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NEWS
March 2019
IOGAWV Safety Seminar Set for April 23 Make plans now to attend this important seminar on April 23 sponsored by IOGAWV and the WVU Extension Service at the Days Inn in Flatwoods. This hands-on course provides knowledge of how to use, create, implement and control Job Safety Analysis (JSA’s) for the worksite. Completing a JSA is critical for ensuring hazards are identified and corrected before the beginning of the task. During the course, participants will learn how to prioritize tasks based on risk, break down each job task, identify hazards, complete a JSA and also critique previously
completed JSA’s for quality. What is a Job Safety Analysis? A job safety analysis (JSA) is a procedure which helps integrate accepted safety and health principles and practices into a particular task or job operation. In a JSA, each basic step of the job is to identify potential hazards and to recommend the safest way to do the job. Other terms used to describe this procedure are job hazard analysis (JHA) and job hazard breakdown. What are the benefits of doing a Job Safety Analysis? Initial benefits from developing a JSA will become clear in the prepa-
ration stage. The analysis process may identify previously undetected hazards and increase the job knowledge of those particiTodd Tetrick pating. Safety Safety Committee and health Co-chair awareness and communication between workers and supervisors is improved, and acceptance of safe work procedures is promoted. A JSA, or better still, JSA Seminar Continued on page 6
Diversified CEO Hutson Leading by Example Editor’s Note: The story was originally written and printed by the Connect-Bridgeport Staff on February 21, 2019. Rusty and Kimberly Hutson are leading by example with a recent gift to Fairmont State University. The couple, both Fairmont State University alumni and Harrison County, West Virginia natives, have committed $400,000 to establish the Rusty & Kimberly Hutson Family Endowed Scholarship for the benefit of School of Business students. A 1991 accounting graduate and certified public accountant, Mr. Hutson spent 13 years working in the banking industry in Ohio and Alabama. In 2001, Hutson founded Diversified Gas & Oil Corporation, where he serves as Chief Executive Officer. The company began with
the purchase of 40 wells in West Virginia and now operates throughout the Appalachian Basin. Mrs. Hutson, a 1994 graduate of the nursing program, worked as a registered nurse before they settled in Birmingham, Alabama in 1999. After the move, she became a full-time mother to the couple’s four children. She serves as a mentor and example to many young mothers and she is passionate about realizing their true value in today’s society. Mr. Hutson was influenced by many professors at Fairmont State, but he credits Glenn Harman with shaping his work ethic. “Harman was the hardest instructor I ever had, but he taught his students that if they really want something, they
Shown, from right, are Rusty and Kimberly Hutson, with one of their four children. have to work for it. I appreciate him for that.” Hutson’s advice to students is to ask themselves each day, “What can I do to be better?” “If you do Leading Example Continued on page 6
INSIDE
Brett Loflin / 2 In Memoriam / 3 Charlie Burd / 4 Mark Clark / 5 Hugh Byers / 7 Greg Kozera / 9 Mike McCown / 11, 16 Mark Taylor / 13 Industry Events / 15 Scholarship Forms / 17-20 Safety Seminar Registration Form / 21
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Brett Loflin IOGAWV President
Seeing a Few Positive Signs Although futures prices for natural gas still remain somewhat stagnant, we continue to get better news with respect to natural gas storage levels and natural gas fired power burn in the United States. At the time of this writing, natural gas withdrawals from storage for the prior week were 177 Bcf. According to the Energy Information Administration, that week surpassed the expected draw by 12 Bcf. Natural gas in storage decreased to 1.705 Tcf which is well below the year ago storage volume and 17.5% less than the five-year average. The positive impact on near-term price is welcome. Liquefied natural gas (LNG) export volumes continue to increase and, with construction of several additional LNG export terminals in the works, one can assume LNG exports will continue to increase. In addition to record