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August 2018

Join Us For Sports Weekend Fun Sept. 21-22

Register now to join the fun at the 2018 IOGA Sports Weekend beginning on Friday, September 21, at Bridgeport Country Club.

Activities begin at 8:00 a.m. with registration. The four-person scramble golf tournament features a shotgun start at 9:00 a.m. at the Bridgeport Country Club course.

For those who would prefer shooting sporting clays, arrangements have been made at A Mountain Clay, 1900 Meadowbrook Road, Bridgeport, beginning at 9:00 a.m.

Your $55 per person fee includes 100 rounds of sporting clays, sodas,

water and snacks. Should you have any questions, please call Lori Miller Smith directly at (304) 344-9867.

A barbecue with all the fixings will take place following golf and sporting clays at the Bridgeport Country Club. There will be skill prizes for the golfers and shooters and door prizes galore for all to win!

Come join us on Saturday, September 22, for the tailgate party, then cheer on the Mountaineers in the Big 12 opener against the Kansas State Wildcats. The tailgate party will start two hours prior to

kick-off (to be announced).

IOGAWV’s Sports Weekend attracts the main players and decision makers in our industry, in a setting that allows Brett Loflin the participants Vice President to mix, mingle & Program Chair and network. As a leader in our industry, you recognize the importance of supporting IOGAWV, and the benefits of proSports Weekend Continued on page 10

IOGAWV Names 2018-19 Leadership Team Brett Loflin has been elected as 2018-2019 President of the Independent Oil and Gas Association of West Virginia, Inc. (IOGAWV).

He will be joined by Vice President Kevin Ellis and Secretary/Treasurer Ben Sullivan. These officers will assume their duties following the Summer Meeting.

Brett Loflin is the Vice President of Regulatory Affairs for Northeast Natural Energy LLC based in Charleston, W. Va. Prior to joining Northeast in August of 2010 he served as Director of Regulatory Compliance for Atlas Energy and Manager of Regula-

tory Compliance for Chesapeake Energy. Loflin also worked for over 20 years as the staff engineer and director of the West Virginia Oil and Gas Conservation Commission. Loflin is a West Virginia native and a 1982 graduate of West Virginia University with a degree in Petroleum Engineering. He resides in Charleston with his wife Beth and has two children Evan and Katherine, both attending WVU. J. Kevin Ellis has served as Antero’s Vice President of Government Relations since January 2016.

Previously, he was Antero’s Di-

rector of Business Development and Governmental Affairs from 2014 to 2015 and Manager, Administrative and Legal from 2011 through 2014.

Prior to joining Antero, Ellis served as in-house counsel to Bluestone Energy Partners and practiced law at Steptoe & Johnson PLLC as a member of the firm’s energy practice group.

Ellis is a past president of WVONGA, past board member of the Harrison County Chamber of Commerce, member of the board of trustees for the West Virginia Chapter of The Nature Conservancy and formerly served on the WVU College of Law Campaign Committee.

Ellis holds a B.A. in Political Science from The Citadel and a J.D. from the WVU College of Law. New Officers Continued on page 8

INSIDE

Marc Monteleone / 2 Randy Huffman / 3 Charlie Burd / 4 Sarah Smith / 5 Desk & Derrick / 5 Industry Events / 6 Ergon / 7 Greg Kozera / 9 Mark Clark / 11 Hugh Byers / 13 Mark Taylor / 15 Rick Perry / 16 Assn. News / 17 Sports Weekend Sponsor Form / 18 Sports Weekend Registration Form / 19

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Marc Monteleone IOGAWV President

Thank You for Allowing Me to Serve IOGAWV It seems the older I get the faster time goes! My year serving as President of IOGAWV is coming to a close and it is hard to believe it is time to pass the gavel to Brett. I want to truly thank you for giving me the opportunity to serve as your President. This year has been one of the most challenging, and yet rewarding, years of my professional life. We have accomplished quite a bit this year, but there is still much more we need to do. Oil and gas is the best HOPE for a brighter West Virginia and we have to keep working in order to make this HOPE our reality.

We have the best association in West Virginia and our team is made up of some of the most talented and brightest people in the state. I consider our team to include our IOGAWV staff, our Board of Directors, our lobbying and public relations team, our legal team and our members. We are a collective and integral part of almost every community in West Virginia and many of our members are leaders throughout our great state. This great team made my job an easy one.

First of all, our staff at IOGAWV is second to none.

Charlie Burd, Lori Miller Smith, Dee Beane and Tammy Stuck do a tremendous job every year and this past year was no exception. We sponsored more events, ran longer legislative campaigns, improved our health insurance program, provided more services to our members, exceeded our budget goal and successfully passed Co-tenancy.

And, we did it all with the help and support of these four individuals.

We put more on our staff than ever before and they rose to meet that challenge. More importantly they accomplished it all with smiles on their faces. I want to thank each of them for their efforts and devotion to our association.

Second, I want to thank our lobbying and public relations team.

