Desk and Derrick Club of San Antonio March 2017

Evelyn Green will present the club’s annual orientation program at the March 28, 2017 membership meeting. Evelyn was born and raised in Eagle Pass, Texas. She moved to San Antonio in 1965 and attended college here, where she met her husband, Bob Green. They have been married for 49 years and have two beautiful daughters, Shannon (husband: Billy Padgett) and Kelly (husband: Chuck Crider). They have been blessed with four grandsons (Connor, Kade, Collin and Keegan) and one granddaughter (Kate). Evelyn is a Big Texas A&M fan, since her grandsons, Connor and Kade are both Aggies! Evelyn’s husband was transferred to Corpus Christi in late 1978 and she began her career in the Oil and Gas Industry, working for BK Johnson Company, J3 Oil. With no experience in the industry, she joined the Corpus Christ Desk & Derrick Club in January 1979. Her husband was transferred back to San Antonio in January 1980 and she immediately went to work for Rio Grande Drilling Company, Brittany Energy and GBC Minerals, Ltd. – all under the ownership of Guy Bob Buschman. She has been with one company for thirty-six years! Moving back home, she transferred her membership to the San Antonio Club.

Evelyn states: “Through Desk and Derrick, I have been given the opportunity to grow and learn – in every aspect of our wonderful industry. Having served at Club Level, Regional Level and at the Association level, I continue to learn every day. The friendships what I have formed over 37 years are such an important part of my life. Desk and Derrick affords the same opportunity to every member – it’s there for the taking! My motto: You can’t succeed if you don’t try!”

“Desk and Derrick Orientation” March 28, 2017

INSIDE THIS ISSUE

March Meeting Information 1 Member Bulletin Board 2 Editor’s Page 3 Club President’s Letter 4 ADDC President’s Letter 5 Region IV Director’s Newsletter 6 ADO Letter 7 Nominating Committee Letter 8 2016 & 2017 Treasurer’s Information 9 Meet the 2017 Club Board 10 February 28 Meeting Review 11 Industry News 20 2017 B&P Highlights 22 ADDC Committees in Depth 23 ADDC Assigned Tasks 26 Region IV Meeting 29

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MONTHLY MEMBERSHIP MEETING

TUESDAY, MARCH 28, 2017

THE PETROLEUM CLUB OF SAN ANTONIO

6:00 p.m.

MENU:

BALCONES SALAD WITH VINAIGRETTE DRESSING

LEMON PEPPER TILAPIA WITH WILD RICE

LEMON CAKE

Steve Bruington March 18 Leo Giron March 18 Elizabeth Watson March 26

2017 Board Members President – Sue Weaver 210-826-0700 Vice President – Debbie Earl 210-626-6687 Secretary – Evelyn Green 210-785-2893 Treasurer – Nancy Spoon 210-626-4368 Parliamentarian – Sheryl Minear, RP 325-665-3866 Immediate Past President – Kathy Johnson 210-626-7129

Motto: Greater Knowledge – Greater Service Purpose: The Association of Desk and Derrick Clubs (ADDC), an international non-profit organization, is a premier provider of energy education and professional development. As an ADDC member Club, the purpose of this Club shall be to promote the education and professional development of individuals employed in or affiliated with the petroleum, energy and allied industries and to educate the general public about these industries as well as the companies and global communities the members serve. Mission Statement: To enhance and foster a positive image to the global community by promoting the contribution of the petroleum, energy, and allied industries.

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The Gusher Deadline

If you have an article to submit or aware of a job opportunity, please let me know. Our club is a great place for networking. The deadline for submitting information to be included in the April 2017 issue of The Gusher is April 17.

Please send the information to Sheryl_minear@yahoo.com

Club Calendar

2017 Membership Meetings

March 28 July 25

April 25 August 22

May 23 September 26

June 27 October 24

November and December - TBD

Region IV Meeting May 3-5 ADDC Convention September 18-23

Letter from the Editor

We have a large bulletin this month since there was so much material to cover. I hope you enjoy reading all the information.

If you would like something included in The Gusher, please send your information or comments to sheryl_minear@yahoo.com.

I hope to see all of you at the March meeting.

Sheryl Minear

Look for these articles in April:

Meet the ADO Manager

Meet the ADDC Webmaster

How CO2 Enhanced Oil Recovery Works

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“DRILLING FOR EDUCATION”

March 2017

May your blessings outnumber the shamrocks that grow, And may trouble avoid you wherever you go ~ Irish Blessing

Happy St Patrick’s Day! This holiday, now celebrated with four-leaf clovers and green beer, originally came to America in 1737 and was first celebrated in no other place, than historic Boston. St. Patrick’s Day announces that Fiesta is right around the corner along with all the festivities that come with San Antonio’s customary celebration. Spring is right around the corner and spring break for our school children is this month. The grass is turning green and the blue bonnets will soon be blooming with all the other wild flowers that grace our country side of Texas. Also, this month is the renewal and rejuvenation by celebrating Desk and Derrick Awareness Month, known as “Orientation Month”. It is a time to renew our minds and to relearn why Desk and Derrick is so great. Our own member and Region IV Director, Evelyn Green, is our guest speaker and she will enlighten our minds, refresh and relearn what Desk and Derrick is all about. We encourage you to invite a friend and the Club will pay for their dinner. This is a great way to introduce your friends and co-workers to come experience a night with us. The Scholarship Committee will be ramping up within the next month and consider participating on this rewarding committee. More information will be forth coming about where and when the scholarship application will be available. As a reminder, be sure to mark your calendars for the Region IV Meeting, May 3-6, 2017 in Corpus Christi, Texas, this year. Registration packets will be available at our March meeting. Finally, thank you again for all your support and participation. As always, we the board, are here for you. If there is an article you want to see put in the Gusher, email or call one of us and let us know. If there is a special speaker you want to hear, please let us know and we will contact them. Always remember to invite your fellow employees and any friends to our meetings; we would love to meet them. It is a great way to learn about our industry. Please continue to let us know how we can improve YOUR club for you. See you at the meeting!!

