2017iogawvdecembernews

The Voice of the

Wishing you the blessings of the season and a safe and prosperous 2018

NEWS

Independent Since 1959

~ IOGAWV Board and Staff

December 2017

2018 Scholarship Deadline is March 23, 2018 In 1997, the Independent Oil and Gas Association of West Virginia, Inc. (IOGAWV) established its Scholarship Program in an effort to become more involved in higher education in West Virginia. The Scholarship Program was specifically created to reward the outstanding scholastic achievements of high school seniors whose parents work in the oil and natural gas industry for IOGAWV membership companies.

The Association now also awards deserving high school “student employees” who have completed a

required number of working hours at an IOGAWV member company.

Since the Scholarship Program’s inception, IOGAWV has awarded a total of $148,000 in scholarships to these very deserving students.

Complete eligibility rules can be found on our web site at http:// iogawv.com/about/scholarship. aspx and will be sent to all member companies. Here is a quick glance at those rules: 1. Applicant must be a West Virginia high school senior.

2. Applicant must be a depen-

dent of an employee/ retiree of an IOGAWV Company in good standing OR be employed by an IOGAWV Mike McCown Company in Communication & good standEducation Chair ing (Student employee must have worked a minimum of 400 hours is the Scholarships Continued on page 6

Please Register Now for 2018 Winter Meeting

Mark your calendars and register now for the IOGAWV Winter Meeting January 23-24, 2018, at the Marriott Town Center Hotel in Charleston. A great lineup of dignitaries, key industry personnel and speakers will make your two days in Charleston very worthwhile and enjoyable. Please see the agenda on pages 16-17.

The first morning begins with a complimentary Producers’ Issues Kickoff Breakfast Meeting for our IOGAWV member Producers on Tuesday, January 23, at 7:30 a.m.

Breakfast for all other attendees takes place at the same time and is sponsored by C&J Energy Services, Schlumberger Oilfield Services and U.S. Well Services, Inc. Continuing IOGAWV’s commitment to providing the latest technological advancements, we are once again pleased that three of our

members will be sharing their latest innovations during the technical sessions from 8:00 a.m. to 5:00 p.m. on Tuesday, January 23. C&J Energy Services, Schlumberger Oilfield Services and U.S. Well Services are cosponsoring and presenting on a variety of up-to-date topics such as drilling solutions, chemical additives for frac water, completion strategies, environmental compliance, drilling fluids systems, water management and more. There is no charge to attend these technical sessions.

We are pleased that The West Virginia Desk and Derrick Club will be joining us for lunch, then hosting their monthly meeting in conjunction with our Winter Meeting.

There is a luncheon for past presidents and Gunslingers on Tuesday, as well.

A receptions for IOGAWV

members will take place Tuesday evening, then dinner is on your own.

On Wednesday, January 24, breakfast for all Brett Loflin attendees, sponVice President sored by Ergon & Program Chair Oil Purchasing, begins at 8:00 a.m., prior to the 9:00 a.m. keynote address. Governor Jim Justice has been invited to be our keynote speaker. He will be followed by an IOGAWV update from President Marc Monteleone, Nytis Exploration/Carbon Natural Gas Co. President Mark Pierce, Arsenal Resources President and CEO Jon Farmer (invited) and Arnett Carbis Toothman member Don Nestor.

Other morning speakers include Winter Meeting Continued on page 8

INSIDE

Marc Monteleone / 2 Member Spotlight / 3 Charlie Burd / 4 Mark Clark / 5 Mike McCown / 7 Greg Kozera / 9 Industry Events / 10 Sarah Smith / 11 Industry News / 12 Hugh Byers / 13 Mark Taylor / 13 Mike McCown / 14 Ergon / 15 Scholarship Form / 16 Winter Meeting Agenda / 17 Winter Meeting Sponsor Form / 18 Winter Meeting Registration Form / 19

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Marc Monteleone IOGAWV President

West Virginians – Optimistic Or Pessimistic?

Earlier this month our state officials announced that China Energy Investment Corporation Limited signed a memorandum of understanding to invest $83.7 billion in future projects in West Virginia.

Great news for the citizens or our state, the region and our nation.

Right??? Shortly after that announcement I began reading article after article attacking this great news and this confused me. Why would we in West Virginia react in such an adverse manner to such wonderful news?

I began to ask others why they thought this announcement was met with such skepticism and I found a common thread among those responses. West Virginia has been at the bottom of so many national rankings for so long that we have become very pessimistic. In fact, we have become our own worst enemy when it comes to public perception. Rather than embracing this news and recognizing the potential impact this can have on future generations of West Virginians, we immediately started thinking of ways to derail this opportunity.

This event was so big in China that when our Secretary of Com-

merce Woody Thrasher and China Energy President Lin Wen signed this document, President Donald Trump and Chinese President Xi Jinping attended the event just to witness the execution of the document. Yes, the presidents of two of the most powerful nations in the world thought this event was so significant that they changed their busy schedules and showed up for the signing. That clearly shows just how important this announcement was in the world news.

I for one believe this potential investment represents true hope for the future of West Virginia and clearly shows the confidence that China Energy has in our great state.

