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December 2020 issue of IOGA News

Page 1

The Voice of the

Independent Since 1959

NEWS

December 2020

IOGA and WVONGA Merger Approved On Thursday, December 3, the members of IOGAWV spoke loud and clear, approving the merger with the West Virginia Oil & Natural Gas Association with an approval vote of more than 85%. The new name of the association will be Gas and Oil Association of WV, Inc. (“GOWV”). It was a historic moment for IOGAWV - met with excitement by most, but trepidation by a few. Change can be difficult for many people, myself included, but I am extremely excited about the benefits and opportunities that are in the future of our merged association. We should focus on what we have gained - new members, a stronger fi-

nancial foundation, a single unified industry voice led by our beloved Charlie Burd, deep and formidable committees, a healthy members’ insurance program, and a renewed commitment to adding significant value to our members. I have had the opportunity over the last few months of the merger process to speak with many of our members. Most I previously knew, but others I met for the first time. I spent time with friends such as Pete Pauley, Doug Malcolm, Maribeth Anderson, Dennis Xander, Jeff Isner, Stan Masoner, Jim Pritt, Kevin Ellis (who we are glad to see back at Antero, helping lead that company),

and Jon Farmer. All of these folks are good men and women who provide jobs and stability to their communities, and while we didn’t always agree on Ben Sullivan everything, we all IOGA President share a deep love for our industry and the State of West Virginia and a commitment to providing safe jobs and clean, affordable energy for power generation, heating, manufacturing and downstream development, in an environMerger Continued on page 17

Industry Mourns Duncan Malcolm’s Passing Duncan Campbell Malcolm (Scotty) of Charleston, died at his home November 14, 2020, at the age of 90. He is survived by his wife of 66 years, Lura; their children, Margaret (Robert) Nichols of Annapolis, Maryland; Mary Beth (Michael) Crawford of Rocky Mount, North Carolina; Douglas (Jody) Malcolm of Charleston, West Virginia; four grandchildren and a great-granddaughter. “Duncan Malcolm was a giant in terms of helping lay the foundation of IOGA that has resulted in it being the organization it is today. Thirty-five to forty years ago, he was someone I looked up to as a leader of our organization. He had uncanny insights into what the prac-

tical impacts would be of a policy direction we might be considering, better enabling us to make the best possible decision on how to proceed,” recalled former IOGA President Phil Reale, Law Offices of Philip A. Reale. “He was so highly respected for his knowledge of all facets of the industry and all of industry benefitted from his unselfish devotion of time and effort to whatever issue of the day was before IOGA for consideration. He was, and remains in my mind, a giant in the WV oil and gas industry. Duncan and a few others of his IOGA generation were the bedrock of our organization and are responsible for much of how the organization came to be

what it is today in terms of relevance to industry members. His legacy certainly lives on in Doug who has equally carried the IOGA banner,” Reale Duncan C. Malcolm added. Malcolm, always active in IOGA, was active in the scholarship efforts and was responsible for the organization’s first named scholarship honoring Jim Gehr. Because of his dedication to IOGA and the oil and gas industry, IOGA’s board of directors has voted to create a new named scholarship, the Duncan C. Malcolm Malcolm Continued on page 14

INSIDE

Jeff Isner / 2 Mark Clark / 3 Charlie Burd / 4 Greg Kozera / 5 Industry Events / 6 Maribeth Anderson / 7 Thomas Downs / 7 Tim Bigler / 8 Kathy Hill / 9 Alex Epstein / 10 Corey Palumbo / 11 Michael Forbes / 12 Charlie Burd / 13 Scholarship Forms / 18-23


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Jeff Isner Communication and Education Committee Chair

2021 Scholarship Deadline is March 19, 2021 In 1997, the Independent Oil and Gas Association of West Virginia, Inc. (IOGA) established its Scholarship Program in an effort to become more involved in higher education in West Virginia. The Scholarship Program was specifically created to reward the outstanding scholastic achievements of high school seniors whose parents work in the oil and natural gas industry for IOGA membership companies. The Association also awards deserving high school “student employees” who have completed a required number of working hours at an IOGA member company. Beginning in 2020, two annual one-time, $1,000 scholarships are sponsored by ConServ Incorporated. They are for students who are choosing a career path that benefits the oil and gas industry in a vocational/technical field such as, but not limited to, welder, truck driver, well tender, electrician, mechanic, etc. Since the Scholarship Program’s inception, IOGAWV has awarded a total of $180,500 in scholarships to these very deserving students. Complete eligibility rules for both scholarship types begin on page 18 or at http://iogawv.com/about/ scholarship.aspx and will be sent to all member companies. The completed application, including all required forms and information, must be signed by the high school counselor and postmarked no later than March 19, 2021. IOGAWV will accept completed applications between Jan. 2, 2021 and March 19, 2021.

