WILDCATTERWEEKLY

February 17, 2014

Please Renew Now Don’t Let Your Membership Benefits Expire!

Membership Breakfast February 25th –

Learn How We’re Responding to Anti-Fracking Initiatives

#FrackingHypocrisy

2 Western Energy Alliance Wildcatter Weekly / February 17, 2014

President’s Message

GEt InvoLvED In IssuEs sHAPInG ouR InDustRY – AttEnD tHE FEBRuARY 25tH

MEMBERsHIP BREAkFAstWhile November may seem a long time from today, the 2014 election season is shaping up to be one of the most important in years!

Here in Colorado, with the threat of a statewide ballot measure against fracking, the stakes for our industry have never been higher. For those of you who don’t operate in Colorado, you’re not off the hook – other states in the region will feel the reverberations.

A few weeks ago in my weekly message, I talked about the CRED campaign (Coloradans for Responsible Energy Development) which was established last summer to prepare for a statewide ballot measure. The Alliance is working closely with CRED along with COGA and API to properly coordinate a host of activities.

Please mark your calendar for Tuesday, February 25th when the Alliance will host a special mem-bership breakfast at 7:30 am at the Westin Hotel in the Augusta Room. If you haven’t already, please register today.

Our special guest speaker will be Paul Phillips, who’s managing CRED. He’s one of the foremost bal-lot measure professionals in the country, with an 89% success rate running 230 natural resources ballot initiatives across the country. Paul will offer specifics on the current state of the campaign, what’s been done to date, what’s planned for the next few months, what our opponents are doing, and what you can do to lend a hand in our efforts.

It’s critical that you attend this important meeting to find out specifically what you and your com-pany can do to support the campaign’s efforts. Colorado will be the center of attention nationally as this will certainly be a high-profile and closely monitored campaign.

I keep reminding our members across the West to pay close attention to what happens in Colorado because the opponents of fracking are already making plans to take this same effort to other states! The chances for them having success outside of Colorado hinges on what happens in 2014.

Again, please make time in your schedule to attend this important breakfast. Click here to register now. The cost is $25, includes a full breakfast, and is open to active members of Western Energy Alliance.

Keep up the fight!

Tim Wigley President

Western Energy Alliance members can CLICK HERE

to sign up to receive the Wildcatter Weekly

2 Western Energy Alliance Wildcatter Weekly / February 17, 2014 February 17, 2014 / Western Energy Alliance Wildcatter Weekly 3

In this Issue

Denver

Tim WigleyPresident

Kathleen SgammaVP, Government & Public Affairs

Susan FakharzadehVP, Business Development

Ursula RickManager of Regulatory Affairs

Brian MeinhartPolicy Analyst

Aaron JohnsonCommunications Analyst

Wendy WollertManager, Events & Membership

Gina MateoOffice Manager

3 Networking & Events

5 In the News

5 Industry Events

6 Advocacy

8 Industry News

Western Energy Alliance410 17th Street, Suite 700Denver, CO 80202P: (303) 623-0987F: (303) 893-0709

westernenergyalliance.org

Staff Contacts

This newsletter is for members of Western Energy Alliance only. Do not distribute outside your com-pany. Attribution of Wildcatter Weekly content for publication without Western Energy Alliance’s consent is prohibited. NOTE: In accordance with Title 17 U.S.C. section 107, any copyrighted material herein is distributed without profit or payment to those who have expressed a prior interest in receiving this information for non-profit research and educational purposes only.

networking & Events

WINtER WINE tAstING AND sIlENt AuctIoN

On behalf of Western Energy Alliance, we would like to thank you for attending, sponsoring, and donating to the 2014 Winter Wine Tasting & Silent Auction held on February 12th. Thanks to your generous support, we were able to raise $11,000 for the Western Energy Alliance Legal Defense Fund in one enjoyable evening.

Thank you to our sponsors:Anadarko Petroleum Corporation | Basic Energy Services | Beatty & Wozniak, P.C. | Bjork Lindley Little P.C. | Breck Energy Corp. | Corpac Steel | Davis Graham & Stubbs, LLP | Ehrhardt Keefe Steiner & Hottman P.C. | Encana Corporation | EnergyNet | EnviroGroup | Halliburton | Liberty Oilfield Servic-es, LLC | PDC Energy | Pioneer Natural Resources | Precision Drilling | Resolute Energy Corporation | Rockpile Energy Services | SM Energy | Stewart Petroleum Corporation | Thomas J. Sisk & Company, Inc. | Trihydro Corporation | U.S. Bank | Welborn Sullivan Meck & Tooley, P.C. | WPX Energy

First Quarter Membership BreakfastWestin Hotel, Denver

Western Energy Alliance invites you to attend the first quarter membership breakfast on February 25th. This year will prove to be a challenging year for our industry, par-ticularly in the state of Colorado. Over the past several months, Colorado has found itself in the national spotlight as our region becomes the epicenter of the anti-frack-ing movement. The advocacy efforts of the Alliance will continue to play a key role as we engage with our state allies in educating the public about the benefits of domestic energy development in the West.

