the northeast ong marketplace - august 2014

PRSRT STDU.S. POSTAGE PAIDBECKLEY, WV 25801

PERMIT NO.19

CHANGE SERVICE REQUESTED

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

NEW TECHNOLOGY - 8 Environmental Tank & Container Introduces: Legal Load Tanks

WATER MANAGEMENT - Pages 6-7 Advanced Aeration in Flowback Impoundments

ONG SPOTLIGHT - p 3

HEALTH & SAFETY - 10-11

ENVIRONMENTAL MANAGEMENT - p 12

INDUSTRY INSIGHT - p 16

LEGAL & FINANCE - p 24-25

ALTERNATIVE FUELS - p 28-29

The Northeast ONG Marketplace

APPROXIMATELY 90 PERCENT OF THE UNITED STATES’ PROPANE SUPPLY IS PRODUCED DOMESTICALLY

Creation or Evolution, Why Not Both?Joe Eddy, President/CEO, Eagle Manufacturing Company

Managing one of West Virginia’s oldest manufacturing companies, I am often asked “what is the main reason for Eagle’s long-term success?” I answer this question with a question, “Why do you think we are here, Creation or Evolution?” Perplexed or offended, I then ask them, “Why not both?”

Created with intelligent design, Eagle’s foundation was laid with the right people, resources and products, for all the right reasons. The founders instilled leadership process, principles and tradition in an extraordinary workforce focused on integrity, innovation, work ethic and service. With these principles in place, the innovation process led to the company’s innate ability to evolve.

Evolving as industry changed over the years, Eagle has been successful by not only having the ability to change and adapt, but by eagerly promoting and embracing change. This holds true for any successful company, product or process. As great as it was originally conceived or created, it must evolve and adapt to its changing environment for continued progress to occur.

An Innovative History-Tied to Oil/Gas: Chartered in 1894, Eagle Manufacturing Company was founded by three innovative brothers-James, Harry and Samuel Paull, and 120 years later is still owned by third and fourth generation descendents. Eagle’s creation and evolution are tied directly to the oil and gas industry. Creation, as evidenced by its chartered purpose; manufacturing, buying and selling - glassware, china, metal goods, food products, electricity, and oil/gas/water drilling; and Evolution, as noted in the following history brief.

Glass to Metal: Early Eagle products included gas and kerosene lamps, globes for gas street lights, decorative glass bottles, opal discs and metal lids for Mason jars. Eagle also produced 4,000 gallons per day of Golden Eagle Mustard, packaged in 120,000 Eagle mustard jars and marketed via The Central Supply Company, another Eagle business. In January 1901 the Spindletop (TX) well was discovered with over 100,000 bbls oil per day, more than all the other wells in the U.S., combined. This fueled a revolution in transportation, making gasoline cheap and widely available. In 1900, there were only 8,000 cars in the U.S., by 1916 there were 3.5 million. The world’s navies switched from coal to oil, as did the railroads. With these industry changes, Eagle began producing lubricating oilers and fuel supply cans. By 1920, Eagle was the largest supplier of oil cans in the world, including the Harvester, Singer, Ford oilers-on every Model T Ford, the Tin Man’s oiler on the Wizard of Oz, and the famous railroad oilers. In 1920, when the area’s once plentiful supply of natural gas depleted, Eagle sold its glass business to Hazel Atlas Glass, completing the evolution from glass to metal.

Metal to Plastic: With the end of World War II, and the development of sealed bearings, the demand for Eagle’s hand oilers declined. However, by 1950 the increased use of gasoline powered lawn mowers, boats, chain saws, snowmobiles and small tractors created a large market for Eagle’s metal fuel containers. In 1958, Eagle evolved again with the development of safety products for the handling, storage and disposal of flammable liquids, including safety cans, safety storage cabinets and oily waste containers. The OSHA Act of 1970 required the use of all of these safety products in all industries, and the fuel shortages of 1973 and 1979 created tremendous demand for our safety and consumer fuel containers. In 1985, Eagle’s next major evolution came with the decision to start manufacturing fuel containers and spill containment products from High Density Polyethylene (HDPE). This was also a direct link to the oil and gas industry, as HDPE is a derivative of the ethane in natural gas. Since 1985, we have developed over 300 new plastic products. Our plastics manufacturing process has also evolved from rotational molding to blow-molding to injection molding to structural foam injection molding, to insure the most efficient, lowest cost, highest quality products for our markets. 2012 marked the first year in our history that plastic product revenues exceeded that of metal products.

We are very focused on new product innovation, with the goal of 15% of annual revenue derived from products developed within the previous five years. We also focus on innovation in our manufacturing processes, as our plant is an integrated mix of century old and cutting edge manufacturing technologies that must work in symmetry. We constantly evaluate our production processes for efficiency gains, cost containment and quality improvements and have integrated robotics and automation on all lines.

Today, with the mission of Protecting People, Property and the Planet, the Eagle brand has evolved to include over 1,000 industrial safety and hazardous materials handling products, including safety containers, safety cabinets, spill containment, poly drums, traffic safety, plant security and material handling products. In support of our historic tie to the oil and gas industry, we have also introduced the Eagle Talon and SpillNest lines of flexible spill containment berms, providing spill containment solutions for Marcellus and Utica shale drilling and completion operations. Appropriately, with its new product lines and dependency on ethane for its plastics business, Eagle’s current and future success is tied to the successful evolution of the oil and gas industry, more than ever.

Whether it is evolution from glass to metal to plastic industrial products; or spring-pole to cable-tool to rotary to horizontal drilling; or nitroglycerin to water to cross-linked gel hydraulic fracturing; or the perfected use of the combination of horizontal drilling and multi-stage hydraulic fracturing; any industry, company, product or processes’ long-term success is directly attributable to its ability to change, evolve and adapt to an ever-changing environment. This includes being prepared for the challenges of the inevitable boom and bust cycles of our mutual industries. So I ask again, is it Creation or Evolution? I think both!

Joe Eddy is President/CEO of Eagle Manufacturing Company in Wellsburg, WV. Joe has been with Eagle for 18 years, after a 15 year career as a Petroleum Engineer working for Amoco Production Company (TX), Gulf Oil Corp (CA), Spectrum Resources (OH), Tazwell Corp (WY) and Enhanced Technologies (WV). Joe is the past Chairman of the WV Manufacturers Association.

