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BLM Wayne National Forest Competitive Bidding Dec 13

Posted By Penny Seipel, Vice President of Public Affairs, Monday, November 21, 2016
Updated: Wednesday, November 23, 2016

As many of you have likely already heard, The Bureau of Land Management will be offering up for lease 1,600 acres located in the Wayne National Forest.  The competitive bidding process will take place on December 13, 2016 beginning at 8:00 AM EST via internet only.  There will be a total of thirty five parcels up for bid that day with the acreage in the Wayne National Forest comprising thirty three of those parcels. 

If you are interested in participating in the competitive leasing process you will need to register at www.energynet.com/index.pl. If you are interested in watching the competitive bidding process you will also need to register. 

Important facts to know in advance:

Each acreage block will be open for only three hours (with start and stop times clearly delineated on the website) and bidding will close consecutively for the parcels so that bidders will know if they if they are the highest bidder before the next block closes. 

Information on the exact time of the bidding process for the lease will be available on the website up to ten days in advance of the scheduled sale.

Parcels are sold in the entire acreage block and rounded up to the next whole acre. A list of acreage blocks can be found in this BLM Notice of lease sale as well as more comprehensive information about the leasing process and restrictions on the acreage blocks.

Minimum bid is $2.00 per acre and minimum increments for bidding thereafter are $1.00 per acre.

You cannot withdraw a bid once the system determines that you are the high bidder.

Winners will know if they have successfully acquired the lease by the end of the lease sale.

If you are the highest bidder, fees due include the minimum bonus bid of $2.00 per acre or the highest bid if greater, a first year’s advance rental of $1.50 per acre and a non-refundable administrative fee of $160.  Winning bidders must provide how they will make payment by 4:30 PM EST on the day the auction closes. 

There are a number of restrictions for drilling in the Wayne National Forest which is also dependent on each acreage block. If your company is interested in bidding on any of these parcels, we would encourage you to review those restrictions in the BLM Notice of lease sale pamphlet.

Happy Bidding! 

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Trump, Republicans Enjoy Historic Election Night

Posted By Brian Hickman, Director of Government Affairs, Operations Managing Director, Monday, November 14, 2016
Updated: Wednesday, November 16, 2016

In the most historic presidential election since 1948, Republican Presidential Nominee Donald J. Trump defeated the Democratic Nominee Hillary Clinton in a shocking upset.

Several factors culminated into creating the environment for a Trump victory. These factors included heightened voter turnout in rural areas (which overwhelmingly support Trump), lower voter turnout in urbanized areas and Democrats as a whole, and undecided voters, who ended up supporting Trump by roughly a 2-1 margin. 

In his acceptance speech in the early hours of Wednesday morning, President-Elect Trump noted that “Now it’s time for America to bind the wounds of divisions. It is time for us to come together as one united people.”

Trump went on to say that, “the forgotten men and women of our country will be forgotten no longer,” while citing a need to “reclaim our country’s destiny.”

At the state level, the Republican majority in the Ohio House of Representatives grabbed another seat to bring their total to 66 out of a total 99 seats. Jay Edwards, candidate for the 94th House District, was successful in gaining the seat while incumbent Republicans on the ballot held their respective seats.

The Ohio Senate also gained a seat on election night, which brings the republican majority’s total to 24 seats out of 33. Republican Frank Hoagland was successful in his attempt to oust Senator Lou Gentile in the 30th Senate District. Current State Rep. Stephanie Kunze and former State Rep. Matt Dolan were the other Republicans in perceived tight Senate races. However, both cruised to being elected to the Ohio Senate.

Incumbent Republican Chief Justice Maureen O’Connor, along with two newcomers, have won election to the Ohio Supreme Court. Judge Pat DeWine, a current justice on Ohio’s 1st District Court of Appeals, bested his Democratic challenger Judge Cynthia Rice, by a 56%-44% tally. Judge Pat Fischer is currently ahead of Democrat Judge John O’Donnell by roughly 24,000 votes. The outcome of this race will come down to provisional ballots when it is all said and done.

