Skip to main content

IOGAWV May 2019 IOGA News

Page 1

The Voice of the

Independent Since 1959

NEWS

May 2019

Let’s Listen to the Next Generation The Independent Oil and Gas Association of West Virginia (IOGAWV) has provided $168,500 in scholarships to high school seniors since 1997. Each year, students are required to answer an essay question. This year, the Scholarship Committee decided we should cull some of those answers and share them with all IOGAWV members. The 2019 essay question was, “Describe your community’s perception of the Oil and Gas Industry and explain how you would improve it.”

The remarks from students are often thoughtful and heart-felt and can give us ideas on how to reach citizens of all ages across West Virginia. Each of us needs to pay attention to these comments and see how we can use the ideas to improve perceptions of our industry. Let’s break down the comments from this year’s 22 applicants into categories of problems with the industry, positives about the industry and ideas on how to change negative attitudes about the industry.

Problems with the industry: • Damage to roads • Traffic problems • Pipeline yards too close to David Haney homes Scholarship Committee • Something you fear (explosions) Next Generation Continued on page 13

IOGAWV Scholarships Awarded for 2019 The Independent Oil and Gas Association of West Virginia (IOGAWV) has awarded scholarships to nine outstanding high school seniors this spring. To be eligible, students must have at least one parent employed by an IOGAWV member company and will be attending a West Virginia college or university. Since 1997, a total of $168,500 in scholarship money has been presented. Baylee Beaver has been named to receive the inaugural Lori Miller Smith Scholarship given to a female student who exhibits a

passion for education. Beaver is graduating from Herbert Hoover High School and will be attending West Virginia University. Her father, Robert Beaver, is employed by Spilman Thomas & Battle, PLLC. Her scholarship will be presented during school ceremonies May 17. Kryzstof Kudlak has been named to receive the Jim Gehr Scholarship given annually to the student who exhibits the greatest commitment to community service. Kudlak is graduating from Hurricane High School and will be attending West Virginia Universi-

ty. His mother, Crystal Kudlak, is employed by Huntington Banks. His scholarship will be presented during school ceremonies May 29. Hannah Hollen has been named to receive the Dale Rettinger scholarship which honors highest academic achievement. Hollen is graduating from Buckhannon Upshur High School and will be attending West Virginia University. Her stepfather, Randall Lane, is employed by C & J Energy Services. Her scholarship will be presented during school ceremonies May 23. Scholarships Continued on page 18

INSIDE

Brett Loflin / 2 David Yaussey / 3 Charlie Burd / 4, 7 Mark Taylor / 5 Association News / 6 Hugh Byers / 9 Industry News / 8, 9, 10 Greg Kozera / 11 Dennis Xander / 12 Industry Events / 15 Sam McKown / 17 Ergon / 19


2

Brett Loflin IOGAWV President

Call to Action If anyone read the Metro News article regarding the state of the roads in Marshall County, you know the oil and gas industry is being blamed AGAIN for all of West Virginia road woes. At least the Governor thinks we should pay for all of the road repairs through an increase in severance tax. Here is an excerpt from the article: Justice said the roads have degraded over time, yet pointed to the development and growth of natural gas as a current negative force. “You’ve got gas, gas, gas, and trucks, trucks, trucks,” the governor added. “You’re going to have holes, holes, holes.” During his first legislative session as governor, Justice backed a tiered severance tax structure affecting coal and natural gas industries in which taxes would fluctuate with the related prices. The state Legislature rejected the proposal. Justice said Monday lawmakers should revisit the idea to cover repair costs. Justice did not criticize gas companies for their work but noted the industry needs to be responsible for their impact. “They’ve got to know that they can’t expect you to put your children at risk and all the different things that are happening because the roads are torn all to pieces,” he said. “They are going to continue to be torn up. You can’t have enough rock or asphalt to keep them together if you have that magnitude of traffic on them.” One would hope that the governor just has not been informed as

to what is required of our industry when utilizing the state’s roadways. Operators must enter into a road maintenance agreement and apply for a permit from the Division of Highways (“DOH”) which outlines the project and includes all haul routes that will be utilized. The DOH will then film the routes to document the condition of the roads to be travelled and hold the operator accountable for maintaining and repairing any damaged routes. In addition, the operators are required to post a bond which for most unconventional operators will be a $250,000 district-wide bond or a $1,000,000 state-wide bond. The other option is to put up a single bond for each separate project with the amount of bond being determined on a project-by-project basis, but could be as much as $100,000 per paved mile, $35,000 per tar and chipped mile, and $25,000 per graveled mile. There is a reduced bonding rate for wells that will utilize less than 5,000 barrels of liquids or well abandonments and is determined on a case by case basis with a maximum of $50,000 required. Not only have operators spent tens of millions of dollars on repairs and maintenance of roads that they have utilized, but they have voluntarily spent millions of dollars to upgrade roads and assist in fixing existing slips that were present before those operators planned on moving any equipment. The majority, if not all, of the 55 counties in West Virginia have impaired roadways. The oil and gas industry is only actively utilizing heavy