We’ll feature guest speaker Paul Phillips of Coloradans for Responsible Energy Development (CRED), who will share the role and strategies of the Alliance and CRED to fight state-wide anti-fracking ballot initiatives. He’ll discuss how you can get involved to successfully counter the efforts of those trying to ban responsible energy development in and around our communities. This breakfast will be a great opportunity to get your employees involved with the Alliance and gain a forward-looking perspective on our advocacy efforts and other initiatives for 2014.

DATE: February 25th

TIME: 7:30 AM – 9:00 am LOCATION: Westin Hotel, Augusta Room, DenverCOST: $25, to include full breakfast

This event is open to active members of Western Energy Alliance.

Register today!

(continued) 0

4 Western Energy Alliance Wildcatter Weekly / February 17, 2014

WAsHINGtoN D.c cAll-uPchange of Date!

Early registration is now open for the Washington D.C. Call-Up, April 29th – May 1st. Help share the positive message directly with policymakers in Washington that western oil and natural gas holds the solution to many of our nation’s economic, environmental, and energy security challenges. Early registration ends April 1st!

Potomac River cruise: Back by popular demand! Join us for a three-hour private Potomac River dinner cruise on the Capitol Elite yacht Tuesday evening. View the monuments by moonlight along the historic Potomac River while visiting with other Call-Up attendees. This is an optional event on April 29th and additional fees apply. space is limited to the first 50 registrants, available on a first come, first served basis. Register today!

Business casual is recommended. Boarding is at 6:45 pm, leaving promptly at 7:00 and returning at 10:00.

Member Rates Early: $350 Regular: $400 Young Professional: $250 (first time attendees under 35 years of age) Tuesday Night Dinner Cruise: $150 (optional)

Non-Member Rates Early: $500 Regular: $550 Tuesday Night Dinner Cruise: $200 (optional)

networking & Events (continued from page 3)

Please Join us in Welcoming our new Members:

Our sincere thank you to the 320 member companies who have already renewed their dues for 2014. Renewing early enables us to focus on growing. If you haven’t received your invoice, please contact our office for an electronic packet. Please renew early and consider upgrading your membership for 2014 to continue supporting critical programs and initiatives for the industry.

Don’t risk a lapse in your membership benefits! Unpaid memberships will expire on February 28, 2014.

kCaliber Midstream

kGoFrac LLC

kMWH

kUte Indian Tribe

kWestern Cultural Resource Management, Inc.

Our best sources of new members are referrals from existing members. If you work with a vendor, consultant, supplier or other E&P company that isn’t but should be a member of Western Energy Alliance, contact Susan Fakharzadeh, Vice President of Business Development. New members who join today will enjoy membership benefits through the end of 2014. Please encourage your clients, business partners and colleagues to join the Alliance and gain from the benefits of membership immediately.

To view our full membership directory, please visit our members-only directory online.

4 Western Energy Alliance Wildcatter Weekly / February 17, 2014 February 17, 2014 / Western Energy Alliance Wildcatter Weekly 5

Western Energy Alliance in the nEWs

Energy Insiders: Is obama Making the Right Bet on natural Gas?February 12, 2014 - published in: National Journal by Kathleen Sgamma

Obama is not making a bet on natural gas – he’s merely facing reality. In the absence of scalable, affordable alterna-tives, natural gas will continue to heat our homes, power manufacturing, and generate reliable, clean electricity.

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Energy Alliance Challenges BLM on Last-Minute Lease-sale CancellationFebruary 14, 2014 - published in: Heartland Institute by Alyssa Carducci

Kathleen Sgamma, vice president of government and public affairs at Western Energy Alliance, said it’s important that the Utah Rock Art Research Association failed to participate in the public comment process during the designated time period.

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Rockies Energy Action lunch

Join IPAA and coGA for the next Rockies Energy Action lunch (REAl) on March 18th for the latest on legisla-tion and listing actions related to the Endangered species Act.

Guest speakers:• Kristen Lingley manages IPAA’s federal lands issues, including the IPAA Endangered Species Act Task Force. She will

provide updates on ESA issues on Capitol Hill and IPAA’s efforts.