August 2014

THE ONG SPOTLIGHT


ARTICLESTHE ONG SPOTLIGHT: Joe Eddy, President/CEO, Eagle Manufacturing Company .............................. 3

WATER MANAGEMENT: Advanced Aeration in Flowback Impoundments .................................... 6-7

HEALTH & SAFETY: Safety through SafeLand USA ........................................................................ 10-11

ENVIRONMENTAL MANAGEMENT: Don’t Just Reclaim - Create Wildlife Habitat ......................... 12

INDUSTRY INSIGHT:Lackawanna College Targets Students ................ 16

NEW TECHNOLOGY: Environmental Tank & Container Introduces: Legal Load Tank ............... 18

LEGAL & FINANCE: Severance Tax: State By State Comparsion ..................................................... 24-25

ALTERNATIVE FUELS: Propane 101 .............. 28-29

ADVERTISER INDEXALPINE ELECTRIC ................................................ 4AMERICAN REFINING GROUP .......................... 19ARCADIA LAND SERVICES ................................ 19BLUE ROCK ENERGY PARTNERS ...................... 15BRI-CHEM ........................................................... 23CALU ................................................................... 23CARBO CERAMICS ............................................... 8CHANCELLOR INSURANCE ............................... 26CPI SERVICE ......................................................... 2CST INDUSTRIES ............................................... 25DRILL BABY DRILL ............................................. 26D&S INDUSTRIAL PRODUCTS .......................... 21DMC DESIGN ...................................................... 26DON’S DIRECTORY ............................................ 14DR WELL SITE .................................................... 15ERNST SEED ......................................................... 7ETC ........................................................................ 9FOSSIL ROCK SERVICES ..................................... 4GLOBAL FABRICATION INC ................................. 2GOODWIN PUMPS - XYLEM .............................. 26GREENHUNTER RESOURCES .............................. 5GREER INDUSTRIES .......................................... 19INDUSTRIAL TORQUE TOOLS ........................... 15JH TOMBLIN FENCE CO ....................................... 4JM MILLER .......................................................... 26LEE SUPPLY COMPANY ....................................... 5LEE REGER BUILDS ........................................... 15LEZZER ENERGY .................................................. 1MACHINERY STREET ......................................... 21MANSFIELD CRANE ........................................... 15MJ PAINTING CONTRACTOR ............................. 26MID-ATLANTIC STORAGE ................................. 26MIDSTREAMPHOTO.COM ................................. 23NEW PIG ............................................................. 13NORTH AMERICAN FIELD SERVICES ............... 15

OIL CENTER RESEARCH .................................... 19“O” RING ............................................................ 23PENNINGTON SEED ........................................... 19PPC LUBRICANTS ........................................... 5,19PSB ...................................................................... 19RIGMAIDS ............................................................. 9SHALE MARKETS ............................................... 23SHALE MEDIA GROUP ....................................... 25SKYCASTERS ........................................................ 7ST!CK .................................................................... 9TANK CONNECTION ........................................... 22UNIT LINER ......................................................... 11WATER STORAGE SOLUTIONS ........................... 9WEAVERTOWN ENVIRONMENTAL ................... 19

CALENDARSASSOCIATION MEETINGS ............................... 4TRAINING & WORKSHOPS .......................... 15UPCOMING EVENTS ...................................... 20NETWORKING EVENTS ................................... 9

EVENTSEUOGS .................................................................. 7NAPE SOUTH ...................................................... 17NGL GOLD RUSH .............................................. 14SHALE INSIGHT ................................................. 32WVOGE ............................................................... 30YOUNG ................................................................ 27

CONTACT US FOR ADVERTISING,INFORMATION OR MAILING LIST CHANGES:


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

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

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

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

ASSOCIATION MEETINGS

WVONGA Fall Meeting | September 9 - 11, 2014Wheeling, WV - www.wvonga.org

KOGA Western Kentucky Meeting | September 25, 2014Owensboro, KY - www.kyoilgas.org

IOGC Annual Meeting | October 19 - 21, 2014Columbus, OH - www.iogcc.state.ok.us

OOGA Summer Meeting | August 4 - 5, 2014Zanesville, OH - www.ooga.org

IOGAWV Summer Meeting | August 3 - 5, 2014White Sulphur Springs, WV - www.iogawv.com

August 2014

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By: Tom Daugherty, Corporate Development officer, Arcadian Technologies, LLC

Advanced Aeration in Hydraulic Fractured Water ImpoundmentsEvaporation of water is the primary management objective of most flowback impoundments. Homebrew irrigation systems are generally a pumped waterfall back into the impoundment. Various aeration schemes systematically churn water because it widely believed doing so promotes evaporation. It’s time for a definitive look under the hood to discover quantifiable benefits of aeration, often times referred to as oxygenation.

Dissolved OxygenDissolved oxygen (DO) must to be present in ample concentration to support robust water health. It is widely understood as a powerful oxidant. Even a stagnant pond can be brought back to life by effectively infusing DO into the water. Increasing dissolved oxygen in in flowback impoundments initiates a plethora of water quality improvements. Let’s examine them one by one.

EvaporationMany centralized treatment ponds are also known as evaporative ponds or pits. Two key components to evaporation in a water impoundment are heat (sunshine) and surface air movement (wind). Other factors include altitude, vapor pressure at the water surface, and vapor pressure of the surrounding air (Potts, 1988). One can discover a myriad of evaporation formulas based on geography, latitude, climate, and the like but the aforementioned factors are in play whether you are in the Permian, Marcellus, or elsewhere. During interviews with three different evaporation pit operators it was discovered that none deployed any scientific methodology to determine evaporation rate but all were convinced that their aeration methods helped.

Aeration Improves EvaporationThere are multiple phenomena occurring when micro bubbles and coarse bubbles are introduced in a subsurface fashion in a water impoundment. Firstly, the rising bubbles cause surface disruption and may add momentum to the air, increasing the rate at which the humid air is removed from the surface, a critical aid to evaporation ( Brutsaert, 1982). Secondly, when air is introduced into water, bubbles are formed and diffusing vapor in the water migrates to the interior of the bubble (Burkard and Van Liew, 1994). The resultant air in the bubble reaches 100% relative humidity and is released during the breakup process at the surface, which is an additive increase to evaporative loss of water. (Helfer, Lemckert & Zhang, 2012). Due to bubble-up or off-gassing, the aeration has increased the surface area exposing even more water to the ambient conditions thereby increasing evaporation.

Score Card for Aeration EfficiencyIn 1984 the American Society of Civil Engineers adopted aeration efficiency standards. The Standard Oxygen Transfer Efficiency (SOTE) test was developed to put all vendors/methods on an even playing field. The key to SOTE is evaluating the efficiency of introducing oxygen into a body of water based on implied utility cost. The test is recorded at sea level in clean water at 20°C. The measurement is pounds of oxygen per horsepower per hour expressed as lb-O2/hp-hr. Bubble size is the single biggest factor to determine SOTE. Fine bubbles (< 1/8 in.) tend to rise more slowly providing better oxygen transfer efficiency. Other factors in analyzing an aeration system are flow rate, depth, temperature, elevation, layout, alpha & beta factors, and maintenance. In Chart 1 we examine Standard Aeration Efficiency

(SAE) for various aeration types at different water depths, keeping in mind the higher SAE rating is the most desired.

Nature’s Oxidant and Water Quality ImprovementsWhen advanced aeration is introduced to flowback water, many water quality parameters begin improving in correlation to residence time or exposure. Assuming anaerobic conditions, a transformation from anaerobic (DO < 1.0 mg/L) to aerobic (DO > 1.0 mg/L) water occurs. Dissolved oxygen begins to eradicate sulfate reducing bacteria (Characklis, L., Lee, W. 1994). The oxidation of hydrogen sulfide begins to occur helping mitigate odor issues (Sharma, K., Yuan, K., 2010). The pH levels begin to move towards stabilization. Incidentally, a target pH value between 7.0 and 8.0 is best for maximum hydrogen sulfide removal (Chen, K., Morris, J., 1972). The water body also begins stripping CO2, light hydrocarbon gases, and VOC’s due to redox which is a reflection of its oxidative and reductive capacity.

