2020 July issue of IOGA News

The Voice of the

Independent Since 1959

NEWS

July 2020

Members Elect Four to IOGAWV Board Four members of the Independent Oil and Gas Association of West Virginia, Inc., have been elected to fill three-year terms on the Association’s board of directors beginning in August.

The new board members are: Doug Douglass, Reserve Oil & Gas, Inc.; Michael Forbes, Greylock Energy; Jim Pritt, Putnam Natural Gas Company; and Eric Vir, Northeast Natural Energy, LLC. The four successful candidates will replace outgoing IOGAWV

board members: James W. Crews, MPLX (MarkWest); J. Kevin Ellis, Cow Run Energy; Sarah Smith, SLS Land & Energy Development and Todd Tetrick, Diversified Gas & Oil Corp. Although his term is ending, Ellis will serve one additional year as Immediate Past President.

Doug Douglass: Doug grew up in Clarksburg, WV, and attended Washington Irving High School before going to West Virginia University to earn his undergraduate degree followed by a law degree.

After receiving his law license in 1992, he began working as an Assistant Attorney General and assigned to represent 19 state professional licensing boards. In 1996, he became Executive Director and General Counsel of the West Virginia Board New Board Continued on page 15

Annual Membership Meeting Set for August 19 at Bridgeport Country Club

Unprecedented times call for unprecedented action. After much thought and deliberation, the Board of Directors of the Independent Oil and Gas Association of West Virginia (“IOGAWV) elected not to have the 2020 Summer Membership Meeting at The Greenbrier due to concerns over COVID-19. This decision was not taken lightly and I am quite disappointed to miss our keystone event.

However, our bylaws require an annual membership meeting.

Therefore, we hope you’ll join us for the Annual Membership Meeting on Wednesday, August 19, at the Bridgeport Country Club. The meeting will begin at 11 a.m. and be followed by a cookout lunch, adjourning at 1:00 p.m. We would like to thank Diversified Gas & Oil Corporation for sponsoring this meeting and the lunch.

This meeting is open to all members and partners of IOGAWV. Among other things, member companies participating in the insurance program will elect new Insurance Committee members during the meeting.

In addition, the Board of Directors, including the newly elected members, will be present. This is an opportunity to congratulate those newly elected and visit with other members of the Board.

IOGAWV will follow West Virginia Bureau for Public Health Department of Health and Human Resources’ emergency rules and protocols in effect at the time of the meeting.

Thanks to Diversified Gas & Oil Corporation’s sponsorship, there is no charge for you to attend this meeting. We do ask that you register

online at www. iogawv.com by August 7, 2020 or use the form on page 17.

According to Governor Justice’s Executive Order 42-40, Ben Sullivan dated June 4, Vice President and 2020, gatherings Program Chair of up to 100 people are permitted for purposes of any essential businesses and operations. Therefore, as of today, we can accept the first 100 registrations. Should this change in a future Executive Order, we will notify you immediately.

Rest assured, we’re planning to see you at The Greenbrier August 1st through 3rd, 2021 for a great 2021 Summer Membership Meeting!

INSIDE

Kevin Ellis / 2 Charlie Burd / 3, 4 Mark Clark / 5 Industry News / 7 Sam McKown / 8 Greg Kozera / 9 Thomas Downs / 10 Industry Events / 11 Ergon / 12 Hugh Byers / 13 Annual Meeting Registration / 17 License Plate Information / 18 License Plate Application / 19

2

Kevin Ellis IOGAWV President

IOGAWV Continues to Be a Considerable Value Proposition As we close out another fiscal year at IOGAWV, it is always instructive to look back at the collective accomplishments of the organization, as well as to identify opportunities going into the new fiscal year. And to be sure, FY20 was full of both. Let us start with a look at key successes. Unquestionably, due in major part to IOGAWV’s leadership and policy advocacy at the Capitol, the upstream oil and gas industry is the beneficiary of great new enactments. We have, of course, reported on these matters many times since, but they are worth repeating.

HB 4090, which changed the definition of marginal wells, reduced the taxes due on such wells and, importantly, directed that those monies paid by the industry will capitalize the state’s orphaned and abandoned well plugging fund.

This bill will undoubtedly impact every producer in West Virginia and provides the state Office of Oil and Gas a dedicated revenue stream to do the important work of plugging abandoned wells. Equally important is SB 802, which deals with the ability of a producer of natural gas in WV to enter into direct agreements for the delivery to and consumption by end users. The creation of new, in-state demand opportunities for natural gas produced in West Virginia is both an important accomplishment and an opportunity for future efforts.

Additional and significant legislation that IOGAWV worked on in collaboration with other stakeholders included HB 4091 (creating an administrative process for produc-

ers to obtain expedited well work permits for horizontal wells), HB 4311 (modifying spacing rules for “deep” horizontal wells to accommodate modern drilling practices) and a pair of bills (HB 4421 and 4019) dealing with tax incentives for downstream investment in facilities utilizing West Virginia produced natural gas liquids and derivatives.

