FUTURE of Power Generation
NGV Driving Economic Growth
POWERING THE NATION
FOR MAKING US BELIEVERS His field is reflected in the world of science fiction. But Arun Ross has made it a reality. His reseach enabled him to co-author the first and only textbook on biometrics, creating a wealth of information for future scientists. Arun Ross - 2012 Recipient The Benedum Distinguished Scholar Award Professor at West Virginia University
Saint Francis Hospital â€˘ #1 In The Market* â€˘ Medical Excellence in Joint Replacement Thomas Memorial Hospital #1 In The Market* Patient Safety for Overall Hospital Care Market is defined from 2012 (FFY2008-FFY2010) arechex Data Charleston, West Virginia Metropolitan Statistical Area (MSA)
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Pass West Virginia Executive on to a friend! West Virginia Executive is published quarterly by Executive Ink, LLC, PO Box 6277, Charleston, West Virginia 25362. All rights reserved. All contents are copyrighted by Executive Ink, LLC; reproduction in whole or part without written permission from Executive Ink, LLC is expressly forbidden and punishable by law. West Virginia Executive is not responsible for unsolicited materials. All opinions expressed within West Virginia Executive belong to the feature’s author and are not necessarily the opinions of the publishers or Executive Ink, LLC employees. West Virginia Executive and Executive Ink, LLC reserve the right to refuse any idea, material or subject matter, especially those of racist, sexist, pornographic or religiously derogating intent. Throughout this issue, trademarked names are used. Rather than denoting a trademark symbol in every occurrence of a trademarked name, West Virginia Executive uses the names in an editorial fashion, with no infringement. All trademarked names are still fully protected and anyone who uses them without permission will be prosecuted. About the Cover Charles Patton, the president and COO of Appalachian Power.
Let Us Bring The Fun To You!
Water Balloon Battle & Water Slides In 2007, when the movie “The Bucket
off your next rental. Mention this ad.
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List” was released, it started a new fad— creating a to-do list for one’s life—and it seems that everyone has a bucket list these days. Ever the over-achiever, I actually have two lists: my “places to travel and adventurous things to do” list and my “West Virginia” list. Many of the items on my West Virginia list have been checked off—I’ve been able to spend time in an underground mine, dangle hundreds of feet in the air in a crane, peer carefully over the edge of the Greenbank Telescope, go on a delicious tour of the Ziegenfelder’s twin pops plant, climb to the very top of the West Virginia State Capitol’s dome (where I met a very large hawk) and see the ins and outs of a wind farm in the Mountain State. All in all, it has been a pretty eventful seven years on the job, and I consider myself blessed. I don’t think I would be representing West Virginia well, however, if I considered that list complete. There are so many other interesting, educational and unique places I want to see, and the longer I work, the longer the list grows with fascinating places in West Virginia to explore.
My West Virginia Bucket List: • Tour a mountaintop mine; • Go spelunking in one of West Virginia’s interesting caves; • Walk across the catwalk of the New River Gorge Bridge; • Tour West Virginia by helicopter; • See firsthand the workings of a Marcellus Shale rig; • Go scuba diving in Summersville Lake; • Explore how a coal preparation plant operates; • Attend the Mountaineer Balloon Festival; • Blow my own piece of glass art and • Ride the lead pony at a horse race. The items on my list are varied and span many industries and interests. You will notice, though, that the energy sector is one I find especially interesting because, in West Virginia, it is an industry that moves quickly and has an effect on the quality of life statewide. In this annual energy issue, we hope to help stir up some conversations that can create connections, solve problems and continue the forward momentum of the energy industry we have all benefitted from.
P.S. If you can think of any other must-see places for my West Virginia list, let me know.
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Letter from the Publishers
Few feuds are as synonymous with
West Virginia or as long-lasting as the one revolving around coal. In West Virginia, we love our neighbors, we welcome visitors and we give to those in need even when we don’t have much to give. Bring up the topic of coal, however, and the lines are clearly drawn. As we present our annual energy issue, we at West Virginia Executive thought we should take the opportunity to explain our collective view on the topic. If anyone asks, we will gladly tell you that our stance is one of pro-energy because energy means jobs. As a state rich in natural resources, we feel that as good stewards we must use what God has given us to survive while maintaining balance and respect for the beauty of our state. We rally behind energy initiatives that create jobs in a way that respects our natural landscape and protects our wildlife, our water sheds and our people. Many people often bring up the fact that a lot of our young professionals are
leaving West Virginia to take jobs in other states, and those young professionals will tell you that there are no jobs to keep them at home. It has been said many times in the last several months that the development of horizontal drilling for the Marcellus Shale is not only allowing our young people to stay home, but is offering the opportunity for those who have moved away to come back. We believe that despite the best efforts of the Obama Administration and the EPA, coal isn’t going anywhere anytime soon. While new regulations mean the closure of three FirstEnergy Corporation coal-fired power plants in West Virginia, this does not limit the country’s need for coal. Instead, it calls for a second battle of the long-held coal war: the battle between Appalachia and Obama’s EPA. While the EPA’s reasoning might be to protect the environment, the supercharged rate at which it is demanding change is not allowing for a progression to cleaner energy but is, instead, killing jobs and hurting families.
While coal will be a foundation of energy production for years to come, we also believe that natural gas is the fuel of the future. The development of horizontal drilling technology for the Marcellus Shale and other shale plays will allow West Virginia to not only stay in the forefront of energy production, but will also allow a revitalization for the manufacturing industry in the Mountain State. Even though we were not awarded Shell Chemical’s new cracker facility, opportunities for additional facilities keep us in the running. Without a cracker facility, we still have what it takes to utilize the ethane from the cracker in neighboring Pennsylvania to manufacture exportable commodities needed across the country and around the world. Some might see the cracker as a major loss for West Virginia; for Mountaineers, it’s simply an adjustment of details in our plan for success with the Marcellus Shale play. The heart of manufacturing will always lie within West Virginia, and our neighboring states will need us in order to further their own success. At the West Virginia Executive, we are in favor of good jobs, economic expansion, manufacturing revitalization and keeping our children and friends at home, and we believe all of this is possible through the power of energy—alternative energy, energy research and energy harvested in a responsible manner.
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IN THIS issue spring2012
The Future of Power
Charles Patton gives some insight into how Appalachian Power keeps the power flowing in West Virginia. By Kensie Hamilton
33 The Challenge to Quit
29 Keeping it in the Family
Weekend Rolodex The Happiest Nation
A West Virginia native finds inspiration in Denmark’s sustainable lifestyle.
By Dave Thompson
Cracking Open the Chemical Industry Cracking is nothing new to West Virginia. The first ethane cracker was built here in 1913.
By Bryan Ward
Discovering Our Past
To celebrate those who lived through the Civil War era, consider visiting the Civil War Discovery Trail.
By O. James Lighthizer
In the Chef’s Corner
Experience fine dining in the tallest dining room in West Virginia at Huntington Prime.
By Mike Bowe
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86 119 112 115 119 125 129 134
The Happiest Nation
Why Older is Wiser
The 50-plus talent pool is a great source for finding new employees in West Virginia.
By Gaylene Miller
Beyond Intelligence and Experience Two experts teach you how to become a more effective leader. By Anthony Marchese, Ph.D.
and Douglas Walters, ABD 126 In the Chef’s Corner
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63 Wild, Wonderful, Wonderful Wired West Virginia
Moving the Mountain State Forward Read about some of the challenges the energy industry is facing and what the experts identify as the solutions. By Kensie Hamilton
Driving Economic Growth
While natural gas vehicles have been around for decades, find out what six industry leaders say you need to know.
Advancing Alternative Energy
West Virginia is taking a lead in meeting the nation’s energy needs through alternative energy technologies. By Courtney Sisk
Reaching a Long-Term Balance West Virginia is a key energy producer. See the positive effects this has on our manufacturing industry. By Joseph Eddy
An Ally for Economic Growth
Companies from across the state have banded together to help educate and inform the public about natural gas. By Doug Malcolm
Navigating the Legal Landmines
A few of West Virginia’s legal gurus show companies and individuals how to avoid some of the legal challenges of the energy industry.
40 58 69 80 95 84 101 91
104 Around the State
44 Don’t Get Lost in the Shuffle 53 A New Lease for Economic Development
A Look at Legislation
Two energy leaders have weighed in about recent legislative changes and the opportunities that lay ahead for coal and natural gas. By Kensie Hamilton
The Next Generation Power Plant
Innovation is at work in the Longview Power Plant, one of the most efficient and technologically advanced coal-fired power plants in the U.S. By Ed Becker
EXECUTIVE BUSINESS 4 Masthead 6 Editor’s Journal 8 In ink 10 in this issue 14 Contributors 47 A Decade of Economic Change 75 Energizing Education 144 ad finder 14
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GIVE SAVINGS THE GREEN LIGHT STATISTIC
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CONTRIBUTORSspring Peter Balash, Ph.D. Peter Balash, Ph.D., is the deputy director for Office of Strategic Energy Analysis and Planning at the National Energy Technology Laboratory in Pittsburgh, PA. Prior to his work with the NETL, Balash worked for the Internal Revenue Service.
Ed Becker Ed Becker is a contracted writer and seminar coordinator with To Go Multimedia. He has been a freelance writer and photographer for over 25 years and his work has appeared in local, regional and national publications.
Jason Bostic Jason Bostic, a graduate of West Virginia Institute of Technology, began his career with the West Virginia Coal Association as an intern in 1998. As the vice president of the association, he now coordinates the activities of the association’s Environmental-Technical Committee and serves as the primary contact with state and federal environmental regulators, Congress and the West Virginia Legislature on environmental legislation related to the coal industry.
Dave Drennon Dave Drennon is the marketing and transportation manager for HG Energy, LLC and oversees the company’s natural gas sales, transportation and purchase contracts. He is finishing his third year as a director of the Independent Oil and Gas Association of West Virginia and is the current chair of their Communication and Education Committee.
Joseph Eddy Joseph Eddy is president and CEO of Eagle Manufacturing Company and the chairman of the West Virginia Manufacturers Association. Eddy, who holds a bachelor’s degree in petroleum engineering from Marietta College, has held engineering and management positions at Amoco, Gulf Oil, Spectrum Resources and Tazwell Corp and started two companies, Oilfield Services Corp. and Enhanced Technologies. 16
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Damian Ferek Damian Ferek is the president of Asayo Creative Inc., a Morgantown-based marketing and design company. In 2011, Ferek and his team started the West Virginia Oil and Gas Expo in Morgantown, WV. He is actively involved with the West Virginia University Children's Hospital Gala Committee, the Board of Directors for the North Central Home Builders Association, the National Multiple Sclerosis Society, the Betty Puskar Cancer Center and Hurry Home Hounds greyhound rescue.
Joseph Garcia Joseph Garcia is an associate in Spilman Thomas & Battle, PLLC’s Charleston office. His primary area of practice is litigation with an emphasis on labor and employment law, MSHA and OSHA, ERISA and managed care and complex immigration matters.
Andrew Graham Andrew Graham is a member at Steptoe Johnson where his practice focuses on the areas of energy and mineral law, real estate and commercial transactions. He is a member of the Independent Oil and Gas Association of West Virginia, the West Virginia Oil and Natural Gas Association and the American Association of Professional Landmen. He received his bachelor’s degree at Shepherd College and his J.D. at West Virginia University.
Eric Kinder Eric Kinder is a member in Spilman Thomas & Battle, PLLC’s Charleston office. His primary area of practice is labor and employment law with an emphasis on wage and hour, employee benefits, ERISA litigation and USERRA.
O. James Lighthizer O. James Lighthizer has served as the president of the Civil War Trust since 1999. Prior to that, he was a partner with Miles and Stockbridge, the secretary of the Maryland Department of Transportation, Anne Arundel County executive and a member of the Maryland Legislature.
Doug Malcolm Doug Malcolm is the vice president of D.C. Malcolm, Inc., where he has worked for over 25 years. He graduated from Penn State University with a degree in petroleum and natural gas engineering. Malcolm is a past president of the West Virginia Small Public Utilities Association and the Independent Oil and Gas Association of West Virginia (IOGA). He is currently serving his third term on the Board of Directors of IOGA where he is in charge of government affairs and also works with public relations initiatives.
Anthony Marchese, Ph.D. Anthony Marchese possesses 16 years of experience in higher education as an administrator and as a professor of organizational leadership and humanities. He has developed award-winning curriculum for traditional and adult students in leadership studies, interdisciplinary studies and philosophy, and he contributed to the design and implementation of a nationallyrecognized student affairs program that drastically increased student retention. Marchese has published numerous articles in research journals and presented at national conferences in many areas.
Jessica McDonald Jessica McDonald is an associate at Steptoe Johnson where her practice focuses on energy law. She received her bachelor’s degree from West Virginia University and her J.D. degree from University of Oregon.
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CONTRIBUTORSspring Gaylene Miller Gaylene Miller has devoted more than 25 years to advocacy and service in the field of aging programs. A native West Virginian, she served as commissioner of the West Virginia Bureau of Senior Services from 1998 to 2001, and she joined the AARP West Virginia staff in 2002, where she has served as the state director since 2009. Miller attended West Liberty University and completed graduate work at West Virginia University. She and her husband, Jim, are actively engaged in the Charleston community.
Ginny Painter Ginny Painter is the communications director for the Marshall University Research Corporation. She has more than 20 years of experience in nonprofit and government public relations and communications, management and administration, most recently at the West Virginia Higher Education Policy Commission, Division of Science and Research. A native of St. Albans, she has a bachelor’s degree in journalism/public relations from Marshall University and a master’s degree in business administration from the University of Charleston.
Gavin Pickenpaugh Gavin Pickenpaugh has been an economist at the National Energy Technology Laboratory in Morgantown since 2008 where he has studied various components of the U.S. coal industry and the relationship between energy and economic growth. Pickenpaugh earned his bachelor’s degree in economics and business administration from the University of Mary Washington and his master’s degree from Virginia Commonwealth University.
Samantha Redd Samantha Redd is a print journalism major at West Virginia University. She is a resident assistant at Arnold Hall and a member of the National Society of Collegiate Scholars.
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Leigh Saville Leigh Saville is the executive director of the Grant County Convention and Visitors Bureau and has been in her position since August 2011. She received her bachelor's degree in public relations from West Virginia University in 2000.
Courtney Sisk Courtney Sisk is a public information specialist with the West Virginia Department of Commerce, focusing on the areas of energy and work force. Originally from Beckley, she now resides in Scott Depot with her son, Andrew. She is a proud graduate of Marshall University.
Jake Stump Jake Stump is a senior writer for University Relations-News at West Virginia University, where he also teaches a journalism course. He earned his stripes as a reporter at the Dominion Post in the early 2000s while earning a bachelor's degree in journalism at WVU. In 2005, the Preston County native joined the Charleston Daily Mail staff for five years before returning to WVU to earn a master's degree in sociology.
Pamela Tarr Pamela Tarr is a member of Jackson Kelly PLLC’s Industrial, Environmental and Complex Litigation practice group and the leader of the firm’s Deliberate Intent Team. Tarr completed the 80-hour underground miners’ apprentice course at the Southern West Virginia Community and Technical College and holds an apprentice miner’s card from the West Virginia Office of Miners’ Health, Safety & Training.
Dave Thompson Dave Thompson has served as the chair of West Virginia University at Parkersburg's Science and Technology Division for the past four years and serves on the board of directors for the National Energy Education Institute as the Region III director.
Teresa Trimble Teresa Trimble joined Huntington Steel & Supply in 1995 on a part-time basis in the accounting department. In 2004, she was asked to develop a formal human resources department for the company and now serves as the department's human resources manager. Prior to her time with Huntington Steel, Trimble served as executive assistant to the vice-president at the University of Kentucky Community College System.
Dana Waldo Dana Waldo was named the senior vice president and general manager of Frontier Communications for West Virginia in August 2010. Prior to joining Frontier, Waldo worked for Appalachian Power Company as its president and COO. He has served on the board of directors of Advantage Valley, the Business and Industrial Development Corporation of Kanawha Valley, the West Virginia Chamber of Commerce and the West Virginia Manufacturers Association.
Douglas Walters, ABD Douglas Walters has over 45 years of experience as an educator, administrator and consultant. Most recently, he was the president and founding partner of Transformation Specialists. Prior to that, he served as a teacher and administrator for the Kanawha County School and as dean of students at the University of Charleston and the College of the Marshall Islands. He is the author of several journal articles and co-authored a book on civic deliberation and the work of higher education.
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S lar Decathl n Country Roads Paving the Path to EnergyEfficient Housing
Log homes typically conjure up visions of rugged cabins tucked deep in the woods, fueled by rustic, stone fireplaces. Soon enough, if a team of West Virginia University (WVU) students has its way, you’ll also be thinking solar power. WVU has been selected as one of 20 international teams that could shine in the 2013 Solar Decathlon, a collegiate designand-build competition hosted by the U.S. Department of Energy in Irvine, CA. The goal is to build for the future. Student teams representing 20 universities from West Virginia to Prague, Czech Republic will compete to design, build and operate the most affordable, attractive and energy-efficient solar-powered house. In WVU’s case, students plan to merge modern smart-home technologies with a rustic-style log home. It’s the first log-style home accepted into the decathlon, which has been held five times since 2002. It’s also the first time WVU has entered the competition. The interdisciplinary team has named its project Preserving Energy with Appalachian Knowledge, or PEAK. “I’m ecstatic for this team of students and everyone who has worked on this project,” says WVU President Jim Clements. “It is the epitome of interdisciplinary work that goes to the heart of what West Virginia University is all about—helping make the
state and the world a better place through education, research and service. I can’t wait to see the solar log cabin come together.” Students from the Benjamin M. Statler College of Engineering and Mineral Resources have been leading the effort since Kenneth Hite, an electrical engineering major from Summit Point, WV, discovered the 2009 Solar Decathlon in Washington, D.C. After researching the competition, Hite suggested that he and his classmates enter the competition for their senior design project. “We started with a few students and have grown to a full university-wide initiative,” says Hite, the student team leader. “We are hoping to win the 2013 Solar Decathlon and, in turn, teach the community about solar and other green technologies.” The team also includes students from the College of Creative Arts; the Davis College of Agriculture, Natural Resources and Design and the Perley Isaac Reed School of Journalism. “The current students come from a wide range of backgrounds and majors and are all dedicated to taking West Virginia to the gold in 2013,” Hite adds. Each team participating in the decathlon received a $100,000 grant from the U.S. Department of Energy. Previous competitions were held at the National Mall in Washington, D.C., where the finished homes were built and displayed for judging. That means the WVU team has until fall 2013 to figure out how to build, tear down, transport to California and rebuild an entire house. The competition includes 10 contests that gauge the environmental performance and livability of each team’s submission. The contests cover everything from architecture, market appeal and engineering to comfort level, appliances and home entertainment. One of the key criteria for the winning team is that each home produces as much or more energy than it consumes. Not only will the university benefit from this endeavor, Hite says, but the residents of the state will benefit because West Virginia is a large energy state. “We have a tremendous forestry industry and we are the second largest net exporter of electricity. The Solar Decathlon falls right in with these trends.” According to the Department of Energy, the decathlon is intended to educate students and the public about the costsaving opportunities presented by clean-energy products and to provide students with unique training that prepares them for the nation’s clean-energy work force. Since 2002, the decathlon has involved 92 collegiate teams and 15,000 participants. “This is an opportunity for us to show the world the quality of students at this university,” says the project team’s faculty mentor, Dimitris Korakakis, an associate professor in the Lane Department of Computer Science and Electrical Engineering. “A small, dedicated team of students started this project. We will need hundreds of students to make it a success.” By Jake Stump Photography by West Virginia University
SBASECAMP West Virginia’s First Coworking Space Creates Innovation
SBASECAMP, the first coworking office space in West Virginia, officially opened on January 2, 2012 in the heart of downtown Morgantown. Occupying the entire second floor above Lira Restaurant and Lounge, 4,000 square feet of premium office space provide entrepreneurs, startups and small businesses a location to work together—with a creative, funky flair. As the founders of SBASECAMP, pronounced “space camp,” Mike Arbogast and I envisioned a new economic engine comprised of collaboration and community where industries could come together to transform the local business culture. SBASECAMP brings together a group of connected yet independent entrepreneurs and small businesses in order to create an economy of innovation and creativity. The term “coworking” was coined by Brad Neuberg in 2005 to describe a physical space called The Hat Factory in San Francisco, CA, which is a live/work loft that was home to three technology workers and open to others during the day. Neuberg was also one of the founders of Citizen Space, the first work-only coworking space and the space that spawned a global movement. Today coworking is a revolutionary work culture movement with more than 400 coworking spaces existing worldwide and spanning six continents. “Since it is really an urban concept, we thought that downtown Morgantown would be the perfect place to bring this concept to West Virginia,” says Arbogast. “It is ideal in that coworking is a green initiative also, so a lot of our members can walk to work, share resources, recycle and so forth.” According to Arbogast, “Coworking is ideal for people who generally work from home or out of coffee shops and places like Panera or Starbucks. Aside from the fact that members get
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office space with lots of amenities for a low monthly rate, the main benefit is that of collaborating with like-minded people in the space. Referrals and networking are a big advantage. “We have very few rules,” says Arbogast. “There are some guidelines such as the headphone rule. If you have no headphones on, you are open to casual conversation. If you have one headphone on, you are available to talk but make it brief. If you have both headphones on, you do not wish to be bothered. As far as housekeeping and such, we invite members into the space with the understanding that we should all respect each other and our work space—so keep it clean and tidy.” The idea came up while we were looking for a place to start our new media company, InnerAction Media, LLC. “Our company is largely engaged in helping businesses grow through strategic marketing planning, media planning and messaging. Coworking was a way for us to bring like-minded businesses together that we could then outsource projects to as well,” Arbogast says. “For instance, if we need a Web site developed, we have a coworker who does that. If we need a video produced, we have a member who does that. In essence, we have taken the traditional advertising agency model and turned it upsidedown. We can provide world-class creative materials, content and strategy for a fraction of the cost that the traditional agencies are charging and get better results.” According to Arbogast, “Someone once asked Ernest Hemmingway how he started each new book. He replied, ‘By defrosting the refrigerator.’ That sums up the challenge of working from home—the distractions. At SBASECAMP, we are here to work. All of our members are trying to build something great. Being a part of that energy and surrounding ourselves with good people—that’s what coworking is all about.” By Jim Matuga Photography by SBASECAMP
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Where the Wind Blows Wind Analysis May Lead to New Energy from Former Surface Mines
Stationed on a remote, wind-swept ridge in Southern West Virginia, the large gray capsule looks a bit like something from a 1950s science fiction flick. In reality, it is a state-of-theart Sonic Detection and Ranging (SODAR) unit placed on a former surface mine property by a team of Marshall University researchers who are evaluating the site’s potential as a resource for wind energy. The researchers are conducting wind studies at several locations across West Virginia as part of a project to explore renewable energy potential on land previously used for coal mining. According to George Carico, the environmental manager at Marshall’s Center for Environmental, Geotechnical and Applied Sciences (CEGAS), the unit performs wind profiling up to 200 meters above the Earth’s surface, recording wind speed, direction, sheer and veer. The self-contained system uses solar and battery power to operate and provides satellite data transmission and telemetry for quick, 24/7 data retrieval and review.
Two years into the project, Carico says the researchers have collected data at three former surface mine sites in Webster, Grant and Mingo counties and are wrapping up a year-long study at a fourth location along the Raleigh-Fayette county line. “The next step is to begin a series of shorter-term studies in the Raleigh-Fayette county area to correlate our findings with existing datasets and compare them to wind industry requirements,” Carico explains. CEGAS and Marshall’s West Virginia Brownfields Assistance Center are partnering with the West Virginia Division of Energy’s Office of Coalfield Community Development for the project. “As researchers, we’re not either for or against the idea of wind energy,” Carico says. “Our role is to do the studies, collect the data and explain the ins and outs to landowners who may be interested in exploring commercial wind development. “We’ve had a lot of interest already from both landowners and wind developers. Some people assume the larger landholding companies with extensive coal backgrounds might not like the idea of this study, but landowners are actually seeing this as perhaps an opportunity to reuse land after it has been mined. In fact, Penn Virginia Resource Partners, which owns land in the area where the SODAR unit is currently located, has been absolutely fantastic to work with.” The wind analysis is just one of several projects the partners are working on to evaluate renewable energy opportunities for surface mined sites. They also have two solar panel projects in the works—including one recently installed at Mount View High School in McDowell County—and several demonstration sites for biomass energy crops. “We are interested in exploring all possibilities for domestic energy production,” Carico says. “We’re constantly asking ourselves, ‘Once the coal has been removed, what can be done next with this property?’ It requires a long-term view, but maybe in 10 years or so we’ll see some type of renewable energy resource on some of the land we’re evaluating today.” Funding for the projects is provided by the West Virginia Division of Energy and the Appalachian Regional Commission. Marshall’s Center for Business and Economic Research is assisting with data reporting. Results of the studies are being made available to the public at www.energywv.org. By Ginny Painter Photography by Marshall University
Office of Advancement
West Virginia’s Energy Industry Game Changers As time marches on, the economy continues to ebb and flow, our environmental awareness broadens and we find ourselves in need of new technologies to make our energy consumption more cost-effective and efficient. Maintaining a position as a leading state in energy production, we must not only have the natural resources for production, but we must also have the ingenuity, experience and entrepreneurialism to adapt to our changing energy needs and continue to be cutting-edge in our number one industry. Liberty Hydro and Sunbank Solar are two West Virginia companies who have done just that.
Established in 2009, Liberty Hydro has found itself at the crossroads of the water/energy nexus. With an original focus on removing metals and contaminants from West Virginia waters, the company now provides advanced water treatment solutions to energy developers, specifically gas drillers and coal mine operators, in West Virginia and beyond. For gas drillers, Liberty Hydro can recycle water through a proprietary dissolved air flotation unit that allows the water to be reused in the next drilling process. For mining operations, Liberty Hydro assembles and installs systems for metal removal, salt removal, the aeration of streams to precipitate iron and the automated treatment of acid mine drainage. As its premier solution, Liberty Hydro has invented an energyefficient method to use membrane technology to retrieve water from salt water, leaving behind a lesser volume and higher concentration of salt solution for disposal or crystallization. This water recovery system has application to coal companies facing osmolality discharge standards, Marcellus Shale gas drillers seeking to reduce the volume of produced water to be transported off-site and communities seeking to recover the
maximum amount of potable water from brackish water sources. To showcase its advanced water treatment technologies, Liberty Hydro has constructed a mobile water treatment demonstration unit called ROVr, which is a clean water retriever. In stage one of the ROVr vehicle, water passes through the dissolved air flotation unit and various filters. In stage two, the water passes through standard reverse osmosis membranes followed by the company’s proprietary concentrator membrane design. The experience in building the ROVr vehicle has proven the company’s ability to construct custom-designed water treatment units for other applications, including the ability to fabricate packaged drinking water units for small communities. Liberty Hydro has enhanced the configuration of the foam media used in the company’s Remover technology for application to mining operations, oil refineries and power plants that seek to remove metals, selenium, arsenic and trace organics from their discharge waters. In addition, Liberty Hydro provides consulting services to help energy clients install optimal technology and achieve superior discharge quality.
Sunbank Solar The idea for Sunbank Solar’s high-quality, low-cost water heater began on the Caribbean Coast of Nicaragua where native West Virginian James Richards was working for blueEnergy, a nongovernmental organization that provides alternative energy and water filtration systems to isolated communities in the region. In between projects, Richards decided that hot showers, a luxury the staff had long gone without, was possible if they built a solar water heating system. This success prompted the question, “Why don’t we have this at home?” A year and a half of research was to follow, and from that sprang the Sunbank, the most efficient and affordable year-round solar water solution on the U.S. market. Consider this: heating water silently consumes large amounts of energy—up to 30 percent of total consumption for the average household and up to 80 percent for many industries such as restaurants, hotels and apartment buildings. The Sunbank can be mounted on the ground next to a house, is installed in such a way as to guarantee that consumers always have hot water and saves consumers money, thanks to massive amounts of free energy from the sun. The Sunbank pays for
itself quickly and then starts paying the customer. Based on the current electricity inflation rate, the Sunbank will save the West Virginia customer more than $33,000 over 30 years. Sunbank’s solar water heater takes some of the pressure off of an already overburdened power grid in the Mountain State and the local power companies that are under pressure to reduce demand so that they can close down their older generating plants that do not perform to today’s standards. It also eases the burden on the consumer’s wallet, making it a choice that is in everyone’s best interest. For every four households that install a Sunbank, one home is effectively taken off of the grid. In addition to the West Virginia installations, Sunbank is currently building a nationwide dealer network in an effort to get this game-changing technology to as many people as possible. The Sunbank is poised to change the face of water heating in the U.S., and when it does, we will be able to say that the solar option in everybody’s best interest started in West Virginia. By Jennifer Jett
In 1911, Sears Monument Company was founded on the premise of providing a product of value along with the best possible service to local residents in the most difficult of times. That goal is carried on today through the company’s showrooms in Charleston, Huntington, Parkersburg and Beckley. As the oldest and largest supplier of memorials and monuments, Sears Monument Company produces and installs monuments in West Virginia, southeastern Ohio and western Kentucky. Sears Monument offers a complete line of monuments, with more than 2,000 memorials in stock, including memorials, markers of granite and stone, granite signs, civic memorials, remembrance benches and bronze and aluminum plaques, as well as accessories that compliment an existing monument.
CARMICHAEL MONUMENT CO. 1044 Emerson Ave. Parkersburg, WV 26104 304-422-3721
At Sears Monument, you can expect: • Vast knowledge of cemetery locations, terrain, regulations and requirements • Installation or delivery of memorials • Affordable pricing • A wide variety of sizes, finishes, carvings and colors of granite When your family is facing difficult decisions, turn to our family for help.
