2018iogawvjanuarynews

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Independent Since 1959

NEWS

January 2018

IOGAWV Outlines 2018 Legislative Priorities During the 2018 session of the West Virginia Legislature, the Independent Oil and Gas Association (IOGAWV) will have two main producer-friendly priotities: co-tenancy and tax relief.

In West Virginia, a single mineral tract could have hundreds of separate owners, or co-tenants. Current state statutes prevent development of a mineral tract unless ALL owners (100%) of the property agree to the proposed development; any one owner, no matter how small an interest it has, can prevent a well from

being drilled.

IOGAWV, the WV Oil and Natural Gas Association and others are proposing co-tenancy statutes that provide rights for, and protect the interests of, the non-consenting or non-locatable minority owners, while permitting the majority owners to develop the oil and natural gas. Passage of a co-tenancy statute will result in more wells and longer horizontal laterals being drilled, less surface disturbance as more and longer wells can be drilled from the same pad, increased revenue for the

state from severance and property taxes, more royalty paid and the creation of additional jobs.

Tax relief has two specific areas Brett Loflin of interest to Vice President IOGAWV mem& Program Chair bers.

The first involves revisions to property tax calculations. We would like to get a bill introduced that 2018 Priorities Continued on page 6

Safety First: A New IOGAWV Committee

As most of you know the Independent Oil and Gas Association of West Virginia, Inc. (IOGAWV) performs much of its important work through its committees such as Commerce, Government Affairs, Communications and Education, Finance and Taxation, Insurance, Producer Issues and Program. Among the more active is the Environmental and Safety Committee which has been engaged in representing your interests at the state level in the context of horizontal well development regulations and aboveground storage tank regulations, and at the federal level in the context of methane release regulations and air permitting regarding new and existing sources.

In an important development designed to bring a renewed energy and focus to improving safety measures in the oil and natural gas industry, the IOGAWV Board of

Directors reorganized the committee structure to create a separate Safety Committee chaired by Jim Rode, CEO of Core Appalachia.

The Safety Committee has been getting organized under the direction of Jessica Greathouse, Core Appalachia Operating, LLC, Director -- HSE & Administrative Services. The initial organizing efforts have been to identify and solicit safety professionals in the IOGA membership to participate in the mission of the Safety Committee.

So, if you are a safety professional or are interested in safety issues, the Committee invites you to become active in planning of safety training and programs.

The Safety Committee meets monthly and is currently working with Brickstreet Insurance to understand the role that Brickstreet can play in designing and deliver-

ing safety training and programs for the benefit of IOGA members.

The Committee very much looks forward to the partnership Mark D. Clark with Brickstreet Spilman Thomas & with the goal of Battle, PLLC improving safety outcomes for IOGA members.

The Committee plans to offer safety training on a quarterly basis beginning in March 2018. The topics to be presented are still being developed and you can help. A survey is being drafted for distribution to IOGA members soliciting information on what safety training would be most beneficial to member companies. Your responses to the survey will be greatly appreciated Safety First Continued on page 13

INSIDE

Marc Monteleone / 2 Douglas McElwee / 3 Charlie Burd / 4 Sarah Smith / 5 Mike McCown / 7 Greg Kozera / 9 Ergon / 11 IPAA News / 12 Mark Taylor / 13 Industry Events / 14 Hugh Byers / 15

2

Marc Monteleone IOGAWV President

Hope for the 2018 Legislative Session The 2018 Legislative session is about to begin. Based upon the current state of politics in our country and state, I must admit that I am less optimistic than I used to be heading into a legislative session.

It seems to me that our political parties are more divided now than they have ever been during my lifetime. It appears what is best for our state and its citizens often gets lost in political rhetoric and party lines politics. On the national level, and to some extent at the state level, bills are being passed on straight party votes. That means that the party that controls the majority of the seats makes the laws. Therefore, the only thing that matters to both parties is the next election and how many seats they can win.

