2019 June IOGA News

The Voice of the

Independent Since 1959

NEWS

June 2019

Bridge Renamed For Late Sen. Frank Deem The Senator J. Frank Deem Memorial Bridge, formerly the Juliana Street Bridge, spanning the Little Kanawha River in Parkersburg, was dedicated May 17 to honor one of the longest-serving legislators in West Virginia history.

The naming of the Juliana Street Bridge to honor Deem was approved in House Concurrent Resolution No. 2, which was introduced on the opening day of the 2019 legislative session. Sponsors were Kelly and Delegates Bill Anderson, Tom Azinger and Vernon Criss, Roy Cooper, Ray Hollen, John Shott, Joe Ellington, Amy Summers, Pat McGeehan and Speaker Roger

Hanshaw.

“Thank you for giving this honor to Frank,” said Rebecca Deem, Deem’s widow.

Deem, a retired businessman and oil and gas developer, died Oct. 10 at the age of 90. He served one term on the IOGAWV Board of Directors and was named the 2011 Oil and Gas Man of the Year.

The ceremony was held on the Parkersburg side of the bridge in the parking lot at Matheny Motors.

Speakers were Mayor Tom Joyce, who welcomed the crowd, Delegate John Kelly, R-10th, and Bob Ashley, legislative director for Gov. Deem Bridge Continued on page 15

Rebecca Deem accepts House Concurrent Resolution No. 2 from Bob Ashley, legislative director for Gov. Jim Justice.

Photo by Jess Manncini, News-Sentinel

Summer Meeting: See What Awaits You Bring the family and join your friends for the 2019 IOGAWV Summer Meeting at The Greenbrier in White Sulphur Springs, West Virginia. You won’t want to miss the excellent lineup of speakers during the industry presentations on Monday and Tuesday. The fun of IOGAWV’s 44th Annual Summer Meeting takes place August 4-6 and you won’t want to miss the good times awaiting you!

Golf tee times are available Sunday morning from 11:07 to 11:37 on the Meadows Course.

Sunday evening is the western-themed welcome reception and banquet atop Kate’s Mountain.

Come enjoy our traditional buffet of lobster and filet mignon. The Josh Stewart Band will be providing

entertainment for this popular comfortable and casual event.

Industry presentations and business session begin on Monday from 8:30 a.m. to 10:30 a.m. in the Eisenhower Room. Guest speakers include West Virginia Senate President Mitch Carmichael; CNX Resources Corporation Executive VP and COO Tim Dugan; and Leadership West Virginia Executive Director Pam Farris.

Monday is filled with sporting events, as well, with something for everyone.

• The morning begins with the men’s and women’s doubles tennis tournament from 9:00 a.m. to 11:30 .m. at the Tennis Club.

• The Trap & Skeet Tournament

•

will take place at The Greenbrier Gun Club on Kate’s Mountain Monday, August 5, with shootKevin Ellis ing times IOGAWV Vice Presavailable ident/ Program Chair from 9:30 a.m. to 5:30 p.m. Practice times will be available on Sunday.

Please call (800) 624-6070 to make practice and tournament reservations at the Gun Club.

Golf tee times are available Monday on the Meadows

Summer Mtg.

Continued on page 16

INSIDE

Brett Loflin / 2 Member News / 3 Charlie Burd / 4 Mark Clark / 5 Hugh Byers / 6 Greg Kozera / 7 Dennis Xander / 8 Tom Dunn Application / 9 Industry News / 10, 18 Sam McKown / 7 Industry Events / 12 Ergon / 13 IPAA News / 15 Summer Meeting Sponsor Form / 20 Summer Meeting Registration Form / 21

2

Brett Loflin IOGAWV President

Some Good News Thanks to our friends at WVONGA for conducting a statewide public opinion poll regarding the perception of the oil and gas industry in West Virginia, we can point to some positive news. The results of the poll indicate that the majority of voters in West Virginia look favorably on our industry.

The numbers are staggering: 83% of those polled feel the natural gas industry is good for our economy and 74% support drilling for and producing natural gas. Even the majority of those polled in the areas of highest activity favor natural gas development. Not surprisingly, over 68% of those polled have a favorable view of the industry. One result that we should be extremely proud of is that 78% of those polled believe that natural gas development can be done in an environmentally responsible manner. If you haven’t seen the press release from WVONGA let the IOGAWV staff know and we can get you a copy. The press release contains more statistics that are well worth remembering and utilized to spread the word that we are proud of what we do and proud of the oil and gas industry’s contributions to our state and its citizens.

Kudos to Anne Blankenship and the WVONGA team for commissioning this poll.

On another note, other good news that you have possibly read about in IOGA News concern some positive changes to state and federal regulations that affect our industry: • The West Virginia DEP recently re-issued the stormwater general permit for oil and gas con-

•

•

struction (this permit applies to those activities that would not be covered by an Office of Oil and Gas permit). The industry appealed the permit as several provisions in the general permit are onerous and, in our opinion, would only add to the cost and time expended to complete our projects without any additional protection of the environment. As a result of the appeal a stay of the permit has been granted, constructive talks with the DEP are ongoing and we expect positive results.

Operators currently will be covered by the 2013 version of the general permit until the appeal is resolved and the new permit is issued.

