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BaSiN RESoURcES6

www.basinresourcesusa.com • WiNTER 2014

Don Vaughan

puBliSHER

Cindy Cowan Thiele

EDiTOR

Dorothy Nobis

CONTRiBuTiNG WRiTERS

Josh Bishop

CONTRiBuTiNG pHOTOGRApHER

Suzanne Thurman

DESiGNER

Shelly Acosta

Clint Alexander

Aimee Velasquez

SAlES STAFF

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Basin Resources magazine is published four times ayear by Majestic Media. Material herein may not bereprinted without expressed written consent of the pub-lisher. Opinions expressed by the contributing writersare not necessarily those of the publisher, editor orBasin Resources magazine. Every effort has been madeto ensure the accuracy of this publication. However thepublisher cannot assume responsibility for errors orommissions. © 2014 Basin Resources magazine.

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Fall 2014

column 8School of Energy expansion

Keynote Speaker 46San Juan Basin Energy conference set for march 24-25

BLm refutes claims 50

pNm, pRc set hearings 56

Energy News 59

change of power 14midterm election results bode well for energy industry

partners with Navajo Nation 20Raytheon working on $4.4 expansion

methane Hotspot 10Reports explanation shows ‘ignorance about fracking’

ipaNm 13photo contest winners

contents

34

27

HoNSTEiN oiL BUyS FRaLEy & compaNyEmployee satisfaction,

customer service drivescompany’s success

40

coNSTRUcTioNoN ScHEDULE

New School of Energygetting rock star level

attention

Toxic mixKemKey has a solution that

eliminates chemical cross contamination

BASIN RESOURCES8

www.basinresourcesusa.com •WINTER 2014

The San Juan College School of Energy will offer nine new

degree/certificate programs next spring. The addition and ex-

pansion of these programs comes at the request of our industry

partners who direct, support and understand the importance of

training provided by the School of Energy.

While the new degrees and certifications will assist all of our

students, as the dean of the School of Energy, I hope we can

reach another sector of our community that will benefit from

the training and, ultimately, the jobs that training will provide.

That important sector is the United States military, our veter-

ans who dedicated their lives and their service to protect our

country and preserve our freedoms. Many of those veterans re-

turn home only to discover that good jobs are hard to find. The

experiences they had, the lessons they learned, and the knowl-

edge they gained while in the military aren’t always understood

or appreciated by potential employers.

In addition to readjusting to a normal family life, veterans

are also striving to find a place in the job market so they can

provide for their families. It can be difficult and it can create

additional stress on people who have endured the ultimate

stress – fighting on and off the battlefield.

It is probable that no other segment of our population can

truly relate to and understand the challenges offered by the oil

and gas/energy industry. They understand and value the team-

work needed in the industry and they appreciate all the indus-

try does for our country. They’re not afraid of hard work

because they honed a good work ethic while serving in the

military. They respect good leadership, they understand the im-

portance of safety, and they recognize the need for beneficial

policies and procedures.

The oil and gas/energy industry has added millions of jobs

in recent years, and the opportunity to create more jobs is

likely. Recent elections indicate that the Keystone pipeline is

expected to receive Congressional approval, giving thousands

of people good jobs with good pay and benefits. Who better to

help fill those jobs than our veterans?

There will be a need for people who are skilled in environ-

mental, health and safety fields. There will be a need for main-

tenance mechanics, petroleum production operators, occupa-

tional health, safety and environmental professionals, and other

jobs. Those who earn their degrees and certifications through

the School of Energy’s programs will be recruited by our in-

dustry partners, because they know the experienced instructors

and staff at the SoE are dedicated and committed to the success

of each and every student. The industry reaches out to the

School of Energy for employees and comes to the school annu-

ally, doing interviews and recruiting from our students. The

solid reputation the school has in the industry attracts students

from throughout the country, and our industry partners are

eager to hire them when they complete their training.

The School of Energy provides scholarships to veterans and

to others who need financial assistance. As the dean, I work in-

dividually with many students, helping them find the financial

rAnDy PAchEco

DEAn of School of EnErgy

SAn JuAn collEgE

Along with new degree/certificate programs School of Energy will work to attract veterans

* Pacheco 22

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BASIN RESOURCES10


Dorothy Nobis

Basin Resources

the “cloud of methane” hovering over

the Four Corners has scientists debating

whether the cloud has evolved because of

natural gas production and processing.

Eric Kort of the University of Michigan

authored a study that was printed in octo-

ber in the journal Geophysical Research Letters.

in his study, Kort stated that the “hot spot,”

which covers 2,500 square miles, could be

produced from agriculture, forest fires and

the mining and processing of fossil fuels. in

his study, however, Kort states the sources

include heavy production of a fuel called

coalbed methane, which exists as a gas in

the pores and cracks of coal deposits, as

well as from two power plants – the Four

Corners Power Plant and the san Juan Gen-

erating station.

Kort also stated that the observation pe-

riod – gathered from 2003 to 2009 – pre-

dates the widespread use of hydraulic frac-

turing, called fracking, near the hot spot.

therefore, the methane emissions didn’t

come from fracking, but from leaks in previ-

ously established natural gas production and

processing.

John byrom, president and chief execu-

tive officer for DJ simmons, an independent

oil and gas company based in Farmington,

took exception to Kort’s statement.

Report’s explanation shows ‘ignorance about fracking’

Methanehotspot

BASIN RESOURCES 11

WINTER 2014 • www.basinresourcesusa.com

“This shows his ignorance on the fracking topic,” Byrom

said. “We’ve been fracking in this basin since at least the early

1960s.”

Researchers used observations by the European Space

Agency’s Scanning Imaging Absorption Spectrometer for At-

mospheric Chartography (SCIAMACHY) and a Los Alamos

Lab ground station for independent validation. Researchers

found that from 2002-2009, the Four Corners area released

about 650,000 tons of methane into the atmosphere.

Scientists at NASA and the University of Michigan re-

leased the information about the cloud of methane over the

Four Corners in late October.

Byrom was reluctant to call the study a “scare tactic,” he

did say he thinks people are taking advantage of the informa-

tion and providing it at a time when President Obama is ag-

gressively attempting to reduce America’s greenhouse gas

emissions.

A Nov. 25 editorial on The New York Times website ad-

dressed President Obama’s pledged to reduce America’s

greenhouse gas emissions 17 percent below 2005 levels by

2020. The president also pledge a 26 percent to 28percent

cut by 2025. “The first target will be hard to reach – and the

second virtual impossible – without a determined effort on

his part to cut methane emissions from the oil and gas indus-

try” the editorial stated.

Calling the timing of the study “interesting,” Byrom said

those involved in the study have not yet provided the scien-

tific data for public review. “If there’s a scientific study, let’s

see it,” Byrom said.

Byrom also said that since the San Juan Basin is sur-

rounded by mountain ranges which create a bowl, the hot

spot would be brighter here than in other areas of the coun-

try, which also benefit from the oil and gas industry.

“The fact that the rocks that contain the gas that we drill

for in the center of the basin are bent upward and are ex-

posed at the surface, like the rim of a partially buried bowl,”

Byrom explained. “This rock is known to leak hydrocarbons

where they are exposed.”

Rock formations, including the Mesa Verde and Fruitland

Coal formations, have been emitting emissions for years,

Byrom said. “There’s a lot of leakage of gas where the pro-

ducing rocks come to the surface around the rim of the

basin,” he explained, “it’s been going on for millions of

years.”

Byrom also understands the need for the oil and gas in-

dustry to work together to help minimize emissions. “I’m

not an expert,” Bryom said, “but if there are questions raised,

let’s study them. The (oil and gas) industry is dedicated to

reducing vapor emissions. We’ve already made a lot of

“There’s a lot of leakage of

gas where the producing rocks

come to the surface around the

rim of the basin. It’s been

going on for millions

of years.”

— John byrom

president

dJ simmons

BASIN RESOURCES12


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progress recovering vapors so they no

longer go into the atmosphere.”

Working together – and sharing the

necessary information and data – can do

more to reduce emissions than a map

showing a brightly colored spot over the

Four Corners area, Byrom added.

By studying the concerns, sharing sci-

entific information and working together,

Byrom believes solutions can be found.

“But having people say we need to get

rid of oil and gas – that’s just absurd.”

An article on the thinkprogress.org

website also addressed the hot spot and

the study. The article states that “The

Obama administration’s Climate Action

Plan has a whole strategy to cut methane

emissions, which includes proposed EPA

regulations to reduce methane from land-

fills, standards for oil and gas operators

to reduce venting and flaring, and part-

nerships with the dairy industry to vol-

untarily reduce methane emissions from

cows.”

Byrom has another explanation for the

hot spot over Farmington, however.

“Everyone knows that Farmington is the

breakfast burrito capital of the world,” he

said. “So I think that’s what’s causing

that hot spot.”


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BASIN RESOURCES 13

IPANM 2014 photo contest winnersThe premise that man and nature cannot co-exist, that where

man encroaches, wildlife scatters and dies out, is simply untrue.

In New Mexico oil fields, many species of wildlife use equip-

ment in a productive manner. Birds will use elevated surfaces as

foundations for nests. Deer, such as caribou, use the equipment for

a windbreak and warmth.

There is so much wildlife in the oilfield that in 2004 the Inde-

pendent Petroleum Association of New Mexico created a photo

contest where oil field workers and others could win cash prizes

for the best photo or video demonstrating wildlife adapting to

manmade changes in their environment.

Photo contest winners

1st place: Paul Sikora II, Farmington, N.M. – $1,000

2nd place: Bill Royce, Farmington N.M. – $500

3rd place: Douglas McClean, Roswell, N.M. –$250

1st place: Paul Sikora II, Farmington, N.M.

2nd place: Bill Royce,

Farmington N.M.

3rd place: Douglas McClean,

Roswell, N.M.

BASIN RESOURCES14


Now that the dust has settled on the 2014 midterms, we can

get a sense of how things will change in Washington under a

Republican-controlled Senate – and energy will be front and

center.

