Page 1

PO BOX 1001 YOUNGWOOD, PA 15697

VOLUME 8 ISSUE 1

PRSRT STD U.S. POSTAGE PAID BECKLEY, WV 25801 PERMIT NO.19

$185 Billion Investment Linked to Shale Gas PG. 6

Expect PA Permitting Fees to Increase Across the Board PG. 18

Protect Your Workers and Optimize Productivity

SHALE CRESCENT NEWS PG. 16

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Northeast ONG

PIOGA 2018 Spring Meeting

TER REGIS ! TODAY.org ioga www.p

“We Are All In”

Wednesday, March 21 Rivers Casino, Pittsburgh A new year brings new opportunities for growth in our industry. It’s time to go all in! As commodity prices, rig counts, and well permits continue to trend upward, and as muchneeded pipeline projects are beginning to come to fruition, many are feeling the impacts of this new growth and renewal of the industry. Join us to gain the knowledge you need to succeed in these changing times for the oil and natural gas industry.


Volume 8 Issue 1

Page 3

ONG MARKETWATCH BLUE RIDGE MOUNTAIN RESOURCES, INC. ANNOUNCES $90 MILLION JOINT VENTURE FOR DEVELOPMENT OF UTICA AND MARCELLUS ACREAGE IN OHIO IRVING, Texas, January 29, 2018 -- Blue Ridge Mountain Resources, Inc. (“BRMR”) announced today it has entered into a definitive Purchase and Sale Agreement (“PSA”) with an undisclosed buyer (“Buyer”) pursuant to which Buyer will acquire from BRMR a 40% non-operated working interest in approximately 21,000 net undeveloped leasehold acres within the Utica and Marcellus shale formations located in Monroe and Washington Counties, Ohio. The total sales price is $56 million, subject to customary closing adjustments. At closing, approximately 22% of the unadjusted total sales price will be placed into escrow to be released on an on-going basis to BRMR as BRMR renews, replaces, or extends certain term leases in 2018 or brings such term leases to their secondary term through development and production activities. The total sales price represents a value of approximately $7,500 per net leasehold acre for leases in their secondary term and approximately $6,000 per net leasehold acre for leases in their primary term. At closing, BRMR and Buyer will also enter into a Joint Development Agreement (“JDA”) that establishes an area of mutual interest (“AMI”) located predominately in Benton, Ludlow and Grandview townships in Monroe and Washington Counties, Ohio. Under the terms of the JDA, Buyer will fund its share of the first year of drilling, completion and land renewal expenditures, which share is estimated to be approximately $36 million in 2018. Under the JDA, Buyer will have the right to a 40% participation in additional leasehold acreage acquired by BRMR within the AMI. BRMR plans to commence a one-rig development program within the AMI in Q2 2018, which program is anticipated to continue throughout the development of the AMI. Participation by Buyer in development activities post-2018 will be subject to the JDA and associated joint operating agreement terms and conditions. BRMR plans to use the cash proceeds from the transaction to fund its on-going two-rig development program, as well as consolidate its acreage position in Southeastern Ohio primarily through additional leasehold acreage acquisitions. The transaction is expected to close in early April 2018 and is subject to the satisfaction of customary closing conditions. John Reinhart, President and CEO of BRMR, commented, “We are very pleased to have entered into the PSA and look forward to closing this transaction. Partnering with the Buyer for development of our core assets not only accelerates our development activity, but also provides us with incremental liquidity for the acquisition of additional and complimentary inventory of high-quality Utica and Marcellus leasehold acreage. We believe the transaction will lead to further growth and value of our company for the benefit of our shareholders.” About Blue Ridge Mountain Resources, Inc. Blue Ridge Mountain Resources, Inc. and subsidiaries are an Irving, Texas based independent exploration and production company engaged in the acquisition, development and production of natural gas and natural gas liquids. Blue Ridge Mountain Resources, Inc. is active in two of the most prolific unconventional shale resource plays in North America, the Marcellus and Utica Shales, with production of 72 mmscfe/d from 105,000 net effective acres. Blue Ridge Mountain Resources Media Contact: ir@BRMResources.com (832) 203-4539 http://brmresources.com

Forward-Looking Statements This press release contains forward-looking statements regarding future events and future performance of BRMR and its subsidiaries. All statements other than present and historical facts contained in this press release, including statements concerning the closing of the sale by BRMR to Buyer, the proposed use of proceeds from such sale, development activities of BRMR and its subsidiaries and BRMR’s intent with respect to its acreage position in Southeastern Ohio, are forward-looking statements. The forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those reflected in the forward-looking statements. These risks include, but are not limited to, (i) inability of the parties to close on the sale by BRMR to Buyer as currently anticipated, (ii) inability of BRMR and its subsidiaries to execute on development plans and meet goals, (iii) inability to realize the expected value and benefits of the Joint Development Agreement referred to above, (iv) inability of BRMR and its subsidiaries to consolidate its acreage position in Southeastern Ohio and (v) risks associated with the oil and gas industry in general. Although BRMR believes that the expectations, estimates and projections reflected in the forward-looking statements are reasonable, BRMR can give no assurance that such expectations, estimates and projections will prove to be correct.

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Page 4

Northeast ONG

ASSOCIATION MEETINGS

OOGA Winter Meeting | March 7–9, 2018 Columbus, OH - www.ooga.org

PIOGA Spring Meeting | March 21, 2018 Pittsburgh, PA - www.pioga.org

ADDC Region II Meeting | April 26-28, 2018 Gaylord, MI - www.addc.org

ADDC Region I Meeting | May 17–19, 2018 Findlay, OH - www.addc.org

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PETROCHEMICAL: American Chemistry Council Report: $185 billion Investment Linked to Shale Gas......................................................................... 6 NEWS FROM STEPS............................................. 7 PIPELINE NEWS: Of Pipelines and Protests ............................................................................ 8-9 NEW TECHNOLOGY: The Ultra-Reliable, Free Piston Stirling Engine Harnessed for Today’s Oil & Gas Industry..................................................... 12-13 SHALE CRESCENT NEWS: We Have What the Japanese and Other Nations Need. Time to Help Them and Help Ourselves................................ 16-17 PENNSYLVANIA NEWS: Expect PA Permitting Fees to Increase Across the Board; PA State Budget......... 18-19 INDUSTRY INSIGHT: “The Art of Not-War”.... 20-21 NEW TECHNOLOGY: ConneXt LoneWorker: protect your workers and optimize enterprise productivity all in one solution.................................................. 22

EVENTS CALENDARS ASSOCIATION MEETINGS.................................... 4 NETWORKING EVENTS...................................... 15 TRAINING & WORKSHOPS................................ 23 UPCOMING EVENTS........................................... 11

OOGA................................................................... 24 PIOGA.................................................................... 2

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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 1

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: Supersize Me! Marcellus/Utica Well Pads Now Host Up to 40 Wells (Jan. 16) The Marcellus/Utica Shale industry is changing underneath our feet-literally! Last time we checked, most well pads in the Marcellus/Utica sported an average of maybe 3-4 wells, with a dozen wells on a pad being “big.” Something has changed, dramatically, in the gas fields of PA, OH and WV. The “new normal” are supersized well pads--holding as many as (gasp) 40 wells! We hasten to add no such pad yet exists, no pad yet has 40 wells drilled from it. However, there is an EQT well pad in Allegheny County (near Pittsburgh) with 38 wells permitted (9 of which have been drilled so far). EQT says it now averages drilling 17-18 wells per pad. Antero Resources is drilling an average of 9-10 wells per pad--up from 3-4 “just a few years ago.” The trend now is more wells per pad, and longer laterals, meaning fewer well pads overall. That’s good for the environment, and good for the bottom line (less money spent pushing dirt around developing pads). This post provides an update on the trend to supersize well pads in the Marcellus/Utica. To read the full story, visit: https://goo.gl/1uqSZM. #2 Most Read: Antero 2018: $1.45 Billion to Drill 125 Marcellus & 25 Utica Wells (Jan. 18) This past month Antero Resources, one of the biggest and best drillers in the Marcellus/Utica (concentrating on just those two plays), released highlights of their 2017 performance and “guidance” for 2018--their plan for what they will do in 2018. In 2017 the company reports average net daily gas equivalent production was 2.3 billion cubic feet per day, an 18% increase over the same quarter in 2016. In 2018, Antero plans to spend $1.45 billion. What will that buy them? In the PA and WV Marcellus, Antero will run five rigs and drill 120-125 wells, with an average lateral length of 9,300 feet. The company says they will average 9 wells per well pad this year. In the Ohio Utica, Antero will operate one rig and drill 20-25 wells with an average lateral of 11,600 feet. In both the Marcellus and Utica, Antero says the cost to drill those wells will go down another 9% this year over what it cost them last year. Antero continues to be one of (if not THE) best “hedgers” in the business--realizing more money for their gas and NGLs than any other driller in the region. To read Antero's 2017 update and 2018 predictions, visit: https://goo.gl/9NCNe6. #3 Most Read: Utica Pipeline Explosion in Noble County, OH Affects Natl Output (Feb. 2) On Wednesday, Jan. 31 around 2:30 am in the morning, a section of 24inch pipeline that runs from the MarkWest Energy natural gas processing plant in Noble County, OH and the Rockies Express (REX) pipeline (also in Noble County) exploded and caught fire. The Noble County Emergency Management Office says it happened about three miles north of Summerfield, Ohio, near Ohio State Routes 513 and 379. Fortunately, no one was injured. Neighbors heard the explosion and saw a glowing night sky. The only damage was to some nearby trees. That short segment of pipeline is known as the Seneca Lateral, owned by Tallgrass (owner of REX Pipeline). Tallgrass is investigating the cause of the accident. Believe it or not, that one pipeline and the gas it flows from the MarkWest plant to REX, carrying it to the Midwest, has caused the entire national output of natural gas to