Favorable changes to the definitions in the Waters of the United States rule (WOTUS) have been proposed and comments were due on April 15th, 2019. The rule contained a very broad definition of what constitutes a jurisdictional water. The proposed change limits those waters that would require a permit from the Army Corp of Engineers. Let’s hope for a favorable outcome and keep reading IOGA News for updates from Mark Clark (Spilman Law) and others as to the status of the rule.

Due to lawsuits by environmental groups the USEPA was forced to review the current exemption from RCRA Subtitle C hazardous waste rules afforded to the oil and natural gas industry. After the review, the

USEPA determined no changes were necessary and several oil and gas industry wastes will continue to be regulated under Subtitle D requirements. As has always been the case that does not relieve the operator from utilizing protective measures when handling and Good News Continued on page 14

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

Sharon Flanery Receives Honorary Doctor of Engineering from WVU West Virginia University (WVU) has a tradition of honoring selected individuals whose outstanding contributions are important to West Virginia University and her people and who have achieved the highest standards of excellence.

Sharon Flanery, of Steptoe & Johnson, PLLC, received an honorary Doctor of Engineering from WVU in May. In addition, she delivered the commencement address at the Benjamin Statler College of Engineering and Mineral Resources.

Flanery concentrates her practice in the areas of energy and natural resources law and chairs the firm's Energy & Natural Resources Department. As a petroleum engineer with both an operating and a legal background in the industry, she brings real-world experience to her practice.

Flanery is recognized by The Best Lawyers in America in the fields of energy, energy regulatory, mining, natural resources and oil and gas law. She is also recognized by Chambers USA as a leading lawyer in the natural resources field. She

is a member of the advisory board of the WVU College of Law Center for Energy and Sustainable Development.

Shown above right are, from left: Kashi Amenian, Ph.D., Professor, WVU Petroleum and Natural Gas Engineering (PNGE) Dept.; Jim Crews, MarkWest Energy Partnership, PNGE Dept. graduate; Sam Ameri, Ph.D., Chair, PNGE Dept.; Rick Smith, C & J Energy Services, PNGE graduate; and Tu Spatafore (Sharon’s cousin), PNGE graduate.

Shown center right are, from left: husband Bill Flanery; sister Carol Lafferty; Sharon Flanery; daughter Cara Flanery; and brother Anthony Ovies.

:=?-: Dominion Energy

:i' Craig C. Colombo

LDC Gas Supply Strategic Advisor

Dominion Energy Services, Inc. 120 Tredegar Street, Richmond. VA 23219 0: 804-787-6167 M: 804-921-2788 Tieline: 8-738-6167 F: 804-787-6483 craig.c.colombo@dominionenergy.com

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Shown below right are, from left: WVU Engineering School Dean Cilento, Flanery and Ameri.

4

Charlie Burd Executive Director, IOGAWV

From the Burd’s Nest: Total Disconnect!!

In a meeting on May 22, 2019, residents of Brooke County, in northern West Virginia, had the opportunity to meet with State officials to further discuss the issues of deteriorating roads and bridges.

Many residents of West Virginia seemingly cast the oil and natural gas industry as the sole culprit for the destruction of roadways in lots of different places in West Virginia.

The facts on the lengths the oil and natural gas industry goes to to fund road and bridge repairs paint a totally different picture and are actually quite astounding.

The notion that gas companies have not antied-up their fair share and pay nothing for the use and repair of roadways indicates there is a total disconnect with the reality of just how much money has been contributed by those many companies subject to WVDOH Road Bonding agreements—which was first initiated in 2010!

In many instances, producers are required to fix a roadway BEFORE they can begin drilling operations.

And, this “Road Maintenance Bond” is a requirement of the well permitting process with the West Virginia Department of Environmental Protection. These bond amounts can be up to $100,000 per paved mile and $25,000 per gravel mile. When comparing these oil and natural gas Road Maintenance Bonds to other industries, including coal and logging, which show those face bond amounts to be closer to $5,000— you’ll find it’s a far cry from what oil and natural gas companies are required to secure.

Since the inception of the WVDOH Road Bonding Agreement

in 2010 (and revisions in 2011, 2013 and 2018), the industry has been very real participants in providing funds necessary to keep and maintain roads and bridges.

A recent, very quick and nonscientific survey of just a handful of horizontal producers showed well over $110 Million of investments to fix roadways, bridges, slips and more over the past five years. That amount was over $30 Million in 2018 alone! You will see more specific information in the newspapers and media, as IOGA and WVONGA have initiated a coordinated joint effort to bring this well documented level of investment to the people of West Virginia. At the end of the day, many of the oil and gas producing companies perform the repair work and go beyond the required scope. In other words, they “leave the roadways better than they found them.”

Some have expressed the fear that West Virginia, due to its poor road condition caused by the oil and natural gas industry, could be returned to the past stigmas associated with other mineral extraction. The fact is, according the Energy Information Administration, if West Virginia was a country, it would rank fifth in the world for total energy production.

And, when combined with Ohio and Pennsylvania, it would be the world’s third leading producer of natural gas—only behind the United States and Russia. To explore, drill, produce, process and transport oil and natural gas with an ever decreasing overall environmental footprint is something in which the industry takes great pride. And, all West Virginia citizens benefit from this

same stewardship through reduced energy costs.

The truth of the matter is simple, oil and natural gas companies want to help—we’re not bad guys. As an industry in 2018 we produced nearly 1.7 TCF of natural gas; contributed $138 Million in severances taxes; contributed another $88 Million in county property taxes; and provided employment to nearly 34,000 individuals. Energy independence--no-world energy dominance is a safeguard we cannot afford to give up.

