislature in 2010 and was signed into law by Gov. Strickland. SB 165 represented a major update and revision to Ohio oil and gas law, strengthening what was already considered one of the most robust regulatory programs on oil and gas in the country (a fact confirmed by the recent independent review of the state’s regulations by the stakeholder group STRONGER).
The presentation was very informative, providing honest, straightforward answers on the most important questions of the day. The program lasted roughly 1:45 with about 15 minutes at the end for questions and answers. If the Ohio Farm Bureau Federation and Ohio Department of Natural Resources road show comes to your town, I strongly recommend attending.