2020_January_IOGANews

The Voice of the

Independent Since 1959

NEWS

January 2020

2020 Scholarship Deadline is March 20 In 1997, the Independent Oil and Gas Association of West Virginia, Inc. (IOGAWV) established its Scholarship Program in an effort to become more involved in higher education in West Virginia. The Scholarship Program was specifically created to reward the outstanding scholastic achievements of high school seniors whose parents work in the oil and natural gas industry for IOGAWV membership companies.

Since the Scholarship Program’s inception, IOGAWV has awarded a total of $168,500 in scholarships to these very deserving students.

The Association also awards deserving high school “student

employees” who have completed a required number of working hours at an IOGAWV member company.

Beginning in 2020, there will be two scholarships awarded each year to students attending community college or vocational-technical education programs.

Complete eligibility rules for both scholarship types can be found on our web site at http://iogawv.com/ about/scholarship.aspx and have been sent to all member companies.

The completed application, including all required forms and information, must be signed by the high school counselor and postmarked no later than March

20, 2020.

IOGAWV will accept completed applications between Jan. 2, 2020 and March 20, 20. From all the applications received, an Chris Weikle IOGAWV Schol- Communication & arship Review Education Chair Committee will award a number of one-time only scholarships. Should you have any questions, please contact Dee Beane at 304-344-9867 or via email at dbeane@iogawv.com.

Full details and forms are available at www.iogawv.com.

Great Tuesday 2020 Winter Meeting Sessions IOGAWV’s Winter Meeting is the best-attended and largest industry event of the year, so make plans now to join friends, colleagues, legislators and professional contacts for this exciting two-day event. Mark your calendars and register now (see page 19) for January 21-22, 2020, at the Charleston Marriott Town Center Hotel.

A great lineup of dignitaries, industry personnel and speakers will make your two days in Charleston very worthwhile and meaningful.

Benefit your business by taking advantage of the sponsorship opportunities available. Simply fill out the sponsor form on page 18, visit www.iogawv.com or contact Lori Miller Smith for specific event

sponsorships. The potential exposure, educational and networking opportunities make this a great investment for your company.

Continuing IOGAWV’s commitment to providing the latest technological advancements, we are pleased that presentations will be made by Profire and Schlumberger Oilfield Services during the technical sessions from 9:00 a.m. to 12:00 p.m. on Tuesday. The afternoon sessions are sponsored by Encova.

There is no charge to attend these technical sessions.

The 8:00-9:00 a.m. breakfast and lunch later in the day are sponsored by Encova, Profire and Schlumberger Oilfield Services. The Producers’ Issues Breakfast, for

producers only, will take place at the same time in the Cumberland and Appalachian Rooms.

Technical sessions begin at 9:00 a.m., with presentations by Ben Sullivan Schlumberger Vice President Oilfield Ser& Program Chair vices, followed by sessions from Profire.

A special luncheon for past presidents and Gunslinger recipients begins at noon, as does the luncheon for technical session and Desk and Derrick Club attendees. John Winter Meeting Continued on page 14

INSIDE

Kevin Ellis / 2 Mark Clark / 3 Charlie Burd / 4 Greg Kozera / 5 Chris Weikle / 6 IPAA News / 6 Ad Contract / 7 Association News / 9 Industry Events / 10 Hugh Byers / 11 Chris Weikle / 12 Winter Meeting Sponsor Form / 18 Winter Meeting Registration Form / 19

2

Kevin Ellis IOGAWV President

Buy Low, Sell High Buying low and selling high. It’s the commonsense strategy that strongly influences business and personal investment decisions aimed to maximize the value of our economic activities.

For example, investing in a down stock market offers the long-term investor an opportunity for upside gains because the investor decides to buy assets with lower valuations.

A similar analogy is reflected in the way in which we manage our properties and homes. We seek the best deal on the buy side and take affirmative steps to increase its value by making repairs, by improving the productivity of the undeveloped portions of the land and through regular maintenance and upkeep.

We often make these decisions in the face of uncertain outcomes.

However, with respect to natural gas and its derivatives, the one constant is the abundance of supply in West Virginia. And this offers all stakeholders great upside.

Recently, oil and natural gas industry participants have made announcements regarding near-term development plans related to depressed market conditions unique

to the Appalachian Basin. These announcements reflect a business reality in our industry –­ slower growth, disciplined capital spending and disposing of non-core assets are necessary for market participants to endure the long horizon of over-supply and lower commodity prices. West Virginia’s natural gas and oil industry has endured these cycles for generations. Such is not a new phenomenon, although the scale is much larger given the tremendous capital investment required in the new era of horizontal drilling.

But these cycles also present opportunities. Our state leaders should seize on the opportunities in the current down cycle, and those include policies to incentivize new activity , and adopt laws and regulations which reflect the evolution of drilling and production methods associated with technology driven horizontal drilling.

The Appalachian basin, and specifically West Virginia, has an abundance of natural gas and natural gas liquids. Yet, West Virginia is not realizing the full potential. With respect to natural gas, we must take

Please register now for the 2020 Winter Meeting at www.iogawv.com

bold steps to create new, in-state demand, as well as appreciate that natural gas is a commodity in the world market to which the Appalachian Basin is a major contributor of natural gas.

