2019 October IOGA News

The Voice of the

Independent Since 1959

NEWS

October 2019

2019 Industry Accounting and Tax Seminar With the advent of recent tax reform over the past year or two, it is more important than ever to be familiar with the special Oil and Gas tax provisions. To ensure that our members can take full advantage of these new tax benefits available, Arnett Carbis Toothman will present their updated annual Oil and Natural Gas Accounting and Tax 2019 Seminar November 6, 2019. In addition to providing in depth coverage of oil and gas tax concepts, the seminar will cover Federal and State tax updates and tax planning ideas and opportunities to help oil and gas

investors, operators, royalty owners, service companies and professionals maximize tax and economic benefits.

Each participant will have ample opportunity to introduce themselves and their companies. Participants will also be encouraged to offer their thoughts about oil and gas and to ask questions. Multiple ACT presenters will utilize their years of experience in the oil and gas industry to explain key tax benefits such as the Marginal Well Credit as well as standard tax issues that everyone in the oil and gas industry

should be aware of and should plan for. Please plan to attend this presentation. The topics will be very beneficial, timely and exciting for participants Marc Monteleone regardless of Finance & their experience Taxation Chair in the oil and gas industry.

Register by October 23 by using the form on page 19 or visiting www. iogawv.com.

Register for Oct. 24-25 Fire Safety Seminar Register now to attend this handson seminar Oct. 25, 2019, at the WVU Fire Academy in Jackson’s Mill. This seminar is sponsored

by IOGAWV, WVONGA and the WVU Safety Extension.

In addition, a block of rooms has been reserved at Stonewall Resort on Oct. 24. There will be a social event featuring a special boat ride that evening including light hors d’oeuvres.

Beverages will be available.

This course is designed to familiarize employees with the dangers associated with working with and/or handling hydrocarbon condensate or natural gas liquids (NGL).

This course is applicable and informative to workers, supervisors, managers or anyone who would like

to gain a basic understanding of NGLs and hydrocarbon condensate along with their respective hazards.

Topics covered include: • Identify the potential hazards and hazardous conditions; • Discuss methods to control the hazards and hazardous conditions; and • Review general safe work practices.

AGENDA • 8:00- 9:00 am Registration and Continental Breakfast • 9:00-11 am Condensate Handling lecture Wayne Vanderhoof • 11:00-11:30 am Fire Safety lecture

WVU Fire Academy staff • 11:30 am12:30 pm Lunch with keynote speaker from State Todd Tetrick Fire Marshal’s office Safety Committee • 12:30-3:00 pm Hands-on Fire Training (H.O.T.) and demonstration Please see the registration and sponsorship forms on pages 20 and 21 or visit iogawv.com to reserve your place at this important seminar.

INSIDE

Kevin Ellis / 2 Tammy Stuck / 3 Charlie Burd / 4 Greg Kozera / 5 Sam McKown / 6 Hugh Byers / 7 Industry Events / 8 Ben Sullivan / 9 Mark Taylor / 9 Industry News / 10 Mark Clark / 13 Ergon / 15 Sports Weekend Sponsors / 17 Desk & Derrick Registration / 18 Tax Seminar Registration / 19 Safety Seminar Sponsorship / 20 Safety Seminar Registration / 21 WV Tanks Conf. Agenda / 22 WV Tanks Conf.

Registration / 23

2

Kevin Ellis IOGAWV President

The Value Proposition of WV’s Natural Gas: Unlock the Potential According to the Energy Information Administration’s September 2019 release of its State Energy Profile for West Virginia, natural gas production in the State for 2018 ranked 7th among all states in the U.S. The monthly updated profile also points out that estimated recoverable natural gas reserves in West Virginia rank 4th in the U.S. And, estimated natural gas liquids (ngl) reserves in West Virginia comprise over one-tenth of all ngl reserves in the U.S. The producers in West Virginia, large and small, have indeed set the bar high from a productivity standpoint. Additionally, tens of billions of dollars of private investment from the producers, midstream group and interstate pipelines have generated billions of dollars in tax revenue to the State and local governments. Yet, the potential for maximum stakeholder value remains constrained, with the most glaring constraints coming from the lack of natural gas fired power generation in West Virginia and the lack of an adequate framework for large, industrial scale manufacturing projects to expand or develop on the strength of such an abundant supply of natural gas feedstock.