withdrawals from storage that we have seen this winter, according to a Platts article, “Through mid-February, US power burn has averaged over 26.4 Bcf/d, making month-to-date generator demand the highest on record for February. Although this too is good news, West Virginia still only generates a little over 1% of its electricity from natural gas fired power plants. IOGAWV will be meeting with legislators throughout the next year not only to educate our elected representatives on the benefits of an “all of the above” energy strategy, but also to get feedback as to what can be done to make West Virginia more competitive with our surrounding states. Although two of the major
pipelines that will move natural gas produced in West Virginia, Mountain Valley and the Atlantic Coast pipeline, have been delayed due to lawsuits brought by environmental groups, both pipelines are expected to be built and will provide much needed take-away capacity. In fact, on a positive note, it was reported in the IOGAWV Commerce Committee that MVP received a favorable ruling from the U.S. Court of Appeals for the DC Circuit upholding FERC’s approval supporting the need for the project, confirming the use of eminent domain and the court also held that, “FERC’s conclusion that downstream greenhouse gas emissions resulting from combustion of gas transported by the pipeline were not reasonably foreseeable indirect effects under National Environmental Policy Act (NEPA) and FERC did not err in any event because it provided an estimate of the upper bound of emissions and gave several reasons why the Social Cost of Carbon tool is not an appropriate measure of project-level climate change impacts. That is all NEPA requires.” Although the ruling is subject to appeal to the US Supreme Court it is a big win for the pipeline developers. It is imperative that we be able to move our natural gas to other markets as well as do everything in our power to promote additional manufacturing and industry within our borders. In addition, we hope to have mostly good news coming out of the legislative session. The marginal well severance tax exemption bill, HB 267,3 as of this writing has
passed the House and will soon be taken up by the Senate. As you may recall, this bill eliminates the 5% severance tax on wells producing less than 60 mcf/day or less than 10 barrels of oil per day and replaces the severance tax with a 2.5% Positive Signs Continued on page 6
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
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In Memoriam
Former IOGAWV Board Member Jim Weekley Passed in February Former IOGAWV Board Member James Lester "Jim" Weekley, 84, of Scott Depot, passed away Friday, February 8, 2019. Born December 15, 1934, in Senecaville, Ohio, he was the son of the late Lester and Christena Steele Weekley. He was also preceded in death by his sister, Kay Russell, and his grandson, Jason Legg. Jim received his petroleum engineering degree from Marietta College and was a former director of drilling and storage with Columbia Gas. He also had served as president of Peake Energy. He served two terms on the Board of Directors of IOGAWV, beginning in 1986 and 1994, and he was honored as WV Oil and Gas Man of the Year in 1996. In addition, he was a Mason. Being of the Methodist faith, Jim and his wife attended St. John United Methodist Church, Winfield United Methodist Church, as well
as the former Winfield Community Church. He loved to golf and fish and was known for his woodworking skills. He was also a very loving husband, father, grandfather and great-grandfather. Surviving are his wife of 64 years, Joy L. Weekley; children, Diane and Ray Cobb of Durham, NC, Jody and Greg Legg of Poca, Tracy and Susan Weekley of Sissonville, Kevin and Terrie Weekley of Monroe, NC; grandchildren, Phil Cobb (Stacey), Ryan Cobb (Rachel), Lindsay Houbre (Michael), Karey Stolle (Mark), Amanda Petry, Morgan Lee, Justin Weekley (Kathleen), Megan Thomas (Scott), Kaitlyn Poorman (Matthew), Allyson Weekley (Michael), Melissa, Shawn, Michael and Daniel Sullivan; and 18 greatgrandchildren. You may visit his tribute page at ChapmanFuneralHomes.com to share your memories of Jim with the family.
In lieu of flowers, memorial contributions may be made to either the Alzheimer's Association, 1601 Second Avenue, Charleston, WV 25387 or to Hospice Care, 1606 Kanawha Blvd., West, Charleston, WV 25387.
