April 2019 IOGA News

The Voice of the

Independent Since 1959

NEWS

April 2019

Five Nominated to IOGAWV Board Five members of the Independent Oil and Gas Association of West Virginia, Inc., have been nominated to fill four three-year terms on the Association’s board of directors.

Election ballots are due and must be postmarked by May 31, 2019.

The board nominees are: Maribeth Anderson, Antero Resources; David Haney, D. G. Haney, Inc.; Jon Hildreth, Megan Oil & Gas Co.; John Lawman, Diversified Gas & Oil Corp.; and Chris Weikle, Southwestern Energy.

The four successful candidates will replace outgoing IOGAWV board members: Mike McCown, LexCam Enterprises, LLC; Sam McKown, C. I. McKown & Son, Inc.; and Rick Toothman, Rick Toothman Consulting. Although his term is ending,

Brett Loflin, Northeast Natural Energy, LLC, will serve one year as immediate past president.

Maribeth Anderson, a native and lifelong West Virginian, is the Director of Government Relations for Antero Resources. She came to Antero at the end of 2017, after serving in similar roles for Southwestern Energy and Chesapeake Energy since 2007. Prior to entering the energy sector, she was a consultant for Charles Ryan Associates and the news director for WSAZ Television.

Maribeth is currently on the Executive Committee for the West Virginia Chamber of Commerce, and is the past board chair for the Huntington Regional Chamber of Commerce.

She has served in industry leadership roles across four states, having been elected as the Board President for the WV Oil and Natural Gas Association, recently appointed to the board of the Ohio Oil and Gas Association, and in former roles served on the boards of the Kentucky Oil and Gas Association and the Virginia Oil and Gas Association. She is also currently on the board of directors for the WV Manufacturers Association and the West Virginia United Methodist Foundation.

BoardNominees Continued on page 14

IOGAWV Safety Seminar Set for April 23 Make plans now to attend this important seminar on April 23 sponsored by IOGAWV and the WVU Extension Service at the Days Inn in Flatwoods.

This hands-on course provides knowledge of how to use, create, implement and control Job Safety Analysis (JSA’s) for the worksite.

Completing a JSA is critical for ensuring hazards are identified and corrected before the beginning of the task. During the course, participants will learn how to prioritize tasks based on risk, break down each job task, identify hazards, complete a JSA and also critique previously

completed JSA’s for quality.

What is a Job Safety Analysis?

A job safety analysis (JSA) is a procedure which helps integrate accepted safety and health principles and practices into a particular task or job operation. In a JSA, each basic step of the job is to identify potential hazards and to recommend the safest way to do the job.

Other terms used to describe this procedure are job hazard analysis (JHA) and job hazard breakdown.

What are the benefits of doing a Job Safety Analysis?

Initial benefits from developing a JSA will become clear in the prepa-

ration stage.

The analysis process may identify previously undetected hazards and increase the job knowledge of those particiTodd Tetrick pating. Safety Safety Committee and health Co-chair awareness and communication between workers and supervisors is improved, and acceptance of safe work procedures is promoted. A JSA, or better still, JSA Seminar Continued on page 18

INSIDE

Brett Loflin / 2 Member News / 3, 5 Charlie Burd / 4 Sam McKown / 6 Hugh Byers / 6 Greg Kozera / 7 Mark Clark / 9 Mary Taylor / 10 Ergon / 11 Association News / 11 IPAA News / 12 Industry Events / 13 Safety Seminar Registration Form / 19

2

Brett Loflin IOGAWV President

Legislative Session Outcomes The legislative session for 2019 has concluded and several bills that directly effect our industry were considered. Several bills that directly impacted our industry were passed by the Legislature, but not signed into law by Gov. Justice. In my opinion, overall, it was a disappointing session.

House Bill 2673 would have created an “abandoned well” plugging fund by diverting the severance tax collected from a new category of marginal wells to a special fund that can only be used to plug orphan wells. The WVDEP estimates that there are between 4500 and 5000 orphan wells in the state with little money in state coffers to pay the expense of plugging and abandoning those wells. Several meetings were held in the offseason between IOGAWV representatives and Office of Oil and Gas to come up with solutions that would help alleviate the orphan well problem. HB 2673 was a direct result of those meetings. Currently a marginal well is defined as a well that produces less than five mcf/day of natural gas or 0.5 bbls/day of oil. Those wells have always been exempted from paying the five percent severance tax levied in West Virginia.

That will NOT change. House Bill 2673 basically creates a new category of marginal well that is defined as a well that produces greater than 5 mcf/day to 60 mcf/day and/ or 0.5 bbls/day to 10 bbls/day.

The severance tax rate for those qualifying wells will be reduced to 2.5%, saving the owner 50% of the current tax due. The revenue collected would have gone into the

created fund and used by the state to plug orphan wells. As of the time of this writing the bill, the bill was vetoed by the Governor.

Small successes were achieved in terms of bills not getting passed that would have had a detrimental effect on our industry and thus the state in general, such as bills dealing with additional requirements for unconventional wells (noise, light, dust and emission monitoring and greater setback distance, etc.) were not debated in committee.

House Bill 2802, a bill that was designed to rewrite partition law died in committee and would have made it difficult to proceed with oil and gas development that the current process affords.

House Bill 2866 was problematic in that it dealt with the ability of a lessor to deem a lease expired or terminated after notice to the lessee. The lessee would then have to file a response in dispute, and if not, the lessor could file an affidavit of rebuttable presumption of termination or cancellation of the lease. HB 2866 created uncertainty and was unnecessary since current law provides the lessor with an avenue to dispute the validity of a lease. The bill was passed out of the House but did not get through the Senate.