HOURS OF OPERATION M-F: 10am–4:30pm • Sat.: Please Call Member, American Institute of Commemorative Art and Monument Builders of North America
Mount Storm Lake There’s a unique recreational playground in Grant County, WV, made possible from a seemingly unlikely source: a power generation station. Mount Storm Lake was built in 1965 as a cooling source for the nearby facility—Dominion Power’s largest coal-fired power station—and provides warm water temperatures that extend the water recreation season for boaters, scuba divers and other water enthusiasts. The unusually warm water temperatures found in Mount Storm Lake are created during the plant’s cooling process. Water from the lake is filtered through the station to cool its three massive generators, raising the water temperature. The lake’s 1,200 acres of much sought after above-average water temperatures provide a vast recreational playground for area residents and visitors alike. Water sports enthusiasts travel from near and far to take advantage of boating, jet skiing water skiing and scuba diving opportunities that extend beyond the typical warm weather season.
Plant-Warmed, Man-Made Lake Provides Ample Water Recreation Opportunities
During colder winter months, water temperatures rarely drop below 60 degrees, and temperatures average 80 to 90 degrees in the summer. These warm temperatures, in addition to the lake’s depth—132 feet at the deepest—make Mount Storm Lake an excellent location for high elevation scuba diving. The lake is outfitted with dive platforms at various depths and is regularly used by divers as a place to test equipment, maintain skill levels and partake in recreational diving. The lake is also a popular location for those who like to kayak and canoe their way across its clear waters. At an elevation of 3,244 feet, the brisk winds that regularly sweep across the mountaintops also make the lake an ideal location for parasailing. Anglers enjoy fishing for largemouth and smallmouth bass on Mount Storm Lake, as well as channel catfish and walleye. Although many fishermen prefer to cast from their boats, shoreline fishing is also available in designated areas. Swimmers are also welcome to take advantage of the lake’s warm temperatures but must be cognizant of safety precautions, including the no swim zone in the boat docking and high traffic boating areas. The large power-generating units within the Mount Storm Power Plant provide more than 1,600 megawatts of electricity every hour, which is more than 160 average homes use in an entire year. Like any coal-burning power station, the Mount Storm Power Station produces airborne particles known as fly ash. The plant’s multi-million-dollar electrostatic precipitators act as a giant air cleaner, however, and are able to remove 99 percent of the ash before the air is released. For more information on Mount Storm Lake, visit the West Virginia Division of Natural Resources Web site at www. wvdnr.org. By Leigh Saville
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Keeping it in the Family Fourth Generation Businesses
By Samantha Redd
West Virginians have a rich history of hard
work and an unmatched work ethic. While the constantly fluctuating storm of the national economy has battered businesses and left many companies weathered, even the downpour of the past four years has not defeated the many family-run businesses in the Mountain State. The financial and employment problems created for many businesses across the country have been overcome by the perseverance bred in West Virginia. Whether it is the pride of being a multi-generation business owner, the strong familyoriented culture or the learned responsibility ingrained during childhood, the Mountaineers’ reputation for drive and diligence has facilitated the success of companies such as J.H. Fletcher Mining Equipment and Precision Pump & Valve Inc. (PPVS).
J.H. Fletcher Mining Equipment J.H. Fletcher and his son, Robert, started their design work consulting firm in Chicago in 1947. In that same year, they moved the then small business to Huntington, where they started designing their own mining equipment. This year, J.H. Fletcher celebrates its 75th anniversary and this fourth-generation business’s accomplishment of providing services all over the U.S. and in 17 countries around the globe. The primary service of the company is to design and sell underground roof console equipment for the coal and industrial minerals industries. “Put simply, we put the bolts in the support roof over coal
miners’ heads,” says Rod Duncan, J.H. Fletcher's president and great-grandson of the company’s founder. When the Fletchers moved the business to West Virginia, it had only 13 employees. Duncan says 10 years ago they were up to 175 employees, and he now employs 290 people. “I think the approach we take to the business and our employees has impacted our business,” Duncan says. “I was brought up that we didn’t have 175 or 290 employees, but that we had 175 or 290 family members that we ExEdge were working with.” Japanese temple This sentiment of family even extends to the coal builder Kongo miners who are protected by the equipment J.H. Gumi is the world’s Fletcher produces. In May 2011, the late Robert oldest family Fletcher, Duncan’s grandfather, was inducted into business on record, having operated the West Virginia Coal Hall of Fame. continuously from “We work to support the miners,” Duncan says, 578 to 2006. “so they can come home safely to their families Source: every night.” http://www. The Fletchers decided to start this type of business businessweek. when they saw a rich market and a hole that needed com/smallbiz/ to be filled in the industry. With the help of loyal content/apr2007/ sb20070416 workers and good engineers, it grew larger than _589621.htm they had ever imagined and the move to Huntington played a substantial role in that growth. The saturation of mines in Southern West Virginia and eastern Kentucky was exactly what the Fletchers needed for success.
Duncan believes that being a family business and being surrounded by quality employees has driven the company’s success as well. “Being family-run has its advantages and disadvantages, but for our business, the way we run it is an advantage,” Duncan
says. “I don’t think big corporations could do things like we are able to or have such a close link with their employees.” The company, which continues to experience growth, is always ready for advancement. The past 10 years have seen significant progress for J.H. Fletcher.
In 2011, the company acquired a second facility in Kentucky to work exclusively with their budding business in the industrial minerals industry. “Volume and sales have grown significantly, so depending on the market, we are always looking to expand,” Duncan says.
“I was brought up that we didn’t have 175 or 290 employees, but that we had 175 or 290 family members that we were working with.”
L-R: Sam Duncan, Chris Duncan, Jim Fletcher, Bob Fletcher and Rod Duncan
Precision Pump & Valve Inc. Dating back to 1958, Precision Pump & Valve Inc. had its humble beginnings in the basement of founder Arthur C. “Harry” Kemerer. Kemerer started the business as a parttime endeavor of servicing small pumps for Union Carbide. After a year, he rented a small space in Dunbar and was able to employ three other people. The company’s steady growth allowed Kemerer to purchase his current location in Cross Lanes in 1971. Since then, the company has continued to grow to its present size and reputation. Now an industry leader in providing sales and repairs to industrial and municipal customers in West Virginia as well as parts of Virginia, Ohio, Kentucky and Pennsylvania, the company sells and services reliable, quality
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and energy-efficient pumps and safety valves to the chemical and power industries. A fourth-generation family-owned company, PPVS’ growth comes from working personally with customers, selling them high-quality products and servicing those products so they don’t need to be replaced, according to Barry Kemerer, president of PPVS and son of Arnold Kemerer. Kemerer’s wife, Earlene; son, Kevin, and grandson, Brett, all work alongside him at PPVS. “My father was very mechanically inclined,” Kemerer says. “At the time he started the business, he only had an 8th grade education. He got the rest of his education from being hands-on.” Kemerer says the employees of PPVS have made the most contributions to its continued success.
“With a family business, there is a heightened trust level. However, there is also another type of family that works at Precision, and that is our employees,” Kemerer says. “We treat our employees with respect, assist them with troubles on and off the job and have a great sense of loyalty between employees and management.” PPVS goes to great lengths to provide its valued employees with a happy and safe work environment. The company recently won the 2012 West Virginia Contractor’s Association Safety Award. “The people that work at Precision are West Virginians. They seem to have strong work ethics, value their jobs, appreciate a good paycheck and sometimes sacrifice time with their families to care for Precision customers,” Kemerer says.
“Like our employees, we also treat our customers like family, not just a person with an account number.” L-R: Kevin Kemerer, Barry Kemerer and Brett Kemerer Kemere
Kemerer admits that when running a family business, it is sometimes hard to compete with larger corporations that do the same work. He believes the advantage again lies in the treatment of others. “Like our employees, we also treat our customers like family, not just a person with an account number,” Kemerer says.
“We acknowledge that they’re doing us a favor by doing business with us.” PPVS has seen great success over the past five decades and is currently working on an expansion initiative. The company hopes to open a second office in Northern West Virginia and begin work with Marcellus Shale this year.
“We hope to continue our work, we hope the Kemerer family will continue to be successful and we hope to always be able to help our many valued customers,” Kemerer says. Photography by J.H. Fletcher Mining Equipment and Precision Pump & Valve Inc.
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The Challenge Steel’s to Quit Huntington Tobacco-Free Campaign During the 20th century, public approval of the use of tobacco products, and cigarette smoking in particular, shifted from almost universal acceptance in 1904 to general disfavor in 2004.
By Teresa Trimble
In 2004, Huntington Steel celebrated its
100th anniversary with a review of the past and a focus on the future. During its first century, the company’s employees witnessed some of the most astounding advancements in world history, including the transition from horse drawn delivery carts to cargo shipped by aircraft; two world wars that depended on steel that companies like Huntington Steel could provide and conversion from mechanical cash registers to electronic computers. Another significant transition that occurred during Huntington Steel’s first century was a change in how society judged tobacco use. During the 20th century, public approval of the use of tobacco products, and cigarette smoking in particular, shifted from almost universal acceptance in 1904 to general disfavor in 2004. A better understanding of the negative health effects of tobacco use was a significant factor for this cultural shift in thinking. As Huntington Steel planned for how to position the company for success during its second century, management realized that one of the lessons learned during the first 100 years was that a healthy work force is a key requirement. Realizing the impact of tobacco use on its work force, Huntington Steel
began working to increase its employees’ ExEdge awareness of wellness issues. In 2005, after a few employees U.S. citizens cannot expressed an interest in participating in a legally acquire or tobacco cessation program, Huntington consume Cuban cigars, even while Steel partnered with the Wellness Council traveling abroad, of West Virginia (WCWV) to begin the as a result of journey toward better health. With the Cuban Trade the council’s assistance, the company Embargo against Fidel Castro and his formed a tobacco cessation committee, communist Cuba. implemented a tobacco cessation policy and rolled out a training schedule to Source:http:// cigars.about. assist the employees and their spouses com/od/ on their journey to becoming tobacco legalhealthissues/a/ free. Using WCWV’s “Quitting to Win” cubancigars.htm training materials, management held four weekly training sessions led by committee members plus two additional sessions using outside speakers. Again in early 2009, employees asked to participate in a cessation program. As before, Huntington Steel utilized WCWV’s “Quitting to Win” program, but this time management offered a cash incentive. To be eligible for the incentive, participants were required to attend all training sessions and set a quit date. If an employee remained tobacco free for six months
“I could smoke and still keep up with him when he was little, but as he grew up and began playing sports in earnest, I found I could not last very long on the soccer field or basketball court. I had spent my life playing sports and wanted to be able to practice with him and coach him.”
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after the quit date, he or she would receive the incentive. The 14 participants were encouraged to contact the state quitline for additional coaching and assistance with tobacco cessation aids. Employees also had the option to draw on the incentive to purchase cessation aids. Five participants completed the training program and met their six-month goal. Management held a celebration to recognize their achievement. For those who want to quit, the struggle to remain tobacco free can be difficult, and these participants were no different. Troy Jones, an employee with Huntington Steel, was able to successfully use the program and remain tobacco free. “I’m not sure why I was finally able to quit this time. Like most smokers, I had quit a thousand times before,” says Jones, who notes that his primary motivation for quitting was to be able to play with his son without being winded so quickly. “I could smoke and still keep up with him when he was little, but as he grew up and began playing sports in earnest, I found I could not last very long on the soccer field or basketball court. I had spent my life playing sports and wanted to be able to practice with him and coach him.”
For Jones, becoming tobacco free was a challenge, but he says the effort has been worthwhile. In addition to the helpful information provided by WCWV, he says the support of friends, family and his employer were key to his success. “You have to tell people what you are trying to do,” he says. “Most people who are trying to quit don’t tell others because they don’t want to appear to be a failure if they are not successful.” Jones, who will serve as a mentor in future cessation programs at Huntington Steel, says that planning and changing his habits was critical to his success. He notes
that pack-a-day smokers suddenly have an extra hour and a half of time on their hands each day and that they have to fill that time with something fun, productive and active. “About two weeks before my quit day, I started going for short walks throughout the day,” he says. “I discussed with my boss and others who needed to know where I was that I was going to be out for about five minutes, which is about the time it takes to smoke one cigarette. I also had to plan for what I was going to do to replace the must-have cigarette—the one when you wake up, the ones in the car, the ones after meals, et cetera. I changed my routines for these times so the habits surrounding the cigarettes were broken as well. I did not go out and drink alcohol for the first few weeks.” With the assistance of the WCWV, the company plans to begin a tobacco cessation program in August 2012 that will lead up to the Great American Smoke Out on November 15, 2012. The upcoming program will incorporate the WCWV’s Kaiser Permanente Cessation Training in conjunction with the “Quitting to Win” program.
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West Virginia Land Management—Then and Now B Y J A M E S W. S T. C L A I R
must continue to protects one of the greatest incentives to preserve democracy: the sanctity of property rights. From the Revolutionary War veterans’ land grants to the small settlers’ homesteads on the frontier, our country created a code of laws that protects land ownership and more particularly, mineral ownership. As far as this author can ascertain, the U.S. is the only nation on the planet that allows its citizens to own both surface and mineral property. In all other countries minerals are owned by the government. Think of all the small West Virginia farms that receive benefits from their natural resources which help pay their taxes or heat their homes. As a volunteer to Bosnia-Herzegovina, my job was to help stimulate a working legal system out of the collision of post-Tito communism and an emerging market economy. Neighbors committed atrocities against each other for land ownership. Deeds were issued for the same property by the victors over the course of their wars. Property ownership was in constant turmoil. It is slowly being unraveled, but that takes a lot of time and effort. Many historical and geographical similarities can be found between Bosnia and my home state of West Virginia. For instance, both were born from war. In West Virginia, speculative land investors arrived on the coattails of the industrial revolution’s demands for natural resources, and much of the land was up for grabs. Titles were generated at county tax sales or by Kings or state governors, or the land was just out and out stolen or acquired by adverse possession. Fueling the land boom after the Civil War was the arrival of a new wave of immigrants seeking their fortunes. People like my great grandfather, Sam Dixon, a Welsh mine trapper boy who founded the New River Company, built his dreams in Oak Hill, WV. These dreams were protected by the right of mineral ownership. Four generations later, my family still enjoys the benefits of owning mineral lands in West Virginia. As a trial lawyer who has handled many property disputes, I have studied the history of coal land management in Southern West Virginia at the turn of the 20th century and observed the significant changes that have evolved in the industry.
Today’s Land Management
Ownership of land in West Virginia usually falls into two categories: large acreage - company land or smaller tracts - family owned, heirship property. Company land is often managed from out of state with sophisticated supervision. The family tracts are often divided into smaller holdings by estate divisions and often the individual interests become so small, no one can afford to spend the time or money required to manage the property.
Consolidating ownership in a single family entity has been the answer to long term management . In West Virginia, taxes paid by the coal industry and utility companies account for major portion of the business taxes. Public education is funded by our property taxes. As school costs increase, so must these taxes. The recent implementation of taxing minerals in the ground encourages development of natural resources. The days of the small coal operator are gone—today’s market is about large, long-term contracts, significant management burdens, and expensive mechanization. As a small property owner, it is important to work with the mining companies and adjacent property owners in order to attract and retain a mining companies to develop the minerals. Coal mining is one of the most extensively regulated industries in the United States. Before one shovel of earth can be turned, a company must comply with all laws and regulations. As many as ten years can elapse between the start of planning for a mine and mining the first ton of coal. The coal industry, once synonymous with manual labor and harsh conditions, has been transformed into a high-tech business. Technology has made the process of coal extraction, movement, and combustion safer, more efficient and environmentally friendly. Land management is about dealing with people and the environment. Public support is essential to obtaining mining permits, and local input must be considered in every aspect of the operation. It is important that the all parties participate in every aspect of the planning and completion of the mining process. The federal Government must abandon its efforts to abolish coal mining. short term issue are being addressed by the mining companies. The long-term issues of post mining land use presents one of the largest challenge to the small property owner. Innovative, sustainable land uses must be developed if the small land owner is to continue to retain their property. Surface mining can positively alter the terrain if it is done properly. Returning to approximate original contour and soil compaction limits tree growth and development potential. Land owners and coal companies need to share technologies, engineering, and people who are willing to make positive use of the reclaimed surface. Dealing with illegal dumps, timber theft, and access are but a few of the challenges land owners face. Americans understand the importance in land ownership and we should not tax, regulate or politicize it beyond the means of small family land owners. Our future as a democracy and example to world depends on it.
“The true foundation of our republican government is the equal right of every citizen in his person and property and in its management.” —Thomas Jefferson to Samuel Kercheval, 1816. SPECIAL ADVERTISING SECTION
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Moving the Mountain State
FORWARD A LOOK AT LEGISLATION
Manufacturing A LONG-TERM BALANCE
ENERGY POWERING THE NATION
Moving the Mountain State Forward By Kensie Hamilton
There are many innovative, entrepreneurial
people who call West Virginia home. For this multi-part article we wanted to let some of these folks outline the challenges they see in the energy industry in the Mountain State. Not being the kind of people who like to complain without solutions, we also asked them to address these concerns with ideas to improve the industry. We hope this helps get the conversation moving on some of these topics and that steps can be taken to protect West Virginia’s place at the top of the list of energy producing states.
Henry Harmon President & CEO, Triana Energy Charleston, WV Challenge: Addressing the rising fuel costs for service fleets. Solution: We see migration to propane autogas-fueled vehicles in our service fleet as a cost-effective solution to rising fuel costs. In choosing propane autogas, we have access to a variety of cars, vans and medium-duty trucks with original equipment manufacturer-installed fuel systems. We can utilize existing infrastructure to fuel them or add central fueling at a very reasonable cost. With propane autogas, we get the benefits of performance, power, torque and driving range all while using a domestic fuel with significant benefits in emissions and greenhouse gases.
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Joe Manchin, III U.S. Senator, West Virginia Washington, D.C. Challenge: The fact that we don’t have a national energy policy that uses all our domestic resources—coal, natural gas, oil, hydro, solar, wind—to end our country’s dangerous dependence on foreign oil; the very difficult regulatory climate—one that makes it extremely challenging to keep the good jobs we have, create more jobs and become truly energy independent; and the way this EPA has ignored the fact that we rely on coal for 45 percent of our electricity and has instead targeted coal—our nation’s most abundant, reliable and affordable source of energy. Solution: We have to have a balance between our environment and our economy that creates good jobs, protects the environment and keeps rates affordable. Our government shouldn’t be picking winners and losers. I believe we have to rein in this EPA now. I have proposed several bipartisan bills to do just that, including the Fair Compliance Act, which would prevent the EPA from destroying countless good-paying jobs, would keep utility rates stable and would ensure a reliable grid system while still protecting the environment. Ultimately we have to put our political parties aside and come together around a true “all of the above” energy plan.
Colin Williams Vice President, Sales & Marketing, Mountain View Solar & Wind Berkeley Springs, WV Challenge: Increasing understanding and awareness of how solar energy works, and addressing why it is at odds with traditional energy sources. Solution: In a coal state such as ours, it is assumed that the solar industry is in competition with or is a threat to the powerful fossil fuel industry, which is so important to our state. This is not true. Solar energy equipment creates electricity, one of West Virginia’s most significant exports. Every panel installed increases our output capacity, thus bolstering our state’s energy portfolio. The other common misconception is that there isn’t enough sun here for solar power to work. West Virginia gets 95 percent as much sunlight as Florida and 20-30 percent more than Germany, the country leading the world in installed solar capacity. Through education and greater public awareness of the benefits of solar energy, our industry will grow, create more good paying jobs and provide much needed clean energy for generations to come.
Jay Rockefeller U.S. Senator, West Virginia Washington, D.C. Challenge: Utilizing technology properly for our energy future. Solution: We need a strong future for West Virginia energy—including clean coal and responsible natural gas development—and to create both jobs and a healthy environment for our children and grandchildren. I know we can do both if we will just focus our efforts more intensely than ever on new technologies. Technology is the solution to energy’s future in West Virginia. We will need to work together to move our energy industry forward and thrive for years to come, creating jobs and building our domestic energy supply for our workers, communities, the state and the country.
Kevin Highlander, CPA Partner, Hayflich & Steinberg, CPA’s Huntington, WV Challenge: The confusion, or lack of awareness, in the energy industry about the EPAct and its tax deductions for private building owners and designers of government-owned buildings. Solution: The tax incentives available under EPAct can be quite significant for designers of public buildings. Increased dialogue between designers and public entities, such as schools
and university systems, can prove to be quite beneficial to both. For the designer, a deduction of $1.80 per square foot can quickly add up when considering the size of most public buildings. For the public entity, assigning the deduction to a designer can result in reduced soft costs, allowing more funds for bricks and mortar. If designers, tax consultants and public officials work together, the economic benefits for both can be monetized.
James Flavin Business Operations Manager, Energy Corporation of America Charleston, WV Challenge: Industry restrictions caused by regulatory and environmental burdens. Solution: As a state, West Virginia has been blessed with access to a clean and reliable energy source that holds the potential of economic, environmental and national security benefits. Despite the abundance of natural gas and all of the good that comes with responsible development of this resource, unnecessary regulatory and environmental burdens could restrict the industry’s ability to provide low-cost, clean energy for the State of West Virginia and the nation. While we support reasonable and effective regulation, we must always be wary of anything that could hinder future development.
Bill Raney President, West Virginia Coal Association Charleston, WV Challenge: A reduction in West Virginia coal demand due to the recent mild winter and economic uncertainty combined with the long-term issues related to the anti-coal, anti-energy, anti-job policies of the Obama Administration and a less-than-caring EPA. Solution: Cyclical ups and downs in demand are to be expected in any industry. The job losses that sometimes result are painful, but if there is any solace, it is that the jobs will hopefully return when the demand rebounds and supplies on the ground are used. The problem is that this isn’t just a question of demand—it is also a question of a long-term effort by the Obama Administration and the EPA to destroy the coal industry, both at the production end and at the consumption end. The evidence of this is clear—it has been virtually impossible to get a new mining permit since the earliest days of the Obama Administration. In essence, the EPA declared a permit moratorium that continues today. In the meantime, the EPA has passed rules and regulations that have forced the closure of dozens of coalfired power plants, taking with them thousands of jobs. How do we fix this? The answer is equally clear.
R. Dennis Xander
Director & CEO, RCBI Advanced Flexible Manufacturing Huntington, WV
President, Denex Petroleum Corporation Buckhannon, WV
Challenge: Increasing energy efficiency in the manufacturing industry. Solution: Manufacturing is estimated to consume one-third of all the energy used in the United States. Today, as more and more manufacturers go green, they’re increasing their energy efficiency. It’s not happening overnight; it’s an evolution, not a revolution. Today’s forward-thinking manufacturers are using new, cutting-edge technologies to dramatically increase their productivity, and they are implementing new production processes that enable them to decrease the energy they use. For many manufacturers, “Reduce! Reuse! Recycle!” creates a comprehensive method for evolving to green energy.
David Ledford President & CEO, Appalachian Wildlife Foundation Corbin, KY
Challenge: The impact of not having a national energy policy, which hinders both traditional and alternative energy development. Solution: Without a well-defined, comprehensive energy policy, it is difficult to chart any meaningful course. Is our goal energy independence? Or should we purchase as much foreign energy as is available, thereby saving our domestic sources for the future when prices skyrocket? Shouldn’t the government establish regulations and tax policies based on goals set forth in a comprehensive energy policy? By failing to plan, we are planning to fail. Energy development requires billions of dollars of investment in exploration, development and infrastructure. Investors require some degree of regulatory and tax certainty. The adoption by Congress of a comprehensive energy policy would provide energy developers and their financial backers with the assurances they need to invest in America’s energy future.
Challenge: Overcoming the ongoing debate over mining and the use of coal among regulators, environmental groups, elected officials, coal operators and the public.
Vice President-Northeast, Gastar Exploration Ltd. Clarksburg, WV
Solution: The Appalachian Wildlife Foundation believes the private sector can develop a voluntary program that sets baselines and elevates the overall ecological performance of the coal industry. The Mine Land Stewardship Initiative (MLSI) will create standards to improve the conservation and restoration of ecosystem services and wildlife habitat, the protection of water quality and the recreational opportunities for mining communities. Companies that choose to participate in the MLSI will agree to adhere to these standards, with performance confirmed through a rigorous third-party auditing process. When a company is deemed to have adhered to the standards, the coal they produce can be certified as having met the performance standards. The performance standards would be created through a collaborative process among coal suppliers, mineral owners, utility companies, conservation groups, wildlife conservationists, coal community representatives and others as deemed necessary.
Challenge: The stagnation of technology advancements due to declining product prices.
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Solution: Today, natural gas prices are approaching 20-year lows. At the beginning of this decade, natural gas prices increased to the $6-8/Million British Thermal Units (mmBtu) range with short-term spikes approaching $14/mmBtu. Improved prices and their resulting greater profit margins spurred technological advances in horizontal drilling and hydraulic fracturing. The result of advanced technology was the unprecedented development of unconventional reservoirs such as the Barnett and Fayetteville shales and, closer to home, the Marcellus and Utica shale formations. As a result, natural gas reserves have grown to levels that will sustain the country for 100 years and abundant supply has eroded prices. Low prices mean further technological advances are stymied, traditional operators are driven to the point of extension and major players are deterred from entering this basin.
Natural gas needs to be used to fuel power plants and the vehicles we drive. The result would be lower oil prices and less dependency on foreign oil from unfriendly countries. Natural gas prices would improve and allow growth of the industry domestically through continued technological advancements and survival of the traditional producer.
Steven Green Attorney, Babst, Calland, Clements and Zomnir Charleston, WV Challenge: The tri-state shale gas plays present multi-faceted complications along with their opportunities. Solution: Expanding shale gas development in West Virginia, Pennsylvania and Ohio has drawn the attention of both governmental and non-governmental entities. Increased government involvement in shale gas development has resulted in expanded regulation and enforcement efforts. The prospect of lucrative profits has also spurred an increase in mergers, acquisitions and joint ventures, with the most recent focus of these activities being on further development of shale formations containing natural gas liquids, i.e., wet gas. Litigation prompted by landowners and lease holders is also on the rise. In short order, our collective shale sensibilities have become an important part of our tri-state economy.
David Haney President, E & H Manufacturing, Inc. and D. G. Haney, Inc. Charleston, WV Challenge: Refuting the lies and uninformed comments being filtered through the media and other means regarding the natural gas industry. Solution: To combat this problem, the industry has been forced to come out from under the radar. Through coalitions such as Just Beneath the Surface and Energize West Virginia, the industry is providing factual information to the public about the issues under attack. We must be more proactive in spreading the good news about gas being an abundant and cheap source of energy that can reduce our dependence on foreign oil; can provide numerous high paying jobs in West Virginia; has the smallest sustained environmental footprint of any energy source and provides the state with an abundant source of tax revenue. ď Ž
Don’t Get Lost in the Shuffle By Damian Ferek
Growth is a funny thing. Five years ago, all the
possibilities of the Marcellus Shale lay in front of us, and we could only speculate the magnitude of its impact on our state and our region. Only now are we starting to see the incredible volume of business created by development in the region and how it will impact the future. In West Virginia, exploration and drilling had mostly been operated at a statewide level. With oil and gas companies moving across the entire nation to set up operations in West Virginia, our friends in the industry have shifted focus from a statewide and regional clientele to a nationwide audience. One of the main questions in the oil and gas ExEdge industry is “Why do I need to market my business? As an early form Everyone in the state knows what I do.” of advertising, The answer is simple—look around you. New the Ancient oil and gas companies are popping up daily, and Greeks hired criers to promote you need to make sure that your services are visible their products. to them. Out-of-state companies are bringing their operations to West Virginia. Will these businesses Source: http://www. be able to find your company in the sea of oil and multimedia gas companies throughout the Marcellus Shale marketing.com/ play? If you’ve never asked yourself this question, mkc/historyof it’s likely you’ll need to, and soon. marketing/ Take a look at your Web site. How does it
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compare to your competitors’ sites? Is the information easily found? Are your equipment listings, safety policies and services up to date? Are interested potential employees available to apply for a career online? When other companies are researching you, they will likely view your Web site and form an opinion of you based on that site. You should consider your Web site as your main selling tool since many times this will be a potential customer’s first means of evaluating your business. If your site is more than two years old and hasn’t been updated with new search engine optimization, or SEO, techniques, you may already have fallen behind, even if your site was impeccably built at the time you launched it. Where branding is concerned, harmony equals credibility. Each means of marketing your business, whether it is your Web site, business cards, brochures, equipment or work vehicle decals, needs to send a consistent message to the public. To examine the importance of consistency, consider a company like Blue Mountain Equipment Rental Corporation, recently acquired by United Rentals. As Blue Mountain gained its large foothold in the region through aggressive sales, it needed a distinct brand to match. The key was to develop an entire Blue Mountain branding strategy, from print and Web to the ubiquitous blue stickers on their equipment. Each piece of equipment that was rented
by Blue Mountain served as a mobile advertisement, both on the road and at job sites. Even if you didn’t do business with Blue Mountain, it’s likely that you recognize the light blue decals that adorn each Blue Mountain machine. This recognition produces top of mind awareness with nothing more than a decal. Are you putting your company vehicles to work as mobile advertisements? At least one of your competitors is probably already using a vehicle wrap or decal to promote their business while out and about. Blue Mountain’s recent acquisition by United Rentals clearly shows the importance of Blue Mountain’s brand, which allowed United Rentals to immediately acquire a strong foothold in the region thanks to Blue Mountain’s credibility and reputation in the state. Companies outside the oil and gas industry, finally seeing the economic potential in the Marcellus Shale, have already started tailoring their brands to embrace oil and gas. From finance to real estate and all around the state’s business spectrum, companies need to tailor their brands to attract oil and gas clients. As regulation increases, the demand for knowledge of the processes, laws and regulations is at an all-time high. If you were looking for insurance to meet your needs as, for example, an excavation company, which company would you hire first—an agency that promotes its industry credentials and experience or one that doesn’t mention the oil and gas industry at all? While I’d like to end this article by announcing a magic strategy to triple your profits or get you to the #1 ranking on Google for “natural gas,” the reality is that consistency, dedication and even some trial and error go into both creating a solid brand and Google search rankings. The ability to adapt to the latest standards in order to best serve your brand is a key for staying relevant in an everchanging market.
