2020 May issue of IOGA News

The Voice of the

Independent Since 1959

NEWS

May 2020

IOGAWV Board Nominations Announced Six members of the Independent Oil and Gas Association of West Virginia, Inc., have been nominated to fill four (4 ) three-year terms on the Association’s Board of Directors. Election ballots are due and must be postmarked no later than June 8, 2020.

The Board nominees are Doug Douglass, Reserve Oil & Gas, Inc.; Steve Downey, EnerVest Operating, LLC; Michael Forbes, Greylock Energy; Greg Hoyer, EQT Corporation; 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, EnerVest Operating, LLC. Although his term is ending, J. Kevin Ellis, Cow Run Energy, 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 and earning his undergraduate

Political Science degree followed by a law degree.

After receiving his law license in 1992, Doug began working as an Assistant Attorney General and assigned to represent 19 state professional licensing boards.

In 1996, Doug became Executive Director and General Counsel of the West Virginia Board of Pharmacy, directing all state agency operations Nominees Continued on page 16

New Est. Severance Taxes for Marginal Wells House Bill 4090, signed into law on March 25, reduces the severance tax on oil and gas produced from marginally producing wells, excluding any marginally producing wells utilizing horizontal drilling techniques targeting shale formations. Effective for taxable periods beginning on or after January 1, 2020, West Virginia’s 5% severance taxes on oil and gas are reduced to 2.5% for production from qualified oil and gas wells. The 2.5% severance tax paid on marginal wells will be deposited in the newly created “Oil and Gas Abandoned Well Plugging Fund” and used to plug abandoned oil and gas wells.

The wells affected by the severance tax reduction produce on average more than 5 Mcf of natural gas or one-half barrel of oil per day, and on average less than 60 Mcf of nat-

ural gas or 10 barrels of oil per day.

Gas wells producing on average less than 5 Mcf per day and oil wells producing on average less than onehalf barrel per day remain exempt from state severance tax. The marginal well tax is determined based on average monthly production.

The monthly average is calculated by dividing total annual production in a calendar year by 12.

The State Tax Department informs us that while the estimated tax form has not changed to reflect the change in the severance tax for marginal wells, there are temporary special instructions which address the retroactive change. For wells that qualify, the special instructions basically tell producers to calculate their estimated severance tax by multiplying their gross proceeds

of sales from 2019 marginal wells by 50% and adding that amount to the gross proceeds from non-marginal wells. The sum is entered Sarah Smith on Line 3 of the Governmental Affairs estimate form Committee Chair for gas wells and line 2 for oil wells. Calculated in this manner, your estimate is of 5% on horizontal shale wells, and 1/2 that amount, i.e., 2.5%, on qualifying marginal wells.

This is the link for the instructions.

This is the link to HB-4090.

If you have questions or need clarification, you may contact Lydia McKee at Lydia.S.McKee@wv.gov.

INSIDE

Kevin Ellis / 2 Steve Hedrick / 3 Charlie Burd / 4 Mark Clark / 5 Industry Events / 6 Ergon / 7 Association News / 7 Greg Kozera / 8 Charlie Burd / 9 Jeff Isner / 10 IPAA News / 11 Dennis Xander / 12 Hugh Byers / 12 Thomas Downs / 13 License Plate Information / 18

2

Kevin Ellis IOGAWV President

IOGAWV Members Taking Steps to Protect All from COVID-19 As president of the Independent Oil and Gas Association of West Virginia (IOGAWV) it has been extremely fulfilling to witness, firsthand, how seriously our members protect the safety of their employees and families, their contractors and the citizens in the communities in which they live and work. That has been especially evident during the COVID-19 pandemic, a time of unprecedented challenge to every citizen and to every aspect of industry and commerce.

Beginning back on April 3, 2020, IOGAWV developed a special landing page on its web site devoted solely to the COVID-19 pandemic.

This page has been updated virtually every day since then to provide our members and others with the most current information on the pandemic and its impact on you and the industry.

Inside the landing page, there are specific sections designated to breaking news and recent news, executive orders as dictated from Governor Justice, links to business, industry and government sources, plus news and outreach from our entire Congressional delegation.

I want to personally thank Diane Slaughter, Homestead Communications; Danny Forinash, Charles Ryan Associates; Associated Systems Professionals (ASP); and IOGAWV’s own Lori Miller Smith for their tireless work to get this portal developed, populated with crucial information and activated within less than 24 hours from its inception. If you have not visited the site, please do so at this link: https://iogawv.com/covid-19/

As we proceed to navigate through this sea of uncertainty, it is encouraging to see that Governor Justice has laid out his six-week plan entitled: WEST VIRGINIA STRONG-The Comeback, that will be implemented over the next six weeks, and contingent upon on a number of factors designed to move the State forward. This plan will have a direct impact on our producers and operators, as well as those businesses that serve them.