Taken together, this year’s legislative session was a resounding success and a strong reminder to our members that the investments you make in IOGAWV are impactful and outcome-oriented.

IOGAWV also intervened in several matters at the WV PSC and FERC dealing with gathering line dispositions and abandonment petitions, general investigations and related matters. IOGAWV’s investment into these activities in FY20 through the procurement of legal services, expert witnesses and related expenses also resulted in important outcomes that will carry over into similar matters in the future – all to the benefit of IOGAWV members. For those members who are regular participants in Commerce Committee meetings, you know the value and importance of this key part of IOGAWV’s work on behalf of producers.

Finally, IOGAWV leadership responded immediately and aggressively to the COVID-19 pandemic by establishing a work group to deliver key information to members. As part of this effort, we have shared a number of Action Alerts on critical and timely topics related to the pandemic. In addition, we have delivered web-based

video conferences on the SBA Paycheck Protection Program and CARES program opportunities and with the WV Secretary of State, the WV Attorney General and the Chief of the WV DEP Office of Oil and Gas. And, plans are in the works now for other, similar virtual meetings to bring to you the most current and up to date information about how the pandemic may IOGAWV Value Continued on page 12

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

Charlie Burd IOGAWV Executive Director

Time Running Out on Getting a Dedicated Industry License Plate!!

For the past several months, IOGAWV has been asking its members (YOU!) to consider applying for a license plate dedicated to the oil and natural gas industry. WE ARE ABOUT 40 SHORT of hitting our minimum of 250 applications.

The West Virginia Department of Motor Vehicles (WVDMV) granted IOGAWV and WVONGA the right to pursue this customized WV State license plate dedicated to the oil and natural gas industry back in December 2019. At that time, the WVDMV provided exacting details on how securing such a customized license plate could be achieved and provided us with the official instructions and application (found on pages 18 and 19). MORE IMPORTANTLY, this triggered

a hard deadline of July 24, 2020, to have the 250 applications and fees submitted to the WVDMV. As of June 25, we have secured 209 applications and checks. That means we need at least 41 more applications! This should be an easy goal for such an outstanding industry! We have a hard deadline of July 24 and, if missed, the industry is locked out for two years before it can reapply for a plate.

PLEASE….complete the official application found on page 19 and submit it to IOGAWV with a check for $91.50 to cover the first-year cost of the customized plate.

Once IOGAWV accumulates the MINIMUM of 250 license plate applications and checks, it can then submit the applications and money to the WVDMV. It is at this point,

Remember to practice these safety measures to prevent the spread of COVID-19 to yourself and your family, coworkers, friends, neighbors and others: • Practice “social distancing” • Avoid contact with people who are sick • Wash your hands often with soap and water for at least 20 seconds (it’s longer than you think — try saying the Pledge of Allegiance twice or sing “Happy Birthday” twice, too).

• Use an alcohol-based hand sanitizer (at least 60% alcohol) if soap and water are not available • Avoid touching your eyes, nose, and mouth with unwashed hands

and only at this point, the WVDMV will assign its graphic artist to our project to design the plate with our input and approval.

Charlie Burd After lisExecutive Director tening to the many inquires as to why the oil and natural gas industry did not have its own plate, it is very surprising that we find ourselves darn near begging you to help this get accomplished.

This plate is important and shows others the importance of the oil and natural gas industry to the State and Nation. Natural gas is the future of West Virginia.

Having this plate identifies you, and your company, as part of the West Virginia oil and natural gas industry just as other specialty plates identify various other industries and special interest groups.

If we do not answer the call on getting another 40 or 50 application over the next few days, we miss this opportunity. Please, take time now to complete and submit the application. Make your check payable to: IOGAWV -- Special License Plate.

Send both the application and check to: IOGAWV C/O: Charlie Burd 300 Summers St., Suite 820 Charleston, WV, 25301 Please, let’s not allow this to slip through our fingers!

4

Charlie Burd Executive Director, IOGAWV

From the Burd’s Nest: To Infinity and Beyond!

This phrase, likely familiar to everyone reading this, is the famous catchphrase of “Buzz Lightyear” from the Toy Story films and the TV series Buzz Lightyear of Star Command. Buzz is that infamous brave space ranger action figure that works for “Star Command” and who has sworn to protect the galaxy from the “Evil Emperor Zurg.” In case you did not know, Buzz Lightyear was named in honor of Apollo l1 astronaut Edwin “Buzz” Aldrin, the second person to walk on the Moon.

