2018iogawvfebruarynews

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Independent Since 1959

NEWS

February 2018

Capitol Energy Jobs Rally Set For Feb. 21 The oil and natural gas industry supports thousands of jobs and is a key source of much needed revenue for the state and its citizens.

Our lawmakers need to pass legislation that will maximize the benefits the industry can provide. Modernized mineral development laws will benefit all West Virginians by creating more jobs and a stable tax base.

That’s why we’re rallying in Charleston on Wednesday, February 21st, from 10:00 to 11:00 a.m. The rally will take place on the Kanawha Blvd. steps of the State Capitol

Building in Charleston.

Chartered busses will be making stops at the following locations: • Bridgeport (Antero Resource’s Office, 535 White Oaks Boulevard) • West Union (Doddridge County High School Football Field) • Jane Lew (Southwestern Energy’s Office, 179 Innovation Drive, off Exit 105) • Downtown Charleston Location, 300 Capitol Street • Parkersburg Park & Ride (off

US 50 W) There will be a number of speakers from IOGAWV, WVONGA and legislative leadership, to name a Brett Loflin few. The event Vice President is sponsored by & Program Chair IOGAWV and WVONGA. WE NEED YOU TO JOIN US! Register at https://www.wvenergyjobsrally.com/#register.

Winter Meeting Touted As “One of the Best”

Congressman David McKinley addressed the Winter Meeting on the Appalachian Storage Hub project. sor with an agenda that highlighted The Independent Oil and Gas several timely and noteworthy Association of West Virginia’s topics, and an outstanding array of (IOGAWV) 2018 Winter Meeting speakers, including Congressman took place Tuesday, Jan. 23, and David McKinley, selected leaders Wednesday, Jan. 24, at the Marriott from some of West Virginia’s top Town Center Hotel in Charleston, W.Va. This year’s event featured An- oil and natural gas producing companies and other recognized oil and tero Resources as its Premier Spon-

natural gas industry experts.

Technical sessions Tuesday were sponsored by C & J Energy Services, Schlumberger Oilfield Services and U.S. Well Services. These presentations addressed the latest in technological advancements.

“This event presents industry professionals with a wonderful opportunity to further develop their knowledge and skills so they can continue to grow and flourish,” said IOGAWV Vice President and Program Chair Brett Loflin.

IOGAWV President Marc Monteleone stressed that IOGAWV represents the entire natural gas and oil industry and shared highlights of the association’s benefits, services, activities and legislative efforts. “Our goal is to provide every member with tangible benefits.”

One of the Best Continued on page 14

INSIDE

Marc Monteleone / 2 Antero Dedication / 3 Charlie Burd / 4 Sarah Smith / 5 Mark Clark / 7 Mark Taylor / 9 Greg Kozera / 11 Mike McCown / 12 Hugh Byers / 13 Industry Events / 15 Gunslinger Award / 16 Pruducers’ Issues / 16 Ergon / 17 Reclamation Awards / 17 Winter Meeting Sponsors / 18

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Marc Monteleone IOGAWV President

Our Best Yet We just concluded our Winter Meeting in Charleston and I personally believe it was our best Winter Meeting ever. I want to personally thank each and every person who attended this year.

The attendance was significantly up from previous years and we packed the Charleston Marriott to its maximum capacity. Our technical sessions were both educational and informative and many people stopped to express their appreciation for the subject matter covered in these sessions.

Yes, the speakers, sponsors and participants were great, but what made this meeting so special for me was the atmosphere that filled the Marriott. We all know that our industry is the best HOPE for the future of West Virginia, our region and perhaps the entire United States.

For West Virginia, we offer good paying jobs, a strong economy and a long-term industry. That means our children can stay in West

Virginia and enjoy the same wonderful lives we have all enjoyed in West Virginia. It means our state will have the funds necessary to provide the programs and services we all want and enjoy. Schools will have proper funding, needed social programs will be funded, public employees will receive raises and the business sector will grow and prosper.