It would have been very easy for China Energy to pick Pennsylvania, Ohio or a host of other states with shale plays. But they did not pick another state. They picked West Virginia. China Energy is optimistic about our future and it is time we became optimistic, too.

A person much smarter than me once said, “The best way to predict the future is to create it.” West Virginians need to start creating our own future and using this opportunity to create a strong future for ourselves, our children

Remember to sign up a new IOGAWV member today.

and their children. Let’s embrace this announcement and let’s show China Energy just how good its investment in West Virginia will be for everyone. Let’s start thinking good jobs, children staying in West Virginia to live and work, a stronger economy, more funding for schools, roads and important government programs. Time for us to stop being pessimistic and start acting optimistic!!

2017-2018 OFFICERS BOARD MEMBERS Marc Monteleone President Brett Loflin VP/Program, Govt. Affairs Chair Jim Pritt Secretary-Treasurer/Commerce Co-chair Scott Freshwater Immediate Past President James W. Crews Director, Commerce Co-chair J. Kevin Ellis Director, Governmental Affairs Co-chair Doug Malcolm Director, Environmental Chair Mike McCown Director, Comm. & Educ. Chair Sam McKown Director, Producers Issues Co-chair James Rode Director, Safety Chair Sarah Smith Director, Membership Vice Chair Rick Toothman Director, Producers Issues Co-chair

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Member Spotlight

Greylock Energy - The New Game in Town Editor’s Note: This interview involved Greylock Energy CEO Kyle Mork.

How and when did your company get started in this industry?

Greylock Energy is an oil and natural gas, exploration, production, and midstream company created by ArcLight Capital Partners. Greylock was formed out of a sale of Energy Corporation of America assets to ArcLight in November 2017.

This sale included significant acreage, wells, pipelines, buildings, and facilities throughout Appalachia as well as the corporate headquarters in Charleston, West Virginia. In addition, all employees transitioned to Greylock Energy.

How many wells do you operate?

Greylock Energy is headquartered in Charleston, West Virginia with offices scattered throughout West Virginia and Pennsylvania and operations across the nation. The vast majority of the company’s assets are located in the Appalachian Basin, which comprises more than 900,000 acres, about 4,400 wells, and 5,000 miles of pipeline.

How long have you been a member of IOGA-WV? As a brand new entity, Greylock Energy is the newest member of IOGA-WV. However, members of Greylock’s senior management team have been active participants, supporters, and leaders of IOGAWV for decades.

What value has IOGA-WV provided to you and your company?

IOGA-WV is invaluable to the natural gas industry in West Virginia. The industry advocacy, education, communication, outreach, and support the association provides enables us to focus on what we do best – exploring, producing, and moving natural gas throughout the region – and beyond.

What are the biggest changes you’ve seen in the industry in your career?

The transition to shale/unconventional development and the evolution of Appalachia into the primary natural gas basin in the country What are the three biggest challenges you see today?

The greatest challenge I see today is that change is the new normal for the oil and gas industry. You would be hard pressed to find an energy company that has not changed ownership or names over the last few years. The energy market in Appalachia is good, and it is only getting better. Pipelines out of Appalachia are progressing, which only helps our ability to get our product to market. And, the long-term downstream potential is phenomenal. But, while the industry outlook is very bright, the change necessary to bring that future to fruition may pose a significant challenge.

Producers are reminded there is a tollfree number where you can leave confidential messages on issues of importance: 1-877-982-4701.

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Charlie Burd Executive Director, IOGAWV

From the Burd’s Nest: Students’ 12 Days of Christmas As I recuperate from November 6 back surgery, my thought drifts to Nathan, my 19-year-old swimmer and honors engineering student at West Virginia University, and his high school-turned-college buddies: Jack, Max, Kyle, Ethan, Chase, Chance and Logan. We are blessed as parents because Leone and I could not have handpicked friends better than Nathan did on his own.

Each one mentioned here is simply a great young man, academic scholar and focused on their individual future. We are very proud of each and love them as if they were our own.

Knowing how busy IOGAWV and the office gets each January, December is the one month every year I give my brain a rest. As has been my tradition for many years, I have made a practice of incorporating a Christmas theme into this monthly article. This year is no different as I wanted to poke just a bit of fun at this group of guys—knowing Nathan, nor any of this buddies, find themselves in this particular plight.

With help from CollegeHumor. com and ghost writer Chaos Biscuit, enjoy. This may bring back some memories for many of us—although Red Bull has replaced other stimulants used years ago!!!

‘Twas the Night Before Finals Up In The Honors Dorm ‘Twas the night before finals, when all through the dorm, Hardly a person was sleeping—but that was the norm Empty Red Bull cans, iced coffee and trash strewn about In hopes that some seeds of knowledge would hopefully sprout

Students were sitting uncomfortably at their chairs Hoping thoughts of good grades won’t be met with despair.

With my roommate in his PJ’s, and I in my jeans, We studied like monsters and typed like fiends.

When from outside the dorm there came such a racket I leaped up from my desk and put on my jacket.

