The Voice of the
Independent Since 1959
NEWS
February 2019
2019 Gunslinger Award Honors Freshwater Editor’s Note: These are excerpts from David Haney’s presentation remarks. It was my humble honor to receive this award last year, and it’s my absolute privilege to present the award to the new recipient. The members of our industry are a hard driving bunch of entrepreneurs who have survived hard times and prospered in sometimes harsh economic environments, subordinating their natural instincts as hard driving leaders to be effective in the trade association environment. The 26 past winners of the Gunslinger Award have done just that, and this year’s winner is no exception. Gunslinger
Continued on page 13
Scott Freshwater, right, receives the 2018 Gunslinger Award from David Haney and Kevin Ellis, left.
Lori Miller Smith Honored By IOGAWV
Mike McCown, left, and Charlie Burd, right, present Lori Miller Smith with both a Lifetime Achievement Award and a scholarship in her name.
Editor’s Note: These are excerpts from Mike McCown’s presentation remarks. Some folks in this room are rolling their eyes because I’ve gone off-script, but I want to talk to you about a member of our family. I’m sure most of us in this room have dealt with Lori Miller Smith for insurance, membership or meetings like this. You may not know it, but Lori worked nearly 20 years for Cabot Oil & Gas Corporation prior to joining us. A highly respected employee within Cabot, Lori quickly progressed and ultimately was promoted to the position of Regional Administrator, where she managed all office and business-related activities and Honoring Lori Continued on page 16
INSIDE
Brett Loflin / 2 Chris Young / 3 Charlie Burd / 4 Mark Clark / 5 Don Smith / 6 Greg Kozera / 7 Sam McKown / 8 Mark Taylor / 9 Hugh Byers / 9 Heather Jewell / 10 Industry Events / 11 Ergon / 11 Winter Meeting Highlights / 12-16 Winter Meeting Sponsors / 17-19 Mike McCown / 20 Scholarship Forms / 21-24 Industry News / 25 Pierpont Community College / 30
2
Brett Loflin IOGAWV President
“Fantastic Meeting” Thanks to Presentations and Networking
First and foremost, I want to thank all who attended the IOGAWV Winter Meeting in Charleston. It was a great success and we had over 400 registered attendees. Thanks to Kevin Ellis as the program chairman and the IOGAWV staff for putting together a great lineup of technical sessions on day one and speakers on day two. I lost count of all the people who told me what a fantastic meeting it was, not only with respect to the presentations, but the networking opportunities they had with fellow industry members. Along with hearing from several company representatives, Governor Justice and Senator Manchin both spoke and pledged support for the oil and natural gas industry in West Virginia. It is clear that our elected officials realize the contribution that our industry makes and the limitless possibilities for increased manufacturing and employment opportunities that our industry is sure to provide. One of the hot topics as always was the Appalachian Storage and Trading Hub. As you have read in countless articles, the Hub is projected to create over 100,000 jobs in the Appalachian region when it is developed. I say “when” because it is not just a dream that the Hub will come to fruition, but almost a certainty according to Governor Justice and Senator Manchin. Steve Hedrick, president and CEO of the Mid-Atlantic Technology, Research & Innovation Center (MATRIC) gave an update as to the status of the Hub development. Hedrick has worked tirelessly to make the Hub
a reality. Almost two billion dollars of guaranteed federal loans have been dedicated to get the research underway that is needed to determine the best geologic areas that are conducive to natural gas liquid storage. Although a lot of research has already been done to locate storage locations, according to Hedrick, additional studies will commence soon to narrow down those areas that are most suited to serve as storage sites. Development of the Hub will serve to not only create more markets for the natural gas that is produced in West Virginia, but to attract additional ethane crackers and downstream manufacturing industries, such as petro chemical facilities, to our state. As an additional update, as I wrote in last month’s newsletter, the legislative session is upon us. Our lobby team is working hard to get sponsors for the initiatives that have been outlined previously and are monitoring hundreds of bills to ensure that we have a voice if any measures are proposed that would be detrimental to our industry. If you are asked to attend and support the oil and gas industry during the session, I encourage you to take the time to do so as it is extremely important. Sometimes it is just phone calls to educate your elected representatives that will make a difference in convincing them to support or not support a particular piece of legislation. Lastly, be proud of what we do for our communities, our state and our nation. We are close to becoming totally self-reliant with respect to energy needs in our country
which ensures security from those that would like to see our country fail.
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 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
3
Charles Young The Exponent Telegram
CEC: Employee-owned Business Model Sets Bridgeport Firm Apart Civil & Environmental Consultants, a full-service consulting engineering firm with locations across the nation, employs a diverse staff of more than 100 at its Bridgeport office. Each member of the CEC team has an equal stake in the firm’s success, as the company is owned and operated by its employees, said Dennis Miller, vice president and office lead. “We’re different. There is no other organization around that is like CEC,” he said. “We’re different because we don’t have a single owner. All of us own part of the business; we are all owners. There’s no one guy in charge; we’re all pulling the rope together. It’s a really different concept of business where you don’t have the traditional owner setup.” This unique business model means that individuals working on projects out in the field are the same people responsible for the company’s overall direction, said Steven Cain, vice president and civil practice lead. “They are engineers, surveyors; they’re ecologists. The people who do the work are the people who run the company,” he said. “That’s a little different.” Employees are required to be multifaceted and to contribute to all aspects of the company’s operations, Cain said. “Every person in the company has a responsibility to market, and everyone in the company has a responsibility to do actual work,” he said. “It’s all based off of your level and your experience. Even
down to our lowest level technician, we want everyone to feel responsible because we are an employeeowned company. The better we do as a company, the better we all do individually and financially.” The firm’s highly skilled workforce is capable of handling many different types of projects, Miller said. “We can take our clients project from concept to completion,” he said. “In this building, we have planning; we have surveying, geotechnical engineering, structural engineering, construction inspection, wastewater and utility ... every single aspect of the consulting business we do in-house.” Civil & Environmental Consultants operates more like a large family than a traditional corporate firm, Cain said. “We provide a happy atmosphere,” he said. “Once a month we have a social get-together after work, just to have pizza or hors d’oeuvres. In the summertime, we have a monthly picnic out in the parking lot that is catered. We allow our employees to attend sporting events; we have season tickets to WVU games and Fairmont State games. We try to encourage our employees to be a part of the office. There’s nothing worse than not liking where you work. Coming to work every morning when you’re not happy isn’t a good thing. So we try to create an atmosphere where everyone is happy but we still get the work done and get it done properly.” CEC’s Bridgeport office first
opened in 2012 as a very small operation, Cain said. “This office opened up with three people,” he said. “Since 2012, we’ve grown to over 100. We’re at 110 right now, with projections this year to add maybe another 25. We’d like to be, by the end of the year, at 125 or 130 people. This is a good area to be growing in. There is a lot of industry that we service.” Behind Civil & Environmental Consultants’ corporate headquarters in Pittsburgh, the Bridgeport office is the largest and fastest growing of the firm’s 23 locations, Cain said. “We’re really the second largest office in our company,” he said. “Our cooperate offices in Pittsburgh are probably in the 300 to 350 range of staff. We are probably growing faster than any office in the company.” The company plans to focus on expanding into handling public sector work, doing projects for municipalities, utility companies and public service districts, over the course of 2019, Cain said. “We’re putting the team in place. We’ve made some key hires over the last three to four months to help build that public sector group to really push to get water and wastewater type work with public utilities and municipalities,” he said. “That type of work is a piece of the site development work we do as well, so it goes hand in hand with a lot of the other work that we do.” Civil & Environmental Consultants’ office is located at 600 Marketplace Ave., Suite 200, in Bridgeport.
