Issuu

The Voice of the

Wishing you the blessings of the season and a safe and prosperous 2019

NEWS

Independent Since 1959

~ IOGAWV Board and Staff

December 2018

Kyle Mork Named 2019 Young Gun IOGAWV member Kyle Mork is one of 10 West Virginia business professionals named to the Young Guns Class of 2019 by West Virginia Executive (WVE) magazine. The inductees were honored at a reception in Charleston on November 15. During the reception, WVE’s Fall 2018 issue was unveiled, featuring Kyle Mork, president and CEO of Greylock Energy and 2019 Young Gun, on the cover. Mork is president and CEO of Greylock Energy. He began his career with Halliburton Energy Services before moving to En-

ergy Corporation of America, where he served in a variety of operations and management roles, ultimately culminating in the role of CEO. In fall 2017, he and the management team launched Greylock Energy, a new oil and natural gas, exploration, production, and midstream company formed in partnership with ArcLight Capital Partners. Mork holds a BS degree in Chemical Engineering from Cornell University, an MBA from the Kellogg School of Management at Northwestern University

and has taken masters courses at the University of Southern California Young Gun Continued on page 3

Is 2019 Winter Meeting on Your Calendar? IOGAWV’s Winter Meeting is the best-attended industry event of the year, so make plans now to join friends, colleagues, legislators and professional contacts for this exciting two-day event. Mark your calendars and register now (see page 19) for January 22-23, 2019, at the Marriott Town Center Hotel in Charleston. A great lineup of dignitaries, industry personnel and speakers will make your two days in Charleston very worthwhile. Benefit your business by taking advantage of the sponsorship opportunities available. Simply fill out the sponsor form on page 18 or contact Lori Miller Smith for specific event sponsorships. The potential exposure, educational opportunities and networking make this a great investment for your company.

Continuing IOGAWV’s commitment to providing the latest technological advancements, we are pleased that presentations will be made by C & J Energy Services, Schlumberger Oilfield Services and SLS Land and Energy Development during the technical sessions from 9:00 a.m. to 4:00 p.m. on Tuesday. There is no charge to attend these technical sessions. The West Virginia Desk and Derrick Club will be joining us for lunch, then hosting their monthly meeting in the afternoon. Join us for the IOGAWV Membership Reception in the third floor Pavilion Tuesday evening from 5:30 to 6:30 p.m. Following the reception, dinner Tuesday night is on your own. On Wednesday, January 23, breakfast for all attendees begins

at 8:00 a.m., and is sponsored by Ergon Oil Purchasing. Governor Jim Justice has been invited to serve as the keynote speaker at 9:00 a.m. The Kevin Ellis keynote speaker Vice President and will be followed Program Chair by producer presentations on business plans for 2019. Confirmed speakers include: Diversified Gas & Oil Corporation CEO Rusty Hutson; CNX Gas COO Tim Dugan; and US Methanol CEO Frank Bakker. Oil & Gas Reclamation Award recipients will be honored during lunch and our annual presentation will be made to the Oil & Gas Museum. Winter Meeting Continued on page 12

INSIDE

Brett Loflin / 2 Mike McCown / 3, 6, 8 Charlie Burd / 4 Mark Clark / 5 Greg Kozera / 7 Sam McKown / 9 Industry News / 10 In Memoriam / 11 Mark Taylor / 13 Ergon / 15 2019 Ad Contract / 16 Hugh Byers / 17 Industry Events / 17 Winter Meeting Sponsor Form / 18 Winter Meeting Registration Form / 19

Brett Loflin IOGAWV President

Take Pride in Our Industry

During the week of November 12, 2018, two articles appeared in the Charleston Gazette that painted the oil and gas industry in a bad light. The articles were specifically about calculating royalty payments with post-production expenses deducted from those payments. Also, the articles outlined a lawsuit brought by an oil and gas company that challenges the 1982 law that requires an oil and gas operator, wishing to receive a permit from the WVDEP, to guarantee a minimum 1/8 royalty to be paid to mineral owners. The 1982 law basically voids any flat rate lease in existence between the parties. Otherwise, a well work permit will not be granted. A week later an op-ed appeared in the Gazette that paints all oil and gas operators as greedy thieves who only want to take advantage of royalty owners. The op-ed does not state any facts for the basis of that premise. If the author would have taken the time to research the facts he/she would have found that thousands of leases have been taken that exceed the minimum 1/8 royalty and only allow for limited or no post-production expenses to be deducted from the royalty due. A quote from one of the articles references the owner of a mineral tract containing two wells that have been producing gas for over 100 years. The wells were drilled under a flat rate lease and hold the acreage. The mineral owners’ father passed away and left his share of the mineral rights to his heirs. The quote states, “My father retired from Hope Gas and he always told me, don’t trust the gas companies.”