Republicans and Democrats have very different views on en-

ergy development and policy. The past six years have seen tax-

payer dollars poured into green-energy projects that have

embarrassed the administration and promoted teppan-style re-

newables that chop up and fry unsuspecting birds midflight and

increase costs for consumers and business. Meanwhile, Republi-

cans have touted the job creation and economic impact avail-

able through America’s abundant fossil-fuel resources.

Voters made their preference clear: Republicans won more

seats, and with bigger majorities, than anyone predicted.

The day after the election, the Friends of the Earth, wasting

no time, sent out a dramatic fundraising pitch, opening with:

“The election’s over — the planet lost.” (You may not have even

known that the planet was on your local ballot, but apparently

it was.)

The email’s proclamation, once again, exposes the environ-

mentalists’ agenda: “President Obama hasn’t always done the

right thing for the environment. He should have denied the

Keystone Pipeline years ago, he should be rolling back

unchecked fracking, and he should have taken stronger action

on climate both at home and in international negotiations.”

Thankfully, though ideologically aligned with them, he at-

tempted to appease and didn’t take the extreme level of action

Friends of the Earth would have liked.

The Keystone pipeline remains a strong possibility, though

the Canadians have nearly given up on us. While it failed in a

recent vote, Republicans plan to make it a top priority when

they take over in January.

Fracking is regulated at the state level, which mostly allows

it to continue to increase America’s energy freedom – resulting

in lower prices at the pump. Because more than 96 percent of

the wells drilled in America today use the decades-old – but

new-and-improved – technology of hydraulic fracturing, a fed-

eral fracking ban, like that which environmental groups have

been trying to pass through city and county initiatives, would

virtually shut down our booming energy economy. President

Obama tried, but he couldn’t pass a cap-and-trade bill – even

when his party controlled both houses. Nor could he get a new

Kyoto-style international treaty ratified. Most of the western

world is now retreating on the climate pledges made in a differ-

ent political era.

Friends of the Earth is correct, though. The email states: “Now,

with both the Republican Senate and the House salivating and

Marita k. noon

exeCutive DireCtor -

energy Makes aMeriCa great inC.

Change of power, Change in poliCy

Midterm election results bode well for energy industry

BASIN RESOURCES 15


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ready to sink their teeth into our most

basic environmental laws, the President’s

environmental legacy is truly at stake.”

The Republicans are likely “salivating” –

though not specifically about “basic envi-

ronmental laws.”

Big changes in energy policy are in the

works. Not just because Republicans

want to destroy the president’s “legacy,”

but because a wealthy country is better

able to do things right. A growing econ-

omy needs energy that is efficient, effec-

tive and economical – which is why

countries such as China and India will

not limit energy availability and why Re-

publicans want to expand access in the

U.S.

What energy policies might the Re-

publicans want to “sink their teeth into”?

Federal lands

President Obama likes to brag about

the increased U.S. production of oil and

gas. In his post-election press conference

he stated: “Our dependence on foreign

oil is down.” While the statement is true,

it falsely implies that he had something

to do with that fact.

Reality is, as a Congressional Re-

search Service report makes clear, while

oil production has increased

61 percent on state and

private lands, it has de-

creased 6 percent on federal

land where the administra-

tion has authority. Addition-

ally, the report points out,

applications to drill on federal

lands take nearly twice as long to

process under the Obama administration

than they did previously.

Not only has the White House dis-

couraged drilling on federal lands, Presi-

dent Obama has used his pen to lock up

federal lands with potential development,

such as the newly designated Organ

Mountain Desert Peaks National Monu-

ment – which blocks production without

analyzing the economic impact. “Every

time they lock up federal lands, whether

through national monuments, conserva-

tion areas, or wilderness areas,” Steven

Henke, President of New Mexico Oil and

Gas Association, told me,

“they eliminate the poten-

tial for royalties from the

federal estate. Those funds

benefit both the state and

federal government and reduce

the burden to the taxpayers.”

For example, one prediction has

drilling in the Arctic National

Wildlife Refuge (ANWR) becoming a

part of the Republican Party’s vision of

energy independence. Alaska’s senior

Senator: “Lisa Murkowski has long ar-

gued that drilling in ANWR would help

reduce the national deficit.”

Not all federal lands have oil and gas

BASIN RESOURCES16

www.basinresourcesusa.com • WINTER 2014

or other mineral-extraction, potential, so

a reversal of policy may not increase

production by the 61 percent seen on

state and private lands – but it could

mean the U.S. not only passes Saudi Ara-

bia in oil production, it leaves it in a

dust storm.

Oil and natural gas exportsBefore the new Congress is sworn in,

we already hear a lot of talk about lift-

ing the ban on oil exports that was put

into place in response to the 1970’s

Arab oil embargo. Reuters reports that

Senator Murkowski: “has fought to relax

the ban all year by issuing a series of pa-

pers detailing how such exports have

been allowed in the past, holding a pri-

vate meeting on the subject with Com-

merce Secretary Penny Pritzker, and

hinting that 2015 could be the time to

introduce ban-ending legislation.”

With the Republicans now in charge

come January, Murkowski will become

the Chairman of the Energy and Natural

Resources Committee. She is expected to

start by “holding hearings, pressuring

Obama administration officials, and test-

ing the level of support from party lead-

ership.”

“Policy makers need to catch up with

the industry,” said Harold York, an ana-

lyst of the refining sector at Woods

Mackenzie. He projects that easing the

crude oil restrictions “would lead to $70

billion in investment spending in the

U.S. oil sector and further economic

stimulus.”

Different from crude oil, the law cur-

rently allows liquefied natural gas (LNG)

exports, but the Energy Department has

dozens of applications for LNG export

terminals languishing on some bureau-

crat’s desk. Just six applications have

been approved in the past year. Biparti-

san support exists for expediting the per-

mitting process – especially in light of

Russia’s stranglehold on natural gas sup-

plies to many of our European allies.

Legislation must be drafted and passed

to allow exports to non-European free-

trade countries.

Environmental Protection Agency President Obama’s Clean Power Plan

(CPP) has widespread opposition within

the Republican Party – including state

governors who struggle to interpret the

regulations but who are asking the right

questions regarding the impact on their

individual states. Even coal-state Democ-

rats, such as Senator Joe Manchin (D-

W.Va.), have concerns with the CPP.

The CPP has the potential to prema-

turely shutter hundreds of coal-fueled

power plants when viable options exist


for the plants’ replacement. This winter, Massachusetts is ex-

periencing a 37 percent increase in electricity rates over last

year because plants closed without sufficient infrastructure for

their replacement.

The CPP plus the many other regulations – such as those

coming on ozone and methane – have many lawmakers con-

cerned about the EPA’s impact on grid reliability and the

economy. President Obama is not likely to sign any legislation

designed to rein in his personal priorities, but Republicans can

make changes in EPA appropriations.

In a post-election analysis webinar, Scott Segal, founding

partner of the Washington, D.C.-based Policy Resolution

Group, declared Obama’s approach to greenhouse gas emis-

sions – specifically the CPP which projections show may cost

$42 billion – is the number one priority of the Energy and

Natural Resources and Environment and Public Works Com-

mittees. He believes the committees’ oversight will look at reli-

ability, cost, and, benefits. Segal said: “I think you can expect

tailored legislation to focus on these topics. You can expect use

of the Congressional Review Act for resolutions of disapproval

when these regulations become final. You can also look to the

appropriations process. ... that might mean an Interior and En-

vironment appropriations bill might have a rider, not that sets

aside the CPP entirely, but that makes narrowly targeted

changes to that plan. Then the president would be confronted

with a choice: ‘Do I essentially shut down the EPA, or do I

work with Republicans in the House and Senate to reform my

proposal?’”

The Endangered Species ActThe ESA is in dire need of revision, updating or outright re-

peal. Though well-intended in the beginning, it has more re-

cently been used as a funding tool for environmental groups

BASIN RESOURCES18


and a way for them to block economic ac-

tivity, such as oil-and-gas extraction, and

ranching, farming, and mining.

Earlier this year, a group of 13 GOP

lawmakers released a report, which called

for an ESA overhaul, though CBS News

called the changes “unlikely, given the

pervasive partisan divide in Washington,

D.C.” CBS continues: “The political hur-

dles to overhaul are considerable. The ESA

enjoys fervent support among many envi-

ronmentalists whose allies on Capitol Hill

have thwarted past proposals for change.”

Reports now declare: “Climate change

compromises may be easier with China

than with Congress.”

What does Inhofe have in his power?

Andrew Wheeler, EPW staff director

when Inhofe previously was chairman,

says: “I know he won’t hesitate to conduct

oversight of the Democratic Obama Ad-

ministration.”

The E&E report projects: “Among the

topics Inhofe would likely zero in on:

EPA’s rules to clamp down on greenhouse

gas emissions from power plants, a contro-

versial EPA proposal to clarify the scope

of the Clean Water Act and the science

underpinning federal environmental rules.

EPA management could also be the topic

of some oversight hearings.” Wheeler

added: “I think his climate work will

probably be focused more on the EPA reg-

ulation.”

The $3 billion pledge to developing

countries is subject to Congressional ap-

propriations. In a statement from Inhofe’s

office, he vows to work with his col-

leagues “to reset the misguided priorities

of Washington in the past six years.”

He says: “The President’s climate

change agenda has only siphoned precious

taxpayer dollars away from the real prob-

lems facing the American people.”

The National Journal states: Republi-

cans “want nothing less than to send

money to poor countries to fight climate

change.”

As a part of this shift, watch for environ-

mental activists to be more aggressive on the

state level – pushing for increased mandates

for renewables and more regulation and/or

bans on hydraulic fracturing.

“I think his climate work

will probably be focused

more on the EPA regulation.”

— andrew wheeler

ePw staff director

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25-year partnership

with Navajo Nation

BASIN RESOURCES20


BASIN RESOURCES 21

$4.4 million expansion plans at Diné

Faciliy set for completion in 2015Dorothy Nobis

Basin Resources

A contractor has yet to be selected and a

design has yet to be completed, but the en-

thusiasm and excitement of political, tribal

and business leaders who are anticipating

the construction of a new raytheon ware-

house likens to children waiting for santa

Claus. the new facility, located on Navajo

Nation land, will span 30,000 square feet

and will be located adjacent to the main

site. it is the result of three years of collab-

oration between the Navajo Nation, the

state of New Mexico, san Juan County,

and raytheon.