In Memoriam
Former IOGAWV Executive Director Passes Former IOGAWV Executive Director Michael D. Herron, 67, of Weston, formerly of Charleston, died peacefully Wednesday, February 20, 2019. Mike loved West "By God" Virginia and was an avid Mountaineer fan. He was a freelance reporter of WVU sports for The Associated Press of Charleston. He was a host of the Mountain Sports Hotline
Radio Talk Show and a contributor to the Blue Lot Message Board. During his career, he served as the Tourism Director for West Virginia, Vice President of Charles Ryan Associates, Executive Director of the WV Independent Oil and Gas Association, and President of Advantage Valley. Recently, he was the Director of the Lewis County Economic Development Authority.
Mike was loved dearly by his family and many friends, all of whom enjoyed his wonderful sense of humor. In lieu of flowers, please send donations to the Elkins First United Methodist Church or the WVU Foundation.
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Charlie Burd Executive Director, IOGAWV
From the Burd’s Nest: Finish Line in Sight As you receive this newsletter there will be only be a few days remaining in the track meet we call the 2019 West Virginia Legislative Session. As of this writing it is still impossible to predict how legislation crucial to our industry, and business in general, will be decided. In fact, I can say with all surety until that gavel hits at midnight Saturday, March 9. While my April article will detail all the important happenings—be sure to watch your email for more timely reports and information. For now, however, let’s just generalize where we’re at and summarize some of the issues of importance to our producer members—which make them important all members. I will start by giving YOUR lobbying team a shout out for the good work and extremely long hours they put in at the Capitol and on the phone after hours and weekends—you truly must be there to appreciate their dedication to the industry. First, Phil Reale: Phil is an IOGAWV past president and he served as chairman of former West Virginia Governor Gaston Caperton’s transition team and later as Governor Caperton’s first Chief of Staff. Next us is Jim Fealy. Jim is a former member of the West Virginia House of Delegates and economic development specialist. Like Phil, IOGAWV greatly benefit from Jim’s close working relationships with legislators and executive agency staff members, as well as his knowledge of the legislative process. Both Phil and Jimmy have been with us since the 2008 Legislative session. The newest member of your lobbying team is Daniel Hall. Daniel, who became part of our team on January
1, 2019, is also a former House of Delegate member and State Senator and knows his way to every corner of the State Capitol. A give you my absolute assurance there is no other industry or association better positioned and represented than IOGAWV. A tremendous amount of thank goes to your executive committee of Brett Loflin, President; Kevin Ellis, VP, Ben Sullivan, Secretary/ Treasurer; and Marc Monteleone, Immediate Past President for their giving of their time and expertise to review and make recommendations on dozens of pieces of legislation. In addition, our efforts could nearly be rendered useless without the seer advise from our legal team that includes IOGAWV corporate counsel George Patterson, Bowles Rice LLP; environmental counsel Mark Clark, Spilman, Thomas & Battle, PLLC; and from Doug Douglass independent legal counsel with Reserve Oil & Gas. The best trifecta anywhere!! As we begin the Week of March 4, we have already cleared the Wednesday, February 27 “crossover” day where bills must be passed out of their originating house. IOGAWV is now focused on those major pieces of legislation of importance to the industry. As we round turn three and can see the finish line, here is where we stand on about a half dozen of our most important targets: Committee Substitute for House Bill 2661: This industry bill seeks to promote the continued production of natural gas from local wells and provides for the natural gas utility to recover costs, including of converting customers to alterna-
tive fuel sources. The bill permits a natural gas utility to make a request for proposal for incentivizing gas drilling where dependable, lowerpriced supplies of natural gas are not readily available. The bill also permits a natural gas utility to recover the cost reasonably necessary to convert a customer to an alternate fuel source when gas service to that customer has been abandoned. The legislation passed the House 970-3 on February 11 and currently sits in the Senate Energy, Industry and Mining Committee for further debate. IOGAWV does not oppose this legislation. Committee Substitute for House Bill 2673: This is the IOGAWV legislation to increase the marginal well exemptions from 5mcf/d to 60mcf/d and .5bbl/d to 10bbl/d passed in the House on February 