Out of the dorm I dashed like a bolt, My nose meeting smells of old ramen, stale beer and mold.

The glow of the moon lit up the scene: Fog all around with a man barely seen.

Emerging from the haze with two hands outstretched Holding red solo cups—good Lord that’s really quite farfetched!

But paying little attention and disregarding my roommate screaming “Wait,” I realized in an instant the man in front of me was St. Procrastinate!!

Ambling towards me seemingly without a care at all, He saw my studious nature and seemed quite appalled.

“What are you doing, huh? Preparing for exams?

Writing papers, doing projects and trying to cram?

“Go out and enjoy your life, just learn to let loose Time spent in a library is time spent in misuse.

Why bother studying with so much fun at your disposal?”

He took a quick sip of something, and began his proposal:

“On SparkNotes, on Cliff Notes, on cut, copy and paste!

On large-lettered fonts, 14-point periods, and papers triple-spaced!

To the results of Google searches!

To the pages of Wikipedia!

In fact, why write anything when you can buy essays from academia?”

I stood there pondering, unsure what to believe When he turned around suddenly and started to leave.

“Wait!” I cried out, “I’m not sure what I should do!

“Sleeping or studying, help me think this thing through!”

He spun around and said, stumbling as he went, “Sounds like a lot of work, little bro, and my energy is spent.

But here, these words at least I can express: Happy Finals, or not…whatever…I guess?”

In closing, please allow Leone, Nathan and me to take this opportunity to wish you a very safe and Joyous Holiday Season and a most prosperous New Year.

5

Mark D. Clark Spilman Thomas & Battle, PLLC

Methane Rules – Are They Coming or Going?

In the game of environmental regulation, the methane rules governing oil and gas operations are the football. In September 2015, the United States Environmental Protection Agency (“EPA”) proposed updates to its “New Source Performance Standards and Draft Control Techniques Guidelines” setting methane and volatile organic

compound requirements for new and modified sources and proposed revisions to its “Source Determination Rule” clarifying air permitting rules as they apply to the oil and natural gas industry (generally referred to herein as “Methane Rules”). Over 900,000 comments were filed with the EPA concerning the proposed Methane Rules, including IOGA-WV

along with many industry associations.

In May 2016, the EPA finalized the Methane Rules under President Obama’s “Climate Action Plan: Strategy to Reduce Methane Emissions” and the Clean Air Act to cut methane emissions from the large and complex oil and gas industry and keep the Obama Administration on track to achieve its goal of cutting methane emissions from the oil and gas sector by 40-45% from 2012 levels by 2015. These final rules, building on the EPA’s 2012 rules to curb emissions from new, reconstructed and modified sources in the oil and gas industry, also imposed regulatory burdens on “existing” oil and gas sources. The rationale, in part, for these rules is that methane has a global warming potential more than 25 times greater than that of carbon dioxide. The rules became effective on June 3, 2016.

These rules were especially illtimed because commodity prices were depressed and operating costs were increasing due in part to implementation of West Virginia’s Aboveground Storage Tank Act. Particularly problematic in the final rules were the requirements to monitor leaks from low production wells twice a year, rather than exempting them as initially proposed, and to monitor leaks at compressor stations four times a year rather than twice annually. The EPA also issued its first draft of an Information Collection Request (“ICR”) seeking detailed and burdensome information on the oil and gas industry, including how equipment and emissions controls are configured, what installing Methane Rules Continued on page 6

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Scholarships Continued from page 1 past calendar year. Validation of hours worked and a letter of recommendation from the employer must be provided).

3. Applicant must enroll in a four year West Virginia college or university.

4. Applicant must compose a 300-500 word essay answering the question: “Describe your community’s perception of the oil and gas industry and explain how you would improve it.”

5. Application must be signed by the high school counselor.

6. The completed application (including the AP and Honors Courses, Extracurricular Activities Including Employment, and Community Service and Other Activities forms) along with the student’s essay, transcript and ACT scores must be postmarked no later than Friday, March 23, 2018. IOGAWV will accept applications and accompanying es-

says postmarked between Jan. 2, 2018 and March 23, 2018. From all the applications received, an IOGAWV Scholarship Review Committee will select a minimum of seven one-time only $1,000 scholarship winners.

Should you have any questions, please contact Dee Beane at 304-344-9867 or via e-mail at dbeane@iogawv.com.

Full details and forms are available at www.iogawv.com.

In May 2017, the EPA indicated that it was reconsidering certain fugitive emissions portions of the Methane Rules and issued a stay of the effectiveness of certain aspects of the 2016 rules for three months starting June 2, 2017, pending reconsideration of Methane Rules.

Then on June 12, 2017, the EPA proposed a 2-year stay of the fugitive emissions, pneumatic pump and professional engineer certification requirements while the reconsideration process moves forward. To ensure no gap in the stay occurs, the EPA also proposed a 3-month stay that would apply after the 3-month administrative stay expires and before the 2-year stay takes effect. The deadline for comments on the 2-year and 3-month stay proposals was August 9, 2017.