Sue Weaver

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Maggi Franks President

1600 Edgewood Drive Charleston, WV 25302

(304) 343-5557 O (304) 206-7377 M

maggi@edgewoodcc.com (o) maggsmf@aol.com

March 2017 Dear friends and fellow members, Happy Desk and Derrick Awareness month!! Each year, as members, we try to make our communities, coworkers, and employers aware of just how important our Association is in educating the world about energy. We need to broaden our reach. Last year we started allowing anyone with an interest in the energy industries to join ADDC. We need to follow that up by introducing ourselves to those people. Reach out to your local papers, radio stations, news agencies, or colleges; anywhere you might think there might be interested parties. One of the things the Public Relation / Trade Show Committee has been tasked with this year is to find a PR Firm for the Association. Until then, it is up to us to be our own promoters. I challenge each of you to spread the word about ADDC to 3 people this month: 1 person at your office, 1 person in your community and 1 random person that you think might be interested. Even with our low numbers, if we each reach out to 3 people – we will have told over 5,000 people about Desk and Derrick. If we can get even 6% of those people to join or even spark their interest, our numbers could be over 2,000 again in no time. We need to focus on more than recruiting new members; we need to retain our current members. ADDC was affected by the downturn in our industries, and we lost many members. As the industry experiences the upswing, we will reach out to our former members and bring them back. We will provide more educational opportunities for our members. We will show our employers the advantages of having a member of ADDC as an employee. By doing all of these things, we can strengthen our Association from within. The minutes from Budget & Planning are now available on the ADDC Website, as is the 2017 ADDC Budget. You will notice that for the second year in a row we are presenting an unbalanced budget. As our numbers dwindle, we are losing our primary source of revenue. You will see in the report of the Rules committee that the Board is proposing six bylaw amendments. For the most part they are a result of the unbalanced budget. We will be asking for a dues increase. To many of us this will seem to be a large increase, and it is larger than anything we have requested from membership in the past. There is a reason behind our request. Even when this passes, we will still be operating at a deficit, and keep in mind it will not go into effect until 2018. The additional revenue will help us keep afloat for a few additional years, but it is not the complete resolution of our financial difficulties. The board is seriously looking into other sources of revenue. We started by investing some of our funds in 2015, again this is not a quick fix. An Ad-Hoc committee, formed at B&P, is looking into creating advertising packages that can become a serious revenue stream. What’s the point behind all of this? We believe in ADDC. We want to continue the legacy left to us by Inez Awty Schaffer. If we all work together we can ensure that ADDC will thrive for another 68 years. Until next month, Maggi Franks

Board of Directors PRESIDENT Maggi Franks K & E Computer Services PRESIDENT ELECT Christina Forth AOG International VICE PRESIDENT Terry Ligon L Chem Tech Co., Inc. SECRETARY Keith Atkins Murphy USA TREASURER Tammy Watkins CTKW Petroleum Land Service, LLC. IMMEDIATE PAST PRESIDENT Connie Harrison Valero Energy Corp. EXECUTIVE ASSISTANT Linda Rodgers Process Equipment & Service Co. PARLIAMENTARIAN Sheryl Minear, RP Silver Oil & Gas, Inc. REGION I DIRECTOR Bev Roberts American Refining Group REGION II DIRECTOR Jan Bell Advanced Energy LLC REGION III DIRECTOR Claudia Prather REGION IV DIRECTOR Evelyn Green GBC Minerals, Ltd. REGION V DIRECTOR Joan Cartwright Burk Royalty Co. LTD REGION VI DIRECTOR Wendy Sparks Carl E. Gungoll Exploration Inc.

REGION VII DIRECTOR Marilyn Carter

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Evelyn Green 2017 Region IV Director evelyn@gbcminerals.com Debra Rowe Corpus Christi debbierowe412@yahoo.com Tiffany Sellars Dallas TSellars@pittsoil.com Helen Lovato Fort Worth helovato@swbell.net Lynda McCluer Graham lsmccluer@yahoo.com Donna Altomari Houston dyatx@yahoo.com Carla Adams Lone Star cadams@jkmii.com Val Williams NHMC Valwilliams1950@gmail.com

Sue Weaver San Antonio suew@osbornheirs.com Lori Lawrence Victoria lori_lawrence@kindermorgan.com Connie Bass Wise County Connie.bas@btt-group.com