Unfortunately, two bills that were supported by the oil and gas industry did not get through the session. SB 665 would have created a process to for expedited permitting for unconventional wells and HB 2834 would have updated the antiquated deep well spacing laws to better foster the development of

the state’s deep unconventional resource. The good news however is that IOGA and WVONGA will be working with the WVDEP and the Oil and Gas Conservation Commission to put practices in place that will accomplish the same goals.

Our lobbying team worked tirelessly to ensure that our interests were considered and should be commended for a job well done.

2018-2019 OFFICERS BOARD MEMBERS Brett Loflin President J. Kevin Ellis Vice President/Program Chair/Government Affairs Co-chair Ben Sullivan Secretary-Treasurer/Finance Chair Marc Moneleone Immediate Past President James W. Crews Commerce Co-chair Jon Farmer Producers Issues Chair Jeff Isner Commerce Co-chair/Communication and Education Vice Chair Mike McCown Communication and Education Chair Sam McKown Membership Chair/ Environmental Vice Chair Bob Radabaugh Environmental Chair Sarah Smith Government Affairs Co-chair Todd Tetrick Safety Vice Chair Rick Toothman Safety Chair

3

Member News

Bowles Rice Named “West Virginia Firm of the Year” for Third Consecutive Year Benchmark Litigation named Bowles Rice its “West Virginia Firm of the Year” for the third consecutive year during its 2019 U.S. awards ceremony at Essex House in New York City on February 28. This event was the first of two ceremonies; a West Coast version will take place on March 14 in San Francisco.

Representatives from firms in more than half of the states and the District of Columbia were onhand at the sold-out event, including Bowles Rice attorneys Stuart McMillan and Ronda Harvey, who accepted the award on the firm’s behalf. McMillan, who is chairman of Bowles Rice’s Litigation Department, referenced the honor as an acknowledgement of the firm’s wide-ranging capabilities and

experience.

“Bowles Rice litigators provide an efficient and aggressive results-driven approach for clients throughout West Virginia and the surrounding region,” McMillan said. “To be recognized nationally for three years in a row is testament to the value we deliver through effective litigation services.”

Benchmark publishes the definitive guide to America’s litigation firms and attorneys, the only publication to focus exclusively on the litigation and disputes market in North America. The publication consistently ranks Bowles Rice as a “highly recommended” law firm in West Virginia.

“We are honored to receive this award from Benchmark Litigation

for the third consecutive year,” said Tom Heywood, Bowles Rice’s Managing Partner. “The members of our litigation team do outstanding work for all our clients, and I am delighted to see our litigators nationally recognized as among the very best in West Virginia.”

4

Charlie Burd Executive Director, IOGAWV

From the Burd’s Nest: Did You Try Your Hardest?

My original April article was so different than this one. It was an article quoting Coach Paul “Bear” Bryant on his infamous “Offense sells tickets, defense wins championships” philosophy. It was an article that was not meant to be.

Instead, on March 28 it was rewriting time. I had to convert a very positive article into one of unforeseen disappointment. It dawned on me that I needed to accept life by the words I had taught my son Nathan when he would be disappointed in an individual or team loss in sports: Did you try your hardest?

And, if you did, then there was no more you could have done. Now I know that really didn’t ease Nathan’s pain of losing, but it did speak to his character when he was on that losing end. I never, ever, ever once, saw him quit on himself, his team or coaching staff, nor did I ever see him not shake his opponent’s hand in victory or loss.

Last second losses in what appeared to be victories are commonplace in sports and life. (Sorry Dave Haney) I vividly recall the Christian Laettner’s buzzer-beater to lift Duke over the Wildcats in the 1992 East Regional final—Kentucky was devastated. Or, what about Michigan’s Chris Webber’s infamous time out call in the 1993 NCAA championship—a time out Michigan did not have that ultimately lead to a stunning loss. Well, this is one of those moments. It took Webber 20 years to muster the courage to watch the final minute of that game.

But let me not get too far ahead of myself. First, a quick summary of numbers and then a discussion on legislation. By the numbers, the

2019 regular session of the West Virginia Legislature concluded at midnight on Saturday, March 9. During the 60-day regular session, there were a total of 1,823 bills introduced (House of Delegates 1,142 and 681 in the Senate). A total of 294 bills or 16.1% (139 House (12.2%) and 155 Senate 22.8%) completed legislative action. The Governor had until midnight March 27, 2019 to approve the bills that were presented to him.

Before the final gavel fell concluding the 2019 session of the West Virginia Legislature, the Governor already had approved 38 bills.

Your IOGAWV lobbying teams followed about 115 pieces of legislation and another dozen or so resolutions. There were several bills that had direct impact on both small and large producers. But a handful of bills stand out above all others, bills that would have provided lots of benefits to lots of folks including small, family-owner conventional producers, suppliers, contractors, local shop owners, surface owners and the State. In what can only be viewed as very self-serving, all the bills of most importance to this wonderful oil and natural gas industry were VETOED by Governor Jim Justice in the waning hours of that window afforded him to decide the fate of all bills passed by both Chambers.

Sadly, here are the bills that were VETOED and that will have to wait another legislative session to resurrect: • Enrolled Committee Substitute for House Bill 2673. This IOGAWV supported legislation passed on the last night of session. The bill called for a reduction

in the severance tax for stripper/ low volume wells by fifty percent and creates the Oil and Gas Abandoned Well Plugging Fund. As passed, under HB-2673, beginning on or after January 1, 2019, natural gas produced from any well which produced an average of less than 60 MCF/day (up from the current 5 Mcf/day) and oil produced from any well which produced an average of less than 10 Bbl./day (up from the current .5 Bbl/day), would pay state severance tax at the reduced rated of 2.5%.