For our region, much of the same is true. Pennsylvania, Ohio and Kentucky have the same challenges facing our state. The opportunity the oil and gas industry will provide needs to be applied on a regional basis. As several of our speakers discussed, there is complete cooperation from this region and our neighboring states have signed various agreements pledging their support to work together to maximize this opportunity.

For our nation, we achieve energy independence which is something every President has requested since I was born in 1962. In the last two

years the United States has not only become energy independent, but we have become the largest producer of oil and gas in the entire world!

This is truly a game changer and the dependency my generation had on oil from the Middle East is over.

The next generation of Americans will never have to face oil embargoes, gas shortages and price wars.

Our Best Yet Continued on page 6

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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Antero Dedication

Antero Resources Donates Marcellus Development Exhibit to Oil & Gas Museum The Oil & Gas Museum, located in Parkersburg, opened a new exhibit on Thursday, January 25. The “Modern Marcellus Shale Development” exhibit was donated by Antero Resources.

Officials from the Independent Oil and Gas Association of West Virginia, the Southeastern Ohio Oil and Gas Association and Antero Resources attended.

The exhibit, two years in the making, allows the public to see the differences between the old and new ways oil is drilled in the region, according to Alvyn Schopp, chief administrative officer and regional senior vice president for Antero Resources.

“We wanted to do a compare and contrast to how it was done then and the technology today and the things we are using,” Schopp said.

“We’ve included some pictograms to explain how the concept of a horizontal well is unique to the Marcellus and Utica Shale. Nobody is drilling an economical well anymore by drilling straight down.”

Charlie Burd, executive director of the Independent Oil and Gas Association of West Virginia, or IOGAWV, said the Marcellus Shale is an important resource.

“The future of energy in West Virginia is a mile and a half under your feet,” he said.

“I don’t think anyone envisioned the Marcellus 30 years ago and here we are today,” Schopp said. “This is the largest gas producing area in the United States. It’s the second largest gas field in the world that we really didn’t appreciate 30 years ago. I don’t know what it’ll be in 30 years from now, but I know Marcellus is

big enough to take us that 30 years to find out.”

The Oil & Gas Museum, founded

in 1989, honors the long history of oil and gas development in Appalachia.

The photos at left show part of the exhibit, as well as a number of people who attended the opening of the “Modern Marcellus Shale Development” exhibit.

Antero Resources’ Alvyn Schopp is joined

by Paul Hoblitzell,Carl Heinrich and Christy Chavez in dedicating the exhibit.

Ben Hardesty, Mike McCown, Pam McCown, Jeannie Hardesty and Jim Crews (retired, Pennzoil) all gathered for the dedication of Antero Resources’ gift to the Oil and Gas Museum.

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Charlie Burd Executive Director, IOGAWV

From the Burd’s Nest: A Meeting For the Ages The 2018 IOGAWV Winter Meeting was my 15th. As I reflect, I cannot recall another Winter Meeting that was better planned and executed.

IOGAWV is very blessed to have Lori Miller Smith on its staff. Lori is a very unique individual who had a very successful oil and natural gas career before she joined IOGAWV. Your Executive Director could not have a better office manger and meeting planner. The success of this and all IOGAWV meetings can be directly attributed to Lori’s dedication and tenacious spirit. Thanks, Lori!!

If you were unable to attend, the first day technical sessions hosted by C & J Energy, Schlumberger Oilfield Services and U. S. Well Services could not have gone better. It was very well attended, the sessions were well conducted and I want to personally thank these three wonderful service companies for their continued support which not only included the speakers, but also breakfast and lunch for all those first day attendees.

At the same time the technical sessions were being delivered, there were other concurrent meetings being conducted. The Producers Issues Meeting, sponsored by USI Insurance Services, open to only IOGAWV producer members, was well attended and several topics important to producers were discussed.

Another concurrent session was the monthly Commerce Committee where all pipeline, rate and gathering matters are vetted. Traditionally at this meeting we also throw in a report on legislative initiatives and bill status.