From all the applications received, an IOGAWV Scholarship Review Committee will award a number of one-time only scholarships. 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 IOGA Company in good standing OR be employed by an IOGA Company in good standing (Student employee must have worked a minimum of 400 hours is the past calendar year. 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 or a community college/vocational-technical school. 4. Applicant must compose an essay answering the question asked on the application form. 5. Application must be signed by the high school counselor. 6. The completed application and all documentation requested must be postmarked no later than Friday, March 19, 2021. IOGA will accept completed applications postmarked between Jan. 2 and March 19, 2021. From all the applications received, an IOGA Scholarship Review Committee will award a number of one-time only scholarships. Should you have any questions, please contact Dee Beane at 304344-9867 or dbeane@iogawv.com.

2020-2021 OFFICERS BOARD MEMBERS Ben Sullivan President Maribeth Anderson Vice President/Program Chair Jim Pritt Secretary-Treasurer/Commerce Committee Chair J. Kevin Ellis Immediate Past President Doug Douglass Director/Vice Chair Producer Issues Comm. and Finance & Taxation Comm. Jon Farmer Director/Producers Issues Committee Chair Michael Forbes Director/Membership Committee Chair David Haney Director/Safety Committee Chair Jon Hildreth Director/Membership Committee Vice Chair Jeff Isner Director/ Comm. & Educ. Comm. Chair Bob Radabaugh Director/Environmental Committee Chair Eric Vir Director/Commerce Committee Vice Chair Chris Weikle Director/ Govt. Affairs Comm. Chair Marc Monteleone Finance & Taxation Committee Chair


3

Mark Clark Spilman Thomas & Battle, PLLC

As the Regulatory Pendulum Swings As reported in the October 2020 IOGA News, President Trump’s Administration has worked diligently to rollback numerous environmental rules and regulation affecting the oil and gas industry, as well as many other industry segments. Now with the likelihood of a second term for the Trump Administration diminishing day by day toward zero percent, we look ahead to identify regulatory rollbacks that may be reversed or diminished by a President Biden Administration - thus the pendulum swings back once again. As we reported in October, it is possible that the Congressional Review Act (“CRA”) could be used to undo federal regulations that did not become final until the latter days of the Trump Administration. However, for the CRA to be available the Senate would need to be controlled by Democrats in addition to winning the White House and retaining control of the House of Representatives. Of course, Senate control rests with the outcome of two Senate runoff elections in Georgia. Those Senate seats will not be determined until the evening of January 5, 2021, at the earliest. So we will not know whether the CRA will be available at all until then. If one or both Senate seats are won by a Republican, Senate control will be retained by Republicans and the CRA will be of little or no use for effective regulatory changes. In the absence of the availability of the CRA, it is reasonable to assume that federal rules that have become effective are outside

the scope of what can be reversed without complying with the federal Administrative Procedures Act (“APA”) which is a cumbersome and time consuming endeavor. Examples of rules in this category include the U. S. Environmental Protection Agency’s (“EPA”) final rule known as the Navigable Waters Protection Rule (replacing the former Clean Water Rule) that became effective June 22, 2020 (see May and August 2020 IOGA News), and the Council on Environmental Quality rulemaking to relax National Environmental Policy Act (“NEPA”) requirements that became effective September 14, 2020 (see February and August 2020 IOGA News) and the EPA’s Oil and Natural Gas Sector: Emission Standards for New, Reconstructed, and Modified Sources Review - subparts OOOO and OOOOa that became effective September 14, 2020, and Oil and Natural Gas Sector: Emission Standards for New, Reconstructed, and Modified Sources Reconsideration that became effective November 16, 2020 (see September 2020 IOGA News). However, because all of these rules are being challenged in court by environmental organizations and state authorities as unlawful in one respect or another, the Biden Administration may be able to impact the outcomes in the various lawsuits by supporting the challengers instead of defending the rules. The Trump Administration utilized similar tactics in 2017, with limited success, to delay or undermine rules and other policy positions that were being litigated at that time.

In the absence of court orders rejecting the subject rules, the Biden Administration would need to utilize the APA to modify or reverse rules. That process would require notice of the proposed rule and opportunity for public comment before a modified or new rule could become effective. Even then court challenges by industry and states opposed to more burdensome regulations would maintain a cloud on whether the rule would be upheld. President-elect Biden has made no secret of his desire to make combating climate change a central policy for his time in office. It has been reported that he sees this policy as an all-of-government agenda including domestic, economic and foreign policy. Thus, we might anticipate that rules and policies impacting air quality, such as the emission standards for oil and gas sectors, will draw more attention than NEPA rulemaking or the Navigable Waters Protection Rule. There may even be a little good news for natural gas in that coal and oil will likely be the primary targets for regulation to combat climate change. For example, implementation of some form of the Clean Power Plan that was rescinded in September 2019, may be a priority. Similarly, the Safer Affordable Fuel-Efficient Vehicles Rule for model years 2021-2026 passenger vehicles that became effective in late June 2020, reducing the target fuel efficiency standards may be a higher priority than natural gas regulation. However, methane will certainly be on the Pendulum Continued on page 6