4
Charlie Burd Executive Director, IOGAWV
From the Burd’s Nest: “Glitter” in the Eye of the Beholder “All that is gold does not glitter” is a well-known line in a poem penned by J.R.R. Tolkien in his classic work, The Fellowship of the Ring. Simply, it means that not everything that looks good is good. A twist on this saying is “All that glitters is not gold” meaning the opposite, not everything that looks bad is bad. Ironically, as this is a perfect description of the character Aragorn (a Ranger of the North who looks dirty and unkempt, but is one of the most valiant, valuable members of the Fellowship) it is also a perfect description of the oil and natural gas industry in West Virginia. This past January 10, I had the privilege of representing IOGAWV as a panel member at the Energy Infrastructure Conference, put on by Energy Speaks and West Virginia Roundtable. The conference was designed to share information and ideas about West Virginia’s growing oil and natural gas industry. My panel, titled “Working Together to Grow the Industry,” was moderated by Jack Harrison with API and in addition to myself, included WVONGA Executive Director Anne Blankenship and WVMA President Rebecca McPhail. Harrison did an outstanding job of presenting leading questions on the state of the industry, how it has evolved, and how we might expect it to grow to the greater benefit of oil and natural gas producers, current and future employees, the State and citizens of West Virginia. For my part, I stated the oil and gas industry is served well by these three organizations working in unison to advance legislation to create a
more positive and business-friendly environment for manufacturers and other end-users of oil and natural gas. I reminded the audience that in 2008, at the onslaught of the horizontal drilling revolution in West Virginia, over 50,000 conventional wells produced just shy of 260 Bcf of natural gas and that since that time the State’s natural gas production is six times higher, growing to 1.6 Tcf for year 2018 from approximately 3,000 wells! Certainly, this level of production glows like freshly polished gold. But remember, all that is gold does not glitter. Yes, it’s true, West Virginia utility customers, manufactures and chemical companies are the benefactors of greatly reduced commodity pricing for natural gas and associated liquids and this level of production is opening new doors for natural gas as feedstock to future electric generation. It’s also true for the pipeline companies and workers who find themselves with ample work for the long term. However, while all this is wonderful for the areas of the State where this production and economic activity is occurring, not so for all. At the conference, I told the attendees that IOGAWV was in a unique position to represent the biggest of the big and smallest of the small producers. This, I believe, has made IOGAWV stronger and given it a broad-based voice and credibility with our elected legislative leaders and others. We know both sides of the equation and have adjusted our scope of concern and actions to address what best supports both conventional and non-conventional
operators. Fortunately, all that glitters is not gold. In and amongst all gold that comes from horizontal drilling and production, there can be seen a metamorphosis in the level of communication between IOGAWV, the WVDEP and operators, both conventional and non-conventional. We see more traditional operators diversifying their operations to include valued services and some even purchasing small segments of gathering systems. And, maybe most importantly, we see a Legislature that is aware of the differences and are trying to help. It is undeniable that, due to the economies of scale, many small conventional producers now find it nearly impossible to afford to drill on gas prices that remain negative to Henry Hub posted prices and in obtaining subcontractors as they once did. And, many parts of West Virginia have not seen a drilling rig in years. So keeping these older conventional shallow wells in production is key to their survival. It’s hard to imagine the turnaround could happen so quickly. This legislative session, IOGAWV is offering or supporting legislation that will help both conventional and non-conventional producers. First, is the IOGAWV marginal well exemption bill (HB-2763) that proposed to increase the marginal well threshold from 5 Mcf/day and .5 Bbl. oil/day to levels that match national standards. This will directly benefit small conventional producers and those areas of the State where these wells are and need to stay in Burd’s Nest Continued on page 28
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Mark D. Clark Spilman Thomas & Battle, PLLC
New Revised Section 401 Water Quality Certification Conditions
In January 2019, the West Virginia Department of Environmental Protection ("WVDEP") issued a public notice (undated as usual) (the "Notice") announcing proposed revisions to the 401 Water Quality Certification standard conditions and special conditions that were originally issued on April 13, 2017. The Notice explains that the proposed revisions “replace the proposed modifications to this certification that were previously noticed for public comment on August 9, 2018” ("Revised Revisions"). We reported on the initial proposed modifications in the September edition of IOGA News ("Initial Revisions"). IOGA filed comments to the Initial Revisions on September 17, 2018, seeking significant changes to the Initial Revisions. The deadline for submitting comments on the Revised Revisions to the 401 Water Quality Certification Program is March 4, 2019. The Revised Revisions represent a significant positive development for IOGA members. The Revised Revisions to WV’s 401 Water Quality Certification omit changes to Standard Condition 2. More specifically, IOGA requested withdrawal of “the proposed dramatic expansion of Standard Condition 2 to require proof of compensatory mitigation for a permitted linear activity based upon the cumulative total of all permanent stream impacts greater than 300 linear feet or causing the loss of greater than 1/10 acres of wetlands.” (emphasis added). IOGA also opposed the addition of Standard Condition 22 as unnecessary, but the Revised Revisions include a
new version of Standard Condition 22. The Revised Revisions are summarized in the Notice as follows: • Standard Condition 22 is being added to allow the waiver of any Standard or Special Conditions of 401 Water Quality Certifications applicable to Nationwide Permits. • Nationwide Permit 12 Special Condition A is being amended to reserve WVDEP’s right to require an individual water quality certification for facilities or impacts applicable under Special Condition A. • Nationwide Permit 12 Special Condition C is being amended to clarify that wet or open-cut stream crossing methods must be completed within 72 hours, and that stream crossings using dry ditch methods are exempt from the 72-hour requirement. Construction and access bridges and crossings on Section 10 rivers are also exempt from the 72-hour requirement. • Finally, Nationwide Permit 12 Special Condition L is being amended to clarify that only permanent structures are prohibited from preventing fish movements upstream or downstream. The Revised Revisions will provide WVDEP with greater flexibility in permitting pipeline construction projects while still maintaining appropriate environmental protection.