What that says to me is that our political system is broken and not operating in the manner that our forefathers created. Our political system was designed to foster communication and compromise from both parties. The only way our government can operate is by both parties coming together to work on the issues at hand and passing laws that benefit all of us. In our daily lives we are confronted with issues that require us to gather information, learn new ideas and talk with other people before we make an informed decision. Quite often our final decision is much different than our initial thought based upon what we learned during this process. Our legislators need to use this same process during the 2018 session.

West Virginia is at a critical time in its history. We have many issues facing our state such as a major

drug problem, a stagnant economy, the outward migration of our best and brightest young people and an aging and decreasing population. However, we also have more opportunity at our doorstep than ever before. We have all heard about the potential of the oil and gas industry in our state. But that is only the beginning. Last year our legislature passed the Governor’s road bond legislation which will create thousands of jobs for our citizens and improve our roads and infrastructure. In November, CEIC announced plans to spend up to $87 billion on energy related projects in West Virginia. There are many other great things trying to happen here, but these three things alone can transform West Virginia into a safe, healthy and prosperous place to work and live.

Decisions made by our legislators during the upcoming session will help shape the future of our state and hopefully put us on the path of prosperity and opportunity for generations to come. It is time to break down the political barriers and focus on what is best for all West Virginians. I urge each of our legislators to put aside party differences and focus on what truly matters‌.the citizens of our great state. Please take the time to listen to all sides of every issue, challenge your counterparts to open debate and keep an open mind during the process. Each of you were elected by us to represent us in the political process and we elected you because we have faith in you.

I am sure that we can all work together to make West Virginia the

great state we all know it can be.

We are proud of our heritage, but we owe it to our future generations to give them a state that is stronger and better than the one we inherited from our parents and grandparents. Let’s all work together to pass the laws needed to responsibly develop our natural resources, protect our citizens, help those in need and provide a strong economy and good paying jobs for many years to come.

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

3

Douglas C. McElwee TitleMaps.com

You Can’t Use an Old Map to Explore a New World; New Partnership for IOGA Members The oil and gas world is vastly different today than it was 15 years ago. Advanced technology has led us into a new, exciting world of oil and gas exploration, extraction and production. Although technology used to access information that supports the industry’s activities has advanced, until recently West Virginia’s information was fragmented and cumbersome to access from county to county. To borrow from a quote widely attributed to Albert Einstein, “We can’t use an old map to explore a new world.” We need a new map that represents the new world and one that keeps pace with the industry’s ongoing advances.

That new map in West Virginia is TitleMaps.com.

If you’ve ever done any sort of West Virginia land research, you know the frustration of having to hop from one source to another while trying to stay focused on your area of interest and make sense of a variety of mismatched data sets. As a West Virginia real estate lawyer, I felt that same frustration and became determined to find a more efficient research method to cut through the clutter. To make a long story short, I found that it was possible, but required creating a system to combine a diverse collection of data sets and provide

search and interactive mapping features. A further challenge was to get the County Assessors on board with a new concept of how the tax map data is shared, which ultimately resulted in legislation on how data is distributed. The end product of four years of work is TitleMaps. com, your one-stop-shop for West Virginia real estate information, including up-to-date tax maps, land book information, and a host of other title related data, all in one site.

Please join me at the Winter Meeting for a demonstration of how TitleMaps.com can save you time and money. Whether you are prospecting, developing or aiding in the production of oil and natural gas, or you are a GIS professional, a surveyor or a lawyer, you should find TitleMaps very useful. We are proud to have partnered with and received the endorsement of IOGAWV as the go-to tool for state oil and gas real estate research.

With the help of IOGAWV’s members, the opportunities for the site are limitless.

I look forward to seeing you in January. Happy New Year!

4

Charlie Burd Executive Director, IOGAWV

From the Burd’s Nest: Standing Straight Again On November 6, after suffering with sciatica-induced hip and leg pain and being unable to stand up straight for over two years, I had corrective back surgery. After seeing pictures of myself stooped over from a speaking engagement in early October in Morgantown, I knew something had to be done.

The straw that broke the proverbial camel’s back was when I could not walk more that a few yards without limping.

The thought of back surgery can be very scary. It seems like you talk to more people with negative stories than positive and that requiring two back surgeries to fix the problem is more common than getting fixed the first time through!