All in all, when you consider jobs, production and pipeline infrastructure investment, taxes and highway repair investment, it’s a pretty darn remarkable track record for the oil and natural gas industry. In fact, Governor Jim Justice proclaimed oil and natural gas “the hope for our (West Virginia) future” at the 2019 IOGAWV Winter Meeting on January 23, 2019.

My passion for this wonderful oil and natural gas industry has been demonstrated and recounted in numerous articles over the years. I place in high esteem those former and current pioneers who risk all to create the energy independence we enjoy today in West Virginia and across this great Nation. I can only hope that our state leaders are truly willing to reach out and become better informed on what is occurring in the oil and natural gas industry, in terms of developing a storage and trading hub that leads to increased drilling, the need for midstream processing, downstream manufacturing and chemical plant growth, and great paying jobs for hardworking and deserving West Virginia citizens.

5

Mark D. Clark WeatherBELL Analytics

Potential Resolution of Appeal of O & G Construction Permits As we reported in the March 2019 edition of IOGAWV News, the West Virginia Department of Environmental Protection (“WVDEP”) issued General Water Pollution Control Permit No. WV0116815 for stormwater discharges associated with oil and gas-related construction activities (“2019 Permit”) which replaced a general permit issued in 2013. As also reported, IOGAWV, along with the West Virginia Oil and Natural Gas Association (“WVONGA”) appealed many of the unnecessary and unreasonable terms of the 2019 Permit to the West Virginia Environmental Quality Board (“EQB”) on February 28, 2019 (the “Appeal”) and filed a motion to stay the March 1, 2019 effective date of the 2019 Permit.

On May 3, 2019, the EQB issued an order staying the 2019 Permit from the March 1, 2019 effective date through July 2, 2019. During the period of the stay the terms and conditions of the 2013 Permit will remain in effect. While WVDEP took no position on the motion for stay, it has been diligently working with IOGAWV and WVONGA on a timely resolution of the Appeal.

Because the proposed revisions are so significant, it is likely that a replacement stormwater general permit will be published for public comment, finalization and reissuance sometime during the second half of 2019. This approach will allow all interested persons to review and comment on the replacement general permit in light of the proposed revisions.

The primary objections raised in the appeal and the proposed resolutions are described as follows: 1. Permittees who registered under the 2013 Permit prior to March 1, 2018 would be required to re-apply for coverage under the 2019 Permit: Resolution - Permittees will be authorized to continue coverage for stormwater discharges under the terms of the 2013 Permit for up to 18 months from March 1, 2019 in order to complete work and terminate the permit.

2. The 2019 Permit requires a vague compliance with water quality standards, instead of specifying that compliance with Best Management Practices Resolution Continued on page 17

6

Hugh Byers Direct Energy

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7

Greg Kozera Learned Leadership, LLC

You Are the Disrupter Causing Change

I was at a Coalbed Methane conference a few years ago in my pre-Shale Crescent life. The luncheon keynote speaker was a senior coal company executive. I will call him Mr. C. He opened with a question. “Are there any gas people here?” I was the only person who held up their hand. Maybe the other gas people knew something I didn’t.

Mr. C pointed directly at me with fire and anger in his eyes, “You’re the problem!” I was stunned but I have been called worse things. I expected Mr. C to blame the EPA or President Obama for the coal industry’s problems.

It occurred to me that for over 40 years Mr. C has been accustomed to dealing with elected officials as well as state and federal regulations and regulators. They have government affairs people who monitor laws and regulations so that even a bad regulation isn’t a surprise. They can at least prepare and adapt. Their assumption was, coal has always been a cheaper fuel for electricity than natural gas and always would be.

It was the unexpected change of the USA becoming the world leader in natural gas production that got Mr. C and the coal industry in trouble. They could not foresee, “If Shale Crescent USA was a country, we would be the third largest natural gas producer in the world.” Natural gas disrupted the coal industry. Its unexpected abundance drove prices down to the point where natural gas became the fuel of choice for electricity. Mr. C was partially right.

The US natural gas industry I was part of did take market from coal because of gas’s lower cost. Abun-

dant economical natural gas hastened the retirement of many old, inefficient coal power plants. Natural gas disrupted the coal industry.

What Mr. C didn’t understand when he said it was, “all my fault,” he became part of the problem.

Getting angry and blaming people isn’t an effective way of dealing with change. Mr. C gave me a lot of power by making his problem my fault. Maybe he was wanting me to fix his problem. (He is still waiting.)

What if he took ownership of the problem and began to look for new opportunities the problem may have given him? Doing nothing isn’t an effective option. If Mr. C accepted the change, he could make decisions on how to adapt to it rather than wasting time on blame or anger.

One thing we can all plan on besides death and taxes is change.

This is true in our personal lives as well as our businesses and careers.

We all have experienced the sudden end to a relationship. The person I thought was the love of my life in college told me she was going back to her old boyfriend. I didn’t expect my father to die of a sudden heart attack at 54 years old. I didn’t expect the company I was working for to suddenly go out of business. I didn’t expect the oil and gas industry down-turn in the 1980s that caused massive layoffs. When our youngest left for college we became empty nesters. We knew that was coming.

We are all seeing technology changes at an unbelievable pace.