Our team includes, Phil Reale, Jim Fealy, Ben Beakes, Charles Ryan Associates and Homestead Communications. Phil is the quarterback of the team and his insight and leadership into the nuances of West Virginia politics is exceptional.

Throughout this past year our team worked together and pushed our legislative agenda resulting in the passage of Co-tenancy, and they successfully prevented the passage of several pieces of legislation that would have been harmful to our industry. Lobbying and public relations activities are now a year-round activity and this team represents and promotes our industry on a daily basis.

Third, I want to thank our Board of Directors for its hard work over the past year. Our Board is made up of “volunteers� that work thousands of hours for our association.

Our Board is very active, and each director contributes a substantial amount of time and devotion to our association. This year, each director chaired a committee or task force which added additional responsibilities to their Board commitment. This is one of the most impressive groups of individuals I have every worked with and I learned valuable lessons from each one of them.

Fourth, I would like to thank our membership. This association is committed to improving our state, and our members are leaders in their respective communities throughout West Virginia. Our members constantly amaze me with their dedication and efforts to create a better West Virginia. It was Thank You Continued on page 10

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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Randy Huffman Clean Water, LLC

Company Conducts Successful Produced Fluids Salt Removal

Clean Water, LLC has successfully demonstrated salt removal and separation from produced water in recent test runs at its St. Albans facility. The RU2 NGPure™ Recovery Unit has proven the ability to separate sodium chloride and calcium chloride into marketable products.

Removing salts from produced water can be one of the most challenging and costly endeavors facing those in the oil and natural gas exploration business. Adding to this frustration is that water treatment is not the producer’s primary business process. Getting the mineral to the surface and to the market is where the producer’s time, money and energy is rightly focused. Managing the large volumes of waste water, however, ends up consuming a significant part of the producer’s attention and resources.

How might this model change if there were a cost-effective way

to remove and separate calcium chloride and sodium chloride into marketable products? Imagine “salt water” as its own revenue stream.

This could be a game changer. Producers could get back to what they know best if such a process were readily available.

Currently there is a huge dependence on underground injection wells. This can’t be sustained. With increased production there are everincreasing volumes of water that must be managed. Additionally, underground injection has its own problems. Seismic activity, public outcry and ever more stringent environmental rules are putting more pressure every day on underground injection as the primary solution for dealing with contaminated water.

Removing the oil, surfactants and heavy metals from produced water is existing technology that is available “off the shelf.” The RU2 NGPure™ Recovery Unit takes

water treatment to the next level by removing sodium chloride to a purity level exceeding 99% and calcium chloride to a purity level exceeding 94%, rendering them both marketable commodities. The resulting water product contains less than 150 ppm total dissolved solids and can be reused or discharged into the environment. This patented process uses very little heat and has a relatively small footprint.

Salt removal is an expensive and difficult process in the best of circumstances. Separating the different salts into valuable commodities is an unprecedented advancement in water treatment technology.

Despite the ongoing efforts by many of the major players, the oil and gas industry is still trying to solve this problem. Separation efforts to date have left producers with mixed salts that are deemed a waste product rather than separated sodium chloride and calcium chloride pure enough to be marketed. Additionally, this new process promises to allow minimization, if not elimination, of underground injection wells, with the only other by-product being clean water. The NGPure™ process provides the gas exploration industry with an opportunity to solve one its biggest financial and environmental challenges.

For more information contact Tim Wilcox at (304) 541-6854 basepet@aol.com or Randy Huffman at (304) 389-8173 randy.c.huffman@gmail.com. You may also visit the Clean Water, LLC website at www.cleanwaterllc.net.

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Charlie Burd Executive Director, IOGAWV

From the Burd’s Nest: Picking National Security Winners & Losers In late May of this year, the superior cost advantage offered by vastly abundant, clean-burning, energy efficient natural gas received a hard slap in the face when President Trump ordered Energy Secretary Rick Perry to stop the shutdown of aging coal and nuclear power plants with a twoyear moratorium.

These facilities, according to the President, are crucial to the nation to assure a proper energy mix and provide electric grid resilience—and in the name of national security.

Indeed, this action was taken when the President ordered the use of a section of the 1950 Defense Production Act that authorizes the President to establish regulations, orders or agencies to allocate materials, services and facilities to promote national defense.

Accordingly, the Energy Department would exercise its emergency authority to order grid operators to give preference to power plants that have a secure on-site fuel supply.

Only coal and nuclear plants regularly keep fuel on site. In addition, the Energy Department would also establish emergency rules that would last two years while the Energy Department preformed additional study.

You will likely not be surprised to discover the idea of declaring an emergency under the Defense Production Act of 1950 was promoted by leading coal-mining companies and others associated with the coal industry. You may be exasperated even further by the fact that in January 2018 the Federal Energy Regulatory Commission (FERC) unanimously rejected Energy Secretary Rick Perry’s proposal to provide

special payments to coal and nuclear plants for their ability to store fuel onsite for 90 days. Critics of this plan say this is the government picking winners and losers for political purposes.

Further, FERC Commissioner Robert F. Powelson has just announced he will resign his position with the Federal Energy Regulatory Commission in mid-August to take on the role of president and chief executive officer of the National Association of Water Companies.

