lone star leaders in the oil and gas industry oil and gas by the numbers the rainy day fund —...

S THE LEADING STATE for production of oil and natural gas,

Texas is home to the best in the energy business. In an

effort to honor the most outstanding members of the Texas

oil and gas industry and bring mainstream recognition

to an industry that is a part of Texas’s heritage and a preeminent

contributor to our state’s economy, the publishers of Texas Monthly and

the Texas Independent Producers & Royalty Owners Association (TIPRO)

have formed a partnership to identify exceptional professionals in the

industry. In the third year of this oil and gas awards program, top

individuals were selected by their peers and recognized as “Texas Top

Producers,” a distinct title representing their outstanding contributions to

this uniquely Texas industry.

PROGRAM METHODOLOGY

Earlier this year, nominations for the award were collected through the TIPRO website.

The nominations were later reviewed by the TIPRO-Texas Top Producers awards

committee, comprised of past award winners and distinguished TIPRO members.

The committee then selected the top 15 finalists and ultimately the winners in each

category. Award recipients were recognized at the 2014 Texas Top Producers awards

banquet, which was held on October 28, 2014, at the Houston Petroleum Club.

The Texas Independent Producers

& Royalty Owners Association

(TIPRO), in partnership with

the publishers of Texas Monthly,

and with the support of the

American Association of

Petroleum Geologists (AAPG)

and the American Association

of Professional Landmen

(AAPL), is honored to again

identify exemplary individuals

of the Texas oil and gas

industry through the annual

Texas Top Producers awards

program. Divided into four

categories of Best CEOs, Best

Engineers, Best Geoscientists,

and Best Landmen, the

Texas Top Producers award

highlights the accomplishments

and careers of the best in

the oil and gas industry.

Lone Star Leaders in the Oil and Gas Industry

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A D V E R T I S E M E N T

126 texasmonthly.com

txmo-tipro2014-v9AW.indd 126 12/2/14 3:55 PM

Extraordinary depth in mineral title

www.steptoe-johnson.com

THE PROOF

IS IN THE

NUMBERS

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One of the largest due diligence teams nationwide

More than 100 years of experience in energy law

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Leader in unitization permits filed in the Utica Shale

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Best CEOsFinalists have proved to be instru-

mental to the growth and success of

their company, and have helped gen-

erate positive results for stockhold-

ers, investors, and partners over the

last ten years. They have improved

operational efficiency and corporate

profitability, and hold a solid record

of sound leadership. They also have

significant experience in managing

company operations within Texas.

The Best CEOs have been divided

into three separate categories,

based on their company’s total pro-

duction of oil and gas in Texas.†

LARGE COMPANYProduces 1,000 Barrels of Oil

Equivalent Per Day (20:1) or more

in Texas

Dan DingesCABOT OIL & GAS CORPORATION

Steve FarrisAPACHE CORPORATION

Jonny JonesJONES ENERGY, INC.

Robert LawlerCHESAPEAKE ENERGY CORPORATION

Gary LovelessSQUARE MILE ENERGY, LLC

Gary MabieMILAGRO EXPLORATION, LLC

James McManusENERGEN CORPORATION

Robert ReevesATHLON ENERGY, INC.

John RichelsDEVON ENERGY CORPORATION

David SambrooksSABINE OIL & GAS, LLC

Bryan SheffieldPARSLEY ENERGY, INC.

Scott SheffieldPIONEER NATURAL

RESOURCES COMPANY

Matt TelferBORDER TO BORDER

EXPLORATION, LLC

William "Bill" ThomasEOG RESOURCES, INC.

Barth WhithamENDURING RESOURCES, LLC

MEDIUM COMPANYProduces between 300 and 999

Barrels of Oil Equivalent Per Day

(20:1) in Texas

Javaid AnwarMIDLAND ENERGY, INC. & PETROPLEX

ENERGY, INC.

Pat BolinEAGLE OIL & GAS CO.

Frank BurkeBRIGADIER OIL & GAS, LLC

Orville Duane Gaither IIGAITHER PETROLEUM CORPORATION

Kyle HammondFIREWHEEL ENERGY, LLC

Michael HarveySTONEGATE PRODUCTION

COMPANY, LLC

Justin KuetheHANNATHON PETROLEUM, LLC

Curtiss McClymondPETROLEUM EXPLORATION

COMPANY, LTD.