The following are the redlined Revised Revisions:
Standard Conditions of State 401 Water Quality Certification Applicable to Nationwide Permits
22. The Secretary of the West Virginia Department of Environmental Protection reserves the right, in the Secretary’s sole discretion and as provided in Section 401(a) of the Federal Water Pollution Control Act [33 U.S.C. § 1341(a)], to waive any Standard or Special Conditions of the State 401 Water Quality Certification Applicable to Nationwide Permits. Special Conditions of State 401 Water Quality Certification Applicable to Individual Nationwide Permits 12. Utility Line Activities. Nationwide Permit 12 West Virginia 401 Water Quality Certification Special Conditions: A. The Secretary of the West Virginia Department of Environmental Protection, in the Secretary’s sole discretion, reserves the right to require an individual water quality certification for any of the following facilities or impacts: Individual State Water Quality Certification is required for: i. Pipelines equal to or greater than 36 inches in diameter; ii. Pipelines crossing a Section 10 river (unless the bore is greater than 100 feet below the stream bed on the Ohio River mainstem, or greater than 50 feet below the stream bed on all other Section 10 waters); iii. Pipelines transporting hazardous materials/ substances as defined by the Section 401 Continued on page 26
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Don Smith WV Press Association
Opinion: For Many, Hope Is Dirty and Loud If you haven’t already, take time to read Ken Ward’s article: ‘Reasonably necessary’? How natural gas drilling is changing WV’s landscape: https://www.wvgazettemail.com/ news/wv_troubled_transition/ reasonably-necessary-how-naturalgas-drilling-is-changing-wv-s/ article_b9853173-0147-52b1-ad2cf3c5e293a7b1.html It’s excellent work. I thought about Ken’s article and the issues he outlined as I returned home to Marshall County during the weekend before Christmas to visit my family. My Mom lives on a 25-acre farm near Limestone, W.Va., in the natural gas region. It’s an hour north of the Wetzel County community Ken visited. My four siblings and I grew up in rural Marshall County on a beef cattle farm. Kids growing up in that region played baseball and swam each summer in Moundsville or Cameron. Many graduated high school and went on work in one of the chemical plants, power plants or coal mines in the region. Some went to college, with most of them moving away for work. Personally, I worked in two power plants, a coal mine and later, after a layoff, went to college and moved from Moundsville. My first stop wasn’t far: New Martinsville in Wetzel County, where I served as editor of the Wetzel Chronicle for several years. During my Christmas visit, while lying in bed, I heard the “ja,ja,ja,ja,ja” of air brakes throughout the night as the numerous trucks slowed at the
intersection of WV 88 and US 250, just a few hundred yards from the house. And before dark that evening, my Mother, looking toward the field across the hollow near her farm, had asked, “What’s the brown area near that gas pad they are building? Is it just how the hillside is cut away?” At 80, her vision’s not sharp. Still, it appeared she’s right about the hillside. There is a gas pad development just a few hundred yards from her backdoor and the hillside has been scraped to make room. Each day Mom is experiencing the impact of the natural gas industry. Traffic, potholes and natural gas developments are everywhere, Mom said, adding “You can’t get through Moundsville during the day for the traffic.’ Age and vision issues aside, Mom’s observations seemed pretty accurate based on my experiences during our holiday stay. Her comments, however, weren’t complaints, just facts of life. For her, and many in Marshall County, life has changed for the better since the natural gas boom. Landowners with mineral rights in Marshall County — many of whom are senior citizens like my Mom — are seeing the benefits of lease payments and, as the pipelines are extended, expect to collect royalty payments. For me, it’s comforting to know my parent is as worried about paying the taxes on her lease income as she is about meeting her monthly bills with just social security and pension
income. For many residents, the natural gas industry has meant money in the bank, a newer vehicle in the driveway and improvements to their property. Most have already banked a second round of lease payments. In the Ohio Valley, gossip during retirees’ morning coffee chats or weekly lunch gatherings often focus on neighbors’ royalty payments as much as health problems or the passing of another friend. And the natural gas developments aren’t just impacting the mineral owners. After months of working six days a week on gas pipeline construction, many local residents — including several in my family — have started winter layoffs, but there was money for Christmas, bills caught up, savings in the bank, and work expected in the early spring. The last three years of work on the pipelines have really helped many Ohio Valley residents with their finances. Stocking shelves at retail stores and working in fast food restaurants and service industries kept food on the table, but life was a struggle for families. Today, the talk in Moundsville is about work, not unemployment. You often hear this statement: “There are jobs now, if you’re not on dope.” In Marshall County, as with much of West Virginia, drug problems still keep many unemployed or underemployed. But it’s not easy work. The jobs involve manual labor, heavy equipOpinion Continued on page 29
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Greg Kozera Learned Leadership LLC