You can probably write your own list of unexpected and expected changes you have experienced. In 2010 no one predicted that our

Region would be producing 32% of the US natural gas supply. No one predicted the USA would be the world’s leading oil and gas producer.

We know more changes are coming our way. We can’t avoid change so we have to learn how to deal with it. When change happens, we can complain and do nothing. We can also look for opportunity and take action.

If my girlfriend hadn’t left me for her old boyfriend, I would not have met my wife of now 44 years. The 1980s-business downturn brought me to West Virginia and incredible opportunity here. When my father died I had to accept my new role in the family looking out for my mother and brothers. I accepted the position of Assistant Boys’ High School Soccer Coach after my youngest son graduated from high school. It made being “empty nesters” easier. Fall was always a time for soccer when the kids were home. It still is today.

Change isn’t easy but it is part of life. One way to deal with change is to be the disrupter, the one who creates the change. We are good at that. Our industry is drilling laterals of over 18,000 feet in 15 days. We primarily moved frac sand pneumatically. Now we have boxes of sand.

Coiled tubing was used to drill out frac plugs. Now we have frac plugs that disappear. These changes disrupted anyone in the coiled tubing, pneumatic trucking or drilling rig business. Because of better efficiency we only need half of the drilling rigs to get the same production.

From 2008 to 2018 the USA’s natural gas production grew by 31 The Disrupter Continued on page 16

8

Dennis Xander Denex Petroleum

Tom Dunn Energy Leadership Academy Accepting ‘19 Applications The Tom Dunn Energy Leadership Academy is accepting applications for its 2019 class.

The Academy is scheduled for July 9-11, 2019, on the campus of West Virginia Wesleyan College (WVWC) in Buckhannon, W.Va. High school sophomores, juniors and seniors interested in learning more about the energy industry, regional career opportunities and leadership skills are encouraged to apply.

The Academy, sponsored by the Independent Oil and Gas Association of West Virginia (IOGAWV), provides students with an in-depth look at West Virginia’s oil and natural gas industry. During the three-day event, students will be immersed in the industry through classroom presentations and field trips with industry experts. Students also will learn about industry-related programs offered at local colleges and universities during the college fair, hosted during the final day of the program.

Tuition, lodging and meals will be

provided free of cost to all participants.

“The Tom Dunn Academy provides students with a unique opportunity,” said Dennis Xander, member of the Academy’s board of directors and president of Denex Petroleum.

“There aren’t many other programs that provide such an in-depth view of one of the state’s most important industries, especially at no cost. We are incredibly happy to offer this to West Virginia students, as they will comprise our future workforce.”

Applications are available at www.

TomDunnAcademy.org, and will be accepted through June 3. Applications can be submitted electronically via email. All costs, aside from transportation to and from WVWC, are covered, and students are housed on campus. Students who attend will receive certificates of completion for their efforts.

“We encourage all interested

high school students to submit an application,” Xander said. “This is a wonderful learning experience, and we hope to see our 2019 class comprised of students from all across the state.”

To learn more about the Tom Dunn Energy Leadership Academy and download the complete application, visit www.TomDunnAcademy. org. Be sure to like and follow the Tom Dunn Energy Leadership Academy on Facebook and Twitter.

The Tom Dunn Energy Leadership Academy was founded by the Independent Oil and Gas Association of West Virginia in August 2012 to honor the memory of one of its pioneer members and industry leaders. Visit www.tomdunnacademy. org for more information.

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Tom Dunn Academy Application

Click here for the complete application:

https://tomdunnacademy.org/forapplicants/default.aspx

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Industry News

Save the Date for PTTC Workshop

PTTC – HARC – RPSEA Workshop June 18, 2019 Hilton Garden Inn | Canonsburg, PA

Flaring Issues, Solutions and Technologies Registration is Open

OBJECTIVES Clarify issues; identify technologies that are working; identify technologies that are cost effective and may be applicable elsewhere; and identify technologies that may be ready for field trials.

This is the 4th in the series of workshops with panels on operators’ issues and priorities, stakeholder and regulatory aspects and technologies sharing case studies on flaring mitigation such as mobile pipeline, CNG, vapor recovery, beneficial use of flare gas and more.

LOCATION & HOUSING The conference will be held at the Hilton Garden Inn, 1000 Corporate Drive, Canonsburg, PA 15317. For reservations, call 724-743-5000.

Click here for directions.

REGISTRATION: ONLINE Canonsburg Flaring Issues, Solutions & Technologies – 2019 Workshop PDH CREDITS PTTC will issue a certificate for six (6) Professional Development Hours at the end of the workshop.

For further information contact: Doug Patchen, at 304-293-6216, or doug.patchen@mail.wvu.edu

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Sam McKown Membership Committee Chair

IOGAWV Board Approved Two New Members in May Please welcome these new members approved in May.

Calfrac Well Services Corp

Mark Ellingson

28420 Hardy Toll Road

Suite 100

Spring, TX 77373

Phone: (281) 719-1209 mellingson@calfrac.com www.calfrac.com

What makes us different is what makes you better.

Specialists in a broad array of

oil and gas tax, assurance, accounting, revenue, and consulting services.