• Kathleen Sgamma is Vice President of Government & Public Affairs for Western Energy Alliance. She will provide an overview of the status of the Sage Grouse listing and industry activities in the West.

When: Tuesday, March 18th, 12:00 pm

Where: Denver Petroleum Club, 1325 Glenarm Place, Denver

Register online or by fax.

Martz Winter symposium: Natural Resource Industries and the sustainability challengeHosted at the university of colorado law school, the symposium will explore specific challenges to opera-tionalize sustainability in natural resource industries.

The symposium will discuss how sustainability is taking shape in particular places and sectors and will endeavor to identify practical, meaningful actions to deepen ongoing efforts to make sustainability a central tenet of our economic, social, and environmental future.

Guest speakers include retired Senator Jeff Bingaman (D-NM), former Secretary of Interior Ken Salazar, Deputy Secre-tary of the Interior Designate Michael Connor, and former governors Dave Freudenthal (D-WY) and Bill Ritter (D-CO) 

When: Thursday, February 27th – Friday, February 28th

Where: CU-Boulder, Wolf Law Building, 401 UCB, Boulder

Register at www.colorado.edu/law/martzwinterconference

Industry Events

6 Western Energy Alliance Wildcatter Weekly / February 17, 2014

PuBlIc AFFAIRs#FrackingHypocrisy: Our online campaign to reveal Hollywood’s hypocrisy has shifted to the next gear. What started in December with the video Celebrities: You Don’t Know What Your Fracking Talking About has grown into a social media campaign profiling anti-fracking celebs. We’re contrasting stars who push extreme positions about our industry with

their extravagant lifestyles that are so dependent on the oil and natural gas that we produce.

Targets so far include singer Neil Young; actors Matt Damon, Leonard DiCaprio and Mark Ruffalo; “artist” Yoko Ono and son Sean Lennon; celebrity chef Mario Batali; docu-mentary film-maker Josh Fox; The New York Times; and the Sundance

Film Festival. Join us in spreading the #FrackingHypocrisy message – go to our and pages to Like, Share, Comment, and ReTweet messages.

PuBlIc lANDsBLM Pilot Office Funding: Oil and gas pilot offices, which have been a mixed success, expire in their current form at the end of 2015. We’ve been working with some congressional

Advocacy updateADvoCACY AnnounCEMEnts

Public Affairs#FrackingHypocrisy

Public landsBLM Pilot Office FundingMember Asset Database

legislativeFundraiser for Rep. Kevin Cramer 2/18

RegulatoryUinta Basin Air Quality Working GroupRegulatory Committee

upcoming MeetingsPilot Office Working Group, Uinta Basin Air Quality Working Group, Wildlife and Regulatory Committees

stAtIstIc oF tHE WEEK – Crude Oil Exports Lower Domes-tic Gas Prices: While counter to conventional economic wisdom, a study by the think tank Resources for the Future explains how

exporting domestic crude could lower the price at the pump in the U.S. The key factor is the type of crude being primarily produced as a result of the hydraulic fracturing and horizontal drilling revolution – light crude. U.S. refineries are almost all fitted to handle heavy crudes, so the light crude col-lecting in the Midwest due to transport constraints lacks refining capacity. the result is a per-barrel oil price averaging $14.83 below comparable crudes elsewhere in the world. Exporting that oil to the world’s refineries with capacity for light crude would reduce the price differential for produc-ers while also increasing the volume of refined products and decreasing gasoline prices for consumers by 2.8 – 6.9 cents per gallon.

6 Western Energy Alliance Wildcatter Weekly / February 17, 2014 February 17, 2014 / Western Energy Alliance Wildcatter Weekly 7

offices on ideas to reauthorize fund-ing for high workflow offices while introducing flexibility into the pro-cess. We continued the discussion at the last Legislative & Legal Commit-tee meeting and decided to form a working group to develop a detailed proposal. One idea on the table is additional fees for APDs received within 90 or 180 days, but others will be explored. Join us on Febru-ary 18th at 9:00 as we work to ensure the busiest BLM field offices have the resources they need to approve permits in a reasonable time.

Member Asset Database: We’re in the process of creating a database of member assets so that as land use plan revisions or other issues come up we can quickly identify which operators may be affected and seek feedback. To help with this effort, please contact Brian to identify the basins and fields in which your company currently holds leases and/or operates.

lEGIslAtIVEFundraiser for Representative Kevin Cramer (R-ND): The Congressman will be in Denver for a fundraising lunch on February 18th co-hosted by Western Energy Alliance PAC, QEP Resources, Whiting Petroleum and WPX Energy. It’s not too late to join – RSVP to Kathleen.