Region IV Director’s Newsletter

March 2017 It was a wonderful day Saturday, February 11

th here in San Antonio when the

2017 Region IV Presidents, Vice Presidents, Region IV Committee Representatives and ADDC Chairman met for a one day meeting. All ten (10) Region IV Clubs were represented by their President, with many of the Vice Presidents attending as well. A time of setting goals and sharing ideas of how to help our clubs in Region IV move forward and grow. The energy, enthusiasm and fellowship, was second to none. The sharing of great ideas and goals for our Region for this year makes one understand that we are not alone! Thank you all for coming, you are wonderful. I will ask that each of you that attended the meeting, please share with your members. Remember that you members are a great wealth of knowledge – rejuvenate them! The second of the 3-R’s: Retain – to hold secure or intact. We as a Club, Region and the Association strive to hold on to our members, keep our membership intact. We have each renewed our membership for this year because of the education value that we get through Monthly Meetings, Field Trips, Seminars, Regional Meetings and the Annual ADDC Convention. If you know of a member that decided not to renew, why not contact them personally and ask them why? Find out how you or your club can get them to reconsider and renew. Maybe the answer is to rejuvenate them, so that we can retain them! NAPE (North American Prospect Expo) was held in Houston, February 16-17, 2017. Thank you to the members of the North Harris/Montgomery Counties Club and the Houston Club for representing ADDC – setting up the booth and being ever so present to answer questions about our Association. March is DESK AND DERRICK AWARENESS MONTH. What better time to invite potential members to your meeting. Let them know what we, as an Association, are all about. Plans for the Region IV Meeting in Corpus Christi are being finalized and the Registration Form will be out shortly. The Corpus Christi Club has worked very diligently to make this a Regional Meeting you won’t want to miss. Great Field Trips, wonderful seminars and speakers! Mark your calendars – May 3-6, 2017 at the Holiday Inn Downtown Marina.

Evelyn “All you need is the plan, the road map, and the courage to press on to your destination.”

—Earl Nightingale”

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Mark Loch Association Distribution Office Manager (ADO)

Association of Desk and Derrick Clubs

P.O. Box 847 Bethany, OK 73008

(405) 543-3464 O

Email: ado@addc.org Website: www.addc.org

Good afternoon ADDC Board and Members; Welcome to spring. 2017 is moving by very quickly, winter is turning to spring in many places and with the season change comes longer days and longer times to enjoy being outside enjoying creation and the warmer weather and sunshine. The ADDC Regional meeting schedule heats up in March as meetings will be finalized. Region II meeting will take place at the end of March. I know that the Region II meeting will be a stellar success. I hope everyone in Region II is making plans to attend. Membership renewals are coming in at a steady pace to ADO and are being processed. I appreciate all clubs efforts to get their renewals in by the deadline of February 28

th, 2017. If you miss the deadline, do not fear, ADO will accept

renewals on a continuing basis so encourage all clubs to stress to their membership the importance of membership renewal and the benefits of ADDC as the leading education and networking organization within the Energy and allied industries. I am looking forward to working in organizational development this year and am looking into ideas of ways to continue to grow the ADDC on a continuing basis. If anyone has any suggestions to this end please call or email me with those suggestions. If we all work together we will have great and strong ADDC for years to come. Please be sure to submit your club program report timely each month to your Regional Program representative. ADO keeps a record of all of these reports. They are needed as proof to the I.R.S. that the ADDC is maintaining educational programs as required for our 501c6 classification. If you have any questions regarding the completion of the program report form, please contact your regional program representative or ADO. I will be happy to assist in any way I can. Enjoy your St. Patrick’s Day and I look forward to seeing and speaking with all of you during the year. Let’s keep ADDC Great Sincerely; Mark Loch ADO Manager ADDC

Board of Directors PRESIDENT Maggi Franks K & E Computer Services PRESIDENT ELECT Christina Forth AOG International VICE PRESIDENT Terry Ligon L Chem Tech Co., Inc. SECRETARY Keith Atkins Murphy USA TREASURER Tammy Watkins CTKW Petroleum Land Service, LLC. IMMEDIATE PAST PRESIDENT Connie Harrison Valero Energy Corp. EXECUTIVE ASSISTANT Linda Rodgers Process Equipment & Service Co. PARLIAMENTARIAN Sheryl Minear, RP Silver Oil & Gas, Inc. REGION I DIRECTOR Bev Roberts American Refining Group REGION II DIRECTOR Jan Bell Advanced Energy LLC REGION III DIRECTOR Claudia Prather REGION IV DIRECTOR Evelyn Green GBC Minerals, Ltd. REGION V DIRECTOR Joan Cartwright Burk Royalty Co. LTD REGION VI DIRECTOR Wendy Sparks Carl E. Gungoll Exploration Inc.

REGION VII DIRECTOR Marilyn Carter

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February 24, 2017 To: All Club Presidents From: 2017 ADDC Nominating Committee Re: Nominations for 2018 ADDC Officers The 2018 Officers of the Association of Desk and Derrick Clubs will be elected at the 2017 ADDC Convention to be held in San Antonio, Texas. The ADDC Nominating Committee is currently accepting nominations for the following 2018 ADDC Officers: President-Elect Vice President Secretary Treasurer The deadline for all nominations to be received by the Nominating Committee Chairman is June 2, 2017. Any nominations received after that date will not be considered by the Nominating Committee. Requirements and procedures for submitting nominations and the duties of the Officers are described in the Association Bylaws and can be found on the ADDC website in the Guidelines section. All candidates for nomination to ADDC offices shall: 1. Have served or be serving as Regional Director 2. Be employed in the petroleum, energy or allied industries 3. Be bondable. The ADDC Officer Nomination Forms are available in the Forms section of the Members Only pages of the ADDC website (addc.org). Please send all nominations by the June 2, 2017 deadline, including NOMN1, NOMN2, and NOMN2A forms, along with a photo of candidate to Linda Rodgers, Nominating Committee Chairman, via mail at the address above or via e-mail at lindar@pescoinc.biz.