Arnett Carbis Toothman

actcpas.com

800.924.0729

west virginia

ALL

pennsylvania

Charleston New Castle Bridgeport Pittsburgh Buckhannon Meadville ohio Morgantown Columbus

Northwestern Mutual

Adam Rowh

229 W Main Street

Suite 600

Clarksburg, WV 26301

Phone: (304) 624-5400

Cell: (304) 669-8868 adam.rowh@nm.com www.adamrowhnm.com

PRO

Don’t forget about the membership recruitment incentive available to you! Simply sign up a new member and get rewarded for your efforts by getting ten percent (10%) of the new member’s dues as a credit directly against your dues up to 100% of their total 2019-20 membership dues.

Application and member classification forms can also be accessed on the IOGAWV website at: https://iogawv.com/wp-content/ uploads/2015/06/2-11-16-IOGA-Membership-Application.pdf.

with confidence

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

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Industry Events

Save These Coming Dates On Your Calendar June 3, 2019 Ted Cranmer Memorial Golf Outing & Steak Fry Wanango Golf Club Reno, PA Info: www.pioga.org June 6, 2019 ISO 14001 Internal Auditor Training WV Mining and Industrial Extension Parkersburg, WV Info: www.wvmep.com June 18, 2019 Leading For Results WV Mining and Industrial Extension Parkersburg, WV Info: www.wvmep.com June 18, 2019 PTTC-HARC-RPSEA Workshop Hilton Garden Inn Canonsburg, PA Info: doug.patchen@mail.wvu.edu 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 July 23, 2019 Environmental Compliance and Permitting for Air, Water & Waste WV Mining and Industrial Extension Martinsburg, WV Info: www.wvmep.com August 4-6, 2019 IOGAWV Summer Meeting The Greenbrier White Sulphur Springs, WV Info: www.iogawv.com

August 6, 2019 Understanding Cynersecurity WV Mining and Industrial Extension Beckley, WV Info: www.wvmep.com August 22, 2019 Divot Diggers Golf Outing & Steak Fry Tam O’Shanter Golf Club Hermitage, PA Info: www.pioga.org August 25-27, 2019 IOGCC Annual Conference Medora, ND Info: iogcc.ok.gov/events September 11, 2019 Advancing Manufacturing with Automation and Robotics WV Mining and Industrial Extension Parkersburg, WV Info: www.wvmep.com September 12, 2019 WV Oil and Gas Festival Sistersville, WV Info: festivalnet.com/5478/Sistersville-West-Virginia/Festivals/WestVirginia-Oil-and-Gas-Festival

September 13-14, 2019 IOGAWV Sports Weekend Bridgeport Country Club and Morgantown, WV September 19, 2019 SOOGA Annual Trade Show Marietta Fair Grounds Marietta, OH Info: www.sooga.org October 15-17, 2019 SPE Eastern Regionals Meeting Embassy Suites Charleston, WV Info: www.speeasternregional.org/ October 22-24, 2019 Shale Insight Conference David L. Lawrence Convention Center Pittsburgh, PA Info: shaleinsight.com November 6-8, 2019 IPAA Mid-Year Meeting The Fairmont Georgetown, MD Info: www.ipaa.org/events/

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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.

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

Charleston, WV Morgantown, WV Winchester, VA

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Good News Continued from page 2 disposing of oil field wastes. • Lastly, proposed changes to the USEPA OOOOa rules that currently apply to low pressure, low production wells have been proposed. If passed it will remove the burden of certain requirements for leak detection and repair that are unnecessary and provide little to no benefit in reducing greenhouse gas emissions. Industry work groups continue to be engaged with the USEPA and talks are ongoing.

Although some of the issues mentioned above are in the working stage it feels good to finally have some positive possibilities on the horizon. Stay tuned and keep yourself up to date with the articles published in the newsletter.

Register now for the IOGAWV Summer Meeting August 4-6, 2019 The Greenbrier www.iogawv. com

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15

IPAA News

IPAA Announces Results of National Study The IPAA is excited to share with us and the world the results of a study that shows the substantial economic impact its membership (independent oil and natural gas operators) has on the nation. The study, “The Economic Contributions of Independent Operators in the United States,” was conducted by the business analytics group IHS Markit from November 2018 through May 2019.

Key findings from the report show: • Independent companies account for 83 percent of America’s oil production, 90 percent of its natural gas and natural gas liquids (NGL) production.

• Operating in 32 states plus the Gulf of Mexico, America’s independents drill close to 91% of the nation’s oil and natural gas wells.

• In 2018, independents alone accounted for nearly 3 percent of U.S. GDP and through their business, supported 4.5 million American jobs.

• From 2016 to 2025, capital investment by independent

•

companies is projected to increase by 87 percent.

Independent producers will continue to drive solid contributions to the U.S. economy over the remainder of the study period (2025) and, quite likely, beyond.

Oil, natural gas and NGL production, as well as drilling and operations were analyzed for 2016, 2017 and 2018, and were forecasted for 2020 and 2025.

The report looked at more than 2,200 companies, and the direct, indirect and induced jobs created through their upstream activities. The report also provides state-level analysis, including production, well count and operating expenses by state.

IPAA President, Barry Russell, encourages all members to view the report to see where our industry is now and where it’s projected to head. While there are shifts on the state level, as a whole, independents and oil and gas production are not slowing down.

President Russell Please invites you to share this study with all who may be interested and quote from it as you see helpful. IPAA will also be releasing social media graphics with key national and state-level statistics. Please “Like” and share these when you see them, and let us know if there’s any data from the report that you’d like a graphic for. Our team is happy to create something for you.