Page 5 decrease by an estimated 2%, according to Reuters. A single small pipeline in the Utica can actually move the needle on national output! Right away the Sierra Club jumped into the story with a wild claim that the pipeline was not properly reviewed before regulators signed off on it. Typical headlinegrabbing propaganda from the Clubbers. Here are the details we could find about the explosion/fire: https://goo.gl/7MZjUB. #4 Most Read: Russian LNG Coming to Boston to Alleviate NatGas Shortage?! (Jan. 8) In May 2016, MDN brought you the news that a researcher at West Virginia University (WVU) believes a natural gas liquids (NGL) storage hub is what the Marcellus/Utica region really needs. According to Brian Anderson, director of WVU’s This is so wrong on so many levels. Our blood pressure went through the roof when we spotted a story that a shipload of Russianproduced LNG (liquefied natural gas) is almost certainly coming to Boston and will be delivered on Jan. 22nd. We suspect it may be an illegal shipment. Here’s what happened. The LNG tanker Christophe de Margerie loaded a shipment of LNG at Russia’s Yamal LNG plant--in the Russian Arctic-delivering it to the UK at the Isle of Grain terminal in Kent. The LNG was offloaded and stored, but not pumped into the UK grid. Instead, officials said the LNG would be resold to a higher paying customer. A few days later the tanker Gaselys loaded LNG from the same terminal in Kent. While those who own the shipment won’t say, it’s almost certain the LNG they loaded was the very same LNG unloaded a few days prior, from Russia. Gaselys is coming to America, to unload the Russian LNG in Boston, because New England is natural gas starved at the moment due to the ongoing cold snap. In order to camouflage its origin, the people involved “whitewashed” the gas by unloading in Kent, and then pretending they’ve reloaded different gas molecules from the same facility. It’s a farce. Fake. Fraud. The gas coming to Boston is Russian gas. The reason New England needs gas so bad is because of their elected leaders, people like Massachusetts Attorney General Maura Healey and Massachusetts Sen. Elizabeth Warren--both of whom adamantly oppose new natural gas pipeline projects in their state that would deliver cheap Marcellus/Utica gas to the region. Massachusetts residents should rise up against Healey and Warren for their actions which now mean New England is paying our ENEMIES for natural gas. How screwed up is that? Read more about it here: https://goo.gl/v1rQqs. #5 Most Read: Mountain Valley Pipe Gets FERC Approval to Begin WV Construction (Jan. 24) Mountain Valley Pipeline (MVP), a $3.5 billion, 301-mile pipeline that will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA, has just received permission from the Federal Energy Regulatory Commission (FERC) to begin tree clearing and construction of access roads and construction yards in five West Virginia counties: Wetzel, Harrison, Doddridge, Lewis and Braxton counties. The work will be allowed only where MVP has already obtained leases from landowners. This is the first actual construction to be authorized for the project, a milestone! MVP was approved last October. However, five national anti-fossil fuel groups filed a lawsuit two weeks ago to try and stop the project. Let ’em try! Here’s the great news that even as you read this, it’s quite likely the chainsaws are up and running: https://goo.gl/ScpLfK. Sign up to receive MDN's daily headlines email here: MarcellusDrilling. com/email-alert


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Northeast ONG

PETROCHEMICAL

AMERICAN CHEMISTRY COUNCIL REPORT: $185 BILLION INVESTMENT LINKED TO SHALE GAS By: Robert Johnson, President, ADKL LLC The American Chemistry Council 9 (ACC) recently highlighted chemical investment economic benefits from shale gas in a December 2017 report.

For more information about the reports above please go to: https://www.americanchemistry.com/ For additional information on how you can support the petrochemical industry please contact me at rjohnson@adkl.org

New domestic supplies of affordable natural gas and natural gas liquids (NGLs) have resulted in significant economic benefits to the United States economy. This gas supply creates a competitive advantage for U.S. chemical manufacturers resulting in more investment and domestic jobs. As of December 2017, there were 317 projects valued at $185 billion announced, with 48 percent of the investment completed or under construction. A large percentage of this investment is targeted for chemistry and plastic product exports. Increased exports will improve America’s trade balance. Shale gas development has attracted foreign investors and the United States continues to increase market share in natural gas production. ACC reviewed the 317 projects for economic impacts. Direct jobs from 2010 thru 2025 are projected at just under 70,000. The investments will lead to $26 billion in permanent new federal, state, and local tax revenue by 2025. According to ACC the Appalachian region has the potential to become a major petrochemicals and plastics manufacturing hub. Shale development including the Shell cracker plant currently under construction will generate new jobs, higher wages, and tax revenue for this region. We know the new cracker facility in Beaver County (PA) will create a minimum of 6,000 construction jobs. And yes, there are proposals for more cracker facilities in the Appalachian region. ACC has been providing excellent research regarding the economic benefits of ethane cracker development for the chemical industry. For the petrochemical industry, ACC projects the following impacts for the quadstate region of West Virginia, Pennsylvania, Ohio, and Kentucky: • $36 billion in capital investment • 101 thousand jobs created and supported • $28 billion in economic expansion • $2.9 Billion in annual tax revenues ACC produced a report in May 2017 titled “The Potential Economic Benefits of an Appalachian Petrochemical Industry. This report highlights lower natural gas costs in the region and shale gas chemistry/manufacturing benefits. It suggests the Appalachian Region is an excellent location for a second major petrochemical manufacturing hub in the United States. The region’s benefits are: • Proximity to abundant NGL resources from the Marcellus/Utica and Rogersville shale formations • Proximity to manufacturing markets • Will strengthen U.S. economy with employment and energy supply • Opportunity to enable high-value ethane use to create U.S. made products, while avoiding ethane rejection To maximize the benefits of shale gas and reach the $185 billion investment our new energy infrastructure must be completed. As you hear about pipelines and facilities planned in your community, please show your support for these projects by contacting your elected officials.

