2019 September IOGA News

The Voice of the

Independent Since 1959

NEWS

September 2019

O&G Festival Names 2019 Man of the Year Rusty Hutson has been named the 2019 Oil and Gas Man of the Year by the West Virginia Oil & Gas Festival board.

In addition to being recognized during a luncheon on Saturday, September 14, Hutson will serve as grand marshal of the traditional festival parade that afternoon.

The 51st annual West Virginia Oil & Gas Festival will take place September 12-14 in Sistersville. Attractions include oil and gas exhibits, entertainment, craft booths, demonstrating crafstmen and games.

Born and raised in West Virginia,

Hutson is the fourth generation in his family to immerse himself in the gas and oil industry, with family roots dating back to the early 1900s.

He spent many summers working with his father and grandfather in the state’s oil fields. He graduated from Fairmont State College with a degree in accounting and earned his CPA License in Ohio.

After college, Hutson spent 13 years steadily progressing into multiple leadership roles at well-known banking institutions such as Bank One and Compass Bank. His final years in the banking industry were

spent as CFO of Compass Financial Services.

Building upon his experiences in both oil and gas and the financial sector, Rusty Hutson Hutson established Diversified Gas & Oil in 2001. After years of refining his strategy, he and his team quietly took DGO public in 2017. He continues to lead his team and expand the company’s footprint throughout the Appalachian Basin.

Join Us For Sports Weekend Fun Sept. 13-14 Register now to join the fun at the 2019 IOGAWV Sports Weekend beginning on Friday, September 13, at Bridgeport Country Club.

Activities begin at 8:00 a.m. with registration and a full country breakfast with all the fixings sponsored by SLS Land and Energy Development.

The four-person scramble golf tournament features a shotgun start at 9:00 a.m. at the Bridgeport Country Club course.

For those who would prefer shooting sporting clays, arrangements have been made at A Mountain Clays, 1900 Meadowbrook Road, Bridgeport, beginning at 9:00 a.m.

Your $55 per person fee includes 100 rounds of sporting clays, sodas, water and snacks. Should you have any questions, please call Lori Miller Smith directly at (304) 344-9867.

A barbecue with all the fixings will

take place following golf and sporting clays at the Bridgeport Country Club. There will be skill prizes for the golfers and shooters and door prizes galore for all to win!

Come join us on Saturday, September 14, for the tailgate party, then cheer on the Mountaineers in the game against North Carolina State University. IOGAWV will not have tickets to the game; you need to make your own arrangements for tickets. The tailgate party, sponsored by Bowles Rice, will start 10:00 a.m. prior to the noon kick-off.

IOGAWV’s Sports Weekend attracts the main players and decision makers in our industry, in a setting that allows the participants to mix, mingle and network. As a leader in our industry, you recognize the importance of supporting IOGAWV,

and the benefits of promoting your company’s image. So not only will you want to attend this great event, but you may want to get even more Ben Sullivan recognition as a Vice President sponsor. and Program Chair By becoming a Sports Weekend Meeting sponsor at the bronze, silver, gold, platinum or diamond event levels, your company will receive special recognition throughout the industry by coverage during the event, in IOGA News, on www. iogawv.com and on sponsor boards posted throughout the meeting Sports Weekend Continued on page 12

INSIDE

Kevin Ellis / 2 Todd Tetrick / 3 Charlie Burd / 4 Mark Clark / 5 Hugh Byers / 6 Greg Kozera / 7 Membership / 8 Mark Taylor / 9 IPAA News / 10 Industry Events / 11 Industry News / 12 Ben Sullivan / 13 Desk & Derrick / 14 Ergon / 17 Summer Meeting Sponsors / 20 Sports Weekend Agenda / 22 Safety Seminar Registration / 23 Sports Weekend Sponsor Form / 24 Sports Weekend Registration Form / 25

2

Kevin Ellis IOGAWV President

Looking Forward to the Coming Year for IOGAWV With the 2019 Summer Meeting now behind us and a new slate of board members and officers in place, IOGAWV will once again refocus itself on key deliverables to its membership. Before we discuss what those are, I would like to congratulate and thank the immediate past president, Brett Loflin, for his outstanding leadership over the past fiscal year. As in any year, Brett’s tenure saw its own challenges and he delivered timely and clear guidance to those of us on the board of directors to make informed decisions in the best interest of IOGAWV’s members and the broader industry. Additionally, please thank the board members whose terms have just expired. They are Mike McCown, Rick Toothman, Sam McKown and Marc Monteleone. These individuals were key members of the board and we appreciate their contributions.

I would also like to introduce your newly elected board members and officers. The new board members are Maribeth Anderson (Antero Resources), Chris Weikle (SWN Production), David Haney (D.G. Haney, Inc.) and Jon Hildreth (Roy G. Hildreth & Son, Inc.).