Finally, voters spoke yet again on a local charter amendment issue supported (again) by the Community Environmental Legal Defense Fund (CELDF). Again, the amendment failed by a (again) large margin of almost 11%. This is the sixth time their effort has failed. The cost to the taxpayers in Youngstown is now at a staggering $95,000 after having been required to place all of six issues on the ballot.

 

For a full election report, be on the lookout for the next edition of the OOGA bulletin.

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Member Spotlight: David Ballentine, Northeast Ohio Oilfield Service, Inc.

Posted By Lyndsey Kleven, Communications Coordinator, Monday, October 31, 2016
Updated: Tuesday, November 1, 2016

The member spotlight series features legacy OOGA members who have been a member of the Association for at least 10 years. If you would like to recommend someone to be highlighted, please contact Lyndsey Kleven lyndsey@ooga.org

 

Background information:

 

David Ballentine was born and raised in the Mantua/Shalersville Township area in Portage County. He attended Crestview High School and has stayed around the area much of his life. Dave was raised on a dairy farm and knew pretty early on that farming was not going to be his chosen career path. Originally Dave didn’t know a lot about the oilfield business, as he had no ties to the industry. In 1975 Frontier drilled a couple wells on his family’s farm and as a young child he explored around the wells.

 

After graduating from high school Dave went to Ohio Diesel Tech in Cleveland Ohio and became a certified diesel mechanic in 1983. He then started working for a guy named Robert Bossow who owned many different businesses. One of Bossow’s ventures included a dozen investment wells he drilled around his shop in Freedom Township. Dave was hired as his mechanic but soon after Bossow purchased 22 miles of railroad track Dave’s business intelligence really shone through.

 

Bossow found himself with 22 miles of slag (after the steel and ties were sold off) and nothing to do with it. Dave was at lunch in a spot he frequented in Garrettesville and overheard some guys from Lomak Petroleum Inc. talking about how they needed to find slag for all their lease roads.

 

Dave introduced himself and proclaimed, “I’ve got all the slag that you could possibly need.”

 

This lead to a great deal of business for Bossow and Dave, and in 1984 they put in all of the lease roads for 186 wells that Lomak Petroleum Inc. owned. This was essentially what got Dave in the door of the oilfield.

 

“I originally started as Bossow’s mechanic and once I put the lease roads in, I started out being ‘just some kid,’ to a guy that made him a good profit getting rid of all the slag. I went from zero to hero in a matter of no time at all, which was my stepping stone to do other things.”

 

In working with Lomak, Dave made connections and learned of the shortage of water trucks the industry was facing. He convinced Bossow to buy some water trucks, so they got six trucks and had twelve drivers and operated 24 hours a day. They started Bossow Oil Management, got a UIC number and stayed very busy.

 

In 1986 Dave decided he was going to go into business on his own and sat down with Bossow to tell him his intentions. Dave planned to buy his own trucks from a company bankruptcy, but Bossow offered for Dave to purchase Bossow Oil Management since he was truly the original founder. The two were good friends; Dave bought Bossow Oil Management with supplementary financing from Bossow.

 

Work History Overview:

 

In 1985 Dave had started a production company B&B Oilfield Service and had almost up to 100 wells at one time. Managing the production and still running the Bossow Oil Management water trucks, Dave took ownership of the business and it became Northeast Ohio Oilfield Services, Inc. During the process Dave drilled a couple wells for Bossow with Dick Davis acting as Dave’s mentor as he was starting out. Davis also helped Dave with his first disposal well in 1986.

 

“Back then there were so many people that were always willing to help you or offer suggestions. It was a whole different business back then. Everyone was looking for help, they were busy.”

 

B&B Oilfield Service consisted of primarily Northeast Ohio production wells in Portage and Trumbull Counties. Dave focused on this aspect for the next few years, buying wells from companies that purchased them solely for tax benefits. Before the Persian Gulf War, oil was cheap and then skyrocketed as an effect. Dave started to sell of the majority of his production as the war was ending. Since then he’s only had 4-5 producing wells. In the 1980s Dave got his first disposal well, and acquired a handful (6-8) more throughout the years.

 

When the industry was facing a downturn in 1989, Dave bought some dump trucks and semi-tractors and started multitasking by doing a bit of aggregate hauling. In 1990 Dave stopped renting shop space from Bossow and built his own facility, which is where he still operates out of today. Northeast Oilfield Service generally operates with eight employees, including Dave’s son Marcus.