In real life, on May 30, 2020, SpaceX made history when it launched into space carrying NASA astronauts Doug Hurley and Bob Behnken aboard its Crew Dragon spacecraft using a Falcon 9 rocket to rendezvous with the International Space Station. The launch is the final demonstration mission of SpaceX’s Crew Dragon and Falcon 9. Once this mission is complete, the launch vehicle will finally be certified for operational use for regular transportation of people to space. This is the first time ever that humans have been aboard a SpaceX vehicle as it previously delivered multiple cargo payloads to orbit.

Behnken and Hurley are the first people to make the trip with the private spaceflight company.

The Falcon 9 is a partially reusable two-stage-to-orbit medium-lift launch vehicle designed and manufactured by SpaceX in the United States. It is powered by Merlin engines, also developed by SpaceX, and propelled by burning cryogenic liquid oxygen and rocket-grade kerosene (RP-1), an especially clean kerosene. Both propellants are chilled under their regular tempera-

tures to increase their densities.

The BFR, the next generation of SpaceX rocket and currently under development, will use LOX and liquid methane (natural gas) to get a bit more efficiency; both again are chilled under their natural state for higher density.

Interestingly, 51 years after that historic July 16, 1969 launch of the Apollo 11 mission with its command and service module “Columbia” and lunar module “Eagle” sitting atop that Saturn V rocket, the fuel source for the May 30, 2020 SpaceX launch of its Crew Dragon spacecraft sitting above its Falcon 9 rocket was virtually the same RP-1. Thus, both historic achievements rest, in part, on the mid-1850’s discovery on how to process and refine kerosene from coal, then later and more cheaply, from petroleum.

Decades of rocket engine research and testing led to the Saturn V’s five Rocketdyne F-1 engines. “The F-1 remains the most powerful single-combustion chamber liquid-fueled rocket engine ever developed,” according to David Woods, author of How Apollo Flew to the Moon, 2008.

The Rocketdyne F-1 engines were fed 15,471 gallons of RP-1 per minute into their thrust chambers.

The Saturn V’s upper stages burned highly volatile liquid hydrogen (liquid oxygen was used in all three stages). The five-engine main booster held 203,400 gallons of RP-1. After firing, the engines emptied the giant fuel tank in 165 seconds. The Apollo 11 landing crowned liquid-rocket fuel research in America dating back to Robert H. Goddard and his 1914 “Rocket Apparatus” powered by gasoline.

Fast forwarding to May 30, 2020, the SpaceX also successfully launched then landed its first stage booster from the Falcon 9 (and also fueled by RP-1), which means it will recover the first private spacecraft booster that has ever delivered human astronauts to space. It’s been multiple decades since a human took off from U.S. soil on a brand new launch vehicle, and this is also the first time anyone has flown to space from an American launch site since the Space Shuttle program was officially retired in 2011.

We in the energy industry have always known that it is petroleum, and those thousands of products made from petroleum, that make the “world go around.” It’s just as exciting to know that it is petroleum and products made from petroleum that makes things “go around the world”!! As Buzz might say, “To Infinity and Beyond”--powered by petroleum”!!

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5

Mark D. Clark Spilman Thomas & Battle, PLLC

Pipeline Progress If you have been following the developments related to the construction of the Mountain Valley Pipeline (“MVP”) and Atlantic Coast Pipeline (“ACP”), you know that groups who oppose the construction of those pipelines (and any other natural gas pipelines for that matter) have had some success in slowing the construction of those pipelines. We can report some good news on that front because on June 15, 2020, the U.S. Supreme Court released its opinion that removes one impediment to proceeding with construction of both pipelines.

In the case of ACP, at issue was authorization to construct a 1/10th mile portion of the pipeline far under the Appalachian Trail within the George Washington National Forest where “the workstations for laying the challenged segment of the pipeline will be located on private land, approximately 1,400 feet and 3,400 feet, respectively, from the Trail. Atlantic plans to use a method of drilling that will not require the company to clear any land or dig on the Trail’s surface.

The entry and exit sites will not be visible from the Trail, nor will any detour be required. And, the final pipeline will lie approximately 600 feet below the Trail.”

In the consolidated cases United States Forest Service, et al., v.

Cowpasture River Preservation Association et al., and Atlantic Coast Pipeline, LLC, v. Cowpasture River Preservation Association, et al., the Court held “that the Department of the Interior’s decision to assign responsibility over the Appalachian Trail to the National Park Service did not transform the land over

which the Trail passes into land within the National Park System.

Accordingly, the Forest Service had the authority to issue the permit here.” Thus, ACP and MVP should have been allowed to construct their respective pipelines under the Appalachian Trail when the special use permits were issued in 2018.

Instead, Cowpasture River Preservation Association, Highlanders for Responsible Development, Shenandoah Valley Battlefields Foundation, Shenandoah Valley Network, Sierra Club, Virginia Wilderness Committee, and Wild Virginia filed a petition for review in the Fourth Circuit challenging the issuance of the special use permits.