The article goes on to state “the industry says there are efforts to ‘modernize’ leases. But those kinds of requests seldom include an offer to increase royalty payments to more modern rate.” One has to wonder how much research went into determining how the author makes that conclusion. Many companies modify old leases in order to form production units and pay a higher royalty rate. A second article, mainly dealing with the deduction of post-production expenses, also attempts to vilify the industry. The author does not take into account that all companies are different. The article makes no mention of the millions of dollars it takes to develop acreage and drill and complete wells in order to get the product to market. The article does state however, “… there are growing indications that natural gas is taking West Virginia down the same path as coal, including a long and continuing battle over how the profits are divvied up among residents and out-of-state companies that are extracting natural resources from the land.” Although the articles basically target a specific operator, it is not a stretch to imagine the general public thinking the oil and gas industry is made up of a bunch of greedy out-of-state corporations that only benefit themselves or their shareholders. I think it is important for all of us to be proud of the contribution we make to the state of West Virginia and its citizens. In the last four years, the industry paid $621.6 million in severance taxes. In 2018, the industry paid over $1

million in property taxes and I can’t even imagine how many hundreds of millions of dollars in royalty payments to mineral owners. A report published last year by PricewaterhouseCoopers stated that the Take Pride Continued on page 14

2018-2019 OFFICERS BOARD MEMBERS Brett Loflin President J. Kevin Ellis Vice President/Program Chair/Government Affairs Co-chair Ben Sullivan Secretary-Treasurer/Finance Chair Marc Moneleone Immediate Past President James W. Crews Commerce Co-chair Jon Farmer Producers Issues Chair/Government Affairs Vice Chair Jeff Isner Commerce Co-chair/Communication and Education Vice Chair Mike McCown Communication and Education Chair Sam McKown Membership Chair/ Environmental Vice Chair Bob Radabaugh Environmental Chair Sarah Smith Government Affairs Co-chair Todd Tetrick Safety Vice Chair Rick Toothman Safety Chair

Mike McCown Communications & Education Chair

Show Us Oil and Gas “In My Home Town”

The oil and gas industry has made a positive impact throughout West Virginia for well over 100 years and that influence is never more apparent than today. From Wheeling to Charleston, from Ripley to Green Bank and from Morgantown to Sutton the industry is creating economic development and jobs! Here are a few illustrations of the impact oil and gas is making my

hometown, Mineral Wells. Send us your photos and we will post them in future articles! Just send your photos to Charlie Burd at cburd@iogawv.com with a description of the photo and its

location. Let’s see YOUR home town!

Young Guns Continued from page 1

in Petroleum Engineering. He is past Chairman of the Board of Directors for the Clay Center for the Arts and Sciences and also serves on the Cornell Engineering College Council. He is active in the Young Presidents’ Organization and is past Chair of the Mountain State Chapter. He and his wife Kirsten live in Charleston with their three children. In addition to Mork, the inductees of the 2019 class are: Matt Boggs, Recovery Point WV; Brandon Dennison, Coalfield Development; Jason Henderson, Energy Transportation, LLC; Lauren Hendricks, United Bank; Walker Holloway, Hazlett, Burt & Watson, Inc.; Tiffany Kapp, Custom Business Solutions; Mark Nesselroad, Glenmark Holding LLC; Natalie Roper, Generation WV; and Danny Scalise, WV State Medical Association.

Charlie Burd Executive Director, IOGAWV

From the Burd’s Nest: Reflections of Holiday Seasons Past Although the official start of winter is still a few days away, Friday, December 21, to be exact, we have already experienced some rather early frigid weather. Growing up in Southeast Ohio in the 1950’s and 60’s and reflecting through the eyes of a once ten-year old, it seemed once it got cold, it stayed cold. I also seem to recall that we had lots more snow. I was much shorter then, so I suspect less seemed like more. I grew up in the small village of Little Hocking, Ohio. Everybody knew everybody. That was a twoedged sword. The bad side of that was simple: when you messed up and got in trouble, it didn’t take Mom and Dad long to find out. The good side of that was everybody looked out for you and it was a much safer time. Luckily for me, while I was far from perfect, I didn’t seem to find much “real” trouble as Mom called it. I learned very early on that Dad didn’t tolerate his children getting in “real” trouble. My three siblings and I were blessed with parents who loved for us to have our friends over. (As an adult, I now understand what they then understood, that it is always better to know where your children are as it is to be worried about them getting in harm’s way.) In the summer, we played baseball in the field next to our house and generally replaced the glass in at least two windows per season!! We also played Midnight Ghost (a clever game of hide and seek after dark), which was always more fun when I got older and played coed!! But that’s another story for another time! As a youngster, winter was way

more special. Saturday morning cartoons on TV, card games and Monopoly took the place of baseball and when it snowed, that long steep hill that connected to our baseball field was “the place.” Probably 130 yards long from the peak, it sloped directly towards our front yard. Every kid in town knew about the hill, had a sled and knew how to use it. The Lewis family owned a toboggan—the only one in town that I remember. It seated four or more and it “cut the path” in the snow for the regular sleds with runners and round saucer sleds. No snowboards back then!! When it snowed, those Lewis kids were some of the first to show up on the hill. It was nothing to have 30 of us out there on the hill at a time—they came from every corner of the Village. I have no idea how many gallons of hot chocolate (the real hot chocolate with whole milk and marshmallows) my Mom made for us and our friends, or the total number of hours our gas dryer ran to dry gloves, mittens, coats, pants and socks. Everyone had a great time and Midnight Ghost was replaced with late night bon fires at the top and bottom of the hill. One of my most vivid and favorite memories of my Dad and I occurred when I was about 10 or 11 years old. It was the day after Thanksgiving and bitterly cold. My Dad worked for the B&O Railroad and an engineer on a passenger train reported a break in a rail due to the cold. It was late and well after dark when Dad got the call-out to locate the break and monitor it through the night. I wanted to go—the mid-1960’s “take your kid to work” experience. I