 

“We’ve been very fortunate over the years. We have a great customer base that have been loyal customers to me since the day I got in business, and we still work for them and have great relationships. Don Kreager has also been a great mentor, helping me complete all my disposal wells and guiding me into the shale age.”

 

Dave’s children were involved with the business as they were growing up. His daughter Amanda got an accounting degree from the University of Akron and worked for Dave while she was in college and as a full-time accountant a few years following. He has another daughter Jessica who is an ultra sound technician at Akron Children’s Hospital. Marcus was always more interested in the trucking side, and recently bought the dump trucks from Dave last fall, so Dave and his son still often work together.

 

“The part about the oilfield that is so enjoyable for me is that fact that the people are very friendly. It’s like your second family. It’s such a wonderful community of people to be involved with that would do anything for you to help you. Which is why I’ve always loved the oil and gas industry, the people are so fantastic.”

 

History with the OOGA:

 

Dave has been a member of the Ohio Oil and Gas Association since he started working for Bossow Oil Management in 1984. He was involved on the UIC workgroup and has served on the OOGA Board Of Trustees since 2014.

“The Association does a lot of good things. It has changed some over the years, but it’s always trying to help the local producers and now the shale producers. If you’ve got a problem you call the Association and they help you resolve whatever issues you may have.”

Dave feels now its even more important for OOGA to be involved as the industry has become more political over the years. Dave praised the Energy In Depth program in helping advocate for the industry. Energy In Depth has been helpful attending public meetings and in dealing with protestors at community meetings or specific work sites. Dave recognized this as the kind of program that stands out, is helpful, and doing something for the members of the Association.

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Getting the Next Generation Engaged in the Oilfield

Posted By Mike Chadsey, Director of Public Relations, Monday, October 24, 2016

How just one day can, turn “I like” into “I love” for the oil and gas business

Recently, on a cool Saturday morning OOGA President David Hill and I took students from the geology programs of Muskingum University and Kent State University on a series of oilfield site visits. The idea behind the trip came from a couple of talks David and I gave at Kent State (my alma mater) and Muskingum (David’s alma mater) awhile back. At the conclusion of the discussion and questions the idea of showing the students what was happening in the field was an opportunity neither they nor us could pass up. This is the second time we have hosted this trip. The first was just with Kent State, while this year we were able to add Muskingum. Hopefully from here, it continues to grow.

First location:

We started with visiting a PDC Energy Utica Shale production pad just on the outskirts of Senecaville in the heart of both Guernsey County and the shale gas play. David was able to show the students how the well was put into production, the equipment on site to manage that production as well as the state of the art technology used to make it all work. 

Second location:

David took us all to one of his Clinton Sandstone wells. He was able to show the students at this location the technology used to make this well pump and function. Here he took the opportunity to discuss the difference in wells from the first location to the second. We then moved further into the farmer’s field to check out the tanks and meters he had on site. 

Third location:

Lastly, David showed us his Class 2 Injection well. As he shared with the group, “you can’t have production without injection”. Here we watched as one of the delivery trucks unloaded and then we moved into the pump house to see how the fluid was moved from the tanks down the wellbore. Here everyone was able to see how the entire site functioned. Then we moved outside and down the hill to look at the well head. Here David was able to show how everything was managed as he pointed out to the equipment and gages. 

Then it was off to lunch (and to warm up as the cool turned to cold as the day progressed) to discuss what our guest saw today as well as what is happening in the industry. Many of the questions surrounded when will the industry come back and what will it look like when it does. The very inquisitive bunch asked about internships, who was active in Ohio, how do they get involved and what are some of the best classes to study.

Afterwards as everyone said their thanks and good byes and made their way outside to make the trek back home, I asked David what he thought of the day and what motivates him to spend a Saturday missing his grandson’s playoff football game to do this. Check out his President’s comments in the next bulletin to see his response. 