Powelson broke with President Donald Trump on this issue of coal and nuclear bailouts. This is extremely bad news for us because Powelson has been a champion for natural gas and the pipelines that flow it, especially Appalachian Basin Marcellus/ Utica projects.

Here in West Virginia, the importance of the coal industry cannot be overstated. It has accounted for untold billions, if not trillions, of dollars in site and infrastructure investments, severance and property tax payments, countless thousands of jobs and quite simply “a way of life.” That is likely why Senator Joe Manchin quickly supported the DOE to use its emergency powers to keep coal (and nuclear) plants on line in the name of ensuring the resilience and reliability of our electric grid and the security of our nation. In addition, Governor Jim Justice also lays claim to convincing President Trump to protect the coal industry in the eastern Unites States.

However, there was and remains opposition at every turn. Critics and environmentalists contend this plan simply keeps a dirtier and more expensive source of power—coal—

fueling our electric grid. Large industrial users say the plan will increase the price of electricity to businesses and consumers and could negatively impact U.S. manufacturing jobs.

Others say cleaner feed stock for power production is readily available and just as reliable.

So, what exactly is the reality…

On reliability: Natural gas production in West Virginia soared to over 1.5 trillion cubic feet in 2017 and is only expected to grow. From a basin perspective, Dominion Energy just provided information that the Appalachian Basin now produces 28 billion cubic feet (Bcf) a day from the Marcellus and Utica Shales—and production is projected to increase to over 40 Bcf/day by 2023.

On storage: According to the Energy Information Administration (EIA), storage capacity in Ohio increased by 21 Bcf, or 9%. Four separate projects in the state each expanded by 2 Bcf or more. Storage capacity in West Virginia increased by 8 Bcf, or 3%. West Virginia saw the capacity of six facilities expand in 2017, two of which expanded by more than 1 Bcf. The EIA also shows the total daily natural gas design storage capacity for West Virginia as 240 Bcf; Ohio as 252 Bcf; and Pennsylvania as 418 Bcf. That totals nearly a Tcf of natural gas storage capacity ready, willing and waiting to supply our nation’s growing power production needs.

On deliverability: Take one look as you drive the hills of West Virginia and you’re see several major pipe yards stacked with more sticks of 42” pipe than you can count.

All of it is there to supply pipe for Burd’s Nest Continued on page 10

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Sarah Smith Membership Chair

IOGAWV Board Approved Three New Members in July Please welcome these new members approved in July: GEODynamics ALL Josh Spraker 1452 S. Elizabeth St. Denver, CO 80210 Phone: (970) 567-8920 josh.spraker@perf.com www.perf.com

Keane Group ALL Steven Hall 100 Seventh St. Suite 1608 Pittsburgh, PA 15222 Phone: (412) 652-9970 Cell: (713) 210-9584 shall@keanegrp.com www.keanegrp.com

Peterson, Ben STU Ben Peterson 330-E Canterbery Rd. Bluefield, VA 24605 Phone: (304) 960-6799 bjpeterson@mix.wvu.edu State Farm ALL Elizabeth Carmichael 1198 Fledderjohn Rd. Charleston, WV 25314 Phone: (304) 344-3554 Cell: (304) 615-2410 elizabeth@ elizabethcarmichael.com www.elizabethcarmichael.com

WV Desk and Derrick News

Industry Appreciation Luncheon Set The West Virginia Desk and Derrick Club (WVDDC) will be hosting our Eleventh Annual Industry Appreciation Luncheon in Charleston, W. Va., on Wednesday October 16, 2018, on the 17th floor of the Chase Building in the Steptoe & Johnson conference room.

The WVDDC has been a member of the Association of Desk and Derrick Clubs (ADDC) since 2005. The ADDC is an international educational organization with clubs and members across the United States and Canada. The purpose of the ADDC is “To promote the education and professional development of individuals employed in or affiliated with the petroleum, energy and allied industries.” Their motto is “Greater Knowledge – Greater Service.”

At this luncheon, where Arnett Carbis Toothman’s Don Nestor will

be the keynote speaker, we will be recognizing our 2018 scholarship award. This year we are givinge one scholarship to an area high school senior.

WVDDC is seeking svarious levels of sponsorship for this luncheon.

If you are able to sponsor, please mail your checks by October 1, 2018, to: WV Desk and Derrick Club 2018 Industry Appreciation Lunch PO Box 734 Charleston, WV 25323 All proceeds from this luncheon will be added to their scholarship fund for future scholarships. Please visit www.wvdeskandderrick.org for additional details.

The WVDDC qualifies as a nonprofit organization under the IRS Code 501(c)(6). Contributions or gifts may be deductible as a trade or business expense, rather than a

charitable donation.

Sponsorship levels are: Platinum: $1,000 and above Gold: $ 500 Silver: $ 250 Bronze: $ 100 Please provide the name of the company or individual sponsor for recognition purposes, along with the mailing address, email address, telephone and fax numbers. A contact name is requested, as well.