They asserted that the issuance of the special use permit for the rightof-way under the Appalachian Trail, as well as numerous other aspects of the Forest Service’s regulatory process, violated the Mineral Leasing Act. The Fourth Circuit decided in favor of the opponents to the pipelines by taking the position that the U.S. Forest Service lacked authority to issue the special use permits. The Fourth Circuit decision necessitated the appeal to the U.S. Supreme Court.

The Court’s opinion identifies the various federal laws implicated in the case, such as the 1911 Weeks Act, the 1968 National Trails System Act and the 1920 Leasing Act. The opinion also provided a rather esoteric and lengthy explanation of easement law and rights which is a central basis for the decision. For those readers who are interested, a copy of the decision can be found at https://www.supremecourt.gov/opinions/19pdf/18-1584_igdj.pdf.

But the Court’s decision merely lifts one major obstacle to the 600mile pipeline, which could carry as much as 1.5 billion cubic feet of natural gas per day from West Virginia to buyers in North Carolina and Virginia. The $8 billion pipeline, a joint venture of Dominion Energy and Duke Energy, is still held up in court because the U.S. Court of Appeals for the Fourth Circuit has vacated several other permits necessary for the project.

Complicating the challenges to completing ACP and MVP is the fact that on May 11, 2020, the U.S. District Court for the District of Montana in Northern Plains Resource Council, et al. v. Army Corps of Engineers upheld its decision to vacate most aspects of NWP 12 and prevent the United States Army Corps of Engineers from authorizing pipeline construction activities using the nationwide 12 permit (See, article by Joseph Unger in the June edition of IOGA News). Since then the Ninth Circuit Court of Appeals denied a petition to stay the district court’s decision pending appeal because “Appellants have not demonstrated a sufficient likelihood of success on the merits and probability of irreparable harm to warrant a stay pending appeal.” Following that May 28, 2020 order, the West Virginia Attorney General, along with a group of other interested parties, filed a petition with the U.S. Supreme Court seeking a stay of the Montana District Court decision pending appeal. That request remains pending.

The ACP and MVP pipelines are important projects for providing additional markets for natural gas Progress Continued on page 17

6

7

The Honorable Patrick Morrisey West Virginia Attorney General

Attorney General Morrisey Leads National Efforts on Industry Issues Editor’s Note: These articles were originally shared on the web site of the West Virginia Record. Both articles were written by Kyla Asbury, the first on June 20 and the second on June 18.

WOTUS West Virginia Attorney General Patrick Morrisey praised a decision

by California federal court to uphold the Trump administration’s Navigable Waters Protection Rule.

Morrisey said that the California federal court agreed with the stance that a 23-state coalition led by West Virginia and Georgia took regarding the rule, denying a request to stop the rule from going into effect next week.

“Our motion to intervene in this matter ensures that our nation maintains high water quality standards while minimizing the regulatory and economic impact on farmers, job creators and landowners,” Morrisey said. “This is an important victory at an early stage in this case that makes us even more confident about the strength of our position as the case moves forward.”

Morrisey applauded the law.

“Upholding the Trump administration’s Navigable Waters Protection Rule will give greater certainty to farmers and landowners with predictable and reasonable lines between waters subject to federal and state regulation,” Morrisey said.

Morrisey also said the coalition of states felt the rule was balanced and responsible.

“West Virginia and our partners contended the Trump administration’s rule strikes the proper balance between the roles of federal regulators and states in protecting land and water resources in that it shows

respect for the primary responsibility and right of states to regulate their own water resources,” Morrisey said.

“The Trump administration rule also corrects flaws within the Obamaera regulation, which extended the authority of the EPA and the U.S. Army Corps of Engineers far beyond what Congress intended and the Constitution permits.”

U.S. District Judge Richard Seeborg noted in his denial order that the cities and states that opposed the rule were not able to demonstrate that it violated the Clean Water Act or that it caused enough damage to the environment to justify him issuing a preliminary injunction.

Pipelines West Virginia Attorney General Patrick Morrisey partnered with Texas Attorney General Ken Paxton and 16 other states to ask the U.S. Supreme Court to stay a court order that affects the construction of an oil and gas pipeline.

“The lower court transformed a case challenging application of a permit on one pipeline project into a nationwide injunction affecting new oil and gas pipelines in every state, including West Virginia — no matter their length, purpose or minimal environmental effects,” Morrisey said.

“This decision hurts real, everyday working people. The Supreme Court should pause this terrible order before it has far-reaching effects.”

With the lower court ruling, which brought about an unexpected halt to many construction projects, the 18-state coalition is arguing that without a stay to block its enforcement, it will disrupt the economy and the energy resources these types of projects provide nationwide.

The motion for leave to file an amicus brief and the brief were filed in the U.S. Supreme Court. The original lawsuit focuses on a U.S. Army Corps of Engineers permit that was used to authorize the Keystone XL pipeline.