14 and was communicated to the Senate where it was assigned to Senate Energy, Industry and Mining Committee and then to the Finance Committee. As of this writing, it has passed Senate EIM Committee with amendments that strengthen the bill; has passed first reading on the Senate floor and rests on second reading in the Senate Finance committee. One last clarifying amendment will be attempted. Committee Substitute for House Bill 2802: Partition of Heirs bill attempts to define terms and provides for a court hearing to determine if the partition action concerns heirs’ property and the manner in which such property and interests may be sold. The Partition legislation has been reported out of House Judiciary Committee as amended, Burd’s Nest Continued on page 8
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Mark D. Clark Spilman Thomas & Battle, PLLC
WVDEP Issues General Water Pollution Control Permit
On January 30, 2019, the West Virginia Department of Environmental Protection ("WVDEP") issued General Water Pollution Control Permit No. WV0116815 for stormwater discharges associated with oil and gas-related construction activities (“the Oil and Gas General Permit” or "2019 Permit"). The Oil and Gas General Permit authorizes discharge of stormwater runoff from oil and gas field construction activities or operations such as exploration, production, processing or treatment
operations or transmission facilities, disturbing one acre or greater of land area. However, the permit does not apply to construction activities "within the limit of disturbance authorized by an active permit or certification issued by the Department of Environmental Protection’s Office of Oil and Gas." Thus, construction activities related to oil and gas well work permits are not subject to the previous or 2019 Permit. The stated effective date of the 2019 Permit was March 1, 2019, but that date is subject to a motion for stay described below. The 2013 stormwater general permit related to oil and gas construction activities expired in May 2018, and was extended by WVDEP through December 31, 2018 and then extended again through March 31, 2019 (the "2013 Permit"). As reported in the October 2018 IOGA News, the draft permit was the subject of a public hearing on October 11, 2018, and public comments were accepted until
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October 21, 2018. IOGA, jointly with the West Virginia Oil and Natural Gas Association ("WVONGA"), timely filed comments on the draft permit objecting to many of the more onerous revisions, including the elimination of the streamlined "notice of intent" registration option for smaller projects disturbing only 1 to 3 acres of land. Unfortunately, WVDEP rejected all of the more substantive comments requesting changes to the draft permit. Because the revised requirements in the 2019 Permit are so much more burdensome and costly than the 2013 Permit, IOGA, along with WVONGA, elected to appeal many of the unnecessary and unreasonable terms of the 2019 Permit to the West Virginia Environmental Quality Board ("EQB") on February 28, 2019. In addition, the appellants moved for a stay of the applicability of provisions of the 2019 Permit until the EQB has the opportunity to decide the appeal. The Motion for Stay seeks to safeguard member companies' due process rights and prevent the unjust hardship of depriving them of a meaningful right to present objections. The primary objections raised in the appeal are that: 1. Permittees who registered under the 2013 Permit prior to March 1, 2018 are required to re-apply for coverage under the 2019 Permit. 2. Permittees who obtained coverage under the 2013 Permit prior to March 1, 2018, but modified the 2013 Permit thereafter, have WVDEP Permit Continued on page 12
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Positive Signs Continued from page 1 fee that will generate funds to go towards plugging orphan wells in the state. This results in a 50% savings to the operator of those marginal wells. The total exemption for wells producing 5 mcf or less per day or 0.5 bbls of oil per day remains intact. A deep well spacing bill that
modernizes the spacing restrictions for deep horizontal wells passed the house with a 100 – 0 vote and has moved over for consideration in the Senate. As well as promoting legislation that will benefit our industry and the state, IOGAWV’s lobby team is diligently monitor-
ing attempts by some legislators to get bills passed that are a detriment to not only our industry but West Virginia business as a whole. Obviously we will have a full report in next month’s newsletter on all of the enacted legislation.
in completing comprehensive accident investigations. AGENDA
Hazards Using a Risk Assessment Matrix • Group Activities Developing a JSA for an Industry Task Please see the registration form on page 21 or visit www.iogawv. com to reserve your place at this important seminar.