4

Charlie Burd Executive Director, IOGA

From the Burd’s Nest: Helping Santa Get It Done? The Thanksgiving through New Year’s Holidays have always been a very special time in the Burd household. Like many of you, I devote myself to my job. Working very long hours and weekends are commonplace in our industry. That is why taking the time to enjoy the Holidays is important. One of the joys of the Holidays is Santa--or more realistically, the wonder of Santa-- especially for our children. Remember the countless questions centered around Santa: how can he make so many toys, how can he be so many places BEFORE Christmas, how does he know who has been naughty or nice, how does he get all the toys delivered in just one night, and more!? As a parent, we all seemed to find a way to answer these questions and maintain the magic until of course, others (friends and classmates) intervened to cast that shadow of doubt. But that loss of the innocence of Santa is another matter for another time. So, the point is: how to make Santa his most real, before time runs out?! So when the questions arise: How do the reindeer fly: A sleigh with light and fuel is needed if Santa is to successfully make this annual journey. We discovered how, way back in 1948, when the world was introduced to a cartoon entitled “Rudolph the Red-Nosed Reindeer.” Then in 1964 the cartoon character was made into a short movie by the same name. Then on December 14, 1970, we see the first telecast of “Santa Claus is Coming to Town,” where we discover that flying reindeer are a quite common species of reindeer indigenous almost exclusively to the North Pole region and

were in fact given the power of flight through a healthy diet of magic acorns. Rudolph gives Santa all the light he needs and along with the other eight reindeer enough power to fly high and fast. What Route Does Santa Take: The world is a big place, but Santa takes advantage of the Earth’s time zones! Unless affected by weather patterns, Santa usually starts at the International Date Line in the Pacific Ocean and travels west. Following the Earth’s rotation around the sun, Santa visits the South Pacific first, then New Zealand and Australia. After that Japan, Asia, across to Africa, then Western Europe, Canada, the United States, Mexico, Central and South America. By doing that he gains many, many extra hours of time. Due to the different variations in time zones, international datelines and differences in sunset/sunrise times Santa will end up having over 40 hours to accomplish his mission of delivering toys and goodies to all

children around the World. In fact, many children are waking up and opening presents in some parts of the world while Santa is still delivering to children in other parts of the world. And do not forget, the reindeer have eaten their magic acorns and are part of the Christmas Magic. You can certainly trust the experts at NORAD who have the ability to track Santa on this journey. Just How Many Places: In his 40-plus-hour excursion, Santa will visit about one-half billion good little girls and boys. Thanks goodness that many children live in apartment buildings in large cities which cuts down on travel time between stops. And because he has so many “helpers” and elves to track the data, Santa simply does not make mistakes when delivering the presents and gifts. How Does Santa Know Who Is Naughty and Who Is Nice: Well, this is an interesting question with an Burd’s Nest Continued on page 11

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Greg Kozera Learned Leadership LLC

Start Success with Gratitude Whenever I see my friend, Hall of Fame Speaker and author Dr. Willie Jolley at our professional speakers’ conferences and ask, “How are you doing Willie?”, he always responds, “I’m blessed and highly favored.” Willie truly is blessed and highly favored. He has a great marriage, family and is a successful businessman. But his life has also been full of challenges and “setbacks” to use Willie’s words. It is Willie’s attitude of gratitude and his mindset that a “setback is a setup for a comeback” is responsible for his success. 2020 has been a very challenging year. In spite of this, gratitude is an attitude we all can have. A year ago, I felt blessed just to be able to get out of the house and go to the Outer Banks of North Carolina in my wheelchair. My kids pushed me in my chair on the boardwalk. I was grateful after 3 weeks in the hospital just to be with my family at the beach. This year I walked on the beach and did an 11-mile run with my daughter. I am grateful to my doctors, nurses, physical therapists, friends and family for their work, encouragement and love. My daughter put together my training schedule. She is an accountability partner and encourager. I am blessed because of the team I had and now have working with me. We all have blessings. If we aren’t careful it is easy to focus on our problems instead. Being able to walk is a blessing I never considered until I couldn’t do it, like being able to walk on the beach or go up and down a flight of stairs is a big deal. Good health is a blessing. Our children and grandchildren are blessings. Having a roof over our head and