The coalition contends that the district court order inappropriately used that issue to strike down all projects that employed the same permitting process. The 18-state coalition argues that the district court ruling will make needed infrastructure projects significantly more costly and time-consuming — and potentially render some completely unfeasible.

The court document notes that absent a stay, decision-makers for new oil and gas projects will face a lose-lose proposition.

“They could take the district court up on its alternative, sinking time and money into the individual permitting process, or they could wait to start construction until the Corps’ position is ultimately vindicated,” the document states. “Either option will potentially add years to the timelines of projects that require substantial capital investment.”

The states argue that some projects likely will not survive these setbacks.

“The district court was therefore too cavalier when dismissing these concerns as mere ‘temporary economic harms,’” the document states.

Editor’s Note: This is IOGAWV’s statement on the ACP decision.

The Independent Oil and Gas Association of West Virginia (IOGAWV) is pleased to acknowledge appreciation for the decision of Morrisey Says Continued on page 14

8

Sam McKown Membership Committee Chair

IOGAWV Board Approved Two New Members in June Please welcome these new members approved in June:

Huntington Drum Company ALL Todd Shell PO Box 9215 940 Adams Ave 10th St West Gate Huntington, WV 25704 Phone: (304) 525-7496 Fax: (304) 529-9230 Cell: (304) 544-5501 philiptoddshell@gmail.com www. huntingtondrum.com

WV Propane Gas Assn.

ASO Thomas Osina WV Propane Gas Association 107 S. West Street, #825 Alexandria, VA 22314 Phone: (888) 551-5454 wvpga@aol.com ww.wvpropanegas.org

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9

Greg Kozera Learned Leadership LLC

Break Out to Find Your Opportunity For over two months, Lynnda and I only went to the grocery store and physical therapy. Then it was time for us to “break out.” We got our hair cut for the first time since mid- March. We have been out to dine-in with friends at our favorite restaurants. We were surprised they weren’t crowded. It was easy to be socially distant. We are back to church wearing our masks and social distancing. We are putting money back into the economy for the salon people, the restaurant owners and their wait staff. We slipped over to The Greenbrier for a get-away anniversary trip. Our first overnight since March. There was no problem social distancing, even at the pool.

The staff all wear masks. I bought gasoline for the first time in weeks.

No surprise that gasoline prices are low, since demand is low. I had my first face-to-face (but socially distant) meeting with the Sr. VP of a company we are helping to expand in our region.

The world changed again! Our May speaker for our NSA (National Speakers Association) Ohio Chapter meeting was Mark, a young man in his 30s who built a 7-figure professional speaking business in less than five years after he left the military.

We scheduled him before Covid-19.

Our Chapter members who are all small business owners and professional speakers, trainers, consultants and coaches wanted to learn how he built his business. Because of the virus we had our meeting on Zoom.

Mark was in Arizona.

Mark opened with the apology, “How I built my business won’t work today.” Because of the virus, live meetings are canceled for

months. Mark is a keynote speaker.

No live meetings mean no keynotes for Mark and no money. Our Chapter members have the same problem.

Most saw six months of their business disappear in two weeks. The world of the professional speaker, just like the restaurant, hotel, airline and many other thriving businesses, fell apart overnight. When America went into lockdown, meetings, travel and most eating out stopped. We have no idea if, or how long, it will take to come back.

At NSA Ohio, we could have had a 3-hour pity party. Instead, Mark facilitated a brainstorming session with the entire Chapter. The focus wasn’t on the virus or the problem of canceled meetings. The focus was on the opportunities the problem presented. If most meetings were going to be virtual, how could our chapter members be part of them and get paid for their expertise?

Mark closed with a segment of his original pre-virus presentation. In the middle of a depressing market we all felt positive, energized and hopeful. We gained ideas we could use in our own businesses.

We can all learn from Mark and his attitude. We can focus on the problem or we can look for opportunity. Like we did at NSA Ohio, if you can surround yourself with like-minded people, a brainstorming session can be very effective. As the economy opens back up, are you focused on the problem and what you can no longer do? Are you focused on opportunity? To keep your attitude positive and your creativity high, make sure you surround yourself with positive people. Also watch what you allow into your brain. I

have had to minimize my exposure to movies, TV and network news programs that are negative.

Mark closed our Chapter year and my Presidency on a high we all needed. I conducted our first virtual awards ceremony. Our members deserved the recognition. The awards were all “Made in the USA,” purchased locally from and engraved by a small business owner in Pinch, W. Va. One of the opportunities for Shale Crescent USA is using radio interviews to get our message on the advantages of locating or expanding a business in this Region to all of the United States. We have done over 30 shows since mid-March from New York City to Tampa, Missouri and Michigan to California. Over half were nationally syndicated shows and one was an international show.

The reason I share this is to let you know for the first time in a long time, based on people across the country we talk to, Americans have something we all agree on. Republican or Democrat, urban or rural Americans agree, we need to bring manufacturing back to the USA, particularly from China.

