August 2021 GO-WV News

NEWS

The Voice of the Gas and Oil Industry

August 2021

Register now to attend 2021 Sports Weekend

Register now to join the fun at the 2021 GOWV Sports Weekend beginning on Friday, September 17, at Bridgeport Country Club.

Activities begin at 8:00 a.m. with registration and breakfast at Bridgeport Country Club.

The four-person scramble golf tournament features a shotgun start at 9:00 a.m. at the Bridgeport Country Club course. The foursome fee, including registration, is $700 for members and $800 for nonmembers. Hole sponsorships are available for $1,000 and include registration, your foursome, signage at your hole and your logo on gowv.com and in GO-WV News.

Sporting clay arrangements have been made at “A Mountain Clays,” 1900 Meadowbrook Road,

Bridgeport, beginning at 9:00 a.m. Your $175 per person fee includes registration and 100 rounds of sporting clays.

Should you have any questions, please call Lori Miller Smith directly at (304) 3449867.

Lunch will be served following golf and sporting clays Maribeth Anderson back at the Bridgeport Coun- Co-Vice President try Club. Skill prizes will be and Program Chair awarded to the golfers and shooters, plus door prizes galore for all to win!

Sports Weekend Continued on page 11

Carbon capture and sequestration explained Carbon capture and sequestration (or storage) (“CCS”) has been around for quite a while as a conceptual tool for addressing climate change by reducing the amount of CO2 in the atmosphere.

CCS is the process of removing CO2 from industrial processes such as power plants and manufacturing facilities that burn fossil fuels. The CO2 is then transported and placed in long-term storage, typically in underground geologic formations.

Scientists at MIT have estimated that the storage capacity for CO2 in the United States is adequate for at least the next 100 years, but uncertainty remains about any time frame beyond that. However, technological and economic hurdles have limited the utilization of CCS at a scale sufficient to make a material impact.

The U.S. Environmental Protection Agency (“EPA”) issued a rule that became effective on September 7, 2011, that established a new under-

ground injection well category for sequestration of CO2 Class VI wells. The Class VI well category set minimum technical criteria to protect underground sources of drinking water from the long-term subsurface storage of carbon Mark Clark dioxide. EPA directly impleSpilman Thomas & ments the Class VI Program in Battle, PLLC all states, tribes, and territories except North Dakota and Wyoming, which received Class VI well primacy.

By publication of revisions to its Underground Injection Control rule, 47 C.S.R. 13 (“UIC Rule”), the West Virginia Department of Environmental Protection (“WVDEP”) proposes to join that exclusive club of states having primacy over Class CCS explained Continued on page 15

INSIDE

2 Tom Westfall 3 Association News 4 Charlie Burd 5 Greg Kozera 6 Michael Forbes 7 Kathy Hill 8 Thomas Downs 8 In Memoriam 9 Industry news 10 Industry events 16 Oil & Gas Museum 17 GO-WV license plate application 18 Sports Weekend registration form 19 Sports Weekend Sponsor Form

1

Tom Westfall GO-WV Co-President

Explaining your gas bill In recent days, you may have heard about proposed increases in your natural gas bill. With all of the hype about the abundant supply of natural gas from the Marcellus and Utica formations that lie under our state, how can the cost to consumers be going up? This is a simple question, but one that requires a complex answer.

The answer is complex for several reasons. First, the price of natural 2021 OFFICERS gas is determined by an open market for natural gas that is influenced Presidents: by national supply and demand factors. Second, the process for Ben Sullivan/Thomas Westfall setting the rates charged by utilities in West Virginia is broken down Vice Presidents: into several parts with each part requiring its own complex procedure for determining the rates charged to consumers. All natural gas utility Maribeth Anderson/Jeff Isner Secretary: companies in West Virginia have similar rate structures but each has Jason Harshbarger its own unique set of conditions that make rates different for each.

Treasurers: Let’s start with natural gas utility rates in West Virginia. Natural gas Kelly Moss utility rates are established by formal cases filed at the Public Service Commission of West Virginia (PSC). The utility companies file apBOARD MEMBERS plications or requests for rate changes (either increases or decreases).

John Bane, EQT Corp.

The PSC has a staff of professional accountants, engineers and attorJim Crews, MPLX neys that review and analyze each utility filing. The staff, and often Carrie Crumpton, CNX Resources other parties including the Consumer Advocate Division of the PSC Ryan Cunningham, or other large customers, file responses to the utilities’ applications.

Cunningham Energy Ultimately, utility companies can only charge rates that have been Doug Douglass, ConServ Inc. approved by a final ruling or order of the PSC. Kevin Ellis, Antero Resources Gas utility rates are broken into two or three parts called base rates, Jon Farmer, Arsenal Resources purchased gas rates and, in some cases, where authorized by the PSC, Michael Forbes, Greylock Energy an infrastructure replacement surcharge. Base rates are the rates that Marc Halbritter, Blue Racer Midstream the utility charges to deliver the gas to the customers, maintain the David Haney, E&H Manufacturing miles of pipeline and other facilities, and perform all of the customer Holly Hannold, XTO Jon Hildreth, Roy G. Hildreth & Son service functions, including services like meter reading and billing.

