July 2021 GO-WV News

NEWS

The Voice of the Gas and Oil Industry

July 2021

Federal Court rules on WV royalty statute The United States District Court for the Northern District of West Virginia recently held that a 2018 amendment to W. Va. Code § 22-6-8 (the “Flat Rate Statute”) “clearly does not apply retroactively.” Although the Supreme Court of Appeals of West Virginia has not yet addressed this issue, this federal court decision is indicative of how the highest court in West Virginia may answer the question raised by plaintiffs in royalty litigation across West Virginia: Does the 2018 amendment apply retroactively to alter the way royalties are paid for wells drilled on a flat rate lease before May 31, 2018?

In Corder v. Antero Resources Corporation, Civil Action No. 1:18-cv-30 (N.D. W.Va. May 12, 2021), the Court analyzed several issues related to the payment of oil and gas royalties pursuant to various royalty provisions. One of the leases at issue was what is commonly referred to as a

“flat rate” lease, under which the lessee was required to pay “$100 per year for each and every gas well obtained on the premises[.]”

Flat rate leases are governed in West Virginia by W. Va. Code § 22-6-8, which was Jennifer Hicks originally enacted in 1982 Babst Calland, and first amended in 1994, to Attorneys at Law require that no permit for a flat rate well would be issued unless the lessee swore by affidavit that it would pay the lessor no less than one-eighth of the total amount paid to or received by or allowed to the lessee at the wellhead for the oil and gas so extracted, produced or marketed. In 2017, in Leggett v EQT Prod. Co., 800 S.E.2d 850, 862 (W. Royalty ruling Continued on page 17

Register now to attend 2021 Summer Meeting

Register now for the 2021 GO-WV Summer Meeting at The Greenbrier in White Sulphur Springs, West Virginia, on August 1-3.

You won’t want to miss the excellent lineup of speakers during the industry presentations on Monday and Tuesday.

Monday morning’s session, from 8:30 to 11:00 a.m. in the Eisenhower Room, will begin with recognition of the 2020 Oil and Gas Man of the Year, Jan Chapman of Key Oil. There will be an update from our Congressional delegation including U.S. Senators Shelley Moore Capito and Joe Manchin, as well as House of Representatives members Carol Miller, David McKinley and Alex Mooney (invited). West Virginia’s House Speaker Roger Hanshaw will share the state perspective on a variety of issues.

The industry update will be shared by Ergon Oil

Purchasing COO Kris Patrick.

GO-WV Co-Vice President and Program Chair Maribeth Anderson will moderate our Environmental Social and Governance Panel. Panelists include: Toby Rice, CEO, EQT Corporation; Michael John, CEO, Northeast Natural Energy LLC; and Richard Maribeth Anderson Hyde, Executive Director, One Co-Vice President Future. WV State Treasurer and Program Chair Riley Moore will speak on fossil fuels and bank lending. GO-WV Co-Presidents Ben Sullivan and Tom Westfall will share closing remarks, followed by the election of an Insurance Committee member.

Summer Meeting Continued on page 19

INSIDE

2 Ben Sullivan 3 Bob Radabaugh 4 Charlie Burd 5 Greg Kozera 6-8 Industry news 9 Michael Forbes 10-12 Spring Swing 13 Kathy Hill 14 Thomas Downs 15 Tim Bigler 16 Industry events 20 GO-WV license plate application 21 Summer Meeting form

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Ben Sullivan GO-WV Co-President

Natural gas industry gives back to WV communities ‘We make a living by what we get, but we make a life by what we give.’

That quote resonates with me and, I am sure, many of you.

I have thought of that quote recently as West Virginia marks the fifth anniversary of the terrible flooding that occurred across the central and southern parts of our state in 2016. While painful to recall the 2021 OFFICERS hardship and struggle of many friends, neighbors and state residents, Presidents: it reminded me of the generosity of West Virginia’s oil and natural gas Ben Sullivan/Thomas Westfall industry during that difficult time.

Vice Presidents: Many may recall the quick engagement by our industry. Gas and Oil Association of WV members banded together to contribute more than Maribeth Anderson/Jeff Isner Secretary: $350,000 to the America Red Cross-West Virginia Region for flood Jason Harshbarger recovery and disaster assistance efforts. And not only did the industry Treasurers: engage financially but many of our members dedicated staff, equipKelly Moss ment and resources to directly aid in cleanup efforts.