Dissolved Oxygen transforms metals such as iron and manganese to their oxidized state. This allows them to be filtered out or settled to the bottom of the pit. Guar residues and other organics also begin reducing which fosters increased light transmissivity or clarity to the water. All of the documented water quality improvements offer contaminant load reduction for follow-on treatment trains such as electro-coagulation, reverse osmosis and the like.

The surface disruption caused by aeration also reduces surface matting and encrustable formations. This benefit is twofold as it allows more access to the water body by UV rays and provides a naturally corralled surface area for additional skim harvesting of hydrocarbons. 3 Anaerobic water pits cause certain treatment chemicals to be oxidized or partially consumed. This causes them to be less effective than expected leading to costly over-dosing. Increasing DO will optimize subsequent chemical use and increase operator control and understanding of water pit behavior.

Taking control of fractured water impoundments is a critical first step in subsequent treatment, recycling, evaporation, or other intended reclamation of the water. Cost control and process improvement are to be gained by addressing the water chemistry early on in the process, promoting improvement each step of the way. A cursory observation of the literature coupled with the data presented in Chart 1 suggest that using aeration deploying coarse and fine bubbles would offer the water quality benefits outlined herein. Notwithstanding nuances from site to site, advanced aeration merits serious consideration in the continuum of fractured water management.


ADVANCED AERATION IN FLOWBACK IMPOUNDMENTS

WATERMANAGEMENT

ReferencesBrutsaert, W. (1982). Evaporation into the atmosphere. Dordrect, Reidel. 299pp.

Burkard. M.E. & Van Liew, H.D. (1994). Simulation of exchanges of multiple gases in bubbles in the body. Resp. Physiol., 95 (2). Pp 131-145

Characklis, L., Lee, W. (1994). Review article on the influence of dissolved oxygen on sulfate-reducing bacteria related corrosion. Mycotoxins, Wood Decay, Plant Stress, Biocorrosion, and General Biodeterioration , Biodeterioration Research Volume 4, 1994, pp 519-526

Chen, K., Morris, J., (1972). Kinetics of aqueous sulfide by O2. Environ. Sci. Technol., 1972, 6 (6), pp 529–537

Helfer, F., Lemckert, C., & Zhang, H. (2012). Influence of bubble plumes on evaporation from non-stratified waters. Journal of Hydrology. Volumes 438–439, 17 May 2012, pp 84–96

Potts, D. (1988). Estimation of Evaporation from shallow ponds & impoundments in Montana. Misc pub #48. Montana Forest and Conservation Experiment Station. School of Forestry, University of Montana

Author: Tom Daugherty is a Corporate Development officer at Arcadian Technologies, LLC. He holds an MBA in Sustainability from Marylhurst University. [email protected]

August 2014

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August 2014

August 6YPE Pittsburgh Summer Bash Pittsburgh, PA | www.ypepittsburgh.org

August 1517th Annual Divot Diggers Golf Outing Hermitage, PA | www.pioga.com

August 16Mansfield Marcellus Shale Job FairMansfield, PA | www.mansfieldmarcellusjobfair.com

August 20 Elite Crew Change Pittsburgh| www.ypepittsburgh.org

August 27SOOGA Fall Golf Outing Beverly, OH | www.sooga.org

August 28Elite Energy Event Bentleyville, PA | www.shalemediagroup.com

NETWORKING EVENTS

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By: Kristie Kubovic, Director of Communications, Shale Media GroupEdited By: Chris Stroyne, Editor, Shale Media Group

Safety is important in any job and paramount in the shale oil and gas industry. It could mean the difference between preventing and incurring a serious injury, or worse yet—the difference between life and death.

Health and safety adherence in the shale oil and gas industry isn’t simply a list of general

guidelines that might be posted up on the company bulletin board. In this industry, it is imperative that a complex set of protocols is followed; and that strict state or federal regulations are enforced to help in the prevention of any potential life-threatening incidents.

Every aspect of a production work site is impacted by these regulations to ensure a safe, secure environment and prevent any accidents or safety violations. The people who work in the potentially volatile environment must be properly trained to avoid accidents, and be prepared to react to an on-site emergency.

In the shale oil and gas industry, operators often share a common contractor workforce. For years these contractors were required to complete separate but similar safety orientations for each operator, which

resulted in wasting both time and resources. Therefore a group of operators united to develop a standard safety orientation, SafeLandUSA (SLUSA) Orientation, which would be accepted by all of them.

SafeLandUSA is a volunteer organization comprised of both major and independent operating companies, industry associations and educators with the purpose of developing a widely accepted, standardized safety and environmental orientation and induction. Their intent is to set high minimum requirements designed specifically for the U.S. Onshore Exploration and Production (E&P) Industry with a primary goal of reducing the number of preventable incidents in the shale oil and gas industry’s journey to zero accidents. (adapted from http://safelandusa.org/)

The SafeLandUSA Orientation is a single day training course that lasts around eight hours. The training covers a vast array of topics including: Incident Reporting and Investigation; Accident Prevention Signs and Tags; Hand Safety; Material Handling; Behavioral Safety; First-Aid/CPR/AED Considerations; Confined Space; Lockout/Tagout; Drug and Alcohol/Substance Abuse; Hazard Communication; Electrical Safety; Intervention/Stop Work Authority; Fire Prevention and Portable Fire Extinguishers; Walking Working Surfaces; Job Safety Analysis/Pre-Job Planning; Personal Protective Equipment, Respiratory; Prevention of Workplace Violence; Working at Heights; Permit to Work; Driver Safety/Transportation Safety; Environmental; Excavation/Trenching and Shoring; Industrial Hygiene/Occupational Health; and Site Specific Hazards and Emergency Evacuation.

Suzanne Hyde, Owner and Trainer, SuzHyde Safety & Training LLC, teaches SafeLandUSA Orientation and explained, “A typical day in the class would begin much like any other training. Most students don’t really want to spend 8-10 hours sitting in a classroom, when their regular jobs would require them to be very active; however, once they begin to engage with one another and the instructor, they usually have their own stories and experiences to share. These are always beneficial to the class, especially if you can get the more senior students to talk and tell about how things have changed over the years.”

When asked if the course was easy or difficult for students, Hyde responded, “I would say the class is easy for the students. I make sure that everyone understands the material and give them opportunity to rethink their answers if they are incorrect.”

Hyde noted the training is fun for her and that her favorite part of the training is the stories from the students; she added that there are plenty of opportunities for networking as well. “At the end of the day, we all finalize our paperwork, take our pictures and say our goodbyes.”

No more than 25 students are allowed in a particular class. If a student passes the SafeLandUSA Orientation Training, they will get a permanent ID sent to them. Once they receive the ID, no recertification is necessary as the orientation remains with the employee throughout their career.