With the installation of these new directors, IOGAWV’s board is now as diverse and talented as ever, reflected by the industry sectors that are represented and the expertise of those serving. The other officers serving with me are Vice President and Program Chair Ben Sullivan, Secretary/Treasurer Maribeth Anderson and Immediate Past President Brett Loflin. I look forward to

working with the board, staff and, of course, our membership.

Thanks to the outgoing leadership and board, IOGAWV finds itself operating with a sound budget. We must focus on discipline in our management of IOGAWV’s financial resources. We will also identify important priorities that may arise in which the allocation of resources is necessary. With financial discipline and flexibility in mind, IOGAWV will pursue one of the more aggressive policy agendas in years that will keep West Virginia competitive with our neighbors and with other production basins in the United States.

The policy preferences, changes in statute and rules that will be the focus of our Government Relations Committee and public policy advocacy team are critical to improve the business climate to foster growth and competitiveness. Improvements in policies that will maximize demand growth opportunities for natural gas and natural gas liquids here in West Virginia will drive much of our efforts. And, we must be relentless in our perseverance to achieve those objectives.

We will refocus our communications strategies to ensure that all West Virginians understand the value proposition that our industry brings to the state’s economy. As a principal driver of job growth, both direct and indirect, more and more West Virginia families are supported by this industry. We want to optimize the voices of these families and the employees who are working in the industry so that our state’s political leadership at all levels of

government understand that the natural gas industry provides the launching pad for future growth within the state’s economy and is the best prospect for quality work opportunities for our residents.

To summarize, the three legs to our stool include financial discipline and flexibility, aggressive advocacy for laws and rules that promote growth and to tell the story of our Coming Year Continued on page 17

2019-2020 OFFICERS BOARD MEMBERS J. Kevin Ellis President Ben Sullivan Vice President/Program Chair Maribeth Anderson Secretary-Treasurer Brett Loflin Immediate Past President James W. Crews Director Jon Farmer Director David Haney Director Jon Hildreth Director Jeff Isner Director Bob Radabaugh Director Sarah Smith Director Todd Tetrick Director Chris Weikle Director

3

Todd Tetrick Safety Committee

Condensate/Natural Gas Liquids & Fire Safety Seminar Oct. 24-25 Register now to attend this hands-on 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

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

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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 am-12:30 pm Lunch with keynote speaker from State Fire Marshal’s office • 12:30-3:00 pm Hands-on Fire Training (H.O.T.) and demonstration Please see the registration form on page 21 or visit iogawv.com to reserve your place at this important seminar.

4

Charlie Burd Executive Director, IOGAWV

From the Burd’s Nest: The “Real Green Deal” This last May, I presented this column to highlight the views of several far-left candidates that seek to win the upcoming presidential election and unseat President Donald Trump.

You likely saw most of those candidates when they participated in televised debates. Each promote or endorsed some form of the “Green New Deal.”

The Green New Deal (GND), is a name coined by journalist Thomas Friedman as he spoke in favor of the idea in The New York Times and The New York Times Magazine several years ago. As defined in Wikipedia, the Green New Deal (GND) is proposed United States legislation that aims to address climate change and economic inequality. The name is coined from 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.

The Green New Deal was written by Congresswoman Alexandria Ocasio-Cortez, from New York, and Massachusetts Senator Ed Markey and describes a series of large-scale proposals focused on eliminating U.S. carbon emissions and dependence on fossil fuels, while also revitalizing the U.S. economy. Has anyone forgotten the $500 million “Solyndra” failed solar investment?

The current draft text of the New Green Deal calls for the creation of a “Select Committee for a Green New Deal.” This select committee would have broad authority to “develop a detailed national, industrial, economic mobilization plan” to make the U.S. economy “greenhouse gas emissions neutral.” In addition, the Select Committee’s detailed na-

tional plan would also have the goal “to promote economic and environmental justice and equality.” The draft specifically mentions spending trillions of dollars over ten years funded from extensive tax increases and establish or augment regulations to steer the economy and society as determined by the Select Committee.

As a reminder from my earlier article, the American Action Forum’s (AAF) analysis shows the Green New Deal 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 cost of the GND program, including the jobs and “social justice” policies, would be $51.1 trillion to $92.9 trillion which equates to $316,010 to $419,010 per household.

So how about tossing the “Green New Deal” for the “REAL GREEN DEAL”? Yes, that’s right, the real green, more commonly referred to as MONEY, bucks, dough, bread, moolah, cheddar, paper, stash, loot and sawbucks—to name a few.

Money is used to invest, build, hire hard working individuals and create community wealth.