As always, it was a pleasure for me to be the featured speaker for the West Virginia Desk and Derrick luncheon where I provided the attendees with a briefing on legislative initiatives and bill status. This is a wonderful group of professionals who provide front line assistance to their individual companies in many and varied ways. If your company was not represented—it should be.

Just Google West Virginia Desk and Derrick and see how easy it is to get involved in its fine work for the industry.

The second day activities began with breakfast sponsored by Ergon Oil Purchasing. Speakers were to start with an address from Governor Jim Justice, but other duties prevented his attendance—but Chief of Staff Mike Hall (former State Senator and Finance Chairman) stepped up to the plate and delivered a very enthusiastic welcome, thanked the industry for all it means to the State, and expressed his optimism for the Appalachia Storage and Trading

Hub and all the greatly anticipated upstream and downstream development it could mean to West Virginia and its citizens.

From those opening remarks, the day was off and running with morning presentations and market outlooks from Mark Pierce, President of Nytis Exploration/Carbon Natural Resources and Joel Symonds with Arsenal Resources (who graciously sponsored the morning coffee break); Don Nestor presented on the federal tax changes specific to oil and natural gas operations; Doug McElwee presented on his new online mapping program; and we got a great weather report for more colder weather from Joe Bastardi of WeatherBELL. Following a wonderful lunch sponsored by Bowles Rice, LLP, IOGAWV made its annual contribution to the West Virginian Oil and Gas Museum and, in conjunction with the WV DEP’s office of Oil and Gas and WVONGA, presented Burd’s Nest Continued on page 10

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Sarah Smith Membership Vice Chair

IOGAWV Board Approved 14 New Members in January Please welcome these new members approved in January: A.W. Chesterton ALL Keith McMillion 414 Industrial Park Rd. Beaver, WV 25813 Phone: (304) 253-4623 Cell: (304) 415-4882 Fax: (304) 253-0660 keith.mcmillion@chesterton.com www.chesterton.com AguaRaider ALL Ken Burris 128 N. East Street Uvalder, TX 78801 Phone: (830) 515-5565 kenburris@aguaraider.com www.aguaraider.com

APTIM ALL Andy Martin 5301 Westbrook Drive Cross Lanes, WV 25313 Phone: (304) 542-2605 Fax: (973) 773-8401 andy.martin@aptim.com www.aptim.com B3 Security Group PRO Roger Baker 284 West Meadows Lane Maxwelton, WV 24957 Phone: (877) 432-2924 roger@b3sg.com www.b3sg.com

Borton Lawson PRO Engineering, Inc. Matthew Neiman 6000 Brooktree Road Suite 110 Wexford, PA 15090 Phone: (724) 935-3110 Cell: (724) 584-8357 Fax: (724) 935-3112 mneiman@borton-lawson.com www.borton-lawson.com Bowyer, David E. POP David Bowyer 12088 Middle Island Rd. Alma, WV 26320 Phone: (304) 758-0672 Cell: (304) 203-5057 Fax: (304) 758-0674 dbowyer6928@gmail.com Bruceton Petroleum ALL Brian Yocum 116 Shannon Drive Morgantown, WV 26508 Phone: (304) 291-6980 Cell: (304) 276-7013 Fax: (304) 291-6984 hgraham@bfscompanies.com bfscompanies.com Chem Inspection PRO Clinton Horn 3486 Trace Fork Rd. Sandyville, WV 25275 Phone: (304) 514-1073 chem.inspection88@gmail.com www.cheminspection.com New Members

Continued on page 8

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Our Best Yet Continued from page 2 Clearly our industry is up for this challenge and ready to lead West Virginia, our region and our country into prosperity and energy independence. Every person I talked to at our meeting had a “can-do” attitude and was proud to be a part of this opportunity. I often worry about the future for my children but after experiencing the atmosphere surrounding our 2018 Winter Meeting I am more optimistic than ever that there is a clear path forward for West Virginia. I am proud to be a part of our industry and together we are going to deliver on the HOPE for West Virginia’s future. Again, thank you for being a part of our 2018 Winter Meeting.