In addition, IOGAWV is working closely with state government leaders to provide information to its members regarding activities that we hold as fundamental – voting in elections. As part of this effort, IOGAWV sponsored a live conference call with Secretary of State Warner and his elections team to address questions about the primary elections, which were delayed until June 9, 2020. We have also stayed in close contact with Attorney General Patrick Morrisey, who similar to Secretary Warner, held a live conference call for IOGAWV members to discuss how the AG’s office is monitoring developing legal trends in the oil and gas industry as well as societal restrictions applicable to all in response to Covid-19.

Finally, we know that IOGAWV members are great and generous individual and corporate citizens who support their communities.

And to highlight some of the benevolent acts that support those communities and not-for-profit organizations, the Association has posted a very short survey seeking information on how you and your employees are helping others during

this time. I personally ask that you complete the survey and share your good work to the benefit of all members.

It also goes without saying that IOGAWV commends all law enforcement, military, healthcare and emergency service workers at this time of critical need for the State and Nation.

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

Steve Hedrick MATRIC

Innovation Key to Defeating Pandemic

The past few weeks and months have put life into perspective for everyone, regardless of geography, age, race or income.

We’ve been forced to identify the difference between wants and needs for ourselves and others around us. We’ve realized what real needs are, such as life-saving tools and resources for front-line workers to help combat the coronavirus. From ventilators to surgical gowns to N95-equivalent masks to even hand sanitizer. There was and continues to be a need and demand for these items.

Being a critical part of producing everyday essentials for people isn’t new to the chemical industry.

Touching 96% of all manufactured goods, the chemical industry was deemed “essential critical infrastructure” by the U.S. Department of Homeland Security.

Companies and leaders are stepping up to be part of the solution, donating money and supplies. Even more impressive is the companies finding ways to think and operate differently, to be a part of the solution in ways they never thought they would have to. Using criti-

cal-thinking skills in a different manner, they’ve developed new ways to continue operations, be it remotely or otherwise in some cases, to get the job done in the face of adversity.

This demand — the need — to produce goods for a greater cause has induced wonderful innovation.

It’s innovation at its finest.

Innovation — thinking in new and different ways. Developing new processes. Identifying new products or services. Acting differently based on new inputs. Adapting a supply chain. Finding a way to be a part of the solution.

The innovation occurring in the science, technology and manufacturing industries is for the good of all, and it’s inspiring to experience.

It is occurring at a pace that, in recent years, has been stymied by lack of resources, possibly the lack of a true rallying need or by a thought process that was not driven to move with decisive speed and effect.

The chemical and discreet manufacturing sectors, working in unison for a common purpose, are delivering needed goods they do not normally make, and they’re doing so

:=?-: 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

®

at a staggering pace.

Companies such as Dow are manufacturing much-needed hand sanitizer for emergency responders in a safe and environmentally sound manner by repurposing reaction trains that were never intended to manufacture this product.

Companies like Eagle Manufacturing, part of the Justrite Safety Group, are working day and night to help deliver much-needed personal protective equipment in the form of masks to our National Guard. This is something they’ve never made before.

And I’ve seen parts for face shields and masks being produced on 3D printers, something that would not have even been possible just a few short years ago.

There are millions of other people and thousands of other companies making change happen to help us win against this unprecedented global crisis. And I am proud of the people who work at MATRIC, everyone from our most senior leaders to our newest hire. They refuse to stop asking the question, “How can we help?”

Innovation matters to — and for — us all. Innovation in all its forms allows critical thinkers to make change, to deliver on need for mankind and to help us win. And let there be no doubt, our industry, our society, will do what we must do. We will win.

Steve Hedrick is the chairman & CEO of MATRIC, a strategic research and development partner in the chemical, energy and environmental industries, as well as the advanced software space. MATRIC’ is in South Charleston.

4

Charlie Burd Executive Director, IOGAWV

From the Burd’s Nest: Stepping Unto the Breach This phrase appears in Act-III, Scene-I of Shakespeare’s play, Henry V. The scene begins in the middle of the blockade of the port town of Harfleur, as King Henry’s army has blown up some French fortifications.

His troops disrupt the gap in the city walls and fight against the defenders.