Travis Kavulla, Director, Energy for the National Review, calls the Green New Deal “outlandish.” He reminds us that nationally, oil and natural gas pro­ducers, refiners and marketers of oil and natural gas spent an estimated $184 billion in new capital investment in 2018 and that regu­lated energy utilities spent another $131 billion. Keep in mind,

these hundreds of billions of dollars are only the incremental capital spending for a single year, and they also do not include the costs of operating the system, which includes labor.

While I do not have the total amount of money invested in the oil and natural gas industry in West Virginia in 2018, I do have these publicly announced oil and natural gas dollar statistics: • $138.8 Million paid in 2018 in oil and natural gas severance taxes to the State of WV (and over $1.0 Billion since 2008); • $123.5 Million paid in FY 2019 in property taxes to WV Counties (and over $1.1 Billion since 2008); • $1.5 Trillion—yes trillion—in total oil and natural gas wages in 2017 and $936 Million paid through the second quarter 2018; • Total direct industry wages rose from $1.1 billion in 2016 to $1.5 billion in 2017, an increase of 36.4%.

• According to a 2017 Price Waterhouse Coopers report highlighting the impact of WV’s oil and natural gas industry in 2015, the industry added $8 Billion to the West Virginia state economy.

• Add to this the dollars generated from the thousands of indirect and induced jobs to support our industry.

That said, I’m way more about the “REAL GREEN DEAL” than I am about a misguided plan to eliminate the fossil fuel industry, the industry that has a major impact on our state and the nation in addition to providing for my family my entire 46-year career—and still counting!!!

5

Mark Clark Spilman Thomas & Battle, PLLC

Endangered Species Act Rule Revisions Announced In another move that may prove beneficial to the oil and gas industry and other industrial and commercial activities, President Trump's administration is implementing revisions to rules promulgated under ยง4 of the Endangered Species Act of 1973 (the "Act"), which are designed to protect animals and plants, including habitat areas, that are determined by the U.S. Fish and Wildlife Service (the "FWS") or the National Marine Fisheries Service (collectively the "Services") to be threatened or endangered. On August 27, 2019, the final revised rules were published in the Federal Register (84 FR 45020) with an effective date for the revisions of September 26, 2019 (the "Rule"). According to the Services, the revisions "clarify, interpret, and implement portions of the Act concerning procedures and criteria used for listing or removing species from the Lists of Endangered and Threatened Wildlife and Plants and designating critical habitat."

The Rule changes include modifying definitions related to "foreseeable future," "factors for delisting," and "designation of unoccupied critical habitat." For example, the Services will describe the foreseeable future "on a case-by-case basis, using the best available data and taking into account considerations such as species' life-history characteristics, threat-projection timeframes, and environmental variability." This approach will allow for flexibility and addressing issues more specifically instead of using a specific period of time to determine foreseeability.

In addition, the final rule creates greater flexibility in connection with designating unoccupied areas as

critical habitat. More specifically, the Services "will only consider unoccupied areas to be essential where a critical habitat designation limited to geographical areas occupied would be inadequate to ensure conservation of the species or would result in less efficient conservation of the species." The final rule provides that "critical habitat" will be designated by first evaluating the areas occupied by the species and only consider unoccupied areas to be essential "where a critical habitat designation limited to geographical areas occupied would be inadequate to ensure the conservation of the species." Thus, for an unoccupied area to be considered essential, the Services "must determine that there is a reasonable certainty both that the area will contribute to the conservation of the species and that the area contains one or more of those physical or biological features essential to the conservation of the species."

Also, significant is the removal of the words "without reference to possible economic or other impacts of such determination" in connection with the decision to list or delist a species as threatened or endangered.

The Services explain that the Act does not prohibit compiling information about economic or other impacts while also recognizing that the Act is clear that listing determinations must be made "solely on the basis of the best scientific and commercial data available."

At the same time and with the same effective date, the FWS revised regulations to "remove the prior default extension of most of the prohibitions for activities involving endangered species to threatened

species." Currently, if a species is designated as threatened then it is subject to the same default protections as a species designated as endangered. The revised rule removes this default provision and provides instead that at the time a species is originally listed or reclassified as threatened the FWS intends to finalize "species-specific section 4(d) rules" governing protection of such species. While FWS acknowledges that the Act does not require it to promulgate species-specific rules at the time of listing, it has expressed its intention to do so. In connection with this revised approach to threatened species, the FWS identifies the benefits, such as "removing redundant permitting requirements, facilitating implementation of beneficial conservation actions, and making better use of our limited personnel and fiscal resources by focusing prohibitions on the stressors contributing to the threatened status of the species." It is important to note that the rule revisions only apply prospectively, so any species listed as threatened as of the effective date, September 26, 2019, will continue to be subject to the prior regulations and the blanket protections.