However, on July 3, 2017, in a setback for the Trump Administration and the EPA, the United States Court of Appeals for the District of Columbia vacated the 90-day administrative stay describing the stay as “essentially an order delaying the rule’s effective date and this court has held that such orders are tantamount to amending or revoking a rule.” The court further explained

that the EPA could reverse all or a portion of the Methane Rules, but would be required to undertake a new rule-making process to do so.

In November 2017, the EPA issued two “Notices of Data Availability” (“NODA”) related to the proposed stays of certain requirements in the Methane Rules. These notices are in furtherance of the proposed stays and comments on the NODAs are due by December 8, 2017. Following the comment period, the EPA may finalize either or both of the proposed stays. However, it is very likely that a number of environmental and citizens organizations will immediately appeal the final stays and seek to prevent the EPA stays from becoming effective. Meanwhile the Methane Rules remain in effect.

We should learn in early 2018 whether the EPA proposed 3-month and 2-year stays will become effective while the EPA reconsiders certain requirements of the Methane Rules. We will keep you posted on whether the EPA is able to push the stay “football” across the goal line.

If you have questions regarding this or other topics please contact Mark Clark (304-340-3876) or David Yaussy (304-340-3829).

Methane Rules Continued from page 1 those controls entail and the associated costs of such equipment.

On August 2, 2016, industry trade associations, including IOGA-WV, challenged the Methane Rules in the United States Court of Appeals for the District of Columbia Circuit, especially as they apply to existing sources and low production wells, and filed comments objecting to the necessity and scope of the draft ICR. On November 10 2016, the EPA issued a final ICR which established the data requirements and deadlines based upon public comments.

The major developments in the challenges to the Methane Rules occurred when Donald Trump was elected president in November 2016, and the subsequent appointment and Senate approval of Scott Pruitt to lead the EPA. One of the early benefits of those developments occurred on March 2, 2017, when the EPA announced that the ICR was withdrawn effective immediately.

While significant work by oil and gas operators went into developing responses to the ICR, the withdrawal of the ICR allowed most operators to avoid finalizing and submitting responses to the EPA.

7

Mike McCown Communications & Education Committee Chair

Glenville State to Host Second Annual IOGA Classic The Waco Center at Glenville State College (GSC) will be the site of a boy’s and girl’s six-day high school basketball tournament this December. The Independent Oil and Gas Association of West Virginia (IOGA) Classic tournament is being hosted at GSC, Monday, Dec. 11 through Saturday, Dec. 16.

Schools slated to participate include AAA squads from Buckhannon, Cabell Midland, Parkersburg, Riverside and South Charleston; AA teams from Braxton County, Bridgeport, Nicholas County and

Roane County; and A teams from Doddridge County, Fayetteville, Gilmer County, Robert C. Byrd and Tucker County.

The student participants of the tournament are eligible to apply for a Glenville State College scholarship

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that is being funded by IOGAWV. The six available scholarships will be awarded to qualified seniors who will attend GSC and pursue a degree in relation to the support and development of the oil and gas industry.

Tickets can be purchased at the door for a general admission price of $5 and a student price of $3 (with a valid school ID). Concessions and game apparel will be available as well.

For more information about the IOGA Classic, contact (304) 4626381.

You can view the tournament schedule at http://www.glenville. edu/news/.

Opened in 2013, Glenville State College’s Waco Center is a $25 million facility that houses the college’s Land Resources department, a 3,000 seat sports arena, other athletic facilities and offices, and a community healthcare center operated

by Minnie Hamilton Health System. The remainder of the building houses McPherson Court, where the tournament will be played, and other athletic spaces and offices. Waco Center is on Mineral Road.

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Winter Meeting Continued from page 1 Douglas C. McElwee, Robinson & McElwee, discussing the IOGAWVsponsored Mapping Program, and Joe Bastardi, WeatherBELL Analytics, LLC. The Membership Luncheon, sponsored by Bowles Rice, will include a presentation to the Oil & Gas Museum and the Oil and Gas Reclamation Awards, which are sponsored by Ergon Oil Purchasing.

Karen Harbert of the U. S. Chamber of Commerce will be our luncheon speaker.

Following lunch, attendees will hear remarks from West Virginia Commerce Secretary Woody Thrasher. Chemical Alliance Zone Executive Director Kevin DiGregorio will moderate an Appalachian Storage Hub panel with participants Congressman David B. McKinley, WVU Energy Institute Director Brian J. Anderson and MATRIC President and CEO Steven Hedrick.

Afternoon presenters include: James W. Crews, Marathon/MarkWest; Lisa Teel, BrickStreet Insurance; and Jerry James, Shale Crescent USA and Artex Oil. Attendees will hear a legislative update from Chief Lobbyist Phil Reale.

At 5:00 p.m. we will welcome all GOpac contributors and our legislators to a special reception.

This is followed at 6:00 p.m. by the IOGAWV Membership and Legislative Reception, thanks to our Premier Sponsor, Antero Resources Corporation, which is open to all members and nonmembers paying the full registration fee.

IOGAWV’s Winter Meeting is the best-attended industry event of the year, so make plans now to join friends, colleagues, legislators and professional contacts for this exciting two-day event.