We hope to see YOU at the 2018 Energy Rally on Feb. 21 at the State Capitol in Charleston.

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Mark Clark Spilman Thomas & Battle, PLLC

Waters of the United States Rule: Another Twist The United States Environmental Protection Agency (“EPA”) promulgated a final rule, effective August 28, 2015, “clarifying” the definition of “waters of the United States” as used in the Clean Water Act, 33 U.S.C. § 1251 et seq., “through increased use of bright-line boundaries” to make “the process of identifying waters protected under the Clean Water Act easier to understand, more predictable and consistent with the law and peer reviewed science, while protecting the streams and wetlands that form the foundation of our nation’s water resources” (the “Clean Water Rule”). On October 9, 2015, the United States Court of Appeals for the Sixth Circuit (“6th Circuit Court”) issued an order

staying enforcement of the Clean Water Rule pending appeal to the Supreme Court of the United States (“Supreme Court” or “SCOTUS”) concerning whether the 6th Circuit Court has jurisdiction to consider the appeal of the Clean Water Rule.

On January 22, 2018, SCOTUS issued a decision in National Association of Manufacturers v. Department of Defense, et al., concerning which federal courts should consider and decide appeals of the Clean Water Rule. The Supreme Court’s decision rejected the Government’s position that the Clean Water Rule appeals should be heard by the 6th Circuit Court and held that the appeals should be considered and decided in the first instance at the United States

District Court level. Justice Sotomayor delivered the opinion for the unanimous Supreme Court reversing and remanding to case for further consideration by the federal district courts.

The case made it to the Supreme Court because various parties, including the National Association of Manufacturers, appealed the Clean Water Rule in United States District Courts across the country. Uncertainty surrounding the jurisdictional question resulted in a number of parties filing appeals to various United States Courts of Appeal around the country which were consolidated and transferred to the 6th Circuit Court which issued the WOTUS Continued on page 10

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New Members Continued from page 5 CIC PRO Daniel Sherwood 1201 Braddock Pl. Apt. B14 Alexandrria, VA 22314 Phone: (248) 953-5327 dsherwood45@gmail.com Davis Pickering & Co., Inc. ALL Dustin Flinn 165 Enterprise Drive Marietta, OH 45750 33 Silos Williamstown, WV 26187 Phone: (740) 373-5896 Cell: (304) 834-6642 Fax: (740) 373-8638 dustin.flinn@davispickering.com www.davispickering.com

Hammer, Jeffrey PRO Jeffrey Hammer 709 Ramon Drive Pittsburgh, PA 15238 Phone: (412) 877-8608 Fax: (412) 963-1538 jeff.hammer@elevationeg.com www.elevationeg.com Mitchell Industries ALL Mark Mitchell 15555 Interstate East Baytown, TX 77523 Phone: (281) 576-5007 Cell: (713) 249-6480 Fax: (281) 576-5009 mmitchell@mitchellind.com www.mitchellind.com

Mountain Gas Services, LLC ALL Jeff Bonnett PO Box 547 2966 Northwest Turnpike Pennsboro, WV 26415 Phone: (304) 659-3570 Cell: (304) 299-3050 Fax: (304) 659-3575 perkinsoil@gmail.com SECUR ALL John Evanko 409 Broad Street Suite 250 Sewickley, PA 15143 Phone: (888) 484-4031 Cell: (724) 312-1754 Fax: (412) 535-7393 john@securllc.com www.securllc.com

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Mark Taylor WeatherBELL Analytics

WeatherBELL Winter Commentary

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The Polar Vortex came back with a vengeance from late December into early January. The coldest air on the globe was parked over North America for a solid 2-3 weeks.

The pattern is very similar to what happened in the La Niña of 1995-96 (the winter of the infamous Blizzard of 1996). A see-saw pattern of warmth and cold occurred, but it is remembered for its cold and snow.