He encourages his army to attack the city again by uttering these infamous words: “Once more unto the breach, dear friends, once more…”

The literal meaning of this phrase is “let us try one more time,” or “try again.” A more modern interpretation is defined as “the act of providing help that is badly needed, such as by doing a job when there is no one else available to do it.” In common expression, this phrase implies that one goes into the battle again, no matter whether it is a real battle in the battlefield, or a battle in daily life; one should always try again. The main idea of this phrase is to inspire courage, because without it, the spirit of the battle is lost.

At this moment in time, all of us find ourselves in “a battle in daily life” and the battlefield envelopes us from every angle. The enemy is invisible, but deadly beyond reason and is indiscriminate in who it attacks. Those who battle this enemy: the scientists, the doctors, all medical professionals, law enforcement, and first-line responders are inspired by this same courage, spirit, and undying sense of duty to others above self. We applaud them!!

The oil and natural gas industry, as well as many others, have been declared as “essential or critical infrastructure.” As such, we continue in our efforts to supply the energy needs of our state and nation. With

little to no hesitation, we brave the battlefield every day to deliver the oil, natural gas, and NGL’s needed to heat our homes and businesses, provide for transportation, and supply feedstock for much needed downstream industrial and chemical processes. In these times of economic uncertainty and fear of the unknown, our efforts directly contribute to the safety, security, and wellbeing of others. It is what we do; it is who we are. “Once more unto the breach, dear friends, once more…”

To aid in the efforts so badly needed in this time of stay-athome orders and self-quarantine, IOGAWV has initiated a COVID-19 information portal on its website.

Contained under that “Big Red Button” is a wealth of information regarding the virus including how to protect yourself and others, travel precautions and guidelines, social distancing requirements, state-bystate environmental guidance, a plethora of executive orders and their implications, OSHA guidance and much, much more.

In addition to the information portal, IOGAWV researched and quickly reached out to see where we, as an Association and industry, can best help. The response from you, our members, has been overwhelming. No doubt, you have seen the stream of Action Alerts identifying local and community needs with an invitation to help. And help you have!!

The first such need was a call to assist the United Way in its effort to provide supplies urgently needed for the homeless in our state. The response for portable shower and

hand washing/sanitation stations was immediately addressed by about a half-dozen of our members. I will not identify them here, but I felt an immediate sense of pride in knowing our members answered the call.

“Once more unto the breach, dear friends, once more…”

Next up was our reaction to the CARES Act and the U.S. SBA’s loan programs and how they would help many of our members seeking relief from the financial burden associated with the mass shutdown of their and other businesses across the country.

IOGAWV identified the need to provide guidance and understanding to the processes of the Paycheck Protection Program and other essential tax programs. With the help of two of our most recognized company members, an attorney, and a CPA, IOGAWV conducted a ZOOM Webinar in mid-April where over 50 member companies participated.

This is the first of what is hoped to be many such free informational webinar offerings. “Once more unto the breach, dear friends, once more…”

Most recently is the Association’s outreach on behalf of the American Red Cross to encourage companies to set up blood drives or individual members to volunteer to donate.

As of this writing, nearly 19,000 Red Cross blood drives have been canceled across the country due to coronavirus concerns, resulting in some 530,000 fewer blood donations. Now is the time to help as there is constant need for blood, platelets, and AB Elite plasma.

Please call 1-800-RED-CROSS or Burd’s Nest

Continued on page 17

5

Mark D. Clark Spilman Thomas & Battle, PLLC

Navigable Waters Protection Rule (formerly the Clean Water Rule) This is the latest in the long and tortured tussle over defining the extent of federal jurisdiction over waters and streams in the United States under the Clean Water Act (“CWA”).

By way of background, in February 2018, we reported that the U. S. Environmental Protection Agency (“EPA”) and the U. S. Department of the Army (“USACE”) finalized a rule delaying the applicability of the 2015 Waters of the United States (“WOTUS”) Rule (“2015 Clean Water Rule”) until February 6, 2020, to allow the various court cases and additional proposed rulemaking to play out and provide some certainty regarding the Rule. Then the U. S. District Court for the District of South Carolina issued an order enjoining the EPA and USACE from enforcing the rule delaying the applicability until February 6, 2020.

Then in January 2019 we further reported that the EPA and USACE issued a 253-page proposed rule defining the scope of waters subject to federal regulation under the CWA (the “Proposed Rule”). The Proposed Rule was another step to limit the scope of the 2015 Clean Water Rule and was intended to increase CWA program predictability and consistency by increasing clarity as to the scope of “waters of the United States” federally regulated under the CWA. Now over a year later, on April 21, 2020, the EPA and USACE (jointly the “Agencies”) had published in the Federal Register the final rule, entitled the “Navigable Waters Protection Rule” (NWPR), which has a scheduled effective date of June 22, 2020. Thus, what has been generally

known for some time as the Clean Water Rule is replaced with the Navigable Waters Protection Rule.