equipment in fewer than 15. Hopefully, by the time you read this article, you will have received a request from IOGAWV (either through an action alert or a letter from Charlie Burd) to submit the amount of money you have spent over the years on road repairs, maintenance and upgrades. It is Call to Action 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

David Yaussey Spilman Thomas & Battle, PLLC

Human Health Criteria and West Virginia Water Quality

In the oil and gas business, science is a rigorous taskmaster. The work of geologists and engineers is governed by the hard practicalities of things like porosities, fractures, and proppant conductivity. There is either economically-recoverable gas or oil in a stratum, or there isn't. But when science meets policy, as it did at the 2019 West Virginia Legislature, things get a little murkier. In 2018, the West Virginia Department of Environmental Protection ("DEP") proposed changes in water quality standards to adopt new human health criteria issued by the United States Environmental Protection Agency ("EPA") in 2015. These criteria are the levels that are allowed in water for substances that have been identified as potential carcinogens or toxicants, and accordingly are set at low levels after making conservative assumptions about them. Industry and municipalities asked for time to evaluate those changes, on the grounds that they had not been fully assessed. Environmentalists were incensed by that request, and argued that we were interfering with the updated (and, presumably improved) scientific standards that EPA had proposed in 2015. After several steps in the legislative process, and multiple reported group and individual stakeholder meetings, the Legislature voted to allow until October 1, 2019 for interested parties to provide to the DEP their analyses of state specific inputs. The DEP may then evaluate that data, allow public comment, and propose new criteria for approval by the Legislature during the

2021 regular session. The initial review of the proposed EPA criteria has revealed that it is not at all clear that EPA applied good science to the development of the criteria. Jennie Henthorn, the industry consultant, learned that EPA relied on many "scientific studies" that weren't peer-reviewed, or that are only available if you buy them. No transparency there. From the data that was available, it turned out that the calculated criteria are heavily dependent on the six factors related to fish consumption. These factors address consumption of different trophic levels (zooplankton, foraging fish and predatory fish) and bioaccumulation of chemicals at each of these trophic levels. That led to discoveries that: • The national data used by EPA contains many species not present in West Virginia. The fish consumed by West Virginians (e.g., shrimp, tilapia) are not entirely from West Virginia streams. This is not considered in the human health criteria and requires evaluation. • The data is based largely on whole body bioaccumulation, instead of fish filet. Some chemicals bioaccumulate in the internal organs, which are not normally consumed. • The calculated bioaccumulation factors have been adjusted upward for certain chemicals, with no clear explanation in the EPA database. • The fish consumption between trophic levels requires re-evaluation, to determine if an appropriate apportionment

between the trophic levels has been made. This evaluation of the EPA "science" is further complicated by the policy that implements it. Most states do not apply human health criteria the same way as West Virginia. For example, Virginia uses the less stringent 1 in 100,000 risk factor in setting the human health standards for carcinogens, rather than the more protective 1 in 1,000,000 factor West Virginia uses – making West Virginia 10 times more stringent than its neighbor to the east and south. In addition, many states do not apply these human health criteria to dischargers who don't impact a public water supply. Ohio only limits these criteria one half mile upstream of a drinking water intake. By way of comparison, in West Virginia we treat every discharger as if it is discharging into a drinking water supply, whether it is or is not. There were loud protests from the Rivers Coalition and their legislative supporters that West Virginia would fall behind other states if the human health criteria were reviewed. In fact, it turns out that West Virginia is not alone in giving due consideration to the criteria beyond this year. As of this spring, DEP reported that only three states (Texas, Montana and Washington) have adopted the 2015 EPA default human health criteria. Many states are deferring adoption of the 2015 criteria during their current triennial reviews, for the same reason West Virginia is. Water Quality