Robert Johnson President, ADKL LLC www.adkl.org


Volume 8 Issue 1

Page 7

NEWS FROM STEPS 11:30am-11:45am

Pipeline Update BEG Group, Ray Keller

11:45am-12:00am

Lessons Learned Ricc Brown, President PA Steps & CEO, Safety Consultants ESP

12:00am – 12:30am: LUNCH 12:30pm – 1:00pm: Penn College Tour Penn College, Craig Konkle SPONSORS ACV Environmental Twin Tiers STEPS (TTSTEPS) was founded in 2013 to cover the Northern Tier of PA and the Southern Tier of NY. STEPS, Service, Transmission, Exploration & Production Safety is a collaboration of OSHA, NIOSH and STEPS Alliance working together to prevent fatalities, injuries, and illnesses in the US onshore exploration and production sector of the oil and gas industry. The TTSTEPS vision statement: “Incident-Free Operations” is the corner stone of the organization and drives the meetings and teaming efforts. TTSTEPS has recently reorganized and now covers from State College, PA North and East to include PA and NY. The Bi-monthly meetings are now being held in Williamsport, PA. The next scheduled meeting is February 21st, 2018 from 9:00am-1:00 pm at Penn College, Williamsport PA. We would like to encourage participation for all that would like to attend. To be added to the invitation list, please send you contact information to ggrenoble@acvenviro.com or call 717706-4636 for Glenn Grenoble, President TTSTEPS. Joe Greco is the Regional Adviser to Twin Tiers STEPS and STEPS of Pa covering Pennsylvania, Appalachian Steps Network of West Virginia and Buckeye STEPS of Ohio. Joe can be reached at joe@greco.tc for information on Nation al STEPS and the STEPS Networks mention above. See agenda below Twin Tiers STEPS Meeting February 21st, 2018 Penn College, Williamsport PA: 9:00am-1:00pm AGENDA 8:30am – 9:00am: Coffee – Meet & Greet 9:00am – 9:15am: Introductions – Sponsors/Newbies/Safety Minute 9:15am – 9:30am: TT STEPS / STEPS of PA / Regional Steps Updates Glenn Grenoble, President, Twin Tiers Steps Ricc Brown, President, STEPS of PA Joe Greco, Regional STEPS Ad., National STEPS 9:30am – 9:45am: OSHA UPDATE: OSHA, Mark Harmon 9:45am – 10:30am: “Stop the Bleed” UPMC, Tony Bixby 10:30am – 11:00am: Crisis Management & Best Practices Steptoe-Johnson, Brian Pulito 11:00am – 11:30am: Dangers of Hydrate’s & Pyrophoric Iron Sulfide Multi-Chem, Ian Straffin

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Northeast ONG

PIPELINE NEWS

OF PIPELINES AND PROTESTS By: Ray Keller, National Sales Manager, Pipeline Division, BEG Group, LLC Energy, and the ability to produce and deliver energy to the marketplace is, depending upon circumstances, the number 1,2, or 3 commodity that is most important not only to the comfort and survival of our population, but the most basic tool needed to ultimately insure the freedom and existence of our Country. Look back a short time ago to WW ll. The Japanese began aggression towards other neighboring countries not only to secure land for their growing population, but had virtually no natural energy resources of their own to fight a successful war, sustain its' manufacturing plants, keep their population warm, and soldiers supplied with food and weapons. An unloaded gun is a club. Does anyone remember how we defeated Rommel, The Desert Fox, in Africa, and his superior German Panzer tanks? We ran him out of fuel. Several of the pipeline projects currently under construction are being challenged by those against pipelines who have no more interest in whether the pipeline gets built or not except for the fact that they may get their picture on the evening news!! Fifteen minutes of fame. Little do they know that the pipeline, by federal law, will get built much to the benefit of the American citizens, government and industry. The only real thing the protestors can accomplish is delaying the completion of a project, missing its' in-service date, and increasing delivery costs of the product to the consumer. That cost will be reflected in industrial and residential electric, natural gas and fuel oil rates to all consumers. Let's take just one prime example. The State of New York. It is the most highly taxed state in the union followed closely by CA and NJ. Surprise, surprise. The state treasury is bankrupt, and they have passed anti fracking and pipeline construction legislature by virtue of a loophole in the law stating they can deny a very critical water permit. Governor Como has thus far been successful in the courts and blocked several major projects proposed by National Fuel Gas, and Williams/TRANSCO that would greatly relieve the critical energy shortage in NY. But let's go back to my previous statement. The pipeline, once approved by FERC and the Federal Government will be built. Mr. Como must have missed the history lesson stating that federal law TRUMPS state law. The Marcellus Shale Formation extends into the state of NY. If they would have chosen to develop that resource for the good of its' citizens, they would not be bankrupt, they could have ample energy reserves, and heaven forbid, perhaps lower taxes and create careers, not just jobs. During this winter’s cold snap, the pipelines could not keep up with the demand for natural gas in NY. Their uninterruptable contracts, those with schools, hospitals, military bases and law enforcement took up all of the available capacity. So now the interruptible service contracts with those who heat their homes, electric generating companies, private businesses, in other words you and me, go to the spot market. It's like buying the last snow shovel at the hardware store in a blizzard. The price goes through the roof. And don't you think the very same people protesting the building of pipelines squealed like pigs under a gate when their natural gas prices were increased over 310% should just the Williams/TRANSCO project have been in service. The current problem is not the shortage of the product, natural gas, but the shortage of the ability to get it to market. Furthermore, NJ and most all of New England are in worse shape. I have spent my entire working career providing equipment and services for the responsible construction of pipelines in the US, Canada, and Mexico. I will continue to do so for as long as I can because I believe what I do makes our lives in The United States of America better. Now let's get onto the task at hand by updating last month’s projects.

MILLENNIUM P/L VALEY LATERAL 16" Orange County NY This was completed on budget and on time allowing additional electrical generation to begin with the opening of the already built Cogen plant WILLIAMS TRANSCO CONSTITUTION PIPELINE PA & NY Still on hold NEXUS PIPELINE 255 Miles 36" in 4 Spreads Hanoverton Ohio to Wadsworth Ohio Wadsworth Ohio to Clyde Ohio Clyde Ohio to Waterville Ohio Waterville Ohio to Ypsilanti, MI Work will begin pending final FERC Permitting early spring 2018 Spreads 1, 3, & 4 Michels Pipeline Spread 2 Latex Construction MOUNTAINEER EXPRESS 172 miles 36" WV Spread 1 Welded Const. Spread 2 Snelson Construction Spread 3 & 4 Associated Pipeline Spread 5 & 6 Price Gregory Spread 7 & 8 Henkels & McCoy PENN EAST P/L Joint Venture NJR,SJI,SEP,UGI 126 miles various diameters Bids are in No start date HOWARD GATHERING SYSTEM Howard Energy 10 miles 8' & 16" Tioga City, PA Precision P/L april start Tri County Bare Steel Project 12 miles 20" Washington County, PA Contractor TBD June 2018 start BATTLE RUN DISCHARGE Williams Midstream 12 miles 24" Triadelphia WV Start TBD ACCESS NORTHEAST Spectra Energy National Grid 96 miles 24",30", 42"


Volume 8 Issue 1

Page 9

NY, CT. MA Start June 2018 Awards TBD

Spread 11 TBD

BIRDSBORO PIPELINE POJECT DTE Midstream 14 miles 16" Berks County PA Awards TBD ATLANTIC COAST PIPELINE Dominion Transmission 580 miles 42', 36' & 20' WV, VA, NC USPL, Michels P/L, Price Gregory, Rockford Corp. Spring start Awaiting final FERC

Mark West Energy 28 miles 20" Cadiz Ohio May 2018 TBD Williams TRANSCO 35 miles 42" & 26" Lancaster CountyPA & Middlesex County NJ June 2018 start TBD

DOMINION TRANSMISSION 39 miles 30" & 36" PA & WV Awaiting awards and FERC EQT NEXT ERA 303 miles 42" WV, VA April start Spreads 1-5 Precision P/L Spread 6 Price Gregory Spread 7 & 8 US Trinity Energy Services Spreads 9 & 10 Precision P/L

This is a list of major projects only. There are many more needing skilled and unskilled workers. If you have a skill you think might be useful to a contractor and are looking for hard work and a great wage, I would encourage you to contact one or more of the contractors mentioned here. They will all be looking for help. Please remember you will be working under the DOT Safety and Drug Policy rules.