The decision to move forward with surgery in Columbus, Ohio, was made quickly after meeting with my surgeon who spent nearly an hour with me and my wife reviewing my MRI, explaining my condition, then detailing my symptoms, the surgical procedure and the positive anticipated outcome I had to look forward to with proper healing and recuperation. My condition would be fixed with the fusion of L-3, -4, and -5 vertebrae with a rod and three screws. This is a highly successful and reliable procedure and I would awake without the hip and leg pain I had been enduring.

My team of doctors and the staff at the Mount Carmel New Albany Surgical Center were all top-notch.

When I awoke from surgery, I immediately knew my doctor had been correct in his prognosis—the pain was gone. I discovered later the procedure had gone longer than anticipated because my doctor

found additional damage in the S-1 vertebra that had not shown on the MRI. Surgically, my operation was a tremendous success as I traded a crippling sciatic nerve issue for two titanium rods and eight screws. TSA here I come!!! LOL Recovery from major back surgery is not an overnight or even a few weeks process. Indeed, this surgery calls for up to three months in a back brace, the first four weeks following surgery of doing almost nothing but sitting or lying down while the bone seeks to heal; then another four to six weeks integrating more activities designed to rebuild lower back muscles and gain leg strength while the vertebrae grow around the newly placed rods and screws.

Now anyone out there who knows me, knows I am not a sit around type of guy. But this time it would have to be different. This time I would force myself to do exactly as instructed—sit and heal. Thankfully, after the first few days of being home and realizing that daytime TV just isn’t my thing (true story: the first thing I saw, the first time I randomly turned on the TV was a midget pole dancer on the Jerry Springer show—honest!), from this experience, I convinced my wife to set up my computer at the dining room table from where I could and did work from home a few hours most every day.

While I have been temporarily out of pocket, IOGAWV leadership and lobbying team (myself, Phil Reale, Jim Fealy, and Ben Beaks) have been moving straight ahead in preparation for the 2018 Legislative Session. When the gavel hits at noon

January 10, 2018, IOGAWV will be off and running to accomplish its legislative goals—the first of which is leading the way on getting cotenancy legislation passed. This is IOGAWV’s number one legislative priority. In addition, you will find us seeking producer friendly changes in, among other things, marginal well exemptions and property tax legislation clarifying the use of actual well operating expenses and to provide for a revised appeal process. There will be more to contend with, I assure you!

Before I close, I want to thank some folks. First, Lori Miller Smith, the IOGAWV office manager who has acted as an assistant executive director in my absence. She not only kept me informed and in sync with the day-to-day office stuff that gets taken for granted, but she also dealt with all administration activities associated with implementation the 2018 IOGAWV insurance plan renewal and the second IOGA Classic at Glenville State College.

Second, my staff for their efforts with membership issues and meeting activities. Next to the lobbying team for keeping abreast of the interim legislative meetings and activities asBurd’s Nest Continued on page 15

5

Sarah Smith Membership Vice Chair

IOGAWV Board Approved Three New Members in December Please welcome these new members approved in December: Clean Water, LLC ALL Jeff Gantnier PO Box 671 300 Steel Ave. St Albans, WV 25177 Phone: (301) 456-9675 jeffgantnier@cleanwaterllc.net

Global Drone Surveying ALL & Inspections Joe Loudin PO Box 2404 Buckhannon, WV 26201 52 Lake View Heights Horner, WV 26372 Phone: (304) 613-8501 joeloudin5@yahoo.com

Weyland Group Corporation ALL John Roberts 167 Seneca Drive Suite F Ripley, WV 25271 Phone: (304) 372-7070 Cell: (304) 482-4946 www.waylandgc.com john@weylandgc.com

It’s not too late to register for the Winter Meeting!

Please register by January 19.

To pay by credit card, visit www.iogawv.com or call 304-344-9867.

Download forms from the web site to pay by check.