In a news release announcing the donation at the time, one of our BOARD MEMBERS industry colleagues said, “The flooding has impacted the entire state.

John Bane, EQT Corp.

We live here, have offices here and local employees here. West VirJim Crews, MPLX ginians support each other during tough times, and the gas industry Carrie Crumpton, CNX Resources is proud to be part of that tradition. We are thankful for the American Ryan Cunningham, Red Cross’ great work during disasters and hope this donation will go Cunningham Energy a long way in helping them assist West Virginians in this time of need Doug Douglass, ConServ Inc. as they recover from the devastating flood waters.”

Kevin Ellis, Antero Resources Those words capture perfectly how I envision most of us feel, and Jon Farmer, Arsenal Resources the commitment we have to helping our state.

Michael Forbes, Greylock Energy And, regardless of the calamity, time of year or reason, our industry Marc Halbritter, Blue Racer Midstream is always there to help.

David Haney, E&H Manufacturing As just one small example, Diversified recently held a cleanup event Holly Hannold, XTO Jon Hildreth, Roy G. Hildreth & Son at the Ronda Cemetery in Cabin Creek. Forgotten by most and long Paul Hunter, Williams neglected, our employees cleared brush, removed small trees, picked Brittany LaPorta, TC Energy up trash, weeded, mowed, dusted off graves, and in some cases, Brett Loflin, Northeast Natural adjusted fallen headstones. More than 30 veterans, dating back to Energy World War I, were identified and American flags were placed at their Rhett Metz, Energy Transfer gravesite.

Christine Mitchell, Dominion Energy During the holiday season, particularly Christmas and ThanksgivMichael Poole, Highlands Drilling ing, the benevolence of the industry is felt in a major way. Toys for Jim Pritt, Union Oil & Gas underprivileged children, donations to local food banks, support for Bob Radabaugh, S&R Gas Ventures organizations helping the under-served, and the list could go on.

Mollie Schall, Crestwood Mistream These gestures, both small and large, are recognized and appreciatChris Weikle, SWN ed by the local community or those directly helped. However, when Members Emeritus: you add up all the assistance of the GO-WV membership – in-kind, Ben Hardesty, Alta Energy financial, volunteered time, etc. – the impact is immense and, in many Lloyd Jackson, Jackson Management Bob Orndorff, Dominion Energy Industry gives back Continued on page 9

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Bob Radabaugh GO-WV Safety Committee Chair

GO-WV and WVU host successful HandSafe seminars The GO-WV Safety Subcommittee, in cooperation with the WVU Safety and Health Extension program, hosted two train-the-trainer hand safety seminars in May, one in Bridgeport and the second in Charleston. We wish to thank Apex Pipeline Services for sponsoring the Charleston seminar and BHE-GTS for sponsoring the Bridgeport seminar.

This program, “HandSafe for the Oil and Gas Employee,” centered on struck-by and caught-between hazards, job safety analysis, hand and finger injuries and hazard assessments created for the high-hazard oil and gas industry.

Training featured a four-hour course divided into eight training modules. The modules covered: hand and finger facts; all about OSHA; safety culture; hand and finger hazards; PPE; machine guarding, tools and lockout tagout; job safety analysis; and hand safety and injury prevention for the oilfield industry.

Ray Dean, TC Energy (left) and Jordan Hildreth, Roy G. Hildreth & Son (right), were just two of many who attended the dual training sessions held in Bridgeport and Charleston.

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Charlie Burd GO-WV Executive Director

From the Burd’s Nest: Apply now for 2021 IOGCC Stewardship Awards As the immediate past 1st Vice Chairman, I want to announce that the Interstate Oil and Gas Compact Commission (IOGCC), is now accepting nominations for its 2021 Chairman’s Stewardship Awards, and ask members to consider submitting an entry.

The IOGCC is an organization with a rich 86-year history of advocating for sound oil and natural gas environmental policy. In 2001, in an effort to recognize and incentivize organizations that go beyond legal mandates to protect and enhance our natural resources and our environment, the IOGCC created the “Chairman’s Stewardship Awards” to reward superior achievement and to challenge organizations, companies, and individuals—nationwide—to develop projects, partnerships, or processes that demonstrate innovation, dedication and passion for improving our environment.