Obviously, this article only scratches the surface, but the impact on this industry can be very positive over time as species are listed or reclassified from endangered to threatened. However, the flexibility included in the changes could be used by an administration to increase protections through species-specific rules.

Contact Mark Clark at MClark@ Spilmanlaw.com or Dave Yaussy at DYaussy@Spilmanlaw.com if you have questions.

6

Hugh Byers Direct Energy

Nymex Natural Gas Futures Contract 12-Month Forward Strip Average Prices Through 8/29/2019

$5.00

$4.50

$4.00

$3.50

$3.00

$2.50

$2.00

1/2/2013

1/2/2014

1/2/2015

1/2/2016 NG 12M

NG 24M

1/2/2017

1/2/2018

NG 36M

Bloomberg Finance L.P.; CME; For Informational Purposes Only

Please mark your calendar for the 51st Annual WV Oil & Gas Festival Sept. 12-14 in Sistersville honoring Rusty Hutson as the 2019 Oil & Gas Man of the Year

1/2/2019

7

Greg Kozera Learned Leadership LLC

The Green New Deal and What It Means to You: Engineer’s Thoughts For the last few months I have been a guest on radio programs across the country. People want to know about the Green New Deal (GND) and what it could mean to them. Local people have the same questions based on presentations like I did this week in Charleston.

Engineers must always deal with facts, good science and sound engineering principals. People’s best interests and safety are always top priority. Politics and personalities like Trump, AOC, Republicans and Democrats must be separated from engineering. Everyone is entitled to an opinion. They are NOT entitled to their own facts. Looking at what the GND document SAYS and then applying facts and sound engineering hopefully will help understanding.

The GND has a lot of parts. Here we will only focus on the centerpiece of the GND. The actual wording in the GND is in italics and quotes. My comments follow.

“The centerpiece of the Green New Deal is a commitment to transition to 100% clean, renewable energy by 2030. The transition to clean energy is not only a visionary plan for a better world, it’s absolutely necessary to ensure we have a world at all.”

According to the International Energy Agency (IEA), USA CO2 levels peaked in 2000. Since then they are DOWN 14%, the largest decrease of any country! Increased use of natural gas, cleaner coal, lower auto emissions and modern farming methods have all contributed to the decrease. Global CO2 levels are UP 43% since 2000.

Greatest CO2 increase is in Asia. As a leadership expert, if global CO2 really is a serious problem why isn’t

the rest of the World following our lead instead of trying to force the USA to do what Europe is doing.

Europe will soon be buying two 48 inch pipelines full of Russian fracked gas at Russia’s prices. We don’t want to do that.

“Going to 100% clean energy by 2030 means reducing energy demand as much as possible. This will require energy conservation and efficiency; replacing non-essential individual means of transport with high-quality and modern mass transit; and eliminating the use of fossil-based fertilizers and pesticides. Along with these steps it will be necessary to electrify everything else, including transport, heating, etc.”

Reducing energy demand won’t be a problem since after dark, we won’t have any electricity. My friends at The Ohio State University Agricultural Engineering Department told me, eliminating fossil fuel based fertilizers and pesticides means we won’t be able to feed the USA, much less the world.

“Studies have shown that there are no technological or logistical barriers to a clean-energy transition by 2030.

A British think tank recently put out a study saying that all fossil fuels could be eliminated in 10 years. The Jacobson plan – which, while only one potential approach, is currently the most detailed and well-known – would be met with 30.9% onshore wind, 19.1% offshore wind, 30.7% utility-scale photovoltaics (PV), 7.2% rooftop PV, 7.3% concentrated solar power (CSP) with storage, 1.25% geothermal power, .37% wave power, 0.14% tidal power, and 3.01% hydroelectric power.”

The “think tank” or the people who proposed the GND don’t

understand that in the Jacobson Plan only geothermal, wave, tidal and hydroelectric can be depended on 24/7. That is only 5% of electricity in “The Plan.” The other 95% depends on the sun shining and wind blowing which is not guaranteed 24/7. What will that mean for you? Schools will be going back to chalk boards and hard books. Computers and the internet will be history. The Jacobson plan has no fossil fuels. What happens after sunset? We have an average of 12 hours of darkness. Imagine a cold winter night with no electricity or natural gas. We can burn wood.

People in big cities don’t have that option. It you have health issues and need electricity you will be out of luck under GND. The manufacture of windmills and solar panels requires fossil fuels.