With respect to industrial scale power generation in West Virginia, just over 3% comes from natural gas compared to the U.S. average of 38.9%. According to the referenced EIA report, renewables – primarily wind and hydroelectric – account for a greater percentage of total power generation in West Virginia than does natural gas. It is clear, then, that West Virginia

policies must adapt to ensure that we close the gap on this important point. Pennsylvania (43.8%) and Ohio (41.9%) have capitalized on their respective supply of natural gas for power generation. And, as evidenced by recent activity in the Pennsylvania General Assembly, policy makers are promoting additional measures to encourage utilization of natural gas produced in the Commonwealth.

Recently, the Speaker of the Pennsylvania House of Representatives touted a new package of bills designed to encourage additional investment by end users of natural gas and natural gas derivatives. These measures include tax incentives for qualifying, large manufacturing projects which use natural gas or natural gas derivatives produced in Pennsylvania as fuel or feedstock. In addition, the bill package, dubbed as Energize PA, would create a new commission to review and approve permit applications for natural gas related projects in the Commonwealth with the goal of removing unnecessary delays in project approvals. Ohio has similar policies in place, especially when it comes to power generation from natural gas. The message is clear, Ohio and Pennsylvania are taking meaningful steps in the policy arena to unleash the value proposition of those state’s natural gas production industry.

It is not too late for West Virginia to catch up with its neighbors to develop policies that will increase in-state utilization of our vast natural gas and ngl resources. If we focus on power generation and

policies to incentivize new industrial investments that utilize the State’s natural gas and ngl resources, West Virginia can begin to unleash the full value proposition offered by the work and investments made by the upstream and midstream companies. We must work closely with our State’s policy makers to ensure such efforts occur quickly before the opportunity leaves us.

2019-2020 OFFICERS BOARD MEMBERS J. Kevin Ellis President Ben Sullivan Vice President/Program Chair Maribeth Anderson Secretary-Treasurer/Investment Comm. Chair Brett Loflin Immediate Past President James W. Crews Director/Commerce Comm. Co-Chair Jon Farmer Director/Producers Issues Comm. Chair David Haney Director Jon Hildreth Director Jeff Isner Director/Commerce Comm. Co-Chair Bob Radabaugh Director/Evironmental Committee Chair Sarah Smith Director/Govt. Affairs Comm. Chair Todd Tetrick Director/Saefety Committee Chair Chris Weikle Director/Comm. & Educ. Comm. Chair

3

Tammy Stuck WV Desk and Derrick Club President

13th Annual Industry Appreciation Luncheon Set for October 15

The West Virginia Desk and Derrick Club (WVDDC) will be hosting our Thirteenth Annual Industry Appreciation Luncheon in Charleston, WV on Tuesday, October 15, 2019 with registration beginning at 11:30 and luncheon at 12:00. The meeting will take place on the 17th floor of the Chase Building, 707 Virginia St., E. in the Steptoe and Johnson conference room.

The WVDDC has been a member of the Association of Desk and Derrick Clubs (ADDC) since 2005.

The ADDC is an international educational organization with clubs and members across the United States and Canada. The purpose of the ADDC is “to promote the education and professional development of individuals employed in or affiliated with the petroleum, energy and allied industries.” Our motto is “Greater Knowledge – Greater Service.”

We are very pleased to have Steve Hedrick as our keynote speaker.

Steve Hedrick is President and CEO of MATRIC | Mid-Atlantic Technology, Research & Innovation Center in South Charleston, W.Va. MATRIC delivers market-driven innovation, research, technical engineering and technology commercialization for the chemical, energy, environmental and advanced software sectors. He has more than 20 years of experience in the petrochemical industry, leading businesses, chemical manufacturing and health, safety, environment and quality (HSEQ). He has held numerous roles of increasing responsibility at Bayer CropScience, Bayer MaterialScience, Bayer

Polymers and Lyondell and has led multiple regional and global teams to improve business results, reliability and safety systems. His entry into the chemical industry followed service as an officer in the United States Army. A native of West Virginia, he holds a B.S. in chemical engineering from the United States Military Academy at West Point, N.Y. Please see page 18 for a registration form which offers various levels of sponsorship support for this luncheon. It will be greatly appreciated if all donations could be mailed no later than October 1, 2019. All proceeds from this luncheon will be added to our scholarship fund, for future scholarships. Please visit our website www. wvdeskandderrick.org, or contact one of the board members listed below if you have questions, or for more information. We will be charging $35per person for this

event. You can RSVP to Kathy Tawney (ktawney@EnerVest.net).