Please see page 19 to register for the meeting, or visit www.iogawv. com. If you have questions, please contact Lori Miller Smith at 304-

344-9867.

Benefit your business by taking advantage of the sponsorship opportunities available. Simply fill out the sponsor form on page 18 or

contact Lori Miller Smith for specific event sponsorships. The potential exposure, educational opportunities and networking make this a great investment for your company.

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9

Greg Kozera Learned Leadership LLC

You Are Smarter Than a Golden Retriever; Are the Antis?

Recently Lynnda and I lost one of our best friends, Abbey. She was our 14-year-old Golden Retriever.

Abbey was a true friend. She was trustworthy, loyal, friendly, dependable, playful and caring. She loved unconditionally. If we were down or had a bad day, she would always raise our spirits.

Many of you have seen Abbey. In my Just the Fracks, Ma’am book that was published in 2012, Abbey is the dog chewing the stick in her thunder shirt on page 14. I talked about Abbey’s fear of thunder and how we couldn’t reason with her and explain what thunder is so she wouldn’t be afraid. If Abbey could talk and was asked, “What is thunder?” she would have probably said, “I don’t know, but it’s bad.” Which is exactly what I usually hear when I ask an “anti” about fracking. When it came to fear about fracking, I made the point that human beings are smarter than that because they can think and reason, but only if they choose to do so.

In the book I made the statement, “Shouldn’t we expect our elected leaders and those in government making policy to use science and logic rather than fear and emotion when they make decisions that affect our lives and our children’s future?”

I went on to say, “I challenge you to read on with an open mind. You are far more intelligent than Abbey.

You can make a difference if you are informed.” When my daughter, who is a grade school teacher and the owner of a Golden Retriever, read that she remarked, “Dad, you know that Golden Retrievers are pretty smart.”

Now, five years later, I must admit that my daughter was right. Liv-

ing with Abbey for 14 years, just as many of you who have pets know, I believe that Abbey operated more on intelligence than instinct. I’m convinced that she could do simple reasoning. She went through her toy box to pick out the exact toy she wanted for me to play with her. On the other hand, after some of the nonsensical statements I read on line like, “When we replace fossil fuels with renewables,” by the anti-frack anti-fossil fuel crowd, I have to wonder. We have all seen the large windmill blades being transported on the interstate by trucks built and fueled by fossil fuels. I have yet to see a windmill blade being hauled by a 20mule team. I have heard statements at public meetings like, “Fracking is worse than meth.” I can only conclude that the “antis” are either more concerned about their personal or organizational agenda than they are with truth OR they really are not as smart as Golden Retrievers (and probably a lot of other breeds).

Abbey gradually became less fearful of storms, other than the most violent storms. She learned that they didn’t hurt her. She was also a pretty good judge of character. She learned which people and animals to avoid.

Abbey also knew exactly what she wanted and how it to get it, especially treats, attention and play time. She rewarded those who gave her treats and attention with affection and dog kisses. Sadly, the Board of Supervisors of Richmond County, Virginia, whose vehicles including police cars, buses and ambulances are built with plastic from fracking and fueled by fracking, recently voted unanimously to ban fracking and there has never been a well drilled in the county.

That is like a dog biting the hand that gave it a treat. Abbey never did.

Those politicians are relying on fear and emotion rather than science and logic. Apparently, they are not smarter than a Golden Retriever.

The good news is, I believe, that the general public is figuring this out just like Abbey did with thunder. I recently spoke to over 250 professional engineers and they got it. I was at a Professional Speakers meeting and a lady from eastern Ohio said, “When we began to hear about fracking, all we heard was how bad it was. Now, three years later, all we have seen is jobs, economic benefits and cheaper energy. The bad stuff the ‘environmentalists’ and media told us was going to happen never did. We realized that they lied to us and we won’t believe the media or environmentalists again.” Based on the radio shows and public presentations I have been doing, I believe that the above comments are common.

The lies and half-truths of the antis are getting old. The truth is winning. But we haven’t won yet. Even though they are a small minority, they are well-funded and are not going away. Their target is now pipeline projects with some different lies and half-truths. The antis are still using fear and emotion. Sadly, people are more influenced initially by fear and emotion than by logic. Even Abbey.

We can’t allow lies and half-truths to go unchallenged. Our future and our family’s future may depend on it.

The antis still don’t understand that the plastics we use every day for cell phones, clothing, medical equipment and most household items Retriever Continued on page 10

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Retriever

Continued from page 9

come from petro-chemicals from oil and gas wells that have all been fracked. Without fracking or fossil fuels, these things go away. Practically all gas, unless it comes from a land fill or cow, is fracked gas. There is one anti-frack, anti-fossil fuel group in West Virginia that asks for on-line contributions OR they will take physical donations like gasoline cards and black trash bags. No joke.

I’m not creative enough to make this up. Like my daughter said, “Golden Retrievers are pretty smart.”