think Mom was relieved Dad would not be out there alone and immediately started fixing us turkey sandwiches on the homemade bread she had made the day before. Dad got a thermos of coffee for himself and hot chocolate for me. Out the door we went. For the life of me, I cannot remember where we headed that night but when we arrived it was in the middle of nowhere, windy and blowing snow. First find the break then set up camp. Dad’s instructions on where to locate the break were spot on. That accomplished, we set our sights on finding a spot that offered a wind break and shelter from the cold. Once found, we went about gathering wood from along the railroad tracks for our fire—and a great fire it was. I will never forget huddling around that fire with Dad in the freezing cold. It was the adventure of a lifetime for a kid with his Dad. When it came time to eat, Dad improvised with the foil Mom used to wrap our sandwiches and toasted our sandwiches over the fire—I’ll never forget, it was a meal fit for a king!! Dad passed many years ago, but Mom is 94 years young and still active—has one Bud Light every day and goes to the VFW a couple times a month. Over the years, we have reminisced and recalled that night and many other fond memories from holiday seasons past. As you gather around the table (or a campfire if one presents itself) with family and friends this holiday season, please take a moment to reflect on holidays past and all the things for which you are thankful: Burd’s Nest Continued on page 6

Mark D. Clark Spilman Thomas & Battle, PLLC

Taking a Look at the IOGAWV Year-end Update As we come to the end of 2018, it may be helpful to look back at what issues IOGA has been working on and the status of those topics. The year has been a fairly busy one so we will only mention the more significant issues. We started off the year by reporting on procedural developments in litigation challenging the 2015 Waters of the United States ("WOTUS") Rule ("2015 Clean Water Rule"). On January 31, 2018, the U. S. Environmental Protection Agency ("EPA") and the U. S. Department of the Army ("USACE") finalized a rule delaying the applicability of the 2015 Clean Water Rule until February 6, 2020, to allow the various court cases and additional proposed

rulemaking to play out and provide some certainty regarding the Rule. However, the U. S. District Court for the District of South Carolina issued an order enjoining the EPA and USACE from enforcing the rule delaying the applicability until February 6, 2020. The result to date is that the 2015 Clean Water Rule is in effect in 22 states, the District of Columbia and U. S. territories, but the pre-2015 Clean Water Rule and guidance is in effect for the remaining 28 states, including West Virginia. It is simply hard to predict when a final rule applicable throughout the United States will be effective. By April we reported that the Cotenancy Modernization and Majority Protection Act had been enacted

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and was effective June 3, 2018. This important development represents a revision to the common law relationship between cotenants owning "oil or natural gas and their constituents." It is important to note that the Cotenancy Act is limited to joint ownership of oil or natural gas and their constituents by an undivided interest in a single tract of oil or natural gas. While the West Virginia Oil and Gas Conservation Commission has not yet proposed a legislative rule as authorized by the Act, we reported that the West Virginia Treasurer's office issued an emergency rule and proposed legislative rule on June 27, 2018, to implement the Unknown and Unlocatable 2018 Update Continued on page 12

Mike McCown Communications and Education Committee Chair

Time Now to Plan for Your 2019 Advertising in IOGA News Your continued support of IOGA News through your advertising is greatly appreciated. We have enclosed a copy of the 2019 Advertising Contract. You will need to complete and return this contract by December 22, 2018 for your advertisement to be included in the January 2019 issue of IOGA News. For our current advertisers, a copy of your current contract and most recent ad are enclosed. Ads must be paid in full by check or credit card prior to publication. For 2019, we are making a special offer to our current advertisers and meeting sponsors! For those who advertised in IOGA News, or who sponsored the Winter Meeting, Summer Meeting or Sports Weekend during the last 12 months, we’re offering you a 10% discount on your 2019 advertising in IOGA News. This will give sponsors who are not current advertisers the opportunity to expand their Burd’s Nest

reach to this important market and keep your name and your products and services at top-ofmind awareness for your current and potential customers. Please see the form on page 16 to make your selections for

2019 advertising. Please call Tammy Stuck at the IOGAWV office at (304) 3449867 or email her at tstuck@ iogawv.com for any questions regarding advertising opportunities.