Michael ReddinDAVIS PETROLEUM CORPORATION

Wes ReevesHANNATHON PETROLEUM, LLC

William ScarffMEMORIAL RESOURCE DEVELOPMENT

CORPORATION

Dwayne StewartFAIRWAYS EXPLORATION &

PRODUCTION, LLC

Louis StippTRADITION RESOURCES II, LLC

Barry WinsteadFORGE ENERGY, LLC

SMALL COMPANYProduces between 80 and 299 Barrels

of Oil Equivalent Per Day (20:1) in

Texas

Randall L. CappsXOG OPERATING, LLC

Terry FullerPHOENIX PETROCORP, INC.

Scott GarrickVENADO OIL & GAS, LLC

Scott HinesAURORA RESOURCES CORPORATION

John HoffmanBLACK ELK ENERGY, LLC

Reuven HolloARIESONE, LP

Mark JaehneLEEXUS OIL, LLC

Kathryn MacAskieZARVONA ENERGY, LLC

Matt McCarrollFIELDWOOD ENERGY, LLC

Paun PetersWESTERN PRODUCTION COMPANY

Mark SchlachterSCHLACHTER OPERATING CORPORATION

Anthony SchnurLUCAS ENERGY, INC.

Tom SchoonoverTEXAS ROYALTY CORPORATION

John YorkREPUBLIC RESOURCES, LLC

Rusty ShepherdMOMENTUM OIL & GAS, LLC

Best LandmenFinalists are well known for their

ability to negotiate contracts while

at the same time demonstrating

fairness, integrity, and honesty in

their dealings with others. They have

significant experience completing

large mineral acquisitions in Texas

and also are active in technical orga-

nizations and professional societies.

Scott Airey STRAND ENERGY, LLC

John ArnoldESCONDIDO RESOURCES II, LLC

David CapeJONES ENERGY, INC.

Craig ClarkCROWNQUEST OPERATING, LLC

Ruth Davis LINN ENERGY, LLC

Briggs DonaldsonPURVIS OPERATING CO., & REATTA

ENERGY, INC.

Troy GieselmanTEXAS AMERICAN RESOURCES, LLC

James Holcomb COLT EXPLORATOIN CO., INC.

Curt HornePERCHERON, LLC

Jim McGowen MCGOWEN & FOWLER, PLLC & MCGR

OPERATING COMPANY, INC.

Connie NobleSQUARE MILE ENERGY, LLC

David Nolen OGR ENERGY CORPORATION &

ALLIANCE LAND SERVICES

William Porter MCCLURE OIL COMPANY, INC.

Roger SoapeROGER A. SOAPE, INC.

Jeffrey TynerTYNER LAND SOLUTIONS, LLC

Best EngineersFinalists have distinguished them-

selves as leaders in the industry’s

traditional engineering segments,

such as reservoir, drilling, produc-

tion, economic analysis, and

surveillance. They also have made

significant contributions in design-

ing, supervising, and completing

major engineering projects in

Texas that have achieved prominent

technical results.

Michael BoseAPACHE CORPORATION

Jay CallarmanCOMSTOCK RESOURCES, INC.

Ted CottrellPIONEER NATURAL RESOURCES

COMPANY

James DeaverBLACK ELK ENERGY, LLC

Greg LeyendeckerSM ENERGY COMPANY

Steven LindemanCABOT OIL & GAS CORPORATION

Kyle McGraw LEGACY RESERVES, LP

Tom NemecGOODRICH PETROLEUM

CORPORATION

Russell PantermuehlDIAMONDBACK ENERGY, INC.

Tai Pham EOG RESOURCES, INC.

Scott RiceRIVERBEND OIL & GAS, LLC

Adam RiceHUNT OIL COMPANY

Stephen Roberts JONES ENERGY, INC.

John WhiteheadLAREDO PETROLEUM, INC.

Best GeoscientistsFinalists have an established reputa-

tion for their ability to map geologic

strata and formations for the purpose

of identifying deposits or accumula-

tions of hydrocarbons in Texas. They

also have demonstrated advanced

skill in utilizing and developing tech-

nology that has led to the develop-

ment of oil or gas reserves in Texas.

James BartonBASA RESOURCES, INC.

Steve BrachmanWAPITI ENERGY, LLC

John Branca SWIFT ENERGY COMPANY

John CallananQUICKSILVER RESOURCES, INC.