Virtually everything else – filing returns with the State Tax Department, methodology for calculating taxes, the $500 credit, no tax on wells up to 5 mcf or .5 bbl per day, all remains as it currently exists. For all wells producing from 5 to 60 mcf a day or .5 Bbl. to 10 Bbl. per day, there will only be a 2.5% tax and that tax will be dedicated to plugging abandoned wells. This bill should save producers with marginal wells about $4 million in taxes annually while moving what tax dollars we do pay on marginal wells into the above referenced fund to plug abandoned and orphaned wells. The bill also contains an incentive for the WVDEP to use the money to plug wells. After the plugging fund is up and running, the rate can become zero for the next year if the balance in the plugging fund is more than $4 million dollars on June 1 of any year. The bill, supported by IOGAWV, was VETOED on March 27, 2019, by Governor Burd’s Nest Continued on page 15

5

Member News

McPhail Named Alumni of the Year by WVU Tech College of B, H & S for 2019

Rebecca McPhail is president of the West Virginia Manufacturers Association (WVMA), the largest business and trade organization representing the manufacturing industry in the Mountain State. As president, McPhail is the voice for manufacturers with state and federal regulators and elected leaders, advocating for policies and partnerships that encourage economic investment and manufacturing growth in West Virginia.

Before joining the WVMA in 2013, McPhail was president and CEO of Vision Shared Inc., a statewide community and economic development organization. Prior to her work at Vision Shared, McPhail was assistant vice president of development at Marshall University.

A West Virginia native, McPhail spent time working as a grant development and research manager and interim director of development for the YMCA of Greater Cleveland in Cleveland, Ohio, before returning home in 2004 to join the Marshall University as Associate Vice Presi-

dent of Development.

At an early age, McPhail’s family taught her by example the importance of industry and public service in West Virginia. Her father, grandfather and great-grandfather all worked as coal miners, and she watched her grandmother represent her eastern Kanawha County community at the state capitol on water and sanitation issues as a private citizen. Industry and public service are the cornerstones on which McPhail’s life began, and these are two elements that contribute to her drive to improve the health and well-being of West Virginians through economic and job growth.

McPhail is a proud graduate of West Virginia Institute of Technology with a bachelor’s degree in history and government. McPhail is a graduate of Leadership West Virginia and was named a 2017 Young Gun by The West Virginia Executive magazine.

What keeps McPhail motivated in her job day after day is her children and her desire to make sure they

have the option to make a living and raise their families in West Virginia.

This is also what moves her to play an active role in her community.

She is chairman of the Charleston March for Babies through the March of Dimes; a member of the West Virginia University Stadler College of Engineering and Mineral Sciences Advisory Board; and serves on the boards of the YMCA of the Kanawha Valley and University of Charleston.

She resides in Charleston, West Virginia with her husband David Yaussy and two sons, Garrett and Owen.

If you would like your company to be featured in IOGA News, please contact IOGAWV Executive Director Charlie Burd at cburd@iogawv.com.

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Sam McKown Membership Committee Chair

IOGAWV Board Approved Three New Members in March Please welcome these new members approved in March: Arrakis Energy, LLC PRO Chris Burge 52 Sugar Creek Center Blvd.

Suite 275 Sugar Land, TX 77478 Phone: (281) 491-8982 Cell: (832) 477-0263 chris.burge@arrakisenergy.com

BP Energy POP Alexis Smith 201 Helios Way Houston, TX 77079 Phone: (713) 323-3042 Cell: (832) 845-7211 alexis.smith@bp.com www.bp.com

West Virginia Methanol, Inc. ALL Lars Scott 1 Landy Lane Cincinnati, OH 45215 Phone: (513) 733-8519 Cell: (315) 853-5111 Fax: (513) 733-5842 lscott@ westvirginiamethanol.com

Hugh Byers Direct Energy

Nymex Natural Gas Futures Contract 12-Month Forward Strip Average Prices Through 3/25/2019

7

Greg Kozera Learned Leadership LLC

We Can’t Be Silent This Time Recently our neighbor’s grandson, Bradley, was outside exploring his yard with his cousin. Bradley is about 8 years old. They were looking at animal tracks in the snow. When Bradley saw me he shouted, “Mr. Kozera, did you see a dog in our yard? We are tracking him.” I saw those tracks when I was out for a walk and said, “Bradley, I think those are deer tracks.” Bradley looked back down at the tracks, and said,. “Oh yeah. Thanks Mr. Kozera.” They were off on the trail of the deer. I thought, “How simple life was at eight years old.”

Bradley’s life is simple today but what our industry does or doesn’t do directly impacts his future. The USA is now the leading oil and natural gas producer in the world. If Ohio, West Virginia and Pennsylvania (the Shale Crescent USA) were a country, we would be the #3 natural gas producer in the world. Only Russia #2 and the rest of the USA #1 without our region produce more natural gas.

This happened because of advanced

American horizontal drilling technology and the 70+-year-old hydraulic fracturing process. Drilling horizontal laterals of 2-3 miles in our Region have become commonplace.

Americans are seeing low gasoline prices and lower overall energy costs thanks to our industry. Bradley will never experience an energy crisis, Arab Oil embargo, $4 gasoline or the dirty environment I grew up in.

Unless the anti-fossil fuel people have their way. Bradley won’t need to leave the region to find a good job, unless he wants to. People have hope again. The air, water and soil that Bradley is experiencing, is the cleanest of my entire life and we live among gas wells.

In spite of all this success, the anti-fossil crowd isn’t happy. “The Green New Deal” resolution has been introduced into the US House and Senate calling for 100% zerocarbon power in just 10 years. People are always entitled to their opinion.

They are NOT entitled to their own science. When the “antis” brought

up the evils of “fracking” over 10 years ago, I was one of many engineers who laughed. We thought that no one would be stupid enough to believe the anti-frac people. We were wrong. Today we are still dealing with the lies and half-truths they propagated.