Each means of marketing your business, whether it is your Web site, business cards, brochures, equipment or work vehicle decals, needs to send a consistent message to the public.
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A Decade of Economic Change By Peter Balash and Gavin Pickenpaugh
As part of the National Energy Technology Laboratoryâ€™s
mission of advancing energy options to fuel our economy, strengthen our security and improve our environment, the following working presentation, published in February 2012, examines trends in U.S. fuel prices and household income across recent years. In real terms (taking into account general price increases or inflation), household money incomes have fallen while fuel prices have increased. Another area examined is the timing of energy price increases and recessions. For example, this presentation shows that recessions that have occurred since 1970 have been during periods of increasing real energy prices. This study also provides a breakout of energy prices and consumption to determine the driving factor behind energy expenditure increases from 2000 to 2010.
Energy E xpenditures/Personal E xpenditures
Energy expenditures are shown here as a percent of personal consumption expenditures from 1959 to 2011. Energy expenditures are broken out into two components: gasoline and fuel oil and electricity and natural gas. This graph shows that rising energy prices cause an increase in the proportion of consumersâ€™ budgets going toward energy expenditures.
Household Energy Consumption
With regards to household energy consumption for the time period of 1995 to 2011, there is an upward trend in consumption from 1995 to around 2006. After 2006 there is a downward trend, which is likely a combination of the recession, higher energy prices and regulations on the fuel efficiency of vehicles. The result is that from 2000 to 2011, there was a small increase of household energy consumption (about 0.7 percent).
Household Energy E xpenditures (Nominal)
This graph shows household energy expenditures from 1995 through 2011. An increase in expenditures can be primarily driven by an increase in price and/or an increase in consumption. Energy expenditures increased 105 percent from 2000 to 2011 and were primarily driven by price, which increased 103 percent over the time period. Energy consumption had a much smaller impact, as it only increased 0.7 percent over the period.
Household Energy E xpenditures
In breaking out household energy expenditures, price and consumption, there was little movement in price or consumption from 1995 to 1999; however, 2000 to 2011 saw large increases in gasoline prices, rising over 150 percent. This resulted in a decline in gasoline consumption of 4 percent. Prices for household electricity and natural gas increased over the period by more than 50 percent with consumption increasing 14 percent.
Asset Wealth Monetiz ation
Before the housing market crash, the large increases in energy prices were exceeded by the increase in gross equity extraction. There are numerous areas in which homeowners could spend the extracted equity; a couple of examples include major home repairs and consolidating more costly debt like credit cards.
This graph shows the timing of several bubbles (periods of flourishing economic activity in a particular sector that typically ends in collapse): the dot-com, housing and commodity bubbles. Each bubble experienced rapid declines after their respective peaks. The effects of the most recent recession are seen in the stock market crash. From late 2007 to late 2009, the U.S. market value fell $4.8 trillion.
Booms and Busts
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Re al Household Income versus Gasoline Price
From 1990 to 2010, mean real household income increased by about 11.6 percent. During the same period of time, the real price of gasoline increased by 47.9 percent. Therefore, in 2010, individuals were better off in terms of higher income than in 1990; however, in 2010, they were worse off in terms of higher gasoline prices than in 1990.
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A New Lease for Economic Development Post Mine Land Use
“We believe this project is not only restoring the land but the spirit of the land and its people as well.”
By Daryle Bayless
The history of West Virginia is built
on coal. It is the foundation of our economy as well as much of our way of life. When people picture coal mining, the deep dark recesses of the Earth come to mind, but that is only a part of the story. Surface mines allow coal companies to access coal seams throughout the state that cannot be accessed any other way. Roughly one-third of the coal from West Virginia, which amounts to about 50 million tons of coal annually, is from surface mines. “There are 215 active surface mines in West Virginia,” says Bill Raney, president of the West Virginia Coal Association. “These mines employ approximately 5,800 direct coal miners.” According to Raney, only about 1 percent of West Virginia has been impacted by surface mining. Surface mining is an intensive industry and a very divisive subject throughout the state. Many detractors of the practice claim that land cannot be used for any other useful purpose after mining and that the natural beauty is forever destroyed. The opposing argument is that the earth-moving operation of surface mining isn’t greatly different from building a commercial park or shopping center. “Any development is naturally limited by the landscape,” says Raney. In many cases, after mining operations are complete, land is configured for whatever use is needed at no cost to the future developer. “These sites have the potential to be very attractive to economic development, but the post mine land use also includes residential, educational and recreational uses.” Many of the deep mines throughout the state exist because of the infrastructure created by surface mining. Areas that would not otherwise be accessible
have been made so because the roads in the area were installed in a surface mining operation or installed on ground that was a previous surface mine. When permits are requested by the coal industry for surface mining, the companies are required to return the area to its approximate original contour unless an exception, called a variance, is issued during the permit process. This happens when the coal industry finds a partner that has a plan for the land after mining is complete. The coal industry then configures the land to meet the requirements of the future land user. “The relationship begins the moment we begin looking at a site to determine whether it should be mined and how the mining should proceed,” says Raney. Building any major project is very expensive. “Moving the amount of earth necessary to build a road, shopping center, school or an industrial park requires an investment of hundreds of thousands, if not millions, of dollars ExEdge before construction of the facility or the The Boy Scouts road even begins,” says Raney. When of America a site has a good downstream alternate Allohak Council use, the coal industry can leave major serves more than 3,000 youth utilities, roads and other infrastructure in in central West place that can save the developer money. Virginia and Ohio. Prior mine land can be used for more Source: than just commerce and economic http://www. infrastructure development that will allohak.org/ positively impact the state. The West Virginia National Guard (WVNG) and the Boy Scouts of America are two prime examples of organizations with national influences that are taking advantage of West Virginia’s post mine lands.
The Drop Zone is a 12,000-acre site in Clay County that has been made available to WVNG.
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West Virginia National Guard Joint Base West Virginia, a concept spearheaded by the WVNG, is an initiative designed to give West Virginia a homeland security and national security training capacity that will benefit local and national war fighters as they prepare to deploy on missions that support our country’s interests. Local guardsmen are provided the opportunity to learn how to better employ their skill sets in support of their mission. “We work with the industry. We find a (training) gap where we can leverage the usefulness of the post mine use land,” says Major General James Hoyer, Adjutant General of the West Virginia National Guard. “We find a legitimate use for the land that I think is saving lives.” One such site, the Drop Zone, is a 12,000-acre site in Clay County that has been made available to WVNG at no cost to the government. It allows pilots and crews an opportunity to practice low flying in which they must stay as close to the ground as they can to avoid enemy radar and weapons, as they would when approaching a drop site in the mountainous regions of Afghanistan. The Drop Zone is also certified for use by other military units from across the nation. “If training to airdrop supplies makes it so that supplies can be dropped closer to the troops on the ground who need them, it could increase their chance of survival,” says Maj. Gen. Hoyer, explaining that these same skill sets are also useful for dropping supplies in the case of flooding or other statewide emergencies. In response to the United States’ loss of troops and vehicles to
Improvised Explosive Devices (IEDs) in Afghanistan and Iraq, the Marines led the development of the Mine Resistant Ambush Protected (MRAP) armored fighting vehicle. The MRAP carries much greater armor protection, including a V-shaped hull to deflect blasts from IEDs. Though much more resistant to damage than prior vehicles used in combat zones due to being top heavy and weighing approximately 23 tons, they are difficult to drive and are subject to rolling over. “There was a training gap,” Maj. Gen. Hoyer says of the vehicles. “Folks were rolling the MRAPs over and dying from the rollover.” The Advanced Mobility Training Area, adjacent to the WVNG’s Center for National Response Memorial Tunnel training complex, was developed by a team that included Afghanistan war veterans to address this national need. In addition to the MRAP rollover training simulator, there is a 13-acre driving course built on a prior mine site that is designed to look and feel like the terrain of Afghanistan. This allows deploying service personnel to get real life experience driving over difficult terrain under simulated wartime conditions. According to Maj. Gen. Hoyer, without the ongoing partnership between the West Virginia National Guard and the coal industry, development of these types of training facilities with the current budget constraints would not be possible. “Using prior mine land is a great cost effective opportunity. It puts people to work locally on a national mission and brings people to West Virginia to spend money in our economy.”
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The Summit Bechtel Family National Scout Reserve The Summit Bechtel Family National Scout Reserve, a Boy Scouts of America (BSA) reserve that lies on 10,600 acres along the New River near Beckley, is a site that many are surprised to find is located on prior surface mined land. “The fact that this was previously mining property made this project possible,” says Steve McGowan, lead volunteer for the Summit Bechtel project. “The benches and roads of the mine mean the road infrastructure was already in place and will save the BSA about $100 million in development costs.” Included at the site are a National Center for Scouting Excellence, a High Adventure Base and a National Scout Summer Camp, which will give scouts and volunteers from all over the country a chance to learn about nature and participate in team building activities such as whitewater rafting, zip lining, target sports and rock climbing. In addition, the summit is the new home of the Boy Scouts of America National Jamboree, which is held every four years and hosts scouts from all over the country. “Some of the areas that were mined by small mountaintop removal projects have left the BSA with hundreds of flat acres to support program elements with panoramic vistas of the
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surrounding areas,” says McGowan. “We believe this project is not only restoring the land but the spirit of the land and its people as well.” According to a study conducted by Syneva Economics, LLC, operations at the summit will create more than 1,100 jobs and inject more than $25 million into the local economy, resulting in more than $9 million in tax revenue. The jamboree is expected to attract 250 thousand additional scouts and volunteers that will add $16 million every four years. The ability to recover a prior mine and configure it to whatever use the future owner needs can be a major factor in attracting business and encouraging tourism within the state. “This project will bring people to West Virginia and introduce its natural beauty to the world,” says McGowan. “It makes a statement that with vision and partnerships we can have both the energy we need and the opportunity to do great things with West Virginia’s most abundant natural resource—its basic scenic beauty.” Photography by the West Virginia National Guard and Boy Scouts of America
Driving Economic Growth Natu r a l Gas V ehicl es
The game changer for natural gas vehicles has come via shale gas development. Where America has looked since the Carter Administration to conserve natural gas, we now have an abundance of the fuel that serves to significantly lower costs and create long-term stability in the market.
By Randy Coleman
The United States spent
almost $451 billion in 2011 on foreign oilâ€”$1,468.27 for every American man, woman and child. Almost all of that foreign oil is consumed through vehicles on highways. Natural gas vehicles have been around for decades both here and abroad. More than 100,000 exist in the U.S., with millions more in use around the world, and todayâ€™s vehicles have the same power as their gasoline counterparts. Meanwhile, pipelines crisscrossing the United States, including West Virginia, make transportation of gas to refueling stations possible The game changer for natural gas vehicles has come via shale gas development. Where America has looked since the Carter Administration to conserve natural gas, we now have an abundance of the fuel that serves to significantly lower costs and create long-term stability in the market. The average price for compressed natural gas at the pump in a gasolinegallon equivalent is $2.02 compared to almost $4.00 per gallon that most of us are accustomed to paying. At half the price of gasoline, natural gas becomes an option that is too attractive to ignore. Natural gas is cleaner than gasoline and emits up to 30 percent less carbon dioxide, 75 percent less carbon monoxide, 54 percent less nitrogen oxide, 95 percent less particulate matter and 55 percent less volatile organic compounds. Unlike oil, natural gas generally requires limited processing to prepare it for use. In 2011, the Honda Civic Natural Gas was named Green Car of the Year. During its 12 years of production, the Civic has proved there is a market for natural gas vehicles. Ford, Chevrolet and Chrysler will release their own compressed natural gas vehicles this year. National and international companies such as AT&T, Disney, UPS, Waste Management and numerous city bus services are now using natural gas vehicles to lower their transportation costs.
In January 2012, a natural gaspowered motorcycle built by Orange County Choppers for Chesapeake Energy Corporation was on display at the West Virginia International Auto Show. Thousands of visitors took time to sit on this sleek bike and have their picture taken. Kanawha County has announced its Kanawha Converts program. A committee representing various interests in that county is working to convert vehicles owned by public entities from gasoline to natural gas power. The annual savings will be in the hundreds of thousands of dollars. For years, the question has been a chicken-or-egg scenario. Would car companies build natural gas vehicles, which would spur development of fuel stations, or would it be the other way around?
The question, perhaps, insinuated that neither would happen, but the abundance of natural gas and low, stable prices have ensured that the fuel is a sustainable reality while oil prices have been higher for years. Natural gas vehicles in West Virginia will most likely expand first with fleets that return to a central fueling station each day. Garbage trucks, busses, short-route delivery trucks and postal vehicles are good examples. With consumer confidence, personal vehicles will follow. Tax credits and lower fuel costs will make natural gas vehicles even more attractive. These savings will put thousands of dollars back into the pockets of West Virginians. Equally important, we can finally free ourselves of total dependence on foreign oil.
Fill ’Er Up By Stephen Yborra As the country looks toward natural gas vehicles and freedom from foreign oil, consumers need to understand the basics of natural gas as a vehicle fuel and how the fueling stations function. With the rising cost of gasoline and the growing popularity of natural gas vehicles, compressed natural gas (CNG) fuel stations have become more common. Regardless of size, whether a large public-access, fastfill location for hundreds of vehicles or a home refueling appliance for just one car, CNG stations take low pressure natural gas, usually delivered via the local gas utility’s underground service line, and compress it to much higher pressure for storage either in the vehicle’s onboard cylinders or in on-site high-pressure CNG vessels for fast fueling vehicles. A fast-fill CNG station typically includes a gas dryer, a compressor or two, highpressure steel storage spheres or tubes, one or more NIST Weights & Measuresapproved dispensers with hoses, various filters and a central controller and related solenoid valves. While today’s onboard cylinders store gas up to 3600 poundsper-square-inch (psi), there are still old vehicles in service with cylinders designed
for 3000psi, so many stations still include one hose to provide no more than 3000psi CNG. A properly sized and designed fast-fill CNG station can fuel at rates comparable to gasoline or diesel. The right balance of compression and storage at a station will depend on vehicle fueling patterns and the predictability of those fueling patterns, projected maximum and average hourly loads, available space and incoming gas line volumes and pressures. A time-fill CNG system delivers fuel directly to the vehicle’s onboard cylinders over extended periods of time. Home refueling appliances are time-fill devices. Time-fill systems are attractive to fleets with vehicles that use one tank of fuel or less per day and sit idle at a central depot for 10 or more hours each day. Examples include trash trucks, food and beverage delivery trucks, school buses and municipal vehicles. The fueling rate per vehicle is determined by the production capacity of the compressor, the number of vehicles connected to the system at any one time and maximum flow limitations of fill lines, filters, et cetera. Time-fill stations do not need highpressure storage vessels or expensive fastfill metering capability. Instead, CNG is
delivered directly through dispensing hoses mounted on posts located at vehicle parking spots. Although commonly referred to as slow-fill, a time-fill system may provide a fairly quick fill if only one vehicle is drawing down on the CNG supply. Fully-loaded CNG cost/gasoline-gallonequivalents (GGE) include the unregulated market price of natural gas, the regulated tariff paid to the local gas company for acquiring and delivering natural gas to the meter, compression energy, station maintenance expense and—the largest component—the amortized cost of station equipment. Compared to standard diesel and gasoline stations, CNG stations are relatively costly, thus requiring high volumes against which to amortize capital equipment cost-per-GGE. That’s why most natural gas vehicle efforts are directed at fleets that, alone or aggregated together, use sufficient fuel to justify initial investment. Increasingly, retail CNG availability is expanding to consumers, either at traditional fuel locations that target fleet accounts for base load and/or via installation of retail publicaccess at fleet locations. Cost reductions in home fueling appliances will further open the consumer market.
Fueling Fleets By Phil Pfister Fleets are the backbone of our country’s current and immediate adoption of CNG as a fueling option. For fleet managers, CNG offers major financial benefits, most notably the ability to cut fuel costs in half. Companies from AT&T and Coca-Cola to UPS, Waste Management and FedEx are endorsing this fueling option as they convert their corporate vehicles to run on clean burning, American natural gas. As many fleets have predictable fuel volumes, managers feel confident in the fuel savings they will realize with natural gas vehicles. CNG retails on average for less than $2 per gasoline gallon equivalent—a savings of more than $1.50 versus gasoline. Although natural gas vehicles (NGVs) cost more upfront, breakeven savings can typically occur within three years or less. Chesapeake Energy Corporation offers a current example of these savings at work. As one of the nation’s leading natural gas exploration companies, it is accelerating
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plans to convert more than 5,000 lightduty vehicles in its fleet to run on natural gas. Many of these vehicles will be on West Virginia roads thanks to Chesapeake’s operations in the Marcellus Shale. Each converted truck will save the company $2,750 in fueling costs. When all 5,000 vehicles are converted, that’s an annual savings of nearly $14 million. A lot has been accomplished and many steps have been taken to make NGVs a great option. However, more work must be done with both fueling infrastructure and vehicle availability. Fortunately, the marketplace and economic factors are shifting and CNG-fueled vehicles are at a major turning point. General Motors and Chrysler announced in April that they will introduce bi-fuel (propelled by both CNG and gasoline) trucks into the market. Ford Motor Co. is offering CNG prep engines that can more readily be converted to natural gas after
production. Not only are these powerful validations of the future of CNG, but they offer fleet managers more vehicles to choose from and provide increased confidence of original equipment manager (OEM)-supported technology and engineering. Special vehicle upfitters or qualified vehicle modifiers can also be contracted to modify cars and trucks to use CNG. Related to infrastructure, fleet demand will drive more local convenience store operators to integrate CNG into their business. As an example, Chesapeake is working to identify local West Virginia retailers interested in serving as its preferred CNG fuel provider. Other local organizations, such as the Kanawha Converts Consortium and the City of Charleston, will also drive demand as they convert their vehicles.
Alternative Fuel Tax Credit By Mark Morton The ever-increasing costs of fueling our vehicles have given rise to an interest in alternative fuels. Whether converted, retrofitted or brand new, alternative fuel vehicles and refueling stations can be costly upfront. West Virginia offers a tax credit for qualifying taxpayers. The West Virginia alternative fuel tax credit became available in 2011 and is scheduled to end December 31, 2021. It includes: • The purchase of a new dedicated or bi-fueled alternative fuel motor vehicle for which the purchaser then obtains a valid West Virginia vehicle registration; • The conversion of a motor vehicle that is presently registered in West Virginia to operate exclusively on an alternative fuel and • The construction or purchase and installation of a qualified vehicle refueling station capable of dispensing alternative fuel for alternative fuel motor vehicles. The alternative fuel tax credit applies against a taxpayer’s West Virginia business franchise tax, corporation net income tax and personal income tax. Taxpayers can
carry forward the credit to future tax years through 2021. It is important to note the alternative fuels tax credit is not available to taxpayers obligated under federal or state law, policy or regulation to convert to the use of alternative fuel. Alternative fuels, for the purposes of this credit, include compressed natural gas, liquefied natural gas, liquefied petroleum gas and ethanol, as well as fuel mixtures containing 85 percent or more by volume—when combined with gasoline or other fuels—of methanol, ethanol or other alcohols. Alternative fuels also include hydrogen, electricity— including power from solar energy—and natural gas hydrocarbons and derivatives. An alternative fuel motor vehicle, meanwhile, could be new, retrofitted or converted. It operates solely on one alternative fuel, is capable of operating on a combination of alternative fuels or can run on a mix of alternative and traditional fuels. The state tax credit for purchasing an alternative fuel vehicle weighing less than 26,000 pounds is 35 percent of the price, with a maximum of $7,500. The conversion
credit for that same vehicle is 50 percent of conversion cost with a $7,500 maximum. For vehicles weighing more than 26,000 pounds, the percentages are the same, although the maximum is $25,000. A refueling station—or a qualified alternative fuel vehicle refueling infrastructure—is used for storing and dispensing alternative fuels. The infrastructure property includes compression equipment, tanks and dispensing units. Refueling stations must be located in West Virginia to be eligible for the credit. The home refueling station credit is 50 percent of the total cost, with a maximum of $10,000. For refueling stations located away from a home, the credit is 50 percent of the total cost and 62.5 percent if the station is meant for public use. The maximum amounts for stations away from the home decrease throughout the credit’s life. Through December 31, 2013, the maximum is $250,000 and $312,500 for public use stations. From January 1, 2014 to December 31, 2015, the amounts are $200,000 and $250,000, respectively. Through December 31, 2021, they are $150,000 and $187,500.
Economic Impact By Kelly Bragg and Matthew Thomas As an established and proven transportation fuel, natural gas powers 112,000 vehicles on U.S. roads today and more than 13 million worldwide. With about 30 separate companies making 100 light-, medium- and heavy-duty vehicles and engines, according to NGVAmerica, options for fleets and consumers have never been better. With potential to provide enough gas for two years of consumption by the entire U.S., the Marcellus Shale underlies most of West Virginia at a depth of about one mile. The Utica Shale, another potentially rich source of natural gas, is another few thousand feet below. Although it would be more expensive to extract natural gas from the Utica Shale, its existence combined with the Marcellus Shale have led to predictions that a ready supply of natural gas will mean price stability for the long term. Not inconsequentially, natural gas has lower ozone-forming emissions than gasoline but is comparable in power and speed and has an existing pipeline distribution system. Adding its status as
a domestically produced fuel explains why fleets from Florida, New York and California, as well as Ohio, Pennsylvania and Kentucky, have adopted natural gas. The economic impact on fleets and consumers is rooted in the fuel’s current low cost compared to petroleum-based fuels. The January 2012 Clean Cities Alternative Fuel Price Report shows a nationwide average price of $3.37 for gasoline, $3.86 for diesel and $2.13 for CNG. For a first-cut cost analysis of converting or buying CNG vehicles, Virginia Clean Cities has developed The Calculator at www.ngtoolkit.net. Locally, Kanawha County, Charleston Area Alliance and Bridgemont Community and Technical College have renewed an interest in natural gas for transportation with the creation of the Kanawha Converts consortium, which is harnessing fastmoving developments in the market, automotive industry and energy sector. The Kanawha County Commission’s emergency management and economic development division understands that
CNG positively impacts the environment by reducing greenhouse gas and particulate emissions in air breathed by the county’s citizens and the local economy by reducing county transportation costs. Kanawha Converts will assess education, policy, training, market and financial needs for CNG vehicles and infrastructure in Kanawha County. A proper inventory of skill, types and number of technical positions required for conversions will be assembled. “Being able to save money by converting to natural gas vehicles will put more money in the pockets of the governmental entities, businesses and residents of the county and thus be like a tax break for everyone willing to take the step,” says Ryan White, an associate at Jackson Kelly PLLC. “The best thing about this initiative is that it encourages the use of a fuel that is very prevalent in West Virginia and diverts that from money we are sending to other countries. It also can lead to the creation of jobs through local conversions and the construction of the necessary infrastructure.”
COAL MAKES WEST VIRGINIA THE LAND OF OPPORTUNITY
There’s no doubt about it: Coal mining is the engine that drives West Virginia’s economy. It has an annual economic impact of $26 billion; pays nearly $3.4 billion each year in wages to miners and workers in related industries, and – along with coal-burning electricity generators – represents almost 60 percent of the business taxes paid to the State. On top of that, over 60,000 West Virginia families depend on coal for their livelihood. That means coal is creating jobs, supporting vital services, and improving the quality of life across the state. And we’re proud to be a part of an industry that is making those kinds of contributions and ensuring that West Virginia remains a true land of opportunity for everyone. Natural Resource Partners L.P. (NRP) is a landholding company that owns 2.3 billion tons of coal reserves, 865 million tons of which are located in West Virginia. NRP leases to more than 25 coal mining companies in West Virginia that produced more than 16 million tons of its West Virginia coal in 2011.
5260 Irwin Road Huntington, WV 25705 www.nrplp.com
“Investment in broadband communications is vital to future economic growth and education opportunities for the State of West Virginia.”
Wild, Wonderful Wired West Virginia By Dana Waldo
West Virginia is experiencing a transformation
that is creating excitement among business and government leaders who recognize that vastly expanded telecommunications services can be a catalyst for economic growth across the state. The energy sector has noticed too. Leaders in the state’s natural gas industry who are now managing the Marcellus Shale play see these services as a key element in supporting the industry itself and enabling potential downstream manufacturing as well as energy research and development. Frontier Communications is driving the optimism through the completion of a 2,600-mile, next-generation, middle-mile network, which company officials say will dramatically increase bandwidth and service reliability in the state. Frontier officials see this fiberoptic network, known as Fiber 7.0, as critical infrastructure that can fully support the business investments West Virginia is seeing today in the natural gas industry and other economic sectors. “Investment in broadband communications is vital to future economic growth and education opportunities for the State of
ExEdge Instead of the
West Virginia,” says Keith Burdette, West Virginia’s traditional Secretary of Commerce. “Frontier is investing in its “Person of the telecommunications infrastructure, and that will Year,” TIME Magazine named encourage small, medium and large businesses to the computer connect and collaborate with the global marketplace. the “Machine of the Year” on The result will be jobs for our citizens.” Leading energy industry executive David Porges January 3, 1983. has expressed his views on the necessity of having Source: http:// adequate infrastructure in place. “As an integrated www.time. energy company with emphasis in the Appalachian com/time/ covers/0,16641, region, EQT maintains more than 4,500 miles of 19830103,00. pipelines, drills about 45 new wells each year and html plans to invest more than $130 million in West Virginia this year alone,” says Porges, the chairman, president and CEO of EQT Corporation. “In order to efficiently and effectively manage our operations, it is imperative that we have a reliable telecommunications system to send and receive large amounts of time-sensitive data.”
This electronic board supports many Frontier Communications broadband customers.
Nicholas “Corky” DeMarco, executive director of the West Virginia Oil and Natural Gas Association, who says companies must have telecommunications infrastructure that has both capacity and reliability, has taken notice of Frontier’s investment. “The investment Frontier is making in its network is important to companies that want to grow in West Virginia,” he says. “The energy sector is made up of highly technical businesses that
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must have the ability to move and share data.” He adds that energy development often occurs in areas that traditionally have not had adequate telecommunications, and Frontier’s investments expand the availability of services that are important to energy producers. DeMarco firmly believes the Marcellus Shale play sets the stage for chemical and plastics manufacturers to operate in West Virginia. Those companies, he
says, must have a reliable supply of feedstock from ethane cracker plants that process natural gas from the Marcellus formations. West Virginia is considered a prime candidate for cracker plant development. “Telecommunications services are important to manufacturers, and I see Frontier’s fiber optic network as a game changer for the West Virginia economy,” he says. “The opportunities also extend to energy-related research and development enterprises, which also require the ability to move data.” While Frontier is not new to West Virginia, it expanded its presence with the acquisition of Verizon markets in the Mountain State in July 2010. Frontier now serves more than 95 percent of the Mountain State. Ken Arndt, president of the Southeast Region for Frontier, says the company began at that moment to move West Virginia toward becoming a leader among states in broadband connectivity. No longer would West Virginia be deprived of broadband service that drives commerce in urban areas and more prosperous states. No longer would the state’s rugged terrain or rural environment prevent business owners, entrepreneurs, researchers, medical professionals and students of all ages from having access to high-bandwidth broadband and the opportunities it offers. Instead, West Virginia would become a national leader in broadband connectivity and capacity. According to Arndt, Frontier had multiple tasks to undertake when it acquired Verizon’s properties in West Virginia, including the commitment to spend $310 million of its own capital in three years to improve, strengthen and expand its telecommunications network throughout the newly acquired territories. The company also agreed publicly to make Internet service available to more than 85 percent of the households in the newly acquired markets within three years. The company is well ahead of schedule
on that commitment. Arndt says Frontier has already elevated access to broadband from about 61 percent of households in the acquired markets in July 2010 to nearly 80 percent today. The 85 percent benchmark was manageable for a company that already provides access to more than 90 percent of households in the West Virginia markets it served before the Verizon transaction. Frontier, however, has more in mind than expanding service in West Virginia. “We view West Virginia in a holistic way, and we are building a leading-edge broadband system that can serve customers across the state,” says Arndt. “That is an incredible opportunity that simply does not exist in any other state in America.” Because Frontier serves virtually the entire state, the company has been able to build the Fiber 7.0 Network, which can serve customers in every county of West Virginia. Such an opportunity, Arndt says, does not exist in states where several telecommunications providers serve different geographic areas. In other words, Frontier’s geographic reach in the market justifies its investment in the Fiber 7.0 Network. The Fiber 7.0 Reconfigurable Optical Add-Drop Multiplexer Network is an ultra-high bandwidth optical transport system that provides maximum flexibility for traffic. It can react dynamically to spikes in bandwidth usage and provide superior service. In addition, it can reroute traffic around cut cables or points of network distress. “The build-out of Fiber 7.0 is a gamechanger,” Arndt says. “It encourages investment—from business startups to the expansion of existing businesses. It will spur economic growth and job creation in West Virginia. We are delivering the bandwidth and reliability that companies need to succeed. That commitment to the future means we want to see our friends and neighbors succeed economically.” Mindful of recent developments in the energy sector, Arndt notes that Frontier’s 7.0 network can be critical for companies that develop and produce
While broadband services are essential to large companies, they also give entrepreneurs opportunities to develop their customer base from their hometowns in West Virginia. Consider two West Virginia women whose home-based businesses depend on broadband. Blue Smoke Salsa Robin Hildebrand is a food production pioneer. Based in her hometown—Ansted in Fayette County— Hildebrand and her employees create and sell products under the well-known Blue Smoke Salsa label. A decorated entrepreneur, Hildebrand explains that she has altered the structure of her business and is now using her broadband connection more than ever to generate sales. “With my new business structure, high-speed Internet is essential to its success,” Hildebrand says. “E-commerce orders have tripled during the past year. When you’re located in a small rural community such as Ansted, you can kind of feel isolated, but with great broadband service, the entire globe can be your target audience. Small business can mean big business in the cyber world.” Clover Dew Cookie Creations Karen Heeter, owner of Clover Dew Cookie Creations in Mercer County, has leveraged her enjoyment of baking into a home-based business. With the support of her husband, Bill, she receives orders online for her home-baked cookies, promptly creates the tasty products in her home-based kitchen and ships them across the nation and beyond. “Clover Dew Cookie Creations is connected daily with the world via the Internet,” Heeter says, adding, “There’s nothing better than receiving the notification on my smartphone indicating ‘You have cash,’ and we will plan to prepare the order and ship the next day.” And Clover Dew doesn’t have to limit its market. “We have been very fortunate to receive orders from all over the USA,” Heeter says. “We have even been contacted by a mom that is stationed in Afghanistan to ship her daughter cookies!” For Hildebrand and Heeter, broadband is an essential tool that allows them to maintain their businesses in the Mountain State while serving customer bases that extend far from home.