JSA Seminar Continued from page 1
a written work procedure based on it, can form the basis for regular contact between supervisors and workers. It can serve as a teaching aid for initial job training and as a briefing guide for infrequent jobs. It may be used as a standard for health and safety inspections or observations. In particular, a JSA will assist
• The Benefits of doing a JSA • The Basic Steps for Completing a JSA • Identify and Prioritize
Leading by Example Continued from page 1
that,” he said, “you are going to be successful.” After a recent visit to campus, the Hutsons decided it was time to give back to the university. They want this gift to provide support for local high school students who might not otherwise be able to attend college. They also want to encourage fellow alumni to support Fairmont State University. “Getting involved with Fairmont State and giving back to the University is the best way to provide hope to deserving students in local high schools,” said Mr. Hutson. When asked how the School of
Business and its faculty are impacted by donors who support their program, Interim Dean Dr. Timothy Oxley said, “The generosity of former alumni, who are moved to contribute to such worthy causes as helping others achieve their educational goals, reminds each faculty member of the noble purpose with which we have been entrusted. Often the impact we as faculty have on students is not always readily apparent at the end of a student's degree program, but comes much later in life when, as successful alumni, they offer others a way through their
generosity. The lifelong impressions and impacts we make on all students extends far beyond their classroom experiences.” Beginning in the fall term of 2019, the Rusty & Kimberly Hutson Family Endowed Scholarship will provide financial support to a full-time School of Business student from a Harrison County, West Virginia high school. Preference will be given to those from Lincoln High School in Shinnston. This award is available for renewal for four years, provided the recipient maintains a minimum 3.0 G.P.A.
$2.00
NG 12M NG 24M NG 36M
Bloomberg Finance L.P.; CME; For Informational Purposes Only 2/22/2019
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Hugh Byers Direct Energy
Nymex Natural Gas Futures Contract 12-Month Forward Strip Average Prices Through 2/26/2019
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Burd’s Nest Continued from page 1 has passed first reading and is on second reading Monday, February 25. As of this writing, we continue to work with the committee chairman and members to gain more favorable treatment. A floor amendment is pending for the Monday House Floor Session. IOGAWV does not support this legislation as it is currently written. Committee Substitute for House Bill 2834: This is the deep well spacing bill that seeks to encourage and improve efficiencies in the development of deeper shale formations such as the Utica by updating regulatory impediments established for traditional vertical deep well production. The bill modernizes decades old spacing requirements for deep wells that are not now applicable to horizontally drilled deep wells on multi-well pads. This bill seeks to reduce the lateral spacing to 1,000 feet between deep wells operated by different operators or require a setback of more than 500 feet from a unit boundary or lease that divides operators. In addition, the Wv Oil and Gas Conservation Commission may not establish minimum well setback or spacing between deep wells operated by the same operator, or multiple operators who agree in writing to appropriate deep well spacing intended to increase production efficiencies. The legislation passed the House 100-0 on February 18, and now rests in Senate EIM for further consideration. IOGAWV does not oppose this legislation. Committee Substitute for Senate Bill 541: This bill that originally sought to establish priorities for expenditures for plugging abandoned gas or oil wells was negatively amended to include well bonding and plugging assurances. This bill has passed the Senate Energy, Industry and Mining Committee,
has been read a first time and sits on second reading in Senate Judiciary Committee. IOGAWV opposes this legislation. Committee Substitute for Senate Bill 665: This Senate Energy, Industry and Mining Committee Originating Bill seeks to allow for expedited oil and gas well permitting and expedited oil and gas well permit modifications upon the payment of applicable expedited fees. The legislation has passed first and second readings and will be up for passage Monday, February 25. The fees, which virtually double the current permitting fees associated
with getting expedited consideration are being reviewed and some believe they are excessive. A floor amendment to reduce those fees failed on second reading. IOGAWV supports this legislation. As I close, I want to give special thanks to each of the members who have been helpful to supply information and to respond with calls and emails on important matters. With just under two weeks to go we will likely see more twists and turns that will affect IOGAWV and its members—some good and some bad. Please keep a watchful eye for more calls to action on legislative issues.
Please watch for “IOGA Produces” alerts relating to legislative activities. We will ask when we need YOUR help!