They Don’t Know What You Know During our Shale Crescent USA presentations, we were surprised to find many people in Texas and other areas didn’t know the first ethane cracker was built in Clendenin, West Virginia in the 1920’s and started the modern petrochemical industry. Our region was in the petrochemical industry while the Gulf Coast was still running cattle. It was our abundant natural gas and natural gas liquids at the time that allowed the petrochemical industry to start in West Virginia. Many of the products and processes we use today were developed here. A number of companies like Union Carbide had their Technical Centers here. Many of the retired PhD’s that worked at these Tech Centers are still living in the Kanawha Valley. When our oil and gas industry production declined in the 1970’s and 1980’s, so did our petrochemical industry. Some plants closed. Others moved to the Gulf Coast or to other parts of the world where energy was cheaper and more plentiful. The shells of some of these plants or the vacant acreage can still be seen along our rivers. The world has changed again. Thanks to the combination of horizontal drilling and hydraulic fracturing, we have been able to unlock the natural gas and natural gas liquids in reservoirs like the Marcellus and Utica. In less than 10 years, the Shale Crescent USA has gone from 3% of the nation’s natural gas supply to 30%. The USA has become the leading natural gas producer in the world. The Shale Crescent USA is now the most profitable place to build a petrochemical plant. Our region is drilling some of the most
technically sophisticated wells in the world going 8,000-10,000 feet deep vertically with horizontal laterals stretching 2-3 miles underground. When these wells are hydraulically fractured 50 or more times, a world class natural gas well is created. Environmentally, the air and water here is the cleanest I have ever seen in my lifetime. You probably know or have heard, “if the Shale Crescent USA were a country, we would be the third largest natural gas producer in the world.” In the last three weeks, I have been on 10 radio shows across the country as a guest. Two of the shows were on West Virginia stations. One, Jim Blasingame “The Small Business Advocate,” is nationally syndicated. The West Virginia stations and Blasingame, who has become a good friend, know this. They understand petrochemicals. The other stations are clueless. What I hear from the other hosts across the country is, “I had no idea we had that much gas in this country.” Sadly, most people from outside our region have no idea where their energy comes from. This includes governors in places like California and Colorado. Governor Brown indicated on CBS’s 60 Minutes last summer that a 3,000 MW nuclear power plant can be replaced by 62 acres of solar panels, about 5 MW max. He blames their brownouts on weather. I didn’t think the math was that difficult. I learned when I was on a Ft. Collins, CO radio station that the governor of Colorado wants to follow California’s lead and go to all renewables. When asked what that would mean for Colorado, I
responded. “Simple, me and a lot of other folks will need to find another state to ski.” In Virginia, this week they actually passed a bill out of committee that establishes a moratorium, effective January 1, 2020, on ALL fossil fuel projects. It will have a vote on the house floor. Sadly, the citizens of eastern Virginia have no clue what this could mean. During the VOGA Winter Meeting in Richmond, I visited with the Virginia Secretary of Commerce. I asked him, “Is Virginia becoming California East?” His response was, “I hope not.” The people I find most opposed to “fracking” and fossil fuels are in states where we don’t drill and frac. The western part of Virginia, where all of the drilling is done, has little opposition. The people in eastern Virginia, where there has never been a frac job, are terrified because of all the fake news. I taught a twoday frac school at the University of Richmond school of adult education. Once they heard the truth, they understood. Educating the public in places where no oil and gas drilling is done is a bigger job than IOGAWV or VOGA can do. We need national help. Many people just know when they turn up the thermostat or flip a light switch the heat and light appear. We know it takes fuels like natural gas and coal to make this happen. Last month we heard US Senator Manchin speak at IOGAWV in Charleston. He told us about a discussion he had with Bill Gates. Gates has been working hard on renewables and he told the Senator if we go to TheyDon’tKnow Continued on page 28
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Sam McKown Membership Committee Chair
IOGAWV Board Approved Six New Members in January Please welcome these new members approved in January: Bruce Allen, Inc. ALL Chris Knight PO Box 199 Harrisville, WV 26362 4224 Ripley Road Ripley, WV 25271 Phone: (304) 643-4613 Fax: (304) 643-4615 cknight@bruceallenpipeline.com www.bruceallenpipeline.com
Cave City Sand ALL Eric Williams 8209 Crooked Stick Lane Argyle, TX 76226 622 Collins Drive Festus, MO 63028 Phone: (636) 937-7332 eric@cavecitysand.com www.cavecitysand.com
R.L. Laughlin & Co., Inc
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NCS Multistage ALL Gavin M. Reed 5 Shannon Place Charleston, WV 25314 Cell: (304) 382-6490 greed@ncsmultistage.com www.ncsmultistage.com Parsons PRO Dan Melchior 506 Tennessee Avenue Alexandria, VA 22305 Dan.Melchior@parsons.com www.parsons.com Ranson Inspection ALL Services, LLC John E. Roberts 167 Seneca Drive Suite F Ripley, WV 25271 Phone: (304) 372-7077 Cell: (304) 482-4946 john@ransonisllc.com www.ransonisllc.com
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Fullstream Energy ALL Holdings, LLC Clint A. Soderstrom 417 Thorn St. Suite 300 Sewickley, PA 15143 Phone: (412) 528-0406 Cell: (412) 523-2980 csoderstrom@fullstreameh.com www.fullstreameh.com
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Mark Taylor WeatherBELL Analytics
WeatherBELL - End of Winter A historically cold back half of winter began around January 15. It started the week prior with a big snowstorm in the Washington D.C. area and then repeated cold shots began. All roads lead to February. While deepest absolute cold will let up by mid-February, as the sun angle gets higher and the days get longer., the greatest cold relative to normal appears poised to come down from Canada. Snow and ice will create a feedback, keeping days colder and help nighttime temperatures fall.
We do think a snap to spring will occur in mid-March, quite a departure from our extended winter of 2018.