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OOGA Member Alert

Posted By Penny Seipel, Vice President of Public Affairs, Monday, October 10, 2016
Updated: Tuesday, October 11, 2016

As part of the development of the Obama Administrations “Methane Rules” for existing oil and gas sources, the US Environmental Protection Agency (US EPA) is preparing to conduct an information collection request (ICR) from the production, gathering, processing and pipeline segments of the oil and gas industry.  

In preparation, the US EPA has developed a mailing list for each industry segment included in the ICR as outlined below:

  • Production: List of production well operators.
  • Gathering and Boosting: List of parent companies expected to have gathering and boosting facilities.
  • Processing; Compression; Underground Storage; LNG: List of individual facilities within each sector.
  • Pipeline: List of State-level pipeline companies.

Currently, the Agency is requesting that companies register for the online database so that they can review their information and correct any potential errors.  US EPA acknowledges that some of the information may be outdated or inaccurate or that the individual who is listed as the company’s contact may not be the appropriate person to receive the ICR.

If you or your company are included in this database, you will be required to complete the information collection request so it would benefit you to verify the accuracy of the information.  Once the initial ICR is sent out, respondents will only have 30 days to complete the initial survey.

The EPA is specifically requesting that companies add any missing production well operators, parent companies of gathering and boosting facilities, and individual facilities or pipeline companies for the other industry segments into the mailing list.

Please note that even some individual domestic well owners are included on the US EPA’s list.

US EPA is currently seeking approval from the Office of Management and Budget’s Office of Information and Regulatory Affairs (OIRA) for this ICR.  Once it is finalized, there will be two parts to the ICR.  Part 1 will collect corporate and operator-level contact information as well as counts for key equipment (e.g. wells, tanks, and compressors) at each facility owned or operated by that operator. Part 2 will collect detailed unit-specific information on emission sources at selected facilities as well as information on emission controls or management practices used to reduce emissions at the selected facilities.

The ICR seeks a broad range of information such as how equipment and emissions controls are, or can be, configured, and what installing those controls entails, including the associated costs. This information will help the agency determine how best to address methane emissions from the oil and gas industry, including through rulemaking to reduce emissions.

The agency is seeking information on numerous sources and activities, including natural gas venting that occurs as part of existing processes or maintenance activities, such as well and pipeline blowdowns, equipment malfunctions and flashing emissions from storage tanks. EPA also is seeking information on existing low-producing wells.

This website provides links to the revised ICR and other supporting documents.

OOGA is currently working with the Independent Petroleum Association of America to submit comments.  If members would like to comment on the revised ICR before OIRA, comments must be submitted by October 31, 2016. 

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EID Report: Sales Tax Revenues Grow 65 Percent in Utica Shale Counties

Posted By Guest Blog: Jackie Stewart, Energy In Depth Ohio, Monday, October 3, 2016
Updated: Tuesday, October 4, 2016

Since Utica Shale development took off in 2011, companies have been investing a tremendous amount of capital in eastern Ohio. Billions of dollars have been spent developing well sites, creating much-needed infrastructure, standing up regional headquarters for service companies, and constructing hotel and restaurant chains. In addition, landowners and municipal governments have benefited from lease payments.

These investments across the board have resulted in an uptick in sales activity, and therefore have created a surge in sales tax revenues. According to data obtained from Ohio Department of Taxation’s sales tax distribution website, EID research shows that over the past five years shale counties have realized a 65 percent boost, thanks in large part to the investments made by the oil and gas industry.

During the same time frame, the counties without shale development realized a 37 percent increase in their sales tax revenues. In other words, shale counties had nearly twice the boost that non-shale counties had, underscoring the importance of oil and gas development to these revenues.

sales-tax-revenues-chart-2011-2015-js

Methodology

EID analyzed the Ohio sales tax distributions in shale counties over the time horizon of FY2011-FY2015, as this is the most up-to-date data available.

We analyzed each year-over-year percentage change during that time period for the selected shale counties as compared to the rest of the counties’ allocations to determine if there was a relationship between oil and natural gas activities and growth rates in sales tax revenues in the identified shale counties.

We identified shale counties, as the shale counties which have experienced the most oil and natural gas activity as it relates to production of wells and related services. For this research, we included Belmont, Carroll, Columbiana, Guernsey, Harrison, Jefferson, Monroe, and Noble counties. It is important to note that several other counties have also experienced oil and gas activities, such as Mahoning, Trumbull, and Washington counties. However, these eight counties have been the core of the development in Ohio.