We recently celebrated Veterans’ Day. One of the best ways I can think of to thank our Vets is to make sure that their sacrifices and service were not in vain. Our military runs on oil and natural gas not just to build and fuel tanks and planes. Their clothing, bullet proof vests, weapons and communications systems are made from petrochemicals. If fracking was ever banned in the USA, we would be dependent on OPEC or Russia for the fuel and petrochemicals we need to operate out military. We all can imagine what Industry Events

Please Join Us November 8-10, 2017 IPAA Annual Meeting Ritz-Carlton Hotel Naples, FL December 14, 2017 PIOGA Tech Env. Seminar – Risk Assessment/Compliance The Chadwick Wexford, PA January 23-24, 2018 IOGAWV Winter Meeting Marriott Town Center Hotel Charleston, WV Info: www.iogawv.com

that would mean. What does that say about the Richmond County Board of Supervisors? Freedom is never free. We all need to promote the truth.

As we begin a new year, we can learn a lot from our pets. They teach

us the importance of unconditional love, loyalty and forgiveness. Even logic. I could always count on Abbey for these qualities. You probably can from your pets. Don’t our family and friends deserve the same from us?

Let’s make 2018 at great year!

Wishing you and yours the best of this season – IOGAWV Officers, Board and Staff

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Sarah Smith Membership Vice Chair

IOGAWV Board Approved Five New Members in November Please welcome these new members approved in November: Advanced Building ALL Technologies Tom Simon PO Box 837 259 Murdock Road Troutman, NC 28166 Phone: (704) 528-9806 Mobile: (704) 905-4882 www.abtdrains.com tsimon@abtdrains.com

Clarksburg Mack Sales ALL & Service, Inc. Jerry Armentrout 1481Shinnston Pike Clarksburg, WV 26301 Phone: (304) 624-7661 Mobile: (304) 203-5007 Fax: (304) 622-2908 www.clarksburgmack.com jerry@clarksburgmack.com

Infinity Natural POP Resources, LLC Zachary Arnold 2605 Cranberry Sq. Morgantown, WV 26508 Phone: (304) 212-2359 Mobile: (304) 203-8059 Fax: (855) 724-9469 www.infinitynaturalresources.com zarnold@infinitynr.com

Wheeling Mack ALL Tom Mendenhall 142 River Road Wheeling, WV 26003 Phone: (304) 232-7515 Fax: (304) 232-6709 Mobile: (304) 280-8141 ttm105@comcast.net

Oglebay Resort ALL Herb Faulkenberry 465 Lodge Drive Route 88 North Wheeling, WV 26003 Phone: (304) 243-4114 Fax: (304) 243-4105 www.oglebay.com hfaulkenberry@oglebay.com

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Industry News

IOGAWV Leaders in the News Doug Malcolm Elected IPAA Regional Representative Doug Malcolm, D. C. Malcolm, Inc., has been elected to serve as the IPAA Regional Director for West Virginia, Virginia and Washington D.C. Malcolm joins an outstanding group of individuals from across the nation that represent and advocate for independent producer interests.

Doug replaces Tom Riley who has served as our regional director for the past eight years.

IOGAWV Working To Get Oil and Gas Education in Middle Schools The Independent Oil and Gas Association of West Virginia (IOGAWV) is working with the WV State Board of Education to get an oil and gas curriculum in middle schools throughout West Virginia.

Jeff Isner, former IOGAWV Communication & Education Chairman and board member, gave a presentation at the West Virginia Science Teachers Association Conference this fall.

Over 200 teachers attended the conference and they were very receptive to learning more about the oil and gas industry.

IOGAWV hopes to host a science teacher workshop in June of 2018.

A clear Blenko vase was presented

by IOGAWV as a doorprize, shown below.

WVU unveils new natural gas research laboratory Students in the West Virginia University (WVU) Statler College’s petroleum and natural gas engineering program have a new tool to acclimate them to conditions in the natural gas industry.

The Dominion Energy and Natural Gas Measurement Laboratory on the Evansdale campus of West Virginia University was officially opened

by WVU students and faculty, along with representatives from Dominion Energy and the Dominion Foundation.

Students can conduct experiments and learn about control technology using the equipment in the new facility. Dominion donated both cash and materials for the laboratory.

Bob Orndorff, state policy director for Dominion Energy, said the new lab incorporates the latest technology, including computerized measuring, which was lacking from the previous lab.

“It’s a great example of how businesses, industries and universities come together,” he said, adding that Dominion Energy has an entire department dedicated to natural gas measurement.

Statler College Dean Eugene Cilento said, “Gas measurement is a critical component to distribution and transmission activities,” he said.

“This lab, a significant upgrade and improvement over what we had, will help us continue to educate the generations of students who come for this industry.”

Brian Sheppard, vice president of pipeline operations for Dominion Energy, said the company’s partnership with WVU goes back to 1984 when the original measuring lab was installed.

With the upgrades, Sheppard said he hopes the experiments and research in the new lab will lead to new technological breakthroughs in the natural gas industry. What’s more, he said, many graduates of the engineering college have gone on to work for Dominion Energy and contribute to West Virginia’s economy, something he hopes the new lab will help continue.