As expected, the cold air backed off in late January (the January thaw), but we are expecting another round of harsh weather in February, which could last into early March.

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

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Burd’s Nest

Continued from page 4

the 2017 Oil and Gas Reclamation award sponsored by Ergon Oil Purchasing. (Please see page 17 for details on the award-winning companies.)

The afternoon sessions were kicked off by U.S. Chamber of Commerce President Karen Harbert who gave an outstanding presentation touching on several topics of national and global importance to our industry. Former Speaker of the House and State Cabinet Secretary of Revenue Bob Kiss presented a comprehensive overview of the 2018 tax law changes in advance of the Appalachia Storage Hub panel presentation by Congressman David McKinley, WVU Energy Institute’s Brian Anderson, Steve Hedrick, President and CEO of MATRIC and all wrapped together by moderator Kevin DiGregorio, executive director of the Chemical Alliance Zone.

WOTUS

Rounding out the afternoon activities were presentations from Jim Crews, VP Northeast Development, Marathon/MarkWest Energy, Jerry James, President of Artex Oil and VP of the Shale Crescent USA initiative in the Mid-Ohio Valley; a presentation from Michael Dragovich of BrickStreet Insurance (who also sponsored the afternoon coffee break) on the new and expanded joint Workers’ Compensation partnership between IOGAWV and WVONGA and concluding with a final legislative overview from Phil Reale, chief lobbyist for IOGAWV. The second day activities were brought to a close with the annual GOpac Reception open to those who purchased a ticket and then the Legislative Reception hosted by Antero Recourses. Those who stayed were not disappointed as they had the opportunity to speak with nearly

every House of Delegate and State Senator who attended one of the Legislative Session’s most popular and well attended receptions.

Please see pages 18 and 19 to review a full list of 2018 Winter Meeting Sponsors—and thank these companies the next time you see them.

In closing, allow me to once again thank all our sponsors for making the 2018 IOGAWV Winter Meeting a rousing success. Also, let me remind you the Legislative Session runs until midnight, Saturday, March 10. There is and will be much work to be done to advance IOGAWV’s legislative initiatives and protect our members from adverse or harmful legislation. You can rely on your lobbying team of myself, Phil Reale, Jim Fealy, Ben Beakes and your IOGAWV Executive Committee to be on the job and on the alert.

nationwide stay of the Clean Water Rule. The cases pending in the District Courts that have not been dismissed will likely be subject to motions to consolidate those cases.

And some parties may seek to reinstate or refile cases in the District Courts that were dismissed. For example, Murray Energy Corp. v. EPA filed in the United States District Court for the Northern District of West Virginia was dismissed for lack of jurisdiction, so that case may be refiled/reinstated based upon the SCOTUS decision rejecting jurisdiction in the Courts of Appeal.

While it is unlikely that the current EPA administration will immediately seek to enforce the Clean Water Rule, it is possible that stays of the Rule may be piecemeal based upon in which District Court jurisdiction

the “waters” exist. It is reasonably likely that the appeals concerning the Clean Water Rule will ultimately be consolidated and one decision concerning staying the Rule will be issued. However, it is also reasonably likely that environmental groups will file complaints attempting to require the EPA to immediately enforce the Clean Water Rule in any federal district court area in which the Rule is not stayed. We will watch the 6th Circuit for a decision on remand that may (or may not) provide some guidance on what to expect next.

If you have questions about the Clean Water Rule or the Supreme Court decision, please contact Mark Clark at MClark@Spilmanlaw.com or Dave Yaussy at Yaussy@Spilmanlaw.com.

Continued from page 7

nationwide stay noted above. The National Association of Manufacturers intentionally did not file an appeal in the Court of Appeals so that it could challenge the jurisdiction of the Court of Appeals. The cases filed in the United States District Courts obtained differing results.

Some cases were dismissed based upon lack of jurisdiction to enter preliminary injunction, but one case, North Dakota v. EPA in the United States District Court for the District of North Dakota, held that it had jurisdiction to review the Clean Water Rule and issued a preliminary injunction staying the Rule.