Hugh Byers Direct Energy
Nymex Natural Gas Futures Contract 12-Month Forward Strip Average Prices Through 1/28/2019
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Heather Jewell WEN West Virginia
New WV Chapter of Women’s Energy Network Hosts Lunch with Senator Capito In early 2018, a chapter of the internationally renowned Women’s Energy Network was successfully launched in West Virginia. The Women’s Energy Network (WEN) is an organization that connects and empowers women within the energy sector through education, community involvement, leadership development and networking opportunities. Established in Houston, Texas in 1994, the Women’s Energy Network had only six members. Over the last two decades the membership has grown to over 4500 members. The West Virginia chapter had a great response after a recent membership drive at Mia Margherita’s in Bridgeport on December 5. Membership numbers have steadily climbed since the launch of the chapter with members joining from across the state. Membership numbers are expected
to keep climbing in 2019. The 2019 programming schedule will offer event locations all over West Virginia to cater to our vast geographic network of members. The chapter recently launched a Facebook page and Instagram account to help members keep up with event listings, WEN news and other opportunities. WEN West Virginia will host a luncheon with special guest speaker, Senator Shelley Moore Capito, on February 15 from 12:00 p.m. - 1:00 p.m. The event will be an educational and inspiring look into how Senator Capito became the first female Senator in West Virginia and the challenges of being a female in a
male-dominated discipline. The talk will also include updates about the energy industry across the state. This event will be sponsored by Steptoe & Johnson and held at their offices in Charleston. WEN members and non-members are all welcome and encouraged to attend this exciting event. For more information about the luncheon and to register, please visit the Women’s Energy NetworkWest Virginia’s website: https:// www.womensenergynetwork.org/ westvirginia/.
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If you would like your company, be it a large producer or a small producer, conventional or horizontal, to be featured in IOGA News, please contact IOGAWV Executive Director Charlie Burd at cburd@iogawv.com.
11
Industry Events
Add These Coming Dates to Calendars April 8-9, 2019 Marcellus to Manfacturing Conference Waterfront Place Hotel Morgantown, WV Info: www.wvma.com
June 3, 2019 Ted Cranmer Memorial Golf Outing & Steak Fry Wanango Golf Club Reno, PA Info: www.pioga.org
April 10, 2019 PIOGA Spring Meeting Rivers Casino Pittsburgh, PA Info: www.pioga.org
July 11, 2019 IOGANY 2019 Summer BBQ Peek’ n Peak Resort Clymer, NY Info: www.iogany.org
August 4-6, 2019 IOGAWV Summer Meeting The Greenbrier White Sulphur Springs, WV August 22, 2019 Divot Diggers Golf Outing & Steak Fry Tam O’Shanter Golf Club Hermitage, PA Info: www.pioga.org September 13-14, 2019 IOGAWV Sports Weekend Bridgeport Country Club and Morgantown, WV
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.
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Winter Meeting Highlights
IOGAWV 2019 Winter Meeting Outstanding The Independent Oil and Gas Association of West Virginia’s (IOGAWV) 2019 Winter Meeting took place Tuesday, Jan. 22, and Wednesday, Jan. 23, at the Marriott Town Center Hotel in Charleston, W.Va. This year’s event featured Antero Resources as its Premier Sponsor with an agenda that highlighted several timely and noteworthy topics, and an outstanding array of speakers, including Governor Jim Justice, selected leaders from some of West Virginia’s top oil and natural gas producing companies and other recognized oil and natural gas industry experts. Technical sessions Tuesday were sponsored by C & J Energy Services, Schlumberger Oilfield Services and SLS Land & Energy Services. These presentations addressed the latest in technological advancements.
“This event presents industry professionals with a wonderful opportunity to further develop their knowledge and skills so they can continue to grow and flourish,” said IOGAWV Vice President and Program Chair Kevin Ellis. IOGAWV President Brett Loflin said the two-day conference likely set a record in terms of the number of attendees, with over 400 registered
prior to the conference, who heard presentations on topics ranging from technology to new businesses coming to the state. Loflin strssed that IOGAWV represents the entire natural gas and oil industry and shared highlights of the association’s benefits, services, activities and legislative efforts. “Our goal is to provide every member with tangible benefits.”
LLC; Commerce Co-chair/Communication and Education Vice Chair Jeff Isner, Pillar Energy, LLC; and Membership Chair/Environmental Vice Chair Sam McKown, C.J. McKown & Son, Inc.
Not shown are Government Affairs Co-chair Sarah Smith, SLS Land and Energy Development, and Safety Chair Rick Toothman, Rick Toothman Consulting.
Winter Meeting Highlights The 2018-2019 board of directors gathered at the Winter Meeting. Front row (from left): SecretaryTreasurer and Finance Chair Ben Sullivan, GreyLock Energy; Vice President/Program Chair/Government Affairs Co-chair Kevin Ellis, Antero Resources Corporation; President Brett Loflin, Northeast Natural Energy LLC; Commerce Co-chair Jim Crews, MarkWest Energy Partners; Immediate Past President Marc Monteleone, Bowles Rice LLP. Back row (from left): Executive Director Charlie Burd, IOGAWV; Producer Issues Chair Jon Farmer, Arsenal Resources; Communication and Education Chair Mike McCown, LexCam Enterprises, LLC; Safety Vice Chair Todd Tetrick, EnerVest Operating, LLC; Environmental Chair Bob Radabaugh, S & R Gas Ventures,
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Winter Meeting Highlights
2018 Reclamation Award Recipients Honored The annual Oil and Gas Reclamation Awards, sponsored by the West Virginia Department of Environmental Protection’s Office of Oil and Gas, were presented during IOGAWV’s Winter Meeting. The presentation, sponsored by Ergon Oil Purchasing, featured James Martin, Chief, Office of Oil and Gas, and IOGAWV President Brett Loflin. Scores ranged from 87 to 99, depending on well count by company. “We were honored to present these awards that recognize environmental excellence,” said Loflin. “The employees, management, partners and all those affiliated with the reclamation efforts have done a wonderful job and are committed to their work in the industry as well as protecting the environment.”
2018 Reclamation Award recipients are shown here: (front row, from left) Amy Dobkin and Chris Weikle, SWN Production Company, LLC; Kevin Ellis, Antero Resources Corp.; (back row, from left) Doug Douglass, Reserve Oil & Gas; Jon Sheldon, Arsenal Resources; Roger Heldman, HG Energy; and Jim Pancake, Tug Hill Operating. Not pictured, Columbia Gas.
Gunslinger Continued from page 1 This year’s recipient has devoted countless hours and worked diligently on behalf of IOGAWV for a number of years. His devotion was vividly displayed with his purchase of a condo in Charleston, and his reason he told me for doing so, was so that he could be available when needed. He has helped to keep our association together and viable through legislative issues, regulatory negotiations, membership and budget challenges, public relations battles and tough market conditions. Coming from a long line of pioneers in the oilfields, this small-town boy literally grew up in the oil and gas industry, in a community with deep seeded roots in the foundation of IOGAWV and was truly blessed with an outstanding mentor and role model in his father, David. This West Virginia University
engineering graduate is president of Contractor Services, Inc. and vice president of Reserve Oil & Gas, Inc. He and his wife, Sara, have three
children, Derek, Ava and Isaac. It is my honor and pleasure to present the 2018 Gunslinger Award to Scott Freshwater.