If you have any questions about the economic study, please contact IHS Markit’s Bob Fryklund or IPAA’s Fred Lawrence. IHS Markit will also be presenting on the study at IPAA’s upcoming Midyear Meeting in Colorado Springs.

IPAA would also like to thank contributors to the study, Newfield Exploration (recently acquired by Encana), EOG Resources, SM Energy, EnerVest and Chesapeake Energy Corp.

This in-depth analysis would not be possible without them.

Deem Bridge Continued from page 1 Jim Justice. Ashley, who read the resolution, said he first met Deem in 1961when his father entered the Legislature.

“This is a great honor to be here today,” Kelly said. Del. Kelly is shown in the photo on this page.

Early in his first term as a delegate from Wood County, Kelly said he and Deem would often discuss bills, the senior lawmaker asking Kelly how he intended to vote on a particular piece of legislation. Kelly would offer his opinion, to which Deem would enlighten him on the

consequences.

“That was the day I realized I wasn’t helping Frank Deem,” Kelly said. “Frank Deem was helping me.”

He served in the West Virginia Legislature, the Senate and the House of Delegates, every decade since 1954. Among his proudest accomplishments was designing and building the golf course at North Bend State Park in Ritchie County.

Deem, who served in the U.S. Navy, more than likely will be the last World War II veteran to serve in the West Virginia Legislature.

16

Summer Mtg. Continued from page 1 Course from 11:07 a.m. to 12:27 p.m.

• The mixed doubles tennis tournament takes place from 1:30 p.m. to 4:00 p.m. Monday at the Tennis Club.

Monday evening features dinner on your own. Following dinner. wear your IOGAWV badge and head to the casino for our After Dinner Reception at 8:30 p.m. The Casino Night fun will feature a private IOGAWV bar and the opportunity to enjoy an evening of your favorite casino games. Music and dancing are also available.

Tuesday begins with our second set of industry presentations from 8:30 a.m. to 10:30 a.m. in the Eisenhower Room. Guest speakers include Assistant Secretary for Fossil Energy Steven Winberg, Dept. of Energy; Greylock Energy President and CEO Kyle Mork; Orion Strat-

egies President Curtis Wilkerson; and WVU Associate Professor of Economics John Deskins.

The festivities then move back outdoors for more sporting fun. The Trap & Skeet Tournament enjoys its second day of competition from 9:30 a.m. to 4:30 p.m.

The shotgun-start golf tournament will take place on the Old White course Tuesday, August 6, beginning at 12:30 p.m. To sign up for the tournament, please contact Hill Herrick at (304) 536-4909 or hill_herrick@greenbrier.com.

There will be a special event for spouses and non-tournament golfers on Tuesday. We will begin with lunch at noon at the Club House, followed by golf lessons at the same location.

The fee for this special event is $125 per person.

Your Summer Meeting adventure concludes Tuesday evening with an

awards reception at the Outdoor Pool from 7:00 p.m. to 8:00 p.m.

A luau will follow the awards reception, also at the Outdoor Pool, from 8:00 p.m. to 10:00 p.m. This special evening will conclude with music, dancing and fireworks! Dare we say it will be a sparkling evening?

To make golf reservations or to make reservations for Trap and Skeet, call 1-800-624-6070. You do not need to make reservations for the Tennis Tournament (just show up).

Please call Jessica Dowdy at (304) 536-1110 ext. 4943 or jessica. dowdy@greenbrier.com to make your room reservation by July 1.

Summer Meeting registration is open online at www,iogawv.com.

You can also use the sponsor form on page 20 and the registration form on page 21. See you there!

their LNG. This directly impacts the economy of those countries and their ability to buy and build weapons of war. Because of the growth here, US consumers have saved billions of dollars. Did you get any “Thank You” notes? We have created lots of changes. Isn’t it time to change our industry’s profitability? One way to do this is to bring industry here to use our natural gas and NGLs. What about you personally? How do you deal with change? Do you avoid it? Do you deny change? Do you let change make you angry? Do you ignore it? Do you expect the good old days to come back if you do nothing? Do you accept change and move forward? Do you look for opportunity in change? A great little book I have found helpful in learning to deal with change in work

and life is “Who Moved My Cheese”

by Dr. Spencer Johnson and Ken Blanchard. It is a best-selling book that has been out for years and a quick read. I read it in less than two hours including interruptions.

Industry executives in the petrochemical industry expect change.

What they didn’t expect in 2018 was a small non-profit organization from Marietta, Ohio to show up with a study from IHSMarkit on the main stage at the World Petrochemical Conference that changed the Petrochemical Profitability Equation.

Like Mr. C they didn’t like what they heard at first. Instead of getting mad they began looking at potential opportunity. We can use our ability to create change and create a more profitable and stable industry.

Thoughts to ponder.

The Disrupter Continued from page 7 BCF/D. What most people don’t know is 26.5 BCF/D or 85% of the growth was here in the Shale Crescent USA. We hear a lot about the Permian. In the same period Texas only grew by 2.3 BCF/D. You are the disrupter. This Region is now the most profitable place on earth to build a petrochemical plant.

This is the only place in the world where a company can build on top of the energy and feedstock AND in the middle of their customers. You changed the Petrochemical Profitability Equation.

The US Department of Energy recognizes the growth in Shale Crescent USA has had global impact.