Drawing of new 30,000-square-foot warehouse.


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great pay and benefits, please call us at 505.327.5705.

The oil and gas/energy industry continues to grow and needs

trained employees. You will be surprised at the small investment you

will make when you attend our classes and I encourage you to invest

in your best resource – YOU.

Pacheco continued from 8

Raytheon partnered with the state of New Mexico and Navajo

Nation to fund the expansion project. Upon completion, the

Navajo Nation will retain ownership of the site, and Raytheon will

lease the manufacturing space.

“Our NAPI facility has delivered exceptional production and

safety metrics, making it the ideal location for us to expand our

high-rate production capability,” said Louise Francesconi,

Raytheon Missile Systems president. “We look forward to building

on its success with this expansion.”

The new warehouse will enable Raytheon to increase produc-

tion efficiency, while reducing risk to materials and products.

Raytheon provides state-of-the-art electronics, mission systems in-

tegration and other capabilities in the areas of sensing, effects and

command, control, communications and intelligence systems. In

addition, the company provides cyber security and a broad range

of mission support systems.

Raytheon is headquartered in Waltham, Mass., and had sales of

$24 billion in 2013. With 63,000 employees worldwide, the

company is a technology and innovation leader specializing in de-

fense, security and civil markets throughout the world.

Construction on the $4.4 million warehouse is expected to

begin in early 2015, said Matthew Ryan, plant manager of the

Raytheon Dine’ Facility. Funding of the building is being

“Raytheon’s plan is a very long-term

partnership with the Navajo Nation to grow

the abilities and responsibilities of Navajo

team members, while increasing the size of the

Raytheon presence with the Navajo Nation.”

— MATTHEW RYAN,DINé FACILITY

PLANT MANAGER

BASIN RESOURCES 23


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provided by the Navajo Nation,

which will lease it to Raytheon.

The building design is being

funded by the State of New Mex-

ico.

In addition to adding to the

footprint of the current facility,

the new warehouse construction

will provide jobs to the area.

“Many construction jobs will be

created during the project,” Ryan

said. “The completed facility will

ensure the retention of over 40

employees long-term at the entire

Raytheon Dine’ Facility.”

The partnership between

Raytheon and the Navajo Nation

has been built on economic devel-

opment.

“Raytheon is always looking

for approaches to be a great part-

ner to the Navajo Nation,” Ryan

BASIN RESOURCES24


added. “Efforts include active searches for more work at the

Raytheon Dine’ Facility, which provides employment oppor-

tunities, support of Navajo schools to develop needed techni-

cal skills, and support to numerous Navajo organizations that

promote health and education.”

Raytheon has been adding to the economic foundation of

the Navajo Nation for 25 years.

Construction is anticipated to be completed by fall of

2015.

“Raytheon’s plan is a very long-term partnership with the

Navajo Nation to grow the abilities and responsibilities of

Navajo team members while increasing the size of the

Raytheon presence with the Navajo Nation,” Ryan said.

At the NAPI facility, Raytheon currently assembles parts of

12 missile and munitions programs for the U.S. Army, Air

Force, Marine Corps and Navy.

Raytheon Company, with 2006 sales of $20.3 billion, is

an industry leader in defense and government electronics,

space, information technology, technical services, and business

and special mission aircraft. With headquarters in Waltham,

Mass., Raytheon employs more than 80,000 people world-

wide.

Courtesy photo

Ben Shelly, president of the Navajo Nation, gives remarks at the groundbreaking.

www.FlyGreatLakes.com1-800-554-5111Four Corners Regional Airport

1300 W. Navajo St. Farmington, NM • 505-599-1395

www.IflyFarmington.com

��

BASIN RESOURCES 27


Dorothy Nobis

Basin Resources

A partnership between a father and son

in 1982 in Española, N.M., has grown into

a company that hasn’t forgotten its core

belief in doing business – taking care of its

customers and its employees.

rod honstein and his father, roy,

started honstein oil & Distributing Com-

pany to distribute Chevron fuels and lubri-

cants in the santa Fe/Las Vegas, N.M.,

area. roy had been a distributor for

Chevron in Española, N.M., since the late

1950s, and rod had been an area sales

manager for the construction machinery

division of FiAt, based at its North Ameri-

can headquarters in Chicago.

Honstein oil buys

Fraley & CompanyEmployee satisfaction, customer service drives company’s success

Photos by Josh Bishop

BASIN RESOURCES28


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Originally doing business out of a small rented warehouse in

Santa Fe, Honstein Oil outgrew that facility in four short months

and moved to a larger building on Airport Road in Santa Fe. In

1985, the company purchased Smith Oil Company in Santa Rosa

and Moriarty, expanding its territory. In 1992, the company ac-

quired Champion Oil, a Phillips 66 distributor in Santa Fe, which

gave Honstein Oil a retail site in the capital city and the opportu-

nity to add two FUELlink cardlock locations.

Big Bear Petroleum in Albuquerque was the next acquisition

for the company, once again expanding its market. A Chevron

convenience store/gas station was added to the company’s retail

presence. Two additional retail stores were added in 1999 and in

2004 Honstein Oil again expanded with the acquisition of Gun-

derson Oil Company in Grants.

In 2013, Honstein Oil became a part of the Brad Hall & Asso-

ciates (BHA) family, which became a major stockholder and

strengthened the company’s financial position and its market

presence.

Growth continued when the company acquired Fraley & Com-

pany, a successful marketer in the Four Corners. Fraley’s presence

in the oil and gas sector, as well as mining and agriculture, added

to the strength of Honstein Oil.

While growth is exciting, it also brings challenges, said Jason

Allee, Honstein Oil’s general manager.

“The largest challenge we faced was creating synergies between

two companies when we purchased Fraley,” Allee said. “This was

not the type of purchase where we came in and changed every-

thing. We took what Fraley had and tripled it, nearly overnight.

With that, we needed all former Fraley employees to buy into our

new vision.”

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BASIN RESOURCES30


Learn more about Encana’s operations in San Juan:

encana.com/sanjuan

Growing technology to responsibly grow assets.

Pioneering new technologies allows Encana to optimally grow its assets in the San Juan while minimizing disturbance to nearby communities.

e about Encana’n morLear

encana.com/sanjuan

ations in San Juan:s opere about Encana’

encana.com/sanjuan

“The largest challenge we

faced was creating synergies

between two companies

when we purchased Fraley.”

— Jason allee

Honstein oil

General ManaGer

Allee has personal knowledge of the area. He and his father

owned Farmington Oil Co., in Farmington, which was sold in

2007, and he continued to run the company for seven years. Dur-

ing that time he managed two different mergers and acquisitions.

With that experience, he knew firsthand the challenges of creat-

ing a culture where employees can thrive and be excited about

change.

“Most people inherently fear change and the biggest challenge

is to create confidence in them and share the vision for the future.

We have had tremendous success in this endeavor and employ-

ees seem to be happier than ever,” Allee said.

Rewarding employees who provide new ideas and methods of

operation that benefit the company is also a priority for Honstein

Oil.

“We have spent much energy focusing on how to properly give

our employees ‘buy in’ into the company,” Allee said. “Not stock,

but pride. With this, we have created several unique and, we con-

sider, groundbreaking pay structures from the top (level of man-

agement) to the commercial drivers. In addition, we have unique

safety incentives and many surprise spot checks that are rewarded

with gift cards and other financial means.

The success of the company isn’t guaranteed with the happi-

ness of employees, however. “Our secret to success is our people

and our unified mission of taking care of the customer,” Allee

said. “Customer service drives our success. We see a lot of poten-

tial for growth and we’re currently experiencing exponential

growth, even exceeding our expectations.”

“Of course, our success is directly tied to the local oil and gas

economy,” Allee added. “We are cautiously proceeding forward

with a lot of excitement.”

The challenges that face the oil and gas/energy industry are

many and Allee said planning and investing is done with caution

as well. “The oil and gas industry’s greatest challenge is the politi-

cal risks, driven by health, safety and environmental issues. In ad-

dition, an unclear energy policy makes it very difficult to plan and

invest for the future.”

Twin Stars, a locally owned equipment maintenance and natu-

ral gas compressor leasing company in Bloomfield, has been a

client of Honstein from the beginning of its operations in the

Four Corners.

“Chevron lubricants have helped us get superior run time out of

our equipment, which gives us peace of mind and the competitive

edge we need to maintain our service and quality equipment repu-

tation,” said Roger Armstrong, Twin Stars general manager.

“It’s not surprising at all that we get great service from Hon-

stein,” Armstrong added.

“Jason Allee and his crew have always given us the best service

of any lubricants and coolants supplier in the area. It all comes

down to the great results we have had for many years with

Chevron lubricants, along with the exceptional customer service

and relationship we’ve developed with Jason and his people.”

“We know we can count on Honstein and Chevron lubricants

to deliver consistent quality products at a fair price. And if we

need help resolving any issues, they are right there for us with all

the resources they can get their hands on,” Armstrong said.

“Twin Stars is a service oriented company and our reputation

BASIN RESOURCES 31


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means everything to us,” Armstrong

said. “Honstein understands that and

does everything they can to help us

serve our clients at the level they’ve

come to expect from us.”

With a long history of success, Hon-

stein Oil is confident it will continue to

be a major player in the oil and gas in-

dustry. “Our work environment is very

collaborative and we are always trying

to discover newer, better and different

ways to accomplish our business and

customer goals,” states the company’s

website. “Our organization doesn’t have

a lot of layers of management, which

means that employees can, at any time,

get all the way to the top with any

issue, problem or concern. We try hard

to foster an environment where innova-

tion and customer service is rewarded.

The bottom line is, we just enjoy our

work and providing our customers with

great service.”