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6

2018 Priorities Continued from page 1 allows for the deduction of actual expenses with respect to the property tax valuation of oil and natural gas wells. For unconventional horizontal wells, current tax law allows for an annual expense deduction of $175,000.00. There are some wells, especially those wells that produce wet gas, where a $175,000.00 expense may occur in one month.

There is also an annual expense rate for vertical conventional wells ($5000.00) and vertical unconventional wells ($30,000.00). All we are asking is that we be allowed to use either the published expense rate or actual expenses.

The other tax relief priority involves stripper well tax relief. The intent of the proposed changes is to exempt smaller-producing wells from this tax, while also saving the State money by not having to process tax filings for these same wells.

The proposed language is below; the underlined language reflects the proposed changes. “(a) Imposition of tax. — For the privilege of engaging or continuing within this state in the business of severing natural gas or oil for sale, profit or commercial use, there is hereby levied and shall be collected from every person exercising such privilege an annual privilege tax: Provided, That effective for all taxable periods beginning on or after January 1, 2000, there is an exemption from the imposition of the tax provided in this article on the following: (1) Free natural gas provided to any surface owner; (2) natural gas produced from any well which produced an average of less than five thousand cubic feet of natural gas per day during the calendar year immediately preceding a given taxable period, and for all taxable periods beginning on or after January 1, 2018, natural gas produced from any well which produced an average of less than

sixty thousand cubic feet of natural gas per day during the calendar year immediately preceding a given taxable period;(3) oil produced from any oil well which produced an average of less than one-half barrels of oil per day during the calendar year immediately preceding a given taxable period, and, for all taxable periods beginning on or after January 1, 2018, oil produced from any well which produced an average of less than ten barrels of oil per day during the calendar year immediately preceding a given taxable period and (4) for a maximum period of ten years, all natural gas or oil produced from any well which has not produced marketable quantities of

natural gas or oil for five consecutive years immediately preceding the year in which a well is placed back into production and thereafter produces marketable quantities of natural gas or oil.”

As always, your IOGAWV lobbying team and leadership also will be watching for any bills that are introduced that would have a negative effect on our industry, most notably any proposed increase in the natural gas severance tax rate, or bills that reduce or eliminate standard business deductions.

The sixty-day legislative session begins Wednesday, January 10, and ends at midnight Saturday, March 10.

We’ll keep you posted!

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7

Mike McCown Communications & Education Committee Chair

Glenville State Hosted Terrific Second Annual IOGA Classic The “IOGA Winter Classic Basketball Tournament” sponsored by the Independent Oil and Gas Association of West Virginia, Inc., took place December 11-16, 2017, at the WACO Center on campus of Glenville State College (GSC), Glenville, West Virginia.

IOGAWV wishes to thank GSC President Dr. Peter Barr and GSC Foundation Executive Director Dennis Pounds for their efforts in coordinating and conducting the tournament. Special thanks also go to Tournament Director Jim Hamrick for his efforts in working with the West Virginia Secondary Schools Activity Commission (WVSSAC) and securing twelve outstanding high

schools to compete. The boy’s and girl’s high school basketball tournament brought together AAA squads from South Charleston, Riverside, Buckhannon, Cabell Midland and Parkersburg High; AA teams from Nicholas County, Roane County, Braxton County, Robert C. Byrd and Bridgeport; and A teams from Fayetteville, Tucker County, Gilmer County and Doddridge County.

The student participants of the tournament were eligible to apply for a one-time $2,000 Glenville State College scholarship funded by IOGAWV. The six scholarships will be awarded to qualified seniors who will attend GSC and pursue a degree in relation to the support and devel-

Students from around the state took the opportunity to learn more about the natural gas and oil industry and the Tom Dunn Energy Academy during the IOGA Classic.

opment of the oil and gas industry.

Coaches from each participating team were provided scholarship rules and criteria in advance of the tournament. The announcement of the scholarship winners will be made in the spring and will be announced here in the IOGA News.

In addition to the scholarships, IOGAWV had an informational booth that included a sign-up sheet for students to obtain information on the upcoming 2018 Tom Dunn Energy and Leadership Academy.

Over 70 students requested information! Of these students, 12 were randomly selected to receive one of 12 $25 American Express gift cards.