“Anyone who is new to the workforce or works for a contract service provider should take the course. It’s difficult to know the level of safety training a new employee has had. SafeLand is a way to ensure that they have had at least the minimum requirements. Contract service providers have a large turnover rate, so this is a way for large operators to ensure that contractors are making sure their employees are safety trained,” relayed Hyde, adding, “Most of the time the course is not voluntary for the students. Their employers require it because the customers they work for require it.” Some companies that do require it include: Anadarko, Anterro, BP, EnCana, ExxonMobil, HighMount Exploration & Production, Marathon Oil, Murphy Oil Corporation, Noble Energy and Tetra Technologies.


SAFETY THROUGH SAFELANDUSA

HEALTH& SAFETY

(Graphs and Information from http://www.pecsafety.com/safelandusa/)

This consistent environmental health and safety orientation is recognized by the industry and widely accepted. The popularity of SafeLandUSA continues to grow each year, which helps achieve the common goal of keeping shale oil and gas sites and workers safe.

Shale Markets, LLC will be offering SafeLand Orientation Training on Tuesday, August 26th,

2014 at the Holiday Inn Monroeville from 8am to 5pm. The cost will be $195 per student and will include breakfast, lunch and snacks. To register, go to http://www.shalemarkets.com/safeland-usa-slusa-orientation-training-pittsburgh/ or for more information, email Ray Pader at [email protected]. For additional training opportunities, check out the Training and Workshops calendar on page 15.

Shale Media Group (SMG) is a news, information, education and mapping resource dedicated to the shale oil and gas industries by messaging across video, Internet, publications, events and radio. For more, check out ShaleMediaGroup.com to access all platforms, including: TheMarcellusShale.com, TheUticaShale.com, TheShaleAcademy.com and ShaleEnergyNow.com. In addition, join us on August 28h for our next Elite Energy Event in front of the Holiday Inn Express in Bentleyville, PA from 5-8pm. Register or find more details at ShaleMediaGroup.com. Kristie Kubovic is the Director of Communications at Shale Media Group. Contact her at [email protected].

August 2014

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APPROXIMATE DEMOGRAPHICS:

By: Greg Kozera, Nabors Completion & Production Services

I just finished my second two year term as the President of the Virginia Oil and Gas Association. Several of our VOGA member companies completed a project in 2012 to bring the first elk herd in 100 years back to Virginia. They worked with the Virginia Department of Game and Inland Fisheries and the Rocky Mountain Elk Foundation to reclaim a strip mine with gas wells on it. The result was Virginia’s first elk herd

in over 100 years that is continuing to grow. They also won an award from the Interstate Oil and Gas Compact Commission. In addition to a successful elk herd re-introduction deer and other small animals have flourished as well as birds like quail and wild turkey. Even important insects like bees and butterflies have multiplied. This year they won an award from the Wild Turkey Federation.

At last year’s Fall VOGA Meeting, Leon Boyd of Noah Horn Drilling said to me, “I’m taking the Audubon Society out to the elk herd well sites tomorrow.” “Really I responded.” Leon added, “I do it all the time. They are seeing birds out there that they haven’t seen in this part of Virginia in 4 decades.” Amazing isn’t it, I thought? They don’t consider natural gas “green” energy and we are hosting the Audubon Society. You would never take the Audubon Society to a windmill site unless of course you wanted to see dead birds. California has a solar farm that captures the sun and then concentrates it into a beam that is sent to another site to turn water into steam to run a turbine and produce electricity, pretty ingenious. The only problem is that birds can’t see the beam and fly into it. They are cooked on the spot. This isn’t where you want the Audubon Society. While “green” energy is killing birds we are creating bird habitats and we don’t even tell anyone because we are energy producers.

Our members in Virginia didn’t think the elk project was a big deal. It was just the right thing to do and they are passionate about conservation. In Virginia we now have an ongoing relationship with Game and Inland Fisheries. Game and Inland Fisheries is concerned with first growth, that is, the grasslands where animals and birds find food and water. Animals like deer can’t find much to eat in the woods. That’s why we see them grazing along the interstates. The problem is that first growth is disappearing due to development. Even in our forests trees naturally expand into the first growth. Our industry is unique because we are creating that important first growth every time we clear trees for a well site or a pipeline right of way. How effective it is depends on us. We learned in Virginia that the cost to sow different grasses that create more food and a better animal and bird habit is small.

Working with Game and Inland Fisheries we get the technical assistance we need for the best possible reclamation for game and birds. Can we do a better job of reclamation in other areas so that we can improve wild life habitat? We are already making a difference. I had a biologist tell me that our pipeline right- of- ways are becoming flyways for migratory birds. She said that birds are looking for grasslands where they can find food and water and be safe from predators. In grasslands birds can see predators. In our back yards the house cat gets them.

My folks in Virginia never thought to publicize the elk herd until I told them how important it was and we are now using it in our public relations. People need to see this side of our industry and we need to tell this story. The “antis” like to show the construction phase of our well work. People need to see the other side of “fracking”. We need to tell this story with pictures of well sites with wildlife and birds. Pictures are powerful. I have some great Virginia photos. We need to show similar pictures in all areas we operate in. Keep your eyes open and your camera close. We do an incredible job of producing energy. In fact we are so good that we are changing the planet in a very positive way economically, politically and ENVIRONMENTALLY.

Be proud. Be vocal. Tell our story. It is a great one!

Thoughts to ponder.

Greg Kozera is a father and grandfather whose oldest son just returned from deployment in the Middle East. Greg is a registered professional engineer with a masters degree in environmental engineering and over 35 years of experience in the natural gas and oil industry including hydraulic fracturing. He is the author of 3 books and numerous articles and technical papers. Mr. Kozera is the Regional Sales Manager for Nabors Completion & Production Services and also the past President of the Virginia Oil & Gas Association. His latest book, “Just the Fracks Ma’am” is available from all online outlets like Amazon and Barnes and Noble. © 2014 Greg Kozera


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August 2014

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7PEC Basic Orientation - SafeLand USAWashington, PA www.rjrsafety.com

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

12 - 15 OSHA 510 – Standards for the Construction Industry Pittsburgh, PA www.safetyandhealth.ext.wvu.edu/osha_ed_center

14PEC Basic Orientation - SafeLand USA St. Clairsville, OH [email protected]

17 - 22SEG International Microseismic Technology WorkshopAshville, NC www.seg.org

19Fundamentals of Shale DevelopmentWilliamsport, PA www.pioga.org

19 - 22OSHA 5810 – Hazards Recognition and Standards for On-Shore Oil and Gas Exploration & ProductionPittsburgh, PAwww.safetyandhealth.ext.wvu.edu/osha_ed_center

19 - 22OSHA 511 – Standards for General Industry Charleston, WVwww.safetyandhealth.ext.wvu.edu/osha_ed_center

21PEC Basic Orientation – SafeLand USA Washington, PAwww.rjrsafety.com

26Fundamentals of Shale Development Tridelphia, WVwww.pioga.org

26PEC Basic Orientation - SafeLand USA Monroeville, PAwww.shalemarkets.com/safeland-usa-slusa-orientation-training-pittsburgh/

26 - 28Petroleum Engineering for Non-Engineers Pittsburgh, PA www.cese.utulsa.edu/programdetail

26 - 29OSHA 510 – Standards for the Construction Industry Richmond, PA www.safetyandhealth.ext.wvu.edu/osha_ed_center

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

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

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

16 Fundamentals of Shale Development Washington, PA www.pioga.org

18 PEC Basic Orientation - SafeLand USA St. Clairsville, OH [email protected]

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

30 - October 3 OSHA 510 – Standards for the Construction Industry Morgantown, WV www.safetyandhealth.ext.wvu.edu/osha_ed_center

AUGUST

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By: Tom Shepstone, NaturalGasNow.Org

The School of Petroleum and Natural Gas of Lackawanna College in Susquehanna County, Pennsylvania, is helping students find their futures in the energy industry.