What we should have done is immediately set the record straight before their lies got into the minds of so many innocent Americans. We are faced with another opportunity to let the American people know the truth.

I’m not laughing this time. This is serious. Most people have no idea what this could mean if individual states or the Federal Government try to enact parts of this “Deal.” Here is why: • Some people would say that climate change is the biggest threat to young Bradley’s future. Since 2005 the world’s CO2 is up 19%.

In that same period of time US CO2 emissions are down 14% based on US EAI numbers. If CO2 is really a problem, it requires a global solution.

Destroying high wage jobs and increasing energy costs to the US people will NEVER solve the supposed climate change problem unless the rest of the world does something.

• As an engineer the question is, “Why isn’t the rest of the world asking the USA what we are doing and how can they do the same thing?” Is it possible that the US solution doesn’t fit the antis’ agenda?

• Why isn’t the obvious solution being implemented? Sending Can’t Be Silent Continued on page 10

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Industry News

The WVMA will host its 8th Annual Marcellus and Manufacturing Development Conference on April 8-9, 2019 at the Marriott Waterfront Place in Morgantown, WV. It isn’t too early to make your plans and to take advantage of special early registration rates.

Click here to learn more, view the conference agenda, and register!

Now in its eighth year, MMDC plays host to companies interested in locating new facilities or expanding existing operations in the state. This conference provides companies and industry leaders the opportunity to gain an expanded understanding of the potential for ethane and ethylene-related product development in West Virginia.

The conference will feature the Natural Gas Expo, a showcase cosponsored by the West Virginia Independent Oil & Gas Association and the West Virginia Oil & Natural Gas Association. The Expo takes place during the conference and gives businesses in the oil and gas industry the opportunity to meet new customers and connect with existing clients.

For more information about sponsorship opportunities or to exhibit in the Natural Gas Expo, email patty@wvma.com or call 304-342-2123.

Register today

9

Mark D. Clark Spilman Thomas & Battle, PLLC

Natural Gas Production Just Keeps Increasing

In good news for the natural gas industry, the United States Energy Information Administration (“EIA”) published information last month on the 2018 U.S. natural gas production which hit a new record high. The EIA reported that natural gas production increased by 10 billion cubic feet per day (Bcf/d) last year which is an 11% increase over 2017. This production improvement represents the largest annual increase ever and follows on the heels of the largest ever increase in 2017 as well. Natural gas production averaged over 100 Bcf/d for the first time ever, coming in at 101.3 Bcf/d (gross withdrawals). In addition, both marketed production at 89.6 Bcf/d and dry natural gas production at 83.4 Bcf/d set record highs.

Not surprisingly, with the increase in production, the export of natural gas increased in 2018 to nearly 10 Bcf/d - a 14% increase over 2017.

About 30% of the exported volumes were in the form of liquefied natural gas (“LNG”) with the remainder being transported via pipelines. It is worth noting that the U.S. has been a net exporter of natural gas during

2017 and 2018 for the first time in nearly 60 years.

In good news for us, the Appalachian region continued its reign as the largest natural gas producing region in the country. The report indicates that gross production from Marcellus and Utica/Point Pleasant shales in Ohio, West Virginia and Pennsylvania improved 4.3 Bcf/d to 28.5 Bcf/d in 2018. Ohio was the Appalachian leader an increase in gross withdrawals of 34% to 6.5 Bcf/d.

West Virginia at roughly 0.5 Bcf/d had the 7th highest increase in production from 2017 to 2018, behind Texas, Pennsylvania, Louisiana, Ohio, Oklahoma and New Mexico.

Thus, West Virginia has significant room for improvement.

The oil and gas industry had very limited success during the West Virginia Legislature’s 2019 regular session in finding support for its initiatives to encourage increased production from West Virginia reserves. For example, HB 2834 would have updated the deep well spacing limitations from 3,000 feet between wells to 1,500 feet between produc-

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ing intervals of the horizontal leg of each well. The bill would have allowed multiple deep wells on a well pad and allowed wells owned by the same operator to be drilled even closer than 1,500 feet, without requiring approval of the Oil and Gas Conservation Commission. Despite passing the House of Delegates on a 100 to 0 vote, the bill did not make is out of committee in the Senate.

In another example, SB 665 would have authorized expedited permitting of well work for shallow wells upon payment of an additional fee that was double the $10,000 horizontal well work permit fee. The proposal resulted in a $30,000 fee for expedited permit processing.

The bill was approved in the Senate and amended in the House of Delegates to reduce the additional fee, but the bill died on the last night of the regular session.

There is more work to be done in modernizing the West Virginia laws and regulations governing oil and gas operations to allow West Virginia to achieve a greater share of the production increases seen throughout the United States and particularly the Appalachian region. While West Virginia may not be able to match the gross production number of Pennsylvania and Ohio, we should be able to be a leader in percentage increase from one year to the next with more appropriate laws and regulations that encourage rather than discourage production of oil and natural gas in West Virginia.

If you have any questions, please contact Dave Yaussy at DYaussy@ Spilmanlaw.com or Mark Clark at MClark@Spilmanlaw.com.

10

Mark Taylor WeatherBELL Analytics

End of Winter Recap and Spring Forecast

For more information about WeatherBELL’s services and to get the hot-off-the-press forecast updates, please visit our website www.weatherbell.com or contact us at sales@ weatherbell.com.

Nationally, November-March heating degree day totals were above the long-term normal and well above the 10-year running average. November and March were historically cold in many areas, while the Southeast experienced a mild winter.

As we head deeper into spring, expect the cool weather to shrink into the Southwest, though there will be periodic intrusions to the east.

We are expecting warmer than average temperatures to take hold along the East Coast thanks, in part, to very warm waters off the coast and saturated soils. The warmer than normal weather will be the result of warm, humid nights more so than hot afternoons, as the humidity acts to suppress afternoon temperatures and elevate nighttime temperatures.

