PIPELINE the newsletter of Panhandle Producers & Royalty Owners Association • January 2016
Export – Can We Get It Passed? In December, U.S. House of Representatives approved - for a second time this year - an amendment offered by Rep. Joe Barton (R-TX) to lift the ban on U.S. crude oil exports. The amendment passed by a bipartisan vote of 255-168 and was included in a larger House energy package. Support to lift the ban on crude exports continues to grow and last week's vote is further evidence that lawmakers view crude oil exports as a top priority. While Saudi Arabia cannot keep worsening the oil glut forever, as things stand we have to assume that its current production level will last at least through the end of 2016. Iraq has also boosted its oil production and Iran is gearing up to sell its crude oil once again on the global market. As you've surely noticed the dramatically lower gasoline prices, the U.S. is awash in crude oil, pushing inventory levels higher, which has in turn helped push crude oil and gasoline prices lower. As barrels of crude oil continue to stockpile in the nation's midsection, pressure is intensifying on policymakers to lift a 40-year ban on U.S. oil exports. If the U.S. begins to allow oil exports, it would likely mean a brighter future for the oil producers drilling and pumping oil out of the ground. If there are losers it will be those folks from the refining community railing against lifting the ban. The lower crude oil prices have helped U.S. refiners because the costs of what they are buying has come down significantly producing greater profit for downstream companies. WTI crude oil is depressed because it is landlocked. If we had the opportunity to export that could contribute to higher prices. Higher crude prices would benefit oil producers but it could potentially hurt the profit margins of refiners. The big issue is that we are still producing too much crude oil globally accompanied by diminished global demand. Slowing foreign economies and an oversupplied oil market are still expected to keep a lid on crude oil prices into 2016. Some energy analytics forecasts a $56 annual average for crude oil in 2016. However if the U.S. were to lift the oil export ban oil could be sold to more than just the U.S customers or consumers. Going forward China's economy will recover and there should be more demand. Oil producers are eager to expand their customer base. "The biggest of the big oil will jump on the opportunity. They have the scale and the logistical resources – and often the global connections already in place to find customers and get the tankers moving," says Hilary Kramer, hedge fund manager and founder of the GameChangers investment newsletter. Oil producers near the Gulf Coast ports are seen as benefiting the most if the oil export ban is lifted, with their easy access to shipping lanes to Europe and Asia.
Export—Can we get it passed? ................. 1 President’s letter......................................... 2 Executive VP letter ..................................... 3 Expiring tax provisions ............................... 4
Markets ....................................................... 5 Fault found with the facts ............................ 6 RRC chairman letter ................................... 8 Casenote................................................... 10
Saudi Arabia’s credit rating ...................... 12 Texas Petro Index .................................... 13 Locations & Permits ................................. 14 Membership update.................................. 16
Greetings to you all! Here’s to bidding good riddance to 2015 and praying that 2016 is a better year for our industry. Many, many thanks to all of you for renewing your membership and supporting PPROA as we continue to represent you and keep you informed regarding what’s on the horizon. Christian and Tom Ladd graciously hosted our PPROA Christmas Party in their beautiful home. It was such a treat to celebrate the season in such fabulous surroundings and enjoy their amazing artwork. Sharing food and drinks with friends and colleagues while also getting acquainted with new faces is such an enjoyable benefit of being a part of the PPROA family. PPROA President Stacey Ladd
Judy is currently traveling around the PPROA service area to educate communities and groups about the important role of oil and gas industry to local economies, our ability to safely produce, and the value of becoming a part of our organization. She has already booked various “town hall meetings” and would love to speak at your event. Please call the PPROA office to make those arrangements.
As a friendly reminder, the Tenth Edition of the Panhandle Petroleum Directory will be published this spring. This directory is a valuable tool for everyone who works in the oil and gas industry in PPROA’s three-state service area. It will be provided to everyone listed as well as to school and public libraries through the region. There is no cost to be listed and it’s not necessary to be a PPROA member to be included in the directory. Advertising in the directory is a great value as it has a two-year life and is always well utilized. Advertising commitments are due January 8th – sign up for one that best meets your needs. Don’t forget to complete and return your free listing information as soon as you receive it! Once again, thank you for your support.