BASIN RESOURCES34


KemKey has a solution that eliminates

chemical cross contamination


4

Dorothy Nobis

Basin Resources

in the 30 years randy brown has been

in sales and management for the special

chemistry industry, he has seen, heard and

experienced a lot.

Most important to brown over the

years was the numerous incidents he was

aware of that involved chemicals being

transferred into the wrong tanks.

While many of those incidents were

not life threatening and involved just the

ruination of a tank were chemical, there

were incidents that caused property dam-

age, evacuations and, unfortunately, death.

“Many of the accidents were never re-

ported nor had investigations done out-

side of the plant/company where the in-

cident took place,” brown said.

“No one was hurt and the results were

contained within the confines of the

plant.”

“there have been many instances/acci-

dents,” brown added. “A good example is

the incident where PNM put acid into a

tank of chelant, making a brown cloud.

No one was hurt, but $55,000 of chemi-

cals were wasted and the cost of cleanup

is unknown.”

brown decided there needed to be a bet-

ter way of ensuring the right chemicals

were placed in the correct tanks. “it is not

possible to plug a 110-volt appliance into a

220-volt receptacle,” he said. “you can’t put

diesel into a gasoline car. you cannot con-

nect an acetylene cylinder to the oxygen

connection for a cutting torch. Not every

house key works in every door lock.”

brown’s vision was to help the industry

make it impossible to transfer the wrong

chemical into the wrong tank. “i was in-

spired to produce a product when i was in

a meeting with Los Alamos National Lab,”

he said. “they had an incident and were

in the process of expanding and restarting

the facility that had the accident. they

(LANL officials) asked me how they could

make sure that it would not happen again.

i told them they needed different fittings

for each chemical.”

BASIN RESOURCES 35


BASIN RESOURCES36


Brown created fittings that were spe-

cific for each chemical, color-coding

them to make it easier to put the correct

chemical into the correct tank. He con-

tacted a patent attorney and filed a patent

application in September of 2012. With

the help of friends and the Merrion

Foundation, Brown started his business,

KemKey, and displayed his product at his

first trade show in June of 2013.

PNM became his first customer and

the University of New Mexico became

his second. “We have interests in New

Mexico, and in Florida, New Jersey,

Ohio, the United Kingdom, Brazil and

Australia,” Brown said proudly. I con-

tracted with a testing lab to test our fit-

tings and to compare results with the

industry standard, as well as one of our

higher quality competitors.”

The results of that testing showed

KemKey’s product was better than the

competition – so much better that Brown

believes Los Alamos National Laboratory

and Sandia National Laboratory will be

interested in his products.

Ed Munoz, a lab and plant operations

supervisor for PNM, said the San Juan

Generating Station has had several inci-

dents that could have been catastrophic

when incompatible bulk chemicals were

mixed together.

“After one of our last incidents, I

started researching these types of events

and it seems it happens on a very fre-

quent basis industry-wide,” Munoz said,

“and some have had the effect of endan-

gering life and property.”

“Because of our own experiences, I

was very open to anything that could de-

crease these chemical hazards,” Munoz

added.

Brown had been an account manager

for one of PNM’s chemical distributors

and had become a trusted associate to

Munoz. “When Randy approached me

with this novel concept of fittings that

were made for each family of chemical,

this immediately caught my attention. He

brought me prototypes of his product

and I told him I would be his first cus-

tomer.

Munoz took the concept to the engi-

neering and safety staff, who agreed that

using Brown’s products, would reduce

the probability of mixing incompatible

hazardous chemicals.”

“We have installed these bulk delivery

fittings at our facility and are in the

process of making sure all bulk chemicals

that are delivered onsite are set to this

standard,” Munoz said. “I believe this to

be a revolutionary concept that can make

industries that use hazardous bulk chemi-

cals a lot safer.”

Brown’s goal is to become profitable

BASIN RESOURCES 37


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by June, 2015. “This is an interest-

ing concept in that there are only

two ways for the company to go,” he

said. “It can collapse and never get

any footing (which no one who has

seen the concept believes because it

makes so much sense), or it will be-

come an industry standard over

time. I estimate that the chemical

quick-connect market is about $500

million in North America and sev-

eral billion dollars worldwide.”

KemKey is located in Edgewood,

N.M. and has two employees. With a

future that looks promising, Brown

is optimistic and confident. “In the

future, instead of asking for a stan-

dard cam-locking fitting, industry

will order the correct KemKey

Safety coupling for the job,” he said.

For more information visit

www.Kemkey.com.

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BASIN RESOURCES 41


Financing Options Available • Blueprints with estimates (not guesstimates)

505-327-75253005 Northridge Drive, Suite K

www.basinelectricnm.com

• Residential Projects• Commerical Projects

• Industrial Projects

• New Construction

• RemodelingAdditions

• Service Calls

• Repair &Replacement

SPECIALIZINGIN

ConstruCtion

on sChedule


New School of Energy getting

rock star level attention

Dorothy Nobis

Basin Resources

san Juan College school of Energy’s new facility

continues to be a source of interest in the community.

“the amount of attention this building is receiv-

ing was unexpected,” said Jeremiah hayes, project

manager for Jaynes Corporation, contractor for the

facility.

“i guess once people catch the vision and passion

behind the mission and purpose of the school of En-

ergy, it becomes contagious. We have loved walking

different delegations from private and public entities

through the construction site and showing off the

skills of our team.”

the construction has gone well, hayes said. “the

college has been a delight to work for and our crews

BASIN RESOURCES42


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are amazing. The workers are putting a lot

of blood, sweat and tears into the building

and it is humbling to watch these trades in

action.”

The 65,000-square-foot building will

bring together, under one roof, three satel-

lite offices for the School of Energy. Cur-

rently, offices are on South Hutton Avenue,

30th Street and at the Quality Center for

Business on the San Juan College main

campus on College Boulevard.

“Having the entire staff all together in

the same building will facilitate service and

assistance to our students and will bring

our team together for the first time in a

long time,” said Randy Pacheco, dean of

the School of Energy.

“The new facility will provide office

space for our instructors and staff, as well

as classrooms, study areas, work bays for

our programs and meeting rooms for our

industry partners.”

Construction on the project began in

February, and completion is expected in the

early spring of 2015. The planning and

timing of the construction was carefully

scheduled by the Jaynes Corp. team. “We

sequenced construction so that the temper-

ature sensitive systems will be complete be-

fore we experience freezing temperatures.

The interior of the building will be heated

for work to continue,” said Hayes.

“The amount of attention

this building is receiving

was unexpected.”

— Jeremiah hayes,

ProJect manager

Jaynes corPoration

BASIN RESOURCES 43


www.sjunitedway.org(505) 326-1195(505) 326-1195(505) 326-1195 .sjunitedwwww.sjunited g.orayy.orw.sjunited

BASIN RESOURCES44


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“The outside of the building will be

nearly complete before the holidays and

progress will look slower from the

street,”

“But don’t be fooled,” Hayes added

with a smile, “There is a team of busy

badgers diligently installing the finishes

on the inside.”

Working with the San Juan College

staff on the project has been a positive

experience, Hayes said.

“Our relationship with the various de-

partments and representatives of San Juan

College has been nothing short of a de-

light,” he said. “It takes a lot of work to

establish and maintain a trusting culture

in any relationship, but I think we have

excelled due to the wonderful folks we

get to work with. This project has an air

of excitement and anticipation and even

fun that, I believe, most of us are experi-

encing. It truly is one of the best projects

I’ve had the privilege to be a part of.”

“We are excited that the new School of

Energy is on schedule,” said Dr. Toni

Hopper Pendergrass, president of San

Juan College. “It is going to be a beauti-

ful facility that expands the campus of

San Juan College and one that will pro-

vide the capacity to serve more degree

and certificate seeking students in the en-

ergy industry. The partnership with

Jaynes regarding this major project has

been both positive and enjoyable.”

BASIN RESOURCES46


Jeff Balmer, San Juan Basin asset manager for Encana, speaks March 18, 2013 at San Juan College during the San Juan Basin Energy Conference. – File photo

BASIN RESOURCES 47


SIERRA CHEMICALS

��

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Dorothy Nobis

Basin Resources

the 2015 san Juan basin Energy Con-

ference, set for March 24-25 at san Juan

College, will have a keynote speaker who

is familiar to many in san Juan County

rick Muncrief, who was named WPX

Energy inc.’s Chief Executive officer in

May, has ties to the san Juan basin, and

will speak to the expected 750 attendees

on March 24. Muncrief worked for Cono-

coPhillips and burlington resources lo-

cally and spent five years with Continental

resources before taking the helm at WPX.

Muncrief ’s return to Farmington is an-

ticipated by many who knew him.

bill standley was a classmate of

Muncrief ’s in the Leadership san Juan

Class of 1996. standley, former mayor of

Farmington and now a municipal judge,

remembers Muncrief as a man of intelli-

gence, integrity and “such a nice guy,” he

said.

“When rick left the community, we lost

a great contributor to the city of Farming-

ton,” standley said. “he was involved at

many levels, including the community,

schools, and his church. he just stood out

as a member of Leadership san Juan and

he was a pleasure to be around.”

standley also said tjat if he were a mem-

ber of a board of directors of a major oil

and gas company, he would invest in a

chief executive officer of Muncrief ’s cal-

iber. “i’m sure WPX will reap the rewards

of its investment by hiring rick.”

Nancy shepherd was one of the organ-

izers of Leadership san Juan and she is not

surprised at the success Muncrief has en-

joyed.

“rick is definitely a neat guy,” shepherd

said, adding Muncrief is typical of those

who graduate from the program. “People

have leadership qualities when they partic-

ipate (in Leadership san Juan),” she said.

“the program helps them expand (their

knowledge) and helps them look at things

differently.”

San Juan Basin Energy Conference set for March 24 – 25

Rick MuncRief keynote speakeR

It’s always satisfying, Shep-

herd added, to see a graduate

of Leadership San Juan enjoy

the success Muncrief has. “It

was a loss when Rick and his

wife, Gail, moved, but we’re

proud of him.”

For Muncrief, coming back

to San Juan County and the

San Juan Basin is much like a

homecoming.