Brittany LaPorta, TC Energy The base rate component is designed to allow the utility to recover the Brett Loflin, Northeast Natural costs that it incurs for labor, materials, taxes, vehicle fuel, depreciaEnergy tion, etc., plus a return on its investment. Base rates are determined Rhett Metz, Energy Transfer through a rate filing in which the company compiles all of the costs Christine Mitchell, Dominion Energy that it incurs to operate the utility business along with what it expects Michael Poole, Highlands Drilling to earn as a return to the investors that have provided capital to operJim Pritt, Union Oil & Gas ate the utility business. These charges do not include any cost for the Bob Radabaugh, S&R Gas Ventures natural gas itself. Base rate cases are normally filed every three to Mollie Schall, Crestwood Mistream five years and the approved base rates stay in effect until a new proChris Weikle, SWN ceeding is filed and the PSC orders different rates to be charged.

The purchased gas rate component is the rate that the utility is Members Emeritus: approved to collect from customers to recover the cost of the natural Ben Hardesty, Alta Energy Lloyd Jackson, Jackson Management gas it sells to you. These rates are recalculated each year in a proBob Orndorff, Dominion Energy Explaining your gas bill Continued on page 12

2

Association News

GO-WV contributes to Oil & Gas Museum and their campaign for new windows The Gas and Oil Association of WV, Inc. (GO-WV), continued a tradition started by the Independent Oil & Gas Association of an annual contribution to the Oil & Gas Museum, located in Parkersburg.

This year, the $2,000 contribution will be used for their greatest needs. One of those greatest needs is the renovation of windows in the Museum’s building, which was built in 1899.

The Museum is asking for sponsorships of $1,000 per window, and the leadership estimates the cost to replace all window openings will be approximately $140,000. Future proposed projects include HVAC updates, a new elevator and updated lighting. Please contribute to this great home of our industry’s history!

The WV Dept. of Arts, Culture and History provided a matching grant of $43,500.

Paul Hoblitzell, left, president of the Oil, Gas and Industrial Historical Association, Inc., received a contribution from GO-WV Executive Director Charlie Burd.

If you are not familiar with this Museum, the building houses oil and gas history, information about local industry and history about the formation of the State of West Virginia. The building, for over 80 years, housed the W. H. Smith Hardware Company which was a vibrant retail and commercial center. The building was acquired by the Oil, Gas and Industrial Historical Association, Inc. in 1991 and was added to the National Register of Historic Places in 2003.

Again, they need your help!

3

Charlie Burd GO-WV Executive Director

From the Burd’s Nest: A merger going RIGHT! It was only after I was hired by the Independent Oil and Gas Association of West Virginia (IOGA) in July 2002 that I learned there had just been a discussion of merging with the West Virginia Oil and Natural Gas Association (WVONGA). Both association executive directors had resigned to pursue other endeavors. Those merger discussions determined it was not the right time.

In the summer of 2016, similar discussions occurred following the very tragic and unexpected loss of Corky DeMarco, just before his planned retirement from WVONGA at the end of 2016.

Again, a determination was made that it was still not quite the right time.

In November 2016 Anne Blankenship was hired

by WVONGA and IOGA welcomed her with open arms. The existing friendship between Anne and myself, the need to jointly address the many issues facing both conventional and non-conventional producer/operators and our individual determination to work together and be as unified as possible, I believe, paved the way as the relationship between the two organizations flourished in a new wave of cooperation.

In late spring 2020, Anne called and informed me she was leaving WVONGA to pursue an opportunity to return to private practice with a Charleston law firm. That decision got the ball rolling with some behind-the-scenes discussions among key leadership from both associations regarding a possible merger. It wasn’t until the early part of June that I was notified by my president that, indeed, talks were being conducted.

Soon after, and following much debate, tons of work to develop the merger strategy, producing all the accompanying but necessary documents, and deciding on a leadership format, the decision was made to advance the merger. In early December 2020, the voting members from each association voted individually on the potential merger. We know now, of course, that members of both IOGA and WVONGA voted overwhelmingly in favor of the merger to GO-WV...the time was finally right!

4

But crafting a merger is like learning to crawl.

The toddler pulling up on the coffee table and teetering off to take those first steps is akin to making the merger work to the benefit of all members.

Fortunately, six months in, it is evident the forethought that went into creating a fluid transition process was handled expertly. Every merger requires direction from the top because that is the only way to initiate change throughout an organization. The first appropriate decision was to keep in place the current board and leadership from both associations. That leadership team has become the cornerstone of GO-WV, in every sense of the word. However, was it a bit odd at first for me and our staff to grow from 13 Board of Director members to 28 (plus three Members Emeritus) and acquire co-presidents and co-vice presidents?? YES!! But mergers are about change and adaptation. We are all adapting.

Also, it is crucial that the leadership team seeks to have all members incorporate the aspirations of the Association; to be diligent in its inclusion of differing opinions; seek to grow in numbers; and to be unified in purpose. Most importantly, to finally speak with one strong voice for the entire oil and natural gas industry. Since our new beginning on January 1, 2021, it is my opinion GO-WV is not just rolling out random messages, it is rolling out itself.