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Greg Kozera Learned Leadership LLC
Tell Them the Truth A couple of weeks ago we spent some family time in Dillon, Colorado, skiing. I began skiing years ago when my wife and I were leaders of our church’s high school youth group. The kids loved to snow ski in the winter. I decided that I wanted to be on the slopes with them instead of just hanging around the lodge so I took a lesson and caught the bug. Skiing became a family thing for all three of our kids and even our oldest grandson. My wife, Lynnda, has been content to hang out in the lodge by the fire with a good book. We’ve had lots of great conversations over the years just riding up the mountain on the chair lift. Twelve years ago, our daughter invited us to go with her and her husband on a trip to Utah to ski powder. That trip got me hooked on powder and skiing out west. Most of our trips since have been to Colorado. After Lynnda had a serious car accident in 2012 the ski trips ended in favor of Florida trips where it is warm. This year’s trip was important. I was concerned that if I didn’t get back up on skis, I may never ski again. My plan was simple. Go slow and stay on the green (easy) slopes. I should have known better. After a few runs Dannielle convinced me to try one of the blue (intermediate) slopes. Wow. It was awesome. Thanks to my daughter’s encouragement, I’m back skiing. I also learned on this year’s trip that Colorado’s governor wants to transition Colorado to 100% renewable energy by 2040. As it worked out, I was also a radio guest on KLZ in Denver that week. The first question was, “What does our
Governor’s plan to transition to 100% renewables mean to you?” I responded, “It means my family will need to find another place to ski because Colorado’s commercial ski industry will be out of business.” I was serious. There won’t be dependable electricity 24/7 to run the ski lifts or electric cars and trains to take us to the mountains. We won’t be able to get to Denver unless we go on steam engine or horseback. A jet airplane requires petrochemicals to build it and petroleum to fuel it. The skis I rent, my helmet, boots and clothing all come from petrochemicals. Most people don’t understand the big picture of what having abundant natural gas, oil and natural gas liquids mean. They don’t understand the source of the products they use every day. Here are some points you can use to help the people you come in contact with to understand. • Oil, gas and natural gas liquids are more than transportation fuels. They are the feed stock for petrochemicals which create modern life as we know it. Computers, cell phones, pharmaceuticals, medical equipment, clothing, furniture and building materials. Electric cars, solar panels and modern windmills can’t exist without petrochemicals from oil, gas, NGLs and hydraulic fracturing. • Renewables make only one product, electricity, and they don’t do that very efficiently. • There isn’t a dependable back up for renewables other than natural gas. Colorado’s governor wants to get rid of natural gas
in favor of batteries which just happen to require petrochemicals. What an inconvenient truth! • Renewables are at their best when we need them least, like during the day. When it is dark and cold, like during the recent below zero weather, people would have frozen to death without natural gas and coal. No amount of batteries would have kept the lights and heat on. • Renewables take up a lot of space. To replace the gas well on my street on one acre would require 1,100 acres of windmills or solar panels. Math may be a weakness of the “renewable” folks. Governor Brown of California implied on 60 Minutes last summer that 62 acres of solar panels (about 5 MW at best) could replace a 3000-MW nuclear power plant. Sadly, the Governor thinks the weather is causing the “Brown” outs they are having. • The Governor of Colorado claims renewables will save people in Colorado 10% on their energy costs. Recent studies show just the opposite. Consumers have saved thousands on their heating and electricity bills because of cheap, abundant natural gas. Electricity savings would have been even greater if renewables were not in the mix. People in California pay $0.25 per kwh for electricity and New England isn’t far behind. Europe is in a similar situation. They committed to renewables Tell Truth Continued on page 10