Oil and gas wells that need fracked are required to produce the petrochemicals needed. Electric cars require plastics. I discussed all of the products and medical equipment requiring plastic from fossil fuels last week. Windmills and solar panels require rare earth metals that come from China. Their mining and processing is a dirty process that creates radioactive lakes in China according to MIT. It is difficult for me to see clean green energy without wondering how many Chinese died to manufacture it.

Engineers need more than a “study” before implementing a new process or product. A pilot test is done to see if it really works. If 100% renewables work, we need to know where it has been done and what the result was. We know that GND: Engineer Continued on page 17

8

Membership Committee

IOGAWV Board Approved Five New Members in August Please welcome these new members approved in August.

Cardinal Natural Gas ALL John Elbert 220 Valley St. NW Abingdon, VA 24210 Phone: (276) 698-3127 Cell: (276) 608-6119 jebert@appnatgas.com

Encompass Energy ALL Services, LLC Mark Acree 1370 Washington Pike Suite 308 Bridgeville, PA 15107 Phone: (412) 564-5215 Cell: (330) 418-4211 m.acree@encompassservices.com www.encompassservices.com

Mason Dixon Energy ALL Services, LLC Chris Hartley 485 Dry Ridge Rd. Cameron, WV 26033 Phone: (724) 353-6189 info@masondixones.com

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

:=?-: 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

®

Nuverra Environmental ALL Solutions Charles Hamrick 11942 Veterans Memorial Hwy. Masontown, WV 26542 Phone: (304) 433-8735 charles.hamrick@nuverra.com www.nuverra.com Steve’s Welding ALL & Fabrication LLC Steve Byers Jr. 104 Chapel Street Weston, WV 26452 50 Jackson’s Mill Rd. Jane Lew, WV 26378 Phone: (304) 269-1635 Fax: (304) 997-8636 steve@wvsteveswelding.com

9

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.

Homestead Communications

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We are expecting a slow start to winter this year, with much of the fall expected to be warmer than normal. September should be a very warm month, though that could change if the remnants of a tropical storm stall out of the Southeast.

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.

Save Nov. 6 for IOGAWV Tax Seminar. Details soon.

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

Charleston, WV Morgantown, WV Winchester, VA

10

IPAA News

IPAA Highlights News You Need to Know IPAA Endorses Trump Administration Natural Gas and Oil Production Regulatory Revision

In response to the EPA’s announcement today of changes from the Obama-era methane regulations (the 2016 New Source Performance Standards [NSPS], Subpart OOOOa), including the change of the regulated emission from methane to volatile organic compounds (VOC), Independent Petroleum Association of America (IPAA) Executive Vice President Lee Fuller gave the following statement: “IPAA endorses the change because it would be far more cost effective with regard to the breadth of emissions sources. IPAA has consistently believed and recommended that a VOC‑based program is the appropriate pathway for regulating natural gas and oil production emissions. American producers are committed to managing their greenhouse gas emissions and continue to invest in the development of new technologies to mitigate and reduce emissions. These actions have and will continue to reduce methane emissions from natural gas and oil production operations.

“Under the EPA’s revision in the regulatory basis, new and modified sources would continue to be regulated. EPA’s 2012 Subpart OOOO were VOC based regulations – which regulated the larger components of natural gas and oil production emissions. Its Subpart OOOOa regulations can be appropriately revised.

“However, the hundreds of thousands of existing, small business-owned low-production wells wouldn’t be subject to inappropriate regulations that arise from a methane rule triggered by a little under-

stood section of the Clean Air Act (Section 111 (d)). This section of the Act would compel these small wells to use technology requirements for new facilities rather than requirements designed for older, existing operations.

“Moreover, existing facilities in ozone non-attainment areas have been subject since October 2016 to Control Techniques Guidelines (CTG) promulgated by EPA that has been weaved into state regulations, as new State Implementation Plans have been created to meet the National Ambient Air Quality Standards for ozone. These CTG use reasonably available control technology that recognizes the difference between new facilities and older, existing ones.

“Importantly, because of the poor quality of emissions data available for these low production wells, the Department of Energy is conducting a study to determine an accurate emissions profile, one that could be used to determine whether and what kind of cost-effective regulatory program would be appropriate for federal and state emissions controls of small wells.”

Background: • There are approximately 1 million oil and natural gas wells in the United States • Emissions from these wells make up 1.2 % of the U.S. Green House Gases Inventory • Of the 1 million wells, approximately 770,000 are low production wells, that produce 10 percent of total U.S. natural gas and oil, and make up about 10 percent of production-related emissions • As noted above, wells that are in the greatest jeopardy from the methane rule are the 770,000

•

low production wells. These small business wells are the most economically sensitive in the United States and are already facing economic challenges due to low commodity prices.