Scott and Sarah Freshwater and their children Derek, Ava and Isaac, were joined by parents David and Suzanne Freshwater, sister Amy Childress and uncle Mike Rogers.
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Winter Meeting Highlights Left: C & J Energy Services technical session speakers were (above, from left) Heath Myatt, Jason Glascock, Panos Adampoulos, Scott Wallace and Aylin Ordonez. They discussed “Factory Model Approach for Successful Coil Tubing Unit Drill-out Operations in Unconventional Horizontal Wells,” Tailored Stimulation Designs for Every Horizontal Well” and “New Technology for Real Time Fracturing Dimensions.”
Right: Douglas C. McElwee, TitleMaps. com, shared information on using the IOGAWV member benefit of TitleMaps.
Left: Patrick Tyczynski of M-I SWACO, a Schlumberger company, spoke on “Beneficial Reuse of Synthetic Based Drill Cuttings - Opportunities Ahead.” He was joined by Schlumberger’s Paul Higgins.
Right: SLS Land & Energy Service employees are shown with several of their drones, the topic of their presentation. Shown from left are Greg Smith, Richard Henline, Jason Lockard, Nathan Spencer, Jason McVicker and Joe Loudin. Spencer and Loudin were the speakers.
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Winter Meeting Highlights
Left: Governor Jim Justice, center, was our keynote speaker. Other industry panelists were, from left: Rusty Hutson, Diversified Gas & Oil Corporation; Kevin Ellis, Antero Resources Corp.; Brett Loflin, Northeast Natural Energy; Michael Hager, US Methanol; and Erin Magee, Jackson Kelly and Women’s International Network.
Right: MATRIC President and CEO Steve Hedrick shared the latest information on the status of and plans for the Appalachian Storage and Trading Hub.
Left: US Senator Joe Manchin, standing, gave attendees an update on federal government activities and perspective. Other speakers joining him on the dais were, from left: Randy Rich, Pierce Atwood, LLP; Scott Potter, RBN Energy; Ellis; and Curtis Wilkerson, Orion Strategies.
Right: Tim Knoblock, James Knoblock Petroleum Consultants, gave an Appalachian Basin Roundup for 2019, while Gregory Wrightstone, right, spoke on how rising temperature and increasing CO2 are benefiting the Earth and humanity. Other speakers included Josh McCall, BP Energy Marketing and Trading, West Virginia Commerce Secretary Ed Gaunch and West Virginia DEP Secretary Austin Caperton. Congressman David McKinley appeared by video.
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Honoring Lori Continued from page 1 reported directly to the regional vice president, Baird Whitehead. He planned to join us today, but was called away. Lori Miller Smith joined the Independent Oil and Gas Association of West Virginia in 1995, and I believe she is the longest-tenured employee we’ve had. In early 2002, Lori was promoted to IOGA Office Manager where she oversees all IOGAWV office and business functions and where her specific duties include the supervision of the IOGAWV staff and the planning and execution of the Association’s annual and special meetings. In addition, Lori administers the IOGAWV insurance program, which, under her guidance and leadership, has grown to become Highmark Blue Cross Blue Shield of West Virginia’s largest fully funded insurance program in West Virginia. Lori graduated cum laude and first in her class at West Virginia State University with an undergraduate degree in marketing—which she completed while being employed full-time and raising a family. She is a 2004 graduate and life member of “Leadership West Virginia” program for select business professionals in West Virginia. Outside her direct duties, Lori actively represents IOGAWV, as a Board of Director member to the West Virginia Society of Association of Executives, as Southern Membership Chairperson for the Women’s Energy Network, as a charter member of the West Virginia Desk and Derrick Club. In addition, she was a charter member and past president of the Mountain State Desk and Derrick Club. She is a past Board Member of the Girl Scouts of Black Diamond Council and in April 2017 was presented the “Thanks Badge,” the Girl Scouts’ highest award for volunteer service.
Outside of her professional interests, Lori enjoys traveling and loves camping, movies, music and reading, and living in South Charleston with her family. She is married to Rick Smith, and keeps him in line. She has two sons, Jason and Steven, two stepchildren, Courtney and Brandon, and three grandchildren, Jackson, Haylea and Chloe. Her dedication to IOGAWV, the board, Charlie and our industry is invaluable. We hope she contributes many more years to come to us and to this industry. For her commitment and dedication, it is my honor and privilege to present Lori with this Lifetime Achievement Award on behalf of IOGAWV. But wait, there’s more. We all appreciate what she has done for us, but her passion is educating our young people and teaching them the importance of oil and gas and their future in this industry. Therefore, IOGAWV is naming one of our annual scholarships the Lori Miller Smith Scholarship in recognition of her outstanding lifetime
accomplishment in the industry, commitment to promoting STEM education for all students and inspiring young women. On behalf of us all, congratulations, Lori!
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Winter Meeting Sponsors
Thanks to Our Winter Meeting Sponsors 2019 Winter Meeting Premier Sponsor
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Winter Meeting Sponsors
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Winter Meeting Sponsors
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Mike McCown Communication and Education Committee Chair
Reminder: 2019 Scholarship Deadline is March 22, 2019 In 1997, the Independent Oil and Gas Association of West Virginia, Inc. (IOGAWV) established its Scholarship Program to reward the outstanding scholastic achievements of high school seniors who are “student employees” or whose parents work in the oil and natural gas industry for IOGAWV membership companies. Since the Scholarship Program’s inception, IOGAWV has awarded a total of $155,000 in scholarships to these very deserving students. Complete eligibility rules can be found on our web site at http://iogawv.com/about/scholarship.aspx. Here is a quick glance at those rules:
1. Applicant must be a West Virginia high school senior. 2. Applicant must be a dependent of an employee/retiree of an IOGAWV Company in good standing OR be employed by an IOGAWV Company in good standing for at least 400 hours in the past calendar year. 3. Applicant must enroll in a fouryear West Virginia college or university. 4. Applicant must compose a 300-500 word essay answering the question: “Describe your community’s perception of the oil and gas industry and explain how you would improve it.” 5. Application must be signed by
the high school counselor. 6. The completed application, including all forms on ages 21-24, along with the student’s essay, transcript and ACT scores must be postmarked no later than Friday, March 22, 2019. IOGAWV will accept applications and accompanying essays postmarked between Jan. 2, 2019 and March 22, 2019. From all the applications received, an IOGAWV Scholarship Review Committee will award a total of $10,000 in one-time only scholarships. Should you have any questions, please contact Dee Beane at 304-344-9867 or via email at dbeane@iogawv.com.