Let’s create a regulatory environment that permits all industries in Buy Low

Continued on page 16

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. Co-chair David Haney Director/ Producers Issues Comm. Co-chair 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

Mark D. Clark Spilman Thomas & Battle, PLLC

Deep Well Spacing Rule Moves Forward

As we reported last June, the West Virginia Oil and Gas Conservation Commission (“OGCC” or “Commission”) published proposed revisions to 39 C.S.R. 1 addressing minimum spacing requirement for horizontal deep wells (“Proposed Rule”). A companion emergency rule was also filed, but then withdrawn before it became effective.

The Proposed Rule as originally filed in June 2019, did not provide for any specific spacing for horizontal deep wells, but established a procedure for obtaining “operational orders” for designated areas that could include spacing between horizontal deep wells. Despite the comments filed by IOGA-WV and the West Virginia Oil and Natural Gas Association requesting a default minimum spacing of 1,000 feet between the “productive intervals” of horizontal deep wells, the OGCC filed its agency-approved rule in late July 2019, with virtually none of the revisions requested in the industry comments.

IOGAWV continued to work toward improvements in the Proposed Rule that would encourage more efficient development of deep formations without unnecessary and burdensome regulatory restrictions. While IOGAWV’s efforts were ongoing, changes in the OGCC brought different ideas to the Commission. First, Michael McCown was appointed to an opening at the Commission in September 2019, which brought the Commission to its full complement of five commissioners. Shortly thereafter, Chairman Barry Lay resigned which created another opening on the

Commission. Governor Justice appointed Randall M. Albert to fill the position of Commission Chair.

The next step in the legislative rulemaking procedure was consideration of the proposed revisions to 39 C.S.R. 1 by the West Virginia Legislative Rulemaking Review Committee (“LRRC”). At its public meeting held on December 19, 2019, the LRRC voted to recommend to the West Virginia Legislature that the Proposed Rule be approved with modifications accepted and agreed to by the OGCC. The modifications included the addition of a number of definitions describing “operational order,” “productive interval” and “non-productive interval.” The more significant modifications from an operator perspective was the inclusion of default spacing for horizontal deep wells. The Proposed Rule as recommended by the LRRC provides, in part, as follows: “the productive interval of each new horizontal deep well shall be: (1) unless otherwise agreed to, no less than 1,000 feet from the productive interval measured perpendicularly from a previously permitted deep well operated by a different operator; (2) no less than 800 feet from the productive interval measured perpendicularly from a previously permitted deep well operated by the same operator; (3) unless otherwise agreed to, no less than 500 feet from a lease or unit boundary measured perpendicularly for wells where the adjoining lease or

unit boundary is operated by different operators; (4) no less than 400 feet from a lease or unit boundary measured perpendicularly for wells where the adjoining lease or unit boundary is operated by the same operator; (5) Provided, That the distance between the productive interval nearest the heel or toe of a new deep well shall be no less than 150 feet from the productive interval nearest the heel or toe of a previously permitted deep well and no less than 75 feet from a lease or unit boundary; and (6) Provided further, That no spacing limitations shall exist for non-productive intervals before or after the productive interval in a horizontal deep well.

And provided further, That in circumstances where two or more operators agree in writing to lesser spacing than required in subdivisions (1) and (3) above, such lesser spacing shall not be less than the minimum spacing established in subdivisions (2) and (4), respectively, above.

The impact of the Proposed Rule as approved by LRRC, is that operators will not be required to apply for a well location variance, and attend the compulsory hearing, if the well application complies with the spacing restrictions set forth above. This is a dramatic improvement over the current requirement that any operator proposing a well to be located within 3,000 feet of Deep Well Continued on page 14

4

Charlie Burd Executive Director, IOGAWV

From the Burd’s Nest: A New Decade – Opportunity, Hope, More Please allow me to begin by hoping each you had a wonderful Holiday Season and extend a wish for a most prosperous 2020.

IOGAWV enters the New Year and new decade with great optimism, seeded in past success. From an association perspective, IOGA continues to grow and add new members. Meeting attendance escalated to new highs in 2019 while many other trade associations saw declines. This success can, in my opinion, be attributed this to these key reasons: 1. BOARD AND COMMITTEE CHAIRS: The direct hands-on involvement of all Board Members and Committee Chairs to identify and address those issues that most greatly impact the industry and to embrace input from all members on how to best address these issues cannot be overstated; 2. RESPECT AND TRUST: The outstanding relationships, mutual respect and trust the Association leadership and lobbying team have successfully developed, earned and nurtured over many years with past and current Governors and their staffs, state agencies, legislative leadership and rank and file legislators--from both sides of the aisle has given us a proven and undeniable track record as “goto” leaders in our industry; 3. SUCCESSFUL MEETINGS: Year in and year out, the exceptional meeting venues and the remarkable line up of speakers with vast expertise in a wide variety of subject matters continue to seek us out to get in front of

our members and the industry for the benefit of all attendees regardless of business interests; 4. SPONSORS: YOU, our corporate sponsors, have historically and consistently come forward to make these meetings and venues the most successful in West Virginia and regionally; 5. SERVICE OFFERINGS: The well designed and managed Association insurance program and other service offerings, including a discounted workers’ compensation program, make us quite unique in the oil and gas industry; and 6. OUR STAFF: Finally, the IOGAWV staff, with over 50 combined years in association management (and well over 100 combined years of industry experience) is extremely knowledgeable, qualified and dedicated to the continued success of all IOGA activities, and endeavors.

From a communications perspective, IOGAWV produces: 1. IOGA News: The award winning IOGA News is an industry-specific monthly newsletter designed to provide up-to-date information to all members using a diverse set of authors and industry experts expressing views and opinions sought by our members.