Lean and Mean in 2016! No doubt in the 86 years PPROA has been in business, our membership has seen the ups and downs of our industry many times over. Each time it is difficult to face regardless of tenure. Jobs are lost and gained. Emotions spent. Times are good then they are bad and then it is good again. Sometimes it is just plain hard to deal with. The oil patch IS different from most other employers I have had in my professional life. “Oil EVP field trash” as we were sentimentally nicknamed long ago, for the most part, was truly Judy Stark connected to the men and women who were and are the backbone of their business. They care. It’s a marriage of sorts. They truly feel the consequence of those “hard times” and do whatever is necessary to hold onto the people and relationships that have “seen them through”. This time will be no different. Every day there is a different spin on where we will be by year end 2016 and I can confidently say “I don’t know”. I can say that we are here no matter what. PPROA is here as an industry advocate representing your interests both at the state and federal levels of government. Our goal is to assure energy policies will be those in which our members can survive, grow and prosper. My job is to disseminate both pertinent and critical information not just to members of the association but to the general public as well. Unfortunately, there are significant misunderstandings about fossil fuels and I would love to share my knowledge and love of this industry and its’ people. If you are a member of a community group that needs a speaker, I would like to be that speaker. I am currently contacting PPROA members and leadership to help me get in front of not only of past and present members of PPROA but also business clubs, monthly chamber meetings and industry groups to share our history, where our industry is in terms of past, present and future in an effort to provide a spark of hope and understanding of exactly what does PPROA do? Believe it or not I do get that question, a lot. Even though this is not a legislative year there are still bills that are passing through the legislature just before year end. In January the peer industry associations will be meet to determine what issues we need to tackle before the 2017 legislature. We will have a year and a new President by the time we all meet in 2017. Keep your fingers crossed! Lean and Mean in 2016! We will survive!
Expiring Tax Provisions More than 50 tax provisions that Congress routinely extends on a yearly basis expired at the end of 2014. Each year they are extending the provisions later and later, creating uncertainty for taxpayers on whether they can depend on these tax incentives or not. This leaves taxpayers wondering about their projected tax liability. You may wish to review expiring provisions to see how you will be affected if they are not extended. Each of these tax benefits expired at the end of 2014 and will not apply in 2015 unless Congress acts. The list below only includes those that most likely will impact individuals and small businesses: Teachers' Above-the-Line Expense Deduction – Elementary and secondary teachers have been allowed to deduct up to $250 for classroom supplies without itemizing their deductions. As an alternative, teachers can deduct these expenses as a charitable itemized deduction if they work for a public school or charitable organization and obtain the required documentation verifying the expenses. Principal Residence Acquisition Debt Forgiveness Exclusion - When a lender forgives debt, the amount of the debt forgiven is income to the borrower; and, although the law allows a taxpayer to exclude that debt relief income if the taxpayer is insolvent, many taxpayers with this problem were not insolvent. Congress then passed a law allowing debt relief income from the discharge of qualified principal residence acquisition debt to also be excluded from one's income. Excludable Commuter Transportation and Transit Passes – The tax law allows an employer to reimburse, tax-free, an employee for qualified parking, certain commuter transportation and transit passes. The monthly maximum has been the same for all three ($250 in 2014). The nontaxable amount of commuter transportation and transit passes will drop to $130 in 2015 unless extended. General Sales Tax Deduction – This temporary provision allows taxpayers to take a deduction for state and local general sales and use taxes in lieu of a deduction for state and local income taxes. Residents of states that do not have a state income tax will end up without either deduction. Qualified Conservation Contributions – This special rule for contributions of capital gain real property made for conservation purposes allowed qualified conservation contributions to be deducted up to 50% of a taxpayer’s AGI (100% for qualified farmers and ranchers). IRA to Charity Contribution – A temporary provision allowed taxpayers age 70½ or older to directly transfer up to $100,000 from an IRA to a qualified charity without including the distribution in income, and it would also count towards their required minimum distribution. Bonus Depreciation – This incentive was for businesses to invest in equipment and boost the economy, this provision allowed businesses to take bonus depreciation in the first year the property is placed in service. At one time it was 100%, but was 50% in 2014. If bonus depreciation is not extended, the equipment will have to be depreciated over the equipment’s useful life, generally 5 or 7 years. Sec 179 Expense Deduction – Since 2010 Congress temporarily increased the Sec. 179 expensing limit from $25,000 per year to $500,000. The property cost limit phase-out threshold was also increased to $2 million. Without extension the maximum deduction will return to $25,000 with a $200,000 cost limit. Qualified Real Property Sec 179 Deduction – For years 2010 through 2014, the definition of qualified property for purposes of the Sec 179 deduction was temporarily amended, with some limitations, to include Qualified leasehold improvement property Qualified restaurant property Qualified retail improvement property Without an extension, these properties will no longer qualify for the Sec 179 expense deduction. 