food for dinner is a blessing. During this year of COVID we all have things we couldn’t do. I encourage you to stop reading right now and think of your own blessings. Forget about your lack and think of at least 3 things you are grateful for. If you do this at the beginning of each day your thinking change. Focusing on our lack can depress us. Focusing on all we have is empowering. We all have talents we have been given. These are also blessings. Have you discovered yours? If you aren’t sure, find a mentor, coach, friends you can trust or be part of a mastermind group. Others can many times identify our talents and strengths better than we can. The CEO of a company interested in expanding to our region recently asked us to explain to his potential finance people why the Shale Crescent USA was the best place for the expansion. We explained the energy and feed stock are essentially right under the plant in the Shale Crescent USA. Places like China must get their energy and feed stock from OPEC in the Middle East and then ship products to the USA. We explained how Shale Crescent USA is in the middle of one of the largest markets in the world. A company locating in our region is more profitable because they can build on top of their energy and feedstock AND in the middle of their customers. We have an economic opportunity that is unique in the world. Our location also gives us a low carbon footprint. The financial people were excited and quick to understand the opportunity. In the Bible is a parable of three servants who were given talents (money) by their master before he

went on a long journey. One servant was given 10 talents. By the time his master returned he had earned 10 more. Another servant was given 5 talents. He earned 5 more. These servants were praised and welcomed to share their master’s joy. They were also given greater responsibilities. The third servant out of fear, buried the one talent his master gave him and returned it to him when he returned. The master was furious calling the servant “wicked” and “lazy”. He had him thrown out into the darkness. We are blessed with oil and natural gas resources. There are people in our country who believe we should be like the wicked servant and keep our fossil fuels in the ground rather than using them to make the world better. These same people are fine with windmills, solar panels and electric cars. There is nothing wrong with any of these as long as it is understood natural gas and natural gas liquids are required to manufacture them. They also require rare earth metals from China that create radioactive lakes killing people from cancer. The batteries storing energy for electric cars require cobalt. Cobalt mining has serious environmental issues. Most of the world’s cobalt comes from the Congo. It is mined in places by children. The miners are subject to hazardous conditions and cobalt-laden dust causing lung disease. Increasing demand for renewable energy will also increase demand for all of these materials having environmental and social justice issues. They just happen to be out of site and out of mind for Americans. Gratitude Continued on page 8


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Industry Events

Upcoming Events April 19-20, 2021 SPE Regional Meeting Nemacolin Woodlands Farmington, PA Info: www.spe.org May 3-4, 2021 WVMA: MMDC Waterfront Place Morgantown, WV Info: www.wvma.org May 15-18, 2021 IOGCC Annual Business Meeting Skirvin Hilton Oklahoma City, OK Info: http://iogcc.ok.gov/events

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August 1-3, 2021 IOGAWV Summer Meeting The Greenbrier White Sulphur Springs, WV Info: www.iogawv.com

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Pendulum

Continued from page 3

target list as part of a Biden Administration effort to combat climate change. We will learn more about the details of what to expect in 2021 and beyond shortly after Inauguration Day on January 20, 2021. If you questions regarding this article, please contact Mark Clark at MClark@Spilmanlaw.com or Dave Yaussy at DYaussy@Spilmanlaw. com.

Whether it’s a state or federal regulatory matter, local land use or zoning challenge, acquisition of title and rights to land, or jointly developing midstream assets, we help solve complex legal problems in ways that favorably impact your business and bring value to your bottom line.

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7

Maribeth Anderson IOGA Vice President and Program Chair

COVID-19 Concerns Force Cancellation of Winter Meeting Unprecedented times call for unprecedented action. After much thought and deliberation, the Board of Directors of the Independent Oil and Gas Association of West Vir-

ginia (IOGA) has elected not to host the 2021 Winter Meeting in Charleston. This decision was not taken lightly and I am quite disappointed to miss our keystone event.

Rest assured, we’re planning to see you again in person at The Greenbrier August 1st through 3rd, 2021 for a great 2021 Summer Membership Meeting!

Oil and gas industry license plates available! Click here for information.

Thomas Downs WeatherBELL Analytics

WeatherBELL’s 2020 Winter Outlook Our winter forecast remains the same. Above normal temperatures, overall, are expected along the East Coast with the best chances for colder than normal weather across the Upper Midwest. We remain confident there will be another cold push sometime in early December, which may be accompanied by snow. However, the back half of the month should warm. For the heart of the winter, we expect moderating conditions as the winter goes on along the East Coast. The Upper Midwest and Canadian Prairies are the regions most likely to see extended cold snaps this winter. For more information about WeatherBELL’s services and to get the hot-off-the-press forecast updates, please visit our website www.weatherbell.com or contact us at sales@weatherbell.com.


