society of petroleum engineers (spe), inc

SOCIETY OF PETROLEUM ENGINEERS

SECTION ANNUAL REPORT

RETURN THIS FORM TO THE SPE SECTIONS MANAGER NO LATER THAN 1 JUNE.

Please submit electronically as a Word document, if possible. If handwritten, please use black ink or type. Attach additional sheets if needed. Please limit total submission (report and attachments) to 100 pages or less. Please include only 1 example of newsletters, meeting minutes, etc. If necessary, you may state “additional documentation available upon request”.

Where applicable, please distinguish between the ongoing annual events or programs and those initiatives that were new or begun during the past section year.

Section GULF COAST SECTION Section Year August 1, 2005 to July 31, 2006 , inclusive(month)(year) (month)(year)

1. Technical Dissemination

1.1 List all regular meetings of the section, meeting topics, attendance and sponsors (if any) – continued on next pageThe ongoing regular meetings (monthly and periodic meetings) of the Gulf Coast Section (GCS) include the following area and study group meetings: General Meeting, Digital Energy Study Group, Safety and Environment Study Group, Career Management Study Group, Northside Study Group, Drilling Study Group, Westside Study Group, Reservoir Engineering Study Group, Facilities and Construction Study Group, Completions and Production Study Group, Permian Basin Study Group, Petro-Tech Study Group, International Study Group, Emerging Leaders Program and, Business Development Study Group. With a few exceptions, all of the GCS regularly scheduled meetings are luncheon meetings, complete with a cash bar, a good meal, announcements of interest and a guest speaker. The guest speakers are usually awarded a souvenir for the occasion (of nominal value, less than $25). A member committee administers each meeting and is responsible for the conduct of all of their meetings. Luncheon meetings are held to a strict schedule beginning with fellowship at 11 a.m. and concluding promptly at 1 p.m. Due to the large number of regularly scheduled meetings within the GCS, management of program topics and schedules is coordinated by a Section officer in charge of “Programs”. Although the GCS is non-profit, each group is encouraged to make a nominal profit on their meetings to account for incidental expenses, contribute to GCS scholarship and other community service programs and, build up the GCS cash reserve. The profit target during this program year was 15 percent to build up the Section reserve.

1

1.1.1 General Meeting (Holly Camilli, Chair):

Date Name of Speaker /Job Title(Note if Distinguished Lecturer)

Company/Affiliation of Speaker Title/Topic of Speech Attendance

Sept. 8, 2005

Louis W. PowersPetroleum Consultant

Powers Petroleum Consultants World Oil Supply and Demand: How Vulnerable Are We?

105

Oct. 13, 2005

Giovanni Paccaloni, Sr. Advisor SPE Past President

ENI-AGIP SPE Values, Mission Support, Energy Sustainability

59

Nov. 10, 2005

Aubrey McClendonChairman and CEO

Chesapeake Energy Corporation An Independent's Perspective on the Natural Gas Industry

131

Dec. 8, 2005

John OlsonSr. VP/Chief Investment Officer

Sanders Morris Harris 2006 Energy Investing Dynamics (Joint Meeting with API)

61

Jan. 9, 2006

Iskander R. DiyashevChief Engineer

Distinguished Lecturer

Sibneft The Oil Industry in Russia(Joint Meeting with International Study Group)

198

Feb. 9, 2006

Douglas C. NesterChief Operations Officer

Prime Offshore Surviving in the Independent Oil and Gas Business: Finding Your Niche

53

Mar. 9, 2006

Thomas M. CordanoPres. LNG Market Dev.

ExxonMobil LNG: The Future of Natural Gas 73

Apr. 26, 2006

John MorganPresident

John M. Campbell & Co. LNG: What's Happening-And Why 52

May 11, 2006

Steve Holditch, Chairman SPE Past President

Petroleum Engineering. Dept.Texas A&M University

Manpower Issues for the Oil and Gas Industry 34

2

1.1.2 Northside Study Group (Larry S. Foster, Chair):

Date Name of Speaker/Job Title (Note if Distinguished Lecturer)

Company/Affiliation of Speaker Title/Topic of Speech Attendance

Sept. 13, 2005

Kevin TannerSenior Production Engineer

Schlumberger Understanding Hydraulically Induced Fractures using Micro-seismic Monitoring

30

Oct. 11, 2005

Michael L. VermVice President

Kerr-McGeeChina Petroleum Ltd.