Frontier's crew building out broadband in the Mountain State.
Marcellus Shale gas and those enterprises that may use derivatives from the gas in their manufacturing processes. “We understand the Marcellus boom could be the linchpin for renewed chemical and plastic manufacturing in West Virginia,” he says. “We saw innovation in West Virginia in the past in the plastics and chemicals sectors. The Marcellus development could spur the next generation of research and development in that field. That could occur within private companies and at our universities.” Recent energy developments may also lead to research and development opportunities in West Virginia, and Arndt points out that those commercial and research enterprises clearly will have a need to move huge amounts of data quickly, efficiently and securely. Frontier’s investments will deliver those services. Arndt is confident that Frontier’s Fiber 7.0 can have a critical role in encouraging energy-sector investment,
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and the company has already seen major non-energy companies take advantage of its commitment to drive West Virginia to the upper tier of states when it comes to broadband connectivity. Macy’s and Amazon.com have invested heavily in Berkeley and Cabell counties respectively to establish major operations that require high bandwidth and reliability. “Investments from these world-class companies are clear evidence that West Virginia has the capacity to attract large employers that need to be competitive in their global markets,” Arndt says. “We believe the decisions of Macy’s and Amazon tell other companies they can depend on the broadband capacity that Frontier provides.” Frontier’s Fiber 7.0 project also serves the needs of start-up and existing small businesses in the state. West Virginia entrepreneurs and local business owners and managers will be able to use Frontier’s broadband access as their leading-edge gateway to commerce. “Main Street
business owners across West Virginia now have greater access to their existing markets and an opportunity to develop new markets for their products and services,” Arndt says. “Our investment gives those small business owners and their families a chance to remain in West Virginia and do what they do best. They now have another avenue to success.” According to Frontier’s Southeast Region president, the men and women of Frontier are proud to help build and maintain a network that can drive economic growth that can allow young West Virginians to live and work in their hometowns. “We see our investment as a key to West Virginia’s future,” Arndt says. “We all are optimistic. We are pleased that we are generating awareness about this great opportunity for the people of West Virginia.” Photography by Chris Bane, Blue Smoke Salsa and Clover Dew Cookie Creations
Our People, Our Promise
Providing the following services to the oil and natural gas industry: Engineering and Consulting • Engineering and Design • Site Selection • Site Development • Stormwater Plans • Stream Crossing (HDD and Open Cut) Design • Environmental Compliance • Pre-Drill Services • Well Records Searches • Well Permitting • Wetland Delineation • Water Well Surveys/Sampling • E&S and Reclamation Plans • Freshwater (Groundwater) Studies • Aquifer Analysis • Water Permitting and Sampling • Water and Waste Management Plans • NPDES Permitting and DMRs • SPCC Plans • GPPs and SWPPPs
C OT E
• US ACOE Permits
L D R ILLI N G H NICA
• DNR Stream Activity Application • Post Development Water Impact Studies • Stray Gas Studies • Expert Witness
Contracting Services • Location Development and Reclamation • Location Maintenance
he owners of EnviroProbe Integrated Solutions, Inc. have been involved in the oil and natural gas production and service industry since the mid-1970’s. Armed with an experienced team of engineers, geologists, toxicologists, technicians, drillers and operaters, EnviroProbe has the capabilities to handle pre-drilling permitting and planning, location construction, well plugging and environmental issues.
630 Cross Lanes Drive Nitro, WV 25143 304.776.6717 www.enviroprobeinc.com
Bringing All the Right Things Together
• Drilling • Geotechnical • HDD Crossing Evaluations • Aquifer Evaluations • Water Withdrawal • Stray Gas Mitigation • Pit Treatment, Discharge, & Reclamation • Construction Inspection and Oversight • Environmental • Spill Response and Cleanup • Waste Management • Soil and Groundwater • Remediation • Stray Gas Mitigation • Well Plugging
Your mother wouldn’t be proud.
D oe s
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Reduce the waste and save money while you’re at it. Drink tap water—NOT bottled!
Every day, 60 million plastic bottles are disposed of in America. Don’t add to the waste. High-quality tap water is delivered straight to your tap. No bottle required. Not to mention, tap water is subject to quality standards that often exceed those of bottled water. Plus, it’s a lot cheaper. At about a penny a gallon, tap water is hundreds of times cheaper than bottled water. Tap water. Better for the environment. Better for you.
Visit www.westvirginiaamwater.com to learn more about West Virginia American Water’s environmental stewardship initiatives.
Advancing Alternative Energy By Courtney Sisk
While West Virginiaâ€™s abundant supplies of coal have helped
power homes and businesses across the country for decades, the state is also ripe with opportunities to develop alternative energy sources, including wind, hydro, solar, geothermal and biomass. West Virginia is taking a lead in meeting the nationâ€™s energy needs through these technologies.
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Wind New uses for lands that were formerly home to surface coal mines include wind farms, which take advantage of West Virginia’s considerable wind potential. Researchers at Marshall University say that West Virginia may have the greatest inland wind potential of any eastern state. The wind power in West Virginia is some of the strongest in the nation. “With some areas of our state having little flat land for development, the use of surface mined lands has been critically important,” says Division of Energy Director Jeff Herholdt. “In addition to the flat land, many projects are able to take advantage of infrastructure, roads and electric service used during coal mining.” Two of West Virginia’s wind projects include the NedPower Mount Storm Wind Farm in Grant County, which is one of the largest wind farms in the eastern United States, and Beech Ridge in Greenbrier County. NedPower is fully operational and generates up to 264 megawatts (MW) of electricity
from a renewable energy source for the MidAtlantic power grid. The farm consists of 132 wind turbines along 12 miles of the Allegheny Front. It can generate enough electricity to serve about 66,000 homes and businesses. Beech Ridge is a $300 million, 67-wind turbine wind farm, also fully operational, with 100 MW of capacity. Each wind turbine is 400 feet tall, generates 1.5 MW of electricity and was built by skilled West Virginia construction workers.
hydro West Virginia is modernizing its impressive hydropower resources to take advantage of a reliable source of energy: water.
Glen Ferris In June 2010, Brookfield Renewable Power started the rehabilitation of a hydropower project located in Glen Ferris on the Kanawha River. The company invested $25 million to bring the plant, built in 1899, back into full production. The project included the overhaul and modernization of the facility’s eight turbine units. When completed this year, the Glen Ferris hydropower project will have a capacity of 38 MW.
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Hawks Nest Brookfield manages the 102-MW hydropower plant at Hawks Nest on the New River. The company has committed $50 million to a 20-year capital investment program for the plant.
New Martinsville The New Martinsville Hydroelectric Plant continues to be a good source of renewable energy. The 36-MW Wetzel County unit produces enough power for a city seven times the size of New Martinsville, which has a population of 7,000. The plant has used the Ohio River to generate its power since 1988, and the power is sold to Allegheny Energy for distribution to the nation’s electric grid.
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solar West Virginia passed legislation in June 2009 authorizing a solar energy tax credit for residential installations. Many of the state’s municipalities are also finding ways to use energy that’s available straight from the sun.
been equipped with 84 solar panels. City Manager Ben Newhouse says they will save the city about $1,000 a month. A $193,000 federal grant from the U. S. Department of Energy paid for the panels.
A large solar array at the Book Exchange in Morgantown harvests power from the sun using a group of 52 solar panels mounted to the roof of the Evansdale store location. The system is connected to the grid for net metering and does not use any batteries. Annually, the system produces about 10 percent of the store’s energy demand. Financial incentives, including a 30 percent federal tax credit and accelerated depreciation, coupled with an emerging renewable energy credit market allow for an expected payback in just over seven years, according to the company that designed the system. Once paid off, the system is forecasted to provide more than $4,000 each year in income.
Last summer, the Morgan County Courthouse became the first courthouse in the state to go partially solar. The system includes 108 solar modules on the roof of the courthouse, rated at 235 watts each. The system will convert about 29,000 kilowatt hours of electricity each year, offsetting around 20 tons of carbon and saving the county about $10,000 per year in energy bills. A monitor on a wall in the courthouse lobby shows the energy being generated by the panels.
Hurricane Hurricane’s water reclamation plant, which handles the city’s waste water, has
Courses offered on weekends in Charleston, Clarksburg, Martinsburg and Parkersburg Access to a faculty internationally known for their communication research And, of course, improved communication and problem-solving skills. For more information, contact us at (304) 293-3905 or visit our Web site at bit.ly/wvucorporatema
Beech Bottom Federal stimulus money paid for the recent installation of solar panels on the town hall of Beech Bottom in Brooke County. The system consists of 21 240watt modules. The panels are expected to produce about 50 percent of the town hall’s electricity per year. The total cost of the installation was about $31,000.
geothermal At the core of the Earth, thermal energy is created by radioactive decay and temperatures may reach more than 9,000 degrees Fahrenheit. Heat conducts from the core to surrounding cooler rock. Geothermal power is cost-effective, reliable, sustainable and environmentally friendly. Several projects in West Virginia are now taking advantage of this power source.
Buckhannon The City of Buckhannon used a $171,000 grant to replace an HVAC rooftop unit at city hall with a geothermal ground source heat pump system using vertical wells. Twelve geothermal wells were installed underneath the building’s parking lot. Ground temperature remains at a constant 55 degrees, so it’s easy for city officials to use this method to regulate temperatures throughout the building. The system will save 20 percent electricity and 60 percent natural gas consumption.
Franklin The town office in Franklin, in Pendleton County, is also using geothermal energy. City officials will no longer have to use more than 1,200 gallons of propane in the building’s furnace. It was recently replaced with a 3-ton geothermal heat pump with backup electric heat. Additional attic insulation was installed in the building to reduce thermal loss.
biomass Researchers are examining the potential of surface-mined land to grow biomass in West Virginia. One project is analysis of Arundo donax, or giant reed, as a biomass fuel source that could be grown on former mine sites where there are poor soil conditions. The giant reed, which can grow up to 20 feet tall, is in the same family as switchgrass, another potential biofuel. The material is harvested and then pressed into a dense briquette similar to wood pellets used in some wood stoves. West Virginia’s development of alternative and renewable energy sources is a top priority. The state’s Alternative and Renewable Portfolio Standard, approved by the West Virginia Legislature in 2009, requires that 25 percent of the state’s energy production be alternative or renewable sources by 2025. The interim requirements are 10 percent by 2015 and 15 percent by 2020. Energy independence remains crucial to America’s future, and these projects illustrate how West Virginia is taking the necessary steps toward achieving that goal.
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PA S T , PRESENT & FUTURE
C E L E B R AT I N G T H E
October 4-5, 2012 at the Tamarack in Beckley, WV The past, present, and future of the mining industry depends on the industryâ€™s enterprise ecosystem: thousands of individuals in key roles who contribute significantly to each ton of coal produced. It is because of YOU that the mining industry is the success it is today. Join us in celebrating the contributions that are being made, have been made, and will be made to West Virginiaâ€™s mining enterprise ecosystem.
Event registration is $100 and the deadline to register is September 21st. For more information on sponsorships, exhibition space, and registration, contact Teresa Buckland at (304) 696-3568 or by e-mail at email@example.com. CORPORATE SPONSORS
Registration and a detailed agenda are also available online at www.marshall. edu/cegas/events/mcc/reg.htm.
Energizing Education Energy Education in the Mountain State
By Jennifer Jett
With a long history of coal mining,
immeasurable potential for harvesting alternative energy sources and now the unexpected success of natural gas drilling from the Marcellus Shale play, West Virginia remains a vital piece of the country’s energy supply chain. With an expected surge in retirement, aggressive harvesting of natural gas and alternative energy sources and a need for coal that will not go away anytime soon, West Virginia’s energy industry is ripe for growth with a very real need for skilled, knowledgeable workers. Several higher education institutions in West Virginia have taken up the cause of preparing the future work force for the energy industry. From apprenticeships and partnerships that offer real-world, hands-on experience to training in green energy, wind turbine technology, electric utility technology and mine management, West Virginia’s students are receiving the education they need to move the Mountain State’s energy industry forward.
West Virginia Apprenticeship Program Apprenticeship programs play a key role in training the highly skilled work force needed for the booming Marcellus Shale gas and energy industries in West Virginia. An apprenticeship is a formal course of study combined with on-the-job instruction that ranges from two to five years and includes at least 1,000 hours of on-the-job experience and 144 hours of in-class training each year. There are approximately 35 apprenticeship programs for 14 trades in West Virginia. Each apprentice works under the direct supervision of a skilled journeyman and earns a paycheck through these “earn-while-you-learn” programs. The vast majority of apprenticeship programs in West Virginia are funded and overseen by labor and management partnerships. These programs have a proven track record of success and result in 100 percent job placement. As large sums of money are invested into the burgeoning Marcellus Shale industry, contractors and labor unions annually pump millions into the apprenticeship training of the people who will work in the growing natural gas industry. Apprenticeship programs can provide all the specialized craft workers—operating engineers, pipefitters, laborers, electricians, iron workers, boilermakers and carpenters—to get the job done right.
Blue Ridge Community and Technical College WorkForce West Virginia and the West Virginia Community and Technical College System were the recipients of the GREEN-UP Grant, a grant from the U.S. Department of Labor to support green energy education. Blue Ridge Community and Technical College (BRCTC) is a recipient of the grant’s funds and has established a complete line of green industry training for West Virginia contractors and individuals interested in solar power systems. Courses offered to date at BRCTC include “Introduction to Solar Electric Systems,” “Introduction to Wind Turbine Electric Energy Systems,” “Solar Electric Systems Grid Tie-In” and “Solar Thermal Systems.” College students enrolled in various engineering programs are also able to take a four-credit-hour renewable energy electric systems course. Blue Ridge offered a six-hour International Code Compliance Course on April 27, 2012 called “2009 International Energy Code Compliance Fundamentals” at no cost to West Virginia residents, and BRCTC will continue to provide advanced training throughout 2012 to the local community. As the potential for growth continues in the industry, training options will undoubtedly continue to expand and evolve.
Eastern West Virginia Community & Technical College At Eastern West Virginia Community & Technical College, students, faculty and administrators are pitching in year-round to make West Virginia’s vision of an energy-independent America a reality through natural gas, coal, wind, biomass and solar power. “Since we launched our wind energy turbine technology program in the spring of 2010,” says Eastern Dean of Career, Technical and Workforce Education Ward Malcolm, “we’ve had nearly 70 students enroll in our ‘Introduction to Wind Energy Technology’ course.” Although most of those students live in and around Eastern’s six-county Potomac Highlands service district, last fall nearly 20 students registered 170 miles away at the Monroe County Vocational Center in Lindside. “We’re set up to offer a lot of this material through distance learning technology,” Malcolm explains. Because the wind energy industry is undergoing a boom in several parts of the state, Eastern welcomes inquiries from any vocational or career and technical school that might be interested. “At the college level, for early entrance and dual enrollment students,” Malcolm says, “we can certainly complement any energy and power curriculum under development for the Preparation for Tomorrow Initiative.” Eastern’s program offers training in climbing and tower safety, hydraulics, pneumatics, motor controls, wiring, thermal cameras, vibration analysis, special wind turbine trainers, troubleshooting, some drafting and fiberglass repair.
New River Community and Technical College New River Community and Technical College rolled out a new line service mechanic training program in 2011 just months after being approached by American Electric Power (AEP) about the urgent need for pre-employment training for workers in the field. The program was launched with the cooperation of a consortium of utility and communications companies to address a common challenge: a large percentage of their employees are
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approaching retirement age and there are very few people with the skills required to fill the void. Fortunately, New River had just opened its new Advanced Technology Center (ATC) in Ghent. With substantial support from a consortium of industry partners, they were able to launch the program in just over six months. According to ATC Director Lisa Hatcher, 16 students enrolled in the first class. Of those, several were hired before completing the program. Twenty-three are enrolled in the second class, and of those 21 are on track to complete by August 2012. Hatcher notes that AEP donated time, equipment and supplies that were crucial to the success of the program. In return, AEP and other industry partners are gaining skilled workers who will make a contribution from their first day on the job.
Pierpont Community & Technical College Pierpont Community & Technical College and FirstEnergy Corporation are forging a partnership to train the next generation of workers for the electric utility industry. Together they are launching the Power Systems Institute (PSI), a two-year handson training program that will lead to an associate of applied science degree in electric utility technology. Graduates will qualify for careers as line workers or substation electricians. “This partnership utilizes the capacities of both organizations to provide priority work force development training,” says Pierpont’s president, Dr. Doreen Larson. The program includes technical course work in electrical fundamentals and circuit analysis, along with practical skills training and general education classes. Following the second
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semester, qualified students will complete a compensated 10week 40 hours/week evaluated field experience. “This is an important educational partnership with Pierpont, and FirstEnergy is very grateful for their involvement,” says James Haney, president of West Virginia Operations for FirstEnergy Corp. “The focus of our PSI program is to create a pipeline of well-trained, welleducated and skilled utility workers that will perform their duties safely and productively and help to ensure reliable electric service.”
Southern West Virginia Community and Technical College In the fall of 2009, Southern West Virginia Community and Technical College announced a new associate in applied science degree in mine management to educate individuals who will be employed as front-line and mid-level managers in a demanding coal industry, both surface and underground. A degree in mine management provides graduates a diverse range of opportunities that include a high salary, career progression and the ability to be employed in a global profession. The program encompasses a wide range of activities involving people, technology, equipment, financial resources, community and state and federal regulatory agencies. It is anticipated that holders of this degree will be qualified for various managerial positions within the coal industry, including foremen, superintendents, mine managers, safety managers, land and mineral acquisition, departmental office managers, human resource or labor relations managers, quality control, bid transportation and sales. Combined with sufficient experience in the industry, the degree also prepares students for
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West Virginia Northern Community College West Virginia Northern Community College has positioned itself to be a state leader in providing training for residents to get jobs in the burgeoning oil and gas industry. “We are strongly committed to such training,” Mike Koon, WVNCC’s vice president of the Center for Economic Workforce Development, says. “Our immediate focus has been on shortterm training to move people into the work force quickly.” To that end, Koon explains that Northern offers a one-week training class to prepare entry level deckhands for the gas drilling industry with a focus on RigPass safety certification. So far, the course has trained approximately 45 people at the New Martinsville campus. To fulfill an immediate need in petrochemical construction plans in the region, Northern has also partnered with CB&I and Dominion Transmission, Inc. to offer training for pipefitter helper skills. Ninety students are being taught at the Wheeling and New Martinsville campuses. In June 2012, WVNCC will teach a three-week roustabout course through ShaleNet, a consortium of six community colleges and 11 workforce investment boards that received a
federal Department of Labor grant to provide training in high priority occupations. Through a Community Foundation of the Upper Ohio Valley grant, the college was able to offer a beginning welder class in May at New Martinsville’s campus.
West Virginia University West Virginia University (WVU) is one of only five universities in the country with energy-production programs in mining engineering and petroleum and natural gas engineering. Both programs, along with mining extension services, have WVU poised to compete as one of America’s leading energy institutions. The mining engineering program prepares students for professional positions within mining and other industries worldwide. The department has a 100 percent job placement rate for its graduates. The Department of Mining and Industrial Extension provides coal industry training in the major coal-producing regions of West Virginia, as well as Pennsylvania, Kentucky and Ohio. The Academy for Mine Training and Energy Technologies was created to meet work force development needs, and in 2011 instructors trained nearly 9,000 miners. WVU’s state-of-the-art simulated underground coal mine raises the bar on the quality of a number of the academy’s training programs. With multiple entryways and crosscuts, the facility is designed to mimic an actual mine. The Department of Petroleum and Natural Gas Engineering has seen its enrollment quadruple, thanks to drilling activities in the Marcellus and Utica shale plays. The department is recognized as a world leader in areas related to fluid flow through
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Kenwood two-way radio systems provide quality, range, security, and enhanced functionality for eﬀective communications in the world’s oil, gas, and mining arenas. Professionals in the energy arena have been using HSC's expertise in industrial settings, such as above and below ground mining communications for 25+ years. We provide MSHA approved product sales (for example, wireless mesh communications and tracking systems) and many support services including: equipment repairs and troubleshooting, programming and licensing, system installations, and system expansions. Below are a few radios that our industrial clients depend on.
Upon graduating from West Virginia University, Cross Lanes, WV-native Kimberly Larch landed a job with Northeast Natural Energy, LLC.
porous media, reservoir characterization and stimulation by computational intelligence, natural gas engineering and storage, multi-phasic flow in pipes, drilling and production engineering. Students have access to state-of-the-art technology, including labs specifically designed for shale research.
West Virginia University at Parkersburg West Virginia University at Parkersburg and DuPont Washington Works Parkersburg have partnered to provide students an opportunity to receive chemical operator training while gaining work experience. This is the first agreement formed under the Learn and Earn Program sponsored by the Community and Technical College System of West Virginia. Learn and Earn is part of the Workforce Development Initiative Program created by the West Virginia Legislature in 2011 and is designed to foster and encourage partnerships between industry and community and technical colleges. Students in the program alternate classroom learning at WVU Parkersburg with work rotations at DuPont in three-month increments over a one-year period. The State of West Virginia will reimburse DuPont for half of the students’ wages during the internship period. “Learn and Earn graduates will enter the work force with the realworld knowledge and hands-on experience needed to be successful chemical operators,” says DuPont Plant Manager Karl Boelter. “This is a win-win-win for WVU Parkersburg, DuPont and the students,” says WVU Parkersburg President Dr. Marie Foster Gnage. “We are very pleased that we can offer this unprecedented educational experience for students in our community.” Photography by West Virginia University
KENWOOD TK: 290/ 390 The 90 Series classic premium line was designed with industrial use in mind. Consisting of a heavy-duty design with precise industry required speciﬁcations, the 90 Series oﬀers encryption/ ANI control permits basic to high level voice security, dispatch functions which meet homeland security and conﬁdentiality requirements, emergency call and man-down functions, and more. The 90 Series is MSHA approved for underground mining conditions.
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Abundant, affordable electric energy is paramount to the future of manufacturing in West Virginia, and clean coal technology must continue to be a measured part of our state and national energy policies.
Reaching a Long-Term Balance Energy and Manufacturing
By Joseph Eddy
West Virginia has a rich history in the
production of energy resources such as coal, oil, gas and, more recently, hydroelectric and wind turbine energy. For more than 150 years these resources have helped fuel our state and nation’s electric power generation and chemical, steel, aluminum, polymer, wood, automotive and glass manufacturing industries. Today, manufacturers use one-third of our nation’s total energy output for heating, fuel, processing and raw materials. West Virginia’s energy resources play an ever more important role in framing a national energy policy that includes the security and stability of abundant, affordable energy for manufacturing in West Virginia and the United States.
Coal Resources Today, 96 percent of West Virginia’s electric power generation comes from coal, and West Virginia leads the nation in net interstate electricity exports. We are the second-leading coal producing state and account Joseph Eddy in the Eagle Manufacturing Plant in Wellsburg, WV.
for nearly one-third of U.S. coal production in the east and one-tenth nationwide. Coal continues to provide low cost electricity to West Virginia’s consumers and a competitive advantage for our state’s manufacturing industries. The coal industry provided more than 60,000 jobs and paid $500 million in coal severance taxes in West Virginia in 2011. Nationally, since 2007, coal-fired electric generation has declined from about 50 percent to 40 percent—at a time when overall energy consumption has a 20-year projected growth of 35 percent. Continued attacks by the Environmental ExEdge Protection Agency (EPA) on coal will have West Virginia is costly long-term effects on West Virginia’s ranked sixth in the jobs, economy, tax base and energy costs. share of overall Abundant, affordable electric energy is gross domestic paramount to the future of manufacturing product that comes from chemicals in West Virginia, and clean coal technology and polymers, must continue to be a measured part of our and nearly 25 percent of the state and national energy policies.
Natural Gas Resources
state’s $4.8 billion in international exports are chemicals and polymers.
Over 150 years ago, West Virginia was one of the first areas to commercially produce natural gas. In fact, from 1910 Source: http:// to 1925, West Virginia was the nation’s chemicalswv. number one producer of natural gas. Since com/default.aspx that time, West Virginia manufacturers’ fortunes or failures have been dependent upon having an abundant, affordable supply of natural gas to fuel their plants and/or supply feedstock in their chemical processes. Today, the major consumers of natural gas in the U.S. are electric power generation (35 percent), industrial/manufacturing (30 percent), residential (20 percent) and commercial/vehicle fuel (15 percent). In 2010, West Virginia oil and natural gas companies produced 288 billion cubic feet of natural gas and 1.85 million barrels of oil and paid $71 million in severance taxes and $106 million in property taxes. The industry in West Virginia makes more than 30,000 jobs possible.
in homes and cars, as well as innovative alternative energy technologies that allow energy to be recaptured from the products of chemistry after their original purpose has been served, such as converting plastics into valuable electricity or advanced fuels. For states in the Appalachian Region of the United States, the most exciting development powered by energy and enabled by chemistry is the resurgence of the domestic chemical industry thanks to natural gas from shale formations. Ethane from natural gas is the primary raw material used by American chemical producers, unlike many overseas producers that rely on an oil-based feedstock called naphtha. Because the cost differential between natural gas and oil has been so significant in recent years, the U.S. chemical industry is benefitting from a competitive edge for the first time in at least a decade. This advantage is helping initiate a renaissance throughout the nation’s manufacturing sector, which relies on chemical products as components for countless goods. Numerous chemical companies have announced new investments or possible expansions because of the outlook for reliable, affordable natural gas from shale. With new investments often come other co-located petrochemical investments that could lead to entire new manufacturing complexes. These new facilities bring construction jobs, high-paying manufacturing jobs and new economic activity in the surrounding cities and towns. Meeting the national goals—economic growth and new jobs, innovative industries and businesses that win in the global economy—will require a truly comprehensive approach. As a result, the chemical industry has not only supported the development of natural gas resources but has also emphasized the importance of energy efficiency and energy recovery. By Cal Dooley The chemical industry has long had a deep connection to West Virginia. The business of chemistry has created economic opportunity for thousands of individuals and communities across the region as rich natural resources are transformed from oil and natural gas into the building blocks for thousands of products Americans rely on every day. Even those most familiar with the industry—and the innovation, economic growth and job opportunities it supports—may not realize the chemical industry’s relationship with energy goes far beyond the reliance on energy resources to create chemical products. The business of chemistry is creating solutions that are enabling a strong, secure and more sustainable energy future for the entire nation. Chemistry touches nearly every energy technology: advanced methods to produce oil and gas once considered unrecoverable; renewable energy technologies like solar panels and wind turbines; insulations and lightweight auto parts that help save energy
The natural gas industry’s refined combination of horizontal drilling and multistage hydraulic fracturing has revolutionized development of previously unconventional shale formations. West Virginia’s Marcellus and Utica shales have proven to be prolific producers of high British thermal unit (Btu) natural gas and natural gas liquids when employing these drilling and completion
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The chemistry industry is essential to new energy sources and technologies, like energy recovery from unrecycled plastics that are helping diversify the nation’s energy portfolio and making us more secure. Chemistry is enabling a more sustainable energy future through clean, renewable and efficient energy materials and technologies that reduce energy consumption and energy costs. This industry has the opportunity to help drive the nation’s struggling recovery by leveraging shale gas to increase U.S. investment, spur growth in our supplier industries, support a manufacturing resurgence, create more materials for export and create jobs. The ability to make the most of this valuable resource will depend on two factors: the ability of state lawmakers and regulators to craft wise policies and balanced regulations to support responsible production and the ability of Congress and the president to finally develop a true national energy strategy that prioritizes production from all sources.
techniques. Record high levels of gas production, associated reserve additions and mild weather over the past two years are responsible for lowering gas prices to the current $2/MMBtu range from the $6-8/MMBtu. Energy values tend to be cyclical as supply and demand, extraction costs, fuel-switching, transportation and storage costs fluctuate.
A Manufacturing Renaissance With the addition of significant natural gas liquids reserves and a new critical feedstock cost advantage, the U.S. petrochemical industry is planning a major expansion of petrochemical capacity, reversing a decade-long decline and initializing a revitalization of West Virginia’s manufacturing industry.
West Virginia is sitting on some of the world’s largest deposits of natural gas liquids—ethane, propane and butane— the development of which could be as monumental as the Middle East oil fields. Future investment estimates for the Marcellus and Utica shales run as high as $100 billion on drilling/completions and $100 billion on midstream and downstream assets over the next 10 years. Royal Dutch Shell has announced their interest in constructing an ethane cracker and polyethylene unit in Monaca, PA, validating the business platform for Appalachian Basin cracker investments and leading, hopefully, to additional cracker and downstream investment decisions from the petrochemical industry for West Virginia. According to the American Chemistry Council, a cracker in West Virginia would represent an investment of up to $3.5 billion, generating $7 billion in annual output, creating more than 12,000 jobs with more than $730 million in wages and generating nearly $95 million in state tax revenue and $139 million in federal revenue. A PricewaterhouseCoopers report for the National Association of Manufacturers says low-cost domestic natural gas will save $11 billion per year in U.S. manufacturing costs over the next 10 years and create more than one million new jobs. Low energy prices also bring energy security as long as reliable supply is sustained, reducing our dependence on imported oil and natural gas. The key part of energy security is sustaining a longterm reliable supply, which can be difficult at record low gas prices as producers plan spending cuts on drilling in dry gas areas and limit their focus to the natural gas liquids areas. The current low gas pricing fits into the cyclical nature of energy resources and is apt to change as low-cost natural gas replaces reduced coal generating capacity.