The second appropriate decision was the formation and structure of the committees and their leaders. That, too, has been seamless and is working wonderfully. Chairs and co-chairs are proving to be in unison on the issues that matter most to our members. And the diversity of the members within the individual committee is what makes the decision-making process fair and non-divisive.

It is also good to see that the different classes of members are more united in purpose and working together better than ever before. Like any “family,” we sometimes have our disagreements, but, at the end of the day, we are still family.

Burd’s Nest Continued on page 13

Greg Kozera Learned Leadership LLC

What happened in Vegas... (our top 11) Last month Lynnda and I were in Las Vegas, Nevada for Influence 2021, The National Speakers Association’s (NSA) Annual Conference.

This year at Caesar’s Palace. The plane to Vegas was packed and late for the 4 ½ hour flight. The temperature when we landed was 116 degrees.

Humidity was 10%. That’s still hot. Slot machines greeted us at the airport.

Caesar’s is a beautiful and massive resort with 4,000 rooms, high end restaurants, lounges, shops, multiple casinos, ballrooms, meeting rooms and a coliseum where they have events from shows to prize fights. Vegas has the same problems we have getting workers. Express check-in was not. The express check-in person sent us the wrong way to our room. After circling through the packed casino twice one of our NSA buddies spotted us. With his help and more stumbling around, at 2 AM eastern and 11 PM Las Vegas time we were in our room.

Our NSA buddy had suffered through similar experiences earlier in the day. His smile, positive attitude and helpfulness kept our attitude from deteriorating.

The next morning at 7 AM I decided to do a morning run in the 99-degree heat. People were still at the bar and in the Casino. I stumbled into the pool area and got lost. I had to ask directions to find my way out of the hotel. The run was a self-guided tour of Las Vegas Boulevard including the fountain at the Bellagio which we have seen in TV commercials and movies. I was surprised by the number of people sleeping on the sidewalk in the heat. Ordering take-out breakfast, the oranges looked nice and juicy. I ordered one. The hostess laughed and said, “I can’t sell you those oranges.

They’re plastic.” We were off to a great start.

This conference felt like a family reunion and funeral rolled into one. We were seeing friends and colleagues we haven’t hugged or shaken hands with in two years. Attendees were the survivors. NSA lost over 1,000 members. Like the gas and oil industry, most went out of business. It was like Freshmen Engineering Lectures on my

first day at WVU. We were in a large lecture hall in the engineering building. The prof said, “Look to your left and look to your right. One of those people won’t be here next semester.” The prof was right. Fortunately, I survived. At NSA we lost less than 10 people to death, most to cancer. Everyone was impacted by COVID in some way. Besides renewing friendships, Lynnda and I learned from our colleagues outside of the formal presentations.

That is why in-person meetings are so powerful.

Here are our top 11 take-aways from Las Vegas.

They might be helpful to you. There are lot of similarities to the gas and oil industry; • Las Vegas, like Tennessee, Florida, West Virginia and many other places is back to business as usual. A few people were still wearing masks and the plexiglass is still in place. The director of marketing for Caesar’s Entertainment said weekends are very busy.

Their conventions are sold out until Q2 of 2023. One reason, he said, companies are doing in-person meetings is to engage those working from home.

• Major disruptions are normal and happen every few years like the gas bubble of the 1980s, the .com collapse of the 1990s, 9-11, the Great Recession and COVID. Prepare for them with things like multiple income streams, hedging and savings. At NSA those with diversified income streams and diversified clients were survivors. Just like your 401K, it isn’t safe to have all your eggs in one basket. Have a plan for the next crisis. Dig your well before you need water.

• In-person meetings are back. Zoom isn’t going away. It will still be a valuable tool but meeting planners putting on virtual only meetings are going to be disappointed with attendees and sponsors. People are looking for opportunities to network again and connect with people in person. Shale Crescent USA (SCUSA) did four virtual meeting presenWhat happened in Vegas Continued on page 14

5

Michael Forbes Membership Chair

GO-WV Board welcomes three new members in July Please join the GO-WV Board of Directors in welcoming these members approved in July: CTS Consultants Ted Smith 5311 Ashbrook Drive Charleston, WV 25313 Phone: (681) 217-1063 Cell: (304) 389-4939 Ted@ctsconsultantsllc.com www.ustrinity.com

ISP

PSI Energy LLC Pete Kinsella 11633 Sethwarner Dr. Glen Allen, VA 23059 Phone: (804) 754-6131 Cell: (804) 754-6131 pjkinsella81@gmail.com

ISP

Vault Pressure Control Stuart Bradley 36 Ricron Drive Fairmont, WV 26554 Phone: (724) 689-5691 Cell: (724) 689-5613 stuart.bradley@vaultpc.com www.vaultpc.com

Homestead Communications

getting YOUR message to the right people through award-winning public relations

homestead communications po box 13604 | charleston, wv 25360 304.984.0308 | homesteadcommunications@frontier.com

6

ISP

Kathy Hill

Ergon

Monthly Appalachian Basin crude oil prices

Premium Service for Your Premium Product.