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Scholarship Application
2019 Scholarship Application Last Name
First Name
MI
Mailing Address City
State
Home Phone Number
Zip Code
Social Security Number
Date of Birth
College/University Planning to Attend
High School
High School Phone Number
My Parent/Guardian works for an IOGAWV Company Parent/Guardian Name
IOGAWV Company
I Work for an IOGAWV Company (referral letter attached) IOGAWV Company Graduation Date Awards Assembly Date & Time
If you filed a Free Application for Federal Student Aid (FAFSA), what is the amount of your Expected Family Contribution (EFC) as reported to you on the Student Aid Report (SAR)? $
.
SCHOLARSHIP ELIGIBILITY REQUIREMENTS: 1. Applicant must be a West Virginia high school senior. 2. Applicant must be a dependent of an employee/retiree of an IOGAWV Company in good standing OR be employed by an IOGAWV Company in good standing (Student employee must have worked a minimum of 400 hours. Validation of hours worked and a letter of recommendation from the employer must be provided). 3. Applicant must enroll in a four-year West Virginia college or university. 4. Applicant must compose a 300-500 word essay answering the question: “Describe your community’s perception of the Oil and Gas Industry and explain how you would improve it.” 5. Application must be signed by a high school counselor. 6. Mail the application with all activity and course forms (listed below), essay, transcript and ACT scores as instructed below. This must be postmarked no later than Friday, March 22, 2019. ATTENTION STUDENT: List your advanced placement and honors courses, organizations, volunteer and extra-curricular school activities with which you were affiliated during the four years of high school on the appropriate forms (Advanced Placement and Honors Courses, Extracurricular School Activities, Community Service and Non-School Activities - Including Employment). Please deliver these forms along with your completed application and essay to your high school counselor. ATTENTION SCHOOL COUNSELOR: Please sign this application and mail it along with the student’s essay, transcripts, ACT scores, and activity and course forms to the address below before March 22, 2019.
Student’s guidance counselor’s signature PLEASE NOTE: ONE SIDED COPIES ONLY – NO STAPLES! Independent Oil and Gas Association of West Virginia, Inc. Attention: Dee Beane 300 Summers Street Suite 820, Charleston WV 25301
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Scholarship AP/Honors Form
Advanced Placement and Honors Courses Grade Level
Course
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Scholarship School Actvities Form
Extracurricular School Activities Grade Level
Estimated Hours per Year
Activity
TOTAL HOURS
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Scholarship Community Service Form
Community Service and Non-School Activities (Including Employment) Grade Level
Estimated Hours per Year
Activity
TOTAL HOURS
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Industry News
The WVMA will host its 8th Annual Marcellus and Manufacturing Development Conference on April 8-9, 2019 at the Marriott Waterfront Place in Morgantown, WV. It isn’t too early to make your plans and to take advantage of special early registration rates. Click here to learn more, view the conference agenda, and register! Now in its eighth year, MMDC plays host to companies interested in locating new facilities or expanding existing operations in the state. This conference provides companies and industry leaders the opportunity to gain an expanded understanding of the potential for ethane and ethylene-related product development in West Virginia. The conference will feature the Natural Gas Expo, a showcase cosponsored by the West Virginia Independent Oil & Gas Association and the West Virginia Oil & Natural Gas Association. The Expo takes place during the conference and gives businesses in the oil and gas industry the opportunity to meet new customers and connect with existing clients. For more information about sponsorship opportunities or to exhibit in the Natural Gas Expo, email patty@wvma.com or call 304-342-2123. Register today
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Section 401 Continued from page 5 Toxic Substances Control Act; iv. Utility lines within wetlands that would use or consider the use of herbicides for right-of-way maintenance; v. Cumulative permanent impacts totaling greater than 200 linear feet, on one side, of any stream identified in WQC Standard Condition 18 A, B, and C herein; vi. Cumulative permanent impacts on any one perennial or intermittent stream totaling greater than 300 linear feet; vii. Pipelines carrying separated natural gas liquids, unless installed with an automated system which will indicate a sudden loss of pressure. C. Individual stream crossings using wet or open-cut methods that do not isolate the excavation area must be completed in a continuous, progressive manner and within 72 hours during seasonal normal or below normal stream flow conditions. Stream crossings using the dry ditch method are exempt from the 72-hour requirement. Construction and access bridges and crossings on the Ohio River, Kanawha River, New River, Monongahela River, and the Little Kanawha River, below the confluence with the Hughes River, Section 10 rivers are also exempt from the 72hour requirements. All stream activities shall be completed as rapidly as possible. Whatever crossing method is chosen by the permittee, the crossing should be completed as rapidly as practicable. Section 401
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Continued on page 27 Babst_Energy_IOGA_WV_DRILL_6.9375x9.25.indd 1
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Section 401 Continued from page 26
L. No permanent structure authorized by this permit shall impede or prevent fish movement upstream or downstream. Adoption of the Revised Revisions is particularly important in light of the U.S. Army Corps of Engineers ("USACE") January 18, 2019 motion asking the U.S. Court of Appeals for the 4th Circuit to voluntarily remand and vacate a Clean Water Act dredge and fill general permit issued for the Atlantic Coast Pipeline ("ACP") in West Virginia after the 4th Circuit vacated the use of the same general permit for the
Mountain Valley Pipeline ("MVP"). USACE suggests that remand is appropriate because it relied on West Virginia's 2017 waiver of its authority under section 401 to certify that the use of nationwide permit 12 for ACP would not violate water quality standards. West Virginia's waiver authority was already held to be invalid by the 4th Circuit Court of Appeals under similar circumstances in connection with the MVP project. It is possible that the granting of the requested remand will assist in getting the ACP project back on track more quickly since USACE can
better control the administrative approval process than waiting for court hearings and decisions. It is important to the oil and gas industry that these and other pipeline projects are built in order to provide additional markets for natural gas produced in West Virginia. Stayed tuned for further developments on the approval of permits for the ACP and MVP projects. If you questions or comments regarding the Proposed Rule, please contact Mark Clark at MClark@ Spilmanlaw.com or Dave Yaussy at DYaussy@Spilmanlaw.com.