Of the remaining 230,000 wells, 125-150 thousand are subject to federal regulations under Subpart OOOO and, prior to 2012, substantial numbers were voluntarily using the same emissions control technology under EPA’s Gas STAR program. By the time an existing source regulation under Section 111(d) could be developed and implemented virtually all existing wells would be equipped with new source technology as a result of Subpart OOOO or would be low production wells.

EPA Clarifies Scope of Section 401 of the CWA

The U.S. Environmental Protection Agency (EPA) Administrator Andrew Wheeler announced on August 9 the issuance of a proposed rule to implement Section 401 of the Clean Water Act (CWA).

The proposed rule would clarify the certification process to promote the timely review of infrastructure projects. IPAA had urged EPA to provide this needed guidance in a May 2019 letter in which IPAA noted its support for the effective implementation of the CWA and protection of the nation's waterways. By clarifying the appropriate role for states and tribes, Sec. 401 cannot be used as a tool to block infrastructure development in states such as New York and Washington.

EPA's action will help ensure that projects requiring a Sec. 401 permit will be evaluated with the intended News to Use

Continued on page 17

11

Industry Events

Save These Coming Dates On Your Calendar September 11, 2019 Advancing Manufacturing with Automation and Robotics WV Mining and Industrial Extension Parkersburg, WV Info: www.wvmep.com

September 27, 2019 West Virginia Energy Infrastructure Summit Charleston Coliseum & Convention Ctr. Charleston, WV Info: www.eventbrite.com

September 13-14, 2019 IOGAWV Sports Weekend Bridgeport Country Club and Morgantown, WV

October 2-5, 2019 NARO National Convention 2019 Pittsburgh, PA Info: www.naro-us.org

September 14, 2019 WV Oil and Gas Festival Man of the Year Luncheon Sistersville, WV Info: festivalnet.com/5478/Sistersville-West-Virginia/Festivals/WestVirginia-Oil-and-Gas-Festival September 24-25, 2019 PIOGA Fall Conference & Annual Meeting Seven Springs Mountain Resort Champion, PA Info: www.pioga.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/

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

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12

Industry News

ShalePro Energy Services Appears on the Inc. 5000 for Third Time, Ranking 1027 Inc. magazine revealed in August that ShalePro Energy Services is No. 1027 on its annual Inc. 5000 list, the most prestigious ranking of the nation’s fastest-growing private companies. The list represents a unique look at the most successful companies within the American economy’s most dynamic segment—its independent small businesses. Microsoft, Dell, Domino’s Pizza, Pandora, Timberland, LinkedIn, Yelp, Zillow and many other well-known names gained their first national exposure as honorees on the Inc. 5000.

Headquartered near Canonsburg, PA, ShalePro was not only recognized nationally, but was listed as the fastest growing energy company in the state of Pennsylvania, the 25th fastest growing energy company in the nation, and the 8th fastest growing company overall in the Pittsburgh area.

“We are so proud to be included on this prestigious list for the

third time,” said ShalePro CEO Bill Johnson. “We are even more excited that this year, we rank #1 in the Energy sector in the state of Pennsylvania. I think it really speaks to the quality and safety of the work that our employees are providing day in and day out to our Production and Midstream customers throughout the Marcellus and Utica Shale formations.”

Not only have the companies on the 2019 Inc. 5000 been very competitive within their markets, but the list as a whole shows staggering growth compared with prior lists.

The 2019 Inc. 5000 achieved an as-

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tounding three-year average growth of 454 percent, and a median rate of 157 percent. The Inc. 5000’s aggregate revenue was $237.7 billion in 2018, accounting for 1,216,308 jobs over the past three years.

Complete results of the Inc. 5000, including company profiles and an interactive database that can be sorted by industry, region, and other criteria, can be found at www.inc. com/inc5000.

“The companies on this year’s Inc. 5000 have followed so many different paths to success,” says Inc. editor in chief James Ledbetter. “There’s no single course you can follow or investment you can take that will guarantee this kind of spectacular growth. But what they have in common is persistence and seizing opportunities.”

ShalePro Energy Services offers a full suite of best-in- class oil and natural gas field services spanning the Appalachian Basin – Marcellus/ Utica shale play, as well as basins across the U.S. They have more than 25 years of production and midstream industry experience and currently provide well hookup services, operate and maintain more than 2,000 wells, hundreds of compressors and associated facilities, hundreds of miles of gathering system pipelines and are available nationwide.

13

Ben Sullivan Vice President and Program Chair

Summer Meeting Draws Industry Leaders, Top National Speakers Nearly 400 members of the Independent Oil and Gas Association of West Virginia (IOGAWV) and their guests enjoyed several days of sporting activities, entertainment and educational sessions at the 44th Summer Meeting at The Greenbrier in early August.