PLAN YOUR 2018 NORTHEAST ADVERTISING! In addition to our regular print distribution of over 8,000 industry professionals, the Northeast ONG is distributed at conferences, expos and meetings throughout the region. These issues are anticipated to be distributed at the following conferences: Volume 8 Issue 2

Materials Deadline

Anticipated Additional Distribution

March 22

Ohio Valley Oil and Gas Expo

Issue 3

April 27

Eastern Gas Compression Roundtable

Issue 4 June 1 DUG East Issue 5 July 12 Issue 6

August 23

Shale Insight/WV Energy Expo

Issue 7 October 11 OOGA Technical Conference Issue 8 Dec 6 Marcellus-Utica Midstream Conference

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PO Box 1001, Youngwood, PA 15697

www.ongmarketplace.com

info@ongmarketplace.com


Page 10

Northeast ONG

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Volume 8 Issue 1

Page 11

UPCOMING EVENTS MARCH

APRIL

1-2

9-10

Illinois Oil and Gas Association Convention

OGIS New York

Evansville, IN | www.ioga.com

New York, NY | www.ipaa.org

6-8

10-11

IADC/SPE Drilling Conference and Exhibition

National Fluids Conference & Exhibition

Ft. Worth, TX | www.spe.org

Houston, TX | www.aade.org

7-9

16-17

Ohio Safety Congress & Expo

WVMA Marcellus and Manufacturing Development Conference

Columbus, OH | www.bwc.expoplanner.com

Morgantown, WV | mmdc.wvma.com

8-9

25-27

NGA Annual Sales & Marketing Conference Newport, RI | www.northeastgas.org

PESA Annual Meeting Greensboro, GA | www.pesa.org

21

30-3

Crackers, Storage, and Pipelines 2018 Canonsburg, PA | www.kallanish.com

22-23

Offshore Technology Conference Houston, TX | www.otcnet.org

NARO PA Convention State College, PA | www.naro-us.org

27-28 Produced Water Management Pittsburgh, PA | www.shale-water-marellus-utica.com

27-28 SPE/ICoTA Coiled Tubing and Well Intervention Conference The Woodlands, TX | www.spe.org

MAY 3 NGA Regional Market Trends Forum Hartford, CT | www.northeastgas.org

7 Energy Capital Conference Dallas, TX | www.hartenergyconferences.com

17 IADC Drilling Onshore Conference & Exhibition Houston, TX | www.iadc.org

Denotes National Event

Visit our website for links to these events

WWW.ONGMARKETPLACE.COM/EVENTS


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Northeast ONG

NEW TECHNOLOGY

THE ULTRA-RELIABLE, FREE PISTON STIRLING ENGINE HARNESSED FOR TODAY’S OIL & GAS INDUSTRY. By: Isaac Garaway, PhD, Chief Technology Officer, Qnergy and Dan Midea, North American Sales Manager, Qnergy, The Oil and Gas Industry has unique power requirements: low maintenance, lowcost, low-emissions and high reliability. A Stirling-based approach offers a new, rock-solid solution. Working in operations in the oil and gas industry is a non-stop challenge. You’re reviewing a grid permitting document for a remote site. You sometimes feel that paying for extending the electrical utility grid and the huge amount of redtape around it is a waste of time. The phone rings. Another malfunction at a remote well site due to a failed on-site power source. This was expected after two days of – 350F at the site. You have to send in a technician for a full day to fix the system. More downtime, more lost revenue. You reopen a month-old proposal from a remote power generation service company. You originally did the ROI calculation and rejected it. Maybe you should reconsider, but the rates are exorbitant. The complexities of such a decision are not lost on those of us who have had to face such challenges to get work done in some of the most remote parts of the country. Regardless of your position, if you want to focus on optimizing oil and gas production, getting electrical power out to your site is an essential ingredient. No one wants to pour their limited resources into power sources that don’t work and ultimately lead to additional headaches and cost. In addition, we’ve all recently found ourselves facing additional environmental concerns. These are making it more difficult to employ large, noisy and oversized (above 30 kilowatts) generators and microturbines for loads that are just a few kilowatts. The power mismatch leads to excessive greenhouse gas (GHG) emissions and does not look good on the corporate sustainability reports.

An Unmet Need The necessity for a 500 watt to 15,000 watt power range is increasingly being felt by operators. Many sites have electrical loads greater than 500 Watts and are left in a predicament as they do not qualify for the installation and maintenance of large power platforms (gas turbines and multi-cylinder diesel generators). Applications like this include SCADA (data communications) and wellhead controls. The upper range includes compression, cathodic protection, mainline valve operation and other critical loads. Unfortunately, the current solutions have proved to be too costly to purchase and operate. At the 500 watt level, most reliable remote power technologies cost in the vicinity of $50 USD/ watt or more. “Green”, renewable solutions have similar pricing per watt but can also prove to be unreliable in inclement weather. A remote power site, such as an impressed-current rectifier or multi-well natural gas pad requiring more than just a few hundred watts, can become very expensive to operate. Going External Combustion Qnergy (Ogden, UT) is now revolutionizing the remote power market. Over 200 years ago Rev. Robert Stirling invented the original external combustion Stirling engine. The principal “Stirling advantage” is that it is a closed-cycle external combustion engine, meaning the heat source is outside the engine and the inside of the engine can be sealed. Stirling engines also make use of a regenerative heat exchanger that allows them to re-use their heat. This regeneration feature is what makes the Stirling Cycle efficient, while allowing it to be powered by virtually any fuel. The main challenge in adapting the conventional Stirling engine to oil and gas remote power was; how to make it a virtually zero-maintenance engine. Qnergy addressed this challenge by applying a special and proprietary variant of the Free Piston Stirling Engine (FPSE). Through a hermetically sealed generator casing, with few moving parts and a novel heat exchanger design, the Qnergy PowerGen series of generators transform heat into electricity directly by using linear alternators. Qnergy’s design breakthroughs have resulted in extremely reliable, maintenance free generator platforms. Qnergy generators have demonstrated millions of cumulative operating hours in a broad range of applications, using many different types of fuel sources. Designed with extremely long-life components, early series generators have already successfully demonstrated over 100,000 cumulative hours of maintenance–free operation.

Systemic Inefficiency This situation is hardly unique. The U.S. has about 900,000 wells and 305,000 miles of interstate and intrastate transmission pipelines (source: EIA). Globally, the Oil and Gas Industry spends about $10B per year on electricity. About $1.5B is spent on solutions in the smaller than 10 kilowatt range. Many of the wellhead sites in the U.S. and Canada have a need for expanded electric power - either the sites are too far from the electric grid or too far from large centralized power generating stations. The industry depends on reliable and predictable energy supply for pumping, conveying, surveillance, communication, cathodic protection and other critical applications. In the last few years, there is also pressure to reduce GHG emissions. However, today the industry relies on high-cost and high-maintenance ‘remote power’ solutions, which distract resources from driving positive results in core KPIs. None of the existing remote power solutions seem to address the issues that concern the site operator.

As a testament to the robustness of this solution, the Assets Integrity Manager of a Large Interstate Pipeline Company in North America recently noted “The Qnergy PowerGen operates seamlessly and maintenance free within our critical infrastructure. It has an extremely high level of reliability, is easy to operate and


Volume 8 Issue 1 has remote-control capabilities. We don’t expect to use any other alternative power systems on our remote power sites throughout our Rocky Mountain, Appalachian and Gulf Coast Regions.” The Qnergy PowerGen technology was initially developed for deep space exploration and tactical military applications, where it performed remarkably well, providing anywhere from just a few tens of watts to kilowatts. Over the last five years, the system has been modified to provide remote power generation solutions specifically for the power needs of the Oil and Gas Industry. The PowerGen system outputs grid-quality AC power. Thus, it can be used on any remote location to provide seamless and uninterrupted power, as if the site was connected directly to the electrical utility grid. The PowerGen system is also able to provide thermal energy for heating. A simple glycol loop circulation system can be driven without the need to add costly equipment to an existing site. If the end user would rather have direct, radiated heat for a building or a remote instrumentation shed, the PowerGen has an HRU (Heat Rejection Unit) that can be installed remotely. The HRU will take the waste heat (up to 60,000 btu/hr) and blow it directly into the customer’s building or enclosure, thus eliminating the need for a catalytic or expensive gas driven heater. Given that PowerGen technology can be installed at a fraction of the cost of other competing remote power solutions, there is an appreciable growth of this generating technology throughout the US Gas Operation and Transportation Networks. These generation platforms are particularly strong for automation, communication, control and cathodic protection applications. With automatic power modulation capabilities these systems have the ability to increase power output, as the need for additional current grows, without the need to add more expensive hardware. This provides a reliable and economic long-term solution for every aspect of Oil and Gas Operational Networks. Where ROI Meets Sustainability The drive to reduce GHG emissions throughout North America has led the industry to carefully take notice of the PowerGen systems as well. Using a tightly controlled, air-assisted combustion process, the PowerGen is highly efficient in eliminating GHG emissions, compared to other forms of remote power technologies.

Page 13

LEE SUPPLY’S SOLUTIONS

See How We Measure Up! 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!