Top Level Findings

Our research shows a direct correlation between activity from oil and gas investment and sales tax revenues. Shale counties realized a 65 percent boost over five years, as compared with the overall state counties which realized a 37 percent increase over the same period of time. In fact, even last year, when pundits were quick to call the Utica shale exploration a so-called “bust”, shale counties still outperformed the statewide year-over-year percentage change, demonstrating that oil and natural gas investment has had a lasting positive impact on the communities where it occurred.

As EID previously reported, the sales tax allocation that the state pays to each county is only a small fraction of the overall sales tax actually paid by consumers. In fact, the state of Ohio keeps the majority of sales tax revenues for their general fund. Here’s how that works: a business in Carroll County pays 6.75 percent in sales tax revenue so a $100.00 sale requires $6.75 in sales tax. The business sends that $6.75 to the state of Ohio and the state takes $5.75 and returns $1.00 to the county where the business is operating. The reason this is important to note is that a 65 percent boost in sales tax to Belmont, Carroll, Columbiana, Guernsey, Harrison, Jefferson, Monroe, and Noble counties, is in fact a boost to the entire state, because the state of Ohio keeps the vast majority of the tax collected; only a small fraction is returned to the counties.

In short, thanks to shale, Ohio’s statewide coffers have grown by millions.

County Breakdowns

sales-tax-revenues-2011-2015-js

Looking closer at the data, it was evident how oil and gas activity is directly correlated with higher revenues, giving a hand-up to some of the hardest hit counties in Ohio. Take a look at Monroe County, for example, where sales tax revenues jumped over 320 percent over the past five years. That’s because Monroe County has some of the best production Utica shale wells in the state. Harrison County, where MarkWest has stood up a corporate office and invested over $2.5 billion to date in Ohio, and is employing local residents in the community, also saw a 252 percent boost.

It’s not just drilling activities driving the economy; it’s the ripple impact from the industry that has inspired confidence into these areas. Communities like St. Clairsville, Ohio, where hotels, Starbucks, retail centers, and more have come right along with the staggering well production from Utica shale wells.

To put this into perspective, if the entire state of Ohio realized the same growth rate in sales tax revenues of these nine shale counties, Ohio would have experienced over a billion dollars in sales tax revenues going directly to the counties. The state of Ohio would have realized over $6 billion in additional taxes to the state’s coffers, over the past five years.

So, to echo a new report released from the US Chamber of Commerce entitled “What if America’s Energy Renaissance Never Actually Happened?”— if the American energy renaissance never actually happened over the past five years, these nine counties in eastern Ohio would have not realized the millions in tax receipts they have experienced and the state would have missed out on millions more.

As Rep. Johnson, a member of the House Energy and Commerce Committee, recently stated,

“The bottom line is this: The energy renaissance that has happened in the Marcellus and the Utica shale—that is what has brought Ohio back, in my opinion. “

EID’s new report underscores (yet again) that the Keep It in the Ground activists are completely out of touch with the people who live and work in Ohio. We challenge these groups to debate our findings and try to contest the obvious positive correlation between investment from shale and sales tax revenues that benefits both the entire state, as well as the counties directly.

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Member Spotlight: Charlotte M. Pierce, Mason Producing Inc.

Posted By Lyndsey Kleven, Communications Coordinator, Monday, September 26, 2016
Updated: Tuesday, September 27, 2016

The member spotlight series features legacy OOGA members who have been a member of the Association for at least 10 years. If you would like to recommend someone to be highlighted, please contact Lyndsey Kleven at lyndsey@ooga.org

 

Background information:

 

Charlotte Mason Pierce grew up in the oil and gas industry and is the third generation of her family working in the business. Her father John Mason started out in the business as a contract driller, later working himself up to being a producer and having his own wells. The first job he landed was working for Henry Lightner (Charlotte’s grandfather), fellow oilman, welder and machinist. John later married Lightner’s daughter and ran a family-owned business with Henry. Additionally John had uncles that were in the business around Fairfield and Logan Ohio.