WVDDC will be happy to bill you.

The WVDDC qualifies as a non-profit organization under the IRS Code 501(c) (6). Contributions or gifts may be deductible as a trade or business expense, rather than a charitable donation.

As always, the West Virginia Desk and Derrick Club and the Industry appreciate your support.

Sincerely, 2019 WVDDC Board of Directors Tammy Stuck TStuck@iogawv.com Kathy Tawney ktawney@EnerVest.net Pam Beaver PBeaver@greylockenergy.com Donna Vermillion dvermillion@greylockenergy.com Teresa Perdue tperdue@enervest.net Michaelle Haye mhaye@enervest.net

Please register now for the Safety Seminar on October 24-25 at Stonewall Resort and Jackson’s Mill.

Use the forms on pages 20 and 21 to register.

4

Charlie Burd Executive Director, IOGAWV

From the Burd’s Nest: Working Hard To Do Our Share Editor’s Note: All charts referenced in this article can be found on page 16.

As we end the first quarter of our 2019-2020 membership year, we are getting a very clear picture of just how much economic wealth the oil and natural gas industry contributes to the State of West Virginia and the Appalachian Basin. The contributions by the oil and natural gas industry to the State of West Virginia are staggering. Since 2008, when horizontal drilling began in the state, the industry has contributed just over $1.137 Billion in severance tax (as of December 31, 2018).

(Graph 1) In addition, please add in another $1.170 Billion in property taxes paid to the counties (as of June 30, 2019).

Yes, that is Billion with a “B”.

(Graph 2) When you add another $255 Million in the special production tax assessment collected between 2006 - 2016 to assist in the payoff of the unfunded WV Workers Comp debt, plus the millions of dollars in road use taxes, sales tax, payroll tax and royalty payments we can stand proud for what we have been able to provide in way of revenues for the privilege to do business in the state.

These contributions have been made in the face of steadily declining commodity prices due to the extraordinary volumes of natural gas that is being produced (here and in other basins) with little to no increase in downstream markets or pipeline take-a-way capacity. Graphs 3 and 4 illustrate the downward trend in the Henry Hub spot pricing and the dramatic increase in natural gas production.

However, as we end the first quarter of the West Virginia’s fiscal year, we have just received reports of how significant this downward trend in pricing is affecting the State’s revenues. State Deputy Revenue Secretary, Marc Muchow, told a legislative committee that while September revenues look promising, total revenue collections were $49.8 Million under estimate.

Muchow identified a lag in severance tax collections in the energy sector with coal being off by thirty percent and oil, natural gas, and NGL’s by about fort-eight percent in July and August. He attributed this decline to the lower prices for natural gas (as shown in graph 3). Muchow went further to say the work stoppage of some 4,000 employees on two major natural gas pipeline projects (Atlantic Coast PL and Mountain Valley PL) add to the misery.

These numbers seem to paint a clear picture. In order to help the State and our producers, we need to, among other things, push for additional utilization of clean burning natural gas in the production

of electricity, increase global LNG exports using WV produced natural gas, increase natural gas exports to Mexico and increase downstream markets and uses for natural gas as a feedstock for chemical, manufacturing processes and in the transportation sector. When burned cleanly, natural gas releases about half as much carbon as coal. If used in power production, cleaner electricity generation means the West Virginia and U.S. economy can still grow and produce lower emissions--something sought by many environmentalist groups, EPA and DOE. As we begin to prepare for the 2020 Legislative Session, please know your IOGAWV Governmental Affairs Committee, Executive Committee and lobbying team are working to successfully introduce and pass legislation that seeks to accomplish growing our oil, natural gas and NGL production while safeguarding against additional, unnecessary and unwanted fee increases and regulations.

Burd’s Nest Continued on page 16

DEVELOPMENT, LLC Salt Water Injection Facility Daily Well Volumes in excess of 42,000 BBLS per day

Contact: decker@redbirdswd.com

5

Greg Kozera Learned Leadership LLC

A Time for Creativity This week Lynnda and I took a quick trip to Disney World. We wanted to see and experience the new “Star Wars Galaxy’s Edge” at Disney’s Hollywood Studios in Orlando, Florida. I guess we are still kids at heart. With school just starting, we figured the crowds would be down, especially if we went during the week. I told my kids that we were going to “check it out” for the grandkids’ visits next spring.