Whether buying or transporting crude, Ergon Oil Purchasing’s integrated network of assets offers diversity to the market. Through Ergon’s refineries, network of terminals, barge and trucking fleets, we understand the needs of the crude oil industry.

1.800.278.3364 eopsales@ergon.com

7

Thomas Downs WeatherBELL Analytics

WeatherBELL’s late summer forecast Our 2021 Hurricane Season Outlook continues to call for a high likelihood of multiple hurricane hits along the U.S. Coastline.

After a cool July in the South, we expect August to heat up for a time, with the balance of the month averaging out not too far from normal. The biggest uncertainty in our forecast is across Texas and the southern Plains, which may be warmer than depicted, but it’s been so cool there this year it’s hard to go against persistence.

We do expect a continuation of the warmth in the Northwest (daytime highs) and in the Northeast (muggy, overnight lows).

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.

In Memoriam

GO-WV mourns loss of industry leader Veleair Courtlandt “Cort” Smith II, was born on June 13, 1931 in Charleston, W. Va. and passed away at age 90 on July 27, 2021. An only child, he was preceded in death by his parents Veleair C. Smith and Dea M.Smith and his son Collett V. Smith. He is survived by: his children Courtlandt L. Smith (Elizabeth), Christian V. Smith (Jennifer) and Caroline K. Smith; grandchildren Courtlandt L. Smith Jr., Wilson C. Smith, Lauren Claire Smith and Oliver Classen; as well as his former spouse and mother of his children Kemp Littlepage McElwee.

Cort spent his early years growing up in Charleston primarily in the Edgewood area where he made many lifelong friends. As his father’s various business interests became more concentrated in the Putnam County area, they purchased a farm and built a home on the Kanawha River near Winfield that they named Valdeacort Farm.

For his high school education, he enrolled at the Culver Military Academy in Culver, Indiana.

After high school, Cort earned a bachelor’s de-

8

gree in geology from Duke University. Following graduation, he served his country in the U.S. Air Force as an agent in the Office of Special Investigations. Following active service, he took graduate studies at Lehigh University before returning to West Virginia to join the family businesses.

Cort was exposed to all aspects of the natural gas business under the Veleair C. Smith Management umbrella. Putnam Natural Gas Company began drilling and operating wells in Putnam and Lincoln Counties during the late 1920s. In addition to drilling and operating wells in Putnam, Kanawha, and Cabell counties, Teavee Oil & Gas, Inc. also provided industrial gas service to the chemical industry and continues to operate a natural gas storage field near Hurricane. Beginning in the 1940's, Well Service, Inc, provided contract well and cement work for the natural gas industry over a multi-state area. With Union Oil & Gas, Inc, he was involved with providing gas utility service to several thousand customers in Putnam, Mourning the loss Continued on page 14

Industry News

2021 Babst Calland report highlights industry legal and regulatory perspectives Law firm Babst Calland reently published its 11th annual energy industry report: The 2021 Babst Calland Report – Legal & Regulatory Perspectives for the U.S. Energy Industry. A recent conversation with U.S. Senator Joe Manchin is featured in the report. Each of our nation’s energy sectors is impacted by local, state and federal policies, many of which are addressed in this inclusive report on legal and regulatory developments for the energy industry in the United States.

The Babst Calland Report represents the timely collective perspectives of more than 45 energy attorneys on the current state of the U.S. natural gas and oil, coal, and renewable energy sectors.

For the first time, this Report is presented as an

R.L. Laughlin & Co., Inc

“Providing Gas Measurement Services since 1970”

Site Automation  Electronic Chart Integration

Meter Sales Gas Analysis

 Meter Installations  Calibrations & Repairs

NOW SERVING YOU IN 3 LOCATIONS: 125 State Rt. 43 Hartville, OH 44632 330-587-1230

5012 Washington St., W. Charleston, WV 25313 304-776-7740

1205 Buckhannon Pike Nutter Fort, WV 26301 304-969-0033

easy-to-navigate digital site featuring 12 sections, addressing the following key topics: • Business Outlook for the U.S. Energy Industry • Climate Change Initiatives from the Biden Administration • Pipeline & Hazardous Materials Safety Administration Priorities • Environmental Law Developments • Environmental Justice Issues • Appalachian Basin Regional Developments • Coal Mining Regulatory Changes • Expansion of the U.S. Renewable Energy Market • Real Estate & Land Use Developments • Litigation Trends • Changes in Employment & Labor Law • Emerging Technologies Affecting the Energy Industry Joseph K. Reinhart, shareholder and co-chair of Babst Calland’s Energy and Natural Resources Group, said, “The energy industry, once again, is at an inflection point and a moment of resiliency as it experiences a rebound in pricing and recovers from the impact of the global pandemic.

Evidenced by the signing of several Executive Orders, President Biden has made climate change a focal point of U.S. energy policy. The full impact of the new administration’s “government-wide” approach to regulatory and social environmental policies will be unclear for months.

“This transformational time promises to bring significant changes for the U.S. energy industry. It is vital for any energy organization to consider the forewarnings, the risks, and the legal and regulatory implications to its business.”