Charlie Burd Appointed to IOGCC Steering Committee IOGAWV Executive Director Charlie Burd has been appointed to a three-year term on the Interstate Oil and Gas Compact Commission (IOGCC) Steering Committee through November 2020. Arkansas Governor Asa Hutchinson, who is Chairman of the IOGCC, made the announcement.

13

Hugh Byers Direct Energy

Nymex Natural Gas Futures Contract 12-Month Forward Strip Average Prices Through 11/20/2017

Mark Taylor WeatherBELL Analytics

WeatherBELL Predicting Early Winter Start

Image: December Temperature Anomaly Forecast For more information about WeatherBELL’s services and to get the hot-off-the-press winter forecast, please visit our website www.weatherbell.com or contact Mark Taylor at (770) 649-0000/taylor@weatherbell.com.

While it will be warm to start the month, WeatherBELL believes the cold hammer will come down with a vengeance starting in the second week of the month. So unlike the last few years, winter will start early this time around.

Despite a similar La Niña to what we had last year, other key source regions have completely different patterns this time around. Because La Niña will be on the weak side, these other drivers should be more important this winter.

This should be the coldest December in years and the cold pattern will likely last into the first part of 2018.

We are still expecting a pullback in the back half of winter, but we are also anticipating another widespread cold pattern for a time in February.

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We provide safe assessments and inspections, accurate real time data retrieval, and the exact identification of existing and potential gas leaks.

– Joe Loudin, Owner

We provide:

• Safer, faster, less costly overhead inspection • Methane leak detection and location at 25 ppm • Real-time, clear images obstructions • Documentation of erosion, overgrowth, etc.

We provide: • • • • • • •

Pipeline inspections Pipeline security and surveillance Large territory pipeline inspections Infrastructure inspections Remote insurance inspections Emergency response Industrial and commercial property surveys • Gas processing plants • Landfill monitoring • Refinery surveys

Global Drone Surveying and Inspections, LLC PO Box 2404 • Buckhannon, WV 26201 304.613.8501

15

Ergon

Monthly Appalachian Basin Crude Oil Prices

TIER 1 - 150+ net barrels of crude oil. No more than 2% BS&W (if the BS&W is over 2%, it will then qualify for Tier 2 pricing.) One stop location (one or more tanks at a single location).

TIER 2 - 60-149.99 net barrels of crude oil. Two stops within five miles.

TIER 3 - 30-59.99 net barrels of crude oil.

We hope to see you at the IOGA Classic basketball tournament at Glenville State College Dec. 11-16!

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Winter Meeting Agenda

2018 Winter Meeting Agenda: Tuesday Premier Sponsor – Antero Resources Corporation Tuesday, January 23, 2018 7:30 a.m. - 4:00 p.m.

Registration A-B Foyer

7:30 a.m. - 8:30 a.m. Breakfast Salons A-D Sponsored by: C&J Energy Services Schlumberger Oilfield Services U.S. Well Services, Inc. 7:30 a.m. - 8:30 a.m.

Producers Issues Kickoff Breakfast Cumberland/Appalachian

8:30 a.m. - 10:45 a.m. Technical Session Salons A-D Sponsored by: C&J Energy Services

10:45 a.m. - 12:00 p.m. Technical Session Salons A-D Sponsored by: Schlumberger Oilfield Services

12:00 p.m. - 1:30 p.m. Past Presidents/Gunslingers Luncheon Salons E-F 12:00 p.m. - 1:00 p.m. Luncheon for Technical Session Attendees/ West Virginia Desk and Derrick Club Attendees Sponsored by: C&J Energy Services Schlumberger Oilfield Services U.S. Well Services, Inc.

Third Floor Pavilion

1:00 p.m. - 2:45 p.m. Technical Session Salons A-D Sponsored by: Schlumberger Oilfield Services

1:00 p.m. - 3:00 p.m. West Virginia Desk and Derrick Club Kanawha/Blue Ridge 2:45 p.m. - 5:00 p.m. Technical Session Salons A-D Sponsored by: U.S. Well Services, Inc. 5:30 p.m. - 6:30 p.m.

IOGAWV Membership Reception

DINNER ON YOUR OWN

Third Floor Pavilion

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Winter Meeting Agenda

2018 Winter Meeting Agenda: Wednesday Premier Sponsor – Antero Resources Corporation Wednesday, January 24, 2018

8:00 a.m.

9:00 a.m.

9:20 p.m.

9:40 a.m.

10:00 a.m.

10:20 a.m.

10:40 a.m.

10:55 a.m.

11:10 a.m.

11:30 a.m.

12:00 p.m.

12:50 p.m.

1:10 p.m.

1:30 p.m.

2:20 p.m.

2:35 p.m.

2:55 p.m.

3:15 p.m

3:35 p.m.

4:00 p.m.

5:00 p.m. - 6:00 p.m.

6:00 p.m. - 7:30 p.m.

Registration A-D Foyer Membership Breakfast Foyer C-D Sponsored by: Ergon Oil Purchasing Governor Jim Justice Ballroom IOGAWV Update IOGAWV President Marc Monteleone Mark Pierce President, Nytis Exploration/Carbon Natural Gas Co. Jon Farmer President and CEO, Arsenal Resources Taxes, Taxes, Taxes!