Disney did not disappoint. Lynnda and I became “travelers” to this distant planet at the edge of the galaxy and visitors to Black Spire Outpost.

The Outpost is designed to immerse the visitor in the adventure, from going on a mission in the Millennium Falcon spaceship, to eating authentic Outpost food and visiting various Outpost merchants where the visitor can buy and assemble things like a droid or a light saber. The Disney people were all in character and addressed us as “traveler.” Stormtroopers marched by periodically to keep the peace. The signs were in Galactic language. The travelers

like us were easy to spot. Disney set up this experience so “travelers” can get lost in the story and the environment. We had a ball and are ready to go back again.

It took a lot of creativity from Disney to put a project like this together.

Their attention to detail is amazing.

The cast members are well trained and make it easy to believe you are no longer on earth. They seem to really enjoy what they are doing. Disney has been rewarded with a lot of additional visitors. We stayed in one of their resorts. They controlled the entire guest experience from the time we boarded their “Magical Express” bus at the airport until it returned us to the airport. We didn’t touch our bags from the time we checked them at the airport until we picked them up at baggage claim after out return flight.

Think about your business. If you are in the service business, what can you do that will pleasantly surprise and delight your customers? Use your creativity for your customers to have a memorable experience

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and want to come back. At Shale Crescent USA when we have visitors to our Region we want to control their experience from the time they land until they leave. A bad experience with a cab driver or a hotel can reflect badly on us. We want to leave them with a memorable and positive experience of their trip and our Region. We want them to return and locate their business here to use our natural gas and NGLs. When we entertained our first visiting group last year, it was gratifying then they said at departure, “We are so glad you convinced us to come visit the Shale Crescent USA.” Almost a year later their project is continuing to move forward.

Plants like this company is planning will create high wage construction and operations jobs. They will need a site. They will need a lot of local natural gas. Our industry is in a situation we can’t drill our way out of. We have plenty of natural gas.

What we need is increased natural gas demand close to the wellhead.

Petrochemical plants need natural gas and NGLs not just for energy to operate but also for feedstock. A double win. If you are part of an Exploration and Production your product is a commodity that sells at market price. You don’t have some of the creative opportunities the sales and service providers have.

Really??? Maybe you do if you can think creatively.

I challenge you to find ways to develop your creativity. Maybe you need to spend more time with creative people. You can watch movies or visit places that help you to think differently and more creatively. DisCreativity Continued on page 14

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Sam McKown Membership Committee

IOGAWV Board Approved Four New Members in September Please welcome these new members approved in September.

Dils Oil & Gas

POP Sherman “Buzzie” Dils 529 31st Street 43 Parkersburg, WV 26101 Phone: (304) 482-5801 shermandilsiii@provigy.net

Morris, Priscilla STU Priscilla Morris PO Box 23 Allen, TX 75013 221 10th Street Market, Apt. 10 Parkersburg, WV 26101 Phone: (214) 592-3937 plmorris99@gmail.com

TRC Companies ALL Denny Nurkiewicz 164 Country Estates Road Fairmont, WV 26554 Phone: (304) 516-9234 dnurkiewicz@trccompanies.com www.trccompaines.com

Lowe, Cindy PRO Cindy Lowe PO Box 1239 7268 Wild Cat Hollow Road Barboursville, WV 25504 Phone: (304) 710-0648 c.lowe@voluntarybroker.net

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7

Hugh Byers Direct Energy

Nymex Natural Gas Futures Contract 12-Month Forward Strip Average Prices Through 9/24/2019

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8

Industry Events

Save These Coming Dates October 2-5, 2019 NARO National Convention 2019 Pittsburgh, PA Info: www.naro-us.org October 12-16 AAPG Eastern Section Annual Meeting Double Tree by Hilton Columbus, OH Info: www.iadc.org/ October 15-17, 2019 SPE Eastern Regionals Meeting Embassy Suites Charleston, WV Info: www.speeasternregional.org/

Industry Intelligence. Focused Legal Perspective.

HIGH-YIELDING RESULTS.