This edition features commentary from Senator Joe Manchin (D-WV), Chairman of the U.S. Senate Energy and Natural Resources Committee, who spoke with Babst Calland energy clients at a special briefing on June 25, 2021. A link to the webinar recording is available in this Report.

To request a copy of The 2021 Babst Calland Report, click here.

9

Industry Events

Upcoming events planned for 2021 September 1-3, 2021 WV Chamber Summit The Greenbrier White Sulphur Springs, WV Info: www.wvchamber.com September 15-16, 2021 2021 PIOGA Annual Meeting/Sports Outing Locaation TBA Info: www.PIOGA.org > Events September 16-18, 2021 WV Oil and Gas Festival Sistersville, WV Info: https://www.farmcollectorshowdirectory. com/53rd-annual-west-virginia-oil-and-gas-engine-festival/

Industry Intelligence. Focused Legal Perspective.

HIGH-YIELDING RESULTS.

September 17-18, 2021 GO-WV Sports Weekend Bridgeport Country Club/Mountaineer Field Bridgeport, WV/Morgantown, WV Info: www.gowv.com September 20, 2021 BHE GT&S Annual Charity Golf Outing Pete Dye Golf Course Clarksburg, WV Info: gina.m.palmer@dominionenergy.com September 23, 2021 SOOGA Fall Trade Show ESB Community Building Marietta, OH Info: www.sooga.org September 28-30, 2021 Shale Insight Conference Bayfront Convention Center Erie, PA Info: https://marcelluscoalition.org/shale-insight/ November 7-9, 2021 IOGCC Annual Conference Inn at Loretta Sante Fe, NM Info: https://iogcc.ok.gov

Meet our attorneys at babstcalland.com.

Whether it’s a state or federal regulatory matter, local land use or zoning challenge, acquisition of title and rights to land, or jointly developing midstream assets, we help solve complex legal problems in ways that favorably impact your business and bring value to your bottom line.

CHARLESTON, WV I PITTSBURGH, PA I HOUSTON, TX I SEWELL, NJ STATE COLLEGE, PA I WASHINGTON, DC

10 Babst_DrillAd_4.5625x9.25_2020.indd 1

1/30/20 1:55 PM

Sports Weekend

Continued from page 1

Come join us on Saturday, September 18, and cheer on the Mountaineers in the game against Virginia Tech. GO-WV will not have tickets to the game; you need to make your own arrangements for tickets. The game is currently scheduled to have a noon kick-off.

GO-WV’s Sports Weekend attracts the main players and decision makers in our industry in a setting that allows the participants to mix, mingle and network. As a leader in our industry, you recognize the importance of supporting GO-WV, and the benefits of promoting your company’s image. So not only will you want to attend this great event, but you may want to get even more recognition as a sponsor.

By becoming a Sports Weekend sponsor at the diamond, hole or bronze level, your company will receive special recognition throughout the industry by coverage during the event, in GO-WV News at gowv.com and on sponsor boards posted throughout the meeting venues. Diamond Event Sponsors receive a special recognition banner at your sponsored event, including your color logo.

A block of rooms has been reserved at Comfort Suites Bridgeport-Clarksburg for Thursday, Friday and Saturday nights at a rate of $85 (plus tax) per room per night. To make reservations by Friday, September 10, call (304) 933-6497.

In addition, a block of rooms has been reserved at Courtyard by Marriott Bridgeport/Clarksburg for Thursday, Friday and Saturday nights at a rate of $95 (plus tax) per room per night. To make reservations by Friday, August 27, call (304) 9338051.

Please register online for the Sports Weekend as an attendee or sponsor no later than Friday, August 27.

GOpac reminds everyone that this is one of two major fundraisers dedicated to support our industry’s state legislative lobbying efforts. To that end, you are strongly encouraged to take the opportunity to contribute to GOpac, which funds our legislative outreach. Other than cash, contributions to GOpac must be made by personal check only. GOpac is a separate and distinct entity from GO-WV.

FOR SALE Three Small Independent Producing Families, have for offer, 540 Oil and Gas wells, along with 23000 acres HBP of deep rights running right through the Rome Trough. These wells are located in both West Virginia and Ohio. Along with the sale of production and rights , we have offices an yards in various locations, along with Rigs,Trucks, Pipe and all other Oilfield equipment . This allows for the ease of transition with our ongoing concern. If interested please contact Jdial@city.net or 304-416-2126.

11

Explaining your gas bill

Continued from page 2

cess that is required to be filed at the WV PSC

by August 1st of each year. Most utilities do not produce the gas, they simply purchase the natural gas from producers and marketers, sell and deliver it to the consumers. In West Virginia, natural gas utilities do not make any profit from the natural gas itself. In other words, there is no mark up at all on the cost of natural gas that makes up the purchased gas rate. Other costs included with the cost of the natural gas commodity are the cost of transmission of the gas to the utility, the cost of storage of gas, lost and unaccounted for gas, and state B&O taxes. The cost of transmission and storage provided by interstate pipelines is regulated by the Federal Energy Regulatory Commission (FERC). The FERC sets the rates that are charged by interstate pipeline companies to utility companies. These costs for transmission and storage are similar to utility base rates. The cost of the gas and the interstate pipeline charges are reviewed by the PSC. In addition, projected costs for gas for the following year are estimated to determine the future rates. An important thing to note when comparing the purchased gas rate to published gas prices on the New York Mercantile Exchange (NYMEX) shows the cost of natural gas per MMBTU at the well head. In compliance with state statutes, the natural gas rates in West Virginia are volumetric and, in most cases, an MCF of gas acquired by West Virginia utilities contains about 1.1 MMBTU so the price you see published by NYMEX must be increased by about 10%, plus it has to have the transmission, storage, tax costs and over under recover factor added to it to compare to current purchased gas rates. These additional costs can add anywhere from $1 to $3 per MCF depending on the utility.

