PO BOX 1001 YOUNGWOOD, PA 15697
VOLUME 8 ISSUE 3
Getting Paid on a Construction Site PG. 12
Signing a Service Master Agreement PG. 5
ShaleInsightTM DUG EAST PREVIEW PG 8
PG. 19
PRSRT STD U.S. POSTAGE PAID BECKLEY, WV 25801 PERMIT NO.19
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Northeast ONG
SHUTDOWNS CAN’T HAPPEN. EVER. Guttman Energy delivers more than just fuel. We deliver comprehensive Bulk Fuel and Fleet Card solutions to keep your operations running 24/7. From our fuel consultants and market analysis experts to our quality bulk fuel programs and extensive fleet card network, we have your back every step of the way, making sure you buy better and stay fueled. It’s not just intuition or instinct that make us a reliable, integrated fuel distributor. It’s experience, it’s know-how, it’s market intelligence. Go to guttmanenergy.com/oil-gas to see a video on why Guttman is the right choice for your operation.
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Volume 8 Issue 3
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INDUSTRY INSIGHT MITIGATION BANKING: A STREAMLINED AND COSTEFFECTIVE SOLUTION FOR FULFILLING COMPENSATORY MITIGATION REQUIREMENTS By: Jaime Zsiros, Appalachia Bank Representative, Ecosystem Investment Partners Over the last decade, the concept of mitigation banking has gained traction across the country with credit purchases from mitigation banks increasing in popularity. This increase in popularity is two-fold. First and most important, mitigation banking provides a streamlined and costeffective mechanism for permittees to meet Section 404 of the Clean Water Act (CWA) compensatory mitigation requirements. Additionally, as established under the 2008 Compensatory Mitigation Rule, the purchase of bank credits has become the preferred mitigation method by the United States Environmental Protection Agency (USEPA) and the US Army Corps of Engineers (USACE) in lieu of permittee responsible mitigation and state specific In-Lieu Fee (ILF) credit purchase. Many of you are probably wondering “Exactly what is mitigation banking, how does it work, and is it the right solution for me”? This article aims to clarify the aforementioned topics and provide a greater understanding of the mitigation banking concept while promoting this extremely beneficial and cost-effective mitigation mechanism. What is a Mitigation Bank and How Does It Work? A Mitigation Bank typically consists of tract(s) of land where a mitigation bank owner has created, restored, enhanced, or preserved wetlands, streams, and/or species habitat to provide a mechanism for project developers to offset unavoidable impacts to aquatic resources or species habitat (e.g. compensatory mitigation) permitted and authorized under Section 404 of the CWA. Mitigation banks must receive all pertinent permits and are certified and overseen by regulatory agencies including the USEPA, USACE, state agencies, and the US Fish and Wildlife Service (USFWS) also referred to as an Interagency Review Team (IRT). The formal certification or agreement between the bank owners and regulatory agencies is outlined in a bank instrument. The instrument establishes and addresses liability, performance standards, monitoring requirements, in perpetuity management/preservation and bank credit release numbers and schedules. The instrument also authorizes the geographic service area of the bank. Once regulatory approval is received, credits are certified and issued to the bank developer in stages as performance standards and success criteria are met. These released credits are “banked” and then available for purchase by permittees from the bank owner. One of the most common misconceptions people have with mitigation banking is it allows project developers to completely abolish or impact natural resources with no checks, balances, or consequences. That is simply not the case. Mitigation banks provide a stream-lined and cost effect mechanism for permittees to fulfill their mitigation requirements through federal and state permit guidelines. Any entity that would be in a position to utilize banks or purchase credits would first need to receive all necessary federal and state permits prior to utilizing credit purchases. All entities must still demonstrate and meet avoidance and minimization criteria. Advantages of Mitigation Banks and Why this Option Makes Sense for Your Project Purchasing credits from mitigation banks helps permittees accelerate and simplify CWA Section 404 permit compliance while providing several distinct advantages
over permittee-responsible mitigation. First and foremost, purchasing mitigation credits delivers project budget certainty by providing predictable pricing and allowing for a one-time credit purchase. In particular, large-scale mitigation banks as owned and managed by Ecosystem Investment Partners (EIP) are extremely cost effective since large-scale banks can achieve economies of scale, reducing cost per credit. Purchasing mitigation bank credits releases you from all longterm liability. The liability now falls on the bank owner; however, if you were to choose permittee-responsible (onsite or off-site) mitigation you would hold all liability and responsibility for establishment, monitoring/report submittals, financial instruments, meeting success criteria, etc. Another great benefit of credit purchase is it accelerates your time to permit. Since mitigation banks are already approved, there is no need for subsequent approval. Plus, your mitigation permit requirements are met at the point of sale. In fact, data from all USACE Section 404 permits across the country show that the purchase of mitigation bank credits cut permitting time in half as compared with permittee responsible off-site mitigation. As previously mentioned, with the passing of the 2008 Compensatory Mitigation Rule the purchase of mitigation credits is the preferred compensatory mitigation method by the USACE and USEPA. Additionally, mitigation credits eliminate upfront costs since you only incur costs of mitigation upon credit delivery. Lastly, credit purchase can reduce your overall credit need. Under permittee responsible mitigation and ILF credit purchase your mitigation has to account for temporal loss, which is the time lapse between mitigation commencement and establishment of anticipated ecological functions. However, when bank credits are used there is no temporal loss of aquatic resources or habitat function. What makes EIP a Uniquely Qualified Partner for You? EIP is a leader in large-scale, high quality cost-effect mitigation banking and turn key solutions for wetland, stream, and species habitat impacts. We own and manage 31 mitigation projects on 63,000 acres in 7 states and USACE Districts. We have also restored over 32,000-acres of wetlands and over 105-miles of streams. What makes us unique is we have the ability to deliver mitigation credits in large volumes across expansive geographic areas by leveraging our network of large-scale mitigation banks. Our core team of 11 professionals brings extensive experience in land acquisition, permitting, site design, regulatory relations, restoration, and credit sales and marketing. Our collaborations with local partner firms not only enhance our regional ecological, engineering, permitting, design and construction expertise, but it also creates jobs for local communities. At EIP, the most important aspect of our business is customer service and building long-lasting relationships. We are customer focused and results driven company with a proven track record of exceeding our customer’s expectations. EIP has multiple banks within the Appalachia region including West Virginia (westvirsginiamitigation.com), Kentucky (kentuckymitigation.com), and Ohio (buckeyestatemitigation.com). For more information or to discuss your credit needs please do not hesitate to contact Jaime Zsiros, Appalachia Bank Representative, at 321.258.1774 or jaime@ecosystempartners.com.
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ASSOCIATION MEETINGS ADDC Region I Meeting | May 17–19, 2018 Findlay, OH - www.addc.org
KOGA Annual Meeting | June 12, 2018 Louisville, KY - www.kyoilgas.org
C O M PA N I E S
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ARTICLES
ADVERTISER INDEX
INDUSTRY INSIGHT: Mitigation Banking: A Streamlined and Cost-Effective Solution for Fulfilling Compensatory Mitigation Requirements................. 3
ALBERTA RIG MATS............................................ 10 ALPINE ELECTRIC............................................... 15 AUDUBON.............................................................. 4 BEG...................................................................... 17 CST INDUSTRIES.................................................. 6 ENERCORP SAND SOLUTIONS.......................... 13 EIP.......................................................................... 1 ENI........................................................................ 15 ERNST SEEDS..................................................... 19 GREEN MOUNTAIN CONSTRUCTION................ 10 GUTTMAN.............................................................. 2 HENDERSON BROTHERS..................................... 5 LEE REGER BUILDS............................................ 15 LEE SUPPLY......................................................... 23 MID-ATLANTIC STORAGE.................................. 15 PINK OIL SAFETY............................................... 15 STEELNATION..................................................... 10 SUNNYSIDE SUPPLY........................................... 10 TOTAL SAFETY.................................................... 10 TD CONNECTIONS................................................ 6
INDUSTRY INSIGHT: Signing a Master Service Agreement.............................................................. 5 PENNSYLVANIA NEWS: Let the Games Begin! “Legislative Shenanigans and Chess!”................. 6-7 ONG SPOTLIGHT: DUG East Preview.................... 8 MARCELLUS DRILLING NEWS............................. 9 INDUSTRY INSIGHT: Getting Paid on a Construction Project: The Right Tools Can Make All the Diffrence.. 12-13 PIPELINE NEWS: Tools of the Trade............... 16-17 INDUSTRY INSIGHT: Reducing Waste to Save the Bottom Line..................................................... 18-19 ONG SPOTLIGHT: ShaleInsightTM........................ 19 SHALE CRESCENT NEWS: Return to Profitability? Opportunity is Here Now!................................. 20-21 NEWS FROM STEPS........................................... 21 INDUSTRY INSIGHT: Semiotic Surveying........... 22
CALENDARS ASSOCIATION MEETINGS.................................... 4 NETWORKING EVENTS...................................... 15 TRAINING & WORKSHOPS.................................. 7 UPCOMING EVENTS........................................... 11
EVENTS DUG EAST............................................................ 24 EGCR.................................................................... 15 NORTHEAST PETROCHEMICAL......................... 23
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CONTACT US FOR ADVERTISING, INFORMATION OR MAILING LIST CHANGES:
The Northeast ONG Marketplace PO Box 1001 • Youngwood, PA 15697 724-787-4451 E-mail: info@ongmarketplace.com
The opinions expressed in the Northeast ONG Marketplace are those of the authors and not necessarily those of the Northeast ONG Marketplace or its advertisers. Any warranties or representations made in the advertisements or articles are the responsibility of the specific contributor and not The Northeast ONG Marketplace. 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.