These awards represent the IOGCC’s highest honor for exemplary efforts by the oil and natural gas industry in environmental stewardship, partnership and energy education outreach. This year, the 2021 winners will be announced by IOGCC Chairman, Oklahoma Governor Kevin Stitt, at the IOGCC Annual Conference in Santa Fe, New Mexico, November 7-9, 2021.

Here are four award categories to which you can enter a nomination—for any and all: • The Energy Education Award is presented to a group or an organization that has created a program to educate the public about oil and natural gas and the hundreds of way it affects the lives of Americans each day.

• The Environmental Partnership Award, which recognizes innovative projects led by non-industry organizations with the cooperation and participation of industry.

• The Small Company Award, which recognizes an innovative project by a small oil and/ or natural gas company that demonstrates positive environmental stewardship. Small companies are those that operate in a limited

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area or region.

• The Large Company Award recognizes an innovative project by a large oil and/or natural gas company that demonstrates positive environmental stewardship. Large companies are those that operate nationwide and, in many instances, internationally.

Applying is as easy as accessing the 2021 entry form found here. Please choose the category or categories that best fit your nomination(s) and provide a brief project summary. You may apply on your behalf or nominate another company or individual project. As always, past winners are encouraged to apply with new projects...or, if you have applied in the past and you feel your project has been enhanced, you are even encouraged to resubmit your revamped or enhanced project for further consideration.

Over the years, many former IOGA and/or WVONGA members have had award winning projects or efforts. Here is that list of now previous GO-WV winners: • Antero Resources: 2016 • BP Energy: 2004, 2009 • Dominion Resources: 2002, 2013 • IOGAWV (Just Beneath the Surface Alliance): 2011, 2012 • Southwestern Energy: 2016, 2017 • Williams Company: 2016 • WVONGA (Energize West Virginia): 2010 A complete list of previous winning nominations can be found here.

If you have questions or need more information on the Chairman’s Stewardship Awards, please contact Amy Childers at amy.childers@iogcc. state.ok.us. All nominees will be listed on the IOGCC website along with the project titles.

In closing, I have been an active member of the IOGCC since 2002, and it has been my privilege to serve the IOGCC as its Immediate Past Vice Chairman, Public Outreach Committee Chair and Stewardship Award Subcommittee Chair, and I Burd’s Nest Continued on page 19

Greg Kozera Learned Leadership LLC

The road less traveled This week I was privileged to be part of a panel speaking to the Civic Leaders Fellowship program. It is a summer program for college students in a variety of fields. The program is sponsored by the Parkersburg Community Foundation and WVU Parkersburg. My role was to share leadership information they could implement. These students are our future leaders. I was impressed by the well thought out questions they asked.

They are concerned about the future of our region.

These articulate young people work full time in the program for the summer, four days a week in a field related to their career interests and one day a week with leadership programming. Our country needs good leaders. I liked what I saw. Our future is in good hands if we can continue to develop future leaders like I saw this week.

We talked to the students about the importance of example. People look at what a leader does more than what they say. If a leader wants their people to work hard or be on time for a meeting the leader first needs to work hard and be on time.

If a leader treats people with dignity and respect they will find their followers doing the same. We need effective leaders. Sadly, we see many more followers than leaders. Many of the followers are not even following leaders they are following other followers. We see this routinely in riots or mob violence. People follow other followers based on emotions at the moment later regretting their actions.

In my college dorm room, I had a poster of Robert Frost’s poem The Road Not Taken. The poem was first published in the August 1915 issue of The Atlantic Monthly. Here is the ending: Two roads diverged in a wood, and I-I took the one less traveled by, And, that has made all the difference.

I have always interpreted Frost’s words as, we need to follow our own path and not just follow the crowd. I learned the crowd never goes the best way. They go the average way. Those going the best way are way ahead of the crowd or on the

other path. Leaders don’t follow the crowd. The crowd also goes the safe way. Taking the road less traveled requires risk most people refuse to take.

Back when I was in corporate sales and had a new product, I never took it first to my large corporate customers. It was too risky for them.

They stuck with what had always been successful until they were forced to change. Instead I shared it with my small customers where the owner was the decision maker. If they could see upside value they were willing to take the risk and try something new. These entrepreneurs typically made money on new ideas and got an edge over their large slower-moving competitors.

I challenged the young people this week to be leaders and follow their own path. I warned them it will take courage to do this. The crowd doesn’t always like people who break out and go their own way. I suggested when they look at a problem to solve or a process they want to improve, always start with a blank sheet of paper. Don’t first look at what others have done or are doing. Develop your own ideas. What others are doing probably isn’t the best way. Keep an open mind and search for truth. The best way has yet to be discovered.