Lackawanna College started educating students over 100 years ago supporting the coal

industry in northeast Pennsylvania. With the arrival of the Marcellus Shale industry, Lackawanna’s leadership recognized Pennsylvania lacked the necessary oil and gas industry education infrastructure to fill priority jobs, specifically jobs related to drilling, completion and production and gathering activities.

In 2008, the college established a new campus in NE PA and the School of Petroleum & Natural Gas was founded soon after. The initial two oil and gas industry focused associate degrees where Petroleum and Natural Gas Technology (PNGT) and Natural Gas Compression Technology (NGCT). Coming this fall, the school will expand its offering to include associates in Petroleum and Natural Gas Measurement (PNGM) and Petroleum and Natural Gas Business Administration (PNGB). The School of PNG is unique in the eastern US with such highly specialized degrees directed for the oil and gas industry.

Since its establishment, graduates have moved into important industry jobs across Pennsylvania at an astonishing rate - over 90% - and many have transitioned into more technical, supervisory roles.

When asked, what is the most important validator of the program, Rick Marquardt, Executive Director of the program says “the major E&P companies are coming back year after year to hire our interns and graduates, companies like Chesapeake Energy, Williams, Talisman, EXCO Resources and Southwestern to name a few.”

Earlier this year, in recognition of the school’s success, Cabot Oil & Gas Corporation announced a gift of $2.5 million to the Lackawanna College School of Petroleum & Natural Gas to help train future generations to work here in northeastern Pennsylvania and to open up opportunities across the world. The funds from Cabot’s gift to Lackawanna College will be directed toward the creation of a $1 million endowment to provide continuing support for student scholarships and help meet the long term needs of the school. The additional dollars will be used for state-of-the-art equipment, training, staff and faculty development, and student interactive experiences and internships.

One of the first projects to come out of this endowment is a truly unique accomplishment for the school. The outdoor petroleum and natural gas field lab (PNG Field Lab) is a full operational simulator in all operational detail of a well site and downstream equipment used for field handling of natural gas and oil production.

Speaking about the importance of the new outdoor lab Marquardt proclaims “this will expand learning opportunities for our students and add invaluable hands-on experience, reinforcing the core technical concepts taught in the classroom. Given the level of technology built into the labs, our students will also be stronger internship candidates, capable of understanding more in the field, and more qualified graduates entering the workforce.”

The outdoor PNG lab includes: A complete 5k high-pressure wellhead and tree, a plunger lift equipped wellhead and tree, a sand separator, a horizontal separator and heater (GPU), glycol dehydration unit, a cold filter separator and a 4 inch senior meter run. The production line is completely rigged out with all operational control valves, pressure relief valves, liquid level controllers, pressure regulators, thermostats, burner controls and regulators, glycol pump, back pressure controls, pressure limiters and shut downs and fuel gas measurement.

The school is also looking to expand its staffing as it continues to grow. If you or someone you know is a retired engineer looking for a position, this is an opportunity that shouldn’t be passed up. It’s an opportunity to help the School of PNG of Lackawanna College plant its flag and graduates nationally to help our young people find rewarding careers in an industry with an extraordinarily rewarding with a bright future nationally from our region. Call the School of PNG at (570) 465-2344 if you’re interested.

LACKAWANNA COLLEGE TARGETS STUDENTS WITH OIL & GAS CLASSES

INDUSTRYINSIGHT

August 2014

2014August 20–22george r. Brown Convention Center

Houston, tX

#NAPE_South2014


By: Jessica Petro, Marketing Coordinator, Environmental Tank & Container

Environmental Tank & Container (ETC), a leading manufacturer of fluid storage solutions and oilfield equipment, is excited to announce the newest addition to their line of fluid storage solutions, the Legal Load Tank. The concept

for the legal load tank came about when an exploration and production company operating in Butler County, PA approached ETC with a problem they hoped ETC could help them solve. They needed a tank that would allow them to store more fluid in less space. ETC’s highly trained and experienced engineering team quickly went to work, and after several attempts and feedback from their customers, ETC was able to design a tank that provides energy companies with two major benefits. The Legal Load Tank has a smaller footprint than ETC’s 400bbl API tank, and it fits on a trailer without the need for oversized load permits. The Legal Load Tank is a skidded tank that incorporates a unique egg-shaped design. The new tank is designed to store fresh water, production water, or flowback water. The legal load tank is 8’6” wide and can store 350bbl of liquid compared to ETC’s 400bbl API tank which is 12’ wide. Five legal load tanks fit in the same footprint as four 400bbl API tanks, resulting in 150bbl of additional storage capacity.

The legal load tank has been a positive addition to ETC’s product line. In addition to the two main benefits of the tank, several other benefits can be contributed to the new design. First, because the size of the tank fits within the parameters of a legal load, transportation companies no longer have to endure the waiting period to receive oversized load permits. Second, oversized loads can only be transported on weekdays. Eliminating the need for oversized load permits allows the tanks to be transported not only on weekdays but also after dark and on weekends. This is good news for energy companies because tanks are usually the first piece of equipment to be placed on a well site. They can now be more flexible when moving equipment to their sites.

Legal Load Tanks are designed and manufactured at ETC’s Johnstown, PA facility. They are constructed from ¼ inch steel plate and shot blasted prior to coating. Standard options on all of the legal load tanks include ladder fall protection, multiple valve options, interior coating, and mechanical or electronic load level gauges. They are currently on the fourth revision of the initial design, which has proven to meet the customer’s needs and expectations.

ETC is a subsidiary of JWF Industries located in Johnstown, PA. Established in 1987, JWF Industries is one of the largest contract fabricators east of the Mississippi River. JWF Industries has more than 450 employees and approximately 1 million square feet of manufacturing space. ETC is proud to be part of JWF Industries and is poised to become the leading provider of frac tanks, above ground impoundments, and related equipment for the oil and gas, industrial, and environmental waste management industries. JWF Industries utilizes automated robotic welders, lights-out laser cutting machines, and one of the largest hydraulic brake presses in the Northeast. All fabrication is completed by AWS D1.1 certified welders. To learn more about legal load tanks and ETC’s other products, please visit www.etctank.com or contact Matt Hughes, Vice President of Business Development at [email protected] or 814-659-9300.