Volume 8 Issue 3
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INDUSTRY INSIGHT
SIGNING A MASTER SERVICE AGREEMENT By: Adam Smith, Account Executive at Henderson Brothers, Inc. In the energy sector, the steel-toed boots of a sub-contractor can’t set foot on a jobsite without signing a Master Service Agreement (MSA). A MSA is when two parties agree to a contract that will settle most details and expectations for both parties for future agreements. The idea is that a MSA enables parties to quickly negotiate future transactions or agreements, because they can rely on the terms of the master agreement, so that the same terms need not be repetitively negotiated, and to negotiate only the deal-specific terms. Hopefully, most of the terms of a MSA are common sense and beneficial to mitigating risk for all parties. This is not always the case. In today’s reality, a subcontractor is agreeing to the terms of the operator or contractor awarding the work without any negotiation. There are two sections that should be of particular interest to an Energy contractor. Those are the Indemnity and Insurance Sections. The Indemnity Section outlines who is responsible in case of damage to property or bodily injury to either party. It is very common in the oil patch that you’ll find a “Knock for Knock” agreement. Basically, each party is responsible for their own employees and equipment regardless of fault. The Insurance Section outlines what limits and special endorsements should be included in the subcontractor’s insurance program to comply with the Indemnity Section. Danger! An Insurance Program that is insufficiently designed can
cause a business owner and contractor huge sums of money. The key in your risk management program is to make sure the insurance contract (policy) is written to satisfy the promises that you are making when you sign a MSA. We have found that this is an art not a science. Some MSAs are written with terminology that cannot be covered by an insurance policy. It is imperative that your insurance advisor is outlining what items the policy will satisfy and what items you will have to take a business risk or attempt to negotiate those items out of the MSA before it is signed. The time to negotiate special terms and conditions is prior to the start date and not after a claim has occurred. Many uncovered claim situations could have been avoided if the contractor partners with an insurance broker who knows how to add the proper endorsements to a standard insurance policy so the MSA requirements are satisfied. In some instances as previously mentioned an insurance contract will not be able to respond to some of the onerous and unreasonable requests that we see on some MSA. In those instances a contractor needs to be advised and the contractor then can decide on how to handle these issues before they enter into a contract. MSA agreements are very common in the energy business and have different terminology than most of the contractual requirements a contractor may face in the non-energy sector. Make sure your insurance broker is well versed in the MSA requirements and has the experience with the insurance carriers to provide all the special coverages required by the MSA. I have developed many insurance programs that have saved our energy clients a lot of money in many difficult claim scenarios. For more information, contact Adam Smith at 412-261-1842 ext. 307 or aesmith@ hendersonbrothers.com
For 125 years Henderson Brothers has gone to heroic lengths to provide our customers with peace of mind. Because you can’t expect what tomorrow may bring. That’s why you have us.
Please contact me for a comprehensive review of your potential liabilities in relation to the contractual requirements of your next MSA.
Commercial Insurance | Personal Insurance | Employee Benefits
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PENNSYLVANIA NEWS
LET THE GAMES BEGIN! “LEGISLATIVE SHENANIGANS AND CHESS!” By: Teresa Irvin McCurdy, President of TD Connections, Inc. About this time every year the Pennsylvania Legislature and the Administration start a high-stakes chess game by carefully selecting numerous bills/legislation and begin to move them into place to capture the king – or in this case pass the Capital Budget bill on-time while bringing with the King various pawns or pieces of legislation. Constitutionally, the General Assembly must pass, and Governor must sign into law a balanced budget by June 30th at midnight. As I mentioned in a previous article, that has not been done consistently since Governor Rendell’s first year in office. Before I mention some of the stakes, let’s first look at the number one prize. Can you guess what that is? Nope, not the budget bill. Nope, not if there will be a severance tax or not. The number one prize for any legislator is whether they will get re-elected. The entire House is elected every two-years whereas the Senate serves a four-year term with half being elected every two-years. The number two prize? Who will be Governor for the next four-years and who will control of each branch of the Legislature. For 21 members who choose not to run for re-election at all this year, they could have a lot of power in close votes as they have nothing to lose when casting their vote. The rest will be attempting to move their issues and casting votes to show their constituents at home that they are fighting for them and their causes, so they can win at the polls. During the 2016 election, the Senate Republicans retained the majority with 34 to 16 Democrats; while the House Republicans did so too with 121 to 82 Democrats. However, this year’s election will be quite interesting due to President Trump’s somewhat negative shadow being cast on all Republicans and the Courts redrawing the voting districts causing some shake ups. For instance, House Majority Leader Dave Reed announced he was running for a House Congressional seat and did not to seek re-election for his own seat. When the maps were redrawn, where he lived was redrawn out of the district for which he was seeking to be elected thus causing an end to his political career…at least for now.
a final vote when the timing is right. Meanwhile, the opposition continues to build its case as to why the regulatory reform language as written will weaken the PA Dept. of Environmental Protection (DEP), cause more harm to the environment, and cause any advances in protecting the environment to take steps backwards. Past House floor debates and votes have only been 1 or 2 votes from either passing or defeating pieces of this package of bills, so again those who don’t have anything to lose are free and may be the deciding vote. There are also some tax reform bills, such as HB 2017 by Rep. Frank Ryan (R) which amends the Tax Reform Code, in corporate net income tax, further providing for the definition of "taxable income" relating to deduction for appreciation and its companion bill, SB 1056 by Senator Michele Brooks (R) which amends the Tax Reform Code, in corporate net income tax, further providing for definitions. Both bills stated intent is to align state law with federal law's 100 percent bonus depreciation. However, according to the Senate Democratic analysis, it states that the Governor's Office opposes these bills and projects the bills will result in a total loss of $26.4M in the 2017-18 fiscal year. For corporations, this alignment with Federal law would help with accounting and fiscal matters. These are just a few topics I have highlighted, but there is so much more. And that’s the thing about budget time, you never know what will happen during the latenight negotiations and sessions. Sometimes, those like me on the inside are caught off-guard in the middle of the night but for companies that are not even following what is going on, many of them will just have to live with it. I’ve never been the type of person to “just have to live with it.” If you are not involved, then you can take a different approach and get involved. At a minimum signup for a newsletter like mine where you can get weekly or even daily alerts when necessary, so you can call your legislator and tell them why they should vote your way. Let them know how the legislation will impact your company, your job, and most importantly your personal life. Want more information or have a question, contact Teresa at 717-329-6402 or Teresa@TDConnections.com or learn more about TD Connections at https://bit. ly/2JE3fbM.
There are nine members running for a different seat and four House Democrats who are running for their same seat and a different seat. Some political analysts are predicting that Democrats have a good chance of picking up a lot of seats; maybe enough to gain the majority in one of the chambers. With the primary election in PA being May 15th, we will soon find out which Republican Gubernatorial Candidate will be facing off against Governor Wolf. Now on to the pieces of legislation that are being set up as pawns to either distract or get passed as a part of a package of bills to get the budget done on-time. Wait, I know if the budget has been late most of time over the past 15 years, then why care about this year? Because it is a controversial election year, and everyone wants to get back to their districts and campaign. Governor Wolf moved the first pieces in the game back in February when he introduced his budget and sought a severance tax for the fourth year in a row. House Speaker Mike Turzai moved second and has taken a strong stance against a severance tax, but during several floor debates the votes were close and with the political posturing going on those against the tax should not get complacent. For well over a year, a group of legislators have been fighting for regulatory reform and are continuing to push a package of bills through the system to set them up for
If you have a problem and/or a solution, Teresa would love to hear from you by contacting her at 717-329-6402 or Teresa@TDConnections.com.