The gift cards were given at halftime of each of the consolation and final games.

The WVSSAC-sanctioned event used a very simple format of opening round games whereby winners advanced to the championship round and losers to the consolation round. The Classic tipped off on Monday, December 11, with four games per night thru Friday then culminated with the six championship games on Saturday, December 16.

Winners of the tournament included: • AAA Boy’s South Charleston; • AAA Girl’s Buckhannon Upshur; IOGA Classic Continued on page 8

8

IOGA Classic Continued from page 7 • • • •

AA Boy’s Bridgeport; AA Girl’s Bridgeport; A Boy’s Doddridge; and A Girl’s Tucker County.

Over 300 student athletes participated in the tournament throughout the week.

“The IOGA Basketball Tournament at the Waco Center in Glenville was a great experience! It was held in one of the best facilities around and the tournament directors and sponsors are top-notch. I look for this tournament to only grow bigger in the future and Doddridge County is proud to be the 2017 Class A Champions,” said Coach Paul Burnside.

“I wanted to say thank you from the Tucker County girls’ basketball team. We appreciated the great hospitality from the staff and the honor that came with playing in the great facilities at Glenville State College,” said Coach Dave Helmick.

“Our young men and ladies teams were treated very well in this professionally managed tournament.

The facility is amazing, a true gem for our state and your institution.

Bridgeport High School felt privileged to be a part of the tournament and to play at the Waco Center. I know I speak for my coaches and athletes with this genuine expression

of gratitude,” said Matthew DeMotto, Assistant Principal and Athletic Director at Bridgeport High School.

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.

One of the participants practices his jump shot during warm-ups at the Classic.

The girls from Fayetteville High School visited the IOGA booth and one requested more information on the Tom Dunn Energy Academy.

Even Glenville State College students came to learn about the industry and to watch the basketball games during the 2017 OGA Classic.

9

Greg Kozera Learned Leadership LLC

People Love Fracking; They Just Don’t Know It. Until We Tell Them.

In December, I did a two- day seminar on hydraulic fracturing or “fracking” as they like to call it, at the University of RichmondOSHER College of Adult Education. These folks paid money out of pocket to attend. They were an older group, probably all over 50 years old. It was a good venue with people who really wanted to learn. Clearly some attendees were definitely not pro-frack, but at least they were willing to listen. Everyone loves the products they use every day. They don’t know they come from fracking.

That was an eye opener. The other eye opener for the attendees was that all gas (unless from cows, landfills or baked beans) is “fracked” gas.

Jim Crews, with Markwest, gave

me a few slides on petrochemicals.

They show the entire process starting with oil and natural gas wells and ending with the household products we use every day. Based on the presentations and media I do, it took most of the general public almost a year to figure out that their low gasoline prices are the result of drilling and hydraulic fracturing. As an industry, we have made progress getting that message out. Of course, the antis either still don’t know, don’t care or are living in a fantasy world.

You can decide. One thing I know for certain is that the public does not understand that petrochemicals are the source of the products we use every day from medicines and medical equipment to our clothing, cell

phones, automobiles and thousands of products. They don’t understand that no wells and no fracking would mean no petrochemicals and no products.

I decided to open the Fracturing Seminar with this basic truth on petrochemicals. They understood.

Everything changed. We still had lots of well thought out questions to answer. Everyone did not agree with me on everything. We had respectful discussion and everyone learned.

What I learned from the students was that who I am is extremely important when it comes to whether my message will be believed. They needed to know that I had technical knowledge. They also needed to Tell the Story Continued on page 10

10

Tell the Story

Continued from page 9

know that they could trust me. We had fun.

The students got my full bio before they registered. They know that right now I am a small business owner, trainer, economic development consultant, engineer and technical expert who has retired from the oil and natural gas industry after over 40 years of experience.

Most important, they learned that very little of my income comes from the oil and natural gas industry. I asked the class directly, “If I was the Virginia Oil and Gas Association President and had presented this same material, would you have believed it?” Almost everyone shook their head saying, “NO”.