People realize we are dependent on other countries for our PPE and medical equipment to protect our health care workers and citizens from Covid-19. Today 80% of our prescription medications come from outside the US, much of that from China. People across the country want high wage manufacturing jobs.

Suddenly “experts” on TV, radio and in print are saying what Shale Crescent USA has been saying for years, “We need to bring manufacturing Opportunity Continued on page 14

10

Thomas Downs WeatherBELL Analytics

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Our final summer forecast pushed the cooler zone to the south and east a bit.

Eastern zones should be wet, while it could be drier to the west.

In the summer, muggy conditions are expected along much of the East Coast, as rain should again be plentiful. The above normal temperatures there should be mainly because of warm nights, though there should be a fair share of hot days.

Hurricane season has gotten off to a fast start, with three named storms already impacting the U.S. before the first week of June was over. We expect an impactful hurricane season come later in the summer.

11

Industry Events

Important Upcoming Events August 11-27, 2020 Summer NAPE Global Business Conference Virtual Expo Format Info: www.napeexpo.com August 19, 2020 IOGAWV Summer Membership Meeting Bridgeport Country Club Bridgeport, WV Info: www.iogawv.com August 20, 2020 Divot Diggers Golf Outing and Steak Fry Tam O’Shanter Golf Club Hermitage, PA Info: Click here August 27, 2020 Appalachian Storage Hub Conference Hilton Garden Inn Canonsburg, PA Info: www.appastorage.com September 2-4, 2020 WV Chamber Annual Summit (Limited registration) The Greenbrier White Sulphur Springs, WV Info: https://wvchamber.com/ Events/2020-Annual-Meeting.aspx September 15-16, 2020 10th Annual Shale Water Management Congress Marcellus & Utica Returns Marriott City Center Hotel Pittsburgh, PA Info: www.shale-water-marcellus-utica.com

September 16-18, 2020 2020 SPE Regional Meeting Nemacolin Woodlands Farmington, PA Info: www.speeasternregional.org/ September 18-19, 2020 IOGAWV Sports Weekend Bridgeport/WVU Info: www.iogawv.com September 22 & 23, 2020 PIOGA Fall Conference and Golf & Clay Shoot Seven Springs Mountain Resort Champion, PA Info: Click here September 24, 2020 SOOGA Annual Trade Show Broughton’s Comm. Bldg.

Marietta, OH Info: www.sooga.org Sept. 29 - Oct. 1, 2020 Shale Insight Conference Bayfront Convention Center Erie, PA Info: https://shaleinsight.com/ October 8, 2020 Ted Cranmer Memorial Golf Outing and Steak Fry Wanango Country Club Reno, PA Info: Click here October 5-7, 2020 SPE Annual Technical Conference and Exhibition Colorado Convention Center Denver, CO Info: www.spe.org

October 12-14, 2020 WV Governor’s Energy Summit Stonewall Resort Roanoke, WV Info: tiffany.j.bailey@wv.gov October 14, 2020 PIOGA Annual Meeting Info: www.pioga.org November 5-6, 2020 WVONGA Fall Meeting Morgantown Waterfront Marriott Morgantown, WV Info: www.wvonga.com November 8-10, 2020 IOGCC 2020 Annual Meeting Houston, TX Info: http://iogcc.ok.gov/events December 1-3, 2020 Dug East David L. Lawrence Convention Center Pittsburgh, PA Info: www.hartenergyconferences. com/dug-east December 4-5, 2020 WV Manufacturers Association Winter Convention The Greenbrier White Sulphur Springs, WV Info: www.wvma.com February 17-18, 2021 IOGAWV Winter Meeting Town Center Marriott Hotel Charleston, WV Info: www.iogawv.com May 15-18, 2021 IOGCC Annual Business Meeting Skirvin Hilton Oklahoma City, OK Info: http://iogcc.ok.gov/events

12

Ergon

Monthly Appalachian Basin Crude Oil Prices

IOGAWV Value Continued from page 2 impact your business.

I have served on numerous boards across the state and I can say without question that IOGAWV’s value proposition is unmatched. The investments made by our members in IOGAWV are likely the most impactful and efficient service-related expenditures that you will make. So then, why have not all WV producers joined IOGAWV – good question. I suspect some will simply say the cost to join is prohibitive in these current market conditions. That is certainly a valid concern. However, just imagine if every producer decided not to support IOGAWV’s mission to advance favorable policies and intervene in real and important PSC/FERC matters. Each business would then be left without the

most logical and efficient vehicle to represent it on these important matters. By supporting IOGAWV, you are leveraging those investments to reduce your business expenses if you went it alone. Moreover, the organization’s ability to achieve future outcomes on behalf of its members is directly tied to the timely and increasing support from those who are direct beneficiaries of IOGAWV’s success.