Infrastructure surcharge rates are relatively new in West Virginia. Some gas utilities in the state began utilizing an infrastructure replacement surcharge in 2016 to help accelerate the replacement of aging infrastructure. These surcharges are usually a relatively small portion of the total cost per MCF, and the rates are regulated by the PSC similar to base rates.

12

This explanation of the rates of natural gas utilities may help explain how the rates for West Virginia consumers are set, but it is also important to explain at least some of the factors that influence the market price of natural gas. As we mentioned above, most utilities in West Virginia do not produce their own natural gas. They purchase the natural gas that is supplied to the consumers from producers either connected directly to the utility or connected to transmission pipelines throughout the country that then deliver the gas to the utility.

These purchases of natural gas are usually based on the NYMEX market price mentioned above. It is a free market based on information from transactions throughout the U.S. Even though there has been much talk about the abundant discoveries of natural gas in formations such as Marcellus, Utica, Barnett and others throughout the U.S. that have made supply abundant, there has also been an increase in demand for gas in other areas, like electric generation.

These changes and trends also affect the price of natural gas. It should also be noted that the utilities can only purchase a portion of its total supply at any given time due to storage limitations, credit limitations and customer demand. Therefore, most utility-purchased gas rates reflect an average of market prices over a period of time and an average of multiple purchase prices.

With all of this said, it is clear to see that the rates for natural gas service in West Virginia cannot simply be compared to the NYMEX price that you may see on the evening news and cannot be expected to remain the same over long periods of time. Even though we have been blessed with abundant natural resources, we must consider all of the factors that go into the pricing of our energy whether it be in the form of natural gas, electricity, coal, oil or renewables. And no matter what choice of energy we use, none of it can be safely and reliably delivered to our homes without employees and infrastructure that are provided by our utility companies. Even though gas may be experiencing small increases in overall cost, it is still a very affordable choice for home heating and manufacturing.

Burd’s Nest

Continued from page 4

All members are encouraged to get engaged in the activities and issues of GO-WV. Here is the committee structure: Standing Committees: • Communication and Education: Chair: Jeff Isner (Pillar Energy)

•

•

•

Vice Chair: Holly Hannold (XTO) Producer Issues Committee: Chair: Doug Douglass (Reserve Oil and Gas) Vice Chair: Jim Pritt (Union Oil & Gas) Vice Chair: Eric Vir (Pillar Energy) Government Affairs Committee: Chair: Chris Weikle (Southwestern Energy) Vice Chair: Greg Hoyer (Diversified Energy) Environmental & Safety Committee: Chair: Bob Radabaugh (S&R Gas Ventures) Vice-Chair : Luz Falcon-Martinez (Antero Resources) • Legal Committee: Chair: Mark Clark (Spilman Law) Vice Chair: Joe Jenkins (Jay-Bee Oil & Gas) • Investment Committee: Chair: Jon Farmer (Arsenal Resources) Vice Chair: Marc Halbritter (Blue Racer Midstream) Special Committees: • Tax and Finance: Co-Chair: Marc Monteleone (Bowles Rice) Co-Chair: Elizabeth Berg (Altus Group) Vice Chair: Don Nestor (Individual Member) • Membership: Chair: Mike Forbes (GreylockEnergy) Vice Chair: Jim Crews (MPLX) Insurance Committee (Restricted to those participating in the Health Insurance Program): Chair: Sam McKown (C.I. McKown & Son) Vice Chair: Stanley Masoner (Petroleum Resources) As stated earlier, we have a strong committee structure chaired and co-chaired by strong, knowledgeable, and competent leaders. As a member, you are invited to participate in any or all committees. If you are interested, please call the office at 304-344-9867 and tell me or any of the staff: Lori, Dee, Katie. You may also email us with this same request. Our email addresses are found at www.gowv.com.

As we now embark on our new 2021-22 membership year, we do so with confidence and in full anticipation of the positive things we can help create or maintain for our industry. We have the leadership, we have the right staff and we have great members who see that this is a merger going right, at the right time and in the right direction!

13

What happened in Vegas

•

•

•

• • • •

14

Continued from page 5

tations in June. Going forward, the Global Plastics Summit is virtual, all other SCUSA conferences are in-person. Shale Crescent USA is presenting an in-person panel at Pittsburgh Chemical Day on October 5th.

Hybrid meetings will become more common if meeting planners treat and engage the virtual attendees the same as the in-person people.

NSA made the virtual attendees feel part of the meeting. They spoke to them, did the same phone polls and other activities as the in-person attendees. There were virtual meeting rooms for them when we had a sharing with those around us and for networking.