What does this mean to us? Think of the last sales person you encountered. Were they a trusted advisor or someone just trying to sell you something? When I am working with my broker, I want to know that he cares about me and my financial success. If I thought he was focused on just his own commissions I would find a new broker. When we are dealing with the public or with an audience we need to first earn their trust as someone they can believe. They need to know we care about them. We always need to tell the truth and give people the facts.

But remember that emotion trumps logic. So, we also need to find a way to make a heart to heart connection before we present our facts.

The challenge is that drilling, hydraulic fracturing, pipelines and other aspects of our industry are technical and are best explained by people in the industry that understand them. Even the EPA’s science advisory board didn’t know that drilling and hydraulic fracturing are separate processes. I was asked to explain that at a public hearing in Washington, D.C. in June of 2016.

If the EPA didn’t understand, we

can only imagine the misunderstandings the public has. The Virginia State Garden Club decided to do a “public service” for the people in eastern Virginia and do a “Fracking 101” seminar. Only problem was VOGA or anyone with knowledge wasn’t invited. The main presenter was from eastern Virginia and had never seen a well. VOGA was able to shame them into putting a CNX Completion Manager on the panel.

He did a great job. He is a father of five and is concerned about his children’s future. He wants them to have clean air, clean water and abundant, affordable energy. That is how he opened the presentation. They listened to him. The antis weren’t happy.

There is another way that we can get out message out. We can have people who are not us tell our story. What if the manufacturing and petrochemical industry told our story? They need us. What about our military or veterans? Our military is fueled and equipped by petroleum and natural gas. You can’t fuel a fighter jet with wind energy or a tank with solar power. Plastics and petrochemicals are used for small arms, weapons systems, uniforms and even bullet-proof vests. With a little knowledge, the military and veterans’ groups can be one of our greatest proponents. What about senior citizens, especially those on fixed incomes? We have lowered their price for natural gas and gasoline. Most seniors are on some type of medication provided by petrochemicals from fracturing. With a little education, they could also tell our story.

We need to build relationships with these groups. We need to help them to understand that their success is tied to our success. We should be speaking at their conferences.

They should be promoting us in the media. The public will listen because

they are not us. The antis will hate it.

At Shale Crescent USA, we are using our abundant natural gas and NGLs to bring industry and jobs back to our area. Companies like Hino and Solavy in the Parkersburg area are expanding. Other expansions have started in the Charleston area and Mid-Ohio Valley. I had lunch with a plant manager a few weeks ago.

They are hiring 20 people with a salary of $80,000+. Shale Crescent USA has been invited to Japan at the end of January to speak at the Japanese Petrochemical Manufacturers Association (JPCA) at their request.

You and your success are creating these jobs and this interest!

People love natural gas. They love all of the products they use every day that come from hydraulic fracturing. They love cheap gasoline and vehicles built with plastic from petrochemicals. They love high wage jobs. They need the medications petrochemicals provide to stay alive.

They just don’t know that you are the reason they have all that stuff.

We need to do more than educate them. We need their support if they want to keep all of this stuff.

As an industry and as individuals, we are very independent but we need the power of third parties to tell our story so that the public will believe and understand. We need support outside our industry in Washington and Charleston. We don’t have to fight our battles alone.

It is time for us to build a team of supporters that need us. This could be almost everyone that understands.

We can make 2018 an incredible year. Believe. We wish you a happy, healthy, safe and successful year.

Thoughts to ponder.

11

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.

12

IPAA News

Federal Frac Rule Rescinded In late December 2017, the Bureau of Land Management (BLM) is published in the Federal Register its decision to rescind the Obamaera 2015 federal hydraulic fracturing rule. IPAA and the Western Energy Alliance have been working to stop this regulation since its inception by the Obama Administration in 2010.

IPAA has gone through multiple rounds of public comments and numerous legal fights, saving our member companies and those operating on federal lands hundreds of millions of dollars in compliance costs, to get where we are now. This repeal will take immediate effect tomorrow and will put an end to an over fiveyear-long process to roll back this burdensome and costly regulation for independent producers.