IOGAWV is strong and will soon usher in a new board (albeit under quite different circumstances due to the pandemic) to start work in the new fiscal year. IOGAWV’s effectiveness is without question.

So, again, how can anyone in the upstream natural gas and oil industry in West Virginia NOT be a

member? The staff at IOGAWV is extremely diligent to engage potential members. However, each of you who truly have benefited from the achievements of IOGAWV can also play a role. Thank you for your past investments made in IOGAWV and we hope that you will not only continue those investments, but that you will make the case to others in the industry who are not members to join. The value proposition that IOGAWV delivers is unmatched but as headwinds pick up momentum in the upstream space, we must not let our guard down. Let us continue to tell the IOGAWV value story so that we can grow the base of active supporters to make these critical and efficient investments that lead to important outcomes.

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Hugh Byers Direct Energy

Nymex Natural Gas Futures Contract 12-Month Forward Strip Average Prices Through 6/24/2020

$3.80 $3.60 $3.40 $3.20 $3.00 $2.80 $2.60 $2.40 $2.20 $2.00

NG 12M

NG 24M

NG 36M

Bloomberg; CME; For Informational Purposes Only

Opportunities Continued from page 9 back to the USA�. Shale Crescent USA has hard data companies can use to justify expansion to the USA. With our advanced manufacturing and our abundant and economical energy, it is more profitable to manufacture here than anywhere in the world, especially for companies that want to sell products here.

This is opportunity in the middle of a disaster. Manufacturing PPE for health care workers like gloves, face shields and gowns is a good best place to start and is already happening. Companies are making ventilators and hand sanitizer. Solvay in Belpre, Ohio, is making a ventilator shield to protect healthcare workers.

Businesses can look for other products made overseas that can now be made cheaper in the USA. A product like a simple toothbrush, now made in China, can be made 22% cheaper in the Shale Crescent USA because

of our location, low feedstock cost and availability. Supply chains can now be Regional and secure, saving companies time and money. All it takes is one unavailable overseas component to shut down an assembly line.

What opportunities are there for you and your company? The reason why many companies want to locate in the Shale Crescent USA is because of our abundant and economical natural gas and natural gas liquids.

Because of our advanced manufacturing, the labor cost advantage many foreign countries like China had no longer exists. Most Asian countries need to import their natural gas and NGLs at a much greater cost than Shale Crescent USA. Our Region is the only place on planet Earth where a company can build on top of the feed stock and in the middle of their customers.

What are we doing as an industry to promote our natural gas advantage? Are we getting natural gas to everyone who wants it? Probably not. Are we marketing our products?

Natural gas is clean, economical and dependable. This is a time to create a bigger pie. There are potential residential, commercial and industrial customers. How many of these potential customers know the opportunity natural gas can give them?

In a down market, one way out is to increase revenue and market share by increased sales effort. Are we doing that? This should be a team effort.

Professional speakers realize they can generate revenue speaking across North America without leaving their office. What can your company do to grow business? Break out of negative thinking. Look for the opportunities. Change the future.

14

Morrisey Says Continued from page 7 the U.S. Supreme Court of Appeals on its decision which paves the way for the completion of the Atlantic Coast Pipeline.

As advocates of the oil and natural gas industry in West Virginia, IOGAWV works to strengthen the region’s economy through supporting infrastructure investment and the creation of good paying jobs with benefits to hard working and deserving West Virginia workers. With the Court’s blessing to proceed, this project will be an economic driver on many levels. It will sustain jobs and investment exploration, drilling, and production activities. It will help our basin to supply natural gas to fuel downstream industrial and petrochemical companies with abundant, clean burning, cost efficient West Virginia natural gas, and associated liquids. Industry employees live here, work hear, play here and raise their children here. They have an appreciation for the beauty of the Mountain State and the outdoor recreational experiences it provides.

The industry is a good steward of the environment.

We are excited for the news the Supreme Court decision brings.

With the greenlight to complete the pipeline so that WV can help supply markets in the mid-Atlantic that desperately need our gas. The producers and operators in WV truly appreciate the investment and determination of Dominion Energy, Duke Power and others in staying the course in the effort to provide energy where energy is most needed.

IOGAWV is very proud to do its part in support of the Atlantic Coast Pipeline.

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15

New Board Continued from page 1 of Pharmacy. He was recognized and honored for his work with the 2006 award as Non-Pharmacist to Contribute Most to Pharmacy Profession.

In 2007, Doug ventured into the oil and gas industry when joining Reserve Oil & Gas, Inc. as its Land Manager. There he directed Reserve’s land management operations for its conventional drilling program and affiliated pipeline companies.

In 2016 Doug assumed the role of Legal Counsel for Reserve. At that same time, he began consulting for

IOGAWV on oil and gas law, provided services on government affairs matters, drafted proposed legislation and developed fact sheets, served on the Commerce Committee, and served as Chairman of several Commerce Committee Subcommittees negotiating natural gas gathering and processing agreements. In addition to his duties to Reserve, Doug also serves as counsel for Roy G. Hildreth & Son and its associated oil and gas companies.