Our members and their guests enjoyed friendly competition at the trap and skeet tournament, tennis tournaments and golf tournament.

Those not participating in athletic activities had a wonderful opportunity to enjoy lunch and a special golf lesson.

Monday’s business and educational sessions included: updates from Congressman David McKinley and Congresswoman Carol Miller, remarks from Senate President Mitch Carmichael and House Speaker Roger Hanshaw; industry updates from Jim Crews, MPLX, Pam Farris, Leadership West Virginia, and Abby

Esguerra, West Virginia University Extension Service.

Tuesday’s sessions included: Steven Winberg, U.S. Department of Energy; Kyle Mork, Greylock Energy; Toby Rice, EQT; Curtis Wilkerson, Orion Strategies; John

Deskins, West Virginia University; Jim Kane, USI Insurance; Charlie Burd, IOGAWV; and Philip A. Reale, Law Office of Philip A. Reale.

Please see additional photos on page 18 our gracious sponsors listed on pages 20-22.

The Summer Meeting opening event at Kate’s Mountain is always a well-attended event and this year was no different. Nearly all of the 400 registrants this year seem to be under the tent and in line for the amazing buffet!

SummerMeeting Continued on page 18

Our speakers included, from left: Brett Loflin, Steve Winberg, Kevin Ellis, Governor Jim Justice, Toby Rice and Kyle Mork.

14

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. Attached please find a donation 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 form on page 23 to register.

15

WV Desk and Derrick Club Sponsor Form

16

Sports Weekend Continued from page 1 venues. Diamond Event Sponsors receive a special recognition banner at your sponsored event, including your color logo as it appears in the program.

A block of rooms has been reserved at Courtyard by Marriott Bridgeport/Clarksburg for Friday and Saturday nights at a rate of $95 (plus tax) per room per night. To make reservations by Friday, August 31, call (304) 933-8051.

For those who would prefer to stay in Morgantown, a block of rooms has been reserved at Holiday Inn-University Area. The rate is $159 plus tax and to make reservations by Friday, August 31, call (304) 241-6649.

To register for the Sports Weekend, please use the forms on pages 22 and 23 and return them to the IOGAWV office or register online.

GOpac reminds everyone that this is one of two major fundraisers dedicated to support our industry’s state legislative lobbying efforts. To that end, you are encouraged to take the opportunity to contribute to GOpac.

Other than cash, contributions to GOpac must be made by personal check only. GOpac is a separate and distinct entity from IOGAWV.

Industry Intelligence. Focused Legal Perspective.

HIGH-YIELDING RESULTS.

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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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 - $57.38/bbl

$80.00 $70.00

$70.09

$70.72 $63.79

$60.00

$56.85

$50.00

$55.07

$51.48

$48.82

$60.89

$58.09

$57.50

$54.86

$40.00 $30.00

Series1

$20.00 $10.00 $-

Aug-18

Series1

Aug-18 $67.80

Sep-18 Sep-18 $70.09

Oct-18 Oct-18 $70.72

Nov-18 Nov-18 $56.85

Dec-18

Jan-19

Dec-18 $48.82

Jan-19 $51.48

Feb-19 Feb-19 $55.07

Mar-19 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

It’s not too late to register for Sports Weekend September 13-14, 2019!

Call the office at 304-344-9867 or visit iogawv.com.

18

Summer Meeting Continued from page 13

The Summer Meeting was a great time for family time, like the generations above, or for the next generation of future industry professionals shown below.

Our Monday speakers included Congressman David McKinley and Congresswoman Carol Miller. Below, members and guests enjoyed the Tuesday luau and fireworks at the pool. Shown lower right are Steve and Anne Winberg, Sharon and Bill Maloney and Kevin Ellis at Kate’s Mountain and at the bottom are folks having fun at Kate’s Mountain Sunday night.

19

GND: Engineer Continued from page 7 California and New England are nowhere near 100% renewables. Californians are paying $.25/ KWH and are already having brown outs. New Englanders are paying $.20/KWH compared to $.11/KWH in WV. The USA is the world’s #1 producer of oil and natural gas. Russia

is #2. If GND is implemented and we quit producing oil and gas, Russia will continue to drill and frack. With US oil and natural gas off the world market, global oil and natural gas prices will skyrocket and Russia will make billions of dollars.

The more we understand, the

better decisions we can make.

The GND has the potential to kill millions from starvation or lack of modern medicine. It will drive down our standard of living and destroy high-wage manufacturing jobs, forcing millions into poverty. We can’t remain silent. Our children’s and grandchildren’s future is at stake.

Coming Year Continued from page 2 most valuable resource – the hard working, smart and diligent West Virginians who are working within the industry.

This segment would not be complete without a tacit acknowledgement of the challenges we all face while in an imbalanced market.