Volume 8 Issue 3
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Tanks & Domes
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Northeast ONG
ONG SPOTLIGHT
“GASSING UP & NEW TECHNOLOGY” Hart Energy’s DUG East Conference Creates VALUE for Participants By ElizaBeth De Maagd, President, De Maagd Consulting and Hart Energy Representative Hart Energy is a true global leader in disseminating energy information through publications, data services and conference management. With headquarters in Houston, the company has documented all of the U.S. shale plays by incorporating a wide range of media tools to document, educate and influence decision makers on energy trends, big data, M & A and new technology. Hart Energy’s media include three highly respected and award-winning magazines - E & P, Oil and Gas Investor and Midstream Business. To learn more about Hart Energy, please visit hartenergy.com. This year, Hart Energy announced a nationwide “new technology driven” content at their DUG conference events. DUG Technology will be launched at the DUG Permian Basin conference and exhibition on May 23rd in Fort Worth, Texas. Technology programming will also be presented at DUG East, DUG Eagle Ford and DUG Midcontinent. Hart Energy’s Barry Haest, VP of Conferences, shared that “our added technology program will address what engineers, technical personnel and other leaders are looking for what’s working now and what’s ahead in the nation’s leading shale plays.” To view the DUG Technology agenda, please visit DUGTechnology.com. PITTSBURGH, PA is the welcoming host for the DUG East conference on June 19-21, 2018 at the David L. Lawrence Convention Center. With Marcellus and Utica Shales being prominent plays in the Appalachian region, many operators, engineers, service companies, consultants, regulatory and financial institutions frequently attend and exhibit at this well-known conference. They come to stay current with the newest technologies, gather valuable information, attend presentations by senior leaders in the energy industry, and take advantage of numerous networking opportunities. Information provides one of the most valuable and effective assets to becoming a leader in the energy industry. Hart Energy’s mission is fostering knowledgesharing by disseminating daily streams of fact-based information through their on-line publication outlets, as well as at their semi-annual conferences in major shale play states. Hart Energy is proud of its dominant role in conference management by providing a robust didactic agenda that serves the needs of diverse conference attendees. Learning opportunities offered during this year’s special DUG Technology programs include input from experienced panelists who will share details of current shale projects and new technologies relevant to “real-life site conditions,” roundtable discussions with Q & A opportunities, and focus-based technical symposiums. The well-rounded agenda will delve into the following topics: ➢ Proppants ➢ Regulatory policies ➢ Well stimulation ➢ Water sourcing, treatment and reuse ➢ Completion optimization ➢ Artificial intelligence and big data
Expert speakers can provide valuable insight at energy conferences by contributing proven strategies based on knowledge and experience, and by instructing others on step-by-step procedures for increasing company growth and profit. Hart Energy specifically selects speakers for their conferences who reflect the needs of attendees, current market trends, the latest technologies, regional infrastructure, and financial and regulatory issues. The 2018 DUG East speaker line-up was carefully selected based on these areas of interest, with special consideration to applying a "new technology focus” for companies conducting business in the Marcellus and Utica Shale region. Participants will be able to hear from over 20 senior-level executives in the Northeast region and discover how these knowledgeable professionals are increasing efficiency, decreasing costs and propelling profits. Some of the esteemed speakers selected for the DUG East conference include: ➢ Shawn Deverse, President, Surcon, Ltd. – A MagVar Company ➢ Tim Dugan, COO, CNX Resources Corporation ➢ Mike John, Founder, President, CEO, Northeast Natural Energy ➢ Oleg Tolmachev, VP of Drilling & Completions, Eclipse Resources ➢ Tonya Williams, General Manager, Shell Oil Company ➢ D. Randall Wright, President, Wright & Company, Inc. ➢ Barry Zhang, Founder and CEO, Quantico Energy Solutions Networking opportunities are extremely important in driving your professional mission and provide guidance and support for your energy industry career. Hart Energy understands that conferences are a perfect place to conduct business transactions, develop new and valuable relationships and revitalize previous partnerships. Hart Energy has organized a strategic agenda and conference management structure that provides a high ROI for attendees and exhibitors. At the DUG East conference attendees can establish important connections with over 2500 oil and gas professionals, with over nine hours of specific networking opportunities. Sponsors and exhibitors will be positioned throughout the convention center allowing attendees to conveniently share “what they do” and create a huge network of oil and gas industry leads, connections and partners. By interacting with well-informed vendors, attendees can learn about new services, innovation and equipment that can benefit their company and they can foster new relationships. Testimonials of individuals are very important in factoring the true value of attending an energy conference. Hart Energy takes great pride in a tradition of listening to and understanding the needs and concerns of its attendees. Hart Energy would like to share a testimonial that reflects how Hart Energy truly values relationships with exhibitors, sponsors, attendees and speakers. “The Hart Energy conferences are valued by our company for the opportunity to build relationships, present business information as an exhibitor, and learn about new opportunities throughout the Marcellus and Utica Shale industry. As a frequent exhibitor at DUG East and MUM, Appellation Pre-Fab demonstrates our true commitment to our business success and our honorable support to the O & G industry by investing in and participating in a well-respected energy event.” -Sandy Spencer, Business Development Specialist, Appellation Pre-Fab For more information about Hart Energy, please visit hartenergy.com. Register today at DUGEast.com. Use DEMAAGD100 for $100 OFF a Full Conference Pass. For questions, email elizabeth@demaagdconsulting.com (A special thank you to Kate Clark of Hart Energy for background information for DUG Technology)
Volume 8 Issue 3
Each weekday Marcellus Drilling News (MDN) locates and shares news, along with a healthy sprinkling of commentary, covering the Marcellus and Utica Shale region. Over 50,000 people read MDN each month, making it an excellent barometer to inform ONG Marketplace readers which topics generated the most interest for those who work in the oil, natural gas and associated industries. Below is a summary of the top 5 stories that were most-read over the past 30 days on MDN. #1 Most Read: Eclipse Resources Board Considering Either Merger or Acquisition (Mar. 27) Eclipse Resources, a Marcellus/Utica pure play driller headquartered in State College, PA, has just done it again. The company has drilled another massively long onshore lateral–19,335 feet long–in the Ohio Utica. It’s not the longest onshore lateral in the world (currently the Eclipse Outlaw well, at 19,600 feet), but this one comes close. Although drilling a new super lateral is big news, there was other news that (for us) is even bigger: Eclipse issued a statement that says, in part, the company “has initiated a process to evaluate and consider a full range of potential strategic, operational and financial alternatives to maximize shareholder value.” Eclipse hired investment firm Jefferies LLC and international law firm Norton Rose Fulbright to help with the process. Both firms specialize in mergers and acquisitions (M&A). The statement also says, “There is no assurance that the review by the Board will result in a transaction or other strategic alternative,” which we interpret to mean Eclipse is looking either to buy another company (like EQT did with Rice Energy), or sell itself to another company (like Rice Energy did to EQT). That’s our take on this seemingly innocuous announcement. Big news indeed! To read the full story, visit: https://goo.gl/W6eqSc. #2 Most Read: EQT Pulls a Chesapeake, New Deductions from PA Leases (Mar. 26) Recently MDN editor Jim Willis had the pleasure of speaking at the National Association of Royalty Owners (NARO) Pennsylvania Chapter annual convention in State College, PA. Jim was humbled to present alongside a cast of terrific speakers, including Scott Perry, Deputy Secretary of the Office of Oil and Gas Management at the PA Dept. of Environmental Protection, Tom Murphy, Director of Penn State’s Marcellus Center of Outreach and Research (MCOR), and Scott Kurkoski, a top lawyer and head of the energy practice for Levene, Gouldin & Thompson. One of the first attendees at the event to stop by the MDN table for a chat asked if we had heard about a letter recently sent by EQT to PA landowners. We had not. He gave us a copy (below). In the letter, EQT claims they have been “subsidizing a portion of the cost to gather the gas” produced by their PA wells, and they intend to begin claiming new deductions from royalty checks beginning this year. The way they position it in the letter is that landowners will begin “sharing” in these post-production costs. Who doesn’t like to share, right? We can tell you, not a single attendee at the event was impressed with EQT’s “sharing” letter. It smacks of the road Chesapeake Energy has gone down in robbing landowners of their royalties. To read more about this disappointing development, visit: https://goo.gl/4EPNcT. #3 Most Read: New Details Emerge on Cabot’s Shale Plans in Central Ohio (Apr. 3) Cabot Oil & Gas director of external affairs, George Stark, recently spoke to the Ashland Times-Gazette about the company’s plans to drill test wells in and around Ashland County, OH. As MDN previously reported, Cabot is sniffing around central Ohio, looking for “what’s next” after the Marcellus Shale. Last December we told you that Cabot has leased acreage in Ashland County. Two weeks ago we told you that Cabot has filed for its first permit
Page 9 to drill a test well. Stark revealed, in his interview, that Cabot geologists “see something in Ohio” and that Cabot “wants to go touch it.” What, exactly, does Cabot want to touch? We originally thought it was the Utica, but Stark told MDN no, it’s not the Utica–but a layer “lower than the Utica.” However, Stark won’t say specifically which layer or layers. We now think we know. We also learn (from the article) that Cabot has acreage not only in Ashland, but in four neighboring counties too. In this post, we told readers which layers Cabot is likely targeting, and which four additional counties have Cabot leases. Read it here: https://goo.gl/gyii1J. #4 Most Read: PA “Rule of Capture” Case has Power to Limit Marcellus Drilling (Apr. 4) As we indicated in a previous post, the Pennsylvania Superior Court handed down a decision in April that has the power to greatly restrict, even stop, Marcellus drilling in Pennsylvania. The issue, in brief, is that the Superior Court decision disallows using an age-old principle called the rule of capture. The rule of capture works for conventional drilling where underground deposits of oil and gas are in pools and the pool may exist underneath multiple surface property owners. Whoever gets there first and sucks the oil/ gas out, wins. That’s the rule of capture in a nutshell. And it makes sense. You can’t be held responsible for oil and gas moving from one place to another as it’s extracted. And who knows how much of the pool is located under your property, or your neighbor’s property? The Superior Court ruled that the rule of capture doesn’t work for hydraulic fracturing because gas (and oil) trapped in shale rock does not freely move from one place to another as it does in a pool. The judges say the gas would “stay forever” where it is without fracking. In the case of Briggs v. Southwestern Energy, the Briggs family (in Susquehanna County, PA) allege that when Southwestern drilled and fracked on the Briggs’ neighbor, the fracking was done close enough to their property that some of the gas located under their property (which is unleased) was released and extracted through the Southwestern well–which they call a “trepass.” Southwestern countered that IF such a “trespass” took place, it falls under the rule of capture. The ultimate issue boils down to this: How far do fractures extend from a lateral well? An expert energy attorney told MDN off the record that Monday’s decision “could change the entire Pennsylvania shale industry” in two important ways. Read this post to find out how: https://goo.gl/mRbCf8. #5 Most Read: MarkWest Building 6 New Processing Plants, 3 Fractionators in 2018 (Apr. 5) Attendees at the Utica Midstream conference at Walsh University in North Canton, Ohio in early April got an earful about pipelines and processing plants. Perhaps the biggest news coming from the event (for us, anyway), is that MarkWest Energy, now part of Marathon Petroleum, plans to build another six natural gas processing plants and another three fractionation plants in the Marcellus/Utica...THIS YEAR. MarkWest plans to spend a whopping $2 billion in the region this year! That’s in addition to building two new processing plants and three fractionation plants last year. A processing plant accepts raw hydrocarbons coming out of shale wells and separates out the methane from everything else–“cleaning up” the methane so it’s pipelineready. Fractionation takes what’s left after the methane is removed and separates those other hydrocarbons into their discrete molecules–ethane, propane, pentane, butane, etc. According to MarkWest, M-U moving butane to new markets will be a major focus this year. We also learn that MarkWest’s Sherwood facility (in WV) is now the fourth largest gas processing plant in the U.S.–and by the end of this year, it will be #1 in the nation! In addition to MarkWest, there were a number of other top notch speakers at the event, including Rick Simmers from the Ohio Dept. of Natural Resources. Rick mentioned in passing there’s a shale well pad in southeast Ohio with a whopping 28 wells on it. This post presented a summary of what was said at the event: https://goo.gl/3T5AFN. Sign up to receive MDN's daily headlines email here: MarcellusDrilling. com/email-alert
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Volume 8 Issue 3
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UPCOMING EVENTS MAY
AUGUST
17
15-18
IADC Drilling Onshore Conference & Exhibition
Summer NAPE
Houston, TX | www.iadc.org
Houston, TX | www.napeexpo.com
JUNE
SEPTEMBER 5-6
11-13 Northeast LDC Gas Forum
SPE Liquids-Rich Basins Conference Midland, TX | www.spe.org
Boston, MA | www.ldcgasforums.com
19-21 DUG East
10-12 Mid-Continent LDC Gas Forum Chicago, IL | www.ldcgasforums.com
Pittsburgh, PA | www.hartenergyconferences.com
25-27 IPAA Midyear Meeting Houston, TX | www.ipaa.org
11-12 IADC Advanced Rig Technology Conference & Exhibition Austin, TX | www.iadc.org
12-13 US Water Treatment Conference
JULY
Chicago, IL | www.lmnpower.com
16-18 NARO Appalachia Annual Conference
23-25 URTeC Unconventional Resources Technology Conference Houston, TX | www.urtec.org
Wheeling, WV | www.naro-us.org
18-22 ADDC Convention Evansville, IN | www.addc.org
30-2 Appalachian Gas Measurement Short Course Moon Twp, PA | www.agmsc.org
20 SOOGA Fall Trade Shows Marietta, OH | www.sooga.org
20 ABGPA Midstream Appalachian Regional Conference Washington, PA | www.abgpa.org
Denotes National Event
Visit our website for links to these events
WWW.ONGMARKETPLACE.COM/EVENTS
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INDUSTRY INSIGHT
GETTING PAID ON A CONSTRUCTION PROJECT: THE RIGHT TOOLS CAN MAKE ALL THE DIFFERENCE By: By Steven P. Engel, Esquire, Blumling & Gusky, LLP
Part 1: Mechanic’s Liens Contractors know that having the right tool can sometimes mean the difference between success and failure. The same principle applies when facing a payment dispute on a construction project. This two-part article will identify some of those tools or strategies and attempt to show why they are useful to an unpaid contractor or supplier and can help secure payment.