Just the name change suggests a new emphasis in implementing the Clean Water Act. The Agencies described the final rule as implementing the overall objective of the CWA “to restore and maintain the integrity of the nation’s waters by maintaining federal authority over those waters that Congress determined should be regulated by the Federal government under its Commerce Clause powers, while adhering to Congress’ policy directive to preserve States’ primary authority over land and water resources. This final definition increases the predictability and consistency of Clean Water Act programs by clarifying the scope of ‘waters of the United States’ federally regulated under the Act.” The NWPR defines “jurisdictional waters” to mean “waters of the United States” including: “(1) The territorial seas, and waters which are currently used, or were used in the past, or may be susceptible to use in interstate or foreign commerce, including waters which are subject to the ebb and flow of the tide; (2) Tributaries; (3) Lakes and ponds, and impoundments of jurisdictional waters; and (4) Adjacent wetlands.”

In addition, the NWPR defines “non-jurisdictional waters” to expressly exclude “waters of the United States” (i.e. jurisdictional waters). The non-jurisdictional waters include: (1) waters or water features that are not identified as jurisdictional waters; (2) groundwater, including groundwater drained through subsurface drainage systems;

(3) ephemeral features, including ephemeral streams, swales, gullies, rills, and pools; (4) diffuse stormwater run-off and directional sheet flow over upland; (5) ditches that are not jurisdictional waters, and those portions of ditches subject to specific conditions; (6) prior converted cropland; (7) artificially irrigated areas, including fields flooded for agricultural production, that would revert to upland should application of irrigation water to that area cease; (8) artificial lakes and ponds, including water storage reservoirs and farm, irrigation, stock watering, and log cleaning ponds, constructed or excavated in upland or in non-jurisdictional waters, so long as those artificial lakes and ponds are not impoundments of jurisdictional waters; (9) water-filled depressions constructed or excavated in upland or in non-jurisdictional waters incidental to mining or construction activity, and pits excavated in upland or in non-jurisdictional waters for the purpose of obtaining fill, sand, or gravel; (10) stormwater control features constructed or excavated in upland or in non-jurisdictional waters to convey, treat, infiltrate, or store stormwater run-off; (11) groundwater recharge, water reuse, and wastewater recycling structures, including detention, retention, and infiltration basins and ponds, constructed or excavated in upland or in non-jurisdictional waters; and (12) waste treatment systems.

The impact of the NWPR is to significantly limit the extent of federal regulation under the CWA. One of the more wide-ranging revisions is the inclusion of “ephemeral feaNav. Rule Continued on page 14

6

Industry Events

Mark Your Calendar for These Coming Dates June 1, 2020 Ted Cranmer Memorial Golf Outing and Steak Fry Wanango Country Club Reno, PA Info: Click here June 8-9, 2020 KOGA Annual Conference Campbell House Lexington, KY Info: www.kyoilgas.org June 26, 2020 SOOGA Spring Golf Outing Marietta, OH Info: www.sooga.org July 14-16, 2020 Tom Dunn Academy Canceled Due to COVID-19 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.com August 12-13, 2020 NAPE Global Business Conference G.R. Brown Convention Center Houston, TX Info: www.napeexpo.com August 20, 2020 Divot Diggers Golf Outing and Steak Fry Tam O’Shanter Golf Club Hermitage, PA Info: Click here

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 October 5-7, 2020 SPE Annual Technical Conference and Exhibition Colorado Convention Center Denver, CO Info: www.spe.org November 8-10, 2020 IOGCC 2020 Annual Meeting Houston, TX Info: http://iogcc.ok.gov/events May 15-18, 2021 IOGCC Annual Business Meeting Skirvin Hilton Oklahoma City, OK Info: http://iogcc.ok.gov/events

7

Ergon

Monthly Appalachian Basin Crude Oil Prices NYMEX AVG OIL PRICE 2019 AVG Price - $57.02/bbl 2020 AVG Price - $46.44 /bbl

$80.00 $70.00 $60.89

$60.00

$54.86

$57.50

$54.84

$56.68

$50.00

$54.13

57.08

59.84

$57.98 $50.75

$40.00 Series1 $30.60

$30.00 $20.00 $10.00 $-

Apr-19

Series1

Apr-19 $63.79

May-19

Jun-19

May-19 $60.89

Jun-19 $54.86

Jul-19 Jul-19 $57.50

Aug-19 Aug-19 $54.84

Sep-19 Sep-19 $56.68

Oct-19 Oct-19 $54.13

Nov-19 Nov-19 57.08

Dec-19 Dec-19 59.84

Jan-20 Jan-20 $57.98

Feb-20 Feb-20 $50.75

Mar-20 Mar-20 $30.60

Association News

Tell Us How You’re Being a Good “COVID-19” Neighbor We know the members of the Independent Oil and Gas Association of West Virginia are a very generous and giving group. You look after your family, employees, neighbors, friends and community.