15-year Life – A temporary provision allows 15-year straight-line cost recovery for qualified leasehold improvements, qualified restaurant buildings and improvements, and qualified retail improvements. Without an extension, these items will have to be depreciated over a 31-year life. Where Congress left off this summer was with a Senate bill that would extend the provisions for 2015 and 2016 and House legislation that would only extend a few of the provisions for 2015 only. With the partisan battles going on in Congress, the distraction of the upcoming elections and the holiday recesses just around the corner, what will happen to the extender legislation is anyone’s guess at this point. If history is an indicator, passage will come very late in the year. If you have questions regarding any of these and other deductions, feel free to call our office. Ed Nichols may be contacted at (806) 355-8241 or firstname.lastname@example.org
Fault found with the facts in the President’s presentation in Paris On December 4, at the UN Climate Change Conference in Paris, Christina Figueres, the UN’s top climate change official, made clear, that the meeting isn’t “about the temperature”—which she said “is just a proxy.” Instead, she revealed: it “is about the decarbonisation of the economy”—which means ending the use of fossil fuels, such as natural gas, oil, and coal. World leaders spoke on the opening day of the conference where each was given three minutes to speak. All followed the rules and stayed within the limited timeframe—except for President Obama, who over-spoke by nearly five times what he was allotted and ignored the frequent beeps designed to signal that time is up. What did he have to say that required 14 minutes of prepared remarks? Obama’s speech was filled with hyperbole and distortions such as these: The sea is already swallowing villages The above statement is referencing his trip recent to Alaska and likely is describing Kivalina—a village of indigenous people that he flew over on Air Force One. It is located on a barrier Island, a spit of land not reachable by road. By nature, barrier beaches, islands and other ephemeral structures are constantly changing. For example, in the 1990s the National Park Service had to move the iconic Hatteras Lighthouse because its barrier island had moved away from the ocean and towards the sound side; this migration of the Outer Banks has been ongoing the last 10,000 years—long before any talk of “climate change.” Despite increasing CO2 levels, the National Oceanic and Atmospheric Administration tide gauge station closest to Kivalina is in Nome, AK. It shows no sea level rise in that part of Alaska. Kivalina may face changes due to nature, but not because of fossil fuels. Glaciers are melting at a pace unprecedented in modern times During his Alaska trip, Obama visited Exit Glacier, near Seward. Historians, geologists, Park employees, and glaciologists have been keeping track of glaciers for hundreds of years, and the records for Exit Glacier are no exception. The records show for more than 100 years, Exit Glacier has been retreating, but the maximum retreat rate was 300 feet per year in 1918. Last year Exit Glacier retreated a mere 187 feet. Near Exit Glacier, at Seward Alaska, sea levels, as measured by the tide gage there, are actually falling. Submerged countries. Abandoned cities. Here, based on later comments, we can guess that he is referring to the coral islands of the Pacific. However, researchers J. R. Houston and R. G. Dean examined 57 tide gages: East, Gulf, West, Alaskan, Aleutian and Island having 100-yearlong periods of record and they show no late 20th century acceleration of sea level rise. Additionally, recent research confirms that of Charles Darwin on the HMS Beagle in the 1830s: corals keep up with rising seas. In July 2014, Science Magazine published a report titled: “Warming may not swamp islands.” It states: “Studies suggest that atoll islands will rise in step with a rising sea.” These three examples are a sampling of the extreme statements Obama offered. Had he stuck to his three-minute timeframe, he might have had to acknowledge that temperature is just a proxy. What this is really about, as Figueres previously revealed, is “a complete transformation of the economic structure of the world”—which will put America in deeper debt and cost everyone more. But that would be a tough sell to average Americans who aren’t looking for a complete transformation of the structure of the world—which sounds a lot like the goal of the terrorists who attacked Paris.
The author of Energy Freedom, Marita Noon serves as the executive director for Energy Makes America Great Inc. and the companion educational organization, the Citizens’ Alliance for Responsible Energy (CARE). She hosts a weekly radio program: America’s Voice for Energy—which expands on the content of her weekly column. Follow her @EnergyRabbit.