provide a means to recover from the proceeds of the oil and gas produced from the property. A mechanic’s lien also creates a “cloud” against the owner’s title, which can prevent the sale or transfer of the owner’s interest in the property without the satisfaction of the lien or payment of the lien amount. A lien also typically causes problems for an owner if there is a mortgage on the property or the owner has pledged the property as security for another loan. Indeed, because a lien can jeopardize the security pledged as a condition for the loan, the filing of mechanics’ liens constitutes an act of default under virtually every mortgage or loan agreement.
Your Company’s Invoices or Pay Applications are Outstanding ... What Do Can You Do? At some point, it is almost inevitable that a business or company in the construction field will face a payment dispute or have the unenviable task of trying to recover unpaid amounts on pay applications or invoices. When phone calls, emails and demand letters do not result in payment, what can you do?
Obviously, property owners do not like when their property is at risk of being sold or when they learn that they may only receive a portion of the proceeds of sale of that property due to a mechanic’s lien. Mechanic’s liens therefore have the tendency to jeopardize a producer or contractor’s relationship with an owner and typically result in pressure on the producer to pay or to force its contractors to release withheld amounts.
Unfortunately, filing a lawsuit does not always lead to the quick recovery of the amounts owed. Indeed, before you can recover, you must obtain a verdict or award, often after a lengthy and expensive, pretrial discovery period and the conclusion of a trial. Due to a backlog in many jurisdictions, taking a case to trial is a process that can take years. Appeals can make this process even longer. After that occurs, you must then go through the process of collecting the judgment, while facing the risk that the defendant will file for bankruptcy, become insolvent or otherwise be “judgment proof.”
The timing or effective date of a mechanic’s lien is also important. In an ordinary lawsuit, the plaintiff must first obtain a verdict/award (often after a lengthy pretrial process) and enter judgment on that verdict/award before it attaches and becomes a lien against a defendant’s property. In contrast, a mechanic’s lien serves as a lien against the property from the date it is filed and its priority (or the date it is deemed to attach) typically relates back to the date when the first contractor or supplier performed work or supplied material to the projectii. This means that a mechanic’s lien is a way to quickly and inexpensively obtain a lien without having to wait for a verdict from the court or arbitration award.
Are there tools that can be used to encourage delinquent producers/ contractors to voluntarily settle or pay the disputed amounts or that can otherwise help you avoid the risk that the judgment won’t be collectable? The answer is “Yes.” The article will discuss one of those “tools,” the mechanic’s lien. Part two in the next issue will discuss two other “tools” – payment bonds and Prompt Pay Statutes. What is a Mechanics Lien and Why is it Such an Effective Tool to Compel Payment? A powerful and particularly effective tool that is available to an unpaid contractor, subcontractor or supplier is a mechanics’ lien. Why is a mechanic’s lien such an effective tool? The answer relates to both what the lien effects and its timing. A mechanic’s lien is a lien against the property on which the construction work was performed. It attaches to or is against the underlying property interest, rather than the non-paying owner or contractor. This is significant for several reasons. First and foremost, it allows the lienholder to foreclose or sell the underlying real estate interest to “satisfy” the lien. This means that a mechanic’s lien can still serve as an alternative source of potential recovery if the defaulting contractor is bankrupt, insolvent or judgment-proof. In some states, like Ohio and New Yorki, a mechanic’s lien can also attach to an oil and gas lease or the mineral estate. Mechanic’s liens can therefore
A lien’s “priority” or the effective date when the lien attaches can also be significant. This significance flows from the general principle that distributions from the proceeds of a judicial or sheriff sale are paid in order of priority. If there are sufficient proceeds to satisfy all liens against the sold property, the order of priority is not important. However, if the mortgages, judgments and other liens against the property exceed the amount recovered in the sale, the order of priority can determine whether a party recovers all or any portion of the amounts they are owed. Why aren’t Mechanic’s Liens Used More Often? The preceding section discussed the importance and effectiveness of mechanic’s liens as a collection tool. Why then are they not utilized more regularly? The answer lies in the nature and uniqueness of this remedy. Indeed, few subjects are as foreign to a layperson as mechanic’s liens. In most jurisdictions, the average attorney rarely encounters, let alone files a
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mechanic’s lien. Unfortunately, this lack of familiarity can lead to problems as few legal remedies contain as many potential pitfalls.
or work was performed or material was furnished by the party claiming the lien on a commercial construction projectxi
In particular, the right to file a mechanic’s lien is purely a creation of statuteiii. Because of this (and possibly due to the unique nature of mechanic’s liens), the Courts in most jurisdictions will strictly construe mechanic’s liensiv.
West Virginia 100 days from the completion of the contract or last day performing work or supplying material to the projectxii
This means that they carefully scrutinize mechanic’s lien filings to assure rigid compliance with the requirements of the applicable mechanic’s lien statute.