Here are examples.

At Shale Crescent USA, four years ago we looked at the U.S. Gulf Coast where almost the entire U.S. petrochemical industry is located. The Gulf Coast has been the right location to build a petrochemical plant for over 75 years. We realized the world changed when the Shale Crescent USA (SCUSA) was producing 30% of the USA’s gas supply up from 3% a few years prior. We believed SCUSA would have an advantage because of its proximity to energy and feedstock. It made sense but we couldn’t prove it until we commissioned IHSMarkit to do a study comparing a cracker built in SCUSA to the Gulf Coast. IHSMarkit found it was four times more profitable for a petrochemical plant to be located here where over 70% of the demand is. In 2018 our Study was presented Road less traveled Continued on page 18

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Industry News

Understanding the benefits of networking and substantiating the time away from work Introduction The Appalachian STEPS Network (ASN) is comprised of health, safety, and environmental (HSE) professionals who work in or support the oil and gas industry. Our membership of 300 professionals includes representatives from both operators and contractors as well as support groups such as consultants, lawyers/attorneys, workers’ compensation risk managers, industry membership organizations, OSHA, NIOSH, WVU, and WV DEP. Our network encompasses the geographic region of West Virginia but also welcomes participation from those in Ohio and Pennsylvania. The goal of this organization is to promote HSE improvement of oil and gas work in the region and to foster a work environment that relies upon open communication and trust.

ASN will ensure participants work together to share information on laws and standards, convene in forums, discussions, or stakeholder meetings on issues to help forge innovative solutions and encourage worker participation by interacting directly with front-line employees and supervisors.

Our Presenters and Topics Each meeting includes several informative presentations on timely, relevant, and controversial topics that spark discussion and the sharing of best practices among participants.

• OSHA and WV DEP Updates • NIOSH and WVU Research and Publication Releases • DOT/DOH Concerns • Newest Products and Product Education • Best Practice Sharing on Programs and Policies • Industry Trends • Professional Development • Quality Assurance, Industrial Hygiene, Ergonomics, Safety, Security, Environmental, Law, Workers’ Compensation, Education, Certification, Continuous Improvement, Risk Mitigation

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Relations ASN builds relations with governmental and industry groups who can benefit from a mutual affiliation. We are in an alliance with WV OSHA, and we partner with Gas and Oil Association of WV (GOWV) and WVU to facilitate free training and education opportunities.

Commitment Our meetings are bi-monthly, or every other month, on the third Thursday of each odd-numbered month, starting at 10am usually for an hour or two via videoconferencing, for a total of six meetings per year. We feel that this frequency properly balances the need for networking and education versus time away from busy schedules.

Executive Committee Officers • President – Chris Warnick, Benchmark Safety, Health, & Environmental Services • Vice President – Wes Marsh, US Well Services • Secretary – Donnie Lindsey, Diamond W Board • Rick Hill, Encova • Jason Ware, Antero Resources • Justin Morell, Mon Valley Integration • Rebekah Hogue • Matt Boggs, Stuck Enterprises/Jacobs Petroleum Advisors • Tiffany Rice, WVU Safety & Health Extension • Anthony Milam, WV OSHA

Industry News

SWN signs agreement to certify and monitor potential emissions from Appalachian production Southwestern Energy (NYSE: SWN) (the “Company” or “Southwestern”) announced today that it executed an agreement to obtain independent responsibly sourced gas (RSG) certification through Project Canary’s stringent TrustWell™ standards and continuous emissions monitoring across its Appalachia basin operations.

Under the terms of the agreement, Southwestern will utilize Project Canary’s independent TrustWell™ analysis platform across its existing and future unconventional Appalachia wells. The agreement expands SWN’s existing relationship with Project Canary, which began in 2017, and, when completed, will increase SWN’s certified gross production to over 3 Bcf per day.

The certification process is set to begin in July 2021, with substantially all certifications expected to be complete by early 2022. Project Canary will also initiate the installation of its Canary X continuous emissions monitoring devices on all SWN’s pad locations throughout the Appalachia basin.

“Creating sustainable value through responsible energy development is a core value of SWN. We are proud to have been first-movers in ESG, including leading performance, disclosure and transparency. This includes emissions performance leadership through rigorous operational design standards and methane reduction initiatives, returning more freshwater to the environment than is used in our operations, and robust chemical disclosure management,” said Bill Way, Southwestern Energy President and Chief Executive Officer.