Furthermore, at less than $6 per watt, the system has the shortest payback time for any remote power generator in the industry. Energy Certainty As you tackle your daily remote power challenges, remember that Qnergy has your solution ready. The PowerGen systems are low maintenance, lowcost, low-emissions and high reliability. For more info, please contact, Isaac Garaway, PhD, Chief Technology Officer, Qnergy and Dan Midea, North American Sales Manager, Qnergy at Dan.midea@ qnergy.com, www.qnergy.com, 80 1-752-0100

1-800-353-3747 • leesupply.com


Page 14

Northeast ONG

ONG MARKETWATCH USA COMPRESSION PARTNERS TO ACQUIRE COMPRESSION BUSINESS FROM ENERGY TRANSFER PARTNERS • Acquisition by USA Compression of 1.6 million horsepower expands USA Compression’s geographic reach into active basins, including Eagle Ford Shale, Gulf Coast, Rockies and Permian Basin • Essentially doubles USA Compression’s fleet to 3.4 million horsepower; enhancing USA Compression’s focus on large horsepower installations • Transaction structure strengthens USA Compression’s balance sheet and distribution coverage levels • Enables ETP to reduce leverage with $1.225 billion in cash consideration, strengthening ETP’s balance sheet • Energy Transfer Equity to acquire the general partner interest in USA Compression AUSTIN, Texas & DALLAS--(BUSINESS WIRE)--Jan. 16, 2018-- USA Compression Partners, LP (NYSE: USAC) (“USA Compression” or “USAC”), Energy Transfer Partners, L.P. (NYSE: ETP) (“ETP”) and Energy Transfer Equity, L.P. (NYSE: ETE) (“ETE”) today announced a transaction valued at approximately $1.8 billion, providing for (i) the contribution of ETP’s subsidiaries, CDM Resource Management LLC and CDM Environmental & Technical Services LLC (collectively, “CDM”), to USAC (the “Contribution”) and (ii) the cancellation of the incentive distribution rights (“IDRs”) in USAC and conversion of the general partner interest in USAC into a non-economic general partner interest (the “IDR/ GP Restructuring”). As part of the transaction, ETE will acquire the ownership interests in the general partner of USAC (the “GP Acquisition”) and approximately 12.5 million USAC common units from USA Compression Holdings.

Management Commentary Eric Long, President & CEO of USAC, commented, “This is an exciting day for USA Compression to be able to announce this strategic transaction with Energy Transfer. USAC’s acquisition of CDM is a logical combination of two leading compression service providers – each with nearly two decades of delivering exemplary levels of customer service. Operating in different areas of geographic focus with nominal overlap, CDM brings to USAC a complementary and standardized fleet of large horsepower, infrastructure-oriented equipment, a customer-focused operating philosophy and a strong employee base consistent with those of USAC’s. CDM has been very successful building its compression and treating business; we are excited about the possibilities that the combined partnership will continue to grow and deliver on the exceptional customer service on which our customers depend. "In addition to bringing on the compression and treating assets, we look forward to welcoming talented and skilled CDM employees, who have built the company into a strong market participant, into the USAC organization. This transaction gives USAC the geographic reach to compete in all the active producing regions.” The information contained in this press release is available at www.energytransfer. com and www.usacompression.com.

This press release features multimedia. View the full release here: http://www. businesswire.com/news/home/20180116005771/en/ Transaction Impact The transaction is expected to be accretive to USAC’s distributable cash flow in 2018. In addition, as discussed in more detail below, ETP’s receipt of a special class of common equity that will not pay distributions for the first year will provide for increased USAC LP coverage, which is expected to be in excess of 1.0x in 2018 and increase over time. In addition, USAC’s leverage is expected to decrease to mid-4x by the end of 2018. The transaction is also expected to strengthen ETP’s balance sheet by allowing ETP to use the approximately $1.225 billion in cash proceeds that it will receive in connection with the transactions to reduce leverage. CDM currently owns and operates approximately 1.6 million horsepower of natural gas compression and is focused primarily on large horsepower applications. The acquisition of CDM is expected to provide significant benefits for USAC unitholders as the combined business will have increased geographic coverage and will be one of the leading domestic compression providers. The acquisition will further expand USAC’s geographic presence into regions where USAC is currently underrepresented and will result in USAC having broad coverage across U.S. regions. As part of its overall service offerings, CDM also provides a full range of gas treating and emissions testing services. CDM’s treating activities will also complement USAC’s growing station services offerings, in which USAC provides turnkey gas handling solutions for customers. With over 70% of horsepower greater than 1,000 horsepower and an average unit size of approximately 700 horsepower, the CDM fleet has an average age of approximately 7 years and a current operating utilization rate of 87%. On a pro forma combined basis, USAC will own and operate a compression fleet of approximately 3.4 million HP. For 2018, CDM’s EBITDA is estimated to be in the range of $160 - $170 million, not including the benefit of synergies, which are expected to be at least $20 million on a run-rate basis. Consistent with past practice, USAC expects to provide full-year 2018 guidance at the time of its fourth-quarter earnings call.

4 SHALE PLAYS MARCELLUS UTICA ANTRIM NEW ALBANY


Volume 8 Issue 1

Page 15

NETWORKING EVENTS Jeff Metz

537 Park Drive Weirton, West Virginia 26062

jmetz

February 20 ABGPA Midstream Speaker Luncheon Canonsburg, PA | www.abgpa.org March 7 YPE Crew Change TBD | www.ypepittsburgh.org March 13 SPE Section Meeting Carnegie, PA | www.connect.spe.org/pittsburgh/home April 10 SPE Poster & Pints Carnegie, PA | www.connect.spe.org/pittsburgh/home May 15 SPE Section Meeting TBD | www.abgpa.org May 15 ABGPA Midstream Speaker Luncheon Canonsburg, PA | www.abgpa.org

FOR MORE EVENTS VISIT WWW.ONGMARKETPLACE.COM/EVENTS


Page 16

Northeast ONG

SHALE CRESCENT NEWS

WE HAVE WHAT THE JAPANESE AND OTHER NATIONS NEED. TIME TO HELP THEM AND HELP OURSELVES. By: Greg Kozera, Director of Marketing, Shale Crescent USA “Konnichi- wa” That is Japanese for “Hello”. As I write this I am flying somewhere over the Pacific Ocean on our way back to the USA from a week in Tokyo, Japan. We had a good Team. Besides myself representing the Shale Crescent USA, we had Emily Tucker, Manager of International Business Development for AEP and Clay Riley, a loaned Executive to the West Virginia Development Office. We contacted over 20 companies and organizations this week in Tokyo including the US Embassy in Japan. We presented our story on abundant economic energy in the Shale Crescent USA. (That is how eastern Ohio, western Pennsylvania, eastern Kentucky and West Virginia have been branded in order to compete with the US Gulf Coast.) If the Shale Crescent USA were a country we would be the #3 natural gas producer in the world? Only the rest of the USA and Russia have more natural gas.

Japan is an island country consisting of more than 3,000 islands. The four main islands are Hokkaido, Honshu (where Tokyo is located), Shikoku and Kyushu. The total area of Japan is about the same as California. The country stretches far enough south that some islands can grow tropical fruit. Tokyo is cooler. Its climate is slightly warmer than ours. This week we had temperatures in the upper 40s for a high and low 30s for lows until last night when it started snowing. We got about an inch which is rare for Tokyo. This small island nation is home to over 127 million people compared to the USAs 325 million. Their gross domestic product is about 25% of the USA. The population of the Tokyo metropolitan area alone is over 35 million people compared to West Virginia’s 1.8 million. I felt perfectly safe on my morning runs. It is crowded. They use all available space. The air was clean and as well as the sidewalks and back streets. I did not see a single cigarette butt on the ground the entire time we were here. It is surprisingly quiet compared to New York City. They use a lot of hybrid vehicles which are smaller than typical American cars. We saw few traffic jams. Trains are the predominant means of transportation. Tokyo station is huge. Over 6 million people go through it every day. We experienced morning rush hour going to an appointment. Our train car was packed and somehow before the doors shut they literally pushed half a dozen more people into it before closing the doors. We could not move at all. When we arrived my wife and I took the train from the Narita airport into Tokyo, an hour- long train ride. We had no idea how to even get out of the station from basement level four and find a taxi to get to our hotel. The signs are in Japanese with a little English sprinkled in. That didn’t help me. The Japanese people are incredibly friendly and helpful. A couple actually told us to follow them out of the station