Can’t Be Silent Continued from page 7

•

•

more US natural gas to places like India, China and the developing world can have the same impact it has in the USA and lower CO2 emissions. According to my pastor, the air in New Delhi is already cleaner because of increased natural gas use.

Why aren’t we working closer with China and India on clean coal technology?

I’m real interested to see what happens after dark and when the wind isn’t blowing if the “Green New Deal” is ever implemented, especially if natural gas and nuclear power are shut down.

Dark and cold is when we need energy the most. Another inconvenient truth is that it takes fossil fuels and petrochemicals to make batteries that could provide even a partial backup.

Where is the pilot project that

•

•

shows Americans what this might look like and what it might cost? Before trying any new technology my customers always wanted to know who had tried it and what the result was. Don’t the American people deserve that? Maybe Colorado should take the Governor’s Mansion off the grid and run it on 100% renewables 24/7. I would be excited to see that.

Our military runs on petroleum, natural gas and nuclear power.

Petrochemicals are needed for weapons, equipment, uniforms and communication systems. I don’t expect Russia, China or the terrorists to give up fossil fuels.

Apparently, the Senators and Members of Congress who support this “Deal” never did the basic math. Renewables take

a lot of surface area. The gas well just one block from my house would require 1,100 acres of windmills or solar panels to replace the energy it produces.

If trees are replaced with solar panels, is that green?

• Renewables produce only electricity and they don’t do that very well. Natural gas and oil are far more versatile. They also provide the feedstocks for the petrochemicals needed to make the products we use every day.

The best way to guarantee Bradley and other children a bright future is to make sure the public knows the truth about energy, petrochemicals and the importance of American oil and natural gas to our military, our economy and our environment. We can’t be silent this time. Our future is ahead of us. We can make it a bright future by what we do each day.

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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.

Association News

IOGAWV Supports WVPB Efforts The Independent Oil & Gas Association of West Virginia (IOGAWV) is supporting West Virginia Public Broadcasting’s (WVPB) efforts to bring attention to substance use disorder and the fact that recovery is possible and treatment is available.

The message, shared through and with community partners, is that recovery from substance use disorder is possible and help is available.

IOGAWV Executive Director Charlie Burd appeared in a public service announcement to support this effort.

Burd’s message was, “The impact of substance use disorder can be felt in every aspect of our lives. It is an issue that employers and employees

must think about every day because it affects reliability and safety on the job site, but help is available. Those who suffer from substance use disorder do not have to travel the road to recovery alone.”

To see Burd’s recorded message, click here: https://www.youtube. com/watch?v=Teom0nHogGE&in dex=31&list=PL2q3Wbz7wKWWO V86ms8Ytwk0uCNO7kOQa. Other IOGAWV members involved in the public service announcement campaign were Rebecca McPhail of the West Virginia Manufacturers Association and staff from Orion Strategies.

This is part of IOGAWV’s ongoing efforts to support members.

Hashtags supporting the social media program include: • #stopwv overdoses and • #wv opioidcrisis.

12

IPAA News

IPAA Currently Active on Several Fronts Anti-fossil fuel activists have targeted the exploration and production industry for years. And, we’ve fought back with our own initiatives, including the industry’s rapid response group Energy in Depth.

More recently, the “Keep it in the Ground” movement has focused on thwarting energy infrastructure and development projects, such as new pipelines and petrochemical plants.

To combat these coordinated efforts to hamper the industry, IPAA is launching a new strategic partnership with the Energy Equipment & Infrastructure Alliance (EEIA), which represents the entire shale energy supply chain - including construction, well services, capital equipment, supplies, logistics, professional services and information technology in support of shale energy operations.

As IPAA moves forward with EEIA, there are new EEIA materials from “Energy Builders” – the EEIA’s grassroots coalition of workers, local businesses, civic leaders, unions and American families who work directly in or support the energy delivery supply chain.

EEIA and Energy Builders are a good information source and advocate on the need for energy infrastructure. Follow them online by clicking here to join their list to receive information and alerts.

IPAA Urges “NO” Vote on Green New Deal.

On Tuesday, March 26, the Senate voted on S.J. Res. 8, a resolution recognizing the duty of the Federal Government to create a Green New Deal. Prior to the vote, IPAA contacted all Senate offices letting them know IPAA would be scoring the Senators’ votes.

The Green New Deal is an illconceived effort aimed at hardening our national divisions purely for publicity’s sake. The Green New Deal fundamentally argues that the millions of middle-class jobs going to hard working Americans producing American energy don’t matter.

At the very best, the resolution’s authors believe that their lives and livelihoods can be cast aside simply because the resolution’s supporters don’t see the value of their work.

For these and many other reasons, IPAA urged a “NO” vote on S.J. Res. 8.

The vote on the procedural motion failed on a 0-57 margin, with 43 Democrats voting “present.” Just three Democrats - Senators Doug Jones (Ala.), Joe Manchin (W.Va.) and Kyrsten Sinema (Ariz.) - broke with their party. The rest voted present, including six presidential candidates who co-sponsored the non-binding resolution S.J. Res. 8. Senator Angus King (I-Maine), who caucuses with Democrats, also joined Republicans in voting no on Tuesday.

EIA: Power sector pushed domestic U.S. natural gas consumption to new record in 2018.

U.S. natural gas consumption increased by 10% in 2018, reaching a record high of 82.1 Bcfd, according to EIA’s recently released Natural Gas Monthly. Domestic consumption of natural gas increased across all sectors in 2018, led by a 3.8 Bcfd increase in the electric power sector caused by a combination of recent natural gas-fired electric capacity additions and weather-related factors.