What happens next is not completely clear. The consolidated appeals pending before the 6th Circuit will be dismissed upon remand thereby effectively “voiding” the

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Greg Kozera Learned Leadership LLC

2017 Was a Good Year, Thanks to You. What About 2018?

I was standing in line at the post office in Elkview this week and overheard two locals talking about the economy. They both commented how good it was for them personally.

A few days later I overheard a similar conversation at our local pharmacy in Pinch. This is a big deal. Over the last eight years, these are two of the places where I would always hear how bad things were. Clearly, at least here, things have changed for the better.

I mentioned in an earlier article that I do the Chapter Newsletter for the Ohio Chapter of the National

Speakers Association. Our chapter members started getting busy last January and that continued throughout the year.

They did more programs and for higher fees than most have for years.

Our members work for a crosssection of the economy; healthcare, manufacturing, education, banking, oil and gas and numerous other industries. This marked a change in the economy. My own company did more programs and training than we have ever done. My wife, Lynnda, even did some of the training. She did her first paid training session

since she taught childbirth back in the 1980’s. One of the big differences is that companies are hiring instead of laying off. They are willing to spend money on training employees because they see a positive future and growth.

I’m not an economist. All I can tell you is what I see and you can draw your own conclusions. Thanks to the work you do, the USA now has cheap, abundant energy. We also heard that from Karen Harbert of the US Chamber of Commerce at the IOGA Winter Meeting. What AGoodYear Continued on page 12

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Mike McCown Communications & Education Committee Chair

Reminder: Scholarship Deadline Is March 23 Established in 1997, the Independent Oil and Gas Association of West Virginia, Inc. (IOGAWV) 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. Complete eligibility rules can be found on our web site at www. iogawv.com/about/scholarship.aspx.

Here is a quick glance at those rules:

1. Applicant must be a West Virginia high school senior.

2. Applicant must be a dependent of an employee/retiree of an IOGAWV Company in good standing OR be employed by an IOGAWV Company in good standing 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 all forms, essay, transcript, ACT scores and counselor signature, must be postmarked by March 23, 2018.

Contact Dee Beane at 304-3449867 with questions.

under construction in Charleston.

Other petrochemical companies are very quietly expanding. I talked to a plant manager recently who is in the process of hiring 20 people with salaries of $80,000+. Most of my tech students at Pierpont Community College, where I teach leadership, already have job offers and they don’t graduate until May. These are career-oriented jobs. This doesn’t include job increases in the oil and gas industry.

The best way to increase natural gas prices is to increase demand.

We can’t control weather, but we can encourage industry to come here and use our natural gas and NGLs. Shale Crescent USA is talking directly to foreign companies who are interested in coming here to take advantage of our economic and abundant natural gas and natural gas liquids. We learned that most foreign companies understand that the USA has cheap and abundant natural gas but most don’t realize that it is here in the Shale Crescent USA. Most assume that all of the gas is coming from Texas and Oklahoma. Sadly, this also includes American companies. Change is beginning to occur as we educate them about our energy

supply in the Shale Crescent USA region through our marketing.

Jerry James, in his presentation at the IOGAWV Winter Meeting, told us that the combination we have of abundant affordable energy, abundant fresh water, a location close to over half of the USA markets and a skilled work force is rare. Now is our time. Phil Reale told us at the same meeting that the West Virginia oil and gas industry is the best hope West Virginia has for the future. I totally agree with Phil. In the economic development work that I do, energy is a major driver in decisions on where companies locate. The reason Shale Crescent USA was invited to Japan was because Japanese companies want to learn more about American energy.

Using our natural gas to bring industry here is a win for the oil and gas industry, a win for the State of West Virginia and a win for our people. It is time to begin to grow our economy and population again.

This is the time for us all as West Virginians to put any differences we have aside and work toward that common goal. We can make 2018 an incredible year.

Thoughts to ponder.