Linda Rodgers

Linda Rodgers

Nominating Committee Chair

155 Coy Avenue Farmington, NM 87401

Phone (505) 320-5237 C

(505) 324-3981 O

Email lindar@pescoinc.biz

Board of Directors PRESIDENT Maggi Franks K & E Computer Services PRESIDENT ELECT Christina Forth AOG International VICE PRESIDENT Terry Ligon L Chem Tech Co., Inc. SECRETARY Keith Atkins Murphy USA TREASURER Tammy Watkins CTKW Petroleum Land Service, LLC. IMMEDIATE PAST PRESIDENT Connie Harrison Valero Energy Corp. EXECUTIVE ASSISTANT Linda Rodgers Process Equipment & Service Co. PARLIAMENTARIAN Sheryl Minear, RP Silver Oil & Gas, Inc. REGION I DIRECTOR Bev Roberts American Refining Group REGION II DIRECTOR Jan Bell Advanced Energy LLC REGION III DIRECTOR Claudia Prather REGION IV DIRECTOR Evelyn Green GBC Minerals, Ltd. REGION V DIRECTOR Joan Cartwright Burk Royalty Co. LTD REGION VI DIRECTOR Wendy Sparks Carl E. Gungoll Exploration Inc. REGION VII DIRECTOR Marilyn Carter

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February 28, 2017 ADDC Board, Club Presidents and Membership RE: 2017 Association Budget The 2017 ADDC budget is posted on the website. Should you have any questions do not hesitate to contact me at ctkwllc@gmail.com. Yours truly, Tammy Watkins

Board of Directors PRESIDENT Maggi Franks K & E Computer Services PRESIDENT ELECT Christina Forth AOG International VICE PRESIDENT Terry Ligon L Chem Tech Co., Inc. SECRETARY Keith Atkins Murphy USA TREASURER Tammy Watkins CTKW Petroleum Land Service, LLC. IMMEDIATE PAST PRESIDENT Connie Harrison Valero Energy Corp. EXECUTIVE ASSISTANT Linda Rodgers Process Equipment & Service Co. PARLIAMENTARIAN Sheryl Minear, RP Silver Oil & Gas, Inc. REGION I DIRECTOR Bev Roberts American Refining Group REGION II DIRECTOR Jan Bell Advanced Energy LLC REGION III DIRECTOR Claudia Prather REGION IV DIRECTOR Evelyn Green GBC Minerals, Ltd. REGION V DIRECTOR Joan Cartwright Burk Royalty Co. LTD REGION VI DIRECTOR Wendy Sparks Carl E. Gungoll Exploration Inc.

REGION VII DIRECTOR Marilyn Carter

Tammy Watkins ADDC Treasurer

c/o CTKW Petroleum Land Services, LLC 9914 N. Hobart Road

Carrier, OK 73727 580-554-2267 (C)

ctkwllc@gmail.com

Terry Ligon 2016 ADDC Treasurer L Chem-Tech Co., Inc.

HC 75, Box 495 Eliasville, TX 76481

(940) 362-4519 O (940) 550-5168 M

terryligon@hotmail.com

February 22, 2017 ADDC Board, Club Presidents and Membership RE: 2016 4th Quarter Treasurer’s Report The ADDC 2016 4th Quarter Treasurer’s Report is posted on the website. If you have any questions or concerns, do not hesitate to contact me at the information listed above. With Kindest Regards, Terry Ligon 2016 Treasurer

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Nancy Spoon, Club Treasurer

Nancy is a CPA and currently an Accounting Supervisor for Logistics Accounting at Tesoro Corp.

Nancy is a native San Antonian and received her BBA from St. Mary’s University. She started her career working in the Office of Inspector General for the Department of Health and Human Services in the Dallas Region. Working for the government she learned to be curious and question everything that came across her desk.

After leaving the government Nancy worked in two small businesses-- a retail hunting store then later for a fruit juice wholesale distributor to school districts. Working for small businesses she learned to wear all hats. She was payroll, accounts payable and receivable, budget office, business development and CFO. She quickly learned that staying organized was key and if there wasn’t a Plan B every day was a Hail Mary.

In 2005 Nancy went to work for Clear Channel Radio (now iHeart Radio) as a general ledger accountant. Here she learned what working for a big corporation was all about. Big corps have a lot of people, a lot of policies and a lot of processes. Here she had to negotiate many systems that weren’t integrated with each other—yet changing something in one system would affect something quite unexpectedly in another system. Working in Radio she learned to develop vision and always consider the big picture.

In 2014 Nancy started at Tesoro a little anxiously since the only thing she knew about oil & gas was that gasoline powered her car. A friend in the business reassured her by saying all you needed to know in oil & gas was that there were 42 gallons to the barrel. She quickly learned that there was way more to it than that. Two years later she is still learning something new every day about Tesoro and oil and gas. Nancy is a wife and mom…hoping to be a grandma but her daughters won’t cooperate. She is active in church activities and volunteers at Haven for Hope. She loves to travel and enjoys the theatre.

…..still learning something new every day about Tesoro and oil and gas.

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Where Do We Go From Here? Defining the New Normal

Steve Bruington was the speaker at the February 28, 2017 membership meeting. If you were unable to attend you missed a very informative meeting. Following are some excerpts of the information he conveyed to those in attendance. I think you will find it very interesting.