2. IOGA Produces: The former IOGA Actions Alert system was recently rebranded to this new and improved format of membership alerts called IOGA Produces. This new alert system has proven highly successful in delivering timely and accurate information on a wide variety

of important messaging topics to producers and all members.

This alert system has been found to be MOST EFFECTIVE during the annual West Virginia Legislative Sessions when getting out factual information in a time sensitive manner is crucial to our legislative success.

3. IOGA Directory: We also continue to produce and distribute a one-of-a-kind annual membership directory that highlights all dues payers in a multi-tabbed format that provides a wealth of information on individuals and companies. It even includes a yellow-pages section to allow your fingers to “do the walking”!!

4. Annual Buyers Guide: We are currently in our fifth year of producing our annual “IOGA Buyers Guide.” This guide, subcontracted out to Strategic Value Media, is posted on the IOGAWV website homepage and presents dozens of service categories which you can browse to obtain information and needed services.

From a national perspective, IOGAWV is directly allied with the two best sources of help on issues that crisscross the entire oil patch on national issues: the Independent Petroleum Association of America (IPAA) and the Interstate Oil and Gas Compact Commission (IOGCC).

1. The IPAA represents the nation’s independent oil and gas producers in issues that affect virtually all West Virginia producers. IOGAWV’s Doug Burd’s Nest Continued on page 15

5

Greg Kozera Learned Leadership LLC

Unexpected Change: What Can We Do? It was a beautiful fall afternoon.

Sunny, cool and a great day for soccer. I was back on the field with my adult league team. I love the game. It’s fun being part of a team.

For years our adult league played on grass fields that were pretty rough.

I was thrilled to still be playing and being able to play on the new turf fields at Shawnee Park in Institute.

We played a good first half. Playing in the second half I felt strong and was having was a blast. I chased down a loose ball, planted my left foot and cleanly sent the ball up field with my right to one of my teammates. The next thing I knew, I was on the ground. As I laid there I knew I must have twisted my knee.

The trainer checked it out. There was no knee damage. He said, “Ice it. You’re done for the day.” They helped me over to the bench.

I cooled down, iced my knee and rehydrated. When I stood up to go to my car, the pain in my quads was tremendous. We headed to the emergency room. To make a long story short, after blood work, x-rays, CT Scan and MRI over several days it was determined I had a sports injury.

I ruptured tendons in both quads... not sure how that happened and neither did the doctors. Several said my age could be a factor. They did tell me we can keep our muscles in tone with training but our tendons and ligaments get brittle as we get older.

Surgery on both knees repaired the problem but no pressure on my legs for five weeks. That meant being in a wheelchair until I can graduate to a walker.

I’m used to change, but not this much change, this fast. When I left to go to the soccer fields that

afternoon I didn’t expect I to be in the hospital for over two weeks before I got home. I didn’t expect to be in wheelchair for weeks. I had no idea how difficult that would be.

I also didn’t expect to actually look forward to now being in a walker. I like being able to look out the back windows again and seeing the deer in our yard. It is also nice to be able to reach our coffee cups again. I didn’t expect to be canceling several business trips and several personal trips including a family ski trip and running a half marathon with my daughter. I also didn’t expect the outpouring of support and assistance from family, friends, church, soccer teams and colleagues. I was blown away.

I have learned a lot so far. Before the injury, I was very independent.

In the hospital for over a week, I couldn’t even get out of bed. I was dependent on others for almost all of my needs. That was tough. When I got to rehab after surgery and got my wheelchair I got my first taste of freedom. I could slide out of bed on a board and wheel myself to one of the day rooms or to therapy.

While I was in the wheelchair, I needed a lot of assistance. Initially, I even needed help in the bathroom. I couldn’t reach my clothes, our dishes and most of our food. Lynnda did a great job of putting things where I could reach them. It is hard to depend on others for basic needs.

Before the injury I could go where I wanted when I wanted. Now I need a driver. Since I’m in my walker at least I can at least get in and out of the car on my own.

I had to humble myself and ask for help. Looking back, I believe

the most important thing I learned from this experience is this: we need others. We need the assistance of others in so many ways. I understand the importance of team and working together. I like being part of a team.

This is one of the reasons I enjoy playing soccer. Even when we are part of a team we need to be willing to ask for help. Hopefully one of the things I have learned is to be more willing to ask for help when I need it. I don’t have to go it alone. People are more than willing to help. We also need to humble ourselves and be willing to accept help when it is offered.

What does this mean for you, your company and the oil and gas industry as we start a new year and a new decade? We are very independent. We are used to going it alone.

That is our nature and it has probably helped to make us successful.

Our industry is full of gunslingers.

We have heard many times from IOGAWV leadership that the challenge is to take a bunch of gunslingers and turn them into a posse (the Gunslinger Award).

The world has changed. Some of the things that made us successful in the past won’t keep us in business today. They definitely won’t take us to the next level if we want to grow. Just like me in the hospital bed or wheelchair, we need help. If we expect to see natural gas prices improve, we need increased demand.

We need industry to expand here and use our natural gas and NGLs instead of sending them out of state.

We need to encourage economic growth here.

Unexpected

Continued on page 15

6

Chris Weikle Communications & Education Committee Chair

Time Now to Plan for Your 2020 Advertising in IOGA News Your continued support of IOGA News through your advertising is greatly appreciated. We have enclosed a copy of the 2020 Advertising Contract. You will need to complete and return this contract by January 15, 2020 for your advertisement to be included in the February 2020 or later issues of IOGA News. For our current advertisers, a copy of your current contract and most recent ad are available from the IOGAWV office.