The electric power sector consumed 29.1 Bcfd in 2018, or 35% of total domestic U.S. natural gas consump-

tion. Natural gas continued to make up the highest share of utility-scale electricity generation after first surpassing coal-fired generation on an annual basis in 2016. Specifically, natural gas accounted for one-third (35%) of utility-scale electricity generation in 2018, followed by coal (27%), nuclear (19%), and hydropower (7%). New natural gas generator capacity additions continued to displace coal-fired power plants and other less efficient sources of electricity.

Technology Is A Huge Driver Of The U.S Oil And Gas Boom.

Forbes. In the world of oil and natural gas, engineers, geologists, and drilling and production departments tend to get the lion's share of the credit when good things happen, and most of the blame when they don't. That's fair, given the crucial roles these groups of employees play within the thousands of companies in the U.S. oil and gas industry. But, as overall domestic production has risen at a pace no one could have foreseen even five years ago, the credit has begun to shift. These human resources remain indispensable to the success of any company, but the deployment of advancing technologies has played an ever-increasing role in enabling companies to maximize recoveries and profits. Advanced-intelligence (AI), machine-learning applications constitute one area of technology that is obtaining widespread use throughout the industry. Unplanned equipment outages and the resulting loss of production cost companies billions of dollars every year. Any technology that can help avoid such outages can have a major, positive impact on a company's bottom line.

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Industry Events

Mark These Coming Dates April 8-9, 2019 Marcellus to Manfacturing Conference Waterfront Place Hotel Morgantown, WV Info: www.wvma.com

Industry Intelligence. Focused Legal Perspective.

HIGH-YIELDING RESULTS.

April 10, 2019 PIOGA Spring Meeting Rivers Casino Pittsburgh, PA Info: www.pioga.org July 9-11, 2019 Tom Dunn Academy WV Wesleyan College Buckhannon, WV Info: www.tomdunnacademy.org July 11, 2019 IOGANY 2019 Summer BBQ Peek’ n Peak Resort Clymer, NY Info: www.iogany.org August 4-6, 2019 IOGAWV Summer Meeting The Greenbrier White Sulphur Springs, WV

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Whether it’s a state or federal regulatory matter, local land use or zoning challenge, acquisition of title and rights to land, or jointly developing midstream assets, we help solve complex legal problems in ways that favorably impact your business and bring value to your bottom line.

August 22, 2019 Divot Diggers Golf Outing & Steak Fry Tam O’Shanter Golf Club Hermitage, PA Info: www.pioga.org September 13-14, 2019 IOGAWV Sports Weekend Bridgeport Country Club and Morgantown, WV

CHARLESTON, WV I PITTSBURGH, PA I STATE COLLEGE, PA I WASHINGTON, DC I CANTON, OH I SEWELL, NJ

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Board Nominees Continued from page 1 A graduate of Marshall University, Maribeth earned degrees in Journalism and Economics. She lives in Huntington with her husband and daughter, and has one son in college.

David Haney is President of D. G. Haney, Inc., an independent operator chartered in 1975. He is also President of E & H Manufacturing, Inc. chartered in 1991, an oilfield equipment manufacturer that enjoys supporting IOGAWV through meeting and event sponsorships. Both of these companies are long time IOGA members.

He has been active in the oil and gas industry for 37 years and served on the IOGA Board from 2005 -2008 and again from 2012 – 2016. He served on various committees and filled the positions of Director of Communication & Education Committee three years, Vice President, President, and Past President. He was the honored recipient of the Gunslinger Award at the winter meeting in 2018.

His son has his accounting degree and has been managing a real estate investing company, his daughter is practicing law in Louisville, and he has been married to his wife Brigid for 39 years. He is the Moderator of the Board at his church and spends his leisure time on his boat on the Kanawha River.

Jon Hildreth is President of Megan Oil and Gas Company, Inc., a production and gas utility. He is also executive management for Roy G. Hildreth and Son, Inc. (a well management and contractor) and Hildreth Oilfield Supply, Inc. These

operations are part of a fourth-generation family oil and gas business.

Jon manages the coordination of these entities including lease and royalty acquisition, drilling and plugging permits, completion, production and product marketing.

Jon is a native of Spencer, W. Va. He received his BS in Finance and Accounting from Glenville State College, continued his technical education with courses and programs on gas measurement, pipeline safety, lands, taxes and environmental matters. Jon served as past president and four years on the IOGAWV board. He is very concerned about the future of the industry and desires to be an active participant in shaping the progress of the development of fossil fuels.

Jon is an avid instrument-rated pilot with 5,000 hours. He resides in Spencer with his wife of 34 years, Rebecca, their 20-year-old twin sons Jordan attending Fairmont University and Jerrod attending WVU (both licensed pilots at age 17) and their daughter, Katlynn, a WVU graduate.

John B. Lawman, Jr. is employed by Diversified Gas & Oil Corporation and serves as the company’s Senior Vice President of Commercial Operations. He is responsible for managing third-party gathering agreements and relationships as well as working on other non-gas sales commercial relationships. Lawman possesses over 35 years of knowledge and experience in the natural gas industry, and was most recently employed by Core Appalachia Operating, LLC as its SVP Midstream Operations, and before that, as Chesapeake Energy Corporation’s Midstream Area Manager.

Prior to joining Chesapeake, he was employed by Equitable Production Company and held various roles in the Appalachian Basin including Director Drilling Operations and Director Commercial Operations.

He began his career at Cabot Oil & Gas Corporation as a field engineer.

While there, he held various positions of increasing responsibility in drilling, production, reservoir engineering, operations and marketing before attaining the position of Vice President and Regional Manager. In that role, he was responsible for the company’s Appalachian Basin assets, in which he directed all departments associated with E&P, including land, exploration, drilling, engineering and operations. He holds a Bachelor of Science in Petroleum Engineering from West Virginia University and is a member of the Society of Petroleum Engineers. He and his wife, Shannon, have three children and reside in Hurricane, W. Va. Chris Weikle is an almost-lifetime West Virginian.