Supply and Demand: • 2015 daily world production of crude oil was 94.6 to 96 million barrels per day

• 2015 daily world consumption of crude oil was 92.7 to 94.2 million barrels per day

• There is an average worldwide oversupply of 1.85 million barrels per day

• OPEC averaged 31.6 million barrels per day in 2015

• Up 0.8 million barrels per day from 2014

• Saudi Arabia produces 10+ million barrels per day

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• U.S. oil production

• 5 million barrels per day in 2008

• 9.2 million barrels per day in December 2014

• Eagle Ford production accounts for 16% of the total U.S. production

• 9.4 million barrels per day average in 2015

• 9.1 million barrels per day in January 2016

• U.S. consumes approximately 19 million barrels of oil per day

• U.S. commercial crude oil inventory was 459 million barrels (03/13/15)

• U.S. commercial crude oil inventory was 521 million barrels (08/12/16)

• The U.S. has been the biggest “swing” producer for the last several years

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Drilling Rig Activity • Significant deviation from 2008-2009 • Did it bottom?

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Hidden Costs of Oil Prices • ±25% royalties

• 4.6% severance tax – state

• ±3% ad valorem tax – local entities

• Lifting costs

• Transportation costs

• Water disposal costs

• Multiple (10+ in Texas) grades of crude

• Many are priced lower than WTI, with a spread of potentially several dollars per barrel

Economics • WTI average = $45.00/bbl

• Flint Hills price for Eagle Ford crude = $37.25/bbl

• Minus royalties and taxes = $27.69/bbl

• Minus lease operating expenses of $4.57/bbl(1) = $25.81/bbl

• average cost for operators is $6-8/bbl

• Average expected 2016 well cost Dewitt county = $6.5 million(1)

• Need 251,799 bbls oil to payout well*

• A different operator’s 2015 well cost was $5.7 million with expected ultimate recovery of 450,000 BOE(2)

• At $25.81/bbl net to operator, need 220,808 bbls oil to payout

Source: (1) From a major independent’s Q4 earnings 02/17/16 (2) From a major independent’s Q4 earnings 02/25/16 *Does not include sale of natural gas

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WTI Price (/bbl) FHR Price (/bbl) Net to Producer (/bbl) Barrels to Payout

$40 $32.25 $22.35 290,838

$50 $42.25 $29.28 222,000

$60 $52.25 $36.21 179,512

Year First Production

Well

Count

Cum Production (bbls)

Average Median Max

2011 & Prior 106 238,643 217,192 749,118

2012 134 187,842 187,587 375,326

2013 64 201,908 216,392 372,812

2014 24 143,985 176,639 215,694

2015 110 85,382 72,049 267,781

438 total; 7 wells with cum greater than 518,314 bbls oil

• Based on $6.5 million/well

Is It Profitable?

• From same operator in Dewitt county since 2011(1)

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Prospects for the Future

• Bankruptcies/mergers for overleveraged companies

• Lag time from oil price recovery to increased drilling activity

• Reluctance to hire more employees once recovery occurs

• Service companies will need at least 1 year to re-train and ramp up IF personnel can be hired

• Idle equipment will have to be refurbished before utilizing

• Difficult to accurately predict the price of oil

• Oil production decline as rig count drops and stays low

• Oversupply will lessen with lower rig count and high production decline rates

• Drilling is necessary to replace the produced reserves

Hydrocarbons projected to continue as the main U.S. energy source next 25 years(1)

Source: (1) EIA

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Future Supply and Demand

The New “Normal”

• Based on the highs, lows, and returning balance points of the rig count since 1981, we project the new normal will be 907 rigs.

• 907 rigs = 48% of 2014 peak rig count

• IF companies can maintain the same market share as before, their business will be reduced by 52%.

• Companies will have to make changes to continue to be profitable

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Changes to Survive Low Prices

• Technical innovation

• Develop techniques to reduce costs

• Improve internal/operational efficiency

• Reduce required personnel, possibly by automation

• Collaboration

• Integration and optimization

• Strong leadership

• Education and training to ensure availability of the necessary skilled people

Conclusions

• Much uncertainty regarding timing and strength of the recovery

• Many different opinions

• Oil price and activity level will recover

• Diversify business operations and opportunities

• Free enterprise drives innovation

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EPA Withdraws Information Request for the Oil and Gas Industry 03/02/2017 WASHINGTON -- The U.S. Environmental Protection Agency (EPA) is withdrawing its request that owners and operators in the oil and natural gas industry provide information on equipment and emissions at existing oil and gas operations. The withdrawal is effective immediately, meaning owners and operators – including those who have received an extension to their due dates for providing the information – are no longer required to respond. At this time, EPA Administrator Scott Pruitt would like to assess the need for the information that the agency was collecting through these requests. This action also comes after the agency received a letter on March 1, 2017, from nine state Attorneys General and the Governors of Mississippi and Kentucky, expressing concern with the pending Information Collection Request for Oil and Gas Facilities. “By taking this step, EPA is signaling that we take these concerns seriously and are committed to strengthening our partnership with the states,” said EPA Administrator Pruitt. “Today’s action will reduce burdens on businesses while we take a closer look at the need for additional information from this industry.” Under the previous administration, EPA sent letters to more than 15,000 owners and operators in the oil and gas industry, requiring them to provide information. The information request comprised of two parts: an “operator survey” that asked for basic information on the numbers and types of equipment at all onshore oil and gas production facilities in the U.S., and a “facility survey” asking for more detailed information on sources of methane emissions and emission control devices or practices in use by a representative sampling of facilities in several segments of the oil and gas industry. EPA is withdrawing both parts of the information request. The following are excerpts from an article in the March 9, 2017 Texas Independent Producers and Royalty Owners Association (TIPRO) which gives you a little more detailed information. With the start of March, U.S. oil and gas producers caught a break after the U.S. Environmental Protection Agency (EPA) announced on Thursday, March 2, that the agency will withdraw its request for the oil and gas industry to provide information on equipment and emissions at existing oil and gas operations. The information collected by the EPA through this effort would have been used to develop additional air regulations for existing sources in the onshore oil and natural gas sector under Section 111(d) of the Clean Air Act (CAA). The withdrawal of the EPA information request from the oil and gas industry is effective immediately. Late last year the EPA had sent letters to more than 15,000 owners and operators in the oil and gas industry requesting that information be provided to the regulatory agency in two parts: an “operator survey” that had asked for basic information on the numbers and types of equipment at all onshore oil and gas production facilities in the U.S., and a “facility survey” asking for more detailed information on sources of methane emissions and emission control devices or practices in use by a representative sampling of facilities in several segments of the oil and gas industry. The EPA is now rescinding both parts of the request.