We want to know what you’re doing during this pandemic to help others. Please visit https://iogawv.com/iogawv-charitable-services-survey/ to tell us what you’re doing to help food banks, neighbors and others in need. Please let us know if you’re donating blood; if you want to donate blood or plasma, click here.

Thank you for all you do!

8

Greg Kozera Learned Leadership LLC

Leaders Are Needed...

Are You Ready?

Most people reading this are in a leadership position. If you are a parent, grandparent, own a business, are a front-line supervisor, a manager, CEO or have any position where people look up to or depend on you, that is a position of leadership. If you are in a position to influence people, you have a position of leadership.

Having a leadership position or big title doesn’t make you a leader.

Being a leader is a choice you make.

The leadership expert John Maxwell defines a leader as anyone who influences and develops people. Your title or position has nothing to do with leadership. When I was a student at WVU years ago, I noticed in some departments the secretary was the leader, not the department head who had the title. If I needed something and could convince the secretary it got done. The secretary actually ran the department. The Department Head was the follower and he had no idea. The secretary knew how to influence people.

Because of the challenges, we are facing today with the corona virus people are looking for leaders. Our children and grandchildren need our leadership and guidance. They are looking for it, whether they admit or not. Families are spending more time together. Can we use this time wisely? We are looking to our Governor and our President for what to do. Employees are looking to the business owner, supervisor or those in corporate leadership positions for leadership not management.

Leadership is about the ability to influence others. Command and demand isn’t leadership. Influence means people do things because they want to or need to so they can get a

desired result. Our high school soccer players work hard in practice not out of threats or punishment. That doesn’t work. Our players work hard because they know it is necessary to get to the State Tournament.

Here are some ideas on ways to influence. These have worked for me in athletics, business, leading volunteer organizations and with my family; • Trust: You cannot lead effectively without trust. To be trusted requires honesty and capability.

Always tell the truth! People, even children can handle the truth even though they may not always like what they hear. Truth doesn’t change. People can make the best possible decision if it is based on truth. The other part of trust is capability. People need to believe the leader knows what they are doing. Does the leader make good decisions?

Can they be trusted by to do the right thing?

• Leaders Take Responsibility: Good leaders don’t blame others. They understand taking responsibility puts them in control. If they do make a bad decision or a mistake they admit it and correct it.

• Example: It is not what someone says, it is what they do that matters. Your children and those who follow you look at your actions. If you want your people to be on time, you need to be on time. If you want people to work hard, you need to work hard. If you tell your kids not to smoke, you need to set the example.

• Praise: People are so used to

criticism that they block it out.

Most people don’t hear praise very often. People repeat actions that they get praised for. For praise to be effective it must be sincere, specific and praise for an action they can control.

• People like and/or respect the leader: This is because of what the leader has done previously.

Our youngest son had a serious health problem when he was 10 weeks old. It required me to spend time at the hospital. My manager told me to take whatever time I needed. Our son recovered. I worked hard and did more than asked for that manager because of what he did for me. If he needed help on my weekend off I was there.

• Treat people with respect and appreciation: Two powerful words for a leader are “Please” and “Thank You”. It may not be possible to pay people more, especially now. Volunteers don’t get paid at all. Leaders always can show appreciation and thank their people and even family members for what they do.

Vision: People will follow leaders because they like their vision.

Leaders know where they want to take their team. People want to go with them. Our success as a high school soccer team started over 20 years ago when I asked our seniors what their dream was for the season.

Our senior captain, BJ said, “We want to play for the State Title.” At that time, we had never even won a section championship. BJ convinced me it was possible. We convinced the team. The vision changed how we Leaders Continued on page 15

9

Charlie Burd IOGAWV Executive Direector

License Plate Deadline Fast Approaching In January 2020, the West Virginia Department of Motor Vehicles (WVDMV) granted IOGAWV and WVONGA the right to pursue a customized WV State license plate dedicated to the oil and natural gas industry.

At this same 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). In addition, we were also given the deadline of July 24, 2020, to have the 250 applications submitted to the WVDMV. To date, we have only received 116 applications and checks.

If the industry is to have this customized license plate, it needs to get moving. 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.