Long-Term Balance A secure energy strategy is one that supports the balanced use of all abundant, affordable resources, natural and renewable. Over-regulation, subsidies and picking supply favorites alter commercial distribution and ultimately over-value and limit supply of the favored energy resource. A balanced energy strategy will help provide security, stability and growth for manufacturers and a longterm stable market for all of our state’s natural resources. Photography by Tracy Toler and Eagle Manufacturing Company
An Ally for Economic Growth Just Beneath the Surface
By Doug Malcolm
Historically, the natural gas industry in West
Virginia has operated below the media radar screen, quietly going about the business of drilling for and producing clean-burning fuel. All of that changed roughly three years ago with the advent of new drilling technologies that have allowed producers to access an abundant amount of natural gas trapped in a formation called the Marcellus Shale. Overnight, the industry was thrust into the media spotlight and began taking shots from detractors on many different levels. It became apparent to those both in the petroleum industry as well as manufacturers and chemical experts that some sort of coordinated response was needed. The industry was poised at the onset of one of the biggest economic opportunities ever experienced in West Virginia, and it found itself letting industry opponents frame the discussion with misconceptions of the industry’s business and outright fear-mongering. The industry’s answer to this challenge was the creation of the Just Beneath the Surface Alliance. The Independent Oil & Gas Association of West Virginia (IOGAWV) joined together with the West Virginia Petroleum Council to create this alliance of industry-supporting partners to provide factual information, debunk false information and give the general public an indepth look into the benefits of the natural gas business. More importantly, industry leaders wanted to demonstrate how natural gas is inextricably tied to West Virginia’s economic well-being through the chemical and manufacturing businesses. To that end, a number of organizations enthusiastically joined in the effort. Building on the belief that there is strength in numbers, the Just Beneath the Surface Alliance is excited to have the full support of IOGAWV, the West Virginia Petroleum Council, the American Petroleum Institute, the West Virginia Manufacturers Association, the Polymer Alliance Zone, the Independent Petroleum Association of America, Energy In Depth, the Chemical Alliance Zone, the Charleston Regional Chamber of Commerce, the Mountaineer Energy Forum and the West Virginia Business Roundtable. Together, all of these organizations are helping spread the message that West Virginia needs natural gas and that its ongoing development must be encouraged. Why are all of these non-petroleum groups joining in this effort? The answer is that the development of our state’s natural gas resources is just the beginning of a multifaceted path to the economic revitalization of West Virginia. Natural gas, as it’s produced from the ground, contains multiple components that have a number of different uses. The most plentiful component is methane. This is the gas that we use to heat our homes, cook our food, provide power for business and industry and even fuel natural gas-powered vehicles. An equally important component is ethane, which can be converted into ethylene in a chemical plant known as a cracker. Ethylene is the major component in the manufacturing of plastics, is the largest-volume produced petrochemical in the world and is used to make thousands of products found in every household and business in every corner of the globe. Unfortunately, West Virginia was not chosen as a site for Shell Chemical’s new cracker plant, but we are hopeful our state will be chosen as the site for the second option. One plant will cost
more than $2 billion to construct and will employ thousands of workers during the construction phase and hundreds during its ongoing operations. This would be a world-class chemical plant and the benefits to West Virginians would be enormous. In addition to the cracker plant itself, downstream facilities would be constructed to produce additional chemicals and eventually consumer products such as furniture, plastic products, cleaners and car parts. Many people have said that the development of the Marcellus Shale could be a game changer for West Virginia. Excitingly, the location of a cracker plant in our state, along with all the resulting downstream jobs, could be just the thing to push West Virginia over the top. It would mean decades of economic development and job growth and would lead to the revitalization of West Virginia’s chemical and manufacturing industries. All of the supporting partners of the Just Beneath the Surface Alliance recognize these opportunities and want to let our state’s citizens and elected officials know about their importance. The alliance is achieving this goal through a combination of efforts. First, it has undertaken a targeted media campaign in the form of TV and print ads. These are appearing around West Virginia but are focused in the northern part of the state where the drilling operations are concentrated. Second, the alliance has organized rallies in Charleston, Morgantown and Clarksburg to focus positive attention on the ExEdge benefits of our state’s gas industry. In the 1940s, the Most importantly, Just Beneath the Surface Kanawha Valley has created a speakers’ bureau through which it became known makes available professionals from the natural as the chemical center of the gas, chemical and manufacturing industries to talk world, and South about the positive impact the natural gas business Charleston was has on West Virginia’s economy. Since beginning nicknamed the in the spring of 2011, the Just Beneath the Surface Chemical City. Alliance has made more than 100 presentations Source: around the state to rotary clubs, chambers of http://www. commerce, city councils, county commissions and wvencyclopedia. org/ various community groups. The audience size for articles/1124 these presentations has ranged from a dozen to more than 250, and these talks have led to spirited discussions and informative (and lengthy) question and answer sessions. These events have proved to be extremely popular and the alliance’s schedule is quickly filling up for the coming months. The bottom line is that this alliance of seemingly unrelated industry groups is spreading an important message to the citizens and elected officials of our state. West Virginia’s continued economic development depends on natural gas—not only on the drilling and production of this resource, but also on the conversion of its components for use in the downstream chemical and manufacturing industries. This is an economic opportunity that we absolutely cannot allow or afford to pass by. Photography by Brian Jarrell and Rick Lee
The Future of Power Generation A Q&A with Charles Patton
By Kensie Hamilton
A tide is constantly changing, and the same is
true for the energy industry in West Virginia. As new regulations in the coal and natural gas sectors continue to evolve, power generation must also make changes to keep pace. As each of us relies on the power
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that is provided to our homes and businesses, it is important to understand the changes taking place in this industry. Charles Patton, the president and COO of Appalachian Power, gives some insight into how Appalachian Power, a subsidiary of American Electric Power (AEP), keeps the power flowing in West Virginia.
WVE: Can you give us a broad overview of the coverage area of Appalachian Power? CP: At Appalachian Power, we serve about a million customers in West Virginia, Virginia and Tennessee. To give you an idea of how much electricity those customers use, we sold 36.5 megawatt hours of electricity in 2010. We’re part of the AEP system, which serves more than 5 million customers in 11 states. In Appalachian Power territory, we operate two coal-fired power plants in Virginia and four in West Virginia. We also operate the Smith Mountain Project, a pumped storage hydro plant in Virginia, and several run-of-theriver hydro plants in Virginia and West Virginia. WVE: How has Appalachian Power evolved to adapt to changes in the industry? CP: You know, we used to be an industry that people thought of as pretty static and predictable. That is no longer the case. The generation part of our business is where most of the cost is—in fact, approximately 70 percent of a customer’s bill goes to generation costs. And that’s the part that’s been changing. Appalachian Power’s generation fleet is 75 percent coal. Until recently, that coal allowed Appalachian Power to be one of the lowest cost providers in the nation. Global competition and the cost of mining have caused a significant increase in coal costs. Our coal costs at Appalachian Power were $720 million in 2007 and have risen to $1.2 billion in 2011. Additionally, we have spent more than $2 billion on the Environmental Protection Agency (EPA) compliance, an amount that exceeded the original cost of all the plants’ generating units that were retrofitted. On the other hand, the development of horizontal drilling and the discovery of trillions of cubic feet of shale gas have ushered in a new era in the electric utility industry. Gas is cheap now and is expected to stay reasonably priced for decades, so we’re beginning to make some changes in our generation mix to take advantage of inexpensive gas. Couple these facts with new rules issued by the EPA that are forcing closure of some of our older plants several years earlier than they otherwise would have shut down, and you have an industry in the midst of a major transformation. WVE: What do you see as the greatest challenge as it pertains to Appalachian Power and the electric utility industry as a whole? CP: Regulation is clearly the biggest driver in our industry. EPA regulations, specifically the Mercury and Air Toxics Standards (MATS) Rule and the Cross-State Air Pollution Rule (CSAPR), will accelerate the closure of our Phillip Sporn, Kanawha River, Clinch River and Glen Lyn plants, a total capacity of 1,735 megawatts. Interestingly, Ohio regulators are also influencing Appalachian Power in a big way right now. The Ohio Public Utilities Commission is moving that state to a competitive generation market. This affects Appalachian Power because we purchase power from several of those Ohio generating units. All this points out the need for a federal energy policy. With an energy policy, we would have clearer direction and could better plan for the future. WVE: Appalachian Power’s customers have witnessed rapidly rising prices for electricity. What has been the driving force behind these rising costs? CP: There are two reasons for the rising costs we’ve seen. First and foremost, the cause has been the rising cost of coal. Coal costs have escalated, mostly due to the increasing worldwide
market and mining regulations. It’s important to point out that fuel costs are passed on to customers dollar for dollar with no profit for the company. Second, the company spent more than $2 billion on mandatory environmental improvements—mainly scrubbers—to meet federal environmental regulations. WVE: How will Appalachian Power evolve in order to continue to offer service at an affordable price? CP: There’s good news for our customers in West Virginia when it comes to future costs. First, our major environmental retrofit costs are behind us. The coal-fired plants that will remain open and that are competitively priced have already installed the necessary environmental controls to meet current and anticipated environmental regulations. The costs of those controls are already in customer rates. Earlier this year we also opened a natural gas-fired combined cycle plant that will help us take advantage of low gas prices and diversify our fuel mix. WVE: Does Appalachian Power have a strategy for transforming any coal-based plants to natural gas? CP: Right now, Clinch River in Carbo, VA, is the only plant we plan to convert from coal to natural gas, and we believe that can be done in the next couple of years. We studied the possibility of conversion at other plants, but this is the one that made sense because there is a natural gas transmission line not far from the plant, making the refueling economically feasible. WVE: How does the EPA and its regulations drive the business strategies of Appalachian Power? CP: At our parent company, AEP, 65 percent of the power we provide comes from coal. Significant shifts in the cost associated with the extraction or consumption of coal have a significant impact on the cost of electricity. For decades, the relative cost of coal to other types of generation was so tilted in coal’s favor that Appalachian was able to maintain rates significantly below national and regional rates for electricity. As the cost of mining coal has increased, partly resulting from the EPA’s permitting process, and as we have invested billions of dollars in environmental compliance, the relative advantage that coal has historically enjoyed has diminished greatly. The result is that smaller, less efficient units will not be retrofitted to comply with new EPA requirements because the costs are not justifiable. WVE: One result of the EPA’s regulations is the closure of several older coal-fired generating units. What regulations are they violating and is there any way to prevent the closure? CP: These plants are in compliance now but will have to close in early 2015 as more stringent air quality standards come into effect to meet the Clean Air Act. The MATS Rule and the CSAPR are the two key regulations that are at issue. We do not question the need for the regulations; however, we would like additional time to close these plants gradually rather than all at once, which will reduce the impact on customers, employees and communities and allow us to ensure the stability of the electric grid. WVE: What will the closure of these plants mean not only for Appalachian Power but for its customers and the economy of the West Virginia towns in which they exist? CP: The closure of these three plants is significant because each is an important part of their communities. Kammer, located in Moundsville, will mean 60 jobs lost in the area; Sporn, in New Haven, will mean 120 jobs and Kanawha River, in Glasgow, will have another 60 jobs lost—a total of 240 jobs lost in the state.
Introductions Charles Patton Charles Patton, president and COO of Appalachian Power, grew up in Nashville, TN. Patton attended Bowdoin College in Brunswick, ME and studied government and sociology with a focus on public policy through semester-long special programs in Boston and Washington, D.C. He also holds a master’s degree from the LBJ School of Public Affairs, a graduate component of The University of Texas. During his life, Patton has been exposed to many knowledgeable people who have helped shape his path and career. “I have had many mentors during different times in my life. In my youth, there were individuals coming out of the 1960s and the Civil Rights Movement who simply encouraged that I dream big, and I had a high school guidance counselor that believed that I could do far more than I could see. Professionally, the relationships were not formal but I learned by observation. The key was being close enough to the action to observe and learn.” Patton got his start in the energy industry in 1985, spending more than 10 years with Houston Lighting & Power before beginning his career with AEP. “Officially, I have been with AEP for almost 16 years—I say officially because I was with Central & South West, a company purchased by AEP, for four of the 16 years.” With his move from Columbus, OH, Patton also introduced his family to West Virginia. “I am married with two children. My wife, Deborah, and I met while I was working in city government in Nashville and we have been married for almost 26 years. My daughter, Danielle, is a class of 2012 graduate of Agnes Scott College in Decatur, GA. My son, David, will be a senior at George Washington High School next year.” While he might be new to West Virginia, he feels right at home here. “I find the people to be exceptional. I love my job, and the employees at Appalachian Power are special. This is an interesting time in the electric utility industry and in the history of this company. The issues are not always enjoyable but they are critical to the future of the company and our customers.”
That means $17 million in lost wages in the state and another $13 million in lost state and local taxes the plants pay. WVE: In addition to the closure of these plants, what other changes are underway that will affect the amount of power available to Appalachian Power customers? CP: There are three major changes that will affect the amount of generating capacity we have available for our customers. First, there are changes proposed to a power pool arrangement that’s been in existence for more than 50 years. While it served us well for decades, in its current form it has outlived its usefulness. Second, the West Virginia Public Service Commission has directed Appalachian Power and sister company Wheeling Power, which serves Ohio and Marshall counties, to merge. Wheeling Power has the same rates as Appalachian Power in West Virginia and follows the same regulations. Wheeling Power requires approximately 500 megawatts to serve its customers. While it brings no generation to the merger, all customers benefit because fixed costs are spread out among a larger customer base. Finally, the Ohio Public Utilities Commission has ordered AEP Ohio to corporately separate its power generation assets from its wires business as part of a transition to a competitive generation market. This creates a unique opportunity for Appalachian to purchase some of those assets at favorable terms. WVE: Can you tell us about the new power-sharing pool currently being proposed and how it can reduce expenses? CP: For decades Appalachian Power customers have used more power than is generated here. To provide enough power for customers, the company purchased power from its sister
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AEP companies in a pool arrangement where the companies share generating capacity across state and company lines. Today, changing environmental and regulatory requirements have made continuation of the pool impractical. A new power-sharing pool is being proposed that will help stabilize Appalachian’s expenses in this area and give us a greater span of control over our generation. WVE: Appalachian Power is adding new generating capacity. How will this be accomplished? CP: There are three major steps to our plan to replace the generation we’re losing because of plant closures and to increase generation capacity. While this plan is subject to regulatory approvals and, therefore, could change, with this plan in place we will have enough generation to meet all current and near-term needs. First, in early 2012, the company added Dresden Plant, a 580-megawatt natural gas combined-cycle plant. Second, two units at the Clinch River Plant will be converted from coal-fired to natural gas-fired units. Third, Appalachian plans to purchase from Ohio Power 80 percent of the capacity of Mitchell Plant, located in Moundsville, and the remaining two-thirds of one unit at the Amos Plant in Winfield, which is the only portion of that plant not already owned by Appalachian. Both of these are coal-fired plants. This plan is a cost-effective solution that will have little or no effect on customer rates. Basically, we will move from being a renter, buying electricity from others, to an owner. WVE: Is there a plan for alternative energy sources like solar- or wind-generated power within Appalachian Power? CP: Right now, we have targets for renewable energy in West Virginia, and we’re meeting those targets. Appalachian has a substantial amount of renewable energy—825 megawatts of hydro and 376 megawatts of wind generation. We’ll consider additional renewable generation only as it becomes more competitive or if we need it to meet requirements. WVE: As an electric utility provider working with coal and natural gas, how do you view the future of coal in West Virginia and in the U.S.? CP: There’s no doubt that shale gas is a game changer for the energy industry. However, coal is going to be a primary fuel source for electric generation for decades to come. For example, right now Appalachian is approximately 74 percent coal-fired generation. In 2015, after we’ve closed several coal-fired plants, we will still be 71 percent coal-fired. The U.S. as a whole uses less coal, and that percentage will gradually fall, but very slowly. The Energy Information Administration reports that power generation is currently about 45 percent coal-fired, and in 2035 that percent is expected to fall to 43 percent. Plus, the market for coal has dramatically changed. It is clearly a worldwide market today, and coal mined in the U.S. is regularly and profitably exported. WVE: What additional steps could be taken in the future to further diversify Appalachian Power’s fuel portfolio while staying in balance with EPA expectations? CP: Of course our newest plant, Dresden, is a gas-fired plant, and we do expect that any additional generation we might build or purchase in the near future would be gas. We are very heavily invested in coal-fired generation, so adding gas is a way to gradually help rebalance our generation fleet. The company is also aggressively pursuing demand side management and energy efficiency as ways to offset or delay the need for new generation.
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GLENVILLE STATE COLLEGE WV VETERANS LEGACY PROJECT Interviewing veterans of all ages, genders, ethnicities, and regions Interview forms available online: www.glenville.edu/veterans
James Cortez “When we arrived on the beaches of Normandy the wounded and dying were crying...crying for their mamas.”
Anne Lee “Vannoy” Jones “I had never been away from home for Christmas. In the Singing Platoon we broadcast over a station in New York City one day, and it was in December sometime. The song we sang was, ‘I’ll Be Home for Christmas,’ and I’m standing there with tears running down my face, (laughs), ‘cause I wasn’t going to be there. I was going to be in Georgia for Christmas.”
Clara Eaton For more information contact: Project Director Dr. Bob Henry Baber Bob.Baber@glenville.edu (304) 462-6382
Project made possible by a grant from the United States Institute of Museum and Library Services
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Navigating the Legal Landmines The energy industry can be a tricky widget with changes in supply and demand, a crazy economy and potential problems all around. As part of the annual energy issue, the crew at the West Virginia Executive magazine wanted to help companies and individuals avoid some of these challenges with advice from a few of West Virginia’s legal gurus.
Employment Law By Eric Kinder and The most expensive problems to fix can Joseph Garcia often be the most inexpensive to avoid. By preparing for several common employment issues facing the energy industry in West Virginia, employers can eliminate simple but costly mistakes and focus instead on increased productivity and the company’s bottom line.
Restrictive Employment Covenants Restrictive employment covenants (covenants-not-to-compete) are effective tools companies can use to maintain an advantage over the competition by retaining the most experienced and talented employees. For example, with respect to the Marcellus Shale, those employees who implement engineering and drilling techniques for a company performing horizontal drilling have important knowledge and experience that may be difficult to find in a particular geographic area. Securing this knowledge to your company—and not your competitors—has real value. The main issue is that restrictive covenants are not favored in the law, so employers must be careful when crafting them. First, the employer must provide the employee with some value (consideration under the law) for agreeing to the limitation. The restrictive covenant cannot be agreed upon after the original contract for employment, unless the employee is provided some type of value because the employee is essentially giving up his or her right to work without limitation. Therefore, it is best
to include such provisions as part of initial negotiations for an employment contract or at-will employment. Any covenant-not-to-compete must also narrowly define the length of time, the geographic area and the scope of activity in which a former employee is restricted from working, though an industry limitation can be substituted for the geographic limitation. Such limitations must be reasonably related to protecting the company’s interests, which will require a factspecific analysis rather than the use of boilerplate language. In general, any restriction over two years will not be enforced. If used correctly, covenants-not-to-compete can protect an employer’s advantages over competing companies and encourage experienced employees to continue working in high-value areas for a company.
Whistleblower and Safety Issues By avoiding quick decisions with respect to discharge, energy producers can prevent unnecessary litigation with respect to federal and state whistleblower laws. Safety issues are always of primary concern for energy producers, but supervisors sometimes react too quickly when making the decision to terminate an employee. Most importantly, even where there is cause for discharge, an employer must be aware of whether an employee has recently made any safety complaints. Under the Federal Mine Health and Safety Act of 1977, the Occupational Health and Safety Act and West Virginia Supreme Court precedent, employers are prohibited from discriminating, discharging or harassing employees for making safety complaints. If an individual’s discharge is proximate in time to a safety complaint that he or she made, even if not directly related, it could provide the basis for a whistleblower lawsuit even if that individual’s conduct warranted discharge. It is important, therefore, that employers take the time to evaluate if an employee ever made a safety complaint to any of his or her supervisors and whether termination is justified.
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Paying Final Wages after Termination Under the West Virginia Wage Payment and Collection Act (WVWPCA), employers must pay employees their final wages, including accrued fringe benefits, within 72 hours of the individual’s termination. Because of the short timeframe, it is easy to violate the WVWPCA without intending to do so if you do not have a specific action plan during the termination process. When the statute is violated, individuals are entitled to liquidated damages for three times the amount of final wages owed plus attorney fees. These penalties are easily avoided if you always remember to calculate final wages as soon as you decide to terminate an individual’s employment and, if at all possible, provide the final check during the exit interview process. By paying attention to these basic rules, employers can avoid the common pitfalls that plague energy producers in West Virginia, and managers and business owners can focus more on production and innovation and less on issues of personnel.
Deliberate Intent By Pamela Tarr
All 50 states have a workers’ compensation system through which an injured employee receives compensation for an on-the-job injury, including the payment of medical expenses and some level of compensation for lost wages. In all 50 states, the workers’ compensation system is a no-fault system, allowing an injured employee to receive benefits even if the injury is 100 percent the employee’s fault. In each state, in exchange for funding this no-fault system, an employer is statutorily immune from lawsuits brought by injured employees unless the employer’s conduct is intentional. However, only in West Virginia have lawsuits by employees against their employers become a cottage industry, effectively increasing the cost of doing business in our state and discouraging out-of-state employers in the energy industry from relocating here. How did this happen and what can be done about it? In 1978 in Mandolidis v. Elkins Industries, the West Virginia Supreme Court of Appeals expanded an employer’s actionable conduct to include “willful, wanton and reckless misconduct” in addition to the already clearly proscribed “specific intent to injure or kill.” Unfortunately, the court failed to delineate the specific elements of “willful, wanton and reckless” misconduct. In 1983, in an effort to eliminate guesswork by state trial courts attempting to interpret Mandolidis, the West Virginia State Legislature amended West Virginia Code § 23-4-2 to provide that injured employees could sue their employers only in cases of “deliberate intention” by proving either a “specific intent to injure or kill” or by proving each element of a five-part standard requiring the existence of a specific unsafe working condition likely to cause serious injury or death, actual knowledge of that condition by the employer, a violation of a safety regulation or industry standard, intentional exposure of the employee to the unsafe condition and proximate cause. The statute directed trial judges to promptly dismiss any deliberate intent case that failed to meet these statutory requirements. Since 1983, the West Virginia State Legislature’s intent to strengthen an employer’s immunity from suit has been consistently thwarted. Deliberate intent has been applied to
occupational disease claims incurred over many years in addition to isolated traumatic injuries. There is no correlation between the percentage of permanent partial disability awarded an injured employee and the statutory requirement that an injury be serious. Consequently, any compensable injury, no matter how slight, can conceivably form the basis for a deliberate intent suit. The potential beneficiaries of a deliberate intent wrongful death action are no longer limited to the employee’s widow, widower, child or dependent in keeping with the statute. Increasingly, deliberate intent cases allege a general failure to provide a safe place to work rather than a violation of a safety regulation specific to the particular work or working condition involved in the injury as required by statute. The next session of the West Virginia State Legislature will be asked to correct these deficiencies by making the following changes: • Require a workers’ compensation claim to be filed and held compensable before a lawsuit can be filed; • Limit civil actions to serious injuries resulting in permanent total disability or death; • Permit only those dependents specifically enumerated in the workers’ compensation statute to pursue deliberate intent wrongful death claims; • Create a pre-certification requirement, similar to that found in the Medical Professional Liability Act, requiring the plaintiff, prior to filing suit, to obtain a certificate of merit from an expert verifying a violation of a written safety regulation or industry standard specific to the work being performed at the time of injury and • Add an additional pre-certification requirement in an occupational disease claim from a physician verifying that an alleged workplace exposure is the actual cause of the occupational disease. Deliberate intent adversely affects every employer and every industry in West Virginia. According to the West Virginia Insurance Commissioner, the adoption of a precertification requirement in medical malpractice cases reduced lawsuits against health care providers by 50 percent. The energy industry would benefit from a similar reduction in the number of deliberate intent claims. Proposed changes in the deliberate intent statute would restore the much-needed balance between the rights of injured workers who receive workers’ compensation benefits regardless of fault and the employers who fund the West Virginia worker’s compensation system. Such legislative changes would attract and maintain a thriving energy industry in West Virginia.
Oil and Gas Leasing By Andrew Graham and Jessica McDonald
The oil and gas lease is not new to West Virginia. Although oil and gas have been produced here for more than 150 years, changes in drilling methods and the development of the Marcellus and Utica shales have put the oil and gas lease in the spotlight. Oil and gas are nearly always produced by developers who have leased the minerals rather than by the mineral owner. Developers obtain these rights either by buying rights to an existing lease and drilling a new well or by obtaining a new
lease. While a lease grants certain property rights, much like a deed, a lease is also a contract. The oil and gas owner (the lessor) grants to the developer (the lessee) the right to explore for and produce oil or gas from a particular tract of land for a specified length of time. In return, the developer bears all costs associated with drilling a well, even if oil or gas is never found. If oil or gas is found and produced, then the developer pays the owner a royalty, which is a set percentage of the income derived from the oil or gas produced under the lease. The earliest leases paid owners one-eighth of the value of the oil together with a flat rate, such as $200 per gas well drilled on the lease, for the gas. Over time, leases usually provided for one-eighth royalty for both oil and gas, although some leases may provide for an even greater royalty. A valid lease clearly identifies the parties involved and the property being leased, which is usually described by acreage as well as by some other identifying information, such as adjacent property owners’ names or tax map and parcel numbers. Leases may apply to all of the oil and gas within a tract of land, or they can be limited to certain depths or formations, which will also be described in the lease. The lease also defines how long the developer can operate on the land. This time period is usually described in two parts: the primary term and the secondary term. The primary term is a specific period of time, e.g., 30 days or five years, in which the developer may drill a well. Basically, if a developer fails to drill a producing well during the primary term, the term expires and the lease terminates. If a producing well is drilled, then the lease enters its secondary term, which allows the lease to continue so long as certain conditions are met, such as “so long as oil and gas is found in paying quantities.” One producing well is enough to keep a lease going indefinitely. Such a lease is “held by production.” Unlike older gas wells that were drilled vertically on a single tract of land, most of a shale gas well is drilled horizontally, often under adjacent leased tracts. This requires shale developers to acquire lease rights in a wide area for each well they plan to drill. As a result, these leases must all contain a pooling or unitization clause that allows the developer to operate the adjacent tracts together as one single drilling unit rather than as separate tracts with separate wells. These provisions are absent from many older leases, so developers must obtain lease modifications before drilling. Unlike many other oil and gas producing states, West Virginia law only allows pooling for Marcellus wells when all affected oil and gas owners agree that their leases can be operated together. West Virginia oil and gas leases commonly allow the lessor to take a certain amount of free gas for wells drilled on the lease for the lessor’s own uses. Leases for shale gas wells usually try to avoid this provision because, unlike older shallow wells, shale gas wells produce gas at such high pressures that connecting a residential line to them is unsafe. Some shale gas leases provide for a payment in lieu of free gas. Although almost all leases contain certain basic provisions, the details vary. Lessors and companies can and do modify or exclude terms to arrive at an agreement that suits both their needs.
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A Look at Legislation By Kensie Hamilton
A battle has been brewing in West Virginia
for years over the regulations and litigation that surround the energy sector. This battle is an important aspect of life in the Mountain State and affects the level of success to which our state can rise. The battle is being fought year-round but increases in velocity during legislative sessions. Now that the West Virginia Legislatureâ€™s 2012 session has come to a close, there is new information that affects the natural gas and coal industries in West Virginia. Energy leaders from each sector have weighed in about these changes and the opportunities that lay ahead.
New State Law Governs Horizontal Drilling By Dave Drennon
One of the most widely
cussed and discussed pieces of legislation in recent memory, the Natural Gas Horizontal Well Control Act, was passed in a special session of the West Virginia Legislature and signed into law by Governor Earl Ray Tomblin this past Decemberâ€”with much fanfare, consternation and outright disappointment. Rarely are all stakeholders unanimously happy with the results of a major piece of legislation and this bill is no different. In this event there seemed to be no declared winner other than the State of West Virginia because as a whole the state needed to present itself as a viable marketplace for the development of the Marcellus Shale and the industries that are attached thereto, in particular the chemical industry. Surface and mineral owners, members of the industry and the various regulatory agencies were each partially pleased and displeased with the final work of the Legislature: a comprehensive bill that addressed most of the hot buttons that have developed as the Marcellus industry has expanded in West Virginia.
How did the State of West Virginia come out of this as the winner if, indeed, all stakeholders are unhappy with various aspects of the bill? The answer lies in the issue of regulatory certainty. For at least a couple of years the Marcellus Shale has been widely recognized as a world-class natural gas resource. Most studies easily place it in the top five known natural gas
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reservoirs, not just in the United States or North America but on the planet. Because the Marcellus Shale is a world-class natural gas resource, it is attracting world-class companies and it requires world-class capital to develop it fully and properly. The Marcellus Shale extends across multiple states, and each of those states has different laws, rules, regulatory bodies and taxes and fees for businesses that operate within their borders. When these companies, many of which are international corporations, are looking to invest in the Marcellus Shale, they need to know the ground rules prior to spending hundreds of millions, if not billions, of dollars in each of the states where the shale play exists. Taxes, fees and compliance with regulatory burdens are all real costs of doing business and each company will evaluate and compare those costs in each of the states before and during their investments. There was a general and common belief that West Virginia in particular needed to get its regulatory house in order in a number of areas before those companies would risk their capital in West Virginia. After a failed attempt to pass legislation in the regular session of the Legislature earlier in 2011, the legislators were able to pull it all together in relatively short order in December. The major points of impact for this wide-ranging act include the following: â€˘ Permit fees are now set at $10,000 for the first horizontal well on a pad and $5,000 for each subsequent well on the same pad. Prior to this, the permit fee for any well was $400.