ENVIRONMENTAL TANK & CONTAINER INTRODUCES: LEGAL LOAD TANKS

NEWTECHNOLOGY

Five Legal Load tanks fit in the same footprint as four 400bbl API Tanks resulting in 150bbl more storage capacity.

August 2014

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UPCOMING EVENTS

Denotes National EventVisit our website for links to these events

WWW.ONGMARKETPLACE.COM/EVENTS

AUGUST20-22

NAPE SouthHouston, TX | www.napeexpo.com/nape-shows/nape-south

21-22Frac Sand Supply and Logistics ConferenceSan Antonio, TX | www.petroleumconnection.com/sand

25-27URTeC 2014 Denver, CO | www.petroleumconnection.com/sand

8-10U.S. GTL Congress Washington, DC | www.oilandgasiq.com

8-10AAPG/SEG Fall Expo Houston, TX | www.seg.org

9-11NGL Gold Rush Summit Cleveland, OH | www.infocast.com

9-11Petroleum Innovation Expo Houston, TX | www.piexpo.net

10-11YOUNG 2014 Youngstown, OH | www.regionalchamber.com

17-19Northeast Energy Summit Boston, MA | www.infocastinc.com

18SOOGA Fall Trade Show TBD | www.sooga.org

23Northern Ohio Energy Management Conference Akron, OH | www.mecseminars.com

24-25Shale Insight 2014 Pittsburgh, PA | www.shaleinsight.com

24-25SPE Liquids Rich Basins ConferenceFt. Worth, TX | www.spe.org

24-28ADDC Annual ConventionLafayette, LA | www.addc.org

30-1Multi-well Pad Drilling CongressHouston, TX | www.american-business-conferences.com

30-2Water Recycling and Reuse for Shale Plays - EastPittsburgh, PA | www.infocastinc.com

1WV Oil & Gas ExpoMorgantown, WV | www.wvoilandgasexpo.com

7-8Public Utility Commission Gas Safety SeminarState College, PA | www.pioga.org

11Energy Expo Clintwood, VA | www.vaoilandgas.com

SEPTEMBER (cont.)

SEPTEMBER

OCTOBER

August 2014

FRACT OR FICTION? Marcellus Shale production is focused in five states. Answer on page 26


www.tankconnection.com • Parsons, KS Phone: 620.423.3010 • Fax: 620.423.3999 Inquiry: [email protected]

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8.1 MILLION HOUSEHOLDS USE PROPANE, AND 4.6 PERCENT OF THESE HOMES USE PROPANE AS THEIR MAIN HEATING SOURCE

August 2014

“The ONG Marketplace provides great technical content in a concise & professional format. I look forward to every issue.” - Ken Fleeman, Manager of Engineering ABARTA Energy

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By: George Stark, Director External Affairs, Cabot Oil & Gas Corporation

State-by-State comparison of the Severance TaxEach state creates their own tax structure and budget based on their unique demographics and economies. Yes, Pennsylvania is the largest natural gas producing state without a severance tax, BUT Pennsylvania is also the only state with an impact fee raising $225 million and is home to the second

highest income tax rate in the nation. Comparing Pennsylvania’s tax rates to those of other states is not so black and white. However, in the case of the proposed severance tax for Pennsylvania it is important to look at how other states tax oil and gas companies.

West Virginia An important note about severance tax in West Virginia is that it’s a five percent severance tax imposed on the natural gas industry as well as oil, coal, limestone/sandstone, sand, and gravel, and other natural resources. Pennsylvania does not impose a severance tax on any of these industries. Also, West Virginia’s income tax is 6.5 percent while Pennsylvania taxes at a 9.9 percent rate.

Unlike the proposed severance tax for Pennsylvania, in West Virginia the revenue generated by the severance tax on oil and gas is placed in a fund established by the State Treasurer’s Office. That fund is then distributed much like Pennsylvania’s impact fees. 75 percent is distributed to oil and gas producing counties while the other 25 percent is spread across all counties based on population.

A five percent rate on just the oil and gas industry in Pennsylvania along with the 9.9 percent income taxes could have a dramatic effect on the Pennsylvania economy and job market. Unlike West Virginia the proposed severance tax for Pennsylvania would only be applied to the oil and gas industry. Not to mention the revenue that it could generate would become part of state budget instead of being directly returned to the counties who are home to the oil and gas industry.

TexasLike the proposed Pennsylvania severance tax, West Virginia’s tax is an extraction tax, meaning that the gas is taxed when it is extracted and before it is sold, or “profitable.” In Texas however, they have a higher severance tax rate at 7.5 percent that is placed on all gas extracted from a well once that well has become profitable. Meaning, that oil and gas extracted in Texas

is not taxable until the oil and gas from any one well brings in enough revenue to cover the cost of the well. In Texas oil and gas companies are not taxed until they break even on their well.

While a 7.5 percent tax might seem high, and thus highly profitable for the state, when you compare the overall tax rates of Pennsylvania to other states, the proposed severance tax is still higher than Texas. This is due to Pennsylvania’s high income tax rate of 9.9 percent compared to Texas who does not have a corporate income tax that oil and gas companies must pay like they do in Pennsylvania.

OhioJust recently the Ohio House of Representatives voted in favor of a proposed increase to the state severance tax on oil and gas from a low rate of less than 1 percent to a modest 2.5 percent. Similar to West Virginia and the impact fees in Pennsylvania the Ohio bill currently stipulates where the revenue from their severance tax will go. A portion goes to the Department of Natural Resources and 17.5 percent is allocated to benefit local governments. However, a big difference in Ohio is that the largest portion of the revenue goes back to the state to help fund income tax relief.

SEVERANCE TAX: STATE BY STATE COMPARSION

LEGAL& FINANCE

(Source: National Conference of State Legislatures)

(Source: National Conference of State Legislatures)

(Source: Marcellus Shale Coalition)

(Source: naturalgasnow.org)

Ohio’s proposed 2.5 percent severance tax is still less than the proposed 5 percent in Pennsylvania, making Ohio a more profitable option for oil and gas companies if the Pennsylvania severance tax were to be voted into law. Over the last few years oil and gas operations have been declining slightly in Pennsylvania due to market prices of natural gas and the competitive nature of the industry. However, in Ohio operations have been steadily increasing.

Without a severance tax Pennsylvania is towards the top for state collections already. Part of the high ranking has to do with population size. However, Ohio is only nine percent smaller in terms of population size but has 24 percent less tax revenue even with a 2.5 percent severance tax.

Contact information is:1 412 249-3909@starkgeorge George StarkDirector, External AffairsCabot Oil & Gas Corporation

August 2014

(Source: naturalgasnow.org)


Marcellus Shale production is focused in five states: Pennsylvania, Ohio, West Virginia, New York and Maryland.

The Marcellus Shale formation is in Pennsylvania, Ohio, West Virginia, New York and Maryland.

marcelluscoalition.org #fractorfiction

FRACT

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The Youngstown-Warren Regional Chamber is building on the success of its Youngstown, Ohio Utica and Natural Gas (YOUNG) Conference & Expo. While past events highlighted the burgeoning shale and natural gas industry, YOUNG has evolved to include manufacturers in all industries.