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Industry Events

Mark Your Calendar August 5-7, 2018 IOGAWV Summer Meeting The Greenbrier White Sulphur Springs, WV Info: www.iogawv.com August 15-16, 2018 Summer NAPE Brown Convention Center Houston, TX Info: http://napeexpocom/ August 17, 2018 SOOGA Fall Golf Outing Oxbow Golf Course Belpre, OH Info: www.sooga.org August 23, 2018 Divot Diggers Golf Outing & Steak Fry Tam O’Shanter Golf Club Hermitage, PA Info: www.pioga.org September 21-22, 2018 IOGAWV Sports Weekend Bridgeport Country Club Bridgeport, WV September 30 – October 2, 2018 IOGCC Annual Conference Coeur D’Alene Hotel Coeur D’Alene, ID Info: http://iogcc.publishpath. com/events October 17-18, 2018 Fall Oktoberfest, Annual Meeting and Sports Outing Seven Springs Mountain Resort Champion, PA Info: www.pioga.org November 11-13, 2018 IPAA Annual Meeting Ritz-Carlton New Orleans, LA Info: www.ipaa.org

R.L. Laughlin & Co., Inc

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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.

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New Officers Continued from page 1 Ben Sullivan is General Counsel and Executive Vice President of Greylock Energy, a company that purchased the majority of the assets of Energy Corporation of America in late 2017 and which operates more than 4,400 shallow as well as unconventional / horizontal wells throughout Appalachia, including several thousand in West Virginia. Prior to joining Greylock, Sullivan worked for ECA. He is a member of the Boards of Directors of the West Virginia Chamber of Commerce and the Hatfield McCoy Regional Recreational Authority, and is a former Vice President and Board of Directors Member of the West Virginia Independent Oil and Gas Association (2015-2017), current Trustee and former Executive Committee member of the Energy and Mineral Law Foundation, current member of the Legislative and Legal Committees of the Marcellus Shale Coalition, and previously served as Legal Committee chairman for the WVONGA and as a member of the Legal Committee of VOGA. Sullivan graduated from the University of Kentucky and received a law degree from the WVU College of Law. He and his wife Stephanie live in Charleston with their two children.

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Greg Kozera Learned Leadership LLC

A Country Without Fracking?

Look at Europe

“If the Shale Crescent USA were a country, we would be the number three natural gas producer in the world.” You have heard this before. It stunned a talk show host in Cincinnati when I said it. It got the attention of the Japanese in January.

The large consulting firm Deloitte agrees. Even the White House Staff we talked to didn’t know this fact.

The rest of the story is that the only two places that produce more natural gas than the Shale Crescent USA are the USA (without the Shale Crescent included) and Russia.

My focus here is not on the politics. My focus will be on energy, about which the major media chooses to be or is clueless. For ex-

ample, a recent “Sixty Minutes” segment implied that a decommissioned nuclear power plant in California probably producing about 3000 MW 24/7 was being replaced by 62 acres of solar panels on the same site producing 5 MW (when the sun shines).

California recently shutdown the San Onofre nuclear power plant and the Morro Bay natural gas power plant, together producing about 6000 MW. In April of 2018 Californians were paying $0.16 per kwh for electricity compared to $0.11 for West Virginians and $0.12 for Ohioans. However, a rate increase approved in May by the California PUC will increase rates for most consumers to about $0.25 per kw. Wow! Who can afford

that? Replacing nuclear power and natural gas with renewables is not cheap or possible.

Russia is our biggest competitor in the natural gas market. They are proposing to build Nord Stream 2, a 48-inch natural gas pipeline that will run from near St. Petersburg in Russia to Greifswald in northeastern Germany. It will run under the Baltic Sea parallel to Nord Stream 1, which was built in 2011. Russia is already supplying most of Germany’s natural gas. This pipeline will double the amount of gas Germany can import from Russia. Germany currently uses more natural gas than any other European country and they expect their natural gas demand to increase.

This is a major win for Gazprom, the Russian natural gas company.

Gazprom has been providing natural gas to Europe for over 40 years.

They are the largest exporter of natural gas to the European market.

The US entered this market last year with natural gas shipments to Poland. Natural gas demand in Europe is expected to continue to increase.

European natural gas production is decreasing. Most European counties have banned or restricted hydraulic fracturing. Renewables are expensive and, as we know, don’t work 24/7.

Europe has decided to turn to Russia to meet their oil and gas needs.

From a strictly business standpoint, one has to wonder if Russia chose to invest a few million dollars in the Dark Environmental Groups that were trying to get “fracking” banned in Europe. This would not be illegal under Russian law. It is simply an investment decision. What is the ROI of few million dollars Look at Europe Continued on page 12

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Burd’s Nest

Continued from page 4

the Atlantic Cost Pipeline, Mountaineer Express, Leach Express and Mountain Valley to name but a few.

Just this sampling of projects totals nearly 10 Bcf/day in delivered capacity.