• There is new required compensation of $2,500 to the surface owner of disturbed land. A one-time payment is described as a reimbursement for future property taxes of this disturbed land. • A $50,000 single well and $250,000 blanket bond is now required, versus the previous $5,000 single and $50,000 blanket requirements.
• Significantly increased well permit application requirements will include: ○ Detailed water management, site construction, well site safety and certified erosion and sedimentation plans; ○ A list of fracture additives to be used and ○ A letter of certification from the Department of Highways (DOH) that the applicant is in compliance with the DOH road use regulations. • New conditions are required for horizontal well permits covering such things as disposal of well cuttings, location reclamation, surface water runoff and the testing of water wells within 1,500 feet. • The application and approval of large water impoundments and fees. • Multiple notice requirements for surface and mineral owners and coal owners or lessees for the public and water source owners. • Various well placement restrictions that include: ○ The center of a well pad must be at least 625 feet from an occupied dwelling or large cattle or poultry barn; ○ No well may be within 250 feet of a water well or spring and
○ Well pads and wells must be at least: - 100 feet from a perennial stream, lake, pond, reservoir or wetland; - 300 feet from a naturally reproducing trout stream and - 1,000 feet from a public water supply intake. ○ Each of the above restrictions can be waived by the Department of Environmental Protection (DEP) under certain circumstances. • Expanded presumption of liability of a gas well operator for contamination or deprivation of water supply located within 1,500 feet of a well site. • Increased casing and cementing standards. Beyond these physical requirements put on the well operators, the act also placed a burden on the DEP to conduct various studies and issue various reports to the public and the governor. The DEP is tasked with the responsibility of promulgating the actual regulations that will prevail over the industry’s day-to-day operations. We are only a few short months into life with the act; only time will tell whether or not it is inadequate, sufficient or overbearing for an industry of this great magnitude and promise.
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An EPA Assault on Appalachian Coal
just as well have been about a host of other actions by the Obama EPA. The EPA has become radicalized and has attempted to gather to itself power The decision announced never envisioned by Congress. It has By Jason on March 23, 2012 by made decisions that are destructive to our Bostic U.S. District Court Judge nation’s economy and to the balance of Amy Berman Jackson to overturn the power between the executive and legislative Environmental Protection Agency’s (EPA) branches of government as well as its veto of the Spruce Mine in Logan County relationship with state governments and is yet another vindication of our contention state regulatory agencies. A primary case that the EPA is engaged in an unlawful in point is the intrusion of the EPA into the war against the Appalachian coal industry. decision-making process of state agencies This war is being waged on many on water quality issues. fronts—air, water and land—all with The primary responsibility for the same goal: the destruction of the coal maintaining water quality standards in a industry in Appalachia. state rests with the state and its regulatory In her decision, Jackson wrote, “The agencies. The EPA does have an oversight EPA’s position is that the 404(c) grants it role, but as long as the state standards meet plenary authority to unilaterally modify or exceed the federal standards, the EPA or revoke a permit that has been duly has no direct authority to intrude upon issued by the Corps. This is a stunning the state’s decision-making authority. power for an agency to arrogate to itself The EPA notes in its guidance documents when there is absolutely no mention of that its role pertaining to water quality it in the statute.” is “To protect human health and aquatic While this statement was specifically life, states, territoriesbenefits, and authorized tribes You didn’t get into business to handle human about the veto of the Spruce Mine permit establish water quality standards regulating resources, payroll or compliance. and the EPA’s constitutional relationship how clean their water bodies should be. with Congress and other agencies, it could The Environmental Protection Agency
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reviews these water quality standards and approves them if they meet the requirements of the Clean Water Act and EPA’s water quality standards regulations.” And yet, the current regime at EPA is attempting to transform the federal Clean Water Act (CWA) Section 404 permitting program of the U.S. Army Corps of Engineers into an ad-hoc water quality standards permit by demanding the assignment of limits for which no federal or state water quality standards exist and assigning penalties in the form of conditions that call for suspension of the permit for excursions of these nonregulated parameters. The EPA is also ignoring the conclusions of the U.S. Fourth Circuit Court of Appeal’s February 2009 decision and its own 2009 joint rulemaking with the Corps regarding mitigation in its comments and demands relative to mining-related CWA Section 404 permits. The EPA’s recent demands with respect to miningrelated mitigation mirror the impossible expectations imposed by since-reversed federal district court decisions. The agency is also ignoring the existence of other environmental programs that carefully evaluate the potential for cumulative impacts from mining operations. Additionally, the EPA is seeking to regulate water quality discharges for which no water quality standards exist under the veil of cumulative impacts. These actions are all part of the agency’s ongoing effort to grab power away from the states.
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As Congressman Nick Rahall, who represents the 3rd District of West Virginia, said during a recent House Committee hearing, “This nation is ill-served by an agency that is so driven by ideology that it cannot even follow the law. It is disconcerting that we are here in this committee, once again, appealing to the Environmental Protection Agency to work with the Congress, our state regulatory agencies and other federal agencies. But it is absurd that, for the sake of the environment, the economy and our national energy needs, we are calling on this agency to simply adhere to the law. “The EPA had an opportunity to help achieve a center point that would provide for both energy development and environmental preservation. But it has utterly failed. Instead, this EPA took an extra-legal approach, choosing to step over the bounds of the law to promote an ideological agenda and, in so doing, to push opposing parties even further from the balance we have all sought for so long.” Rahall also acknowledged the exonerating nature of the court’s decision by saying, “It is not just politicians and not just coal miners and coal executives, now it is the courts who are saying that in its treatment of coal mining in the Appalachian states the EPA has twisted the law, circumvented the Congress and trampled on the right of the people to know what their government is doing.” Jackson’s decision on the Spruce Mine delivers independent confirmation that the EPA’s assault on the Appalachian coal industry demands congressional action. The EPA’s willingness to ignore established boundaries to its authority was confirmed by the Spruce decision and earlier decision from D.C. District Court Judge Reggie Walton. These rulings should serve as more than enough evidence that the U.S. Senate needs to act on HR 2018, also known as the Clean Water Cooperative Federalism Act. HR 2018, co-sponsored by Rahall and supported by West Virginia’s entire House delegation, was passed by the U.S. House of Representatives on July 13, 2011 and awaits action in the U.S. Senate. The legislation would prevent the very abuses of authority by the EPA that has now been confirmed by the courts. Photography by Brian Jarrell and Rick Lee
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During its construction the plant employed more than 2,000 workers, and a total of 10 million man hours went into the overall construction. Today, there are approximately 100 full-time employees at the facility and several hundred workers in the nearby Mepco Mine, which supplies Longview’s fuel.
The Next Generation Power Plant By Ed Becker
The Longview Power Plant
is among the newest, most efficient and technologically advanced coal-fired power plants in the U.S.; it may also be one of the last to be built for the foreseeable future. Longview is equipped with state-ofthe-art technology that meets the most stringent environmental regulations. However, those very regulations, and others being written, may discourage further units from being developed. Located in Maidsville, WV, Longview Power is a 695 megawatt electric power generating facility that was created as a model of both efficiency and environmental performance. The timeline for this particular project spanned more than 15 years from conception to full operation. At the cost of nearly $2 billion, Longview remains one of the largest privately funded development projects in the history of West Virginia. During its construction the plant employed more than 2,000 workers, and a total of 10 million man hours went into the overall construction. Today, there are approximately 100 full-time employees at the facility and several hundred workers in the nearby Mepco Mine, which supplies Longview’s fuel. Jim Laurita, Jr., owner of the Mepco Mine, says that two factors—a competitive energy marketplace and environmental performance—are two of the driving factors
whenever a plant of this size is undertaken. “It was crucial that we develop a plant that was extremely low cost and very efficient in the sense that it takes a lot less energy to generate power,” says Laurita. “And the technology would have to allow us to be extremely efficient as far as emissions compared to the other plants around the region. This plant went through an extensive permitting and review process from the West Virginia Department of Environmental Protection (DEP) and the Environmental Protection Agency (EPA) to meet new standards. Believe me, these new standards are very, very strict compared to the older power plants.” The choice of location for Longview had an obvious cost-savings advantage since it is adjacent to the Mepco fuel yard, thus reducing transportation fuel costs. Most of the coal is carried by conveyor belt directly from the mine to the power plant. After combustion, coal ash is taken directly to a nearby licensed ash disposal facility, which minimizes costs and risks associated with transportation. In addition to being CEO of Mepco, Laurita is also a director of Longview Power. He points out that Longview employs numerous technologies and processes that didn’t exist before or uses systems that have been refined. Longview is classified as an advanced supercritical coal-fired power plant. This means that it employs a boiler system that
allows it to burn at a higher temperature and greater pressure, which in turn makes it more fuel-efficient than the older subcritical plants that form the majority of coal-fired generating facilities in the U.S. “It’s fundamentally a boiler system that has been used over 100 years but it has been refined. Essentially, this technology allows us to convert more of the energy input to energy ExEdge output. In combination with By the time of highly efficient turbines and the Industrial generators, we can achieve Revolution, up to 33 percent greater Euro-American industry efficiency than older plants,” depended almost explains Laurita. “Imagine entirely on water that it’s like the new car you power for energy buy today. It’s still an internal to power their textile factories. combustion engine but now you’re getting more miles per Source: http:// gallon. And what’s coming www.fi.edu/ learn/case-files/ out of the tailpipe is much energy.html cleaner than, say, the ’57 Chevy. We’ve come a long way in terms of producing energy that is lower cost and meets the new environmental standards.” Charlie Huguenard, Longview Power vice president and general manager, breaks it down into quantifiable results. “How many British Thermal Units, Btus, it takes to generate a kilowatt hour of electricity is the measure of efficiency. The fewer the Btus the better you are. At Longview we are around 8700 Btu per kilowatt hour. The average coal fired power plant is at
10,600. This translates into the fact that higher efficiency lowers both operating costs and emissions for the same electrical generation output versus other coal-fired power plants. While Huguenard and Laurita recognize the need to run the plant in a cost-effective manner, they also acknowledge an even greater responsibility to ensure Longview meets the many regulations set forth by the EPA and the West Virginia DEP. “The beauty of this plant is that we can meet more stringent environmental
requirements,” says Huguenard. “For example, there’s the new Mercury and Air Toxics (MATS) Standard that became final in early 2012. The MATS standard imposes stringent new emission limits for mercury, metals and acid gases for coalfired power plants. Stack testing results demonstrate that Longview already meets these stringent new limits.” He cited an example of a specific technology used today that wasn’t used in power plants 30 or 40 years ago. Typically coal-fired plants built decades
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ago used electrostatic precipitators to remove particulates from the air emissions generated by the plant. Today, baghouse systems essentially do the same thing, but with greater efficiency. “In layman’s terms, imagine thousands of vacuum cleaner bags where the whole air flow goes through and you’re literally pulling the particulate matter and even the very fine particles that precipitators can’t capture in that system. The efficiency of a baghouse is better than that of precipitators at most coal-fired plants,” explains Huguenard. Increasingly rigorous environmental standards are forcing most power plant owners to make substantial upgrades or retire the boilers earlier than planned. However, these changes come at a cost— both figuratively and literally—for the coal industry. “Of course there has to be regulatory oversight ensuring that power plants are operating cleanly and efficiently. That’s a given,” Huguenard says. “However, the increased costs must ultimately be passed on to the consumer. And the proposed new standard for carbon dioxide emissions from new coal-fired plants requires technology that is not even commercially available. If passed, this standard would effectively preclude construction of any new coal-fired power plants for the foreseeable future.” That sentiment is echoed by two other leaders who represent the coal industry on both regional and national levels. Jason Hayes, communications director for the American Coal Council, believes the current administration is deliberately stonewalling the coal industry through onerous regulations.” Congress rejected proposed cap and trade legislation, so now the EPA is imposing it through regulation. We in the coal industry have tried to keep a stiff upper lip over the last three and a half years, but now there appears to be a real desire to remove coal from the nation’s energy plan. I personally believe it’s not only a war on coal, but also a war against affordable energy,” explains Hayes. In his opinion, Bill Raney, the West Virginia Coal Association’s president, cites Longview as an example of the potential opportunity for West Virginia to showcase their collective ability to create a stateof-the-art coal-fired power generation facility. Unfortunately, says Raney, the uncertainty from regulations, as well as
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the price of natural gas, has left the building of any new plants on the planning books for now. “These projects have either been put on hold or simply abandoned,” says Raney. “I think—I hope—someone is going to look at the security of the entire nation’s grid and find out that you’ve got to have some very good base load generating capacity that is affordable and reliable. And coal has always fueled that base load.” For a company like Longview it’s necessary to not only satisfy the federal and state requirements for environmental compliance, but it also trickles down to a local level. Environmental organizations also want a voice in the way a power generation plant operates in their area. This relationship can sometimes be contentious; however, Longview has joined an alliance with these groups through a nonprofit organization called the Appalachian Stewards Foundation. The Appalachian Stewards Foundation is developing projects and programs to mitigate the environmental impact on West Virginia and nearby wilderness areas. Longview contributes $500,000 annually to the organization to help fund projects such as planting switch grass on abandoned strip mines to help absorb CO2. “Although there are some differences in views, I’d say overall we have a very good relationship with these organizations,” says Huguenard. “We have regular meetings and use it as an opportunity to work together on projects that will benefit the regional environment.” Photography by Longview Power
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Around the State Energy Overview Compiled by jennifer jett
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Researchers Turn Poultry Litter into Usable Energy Researchers at West Virginia State University (WVSU) are examining the viability of poultry waste as a usable energy source. This is being done by studying the production of methane from waste biomass using a process called anaerobic digestion. “Many agricultural and industrial processes produce waste biomass,” says Dr. David Huber, a research scientist with WVSU’s Agricultural and Environmental Research Station. “While this waste is often seen as a nuisance, it actually has value as an energy source.” Anaerobic digestion (AD) has been used for many years to reduce the environmental impact of high strength organic wastes and to simultaneously recover methane from these wastes. AD is a process that utilizes a diverse group of mostly uncharacterized bacteria to breakdown organic matter under the controlled conditions of an anaerobic bioreactor which is, in terms of appearance, a large oxygen-free tank. The methane, or natural gas, produced from AD can be used to run vehicles or generate electricity. WVSU’s research involves both practical and theoretical aspects of the anaerobic digestion process. The university has a pilot-
scale thermophilic digester that has been developed to treat poultry farm waste since poultry farms are a major component of West Virginia agriculture. Researchers have worked to optimize the operational conditions of the pilot digester in order to make it as efficient as possible and to demonstrate its usefulness to the poultry industry. WVSU is also testing ways to make the AD process more versatile, useful and cost-effective for farmers. This is being done with two approaches. The first is studying co-digestion processes where different types of organic wastes are mixed with the standard poultry litter waste and co-digested with it. This has been tested with other animal farm wastes and organic waste from the ethanol production industry. Second, Huber and others are testing a simpler, cheaper digester design that could be attractive to farmers who are already burdened with the maintenance and costs of farm equipment. The theoretical aspect of this work concerns understanding how the microorganisms in digesters efficiently break down organic matter and convert it into bioenergy. The performance of digesters varies: some are quite efficient while others are inefficient. WVSU hopes to
understand the reasons for these differences by studying the genetic and metabolic diversity of the microorganisms. New methods, in particular genomics technologies, have made it possible to study how complex groups of microbes accomplish the biomass-to-bioenergy conversion and to understand what limits their effectiveness. In addition to the pilot digesters on campus, WVSU is working with colleagues in Mexico to study a series of full-scale digesters in the central cattle farming region of Mexico that range in performance from excellent to poor in order to understand the reasons for the variability. Digester research is being conducted with collaborators from two Mexican universities: Universidad Autonoma Chapingo and Universidad Autonoma de Coahuila.
Nix Awarded Department of Energy Funds for Gas Turbine Research Dr. Andrew Nix, a research assistant professor in mechanical and aerospace engineering at West Virginia University, recently received a grant from the U.S. Department of Energy to conduct an experimental investigation of turbine vane heat transfer for alternative fuels. The project, now in its third and final year, has moved
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into the testing phase in the National Energy Technology Laboratory combustion facilities. The goal of the research is to improve the durability and performance of gas turbine engines in integrated gasification combined cycle power plants (IGCC). IGCC power plants offer a clean-coal alternative to traditional coal power plants as the process offers options to reduce greenhouse gases and produce hydrogen fuels. “The plants produce high hydrogen content synthesis gas from coal in a gasifier and then burn this fuel in a gas turbine,” says Nix. “The gas turbine produces electric power and then lends its hot exhaust gases to produce steam to run a steam power cycle.” Many students are learning about turbine engine durability, a field that Nix says is a hot commodity in the industrial gas turbine and aircraft engine fields. Two graduate students and a post-doctoral researcher will work closely with Nix on this specific research.
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Solar energy panels have been installed at Bluefield State College (BSC) as a result of a $40,000 energy conservation grant from the Thurgood Marshall College Fund/Department of Energy. The award has covered the cost of a research project to promote adopting solar energy to illuminate a primary parking area at the college and to train BSC students in solar panel installation technology. Dr. Tesfaye Belay, a faculty member at Bluefield State College, submitted the grant and was awarded the funding for one year from July 2010 through January 2011. The BSC offices of the Vice President of Financial and Administrative Affairs, the School of Arts and Sciences and the School of Engineering Technology and Computer Science were the major parties engaged to implement the research project. Electrical Engineering Technology Professor Roy Pruett introduced the solar panel-based energy conservation project to his power systems class during the fall 2010 semester. As a result, BSC students Jason Roten, Garry Viars, Bernie Maynard and Daniel Seide participated in class assignments, including a research paper on energy conservation. Additionally, the solar panel locations, type, system and installation set-up were determined through the participation of BSC students, faculty
and administrative staff. Energy generated from the panels will be used to illuminate the campus parking lot adjacent to the Brown-Gilbert Basic Science Building. “The project is also designed to reach out into the community to increase understanding and utilization of solar energy technology, reduce the college’s electricity costs and increase students’ knowledge of the principles of solar energy conservation,” notes Belay. “This grant permits Bluefield State College to illustrate how an energy conservation program can benefit students, administration and the community.”
Marshall University Hosts Geothermal Energy Conference Marshall University’s Center for Business and Economic Research (CBER) and Center for Environmental, Geotechnical and Applied Sciences (CEGAS), in partnership with the West Virginia Division of Energy and the West Virginia Geological and Economic Survey, hosted the first-ever West Virginia Geothermal Energy Conference on May 22, 2012 at the Flatwoods Conference Center in Flatwoods. The conference was intended for energy analysts, researchers of emerging technologies, geologists, systems and energy conversion engineers, utilities representatives, resource extraction professionals, environmental consultants and policymakers. Geothermal energy is generated and stored deep within the earth. Humans have used geothermal energy in the form of hot springs for millions of years—including for bathing by the prehistoric man and for space heating by the ancient Romans. Today, electricity generation is the most common application for the resource. “Geothermal energy is unique in that it can provide continuous power production, something most renewable energy resources can’t,” says CBER Director Christine Risch. “It hasn’t been exploited yet in this region because it is high-cost and high-risk. “This conference laid out the steps involved in evaluating and developing geothermal resources, including potential ways to reduce costs and uncertainty. The conference will help move us a little closer to an actual demonstration of the capability of the resource here in West Virginia.” Dr. Tony Szwilski, CEGAS director, adds, “West Virginia has an extensive past and present in the energy arena, with regional, national and even international
significance. Assessing the potential for geothermal energy in the state is essential, as every domestic energy resource that can meet current and future U.S. energy needs to be evaluated.” The conference agenda included an overview of the state of enhanced geothermal systems research and development relevant to West Virginia. Topics presented included a Southern Methodist University data analysis of oil and gas wells that identified the state’s resource potential; current efforts to refine estimates of the cost of electricity produced from geothermal energy; practical aspects of drilling to depths required to encounter geothermal energy of the heat necessary for efficient use; geologic characteristics of the resource; critical engineering concepts involved with development of geothermal energy and experiences with demonstrating development potential of a similar resource.
CONSOL Operations Earn Top Two West Virginia Safety Awards CONSOL Energy Inc.'s Fola Surface and Robinson Run mines in West Virginia were recognized for their safety performance in 2011, receiving the top two safety awards given to a surface and an underground mine, respectively, through the West Virginia Mountaineer Guardian Awards program. Four additional CONSOL Energy mine operations in West Virginia were also recognized for their outstanding safety efforts and were named recipients of Mountaineer Guardian awards during the 39th annual West Virginia Mining Symposium held in February in Charleston. CONSOL Energy's Fola Surface Mine No. 1 in Clay County, WV, earned the prestigious Bart B. Lay Jr. Milestones of Safety Award, and CONSOL Energy's Robinson Run No. 95 Mine in Marion County, WV, earned the Eustace E. Frederick Milestones of Safety Award. The 2011 safety performance awards are given based on numbers recorded from October 2010 through September 2011. “We are proud that one of our surface operations and one of our underground operations in West Virginia have been recognized with the top two safety awards given through the Mountaineer Guardian Awards program,” says J. Brett Harvey, CONSOL Energy chairman and CEO. “Earning the top recognition in both the surface and the underground categories is a distinct honor. These recognitions, in
addition to the safety awards received by four of our other operations, are a credit to our employees and a reflection of not only CONSOL Energy's commitment to safety, but also of the personal commitment to safety held by each of our employees at these operations.” The Fola Surface Mine won the state's top award for surface mine safety, recognizing it for the best safety performance among West Virginia surface mines in 2011. Fola has around 272 employees and worked safely for 526,535 hours, producing 2,295,266 tons of coal with zero accidents to earn the award. The Robinson Run mine won the state's top award for underground mine safety, recognizing it for the best safety performance among West Virginia underground coal mines in 2011. Robinson Run had some 583 employees and worked safely for 1,353,025 hours, producing 5,499,559 tons of coal with a 1.3 incident rate to earn the award. In addition to the awards received by Fola Surface Mine No. 1 and Robinson Run, three of CONSOL Energy's Mingo County, WV operations, including the MT-41, Peg Fork Surface Mine and the Southern West Virginia Resources Surface Mine No. 1, and one additional operation in Clay County— the Peach Orchard Preparation Plant—were each recognized for their commitment to safety through the awards given annually to qualifying underground and surface mining operations across the State of West Virginia. The MT 41 Mine's 45 employees worked 76,076 hours with zero accidents; Peg Fork Surface Mine's 46 employees worked 90,222 hours with zero accidents; Southern West Virginia Resources No. 1 Surface Mine's 19 employees worked 47,669 hours with zero accidents and Peach Orchard Preparation Plant's 44 employees worked 122,901 hours with zero accidents. Commenting on the achievement at all six operations, Harvey says, “At CONSOL Energy, safety is a value. Priorities and goals change, but values do not and the fact that six of our operations in three different West Virginia counties achieved these safety recognitions is proof that our employees understand they are empowered to do whatever they need to do to work safely every day. We are proud of them and their achievements.” The West Virginia Office of Miners' Health, Safety and Training and the West Virginia Coal Association (Mining and Reclamation Association) established the
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Mountaineer Guardian Safety Awards Program in 1983 as a joint effort to promote safety in the coalfields of West Virginia. The special program gives recognition to mining workplaces where employees have accumulated qualifying amounts of production without experiencing a fatal accident. Mining operations are divided into categories based on number of employees in order to be considered for the awards. Inspectors for the West Virginia Office of Miners' Health, Safety and Training nominate companies who they feel have achieved a balance of production and safety. Selection criteria also includes safety program initiatives by the company; the nominated company's safety record and its violation history.
Spilman Thomas & Battle Addresses Shale Gas Industry Leaders Nearly 400 leaders from the shale gas industry, including energy companies, midstream operators, policymakers and legal professionals, gathered in late March at the Shale Gas Water Management Marcellus Initiative 2012 at the Hilton Garden Inn in Canonsburg, PA. A delegation of attorneys from Spilman Thomas & Battle, PLLC participated in the conference, providing valuable perspectives and insights on legal concerns related to water management in the shale gas plays. “Shale Gas Water Management 2012 is a dynamic forum for oil and gas industry professionals to share thoughts and ideas toward developing viable, progressive strategies focused specifically on waste water management,” says Michael Basile, conference chair and Spilman’s managing member. “This is an opportunity for us to convert discourse into real-world solutions.” The two-day conference, sponsored in part by Spilman, addressed the industry’s push to develop the lowest-cost, highestefficiency water reuse methods, including innovative techniques, technologies and best practices for managing water. Leading operators shared technical and strategic advances being used to cost-effectively source, transport, treat, reuse and dispose of the water critical to shale gas production. Spilman attorneys Allyn Turner, James Elliott, Niall Paul and Michael Connelly led a preconference workshop called “New and Emerging State Laws Governing the Industry” that specifically discussed recent amendments to the Pennsylvania Oil and Gas Act and the recently enacted West
Virginia Natural Gas Horizontal Well Control Act. They also analyzed the litigation landscape for the shale gas industry in Ohio, Pennsylvania and West Virginia.
West Virginia Nets Benefits of FirstEnergy Merger It’s been more than a year since FirstEnergy Corporation’s merger with Allegheny Energy, and West Virginians are noticing several positive changes in addition to the return of the familiar names of their electric utility companies: Mon Power and Potomac Edison. “Since the merger’s closure, we’ve worked diligently to identify and to implement best practices to improve our operations and to integrate our skilled employees to better serve our customers,” says Jim Haney, president of FirstEnergy’s West Virginia Operations, “and we are refining our processes to improve efficiencies throughout the company.” As an example, Haney points to FirstEnergy’s sophisticated storm-restoration process that resulted in repairing downed power lines and getting the lights back on after an October 2011 snowstorm caused widespread damage in the Eastern Panhandle. FirstEnergy can deploy line crews from any of its 10 operating companies to wherever they are needed. “The merger has also provided West Virginians with new opportunities for economic growth and improvements to our communities,” says Haney. “Mon Power and Potomac Edison are now a part of a Fortune 200 company and one of the nation’s largest investor-owned utilities. That brings a great deal of corporate goodwill to West Virginia and offers opportunities for greater financial support.” Haney cited FirstEnergy’s additional $500,000 provided to the Dollar Energy Fund to help struggling families pay their power bills. West Virginians will also benefit from FirstEnergy’s long association with the Harvest for Hunger program and its continued strong financial support of the United Way. In terms of education and employment growth, FirstEnergy recently announced a partnership with Pierpont Community & Technical Institute of Fairmont to initiate its Power System’s Institute (PSI), which combines hands-on training and classroom instruction to graduate the next generation of line workers and substation crews for the electric utility industry.
“Looking ahead, the merger greatly enhances our ability to provide safe, reliable electric power to meet the growing needs of our customers,” says Haney.
CPA Firms Merge to Create Full-Service Firm Charleston-based accounting firm Woomer, Nistendirk & Associates (WNA) has merged with the firm of Danny R. Simms, CPA, resulting in expanded professional services and enhanced offerings to the oil and gas industry. The enhanced services will be of benefit not only to businesses specializing in the region’s expanding oil and gas industry, but also to mineral owners and landowners affected by the lease process. From its Charleston office, the accounting firm has clients doing business in more than half of the United States; consequently, WNA has experience with multi-state tax requirements across the country. “Creating a partnership with Danny Simms was a natural fit for us,” says Bob Nistendirk, firm member. “We’ve known each other for years. The time was right to put the significant talents of both firms together to create a full-service firm with nearly 100 years of combined experience.” WNA is focused not only on providing traditional services timely and accurately, but also on helping clients to identify and solve problems and plan for their business and personal future.
successfully completed transaction related to the Memorandum of Understanding signed by West Virginia and coal-producing Shanxi Province in 2010. Petitto Mine Equipment has been pursuing export opportunities in the China market in cooperation with West Virginia University and the West Virginia Development Office. In 2008, Petitto participated in the West Virginia Pavilion, sponsored by the West Virginia Development Office Export Program, at the China Coal & Energy New Industry Expo in Shanxi Province. China’s Datong Coal Mine Group exhibited at the same expo. Initial introductions of Petitto and Datong Coal Mine Group executives were facilitated by Dr. Qingyun Sun, the Governor's Assistant for China Affairs, associate professor of the extension service at West Virginia University and associate director of the U.S.-China Energy Center at WVU. In 2009 and 2011, the relationship continued to develop as Petitto took park in the West Virginia Pavilion at the China Coal & Mining Expo in Beijing. The companies independently conducted follow-up visits. In 2012, Datong Coal Mine Group purchased a diesel powered Petitto mule for use in underground mines in China.
The equipment is expected to improve the efficiency and safety for Chinese longwall mining. “This agreement may result in additional sales for Petitto Mine Equipment and more jobs for West Virginia,” says Sun. “It may become a highlight of the types of collaboration in mine safety initiated by the signing of the Memorandum of Understanding by the governors of West Virginia and Shanxi Province in 2010. We are happy to support our private sector partners in developing these opportunities.” China is West Virginia's eighth largest export market with 16 percent growth in 2011. The total value of West Virginia exports to China was more than $400 million dollars last year.