New York 8 months after completion of contractxiii
It is therefore important to know and understand the requirements of the applicable mechanic’s lien statute. Unfortunately, there are no uniform nationwide codes that apply to mechanic’s liens. Instead, each state has its own statute that establishes the requirements for filing a mechanic’s lien in that state. These laws can vary dramatically. More importantly, each statute provides a number of potential opportunities for a claimant to fail when it tries to file and perfect its lien. Among other requirements, these statutes identify: (1) on what types of projects liens can be filed; (2) who is eligible to file a lien; (3) what types of work or improvements give rise to lien rights; (4) what property interest the lien attaches to; (5) the deadline for filing a lien; (6) the form and required content of the lien filing; (7) where the lien must be filed or recorded; and (8) the deadlines for foreclosing on or enforcing the lien. Some statutes also provide opportunities for owners to limit their potential exposure to liens through affirmative steps taken before or at the time the project commences. For example, on certain projects in Pennsylvania and in Ohiov, the owner can file a “Notice of Commencement.” The filing of this Notice of Commencement allows an owner to identify and limit subcontractors and suppliers with potential lien rights by trigging an obligation for subcontractors/suppliers to provide a document called a “Notice of Furnishing” within a specific timeframevi. If a subcontractor or supplier fails to file its Notice of Furnishing by the established deadline (i.e.¸ within 45 days of commencing work in Pennsylvania), the subcontractor/supplier loses its right to file a mechanic’s lienvii. Some states’ mechanic’s lien laws also place additional requirements upon subcontractors and suppliers. For example, both Pennsylvania and Maryland require subcontractors to provide written notice to the owner of their intent to file a lien before they can file their mechanic’s lien claimviii. In each state, the failure to fulfill these conditions will eliminate a subcontractor’s right to file a lienix. The deadlines for filing liens also varies from state to state. For example, the applicable mechanic’s liens statutes establish the following deadlines for liens in the Marcellus and Utica shale regions: Pennsylvania 6 months from the completion of workx Ohio 21 days from the date when the last labor or work was performed or material was supplied to an oil/gas well or facility or 75 days from the date last labor
New Jersey 90 days after completion of work or supplying of materialsxiv Maryland 180 days after the final date that work, services or materials were furnished by the party claiming the lienxv The preceding paragraphs in the part of this article are in no means meant to serve as an exhaustive list of the requirements to properly file and enforce a mechanic’s lien. There are other requirements that are specific to each state’s mechanic’s lien law must be met to validly pursue a lien claim. These paragraphs are also not meant to discourage unpaid subcontractors and suppliers from exercising their mechanic’s lien rights as part as their collection strategy. Indeed, for the reasons identified above, a mechanic’s lien remains a powerful and effective tool to secure payment. Instead, this section is meant to demonstrate why it is important to understand the specific requirements of the mechanic’s lien statute in the jurisdiction where the work is being performed. The author further recommends that anyone who is considering a mechanic’s lien claim retain the services of knowledgeable counsel before embarking down that path. Mr. Engel is a partner at Blumling & Gusky, LLP, and is a member of the firm’s Construction and Surety Law Group. His practice is concentrated in construction claims and litigation, where he has represented contractors, subcontractors, suppliers and engineers in connection with mechanics liens, arbitration proceedings and in litigation in various state and federal courts, including courts in Pennsylvania, Ohio and West Virginia. He can be reached at 412-227-2500 or SEngel@bglaw-llp.com. See Ohio Rev. Code §1311.021; NY CLS Lien §4. See 49 P.S. §1508; Ohio Rev. Code §1311.13; W. Va. Code §38-2-17. See Freeform Pools, Inc. v. Strawbridge Home for Boys, Inc., 228 Md. 297, 302 (1962). See e.g., Crock Constr. Co. v. Stanley Miller Constr. Co., 613 N.E. 2d 1027, 1030, (Ohio 1993); Wyatt Inc. v. Citizens Bank of Pa., 976 A.2d 557, 564 (Pa. Super. 2009); Badger Lumber Co., Inc. v. Redd, 583 S.E.2d 76, 79 (W.Va. 2003). 49 P.S. §1501.1 and §1501.3; Ohio Rev. Code §1311.04 and §1311.05. 49 P.S. §1501.03; Ohio Rev. Code §1311.05. Id. 49 P.S. §1501; Md. Real Property Code Ann. 59-104. Id. 49 P.S. §1502. Ohio Rev. Code §1311.06. W. Va. Code §38-2-24. NY CLS §10. N.J. S. 2A: 44A-6. Md. Real Property Code Ann. §9-105.
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Volume 8 Issue 3
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NETWORKING EVENTS May 11 Appalachian SPE Golf Outing Ravenswood, WV | www.connect.spe.org/appalachian May 11 OOGA Region 1&2Spring Golf Outing Wooster, OH | www.ooga.org May 15 SPE Section Meeting Carnegie, PA | www.connect.spe.org/pittsburgh/home May 15 ABGPA Midstream Speaker Luncheon Canonsburg, PA | www.abgpa.org May 18 SOOGA Spring Golf Outing Beverly, OH | www.sooga.org May 24 YPE Pittsburgh Clay Shoot Dilliner, PA | www.ypepittsburgh.org June 4 PIOGA Golf Outing and Steak Fry Reno, PA | www.pioga.org/events June 5 SPE Section Meeting Carnegie, PA | www.connect.spe.org/pittsburgh/home June 13 YPE Crew Change TBD | www.ypepittsburgh.org
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PIPELINE NEWS
TOOLS OF THE TRADE By: Ray Keller, National Sales Manager, Pipeline Division, BEG Group, LLC Every construction industry has tools specific to its' trade and designed to fill a specific need within that industry. Although some of the tools will fill the same needs in different industries, pipeliners have developed several that are unique not only to the industry but to the world. Let's outline some of those tools this month and their specific purpose in the construction process. Breaking them down, we will discuss track type machines, ROW clearing machines, ditching machines, bending machines, welding machines, & coatings &coating machines. Although there are many more, this will give the layman a good foundation and concept of what goes on and why. TRACK TYPE MACHINES In the early days of pipelining as with all other construction, many of the tasks involved used straight man power, horses, mules, and even oxen to pull and move heavy objects of all kinds. During WW1 the military began using a track that would use a series of shoes that would revolve around 2 gears and move a platform forward similar to that of a caterpillar. BORN: Caterpillar Tractor Company. For the military it was the start of the mechanized platform for artillery morphing into the tank. For pipeliners, the platform replaced horses, mules and manpower enabling larger loads to be moved quickly and over longer distances thus reducing construction times and overall costs. Early on, a young engineer named Jim Cummings developed a machine on tracks with a blade in the front raised and lowered by wire rope and winches enabling the machine to level, grade and move large quantities of dirt with great speed. The first bulldozer was patented by Mr. Cummings and the original patent hangs on the wall in Tulsa Oklahoma at the manufacturing plant of CRC-Evans Pipeline International, a company where I spent the first 42 years of my working career. Mr. Cummings was a partner of Crutcher, Rolfs and Cummings, hence CRC. Caterpillar Tractor acquired the patent rights and began using its' platform to build bulldozers, digging machines called back hoes, and other need specific attachments. The Cat Platform still today is finding new forms on the pipeline ROW as construction practices change and improve. Although there are many other companies that make similar equipment today, Caterpillar Tractor Company is today the premier supplier of track type equipment in all pipeline construction. Certainly no swipe intended to those other manufacturers similar high quality equipment. One of the most unique platforms developed is a piece of equipment used almost strictly within the pipeline construction industry and to a lesser extent in the railroad recovery industry called the SIDEBOOM TRACTOR. It enables the piece of equipment to transport a single joint of pipe along the ROW or when used in series, lower several sections of welded pipe into the ditch by "booming" in or out. Counter weights can be moved to offset the weight of the pipe sections to prevent the sideboom from tipping over. It is a transport platform used for almost every phase of pipeline construction. The operators of this equipment are highly skilled and trained over several years in the field. A good operator is very valuable to the contractor and paid accordingly. It is dangerous work and the operator uses arms, legs and visual capabilities to do his job. Railroad companies use this type of equipment to recover rail cars that have come off track and lifting other heavy loads Over the years the "caterpillar" platform first developed for war and pipeline use is a common denominator for many other construction industries. ROW CLEARING MACHINES Bulldozers are used in clearing ROW's and several machines taken from the forestry industry have taken a special form in the pipeline business. These machines fell
trees and then break them down into their components using branches and trunks to be turned into lumber, landscaping mulch, wood pellets for plywood, and many other consumer products. Chain saws, chippers and mulchers work together in harmony to again speed production and save for repurposing almost 90% of every tree cleared. DITCHING MACHINES These machines again work off a caterpillar track platform. The machine works off the same principal as a water wheel lifting water in a bucket, moving it upward and then poured down creating power for say an old time grist mill. In pipeline use the buckets on the wheel scoop up dirt as the machine moves slowly forward and deposits it on a belt that throws it out to the side leaving a spoil pile that can later be used to return that dirt to the same spot it came from, burying the pipe. Barbour Greene Company was a pioneer in developing this machine. Today the buckets on the wheel can be replaced by cutting bits that can saw through rock and other hard material eliminating or limiting the use of dynamite. The wheel is raised and lowered by use of hydraulics to compensate for hills and valleys keeping the depth of the cut ditch constant. Again, highly skilled operators play a very important role in this process. BENDING MACHINES As we learned in a previous article, there is no such thing as a straight pipeline. In early days, pipe was small in diameter and soft in its composition. To conform to the lay of the land, pipe was bent around trees until the proper radius was obtained. As diameters became larger and steel stronger it was evident that trees would not work as bending tools. Taking from the bulldozer technology and use of high strength wire rope, a machine was developed that pulled the piece of pipe around a die with a specific radius in a series of separate pulls. The pipe fit into the machine horizontal to the ground and was termed a Sidewinder Bending Machine or wrinkle bender. This was used for many years until an engineer from Tulsa,OK named Whitey Crose thought to bring the bending plane to a vertical position. His company, M.J. Crose Manufacturing started producing these machines in the early 1950's and the principal is still in use today. This saved time and produced a much smoother and accurate bend than the old Sidewinder. Over time an internal mandrel was developed to exert pressure from the inside of the pipe out keeping the pipe totally round and allowing for a greater degree of bend to be achieved. In the beginning, 20" diameter was the largest pipe to be bent. As the need for longer and larger pipelines developed, so the capabilities of the machines changed. For the building of the Alaskan Pipeline the diameters increased up to 48" and in the mid 1970's Shell Oil received a contract from the Russians to construct a dual 56" 1,300 mile pipeline from Siberia to Eastern Europe. In that period of time I took part the first successful bending of 60" diameter pipe in Tulsa, OK. The hydraulic pressure were so great that the scale rust popped off the steel and it actually smoked from the heat being generated during the bending process. That first machine and several others were used by the Russians to build the pipeline. Cudos to American engineering and manufacturing capabilities. WELDING PROCEDURES In the very early years of pipeline construction, welding of steel was in its' infancy. Replacing rivets,welding flat plate was common, but welding in a vertical circle was an issue not easily overcome. Therefore, early line pipe was threaded on both ends and screwed together which created more problems than it solved. Again the ever resourceful "pipeliner" came to the rescue. Harold Price developed a procedure which integrated both "down hill and up hill " welding to join two pieces of steel pipe together. Harolds' company, Price Brothers Welding pioneered the process still in use today almost 100 years ago. His company has morphed into Price-Gregory, one of the largest pipeline contractors in the world. As steel components changed so did the procedures to weld them. At first, outside clamps termed "birdcage clamps"