Bill Francis SILVER OAK ENERGY, LLC

Douglas HazlettANADARKO PETROLEUM

CORPORATION

Lloyd W. Helms Jr.EOG RESOURCES, INC.

Walt HuffordTALISMAN ENERGY, INC.

Matthew HydeCONCHO RESOURCES, INC.

Bill KellerENERVEST, LTD.

Michael LiebeltMARATHON OIL CORPORATION

David McClelland ATHLON ENERGY, INC.

Craig PollardCINCO RESOURCES, INC.

Tom SpaldingPIONEER NATURAL RESOURCES

COMPANY

Mike WallANADARKO PETROLEUM

CORPORATION


† (SOURCE, PRODUCTION VALUE DATA: TEXAS RAILROAD COMMISSION)

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Winners denoted with H

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txmo-tipro2014-v9AW.indd 128 12/3/14 9:32 AM

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texasmonthly.com 129


Texas Oil and Gas BY THE NUMBERS

The Rainy Day Fund — supported

almost entirely by the Texas

oil and gas industry—helps

to fund public education,

water and road infrastructure

projects, and disaster recovery, as

well as other programs

Texas’ average rig count as of

August 15, 2014, was 899, about

49% OF ALL ACTIVE LAND RIGS

IN THE UNITED STATES

The state of Texas is the top producer of oil and natural gas in the nation

Jobs

Income

U.S. Economy

More than

95% of Texas counties have

production of oil and

natural gas

Texas had

12,250 oil and gas

establishments in 2013

Reach

Every one of Texas’

36 congressional districts,

150 House districts,

and 31 Senate districts

include counties where

people are employed in

the oil and gas industry

In 2013, 4.4% of Texas jobs were in the oil and gas industry

Approximately

40% of all U.S. oil and gas jobs are located in Texas

Currently

there are

2.5 million royalty owners

in Texas

The Texas oil and gas industry employed

411,600 workers in 2013, an increase of more than 23,000 from

the previous year, for a growth rate of nearly 6%




texasmonthly.com 131


THE OIL AND GAS INDUSTRY POWERS THE LONE STAR STATE’S

fiscal and economic resiliency. Over the past five years,

since the Texas shale boom took off, the state’s exploration

and production sector has created a surplus of high-pay-

ing jobs and generated tremendous revenue for government coffers. There’s no

question that the industry truly is fueling the economy, paying for much-needed

infrastructure, and even playing a vital role in funding public education in Texas.

“The oil and gas industry has been a very

important source of funding for education in

Texas,” said Chris Bryan, an agency spokesper-

son for the Texas Comptroller of Public

Accounts. “Over the last 10 years alone, oil and

natural gas production taxes have accounted for

nearly $10 billion for the Foundation School

Fund (FSF), and through it, for Texas’ schools

and students. This is in addition to the

significant contributions to education funding

made as a result of oil and natural gas

production through the Permanent University

Fund and appropriations to the Texas Education

Agency, via the Economic Stabilization Fund.”

The state of Texas funds public education

with a combination of local, state, and federal

revenue. According to the Texas Comptroller’s

Financial Allocation Study for Texas, in fiscal

Texas Oil Boom Helps Fuel Public Education in the Lone Star State

Each year,

the oil and

gas industry

pumps billions

of dollars

into Texas

schools and

universities

BY MATT SMITH

BL

AN

SC

AP

E / S

HU

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ER

ST

OC

K




First mover in the Eagle Ford Shale oil window.

225+ wells drilled.

Established in Houston, TX in 2007.

12,000+ barrels of oil equivalent produced per day.

100+ million barrels of oil equivalent in reserves.

And the people who make it all happen.

The Stonegate team would like to

congratulate Mike Harvey for winning

the 2014 TIPRO Best CEO award!

952 Echo Lane, Ste. 400

Houston, TX 77024

www.stone-gate.net

(713) 600-8000


year 2012, Texas appropriated $20.5 billion of

state funds for K–12 public education, almost

all of which was sent to the Texas Education

Agency (TEA) and then distributed to local

school districts. This appropriation was

financed through several sources, among them

the Foundation School Fund and the Permanent

Education Fund. What many Texans don’t

realize, however, is that the bulk of the revenue

for these two funds actually comes from taxes

and royalties paid by the oil and gas industry.