Ads must be paid in full by check

or credit card prior to publication.

For 2020, we are making a special offer to our current advertisers and meeting sponsors! For those who advertised in IOGA News, or who sponsored the Winter Meeting, Summer Meeting or Sports Weekend during the last 12 months, we’re offering you a 10% discount on your 2020 advertising in IOGA News. This will give sponsors who are not current advertisers the opportunity to ex-

pand their reach to this important market and keep your name and your products and services at topof-mind awareness for your current and potential customers.

Please see the form on page 7 to make your selections for 2020 advertising.

Please call Dee Beane at the IOGAWV office at (304) 344-9867 or email her at dbeane@iogawv. com for any questions regarding advertising opportunities.

IPAA News

WOTUS Repeal and Emission News Shared WOTUS Repeal Sent for Review

The EPA is moving forward with its plan to repeal a 2015 rule that impermissibly expanded the definition of "waters of the United States" (WOTUS) under the Clean Water Act. The agency, along with the Department of the Army are also re-codifying the longstanding and familiar regulatory text that existed prior to the 2015 rule, ending a regulatory patchwork that required implementing two competing Clean Water Act regulations, which has created regulatory uncertainty across the United States. This week EPA sent the replacement rule to the White House for interagency review (OIRA).

This is Step 2 of the agencies' repeal-and-replace process. The repeal is already facing court challenges,

both from environmental groups that supported the 2015 rule and from property rights activists. IPAA submitted comments on the "replacement proposal," the proposed revised definition of WOTUS, in April. EPA said last month that it expects to finalize the rule in January.

EMISSIONS NEWS

ICYMI - IPAA Endorses The Environmental Partnership

Over the past several years, managing air emissions at oil and natural gas production operations has become a high-profile challenge, one that we are meeting as an industry.

For decades, regulatory targeting of oil and natural gas production was limited because emissions were small relative to other industries and facilities were generally in remote locations. Then, changes began in 2009 as environmentalists sued EPA

for failing to properly review and revise New Source Performance Standards under the Clean Air Act. EPA responded by creating new regulations - first Subpart OOOO and later Subpart OOOOa - that not only significantly increased federal regulatory requirements on new production operations but opened federal regulation of existing facilities.

At the same time, the dramatic upswing in environmentalists’ focus on regulating greenhouse gas emissions drove the development of state regulations and shifted the attention of public scrutiny of oil and natural gas operations to methane.

These dynamics are spreading well beyond the regulatory arena. Shareholder initiatives have increased pressure on companies to define positions on managing emissions.

IPAA News

Continued on page 17

7

2020 Advertising Contract

2020 IOGA News Advertising Contract Advertising is available to member companies and nonmembers of the Independent Oil and Gas Association of West Virginia, Inc. in monthly issues of IOGA News. Please see below for details regarding ad sizes and rates.

Ad Sizes

Membership Pricing:

Frequency of Ad (Months)

Full page 3 columns (6 15/16”) wide x 9 1/4” deep Half page (vertical) 2 columns (4 9/16”) wide x 9 1/4” deep Half page (horizontal) 3 columns (6 15/16”) wide x 4 1/2” deep Quarter page 2 columns (4 9/16”) wide x 3” deep Business card (vertical) 1 column (2 3/16”) wide x 4” deep Business card (horizontal) 2 columns (4 9/16”) wide x 2” deep

Ad Sizes

Non-Membership Pricing:

1-4

$800.00/mo $525.00/mo $500.00/mo $300.00/mo $150.00/mo $150.00/mo

5-8

$750.00/mo $475.00/mo $450.00/mo $250.00/mo $125.00/mo $125.00/mo

9 - 12

$700.00/mo $425.00/mo $400.00/mo $200.00/mo $100.00/mo $100.00/mo

Frequency of Ad (Months)

Full page 3 columns (6 15/16”) wide x 9 1/4” deep Half page (vertical) 2 columns (4 9/16”) wide x 9 1/4” deep Half page (horizontal) 3 columns (6 15/16”) wide x 4 1/2” deep Quarter page 2 columns (4 9/16”) wide x 3” deep Business card (vertical) 1 column (2 3/16”) wide x 4” deep Business card (horizontal) 2 columns (4 9/16”) wide x 2” deep

1-4

$1,600.00/mo $1,050.00/mo $1,000.00/mo $600.00/mo $300.00/mo $300.00/mo

5-8

$1,500.00/mo $950.00/mo $900.00/mo $500.00/mo $250.00/mo $250.00/mo

9 - 12

$1,400.00/mo $850.00/mo $800.00/mo $400.00/mo $200.00/mo $250.00/mo

IOGAWV wants to assure that you get the best quality advertisement in the newsletter for your advertising dollar. To that end, we ask that you submit your color ad electronically in a 300 dpi (dots per inch) resolution PDF, TIF or EPS format. Ads saved as Word or Word Perfect documents, Excel spreadsheets or flattened PDF files will not give you a quality ad when printed professionally. If there are conversion issues with your file, our designer will contact you directly. Ads must be emailed directly to Tammy Stuck: dbeane@iogawv.com.

Ads can be run each month throughout the year or in any combination of months you choose. Please note there is a price break when you commit to a longer contract. Changes to your ad copy or cancellations can be made during the duration of the contract, but must be submitted 30 days prior to the next publication. (i.e, February 1st for the March issue). Please complete the information requested below and return this page, with payment, to IOGA News, IOGAWV, 300 Summers Street Suite 820, Charleston, WV 25301; email dbeane@iogawv.com. Ads must be paid in full by check or credit card prior to publication. Please call the IOGAWV office at (304) 344-9867 to discuss these options.