Continued from page 4

family, friends, health, good food, and your job in the oil and gas industry. I hope you are as proud as I am to work for an industry that makes holidays possible. From heating your home, to driving to your in-laws’, to cooking a delicious dinner, Thanksgiving and Christmas as we know them just would not be possible without oil and natural gas. Merry Christmas and Happy New Year from the Burd’s: Charlie, Leone, Nathan and Charlie

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Greg Kozera Learned Leadership LLC

Be Memorable in 2019! Earlier this year my wife and I attended a conference (Not IOGA). I had to be at a meeting and slipped out leaving Lynnda to listen to the speakers. She was right up front. When I got back she was mad. “You left me here with these boring speakers. I couldn’t leave.” Lynnda has been to many National Speakers Association (NSA) conferences so she has a high level of expectations. She was right. The speakers were monotone and had no passion for their material. I couldn’t read what was on their slides and I have 20/20 vision. What was worse, one speaker actually said, “I know you can’t read this.” I’m thinking. “Then why are you wasting our time showing it?” Sadly, his topic was important and he apparently knew his material. I looked around the room and most people were looking at their phones, apparently checking and sending emails. It did not matter what he knew. No one cared because he couldn’t communicate effectively. The ability to effectively communicate from the platform to a large group or to a small group is essential. I taught a Leadership Course at Pierpont Community and Technical College. I made it a point to get the students to do presentations in front of the class as often as possible. It gave me the opportunity to teach them public speaking skills. It gave them confidence. The students’ first presentation is always rough but one group was absolutely horrific. They had their hands in their pockets. They looked at the floor. They were hard to hear. They lacked confidence. I couldn’t stand it. I decided to give them a “do over”. I told them, “You know

everyone in class. They are your friends and classmates. You have five minutes to stand up here and tell them what you did this past weekend.” They were incredible! They smiled. They lost their fear. They told stories. They were entertaining. They looked at their classmates and just had a conversation. By the end of the course they were all good presenters. Their Power Points were better than most I have seen at conferences like DUG East and could be read from the back of the room. They learned to become memorable. Earlier this year I was part of an industry group that toured Dominion’s Gas Control Center. One of my former students, who is now working there, was the presenter. He had to explain to us what happens at Gas Control. He was a new employee and we were all industry veterans. The young man was incredible. He was confident, articulate, knowledgeable, easy to hear and understand. He stood tall and looked us in the eye. He represented his company well. I was proud of him. Presentation skills are important. Here are some secrets from professional speakers (who get paid to speak) that may help you and you people: • IT IS ALL ABOUT THE AUDIENCE! If you only remember this one point and implement it you will dramatically improve your presentation skills. Most speakers worry about how they look or worry about their message. The audience doesn’t care about your message unless you first care about them. This means having slides they can read. Look them in the eye and

speak so you can be heard. Decide before you present what is the one idea or point you want them to remember tomorrow. They will forget most of what you said by the time you finish speaking. • The audience will forget most of what you say. They will always remember how you made them feel. Strive to make an emotional connection with the audience. Have some passion for your topic. I was the Virginia Oil and Gas Association President when I had to speak immediately after the movie Gasland. I was prepared. I had five pages of notes debunking the movie. The audience gasped at the fiery faucet scene. They were mad. My facts were no match for their emotion. I thought about what my professional speaker friends would do. I tore up my notes. When I faced the audience, I ripped off my sport coat and threw it behind be. I spoke from the heart as a father and grandfather. I empathized with them. I was then able to present a few key facts. The next day the organizer called and said, “I don’t know what you did but when those people left they were mad at Josh Fox, not you and the gas industry.” We need to always connect to the heart before we can connect to the head. • Have the courage to use stories. We all can remember our favorite family stories and work stories. They are told and retold. People laugh. They aren’t writMemorable Continued on page 10

Mike McCown Communications & Education Committee Chair

Glenville State to Host Third Annual IOGA Classic The Third Annual “IOGA Classic” high school basketball tournament, hosted by the Independent Oil and Gas Association of West Virginia, will take place at the Waco Center at Glenville State College (GSC), Monday, December 11, through Saturday, December 15, 2018. IOGAWV representatives will be attending all games and distributing information about the oil and natural gas industry in addition to providing free give-aways to the students in attendance. Schools scheduled to participate include “AAA Girls’” squads from Bridgeport, Buckhannon, George Washington, and Parkersburg High School. The “AA Boys’” squads are from Braxton County, Bridgeport, Nicholas County and Tucker County; the “AA Girls’” squads are from Braxton County, Clay County, Nicholas County and Tucker County. The “A Boys” teams are Doddridge County, Gilmer County, meadow Bridge, and St. Mary’s. Rounding

out the field are the “A Girl’s” teams of Gilmer County, Roane County, Valley Wetzel, and Van. The student participants of the tournament are eligible to apply for a Glenville State College scholarship that is being funded by IOGAWV. The six available scholarships will be awarded to qualified seniors who will attend GSC and pursue a degree in relation to the support and development of the oil and gas industry. In addition, this year there will be a “SPIRIT COMPETION” conducted between all participating schools. Each school is encouraged to bring as many fans as possible to its opening round game where they

Tuesday, Dec 11, 2018

Friday, Dec 14, 2018

4:00 A Girls 5:30 A Boys 7:00 A Girls 8:30 A Boys

Van vs Valley (W) Gilmer Co vs Meadow Bridge Gilmer Co vs Roane Co St Mary’s vs Doddridge Co

5:00 AA Girls Consolation game 6:30 AA Boys Consolation game 8:00 AAA Girls Consolation game

Saturday, Dec 15, 2018

Wednesday, Dec 12, 2018

12:00 A Girls 1:40 A Boys 3:30 AA Girls 5:00 AA Boys 6:40 AAA Girls

Thursday, Dec 13, 2018

** Team listed first will serve as HOME team In 2nd round, the team that played first will serve as HOME team (official book, uniforms, bench assignments, etc.)