and took us to the taxi stand. The gentleman wrote done our hotel name and address in Japanese to give to the cab driver since he said most can’t read or understand English. Another change, the furniture is smaller and built closer to the ground than in the USA. Because of its small size Japan is resource poor. The majority of their energy comes from natural gas. (LNG) They also use a lot of coal and oil. Since the 2011 earth quake and tsunami, nuclear power has been in decline and is being replaced by LNG. When Cove Point Maryland is operational half of its LNG will go to Japan. Japan needs energy and we have energy. We (the Shale Crescent USA) also have raw materials like natural gas liquids (NGLs), propane, butane and ethane that are the building blocks for petrochemicals that Japan needs. They currently buy them from the Middle East or the Gulf Coast. Japanese companies can also choose to use our resources and locate here to build products in the Shale Crescent USA and distribute in the USA or to the world. We were the keynote presenter at the Japanese Petrochemical Association (JPCA) meeting in Tokyo. This is a relatively small organization but it is a who’s who of the Japanese Petrochemical industry. We had a packed room. I noticed that when I said that almost 1/3 of the USA’s natural gas is coming from the Shale Crescent USA up from just 3% in 2010, everyone was writing. It also got their attention when I said that the Shale Crescent USA produces more natural gas then Texas. They know about Hollywood and New York City. They know about Texas from westerns and oil. They assumed that the USA’s oil and natural gas came primarily from Texas. We were also told not to expect any questions. We were flooded with good, well thought out questions. We talked to people afterward have been attending these meetings for years. They have never seen that much interest and so many questions. We had a full schedule of private meetings with Japanese petrochemical and manufacturing companies. We also had a series of meetings at the US Embassy. They were very helpful and also had no idea the Shale Crescent USA is where 100% of the growth of US natural gas supply is coming from. All of our work can help improve the USA’s trade balance with Japan. Business relationships develop slowly in Japan. They are essential for any organization that wants to do business with the Japanese. Decisions are not made quickly. I learned that a major decision like an expansion requires a unanimous vote by the Board of Directors. The purpose of this trip was to make the Japanese petrochemical industry aware of the Shale Crescent USA’s advantages of 1) Abundant economical natural gas and natural gas liquids (NGLs). 2) Abundant freshwater 3) Proximity to 50% of US and Canadian markets and 4) An experienced workforce. The Japanese had no idea that the Shale Crescent USA had not only abundant affordable energy but that it is literally right under the manufacturing and petrochemical plants in the Region.


Volume 8 Issue 1

Page 17

Tanks & Domes

Frac Storage Before the wheels were up on my flight home we had a request for additional specific information on sites in the Shale Crescent USA from a company that we had met with. We were told that last week this request would have been sent to Gulf Coast only. They did not even know we existed. We have three other specific follow-up requests already for more information. We had a request for information on conferences and expositions in the Shale Crescent USA that may be helpful for them to attend to learn more about our Region. We have been requested to come back to Japan to speak at other conferences. Our success is success for the entire Shale Crescent USA region. Manufacturing and petrochemical facilities locating here mean more high paying, career oriented jobs for our people. Young people can stay here and raise their families. It means more local demand for our natural gas. Higher local demand can mean higher prices and lower transportation costs for our producers, translating into profits. It means demand for services and supplies. It means tax revenues for states and localities. This trip is just a beginning. Economic development isn’t a sprint. It is a marathon. But every successful marathon starts with finishing the first mile. We have run our first mile. You can help by supporting this effort. Start by going to www. shalecrescentusa.com. Thoughts to ponder.

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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.

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Page 18

Northeast ONG

PENNSYLVANIA NEWS

EXPECT PA PERMITTING FEES TO INCREASE ACROSS THE BOARD; PA STATE BUDGET By: Teresa Irvin McCurdy, President of TD Connections, Inc. Per Pennsylvania’s Constitution, the Governor must present a proposed State Budget for the next Fiscal Year which begins on July 1st to the General Assembly on the first Tuesday in February for consideration and final approval by June 30th. However, since 2003 when Governor Rendell presented his first Budget the norm has been for the Budget to be late anywhere from days to as long as 6+ months. There are various reasons one could point to such as: 1) structural issues such as school funding, pensions, elderly and welfare entitlements; 2) too much spending requiring additional revenue/taxes; and 3) party priorities. The last one causing the most hurdles. As this paper goes to press the Governor will be presenting his priorities to the legislature on February 6th. Although most expect he will continue his push for more funding for schools and for a severance tax, what else will he be pushing for? During a press briefing on the Governor’s regulatory reform initiatives held on January 26th, he also announced he would be seeking an additional $2.5 million for additional staffing for DEP to “continue to provide high-quality, responsive oversight.” While taking questions, he and DEP Sec. McDonnell explained that the additional $2.5 million will only add about 35 new positions which averages out to roughly $71,000 per position with most of those positions being in the water program and only a few going to other programs. Later, staff acknowledged that none of those new positions would be in oil and gas. Instead, the Office of Oil and Gas Management (OOGM) is preparing a fee package to submit to the Environmental Quality Board (EQB) in May seeking to more than double the current flat well permitting fee of $5,000 to $12,500 with no distinction of whether the well is vertical or horizontal. With the additional funds, OOGM plans to increase the number of reviewers and expands its IT measures such as ePermitting and eInspections. There will be a public comment period. However, DEP insists that without the fee increase it will run out of funds to run the department by the end of FY 2019. Therefore, they are seeking the fee increases to be effective before the end of FY 2019. OOGM states that they have been operating with minimum staff, reduced expenses and have implemented measures to save costs. One example of their success they boast is their eInspections which has lead to an increase in the number of inspections per inspectors with greater transparency. Although NOVs have gone down, the department has used the fines to help fill its budget gaps. But wait, this fee increase is only for the benefit of OOGM. There are other bureaus within DEP that have or are seeking fee increases since mid-2017 such as Air Quality, Waste, Water Quality Management and NPDES Program, Radiation Protection, Safe Drinking Water, Dam safety and Waterway Management, Noncoal Mining (Aggregates) Program, and Environmental Laboratory Accreditation application fees. Some of these increases are still in the proposed stage so we haven’t seen how much they will be yet, but many are seeking large fee increases as well. Last year, Governor Wolf proposed that DEP receive $149.667 million which is almost $10 million more than three years ago. Where was those funds allocated? Below is a chart showing the proposed line-item budgets for the past four years. As you can see, the amount allocated to environmental issues has increased over the years with the priorities changing each year. You will also note that not a signal line item is allocated oil and gas or other specific bureaus.

That is because in Pennsylvania most of the operating expenses of each bureau (air, waste, O&G, etc.) obtain their funding from fees, federal money and fines. Perhaps PA should look at how it funds its programs again while it is looking at regulatory reform. For instance, the Impact Fee was passed to help local governments deal with the impact of exploration and operations on their community; however, only around half of the funds collected actually go to local governments and not all of them have drilling in their communities. The rest is distributed to other miscellaneous funds within the General Fund with DEP getting some. But it doesn’t mean it goes to help natural gas. For instance, the state stresses the need for tighter methane regulations to control leaks both on the well sites as well as with abandoned and orphan wells. However, the state doesn’t show that it is a priority when it comes to allocating funding to the program. Last year only $92,000 was allocated for Abandoned Well Plugging, down form $251,000 two yeas ago and $400,000 to Orphan Well Plugging, down from $1,152,000 two years ago. Yet the Well Plugging Account had $21,627,000 two years ago and is projected to have $25,812,000 in it this year. If this is such a big environmental issue for the state, then why is the find being drastically cut? Meanwhile, the Administration is projecting that the number of oil and gas drilling permits processed will increase from 1,916 in 2015-16, and 1,550 in 2016-17, to 1,750 in 2017-18 and then hold steady around 2,000 permits processed each year. I think most reading this story would agree that the future numbers are probably high due to low market conditions, the rig count continuing to be down and companies still weighing if the economics in PA work. The Administration and General Assembly need to stop looking at each permit fee and each tax individually and look at it as a whole. The cost of doing business in Pennsylvania is high and is continuing to rise causing the large gas companies to leave. At least a dozen companies have sold their acreage to another company last year to do business in other states where the business climate is friendlier, and the government is not looking to tax and regulate the industry to death. I’ve heard too many people whether they were elected officials, environmentalists, or staff in the Dept. of Energy say, “where are they going to go as the gas isn’t going anywhere.” I’ve reminded them that is true, and the gas will stay there while the companies leave and go to other plays where it is more economical. During the slowest part of the downturn, I saw many friends lose their jobs and many vendors/ businesses go out of business. Whether you are an operator, vendor, mineral right owner or someone who reaps the benefit of low natural gas prices; remind the Administration and your elected officials that the industry as a whole is a major contributor to PA and tell them how it personally affects you. The opposition takes time from work to make their voices heard to work against the industry. We all need to do the same and make our voices heard. 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 1

Page 19

WE ARE LIVING IN A DIFFERENT POLITICAL ERA Advocacy Must Be As Dynamic As Our Politics

Where do you get your DEP regulatory updates and information? Do you want information the same day or weeks later at a meeting or in a publication? Do you want to be part of the process instead of being on the sidelines? Then give Teresa a call at 717-329-6402 to learn more.