Please watch for “IOGA Produces� alerts relating to legislative activities. We will ask when we need YOUR help!
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They Don’t Know Continued from page 7 renewables for our electricity we can plan on about five hours of electricity a day. I like my heat and light 24 hours a day. People can die without electricity. As I understand, Gates is looking for the energy source beyond natural gas and coal and he knows it is NOT WIND and SOLAR.
People across the country are surprised to find out almost all gas is “fracked gas” unless it comes from our bodies or a landfill. They also don’t know that hydraulic fracturing is responsible for the petrochemicals that make automobiles, cell phones and thousands of other products like windmills and solar panels possible. They had never thought about where these products come from. They did not know that oil and natural gas not only fuel our military, they are responsible for the weapons and clothing for our troops. They had never thought about what would happen if we had to depend on OPEC or Russia for the fuel and petrochemicals our military needs. My oldest son did two Navy tours in the Middle East before the US Shale Revolution. Our Navy’s job was to keep oil flowing to the USA from the Middle East. The world has now changed. All these radio hosts had ever heard about were the supposed evils of “fracking.” They did not know that hydraulic fracturing is over 70 years old. They thought it was a new thing. They did not know that all wells are fractured. Russia, Saudi Arabia and other OPEC countries must fracture their wells. Fracturing does not create the pollution they were told it does. I have lived next to wells for over 30 years. I watched them get fractured. Today they quietly produce energy to light and heat
homes and provide the petrochemicals for products we use every day. Deer graze and rabbits play at the wells in my neighborhood. The country is just beginning to understand what you have known for years. What I typically hear is, “I had no idea.” Or “We never thought about things that way before.” Many “smart people” in places like Washington, DC, New York or California still don’t
know what you know about energy and petrochemicals. We should never put ourselves down. We are doing great things because we have smart, industrious people in our industry who have common sense. Be proud.
Our future isn’t behind us. It is ahead of us. Working together we can make it a brilliant future for us and generations that will follow. It happens by what we all do day by day.
Burd’s Nest Continued from page 4
production to benefit customers and producers. Also, House Bill 2489 was introduced by House Energy and resides in committee. IOGAWV will also likely introduce a bill providing incentives to drilling in under-served areas. This bill will be similar to HB-2661 and the two may find a way to merge into a stronger bill. And lastly, IOGAWV
will work with WVONGA on a bill that addresses deep well spacing for Utica Wells. As I told the attendees at the January 10 conference, all that look like gold sometimes isn’t and things that appear old and tired can turn to gold if polished. Please stay alert to your emails for updates on these initiatives and much more.
Site/Civil Design, Permitting, Wetlands, Surveying, GIS/CADD Construction Monitoring, Geotechnical Engineering, Waste Management
Charleston, WV Morgantown, WV Winchester, VA
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Opinion Continued from page 6 ment, transportation, land reclamation and all the related jobs and industries around gas drilling and pipeline construction. Workdays can be 10 to 12 hours and workweeks are six or even seven days, but workers say the pay is worth the effort. Available rental property seems much less common than jobs as pipeline workers from other areas spend per diem on housing and camper lot rentals. Motels, restaurants, gas stations and other service industries are also benefitting from the presence of the pipeline workforce. At least one hotel owner had planned to renovate or rebuild his facility, but those plans are on hold: Why rebuild when the hotel is filled in its current condition. Muddy boots in the hallways and muddy trucks in the parking lot are acceptable if the hotel rooms are full. There is economic activity in the region. The Ohio Valley’s job market and economy has suffered since the late 1970s when steel mills, coal mines, glass plants, chemical plants and other industrial operations began closing operations and reducing work forces. It’s been decades since Northern Panhandle workers could
“quit a job today and get another one tomorrow.” More recently, the Ohio Valley experienced decades when goodpaying jobs were hard to find. Over the years, vibrant downtowns faded, turning to empty lots and vacant storefronts. Properties once well maintained became rundown, clearly needing investment. The natural gas boom has provided new revenue and opportunity. It hasn’t been easy, without problems or supported by all, as Ken’s article clearly documents. There are serious questions to address: Environmental questions, property rights issues, taxes, safety problems, industry developments issues, and legislative proposals are of concern to all West Virginians. We need to find answers. Certainly the traffic, mud and noise are real problems. However, for my family and so many others in the region, those are acceptable short-term inconveniences if the State of West Virginia and the gas industry can develop a program that means jobs, income, a responsible operation and hope for a better future for the region’s residents. How long will these pipeline jobs last? Not long enough. Residents
understand the pipeline construction jobs are short-term. They know the state must capitalize on the presence of natural gas to continue development in their region. Visits to Moundsville now routinely include a ride across the bridge to Dilly’s Bottom, Ohio, to look at the possible cracker location. Local officials will learn to manage the growth if a cracker becomes a reality and other “down stream” operations fill the Ohio River bottoms between Moundsville and New Martinsville. That region was once home to much of the Northern Panhandle’s chemical, power plant and coal facilities and served as the economic engine for the region. In those days, too, traffic was bumper to bumper at shift change and Moundsville was a busy, growing industrial community with all the related problems we are seeing today. During the last 40 years, local officials learned all about the struggles of managing the region without enough jobs or industry. For now, everyone has hope. Yes, it’s loud, dirty, inconvenient and without a guarantee, but it’s hope. For many Northern Panhandle residents, having hope is a positive change.
If you would like your company, be it a large producer or a small producer, conventional or horizontal, to be featured in IOGA News, please contact IOGAWV Executive Director Charlie Burd at cburd@iogawv.com.
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300 Summers Street, Suite 820 Charleston, WV 25301 Phone (304) 344-9867 Fax (304) 344-5836
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