They see this Region as the USA’s essential 2nd petrochemical hub. This is important for national security and the US economy. You have impacted what Russia and OPEC get for

17

Resolution Continued from page 5 (“BMPs”) constitutes compliance with water quality standards: Resolution - the language requiring compliance with water quality standards will be replaced with conditions that mandate compliance with BMPs in order to protect water quality standards, including conditions for use of enhanced BMPs for discharges to “special waters” which are defined as Tier 3 waters as described in 47 C.S.R. 2, trout waters specifically designated in 47 C.S.R. 2 and streams for which a sediment TMDL has been completed.

3. “Enhanced BMPs” requirements for almost all earth disturbing activities are unnecessary, when regular BMPs would be sufficient: Resolution - as noted above, enhanced BMPs will be required for discharges to “special waters,” but not discharges to other waters as long as such standard BMPs are effective in protecting water quality.

4. Requiring inspections at construction sites within 24 hours of every precipitation event of 0.25 inches is unduly burdensome and unreasonable: Resolution - inspections of standard BMPs are required every 7 days and within 24 hours following storm events of 0.5 inch or greater over a 24 hour period, but inspections of enhanced BMPs are required every 7 days and within 24 hours following a storm event of 0.25 inch or greater over a 24 hour period; if an inspection is not practicable to inspect within 24 hours then that fact may be noted and ex-

plained in an inspection report.

5. Imposing unreasonably short deadlines and requiring needless seeding and mulching requirements is unduly burdensome: Resolution - temporary seeding and/or mulching must be performed within 7 days when an area will not be disturbed for more than 14 days and permanent seeding and mulching must be performed within 7 days of reaching final grade; provided, however, that if it is impracticable to perform the work within 7 days then work shall be performed as soon as practicable and the reasons for such delay shall be included in an inspection report.

6. Applications for registrations under the 2019 Permit are due an excessive amount of time before permit coverage is needed, and there should be a notice of intent procedure for small construction projects that does not require an application: Resolution - a notice of intent on a form provided by WVDEP (which will require SWPPPs and GPPs) may be used for projects disturbing 1 to less than 3 acres that do not discharge directly to “special waters”, and such projects must be completed and terminated within one year from beginning earth disturbance.

7. Access roads that are not constructed but simply used or maintained should not be regulated under the 2019 Permit, because earth disturbing activities are non-existent or insignificant: Resolution - the revised permit will clarify that the definition of “access road” is limited to roads “constructed, reconstructed

or improved,” but not existing roads that are simply used or maintained, as long as that use is consistent with its original purpose. Likewise the access road construct requirements apply only to newly constructed roads.

8. Prohibiting maximum slope grades in excess of 15% for roads is unreasonable and impossible in some projects: Resolution - the revised permit will provide for maximum slope for access roads to be designed taking into consideration all site factors, including but not limited to, topography, soil type, other construction activity, etc., with slopes in excess of 20% being described in the site plan drawings.

9. Establishing minimum vegetative buffers of 50 feet is unreasonable and impossible in many projects: Resolution - the revised permit will provide that vegetative buffers apply only to limits of disturbance which run parallel to a waterbody bank and that buffers will be designed taking into consideration all site factors, including topography, soil type, other construction activity, land use, structures, etc., but buffers need not exceed 50 feet.

This is good news for the oil and gas industry although the details of the resolution of the Appeal are subject to further revision. IOGAWV will keep you advised of the final terms and conditions of the Appeal.

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

18

Industry News

WVU Industrial Extension Services Overview

The Industrial Extension is housed in the Benjamin Statler College of Engineering and Mineral Resources at West Virginia University.

The Industrial Extension also serves as the West Virginia Manufacturing Extension Partnership, West Virginia’s affiliate to the MEP National Network. The MEP National Network is a unique publicprivate partnership that delivers comprehensive, proven solutions to U.S. manufacturers, fueling growth and advancing U.S. manufacturing.

Combining the expertise of the MEP Center with the resources of West Virginia University allows the Industrial Extension to address a broad range of issues confronting West Virginia industries.

The Industrial Extension offers outstanding services at affordable rates, and are available for both long term, and short term projects.

For more information

West Virginia University Industrial Extension Service 319 Mineral Resources Bldg West Virginia University Morgantown, WV 26506 304-290-8425 http://www.wvmep.com

The West Virginia University Industrial Extension/Manufacturing Extension Partnership is focused on helping West Virginia businesses improve their competitiveness in the local and global markets. This mission is accomplished by delivering Foundational Support Services aimed at maximizing your productivity and optimize the knowledge of your workforce, and innovative Growth Services help your company develop new products, utilize new technology and access new national and global markets.

Growth Services Innovation & Growth Services

Innovation Services and Workshops Export Development & Training Product Design Assistance Computer Aided Drafting & Design 3D Solid Modeling Core Value Business Valuation Leadership Training

Lean Manufacturing Services

Introductory Lean Training – Lean 101 Value Stream Mapping Training Value Stream Mapping Facilitation 5S Training and Implementation Cellular Manufacturing Implementation Kanban Implementation Process Set Up Reduction Six Sigma Green Belt Training

Manufacturing Processes

Plant Layout Review & Development Maintenance Systems Analysis Maintenance Systems Development Time Study/Process Evaluation Standard Operating Procedures TWI Job Instruction Training Work Instruction Training/Development Energy Use Assessments Process Assessments Process Simulation