Continued on page 16


4

Charlie Burd Executive Director, IOGAWV

From the Burd’s Nest: The Very Frightening Far Left It is a rare occasion that I step too deep into political water, but maybe it’s time to simply call “BS” on those seeking to put us out of business and condemn us to freezing to death in the dark. Back in mid-February 2019, Independent Bernie Sanders announced he was again running for President in 2020 on the Democratic ticket. He is very popular with the “keep it in the ground” movement which seeks to ban fossil fuels in the name of global warming. Sanders has even pledged to not take fossil fuel industry campaign donations—not that we’ll likely be standing in line to hand him a check. On Tuesday, April 2, 2019, Presidential candidate Bernie Sanders pledged, as part of his platform, to ban fracking, the drilling technique that’s turned the U.S. into the world’s largest oil and natural gas producer. According to this tweet, Sanders stated, “Fracking pollutes water, degrades air quality and worsens climate change. When we (assume Democrats) are in the White House, we are going to ban fracking nationwide and rapidly move to renewable energy.” Please recall that Sanders also voiced this very same opposition to fracking during his presidential run in 2016. As President, his advisors would surely warn him of the disastrous economic (investment, jobs, multiple taxes, the devaluing of pension funds) and extremely detrimental military consequences of such a policy. Sanders’ environmental activist friends like to point to studies alleging links between fracking and water contamination, poor air quality, sickness and even birth defects.

They like to rifle in on claims that fracking contaminates groundwater. Recall the flawed and debunked documentary “Gasland,” showing water faucets belching fire from methane supposedly trapped in the water source? This entire farce was debunked by the expert staff of the IPAA and its Energy in Depth team. The facts are far different. Teams of researchers working for many government agencies have found little to no evidence fracking is leading to widespread contamination of groundwater. In late 2016, the United States Environmental Protection Agency (USEPA) released its fiveyear study of fracking and groundwater contamination. USEPA said that while fracking can potentially impact groundwater, the number of cases where that’s happened is small. In addition, in 2017 the U.S. Geological Survey published a study examining groundwater from 116 wells in Arkansas, Louisiana and Texas. The study only found nine instances of contamination, but none were linked to fracking. That same year the Academy of Medicine, Engineering and Science of Texas concluded that drinking water contamination from fracking “has not been observed in Texas.” Texas is the biggest oil and gas producing state in this nation. Other fracking proponents point to government data showing that increased natural gas production has reduced more carbon dioxide emissions than solar and wind power combined. You just must hope Sanders, or any other Democrats, would embrace the fact that because of fracking, U.S. oil and natural gas production has surged to never-before-seen

levels. U.S. oil output hit a record 12 million barrels per day in February, and natural gas production is expected to continue breaking records through 2020. In September 2018 the U.S. Energy Information Administration proclaimed that, based on preliminary estimates, the United States likely surpassed Russia and Saudi Arabia to become the world’s largest crude oil producer earlier in 2018. Does the term “National Security” and “energy dominance” come to mind?? But wait, there’s more: You’ve heard of the Green New Deal—the Democrat-backed resolution that proposes to create an economic stimulus program to reduce dependence on fossil fuels to combat climate change and address economic inequality. The name refers to the New Deal, a set of social and economic reforms and public works projects undertaken by President Franklin D. Roosevelt in response to the Great Depression. This broad proposal envisions the United States achieving net-zero greenhouse gas emissions within a decade, while guaranteeing Americans high-paying jobs and high-quality health care. The resolution has a total of 79 co-sponsors (68 in the House and 11 in the Senate), none of whom are Republicans. Seven of the sponsors—Senators: Bernie Sanders (I-VT), Kirstin Gillibrand (D-NY), Kamala Harris (D-CA), Elizabeth Warren (DMA), Cory Booker (D-NJ), Amy Klobuchar (D-MN), and Rep. Tulsi Gabbard (D-HI)—are declared presidential candidates. So, you see, Sanders is not the only “frightening Burd’s Nest Continued on page 14


5

Mark Taylor WeatherBELL Analytics

Hurricane Season Outlook for 2019 Total Storms 10-15 Hurricanes: 4-7 Major Hurricanes: 1-3

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.

Homestead Communications

It looks like a down year in the Main Development Region of the Atlantic Ocean. It should also be less of a year farther to the north when compared to last year. The caveat is that in-close systems and warm water feedback are ingredients that can make or break the season from an impact perspective. If a storm makes its way close to the coast it can take advantage of these warm waters to intensify. However, there should be fewer storms overall. On the high end, if the El Niño isn’t impressive we could see activity in line with last year, hence the relatively broad range.

Contact Charlie Burd to have your

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

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

company featured in IOGA News.