“In 2017, we saw the potential for a differentiated market that values responsibly sourced gas, and today, we add another milestone by becoming the largest independent producer to certify and continuously monitor its entire base production. Natural gas is a clean, reliable and affordable source of energy and, as a leading producer of natural gas, we are proud to be a part of a lower carbon future.”

Southwestern Energy certified its first wells in 2017 and has since completed six separate RSG sales agreements. Southwestern has a proven track record of ESG performance including reporting the lowest GHG intensity among AXPC peers in the annual EHS survey, achieving a methane intensity that is 85% better than the target set by ONE Future, reporting five consecutive years of freshwater neutrality and returning over 14 billion gallons of freshwater to the environment.

Project Canary, a Denver-based B-Corp, is the leading provider of continuous emissions monitoring technology and responsibly sourced natural gas certification through its TrustWell™ operational analysis program. More than 600 unique data points within 24 operational categories, including 12 dynamic scores for continuous improvement, are included in a TrustWell™ analysis, making it the market’s most rigorous certification and ongoing monitoring process. Operators that earn top TrustWell™ rankings utilize the highest standards and practices across their operations.

“Southwestern Energy’s longstanding sustainability leadership has positioned the company for continued success. We are grateful to work with their entire team to further advance their most critical ESG goals through site-level certification and continuous monitoring data,” said Chris Romer, co-founder and CEO of Project Canary.

“The differentiated market for RSG is expanding quickly and independent, third-party certification ensures that the demands of global end-users, with heightened sustainability demands, will be met and exceeded through the energy transition, where RSG will play a central role.”

This marks more than three-dozen agreements Project Canary has entered into with companies across the energy value chain, reflecting the growing differentiated market demand for RSG.

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Industry News

CARES Act award granted to WV Economic Development Authority Kris Warner, Executive Director of the West Virginia Economic Development Authority, has announced that the CARES Act Award has been granted by the United States Economic Development Administration to help businesses recover from the impact of the COVID-19 pandemic.

Manufacturing, industrial, distribution, service and retail businesses in West Virginia are eligible.

The WVEDA will determine its interest rate on all CARES Act loans – calculated at 75 percent of the stated prime interest rate listed in the Wall Street Journal with a floor of 2 percent. Flexible repayment for the initial one-year period of the loan can be negotiated on a case-by-case basis.

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For more information, contact Joe Brouse, senior economic development representative, at 681.313.2795 or joseph.d.brouse@wv.gov.

Michael Forbes Membership Chair

GO-WV Board welcomes two new members in June Please join the GO-WV Board of Directors in welcoming these members approved in June: Sheppard Communication Strategies Matthew Sheppard 114 Java Avenue Hershey, PA 17033 Cell: (717) 675-0264 mattsheppard@strategies.com www.shepstrategiescom

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Terracon Lyndsay Nielsen 912 Morris St. Charleston, WV 25301 Phone: (304) 344-0821 Cell: (801) 414-0024 Fax: (304) 342-4711 lyndsay.nielsen@terracon.com www.terracon.com

Industry gives back

ISP

Continued from page 2

instances, life-changing.

West Virginia’s oil and natural gas industry is committed to helping the people and communities it serves and has contributed tens of millions of dollars and many man-hours to philanthropic organizations across the state. I am proud to be part of an industry that is committed to the betterment of West Virginia, in good times and bad.

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Maribeth Anderson GO-WV Vice President and Program Chair

GO-WV Spring Swing brought us back together...finally!

The 2021 GO-WV Spring Swing Golf Outing Howell, Will Johnson and Jud Lipps. at Berry Hills Country Club in Charleston saw • Second Place: Law Offices of Phil Reale, with a gathering of nearly 90 golfers from around the team members Jimmy Fealy, Charlie Mueller, state gathered for a day of fun and friendly rivalry.

Anthony Reale and Matt Stump.

We’d like to thank our Diamond sponsors for Spring Swing Continued on page 11 their contributions, including Antero Resources (beverage stations and GO-WV golf shirts), Apex Pipeline Services, Inc. (door prizes), Diversified Gas & Oil Corporation (lunch), Southwestern Energy (awards) and USI Insurance Services (continental breakfast).