This is a big win for IPAA, the Western Energy Alliance, as well as a huge victory for all oil and natural gas producers operating on federal lands. IPAA has long-argued that the states have long been and continue to be in the best position to regulate hydraulic fracturing and, fortunately, we have a new president and administration that agrees. I would like to thank each of you who have contributed thoughtful comments and economic data throughout this process.

Without your time, attention, input, and resources, IPAA would not have been successful in this years-long fight. We rely on you, our member companies, to provide us with necessary details and understand that this process took a lot of time over the past five years.

IOGAWV is extremely proud of the work the IPAA and the Western Energy Alliance have done together on this issue.

13

Mark Taylor WeatherBELL Analytics

WeatherBELL Winter Commentary

Image: Euro Temperature Anomaly Forecast – Last 10 Days of December 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.

The Polar Vortex is back. The coldest air on the globe has been parked over North America. We’ve experienced the coldest temperatures in December since 2000 in many places.

The pattern is very similar to what happened in the La Niña of 1995-96 (the winter of the infamous Blizzard of 1996).

For the back half of January, the cold air should back off. The question remains how much will it back off ? Extreme cold tends to either gradually wind down or snap to the other extreme.

Stay tuned to WeatherBELL energy services for the latest during the heart of the winter.

Safety First Cont. from page 1 and will form the basis for selecting training topics for the coming year.

The Committee anticipates training on traditional problems areas

such as lifting and handling heavy tools and equipment, ladder and climbing safety, slip and fall hazards, driver safety, snake bite and bee sting

avoidance, etc. The Committee also plans to present training on drilling and completion operations, such as hazards associated with combustible gases and liquids, and possibly radiation risk management.

As we begin this 2018, the Safety Committee urges you to re-emphasize your company's commitment to employee and public safety. I am reminded of the beginning of every Hill Street Blues episode when Sergeant Esterhaus cautioned his police squad "Let's be careful out there."

By putting safety first we can all make 2018 a Happy New Year.

If you have questions or would like to participate in the Safety Committee, please contact Jessica Greathouse at JGreathouse@CoreOperating.com or (304) 353-5240, or Mark Clark at MClark@Spilmanlaw.com or (304) 340-3876.

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Industry Events

Please Add These Dates To Your Calendar January 23-24, 2018 IOGAWV Winter Meeting Marriott Town Center Hotel Charleston, WV Info: www.iogawv.com February 7-9, 2018 NAPE Summit Brown Convention Center Houston, TX Info: napeexpocom/ 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 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 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

September 30 – October 2, 2018 IOGCC Annual Conference Coeur D’Alene Hotel Coeur D’Alene, ID Info: http://iogcc.publishpath. com/events

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

November 11-13, 2018 IPAA Annual Meeting Ritz-Carlton New Orleans, LA 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/ September 21-22, 2018 IOGAWV Sports Weekend Morgantown, WV

Producers are reminded there is a tollfree number where you can leave confidential messages on issues of importance:

1-877-982-4701.

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

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Hugh Byers Direct Energy

Nymex Natural Gas Futures Contract 12-Month Forward Strip Average Prices Through 1/3/2018

Burd’s Nest Cont. from page 4 sociated with preparing for the 2018 session and keeping me engaged in those activities while at the same time working closely with IOGAWV

leadership. And then to my leadership team for its understanding and consideration during these first weeks of recuperation.

Lastly, I want to give special thanks to a couple gentlemen. First to Mike McCown for being my Uber driver during my recovery. Through his kindness, I was able to participate in a couple very important meetings in Charleston (heck, he even provided coffee). Secondly, to Jim Fealy for acting as my personal alarm clock. Jim and I frequently talk in that 7:15 to 7:30 a.m. time range for our “on the way to work” telephone conversations. Over the past several weeks, Jimmy kept that tradition going on more than one occasion. Of course, when Jimmy called at that time of the morning, I was home in bed asleep and recuperating but hey, it’s Jimmy, so it was okay.

In closing, and with all joking aside, thanks to all, I can’t wait to get back in the office and it’s great to once again be standing tall!

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

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