Don Nestor, Arnett Carbis Toothman Morning Coffee Break Foyer C-D IOGAWV-sponsored Mapping Program Ballroom Douglas C. McElwee, Robinson & McElwee Joe Bastardi WeatherBELL Analytics, LLC Refreshment Break Foyer C-D Membership Luncheon Ballroom Sponsored by: Bowles Rice Presentation to the Oil & Gas Museum Oil and Gas Reclamation Awards Sponsored by: Ergon Oil Purchasing Presented by: Chief James Martin, Office of Oil and Gas IOGA President Marc Monteleone and WVONGA President Maribeth Anderson Karen Alderman Harbert Ballroom President and CEO, U. S. Chamber of Commerce’s Global Energy Institute West Virginia Commerce Secretary Woody Thrasher Appalachian Storage Hub Ballroom Congressman David B. McKinley, WVU Energy Institute Director Brian J. Anderson, MATRIC President & CEO Steven Hedrick, President & CEO, MATRIC Moderator Chemical Alliance Zone Executive Director Kevin DiGregorio Afternoon Coffee Break Foyer C-D James W. Crews Ballroom VP of Northeast Development, Marathon/MarkWest Shale Crescent USA – Where We Have Been and Where We are Going Shale Crescent USA Vice President and Artex Oil President Jerry James BrickStreet Association Program Agency Services Manager Lisa Teel, BrickStreet Insurance Legislative Update Phil Reale, Law Office of Philip A. Reale Adjourn GOpac Reception (Admission by donation only) Salons E-F IOGAWV Membership & Legislative Reception Ballroom Sponsored by: Antero Resources Corporation

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Winter Meeting Sponsorship Form

2018 Winter Meeting Sponsor Form Marriott Town Center Hotel, Charleston January 23-24, 2018 ____________________________________________________________ Company Name ____________________________________________________________ Contact Name _____________________________________________________________ Address _____________________________________________________________ City State Zip ____________________________________________________________ Telephone Email

Sponsorship opportunities:

______ Diamond Event Sponsor $5,000 and up (call for availability • Banner hung at sponsored event • Specific signage at sponsored event • Listing on Diamond Sponsor board • Logo and name listed in event PowerPoint presentation • Logo listed in event program, web site page and newsletter ______ Platinum Sponsor $3,000 • Listing on Platinum Sponsor board • Logo and name listed in event PowerPoint presentation • Logo listed in event program, web site page and newsletter ______ Gold Sponsor $2,000 • Listing on Gold Sponsor board • Logo and name listed in event PowerPoint presentation • Logo listed in event program, web site page and newsletter ______ Silver Sponsor $1,000 • Listing on Silver Sponsor board • Logo and name listed in event PowerPoint presentation • Logo listed in event program, web site page and newsletter ______ Bronze Sponsor $500 • Listing on Bronze Sponsor board • Logo and name listed in event PowerPoint presentation • Logo listed in event program, web site page and newsletter Please return this form to IOGAWV, address below, by January 5, 2018. Be sure to email a high resolution (300-dpi minimum) version of your company’s color logo and a link to your web site to lmillersmith@iogawv.com.

Thank you for your continued support! www.iogawv.com 300 Summers Street | Suite 820 | Charleston, WV | 25301 P: (304) 344-9867 F: (304) 344-5836

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Winter Meeting Registration Form

2018 Winter Meeting Registration Marriott Town Center Hotel, Charleston January 23-24, 2018 ________________________________________________________________________ Company Name ________________________________________________________________________ Address _________________________________________________________________________ City State Zip ________________________________________________________________________ Telephone ________________________________________________________________________ Participant’s Name Member? ❏ Yes ❏ No _________________________________________________________________________ Email _________________________________________________________________________ Participant’s Name Member? ❏ Yes ❏ No _______________________________________________________________________ Email ________________________________________________________________________ Participant’s Name Member? ❏ Yes ❏ No _________________________________________________________________________ Email Please call the IOGAWV Office if you need a vegetarian meal.

Registration (fees cover all Winter Meeting activities except the GOpac Reception) _____ Producers’ Issues Kickoff Breakfast Meeting ONLY (for member Producers ONLY) (Tuesday, January 23) FREE! _____ technical session ONLY (Tuesday, January 23) FREE! _____ member discounted rate of $225/person for all Wednesday events ($275 after 1/5/18) _____ non-member rate of $380/person for all Wednesday events ($450 after 1/5/18) _____ student/faculty registration fee of $45/person for all Wednesday events ($70 after 1/5/18) _____ spouse rate of $110/person ($175 after 1/5/18) _____ TOTAL DUE Please mail registration with payment by January 5, 2018, to: 300 Summers Street, Suite 820, Charleston, WV 25301.

NO REFUNDS AFTER JANUARY 5, 2018 For additional information, call Lori Milller Smith at (304) 344-9867.

300 Summers Street, Suite 820 Charleston, WV 25301 Phone (304) 344-9867 Fax (304) 344-5836

Presort Standard U.S. Postage PAID Charleston, WV 25312 Permit No. 110