Page 20

Northeast ONG

INDUSTRY INSIGHT

“THE ART OF NOT-WAR” By: Shayla Owens, Orion Strategies When any company in the energy industry decides to enter into a community and take up operations, there needs to be a strategy of community outreach and strategic communication established alongside plans to operate. There also needs to be a change in mindsets on all sides. In many cases, both the local community and the environmental community are skeptical of big, outsider companies’ intentions and promises to be stewards of the land and its people. However, the locals and environmental groups are not the only ones stereotyping and maintaining this divide. How does a company in the oil and natural gas industry combat tension on all sides? Better yet, how do oil and gas companies avoid combat altogether? The word strategy has multiple definitions, and is most commonly thought of as a game plan—the “how” behind getting from the current Point A to the desired Point B. However, the word is also strongly affiliated with military approach, and can sometimes be used synonymously with the phrase, “the art of war.” If you were to ask ancient Chinese military strategist and philosopher, Sun Tzu, for an enlightening strategy for modern day energy companies to consider, he would say something like a wise warrior avoids battle at all costs. In the energy industry, this is an immensely smart strategy to employ. From a public relations perspective, if you do it right from day one, you do not have to go to war with anyone. The trick, however, is knowing how to do it right. So, what is the right way to go about declaring not-war? The main thing an energy company needs to do is implement a well-executed strategy of community outreach and communication, resulting in the waging of unintentional war if done incorrectly. It is important to reach out to those in the local communities who may be in opposition of company operations as soon as possible, but it is also equally important for energy companies to truly become active stewards of the communities and environments where operations take place. Sure, there are ways of getting around this crucial much-needed step for operating in local communities, but just because something can be done does not mean that it should be. And, avoiding or slacking in any of these areas does little to prevent an always unwanted, expensive, and messy war from surfacing. But, if energy companies are ever going to succeed in their attempts at not-war, they are going to have to adopt a new mindset. It is important to understand that not everyone that opposes aspects of the oil and natural gas industry should be deemed a stark enemy or a means to an end. Instead, they need to be reconsidered and respected as a potential ally.

Many times, energy companies are met with hesitance, skepticism, and even hostility by some opposing community stakeholders and environmentalist groups before operations begin. Part of the not-war strategy, then, for an energy company is to truly rid itself of any image resembling a wolf in sheep’s clothing, and become neither more like the sheep nor the wolf, but simply be more transparent, more thoughtful, more human, and less of the stereotypical big business energy company that parts of society have come to fear and mistrust. The important thing to remember here is that energy companies need to be proactive and preventative in their strategizing, and they need to avoid the tendency to simply react to conflict when it arises. You can have the most brilliant team of employees in the field, but if no one knows how to succeed at communicating with stakeholders, then problems are sure to arise. That is why it is important to invest in a professional communication staff and/or outside council early in the game, so that operations can proceed and plans can unfold smoothly. It seems that only in a utopian setting could such different entities such as oil and gas companies and environmentalist groups work together and strive for the same goal, but with the right communication staff managing the proper implementation of community outreach and public relations strategies, these two groups can thrive together. It is all about putting those awful stereotypes out of the picture and reintroducing themselves as people with common goals. With all differences aside, at the end of the day, every gas company, every local community, and every environmental group is made up of people. And laid out for all of these perhaps once-opposing groups is unsurpassed common ground to be shared and explored. There has always been much opportunity for collaboration and understanding to be experienced between all sides, but someone has to make that initial effort to cross those battle lines that were drawn way too long ago, by applying the not-war strategy. And, they also have to know how to cross those lines with a message that is not going to get the messenger shot before white flags can fly. Next Issue: When “Not-War” is no longer an option. Shayla Owens is a public relations specialist with Orion Strategies, a strategic communications and public relations firm. She can be reached at sowens@orionstrategies.com


Volume 8 Issue 1

Page 21

ONG MARKETWATCH

As a proud partner for the Northeast Industry Summit, I would like to invite all of our readers to join us at the Northeast Industry Summit as our guests, this is a complimentary event. Meet the finalists of the 2018 Northeast Oil & Gas Awards and hear what they have to say during the following panels and presentations:

Jim Willis, Editor, Marcellus Drilling News Jill Thornbury, EHS Specialist, Blue Racer Midstream Joe Franceschini, Vice President Safety, Trumbull Energy Services Morgan Abele, Chile Technology Officer, Bloodhound

Anyone wishing to register for the Summit please e-mail: info@oilandgaswards. com

11.30am-Legal Panel Discussion: Social Media Best Practices for Employers: Drug & Alcohol Testing: Wage and Hour Class Action Law Suits: Marginal Well Tax Credits: Tax Law Oil & Gas Investment Update.

8am- Registration 9am- Keynote: Marcellus & Utica Growth, Threats & Opportunities. Kevin Petak, Vice President, ICF 9.20am- Panel Discussion: The Digital Well Pad.

Alan Laurita, Partner, Hodgson Russ William Turkovich, Hodgson Russ Emina Poricanin, Hodgson Russ Jeffrey Same, Hodgson Russ 12.30am- Panel Discussion: Environmental best Practice Update

Tom Foster, Editor Northeast ONG Jared Oehring, VP of Technology, U.S Well Services Clint Ford, VP Sales & Marketing, Nabors Jim Neville, Vice President, Equipment & Controls, Inc 10.15am- Coffee Break

Jim Willis, Editor, Marcellus Drilling News Chad McCutcheon, Communications Professional, McCutcheon Enterprises, Inc. Joe Greco, President, Beg Group LLC Melissa Hamsher, Vice President Health, Safety, Environmental & Regulatory, Eclipse Resources

10.45pm-Panel Discussion: Health & Safety Best Practice Update

1.15pm- Summit Finishes

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ALL ADS ARE IN FULL COLOR Digital files may be high resolution PDF, TIFF, or Adobe Photoshop. Submit photos not less than 200 dpi. Logos, text or other images should be sent 400 dpi or greater as JPEG, TIFF, or EPS file. Our color process is CMYK, color text or text within a color background needs to be bold for proper registering with this type of printing process. If you don’t have a prepared ad but have a draft designed; we can work with you to create your advertisement at 20% with two revisions. Email info@ongmarketplace.com

724-787-4451 PO Box 1001, Youngwood, PA 15697 www.ongmarketplace.com info@ongmarketplace.com