DAVID PORTER TEXAS RAILROAD COMMISSIONER November 16, 2015 The Honorable Jeh Johnson Secretary, U.S. Homeland Security Washington, DC 20528 Secretary Johnson, In light of the tragedy in Paris, I feel compelled to reiterate concerns I have vocalized about the security of our energy industry –the backbone of our state and national economies – and more importantly, about the safety and well-being of Texans.
As I reported last year, the failure of the federal government to secure the U.S. border has endangered Texas’ critical energy infrastructure. More than 425,000 miles of pipeline are in place to carry our state’s oil and gas to market, and a significant portion of this infrastructure is in the Eagle Ford Shale in South Texas, which remains vulnerable due to its proximity to the unsecured border. Recent history shows us that ISIS attacks against oil and gas pipelines and facilities are a modus operandi that they may use against one of Texas’ most abundant and valuable economic resources. Less than five months ago, ISIS conducted a coordinated attack on three continents, which included a natural gas plant in France that also left one employee decapitated. Other stories include reports from Egypt where radicals attacked their own country’s energy infrastructure to destabilize the government. Furthermore, Yemeni terrorists attacked major oil pipelines as a tactic in their war against the West. The Yemeni oil minister said that these attacks cost their country nearly $1 billion in lost revenue in 2012. I shudder to think what these terrorists would do to the U.S. when they are willing to launch these kinds of attacks against their own countries. Given the fact that Texas accounts for nearly 40% of U.S. crude oil and almost 30% of our country’s natural gas, events like this could have a potentially devastating impact on our state and national economies. Mr. Secretary, the Railroad Commission of Texas (RRC) is charged with regulating our state’s energy industry, which includes conducting safety inspections on oil and gas facilities and infrastructure. Because of the drilling activity in the Eagle Ford Shale formation in South Texas, thousands of miles of pipeline and countless processing facilities have been built over the last several years. While I understand that Homeland Security does work with the oil and gas industry to ensure the security of a few large processing and refining facilities in Texas, the large majority of the thousands of miles of pipeline and facilities in South Texas remains unsecured. The unsecured border not only threatens Texans, but also our national security and our strategic oil and gas infrastructure. A report that originated from within the U.S. Customs and Border Protection (CBP) reveals that a significant number of OTM’s are taking advantage of a recent flood of illegal aliens in Texas and as a result, occupying the attention of your agents. These illegal aliens are not just known to be from the Mexican drug cartels but also from nations that sponsor terrorism, as stated in this 2014 report: “Twenty-eight individuals from Pakistan were caught attempting to sneak into the U.S. this year alone, with another 211 individuals either turning themselves in or being caught at official ports of entry. Thirteen Egyptians were caught trying to sneak into the U.S. this year alone, with another 168 either turning themselves in or being caught at official ports of entry. Four individuals from Yemen were caught attempting to sneak into the U.S. by Border Patrol agents in 2014 alone, with another 34 individuals either turning themselves in or being caught attempting to sneak through official ports of entry.” (Source: Brietbart, 2014)
While industry and law enforcement agencies have done an amazing job at stepping up their own local security efforts, the responsibility to secure our border should lie squarely with the Department of Homeland Security. The Railroad Commission’s mission is “to serve Texas by our stewardship of natural resources and the environment, our concern for personal and community safety, and our support of enhanced development and economic vitality for the Porter cont’d p. 12
CASENOTE Potts v. Chesapeake Exploration, L.L.C. held that the net-back method should be used to determine market value at the point of sale when there are no comparable sales at the point of sale. The parties aligned as Lessor and Lessee under an oil and gas lease which provided: The royalties to be paid by Lessee are: . . . on gas . . . the market value at the point of sale of 1/4 of the gas sold or used . . . . Notwithstanding anything to the contrary herein contained, all royalty paid to Lessor shall be free of all costs and expenses related to the exploration, production and marketing of oil and gas production from the lease including, but not limited to, costs of compression, dehydration, treatment and transportation . . . . Payments of royalties to Lessor shall be made monthly and shall be based on sales of leased substances . . . arrived at through arms length negotiations. Royalties to Lessor [for] leased substances not sold in an arms length transaction shall be