A Good Year Continued from page 11 most people don’t know is that almost 100% of the growth of the US natural gas supply is here in the Shale Crescent USA. If eastern Ohio, southwestern Pennsylvania and northern West Virginia were a country, we would be the #3 natural gas producer in the world. Only the rest of the USA and Russia have more natural gas.

Our region now has the cheapest, most abundant natural gas and natural gas liquids in the industrialized world. That probably isn’t what you want to hear. However, this cheap, abundant natural gas may be the solution to low natural gas prices because they are creating the reindustrialization of the “rust belt.”

This is different than previous industrializations because this a high-tech re-industrialization requiring skilled workers. Re-industrialization will ultimately increase demand and ultimately natural gas prices if supply doesn’t also increase. Supply is determined by the industry. No one else.

This high-tech re-industrialization has already begun. Companies like Hino and Solvay have already announced expansions in the Ohio Valley. A new methanol plant is

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Hugh Byers Direct Energy

Nymex Natural Gas Futures Contract 12-Month Forward Strip Average Prices Through 1/29/2018

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One of the Best (in pictures) Continued from page 1

Top left: IOGAWV President Marc Monteleone welcomes 2018 Winter Meeting attendees; (above, from left) morning speakers Don Nestor, Arnett Carbis Toothman, Mark Pierce, Nytis Exploration/Carbon Natural Gas Co., IOGAWV Vice President and Program Chair Brett Loflin, Gov. Justice’s Chief of Staff Mike Hall, Marc Monteleone, Joel Symonds, Arsenal Resources; (below) IOGAWV Chief Lobbyist Phil Reale; and (bottom left) Brett Loflin and Karen Harbert, U.S. Chamber of Commerce.

Top right: afternoon speakers Jerry James, Shale Crescent and Artex Oil, Jim Crews, Marathon/MarkWest, Brett Loflin, Mike Dragovich, BrickStreet Insurance; (above, from left) morning speakers Joe Bastardi, WeatherBELL Analytics, Brett Loflin and Douglas McElwee, Titlemaps.com; (below) Appalachian Hub panelists Steven Hedrick, MATRIC, Dr. Brian Anderson, WVU, Congressman David McKinley and Kevin DiGregorio, Chemical Alliance Zone; and (bottom left) members, legislators and guests visit during the legislative reception.

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Industry Events

Please Add These Dates To Your Calendar February 7-9, 2018 NAPE Summit Brown Convention Center Houston, TX Info: napeexpocom/ February 21, 2018 Energy Rally State Capitol Charleston, WV Info: www.iogawv.com March 7-9, 2018 OOGA Winter Meeting Easton Hilton Columbus, OH Info: www.ooga.org March 21, 2018 PIOGA Spring Meeting Rivers Casino Pittsburgh, PA Info: www.pioga.org

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

April 16-18, 2018 Manufacturing to Marcellus Conference Marriott Waterfront Place Morgantown, WV Info: https://mmdc.wvma.com May 6-8, 2018 IOGCC Annual Business Meeting Sheraton Downtown Oklahoma City, OK Info: www.iogcc.publishpath.com/ events June 4, 2018 Ted Cranmer Memorial Golf Outing & Steak Fry Wanango Golf Club Reno, PA Info: www.pioga.org June 10-12, 2018 Tom Dunn Energy Academy WV Wesylan Buckhannon, WV June 19-20, 2018 IOGAWV STEM Teachers Conference Embassy Suites Charleston, WV Info: www.iogawv.com

June 25-27, 2018 IPAA Mid-year Meeting Fairmont Austin Hotel Austin, TX Info: www.ipaa.org 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 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

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2018 Gunslinger Award

Haney Honored With 2018 Gunslinger Award Editor’s Note: These are excerpts from Jim McKinney’s presentation remarks.

The Gunslinger Award was established by the Board of Directors several decades ago to recognize those individuals whose contributions to the association and the industry rise to exemplary status and beyond. It is the highest honor we give; when your peers, your best friends and your toughest critics think you deserve outstanding recognition, then you can have confidence the award is well-deserved.