October 22-24, 2019 Shale Insight Conference David L. Lawrence Convention Center Pittsburgh, PA Info: shaleinsight.com November 6, 2019 IOGAWV Tax Seminar Holiday Inn Charleston West South Charleston, WV Info: www.iogawv.com November 6-8, 2019 IPAA Mid-Year Meeting The Fairmont Georgetown, MD Info: www.ipaa.org/events/ December 3-5, 2019 Marcellus Utica Midstream David L. Lawrence Convention Center Pittsburgh, PA Info: www.hartenergyconferences. com/marcellus-utica-midstream

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.

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

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Ben Sullivan Vice President and Program Chair

Members, Guests Enjoyed Sports Weekend, Especially WVU Win Those attending the 2019 Sports Weekend activities enjoyed great weather, great football, golf and shooting and great food.

On Friday, IOGAWV members and guests enjoyed a great breakfast, provided by SLS Land & Energy Development, before heading to the golf links or the shooting range.

Participants also received a complimentary jacket sponsored by Apex Pipeline Services, Inc. Complimentary drink tickets were sponsored by Ergon Oil Purchasing, Inc. Afterward, everyone enjoyed a terrific luncheon, prepared by Bridgeport Country Club and sponsored

by Antero Resources Corp. Our

entertaining DJ was sponsored by USI Insurance Services.

Saturday began with a tailgate party at Mountaineer Field, sponsored

by Bowles Rice.

Then, Sports Weekend fans headed to the stadium to watch the WVU Mountaineers play the North Carolina State Wolfpack. Using the luck of IOGAWV, and great playing, the Mountaineers were victorious by a score of 44-27.

Sporting clay tournament winners were: 1st place, Bob Cayton, Diversified Gas & Oil Corporation; 2nd place, Mike Roy, Matthews Lubricants; and 3rd place, Kevin Amos, Core & Main.

Golf tournament winners were: 1st place Phil Reale, Philip Reale II, Anthony Reale and Jim Fealy, all with the Law Office of Philip A. Reale, PLLC; 2nd place Ike Morris, Doug Cottrell, Lance Woodford & Pat Morrison all with Waco Oil & Gas; and 3rd place Gordon Baum, Fastenal, Nick Dent, Wes Smith and Shawn Moyers, all with Flying “W” Plastics.

As always, everyone had a terrific time!

Please be sure to visit our sponsors on page 17. Without them, this event would not be possible, so please thank them when you can.

Mark Taylor WeatherBELL Analytics

WeatherBELL Fall/Early Winter Outlook

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.

We are still expecting a slow start to winter this year, with much of the fall expected to be warmer than normal.

Our research points to a 2-3 week cold stretch likely occurring sometime from early October to early November. This can be considered a false start to winter, as the warmth should resume for at least a few weeks after that.

For winter, we are expecting a warm start, but arctic air intrusions will become increasingly common as the winter progresses, especially over the Great Lakes. The East Coast should see really warm temperatures early on, with increasingly cold and snowy weather for a time in January and February.

10

Industry News

51st Oil & Gas Festival Honors Hutson

Rusty Hutson of Diversified Gas & Oil Corporation was honored as the 2019 West Virginia Oil & Gas Man of the Year. Shown above is the Hutson family. From left are Rusty’s brother Chad, son Tanner, wife Kimberly, Rusty, son Parker, daughter Hannah, mother Shirley and father Rusty Sr. At left, master of ceremonies Roger Romine presents the 2019 Oil & Gas Man of the Year plaque to Rusty Hutson.

Below right are industry leaders and prior recipients, IOGAWV Vice President and Program Chair Ben Sullivan, 1992 recipient Ben Hardesty, 2019 Oil & Gas Festival Queen Ashton Rexroad, 2019 recipient Rusty Hutson and 2017 recipient Charlie Burd.

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Industry News

51st Oil & Gas Festival Honors Hutson

As the 2019 West Virginia Oil & Gas Man of the Year, Rusty Hutson was Grand Marshal of the annual parade. He was joined by, from left, wife Kimberly and their children, Tanner, Hannah and Parker.

At right, honoree Rusty Hutson said, “This industry is under attack. There are people out there who would love to see this industry fall by the wayside...I don’t know how they think we are going to turn the lights on.” He continued, “I love the industry and I love what we do.”