determined based on prevailing values at the time in the area. The Chesapeake entity acting as Lessee sold the gas at the well to its affiliate, Chesapeake Energy Marketing, Inc. (“CEMI”). CEMI transported the gas far downstream to sell to unaffiliated purchasers. To determine market value at the well, Lessee used a net back price from CEMI’s downstream sales to unaffiliated purchasers. The court’s analysis relied principally on the Texas Supreme Court’s ruling in Heritage Resources, Inc. v. NationsBank, the leading Texas case regarding deduction of post-production costs. Heritage featured leases which similarly provided that royalties would be paid as a percentage of “market value at the well,” a “no deductions” clause, and a wellhead point of sale. Heritage held that market value at the well could be based on a net-back calculation from points of sale downstream from the wellhead. There are two methods which can be used to determine market value at the well. The preferred method is the “comparable sales” method, which looks to similar sales in the vicinity of the wellhead. If comparable sales are not readily available, the “net-back” method may be used. This method begins with the first point downstream at which market value can be sufficiently identified, and then works backwards by subtracting post-production expenses back to the wellhead. Although the net-back method deducts post-production costs, the court noted that such deductions are “nothing more than a method of determining market value at the well in the absence of comparable sales data at or near the wellhead.” The court held here that the lease unambiguously provided lessors’ royalty would be a percentage of the market value of the gas at the point at which it was sold. Consequently, “had [Lessee] sold the gas at a point downstream from the wellhead . . . [p]ost-production cost incurred between the wellhead and the point of sale could not be deducted.” Because the point of sale occurred at the well, when Lessee sold to CEMI, the circumstances were indistinguishable from the circumstances in Heritage. Accordingly, the court determined that these post-point of sale deductions were a means of ascertaining market value and not a “burden” on the value of the lessors’ royalty. Lessor contended that under the lease language providing that “royalties . . . shall be based on sales . . . to unrelated third parties,” a wellhead sale to an affiliate could not be the point of sale for the purpose of determining whether to deduct post-production cost. The court reasoned that the lease specifically contemplated sales to related parties and resolved that issue by providing that royalty would “be determined based on prevailing values at the time in the area,” not at the ultimate point of sale in the event of a distant downstream transaction. The significance of this case is the reaffirmation of Heritage as the controlling law in Texas regarding deduction of post-production costs. Jeff McCarn may be contacted at (806) 345-6340 or email@example.com
Saudi Arabia’s Credit Rating Outlook Cut to Negative – What Does That Mean For US? Saudi Arabia, the world’s largest oil exporter, had the outlook on its credit grade cut to negative by the S&P while other struggling energy-producing nations also had their ratings lowered. The rating company also cut the grades of Oman, Bahrain, Kazakhstan and Venezuela by one step, citing lower oil prices. Saudi Arabia, which relies on oil and gas for about 90 percent of government revenue and for 85 percent of its exports, could face “sustained” budget deficits over the next few years if low crude prices persist. Not even the mighty Middle East can survive cheap oil forever. Saudi Arabia is not as rich as thought. The International Monetary Fund warned if oil stays around $50 a barrel, most countries in the region will run out of cash in less than five years. That includes OPEC leader Saudi Arabia as well as Oman and Bahrain. The IMF said low oil prices will wipe out an estimated $360 billion from the region this year alone. Huge budget surpluses are quickly swinging to massive deficits as oil prices have crashed to around $45 from over $100 last year. Spending has gone up as many of these countries are grappling with regional violence and turbulent financial markets. The oil kingdom is facing a huge budget deficit caused not only by the low oil prices but a sharp rise in military spending forcing the government to raid reserves. Saudi Arabia has already burned through almost $62 billion of its foreign currency reserves this year and borrowed $4 billion from local banks in July -- its first bond issue since 2007. Its budget deficit is expected to reach 20% of GDP in 2015. That's extraordinarily high for a country used to running surpluses. Capital Economics estimates that government revenues will fall by $82 billion in 2015. The IMF is forecasting budget deficits through 2020. Saudi Arabia’s aggressive fight to defend OPEC's share of the global oil market has led to a massive supply glut and at the same time refusing to cut output hoping to drive other producers, such as U.S. shale companies, out of business.