4:00 5:30 7:00 8:30

AA Boys AA Girls AA Boys AA Girls

Bridgeport vs Tucker Co Nicholas Co vs Tucker Co Nicholas Co vs Braxton Co Clay Co vs Braxton Co

4:00 A Girls Consolation game 5:30 A Boys Consolation game 7:00 AAA Girls Bridgeport vs George Washington 8:30 AAA Girls Buckhannon vs Parkersburg

Championship game Championship game Championship game Championship game Championship game

will be individually judged on school and team spirit and enthusiasm. The one winner of $1,000 will be announced on Saturday, December 15 during the championship round of competition. Tickets can be purchased at the door for a general admission price of $5 and a student price of $3 (with a valid school ID). Concessions and game apparel will be available as well. For more information about the IOGA Classic, contact (304) 4626381. You can view the tournament schedule at http://www.glenville. edu/news/.

Opened in 2013, Glenville State College’s Waco Center is a $25 million facility that houses the college’s Land Resources department, a 3,000 seat sports arena, other athletic facilities and offices, and a community healthcare center operated by Minnie Hamilton Health System. The remainder of the building houses McPherson Court, where the tournament will be played, and other athletic spaces and offices. Waco Center is on Mineral Road.

Sam McKown Membership Committee Chair

IOGAWV Board Approved Six New Members in November Please welcome these new members approved in November: Carter-Jones ASO Companies, Inc. Nathan Beal 1 Carter Point Ripley, OH 25271 Phone: (304) 372-5100 Fax: (304) 372-5095 Cell: (717) 377-8655 nbeal@carterlumber.com www.carterlumber.com

Coleman, Mary A., CPA ROY Mary A. Coleman PO Box 3655 Pikeville, KY 41502 2910 East Shelbiana Road Pikeville, KY 41501 Phone: (606) 437-1989 Fax: (606) 433-1989 mary@maccpa.net Comfort Suites ASO Shelly Hupp 167 Elizabeth Pike Mineral Wells, WV 26150 Phone: (304) 489-9600 Fax: (304) 489-1896 Cell: (304) 482-0873 s.hupp@guestsinc.com www.confortsuites.com/hotel/ wv036

Drug Testing Centers PRO of America Julia Barker 100 Lee St., W. Charleston, WV 25302 Phone: (304) 344-8378 Fax: (304) 344-0069 Cell: (606) 792-5693 julia.barker@ drugtestingcenters.com www.drugtestingcenters.com LIBCO Energy, LLC ROY Thomas S. Liberatore 230 Brothers Court Port Matilda, PA 16870 Cell: (304) 993-2575 tliberatore@libcoenergy.com XSPEC Power ALL David Canterbury PO Box 190 4998A Elk River Rd., S. Elkview, WV 25071 Phone: (304) 746-1139 Fax: (681) 265-9338 Cell: (304) 545-3378 david@rllco.com www.xspecpower.com

Memorable

Continued from page 7

ten down but we still remember them. Everyone can recall a bible story. If you want to be memorable when you are speaking use stories. Each story must make a point. I have seen people weeks after a presentation who couldn’t recall my name but could recall the story saying, “You’re the Frac Guy.” Because they remembered the story, they remembered the point I made. • Jeffrey Gitomer, sales expert and fellow NSA member told me, “Kozera, slides are free. I only have one point per slide.” (In 60 font) This changed how I do presentations. • Prepare. Athletes practice before a game. Dannielle and I train for months before running a half marathon. Professional speakers know what they are going to say and how they are going to say it before they get up to speak. As good as they are they still practice before every speech. You need to prepare and practice before you speak. Don’t go it alone. Get a coach if needed. Help is also available at www.nsaspeaker.org. These are just a few thoughts that will help you and your people improve their presentations. I challenge you to make 2019 the year we say good bye to boring presentations. Make people not only want to hear you speak but remember what you had to say. We can change hearts and minds. We can inform. We need to remember to always focus on the audience and their needs first, then make an emotional connection with them before we give our facts. Thoughts to ponder Have a safe, happy, healthy and successful 2019.

Industry News

Hodges Join Greylock Energy Officials with Greylock Energy today announced that Scott Hodges has joined the company as its new vice president of land. According to Greylock CEO Kyle Mork, Hodges has more than 20-years’ experience in the energy industry in Appalachia. And, as vice president of land he is responsible for managing Greylock’s land team; negotiating for, and acquiring, mineral and surface rights; and maintaining relationships with landowners. Mork said, “We are thrilled to have Scott join the Greylock Team. He brings a wealth of experience, long-time relationships and deep knowledge of the region that will be invaluable to us as we continue to grow and develop our upstream and midstream businesses throughout Appalachia.” Hodges is a second genera-

Scott Hodges Greylock Energy

tion landman who began his land career with Consol Energy. He joins Greylock after serving eight years as Senior Vice President, Land & Business Development at Rex Energy.