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were used to align the two joints prior to welding. As techniques progressed, inside clamps were developed using air and hydraulics to align the ends. This sped up the welding time and made production of welds per day skyrocket to 20 or 30. During the construction of the Alaskan Pipeline, stick rod was starting to be replaced with "micro wire" and a semi automatic machine called a double jointing rack came into being. This eliminated half the welds made on the ROW as the now 80' long joints were used. Offshore pipeline lay barges came into existence and refined the semi automatic process for use in underwater lines. The next logical step? You have probably guessed it. A fully automatic welding procedure. A young welding engineer along with others from TransCanada came to work for a company in Houston and over a period of years developed a system that welded both internally and externally at the same time. His name is Brian Laing. This revolutionized pipeline building around the globe. Starting with the first contracts for Brown & Root, and J. Ray McDermott offshore, this automatic process is today being used worldwide on both land and sea. Speeds are up to 150 welds per day on large diameter pipe and weld quality has kept pace with the speed. Who knows where this technology will go tomorrow. Outer space?? Coatings & COATING MACHINES Many miles of early pipelines were laid in the ground bare. Over time the steel would corrode creating the need for patching or replacing the lines. Corrosion protection was born!! Engineers developed a coating made from coal tar enamel to coat the pipeline extending its' in service life many times. First applied by hand, the tar was first heated to a liquid state in a pipeline kettle, poured into buckets on the ROW and "granny ragged" onto the pipe. A slow and messy process to say the least. Cleaning machines were developed to remove scale rust before the coating was applied. Then a mechanized machine called a Coat and Wrap machine would travel down the pipe applying the liquid coal tar enamel and felt, and finish wrapping it with a heavy type craft paper. The pipe was then lowered into the ditch protected from moisture intrusion which caused the rust. Tape coatings were developed over the years to restrict the use of tar and finally the coating of the bare joints was moved from the ROW to the plants where the pipe was manufactured. A number of new extrusion coatings were employed as well as coal tar and tape. Enter the world of EPOXY!! Today, coal tar enamel and tapes have more or less disappeared and have been replaced with FBE powder. Fusion Bond Epoxy coatings are used in over 90% of pipeline work today. Applied at the pipe mills they are sprayed in the powder form onto a steel joint heated to 470 degrees. The powder melts into the steel forming a barrier to even the harshest corrosion conditions. Still today 3 part and other special condition coatings continue to protect steel pipe from the elements. Again, the industry is still looking for young men and women who want to join the pipeline family. It's about careers, not jobs. Please feel free to contact myself or any of the advertisers in this publication for more information. As we proudly say in the industry, "AIN'T NOTHIN FINER THAN A PIPELINER" Ray Keller
ONG SPOTLIGHT Redevelopment of Old Coal Fired Power Plants in Pennsylvania By: Robert Johnson, President, ADKL LLC Pennsylvania has a number of coal-fired power plants remaining in operation. A recent U.S. Department of Energy report identifies 36 coal-fired, 38 petroleum-fired, 37 natural-gas fired, and 5 nuclear-fired power plants across the state. Recent discussion has centered around the older coal-fired plants and their future use. Can these older coal-fired plants be converted to natural gas? The Pennsylvania Department of Community and Economic Development (DCED) recently had a “playbook” prepared by Civil & Environmental Consultants, Inc. (CEC) which analyzed the Mitchell Power plant located in Donora along the Monongahela River in Washington County (March, 2018). This is an older coal-fired plant which after 65 years in operation stopped producing electricity in 2013. DCED conducted a study to determine the best possible future use of the facility. Three options were reviewed: 1. Natural gas/NGL-related Manufacturing – with one or two large enterprises 2. North and South Sites Industrial Park 3. Power Plant site – use of the site along the riverfront as a manufacturing facility The “Playbook” recommended the best use of the Mitchell Power Plant would be natural Gas/NGL-related manufacturing. The expanding natural gas industry in Western Pennsylvania makes natural gas and NGL supply chain-related industrial uses a logical fit for the Plant. The site should attract chemical and plastics manufacturers. Existing Land use, transportation, current environmental conditions, and market analysis were used in making this recommendation. A number of potential uses were studied including residential and mixed- use development. “Playbook” recommendations suggest utilizing the site’s existing rail and river access as well as the direct connection to the natural gas and NGL power supply. Manufacturers utilizing Shell Ethane Cracker-produced feedstock (plastics manufacturers), other NGL-intensive manufacturers (resins, chemicals, rubbers), and natural gas energy-intensive manufacturers (food, steel, glass) can be targeted to locate on the site. The cross-state Mariner East natural gas liquid pipeline runs under the north end of the site. A feasibility study and reuse strategy are described in the “Playbook” for site redevelopment. It estimates the number of jobs, tax revenue, and public support needed for the natural gas/NGL development. Environmental liability will be a challenge in attracting a developer to the Mitchell Power Plant. It could drive up costs and result in permitting delays. Any redevelopment plan must address this challenge.
Big Switch® is extremely user friendly making our laborer’s job safer and it’s the environmental wave of the future! -Jimmy Joyce Project Manager/Otis Eastern Services
Big Switch™, the flexible mesh tube
sock filled with switchgrass, helps retain sediment and other pollutants so cleaned water can flow through. Contact: Ray Keller, National Pipeline Sales Manager
732-245-7264 www.thefacilitators.net 740-680-0343
Patent Pending
From 1949 to 2005 coal-fired plants produced 51% of total U.S. electricity. Since 2005 coal-fired plants have been reduced accounting for just 30% of total U.S. electricity in 2016. Meanwhile, lower natural gas prices have resulted in a rise of natural gas-fired plants accounting for 34% of total U.S. electricity in 2016, surpassing coal. Natural gas-fired plants are on the rise in the United States. The conversion of aging coal-fired power plants to natural gas will continue to be a hot topic in the energy industry.
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Northeast ONG
INDUSTRY INSIGHT
REDUCING WASTE TO SAVE THE BOTTOM LINE By: Chris Chadwick, Business Development, SunnySide Supply In a typical year, the American construction industry generates enough waste or debris to create a wall approximately 30 feet wide and four feet high, that could run from New Your City to Los Angeles six times. This works out to an estimated 136 million tons annually. Like most others working in the Oil and Gas Industry, I see the importance of doing what we can to minimize our impact on the environment while still getting the job done. That being said, there are obvious environmental benefits to reducing waste, but in all honesty, when I look at that statistic my first thought is not the environment. My first thought is that there is a place in all aspects of our industry to increase efficiencies and save money during the construction phase and beyond. We all know that, in general, proper planning ahead of time is the key to controlling costs on any project. Why not consider probable waste and try to plan the project with a focus on waste reduction from the very beginning? When in the design phase of your project, try to be sure that any design changes are made before construction begins, thereby eliminating the waste associated with removing and replacing new construction. Yes, I do understand that the reality of the situation is that even the best plans can (and more time than not, will) end up needing to be changed on the fly. It then becomes very important to streamline the materials coming into the construction site, properly manage how the waste is separated, and be sure of where the waste ends up. Planning your projects with a focus on waste reduction comes with three major benefits: 1. Reduction of Overall Project Cost -Reduce “over-ordering” of construction materials for Cost Savings 2. Ability to Reuse Materials for Future Projects -Cost savings on ordering redundant materials 3. Reduction of Amount of Waste to Landfills -Added Cost Savings on Reduction of Waste Sent to Landfills
Photo of discarded steel stairs that could not be reused after a plan change in a gas processing facility.
engineered to be completely OSHA compliant. So often in our industry we see old ladders, platforms and steps rusting away in lay-down yards and storage areas, long forgotten and unable to be reused on other projects. The ErectaStep system is designed in lightweight aluminum for ease of assembly and product longevity. If plans need to be changed mid-project, this product can be reconfigured to fit without any waste. When using a custom fabricated stair or platform system, if any elevation changes occur after they are built, the materials must often be discarded. Having a product that can be redesigned and reused in the field will save days of labor and the expense of purchasing the same materials twice.
In my research for this article, I began looking for products and services designed to help project owners and managers find ways to reduce their construction waste and contribute to a “Waste Management Blueprint”, or general plan for waste management and reduction. Refuse Service Providers like Waste Management, and most other waste removal companies, offer several options for recycling and removal of everything from heavy steel and concrete to asphalt, gravel and aggregate products. These companies can also assist and consult project managers as to what materials it makes sense to resell, reuse or recycle. Many of these companies even have established waste reduction plans for certain types of construction that they can provide to help give direction to your specific project. Planning to use as much pre-fabricated components in your project is another great way to cut down on waste. In the Oil and Gas industry, companies like Exterran have been developing complete process packages that are delivered onsite already built, for years. The only outside materials being used are joining the complete process units together and tying them into the system, which has eliminated a great deal of waste from the industry’s bottom line. There is a manufacturer in South Carolina, ErectaStep Products, that has designed a platform and stair system that is completely modular, re-configurable and
Photo of concrete waste pile on a construction site.
Another great example of waste reduction that we see daily in the Natural Gas industry is the use of recycled shipping containers as storage units on sites and in plants, reducing waste by avoiding a new construction project. According to the managers that I regularly deal with in the industry, they are reducing waste far beyond the construction phase based on the fact that workers don’t have extra space to store unnecessary items. This storage solution also saves the waste from the original container owner reselling the unit instead of disposing of it.
Volume 8 Issue 3
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We have covered the basic ideas of planning a Waste Management Blueprint. We have discussed some ideas, services and products to reduce waste. The final piece of the puzzle is training and awareness. Without clear leadership and having all workers on the same page in regards to managing waste, the battle to reduce and save will be difficult. The answer is to make sure that all waste management goals are clearly defined and measurable, to take all necessary steps to educate workers on what is required of them to do their part, and to make it clear why following the plan is important. Making a waste reduction plan part of your standard operating procedure will ensure that every employee, from every phase of the project, will know exactly how your organization handles any and all types of waste. The ideas and products above are great steps in the direction of reducing waste on jobsites, but the amount of waste that can be diverted from landfills, as well as the resulting cost savings, will vary depending on countless factors. Smaller, geographically restricted job sites won’t always have space for separated material dumpsters, or anyone willing to service them. Proximity to recycling centers can also limit what can be recycled and whether or not it is cost effective to do so. These are areas where planning ahead will be helpful in the long run. Even if a jobsite can make recycling and reusing difficult, or even impossible, being more efficient with materials will reduce waste. Remember, the objective is to not create the waste in the first place. We know recycling unusable materials saves money, imagine the savings if there were no waste at all!