continued

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EPA Withdraws Information Request for the Oil and Gas Industry (continued) The EPA’s move to cancel its Information Collection Request, also known as an ICR, followed state intervention in the matter. A coalition of 11 states, led by Texas Attorney General Ken Paxton, sent a letter on March 1st to the EPA expressing concern over the pending ICR for oil and gas facilities. The group pointed to estimates made by the EPA itself calculating industry’s cost of $42 million to respond to this request. The states also called out the federal environmental agency for “harassing” U.S. producers of oil and natural gas by imposing undue and onerous requirements. “Many companies involved with this request cannot afford the time and expense of complying with an empty, heavily regulatory burden. The information request puts strain on these companies—and all for the purpose of supporting an unlawful rule,” commented Attorney General Paxton. “The EPA’s request, directed only to oil and gas producers, is clearly more harassment than an actual search for pertinent information. We sincerely hope that the era of regulatory harassment is over and the era of common sense regulation can begin.”

Administrator Scott Pruitt was receptive to the arguments presented by the states, and promptly took action to withdraw the EPA’s information request for the oil and gas sector. “By taking this step, EPA is signaling that we take these concerns seriously and are committed to strengthening our partnership with the states,” commented Pruitt. “Today’s action will reduce burdens on businesses while we take a closer look at the need for additional information from this industry.”

News of the EPA’s cancellation of the ICR was welcomed by both members of the industry and elected officials. Since his first day as the new leader of the nation’s top environmental regulatory agency, Scott Pruitt has made clear his intent to bring back an approach of cooperative federalism at the U.S. Environmental Protection Agency (EPA). Pruitt, now serving as the administrator of the EPA, most recently was attorney general for the state of Oklahoma, a role in which he certainly understood the valuable expertise that states hold when it comes to regulatory oversight and management of environmental issues.

That appreciation of state authority by Pruitt could allow for a fresh start between the EPA and state authorities, following a tumultuous few years seen between federal and state environmental regulators.

Now, officials from Texas are hoping to restore partnership and collaboration on core environmental issues facing the nation today. On Friday, February 24, Texas Governor Greg Abbott met with Administrator Pruitt in Washington D.C. to discuss environmental issues vitally important to the people of Texas. An EPA press release said: “The two men agreed to work cooperatively on a range of issues including the status of Texas nonattainment areas.”

Texas Attorney General Ken Paxton also held a meeting in late February with Pruitt to discuss working together to protect the nation’s water, air, and natural resources.

resource www.tipro.org

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2017 BUDGET AND PLANNING MEETING HIGHLIGHTS

The annual Budget and Planning Meeting was held January 13-14 of 2017 in Tulsa, Oklahoma. This meeting is one of the three required board meetings to be held each year. The basic purpose of this meeting is to establish the ADDC budget for the year and make plans for the association. This is accomplished through reports submitted by the board members as well as the committee chairmen. Below is the B&P Highlights which are posted on the ADDC website as well.

• General consent given for March 1, 2017 as the deadline for submitting proposed amendments

to the ADDC Bylaws and/or Standing Rules for presentation to the delegates at the 2017 ADDC Convention.

• General consent for June 2, 2017 as the deadline for receiving nominations for the 2018 ADDC

Board.

• General consent to send five (5) EABs to each Region Director for use at their Region Meetings as advertising and information for the books.

• Brainstorming session – The Board established a plan for 2017, with the President assigning

tasks to the Board of Directors, ADDC committees, regions, and clubs.

• General consent to reduce the selling price of the Canadian version of EAB to $1 to reduce the 4,800 books in inventory.

• Brainstorming session – The Board discussed current ADDC issues and possible resolutions.

• General consent to send ADO Manager, Mark Loch and ADDC Webmaster, Wayne Ammons

to different region meetings to give presentations on what they do for the Association.

• General consent to approve the registration fee of $225 for the 2017 Convention, a logo for the 2018 convention, $1,000 per year (2017-2019) stipend for the 2019 Convention.

• General consent to approve ADDC Webmaster, Wayne Ammons’ contract.

• General consent to approve the 2017 Budget.

• General consent to use Mike Gray, CPA, to conduct the annual accounting review for the

Association.

• General consent to continue using Arvest and Bank of America.

• General consent for an ad hoc committee consisting of Donna Siburt, Jill Coble, and Theresa Adams to identify criteria for future convention registration scholarships to be paid from Association funds.

• General consent to move forward with working with Valero to offer ADDC members the use of

Valero Travel Services via a link on the ADDC website.

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ADDC COMMITTEES IN DEPTH This month we will focus on the Membership Committee which is another ADDC Standing Committee. Every organization has a membership committee and it is one of the most important committees, without members, there is no organization.

The ADDC bylaws Article XII, Section 3 (g) states: “The Membership Committee shall provide assistance to the clubs in promoting ADDC membership”. Such a simple statement that encompasses a large job.