Foundational Support Occupational Health and Safety

Initial Health and Safety Consultation Mock OSHA Inspection OSHA Preparedness & Response Comprehensive Health & Safety Training American Heart Association Heartsaver CPR, First Aid, & AED Training OSHA 10-Hour General Industry Training OSHA 30-Hour General Industry Training Live Fire-Portable Fire Extinguisher Training Air Sampling Evaluation & Control Noise Exposure Evaluation and Control Earplug Fit Testing and Selection Hazard Evaluation and Control Ergonomic Evaluation Study Respirator Fit Testing and Training Job Safety Analysis Recordkeeping Audits Personal Protective Equipment Assessment Customized Written Safety Programs

Quality Management Systems

ISO 9001/14001/16949 New System Development Internal Auditor Training System Streamlining Audit Team Improvement Training Investigation/Root Cause Analysis Training QMS Business Process Evaluation Focused QMS Process Evaluation Quality Manager Leadership/On-Boarding Internal Audit Retainers

19

Industry News

MINING AND INDUSTRIAL EXTENSION

UPCOMING EVENTS

Register for events at www.wvmep.com

MAY 7 MAY 21 JUN 4 JUN 6

ADVANCING MANUFACTURING WITH AUTOMATION AND ROBOTICS CHARLESTON ENVIRONMENTAL COMPLIANCE AND PERMITTING FOR AIR, WATER, & WASTE IN WEST VIRGINIA WHEELING INNOVATION WORKSHOP … A PROCESS FOR SUCCESS LEWISBURG

ISO 14001 INTERNAL AUDITOR TRAINING PARKERSBURG

JUN 18

LEADING FOR RESULTS

JUL 23

ENVIRONMENTAL COMPLIANCE AND PERMITTING FOR AIR, WATER, & WASTE IN WEST VIRGINIA MARTINSBURG

AUG 6

UNDERSTANDING CYBERSECURITY

SEP 11 OCT 15-17

PARKERSBURG

BECKLEY

ADVANCING MANUFACTURING WITH AUTOMATION AND ROBOTICS PARKERSBURG SIX SIGMA GREEN BELT CERTIFICATION CHARLESTON

Follow Us On

@wvmep

20

Summer Meeting Sponsor Form

2019 Summer Meeting Sponsor Form The Greenbrier, White Sulphur Springs, WV August 4-6, 2019 ____________________________________________________________ Company Name ____________________________________________________________ Contact Name _____________________________________________________________ Address _____________________________________________________________ City State Zip ____________________________________________________________ Telephone Email

Sponsorship opportunities:

______ Diamond Event Sponsor $5,000 and up (call for availability) • Banner hung at sponsored event • Specific signage at sponsored event • Listing on Diamond Sponsor board • Logo and name listed in event PowerPoint presentation • Logo listed in event program, web site page and newsletter ______ Platinum Sponsor $3,000 • Listing on Platinum Sponsor board • Logo and name listed in event PowerPoint presentation • Logo listed in event program, web site page and newsletter ______ Gold Sponsor $2,000 • Listing on Gold Sponsor board • Logo and name listed in event PowerPoint presentation • Logo listed in event program, web site page and newsletter ______ Silver Sponsor $1,000 • Listing on Silver Sponsor board • Logo and name listed in event PowerPoint presentation • Logo listed in event program, web site page and newsletter ______ Bronze Sponsor $500 • Listing on Bronze Sponsor board • Logo and name listed in event PowerPoint presentation • Logo listed in event program, web site page and newsletter Please return this form to IOGAWV, address below, by July 12, 2019. Be sure to email a high resolution (300-dpi minimum) version of your company’s color logo and a link to your web site to lmillersmith@iogawv.com.

Thank you for your continued support! www.iogawv.com

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

21

Summer Meeting Registration Form

2019 Summer Meeting Registration The Greenbrier, White Sulphur Springs, WV August 4-6, 2019 Please complete and return this form, along with your check, by July 12, 2019. Please type or print the information as you would like your badge to read.

__________________________________________________________________ Name on Room Registration __________________________________________________________________ Company Name __________________________________________________________________ Address __________________________________________________________________ City, State, Zip, Telephone Registration Fees A) Member (per person) $ 375.00 B) Member’s Spouse $ 225.00 C) Children Under 21 $ 100.00 (if attending IOGAWV events) D) Children Over 21 $ 225.00

E) Kate’s Mountain Only $ 200.00 F) Kate’s Mtn. Only, < 21 $ 100.00 G) Non-Member (per person) $ 600.00 H) Non-Member’s Spouse $ 350.00

Individuals with special needs (mobility, access, medical diet, etc.) should indicate specific needs in a letter attached to your registration form. ____________________________ Name as it should appear on Badge

ABCDEFGH (Circle one)

$_________

____________________________ Name as it should appear on Badge

ABCDEFGH (Circle one)

$_________

____________________________ Name as it should appear on Badge

ABCDEFGH (Circle one)

$_________

____________________________ Name as it should appear on Badge

ABCDEFGH (Circle one)

$_________

Spouses’ Event (includes lunch)

$125

$_________

Late fee of $25 per person registering after July 12, 2019 TOTAL

$_________ $_________

IOGAWV • 300 Summer Street, Suite 820 • Charleston, WV 25301 Phone: 304-344-9867 • Fax: 304-344-5836 NO REFUNDS AFTER JULY 12, 2019 Golf Tee Times should be made directly with Hill Herrick: email hill_herrick@greenbrier.com or call 304-536-4909. 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