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For more information Chris can be reached at 724-947-9966 or chris@ sunnysidesupply.com
ONG SPOTLIGHT SHALE INSIGHT – Registration Open April 27, 2018 Registration for SHALE INSIGHTTM 2018 is now open! Celebrating its eighth year, the SHALE INSIGHTTM 2018 Conference and Exhibit is returning to the epicenter of the Marcellus and Utica Shale plays October 23-25 at the David L. Lawrence Convention Center in Pittsburgh. This year’s conference continues the partnership between the Marcellus Shale Coalition (MSC), the Ohio Oil and Gas Association (OOGA) and the West Virginia Oil and Natural Gas Association (WVONGA). “The SHALE INSIGHTTM 2018 Conference and Exhibit continues to be the nation’s leading industry forum for public-private dialogue on shale development. Our successful partnership with key regional trade groups in three of the top energy producing states in the country is proof positive that SHALE INSIGHTTM 2018 will provide industry leading information and one-ofa kind experiences for conference attendees and exhibitors. ” said MSC president David Spigelmyer. New for 2018, SHALE INSIGHT™ will integrate all exhibit hall activities with the general session main stage and breakout session presentations to create one dynamic show floor and networking experience! To generate even greater value for participants, we are also offering best-in-industry conference registration prices. “This event is a tremendous opportunity to showcase our region and the abundant energy opportunities from our industry. SHALE INSIGHTTM creates an
important forum to exchange ideas and heighten the dialogue around common sense energy policies. We're glad to be part of the continued success and work with our partners at the MSC and WVONGA.” said Matthew Hammond, Executive Vice President, Ohio Oil and Gas Association. SHALE INSIGHTTM 2018 guarantees a front row seat for the most important discussion on shale development, featuring some of the most prominent industry and government leaders. Attendees will network with the most influential industry executives and innovative thought leaders throughout the three days of technical and public affairs insight sessions, major keynote addresses, and dynamic combined conference and exhibit layout featuring all the major shale players. The conference will also feature daily educational sessions that explore various technical and public affairs-related topics. “This combined effort absolutely poses a unique networking opportunity for attendees. A number of energy producers as well as suppliers and vendors across Appalachia are active in more than one state,” added WVONGA executive director Anne Blankenship. Become a sponsor, host an exhibit, or register for the conference today by visiting www.ShaleInsight.com and capitalize on this unique opportunity to gain unprecedented industry access. We look forward to seeing you in Pittsburgh. Register now to take advantage of the early rates!
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SHALE CRESCENT NEWS
RETURN TO PROFITABILITY? OPPORTUNITY IS HERE NOW! By: Greg Kozera, Shale Crescent USA Last month I talked about how the technology of horizontal drilling and hydraulic fracturing has disrupted the natural gas and oil industry and created the shale revolution. In less than 10 years the United States has gone from energy crisis to the leading natural gas producer in the world. I talked about how the Shale Crescent USA Region has gone from 3% of US natural gas supply in 2010 to 30% of gas supply in 2017. Most important a new Study by IHSMarkit released in March says, a new petrochemical plant built in our Shale Crescent USA Region would have a 4 times greater cash flow and save $3.6 Billion over a 20-year period, compared to similar plant built on the Gulf Coast. The Shale Crescent USA is now most profitable region in the world for a petrochemical plant. For the past 75+ years the US Gulf Coast has been the most profitable region for petrochemical plants. This major disruption can also create opportunity for your company and the people of this Region. I noticed this morning on the “World Oil” magazine site that the natural gas price is $2.84 per MCF at the Henry Hub. Many of you might not remember the early 1980s but natural gas prices were just over $3 per MCF. Our natural gas prices are lower today than they were 35 years ago! Can you think of anything that hasn’t gone up in price in the last 35 years? I know that I’m earning a lot more today than I was in the 1980s. It shouldn’t be a big surprise that energy stocks are down from previous highs and some companies are struggling. Some things have changed from the 1980s. We now have the largest natural gas field in the world under our feet. In the 1980s our production potential was limited. We couldn’t produce enough natural gas to even fuel our region. We needed gas from southwest pipelines to meet our demand. The house I live in was built in 1983 on top of one of Columbia Gas Transmission’s largest natural gas storage fields. We have an all- electric home. We don’t even have natural gas available in our neighborhood because in 1983 gas supply was so low they couldn’t run any new distribution lines. Because of this the cost to heat my house with electricity this winter has been as high as $600 a month. My son has a similar sized house and four kids. His highest gas bill was $200 a month. Today, thanks to Marcellus and Utica production this Region is now an exporter of gas in all four directions. We are sending gas to Canada and the Midwest. The southwest pipelines have been reversed and Marcellus and Utica gas is being shipped south. Pipelines are being built to supply the southeast states of Virginia, North and South Carolina. Gas is also being shipped east to Cove Point Maryland where it is being shipped around the world. What a difference a few years makes. Natural gas from the Shale Crescent USA is having a global impact. Even the largest production companies in our region in the 1980s couldn’t produce enough natural gas to influence the gas market. Today this region produces so much gas that it is the market. The largest producing companies in our region have the capability to influence the market price for natural gas by their production. The Marcellus and Utica wells of today are world class wells. Despite all of all of the demand growth from pipelines naturally gas prices have remained stable and low because of increased supply. Forecasts don’t show any significant change in price. This is great for consumers but not so good for producers. Can anything be done to improve profitability for natural gas producers in the Shale Crescent Region and ultimately the rest of the local oil and gas industry? The answer may be in this illustration you saw last month showing the location of the Marcellus and Utica wells and processing facilities in the Region.
The ultimate key to improved profitability is to increase demand for natural gas close to the well head. This is something we have control of and can accomplish. Increased demand close to the wellhead will reduce transportation costs for producers and improve profitability. The best way to do this is to bring in industry that uses natural gas. This Region has a unique opportunity that is rare in the world. Manufacturing and petrochemical plants built in this region have the largest natural gas field in the world under their feet. They are also close to most of the demand for products in the United States. This can be a huge competitive advantage for them. As great as this is, it is meaningless unless they are aware that it exists. The sales expert, Jeffrey Gitomer says, “If they know you, like you and trust you, they may buy from you.” Companies need to know about the advantages the Shale Crescent USA Region offers before they can buy into the idea to locate here. The mission of Shale Crescent USA (the organization) is to carry this message to the world like we did in Japan in January and the World Petrochemical Conference in Houston in March. We are working hard to communicate the result of the IHSMarkit study to the world showing our Region’s greater profitability and competitive advantage to the petrochemical industry. (see illustration) In the 1800s it was the oil and gas from local wells that created the initial industrial development in our Region. We had a thriving glass industry for decades because we had natural gas, water, rail and were close to most of the population (demand) in the United States. We had a second industrial boom after World War II because natural gas from the southwest could be transported here on the long- haul pipelines built to transport oil during the war. These were built because German submarines were blowing up our oil transport ships. When United States oil and natural gas production declined, the Middle East and OPEC took over as the world’s leading oil and gas producer and we became the “Rust Belt”. This is changing and industry is coming back to the United States. We need to make sure that industry knows to come here. The Saudi Arabian delegate at the World Petrochemical Conference (WPC) in 2017 said, “Saudi Arabia can no longer compete with the United States in oil and gas.” It is because of transportation costs. Shale Crescent USA has had a lot of success so far marketing this Region. This is a large task and is getting larger as we begin to create interest like we did at WPC. We can’t do it alone. We need the help and broad-based support of the oil and gas and manufacturing industries as well as communities. Now is our time if we can seize this opportunity. The window won’t be open for long. We can choose to ship all of our natural gas and liquids to the Gulf Coast, Europe and Asia and become a Banana Republic. We can continue to pay the transportation costs to do this and accept low profitability. We can let the Gulf Coast and the rest of the world have the high wage manufacturing jobs that could be ours. We can let our children and grandchildren continue to leave for better jobs. Or… We can choose to make a difference and keep a portion of our natural gas and liquids here that can fuel a new industrial revolution eliminating the “Rust Belt” and give our people a reason to hope. We can create high wage career oriented jobs and raise the standard of living for the people of the Shale Crescent USA Region. We can improve the profitability of the oil and gas industry. We can create more jobs to keep our young people here. We can do all of this and with a little creativity improve the environment of the planet. We encourage you to help the Shale Crescent USA effort and make a difference in the future of this Region. Please contact us to find out how you and your company
Volume 8 Issue 3
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can make a difference at; www.shalecrescentusa.com or www.gkozera@shalecrescentusa.com A disruption has been created. The world has changed again and we are in the middle of it. Are YOU ready? Thoughts to ponder.
Greg Kozera is the Director of Marketing for Shale Crescent USA www. shalecrescentusa.com . He has over 40 years of experience in the energy industry. Greg is a leadership expert with a Masters in Environmental Engineering and the author of four books and numerous published articles, including numerous presentations, radio shows and TV.