In addition, we’d like to thank our hole sponsors Allegheny Science and Technology, Apex Energy Services, Babst Calland, Balon Corporation, Bowles Rice PLLC, ConServ, Inc., Dearing, Encova Insurance, EnviroScience, Equipment Depot, Law Office of Philip A. Reale, PLLC, Mountaineer Gas Co., NexTier, Paramount Safety Supplies, Pillar Energy and Thrasher Group.

The following people or teams were the highlight of the day: • First Place: Equipment Depot, with team GO-WV Co-Presidents Tom Westfall (left) of Mountaineer Gas Co. and Ben members Jason Sullivan (right) of Diversified Gas & Oil Corp. enjoyed the Spring Swing event Grimmett, John with John Lawman and Greg Hoyer.

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Spring Swing Continued from page 10

• Last Place: Diversified Gas and Oil, with team members Paul Espenan, Greg Hoyer and John Lawman.

• Longest Drive on Hole 5: Tim Rein, Encova Insurance • Longest Drive on Hole 10: Shane Cunliffe, Waukesha

• Closest to the Pin on Hole 12: Ryan Schwegman • Closest to the Pin on Hole 7: George Patterson, Bowles Rice Prior to the start of the Spring Swing tournament, the attendees observed a moment of silence in honor of Fred Young, a long-time industry icon.

Members and guests register for the GO-WV Spring Swing at Berry Hills Country Club and wait for the shotgun start.

Proud father and GO-WV Executive Director Charlie Burd (far right) enjoyed the great day with Logan Wooddell, Ethan Airhart and son Nathan Burd.

The Pillar Energy team of Eric Vir, GO-WV Vice President and Program Chair Jeff Isner and Trevor Schaffer enjoyed their day at Berry Hills Country Club.

Shown here are Jason Grimmett and Jud Lipps with sponsor company Equipment Depot. The Equipment Depot team won the tournament.

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Spring Swing Sponsors

Thanks to our 2021 Spring Swing sponsors Diamond Sponsors

Hole Sponsors

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Kathy Hill

Ergon

Monthly Appalachian Basin crude oil prices

Register NOW! GO-WV Summer Meeting August 1-3, 2021 The Greenbrier Visit gowv.com 13

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Tim Bigler Direct Energy

Nymex natural gas futures contract

12-Month Forward Strip Average Prices Through 6/28/2021

In addition to getting vaccinated, remember to continue practicing 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

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Industry Events

Various upcoming events planned for 2021 August 1-3, 2021 GO-WV Summer Meeting The Greenbrier White Sulphur Springs, WV Info: www.gowv.com August 19, 2021 24th Annual Divot Diggers Golf Outing Tam O’Shanter Golf Club Hermitage, PA Info: www.PIOGA.org > Events 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 17-18, 2021 GO-WV Sports Weekend Bridgeport Country Club/Mountaineer Field Bridgeport, WV/Morgantown, WV Info: www.gowv.com September 17-18, 2021 WV Oil and Gas Festival Sistersville, WV Info: https://www.farmcollectorshowdirectory. com/53rd-annual-west-virginia-oil-and-gas-engine-festival/ 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

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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

Royalty ruling

Continued from page 1

Va. 2017), the Supreme Court of Appeals of West Virginia interpreted this language as allowing a pro-rata deduction or allocation of all reasonable post-production expenses actually incurred by the lessee, and held that a lessee may utilize the “netback” or “work-back” method to calculate royal-

Thanks to our HandSafe Seminar Sponsors Charleston

Bridgeport

ties owed to a lessor pursuant to a lease governed

by W. Va. Code § 22-6-8(d).

In 2018, following the Leggett decision, the West Virginia Legislature amended W. Va. Code § 22-6-8 to require that in order to obtain certain permits, a flat-rate lessee must provide an affidavit swearing that it will pay the lessor “not less than one eighth of the gross proceeds, free from any deductions for post-production expenses, received at the first point of sale to an unaffiliated third-party purchaser in an arm’s length transaction for the oil or gas so extracted, produced or marketed before deducting the amount to be paid to or set aside for the owner of the oil or gas in place, on all such oil or gas to be extracted, produced or marketed from the well.”