As with all committees, the committee’s guidelines go into a little more detail about the committee’s duties. Below are a few bullet points from the guidelines.

• Assist clubs in recruiting new members and creating/updating new member orientation program.

• Disseminate information on recruiting ideas gathered from clubs or elsewhere.

• Use ADDC brochures and “Invitation to Join” letters for recruitment purposes (Direct

Mailing Campaign).

• Update the Membership Handbook annually, if necessary.

• *Receive “Potential Member Meal Reimbursement Request” from clubs.

*I’m including more information on this program on the following pages.

The General Information Section following the ADDC bylaws has a section specifically addressing membership in clubs including “Benefits for Members”; Transfer of Membership; Guidelines for Membership Eligibility. Each club’s membership committee’s responsibilities are listed in the club’s bylaws.

*See additional information on this program on the following pages.

Special Note: One of the business items at B&P this year was to assign tasks to committees as well as board members, regions and clubs. You can locate this information beginning on page 26.

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Potential Member Meal Reimbursement Program

The purpose of the ADDC potential member meal reimbursement program is to financially aid clubs in recruiting new members. The following guidelines and procedures shall apply to the program. 1. To qualify for the reimbursement, the potential member must be a first time attendee. 2. The reimbursement shall be made on a one time basis for each potential member and shall not exceed thirty-five dollars ($35.00) per person. 3. The maximum reimbursement for each club per year shall be two hundred fifty dollars ($250.00). The reimbursement shall be paid by the ADDC to the club on a quarterly basis. 4. Request for the reimbursement shall be made using the MMR01 form and submitting to the ADDC Membership Committee Chairman no later than October 31. 5. The Membership Committee shall review the request for reimbursement and contact the potential member and ask them to complete a survey (Exhibit A). The information from the survey will be shared with the club.

Potential Member Meal Reimbursement Request Example of information required on the MMR01 form

Club: Name, Contact Information Potential Member: Name, Employer, Contact Information Dollar Amount Club is requesting for the reimbursement The form must be signed by the club president. Notation: The ADDC Membership Committee shall contact the potential member verifying attendance and obtain feedback through a simple survey. This information will be forwarded to the Club for future reference. See Exhibit A for the survey questions.

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Potential Member Meal Reimbursement Program

Survey Questions for Potential Members EXHIBIT A

Date of meeting attended: ______________________ 1. What is your overall satisfaction with attending your first Desk and Derrick

Meeting/Function?

Good Fair Dissatisfied 2. How would you rate the educational value of the meeting you attended?

Good Fair Low 3. Would you attend another meeting?

Yes No 4. What is your opinion of the meeting as a whole?

5. As a first time attendee, how would you rank the meeting on each of the following points using good,

fair or low?

A. Professionalism

B. Relevance of Educational Content

C. Overall Experience 6. Please provide suggestions for improving future meetings. Contact Information: Name: ________________________________________________________________ Company: ________________________________________________________________ Company Address: ___________________________________________________________

Preferred Phone/Email: ____________________________________________

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List of ADDC Assigned Tasks

Club Bylaws Review - Ryan Masterson – Keith Atkins 1) Review all of the bylaws to make sure the Purpose is correct. 2) Update Guidelines Education – Kathy Tawney – Keith Atkins 1) Take up educational program with Pierpont, and Fairmont State 2) Have committee members contact their local colleges to see if they want to be involved. 3) Research copyright issues involved with streaming DVD’s on website Membership – Lawrence Edelstein – Terry Ligon 1) Start performing exit interviews 2) Update PowerPoint currently on website 3) Create video to explain Membership reimbursement program a. Determine how many members we are getting out of program 4) Create a list of items to be included in Welcome packets a. Create a form letter with club contacts Program – Anna Lewis McBeth/Connie Bass – Terry Ligon 1) Create standards and minimums for programs 2) Start publishing programs on website Public Relations – Kathy Bickel – Christina Forth 1) Locate a PR firm a. Should deal with Energy and Educational companies b. Budget of $8000 approved 2) Create a list of colleges with Energy Programs a. Create form letter to send to colleges with Brochures 3) Create a list of O&G Associations, and other energy Associations a. Create form letter to send to various Associations Rules – Judi Adams – Christina Forth 1) Compile proposed bylaw changes Tax exempt US – Judy Saf – Tammy Watkins 1) Keep clubs/regions in compliance Tax exempt Canada – Brian Carter – Tammy Watkins 1) Keep clubs/region in compliance Manuals Review – Diana Walker – Keith Atkins 1) Works with committees to update guidelines 2) Check all forms / guidelines to make sure addresses have been corrected Certification – Charlene Tenney – Terry Ligon 1) Create flyers to be distributed at Regional meetings 2) Publish list of those who have achieved the certification for website 3) Work with Long Range Planning to expand Certification Contest – Rena Shaffer – Christina Forth 1) Look into returning entries digitally 2) Update rules and guidelines 3) Create a video to better explain the AIMEE process

(continued)