Below are 1992 recipient Ben Hardesty, 2019 recipient Rusty Hutson and 2017 recipient Charlie Burd.

Below right is a view of the Grand Marshal in the 51st annual Oil & Gas Festival parade.

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13

Mark D. Clark Spilman Thomas & Battle, PLLC

EPA Proposes Rulemaking to Modify Methane Regulations

The U.S. Environmental Protection Agency ("EPA") has proposed rulemaking revisions to the regulation of methane and volatile organic compounds ("VOCs"). The proposed rulemaking was published in the Federal Register on September 24, 2019, and established November 25, 2019 as the deadline for comments. However, the notice also suggests that comments on the information collection request will be better assured of consideration if received by October 24, 2019.

The rulemaking proposes reconsideration amendments to the new source performance standards (NSPS). These amendments, if finalized, would remove sources in the transmission and storage segment from the source category, rescind the NSPS (including both the volatile organic compounds (VOC) and methane requirements) applicable to those sources, and rescind the methane-specific requirements (the “methane requirements”) of the NSPS applicable to sources in the production and processing segments.

The EPA is also proposing, as an alternative, to rescind the methane requirements of the NSPS applicable to all oil and natural gas sources, without removing any sources from the source category. Furthermore, the EPA is taking comment on alternative interpretations of its statutory authority to regulate pollutants under the Clean Air Act (CAA), and associated record and policy questions.

More specifically, the EPA is proposing to amend its 2012 and 2016 rules affecting the oil and gas industry, titled, respectively, “Oil and Natural Gas Sector: New Source

Performance Standards and National Emission Standards for Hazardous Air Pollutants Reviews; Final Rule” (“2012 NSPS OOOO”) and “Oil and Natural Gas Sector: Emission Standards for New, Reconstructed, and Modified Sources; Final Rule” (“2016 NSPS OOOOa”). Those rules established NSPS for VOC emissions from the oil and natural gas industry, and the 2016 rule also established NSPS for greenhouse gases (GHGs), in the form of limitations on methane, for that industry.

The amendments that the EPA is proposing are intended to continue existing protections from emission sources within the regulated source category, while removing regulatory duplication.

The EPA is now proposing to determine that some of the requirements under those rules are inappropriate because they affect sources that are not appropriately identified as part of the regulated source category, and some of the requirements under the 2016 NSPS OOOOa are unnecessary insofar as they impose redundant requirements. Accordingly, the EPA is acting to rescind those requirements while maintaining health and environmental protections from appropriately identified emission sources within oil and gas industry.

The EPA is proposing two potential actions: a primary proposal and an alternative proposal. The primary proposal contains two steps.

In the first step, the EPA proposes to rescind the standards applicable to sources in the transmission and storage segment of the oil and gas industry. As the second step, the EPA is proposing to rescind the

methane requirements of the NSPS applicable to sources in the production and processing segments. The EPA asserts that those methane requirements are entirely redundant with the existing NSPS for VOCs and, thus, establish no additional health protections. Rescinding the applicability to methane emissions of the 2016 NSPS OOOOa requirements, while leaving the applicability to VOC emissions in place, will not affect the amount of methane emission reductions that those requirements will achieve.

Under the alternative proposal, the EPA is proposing to rescind the methane requirements of the NSPS applicable to all oil and natural gas sources in the source category as it is currently constituted, without undoing the 2012 and 2016 interpretations or expansion of the source category to include sources in the transmission and storage segment.

The rationale for rescinding the methane requirements under this alternative proposal is the same -they are entirely redundant with the existing NSPS for VOCs. The EPA is also taking comments on a number of alternative interpretations under the Clean Air Act such as whether it (i) is required to make the significant-contribution finding each time that it regulates a pollutant from the source category, (ii) made a valid finding in the 2016 NSPS OOOOa that methane emissions from the Crude Oil and Natural Gas Production source category met this statutory standard, and (iii) should make a new determination whether methane emissions from the source Methane Regs

Continued on page 15

14

Creativity Continued from page 5 ney works for us. We always return with new ideas and the belief we can implement them. Try new things.

Draw, paint, listen to different music.

Find what works for you. Maybe you need to spend some quiet time daily just thinking. Write down all of your ideas when they occur to you. Many of your ideas won’t be any good. It only takes one or two great ideas to change everything. You don’t need to do this alone. People in leadership positions need to encourage creativity in their people and then really listen to their ideas when they present them.