In October of 2019, Doug became Vice President of ConServ

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and helps to oversee all company operations providing energy and environmental contracting services to the major energy companies. He formerly served as a contractor advisor/agent for the NFL and Canadian Football League.

Doug is a proud father of Kyan, a Roane County High School student working on his Eagle Scout rank. He serves as the Committee Chairman for the BSA Spencer Troop 437 and also Chairman of the Roane County Unsafe Structure and Property Enforcement Agency.

J. Michael Forbes: Michael is executive vice president and CFO of Greylock Energy.

He joined the company after more than 30 years in the industry.

Forbes graduated with a Bachelor of Arts in accounting and finance from Glenville State College. He is a Certified Public Accountant (CPA) and holds a Master of Business Administration from Marshall University and is a graduate of Stanford University’s program for chief financial officers. Forbes is a former member of the board of directors for both Energy Corporation of America and Glenville State College. He also has served on the boards of numerous community organizations, including serving as first vice chairman of the board for Thomas Health Systems and past chairman of the YMCA of the Kanawha Valley. He resides in Charleston with his wife Melori and they have four children.

James B. (Jim) Pritt: Jim is a graduate of Glenville State College with an Accounting Degree who earned his MBA from Marshall University. He is a Certified Public New Board

Continued on page 16

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New Board Continued from page 15 Accountant (CPA) licensed in West Virginia and obtained his Professional Human Resources (PHR) designation at Xavier University.

Jim was employed by Energy Corporation of America for many years where he served as Manager of Accounting and Administration.

Jim worked with CDX Gas, Inc. as Manager of Accounting and Administration and later with Pinpoint Drilling and Directional as Manager of Business Development for their Northeast Operation. After leaving Pinpoint, Jim returned to EnerVest, Ltd. for many years as Manager of Marketing and Special Projects and later as Manager of Public Relations and Governmental Affairs for their Northeast operations. Jim is currently employed with Putnam Natural Gas Company where he serves as their General Manager and works with the affiliate companies of Teavee Oil and Gas, Inc. and Union Oil and Gas, Inc. Jim is active on IOGAWV’s Environmental, Safety and Commerce Committees and was active on the Governmental Affairs Committee.

He served as Co-chair of the Commerce Committee and Treasurer of IOGAWV during his previous term on the IOGAWV Board from 2015 to 2018. Jim is a past Board Member of the Ohio Oil and Gas Energy Education Program (OOGEEP) where he recently served as Treasurer and is the current Treasurer of Members Choice West Virginia Federal Credit Union.

Jim enjoys the outdoors and hunts, fishes, and golfs whenever he can.

He is married to Kristi and has two daughters and three grandchildren.

Jim loves working in an industry that has and will continue to provide citizens with energy in order to maintain their current and future standard of living.

Eric Vir: Eric Vir has served as Northeast Natural Energy’s Manager of Marketing & Transportation since 2015. In that role he is responsible for scheduling and marketing approximately 375,000 mcf/ day of production. Additionally, Eric oversees the hedging activity for the company along with coordinating Progress

the Investor Relation activity pertaining to gas sales and hedging. Prior to joining Northeast Natural Energy Eric spent 10 years with Energy Corporation of America (ECA). He started his career in the oil and gas industry in 2005 working as a runner/intern with ECA. After earning a degree in Accounting and Business Administration from the University of Charleston in 2007, he worked in various roles in the Accounting and Marketing Departments at ECA. Eric currently resides in Charleston, WV with his wife and three boys. In his spare time, he enjoys exerting all his energy raising his young family and hopes to find time to golf later.

Continued from page 5

produced in West Virginia, but more obstacles remain before the pipelines may be completed and gas begins to flow. If you have questions or comments regarding

this article, please contact Mark Clark at MClark@Spilmanlaw. com, Joseph Unger at JUnger@ Spilmanlaw.com, or Dave Yaussy at DYaussy@Spilmanlaw.com.

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17

Annual Meeting Registration

2020 Annual Membership Meeting Registration Form Bridgeport Country Club August 19, 2020 ____________________________________________________________ Company Name _____________________________________________________________ Address _____________________________________________________________ City State Zip ____________________________________________________________ Registrant’s Name ____________________________________________________________ Telephone Email ____________________________________________________________ Registrant’s Name ____________________________________________________________ Telephone Email ____________________________________________________________ Registrant’s Name ____________________________________________________________ Telephone Email ____________________________________________________________ Registrant’s Name ____________________________________________________________ Telephone Email

We would like to thank our sponsor for this event:

Please return this form to IOGAWV, address below, by August 7, 2020, or register online at www.iogawv.com.

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

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

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License Plate Application Instructions

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License Plate Application

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