“My family and I spent more

than a decade in Farmington

earlier in my career,” Muncrief said. “I

learned a lot and grew tremendously, both

personally and professionally. I feel very

connected to the community, the state and

the industry in the San Juan Basin.”

“It’s always an honor to return to the area

where we have so many friends and close ac-

quaintances,” Muncrief added.

Muncrief is a third-generation oil and gas

professional, and his children are continuing

the family tradition. Muncrief ’s grandfather

worked on work-over rigs for a time, along

with being a sharecropper. His father spent

his career in pipeline, compressor and plant

construction. Now, Muncrief ’s son works for

Samson Resources, an independent oil and

natural gas company engaged in the explo-

ration, development and production of oil

and natural gas from properties located on-

shore in the United States. His

daughter works for ExxonMobil.

Muncrief recently made news in

southwestern Pennsylvania when

he announced WPX has decided to

divest itself of its Marcellus Shale

assets. WPX has about 160 active

wells in dry gas areas in southern

Pennsylvania, and has been drilling

in the Marcellus since 2010.

Muncrief and the board of directors

of WPX decided to focus on New

Mexico and two other areas of the

country in which WPX has assets. Colorado,

which has natural gas liquids, and North

Dakota, along with New Mexico, where the

company drills for oil, offer a positive return

on investment, a spokesman said of the three

states.

The continuing drop in oil prices and the

opportunities for natural gas will be a focus

during the San Juan Basin Energy Confer-

BASIN RESOURCES48


“It’s always an honor to return

to the area where we have so

many friends and close

acquaintances .”

— RICK munCRIef

WPX eneRgy InC.

BASIN RESOURCES 49


Juan College School of Energy and the CEO

of Four Corners Innovations, sponsors of the

event.

“The conference will give those attending

the opportunity to discuss and receive in-

sights into the future of energy and the mar-

ket it serves,” said Pacheco. “We expect the

2015 conference to attract the same industry

professionals who came in 2013, and who

are willing to share their visions and knowl-

edge of the industry. The conference encour-

ages networking and provides a positive

environment for leaders to discuss their con-

cerns and their expectations of the future of

oil and gas and electrical generation.”

Dr. James Henderson is on the steering

committee for the conference and also is ex-

cited about what attendees will hear and dis-

cover during the 2015 event.

“The conference will provide insights into

what’s happening with PNM (Public Service

Company of New Mexico and the San Juan

Generating Station), the coal mines and the

two power plants,” Henderson said. “Our

speakers will share their thoughts on where

we are and what the challenges and opportu-

nities are for the oil and gas/energy indus-

try.”

In addition to Muncrief, speakers expected

to participate in the conference include Ken

McQueen, also of WPX; David Martin, Sec-

retary of the Mew Nexico Energy, Minerals

and Natural Resources Department; Dr. Dan

Fine, research associate for the New Mexico

Center for Energy Policy/ New Mexico In-

stitute of Mining and Technology; Steve

Henke, president of the New Mexico Oil and

Gas Association; and Marita Noon, executive

director of Citizens' Alliance for Responsible

Energy, a lobby group funded by New Mex-

ico oil and gas industry interests, and the ex-

ecutive director for Energy Makes America

Great Inc.

Other speakers have been invited to par-

ticipate in the conference and those names

will be released when they are confirmed.

This is the second San Juan Basin Energy

Conference. The first one, held in March of

2013, was a great success, with more than

450 people attending.

“The tremendous response from the lead-

ers in the industry to our first conference,

and the success we enjoyed from it, has set

the bar pretty high for the 2015 conference,”

said Randy Pacheco. “We anticipate about

700 people to attend the 2015 conference.

The cost of oil, the direction and future of

the oil and gas/energy industry, and the vi-

sion of industry leaders will make this con-

ference, just like the 2013 one, an event that

will bring together people who have invested

their time, experience and talents to an in-

dustry that remains the backbone of our eco-

nomic foundation.”

The conference is hosted by San Juan Col-

lege, New Mexico Tech and Four Corners

Innovations. For additional information, visit

the conference web site at www.sanjuan-

basinenergy.org; or call 505.566.3676.

BASIN RESOURCES50


Dorothy Nobis

Basin Resources

An official at the Farmington Field of-

fice of the bureau of Land Management,

bLM, has refuted allegations by environ-

mentalists that inspectors at the bureau of

Land Management have been negligent in

protecting the environment from oil and

gas drilling.

A 34-page letter, in late october, from

the san Juan Citizens Alliance, the Chaco

Alliance, WildEarth Guardians and the

Western Environmental Law office, out-

lined issues with the bLM’s Farmington

Field office and its approval of Mancos

shale drilling permits.

BLM

refutes

claims

Groups call for Four Corners fracking moratorium

* Fracking 54


The Bureau of Land Management announced a second call for

public nominations over a 30-day period to fill three positions on its

national Wild Horse and Burro Advisory Board. To be considered for

appointment, nominations must be submitted via email or fax by Dec.

20, 2014, or postmarked by the same date. The BLM announced its

second formal request for nominations in the Nov. 18 Federal Regis-

ter at www.gpo.gov/fdsys/pkg/FR-2014-11-18/pdf/2014-

27273.pdf .

Those who have already submitted a nomination in response to

the first call for nominations (published in the Federal Register on

Aug. 29, 2014 (79 FR 51601), do not need to resubmit. All nomina-

tions from the first and second calls will be considered together dur-

ing the review process.

Nominations are for a term of three years and are needed to repre-

sent the following categories of interest: wild horse and burro advo-

cacy, veterinary medicine (equine science), and public interest (with

special knowledge of protection of wild horses and burros, manage-

ment of wildlife, animal husbandry, or natural resource management).

The board advises the BLM, an agency of the Department of the

Interior, and the U.S. Forest Service, an agency of the Department of

Agriculture, on the protection and management of wild free-roaming

horses and burros on public lands administered by those agencies.

The board generally meets twice a year and the BLM director may

call additional meetings when necessary. Members serve without

salary, but are reimbursed for travel and per diem expenses according

to government travel regulations.

The Advisory Board comprises nine members who represent a bal-

ance of interests. Each member has knowledge or special expertise

that qualifies him or her to provide advice in one of the following

categories: wild horse and burro advocacy; wild horse and burro

BLM board nominations

Second call for nominations for

Wild Horse and Burro Advisory Board

BASIN RESOURCES52


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CCUUTT CCOOSSTT.. NNOOTT CCOOVVEERRAAGGEE

research; veterinary medicine; natural re-

sources management; humane advocacy;

wildlife management; livestock management;

public interest (with special knowledge of

equine behavior); and public interest (with

special knowledge of protection of wild

horses and burros, management of wildlife,

animal husbandry, or natural resource man-

agement).

Individuals shall qualify to serve on the

board because of their education, training,

or experience that enables them to give in-

formed and objective advice regarding the

interest they represent. They should demon-

strate experience or knowledge of the area

of their expertise and a commitment to col-

laborate in seeking solutions to resource

management issues.

Any individual or organization may nom-

inate one or more persons to serve on the

advisory board; individuals may also nomi-

nate themselves. In accordance with Section

7 of the Wild Free-Roaming Horses and

Burros Act, federal and state government

employees are not eligible to serve on the

board.

For those interested, please submit a nom-

ination letter and full resumé. The following

information must be provided: the

position(s) for which the nominee wants to

be considered; the nominee’s first, middle,

and last name; business and home addresses

and phone numbers: email address; present

occupation/title and employer; education

(colleges, degrees, major field of study); ca-

reer highlights; qualifications: relevant edu-

cation, training, and experience; experience

or knowledge of wild horse and burro man-

agement; experience or knowledge of horses

or burros (equine health, training, and man-

agement); and experience in working with

disparate groups to achieve collaborative so-

lutions. Applicants must also indicate any

BLM permits, leases, or licenses held by the

nominee or his/her employer; indicate

whether the nominee is a federally registered

lobbyist; and explain why the nominee

wants to serve on the board. Also, at least

one letter of reference from special interests

or organizations the nominee may represent

must be provided.

Nominations may be submitted by email,

fax, or regular mail. Email the nomination to

[email protected]. To send by the U.S. Postal

Service, mail to the National Wild Horse

and Burro Program, Department of the Inte-

rior, Bureau of Land Management, 1849 C

Street, N.W., Room 2134 LM, Attn: Sarah

Bohl WO-260, Washington, DC 20240. To

send by FedEx or UPS, please send to the

National Wild Horse and Burro Program,

Department of the Interior, Bureau of Land

Management, 20 M Street, S.E., Room 2134

LM, Attn: Sarah Bohl, Washington, DC

20003. Or fax to Ms. Bohl at 202-912-

7182. For questions, please call Ms. Bohl at

202-912-7263.

The BLM manages wild horses and

burros as part of its overall multiple-use and


sustained-yield mission. Under the authority of the 1971 Wild Free-

Roaming Horses and Burros Act, as amended, the BLM manages and

protects wild horses and burros while ensuring that population levels

are in balance with other public rangeland resources and uses.

The BLM manages more than 245 million acres of public land, the

most of any federal agency. This land, known as the National System

of Public Lands, is primarily located in 12 western states, including

Alaska. The BLM also administers 700 million acres of sub-surface

mineral estate throughout the nation. The BLM’s mission is to manage

and conserve the public lands for the use and enjoyment of present

and future generations under our mandate of multiple-use and sus-

tained yield. In fiscal year 2013, the BLM generated $4.7 billion in

receipts from public lands.

As part of President Obama’s all-of-the-above strategy to continue

to expand safe and responsible domestic energy production, a Bureau

of Land Management oil and gas lease auction netted over $83 mil-

lion in revenues from the sale of 31 federal leases totaling 13,282.01

acres in Chavez, Eddy, Guadalupe, and Lea counties. The highest bid

per acre for a 640-acre parcel was $21,000 in Lea County.