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NEW TECHNOLOGY CONNEXT LONEWORKER: PROTECT YOUR WORKERS AND OPTIMIZE ENTERPRISE PRODUCTIVITY ALL IN ONE SOLUTION By: Shawn Wolf, Trakopolis It’s a fact: many occupations related to oil and natural gas exploration and recovery present risk to personnel. As such, companies invest in training and safety programs to mitigate those risks, because everyone wants your personnel to be safe. When a worker is operating alone and in a remote area, the risks rise to a whole new level. What would happen if they were exposed to toxic gas? How quickly would you know they were in trouble or non-responsive, and how effectively could you respond? With Honeywell's ConneXt LoneWorker, powered by Trakopolis, the chances of bringing that worker home safely are greatly improved. “Man down” notification, gas alarm notification, panic button, and two-way text messaging are essential to your workers being able to connect with home base to check in, get information, or get help. That’s all reason enough to consider the ConneXt LoneWorker real-time monitoring and two-way communication device. But when that same life-saving device collects and transmits as much data as you'll ever need to make smarter business decisions, the ROI becomes astronomical. Worker safety and fleet management To enhance worker safety, the ConneXt LoneWorker solution uses Honeywell's MicroRAE portable gas detector to send recurring status messages wirelessly through the assigned vehicle's gateway device, including up to four active gas levels, TWA levels, STEL alarms, and more than 20 additional sensor outputs. Critical messages are received by Trakopolis within 30 seconds, regardless of cellular coverage. However, with telematics enabled, the gateway device now becomes part of your fleet management system, transmitting data from both the engine and the device itself every minute. These messages include, among others: • Odometer reading • Latitude/Longitude • Heading • Speed • Geo-fencing confirmation This is Big Data from the Internet of Things (IoT), and it's where Trakopolis excels. Programmed messages, such as engine on/off, hard turn, hard breaking/ acceleration, and excessive speed, are sent immediately and can be used to help improve driver behavior. Information collected on asset location, usage, status, maintenance requirements and more can help optimize your operations, fulfill compliance reporting obligations, and manage costs. Outside of cellular coverage? The gateway device will buffer and prioritize the data, send out critical messages instantly over satellite, and will resume uploading both current and stored data once it comes back into cellular range. With satellite coverage, GPS location messages are sent to Trakopolis every 10 minutes. The ConneXt LoneWorker solution combines visibility of location, personal detector status, and, if applicable, vehicle telematics over sophisticated, cloud-based software to keep lone workers and administrators connected, while delivering data for real-time risk assessment, but also for later analysis and trending. This big data provides enterprise-grade intelligence that goes beyond anything you've seen before.

Benefits extend throughout the organization Core business operations such as fleet management, equipment utilization, maintenance and repair scheduling, as well as employee health and safety, are all presented on intuitive dashboards that combine the IoT, telematics and Trakopolis' powerful API. Driver and fleet vehicles can be matched to create driver performance scorecards. Your Operations, Safety or HR teams are now able to access data stored within Trakopolis to populate their own day-to-day in-house software. See where your vehicles are at all times. Great for invoice justification, theft prevention, and planning routes or cycle times. Pull data from thousands of sensor points into a customized map overlay and upload GIS coordinates from your legacy system; then see it updated in Trakopolis. Imagine what your enterprise could do by matching your in-house digital resources and legacy systems with this new visibility that tracks anything, anywhere, anytime. A single ConneXt LoneWorker setup can transmit more than 2,300 messages in one day. Multiply that over your entire fleet and you have enterprise-grade data to power your decision-making. Want even greater integrated organizational value? Use Microsoft's Power Business Intelligence – its flagship analytics tool – to organize your data into customized reports and predictive analysis over the Azure Cloud platform. By running on the Microsoft Azure Cloud, Trakopolis can scale to meet the processing demands of big data while maintaining the necessary security. Ultimately, you'll get enhanced worker safety - your priority ROI - and enterprisegrade productivity in a solution that captures raw information and transforms it into meaningful business intelligence quickly, and at low cost. ConneXt LoneWorker really is as good as it sounds. For more information, please contact Shawn Wolf at 724-900-4668 or swolf@ trakopolis.com


Volume 8 Issue 1

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ONG MARKETWATCH January 30, 2018 Friends, I wanted to write a quick note to wish you and yours a great 2018 and to bring you up to date on the National STEPS Network. We are doing well as a network. Our 22 regional networks are beginning to grow again. Prices are making a nice comeback, and in turn, so is the industry. The future seems bright for the long term. As always after a downturn, especially one as long as this one, there are inherent problems. We all have to make those difficult decisions, but from the employer’s point of view, no one wanted to see the downturn and we all had to go into survival mode for a while. It was unavoidable. A result is that many of the experienced workers who were laid off have decided not to come back into the industry. Employers are faced with the challenge of ensuring new hires, or Short Service Employees have the training and education they need. They deserve a robust mentoring program. Many new companies are coming into the industry as happens during an up cycle. We need a team effort to move forward safely. Another issue I am seeing during my auditing is companies purchasing services from consultants to help them pass standardized safety questionnaires without actually implementing the programs. Yes, they pass, but that practice is hurting our industry in many ways. The employer has a false sense of security, and in many cases is able to get contracts, but they don’t go any farther. The SMS must be implemented. Employees are not protected by a piece of paper and a contract. If an incident occurs, OSHA will review implementation, holding employers to what the program says they are doing. This is not to mention plaintiff ’s attorneys. That short-term sense of security of getting a passing score on an SSQ is not a light at the end of the tunnel. It could very well end up being a train. The industry has experienced heartbreaking incidents already this year. Our thoughts and prayers are with the families, friends, and co-workers. As many incidents that we are aware of, many serious near misses go unreported. We must continue to move forward and work to learn and improve every day. The importance of our National STEPS Network and other initiatives like it is being continually reinforced. We need your help to invite your peers from all levels of the industry to our meetings, to step up and lead, and to share presentations and learnings from near misses, best practices and serious incidents. What we are doing: I am pleased to announce that the completely new www.nationalstepsnetwork.com is now live. Our Alliance with OSHA and NIOSH is very robust, and Alliance Hazard alerts are posted in English and Spanish, along with Respirable Silica and Tank Gauging videos. Other alerts in progress or planned include Ground Disturbance and Dropped Objects, with still others are being discussed. If you would like to participate, please let us know. You can send an email directly from the website. There is an HSE toolbox on the website in the resources section which is meant to help employers fill in gaps, but we could use some thoughts on improving and updating it. A great milestone was reached on July 4, 2017. You may or may not be aware, but SafeLandUSA reached the One Million student milestone since the first class in March of 2010 for Anadarko Petroleum. This is another example of what we as industry leaders can accomplish when we set our minds to it, and work toward a goal simply because it is the right thing to do. Thanks to the volunteer SafeLandUSA Executive Committee and Advisory Group, our Accrediting organizations, ETC, IADC and PEC, operating companies who require SLUSA, contractors and service companies that participate, students who help us improve, excellent instructors, as well as many others who have made this possible. Along with SLUSA, I urge you all to explore the OSHA 5810 and the Red Rocks Community College Field Leadership for Oil and Gas courses. All three are highlighted on our website. We also want to invite you to participate in the 6th Biennial 2018 OSHA Safety and Health Conference for E&P this December 4th and

5th in Houston. You can find a link on the National Steps Network, or go directly to www.oshasafetyconference.org. We need sponsors, attendees and speakers. Please consider submitting an abstract and tell other experts you might know. The planning team is working to make this one the best ever, designed by and for the US Onshore E&P industry. We hope to see you there. Please keep fighting the good fight. I have always said; Teamwork Works – We are proving it every day. I’ll also quote one of the original Operations Managers on the STEPS team, Ted Reed, who said” You can pretend to care, but you can’t pretend to be there.” I urge us all, myself included, to “Be There”, and make a difference in 2018 and beyond. Thanks, Rick L. Ingram, Chairperson On behalf of the NSTEPS Executive Committee Cell: 361.816.7217 Rickey.ingram1@bp.com

TRAINING & WORKSHOPS

February 13 Safeland USA – Aware Rig Pass Bridgeport, WV | www.rjrsafety.com February 15 Safeland USA – Aware Rig Pass Washington, PA | www.rjrsafety.com February 20 ITL Service Company Training Program Fostoria, OH | www.inlandtarp.com April 26 ABGPA Spring Technical Roundtable TBD | www.abgpa.org

FOR MORE TRAINING VISIT WWW.ONGMARKETPLACE.COM/TRAINING


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The Northeast ONG Marketplace

EXPLORING THE LATEST IN THE OIL AND GAS INDUSTRY

n o r e ist

l

Reg

t a e in

in w a oog

e e m ter

om c . g tin

MARCH 7-9

HILTON COLUMBUS AT EASTON

This event brings together the top industry leaders from Ohio and the nation to provide the most current state of the oil and gas industry in business sessions and the trade show. The Winter Meeting is the principle business meeting of the Association, the premier networking event of the year.

BUSINESS SESSIONS | TRADE SHOW | UPDATES ON STATE AND FEDERAL ACTIVITIES | PRESIDENTS RECEPTION

Northeast ONG Marketplace  

The only publication directly mailed for free to 10,000 industry professionals operating in the northeast US shale plays.

Northeast ONG Marketplace  

The only publication directly mailed for free to 10,000 industry professionals operating in the northeast US shale plays.