In Corder, the plaintiffs argued that the 2018 amendment to the Flat Rate Statute should apply retroactively to prohibit the lessee from taking deductions of post-production expenses from the plaintiffs’ royalties. The Court ultimately disagreed with the plaintiffs, explaining that “[t]he presumption is that a statute is intended to operate prospectively, and not retrospectively, unless it appears, by clear, strong and imperative words or by necessary implication, that the Legislature intended to give the statute retroactive force and effect.” Corder at 33 (quoting Syl. Pt. 2, Martinez v. Asplundh Tree Expert Co., 803 S.E.2d 582 (W. Va. 2017)). The Court further explained that there is a long-standing principle under West Virginia law that “[n]o statute, however positive, is to be construed as designed to interfere with existing contracts, rights of action, or suits, and especially vested rights, unless the intention that it shall so operate is expressly declared.” Id. (quoting Syl. Pt. 3, Rogers v. Lynch, 29 S.E. 507 (W. Va. 1897)).

The Court found that the 2018 amendment to the Flat Rate Statute does not state in “clear, strong[,] and imperative words” that it applies retroactively, nor does it specify any intent by the legislature to clarify the existing law on flat rate leases or to overrule the holding of the Supreme Court of Appeals in Leggett. Rather, the 2018 amendment prohibits the issuance of any new permit unless the lessee first agrees to pay royalties pursuant to the language of the 2018 amendment. The Court held that, “Based on this, the 2018 amendment clearly does not apply retroactively.”

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Road less traveled

Continued from page 5

on the Main Stage at the World Petrochemical Conference in Houston, Texas. We turned the petrochemical industry upside down. Companies committed to the Gulf Coast or those building projects there were NOT happy with SCUSA. We took the road less traveled.

The common assumption is the USA cannot compete with China in manufacturing. At SCUSA we used the blank sheet of paper approach and are comparing U.S. manufacturing costs directly with China. We are finding U.S. manufacturers can be very competitive with China and are in the final stages of a study that will show the advantages of SCUSA over China. USA manufacturers have an energy and feedstock advantage as well as a large location advantage. U.S. manufacturers have the energy and feedstock advantage because of the work YOU do.

The accepted solution to climate change and global emissions for 30+ years has been the elimination of fossil fuels. In the last 30 years global emissions are still increasing except in the USA. The pandemic helped us realize many critical items are not made in the USA anymore and need to be. We found products made and consumed in the USA have a much lower carbon footprint than the same products manufactured in China using OPEC oil, electricity from China’s coal fired power plants then shipped halfway around the world to the USA. American manufacturers save a lot of money and transportation costs by manufacturing on top of their energy and feedstock and in the middle of their customers. One of the major solutions to global emissions is manufacturing in the USA using U.S. natural gas. There are people following the followers who may dislike this solution.

For leaders, following the road less traveled is challenging and requires courage to go a different way, as per Robert Frost “that has made all the difference.” Looking globally at emissions, we need to take the road less traveled and change our thinking. The American natural gas and oil industry has a better solution to global emissions than anything currently proposed. Creating high wage manufacturing jobs in the USA using our gas and oil is a win for a lot of people and the planet.

Others won’t start thinking differently until we do.

Anything is possible.

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1/30/20 1:55 PM

Summer Meeting

Continued from page 1

Tuesday morning’s business meeting will have a greater state focus, beginning with guest speaker Governor Jim Justice. Additional guest speakers that morning are Paul Ruppert of BHE Gas Transmission & Storage and WVDEP Cabinet Secretary Harold Ward (invited).

GO-WV Executive Director Charlie Burd and Philip A. Reale, Law Office of Philip A. Reale, will moderate a panel of West Virginia’s legislative leaders. Panelists from the West Virginia House of Delegates will include Bill Anderson, Dianna Graves and Eric Householder (invited).

Panelists from the West Virginia Senate will include Charles Clements, Mike Maroney, Eric Nelson and Randy Smith (invited).

GO-WV Co-Presidents Ben Sullivan and Tom Westfall will share closing remarks.

In addition to these important industry presentations, you won’t want to miss the fun of GOWV’s Annual Summer Meeting and the good times awaiting you!

Golf tee times are available Sunday morning from 11:06 a.m. to 12:06 p.m. on the Greenbrier Course and Monday on the Meadows Course from 11:17 a.m. to 12:07 p.m. The shotgun-start golf tournament will take place on the Old White course Tuesday, August 3, beginning at 12:30 p.m.

To sign up for the tournament, please contact Hill Herrick at (304) 536-4909 or hill_herrick@greenbrier.com.