BLM oil and gas leases are awarded for a period of 10 years and

for as long thereafter as there is production in paying quantities. The

revenue from the sale of these federal leases, as well as the 12.5 per-

cent royalties collected from the production of those leases, is shared

between the federal government and the state of New Mexico. Fifty-

two percent of the revenue generated goes to the federal government

and 48 percent to the state where leasing occurs. The sale netted

$83,080,090. The state of New Mexico will receive about

$39,878,443.

The Mineral Leasing Act of 1920 and the 1987 Federal Onshore

Oil and Gas Leasing Reform Act authorize leasing of federal oil and

gas resources. The 1987 law requires each BLM state office to con-

duct oil and gas lease sales on at least a quarterly basis. BLM lease

sales are competitive and conducted by oral bidding.

Sale dates for 2015

Information pertaining to specific sales is listed by sale date. This

includes sale notices, results, public comment opportunities, environ-

mental assessments, protests and other documents.

Note: Not all documents may be available at a given time. They

will be added as they become available.

www.blm.gov/nm/st/en/prog/energy/oil_and_gas/lease_sale_n

otices

• January 21, 2015 Lease Sale

• April 22, 2015 Lease Sale

• July 22, 2015 Lease Sale

• October 21, 2015 Lease Sale

BLM oil and gas lease salenets more than $83 million

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BASIN RESOURCES54


The letter states the BLM continues to

issue permits for hydraulic fracturing (frack-

ing), but hasn’t analyzed how the process

affects the environment.

In the letter the groups demanded the

U.S. Bureau of Land Management put the

brakes on fracking in northwestern New

Mexico until the agency can safeguard the

climate, clean air and water, and the region’s

cultural heritage.

Dave Mankiewicz, assistant field manager

for the Farmington BLM office, said the of-

fice has 18 inspectors and funds an addi-

tional five Navajo inspectors and four

Jicarilla Apache inspectors.

“They are all fully trained and inspect

about 5,000 wells each year,” Mankiewicz

said.

Reports that the Farmington office has a

shortage of inspectors have been exagger-

ated Mankiewicz added. “We’re down

three (inspectors),” he said, “because people

have retired, transferred or quit. And there’s

no funding (to replace them).”

BLM inspectors are trained to do produc-

tion inspections, drilling inspections, aban-

donment inspections, workover inspections,

environmental inspections, records verifica-

tion, undesirable event inspections and al-

leged theft inspections, according to the

BLM’s web site.

“We look at all of the environmental im-

pacts before we issue permits,” Mankiewicz

said. “We look for endangered species,

groundwater and air quality, among other

things. We’ve been fracking in the (San

Juan) basin since the ‘60s and we don’t be-

lieve we’ve impacted the groundwater at

all.”

Neil Kornze, BLM director, told repre-

sentatives of the American Petroleum Insti-

tute at a meeting in Washington recently,

that the BLM has a shortage of inspectors,

declining budgets and a record number of

wells on public lands that the agency must

address.

A fee system has been proposed in Presi-

dent Obama’s budget, would allow the

BLM to recruit more than 60 new inspec-

tors throughout the country, which Kornze

said is needed.

“It is critical that we increase our inspec-

tor efforts to ensure that taxpayers are get-

ting a fair return on public resources,”

Kornze stated in a BLM media release.

Despite having a full staff of inspectors at

the Farmington office, Mankiewicz said his

inspectors are diligent in their efforts to en-

sure that before permits are issued locally,

all inspections have been completed and en-

vironmental issues have been addressed.

“I’m comfortable with what we’re doing,”

he said.

Fracking continued from 50

BASIN RESOURCES56


Dorothy Nobis

Basin Resources

in october, PNM filed a settlement

agreement with New Mexico regulators,

asking for permission to implement a re-

vised state plan for the san Juan Generat-

ing station to comply with federal

environmental regulations while mini-

mizing the cost to customers.

the agreement would allow the addi-

tion of renewable energy. PNM would

cut water use and seven different emis-

sions at the plant by about 50 percent.

the settlement, however, was not ap-

proved, said susan sponar, senior Com-

munications representative for PNM.

“there will be hearings on our request

starting Jan. 4, 2015, through Jan. 15,

2015, if necessary. A final decision will

come sometime later, likely in the early

spring,” sponar said.

if the request is approved as submitted,

sponar added, customers would not see

some of the expected 7 percent increase

until 2018; however some costs would

be passed on earlier.

“For example, we have asked for ap-

proval to build 40 megawatts of new

solar under a separate request,” sponar

said. “if approved, those costs would be

passed along to customers

in 2016.”

With solar remaining a

positive alternative to the

emissions problem, PNM

hopes to extend its cus-

tomer rooftop solar pro-

gram through 2019. the current

program is only approved through 2016.

the lower costs of solar panels – about

half of the cost of PNM’s first solar in-

stallations in 2011 – along with a 30

percent federal tax benefit that is in place

through 2016 (after that, it

drops to 10 percent), helps

make solar a cost-effective

choice for PNM and its cus-

tomers, sponar added.

“however, as you know, the

sun does not always shine, so

solar must be used along with other re-

sources that are available around the

clock – coal, natural gas and nuclear,”

sponar explained.

the closures of Units 2 and 3 at the

coal-fired san Juan Generating station

have caused some concerns about a possi-

ble loss of jobs at the station.

“Although san Juan will only have

two operating units as opposed to four

after 2017, we will still have a workforce

at the plant,” sponar said. “today, we

have 310 employees at the plant and we

estimate we could need as many as two-

thirds that number, plus we will still need

contractors.”

January meetings

PNM, PRC set week-long hearings on plant’s future

BASIN RESOURCES 57


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PNM has also proposed building a

177 natural gas peaking plant on or near

the site. That, Sponar explained, will cre-

ate hundreds of jobs during the construc-

tion phase.

“PNM has also agreed to donate $1

million for workforce training for Navajo

students and (has) donated to Four Cor-

ners Economic Development Inc.,” she

said. “Finally we agreed that we would

not lay off any employees as a result of

the shutdown.”

The Environmental Protection Agency

is expected to propose a new ozone stan-

dard in December.

Depending on where the standard for

ozone is set, San Juan County, which is

where the San Juan Generating Station is

located, could be designated as not

attaining the standard for ozone. If that

happens, the New Mexico Environmental

Department would have the responsibil-

ity of bringing the county into compli-

ance, Sponar said, and would look at all

sources of NOx and volatile organic

compounds, since those are pollutants

that form ground level ozone.

Nitrogen dioxide (NO2) is one of a

group of highly reactive gasses known as

“oxides of nitrogen,’ or “nitrogen oxides

(NOx).” Other nitrogen oxides include

nitrous acid and nitric acid. EPA’s Na-

tional Ambient Air Quality Standard uses

NO2 as the indicator for the larger group

of nitrogen oxides. NO2 forms quickly

from emissions from cars, trucks and

buses, power plants, and off-road equip-

ment, the EPA’s web site states. In addi-

tion to contributing to the formation of

ground-level ozone, and fine particle pol-

lution, NO2 is linked with a number of

adverse effects on the respiratory system.

With the implementation of the state

plan for regional haze, Sponar added,

San Juan Generating Station should not

have to install additional controls to fur-

ther reduce emissions, especially with the

two unit shut down.

Also expected in December is a ruling

by the EPA regarding the handling of

coal ash. “Although this rule will not di-

rectly address how we currently manage

coal ash (which is used as reclamation

material in the adjacent mine pits), it will

likely influence the Office of Surface

Mining as it drafts a rule next year to

cover mine placement of ash,” Sponar

said. “In general, we believe that the

plant, because we dry handle our ash,

will be able to continue with our current

ash handling method. And we believe

our actions at the plant put the state in a

good position to comply with recently

proposed federal carbon regulations.”

PNM believes its proposal is the most

cost-effective choice for complying with

federal haze regulations and will put

New Mexico ahead toward compliance

with recently proposed carbon regula-

tions. The company further states that it

has done an analysis of thousands of

“This case was settled by some

of the parties via a stipulated

agreement (stipulation) and

the hearings in January

will address the merits

of that stipulation.”

— Patrick Lyons

Prc commissioner

for District 2


power supply replacement strategies and believes its proposal to

use carbon-free nuclear and solar power, along with natural gas –

which emits about half the carbon of coal – is the most cost-ef-

fective and most balance option.

“We have worked to strike the right balance between reliable

power, the environment and affordability,” Sponar said of PNM’s

efforts. “Closing two units at the plant will reduce our coal power

by 30 percent and it will reduce water use and seven emissions

from the plant by about 50 percent, including greenhouse emis-

sions.”

In an email, Patrick Lyons, the PRC Commissioner for District

2, said hearings will begin in January 2015, and will be con-

ducted by Hearing Examiner Ashley Schannauer.

“These hearings will address PNM’s ‘Application of Public

Service Company of New Mexico for Approval to Abandon San

Juan Generating Station Units 2 and 3, Issuance of CCNs for Re-

placement Power Resources, Issuance of Accounting Orders and

Determination of Ratemaking Principles and Treatment,’ case 13-

00390-UT,” Lyons said. “This case was settled by some of the

parties via a stipulated agreement (stipulation) and the hearings in

January will address the merits of that stipulation. The hearing ex-

aminer will issue a recommended decision on the stipulation. The

parties may file exceptions to the recommended decision. The

five-member commission at the NMPRC will then be briefed on

the recommended decision and the parties’ exceptions during one

of the Regular Open Meetings and vote on the hearing exam-

iner’s recommended decision.”

Lyons cannot comment further on the settlement request be-

cause he is one of the five commissioners who will decide the

case, and can’t offer an opinion or judgment until the case is

heard.

Scott Eckstein, a San Juan County Commissioner and Mayor of

Bloomfield, supports PNM in its efforts to diversify its power

generation with new technologies.

“PNM is a very vital industry in our community, not only in

providing energy but in providing much needed jobs in a tough

economy,” Eckstein said. “I would hope the PRC takes all of this

into consideration when deciding on the future, and I have faith

that they will make the right decision.”

Dr. James Henderson is the chairman of the board of directors

for 4 Corners Economic Development (4CED) and said he hopes

PNM and the New Mexico Public Regulations Commission can

agree to a settlement when the hearings are held in January.