Born in Charleston in 1981 to wonderful parents Phil Weikle and Debbie Phillips, Chris went on to grow up in Teays Valley. Chris lumbered through the Putnam County school system graduating from Winfield in 1999.

Chris then spent eight great years in Morgantown attending West Virginia University. While eight years seems like a lot, he did go on to graduate in 2003 with a B.S. in Political Science and in 2007 with a J.D. from West Virginia University.

After graduating law school, Chris left West Virginia for a year to live in the coastal Charleston. He quickly realized the error of his ways and Board Nominees Cont. on page 18

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Justice for policy reasons.

Enrolled Committee Substitute for House Bill-2661.

Under this bill, a gas utility would have had the option to petition the WV Public Service Commission (PSC) for approval of requests for proposal (RFP’s) containing proposed incentives for the drilling of new natural gas wells and/or increasing production from existing natural gas wells and a process for soliciting bids for costs to procure dependable supplies of natural gas to serve certain natural gas utility customers where dependable, lower-priced supplies of natural gas are not readily available to serve those customers. The PSC shall approve the petition if the natural gas utility shows that dependable, lower-priced supplies of natural gas are not available to serve those customers. Bids awarded and implemented pursuant to and within the parameters of the PSC-approved natural gas utility petition for approval of the request(s) for proposal shall be deemed to be the gas utility’s reasonable cost of natural gas to dependably serve those

customers at the lowest available price, and the natural gas utility shall recover those costs pursuant to its annual purchase gas costs adjustment filings with the commission under this section and the above-referenced rules.

In addition, natural gas utilities may defer actual expenditures attributable to the cost reasonably necessary to convert each customer incurred after the utility’s last rate case proceeding and either (1) not included in the utility’s current base rates, or (2) not recovered by the utility pursuant to filings made by the utility under §24-2-4c of this code. The utility shall recover its actual expenditures attributable to the cost reasonably necessary to convert each customer either (1) in a future rate case through recovery of the deferred expenditures amortized over a reasonable period of time to be determined by the Commission, or (2) pursuant to filings made by the utility under §24-2-4c of this code; in either case subject to Commission review of only whether those costs are reasonably necessary to convert each customer and are not reflected

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in the utility’s current base rates, or have not been recovered by the utility pursuant to filings made by the utility under §242-4c of this code. The bill, supported by IOGAWV was VETOED on March 27, 2019,

by Governor Justice because the title of bill was technically flawed.

• Enrolled Committee Substitute HB-3024. The purpose of this bill was to authorize the West Virginia Development Office to conduct a pilot program known hereafter as “The West Virginia Business Ready Sites Program” for the purpose of promoting economic development in certain areas of the state by facilitating the construction of utility infrastructure necessary to increase the attractiveness of such sites for industrial development within the state. IOGAWV and other Burd’s Nest Continued on page 16

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industry allies were pleased to see this bill passed at it has the potential to bring to fruition the construction of several greenfield industrial sites to serve the growing downstream natural gas industry and in advance of the development of the proposed Storage and Trading Hub. Another feature of the legislation is that upon notice and hearing, if required by the Public Service Commission (PSC), the Commission shall approve the utility infrastructure program and allow expedited recovery of costs related to the expenditures to serve the sites. There is also a provision governing site locations. The bill, supported by IOGAWV was VETOED on March 27, 2019, by Governor Justice because it was technically flawed.

Enrolled Committee Substitute for Senate Bill 147 was a bill designed to shift funding from the Landfill Closure Assistance Fund, which was set up in 1991 to properly close old landfills across the state, to locally operated solid waste authorities. At first, we monitored this legislation as we do many bills after introduction. We were alerted to activity on this bill in mid-February when the Senate Finance Committee amended the bill to add the provisions of §22-15-11-(k), governing the horizontal drilling waste assessment fees. This newly added provision got our immediate attention because it called for an additional solid waste assessment fee of $1 per ton on the disposal of drill cuttings and drilling waste generated from horizontal well sites. Such an increase would have been financial harmful to all horizontal

producers utilizing designated landfills. IOGAWV, in collaboration with other industry allies, began the process of educating legislators on the detrimental effect such an increase could have on West Virginia producers. On March 4, the House Finance Committee removed the Senate amended provision and took the bill back to its introduced language. The House amended bill passed on the last day of session after the Senate concurred with House amendment. The bill, supported by IOGAWV was VETOED on March 27, 2019,

by Governor Justice because of concerns over cost to maintain solid waste facilities and to public health.

ALL veto message can be found here: http://www.wvlegislature.gov/bill_status/ActionsbyGov.cfm?year=2019&sessiontype =rs&btype=bill. Just click on the bill number to read the message.

Other bills of importance that IOGAWV watched closely, but that didn’t pass both Chambers, include: • Committee Substitute for Senate Bill-665 would have allowed expedited oil and gas well permitting and expedited oil and

gas well permit modifications upon the payment of applicable expedited fees, with those fees being split to fund additional staff for the WVDEP and to provide additional monies to plug orphan and abandoned wells. This bill, supported by IOGAWV, died on the last night of session when the Senate refused to concur with a House amendment.

• Committee Substitute for House Bill 2779 to provide that proceeds from certain oil and gas wells that are due to persons whose name or address are unknown are to be kept in a special fund and if unclaimed within seven years the proceeds shall be transferred to the Oil and Gas Reclamation Fund. This bill, supported by IOGAWV, died on the last night of session when not passed by the Senate on third reading.