Here is how: please complete the official application (page 17) 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, and only at this point, the WVDMV will assign its graphic artist to our project to design the plate with our input

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This plate demonstrates your dedication and commitment to showcasing our industry.

We simply cannot miss this opportunity. Please, take time now to complete and submit the application with your check to: Charlie Burd, Independent Oil and Gas Association of WV, 300 Summers St., Suite 820, Charleston, WV, 25301

To apply for a license plate to support your oil and gas industry, visit pages 18 and 19.

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10

Jeff Isner Commerce Committee Co-chair

Equitrans Gathering to Change Equitrans L.P. (Equitrans) is determined to do something with its gathering lines. Equitrans sold some gathering lines in the southern part of its system, but according to a recent study still holds a gathering system that extends through Monongalia, Marion, Taylor, Harrison, Wetzel, Tyler, Ritchie and Doddridge counties of West Virginia, and Green and Fayette counties of Pennsylvania (collectively the Northern Gathering System). Things are going to change with respect to the Northern Gathering System, and the changes could be unfavorable to producers.

In a prior action alert, IOGA informed you that Equitrans hoped to transfer the lines to Peoples Gas WV LLC (Peoples) at nominal cost

to Peoples. Equitrans even offered to add new taps to bring higher pressure gas onto its system when the gas was needed for consumers and filed its proposal with the West Virginia Public Service Commission (WVPSC) as part of a case involving the sale of Peoples.

Peoples is a regulated public utility gas distribution company that is not in the gathering business, so Peoples did not jump at the acquisition. Instead, Peoples and Equitrans engaged an independent consulting firm, Black & Veatch, to study alternatives for the lines, including a possible transfer to Peoples.

The study is substantially complete, filed with the WVPSC and now available on IOGA’s webpage at www.iogawv.com or https://iogawv.

com/equitrans-gathering-study/.

The study contains a great deal of information about the Northern Gathering System, including its condition, possible sections to abandon, and interconnections. While complex, the study is worth reading.

You, or IOGA on your behalf, could have an opportunity to comment on the study.

Please, visit the IOGA website and look at the study, but more importantly, express your views to IOGA’s Commerce Committee. Jeff Isner and Jim Crews are your Commerce Committee chairs and their contact information can be found in your IOGA Membership Directory or obtained by calling the IOGA office at 304-344-9867. If you have gas on Equitrans gathering, it is in your interest to express your views.

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

11

IPAA News

IPAA Updates on WOTUS and Wetlands WOTUS Definition Revision On April 21, the USEPA and the Army published the Navigable Waters Protection Rule to define "waters of the United States" (WOTUS) in the Federal Register. For the first time, the agencies are streamlining the definition so that it includes four simple categories of jurisdictional waters, provides clear exclusions for many water features that traditionally have not been regulated, and defines terms in the regulatory text that have never been defined before. Congress, in the Clean Water Act, explicitly directed the Agencies to protect "navigable waters." The final rule fulfills Presidential Executive Order 13788 and reflects legal precedent set by key Supreme Court cases as well as robust public outreach and engagement. The final rule will become effective on June 22, 2020.

IPAA submitted three sets of comments with associated trade groups in 2019 on the proposed revised definition of WOTUS, which the EPA used to form the Navigable Waters Protection Rule.

US seeks return of wetlands permit nixed in pipeline case On April 27, U.S. government attorneys sought to put on hold a recent court ruling that canceled a permitting program used to approve oil and gas pipelines and other utility work through wetlands and streams across the nation. The attorneys said letting the April 15 ruling stand would hamper thousands of construction projects overseen by the U.S. Army Corps of Engineers. U.S. District Judge Brian Morris in Great Falls declared the permitting program, known as Nationwide Permit

12, had been reauthorized in 2017 without sufficient consideration of its potential environmental harm. We will keep you informed on this important court decision and appeals.

Activists Falsely Link Air Quality and COVID-19.

Oil and natural gas companies have gone beyond providing needed energy and the resources required to make live-saving medical equipment by donating time, money and other resources and supplies in their communities – even while facing unprecedented challenges brought on by COVID-19 and the state of the oil and natural gas markets Meanwhile, “Keep It In the Ground” activists have repeatedly attempted to use the pandemic as a tool to attack the oil and natural gas industry. Most recently, Keep It In The Ground (KIITG) groups have been touting a yet-to-be peer-reviewed Harvard University article on small particulate matter (PM2.5) and COVID-19, which has nothing to do with oil and natural gas, as a new reason to oppose fracking. IPAA’s Energy-in-Depth has more information on the study and the scrutiny it is already receiving at EIDHealth.org.

Judge rejects Army Corps of Engineers bid to resume permitting.