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In Memoriam

IOGAWV Sadly Mourns the Passing of Long-time Member and Friend, Fred Peters

Frederick Wayne "Fred" Peters passed away on Saturday, November 17, 2018, at his home in Chelsea, Oklahoma, at the age of 68. Born September 6, 1950, in Grafton to Frederick F. and Elizabeth A. "Babe" (Summers) Peters, Fred was raised and educated in Grafton, but finished and graduated high school in Parkersburg. He graduated from Parkersburg South High School in 1968. Following graduation, Fred continued his education and attended Marietta College, where he received his Bachelors of Science Degree in Petroleum Engineering. In 1970, he married Julie Lombard and the couple went on to have three children, Fred, Jennifer and George. Fred provided for his family working for Dowell, now Schlumberger, a career that lasted 40 years before his retirement. It was during his work career that Fred found an appreciation for travel, living in Dubai, Singapore and Alaska, as well as travel-

ing a good portion of the remainder of the globe with his job. Fred enjoyed the outdoors, playing golf, hunting and enjoying many types of fishing. Those outdoor activities could only be better when they were in the mountains of West Virginia, the place Fred was most at home. Football was another passion and the West Virginia Mountaineers were his favorite. He was an avid reader and would sometimes read two or three books a week. He enjoyed a wide variety of authors and genres and was just happy with a book in his hand. Fred was also a connoisseur of fine wine and cigars, but did enjoy his Maker's Mark bourbon or a good cup of coffee as well. A staunch Republican, he always had a strong opinion and enjoyed nothing better than a debate over politics. Fred valued community and actively supported businesses in whatever community he called home. While living in Chelsea, Fred became active with Community

Options where he served on the Executive Board. This organization was dear to his heart because of its role in changing the lives of adults with disabilities. No story about Fred would be complete without mentioning his love of family. He was so proud of his children and all that they had accomplished with their lives. He enjoyed the times that they could all be together and it might even be said that Pappaw was one of his favorite words. His grandchildren even said that they were sure they tested his patience numerous times, but Pappaw never said a word. He just embraced the time they had to be together. Fred is survived by his children, Fred Peters and wife Donna, Jennifer Looper and husband Michael, and George Peters and wife Leslie, seven grandchildren, a sister, and numerous nieces, nephews and cousins. Fred was preceded in death by his parents.

2018 Update Continued from page 5 Interest Owners Act. The proposed legislative rule, 112 C.S.R. 16 was scheduled to be considered by the Legislative Rulemaking Review Committee in late November with consideration of the rule by the full Legislature in early 2019. In September we reported that the West Virginia Department of Environmental Protection ("WVDEP") proposed modifications to the West Virginia 401 Water Quality Certification for the United States Army Corps of Engineers ("USACE") Nationwide Permits. On September 17, 2018, IOGA filed its comments on the proposed modifications opposing the language authorizing the WVDEP to calculate cumulative permanent impact that aggregates all separate and complete crossing for linear transportation or utility projects for purposes of compensatory mitigation requirements. To date, the WVDEP has not published any modifications to the 401 Water Quality Certification so we continue to wait for the outcome. Similarly, we reported that WVDEP published its draft General Water Pollution Control Permit Stormwater Associated with Oil and Gas Related Construction Activities and a draft General WV/NPDES Water Pollution Control Permit Stormwater Associated with Construction Activities. The current versions of these stormwater general permits expired earlier this year but were extended by WVDEP through December 31, 2018. IOGA filed written comments on October 21, 2018. Despite the fact that the draft general permits proposed a December 1, 2018 effective date, the final stormwater general permits have not been published as of late November. The revisions in the draft general permits were significant, so we hope the final general permits incorporate many of the changes proposed by

IOGA and others through the public comment period. As reported last month, the EPA has proposed "targeted improvements to the 2016 New Source Performance Standards ("NSPS") for the Oil and Natural Gas Industry, including amendments to the fugitive emissions monitoring requirements." The detailed proposed revisions do not provide small conventional operators with the regulatory relief that IOGA believes is appropriate, so IOGA is working with other associations to develop and file comments to the proposed revisions by the December 17, 2018 deadline. While not previously reported the West Virginia Division of Highways ("DOH") issued proposed "Updated Oil and Gas Road Policy" and "Oil and Gas Pipeline Crossing Requirements" for input. The proposed documents continue to expand

the regulatory burden on not only horizontal well developers, but conventional developers as well. IOGA filed comments on the drafts in May 2018, requesting revisions to exclude conventional well development and more significantly its application to well plugging operations. The DOH issued another version of the Updated Oil and Gas Road Policy and Oil and Gas Pipeline Crossing Requirements each dated October 1, 2018. The DOH incorporated very few of the revisions suggested by IOGA, so IOGA will continue to work with the DOH on improving these documents for the benefit of oil and gas operations. If you questions or comments regarding these updates, please contact Mark Clark at MClark@Spilmanlaw. com or Dave Yaussy at DYaussy@ Spilmanlaw.com.