Kerr-McGee: Developing Bohai Bay 49

Nov. 8, 2005

James PappasSenior Engineering Advisor

Devon EnergyCorporation

A Review of Subsea Tree Types, Configurations, and Installation Methods

35

Dec. 13, 2005

W.A. Jentsch, Jr.President

JLSJ Enterprises, Inc Changing Dynamics in the Oil and Gas Industry; A Call for Public Awareness and Understanding

42

Jan. 10, 2006

Bob MeizeWorldwide Deepwater Drilling Manager Distinguished Lecturer

Anadarko Petroleum Implementing a Worldwide Deep Water Rig Strategy

66

Feb. 14, 2006

Vincent C. RoesMars/Ursa Rig Opns. Mgr.

ShellExploration and Production

First Deepwater Application of Dynamic Annular Pressure Control Succeeds

34

Mar 14, 2006

Larry E. HartmanPetroleum Engineer

ChevronTexaco Emerging Technology for De-Liquification of Offshore Gas Wells

57

Apr. 14, 2006

Kishore MohantyProfessor

University of Houston Application of Lab-on-a-chip Technology to The Upstream Petroleum Industry

20

May 9, 2006

Mike K. Hauser, Upstreami-field Program Manager

Chevron Real-Time Asset Management From Vision to Engagement – An Operator’s Experience

30

Jun. 13, 2006

Don HowardStaff Engineer

MMS Hurricane Preparedness – 2006 Readiness Plan 50(est.)

3

1.1.3 Westside Study Group (Steve Baumgartner, Chair):Date Name of Speaker

(Note if Distinguished Lecturer)Company/Affiliation of Speaker Title/Topic of Speech Attendance

Sept. 14, 2005

Joseph LachVP Subsurface Consulting


Knowledge Reservoir Engineering

Reservoir Drivers in the Selection of Wet Versus Dry Tree Facilities

57

Oct. 19, 2005

Lee MatthewsPresident

Cornerstone N.G. Engineering Horizontal Completion Practices in the Barnett Shale

105

Nov.16, 2005

Rick FowlerGen. Mgr. Deepwater Dev.

Dominion Exploration & Production

Rigel Deepwater Field Appraisal and Development

45

Dec. 14, 2005

James RodgersonRegion Engineer

BJ Services Optimizing Treatment Coverage in Horizontal Barnett Shale Wells Using External Casing

Perforating

71

Jan. 18, 2006

Robert PourciauSr. Completions.Engrg. Advisor

Chevron Insights into Deepwater Frac-Pack Completions Using Radioactive Tracers

105

Feb. 15, 2006

Larry BrittEngineering Manager

NSI Technologies, Inc. Water as a Fracturing Fluid: When Does It Work and When Does It Fail?

111

Mar. 15, 2006

Rocky SealeInternational Operations Manager

Packers Plus Energy Services Multi-Stage Hydraulic Fracturing in Openhole Horizontal Wells

102

Apr. 19, 2006

Daniel M. Jarvie, President

Bill Grieser, Technical SpecialistKent A. Bowker, Manager

Gary Schein, Region Technical Manager

Lee Matthews, PresidentSteve Sadoskas, Bus. Dev. Mgr.Dick Leonard, Bus. Dev. Mgr.John MacKay, Bus. Dev. Mgr.Dick Zinno, Chief Geophysicist

Humble Geological Services

Halliburton Energy ServicesBowker Petroleum LLC

BJ Services

Cornerstone N.G. EngineeringPinnacle Technologies

ProTechnicsWelltec

Weatherford

Symposium:West Texas – Barnett ShaleVarious Topics Including:

Exploring for & Producing Shale GasManaging Development

Fracture TechnologyOthers.

112

May 17, 2006

Bernardo MaldonadoManager, Product Line Strategy

Baker Oil Tools Extreme and Ultra High Pressure/High Temperature Completion Technologies and Gaps

47

4

1.1.4 Facilities & Construction Study Group (Sally Jabaley, Program Chair):Date Name of Speaker/ Job Title


Sept. 20, 2005

Jim HooperSenior Engineer

Fugro-McClelland Mississippi Delta Seafloor Failures during Hurricane Ivan

59

Oct. 18, 2005

John Alexander, Project Manager Richard Livingston, Engineer

Mustang Engineering Challenges of Deepwater Brownfield Projects in the Gulf of Mexico

62

Nov. 15, 2005

Margaret MillsVP, Crude Oil Marketing

BHP Billiton Oil and Gas Markets and Pricing 28

Jan 17, 2006

Cory Weinbel, General Manager Production Facilities Division

Cal-Dive Overview of Independence Hub Project 108

Feb. 21, 2006

Ben PobleteHSE & Senior Risk Manager

Lloyd’s Register Americas Lessons Learned During the Development of Maintenance and Material Handling Strategies

for Novel Offshore Platforms

46

Mar. 21, 2006

Candida ScottSr. Dir., Econ.& Cons. Software

IHS Energy LNG Cost Estimation - Workingwith Blinders On

65

Apr. 18, 2006

Karl VanBrocklinFacility Engineer-GOM Div.