Thank You

Given all the clean-burning, energy efficient natural gas being produced in the Appalachian Basin, and given it will be produced at a price under $5/dt for the foreseeable future; and given we have the most

storage and best delivery system in the nation…. please stop picking winners and losers under the veil of national security issues, Mr. President, and simply let market pricing dictate the fuel source for our nation’s power production.

Finally, I want to thank my family.

It is not always easy serving as President and often times there were long nights or busy weekends keeping up with our many important ongoing initiatives. I could not have carried out these duties without the support and encouragement of my wife and

children.

It has been a great year. I thank you for allowing me to serve as your President this past year. I believe our future is in great hands and I look forward to seeing continued IOGAWV accomplishments in the years to come.

Continued from page 2

my privilege to support all of you and carry our message to our local and state leaders. Our message is clear: We want a strong and vibrant West Virginia with a strong economy and wonderful community that provides a great place for us and future generations of West Virginians to live and prosper.

Sports Weekend

Continued from page 1

moting your company’s image. So not only will you want to attend this great event, but you may want to get even more recognition as a sponsor.

By becoming a Sports Weekend Meeting sponsor at the bronze, silver, gold, platinum or diamond event levels, your company will receive special recognition throughout the industry by coverage during the event, in IOGA News, on www. iogawv.com and on sponsor boards posted throughout the meeting venues. Diamond Event Sponsors receive a special recognition banner at your sponsored event, including your color logo as it appears in the program.

A block of rooms has been reserved at Courtyard by Marriott Bridgeport/Clarksburg for Friday and Saturday nights at a rate of $95 (plus tax) per room per night. To make reservations by Friday, August 31, call (304) 933-8051.

For those who would prefer to stay in Morgantown, a block of rooms has been reserved at Holiday

Inn-University Area. The rate is $159 plus tax and to make reservations by Friday, August 31, call (304) 241-6649 To register for the Sports Weekend, please use the forms on pages 18 and 19 and return them to the IOGAWV office no later than Friday, August 31, or register online by the same date.

GOpac reminds everyone that this is one of two major fundraisers dedicated to support our industry’s state legislative lobbying efforts. To that end, you are encouraged to take the opportunity to contribute to GOpac.

Other than cash, contributions to GOpac must be made by personal check only. GOpac is a separate and distinct entity from IOGAWV.

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Mark D. Clark Spilman Thomas & Battle, PLLC

Once Endangered Not Always Endangered On July 25, 2018, U.S. Fish and Wildlife Service (FWS) and the National Oceanic and Atmospheric Administration’s National Marine Fisheries Service (NOAA Fisheries) jointly published in the Federal Register revisions to regulations that implement portions of the Endangered Species Act (ESA). The proposed revisions would make it easier to delist an endangered species by streamlining interagency consultations and would withdraw a policy that automatically extended the same protections for both threatened species and endangered species. The FWS explained in a statement that “ESA implementation was not consistent and often times very confus-

ing to navigate,” thus necessitating the proposed changes. The proposed revisions are characterized as a way of “providing clarity,” so that animals and plants could be more easily removed from endangered and threatened species lists.

The propose regulatory revisions are in furtherance of Executive Order 13777, “Enforcing the Regulatory Reform Agenda,” and the Department of the Interior’s (DOI) and NOAA’s requests for public comment on how each can improve implementation of regulatory reform initiatives and policies and identify regulations for repeal, replacement, or modification. The organizations received substantial

input from a wide range of stakeholders on modernizing the implementation of the ESA in order to improve collaboration, efficiency, and effectiveness. The proposed rule addresses comments received in response to the regulatory reform docket.

The Trump administration also requested that FWS discard language that guides officials to ignore economic impacts when determining how wildlife should be protected so that determinations are based instead on “the best scientific and commercial data.”

FWS and NOAA Fisheries propose changes to some of the Endangered Continued on page 14

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Look at Europe Continued from page 9 invested with the Dark Environmentalists? They would have eliminated Europe’s ability to produce natural gas and they have plenty of gas to sell. It will soon be selling natural gas from two additional major pipelines to Europe (since the banning of “fracking”) with long-term contracts tied to oil prices. Sounds like a pretty good ROI. This is exactly what the USA would look like if our industry had not developed the shales in our country with horizontal drilling and hydraulic fracturing.

Hydraulic fracturing has been banned or restricted in Europe because of environmental fears. We know that they are unfounded. We also know that Europe has shales that could reduce their dependence on Russia. Unfortunately, unless something changes, Europeans will never know what they have. The “antis” or “Dark Environmentalists” were able to get this done.

The Dark Environmentalists are those people and organizations who use environmentalism to further their own agenda or who care more about the environment than the people who live in the environment.

I believe a true environmentalist should care first about people. People are the reason for protecting the environment. Destroying people’s jobs, driving families into poverty or restricting the fuel and petroleum feed stocks our military needs to protect our freedom is “dark environmentalism” at its darkest.

European nations are turning to Russia for their natural gas needs.

Russia, like all countries, hydraulically fractures almost every well. Mr. Putin will continue to frac and make billions of dollars from his European customers. Gazprom’s contracts with its European customers are long-term and tied to oil prices, unlike American gas.

