Hydraulic Fracturing Montville Township Trustee Meeting February 14, 2012

Background Local area residents attend 1/10/12 meeting with concerns about Hydraulic Fracturing Operations coming to Medina County. – Stack of articles against Gas Drilling – Suggested that Trustees adopt a resolution that ODNR’s DMRM (Div. Of Mineral Resource Mgmt) notify us when a drilling permit is filed. – Suggested that Trustees adopt a resolution that prohibits fracking on township land.

Research Found many reports in support of new gas exploration industry. – Rep. Dave Hall, Chr. OH Ag. & Nat. Res. Comtt in OH House. – views the industry very positively. – Ohio has adopted strict new regulations on drilling – State inspectors present throughout drilling process – New wells must have two layers of cement casings to prevent leakage of material into nearby wells. – Spoke with Bill Thorne – no statutory support for a moratorium on fracking. – Need to have RUMA – Road Use Maintenance Agreements now required by law. – Problem is with Injection Wells, not fracking.

Current Facts Medina County has only one drilling permit in Harrisville Township. – Permit is to Devon Energy Production Company – Pad is started for a horizontal fracturing well – Also have one in Ashland Medina County lies on potential large, rich, utica shale deposits Townships have no control on this industry aside from not allowing it on township property. OTA welcomes the industry to Ohio.

So What Can We Do: Understand the Industry and Process ODNR has the sole responsibility to permit, monitor and inspect this whole industry. – Writing report regarding the Youngstown Earthquakes. Will modernize the fines and penalties for infractions. Set up procedures to eliminate current safety issues. Good research and very informative.

Educational Powerpoints – Chesapeake Energy Shale Operations Overview Powerpoint Chesapeake not coming any further west (as of now) Have very impressive business plans and procedures – County Commissioners have to Develop RUMA – view ODOT Powerpoint County Engineers and ODOT District 11 have one

So What Can We Do? Be Notified: Request to be notified to new permit requests and adopt Resolution to prohibit fracking on Township land. Be Educated: Chesapeake Energy Shale Operations Overview Be Prepared: Create a RUMA: “Road Use and Maintenance Agreement” and Impact Fees. Be Aware: New industry will impact many governmental services and local businesses.

New Developments It is the injection wells, not the fracturing that most are concerned about. Disposal of used fracking (brine) waste water solutions are injected back into the earth. New permits for injection well drilling have temporarily been suspended by ODNR while they prepare a report. Fracking with propane gel is on the horizon – Propane gel turns into gas when heated and 100% is recovered with the natural gas – eliminates frack (brine) waste water problem.

Fracking with Propane Gel Alternative to hydraulic fracturing Safer and more efficient than water – does not bring the fracking chemical to the surface – leaves them behind as gel turns to gas when heated and mixes with fracked gases. – 20-30% more expensive than water fracking – Developed by small energy company in Calgary, Alberta called GasFrac. – Stlll awaiting a permit in the US

Ohio Township Association Welcomes the development of the Marcellus and Utica Shale in Ohio. Recommends the following to ensure that local government interest are protected: – Require a RUMA as a condition to a permit to drill – No statutory support for Impact Fees (suggested by OTA)

Property Owners Awareness groups need to target individual property owners with anti fracking literature – Only way to impact the industry coming here – Landmen approaching land owners to get leases – Must have legal advise – Bill Williams, Canton – Surface rights and sub surface rights. – ODNA does not have a blacklist as yet for drilling violations.