IOGA News Contract Company Name:_______________________________________________________________________ Contact Person:______________________________________ Phone:(_____)_____________________ Billing Address:________________________________________________________________________ City:____________________ State:_____ Zip:___________ Email:_______________________________ Run my ad for ______ month(s) starting in the month of ________________________.

My ad size (Check One): Please complete a separate contract for each ad you wish to run.

Full Pg. ___ ½ Pg. Vertical ___ ½ Pg. Horizontal ___ ¼ Pg. ___ Bus. Card Vertical ___ Bus. Card Horizontal ___ Payment Amount Enclosed: $______________ Approved by: _________________________________________ Date: __________________________

8

9

Association News

IOGAWV in State Journal: Advertise NOW The IOGAWV tab insert will be in the January 22nd issue of The State Journal. This insert is a great opportunity for IOGAWV members to shine the light on their business, as well as the industry that is moving West Virginia forward. There will be editorial copy as well, in addition to the advertising, to show how our industry is the HOPE for West Virginia’s future.

This advertising opportunity has been sent out to the membership. You would have received an email from either Jim Schumacher from email address Jschumacher@ statejournal.com or Lauren Mani

from lmani@statejournal.com.

Please contact the Account Representative listed here regarding this opportunity: Lauren Mani: 304-395-3483 The State Journal can invoice you, or you can prepay with a check or credit card.

Space reservations must be received by January 17. You can submit your own ad, or The State Journal staff will design one for you at NO COST, for placement in the IOGAWV insert.

If you choose to prepay with a check, please let Jim or Lauren know that as well. The check can be mailed to:

NCWV Media/The State Journal 324 Hewes Avenue Clarksburg, WV 26301.

Please call Lauren Mani at 304395-3483 with any questions or email her at Lmani@statejournal. com with your questions.

This is a great opportunity to share our industry’s story, but we need your help. Please purchase an ad in this special 16-page newspaper insert.

The State Journal reaches business leaders across West Virginia and the United States, so you won’t want to miss out on this opportunity to tell your company’s story to the state and nation.

Please watch for “IOGA Produces” alerts relating to legislative activities.

When we ask... we need YOUR help!

10

Industry Events

Mark Your Calendar for These Coming Dates January 8, 2020 Governor’s State of the State Address West Virginia Capitol Charleston, WV January 8, 2020 2020 West Virginia Legislative Session Begins West Virginia Capitol Charleston, WV January 8, 2020 Leadership West Virginia Legislative Reception Marriott Town Center Hotel Charleston, WV January 21-22, 2019 IOGAWV Winter Meeting Marriott Town Center Hotel Charleston, WV Info: www.iogawv.org February 5, 2020 NAPE Global Business Conference G.R. Brown Convention Center Houston, TX March 4-6, 2020 OOGA Annual Meeting Easton Hilton Columbus, OH March 14, 2020 2020 West Virginia Legislative Session Ends West Virginia Capitol Charleston, WV March 25-26, 2020 WV Construction/Design Show Charleston Coliseum Charleston, WV

April 20-21, 2020 Marcellus and Manufacturing Conference Marriott at Waterfront Place Morgantown, WV Info: www.wvma.com April 28-29, 2020 WV Governor’s Safety Conference Embassy Suites by Hilton Charleston, WV Info: www.wvsafetyconference.org May 17-19, 2020 IOGCC Annual Business Meeting Oklahoma City, OK Info: http://www.iogcc.ok.gov June 8-9, 2020 IOGAWV Science Teacher Workshop Embassy Suites by Hilton Charleston, WV Info: www.iogawv.com June 8-9, 2020 KOGA Annual Conference Embassy Suites -Lexington Green Lexington, KY Info: www.kyoilgas.org June 29-July 1, 2020 IPAA 2020 Mid-Year Meeting Newport Beach, CA Info: www.ipaa.org July 14-16, 2020 Tom Dunn Academy WV Wesleyan College Buckhannon, WV Info: www.iogawv.com August 2-4, 2020 IOGAWV Summer Meeting The Greenbrier White Sulphur Springs, WV Info: www.iogawv.org

August 12-20, 2020 NAPE Global Business Conference G.R. Brown Convention Center Houston, TX September 18-19, 2020 IOGAWV Sports Weekend Bridgeport/WVU Info: www.iogawv.org

Promote IOGAWV College and Vo-Tech Scholarships to your employees.

The deadline is March 20, 2020.

11

Hugh Byers Direct Energy

Nymex Natural Gas Futures Contract 12-Month Forward Strip Average Prices Through 12/17/2019

$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

1/2/2017 NG 24M

1/2/2018

1/2/2019

NG 36M

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

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12

Chris Weikle Communications & Education Committee Chair

Glenville State Hosted Terrific Fourth Annual IOGA Classic The fourth annual “IOGA Winter Classic Basketball Tournament,” sponsored by the Independent Oil and Gas Association of West Virginia, Inc., took place December 16-21, 2019, at the WACO Center on campus of Glenville State College (GSC), Glenville, West Virginia.

IOGAWV wishes to thank GSC Interim President Dr. Kathleen Nelson and GSC Foundation Executive Director David E. Hutchison for their efforts in coordinating and

conducting the tournament. Special thanks also go to Tournament Director Jim Hamrick for his efforts in working with the West Virginia Secondary Schools Activity Commission (WVSSAC) and securing nine outstanding high schools to compete.