According to Texas petroleum geologist Jeffrey J. Brown and Dr. Sam Foucher, it’s not just about production. The key issue is translating production into exports, against rising rates of domestic consumption. Brown and Foucher showed that the inflection point to watch out for is when an oil producer cannot increase the quantity of oil sales abroad, because of the need to meet rising domestic energy demand. They found that from 2005 to 2015, Saudi net oil exports have experienced an annual decline rate of 1.4 per cent. Citigroup backs them up, recently predicting that net exports would plummet to zero in the next 15 years. Even though we may go through some tough spots, hope may be on the horizon. The hope that at some point the US oil and gas industry, whether it be E&P, transportation or refining, will ban together, devise a methodical, cohesive plan and not let foreign markets dictate our outcomes.
Porter cont’d from p. 8
benefit of Texans.” In light of these facts, I would encourage you to pressure the White House and instruct Customs and Border Protection to take these concerns seriously, instead of waiting until it is too late. My office is at your disposal to provide advice and counsel, so we can take this issue head on, and ensure that our people and infrastructure are protected from any and all nefarious groups. I look forward to your prompt response as we work together to develop a solution to this important matter.
Reprinted with permission.
Active Drilling Locations By County - PPROA Service Area Texas Panhandle/western OK, SW KS - 12/11/15 RigData, Inc. Hemphill—cont’d Nomac Unit Unit Lipscomb Cactus Ochiltree Kenai Latshaw Oldham Unit Wheeler Nomac Nomac
KANSAS Clark Duke
OKLAHOMA Ellis Roger Mills TEXAS Hardeman Steinberger
Apache Le Norman
Le Norman BP America Texakoma BP America Remnant BP America Apache Le Norman Tapstone
Data provided by RigData.com
Drilling Permits By County - Dist. 10 11/11/15 – 12/14/15 DrillingInfo.com
Operator Hemphill BP BP Le Norman Le Norman Le Norman Le Norman Le Norman Le Norman Le Norman Le Norman Unit Unit Unit Lipscomb BP BP
Pantera Ochiltree BP Remnant Potter Apache Sherman J. W. Resources Wheeler Apache Tapstone
11/17/2015 8,000 11/12/2015 7,000
11/24/2015 14,510 11/17/2015 13,500
Hoover Paul Ramp Lewis Jones Hyde Walter Ramp Ramp Shell Vollmert Dixon Abraham
11/19/2015 11/20/2015 11/24/2015 12/1/2015 12/2/2015 12/4/2015 12/4/2015 11/24/2015 12/2/2015 12/2/2015 11/17/2015 12/4/2015 11/24/2015
12,700 12,500 9,000 12,000 12,000 12,000 12,000 13,000 13,000 9,000 11,330 12,160 11,060
16 PRSRT STD U.S. POSTAGE
3131 Bell St., Suite 209 Amarillo, TX 79106 (806) 352-5637 firstname.lastname@example.org
Permit No. 664 Amarillo, TX
Published ten times a year by the Panhandle Producers & Royalty Owners Association OFFICERS President Stacey Ladd WBD Oil & Gas, Inc. Past President Greg Graham Kismet Properties, Inc. Vice Presidents Todd Lovett Mewbourne Oil Company Thomas G. Ladd Laddex, Ltd. Secretary Doug Saunders Taylor/Herring Co. Treasurer Jeffery A. McCarn Brown & Fortunato, PC EXECUTIVE COMMITTEE Bill Aikman Tascosa Land Resources Preston Boyd Valero Energy Corporation D. Clay Holcomb F.G. Dragons, LLC Juanita M. Malecha Pantera Energy Company Jason Manning Manning Land, LLC Scott Peeples Fortay, Inc. Leon Roberts CRL Pump & Supply, Inc. Currie Smith ACS-ODS Oil & Gas Patrick Weir Underwood Law Firm STAFF Judy Stark - Executive V.P. Cynthia Johnson - Office Manager
RRC District 10 Production Data Updated data unavailable at printing. This section will resume next issue.
Newsletter changes Beginning with the January 2016 Pipeline issue, a mailed hard copy newsletter will be part of the corporate, producer and support company membership dues. These members will still have the opportunity to opt for online access. All other memberships will have online access via email notification or through the link made available at www.pproa.org.
In Memoriam Lester Leroy Wiles Jr., 103, died Monday, Dec. 7, 2015, in Amarillo. Graveside and memorial services were December 10th.. Mr. Wiles served on the Borger ISD school board, was a 60-year member of Borger Rotary Club, a charter member of Faith Covenant Church and past president of PPROA. Survivors include his wife, Alice of Canyon; a son, Mike Wiles of Round Rock; seven grandchildren; and 16 great-grandchildren.