6

Association News

McCracken Joins IOGAWV Staff Samantha “Katie” McCracken is the new staff assistant for the Independent Oil and Gas Association of West Virginia (IOGAWV). McCracken came to IOGAWV in December 2018 as a temporary employee, then became a permanent staff member in February of this year. She works primarily with the insurance program and helps, as well, on all IOGAWV activities. Executive Director Charlie Burd said IOGAWV had reached a point with the insurance program growing “leaps and bounds” that staffing for the program needed to increase. “We found everything we needed in Katie,” Burd said. “She’s smart, well-spoken, computer literate and

a quick learner. We didn’t need to look any further than our own temporary to find a permanent staff member.” McCracken said she likes learning about the industry and loves working with the IOGAWV staff. She added, “I really enjoy the courtesy and professionalism of the members and how welcome they make me feel.” McCracken has a son, Alex, who will be two years old in May. She describes her son as “the love of her life.” Before joining the IOGAWV staff, she had prior employment experience in auto dealerships, the medical field and retail establishments. A graduate of Nitro High School, she

will begin her business management studies this fall at West Virginia State University.

Association News

Stuck Assumes WVDDC Presidency IOGAWV’s staff assistant Tammy Stuck has been elected President of the West Virginia Desk and Derrick Club (WVDDC). She was recently elected by the membership and took office in January 2019 for the calendar year. As president, she said the Club’s year will focus on the Association of Desk and Derrick Clubs (ADDC) motto of “greater knowledge – greater service.” In keeping with that thought, the goals of WVDDC under Stuck’s leadership for this year are: • grow the membership by at least 10%; • host exciting meetings throughout the state with topof-the-line speakers; • raise funds to support scholarships for a number of students

who have an interest in the oil and natural gas industry; • support service projects to feed children and families in need; and • field trip to an area of interest within our industry. She is asking current members to share WVDDC with others at their companies so that they can join and take advantage of our knowledge sharing, networking and service opportunities. IOGAWV Executive Director Charlie Burd siad, “It’s an honor to have one of our own serve as president of this organization that is so supportive of the natural gas and oil industry. We’re proud of Tammy’s efforts.” Stuck has been employed by IOGAWV since 2008. Her primary responsibilities include member contacts, database and banking.

She and her husband, Jerry, live in Roane County, W. Va. In addition to her work for IOGAWV and WVDDC, she enjoys gardening and doing charity work for abused children, military veterans and other causes.


7

Greg Kozera Learned Leadership LLC Director Charlie Burd IOGAWV Executive

Substance Use Must Be Addressed!

As you already know, West Virginia is poised to take full advantage of the state’s oil and natural gas resources. We have everything it takes to become THE energy producing success story. Oil and natural gas resources are available in abundance throughout most of the Mountain State. In fact, 53 or our 55 counties have some type of natural gas operations. Eventually, several new pipelines will carry the abundant natural gas produced in West Virginia to all points north, south, east and west— including being liquified and shipped

to off shore allies. This will, in turn, create an economic boom for our State’s and national economy. But in order to accomplish this, we need a dependable, educated and well-trained work force to take full advantage of the economic benefits that are just over the horizon. To do that, we must face and address a crisis within our own borders dealing with substance use disorder—a topic I did a Public Service Announcement (PSA) on back in September 2018 for WV Public Broadcasting. Substance use disorder is an issue that potentially affects every industry

R.L. Laughlin & Co., Inc

“Providing Gas Measurement Services since 1970”

Site Automation Meter Sales Gas Analysis

 Electronic Chart Integration  Meter Installations  Calibrations & Repairs

NOW SERVING YOU IN 3 LOCATIONS: 125 State Rt. 43 Hartville, OH 44632 330-587-1230

5012 Washington St., W. Charleston, WV 25313 304-776-7740

1205 Buckhannon Pike Nutter Fort, WV 26301 304-969-0033

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

with confidence

llp

pennsylvania

Charleston New Castle Bridgeport Pittsburgh Buckhannon Meadville ohio Morgantown Columbus

in the state. We need to have solid, reliable, sober employees to run equipment and work in a variety of industries around the state. Without this type of employee, we cannot reap the full benefits of any economic boom. Employees that cannot stay sober are a danger to their fellow co-workers as well as themselves. Without sobriety, accidents increase and the cost of doing business skyrockets. What is the answer? Well, getting those who suffer from substance use disorder into treatment is one way to address the problem. The more people we get into recovery and back into the workforce, the better off we are as a state. All of us at IOGAWV recognize the need to have a dependable workforce. That is why I was proud to participate in the filming of public service announcements addressing substance use disorder that were produced by West Virginia Public Broadcasting. WVPB is leading the charge to raise awareness about substance use disorder and are fighting to remove the stigma associated with substance use disorder, which will be key to getting more people into treatment. A substandard workforce hurts us all, as does the large number of people who are addicted to illegal substances. We have to address this issue. It is a problem that impacts our state in so many detrimental ways. It hurts our families, it hurts our schools, and it hurts our cities and counties that must address the public safety issues that arise because of substance use disorder. It also hurts our economy.