One speaker talked about using our talents. Are you using yours? What makes you unique? A life of compare is a life of despair.

Is there a skill you need to add? Let go of guilt or the thoughts you aren’t worthy. You don’t need to be like anyone else. Be yourself. Be authentic. Be relevant.

Recently in my weekly column, I wrote, “based on my experience, it takes a lot more than seven touches in sales using phone, email or social media” (instead of in person contacts). We heard, based on the Journal of Experimental Psychology, face to face meetings are 34 times more persuasive than digital or virtual. Six face to face asks equal more than 200 digital touches.

The pandemic showed us, helping is the new selling. Are you helping your customers or selling them?

Accepting diversity of all types starts with diversity of thought.

Decisions are emotional then justified with logical reasons. People don’t know where to look or who to trust. Be trustworthy.

Some of our very successful friends are still hurting from the pandemic. One friend lamented at lunch, he had to borrow money from his family. That was hard because he was always the one helping them. He never worried about diversified income streams until now. Since our 2019 NSA conference, one very successful woman who looked like she had it all, lost her son to a drug overdose. We don’t always know who is hurting. Sometimes people just need someone to listen to them. Be

empathetic. Be a friend.

• Make the pie bigger so everyone benefits.

NSA was founded on the philosophy of making a bigger pie so everyone can benefit. We can do the same thing in the natural gas industry if we choose. Companies want and need natural gas for fuel or feedstock. My biggest challenge in economic development isn’t the “antis”, government, or convincing companies to come to the Shale Crescent USA. Those are relatively easy. The biggest challenge is getting natural gas to a company that has money and wants a long-term natural gas contract.

We should be promoting natural gas use and creating a larger market. It is an easy sell. We need to make it easier for industrial users to buy.

What happened in Vegas doesn’t need to stay in Vegas. Hopefully something here will help you.

Mourning the loss

Continued from page 8

Cabell, Kanawha and Mason counties. They also developed several other gas production and utility companies in Ohio and operated a water well drilling company to support the sugar cane industry in Colombia, South America for several decades.

Cort was involved with numerous organizations in the natural gas field including IOGA, WVONGA, WV Small Public Utilities Association and Society of Petroleum Engineers. He was a former member of the Board of Directors for United Bank, Inc. and served as President of the Charleston Rotary Club.

While his business interests were primarily in drilling and natural gas, he was active in starting or investing in endeavors ranging from an early chain of ice cream parlors in Colombia, hovercrafts capable of being driven on land or water, meat processing, jet engines, electronic gas measurement, industrial lighting and computer contractor service. While he engaged in various agricultural endeavors on Valdeacort Farm, hay was always his main focus and its improvement, operation and production remained a priority amongst his many activities.

CCS explained

Continued from page 1

6 wells used for CCS. WVDEP is proposing to add Class 6 wells to the UIC Rule in order to issue State permits, provided that the EPA delegates Class 6 program implementation to West Virginia. The comment deadline for the revisions to the UIC Rule was July 23, 2021. GO WV filed limited comments in support of adding Class 6 wells to the Rule and WVDEP’s efforts to obtain primacy for the Class 6 well program.

WVDEP’s revision of the UIC Rule and obtaining primacy for the Class 6 wells program, would bring the decision making process to the local level and presumably make the development of Class 6 wells more attractive to operators. West Virginia has substantial number of potential underground formations that may be used for carbon sequestration. If WVDEP can provide a reliable and reasonable process for the approval of Class 6 well permits for the widespread development of carbon sequestration operations, West Virginia may benefit economically from new investment and employment. Moreover, manufacturing operations and natural gas production may benefit from having a way to manage CO2 emissions.

The federal government is also supporting CCS through a tax credit program. Earlier this year the Internal Revenue Service issued final rules implementing changes to the Sequestration Tax Credit

(“45Q”) for carbon oxide sequestration. The credit is computed per metric ton of qualified carbon oxide captured and sequestered. The amount of the credit, as well as various features of the credit, depend on when the qualifying capture equipment is placed in service. For the purposes of the tax credit, qualified carbon oxide is a carbon oxide that would have been released into the atmosphere if not for the qualifying equipment. To claim a tax credit, the emissions must be measured at the point of capture as well as at the point of disposal, injection, or other use. If the captured carbon oxide is intended to be sequestered, it must be disposed of in “secure geological storage.” 45Q defines secure geological storage to include “storage at deep saline formations, oil and gas reservoirs, and unminable coal seams.” West Virginia is rich in oil and gas reservoirs that may be utilized for sequestration.

These are a couple of policies that may help make CCS a reality sooner rather than later.

Having more tools to manage waste streams can only be good for business in West Virginia. If you questions, please contact Mark Clark at MClark@ Spilmanlaw.com, Joseph Unger at JUnger@ Spilmanlaw.com, or Dave Yaussy at DYaussy@ Spilmanlaw.com.

15

16

GO-WV License Plate Application DMV-54-GO Rev 05/21

West Virginia Department of Transportation

Division of Motor Vehicles

1-800-642-9066 dmv.wv.gov

Application for a Gas & Oil Association of WV License Plate PLATE SAMPLE

A) Applicant/Owner(s) Information ·

Use Name(s) of Owner(s) as shown exactly on current registration card that you wish to register the license plate.