8

Tim Bigler Direct Energy

Nymex Natural Gas Futures Contract 12-Month Forward Strip Average Prices Through 11/18/2020

Gratitude

Continued from page 5

American natural gas is cleaning the air in places like India. The USA, according to the IEA, is the only major nation meeting the Paris Agreement climate targets, even though we are not part of the agreement. Americans shouldn’t allow themselves to become dependent on nations who are continuing to increase their emissions, carbon footprint and neglect the human rights of their people. We shouldn’t give up energy independence and pay more for our gasoline and electricity in order to keep our natural gas and oil in the ground. Many Americans don’t understand the importance of a strong oil and gas industry. The USA requires economical energy and

feedstock to manufacture. What you do has created the opportunity to bring high wage manufacturing jobs back to the USA and our region. They make possible the PPE our front-line healthcare workers require, medical equipment all people need and thousands of products Americans use like cell phones. Natural gas a back-up fuel for renewables because it can provide energy 24/7. If we choose to not to use our oil and gas resources we put manufacturing jobs and lives at risk also creating the environmental disaster people want to avoid. We have people to educate. All things are possible if we start with gratitude. You have talents the

world needs. Discover them and use them. They are part of the many blessing you already have. Believe in yourself. You have the power to change the world for the better. Do it now! I believe in you.


9

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10

Alex Epstein Center for Industrial Progress

Talking Points on Energy Poverty

Tens of millions of Americans live in energy poverty--a growing problem thanks to wasteful, unreliable solar and wind infrastructure. If we want to stop making our poorest citizens choose between food and heat or medicine and electricity we must end favoritism for “unreliables.” Quick summary Tens of millions of Americans experience hardship paying for their basic energy needs. 25 million US households say they've gone without food or medicine to pay for energy. 12 million say they’ve kept their home at an unsafe temperature.1 US energy poverty should have decreased since 2008, when the price of natural gas started plummeting. But energy poverty is going up because we have added so much solar and wind infrastructure to the grid.2 3 The more unreliable energy countries mandate, the worse energy poverty gets. German households have seen their electricity prices double in 20 years thanks to solar and wind infrastructure. Their electricity prices are 3X the US’s too-high prices.4 5 Skyrocketing energy prices from solar and wind mandates don’t just increase energy poverty. They increase all poverty by making every product more expensive, and by making American industry uncompetitive. Does anyone think Americans need higher prices and fewer jobs right now? Politicians need to learn from our mistakes and Germany’s mistakes that mandating renewable energy increases poverty. Instead, many want to mandate nearly 100% solar and wind. This is impossible and won’t happen, but even 33% would cause mass poverty.6

The fastest way to decrease energy and overall poverty is to end favoritism for wasteful, unreliable solar and wind schemes and reject any proposal to outlaw reliable fossil fuels and nuclear in favor of “renewables.” References 1 U.S. Energy Information Administration - Residential Energy Consumption Survey, 2015 Table HC11.1 2 Since the peak in 2008, natural gas prices for electricity production, residential, commercial, and industrial consumers have fallen across the board. U.S. Energy Information Administration - Natural Gas Prices 3 Natural gas, solar, and wind capacity additions dominate in US grid areas. But despite falling natural gas prices and improving natural gas power plant technology, electricity prices do not fall. U.S. Energy Information Administration, April 21, 2020 4 German household electricity prices have more than doubled to over 0.3€ per kWh ($0.35 per kWh depending on currency exchange rate) since 2000 when the modern renewable energy law started to massively incentivize solar and wind capacity on the German grid. BDEW Strompreisanalyse July 2020 p. 7 5 The average US household price in 2018 was $0.1287 per kWh. U.S. Energy Information Administration - Electric Power Annual table 5a 6 Joe Biden’s energy plan also calls for a net-zero CO2 emissions economy wide by no later

than 2050. His climate plan also promises aggressive new methane emission limits. Effectively, this amounts to a ban and early retirement of coal, gas, and oil for electricity generation (over 60% of the current total), as there is no cost-effective technology available to capture CO2 from fuel combustion, even though Biden tried to backpedal on the direct attacks against fracking recently. Since Biden’s plan does nothing to address the drastic overregulation of nuclear, and the US has very little additional hydro capacity, his plan necessarily requires overwhelmingly solar and wind.


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Corey Palumbo Bowles Rice LLP

Who’s on First (Priority)? Court Clarifies Notice Requirements

In EQT Production Company v. Antero Resources Corporation, Case No. 19-0572, West Virginia Sup. Ct. App., Nov. 11, 2020, the West Virginia Supreme Court of Appeals (the “Court”) held that where multiple leases exist as to certain real property, the provisions of West Virginia Code § 40-1-8, 9 govern which lease has priority. Ultimately, the Court affirmed the trial court order granting Antero Resources Corporation (“Antero”) summary judgment, establishing Antero’s top lease as the primary oil and gas lease for the leased premises. EQT Production Company (“EQT”) acquired a Tyler County, West Virginia, oil and gas lease via assignment from PetroEdge Energy, LLC. The lease acquired by EQT contained a five-year primary term, which expired on December 13,