8

Industry News

Environmental Compliance and Permitting for Air, Water, & Waste in the State of West Virginia What DEP regulations and permits are required for your organization? Would your company be ready if the DEP showed up at your facility? Do the new Above Ground Storage Tank rules apply to your facility? What is required in a Storm Water Pollution Prevention and Groundwater Protection Plans? About the seminar: This one day course is designed to inform and guide participants to a better understanding of the required permits by the WVDEP and EPA for West Virginia businesses and manufacturers in air, water, and waste. Upon completion of this class, you should have a clear understanding of the appropriate regulations applicable to your facility, understand the permit process, develop and implement a compliant SWPPP/ GPP, SPCC plan, and/or a Spill Prevention Response Plans (SPRP), in your facility. If your facility already has a Storm Water Pollution Prevention Plan, or Spill Pollution Control and Countermeasures plan, participants will have a clear understanding of the requirements and possible violations when plans are not properly maintained. About the Presenter Dr. Terry L. Polen This 6-hour seminar is being conducted in coordination with WVU Industrial Extension/ WVMEP and the WVDEP with Dr. Terry L. Polen, DM, PE, QEP, Ombudsman from the WVDEP.

Some of the topics Dr. Polen will cover: • Required Permits • Spill Pollution Control and Countermeasures (SPCC) • Regulations for Used Oil • Hazardous and Solid Waste • Oil & Gas Permitting • Toxic Release Inventories • Developing Storm Water Pollution Prevention Plans (SWPPP) & Groundwater Protection Plans (GPP) • Above Ground Storage Tanks (AST) rules Date/Time: May 21, 2019 9:30am – 4:00pm

Cost: $199.00/person To register for this event: https://wvmep.com/wvu-industrial-extension-events/ environmental-compliance-and-permitting-for-air-water-waste-in-wv-wheeling-5-21-19/ Location: Cabela’s – Wheeling 1 Cabela Drive Triadelphia, WV 26059Questions? Jerry Biser 304.290.8425 gerald.biser@mail.wvu.edu Dee Hayes 304.376.3346 deedre.hayes@mail.wvu.edu

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


9

Hugh Byers Direct Energy

Nymex Natural Gas Futures Contract 12-Month Forward Strip Average Prices Through 4/26/2019

Industry News

IOGAWV Congratulates Lavenski and CRA Charles Ryan Associates CEO Susan Lavenski has been recognized as one of the country’s leading entrepreneurs, as she has been named one of Industry Era magazine’s “2019 10 Best Entrepreneurs of the Year.” Susan also will serve as keynote commencement speaker for Marshall University’s 2019 graduation ceremonies next month. She graduated from Marshall with a bachelor’s degree in public relations/journalism and a master’s degree in political science. She was inducted into the W. Page Pitt School of Journalism’s hall of fame in 2017. In addition, CRA recently received the 2019 Chairman’s Award from the Southeast Tourism Society (STS) at

the organization’s Shining Example Awards in Daytona Beach. CRA has worked with the STS team for years, providing branding strategy, creative development and communications counsel. Lavenski said, “I am humbled and grateful for the Industry Era recognition and so deeply honored to be the commencement speaker at my alma mater, Marshall University. And then to be awarded the most prestigious Chairman’s Award from STS is incredible. This award is credited to every member of the CRA team. I have the privilege of working with the smartest, most creative people in our industry every single day.”


10

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 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. LOCATION & HOUSING The conference will be held at the Hilton Garden Inn, 1000 Corporate Drive, Canonsburg, PA 15317. For reservations, call 724-743-5000. For directions, click on the link below. http://hiltongardeninn3.hilton.com/en/hotels/pennsylvania/hilton-garden-inn-pittsburgh-southpointe-PITSPGI/maps-directions/index. html

REGISTRATION: ONLINE AND MAIL OPTIONS Registration includes lunch, coffee breaks and all workshop expenses. Continue to check the PTTC website for details. 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