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Tell Truth
Continued from page 9
and banned “fracking”. They are now buying two 48-inch pipelines full of expensive “fracked” gas from Gazprom (Russia) at a price 3-4 times higher than US consumers pay. Reality shows both governors are doing their citizens an injustice. • If these governors and others like them succeed in destroying the American oil and natural gas industry, by the time the public realizes what they have done it will be too late. How many people will have to freeze in the dark or die because modern medicine was pushed back 100 years? This is the future unless we and others we shine the light of truth on the fantasy world we hear about in most media. • Does the “green” renewable movement actually help the environment? We know from EIA data that natural gas has reduced CO2 in the USA and made our air cleaner. We know that natural gas, not renewables, is making the air cleaner in places like New Delhi, India. The other problem with renewables is that they all require rare earth metals. Almost all our rare earth metals come from China. The process to refine and produce rare earth metals pollutes the water, soil and air in China. It is also creating radioactive lakes as per an MIT report. How green are windmills and solar panels if to manufacture them people in China are dying or getting sick from rare earth metal pollution? There is hope. I did two radio shows for the University of Colorado student radio station. The student host understood and commented to his student listeners, “We don’t like wells or petrochemical plants but we do like our climbing ropes, cars and cell phones. This gentleman makes
a good point. Doesn’t it make sense for us to make these things here under our environmental laws and create American jobs rather than having them made in places like China?” Americans need to know the truth. Who is going to tell them? You know the truth. You have a network. A typical comment I hear is, “Why haven’t we heard this before?” If not us, then who? We can no longer sit back and allow lies, half-truths
and ignorance about the oil and gas industry continue. The truth is powerful but only if people know the truth. We need to tell people the truth. The American oil and gas industry has done incredible things. The USA is now the number one oil and gas producer in the world. Be proud. Our future isn’t behind us. It is ahead of us. It happens by what we all do day by day.
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Mike McCown Communication and Education Committee Chair
2019 IOGAWV Buyer’s Guide Now Available Online The Independent Oil and Gas Association of West Virginia (“IOGAWV”) has announced that the exclusive IOGAWV Buyers’ Guide (the “Guide”) — the premier resource of relevant products and services for oil and gas professionals — is now available at the IOGAWV website at www.iogawv.com. IOGAWV partnered with Overland Park, Kan.-based Strategic Value Media, a leading nationwide provider of print and digital media solutions for national, state and local trade and membership associations, to produce the Guide. IOGAWV is proud to provide its members with this useful and easily accessible year-
round resource. “This comprehensive Guide offers access to a vast network of industry suppliers,” said Charlie Burd, Executive Director of IOGAWV. “We are very pleased with the fine work SVM has done with this Guide, which we anticipate will now greatly assist industry professionals in making educated purchasing decisions throughout the year. The response to this Guide by the industry has been nothing short of outstanding.” The 2019 version of the Guide features updated and expanded company and product listings, in addition to other valuable information relating to the oil and gas industry.
The Guide provides IOGAWV members and other industry professionals with an efficient way to browse for goods and services. The Guide also offers oil and gas suppliers and companies exceptional visibility by showcasing their products and services to a targeted, industry-specific buyer group. If your company or business has not yet taken advantage of this exceptional opportunity to highlight your products and services in the Guide, it is not too late! To learn more about advertising your products or services in this exclusive Guide, please email iogawv-advertise@svmmedia.com.