In response to a growing need for skilled workers in the area, a public job fair will kick off the fourth annual YOUNG event at 9 a.m. at the Covelli Centre in Youngstown, followed by a business-to-business trade show and conference for registered participants at 1 p.m.

A dynamic lineup of speakers will include:

• Eric Shuster, President, VAM USA • Paul Koonce, CEO, Dominion Energy • Ohio Gov. John Kasich (invited) • Sheng-Chun Lin, chairman, CPC Corporation, Taiwan (invited)

The business-to-business event is a great place to promote your business and make new contacts. Exhibit space sells quickly, so be sure to reserve your spot today.

To take advantage of these exciting marketing opportunities, visit www.young2014expo.com or contact April Stanislaw at 330.744.2131, ext. 21 or [email protected] for more information.

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By: Kristie Kubovic, Director of Communications, Shale Media GroupEdited By: Mindy Gattner, Editor, Shale Media Group

Propane is used by millions of Americans each and every day. Traditionally, propane is often thought of for heating and cooking with household items including furnaces, water heaters, air conditioners, dryers, ranges and outdoor grills. However, in recent years non-traditional uses such as powering fleet vehicles have become more popular.

“Propane has been used as a motor fuel for more than 60 plus years, mainly for industrial and commercial forklifts. During the first energy crisis in the 1970s, alternate fueled vehicles started to appear. Propane was used to power cars and trucks as an alternate fuel because it was plentiful and cheaper than gasoline or diesel, but that didn’t last long as crude oil production increased and crude prices dropped. Everyone forgot about using alternate fuels,” explained Ronald Schramm, President, ProGas, Inc. “Today there is more awareness. Alternative fuels are being accepted more in light of the volatility in the Middle East and the effect crude oil prices have on gasoline and diesel prices.”

Propane is significantly cheaper than gasoline or diesel (costing about 40-50% less than the cost of diesel fuel). In southwestern Pennsylvania, the price of gasoline is averaging $3.75/gallon, while diesel has an even higher average of $4.20/gallon. However, propane fairs much better at around $2.25/GGE. In addition, gasoline and diesel sometimes seem to vary daily and are very dependent upon international affairs, particularly in the Middle East. “Propane prices should remain stable because of the abundance of product being found in the various shale formations throughout the country,” relayed Schramm.

Even though propane has been safety utilized for years, some still question its use. In order to put those questions to rest, we’re looking at a little Propane 101. First off, propane, also known as liquefied petroleum gas (LPG) or autogas, is a byproduct of both natural gas processing and petroleum refining. Propane is an alkane and hydrocarbon with a chemical formula of C3H8 (three carbon and eight hydrogen atoms).

With three carbon atoms and fewer emissions, propane is a cleaner burning fuel than gasoline or diesel. Schramm informed, “Propane autogas is an economical approach to substantially lower harmful emissions. Propane autogas-powered vehicles emit 25 percent fewer greenhouse gas emissions than vehicles running on gasoline, and 80 percent fewer smog-producing hydrocarbons emissions than vehicles running on diesel.”

Joshua Wasielczyk, Account Representative and Alternative Fuels Specialist, Blue Bird Bus Sales of Pittsburgh, pointed out, “Propane is an approved, clean fuel listed in the 1990 Clean Air Act and the Energy Policy Act of 1992 and is one of the cleanest burning of all fossil fuels. Tests conducted by the U.S. Environmental Protection Agency show that propane-fueled vehicles produce 30 percent to 90 percent less carbon monoxide and about 50 percent fewer toxins and other smog-producing emissions than gasoline engines.”

In terms of a spill hazard, propane will dissipate into the air in an open environment. Propane is considered non-toxic and poses no threat to soil, surface water or groundwater. In its natural state, propane is also virtually odorless and colorless. Due to this, an identifying scent is added so that propane can be detected if it leaks.

The auto ignition temperature is beneficially high for propane in comparison to other common fuels. For example, propane’s auto ignition temperature is 890°. On the flip side, gasoline’s is 475°, while diesel’s is only 420°. In addition, according to the Propane Education and Research Council (PERC), “Propane has a narrow range of flammability when compared with other petroleum products. In order to ignite, the propane-air mix must contain from 2.2 to 9.6 percent propane vapor. If the mixture contains less than 2.2 percent gas, it is too lean to burn. If it contains more than 9.6 percent, it is too rich to burn.”

“General awareness is key. We’re at a point where the general public may benefit from more education in regards to propane autogas safety to relieve any preconceived fears that they may have. As an example, some have mentioned to me that propane autogas is like driving around with a potential bomb in my vehicle. That perception could not be farther from the truth. In fact, propane autogas gas tanks go through rigorous testing, have thicker tank walls and are equipped with safety features to ensure proper filling and transportation use,” relayed John Iannarelli, President/CEO/CFO, Green Eye AutoGas Solutions.

The propane industry has developed numerous methods to ensure the safe transport and use of propane, including incredibly durable and thick fuel tanks that hold the propane autogas. In fact propane autogas has been used in the school transportation industry since 1992. Blue Bird is a prime example of the safe utilization of propane autogas in this industry.

Wasielczyk explained, “Strategically located between Blue Bird’s robust steel frame rails, propane autogas fuel tanks are 20 times more puncture-resistant than typical diesel or gasoline tanks. They are made from carbon steel, include vapor-tight enclosures around all lines and fittings, and are manufactured with an Overfilling Prevention Device (OPD) that ensures the fuel volume will be able to adjust with temperature variations. There is also a pressure release device in every tank should the pressure rise beyond safe levels.”

“Our buses’ engine systems are fitted with safety devices and shut-off valves that function automatically if the fuel line ruptures, and all lines and hoses are protected to prevent damage from loose cargo which could be encountered in the vehicle interior. [In addition,] even with a 20g frontal impact, or 8g side or rear impact

PROPANE 101

ALTERNATIVEFUELS

(which is twice the requirement specified in NFPA58), the propane tank will remain securely in place,” added Wasielczyk.

There are two types of engines currently available for propane autogas use: dedicated and bi-fuel. Dedicated engines would solely run on propane, whereas a bi-fuel engine could run on gasoline or propane. A bi-fuel vehicle has separate tanks for

the two fuels. The engine will run off one fuel at a time, but uses the alternate fuel first. It would then switch from propane to gasoline. Light and medium-duty vehicles with gasoline engines are eligible to convert to a bi-fuel technology. This is often used in taxis, police cars, shuttles and commercial vans.

Schramm relayed, “There is a comfort level involved with the bi-fuel technology. Some fleet managers worry about running out of propane when using dedicated propane engines. A bi-fuel system gives them a full supply of propane and gasoline. Since the engine can automatically switch from one fuel supply to the other, this eliminates the fear of ‘running out’. Plus, propane fueling infrastructure is growing every day, and propane fueling stations can be found in every state.” According to the U.S. Department of Energy’s Alternative Fuels Data Center, there are currently close to 2,750 propane fueling stations across this country.