We are where we are right now not because of markets, regulation or any number of other things. We are where we are in our personal lives or our business because of our THINKING. That may be good or bad. If we want to change anything we first need to change how our brains think. Mike Rayburn, National Speakers Association Hall of Fame Speaker and Carnegie Hall Musician challenges us to ask two questions when faced with a big problem; “What if ?” and “Why not?” This kind of a question gets our brain thinking about possibilities. Once we have thought about possibilities then we can ask. “Why not?” What is it that is really holding me back?

When I got started at Shale Crescent USA three years ago, the advantages of our Region were pretty much unknown to the world.

The problem we faced was how can we let the world know about our Region that we branded, The Shale Crescent USA? That is a tough question for a meagerly funded non-profit, non-government organization in Marietta, Ohio. Fortunately, our organization is made up of successful creative leaders. We asked the question, “If we could reach the world with our message, what might that look like?”

This thinking opened up possibilities. After we saw the results of our first IHSMarkit Study, Mark, the Shale Crescent USA Chairman said, “We need to get this on the Main Stage at the 2018 World Petrochemical Conference (WPC). Can you do it?” My initial thought was, “You have no idea how difficult it is to get on Main Stage. You usually need to be a CEO for those spots.” Then I asked the question, “If we could, what might that look like?” Then I thought, “Why not?”

Our Region was on Main Stage at (WPC) in March 2018 and our study was presented. In April 2018

Oilprice.com picked up an article of Shale Crescent’s that ran in the Houston Chronicle. They added the title, “Shale Boom Creates New Petrochemical Hub.” Yahoo Finance ran the article taking it global with over 17 million views.

The point is, for Shale Crescent USA to go global we had to be thinking, “How can we?” and “Why not?”. It is that kind of creative thinking that is needed to turn the financial performance of individual companies and the industry around.

I challenge you to change your thinking. What if you could? How might that look? Why not you?

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

Charleston, WV Morgantown, WV Winchester, VA

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Ergon

Monthly Appalachian Basin Crude Oil Prices NYMEX AVG OIL PRICE 2017 AVG Price - $50.99/bbl 2018 AVG Price - $64.79/bbl 2019 AVG Price - $57.07/bbl

$80.00 $70.72

$70.00

$63.79

$60.00

$56.85

$50.00

$48.82

$55.07

$51.48

$60.89

$58.09

$57.50

$54.86

$54.84

$40.00 $30.00

Series1

$20.00 $10.00 $-

Sep-18

Series1

Oct-18

Sep-18 $70.09

Oct-18 $70.72

Nov-18

Dec-18

Nov-18 $56.85

Dec-18 $48.82

Jan-19

Feb-19

Mar-19

Jan-19 $51.48

Feb-19 $55.07

Mar-19 $58.09

Apr-19 Apr-19 $63.79

May-19 May-19 $60.89

Jun-19 Jun-19 $54.86

Jul-19 Jul-19 $57.50

Aug-19 Aug-19 $54.84

Methane Regs Continued from page 13 category meet this statutory standard.

This proposed rulemaking could result in significantly reduced regulatory requirements related to methane

emissions. However, it will likely be next year before we will know more about the extent of the changes, if any. If you have any questions

regarding these rule revisions, please contact Mark Clark at MClark@ Spilmanlaw.com or Dave Yaussy at DYaussy@Spilmanlaw.com.

Make reservations now for the 2019 IOGAWV Tax Seminar on November 6, 2019 at Holiday Inn & Suites Charleston West (in South Charleston, WV).

See page 19 for registration details.

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Burd’s Nest Continued from page 4

Chart 1

Chart 2

Chart 3

Chart 4

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Sports Weekend Sponsors

Thanks to Our Sports Weekend Sponsors 2019 Sports Weekend Diamond Sponsors

2019 Sports Weekend Silver Sponsors

2019 Sports Weekend Bronze Sponsors

Homestead Communications

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WV Desk and Derrick Registration Form

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Tax Seminar Registration Form

Oil and Natural Gas Accounting and Tax 2019 Registration Holiday Inn Charleston West, South Charleston November 6, 2019, Registration 8:00 a.m., Class 9:00 a.m.-4:00 p.m. ___________________________________________________________________________________________ Company Name Member? ❏ Yes ❏ No ___________________________________________________________________________________________ Address ___________________________________________________________________________________________ City State Zip ___________________________________________________________________________________________ Telephone ___________________________________________________________________________________________ Participant’s Name ___________________________________________________________________________________________ Email ___________________________________________________________________________________________ Participant’s Name ___________________________________________________________________________________________ Email ___________________________________________________________________________________________ Participant’s Name ___________________________________________________________________________________________ Email ___________________________________________________________________________________________ Participant’s Name ___________________________________________________________________________________________ Email Please call the IOGAWV Office if you have a special dietary need.