Monday begins with the men’s and women’s doubles tennis tournament from 9:00 a.m. to 11:30 a.m. at the Tennis Club. The mixed doubles tennis tournament takes place from 1:30 p.m. to 4:00 p.m. Monday afternoon.

The Trap & Skeet Tournament will take place at The Greenbrier Gun Club on Kate’s Mountain.

Shooting times are available Monday has 9:30 a.m. to 5:30 p.m. and Tuesday from 9:30 a.m. to 3:30 p.m. Practice times will be available on Sunday. Please call (800) 624-6070 to make practice and tournament reservations.

Industry presentations and business sessions will take place on Monday and Tuesday from 8:30 a.m. to 10:30 a.m. in the Eisenhower Room.

Guest speakers will include leaders from both industry and government.

For those not golfing, learn about the sport of croquet or play along with other experts on The

Greenbrier’s beautiful croquet courts with views of the mountains and the spectacular Greenbrier landscape. For your convenience, boxed lunches will be provided to all croquet enthusiasts. Enjoy your meal at your leisure at the croquet venue, as well as an assortment wines and beers for your enjoyment! We will meet at 11:00 a.m. at the Croquet Court (across from the Chapel). You will return to the rest of your day’s activities by 1:00 p.m. The fee for this special event is $150 per person.

Our social events will be spectacular, beginning with the Sunday evening western-themed welcome reception and banquet atop Kate’s Mountain. Come enjoy our traditional buffet of lobster and filet mignon. The Josh Stewart Band will be providing entertainment for this popular comfortable and casual event.

Monday evening features dinner on your own.

Following dinner, wear your GO-WV badge and head to the casino for our After Dinner Reception at 8:30 p.m. The Casino Night fun will feature a private GO-WV bar and the opportunity to enjoy an evening of your favorite casino games. Music and dancing are also available.

Your Summer Meeting adventure concludes Tuesday evening with an awards reception at the Outdoor Pool from 7:00 p.m. to 8:00 p.m. A Caribbean dinner will follow the awards reception, also at the Outdoor Pool, from 8:00 p.m. to 10:00 p.m. This special evening will conclude with music and dancing!

GO-WV will be adhering to all COVID-19 guidelines as shared by the CDC, the State of West Virginia and The Greenbrier relatings to wearing masks and practicing social distancing.

Summer Meeting registration is open online at www.gowv.com. Sponsors can use the form on page 21. See you there!

Burd’s Nest

Continued from page 4

strongly encourage you to find out more about the awards, the process for applying then to apply.

Good luck and let’s see a GO-WV member standing at that awards podium with Governor Stitt in Santa Fe in November!!

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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.

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GO-WV Summer Meeting Sponsor Form

2021 GO-WV Summer Meeting Sponsorship Form

August 1-3, 2021 | The Greenbrier, White Sulphur Springs, WV

_________________________________________________________________________________________ Company Name Contact Person ____________________________________________________________________________________ Address City State Zip _______________________________________________________________________________________ Telephone Email

Sponsorship opportunities:

______ Elite Event Sponsor above $5,000 (call for availability) • Banner hung at sponsored event • Specific signage at sponsored event • Listing on Elite Sponsor board • Logo and name listed in event PowerPoint presentation • Logo listed in event program, web site page and newsletter ______ Diamond Event Sponsor $5,000 • Banner hung at sponsored event • Specific signage at sponsored event • Listing on Diamond Sponsor board • Logo and name listed in event PowerPoint presentation • Logo listed in event program, web site page and newsletter ______ Platinum Sponsor $3,000 • Listing on Platinum Sponsor board • Logo and name listed in event PowerPoint presentation • Logo listed in event program, web site page and newsletter ______ Gold Sponsor $2,000 • Listing on Gold Sponsor board • Logo and name listed in event PowerPoint presentation • Logo listed in event program, web site page and newsletter ______ Silver Sponsor $1,000 • Listing on Silver Sponsor board • Logo and name listed in event PowerPoint presentation • Logo listed in event program, web site page and newsletter ______ Bronze Sponsor $500 • Listing on Bronze Sponsor board • Logo and name listed in event PowerPoint presentation • Logo listed in event program, web site page and newsletter Please return this form to GO-WV, address below, by July 12, 2021. Be sure to email a high resolution (300dpi minimum) version of your company’s color logo and a link to your web site to lmillersmith@gowv.com.

Thank you for your continued support!

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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

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