2016, unless oil and gas was produced or capable of being produced from the leased premises. Importantly, EQT’s lease did not initially include an extension or renewal clause. A memorandum of EQT’s lease was recorded in Tyler County, West Virginia, pursuant to West Virginia Code § 40-1-8. Antero acquired a top lease from the landowner-lessors on June 24, 2016. Antero then recorded a memorandum of its June 2016 Lease in Tyler County, West Virginia, on August 30, 2016. Antero’s top lease provided that it would only become effective on December 14, 2016 upon the expiration of EQT’s lease. Antero made two installment payments to the landowner-lessors as consideration for the June 2016 lease: first, Antero paid five percent (5%) of the consideration at the

time the June 2016 lease was signed; second, Antero paid the remaining consideration within fifteen business days of the effective date of its lease. Antero’s lease specifically provided that the landowner-lessors had not agreed to extend, modify, or renew EQT’s lease and would not do so in the future. Nonetheless, EQT obtained an amendment and ratification of its lease with the landowner-lessors on September 24, 2016, despite having notice of Antero’s top lease. EQT’s amendment and ratification aimed to extend its lease for an additional five-year term, but EQT did not record its amendment and ratification until December 12, 2016 - the day before its lease was set to expire. The main issue was whether EQT’s base lease, as amended, or Antero’s top lease had priority as to the leased premises. According to the Court, Antero qualified as a good-faith purchaser under West Virginia Code § 40-1-9, because when Antero acquired its June 2016 lease Antero did not have notice that the EQT lease could be extended beyond its initial term. Moreover, EQT did not seek to amend its lease to include an extension or renewal clause until after Antero’s lease memorandum was recorded. EQT was on notice of Antero’s lease when EQT attempted to amend or modify its lease. As a result, the Court ruled that Antero’s lease took priority over EQT’s lease, as amended, and was the primary lease for the leased premises. Bowles Rice LLP attorneys Corey L. Palumbo and Joshua A. Cottle represented Antero Resources Corporation throughout the litigation.


12

Michael Forbes Membership Chair

IOGA Board Welcomes Two New Members in November Please join the IOGA Board of Directors in welcoming these members elected in November:

FESCO Ltd. ALL 104 Fesco Run Road Shinnston, WV 26330 Phone: (304) 592-3366 Fax: (304) 592-3368 www.fesco.com Jeff Davis Cell: (304) 989-3309 jeffrey.davis@fescoinc.com

Stand Energy Corporation GOM Kathie Bonnell 1077 Celestial Street, Ste. 110 Cincinnati, OH 45202 Phone: (304) 203-1909 kbonnell58@gmail.com

impacted in a myriad of ways. Many IOGA member companies have stepped up and provided untold assistance to the needy and they (and you) are to be applauded. I conclude this month’s Burd’s Nest with a very simple and genuine request. Please join my wife Leone and I and be a Santa’s Helper. It’s easy…..just find your local Toys-for-Tots outreach; your church or community Angel Tree; your local police department; your Salvation

Army, Boys & Girls Club, YMCA or a plethora of other philanthropic organizations that always get engaged at this time of year to the benefit of those most needy and those who can really use that gift from Santa--or even his helper!!! Santa’s helpers come in all sizes and shapes---if you have the ability to help-PLEASE HELP!!! Have a very safe and Merry Christmas and Happy New Year!

Burd’s Nest Continued from page 4 answer that needs to stay consistent even as a child grows older. Santa relies on “helpers” to guide him. Helpers should not be confused with Elves who keep an official log of all the children for review before December 24. Helpers serve a very valuable role in as much as they assist both you and Santa. Helpers come in all shapes and sizes and some have even been known to look very much like the real Santa--others not so much! Some helpers work very long and hard hours and yet seek no recognition for their efforts. HELPERS NEEDED!!! Those who know me, know that I have repeatedly used the December edition of the IOGA News in a manner less formal than the other eleven monthly articles. As already stated, Santa relies on “helpers” of all sorts to make Christmas the most enjoyable it can be for all children. This year, we find ourselves in the midst of a worldwide pandemic of unprecedented fear, sickness and death. Countless individuals, some of whom you may know and many others who have children, have been terribly and negatively affected and

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13

Charlie Burd IOGA Executive Director

Thanks to You, Our Industry Has Its Own License Plate THE WAIT IS OVER!!! What started as a dream of many at IOGA and WVONGA (very soon to officially become GO-WV) has been realized. The initial process of collecting the minimum number of individual applications requesting a specialized license plate honoring the natural gas and oil industry came to fruition this summer! Thanks to all those who applied and will soon become among the first to receive this customized plate, the prototype of which is shown below. The logo on the license plate reflects the flame of our product, while the background represents the industry’s deep concern for protecting the environment. The tag line, “Natural Gas - Leading the Future,” underscores our belief in this industry as a way to continue moving West Virginia forward for decades to come.