Alterra Renewable Energy Increases Solar Energy Production During June 2012, the solar installation at Alterra Renewable Energy is expected to reach the 17 megawatt hour (MWh) mark of lifetime solar energy production, and viewers can see it happen live at https:// enlighten.enphaseenergy.com. Sixteen MWh of solar production is the equivalent of preventing 30 tons of CO2
Mine Equipment Manufacturer Makes First Sale to China Morgantown manufacturer Petitto Mine Equipment has made its first sale to China, valued at $1.8 million. The family-owned firm manufactures the Petitto Mule™ to remove shields from longwall mines. The equipment was purchased by Datong Coal Mine Group of Shanxi Province, China. “With $9 billion in exports, 2011 was a record year for West Virginia,” says Governor Earl Ray Tomblin. “Now 2012 is off to a strong start, thanks to the efforts of Petitto Mine Equipment and similar small- and medium-sized businesses throughout our state. I commend Petitto for its success in expanding its market. I encourage more West Virginia companies to reach new customers around the world and look forward to seeing them continue to grow their businesses here at home.” The sale is thought to be the first
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from entering the atmosphere, or the CO2 emissions from 53 barrels of oil. Over its lifetime, this solar system is expected to easily produce 450 MWh. In addition to monitoring its own solar production, Alterra is currently monitoring the solar output of seven other customers taking advantage of new monitoring technologies. The Renick, WV installation is located at the home of Bob Hoffa, Alterra’s president. An initial 3600-watt solar array was brought online in May 2010, and an additional 4830 watts was added in 2011. The grid-tied system produces enough energy to supply all the home’s electrical needs as well as a winter hydroponic garden. Excess power produced during summer months when the days are longer is stored in the grid until needed in the winter when the solar aperture is reduced. No batteries are required to run the system, making it more efficient and less expensive.
Charleston Attorney Contributes to National Oil and Gas Publication Richard Gottlieb, who leads the natural gas practice at Lewis Glasser Casey & Rollins PLLC, has provided the West Virginia chapter for a new national book called “Oil & Gas Law,” which has been published by the American Association of Professional Landmen. The book is a nationwide comparison of laws on leasing, exploration and production and offers a comprehensive volume on the comparison of 18 states plus federal lands. Gottlieb contributed the comparative chapter on West Virginia’s oil and natural gas laws. The American Association of Professional Landmen (AAPL) is a professional organization that unites approximately 12,000 landmen and land-related persons through professional development and service. AAPL's mission is to promote the highest standards of performance for all land professionals, to advance their stature and to encourage sound stewardship of energy and mineral resources. Gottlieb is widely recognized for his knowledge and experience representing natural gas clients and organizations over the past 30 years. He is listed in Best Lawyers in America’s energy law and oil and natural gas law categories and in West Virginia Super Lawyers’ energy and natural resources and commercial litigation categories. Lewis Glasser is a full-service law firm representing a wide range of clients,
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including natural gas producers, midstream companies, pipelines and utilities. The firm has a long history of providing services involving leasing, mineral rights, regulatory affairs, litigation and commercial matters. Lewis Glasser recently opened an office in Morgantown to meet the growing needs of natural gas clients in Northern West Virginia and Ohio.
Manufacturing Program Announces Awardees Offering the tools and technical assistance to take an entrepreneur’s idea from concept to prototype with the goal of creating jobs for West Virginians, the StartUp West Virginia Manufacturing program announced in March its first class of seven awardees during an event at Marshall University's Robert C. Byrd Institute for Advanced Flexible Manufacturing (RCBI) on the university’s South Charleston campus. West Virginia Department of Commerce Secretary Keith Burdette, along with representatives of RCBI and TechConnect West Virginia—who have partnered to jointly operate the program—made the announcement. Firms selected in this first class are Craft-Totes by Bell in Dunbar; MarTek in Big Chimney; Extreme Endeavors in Philippi; Carbon Fibers in Barboursville; HCS Technologies in Morgantown and Wallace Metal Works and Floor Cam, both in Charleston. “StartUp West Virginia Manufacturing will aid startup ventures and small manufacturers in the use of hightechnology manufacturing tools and processes to create new manufacturing jobs and to commercialize products,” says Burdette. “For those entrepreneurs and startup firms selected to participate, the program will help them find the expertise they need to turn ideas for new products or processes into reality.” Charlotte Weber, director and CEO of RCBI, says, “Under the program, awardees will utilize RCBI’s advanced manufacturing technology center, its experienced staff and its wide range of state-of-the-art equipment. Specifically, we will be able to assist awardees in the concept-to-reality portion through our recently announced Design Works labs, which will help jumpstart the idea, turn it into a prototype and then move it forward to the production phase.”
Anne Barth, executive director of TechConnect West Virginia, says, “This program was created to assist with product development, the most challenging phase of the business development process. Through StartUp West Virginia Manufacturing, we will help entrepreneurs and startup firms create their products and through that, jobs and economic opportunity for West Virginia.” The program is made possible by a grant from the U.S. Economic Development Administration and funding from the State of West Virginia. The StartUp West Virginia Manufacturing program will continue to consider applications on a rolling basis, and both businesses and individual entrepreneurs are encouraged to apply.
NARO Announces Annual Members’ Convention Robert Hart, president of the Appalachian chapter of the National Association of Royalty Owners (NARO), has announced that his chapter will host its annual members' convention at the world-famous Greenbrier Hotel Resort in White Sulphur Springs, WV, on September 24-26, 2012. The conference will feature presentations by national experts on the development of valuable hydrocarbons in the Utica and Marcellus shales of West Virginia, Ohio and Pennsylvania, along with other geologic formations in Kentucky and the Appalachian Basin area. In addition to drawing land and mineral owners from the northeastern region of the United States, attendees will also be coming from other oil and gas producing areas of the country. Continuing education programs will be offered for attorneys and accountants desiring to learn more about issues associated with leasing, drilling, producing and marketing natural gas, crude oil and natural gas liquids. Specialists from the industry and the government will also be speaking about the economic impact and jobs creation in producing states related to the Utica and Marcellus shales. Discussions will include royalty accounting, field operations, the potential for using compressed natural gas in commercial and passenger vehicles and exporting liquified natural gas from the East Coast. Jerry Simmons, NARO executive director, and David Sykes, NARO’s national chairman of the board, will be speaking about NARO’s role in the nation's petroleum industry.
Why Older is Wiser for Y our Business Realizing the Advantages of 50-Plus Workers
By Gaylene Miller
A significant demographic bubble
known as the Baby Boom, which consists of about 76 million Americans born between 1946 and 1964, represents a large part of today’s work force. These boomers are part of the growing population of 50-plus Americans living, working and thriving. By 2016, one-third of the total U.S. work force will be age 50 or older, up from 28 percent in 2007, according to the Bureau of Labor Statistics. A recent AARP study revealed that eight out of 10 boomers want to keep working after retirement. As the percentage of younger workers continues to decline, attracting and retaining mature, experienced employees is becoming increasingly important for employers who seek to fill critical skill shortages and retain their competitive edge in today’s marketplace. Three developing work force trends have emerged during the past decade, converging to have a dramatic impact upon employers: our work force and population is aging; labor shortages have started to occur or are projected for a number of segments of our economy and many workers intend to continue working beyond the traditional retirement age. With more and more boomers moving into retirement, many companies will face a potentially significant loss of experienced talent in key roles. The aging of the work force in today’s global economy presents not only challenges but also opportunities and advantages for employers willing to innovate and adapt. Many companies have already started to implement innovative practices to attract and retain mature workers. Evidence shows, however, that other employers are slow to accommodate and adapt to the changing work force. Negative stereotypes about age are eroding as today’s 50plus population redefines aging and demonstrates that they expect to continue being productive and engaged as they age well into their 70s and beyond. Workers 50-plus are valuable contributors for both West Virginia and the nation’s work force needs. Older workers are an important and largely untapped resource with more to offer businesses and our entire
nation. The recruitment and retention of older workers is not just good business—it’s smart business. Many workers today expect and want to continue working past traditional retirement age for both financial and personal reasons. The older members of West Virginia’s work force are experienced, motivated and highly engaged, all qualities that studies link to a company’s favorable performance. When evaluating on-the-job performance, older workers are often more motivated to exceed expectations on the job than their younger counterparts. They are also among the most loyal employees, engaging and contributing to a company’s success in the form of extra time, dedication and energy. As business leaders evaluate their next steps in attracting and retaining the next generation workers, managers and leaders, an employer’s commitment to structuring and offering the right mix of rewards is critical. Through innovative growth and development opportunities, bridged employment programs for retirement eligible employees, targeted recruitment of retirees and unique benefits packages structured to meet the needs of older workers, more and more West Virginia employers understand and value the important contributions of older workers. To retain and recruit the best workers, employers must pay close attention to work environment and cultural factors that contribute to a positive working experience for a multigenerational work force. Many Mountain State employers are developing exemplary policies that understand and value the important contributions of 50-plus workers, creating a template for how to attract and retain top talent in today’s multigenerational work force. For many businesses, the key to meeting tomorrow’s work force needs will depend more on their ability to rebuild the talent pipeline from the ground up. By understanding the changing demographics of the work force and viewing older workers as a solution to meeting work force needs, business leaders in the Mountain State and across the nation will be better positioned to compete in the global marketplace today and in the future.
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Beyond Intelligence and Experience Rethinking Leadership Effectiveness
Ninety percent of the difference between outstanding and average leaders is linked to emotional intelligence.
By Anthony Marchese, Ph.D. and Douglas Walters, ABD
What is it that
differentiates a good leader from one who is clearly exceptional? Why do some executives seem to be more adept at leading complex organizations in a volatile market while others struggle to maintain their composure and their position? As organizational leadership and development specialists, we have invested thousands of hours for the past several years working closely with corporate, education and nonprofit executives across the nation and world. The chief emphasis of our work has been to help them assess the extent to which their leadership positively impacts their organization and to provide an accurate assessment of the overall health of their organization through an analysis of culture, systems, employee engagement, communication and adaptability. In many cases, the health of the organization in each of these areas was directly connected with the effectiveness of leaders at the executive level. In cases where leaders were not achieving their desired goals, the cause was often not attributable to an insufficient grasp of technical knowledge or lack of familiarity with their industry. Rather, attentiveness to the development of softer skills was neglected. Our research reveals that despite an aversion that some possess toward the exploration and development of personal and social competencies, the value of the effort to better understand who we are and how we relate to others is wholly worthwhile. In his book, “Working with Emotional Intelligence,” author Daniel Goleman explains that in a study involving 15 global businesses, it was determined that 90 percent of the difference between average and exceptional leaders was due to emotional competencies. Goleman cited a study analyzing 181 positions from 121 worldwide
organizations. The findings revealed that 67 percent of the abilities considered to be most indicative of effective job performance were emotional competencies. The Weatherhead School of Management at Case Western Reserve University seems unapologetic about the importance of emotional intelligence to effective leadership. A 2005 presentation revealed the following: • Emotional intelligence (EI) is the differentiating factor in success; • Ninety percent of the difference between outstanding and average leaders is linked to emotional intelligence; • Emotional intelligence is two times as important as intelligence quotient (IQ) and technical expertise combined and • Emotional intelligence is four times as ExEdge important as IQ for overall success. According to Drs. Travis Bradberry The greatest spurt in American and Jean Greaves, the authors of IQ testing came “Emotional Intelligence 2.0,” emotional in 1917 when intelligence is your “ability to recognize entering World and understand emotions in yourself War I required sorting large and others, and your ability to use this numbers of awareness to manage your behavior and draftees into relationships.” Unlike the IQ, which is various Army primarily fixed, emotional intelligence positions. can be drastically increased through Source: concentrated effort. A 2003, Harvard http://www. Business Review strongly challenged aceintelligence. com/short_ business leaders to understand the history_of_ explicit relationship of EI to success in iq.php the workplace. “In hard times, the soft stuff often goes away. But emotional intelligence, it turns out, isn’t so soft. If emotional obliviousness jeopardizes your ability to perform, fend off aggressors or be compassionate in a crisis, no amount of attention
to the bottom line will protect your career. Emotional intelligence isn’t a luxury you can dispense with in tough times. It’s a basic tool that, deployed with finesse, is the key to professional success.” Emotional Intelligence consists of two primary competencies— personal and social—organized into four clusters:
Emotional Intelligence Personal Competencies
Personal Competencies Self-awareness is our ability to determine what makes us tick. Why do particular situations/people provoke us and why do we respond the way we do? To what extent might our past injuries cause us, by default, to respond in a particular way? Our kinetic lifestyles diminish the likelihood that we will automatically reserve time each day to meaningfully reflect upon the day’s events and how/why we responded as we did. Without question, an insufficient understanding of the complexity of the self and the extent to which one’s personal baggage may infiltrate the workplace and cause harm may be the leading cause of leadership failure. Every human being is comprised of experiences, both
positive and painful, that shape our identity and our behavior. It is paramount that leaders do whatever is necessary to delve deeply into the self, no matter how difficult, to confront those individuals and experiences that may have caused harm at some point in their lives. In order to minimize casualties within organizations, leaders must not be remiss in allocating time each week to remove themselves from the deafening sounds of the workplace and be alone with their thoughts. Focused journaling is an incredibly worthwhile exercise to explore the self and be better equipped to understand the trigger events that drive emotional reactions to specific people and situations. Self-management is our ability to maintain control over our emotions and impulses as we focus on our goals. Even when emotions threaten to take us off course, we remain disciplined and focused. Those who possess a high level of self-management are less likely to freely vent their negative emotions, consuming fears and extreme reservations with various individuals in the organization. An inability to manage negative emotions can cripple organizational morale and commitment. Every leader has probably shared too much with the wrong people at some point. In our work as consultants, we have encountered many mid-level leaders who found fault with the decisions of the CEO or CFO. Rather than seeking a healthy approach to handling their frustrations, they immediately begin engaging in emotionally-charged dialogue with subordinates. The consequences of these conversations could be felt almost immediately as an aggressive strain of dissatisfaction spread through the ranks, crippling organizational commitment and resulting in diminished performance.
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Social Competencies Social awareness is our ability to empathize with others by observing and understanding non-verbal cues as well as actively listening to what others are saying. Those with a strong social awareness are able to place themselves in another’s shoes while communicating understanding of the other person. This attunement to the feelings of others is further reinforced by emanating positive emotions that communicate connectedness and optimism. Goleman writes, “By being attuned to how others feel in the moment, a leader can say and do what’s appropriate...” Scholars suggest that we have entered a post-heroic era of leadership in which many organizations are moving away from top-down, hierarchical organizational models that feature executive decision-making from top-floor penthouses. Rather, more distributed or dialogic approaches to leading are increasing in favorability as they encourage collective ownership of the destiny of the organization that emphasizes the critical role of followers. This collective endeavor can only occur when leaders position themselves as authentically interested in their followers and willing to share in the responsibility of problem-solving and strategic planning. Relationship management is the competency in which selfawareness, self-management and social awareness coalesce as the leader harnesses his or her awareness of their emotions and those of others toward the realization of shared goals. This is akin to classic leadership theories where skills such as leading others and working with others are essential. This is especially important during times of increased volatility in the marketplace when people wish to feel as though they can
achieve some measure of control. Those who are deficient in this area may be extremely hesitant to relinquish control or to share the spotlight with others. It is important for leaders to carefully assess whether they are consistently seized by the compulsion to be perceived as the leader. This insecurity, in many cases, invokes crippling consequences upon the capacity of the organization and renders its members powerless.
Emotional Intelligence in the Workplace Emotional Intelligence offers executives an exciting new paradigm for developing themselves and others. The volatility of the marketplace and its crippling impact on morale requires that leaders seek resources to ensure that they are cultivating cultures that encourage critical self-analysis, healthy restraint, an ability to empathize with others and the skills to build dynamic teams. EI works best when embedded as a tool for continuous improvement for employees at all levels within the organization. A common understanding of EI terminology establishes an important mechanism to frame their experiences. EI can be introduced as early as the first day of employment through the administration of a brief online assessment tool and can remain an integral part of development initiatives throughout the year. One-on-one executive coaching is recommended for leaders. Emotional intelligence offers a provocative picture of one’s strengths and vulnerabilities and, when used effectively, can make all the difference between a leader who is merely good versus one who is exceptional.
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West Virginia’s Land. West Virginia’s People. West Virginia’s Workforce: Trained. Invested. Available. Everyone knows we builds roads, schools and power plants, but did you know we also build pipelines, processing facilities and compressor stations for the natural gas industry? Our workers have the knowledge, skills and experience it takes to do the job— and do it best! Given the chance, we excel.
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Perhaps Danish wind power is so technologically advanced because they have been at it for such a long time, evidenced by the aged windmills dotting the landscape.
Denmark The Happiest Nation in the World
By Dave Thompson
In October 2011, a small delegation
comprised of community and technical college members of the Alliance for Sustainability and the Trans-Atlantic Technology & Training Alliance (TA3) was invited to Denmark to learn how Danish schools and construction industries integrate energy and resource sustainability and conservation into
their practices. As a professor in energy assessment and management technology at West Virginia University Parkersburg, I was pleased to represent my institution on this excursion. Having a special interest in alternative energy sources, I was thrilled to have the chance to explore a country that relies so heavily on sustainability and alternative energies.
A Green Way of Life One of the first things you notice as youâ€™re flying into Copenhagen Airport is the field of wind turbines situated off the Danish coast. The harnessing of wind power became even more evident as we traversed the countryside by rail from Copenhagen to SĂ¸nderborg, Horsens and surrounding cities. Perhaps Danish wind power is so technologically advanced because they have been at it for such a long time, evidenced by the aged windmills dotting the landscape. For me, perhaps the most unforgettable aspect of the visit was the difference between U.S. and Danish philosophy, politics and practices with regards to energy production and consumption. When the energy crisis of the 1970s hit, the U.S. strategy to reduce oil dependence came from designing and constructing smaller cars and using less fuel oil. By contrast, Denmark addressed the situation with further development of alternative energy sources, improved efficiency and alternative sources of transportation, the effects of which can still be seen today. For example, bicycles were everywhere. The morning commute was a flurry of glistening spokes, clattering pedals and cautionary chimes as business men and women headed to work. Mothers were seen with their specially designed pedal-driven baby carriages and child carriers among the delivery and service personnel making their calls. Runners, joggers and strollers made their way through the towns and cities for shopping, appointments and visiting friends and relatives. If a longer journey is required, the extensive and modern rail systems afford safe, inexpensive and energy-efficient transportation across the country or even to other nearby European countries. SOFTBALL FIELD
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For example, bicycles were everywhere. The morning commute was a flurry of glistening spokes, clattering pedals and cautionary chimes as business men and women headed to work.
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As with the windmills portraying historic resourceful practices, sod roofs adorn the countryside, exemplifying the Danesâ€™ philosophies of conservation and creativity.
While the Danes are quite fitness conscious, the choice for traveling by foot or bicycle is not just about fitness—it’s a choice that goes back to Denmark’s strict transportation policies that discourage the purchase and use of personal automobiles. For instance, the Danish government places a stout registration fee on all new automobiles. While in the U.S. we may expect to buy a $20,000 automobile and then pay an additional 5 to 7 percent for taxes and registration, a 180 percent registration fee appends to that same $20,000 car in Denmark, bringing the total to a whopping $36,000. Combined with gasoline prices nearing $10 per gallon, a bicycle and a pair of walking shoes seem an inviting alternative. After a short stay in Copenhagen, we traveled by train to Sønderborg, the beautiful harbor town that serves as the home of the Sønderborg Castle, which was constructed by Valdemar the Great in 1158. Now used as a museum, the castle was once used for protection from attacks from the Wends. During our stay in Sønderborg, we stayed at a lovely bed and breakfast where the smell of freshly baked breads met our morning descent down the stairway. A typical Danish breakfast consists of breads, grains, yogurt, boiled eggs, cheese, meat and, much to my delight, prawns. It’s important to note that having a meal included with your stay there is a luxury. Dining out in Denmark is very expensive and is generally reserved for special occasions or people of greater means.
Exploring Denmark’s Education System One of the primary purposes of our visit was to study the Danish educational systems. We learned that Danes begin teaching English, which is spoken nearly by everyone, in the second grade. Sustainability practices are introduced in kindergarten and integrated into curriculum at primary and secondary education levels, showing the importance the country puts on education in sustainability and alternative energy. Education, from preschool through college, is free to citizens of Denmark, which is one of the reasons—in addition to free health care— that Danes do not complain about their 50 percent income tax. Additionally, students are paid to attend college. In Danish trades education, students follow a sandwich model of learning, alternating anywhere from a month to a year between classroom learning and on-the-job work with an employer. Many schools own and operate their own companies where students design, manufacture and sell products such as clothing, jewelry, furniture and small utility buildings. This model provides a reallife, hands-on training opportunity for students in a business environment while simultaneously allowing the students to generate income and learn the skills for workplace success.
Energy Sustainability at Home In order to explore Denmark’s sustainability practices and green construction, our group visited a solar farm, a geothermal facility, a biomass generation plant, a green construction trade show, a green-roof apartment building and a sustainability architectural/construction firm. After observing their practices, it became clear to me that while the U.S. is beginning to adopt some of the same practices, especially in the Pacific Northwest, the Danes have a considerable headstart. In the great political thrust for oil independence and sustainability, Sønderborg models a program known as ProjectZero. The vision of the project is that by 2029 all new homes built will possess a
zero carbon footprint or it cannot be occupied. Great strides in energy efficiency and insulation design and construction have already led to homes producing more energy from solar collectors and/or wind generators than is being consumed (a zero-plus home). This excess energy is sold to the utility companies and placed back into the grid for use by others. Much of the heat in Danish homes is from radiators. Hot water comes from utility companies and the push is to use fuels other than fossil fuels to heat the water. To this end, large areas of solar collectors are situated in strategic areas of the countryside. These solar collectors do not convert sunlight to electricity as solar photovoltaic cells do but rather contain piping filled with water. The sun warms the water, much as you’ve experienced after leaving a garden hose lying in the sun, and the heat is transferred to water pumped into Danish homes. These solar thermal systems are low maintenance with few moving parts and are self-cleaning with seasonal rainfall. Sheep are often used to graze between the panels to keep grass and weeds at bay. In addition to solar thermal facilities, heat is also collected at geothermal installations. Here water is piped into naturally heated reservoirs some 12 kilometers deep within the earth and returned upward to be transferred to the utility company. Danes also burn their garbage for heat. Garbage is collected and burned to generate power at the various biomass generation stations in Denmark. To facilitate the combustion, waste wood such as tree trunks and tops, scraps and slabs from the timber and lumber industries is chipped and added to the garbage to create the steam needed to drive turbine-driven 60 megawatt electric generators. To aid in waste water management and thermal insulation, green rooftops are becoming more widely used. As with the windmills portraying historic resourceful practices, sod roofs adorn the countryside, exemplifying the Danes’ philosophies of conservation and creativity.
Memorable Moments It was not all work and no play while abroad. One night, while we were in Copenhagen, our group visited The Old English Pub, and although the name may seem cliché, it was actually quite the collection of authentic English interiors and antiques, including the 200-year-old Brunswick main bar. At one time, Al Capone bought this bar from its former English owners and placed it in his Chicago nightclub. The bar now sits in this stained glass windowed, gas-lit establishment where visitors taste some of Denmark’s native brews. The icing on the cake for our last night in Denmark was the annual Night of Culture in Copenhagen. On this night, some 300 museums, galleries, churches, political establishments and exhibitions open their doors to the public, where, in many cases, visitors are not permitted. A pass will gain you free admission to all events and exhibits as well as free rides on the buses and trains throughout the city. From the Little Mermaid statue commemorating Danish author Hans Christian Andersen to the brightly painted apartments of Sønderborg, the time and travel spent in Denmark provided me a glimpse of the artistic beauty displayed in sculpture, architecture and design, the creativity in the quest for oil independence and resource conservation and the attitudes and philosophies of the Danish government and people that lead to creating the happiest nation in the world.
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Cracking Open the Chemical Industry The major achievement at the plant was the development of a gas-fired refractory furnace that could be used to crack hydrocarbons in natural gas.
By Bryan Ward
With the economic promise of
Marcellus Shale gas in West Virginia, industry leaders, state business development officials and eager investors have turned their focus towards development of downstream industries that use natural gas not only as a source of fuel but also for the development of new products in the chemical industry. While using natural gas as fuel is relatively straightforward, using it in the chemical industry requires a process in which hydrocarbon chains that make up the gas are broken or cracked to produce ethylene, propylene, butane and acetylene, which are collectively known as olefins. Lately, there has been a great deal of talk about the building of a large scale cracker plant in West Virginia in the hope of further developing the petrochemical industry in the state. Few people know, however, that the petrochemical industry was created, developed and launched at a small plant along the Elk River right here in Clendenin,
WV. The large scale process of cracking was not only developed at the site, but the plant’s success gave rise to one of the largest chemical companies in the world—Union Carbide. Today, petrochemicals—chemicals produced from petroleum or natural gas—are commonplace, but prior to 1920 this was not the case. Chemicals produced before 1920 were produced using acetylene until some chemists realized that ethylene would be better suited to produce a larger range of chemicals. Although the chemistry of ethylene was known prior to World War I, the chief source of it was derived by the dehydration of ethanol, which was expensive and did not produce large quantities. Efforts ExEdge were made during the war to develop the process, but following the armistice The Marcellus Shale, found in many of those investigations were Pennsylvania, tabled. It was the efforts of a 29-year- New York, old chemist, Dr. George Curme, Jr., at Ohio and West the Mellon Institute that revolutionized Virginia, is on pace to be the the production of ethylene through second largest the cracking process and launched the U.S. gas shale. petrochemical industry.
Research and Development
Source: http://www. marcellusshales. com/
Early in the 20th century companies did not have independent research wings to develop new products and processes. In 1913, brothers Andrew and Robert Mellon launched the Mellon Institute of Industrial Research in Pittsburgh to address that need through company-sponsored fellowships. In 1917, three of these sponsored fellowships were combined. The senior fellow of the project was Curme, and the newly conceived fellowship charged researchers with the task of finding uses for ethylene, which was created during the production of acetylene by hydrocarbon cracking. By the end of 1918, Union Carbide officials decided that there was need of a thorough review A view of Union Carbide’s Clendenin plant in 1921.
of the fellowship. In response, Curme and his associates provided company officials with projections. Edgar Price, a vice president of the company, pushed for the continuation of the research with a shift in emphasis from acetylene to ethylene derivatives for commercial and defense purposes. Work continued at the Mellon Institute in Pittsburgh and in Buffalo, NY at Linde Air Products, which became part of Union Carbide in the 1917 consolidation. In January 1920, the first ethylene was produced from the plant, and further experimentation showed that it could be compressed without exploding. While progress was being made, a fire destroyed the Buffalo plant. Company officials decided that the research should continue at a new factory site.
The large scale process of cracking was not only developed at the site, but the plantâ€™s success gave rise to one of the largest chemical companies in the worldâ€” Union Carbide.
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Clendenin, a town 20 miles north of Charleston and located on the Elk River, was chosen for the new factory site. Officials were drawn to the area because of the Clendenin Gasoline Company, which was producing gasoline from natural gas through an absorption process. To profit from the byproducts of the process, they sold stripped-off methane to the United Fuel Gas Company, a local utility. The other volatile gases in the gasoline, namely ethane, propane and butane, were allowed to weather off into the atmosphere in open vats. The volatile gasses that were escaping into the air were the same gases that were needed to manufacture ethylene and propylene through the cracking process. Carbide and Carbon Chemicals Corporation was formed and the new subsidiary purchased the plant and land nearby. When construction began in Clendenin in 1920, many of the workers brought in from Pittsburgh and New York were put up in extra rooms in private homes nearby. The railroad ran by the plant and through Clendenin, and two passenger trains a day made the trip between Charleston and Clendenin. Each trip was torturous as the train wound its way along the Elk River, making stops at every station along the line. Using the roads to get to Charleston was equally as challenging as many of them were only passable in the driest times of the year. Supplies and equipment had to be brought in by train, but the isolation helped to focus the young men, mostly in
their 30s, on the work at hand. By 1921, construction was completed, and the real work began as the men who gathered at Clendenin tried to make their lab work a viable commercial enterprise.
The First Cracker The Clendenin plant was not established to be a full scale manufacturing facility, but was instead to be a pilot plant intended to develop manufacturing process for ethylene and ethylene derivatives. The major achievement at the plant was the development of a gas-fired refractory furnace that could be used to crack hydrocarbons in natural gas. The process had been successful in the lab, but to be profitable the process had to be accomplished on a larger scale. The first ethane cracking furnace was fired at Clendenin in February 1921. The furnace burned natural gas that fired a circular configuration of copper-lined iron tubes. Butane and propane were cracked at a flow rate of 1,200 cubic feet per hour. After several configurations of the furnace, which included a switch from the copperlined tubes to longer chromium-iron pipes coupled with additional changes in the reactor configuration, ethylene production at the plant increased to a cracked gas rate of 15,000 cubic feet per hour. The advances proved that the furnace could provide the quantity of ethylene necessary to make the petrochemical industry successful. In an effort to separate the ethane-propanebutane that was part of the natural gasoline process, stabilizer columns were developed. The columns were revolutionary in natural gasoline processing, moving the company to try to patent the process. When word of the columns spread, gasoline companies across the country quickly adopted the technology and the patents were eventually denied. Fortunately for the company, one of the gases that was separated was propane. Propane from the plant was initially planned as feedstock for the furnace. Efforts to develop a market for many of the new chemicals proved to be more difficult than expected, so bottled propane gas, marketed as Pyrofax, was sold to consumers as a source of gas for those who werenâ€™t connected to gas utilities. Sales of Pyrofax were successful and provided the bulk of the income for the subsidiary during its earliest years.
Marketable Chemical Production The main goal of the plant was still to develop ethylene products. The first large scale synthetic chemical product manufactured at Clendenin was the solvent Cellosolve. Cellosolve was used in the lacquer industry, mostly for automobile paints. With the success of Cellosolve, the plant at Clendenin finally proved that there was a market for products developed there and that could be produced at a large scale. Soon other products from the plant made their way to the marketplace. Ethylene glycol was produced that was initially used as a low temperature solvent for dynamite. Later, it was used as an anti-freeze for automobiles and marketed under the widely recognized trade name of Prestone. Other ethylene-related chemicals produced at the plant included a ripening agent for fresh fruits. Ethylene dichloride produced at the plant was used as a major dry cleaning fluid. Later dichloroethyl, marketed as Chlorex, was a solvent used for refining lubricating oils.