What does this mean for the Shale Crescent USA and for our region’s oil and gas industry? Russia will continue to be a major competitor globally. We can compete in Europe, but Russia has an advantage with their pipeline over our LNG. However, our competition will force Russia to stay competitive, like what happened in Poland when the US started shipping them LNG last summer. Gazprom now has some competition from the USA. We know that the Shale Crescent USA has a huge manufacturing advantage over Europe. Natural gas prices in the USA are not tied to oil prices. The current Dominion South Pointe price for natural gas in the Shale Crescent USA is $2.40 per MM BTU. This is equivalent to oil at $14.40 per barrel. Oil on the world market is selling for $70 per barrel. Shale Crescent’s natural gas is real bargain for industry AND it is literally right under the plants in our region, which minimizes transportation costs. This is why industries in Europe and Asia are looking to locate here. We need to make sure the world knows about our energy advantage.

Europe is a great place for us to prospect. We know where they are getting their energy; whether it is Russia or from renewables, it is very expensive. The other problem Europe has by getting gas from Putin and Gazprom is that Putin can apply political pressure, if he chooses, like he did in Ukraine in 2014 and simply close the valve, shutting off their natural gas. The energy advantage we have in the Shale Crescent USA is long term. We offer the world a unique advantage with low natural gas and natural gas liquids (NGL) prices with an abundant supply. We have competitive electric rates, especially when compared to places like

Europe, Japan, California and New England.

Maybe most important, as a nation, we need to look at Europe as an example of what can happen if the Dark Environmentalists go unchallenged. By stopping hydraulic fracturing, Europe no longer is free to control their own destiny. Europe must depend on foreign nations for fuel and petrochemicals for their military. Mr. Putin can apply financial and political pressure simply by closing a valve at the right time.

Sadly, we still have the antis and Dark Environmentalists trying to ban hydraulic fracturing here, starting in states and communities that don’t have a clue what hydraulic fracturing is. We know from the recent Orion poll that 85% of people in the counties in our region where most of the drilling is have a favorable opinion of our industry. Knowledge of the truth overcomes fear and the falsehoods and half-truths of the Dark Environmentalists. Maybe our national organizations need to invest more time and money in areas where we don’t drill. Our government is spending a lot of money investigating a Trump-Russia connection, which makes no sense to me and others who understand energy.

Shouldn’t our government be investigating to make sure money from foreign governments isn’t flowing to the Dark Environmentalists in the USA? This is a direct threat to our military’s ability to defend us.

Public education is a job for each of us. We are the experts. A lot is at stake. We know what Europe looks like without a viable oil and gas industry. There but for the grace of God and the American oil and gas industry goes the USA. Thanks for all you do. You are making a difference to America!

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Hugh Byers Direct Energy

Nymex Natural Gas Futures Contract 12-Month Forward Strip Average Prices Through 6/25/2018

Save the Date September 15, 2018

WV Oil & Gas Festival Honoring Dave Freshwater as the 2018 WV Oil & Gas Man of the Year in ceremonies in Sistersville, WV. Look for more information in the September issue of IOGA News and at www.iogawv.com.

January 22-23, 2019

IOGAWV’s 60th Annual Winter Meeting Charleston Marriott Town Center Hotel

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Endangered Continued from page 11 parameters under which other federal agencies must consult to ensure their actions do not jeopardize the continued existence of listed species, or destroy or adversely modify critical habitat. The agencies also propose various measures to clarify and improve some of the standards under which listings, delisting, and reclassifications, and critical habitat designations are made. In addition, FWS independently proposes a change in its approach to applying protections to threatened species that would align its practice with NOAA Fisheries so the two agencies are consistent in their application of this provision of the ESA. FWS proposes to remove its blanket rule under section 4(d) of the ESA that automatically conveys the same protections for threatened species as for endangered species. This change will not affect the protections for species currently listed as threatened, but will ensure that species listed as threatened in the future receive the protections tailored to the species’ individual conservation needs.

The agencies suggest that all changes are being proposed as part of a robust, transparent public process. They encourage the public to provide input to ensure these regulations are effective in furthering the ESA’s ultimate goal—recovery of our most imperiled species to the point they no longer need federal protection.

At the same time FWS and NOAA Fisheries are pursuing the proposed regulatory changes, Congress is considering changes to the ESA that will preclude the listing of certain species as threatened or endangered for specified periods. The DOI spending bill is proposed to include ESA riders. The spending package for fiscal year 2019 included more than 230 amendments with 163 of them filed just to the Interior-EPA title.

Some of the amendments adopted in the House relate to hot-button issues confronting the Environmental Protection Agency (EPA) and DOI, including listing and spending for endangered species. One amendment would bar the use of funds to implement or enforce the threatened species listing of the Preble’s meadow jumping mouse, as well as another amendment to prevent the enforcement of threatened or endangered species listings unless they have undergone a five-year review.

Yet another amendment would prevent any rulemaking on the status of the lesser prairie chicken.