“PNM supports and is a member of 4CED and is as concerned

about the economy and job force in San Juan County as we are,”

Henderson said. “PNM has been very responsive to the require-

ments EPA has put before it. It is the hope of 4CED that the is-

sues will be resolved and PNM will continue to provide jobs that

are needed by our residents and our local economy.”

E N E R G Y N E W S. . . . . . . . . . . . . . . . . . . . . . . . . .

Across the Nation

Crude oil and lease condensate pro-

duction in the United States exceeded

8.6 million barrels per day (bbl/d) in Au-

gust, a production volume not observed

since July 1986, according to EIA’s latest

Petroleum Supply Monthly.

More than half of total U.S. produc-

tion was accounted for by record produc-

tion from three basins in three states.

Production from the Permian Basin in

Texas and New Mexico accounted for

1.66 million bbl/d, while the Eagle Ford

Shale in the Western Gulf Basin, also lo-

cated in Texas, produced 1.57 million

bbl/d. The Bakken Shale in North

Dakota’s Williston Basin accounted for

1.13 million bbl/d.

Domestic production has increased

dramatically over the past four years, in-

creasing from 5.4 million bbl/d in Janu-

ary 2010 to its current level, driven by

increasing production from shale and

other tight formations. During 2014

alone, 10 states (the three states previ-

ously mentioned in addition to Okla-

homa, Colorado, Wyoming, Utah, Ohio,

West Virginia, and Pennsylvania) have set

monthly production records since 1995,

and accounted for more than 64 percent

of total U.S. production during August.

Although down from 2,031 rigs in

2008, U.S. oil and natural gas rig counts

have been increasing over the past two

years. A total of 1,904 rigs were actively

drilling during August, 1,578 of which

were targeting liquids. Notably, once pro-

duction starts, three-fifths of all the wells

produce both oil and natural gas. Of the

1,904 active rigs, 62 rigs were operating

offshore while the remaining 1,842 rigs

were drilling onshore.

Now typical of the industry, horizontal

Crude oil, lease condensate production

now at highest levels since 1986

BASIN RESOURCES 59


* Crude Oil 61

BASIN RESOURCES60


Coal stocks at electric power plants,

which totaled 121 million tons at the end of

August, are relatively low in both absolute

and days of burn terms relative to recent his-

torical norms. This is true both nationally

and in the Upper Midwest. About two-thirds

of coal used to generate electric power

moves from coal mine to power plant either

fully or partially by rail.

Power plants in the Upper Midwest oper-

ated at very high rates during last winter's

extreme cold weather, burning lots of coal.

As these plants rebuild their stockpiles, many

operators want shipments of coal well above

the levels they received in 2013.

Issues with delivery by rail are making it

more difficult to ship larger volumes of coal

and rebuild stockpiles at coal-fired power

plants. Although the rail problems are real,

their role should not be overstated. Despite

the problems on the rail system, particularly

in the Upper Midwest, coal car loadings year

to date through Oct. 25 were up slightly

from last year (0.3 percent). Loadings have

been on an upward trend in recent weeks:

during four weeks in October, coal car load-

ings averaged 4.7 percent higher than the

comparable weeks in 2013.

Four very small plants in Minnesota have

shut down to conserve coal stocks, but not

because they ran out of coal. Rather, grid

operators have opted to dispatch other units

during the fall shoulder season, when they

have the option to dispatch non-coal units to

conserve coal stocks for use during winter,

the peak period for power demand in Min-

nesota and other states in the north of the

country.

There have also been reductions in oper-

ating levels (utilization rates) at plants in sev-

eral other states as a result of concerns about

coal availability. Operators have substituted

higher-cost power from other sources, such

as natural gas-fired generation, to make up

the difference. In addition, some power

plants have increased their purchases of coal

moved by truck to their power plants, at sig-

nificantly higher cost compared to usual rail

shipments.

At an individual plant, stockpiles can be

viewed in terms of days of burn. The days-

of-burn calculation takes into account both

the current stockpile level at a plant and its

estimated consumption (burn) rates in com-

ing months to approximate how many days

the plant could run at historical levels before

depleting its existing stockpile. EIA calcu-

lates days of burn by averaging the most re-

cent three years of historical data and

applying that to the upcoming three months.

EIA groups coal plants into three days-of-

burn categories: those with less than 30 days

of burn, 30 to 60 days of burn, and those

with more than 60 days of burn. EIA ex-

cludes from the categorization plants that

rely on lignite or waste coal, as these plants

rely on coal from mine-mouth sources (lig-

nite mines or waste piles and ponds) and do

not maintain stocks comparable to other coal

plants.

At the end of August 2014, the amount

of coal capacity with less than 60 days of

burn was 63 percent of the total, compared

to only 42 percent at the end of August

2013. Within that group, the percent of ca-

pacity with less than 30 days of burn for

those same months rose to 23 percent, up

from 13 percent in 2013.

Railroads faced weather-related problems

last winter that curtailed deliveries. This year

railroads have had to accommodate record

grain harvests (up 16 percent this year) and

increasing amounts of petroleum and petro-

leum products shipments (up 13 percent this

year) vying for space on railroad networks.

Total U.S. rail traffic has increased for every

commodity type tracked by the Association

of American Railroads, and year-to-date traf-

fic (through mid-October) is 4.5 percent

higher compared with the same period last

year.

Coal fired power plants stockpilesare smaller than in recent years

BASIN RESOURCES 61


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rigs represent the most common

rig type with 1,330 active drilling

operations in August, while 374

vertical and 210 directional

drilling rigs were operational, re-

spectively. Higher rig counts,

along with improvements in

drilling productivity, are expected

to increase U.S. liquids production to

nearly 9.7 million bbl/d by December

2015.

U.S. oil production has been increasing

monthly at an average of 62,000 bbl/d

since 2010. EIA forecasts that previous

production highs set in the 1970s will be

surpassed before the end of 2015. This is

especially notable as Alaska production

provided up to 2 million bbl/d of total

U.S. production volumes during high pro-

duction years in the 1980s. Decreases in

Alaska production are related to natural

reservoir decline and reduced exploration

along the North Slope; however, discover-

ies in southern portions of Alaska’s Cook

Inlet are adding new production capacity.

Production gains have been observed

across the Lower 48, with particular in-

creases in crude oil and lease condensate

production from shale and tight forma-

tions. Production estimates from EIA’s

Drilling Productivity Report confirm that

many top-producing reservoirs include

production involving horizontally drilled

wells, hydraulic fracturing reservoir stimu-

lation, and multi-well pad drilling. The

highest-ranked tight producing reservoirs

in 2014 include Texas’s Eagle Ford and

Wolfcamp formations, North Dakota’s

Bakken-Three Forks formations, New

Mexico’s top Spraberry and Bone Springs

formations, Oklahoma’s Woodford Shale

formations, Colorado’s Niobrara formation,

Utah’s Green River formations, Ohio’s

Utica and Point Pleasant formations, and

the Marcellus Shale formations in West

Virginia and Pennsylvania. – EIA

Crude oil continued from 59

BASIN RESOURCES62


Increased natural gas production is

projected to satisfy 60 percent to 80 per-

cent of a potential increase in demand for

added liquefied natural gas (LNG) ex-

ports from the Lower 48 states, accord-

ing to recently released EIA analysis.

The report, Effect of Increased Levels

of Liquefied Natural Gas Exports on U.S.

Energy Market, considered the long-term

effects of several LNG export scenarios

specified by the Department of Energy’s

Office of Fossil Energy (FE). The study

also considered implications for natural

gas prices, consumption, primary energy

use, and energy-related emissions. Effects

on overall economic growth were posi-

tive but modest. A discussion of caveats

Increased natural gas production would

meet most demand from added LNG exports

BASIN RESOURCES 63


and limitations of the analysis is also in-

cluded.

In the export scenarios that EIA was

asked to analyze, LNG exports from the

Lower 48 states start in 2015 and increase

at a rate of 2 billion cubic feet (Bcf ) per

day per year, ultimately reaching 12, 16

or 20 Bcf/d. EIA also included a 20-

Bcf/d export scenario (Alt 20-Bcf/d) with

a delayed ramp-up to identify the effect of

higher LNG exports implemented at a

more credible pace.

EIA looked at these scenarios in the

context of five cases from its Annual En-

ergy Outlook 2014 (AEO2014) that re-

flect different supply and demand

assumptions. The cases used in the study

were: EIA’s Reference, Low Oil and Gas

Resource (LOGR), High Oil and Gas Re-

sources (HOGR), High Economic Growth

(HEG), and Accelerated Coal and Nuclear

Retirements (ACNR). The five AEO2014

cases used as baselines in the study al-

ready include some amount of LNG ex-

ports from the Lower 48 states. The LNG

exports in the AEO2014 baseline cases,

rather than the scenarios specified for this

study, reflect EIA’s own views on future

LNG exports.

LNG exports from the Lower 48 states

in the baselines have projected 2040 lev-

els ranging from 3.3 Bcf/d (LOGR case)

to 14.0 Bcf/d (HOGR case). Estimated

price and market responses to each pairing

of a specified export scenario and a base-

line will reflect the additional amount of

LNG exports needed to reach the targeted

export level starting from that baseline.

BASIN RESOURCES64


Natural gas consumption varies widely by

region of the country.

The majority of households that heat

with natural gas are located in the Midwest

and Northeast. In the upcoming winter

months, homes in the East North Central

Census division are expected to consume the

most natural gas, but not as much as last

winter. Extreme cold weather in natural gas-

intensive regions caused unexpectedly high

consumption during the winter of 2013-14.

Residential and commercial consumers

use natural gas primarily for space heating.

The East North Central Census division

(Wisconsin, Michigan, Illinois, Indiana, and

Ohio) is the largest residential and commer-

cial natural gas-consuming division in the

country, making up 28 percent of all resi-

dential consumption and 24 percent of com-

mercial consumption in 2013.