Winter Meeting Continued from page 1

Afternoon speakers will feature Scott Potter, who is managing director of business development for RBN Energy, as well as Randy Rich with Pierce Atwood in Washington, D.C. Steve Hedrick, president and CEO of MATRIC, will be updating us on the Appalachian Storage Hub. Gregory Wrightstone, author of â€œInconvenient Facts,â€? will discuss the myths of climate change. WV DEP Secretary Austin Caperton will be speaking, as will Commerce Secretary Ed Gaunch, and additional

sessions will focus on a variety of industry issues. At 5:00 p.m. we will welcome all GOpac contributors to a special bourbon-tasting reception. This is followed at 6:00 p.m. by the IOGAWV Membership and Legislative Reception which is open to all members and nonmembers paying the full registration fee. Please see page 19 to register for the meeting, or www.iogawv.com. If you have questions, please contact Lori Miller Smith at 304-344-9867.

Mark Taylor WeatherBELL Analytics

What to Expect For Winter 2019

For more information about WeatherBELL’s services and to get the hot-off-the-press HDD forecasts, please visit our website www.weatherbell.com or contact Mark Taylor at (770) 855-1585/taylor@weatherbell.com.

A weak El Niño is expected to continue to evolve over the next few months, with the warmest waters centered in the central Pacific. Those types of El Niños tend to bring cold and stormy weather to the eastern part of the country. We have seen a very cold and stormy November over most of the eastern U.S., including a record cold Thanksgiving in much of the Northeast. While we do expect a milder spell in the middle of December after a very cold opening, cold air should be poised to move back in toward the end of the month. Stay tuned to WeatherBELL energy services for the latest monthly and weekly forecast updates as the details become important within the winter season.

Take Pride

Continued from page 2

oil and natural gas industry in West Virginia supported 70,900 direct and indirect jobs and added $8 billion to the state economy in 2015. Additionally, according to the Consumers Energy Alliance, due to the low cost of natural gas, consumers in our state have saved over $4 billion over the last 10 years. Also, our companies are intimately involved with the local communities and spend countless hours and dollars improving our roads, schools and community centers. As for national security, our country can now claim to be energy self-sufficient due to the efforts of our industry. No longer do we have to rely on hostile foreign countries to supply us with the energy we need to protect and sustain our way of life. IOGAWV spends countless hours educating our legislators and state leaders on the benefits of a robust oil and gas industry in West Virginia. In fact, our industry is the BEST HOPE for the future of our state. In addition to the obvious benefits listed above, the development of the Appalachian Trading and Storage Hub, along with the industries that will be attracted to West Virginia, will lead to widespread employment opportunities that will not only help keep our young people from leaving the state, but will attract others from outside our borders. So the next time we find ourselves under attack, donâ€™t hesitate to let people know that the oil and gas industry helps our citizens prosper and provides the basis for an expanded manufacturing industry, and truly is the best hope for our state to remain competitive in a global economy.

Wishing you and yours the best of this season â€“ IOGAWV Officers, Board and Staff

Ergon

Monthly Appalachian Basin Crude Oil Prices

TIER 1 - 150+ net barrels of crude oil. No more than 2% BS&W (if the BS&W is over 2%, it will then qualify for Tier 2 pricing.) One stop location (one or more tanks at a single location). TIER 2 - 60-149.99 net barrels of crude oil. Two stops within five miles. TIER 3 - 30-59.99 net barrels of crude oil.

2019 Advertising Contract

2019 IOGA News Advertising Contract Advertising is available to member companies and nonmembers of the Independent Oil and Gas Association of West Virginia, Inc. in monthly issues of IOGA News. Please see below for details regarding ad sizes and rates.

Ad Sizes

Membership Pricing:

Frequency of Ad (Months)

Full page 3 columns (6 15/16”) wide x 9 1/4” deep Half page (vertical) 2 columns (4 9/16”) wide x 9 1/4” deep Half page (horizontal) 3 columns (6 15/16”) wide x 4 1/2” deep Quarter page 2 columns (4 9/16”) wide x 3” deep Business card (vertical) 1 column (2 3/16”) wide x 4” deep Business card (horizontal) 2 columns (4 9/16”) wide x 2” deep

Ad Sizes

Non-Membership Pricing:

1-4

$800.00/mo $525.00/mo $500.00/mo $300.00/mo $150.00/mo $150.00/mo

5-8

$750.00/mo $475.00/mo $450.00/mo $250.00/mo $125.00/mo $125.00/mo

9 - 12

$700.00/mo $425.00/mo $400.00/mo $200.00/mo $100.00/mo $100.00/mo

Frequency of Ad (Months)

1-4

$1,600.00/mo $1,050.00/mo $1,000.00/mo $600.00/mo $300.00/mo $300.00/mo

5-8

$1,500.00/mo $950.00/mo $900.00/mo $500.00/mo $250.00/mo $250.00/mo

9 - 12

$1,400.00/mo $850.00/mo $800.00/mo $400.00/mo $200.00/mo $250.00/mo

IOGAWV wants to assure that you get the best quality advertisement in the newsletter for your advertising dollar. To that end, we ask that you submit your color ad electronically in a 300 dpi (dots per inch) resolution PDF, TIF or EPS format. Ads saved as Word or Word Perfect documents, Excel spreadsheets or flattened PDF files will not give you a quality ad when printed professionally. If there are conversion issues with your file, our designer will contact you directly. Ads must be emailed directly to Tammy Stuck: tstuck@iogawv.com. Ads can be run each month throughout the year or in any combination of months you choose. Please note there is a price break when you commit to a longer contract. Changes to your ad copy or cancellations can be made during the duration of the contract, but must be submitted 30 days prior to the next publication. (i.e, February 1st for the March issue). Please complete the information requested below and return this page, with payment, to IOGA News, IOGAWV, 300 Summers Street Suite 820, Charleston, WV 25301; email tstuck@iogawv.com. Ads must be paid in full by check or credit card prior to publication. Please call the IOGAWV office at (304) 344-9867 to discuss these options.