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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WVDEP Permit Continued from page 5 not been told whether they must certify compliance with the 2019 Permit or re-apply for registration under the 2019 Permit. 3. The 2019 Permit requires a vague compliance with water quality standards, instead of specifying that compliance with Best Management Practices ("BMPs") constitutes compliance with water quality standards. 4. The 2019 Permit should not impose a requirement to submit groundwater protection plans pursuant to the Groundwater Protection Act, W. Va. Code 2212-1 et seq. and the regulations promulgated thereunder, as part of the application process. 5. "Enhanced BMPs" requirements for almost all earth disturbing activities are unnecessary, when regular BMPs would be sufficient. 6. Requiring inspections at construction sites within 24 hours of every precipitation event of 0.25 inches is unduly burdensome and unreasonable. 7. Imposing unreasonably short deadlines and requiring needless seeding and mulching requirements is unduly burdensome. 8. Applications for registrations under the 2019 Permit are due an excessive amount of time before permit coverage is needed, and there should be a notice of intent procedure for small construction projects that does not require an application. 9. Access roads that are not constructed but simply used or maintained should not be regulated under the 2019 Permit, because earth disturbing activities are non-existent or insignificant. 10. The term "common plan of development" should be amended
to clarify that activities at noncontiguous properties are not part of a common plan of development and, thus, not subject to the 2019 Permit as long as the area disturbed is less than 1 acre. 11. Requiring reporting of "critical slope failures" to the Spill Reporting Hotline is inappropriate because slope issues do not necessarily impact waters of the state. 12. Prohibiting maximum slope grades in excess of 15% for roads is unreasonable and impossible in some projects. 13. Establishing minimum vegetative buffers of 50 feet is unreasonable and impossible in many projects. 14. Requiring the designation of specific individuals as having authority to sign inspection
reports is unreasonable because the inspector performing the inspection is the best person to sign the report. The motion for stay is required to be addressed by the EQB during the first week of March 2019 and then the EQB will schedule a hearing in the coming months to consider evidence and arguments related to the appeal. The parties to the appeal will attempt to discuss and resolve the issues in advance of a hearing to the extent possible. We are hopeful that many of the issues will be resolved without the need of a hearing. IOGA will keep you advised of the developments in this appeal as they occur. If you have any questions or suggestions for the appeal hearing, please contact Dave Yaussy at DYaussy@Spilmanlaw.com or Mark Clark at MClark@Spilmanlaw.com.
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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Mark Taylor WeatherBELL Analytics
End of Winter Recap/Early Spring Forecast while snow and cold invaded the Southwest. While March has a tendency to produce variable conditions, this March should follow the “in like a lion out like a lamb” moniker. After a brutally cold and snowy opening, we think a snap to spring will occur in mid to late March, quite a departure from our extended winter of 2018.
A historically variable winter has occurred, with bitterly cold temperatures at times and warmer periods,
especially to the southeast. February was the snowiest February on record for parts of the Upper Midwest,
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Late winter and early spring precipitation patterns also tend to point toward where early summer-like weather can occur. Dry weather in Texas and the southern Plains this winter leaves them vulnerable to early summer heat unless things change by late March.summer-like weather can occur. Dry weather in Texas and the southern Plains this winter leaves them vulnerable to early summer heat unless things change by late March.
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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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Industry Events
Mark These Coming Dates April 8-9, 2019 Marcellus to Manfacturing Conference Waterfront Place Hotel Morgantown, WV Info: www.wvma.com
Industry Intelligence. Focused Legal Perspective. HIGH-YIELDING RESULTS.
April 10, 2019 PIOGA Spring Meeting Rivers Casino Pittsburgh, PA Info: www.pioga.org June 3, 2019 Ted Cranmer Memorial Golf Outing & Steak Fry Wanango Golf Club Reno, 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
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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
CHARLESTON, WV I PITTSBURGH, PA I STATE COLLEGE, PA I WASHINGTON, DC I CANTON, OH I SEWELL, NJ
Babst_Energy_IOGA_WV_DRILL_6.9375x9.25.indd 1
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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.
Site/Civil Design, Permitting, Wetlands, Surveying, GIS/CADD Construction Monitoring, Geotechnical Engineering, Waste Management
Charleston, WV Morgantown, WV Winchester, VA
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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
20
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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Safety Seminar Registration Form
2019 Job Safety Analysis Seminar Registration Sponsored by IOGAWV and WVU Extension Service Days Inn, Flatwoods, WV April 23, 2019
_____________________________________________________________ Company Name _____________________________________________________________ Address _____________________________________________________________ City, State, Zip _____________________________________________________________ Telephone Participant
Member Y/N
Please let us know if you need a vegetarian meal. Registration Fees __________ @ $25.00 per person TOTAL $__________ Please mail registration with payment by April 16, 2019, to: IOGAWV, 300 Summers Street, Suite 820, Charleston, WV 25301 For additional information, call Lori Miller at (304) 344-9867. No refunds after April 16, 2019. For additional information, call Lori Miller 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. 110