11

Greg Kozera Learned Leadership, LLC

Green Energy Making Other “Green” Energy Possible

Did you have a happy Earth Day? We were in Florida last month with our youngest son, Gregory, and his family of four children. Our course we went to Walt Disney World. At the Magic Kingdom one of the attractions is Walt Disney’s Carousel of Progress. This attraction was originally at the New York City World’s Fair in 1964. It follows an American family from the turn of the 20th Century to present day. Disney claims this is the longest continuously running stage show in the history of theatre. The characters are all audio animatronic and look very realistic. Quite a feat in 1964. The first scene is set in about 1902. The father talks about how good they have it. They now have gas lights and a kitchen stove fueled by coal. The Wright Brothers are working on a flying contraption. “That young inventor, Thomas Edison” has developed an electric light. There are about 8,000 cars in the USA. A train trip from New York to California takes only seven days. The wife and daughter were doing the laundry with a hand cranked wringer washer and then hanging it outside to dry. This worked fine until it started raining. I have seen this show a lot since our family started going to Disney in 1983. Gregory was four years old at the time. This time was different. The first scene reminded me of the “Green New Deal” (GND). The goal of GND is to have ALL electricity in the USA generated by renewables in 10 years. It eliminates ALL coal, natural gas, oil and nuclear power for electricity generation, meaning we have NO

electricity when the sun isn’t shining or wind isn’t blowing. We all know natural gas is the primary backup for renewables. But the need for oil and natural gas when it comes to renewables is much deeper than that. Batteries require petrochemicals from fossil fuels to exist. Solar panels and modern windmills require petrochemicals from natural gas and oil in their manufacture. I have never seen a solar panel hauled by a horse-drawn wagon or windmill blades delivered to a mountain top by a 20-mule team. They are always on a truck built and fueled by natural gas and oil. This is basic information that the general public doesn’t know and the “antis” ignore. I was the guest for over an hour on an evening talk radio show on a 100,000-watt station out of Cleveland, Ohio. It was apparent very quickly that the host and I voted for different Presidential candidates in 2016. The host was a clear supporter of the GND. When I pointed out the above flaws he started back peddling. He said the GND really didn’t mean all fossil fuels. He finally said he just wanted to make sure renewables aren’t left out of the energy mix. We had a very entertaining, civil and productive conversation. I believe it opened the eyes of his audience. These are the types of people and venues we need to be engaged with if we expect to change hearts and minds. As a parent, grandparent and environmental engineer, I am NOT thrilled about going back to 1902. There is a much bigger picture than just a low carbon footprint. The nation of Haiti has a low carbon

footprint. People live in abject poverty. They cut down their trees for fuel like we did in 1902. We all want clean air and clean water. In 1902, we had neither. Sanitation was a major issue. We didn’t have sewage treatment plants. Our streets were full of horse manure. Rivers were sewers for our waste. The air was black with soot from burning coal and wood. Cities were dark, dirty places. The Green New Deal is NOT green. Will people be cutting down trees to keep their families warm? Today our air and water is cleaner than it has ever been in my life. People live longer and are healthier than in 1902. This is because of fossil fuels and petrochemicals. It takes dependable energy 24/7 to run a sewage treatment plant. It takes fossil fuels to produce the chemicals to clean and sanitize our water. Renewables can’t work for electricity 24 hours a day without a back-up power source. They CANNOT produce petrochemicals to build the modern automobiles and trains that are faster and cleaner than what we had in 1902. Petrochemicals produce modern medical equipment and pharmaceuticals that keep people alive. Asthma or a bee sting isn’t a death sentence today. Countries like China, India and developing countries are still pouring pollutants into the water and atmosphere. The American (and West Virginia) natural gas industry is making a difference. New Delhi, India has cleaner air because of American natural gas. We will need to do more to help these nations or we are all in Green Energy Continued on page 16


12

Dennis Xander Denex Petroleum

Tom Dunn Energy Leadership Academy Accepting ‘19 Applications The Tom Dunn Energy Leadership Academy is accepting applications through June 3 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 March 13 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.


13

Tom Dunn Academy Application

Click here for the complete application:

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


14

Burd’s Nest Continued from page 4 far left” presidential candidate we must contend with by a long shot. On Tuesday, March 26, the Senate rejected the Green New Deal Resolution. The measure failed on a 57-to-0 vote, with all 53 Republicans and 4 Democrats blocking the Resolution. All 43 Democrats — including those who introduced the Green New Deal — took the rare step of voting “present” on this politically driven vote—in part intended to put the six Democratic presidential contenders in the Senate on record. Joining Republicans in voting “no” were Democratic Senators Doug Jones (AL), Joe Manchin III (WV) and Kyrsten Sinema (AZ), as well as Senator Angus King (ME), an independent who caucuses with Democrats. The American Action Forum (AAF) (a nonprofit issue advocacy group which promotes center-right public policy with a focus to educate the public about the complex policy choices the country faces) recently posted a preliminary analysis of the scope, implications and costs of the Green New Deal (GND). AAF’s analysis shows the GND would be financially devastating to millions of middle-income households. The AAF estimates that, between 2020 and 2029, the energy and environmental components of the Green New Deal would cost $8.3 trillion to $12.3 trillion, or $52,000 to $72,000 per household. The total GND program, including the jobs and “social justice” policies, would cost $51.1 trillion to $92.9 trillion, or $316,010 to $419,010 per household. This is simply absurd! Please let me say I have family members and lots of friends who are not registered in the same political party in which I am registered. I have great respect for their opinions, as they do for mine. All of us that sort of fall in the political

