Local companies see revenue increase from Chief development
Rig at the Grimm Lumber
site in Preston County, WV
Chief Oil & Gas has completed drilling two wells at the Grimm Lumber natural gas site in Preston County, WV, just across the state line from Oakland, Maryland. Chief is working with several local companies to develop the Grimm Lumber site, which has provided a boost in revenue for a variety of businesses.
Chief is working with local trucking companies, including Frazee Trucking, Beitzel Corp., and Hinebaugh Trucking, to haul rock and stone for road and site development.
All of the rock and stone is purchased at local stone quarries. "Usually winter is a very slow time of year for our business. This past year was different since we delivered about 22,000 tons of stone to the Grimm Lumber site for Chief," said Pat Ware, owner of Cranesville Stone. "Kept local contract truckers busy, too. I really appreciate getting that business especially during that time of year."
Chief also uses Oakland Oil Company for part of their fuel supply for equipment on location, and Southern States for propane. "Our company delivered 500 gallons of off road diesel twice a week to the Grimm Lumber site. That definitely helped our business," said Ryan Vance, General Manager of Oakland Oil, based in Oakland, Md.
Tom Hart, manager of Southern States in Oakland, hopes development will continue to expand in West Virginia and in Western Maryland. "Drilling in the Marcellus is good for the local economy. We set up the propane tanks for the campers that were on site and did some retail sales to the crew. I’ve seen how the industry increased sales at the Moundsville, WV, Southern States and I can’t wait for it to come here."
In addition to supporting vendors who provide supplies for drilling, Chief’s operations are providing economic opportunities for hotels, restaurants, stores and local industries, as well. The rig personnel are staying at local motels, including the Will-o-the Wisp at Deep Creek Lake, the Oakland Motel and the Oak-Mar Motel, both in Oakland. Workers also purchase their groceries, personal products and clothing from local retailers.
"People don’t always consider the multiplier effect, but the gas industry can really have a positive effect on many businesses, not just those directly involved in the drilling process," said Kristi Gittins, VP of Public Affairs for Chief. "We are pleased that we are able to support local small businesses."
About Chief Oil & Gas LLC
Based in Dallas, Texas, Chief Oil & Gas is a privately held, independent oil & gas company engaged in the exploration, development and production of oil and natural gas throughout the continental United States. For more information, visit chiefog.com.
kgittins (at) chiefog.com