Over the past several months, IOGA and WVONGA collectively asked members to consider applying for a license plate dedicated to the oil and natural gas industry. This plate will get us recognized in the same way as other such industry or special interest groups. On July 21, we hand-delivered 283 applications, and advance payment, to the West Virginia Department of Motor Vehicles (WVDMV). Since we submitted our initial applications, the WVDMV assigned its graphic artist to meet with us, got our design input, and created several versions from which we chose the plate shown below. Now that this final design has been approved, we hope to see the delivery of the first license plates late in the first quarter of 2021. While this may seem like a long time from start to finish, please understand nearly everything has been slowed due to working remote-

ly and more cautiously. One last thing…even though we have met our minimum hurdle, the applying for, and obtaining of, a specialized plate is an on-going process. It is never too late to apply for a plate. From this point forward you can access the “West Virginia Oil and Natural Gas” specialty plate at the IOGAWV website (www. iogawv.com) or at the WVDMV website at: https://transportation. wv.gov/DMV/Vehicle-Services/License-Plates/Special-Plates/Pages/ default.aspx The instructions will direct you complete the application, make your check for $91.50 payable to: IOGAWV -- Special License Plate, and to send both the application and check to: IOGAWV C/O: Charlie Burd 300 Summers St., Suite 820 Charleston, WV, 25301


14

Malcolm Continued from page 1 Scholarship. In fact, the family suggests contributions to the IOGA Scholarship Fund, with contributions mailed to 300 Summers Street, Suite 820, Charleston, WV 25301. Another former IOGA President, Dennis Xander, Denex Petroleum, said, “I first met Scotty Malcolm in the late 1970s at an IOGA Winter Meeting. I liked him immediately, as did everyone who met him and experienced his constant smile, warm demeanor and wonderful sense of humor. He was a master of our industry, and thoroughly understood every aspect of our business, from geology to land to completion and production. Thankfully, he was willing to share his knowledge and experience with a young upstart like me. I was not yet 25 and he was just under 50. We were elected to IOGA’s Board together in 1981. I had great respect for his sage wisdom and always followed his lead in making tough decisions for IOGA. He understood the plight of independent producers completely, and worked hard to protect their interests. “My wife, Linda, and I shared ice cream at Draper’s with Scotty and the lovely Lura Malcolm at an IOGA Summer Meeting in the very early 1980s,” Xander recalled. “They took

us under their wing and introduced us to many of the attendees. I remember Scotty telling us that day that he liked to make younger friends so he would have them in his senior years. That was prophetic. For almost forty years thereafter, we have been honored to consider the Malcolms as very close family friends, and we enjoyed their company immensely.” Making younger friends was never more true than when he befriended Nathan Burd, son of IOGA Executive Director Charlie Burd, at the 2002 Summer Meeting just a month before Nathan’s fourth birthday. “He was so kind and accepting to me, Leone and Nathan from the first time my family got to met him. We shared dinner together along with the Dunns and Nestors,” Burd said. “We were all very delighted to discover that Scotty and Nathan shared the same birthday!” Born on September 23, 1930, in Dansville, New York, Malcolm was the son of Henry and Margaret Campbell Malcolm. Scotty attended PS 30 Elementary School and Port Richmond High School in Staten Island, New York. He graduated from Lehigh University in 1952 with a Bachelor of

Science degree in Geology and was a member of the Delta Tau Delta fraternity. He played varsity basketball at Lehigh and was the team captain during his senior season. After college, he served in the United States Air Force as a navigation instructor and reached the rank of Captain. After his military discharge, he worked as a petroleum geologist for Sinclair Oil Company in Casper, Wyoming. In 1958, Scotty and Lura moved their growing family to Charleston, West Virginia where he worked for United Carbon Company and then, Cabot Oil & Gas Corporation. “I first met Duncan during my Cabot days and he became my buddy. He always kept in touch with his Cabot friends, including frequent lunches over the years with Betty Frederick, Frances Stamper and me,” said IOGA Office Manager Lori Miller Smith. “He will be missed by so many people.” In 1968, he formed D.C. Malcolm, Inc. as a petroleum exploration and consulting company and, for over 50 years, drilled and operated oil and gas wells throughout the state of West Virginia. In addition, he was president and CEO of Consumers Gas Utility Company in Huntington, Malcolm Continued on page 15