middle seem to have that mutual understanding that hopefully we are here in greater numbers to avoid being governed by political extremists, regardless of party affiliation. The political winds seem to shift far faster than before, and the middle is being divided. But still, a rational person, just left or right of center, is left to ponder the very frightening far left and the life they seek to create and provide to the citizens of the greatest country in the history of mankind. All this said, the mere thought of shutting down the vast amounts of clean burning, energy-efficient natural gas and oil, made available through time-tested and proven hydraulic fracturing, and switching within ten years to solar and wind as

the country’s main sources of energy is ludicrous. Sorry Bernie, and all you other “keep it in the ground” zealots, you can’t have it both ways. You can’t be hitting the campaign trail on 737 jumbo jets or gasoline guzzling SUV’s and preaching to the voters about going solar and wind. Now if you walk or hop on a donkey to all your campaign stops—now you’ve got a story. When we finally make it to November 2020, it’s impossible to vision rational American voters standing in line to vote for any presidential candidate who embraces and advocates an energy policy which threatens our national security and sets them back to a time where people froze to death in the dark.

Call to Action Continued from page 2 imperative that we collect this data and publish the numbers. The public is only hearing one side of the story and we need to be diligent

in our public relations efforts to provide the truth about how our industry conducts its business.

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

Charleston, WV Morgantown, WV Winchester, VA


15

Industry Events

Mark These Coming Dates June 3, 2019 Ted Cranmer Memorial Golf Outing & Steak Fry Wanango Golf Club Reno, PA Info: www.pioga.org

Industry Intelligence. Focused Legal Perspective. HIGH-YIELDING RESULTS.

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 August 4-6, 2019 IOGAWV Summer Meeting The Greenbrier White Sulphur Springs, WV

Meet our attorneys at babstcalland.com.

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

Babst_Energy_IOGA_WV_DRILL_6.9375x9.25.indd 1

5/11/16 3:12 PM


16

Green Energy Continued from page 11 trouble. Governments and most environmental groups have shown they are clueless on how to do this. Technical solutions that are cost effective and won’t create hardships or lower the standard of living for everyday people are needed. People will want to implement them. This is called leadership; NOT like the GND is trying to do. The American natural gas industry is a solution, NOT the problem, as people are

being led to believe. Our children and grandchildren deserve clean air and clean water. They also deserve good jobs and economic opportunity. They deserve to take their children on vacation to Disney World or to the beach if they choose. Almost all of the products in the final scene of the Carousel of Progress were petrochemical based. THANK YOU! Our children deserve more than

the GND. We don’t need government or “environmental” groups to tell us HOW to solve our problems. We know how. In the USA, we have created the cleanest environment and the greatest prosperity on the planet. We can help the rest of the world to do the same. America’s (and West Virginia’s) Natural Gas Industry: Green energy making other “green” energy possible. Thoughts to ponder.

Water Quality Continued from page 3 All of this might be moot if the public health were at issue. However, there has been no mention, from the Rivers Coalition or anyone else, of a single water supply that is in danger of not meeting safe drinking water levels because of the failure to adopt the EPA default criteria. No citizens are put at risk by allowing time to re-evaluate human health criteria using state-specific factors. The following presents a brief outline of the overall scope of work started by the West Virginia Manufacturers Association in evaluating the national recommended human health water quality criteria prepared by the EPA in 2015. DEP originally proposed to adopt the EPA HH Criteria with no revisions. Based on public comments, DEP revised the criteria to adjust the fish consumption rate based on a West Virginia study. Despite receiving comments on revisions to other factors used in the calculations, DEP proposed no changes to the federal recommendations

other than fish consumption rate. The EPA HH Criteria are calculated based on eight primary factors, depending on whether the chemical is carcinogenic or noncarcinogenic. The scope of work focuses on evaluating each of the eight factors selected for calculating the EPA HH Criteria. Two other factors - average body weight and water consumption rate -- are consistent among the chemicals and are not within the proposed scope of work. West Virginia uses different cancer slope factor and reference doses in its risk calculations in the Voluntary Remediation Program as compared to those used in the EPA HH Criteria. These differences should be evaluated to ensure internal consistency between West Virginia regulatory programs. Anyone with an interest in the

process, or with data to provide in the recalculation procedures, may contact Rebecca McPhail at rebecca@wvma.com or Dave Yaussy at dyaussy@spilmanlaw.com.