IOGA News Contract Company Name:_______________________________________________________________________ Contact Person:______________________________________ Phone:(_____)_____________________ Billing Address:________________________________________________________________________ City:____________________ State:_____ Zip:___________ Email:_______________________________ Run my ad for ______ month(s) starting in the month of ________________________. My ad size (Check One): Please complete a separate contract for each ad you wish to run. Full Pg. ___ ½ Pg. Vertical ___ ½ Pg. Horizontal ___ ¼ Pg. ___ Bus. Card Vertical ___ Bus. Card Horizontal ___ Payment Amount Enclosed: $______________ Approved by: _________________________________________ Date: __________________________

Hugh Byers Direct Energy

Nymex Natural Gas Futures Contract 12-Month Forward Strip Average Prices Through 11/26/2018

Industry Events

Homestead Communications

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

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

Upcoming Events

January 22-23, 2019 IOGAWV Winter Meeting Marriott Town Center Hotel Charleston, WV Info: www.iogawv.com

April 8-9, 2019 Marcellus to Manfacturing Conference Waterfront Place Hotel Morgantown, WV Info: www.wvma.com April 18, 2019 SOOGA Spring Membership Meeting Marietta Shrine Club Marietta, OH Info: www.sooga.org

Winter Meeting Sponsor Form

2019 Winter Meeting Sponsor Form Marriott Town Center Hotel, Charleston January 22-23, 2019 ____________________________________________________________ Company Name ____________________________________________________________ Contact Name _____________________________________________________________ Address _____________________________________________________________ City State Zip ____________________________________________________________ Telephone Email

Sponsorship opportunities:

______ Diamond Event Sponsor $5,000 and up (call for availability • Banner hung at sponsored event • Specific signage at sponsored event • Listing on Diamond Sponsor board • Logo and name listed in event PowerPoint presentation • Logo listed in event program, web site page and newsletter ______ Platinum Sponsor $3,000 • Listing on Platinum Sponsor board • Logo and name listed in event PowerPoint presentation • Logo listed in event program, web site page and newsletter ______ Gold Sponsor $2,000 • Listing on Gold Sponsor board • Logo and name listed in event PowerPoint presentation • Logo listed in event program, web site page and newsletter ______ Silver Sponsor $1,000 • Listing on Silver Sponsor board • Logo and name listed in event PowerPoint presentation • Logo listed in event program, web site page and newsletter ______ Bronze Sponsor $500 • Listing on Bronze Sponsor board • Logo and name listed in event PowerPoint presentation • Logo listed in event program, web site page and newsletter Please return this form to IOGAWV, address below, by January 4, 2019. Be sure to email a high resolution (300-dpi minimum) version of your company’s color logo and a link to your web site to lmillersmith@iogawv.com.

Thank you for your continued support! www.iogawv.com

300 Summers Street | Suite 820 | Charleston, WV | 25301 P: (304) 344-9867 F: (304) 344-5836

Winter Meeting Registration Form

2019 Winter Meeting Registration Marriott Town Center Hotel, Charleston January 22-23, 2019 ________________________________________________________________________ Company Name ________________________________________________________________________ Address _________________________________________________________________________ City State Zip ________________________________________________________________________ Telephone ________________________________________________________________________ Participant’s Name Member? ❏ Yes ❏ No _________________________________________________________________________ Email _________________________________________________________________________ Participant’s Name Member? ❏ Yes ❏ No _______________________________________________________________________ Email ________________________________________________________________________ Participant’s Name Member? ❏ Yes ❏ No _________________________________________________________________________ Email Please call the IOGAWV Office if you need a vegetarian meal. Registration (fees cover all Winter Meeting activities except the GOpac Reception) _____ Producers’ Issues Kickoff Breakfast Meeting ONLY (for member Producers ONLY) (Tuesday, January 23) FREE! _____ technical session ONLY (Tuesday, January 23) FREE! _____ member discounted rate of $225/person for all Wednesday events ($275 after 1/5/18) _____ non-member rate of $380/person for all Wednesday events ($450 after 1/5/18) _____ student/faculty registration fee of $45/person for all Wednesday events ($70 after 1/5/18) _____ spouse rate of $110/person ($175 after 1/5/18) _____ TOTAL DUE Please mail registration with payment by January 4, 2019, to: 300 Summers Street, Suite 820, Charleston, WV 25301. NO REFUNDS AFTER JANUARY 4, 2019 For additional information, call Lori Milller Smith at (304) 344-9867. www.iogawv.com

300 Summers Street | Suite 820 | Charleston, WV | 25301 P: (304) 344-9867 F: (304) 344-5836

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

Presort Standard U.S. Postage PAID Charleston, WV 25312 Permit No. 175