Texas allocates most state funding for public

K–12 schools through the FSF. One-quarter of

oil and natural gas production taxes are added

to the fund annually and dedicated to public

education. In 2013, nearly $748 million from

oil production taxes went into the FSF, an

all-time high. Additionally, approximately $373

million in taxes collected from natural gas

production went into the fund.

Taxes collected from oil and natural gas

production also help support Texas’ Economic

Stabilization Fund, commonly known as the

Rainy Day Fund. “Twenty-five percent of oil and

natural gas production taxes are deposited into

the Foundation School Fund, and the remaining

75 percent go to the Rainy Day Fund,” said

Bryan. During the last legislative session, the

Texas Legislature appropriated $175 million

from the fund to the TEA. “There are other

sources for the Rainy Day Fund, but the bulk of

it comes from oil and gas,” added Bryan.

The Rainy Day Fund has been spent by the

Texas Legislature on an as-needed basis since

the fund began receiving deposits in 1990. All

types of state programs have benefited,

ranging from public schools to children’s health

insurance to economic development. The fund

could be tapped again in the future by

legislators to finance transportation infrastruc-

ture or other needs. The use of the Rainy Day

Fund has largely relieved pressure from the

state to increase taxes or cut programs during

hard times.

Oil and gas development also provides

funding to the Texas Permanent School Fund

(PSF). Established in 1854 by the Texas

Legislature as a perpetual funding source for

education, the PSF is an endowment consisting

of state-owned land and mineral rights, royalty

“Over the last 10 years alone, oil

and natural gas production taxes

have accounted for nearly $10 billion

of funding for Texas’ schools

and students.”

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Committed to

Discovering and

Producing Oil

and Gas in

East Texas.

41st Largest

Private Producer

in The U.S.BBX

Operating,

LLC

Border to Border

Exploration, LLC

Headquartered in Austin, TX

Matthew J. Telfer

Chief Executive OfÀcer

www.bbxllc.com


©2014, NCS Energy Services, LLC. All rights reserved. Multistage Unlimited and “Leave nothing behind.” are trademarks of NCS Energy Services, LLC. Patents pending.

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earnings, stocks, and

bonds. The state-

owned lands are

managed by the Texas

General Land Office

(GLO), and all

revenues from the

land are deposited

into the fund to help pay for public education.

Since its inception, the GLO has deposited

more than $11 billion into the PSF from oil and

gas production on PSF lands. Oil and gas

leases on PSF lands also generate more

revenue than any other source of income for

the public education endowment.

According to the TEA, the PSF distributed

more than $2 billion for education during the

2012–13 biennium. Since 1960, it has

distributed more than $23 billion to help fund

the education of Texas students. The PSF also

provides a guarantee for bonds issued by local

school districts. Because of the PSF guarantee,

districts are able to pay lower interest rates

when they issue debt since the debt carries the

AAA rating from the three major rating

agencies. At the end of 2013, PSF assets

guaranteed $55.2 billion in school district

bonds, thus providing cost savings to 810

public school districts in Texas.

The oil and gas industry also pumps

extraordinary sums of money into Texas higher

education. In 1876, the Texas Constitution set

aside 1.9 million acres of land (today the total is

2.1 million acres) in West Texas, mostly in the

Permian Basin, to produce revenue to support

the University of Texas and Texas A&M Univer-

sity Systems. The land generated very little

revenue until the 1920s, when the first well, the

Santa Rita No. 1, was drilled and hit oil. Through

surface and mineral rights, university lands have

been genera ting revenue ever since.

Currently, 1.6 million acres of the 2.1 million

acres of university lands are under oil and gas

leases. Of the $16.9 billion market value of the

PUF endowment as of May 2014, $9.1 billion

represented oil and gas mineral income. “In

recent years, thanks to advances in technology

such as horizontal drilling and new completion

techniques, our ability to extract oil and gas

from university lands has significantly

Oil and gas leases on PSF lands

generate more revenue than

any other source of income for the

public education endowment.

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Independent producer of domestic oil, natural gas, & natural gas liquids

James McManus

2014 Texas Top Producer – CEO FinalistCONGRATULATIONS


Unmatched opportUnity

Unrivaled commUnity

www.edpartnership.net

TM_Woodlands_BLEED_0115.indd 1 12/3/14 9:52 AM

increased and revenues have increased

accordingly. Specifically, gross production on

university lands has more than doubled since

2008, and the overall royalty has increased

from 13.5 percent to just more than 18

percent,” said Karen Adler, a spokesperson for

the University of Texas System.