The boy’s and girl’s high school basketball tournament brought together teams from Braxton County, Bridgeport, Calhoun County, Clay County, Gilmer County, Meadow Bridge, Nicholas County, Roane County and

Webster County High Schools.

The tournament provides exposure to high school student-athletes and proceeds from the tournament provide scholarships funded by IOGAWV to selected participants who plan to attend Glenville State College.

The six scholarships will be awarded to qualified seniors who will attend GSC and pursue a degree in relation to the support and development of the oil and gas industry.

Coaches from each participating team were provided scholarship rules and criteria in advance of the IOGA Classic Continued on page 13

IOGAWV President Kevin Ellis is shown with the girls’ championship team from Braxton County High School. The girls from Braxton County defeated the runner-up Bridgeport High School girls, shown below, by a score of 49-40.

This is just a sample of shoes collected during the IOGA Classic for those in need.

13

IOGA Classic Continued from page 12 tournament. The announcement of the scholarship winners will be made in the spring and will be announced here in the IOGA News.

Each nightly competition featured a student from a participating school

to sing the National Anthem, halftime entertainment from area youth athletes, concessions and sponsor tables with information and giveaways.

Students were given campus tours of Glenville State College each night

IOGAWV Office Manager Lori Miller Smith, far left, posed with the winning boys’ team from Bridgeport High School. The boys’ team from Braxton County, shown below, took runner-up honors in the IOGA Classic.

:=?-: 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

®

by the Office of Admissions along with a Q&A session.

You can see highlights of the event on Twitter @IOGACLASSIC. In the spirit of community service, Glenville State College and IOGA WV teamed up to host a “Soles for Souls” shoe drive and event attendees were encouraged to bring gently used shoes to donate to those in need.

Winners of the tournament included: • Girls’ Braxton County High School; and • Boys’ Bridgeport High School.

Over 300 student athletes participated in the tournament throughout the week.

“We are thankful for IOGA’s continued support for Glenville State College and the annual IOGA Basketball Classic.” said David Hutchison, Executive Director GSC Foundation. “It was great to have these high school basketball teams and over 200 student-athletes play at our beautiful WACO Center.

IOGA’s partnership allows us to support scholarships for student to attend GSC.” “It is exciting to see these young men and lady athletes getting the opportunity to experience playing and competing in a true college atmosphere,” said IOGAWV Executive Director Charlie Burd. “You could tell that every participate and parent took pride in being able to compete and participate in such an outstanding tournament.”

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Deep Well Continued from page 3 another deep well must apply for a well spacing variance and appear for a hearing before the OGCC. The Proposed Rule also provides additional flexibility to an operator with adjoining well units allowing for closer spacing to accommodate operational or geologic limitations. This same flexibility is available to different operators who agree in writing to the closer spacing limitations.

Another of the modifications to the Proposed Rule requires that deep

well units “be designed such that the area encompassing the non-productive interval(s) is included in at least one (1) unit; but overlapping unit boundaries should be avoided.”

This provision may result in some unusual looking unit boundaries, but appears to be intended to minimize waste and protect correlative rights of mineral owners.

The next step is consideration of the Proposed Rule, as approved by the LRRC, by the Legislature during

its 2020 regular session that begins on January 8, 2020. If adopted by the Legislature, the Proposed Rule is a very significant improvement over the existing 39 C.S.R. 1, and should promote more drilling in deep formations such as the Utica Shale.

If you have questions or comments regarding deep well spacing, please contact Mark Clark at MClark@ Spilmanlaw.com or Dave Yaussy at DYaussy@Spilmanlaw.com.

welcome reception from 5:30-6:30, and again on Wednesday for a full day lineup of dignitaries, industry personnel and speakers. There is a registration fee for Tuesday’s reception and Wednesday’s events.

This combination of outstanding speakers and cutting-edge technical sessions will make your two days in Charleston very worthwhile.

You can register and pay for the meeting and reserve your hotel room at the Marriott Town Center Hotel by visiting www.iogawv.com.

Be sure to make plans to attend our membership reception Tuesday evening and our legislative and membership reception on Wednesday, as well, since the West Virginia Legislature is in session.

Please click here to book your hotel room at the Marriott Town Center Hotel for a rate of $149 per night.

Please see page 19 to register for the meeting, or visit www.iogawv. com. If you have questions, please contact Lori Miller Smith at 304344-9867.

Winter Meeting Continued from page 1 Poffenbarger of the West Virginia Damage Prevention Board will speak on enforcement of the WV811 Dig Law. The IOGAWV Commerce Committee will meet from 1:00-2:30 p.m. in the Cumberland and Appalachian Rooms.

The West Virginia Desk and Derrick Club will meet from 1:00-3:00 p.m. in the Kanawha and Blue Ridge Rooms.

Afternoon sessions, sponsored

by Encova Insurance, will appeal to managers, HSE and human relations professionals.

“Marijuana in the Workplace” will be presented by Toney Stroud with Encova Insurance. Details on “Workplace Drug Testing” will be shared by Sandy Dingus, Drug Testing Centers of America. Dr. Steven Cody of Clayman & Associates, PLLC, will discuss “Mental Health Issues in the Workplace.” Alicia Bodden, PT, with Dynamic Works, will share information on “Work Injuries - How an Innovative Model of Care Can Benefit Both Employees and Employers.” The final afternoon session, presented by Pete Thackston of USI Insurance Services, will focus on “The Road to Recovery.”