In late April, a federal court declined to immediately halt an order blocking the Army Corps of Engineers from authorizing national water permits for power line and pipeline projects that cross federally protected waters Chief Judge Brian Morris for the U.S. District Court for the District of Montana stated Tuesday that he would not issue

an administrative stay to his order blocking the Army Corps’ Nationwide Permit 12 program, pending consultation with other federal agencies under the Endangered Species Act. The order stemmed from litigation over the controversial Keystone XL pipeline. Instead of only tossing the national permit for the oil pipeline’s water crossings, Morris faulted the agency for failing to conduct ESA consultation before reauthorizing the five-year program in 2017 and barred all use of the permit for project approvals. Federal attorneys quickly raised objections to the broad scope of the court’s decision, which could affect many more projects than just pipelines.

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Dennis Xander Denex Petroleum

Tom Dunn Energy Leadership Academy Cancelled Due to COVID It is with deep regret the 2020 Tom Dunn Energy Leadership Academy, originally scheduled to be conducted on the campus of West Virginia Wesleyan College July 1416, 2020, is being cancelled due to safety and social distancing concerns related to the COVID-19 pandemic.

The Academy, founded by the Independent Oil and Gas Association of West Virginia (IOGA) in August 2012 to honor pioneer member and industry leader Thomas B. Dunn, provides students with an in-depth look at West Virginia’s oil and natu-

ral gas industry. During the three-day event, students are immersed in the industry through classroom presentations and field trips with industry experts. Students also learn about industry-related programs offered at local colleges and universities during the college fair, hosted during the final day of the program. Since its inception, it has been embraced by hundreds of high school students from throughout West Virginia who sought to learn more about energy, leadership and the oil and natural gas industry.

Dennis Xander, owner of Denex Petroleum and Academy board of director, expressed sadness to those students seeking this opportunity for the 2020 session, stating, “It is with deep regret and sadness this year’s Academy is being cancelled, but we must do so in an overabundance of caution and concern for the safety and health of the students, the instructors, and the administration and staff at West Virginia Wesleyan College. As the State and Nation navigate through these unprecedented times, IOGA will continue its planning of the 2021 Academy.”

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Thomas Downs WeatherBELL Analytics

Hurricane Season Update Provided

For more information about WeatherBELL’s services and to get the hot-off-the-press forecast updates, please visit our website www.weatherbell.com or contact us at sales@weatherbell.com.

Our initial hurricane outlook issued in March indicated the increased chance of a hyperactive hurricane season. We are expecting 14 to 20 named storms, 7 to 11 of which should strengthen into hurricanes.

The persistent warmer than normal waters of the Gulf of Mexico and off the Southeast Coast increases the chance of an early-season tropical storm or two.

In April, we homed in on the areas of the basin where we expect the most activity to be. Based on the expected steering currents, we are concerned about the northern Caribbean and Florida, the western Gulf Coast and from South Carolina to New England as the most vulnerable to high impacts this year.

Visit the 2020 IOGAWV Online Buyers Guide: iogawv.com

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Navigable Waters Continued from page 5 tures” in the definition of non-jurisdictional waters. Ephemeral features include all “surface water flowing or pooling only in direct response to precipitation (e.g., rain or snow fall).

Similarly, in order to qualify as jurisdictional water under the “adjacent wetland” category, it must either abut another water of the United States, contribute intermittent or perennial flow to a water of the United States, or be inundated by flooding from a water of the United States in a typical year. Consequently, many floodplain and hillslope wetlands which were previously considered “jurisdictional” may be eligible for non-jurisdictional determinations beginning June 22, 2020.

Clearly, the NWPR shifts responsibility for many, many streams and wetlands to state and tribal authorities which may result in varied, and perhaps inconsistent, regulatory or permitting requirements between states for the same type of streams or wetlands that would have been subject to a more uniform federal jurisdiction under the 2015 Clean Water Rule. Of course no revision to the scope of jurisdictional waters can escape judicial scrutiny. We can expect to see litigation challenging the NWPR in the near future, assuming cases have not already been filed by the time you read this.

How the Agencies will interpret and implement the NWPR in the field is the next big question. We may be waiting months or years for some of those questions to be addressed. If you questions or comments regarding the new Navigable Waters Protection Rule, please contact Mark Clark at MClark@ Spilmanlaw.com or Dave Yaussy at DYaussy@Spilmanlaw.com.

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Leaders Needed Continued from page 8 practiced. The boys got excited and believed it was possible. Against all odds we played for the state championship. Since then we have won 15 Regional and five State Championships. One young man with a vision made the difference.