15

Malcolm

Continued from page 14

West Virginia. He was proud to work side-by-side with his son, Doug, for 35 years and was always quick to credit the success of his businesses to the hard work and dedication of each and every one of his employees. “One of my fondest memories is of watching a white-haired older man play full court basketball against college age guys. He screened and rebounded hard. It frustrated the young guys. Later, I found out that was Duncan Malcolm, who worked in the same building I did,” recalled George Patterson, Bowles Rice LLP. “People at my firm told me “Scotty” knew all aspects of the oil and gas business, from the wellhead to the burner tip. I was eager to learn. It could not have been fun for him to read well logs for me, or answer any oil and gas question I had, but he could, and he did. There was nothing in it for him, but he shared his time and knowledge with me for many years. “He always smiled, laughed, and made time to teach. He was about the same age as my father, but never made me feel like a kid. I owe him a lot and can never repay. Scotty was an amazingly kind, patient, and friendly gentleman. We all enjoyed his company. There are many who hurt because he is gone,” Patterson said. Scotty served on the Board of Directors of United Bank, was a

director of the Independent Oil & Gas Association of West Virginia, served as president of the Appalachian Geological Society, was president of the West Virginia Small Public Utilities Association, and was recognized as the West Virginia Oil & Gas Man of the Year in 1998. He was active with both the Daymark Charity Tennis Tournament and the Charleston Public Courts Tennis Tournament. An avid tennis player, he played on the National Championship USTA 4.0 team representing the Charleston Tennis Club in 1990. He was a member of St. Matthew’s Episcopal Church for 61 years and served multiple terms on the Church vestry. Scotty loved his family and surrounded himself with fun-loving, active friends who kept him young beyond his years. He taught his children and grandchildren tennis, basketball, ice skating and roller blading. He also loved music and played both the banjo and the bagpipes. Too, his passion for basketball continued throughout his life. He coached both boys’ and girls’ teams at St. Matthews and continued to compete well into his seventies, even representing Charleston on several Senior Olympic basketball teams. He and Lura enjoyed traveling and he proudly wore a WVU ball cap wherever he went, saying, “No matter where in the world you go, you’re bound to

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run into a fellow Mountaineer.” He also made it his lifelong ambition to chronicle the life of his good friend, JoBeth, and her futile quest to travel to Myrtle Beach. Mike Ross, Mike Ross, Inc., said, “I’ve known Dunc for several years, done business with him and served on the IOGA board with him two or three times. He worked hard, played hard and was always a gentleman and always a good representative of our industry.” “My friend Scotty Malcolm was an ageless gentleman. He made every effort to stay current. His friends spanned many, many decades. He was a leader and mentor,” recalled Jack Harrison, Goodwin & Goodwin, LLP.. “The oil and gas industry had no better friend or advocate. I will miss our almost daily lunches at various eateries in Charleston. Scotty was a legend and earned the respect of everyone he met and I will miss him. He practiced what he told me--not to hang around old people too long, they will make you feel old. Godspeed my friend.” You may send condolences to the family at: www.barlowbonsall.com.


16


17

Merger

Wishing you and yours the best of this season – IOGAWV Officers, Board and Staff

Continued from page 1

mentally friendly and sustainable manner. Now that the merger has been approved, the hard work begins for Charlie and the staff – merging two offices, two sets of books and records, integrating the membership of the two associations, and preparing for the 2021 legislative session. The board of directors and the officers of the merged association will be providing our help and guidance to Charlie for these merger efforts. Speaking of officers, the merged association will be led by a strong group of experienced leaders – Maribeth Anderson (Antero) and Jeff Isner (Pillar Energy) will be vice presidents, Jason Harshbarger (Berkshire Hathaway Energy) will be secretary, Jim Pritt (Putnam Natural Gas / Teavee) and Kelly Moss (Apex Pipeline) will be the treasurers, and Tom Westfall (Mountaineer Gas) and I will be co-presidents. Tom and I are honored by the trust and faith placed in us by the merged board to serve at the helm of GO-WV and we appreciate the willingness of all of the officers and board members to serve and lead. In news not related to the merger - I am excited to report that the natural gas themed license plate, designed with help from Maribeth, Jeff, Charlie, and Lori Miller Smith is looking great and should be issued by the West Virginia DMV and available for purchase (for those who haven’t already ordered one) early in 2021. It will be a simple and effective way to demonstrate to show support for the industry. Please go to page 13 to see its design and click here to order your plate. This newsletter will continue to be published going forward and I look forward to writing future columns, along with Mr. Westfall. Happy holidays to you all, and I wish you a safe, healthy and prosperous New Year.


18

Technical School Scholasrhip Application


19

Technical School Scholarship Form


20

College/University Scholarship Application

2021 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 19, 2021. 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 19, 2021.

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


21

Scholarship AP/Honors Courses Form

Advanced Placement and Honors Courses Grade Level

Course


22

Scholarship School Activities Form

Extracurricular School Activities Grade Level

Estimated Hours per Year

Activity

TOTAL HOURS


23

Scholarship Community Service Form

Community Service and Non-School Activities (Including Employment) Grade Level

Estimated Hours per Year

Activity

TOTAL HOURS


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


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