Join us Tuesday evening for our

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Unexpected Continued from page 5 We have plenty of natural gas here in the Shale Crescent USA region.

If we were a country we would be the #3 natural gas producer in the world. This is the only place in the world where a petrochemical plant can be built top of the feedstock and in the middle of their customers. Local industries wanting to expand have told me, “We know there is plenty of natural gas in the region but I can’t get it to my plant.”

We need to change this. We need more local pipelines to get gas where it is needed. We need help!

We have the antis and the “keep it in the ground” crowd trying to shut everything down. They don’t understand petrochemicals. They conveniently ignore that in the last 10 years natural gas use has increased and pollution including CO2 has decreased in the USA. An inconvenient truth. We have a great story to tell but we can’t tell it if we expect anyone to believe it. Senior citizens, soccer moms, health care providers, manufacturers, veterans’ groups, even young people like college students can tell our story and be believed. We need their help. Are we

willing to be humble enough to ask?

Are we willing to accept help? For a bunch of gunslingers, this isn’t easy.

I would still be on my back or worse without help from others. I am where I am because of others.

I still had to do my part. I needed their training and assistance. I am blessed and grateful for all of the help and encouragement I have received. It still isn’t easy to ask for help. I want to be independent. I will need help to get back to running a half marathons by this time next year. Our industry needs help, too.

From the legislative perspective, there will always be a vast array of challenges to face. IOGAWV’s experienced lobbying team of Jim Fealy, Daniel Hall and myself--led by former IOGAWV President Phil Reale, are in routine conversation with Legislative Leadership and are constantly assessing the political landscape with regard to potential or proposed legislation that can place our producer members and other businesses in a more competitive position with those from other states and regions. The end goal is to create and achieve policies that

enhance the success of the oil and gas industry and your ability to run your business and make a profit.

With 2020 being an election year, we could face a very interesting legislative session.

From the regulatory perspective, you can be assured IOGAWV is covered by the best in the business.

IOGAWV corporate legal counsel George Patterson with Bowles-Rice LLP, will stay abreast of all corporate matters as well as legislative issues, gathering rate, and intrastate pipeline access and capacity matters, while FERC pipeline and access matters rest with Randall Rich of Pierce Atwood, LLP. Environmentally, Spilman Law has IOGA covered from a trifecta of attorneys that includes Mark Clark, David Yaussy and James Elliott.

As I close, please let me thank you in advance for your continued support of IOGAWV and its mission to provide the best service possible to its members. As detailed in this article, IOGAWV is uniquely poised for continued success as we enter this new decade--one of opportunity, optimism and hope.

Burd’s Nest Continued from page 4 Malcolm is regional representative and sits on the IPAA Board of Directors.

2. The IOGCC is a multi-state government agency comprised of state regulators and industry professionals that seeks to promote the conservation and efficient recovery of domestic oil and natural gas resources. I, Charlie Burd, am the First Vice Chair of the IOGCC for 201920.

IOGAWV is proud to be affiliated with both organizations from a leadership position.

Homestead Communications

getting YOUR message to the right people through award-winning public relations homestead communications po box 13604 | charleston, wv 25360 304.984.0308 | homesteadcommunications@frontier.com

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Buy Low Continued from page 2 the state the flexibility to choose its feedstock for heating, energy and manufacturing inputs through direct negotiations with producers. This will encourage additional investment in the way of new production to fill demand. New production could come with new drilling or through increased capital spending to rehabilitate older, conventional wells.

Let’s foster good tax policy. Since is a reduction in new wells being drilled and less production growth over the foreseeable future, a change in tax policy to incentivize new investments is a vehicle by which our State may encourage development activity that is not occurring presently. One example of such a policy is a temporary reduction in the severance tax rate for new wells. Other gas-producing states have taken similar approaches in their tax structures as a means of providing an incentive for capital investment and sustaining current levels of tax revenue from natural gas production.

Detractors will claim that such policies are “giveaways” to the natural gas and oil companies. However, nothing is further from the truth.

Again, these are activities that are not going to occur due to existing market conditions. We know that natural gas drilling and production activities support tens of thousands of West Virginia workers and their families, so why not stimulate new drilling and infrastructure investments through a short duration incentive program which will result in economic activity our state would not otherwise experience?

Similarly, the abundance of natural gas liquids in West Virginia presents significant opportunities in the downstream manufacturing and petrochemical sector industries. But state leaders must act now. If not, we lose the opportunity to realize the amazing potential this has to

diversify the economy of our state and give hope to the current and future generations of West Virginians who want to remain in our state as contributing citizens.. Bold actions are needed to put West Virginia on par with our surrounding states. For example, leaders in the Pennsylvania General Assembly are promoting policies that will incentive downstream manufacturing investments through use of in-state natural resources. Just south, West Virginia’s current business and inventory tax structure will acts as a deterrent to capital investments.

Let’s incentive the recovery of discretionary natural gas derivatives such as ethane. Today, as much as 40 percent of all the recoverable ethane in the Appalachian basin is rejected and remains in the gas stream. This is because market conditions are not favorable for discretionary recovery of ethane. If, however, West Virginia incentivized maximum recovery, use and storage of natural gas liquids through reasonable changes in tax policy, then West Virginia is more likely to attract new downstream and manufacturing investments. If we don’t act, we miss the opportunity.

It is time for policy leaders to fully embrace West Virginia”s natural gas and oil industry as the most im-

portant economic growth engine in decades.