Leaders always have to adapt to change. We have certainly have a lot of that. We have had low natural gas prices now suddenly the bottom drops out of the oil market. I remember $3 oil in the 1970s. I never expected to see it again and certainly

not negative oil prices. Companies were paying to get rid of their oil.

Low oil demand is easy to predict since most people are under stay at home orders. I typically drive 2500 miles a month. Today I put 10 gallons in my tank for the first time in a month. No one is flying or taking vacations. The question for leaders is, how to deal with low prices.

Today people need hope, encouragement and truth. They want to follow people they can trust to help them get through these challenging times. The virus is unpredictable.

Leaders are dealers in hope. If there is hope in the future, there is power in the present. There are no magic answers. No one of us is smarter than all of us working together using our collective intelligence. Organizations need to take advantage of all the resources available to them.

Leadership allows organizations to do this.

One way to increase prices is to increase demand. The best way to increase demand is to use our abundant energy, with advanced manufacturing methods to bring more manufacturing and jobs to the largest economy in the world. Eastern Canada has 70% of the Canadian population. Fifty percent of the US population and 70% of polyethylene and polypropylene demand is within a day’s drive of the Shale Crescent USA. We are all in positions to lead and encourage others. We manage things.

We must lead people. Leadership is not about title or position. Anyone can learn to lead if they choose.

Choose to be a leader. You are needed now more than ever.

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Board Nominees Continued from page 1 and legal proceedings and subsequently 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, Doug began consulting for IOGAWV on oil and gas law, provided services on government affairs matters where he authored white papers, 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 and helps to oversee all company operations providing energy and environmental contracting services to the major energy companies, including well services, pipeline services, compressor station and environmental services. Doug formerly served as a contractor advisor/agent for the NFL and Canadian Football League.

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

Steven M. (Steve) Downey:

Steve is the Vice President of Business Development & Marketing for EnerVest Operating LLC where he is responsible for the acquisition, divestiture, and the joint venture of the division assets as well as the marketing and transportation of its natural gas production. He has over 33 years of experience in the natural gas industry having been previously employed by Chesapeake Energy Corporation, its predecessor Triana Energy, and Columbia Gas Transmission Corporation having served in the areas of Finance, Strategic Planning, Marketing, Customer Services, Land, and Divestitures. Prior to his career in oil and gas, he was a bank auditor for Key Centurion Bancshares. He has a Bachelor of Science Degree in Accounting and is a certified public accountant. He is the current Chairman of the Ohio Oil and Gas Association through December 31, 2020, a former Board of Director of the Independent Oil and Gas Association of West Virginia, and a member of several other state oil and natural gas associations.

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 and a minor in economics from Glenville State College. He is a Certified Public Accountant (CPA) and holds a Master of Business Ad-

ministration 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.

Greg Hoyer: Greg was born and raised in the Charleston, WV area.

He is a graduate of Charleston Catholic High School and the University of Charleston. After beginning his career in Atlanta, Georgia, he returned to West Virginia and served as a clerk for the West Virginia House of Delegates Committee on the Judiciary and later became the House Enrolling and Engrossing Clerk. Greg joined LGCR Government Solutions in 2005, providing government affairs services to multiple clients on the federal, state and local levels. In 2013 he became EQT Corporation’s Government Affairs Manager for West Virginia and Ohio. He resides in South Charleston with his wife and daughter.

James B. (Jim) Pritt: Jim is a graduate of Glenville State College with an Accounting Degree who Nominees Continued on page 17

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Board Nominees Continued from page 16 earned his MBA from Marshall University. He is a Certified Public 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 the upstream segment to work for 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 (Amy and Sara) and three grandchildren (Savanna, Sabrina and Sarah). 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 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 in the future.

Burd’s Nest Continued from page 4 make application on-line at: https:// rcblood.org/ to set up an event.

“Once more unto the breach, dear friends, once more…”

Future outreach is already in the works with an effort to solicit support from our members to assist in the providing of food supplies and meals to healthcare workers, emergency responders, families, and children. Entities providing these services have been identified and contacted and are excited in our potential outreach. Local vendors would be used to carry out this outreach. We, and they, will need your financial help. Look for more information on this very soon and be

willing to provide for those unable to provide for themselves. “Once more unto the breach, dear friends, once more…”

I will finish as I started. We as an Association, as company members and as individuals are the key to winning this battle against this unseen foe and helping those in most need. Let us try and try again, for it is in the act of providing help, in doing a job when there is no one else available to do it, that inspires us internally and motivates us to inspire others. Without it, the spirit of the battle is lost. “Once more unto the breach, dear friends, once more…”

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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