Applicant’s Name Name(s) on Registration Street Address STATE

CITY

ZIP

B) B) Vehicle Vehicle Information Information Year

Make

Title No. Current Plate No.

VIN No.

C) Insurance Information

/

Effective Dates of Policy From:

/

To:

/

/

Policy No.

Insurance Company NAIC Number

Insurance Agent

D) Applicant Certification I certify that all information on this application is true and correct and if I cease to be in good standing with the above organization, I will immediately return the special license plate to the Division of Motor Vehicles.

(X) SIGNATURE OF APPLICANT

DATE

/

/

Phone No. (

)

E) Application Information 1. Anyone is eligible to apply for a Gas & Oil Association of WV license plate.

2. A vehicle must be Class A and have a West Virginia title and license plate in the name of the applicant before a special plate can be issued.

3. The current license plate must be returned to the Division of Motor Vehicles after the special plate is received. After issuance of the special plate, the exchanged plate is canceled and cannot be transferred to another vehicle. There are no refunds.

4. A $91.50 fee will cover the cost of the license plate for the 1st year or a portion of the 1st year. This is a flat fee for all applicants and is not prorated. This plate will expire on July 1st every year and have a renewal fee of $66.50.

5. Send the application and the $91.50 check or money order payable to Gas & Oil Association of WV at the address listed below. Please include your personal property tax receipt or an affidavit from the assessor if your registartion is expiring within 60 days of your application.

Gas & Oil Association of WV c/o Charlie Burd 300 Summers St. Suite 820 Charleston, WV 25301 *** OFFICE USE ONLY BELOW THIS LINE OFFICE STAFF INSTRUCTIONS: Insert the plate numbers on the plate diagram to the left and submit this form to the WV DMV for recording and processing. Be sure to retain a copy for your records.

17

GO-WV Sports Weekend Registration Form

2021 GO-WV Sports Weekend Registration Form

September 17-18, 2021 | Bridgeport & Morgantown, WV Please mail this registration form

_________________________________________________________ with payment by Aug. 23, 2021 to: 300 Summers Street, Suite 820 Company Name Charleston, WV 25301

_________________________________________________________ Early registration ends Aug. 23; after Address that, add $25.00 per person _________________________________________________________ No refunds after Aug. 23, 2021 (unless event canceled) City, State, Zip For additional information call

_________________________________________________________ Lori Miller Smith, (304) 344-9867.

Telephone Contact name for foursome Name

Employer

Member Y/N

Sporting Clays

Registration Fees Only (Does not include golf/sporting clays)

__________ @ $100.00 per member __________ @ $170.00 per non-member

Single Member Golf (includes registration) Single Nonmember Golf (includes registration)

__________ @ $200.00 per member __________ @ $270.00 per non-member

Member Golf Foursome (includes registration)

__________ @ $700.00 per foursome

Nonmember Golf Foursome (includes registration)

__________ @ $900.00 per foursome

Member Sporting Clays (includes registration) Nonmember Sporting Clays (includes registration)

__________ @ $175.00 per person __________ @ $245.00 per person

TOTAL $ __________

18

Golf

GO-WV Sports Weekend Sponsor Form

2021 GO-WV Sports Weekend Sponsor Form September 17-18, 2021 | Bridgeport & Morgantown

________________________________________________________________________________________________ Company Name ___________________________________________________________________________________________________ Contact Name __________________________________________________________________________________________ Address ___________________________________________________________________________________________________ City

State

Zip

___________________________________________________________________________________________________ Telephone

Email

Sponsorship opportunities:

Diamond Event Sponsor _____ _____ _____ _____ _____ _____ _____

$5,500 (includes foursome fee, banner at event, logo on signage, on web site and in newsletter) Registration and player gift Breakfast Lunch Snack and beverage cart Door prizes Player awards Entertainment

Hole Sponsor

$1,000 (includes foursome fee, logo on signage at hole, on web site and in newsletter)

Bronze Sponsor

$500 (includes logo on signage, on web site and in newsletter)

_____ Bronze Sponsor Please click here to register and pay online or return this form to GO-WV by August 23, 2021. Be sure to email a high resolution (300-dpi minimum) version of your company’s color logo to lmillersmith@gowv.com.

Thank you for your continued support!

300 Summer Street, Suite 820 | Charleston, WV 25301 | (304) 344-9867

19

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

h

GO-WV Members As USI Insurance Services, we bring over 25 years of industry experience, a proprietary risk analysis process and a local team all supported by the expertise of more than 4,500 professionals nationwide.

Let us show you how the right plan and the right partner can help protect your company's people and physical assets.

Pete Thackston, Senior Vice President USI Insurance Services 418 8th Street, Suite 301, Huntington, WV 25701 304-638-7281 I Pete.Thackston@usi.comIwww.usi.com

mm.

INSURANCE SERVICES

Risk Management I Property & Casualty I Employee Benefits I Personal Lines I Retirement Consulting

©2014 USI Insurance Services. All Rights Reserved.

20