Revenue generated from oil and gas activity on

university lands can’t be spent, but must flow

directly into the Permanent University Fund

(PUF), which functions as a permanent endow-

ment to support UT and A&M institutions. Each

year a distribution from the PUF is made to the

Available University Fund (AUF) to be disbursed

to the two Texas university systems. The UT

System receives two-thirds of the distribution,

and the Texas A&M System receives one-third.

“Over the last five years, a total of $3.12

billion has been distributed from the PUF to

the AUF. These distributions are first used to

pay debt service due on PUF bonds issued to

build facilities at UT and A&M institutions, with

the remainder used to support operations at

certain institutions along with funding various

system-wide services,” said Adler. Examples of

recently approved projects funded by the

Permanent University Fund include the $25

million School of Management Phase II project

at the University of Texas at Dallas and the

continuation of fire and life-safety projects at

the University of Texas at San Antonio. The UT

Board of Regents also has approved PUF/AUF

funding to establish the UT System Neurosci-

ence and Neurotechnology Institute ($20

million over two years), provide mental health

programs to help students in crisis at all UT

institutions ($2.5 million), create a UT Energy

Research Engineering and Education Institute

($2 million in start-up funding), and recruit and

retain engineering and computer science

faculty ($20 million over two years).

“Because of the Permanent University Fund,

the UT System is unique in its ability to hold

the line on tuition while at the same time

making major investments in expanding

student programs, recruiting top faculty, and

building new facilities,” said Adler. “I’m not

aware of any other state that has an endow-

ment like the PUF. It’s a tremendous resource

for public higher education in Texas.” n

The Permanent University Fund

recently approved $20 million

to recruit and retain faculty in

engineering and computer

science.

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The Colt Team would like to congratulate Jim Holcomb on his

nomination as one of Texas Top Landmen named by the Texas

Independent Producers and Royalty Owners Association for

2014.

Colt Exploration Co., Inc. is a Professional organization with over 35 years experience in the oil and gas industry, specializ-

ing in all facets of Prospect Development, Land and Acquisition Due Diligence, including courthouse work, lease acquisition,

title curative, surface damage settlement and ROW acquisition, contract preparation and negotiation, and producing

property Due Diligence.

Colt’s performance is based on our team’s vast experience, strong work ethic, and a drive to be the best in the industry. Our

commitment to our client base is unparalleled, making Colt uniquely qualified to provide project management with out-of-

the-box solutions that are successful even in the most challenging of undertakings.

To learn more about our efforts and expertise, please visit us at

www. coltexploration.com

512 Main Street, Ste 600, Fort Worth, Texas 76102

(817) 870-0026


LEADING FROM THE FRONT

2014 Texas Top Producer CEO Award Winner

e a g l e o g . c o m

2014 Texas Top Producers Award

As announced by The Texas Independent Producers and Royalty Owners Association (TIPRO)

and the publishers of Texas Monthly.

The associates, friends and family of Pat Bolin and Eagle Oil & Gas wish to congratulate him on being chosen by his peers as a winner in the 2014 Texas Top Producer Best CEO award program for the medium size company category.

They also wish to express their deep appreciation for the unwavering dedication and integrity he has displayed toward his employees, his family, his faith and his community.

TM_EagleOil_BLEED_0115.indd 1 12/2/14 11:19 AM

N THE EVENING of Tuesday, October 28, 2014, TIPRO hosted

the third annual Texas Top Producers awards banquet at the

Petroleum Club of Houston. This event served as a special

opportunity for members of the Texas oil and gas industry to

join one another in celebrating the top professionals in the business, including

the best CEOs, engineers, landmen, and geoscientists. During the banquet,

finalists and winners of the 2014 Texas Top Producer awards were recognized

for their outstanding accomplishments in recent years.

Texas Top Producers Awards Banquet

Left: 2014 Texas Top Producer Honorees in the Best

Landman Category. Above: Banquet Keynote Speaker

Allen Gilmer. Below: TIPRO Leaders David Martineau,

Raymond Welder, and Ed Longanecker




lone star leaders in the oil and gas industry oil and gas by the numbers the rainy day fund —...

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