17

Sam McKown Membership Committee Chair

IOGAWV Board Approved Three New Members in April Please welcome these new members approved in April:

Byte Speed PRO Charlie Jordan 3131 24th Avenue, S. Moorhead, MN 53560 3 Kit Road Charleston, WV 25304 Phone: (304) 237-0282 (304) 237-0282 Cell:

cjordan@bytespeed.com www.bytespeed.com

E. L. Robinson PRO Engineering Joe Windau 1801 Watermark Drive Suite 310 Columbus, OH 43215 5088 Washington Street Charleston, WV 25313 Phone: (614) 586-0642 Fax: (614) 586-0648 jwindau@elrobinson.com S & A Property PRO Research, LLC Ashley Lucas 12905 Emerson Avenue Parkersburg, WV 26104 Phone: (304) 464-5850 Fax: (304) 646-5755 ashley@sapropertyresearch.com


18

Scholarships Continued from page 1 Kaitlyn Toney has been named to receive the Kenny Greenlief Scholarship, funded by Waco Oil & Gas. Toney is graduating from Calhoun County High School and will be attending West Virginia University. Her father, Jeffery Toney, is employed by Dominion. Her scholarship will be presented during school ceremonies on May 9. Kaeli Ricottilli has been named to receive the Rubin Scholarship. This scholarship, funded by Steve Rubin, honors Dan, Sam and Stan Rubin, for their contributions to the oil and gas industry in West Virginia. Ricottelli is graduating from Elkins High School and will be attending West Virginia University. Her father, Anthony Ricottilli, is employed by Mountain Valley Bank. Her scholarship will be presented during school ceremonies on May 15. Ethan Endres has been named to receive the Brian Fox Scholarship which is funded by the Fox family to recognize his life and commitment to the oil and gas industry. Endres is graduating from St. Albans High School and will be attending Marshall University. His father, Benjamin Endres, is employed by MRC Global. His scholarship will be presented during school ceremonies May 10.

Summer Aguiar has been named to receive an IOGAWV scholarship. Aguiar is graduating from Buckhannon Upshur High School and will be attending West Virginia University. Her mother, Janie Miller, is employed by PDC. Her scholarship will be presented at school ceremonies on May 23. Marinna Heath has been named to receive an IOGAWV scholarship. Heath is graduating from Notre Dame High School and will

be attending West Virginia University. Her father, Michael Heath, is employed by Bear Contracting. Her scholarship will be presented during school ceremonies on May 17. Madelyn Lalama has been named to receive an IOGAWV scholarship. Lalama is graduating from Bridgeport High School and will be attending West Virginia University. Her mother, Ursula Lalama, is employed by Arnett Carbis Toothman. Her scholarship will be presented during school ceremonies on May 21.


19

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. Next Generation Continued from page 1 •

Environmental hazards and pollution • Causes climate change • Employs “out of towners” • Just a “number of big companies” • Confusion about workforce composition • Loud pump jack engines Positives about the industry: • Reduced dependence on foreign oil • Reclamation successes • Job creation • Funds to schools • More students in school • Used for many products • Taxes support the state • Efficient use of technology • Financial stability • Lower gas prices

•

Variety of jobs available, not all technical How to change negative attitudes: • Teach young children about the industry and the products it makes possible • Set the standard for safety and protection of people and environment • Become valued members of the community in which they operate • Have friendly employees, especially on road crews • Repair roads consistently, not at the end of the project • Focus communications on safety measures • Initiate conversations and casual conversations about the industry

and its benefits Show before and after pictures of drilling and pipeline sites • Give notice to neighbors about truck convoys • Meet people “where they are” and demonstrate the value of the industry • Send speakers to schools at all levels, from elementary to high school and trade school • Improve support among teens • Increase scientific education in high schools • Do a better job of interacting with communities and people • Explain all the products created by oil and gas • Keep pilot cars closer to convoy Let’s see what we can do with comments from these students! •


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


Turn static files into dynamic content formats.

Create a flipbook
IOGAWV May 2019 IOGA News by Diane Slaughter - Issuu