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List of ADDC Assigned Tasks continued DDJ – Peggy Loyd – Maggi Franks 1) Be more proactive, 2) Add more info from clubs and regions 3) Create price structure for ordering printed issues a. First copy free, charge after that GAME – Nell Lindenmeyer – Maggi Franks 1) Game has ideas for the year – go with those Insight – Wayne Ammons/Mark Loch – Maggi Franks 1) Compile list of what needs to be included in Insight if DDJ is eliminated 2) Make sure DDJ goes to members by 5th of each month 3) Include Thank you to Helen, Mark and Wayne Leadership Resources – Dorothy Semon – Connie Harrison 1) Research Leadership Sites and programs 2) Publish Leadership tips each month – work with Sheryl Minear 3) Create a video for website with Basic leadership tips. Long Range Planning – Mary T Vaughan – Terry Ligon 1) Look into expanding certification classes a. Renewables b. Reclamation c. Other aspects of Energy Nominating – Linda Rodgers – Maggi Franks 1) Status Quo Publications – Runell Seale – Connie Harrison 1) Create a new level of EAB – for middle to high school 2) Create a list to start updating abbreviator Registrar – Beverly Kovacevich – Tammy Watkins 1) Status Quo Scrapbook – Sheri Bienvenue – Maggi Franks 1) Status Quo Technology – Wayne Ammons – Maggi Franks 1) Research Facebook boosts 2) Research Apps a. Create this year’s survey – what do you want the app to do? Ad Hoc – Convention Scholarships – Theresa Adams, Jill Coble, Donna Siburt – Maggi Franks 1) Create criterion for 3 Convention registration Scholarships 2) Deadline of Mid-March, so it’s ready for regional meetings 3) Create directives on how clubs award scholarships Ad Hoc – Linda Rodgers – Christina Forth 1) Research selling media ads Conventions – various 2) Recruit Kathy Martin and Melinda Johnson to review and update convention guidelines

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List of ADDC Assigned Tasks continued 2016 Convention – Jerry Rassmussen / Elise Lorenz - Connie Harrison 1) Maggi to create talking points to be used at Regional meetings to explain deficit (to be reviewed by Connie, Marilyn, Linda, Sheryl and Christina) 2) Maggi to write letter to Jerry and Elise regarding deficit and ask for explanation. (review by the above) 3) Tammy / Mark to make corrections to convention GL Board 1) Mark – Update GLs per Adjusting JEs from Tammy and Sheryl 2) Terry - Report and Release 2016 4th Quarter Financials to membership 3) Tammy – Revise Budget, Report and Release to membership 4) Maggi report final 2016 convention costs 5) Christina – Write articles on what Mark and Wayne do for the Association 6) Sheryl – write our proposed amendments 7) Keith – B&P highlights, and minutes 8) Maintain day to day ADDC business 9) Create files to be passed each year 10) Unassigned – create a list of dues for similar organizations Regions 1) If not already available, create files to be passed from RD to RD. To include, but not limited to: a. Podium Book b. Region Resolution c. Copies of the bylaws for each club in the region d. Orientation information e. Current Region Fund information 2) Work on Regional meetings Clubs 1) Send Bulletins to webmaster 2) Send calendar events to ADO/Webmaster by 1st of each month 3) Communicate with RDs, and Board.

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Association of Desk and Derrick Clubs

58th Annual Region IV Meeting

Holiday Inn Downtown Marina 707 N. Shoreline Blvd, Corpus Christi, Texas

May 3 – 6, 2017

Hosted by:

Desk and Derrick Club of Corpus ChristiCorpus Christi, Texas

http://www.addc.org/site/assets/files/1031/region4registrationpacket.pdf

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TENTATIVE AGENDA

Wednesday, May 3, 2017 7:30 am – 8:00 am 5:00 pm – 6:30 pm

Registration Open Foyer

5:00 pm – 6:30 pm Hospitality Open Hospitality Suite/Parlor 8:00 am - 4:00 pm Certification Class - Marketing Padre Island B 5:00 pm – 8:00 pm Meet and Greet Poolside

Thursday, May 4, 2017 7:00 am-9:30 am Registration Open Ballroom Foyer 7:00 am-8:00 am 5:00 pm-6:00 pm

Hospitality Open Hospitality Suite/Parlor

7:45 am King Ranch Field Trip: Load bus in front of hotel (Lunch included)

Offsite

8:00 am

Port of Corpus Christi/Texas State Aquarium: Load bus in front of hotel (Lunch Included)

Offsite

8:00 am* (*Time may change)

Texas A&M University Corpus Christi /Desk & Derrick Archives: Load bus in front of hotel (Lunch Included)

Offsite

Friday, May 5, 2017

7:30 am – 8:00 am 5:00 pm – 6:30 pm

Registration Open Ballroom Foyer

9:00 am - 11:00 am Seminar: Geomorphology & Geologic History Of the Nueces

River Valley Corpus Christi Bay Laguna Madre and Padre Island

Padre Island “C/D”

9:00 am -12 noon Seminar: I H S - Improving Productivity with Integrated workflows and Field Production Gathering

Padre Island “A”

12 NOON – 3:00 pm President’s Lunch meeting Montys Room

5:30 pm No Host Bar Riviera Ballroom Foyer 6:30 pm Ice Breaker Riviera 2, 3, 4 & 5

Saturday, May 6, 2017 7:00 am-8:00 am 4:00 pm-5:00 pm

Hospitality open

Hospitality Suite/Parlor

7:30 am Delegates/Alternates Check in for Business Session Marina View Foyer 8:30 am-11:30 am Business Session Marina View 12:00 pm-2:00 pm Awards Luncheon- ADDC President, Maggi Franks

Keynote Speaker Padre Island Ballroom

2:30 pm-4:00 pm Region IV Forum - Marina View 5:00 pm-6:30 pm Club Pictures - detailed list provided in registration packets TBD

5:30 pm Social- Cash Bar Marina View 6:30 pm Region IV Banquet Marina View

Region IV Director’s Reception immediately following Banquet- Hospitality Room Sunday, May 7,2017

7:30 am-9:00 am Hospitality Open