Relocating an Industry As the market for chemicals produced in Clendenin expanded, leaders of the company began to look toward the future. In 1923, a business study was commissioned to examine the costs of building new facilities in the Charleston
area. The company began to look for property, and the idle Rollins Chemical Company in South Charleston was leased. Early in 1924 construction crews began work at the site. By 1925, cracking was halted at Clendenin and moved to South Charleston where three dual-core furnaces were put into operation. In the decade that followed, more of the processes and chemicals that were developed at the Clendenin plant were moved to South Charleston and carried out at a dramatically larger scale. Many of the chemists that worked in Clendenin, the fathers of the petrochemical industry, moved to South Charleston and carried out their research, developing an astounding number of new chemical products. Curme, whose research gave birth to the industry, became the vice president of research and later a director on the board of the Union Carbide Corporation. West Virginia leaders today are working diligently to build, or attract, a monumentally larger cracker plantâ€”a plant with the potential to replicate the success of that group of chemists that began work in a small plant along the Elk River in Clendenin in the 1920s. ď Ž Photography by Kim Johnson
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Discovering Our Past
Remembering the Civil War By O. James Lighthizer
As America marks the 150th anniversary
of the Civil War, a pivotal turning point in history that has captivated the imagination of generations with its dramatic narrative, thousands of people are seeking out ways to participate in the commemoration. While outstanding books or documentaries can convey a tremendous amount of information, some experiences simply cannot be recreated without a visit to a historic site. Although some major battlefields are virtually synonymous with Civil War history, there are many more sites that can give visitors a taste of the past. By linking more than 600 sites in 31 states, the District of Columbia and three international destinations, the Civil War Discovery Trail teaches the story of the Civil War and its enduring impact on the America we know today. Among the locations included are battlefields, historic homes, Underground Railroad stations, cemeteries and parks.
The trail aims to bring history to life by exposing visitors not only to military history, but also to the political, social and human components of the war. While individual sites are independently owned and operated, the discovery trail is overseen and administered by The Civil War Trust, a nonprofit battlefield preservation organization that has permanently protected more than 32,000 acres at 110 sites in 20 states. Born out of the conflict itself, perhaps no state has a deeper connection to the Civil War than West Virginia. For the next three years, as we remember the bravery and sacrifice exhibited by those who lived through the Civil War era, consider visiting the 15 Mountain State sites on the Civil War Discovery Trail. Visit www.civilwardiscoverytrail.org for more information and to plan your journey. Photography by The Civil War Trust
Belle Boyd House and Civil War Museum of the Lower Shenandoah, Martinsburg The Belle Boyd House is named for the West Virginia debutante who, after witnessing Union troops curse at her mother and replace the Confederate flag with a Union flag on the porch of her family’s house, shot a federal soldier. Ultimately, Boyd became one of the most famous Confederate spies, twiceimprisoned for her exploits. The Civil War Museum of the Lower Shenandoah is also incorporated into the house museum.
Bulltown Historic Area, Burnsville The Bulltown Historic Area includes the site of the skirmish known as the Battle of Bulltown. The engagement occurred when Col. William “Mudwall” Jackson, Stonewall’s lesserknown cousin, attempted a measure to cut off Union communication lines between Northern West Virginia and the Kanawha Valley in August 1863. In addition to the Union fortification, the area includes a Confederate burial site, intact sections of the turnpike and the Cunningham House, which was used to shelter Confederate supporters.
Camp Allegheny Battlefield, Elkins Confederate forces established Camp Allegheny in the summer of 1861 in order to control the Staunton-Parkersburg Turnpike. Although Confederate Gen. Edward Johnson won a victory over Union troops under Gen. R.H. Milroy in December, the harsh winter climate, coupled with the difficulty of supplying a camp 4,400 feet above sea level, led him to abandon the site the following spring. The battlefield is within Monongahela National Forest.
Carnifex Ferry Battlefield State Park, Summersville The Battle of Carnifex Ferry was a Union victory led by Gen. William Rosencrans in September 1861 in which Confederate troops were forced to evacuate an entrenched position overlooking Carnifex Ferry. This battle is particularly significant to West Virginia history as it meant the movement for statehood status could proceed without threat from the Confederates.
Cheat Summit Fort, Elkins Built in 1861 by order of Gen. George McClellan, Cheat Summit Fort secured Union possession of the Staunton-Parkersburg Turnpike and protected the Baltimore & Ohio Railroad. The Confederate failure to take Cheat Fort Summit in September 1861 was a major factor in the defeat of Robert E. Lee’s western Virginia campaign.
Droop Mountain Battlefield State Park, Hillsboro The Battle of Droop Mountain, waged on November 6, 1861, was one of the largest fought in modern West Virginia. After Gen. William Averell pushed Confederate Gen. John Echols south, he failed to regain control of southeastern West Virginia, ceding the area to Union forces.
Grafton National Cemetery, Grafton Congress established Grafton National Cemetery in 1867 for the men who died during the Civil War. Following re-internments from other cemeteries, Grafton became the final resting place for 2,133 soldiers, including 664 unknown soldiers. Among them is Private T. Bailey Brown, the first casualty of Civil War land engagement.
Jackson’s Mill Historic Area, Weston The Jackson’s Mill Museum marks the site where young Thomas Jackson—long before he was “Stonewall”—spent the majority of his formative years living and working with relatives after the death of his parents. The historic area includes an operating grist mill, general store, blacksmith shop, barn and a one-room cabin.
Harpers Ferry National Historical Park, Harpers Ferry Harpers Ferry was the site of radical abolitionist John Brown’s 1859 raid on the federal arsenal. During the war it became the base of operations for Union invasions into the Shenandoah Valley. In September 1862, as part of the Maryland Campaign, Stonewall Jackson captured 12,500 Union soldiers stationed in Harpers Ferry, an event that remained the largest mass-surrender of American troops until World War II.
Jenkins Plantation Museum, Lesage Jenkins Plantation was the home of Confederate Brig. Gen. Albert Gallatin Jenkins, who led the 8th Virginia infantry and served in the Confederate Congress before falling mortally wounded at the Battle of Cloyd’s Mountain in May 1864. The museum, which was once the heart of a 4,400-acre plantation, has been restored to its mid-19th century appearance.
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Lewisburg National Register Historic District and Greenbrier County Visitor Center, Lewisburg The Battle of Lewisburg was fought on May 23, 1862, when Union forces attempted to cut off railroad communications between Virginia and Tennessee at Lewisburg. Sites located within the Lewisburg National Register Historic District include a Confederate cemetery, a library that served as a makeshift hospital (Confederate graffiti remains on its walls), a church with a cannonball hole, a church that served as a Confederate morgue and a monument to the Confederate dead.
Shepherdstown Historic District, Shepherdstown Following the Battle of Antietam in September 1862, Shepherdstown was overrun by Confederate wounded with virtually every public and private building in town serving as makeshift military hospitals for the wounded. Fighting around Botelerâ€™s Ford outside of town marked the final engagement of the Maryland Campaign. The Shepherdstown Historic District also contains Elmwood Cemetery, which has many Confederate burials, including the final resting place of Henry Kyd Douglas, a colorful staff officer of Stonewall Jackson.
Philippi Covered Bridge and Historic District, Philippi Fought on June 3, 1861, the Battle of Philippi is remembered as the first land battle of the Civil War, as well as the first amputation due to combat wounds. The Philippi Covered Bridge was used as makeshift barracks by Union troops.
Rich Mountain Battlefield Civil War Site, Beverly Gen. George McClellanâ€™s routed Confederate troops held the pass over Rich Mountain on July 11, 1861, a victory that led to his promotion to command the Army of the Potomac. It also gave the Union control of northwestern Virginia, ultimately contributing to the formation of West Virginia. The Rich Mountain Battlefield Civil War Site is comprised of the battle site, Confederate Camp Garnett and a connecting section of the old Staunton-Parkersburg Turnpike.
West Virginia Independence Hall Museum, Wheeling Nearly six years before President Abraham Lincoln signed the proclamation making West Virginia the 35th state in the Union, construction began on the Wheeling Custom House, headquarters for federal offices for the Western District of Virginia. Its completion coincided with the beginning of the Civil War and the grand new building became the home of the Restored Government of Virginia from 1861-1863.
In the Chef’ s Corner Huntington Prime By Mike Bowe
Huntington Prime opened in February
2010 in the West Virginia Building located in downtown Huntington. The objective in opening the restaurant was to take a fine dining approach to local West Virginia grown and raised foods. In the mid-summer months, at least half of all of our produce is grown locally, while we source winter and fall vegetables as best we can. Our rainbow trout is another West Virginia product and is farmed from Wilson Mills. We source all of our pork from Mason County farms. Huntington Prime specializes in hand-cut steaks and an array of fish and shellfish, as well as vegan and vegetarian entrees. Day-to-day
The objective in opening the restaurant was to take a fine dining approach to West Virginia grown and raised foods.
kitchen operations are overseen by Chef Jared Bradley. Our artisan breads and desserts use local eggs from Mason County, and our pastry chef, Cheri Godfrey, only uses made-from-scratch ingredients in her baking. My vision for Huntington Prime has always been to create a dining room where guests feel like they are coming home. The stone and wood décor, woodstone hearth oven located at the bar and our homemade breads and desserts help us meet this goal. Through every element of our restaurant—the décor, friendly service and unique yet cozy foods—we strive to make our customers comfortable so that they can enjoy their dining experience. We also boast a unique array of wines, offering our guests more than 105 bottles to choose from. In January 2012 we expanded to the 15th floor of the West Virginia Building where we now operate Huntington Prime’s Penthouse & Piano Bar. We are open for dinner in the penthouse Thursday through Saturday, 4 p.m. to 10 p.m. This new venue offers floor-to-ceiling windows and breathtaking views of the Ohio River, Marshall University and downtown Huntington. Our guests take a non-stop ride 15 stories up our privately operated freight elevator to the tallest dining room from the ground up in the State of West Virginia. Diners will enjoy the same menu as our main dining room while enjoying live piano music on our baby grand piano by pianist Michael Campbell. This expansion has given us more room for the everyday diner as well as plenty of space for private events, large or small, including banquets, rehearsal dinners, wedding receptions, business meetings and presentations, family reunions and birthday parties.
Italian Cream Cake
Braised Pork Belly 1 pork belly, lightly trimmed 8 cloves garlic 1 bunch fresh thyme 2 quarts chicken stock ½ cup Dijon mustard ½ large yellow onion 2 tbsp olive oil Combine the Dijon, onion and halved garlic cloves in a blender to make the filling. Cut the whole pork belly into two equal pieces. Spread the filling on the meat side of half of the belly, roll and tie with butcher’s twine. Pan-sear the rolled, tied pork belly in a cast iron skillet with olive oil until browned on all sides. Place the pork in a six-inch baking pan and add the other half of the crushed garlic cloves, one bunch of thyme and two quarts of stock to cover the belly three-fourths of the way up before covering with foil. Braise at 350º in a non-convection oven for approximately three and half hours.
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1 cup butter 2 cups sugar 1½ tsp pure vanilla extract 5 brown eggs, separated 1 tsp baking soda ½ tsp kosher salt 2 cups all-purpose flour 1 cup buttermilk 1 cup pecans 2 cups shredded coconut
Roasted Red Pepper Grits 2 cups water 2 cups milk 1 cup raw corn grits 2 roasted red peppers, diced ½ pound smoked Gouda cheese Combine the liquids and heat until a near boil. Add the remaining ingredients and whisk continuously until the mixture is slightly al dente and smooth. Plate the grits and place the braised pork belly on top for an attractive presentation.
Braised Kale Greens 5 bunches of cleaned fresh kale 6 slices of bacon, chopped ½ large yellow onion, julienned 1 tsp olive oil 1 quart chicken stock 1 quart beef stock Lightly simmer the bacon and onions in one tablespoon of olive oil. Add the chicken and beef stock and bring to a boil. Add the kale and braise. Salt and pepper to taste.
Whip the butter until fluffy and then add the sugar. Continue beating before adding the vanilla and egg yolks to the butter mixture. Combine all dry ingredients and add half of the butter mixture and all of the buttermilk. Whisk the egg whites until stiff peaks form and fold into the cake batter. Chop the pecans with coconut and fold into the cake batter. Bake at 325º for 40-45 minutes in two nine-inch buttered and floured cake pans. When the cakes are cooled, spread the cream cheese icing on the cakes, using the icing as the filling between the two cakes. Cover the tops and sides with toasted pecans and shredded coconut.
Filet Mignon Blackberry Balsamic Reduction 1 cup balsamic vinegar ½ cup brown sugar ½ cup fresh blackberries Prepare a one-half pound filet mignon in your favorite way. Over low heat reduce the vinegar by one-third. Add the brown sugar and let it dissolve while lightly whisking, about five minutes. Add the fruit. Increase the heat and cook until the blackberries begin to break down, about seven minutes. Pour over the filet mignon.
Roasted Root Vegetables 5 red potatoes 1 sweet potato 2 turnips 1 zucchini 1 bunch fresh oregano 1 sprig fresh rosemary 3 baby heirloom carrots ½ cup melted butter 1 tsp kosher salt 1 tsp coursely ground black pepper 1 tsp minced fresh garlic Dash paprika Dash onion powder
Peel the turnips, carrots and sweet potatoes; leave the red potatoes and zucchini unpeeled. Dice all of the vegetables and place in a large dish before tossing with butter and the other ingredients. Lay all of the ingredients out on a sheet-style tray and bake at 350º for 25-30 minutes. Photography by Tracy Toler
From Vision to Reality
As completion of I-73/74 nears, Southern West Virginia’s economic development is expecting a sizeable boost. The King Coal and Tolsia Highways, which extend from Bluefield to Huntington, will provide a more efficient route from Sault Ste. Marie, MI to Myrtle Beach, SC as well as easier access to Cincinnati, Indianapolis, Chicago and Iowa, reaching 63 million people or 22 percent of the U.S. population. I-73/74 will replace one of the most dangerous two-lane roads in West Virginia, increasing safety and decreasing travel time. West Virginia’s McDowell, Mercer, Mingo, Wayne and Wyoming counties, according to a study by Chmura Economics & Analytics,
estimate an economic impact from the new highways of $220 million with the means to maintain 2,020 local jobs. An annual cost savings of $23.6 million to current businesses has also been estimated as a result of improved travel efficiency. Sections of I-73/74 in Mercer and Wayne counties and a 13-mile section in Mingo County have been completed.
For more information on the King Coal and Tolsia Highways or to find out how you can contribute to these projects, contact the King Coal Highway Authority at (304) 664-6200.
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Regional Focus Compiled by Jennifer JEtt
University of Charleston Inducts Five into Alumni Gallery This past April the University of Charleston (UC) inducted five new members into the University of Charleston Alumni Gallery of Achievement: Gregory Burton, Sharon Chapman, James Foglesong, Major General James Hoyer and Eugene Starr. Induction into the gallery of achievement is the highest honor given by the school to alumni of the University of Charleston and its predecessor, Morris Harvey College. This year’s honorees include alumni from classes ranging from the 1940s to the 1990s. Burton, a 1982 graduate of UC, is president and chief executive officer of BrickStreet Mutual Insurance Company. As executive director of workers’ compensation for the State of West Virginia, Burton successfully transitioned the state-run bureaucracy into what is now a fully private insurance system. The privatization of the workers’ compensation program removed a financial burden from West Virginia taxpayers, and BrickStreet is now among the largest writers of workers’ compensation coverage in the nation. Chapman, a 1993 graduate, is the president of Chapman Technical Group, a professional design firm of engineers, architects, interior designers, landscape architects and surveyors. She started with the company, which was then operated by her late husband, in 1991 and came to UC to earn an interior design degree in order to expand the company’s services. After her husband’s untimely death in 1994, Chapman took the reins of the company. Under her leadership, Chapman Technical Group has expanded to three locations in West Virginia and has achieved an outstanding reputation for producing high-quality projects, which is evidenced by the company’s numerous awards.
B E C K L E Y I N T E R M O D A L G AT E W AY
Foglesong attended Morris Harvey College from 1940 to1941. He has had a storied career as a producer and label executive in the music industry and was inducted into the Country Music Hall of Fame in 2004. Foglesong worked at Columbia Records, RCA, Dot Records, MCA and Capitol Records, and during his tenure in the music industry, he produced and oversaw the development of artists that include Les Paul and Mary Ford, Roy Clark, the Oak Ridge Boys, Loretta Lynn, Merle Haggard, Reba McEntire, George Strait and Garth Brooks. Maj. Gen. Hoyer is the adjutant general of the West Virginia National Guard. A 1983 graduate of UC, he succeeded former Major General Allen Tackett (ret.), also an alumnus and member of the UC Alumni Gallery of Achievement. As the adjutant general, Hoyer oversees more than 6,000 citizen soldiers and airmen. The West Virginia National Guard is consistently recognized as one of the best national guard units in the United States and has been called upon several times to deploy to areas of combat, including Iraq and Afghanistan. Starr, a 1967 graduate of Morris Harvey College, has a long history as a senior executive in the medical device industry. He is president and CEO of Vascular Pathways, a privately held medical device company focused on commercializing the Rapid IntraVascular Start catheter. Until 2006, he was the president and CEO of Venetec International, a manufacturer for the StatLock® IV securement device. Starr was also president of Conmed’s Electrosurgery Division and president of Tyco’s Healthcare GroupCanada, where he managed a number of important hospital product launches. Prior to that, he spent 17 years with U.S. Surgical in a variety of general management and sales executive positions.
Sharing in the Joy of Healthcare Education McCabe Medical — proudly serving West Virginia and surrounding areas — offers solid instruction in professional health care at competitive rates. These guidelines are explored in-depth in either individual or small classroom settings. As a consultant/educator company, some of the opportunities McCabe Medical Coding and Reimbursement can provide include:
PRofESSionAl certified professional coder: instruction physician cpc, outpatient hospital cpc-h, payer cpc-p PERSonAl practice management, internal/external auditing, consulting insurance billing CLAIM PROCESSING Proper use of the CMS 1500 claim form for professional services GUIDELINES and the UB04 form for facility services CODING CONCEPTS Expertise in reviewing and assigning the correct coding of physician AND GUIDELINES services, outpatient facility/hospital services, coding related payer functions, procedures and diagnosis for medical claims MEDICAL BILLING AND Health insurance industry and different reimbursement methodologies REIMBURSEMENT for correct claim submission
The Beckley Intermodal Gateway project is a multi-phase transportation center being constructed in the heart of Beckley’s downtown area that will serve as a gateway into the city.
The structure will include a terminal for local and regional bus lines, a parking garage and a public event area. It is a redevelopment project designed to enhance transportation and help revitalize downtown Beckley.
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QUALITy ASSURANCE Established practice of procedure development and risk analysis to AND RISk ANALySIS assist in quality assurance and risk analysis MEDICAL RECORD OR Auditing skills, ensuring medical necessity, correct coding and compliance ChART REvIEw with regulatory issues along with the knowledge and skills to maintain the efficiency of a practice by minimizing the risk of costly errors
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SBA Announces 2012 Small Business Award Winners
Gary White; William Mullen, DO; James “Buck” Harless and Dr. Michael Adelman, WVSOM president
WVSOM Receives Largest Scholarship Endowment in School History When Gary White’s daughter, Jennifer was 6 months old, he and his wife, JoAnn, took her to a children’s hospital in Cincinnati, OH. A couple of weeks later, the White family received grim news: Jennifer was only expected to live for two years due to a condition doctors most closely related to cerebral palsy. Jennifer beat the odds stacked against her, continually, until Dec. 16, 2011, when she passed away at the age of 39. White says his daughter’s ability to fight the odds was attributed to the exceptional health care Jennifer received throughout her life—particularly the last 10 years she was under the care of William Mullen, D.O., a West Virginia School of Osteopathic Medicine (WVSOM) graduate and physician at Logan Regional Medical Center. “My wife and I had a special needs daughter, and Dr. Mullen gave her exceptional care each year,” White says. “I struggled with what you can do for someone like Dr. Mullen. This year, after my daughter’s death, my wife said, ‘Why don’t we fund a scholarship in his name? It can be a memorial to Jennifer but also a thank you for all Dr. Mullen has done for us.’” The couple, along with the help of friend James “Buck” Harless, did just that. “I called Mr. Harless and explained the idea to him and he thought it was wonderful,” White says. The Logan natives formed the Dr. William B. Mullen & Jennifer White Scholarship with a $200,000 endowment. The scholarship endowment is the largest single donation received in the institution’s history. “It’s hard to put into words what this endowment will mean for the school,” says Dr. Michael Adelman, WVSOM’s president. “We are grateful to the White family and to Mr. Harless for their generosity. The scholarship honors a WVSOM graduate who had a profound impact on a patient and, by extension, her family. It demonstrates the highest form of service a physician can provide.” White and Harless agreed that they would like the scholarship recipient to be a student from Logan or Mingo counties, and White hopes the scholarship recipient will want to become a physician in either of those counties. “We feel strongly that this is an appropriate and lasting memorial gift to our daughter,” White says. “This is a special gift honoring two special people.”
Six people received awards from the U.S. Small Business Administration’s West Virginia District Office at the Small Business Awards Luncheon in Morgantown on May 30th. Each year the President of the United States designates one week as National Small Business Week in recognition of the small business community’s contribution to the American economy. The 2012 observance of National Small Business Week was May 20th22nd in Washington, D.C., where more than 100 outstanding small business owners from around the country were honored and the National Small Business Person of the Year was announced. The West Virginia District Office’s Small Business Week event, held at The Morgantown Events Center in conjunction with the 2012 Teaming to Win Conference on Wednesday, May 30th, honored West Virginia’s Small Business Persons of the Year Gene Brooks, Jr. and Frances Foster Brooks of BrooAlexa LLC in Charleston. Also honored were Clovis Lawless of Community Trust Bank in Summersville as the 2012 West Virginia Financial Services Champion of the Year; Kimberley Beth Dole, the owner of Dole Accounting Services in Martinsburg, as the 2012 West Virginia Women in Business Champion of the Year; Robert James “RJ” Williams, owner of Reclaim Company LLC in Fairmont, as the 2012 West Virginia Entrepreneur of the Year and Lyle C. Tabb & Sons LLC of Kearneysville as the 2012 West Virginia Jeffrey Butland Family-Owned Business of the Year. Michael and Peter McKechnie of Mountain View Solar, LLC in Berkeley Springs received the 2012 West Virginia Entrepreneurial Success Award. “The individuals we honored on May 30th represent the finest traits of American entrepreneurial spirit and we are proud to recognize their accomplishments,” says Judy McCauley, district director of SBA’s West Virginia District Office.
Virginia Tourism Chief Comes Home To Lead Charleston CVB A former Charlestonian who has led both Virginia’s and West Virginia’s tourism agencies is coming back to Charleston to lead the city’s convention and visitors bureau. The Charleston CVB Board of Directors recently announced the hiring of Alisa Bailey as the new president and CEO. “Alisa Bailey has a national reputation in the hospitality industry and a proven record of successfully leading state tourism programs in West Virginia and Virginia,” says CVB Board Chairman Gary Chernenko. “We are excited about the experience she brings back to her hometown and the energy she will bring to our CVB.” Since 2003, Bailey has been the president and CEO of the Virginia Tourism Corporation, which is responsible for tourism promotion in Virginia. Bailey has set records for attracting visitors to that state and has been recognized repeatedly for excellence in tourism promotion among trade organizations. Before taking her position in Virginia, she served seven years as West Virginia’s top tourism official, including two years leading both the West Virginia Bureau of Commerce and the West Virginia Division of Tourism. “To be able to get Alisa Bailey to come home to Charleston and lead our CVB is a tremendous find for the CVB and our city,” says Mayor Danny Jones, who serves on the bureau’s board. “She has tremendous abilities and a proven record in creating new ways to attract people and implementing plans to promote communities,
events and opportunities. I am grateful that she wanted to come back to Charleston.” A graduate of West Virginia University, Bailey has also worked for West Virginia Attorneys General Chauncey Browning and Mario Palumbo, U.S. Senator Robert C. Byrd, the West Virginia State Bar and Bowles Rice McDavid Graff & Love, a Charleston law firm.
A Paint-Your-Own-Pottery Studio Opens in Beckley Residents of Beckley, WV, now have a place to let their creativity bloom. The Pottery Place, an all-inclusive paint-yourown pottery studio, is now located in the Galleria Plaza in Beckley. The studio opened in early March. Laya Hutchison, owner of The Pottery Place, says she is excited to expand her studio to a third location. “The Pottery Place is affordable entertainment,” Hutchison says. “It is age appropriate for people of all ages and skill levels. It is a place where you can come to make a memory with family and friends.” Painting at The Pottery Place gives customers a chance to make a memory and enjoy time spent with friends and family members. When painting at The Pottery Place, customers pick a piece of pottery and paint it using all the supplies in the studio. Pieces are then glazed and fired in the studio and are ready to be picked up in one week. With pieces ranging from banks and kids' collectibles to bowls, mugs and canister sets, there's something for everyone to paint in price ranges that fit every wallet. The Pottery Place also has locations at Pullman Square in Huntington and at Russell Centre in Ashland, KY.
Northwestern Mutual Financial Network’s Morgantown Group Seeks to Add Five Financial Representatives Northwestern Mutual’s office in Morgantown aims to add five financial representatives and three financial representative interns in 2012 as part of the nationwide effort by Northwestern Mutual to recruit more than 5,000 financial professionals in 2012. Northwestern Mutual is taking active steps to grow its field force to keep pace with growing demand locally for financial security guidance, products and services, adding new qualified financial representatives and interns at a fast pace. “More people are looking for financial guidance and they’re turning to companies like Northwestern Mutual that have been consistently financially strong,” says Trella Greaser, director of recruiting and development for the Morgantown Group. “We’re hoping to add professionals to help keep pace with the strong demand among consumers for financial advice and financial security.” Northwestern Mutual expects that more than half of new financial representatives will be career changers—professionals who believe that they have reached the ceiling in their current occupation and are looking for an opportunity to grow. “We’re seeing an uptick in energized professionals who are looking for new opportunities to grow in their professional lives and who are immediately attracted to the opportunity to work with an industry leader,” says Greaser. “These career changers are motivated by the rewards, both personally and professionally, of helping people shape and execute plans to realize their life goals.”
Nonprofits Work Together to Provide Jobs for People with Disabilities Goodwill Industries of Huntington and PACE Enterprises of Morgantown have entered into an agreement to provide secure document shredding services in the Greater Huntington area. Both organizations are nonprofit corporations that help create employment opportunities for people with disabilities. Goodwill has operated a successful paper and computer recycling operation for the past several years. PACE operates the only NAID AAA-certified and West Virginiabased shredding company. This agreement allows each agency to focus on strengths while extending a mutual mission of jobs development for people with disabilities. In 2001, Goodwill began recycling office paper, newspaper and cardboard at its location at 525 West 19th Street in Huntington. Over the past five years, Goodwill’s recycling efforts have kept more than 3,600 tons of paper products, i.e., office paper, newsprint, cardboard and junk mail, out of area landfills. In 2010, PACE entered the secure document shredding business and is providing state-wide destruction services for confidential documents. PACE operates a plant-based shredding operation in Mylan Park near Morgantown. PACE will conduct the pick-up of documents to be destroyed, and Goodwill’s drop-off customers may continue to drop off confidential documents to Goodwill’s Huntington facility. The aim is to make this transition seamless and unnoticeable to customers. The result of the partnership will be that both organizations will be able to create more job opportunities for workers with disabilities.
Security America Announces New Hires, Promotions and Achievements
The Pottery Place, located in Beckley, WV.
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Security America, a leading multi-state provider of security officers and security services since 1982, has announced the hiring of James Hupp as vice president of sales and the hiring of Mike McLaughlin as marketing executive and consultant, as well as the promotion of Renee Shaffer to vice president of administration and finance. Hupp, the former owner and president of American Office Systems, brings more than 30 years of sales and management experience to his post.
McLaughlin is a certified protection professional who is also certified at Level III in Home Security and is FBI-vetted for his membership in InfraGard. He oversees Security America’s internal and external communications and provides consulting services for specialized projects. Shaffer, who has attained her bachelor’s degree in accounting from Western Governors University, has been with Security America at its corporate headquarters in Charleston for more than 20 years.
Shepherd Student Awarded First Brian Noland Leadership Fellow Award Shepherd University student Gabrielle Bartlett is the first recipient of the Brian Noland Leadership Fellow Award. The award was presented to her during Shepherd’s annual Student Recognition Day in April. Named in honor of Dr. Brian Noland, who served as the chancellor of the West Virginia Higher Education Policy Commission for five years before becoming the president of East Tennessee State University, the award provides a full-time tuition scholarship for the recipient’s senior year. “Gabrielle’s involvement in campus activities makes her a worthy recipient of the Noland Fellow award,” says Shepherd University President Suzanne Shipley. “Shepherd is proud to present her with this inaugural award established to honor Dr. Noland’s contributions to higher education leadership.” The recipient of the award is a student leader who has effectively contributed to the strength of the institution through civic engagement, scholarship and artistic or athletic accomplishments as determined by the institution giving the award. Additional criteria include West Virginia residency, full-time student status, a cumulative grade point average of 3.0 or higher and campus leadership involvement. To be considered for the award, students had to submit an essay describing how their leadership involvement has improved Shepherd and influenced Shepherd students in a positive manner. Bartlett’s essay discussed her involvement with the Multicultural Leadership Team and the Appalachian Leadership and Education Foundation. The selection committee cited her essay as “speaking to Shepherd’s core values of community service, leadership and active learning experiences” and stated that Bartlett “possesses strong communication, leadership and critical-thinking skills.”
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