• Committee Substitute for House Bill 2834 was to update and modernize the minimum spacing requirements for the drilling of horizontal deep wells so as to recognize changing drilling practices and techniques Burd’s Nest Continued on page 17

Site/Civil Design, Permitting, Wetlands, Surveying, GIS/CADD Construction Monitoring, Geotechnical Engineering, Waste Management

Charleston, WV Morgantown, WV Winchester, VA

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developed in recent years. The bill would have established no spacing limitations on wells that are operated by the same operator or operators that agree in writing to specific spacing limitations. This bill, supported by IOGAWV, died in the Senate Energy, Industry, and Mining Committee.

Victories in small ways included, The passage of Enrolled House Bill 2709. This piece of legislation was one you would not have found on any of my weekly reports until the last one!! The original purpose of this bill when introduced on January 29 was to exempt the list of names, addresses and contact information for hunting license holders from public disclosure, including disclosure under the Freedom of Information Act except for exception that such information be available to all law-enforcement agencies and other governmental entities authorized to request or receive such records. As you can see, not a whole lot here to attract the attention of the oil and natural gas lobby. But that all changed on March 6 when the Senate Judiciary Committee amended the provisions of Senate Bill 414 into House Bill 2709.

Senate Bill 414 was titled as the “Protect Our Right to Unite Act” with a purpose to protect an individual’s right to support nonprofit organizations that represent their beliefs and the nonprofit organization’s right to keep the names and addresses of its supporters confidential by codifying the landmark United States Supreme Court decision in NAACP v. Alabama ex rel.

Patterson, 357 U.S. 449 (1958).

Violating this provision would have a trespass upon fundamental freedoms protected by the Due Process Clause of the Fourteenth Amendment as held by the referenced US Supreme Court case. Senate Bill 414 (which passed the Senate on February 27 and was immediately tabled and killed on February 28 after being debated in House Judiciary) was widely opposed by many organizations and businesses—IOGAWV included.

For us, and others, we had grave concerns that such an exemption could provide the pathway and ability for a non-profit, for example, to arbitrarily oppose the permitting of natural gasfired power plants without having to disclose who was behind the opposition.

• The Senate pass House Bill 2709, as amended, on March 9, the last day of session and returned it to the House to concur in its amended language.

The House refused to accept the Senate amended bill and in turn amended the SB-414 language back out of the Bill and returned it to the Senate which, after some debate, finally accepted the House amended bill and passed it as originally introduced on January 29. This bill, supported as passed by IOGAWV, was signed into law by Governor Justice on March 26, 2019.

So, at that final buzzer, did we win? Well, not really, but we played like winners. Did we try our hardest? We damn sure did!! And trying our hardest really sums up the efforts of your IOGAWV lobbying team. Regardless of the final outcome, they are winners! Overall, your lobbying team consisting of Phil Reale, Jim Fealy, Daniel Hall

and myself, take pride in the fact that in some way we affected or had the capacity to affect your ability to do business and make a profit. Unfortunately, we did not get the results we sought on some pieces of major legislation. But fortunately, with our collective input and that of our allies, bills that called for increased severance taxes, or demanded individual well bonds or called for additional studies for fees never saw a committee agenda. Could there have been more, should there have been more—YES. But for now, we begin the process to assess our losses, begin to devise the plan to move forward in the face of adversity, and show our character in our setbacks.

Register on page 19 for April 23 IOGAWV Safety Seminar Coming soon!

IOGAWV Board ballots members cast your vote by May 31, 2019!

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JSA Seminar Continued from page 1 a written work procedure based on it, can form the basis for regular contact between supervisors and workers. It can serve as a teaching aid for initial job training and as a briefing guide for infrequent jobs. It may be used as a standard for health and safety inspections or observations. In particular, a JSA will assist

in completing comprehensive accident investigations.

AGENDA

• The Benefits of doing a JSA • The Basic Steps for Completing a JSA • Identify and Prioritize Hazards Using a Risk As-

sessment Matrix • Group Activities Developing a JSA for an Industry Task Please see the registration form on page 19 or visit www.iogawv. com to reserve your place at this important seminar.

Board Nominees Continued from page 14

returned to West Virginia to work in the legislature for the Joint Committee on Government and Finance.

After that Chris was proud to serve in Governor Earl Ray Tomblin’s administration as Deputy Director of Public Policy. While in the Governor’s office, Chris dedicated himself to education, energy and government efficiency.

Chris reluctantly left the Governor’s office to join LGCR Government Solutions as the Deputy Director of Government Relations and Advocacy. At this firm he represented clients ranging from Fortune 500 companies to small non-profits.

Chris is now the Senior Manager of West Virginia Government Relations for Southwestern Energy, a vertically integrated oil and natural gas exploration and production company operating in West Virginia and

Pennsylvania. He has been married to his wife Kelly Matheney Weikle for six wonderful years. Kelly and Chris have been blessed with two

magnificent kids, Ainsley Jane Weikle (4) and Landon Arlo Weikle (20 months) that keep Kelly and Chris on their toes.

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Safety Seminar Registration Form

2019 Job Safety Analysis Seminar Registration Sponsored by IOGAWV and WVU Extension Service Days Inn, Flatwoods, WV April 23, 2019, 10:00 a.m. - 2:00 p.m.

_____________________________________________________________ Company Name _____________________________________________________________ Address _____________________________________________________________ City, State, Zip _____________________________________________________________ Telephone Participant

Member Y/N

Lunch will be served.

Registration Fees

Email

__________ @ $25.00 per person TOTAL $__________

Please mail registration with payment by April 16, 2019, to: IOGAWV, 300 Summers Street, Suite 820, Charleston, WV 25301 For additional information, call Lori Miller Smith at (304) 344-9867.

No refunds after April 16, 2019.

For additional information, call Lori Miller Smith at (304) 344-9867. 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. 110