Meanwhile, in the Senate Committee on Environment and Public Works Governor Matt Mead of Wyoming discussed draft legislation titled Endangered Species Act Amendments of 2018, designed to elevate the role of state and local governments in the listing process while also furthering transparency efforts. The bill is inspired by an ongoing bipartisan campaign by the Western Governors Association to recommend changes to the ESA. With Republican support shoring up in the Senate, the bill may have significant support. According to Kevin Kester, California rancher and NCBA President, the Endangered Species Act Amendments of 2018 is a once in a lifetime opportunity for species conservation reform and those in support of the bill are waiting on baited breath for it to become law.

Also, Western Republican lawmakers rolled out a wide-ranging legislative package to overhaul the 45-year-old ESA, which they say has morphed into a financial and regulatory burden on farmers, ranchers and loggers without adequately protecting wildlife. “Everyone here agrees with the premise that we should make all reasonable effort to

protect species facing extinction” as a result of human activity, said Arizona Republican Rep. Paul Gosar, chairman of the Congressional Western Caucus, in support of the suite of bills he dubbed the “Western Caucus Endangered Species Act Modernization Package.” Among the arguments for the reform is that the protection of species and habitat has threatened healthy and sustainable forests, making them vulnerable to wildfire.

Tension over whether the Mexican gray wolf should still be classified as an endangered species is just one example in an ongoing battle between federal and state interests to reform the Endangered Species Act. Conservation groups say that giving states more input means that more species that need protection will not be listed as endangered and would block the ability of advocacy groups to sue to protect species.

It is far from clear at this point which, if any, changes will be made to the ESA, but it is clear that efforts are being made to implement changes while Republicans remain in control of Congress. If you questions or comments regarding the ESA or the proposed regulatory changes, please contact Mark Clark at MClark@Spilmanlaw.com or Dave Yaussy at DYaussy@Spilmanlaw. com.

Save Sept. 21-22 for IOGAWV’s Sports Weekend.

15

Mark Taylor WeatherBELL Analytics

What to Expect For the End of Summer

For more information about WeatherBELL’s services and to get the hot-off-the-press HDD forecasts, please visit our website www.weatherbell.com or contact Mark Taylor at (770) 855-1585/taylor@weatherbell.com.

We’re now accepting applications for producer companies that would like to be featured in IOGA News; please contact IOGAWV’s Charlie Burd at cburd@iogawv.com.

Homestead Communications

getting YOUR message to the right people through award-winning public relations

homestead communications po box 13604 | charleston, wv 25360 304.984.0308 | homesteadcommunications@frontier.com

As we expected, the back half of summer has turned cooler than the opening half, with the flip occurring right around mid-July. The exception will be in the Northeast and the West, which should see warmer temperatures. The warm temperatures in the East should be more because of warmer nighttime lows rather than hot afternoons.

In the Tropics, cool water in the Tropical Atlantic has turned even cooler. This continues to support a weaker than average Hurricane Season, but there will be windows of opportunity for storms to move near the U.S. Coast, where they still can be very strong.

Stay tuned to WeatherBELL energy services for the latest monthly and weekly forecast updates.

16

Rick Perry Energy Secretary (as published on 7/29/2018 on CNBC.com)

True Energy Independence Is Finally Within Our Grasp By all accounts, the United States is in the midst of truly spectacular progress in the vital realm of energy.

Spurred by technological breakthroughs unleashed by innovation, deregulation and pro-growth policies, we are now producing energy more abundantly and affordably, using it more cleanly and efficiently, and obtaining it from a wider range of sources than anyone ever thought possible.

Gone are the days of America's crippling dependence on foreign energy sources. True energy independence is finally within our grasp and we are exporting more of our energy to our allies.

Nowhere is this stunning turnaround more dramatic than with natural gas.

Thanks to significant innovations in hydraulic fracturing and horizontal drilling, the U.S. is the number-one natural gas producer in the world.

A few short years ago, U.S. natural gas producers were spending billions to construct facilities to import liquefied natural gas (LNG).

Today, they are converting investments to export operations and last year, for the first time since Dwight Eisenhower was president, America became a net natural gas exporter.

We currently have two LNG export facilities operating in the United States – Sabine Pass in Louisiana and Cove Point in Maryland – and another four export terminals under construction. Sabine Pass and Cove Point ship American LNG to 30 nations on five continents.

During a recent visit to Cove Point, I witnessed the historic completion of its LNG export expansion project — a great milestone

in America’s natural gas journey — and watched as a tanker was loaded and readied for shipment to overseas customers.

Cove Point’s contracted LNG customers are companies based in Japan, a nation of 127 million people, and India, the world’s largest democracy with a growing economy and population of more than 1.3 billion.

These contracts carry destination flexibility, and have allowed LNG from Cove Point to reach global destinations that include the United Kingdom, Argentina, Jordan, Japan, Pakistan, Kuwait, the Dominican Republic, and Panama, with more opportunities on the horizon.

In fact, DOE just finalized a new rule that will expedite the permitting of certain small-scale exports of natural gas to reduce the regulatory burden on American businesses, while providing significant benefits to our trading partners in the Caribbean, Central and South America.