Registration (includes all handout materials, meals, and beverages) _____ member discounted rate of $150 per person (applies to employees of member companies) _____ non-member rate of $250 per person _____ TOTAL DUE Please mail registration with payment by October 30, 2019 to: 300 Summers St., Ste. 820, Charleston, WV 25301 NO REFUNDS AFTER October 30, 2019.

About this course:

www.iogawv.com

Program: Oil and Natural Gas Accounting and Tax 2018; CPE Credits for Accountants: 7.0; Field of Study: Accounting (1.0); Taxes (3.0); Information Technology (1.0); Specialized Knowledge (2.0). The following course has been approved for 7.2 CLE credits for attorneys. by the WV CLE Commission.

After the seminar is completed please report completion of the activity within 30 days though the WV State Bar Membership portal at www.mywvbar.org.

Course Name: 2018 Annual Oil and Gas Tax and Accounting Seminar; Course Date: 11/13/2018; Click here to view your course details.

Instructors: Don Nestor, Charlene Tenney, Ryan Nestor, Bill Phillips, Marlin Witt, Benjamin Ellis, and Scott Stone; Instructional Delivery Method: Group Live; Program Level: Update; Prerequisites: None; Advanced Preparation Needed: None; Who Should Attend: Oil and gas investors, operators, royalty owners, service companies and professionals; Program Description: This year’s presentation will include an update on Tax Reform and updates on not only various federal, state and local taxes, but will approach each area to explain how oil and gas investors, operators, royalty owners, service companies and professionals should maximize tax and economic benefits. Planning for current and future opportunities and challenges will be emphasized. ACT presenters will utilize their years of experience in the oil and gas industry to explain key tax benefits such as the Marginal Well Credit as well as standard tax issues that everyone in the oil and gas industry should be aware of and plan for; Learning Objectives: After completion of the course, participants will be able to address current accounting and tax issues in the oil and gas industry for themselves and their companies, have increased awareness of IT security issues, and maximize their tax benefits.

Arnett Carbis Toothman LLP is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org. For more information regarding refunds, program cancellation policies, or for any other concerns, please contact Jenny Meade at 304.346.0441, ext. 3492.

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

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Safety Seminar Sponsor Form

2019 Safety Seminar Sponsor Form Stonewall Resort and Jackson’s Mill, WV October 24-25, 2019 ____________________________________________________________ Company Name ____________________________________________________________ Contact Name _____________________________________________________________ Address _____________________________________________________________ City State Zip ____________________________________________________________ Telephone Email

Sponsorship opportunities: ______ Event Sponsor

$250

• Logo listed in signage, web site page and newsletter Please return this form to IOGAWV, address below, by October 10, 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

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Safety Seminar Registration Form

2019 Condensate/Natural Gas Liquids & Fire Safety Seminar Registration

Sponsored by IOGAWV, WVONGA and WVU Safety Extension Stonewall Resort, Roanoke, WV and Jackson’s Mill, WV October 24-25, 2019, 8:00 a.m. - 3:00 p.m. _____________________________________________________________ Company Name _____________________________________________________________ Address _____________________________________________________________ City, State, Zip _____________________________________________________________ Telephone Participant

Member Y/N

Email

Thursday evening social __________ @ $25.00 per person Friday seminar registration fee __________ @ $50.00 per person TOTAL $__________ Please mail registration with payment by October 10, 2019, to: IOGAWV, 300 Summers Street, Suite 820, Charleston, WV 25301 For additional information, call Lori Miller Smith at (304) 344-9867.

No refunds after October 10, 2019.

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

www.iogawv.com

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

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WV Tanks Conference Agenda

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WV Tanks Conference Registration Form

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