REGulAtoRYUinta Basin Air Quality Working Group: Please join us for our next Uinta Basin Air Quality Working Group meeting on Tuesday at 10:00. We’ll form new subcommittees to handle the technical details of key topics for the basin. These might include, but are not limited to, Tribal NSR, emissions inventories, and UDAQ rules. We welcome your sug-gestions for subcommittee leaders and topics.

UDAQ is starting to move on its four retrofit rules and has asked for our feedback. These rules were posted on UDAQ’s website for a stakeholder meeting back in July, and they are next on UDAQ’s list after the Gen-eral Approval Order. The rules cover four areas – general provisions, pneumatic controllers, auto igniters and tank truck loading – but UDAQ is also thinking about including tanks. Please review these rules and provide your comments to Ursula. 

Regulatory Committee: Our next Regulatory Committee meeting is February 27th at 10:00. Please note the date change. Last year, our Common Ground campaign focused

on the environmental stewardship of our industry. This year, the focus is how companies protect public health and safety. Please join us for a brainstorming session as we start to prepare the messages for this year’s campaign. What are the technology and methods you use, and what would you like the public to know about all you do to ensure opera-tions are safe? We’ll also continue working on Tribal NSR and discuss meeting with EPA Region 8. Please contact Ursula if you would like to add anything to our agenda.

uPcoMING MEEtINGs k

BLM Pilot Office Working Group – February 18th, 9:00

kUinta Basin Air Quality Work- ing Group – February 18th, 10:00

kWildlife Committee – February 19th, 10:00

kRegulatory Committee – February 27th, 10:00 Please note the date change.

All meetings unless otherwise indicated are Mountain Time, and at our office and via teleconference. Contact Brian for the call-in number. Meeting agendas and minutes are posted on our committee pages.

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Industry NewsBipartisan duo asks Jewell to support extension of permitting pilot

February 7, 2014 - published in: E&E Daily (subscrip-tion required) by Phil Taylor

The Interior Department should work with Congress to extend a pilot program that helps streamline the agency’s oil and gas permitting, two Western lawmak-ers said yesterday.

N.D. regulator ‘very likely’ to propose state inspec-tion program

February 10, 2014 - published in: E&E Energywire  (subscription required) by Staff

The chairman of North Dakota’s Public Service Commis-sion said it’s “very likely” that his agency will propose a state-run program to inspect the state’s oil pipelines, which would need legislative approval.

Enviros cheer BlM decision to craft oil and gas plan for pristine colo. area

February 10, 2014 - published in: E&E News PM  (subscription required) by Scott Streater

The Bureau of Land Management has agreed to con-duct a long-term plan for managing oil and natural gas development in a pristine area of south-central Colo-rado, drawing cheers from sporting and conservation groups that have long championed such an effort.

Bill would force state’s hand on severance tax

February 6, 2014 - published in: Standard-Examiner  by Antone Clark

A bill speeding up the process to implement new sever-ance tax requirements has cleared a key hurdle. State residents voted in 2012 to pass Amendment A, which requires a percentage of taxes generated from gas, oil and coal in the Beehive State, be set aside in a savings account. 

southerner in a Western seat, landrieu a mystery on public lands

February 12, 2014 - published in: E&E Daily (subscrip-tion required) by Phil Taylor

Last July, Sen. Mary Landrieu (D-La.) hoisted a Gulf Coast map at an Energy and Natural Resources Commit-tee hearing that showed the nearly 2,000 square miles of wetlands her state has lost to coastal erosion over the past century.

congress to investigate rail safety

February 11, 2014 - published in: Prairie Business by Don Davis

The U.S. House and Senate plan separate hearings on railroad safety after a series of derailments produced a flood of safety concerns.

obama administration issues guidelines on using diesel in fracking

February 11, 2014 - published in: LA Times by Neela Banerjee

The Obama administration on Tuesday moved to exert more control over the injection of diesel fuel deep underground to extract oil and natural gas, its first foray into addressing the potential contamination of water from the controversial technique.

too Much Winter, and Not Nearly Enough Propane

February 7, 2014 - published in: New York Times by Alan Blinder and Clifford Kraus

In the midst of one of the great natural gas drilling booms in the nation’s history, millions of Americans are struggling with a problem that is chilling their bones.

When drought occurs, fracking and farming collide

February 9, 2014 - published in: Denver Post by Mark Jaffe

The move to tap petroleum-rich shale reserves in some of the country’s driest regions, including Colorado, may be setting up a battle between oil and water.