This year’s recipient of the 2018 Gunslinger Award is an outstanding servant and leader. He has served two terms on our Board of Directors and one term as our president.

He led efforts to coordinate our ac-

tivities with the Manufacturers Association. Our recipient is both a small producer and an oil field equipment manufacturer. He sees multiple sides of any issue; this unique perspective also allowed him to lead exceptionally well when brokering producer issues between large and small member companies. He is a second generation oil man who followed his distinguished father’s footsteps in service to this association.

During his service to the association, he addressed the Above Ground Storage Tank issues following the water crisis, the Fair Pooling Act and the transfer of well work crisis permit.

Our recipient is a man of the highest character, a leader, honest, a

David Haney, left, receives the 2018 Gunslinger Award from Jim McKinney. peacemaker, a family man who prioritizes his wife, children, sisters and family as his highest joy, a facilitator, and a man who keeps his word. I am proud to have served with him and I’m proud to count him as a dear friend. Please join me in congratulating our 2018 Gunslinger recipient, David Haney.

Producers’ Issues Breakfast

Producers’ Issues Breakfast Great Success On Tuesday, January 22, IOGAWV hosted its latest in a series of Producers’ Issues meetings as part of the 2018 Winter Meeting.

These meetings, open to producers only, have been very successful and this meeting attracted 41 attendees and covered a wide array of issues.

Producers’ Issues Co-chair Sam McKown welcomed the attendees, then introduced Phil Reale, IOGAWV Chief Lobbyist, and President Marc Monteleone who provided a comprehensive review and overview of IOGAWV’s 2018 legislative initiatives that included the passage of cotenancy as contained in HB-4268; transparency or checkstub reporting legislation as contained in HB-4270; discussed two pieces of IOGAWV draft legislation, one that seeks revisions to property tax calculations as related to use of actual well operating costs and one

that seeks to increase the oil and natural gas stripper well tax thresholds designed to provide greater relief on marginal wells; and of course, concluding with assuring to those attending that IOGAWV will keep a watchful eye on all legislation and how it might positively or negatively impact producers and all members.

Marc Monteleone then provided the attendees a thorough overview of the new federal tax changes and how producers, businesses and individuals may be potentially affected.

Commerce Committee Chair Jim Pritt provided a summary of the

discussions on the pending gathering agreement renewal with Dominion Energy Gathering and Production (DEGP). Environmental Chair Doug Malcolm updated the attendees on the ongoing deliberations on the USEPA Methane Rule and the status of the Aboveground Storage Tank Act as related to tank inspections and inspector consistency.

Co-chair Sam McKown concluded the meeting by expressing his thanks to those attending and announced the next meeting will take place after the 2018 Legislative Session.

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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.

Reclamation Awards

2017 Reclamation Award Recipients Honored The annual Oil and Gas Reclamation Awards, sponsored by the West Virginia Department of Environmental Protection’s Office of Oil and Gas were presented during IOGAWV’s Winter Meeting.

The presentation, sponsored by Ergon Oil Purchasing, featured James Martin, Chief, Office of Oil and Gas, and IOGAWV President Marc Monteleone.

“We were honored to present these awards that recognize environmental excellence,” said IOGAWV President Marc Monteleone. “The employees, management, partners and all those affiliated with the reclamation efforts have done a wonderful job and are committed to their work in the industry as well as

protecting the environment.”

2017 Reclamation Award recipients are shown here: (front row, from left) James Pancake, Tug Hill Operating, LLC and Sam Minardi, XTO Energy, Inc.; (back row, from left) Phil Keaton, EQT Production Company; Dee Southall, SWN Production, LLC; and Nick Staffieri, Chevron Appalachia, LLC.

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Winter Meeting Sponsors

Thanks To Our Winter Meeting Sponsors Premier Sponsor

Diamond Sponsors

Platinum Sponsors

Gold Sponsors

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Winter Meeting Sponsors

Thanks To Our Winter Meeting Sponsors Silver Sponsors

Bronze Sponsors

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

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