4 SHALE PLAYS MARCELLUS
UTICA
ANTRIM
NEW ALBANY
NEWS FROM STEPS Buckeye STEPS is geared towards helping companies and its members to ensure a safe work environment for their employees, and to be good stewards of the communities in which we operate. One of the obstacles our industry is facing as a whole as we recover from the multi-year downturn, is the increase in new and inexperienced employees. According to Baker Hughes Rig Count, in 2017 the average rig count for PA, OH and WV combined was at 66. And currently we are at 81, which is greater than a 20% increase. In addition to the uptick in activity in the Marcellus and Utica basin, other operating areas have seen a tremendous surge in activity, such as that in the Permian in West Texas. This has caused companies to need to pull experienced personnel from this region to facilitate their operations in others, which adds to the number of inexperienced personnel in our area. At Buckeye STEPS, we would like to be able to assist with this issue by ensuring best practices for recruiting/onboarding, training and mentoring are shared throughout our network of oil and gas companies. This will be a focal point of upcoming meetings throughout the year. Buckeye STEPS would like to recognize the founders of this network in Ohio and thank them for their time served in bringing awareness to the many hazards of the oil and gas industry. This information has provided insight to many safety professionals and the boots on the ground. Our network has recently changed direction under the new board and will continue to build what the past members started. Our focus in Buckeye Steps is to create quality safety conversations within our meetings that will foster stronger alliances with BWC, OSHA and EMA, our current membership and the operational boots on the ground. There is power in numbers. Our membership grows monthly with a large amount of diversity of the companies who attend. Our membership includes representatives from most major operators in the basin, large service contractors and many smaller organizations. If we want to make change within this industry to make it an Incident Free environment, we must excel in our communication, provide best practices, get involved, and provide more outreach to those who
are affected directly by working on location in the oil and gas industry. -Devin Woods, Buckeye STEPS President For more information on Buckeye STEPS, Appalachian STEPS Network, STEPS of PA, Twin Tiers STEPS or the National STEPS Network contact Joe Greco/ Regional STEPS Advisor at joe@greco.tc
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Northeast ONG
INDUSTRY INSIGHT
SEMIOTIC SURVEYING By: Shayla Owens, Orion Strategies In short, seismic surveys provide information that allows oil and gas to be drilled in a way that reduces risk and minimizes impact to the environment. The ability to understand seismic data is crucial to mapping the earth’s disposition below the surface and is the necessary step before a drill breaks ground. So why would any gas company enter into a community without knowing everything they can about the socio-cultural lay of the land? And why enter without an experienced strategic communications team to lead the way? Semiotics – (semē'ädiks) n. - the study of signs and symbols and their use or interpretation Semiotics is not an obvious discipline in the science of oil and gas extraction but it does play a role in the process. The ability to interpret semiotic data in any area of the industry can reduce the risk of controversy surfacing around operations and can be beneficial in the building of relationships with locals. Semiotics involves interpreting behavioral norms, language, social and cultural etiquette, non-verbal communication, and more. In oil and gas, it is important to understand the way the delivery, sensory and emotional stimuli, and context of a message is interpreted by an audience. As the Swiss linguist and semiotician, Ferdinand de Saussure, said, “speech has both an individual and a social side, and we cannot conceive of one without the other.”
Sign The object/thing
Signifier The physical existence (sound, word, image) Wellhead / Valves / Green / Red / Pipes
Signified The mental concept (individual, social, cultural) Oil and Gas Industry / Technology / Prosperity / Energy / Non-renewable / Pollution / Prosperity / Big Business / Development / Clean / Harmful / Global Warming / Christmas Tree
In other words, people are going to interpret messaging on an individual level and then also on a socio-cultural level. This type of understanding of the semiotic landscape can play a key role in the success or failure of oil and gas exploration efforts. Saussure’s concept of a “sign” is represented in the human mind either by way of “signifieds” or “signifiers.” To help paint this picture a little clearer, let us look at the two main parts of a sign in the following image: Objects (äbjekts) n. – 1. material things that can be seen and touched. 2. a person or thing to which a specified action or feeling is directed.
Any kind of community outreach materials serves as messaging that can be interpreted by way of both signifier and signified. Even a harmless object can send a message that can spark national backlash and ignite a public relations nightmare. A harmless pizza coupon allotting one large pizza and a 2-liter for free from a local pizza joint, in certain contexts, can feel like an insult or a disregard to the feelings of the recipient, such as with the local residents that received such a coupon a few years ago in Pennsylvania after a wellsite incident. The signifier aspect of the coupon may have been a shade of blue with a bold logo reflecting the branding of the restaurant that was to give out the free goods. It likely had some images of pizza to entice customers. Now, consider the signified part of the coupon in a normal, non-crisis context. On a personal level, some people might have associated the restaurant with good food or nostalgic memories; perhaps it was the restaurant where one landowner couple shared a cheesy slice of pizza on a first date that later led to marriage. Or, on a social level, the restaurant could be the place to go after church on Sundays. In the context of the incident, however, the coupon starts to produce a different set of signifieds, and they are not positive, nor are they associated with the pizza restaurant any longer. Language (laNGgwij) – n. 1. the method of human communication, either spoken or written, consisting of the use of words in a structured and conventional way. 2. the system of communication used by a particular community or country. 3. the manner or style of a piece of writing or speech. When entering into a local community, it is important to understand the complexities and idiosyncrasies of a place and the groups of people that work, play, and raise families there. Although none are completely similar in their belief systems, socioeconomic standpoints, morals, etc., they all have one thing in common –they are insiders. Effective communications and relationship building is not about attempting or pretending to be local. It is about respecting the locals and their way of living, thinking, and speaking. The Appalachian region, for example, is home to some of the most bountiful shale plays in the world. It is a place where the pronunciation of one word in particular can say more about a person in one second than an hour conversation over beer can suffice. The mispronunciation of the word “Appalachia” in the Appalachian region is a harbinger for another word: outsider. When word is pronounced “AppaLAY-shuh” – when below the Mason Dixon Line – it becomes superciliousness and reflects a desire to not want to be associated with the place, the history, the culture and the locals who call themselves Appalachian. Appalachia is pronounced “Appalatcha” by Central and Southern Appalachians. A good way to remember this is the phrase “to throw an apple atcha,” which might actually happen if a south-of-theMason-Dixon-Line Appalachian has an apple in hand when the word is butchered again. Semiotic surveying, not seismic surveying, is the first step to energy development. Symbols, objects, and language are the foundation of culture which, along with natural resources, is a vast sum of the wealth of a place. Respect for those cultures and their values provides success in any business endeavor. For more information, contact Shayla Owens at 304-982-6050 x107 or sowens@ orion-strategies.com
Volume 8 Issue 3
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N E P
NORTHEAST U.S.
LEE SUPPLY’S SOLUTIONS
June 18-19 • Westin Convention Centre, Pittsburgh, PA
See How We Measure Up!
PETROCHEMICAL CONSTRUCTION
Join Us to Build an Industry, Not Just a Petrochemical Plant
HILARY MERCER VICE PRESIDENT PENNSYLVANIA CHEMICALS SHELL
FRANK BAKKER CEO US METHANOL LLC
STACEY OLSON PRESIDENT APPALACHIA CHEVRON
SAJJAD AHMED FORMER BECHTEL PROJECT MANAGER ON PTTGC OHIO CRACKER PROJECT SABIC
STEFANI PASHMAN ROBERT RICHARD CEO SENIOR VICE PRESIDENT OF ALLEGHENY CONFERENCE MAJOR ENTERPRISE ON COMMUNITY DEVELOPMENT PROJECTS DTE ENERGY
SECRETARY H. WOOD THRASHER CABINET SECRETARY WEST VIRGINIA DEPARTMENT OF COMMERCE
SENATOR CAMERA BARTOLOTTA STATE SENATOR PENNSYLVANIA SENATE
MORGAN O’BRIEN PRESIDENT AND CEO PEOPLES
LEE is a 3rd generation family owned business with a compiled 1402 years of work experience and expertise. LEE has more assets and resources in one location than anyone else. Including a fully stocked warehouse and a 10 acre pipe yard with over 2.5 million pounds of pipe. LEE provides HDPE pipe, fittings, and specialty fabrication – with an in-house T&Y machine and an automated perforation machine. LEE is a certified McElroy Service Center - providing Sales/Service/Rental capabilities. LEE has factory trained, fully insured and confined-space certified fusion technicians. LEE has a full service pump department with certified repair technicians.
Yes - that’s a long list! And that’s why there’s only ONE Lee Supply! Contact us to see how we measure up!
KEY THEMES AT THE CONFERENCE: PETROCHEMICAL PRODUCERS DETAIL THEIR CONSTRUCTION OUTLOOK & NEEDS
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FROM BUILDING A SINGLE FACILITY, TO BUILDING AN INDUSTRY
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Northeast ONG
New for DUG East in 2018
Our DUG™ conferences series introduces DUG Technology in 2018: Full-day technical programs on the second day(s) of our four biggest DUG conferences. DUG Technology will be held on Thursday, June 21 at the 2018 DUG East conference and exhibition in Pittsburgh. Full-conference attendees get this technology content as added value– and engineers and technical personnel may register at reduced rates for the second day only. For more information visit DUGTechnology.com
USE CODE ONG18 for $100 off Conference and Exhibition Pass
AT DUG EAST YOU’LL HEAR SPEAKERS ADDRESS: n
Drilling & Super Extended Laterals
n
Well Stimulation Practices
n
Water Complexities
DUG TECHNOLOGY IS ALSO YOUR CHANCE TO EXPLORE: n
What’s working now in the Appalachian region
n
Common practices employed by Appalachian operators (and why)
n
State-of-the-art technologies and products in the region
n
The status of full-field development plans
Don’t miss the FULL-DAY TECHNICAL PROGRAMS in FOUR REGIONS!
Presented by:
Hosted by:
May 23
June 21
UP NEXT
Sept. 21
Nov. 15