Some conversions can take as little as two days. It is still a pricey endeavor for the general public to convert a personal vehicle to propane, but there are often various grants to assist with the purchase or conversion. A light duty bi-fuel propane conversion costs about $6,000 to $8,000. As for medium-duty conversions, Iannarelli informed, “To convert one bus to propane costs about $15,000 to $18,000.” “In addition, fleets can choose from an array of OEM-supported vehicles that are EPA – CARB certified and provide equal horsepower, torque and towing capacities as their gasoline or diesel counterparts,” stated Schramm.

The users who see the biggest return are those who use the most gas. Propane autogas also tends to be the most convenient for companies with their own fleet and own yard, where they come back each night to refuel. Schramm expressed, “Propane autogas provides an affordable, easy to use infrastructure solution for fleets that can use a central home base refueling location.”

In order for propane to be available to the general public and fleet vehicles, the industry worked to create a fueling infrastructure that people are familiar with. Schramm explained, “Dispensing units, pumps, for propane autogas are

being made to image that of gasoline and diesel fuel. Up until recently, we’ve only provided dispensing units for commercial fleet or industrial forklift accounts only. These units are crude in appearance and not what the general public is used to. Now that propane has made headway as a viable motor fuel, manufactures of propane dispensing units are developing units to look and work like gasoline and diesel dispensers.” Consequently, refueling a propane autogas vehicle takes around the same amount of time as refueling a gasoline vehicle.

Propane fueling facilities are very affordable in comparison to their alternative fuel counterparts. Iannarelli informed, “You could build 10 to 15 propane dispenser stations for the price of one compressed natural gas (CNG) station. Depending on the bells and whistles selected, a propane dispenser station costs about $25,000 to $35,000 to start. If you get more sophisticated, you can add on another $50,000 to $125,000.”

Companies, who are thinking of switching to propane autogas, need to look at the total cost of investment and the return on investment. Propane is a great choice for many companies. “The consumer can be a clear cut winner if they choose to use propane. I have customers that have paid their initial conversion cost back in three and one half months,” informed Schramm.

Wasielczyk added, “Since propane is a clean-burning fuel, our buses exhibit less wear-and-tear on engine components and need less frequent oil changes. Due to the affordability of Blue Bird’s propane-powered buses and the abundance of savings experienced from operating a propane-powered bus, a return-on-investment is usually experienced within 2-3 years. This rapid return provides customers with significant fuel and maintenance savings throughout the life of the bus.”

In conclusion, propane autogas is safe for its users and the environment, along with being plentiful, affordably priced and domestically produced. In fact, roughly 97 percent of propane consumed in the U.S. is produced in North America. Millions have already turned to this alternative fuel for buses, taxis and other fleets.

Schramm concluded, “With the finding of abundant natural gas and natural gas liquids, like propane, from the Marcellus, Utica and Bakken Shale formations, we have an energy source right under or feet that we can develop and provide this country with a solution for energy independence. Choosing vehicles that run on American-made propane autogas reduces dependence on foreign oil and keeps jobs here in the US and in the Commonwealth of Pennsylvania. What better way to help our own economy.”

Shale Media Group (SMG) is a news, information, education and mapping resource dedicated to the shale oil and gas industries by messaging across video, Internet, publications, events and radio. For more, check out ShaleMediaGroup.com to access all platforms, including: TheMarcellusShale.com, TheUticaShale.com, TheShaleAcademy.com and ShaleEnergyNow.com. In addition, join us at the Tri-State Alternative Fueling Expo & Conference in February 2015 at the Monroeville Convention Center in Monroeville, PA or on August 28th for our next Elite Energy Event in front of the Holiday Inn Express in Bentleyville, PA from 6-9pm. Register or find more details at ShaleMediaGroup.com. Kristie Kubovic is the Director of Communications at Shale Media Group. Contact her at [email protected].

August 2014


By: Kristie Kubovic, Director of Communications, Shale Media GroupEdited By: Chris Stroyne, Editor, Shale Media GroupPhotos Provided By: ProGas, Inc. and “O” Ring CNG Fuel Systems

In an effort to ‘go green’ and reduce U.S. dependence on foreign fuels, alternative fuels have been gaining popularity in recent years. Due to this nation’s vast shale oil and gas reserves, two alternative fuels that have gathered more attention are compressed natural gas (CNG) and propane, also known as liquefied petroleum gas (LPG) or autogas. Both have advantages and disadvantages over the other and other fuel sources, such as gasoline and diesel. Which is best for the consumer boils down to items such as cost, safety and location.

The BasicsGoing back to Chemistry 101, CNG is predominantly composed of methane. With a chemical formula of CH4 (one carbon and four hydrogen atoms), methane is the simplest hydrocarbon and occurs naturally in nature. On the other hand, propane is a byproduct of both natural gas processing and petroleum refining. Propane is an alkane with a chemical formula of C3H8 (three carbon and eight hydrogen atoms).

Environmental ImpactLooking back at those chemical formulas, CNG has one carbon atom per molecule, while propane has three. CNG has the highest energy to carbon ratio (4 to 1) of all fossil fuels. This emits less carbon dioxide per unit of energy than all other fossil fuels. Also, propane (with three carbon molecules) is still a cleaner burning fuel than gasoline or diesel. As a result, relative to gasoline, CNG offers potential reductions in carbon dioxide emissions by 25 percent, while propane reduces carbon dioxide by 17-24 percent.

Rick Price, Executive Director, Pittsburgh Region Clean Cities, informed, “At Clean Cities, our mission is to advance the energy, economic and environmental security of the U.S. by supporting local decisions to adopt practices that reduce the use of

petroleum in the transportation sector. Our goal is to reduce petroleum use by 2.5 billion gallons per year by 2020. We have already displaced nearly 5.5 billion gallons of petroleum since 1993 with the help of CNG and propane.”

Safety“Misinformation like ‘CNG is not safe’ is not true and still being tossed around,” expressed Bob Beatty, President, “O”Ring CNG Fuel Systems, who works with natural gas fueling stations and relates it to the Industrial Revolution stating, “Back then, it was said that electricity was dangerous and shouldn’t be used. It is the same territory, just a different era with CNG.”

John Iannarelli, President/CEO/CFO, Green Eye AutoGas Solutions, added, “General awareness is key. We’re at a point where the general public may benefit from more education in regards to propane autogas safety to relieve any preconceived fears that they may have. As an example, some have mentioned to me that propane autogas is like driving around with a potential bomb in my vehicle. That perception could not be farther from the truth. In fact, propane autogas gas tanks go through rigorous testing, have thicker tank walls and are equipped with safety features to ensure proper filling and transportation use.”

The auto ignition temperature is beneficially high for both CNG and propane in comparison to other common fuels. For example, CNG’s auto ignition temperature

is 1070°, while propane’s is 890°. On the flip side, gasoline’s is 475°, while diesel’s is only 420°.

In terms of a spill hazard, CNG does have a leg up. Both CNG and propane will dissipate into the air in an open environment. Since CNG is lighter than air, it isn’t considered a spill hazard. It mixes harmlessly and quickly with the air and won’t pool. On the other hand, propane is heavier than air. It will sink to the ground, collect and pool, which does pose a greater safety risk, like gasoline. However, both CNG and propane are considered non-toxic and pose no threat to soil, surface water or groundwater.

August 2014

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