From very small production companies to the largest, to midstream operators and service companies, we

all share the concern over a difficult commodities market. However, history tells us that our generational companies find ways to retool to adapt to new opportunities that keep people working. A silver lining to our depressed commodities market continues to be international demand opportunities (e.g. LNG) and the potential for domestic demand growth for natural gas liquids in

the downstream and petrochemical industries. And, we must be able to compete for our share of those markets as we know that other basins are also looking to capitalize. Our history demonstrates that we can adapt and find new ways to take advantage of these burgeoning opportunities. On behalf of your board of directors, executive committee and IOGAWV staff, we welcome the opportunity to serve you.

News to Use Continued from page 10 focus on water quality issues.

IPAA will submit comments on the proposed rule in late October.

Businesses facing ruin in pipeline fight.

Crain’s New York Business. After New York denied a water-quality permit for the Northeast Supply Enhancement Project, or NESE, in May, National Grid stopped signing up new accounts, as it had vowed to do if construction could not proceed. Nearly 2,600 residential and business customers have since been denied natural-gas hookups across National Grid's territory, which extends from Brooklyn and Queens to Staten Island and Long Island. Business leaders say environmentalists

and their allies in government are stifling development in those areas, just as they have in Westchester, where Con Edison has imposed its own moratorium on natural-gas hookups.

Advocates and some elected officials are accusing National Grid of manufacturing a crisis to get its way with regulators. Source: Energy in Depth: August 27, 2019

US Breaks Records to Become Global Leader in Oil and Gas Production

The U.S. energy revolution that’s taken place since 2000 catapulted the country to become the global leader in petroleum, including oil, and natural gas production in 2018, according to a recent report from the Energy

Information Administration: “Last year’s increase in the United States was one of the largest absolute petroleum and natural gas production increases from a single country in history.” As EIA explains, “U.S. petroleum and natural gas production increased by 16 percent and by 12 percent, respectively, in 2018, and these totals combined established a new production record. The United States surpassed Russia in 2011 to become the world’s largest producer of natural gas and surpassed Saudi Arabia in 2018 to become the world’s largest producer of petroleum.” Source: William Allison // Researcher, Washington DC, August 20, 2019

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Summer Meeting Sponsors

Thanks to Our Summer Meeting Sponsors 2019 Summer Meeting Diamond Sponsors

2019 Summer Meeting Platinum Sponsors

21

Summer Meeting Sponsors

Thanks to Our Summer Meeting Sponsors 2019 Summer Meeting Gold Sponsors

2019 Summer Meeting Silver Sponsors

Homestead Communications

22

Summer Meeting Sponsors

Thanks to Our Summer Meeting Sponsors 2019 Summer Meeting Bronze Sponsors

Sports Weekend Agenda

2019 Sports Weekend Agenda Bridgeport Country Club/Mountaineer Field Friday, September 13, 2019 8:00 a.m.

9:00 a.m.

9:00 a.m.

2:00 p.m.

Registration (breakfast will be served) Breakfast Sponsored by SLS Land & Energy Development Shotgun-start Golf Tournament (Bridgeport Country Club) Sporting Clays (A Mountain Clays, 1900 Meadowbrook Road, Bridgeport, WV) BBQ lunch (Skill Prizes and Door Prizes) – Time may vary

Saturday, September 14, 2019

10:00 a.m. Tailgate Party – 2 hours before game time (Sponsored by Bowles Rice)

Will be located in Upper Tent City (directly across from the Blue Lot from the hospital) 12:00 p.m. Kick-off WVU vs NC State

23

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

24

Sports Weekend Sponsor Form

2019 Sports Weekend Sponsor Form Bridgeport Country Club and Mountaineer Field September 13-14, 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 August 30, 2019. Be sure to email a high resolution (300-dpi minimum) version of your company’s color logo 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

25

Sports Weekend Meeting Registration Form

2019 Sports Weekend Registration Bridgeport Country Club and Mountaineer Field September 13-14, 2019 Please mail this registration form

___________________________________ with payment by August 30, 2019 Company Name to: 300 Summers Street, Suite 820

___________________________________ Charleston, WV 25301 Address

Early registration ends Aug. 30;

___________________________________ after that, add $25.00 per person City, State, Zip No Refunds after Aug. 30, 2019

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

Name

Employer

Member Y/N

Golf

Sporting Clays

Contact person for foursome:

Registration Fees

__________ @ $ 80.00 per member/ __________ @ $150.00 per non-member Golf - Greens fees and cart __________ @ $ 70.00 per person Sporting Clays __________ @ $ 55.00 per person Tailgate Party __________ @ $ 10.00 per person TOTAL $ __________ 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