Because the East North Central Census

division has the largest number of house-

holds heating with natural gas, its collective

response to changes in weather (as measured

by heating degree days) is greater than in

any other region (see maps below). The re-

sponse to changes in heating degree days in

the South Atlantic Census division (with

about 6 million homes which heat primarily

with natural gas) is similar to that of the Pa-

cific and Mid-Atlantic Census divisions

(where 10.2 and 9.4 million households, re-

spectively, heat with natural gas). This re-

sponse may be attributable to natural gas

used as a secondary heat source, such as nat-

ural gas fireplaces, or as the supplemental

heat source to air-source heat pumps. When

temperatures drop below a certain threshold

(usually around freezing temperatures), heat

pumps rely on a supplemental heat source.

The National Oceanic and Atmospheric

Administration projection is that tempera-

tures this coming winter will be closer to

normal.

The most recent Short-Term Energy and

Winter Fuels Outlook projects that residen-

tial and commercial prices will be higher

than they were last year, largely because

through 2014 (when utilities began buying

natural gas for the upcoming winter) prices

have averaged higher than year-ago levels,

and are currently higher than a year ago.

However, EIA projects lower residential

heating bills for consumers because of lower

consumption.

Natural gas is dominant heatingfuel in colder parts of U.S.

BASIN RESOURCES 65


Crude oil prices extended their losses the

first week of Decmber, falling to their lowest

levels in nearly 5 years after the Organization

of Petroleum Exporting Countries elected to

keep its output target unchanged, even after

one of the steepest slumps in oil prices fol-

lowing the global recession. NYMEX crude

prices fell to about $65 per barrel, while

Brent crude breached the $70 per barrel

mark. There is a possibility that prices could

fall further in the near term since it seems

likely that OPEC, which accounts for about a

third of global crude output, is looking to

maintain global market share while waiting

for higher-cost producers like the U.S. shale

industry to scale back production.

Before its recent decline, average monthly

Brent spot prices had traded within a narrow

$5 per barrel range, from $107 to $112 per

barrel, for 13 consecutive months through

July 2014.

During that period of low price volatility,

substantial oil supply disruptions in the Or-

ganization of the Petroleum Exporting

Countries (OPEC) were offset by increases in

U.S. production and weaker-than-expected

global demand. More recently, however, the

resumption of significant Libyan oil produc-

tion, combined with the weakening outlook

for global oil demand, has put downward

pressure on prices.

The sustained increase in Libyan produc-

tion over the summer – increasing from

200,000 barrels per day (bbl/d) in June to

900,000 bbl/d at the end of September –

has added supplies to an already well-sup-

plied light sweet crude market in the Atlantic

Basin, despite the fact that Libya’s recent pro-

duction has not come close to its previous

level of 1.65 million bbl/d in 2010 and

2011, before fighting that occurred during

the Arab Spring.

Over the past several years, increasing U.S.

light sweet crude production has significantly

reduced light sweet crude imports to the

United States. Those reduced imports, which

were sourced primarily from Africa, became

available to replace Libyan production lost

during a time of civil war and subsequent un-

rest. While Libyan production was disrupted,

supply and demand in the Atlantic Basin was

relatively balanced. However, as Libyan pro-

duction has returned and has remained

largely online despite internal unrest, the

price of Brent crude oil has fallen.

Although the return of significant Libyan

production has been an important factor put-

ting downward pressure on the Brent price,

weakening global demand, particularly in

Europe and Asia, is also important. Economic

growth in 2014 outside of the United States

has been slow, and recent data releases ap-

pear to confirm lower-than-expected growth,

particularly in Asia and Europe.

Lower demand, higher supply driveoil prices to lowest level in 5 years

BasiN resoUrces66

www.basinresourcesusa.com •WiNter 2014

advertisers directoryAllstate ....................................................52Viviana Aguirre900 Sullivan Ave., 505-327-4888B J Brown3030 E Main St., Ste X9, 505-324-0480Kelly J. Berhost1415 W. Aztec Blvd, Ste. 9, Aztec, NM505-334-6177Harold Chacon8205 Spain Rd. NE, Suite 209 CAlbuquerque, NM505-296-2752Dennis McDaniel, 505-328-0486Matt Lamoreux4100 E. Main St., 505-599-9047Silvia Ramos2400 E. 30th St., 505-327-9667

American Dream Realty .............................13Farmington, NM505-566-9901

Animas Environmental Services .................33Farmington, NM505-564-2281Durango, CO970-403-3084www.animasenvironmental.com

Animas Valley Insurance..............................72890 Pinon Frontage Rd.Farmington, NM505-327-4441www.aviagency.com

Antelope Sales & Service Inc. ....................585637 US Hwy 64Farmington, NM505-327-0918www.NMASSI.com

Armstrong Coury Insurance.......................39424 E. MainFarmington, NM505-327-5077www.armstrongcouryinsurance.com

Bailey’s Welding .......................................286175 Hwy 64Bloomfield, NM505-632-3739

Basin Electrical Contracting .......................413005 Northridge Drive, Suite KFarmington, NM505-327-7525www.basinelectricnm.com

Basin Well Logging Wireless ......................552345 E. MainFarmington, NM505-327-5244

BM Technology & Supply...........................232303 Bloomfield Hwy.Farmington, NM505-326-9144

Brady Trucking, Inc. ..................................685130 S. 5400 EVernal, UT 84078435-781-1569Farmington, NM Division505-598-5580Grand Junction, CO Division970-263-8791Williston, ND Division701-572-1522Bloomington, IL Division309-556-0077

Calder Services.........................................60#7 RD 5859Farmington, NM505-325-8771

City of Farmington....................................251300 W. Navajo St.Farmington, NM 505-599-1395www.IflyFarmington.com

Elite Promotional & Embroidery ................171013 SchofieldFarmington, NM505-326-1710

Encana.....................................................30www.encana.com/sanjuan

Four Corners Community Bank...................64505-327-3222 New Mexico970-565-2779 Coloradowww.TheBankForMe.com

Four Corners Innovations ..........................44505-566-3676www.sanjuanbasinenergy.org

Foutz Hanon.............................................572401 San Juan Blvd.Farmington, NM505-326-6644

Halliburton ...............................................48www.halliburton.com

Halo Services ...........................................1970 CR 4980Bloomfield, NM505-632-7007

Hands on Safety Service ...........................651901 E. 20th St.Farmington, NM505-325-4218

Harpole Construction ................................1660 RD 3961Farmington, NM505-325-1249

Highlands University.................................53505-454-3004nmhu.edu/energy

Honstein Oil .............................................3896 Road 4980Bloomfield, NM505-632-5730

IEI Industrial Ecosystems ..........................1549 CR 3150Aztec, NM505-632-1782www.industrialecosystems.com

Imagenet Consulting .................................51Farmington, NM505-327-7383

Mechanical Solutions, Inc. ...........................21910 Rustic PlaceFarmington, NM505-327-1132

Mesa West Directional ...............................31505-402-8944www.mesawestdirectional.com

Miller & Sons Trucking ................................41110 W. Sategna Ln.Bloomfield NM 87413505-632-8041www.powerinnovations.com

Morgan Stanley/JimLoleitt .........................124801 N. ButlerFarmington, NM505-326-9322www.morganstanley.com

New Image Powder Coating .......................212792 Inland StreetFarmington, NM505-326-2797

No Limit Motorsports ................................36Farmington, NM505-326-5477

Odessa Pumps..........................................49940 Hwy 516Flora Vista, NM505-334-1330

Park Energy ...............................................32050 Afton PlaceFarmington, NM505-258-4284www.parkenergyservices.com

Parkers Office Products ............................18Farmington, NM505-325-8852www.parkersinc.com

Partners Assisted Living ...........................54313 N. Locke Ave.Farmington, NM505-325-9600www.partnersassistedliving.com

Pumps and Service ...................................293440 Morningstar Dr.Farmington, NM505-327-6128www.pumpsandservice.com

QuickLane Tire & Auto Center ....................615700 East Main St.Farmington, NM505-566-4729

RA Biel Plumbing & Heating ......................63505-327-7755www.rabielplumbing.com

Reliance Medical Group .............................423751 N. Butler Ave.Farmington, NM505-324-1255 Occupation Medicine505-324-1255 Urgent Care1409 Aztec Blvd.Aztec, NM505-334-1772www.reliancemedicalgroup.com

Rush Truck Centers of New Mexico ..............96521 Hanover Road N.W.Albuquerque, NM 87121505-875-3410www.rushtruckcenters.com

San Juan College.......................................36Farmington, NM505-326-3311www.sanjuancollege.edu

Sanchez and Sanchez .................................5Farmington, NM505-327-9039

San Juan Casing Service ............................226101 E. Main St.Farmington, NM505-325-5835

San Juan United Way .................................43505-326-1195www.sjunitedway.org

Sierra Chemicals .......................................47104 Bison TrailAztec, NM505.334.0447www.sierrachemicals.com

Southwest Concrete Supply .......................312420 E. MainFarmington, NM505-325-2333www.southwestconcretesupply.com

The Spare Rib...........................................281700 E. MainFarmington, NM505-325-4800www.spareribbbq.com

Sunray Casino...........................................52Farmington, NM505-566-1200

TJ’s Diner .................................................47119 East Main StreetFarmington, NM

Treadworks ..............................................374227 E. Main St.Farmington, NM505-327-02864215 Hwy. 64 Kirtland, NM505-598-1055www.treadworks.com

Twin Stars, LTD.........................................67100 Iowa Ave.Bloomfield, NM505-632-92027169 Roswell Hwy.575-746-6690

U.S. New Mexico Federal Credit Union ........243024 E. Main St.Farmington, NM505-599-3610usnmfcu.org

Uncle Bob’s Auto & Truck..........................133995 Cliffside Dr.Farmington, NM505-436-2994

Vectra Bank ..............................................62Farmington, N.M.505-564-8652www.bectrabank.com

X-Chem, LLC .............................................45855-829-0001www.x-chem.com

Wagner Equipment....................................16905 Hwy 516Flora Vista, NM505-334-5522

Ziems Ford Corners ..................................325700 East MainFarmington, NM505-325-8826

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basin resources winter 2014

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