The benefits of our shale revolution have given a tremendous boost to both our domestic economy and our energy security. To seize this momentum, we must continue to expand our extraction capabilities and domestic transmission infrastructure.

Doing so will allow the United States to better distribute product from the fields of Appalachia’s Marcellus and Utica Shale Basins, and meet our growing energy needs at home.

Natural gas production has created over 150,000 jobs across the nation. And as domestic production continues to increase, and natural gas prices remain low, our economy reaps the benefits. American families enjoy a lower cost of living, and our businesses see reduced operating

costs, make greater investment, and increase employment opportunities.

The Trump Administration has put Washington squarely on the side of growth and opportunity, by removing unnecessary and burdensome federal regulations that unfairly target fossil energy.

But that is not all. These actions will benefit our environment as well.

Indeed, partly due to our natural gas boom, the United States has led the world in cutting energy-related carbon dioxide emissions, reducing them by nearly 14 percent – or 700 million metric tons – from 2005 to 2017. Increasing our use of clean, affordable natural gas is helping us eliminate the false choice between growing our economy and protecting our environment.

And what has worked for us can work for the world. The increased availability of American LNG will contribute to global energy security, providing more options for the world’s energy consumers.

For too long, Russia has enjoyed near-monopoly status as the main supplier of natural gas to our European allies, and wielded that power as a means of political coercion.

Simply stated, the United States wants to help our partners increase their energy security by increasing the diversity, not only of their supply, but of their suppliers as well.

Now that America is exporting natural gas, we stand ready, willing, and able to be a reliable and competitive source of energy diversity and security for our trading partners.

The story of America’s path to energy independence shines brightly for all the world to see and natural gas is playing a central role.

17

Association News

IOGAWV/BrickStreet Insurance Safety Discount Program First Year Results As we announced last year, IOGAWV and WVONGA joined together with BrickStreet Insurance to offer a safety discount program to our members effective September 1, 2017. The results are in for the first year of the combined program and we are already seeing improvements.

The participating group saw a reduction in their overall loss ratio over the past year resulting in an increase to the discount amount that will be available. Beginning September 1, 2018, members who are eligible for the program will receive a 5.2% discount on their BrickStreet workers’ compensation policy. This is an increase of 3.2% from last year!

The more members who participate, the more benefits we receive as a group. Increased member participation, improved safety performance and successful implementation of the additional participation criteria will help to increase the amount of the discount each year.

This program is designed to help participants put effective safety and return-to-work programs in place in order to reduce their costs. Direct benefits of the program include individual safety consultations from a BrickStreet Safety and Loss Control Consultant, group safety trainings provided at no charge to members who participate in the program and a discount on your BrickStreet workers’ compensation premium. Other positive outcomes from participating in the program can include a reduction in your overall costs related to workplace injuries by reducing the number of injuries that occur and by working with BrickStreet to get injured employees back to work as quickly and as safely as possible.

To qualify for the program, IOGAWV members must be in good standing with the association.

In addition members must do the following: A. Report claims within 48 hours

of any accident; B. Achieve and maintain a threeyear loss ratio of 65 percent or less; C. Implement and maintain a formal return-to-work program; D. Annually attend at least one safety seminar per year that applies to operational hazards, or complete one BrickStreet online course dealing with operational hazards; and, E. Implement and maintain an effective Safety and Loss Control program If you are interested in participating in this program please contact your insurance agent or your association staff. BrickStreet policies with effective dates of September 1, 2017 and after may qualify for the program. Let’s keep working to increase participation in this very beneficial program and more importantly let’s keep working to improve the safety of our workplaces!

Save the Date IOGAWV Tax Seminar November 13, 2018 Marriott Town Center Hotel Charleston

18

Sports Weekend Sponsor Form

2018 Sports Weekend Sponsor Form Bridgeport Country Club and Mountaineer Field September 21-22, 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 August 31, 2018. Be sure to email a high resolution (300-dpi minimum) version of your company’s color logo 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

19

Sports Weekend Registration Form

2018 Sports Weekend Registration Bridgeport Country Club and Mountaineer Field September 21-22, 2018 Please mail this registration form

___________________________________ with payment by August 31, 2018 Company Name to: 300 Summers Street, Suite 820

___________________________________ Charleston, WV 25301 Address

Early registration ends Aug. 31; ___________________________________ after that, add $25.00 per person

City, State, Zip

No Refunds after Aug. 31, 2018

___________________________________ For additional information call Telephone Lori Miller Smith, (304) 344-9867.

Name

Employer

Member Y/N

Golf

Sporting Clays

Contact person for foursome:

Registration Fees

__________ @ $ 80.00 per member/ __________ $150.00 per non-member Golf - Greens fees and cart __________ @ $ 70.00 per person Sporting Clays __________ @ $ 55.00 per person Tailgate Party __________ @ $ 20.00 per person TOTAL $ __________ www.iogawv.com

300 Summers Street | Suite 820 | Charleston, WV | 25301 P: (304) 344-9867 F: (304) 344-5836

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. 175