The current down cycle in the production sector offers West Virginia an opening to “buy low” by incentivizing investments that may not occur for a long time if at all. The upside for our state is the potential for new investments, particularly in the downstream space, that would create new employment, construction of infrastructure and manufacturing facilities and generate tax revenues to state and local government which are currently not being created.

Proper policies, with appropriate limits on duration and scope, will have lasting, positive effects on West Virginia’s economy .

If we continue down the path of inaction, my fear, is that when we visit the economic, population trend, educational achievement, and state budget statistics a decade from now and we will tragically realize our failure to act at this unique juncture in time – where we can buy low and sell how in the future – is the root cause of why West Virginia has not realized a more diversified economy, reversed the out-migration of its young people and has been able to manage and sustain balance state budgets without general tax increases.

Please register now for the Winter Meeting on January 21-22.

See forms on pages 18-19.

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IPAA News Continued from page 6 Private capital funding has begun to request information on producers’ actions to control emissions. Major banks are initiating standards to determine under what circumstances capital will be directed to oil and natural gas operations. Groups like the Edison Electric Institute and the American Gas Association are engaging in the creation of a Natural Gas Sustainability Initiative that will rate the acceptability of natural gas suppliers based on greenhouse gas management commitments.

All of these actions compel additional attention to the management of emissions at production operations, particularly methane. Environmental lobbyists will continue to pressure regulatory initiatives and their efforts to affect capital availability will expand. Mitigating these efforts requires more innovative industry efforts. Part of those efforts is challenging the quality of the information that has been used to justify actions and IPAA is actively responding in that arena through Energy In Depth and aggressive re-

sponses to regulatory proposals. But, another path of action is voluntary efforts to manage emissions.

In 2017, the American Petroleum Institute created The Environmental Partnership “...to accelerate improvements to environmental performance in operations across the country.” Its initial focus has been to improve the management of air emissions, including both volatile organic compounds (VOCs) and methane. IPAA endorses The Environmental Partnership as a sound method for independent producers to engage in cost effective actions to limit air emissions. Since its inception, the Partnership has grown to 69 members about half of which are current IPAA members. Its purpose is to bring “..together American natural gas and oil companies of all sizes to take action, learn and collaborate in an effort to further improve ... environmental performance.”

The Environmental Partnership has developed three separate Environmental Performance Programs for participating companies

April 20-21, 2020 Marriott at Waterfront Place Mogantown, WV

to implement and phase into their operations. Participating companies are also provided the flexibility to implement the program in a manner the best suits their unique operations.

The three Environmental Performance Programs include: • Leak Program for Natural Gas and Oil Production Sources: Participants implement monitoring and timely repair of fugitive emissions at selected sites utilizing detection methods and technologies such as Method 21 or Optical Gas Imaging cameras.

• Program to Replace, Remove or Retrofit High-Bleed Pneumatic Controllers: Participants replace, remove or retrofit high-bleed pneumatic controllers with low-or zero-emitting devices.

• Program for Manual Liquids Unloading for Natural Gas Production Sources: Participants minimize emissions associated with the removal of liquids that, as a well ages, can build up and restrict natural gas flow.

In addition to its programs, the Environmental Partnership provides a platform for industry to collaborate with stakeholders and learn from one another. To join the program, companies agree to implement at least one of the Environmental Performance Programs and commit to targeted annual reporting. There are no fees to join the program or annual dues.

The Partnership was described in more detail at the recent IPAA Annual Meeting and materials describing it can be found at (https://theenvironmentalpartnership.org/) and the annual report at (https://files. constantcontact.com/8df2ce19301/ cd6611f0-e172-479d-ae17-e3bf77bdb99b.pdf If you have questions, please contact Lee Fuller and Matthew Todd, Program Director.

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Winter Meeting Sponsor Form

2020 Winter Meeting Sponsor Form Marriott Town Center Hotel, Charleston January 21-22, 2020 ____________________________________________________________ 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 January 10, 2020. 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

19

Winter Meeting Registration Form

2020 Winter Meeting Registration Marriott Town Center Hotel, Charleston January 21-22, 2020 ________________________________________________________________________ Company Name ________________________________________________________________________ Address _________________________________________________________________________ City State Zip ________________________________________________________________________ Telephone ________________________________________________________________________ Participant’s Name Member? ❏ Yes ❏ No _________________________________________________________________________ Email _________________________________________________________________________ Participant’s Name Member? ❏ Yes ❏ No _______________________________________________________________________ Email ________________________________________________________________________ Participant’s Name Member? ❏ Yes ❏ No _________________________________________________________________________ Email Please call the IOGAWV Office if you have special dietary needs.

Registration (fees cover all Winter Meeting activities except the GOpac Reception) Members: _____ Producers’ Issues Breakfast Meeting ONLY (for member Producers ONLY) (Tuesday, January 21) FREE! _____ Technical sessions ONLY (Tuesday, January 21) FREE! _____ Member early-bird rate of $275/person for Tuesday reception and all Wednesday events ($325 after 1/10/20) _____ Non-member early-bird rate of $475/person for all Tuesday reception and all Wednesday events ($525 after 1/10/20) _____ Student/faculty registration fee of $45/person for all Tuesday and Wednesday events ($70 after 1/10/20) _____ TOTAL DUE Please mail registration with payment by January 10, 2020, to: 300 Summers Street, Suite 820, Charleston, WV 25301.

NO REFUNDS AFTER JANUARY 10, 2020 For additional information, call Lori Miller Smith at (304) 344-9867. www.iogawv.com

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

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