ConocoPhillips Magnolia ETLP, a Gulf of Mexico Deepwater Project

89

Apr. 20, 2006

Bob Ineson, Dir. North Am. GasAG Gelotti, VP LNG Supply

Edgar Kuipers, Dir. Mkt. AccessAndy Wolford, Founder

Kyle Cuellar, Sr. Cons. Engr.David Coyle, Sr. Tech. Mgr,

Peter Noble, Floating Sys. Div.Joe Nelson, Project Engrg. Mgr.Mark McCadden, Lt CommanderTony Bingham, Global Bus. Mgr.

CERAShell North America LNGShell North America LNG

RisknologyOrtloffKBR

ConocoPhillipsMustang Engineering

Coast GuardLloyd’s Register

LNG Train: Driven by Technology and Innovation Workshop

53

May 23, 2006

David Knoll, Project Manager Mars Project

Shell E&P Mars Recovery after Hurricane Katrina 83

Jun. 20, 2006

John W. LyonVP Global Synthetics Bus. Unit

ExxonMobil Guiding Principles and Business Ethics - Operating with Integrity"

80(est.)

5

1.1.5 Business Development Study Group (Rich Munn, Chair):Date Name of Speaker


Nov. 16, 2005

Tony Lentini, VP Eugene Kim, Sr., AnalystTim Parker, Sr VP E&P

Apache Corp.Wood MacKenzie

Dominion E&P

How Well Are We Weathering the Storms?Gulf of Mexico Activities Following Hurricane

Katrina

49

Jan. 18, 2006

David Marcell, Managing Dir.Randy King, Managing Partner

Bill Brittan, President & Founder

Tristone CapitalPetrie Parkman & Co

EnergyNet

M & A & D Activities: Contrasting Merger, Negotiated and Auction Transactions in Today’s

New Market.

112

Mar.8, 2006

Garry Tanner, Senior VP & COOPaul Lee, Dir., Corporate Finance

Kolja Rockov, EVP & CFO

EnerPlus Res. FundLinn Energy

Pioneer Nat. Res.

Creating Value for the Investor and E&P Company Through Multiple Financial

Instruments.

92

May 17, 2006

Mark Schumacher, Team Leader Sam Langford, Mgr. Bus. Dev. &

Central Oklahoma;Jerry Dominey, Team Leader,

Unconventional Resources

EnCana, USANewfield Exploration

Shell E&P Americas

Unconventional Gas Plays – Barnett Shale, Woodford Shale and Other Basins

86

6

1.1.6 Drilling Study Group (Anjali Prasad, Chair):

Date Name of Speaker (Note if Distinguished Lecturer)

Company/Affiliation of Speaker

Title/Topic of Speech Attendance

Sept. 14, 2005

David TubbsEngineering Advisor

BurlingtonResources

Implementation of a Slim Hole Casing Design Utilizing Expandable Tubulars in

the East Texas Bossier

92

Oct. 12, 2005

Gary WestTechnical Manager

Baroid/Halliburton Versatility with High Performance Drilling Fluids

23

Nov. 9, 2005

Rick StonePresident and CEO

Signa Engineering Managed Pressure Drilling 74

Dec. 1, 2005

Alan OrrVP Engineering

Helmerich and Payne Flex Forward, A Look at the Development and Design of New Flex Rigs

34

Jan. 11, 2006

Brett ChandlerMarketing & Product Manager, Drilling Services

Grant Prideco Recent Advancements in Drill Pipe Technology

71

Feb. 8, 2006

Ed TollefsenNew Technology Leader, Drilling & Measurements

Schlumberger Formation Pressures While Drilling Change the Way We Drill

56

Mar. 8, 2006

Keith BrentsWellbore Departure Group

Smith Services One Trip Window Milling + Directional Drilling

45

Apr. 12, 2006

Kate Baker, Distinguished Advisor, E&P SegmentKevin Carey, Gen. Mgr., Global Deepwater

David Mannon, Sr. VP & COORick Mitchell, VP Worldwide Drilling

Phil Pattillo, Distinguished Advisor, TubularsTim Probert, Sr. VP Drlg. & Formation Evaluation

Chris Seaver – President and CEO

BPChevron

Parker DrillingDevon

BPHalliburton

Hydril

5th Annual Drilling Symposium

Don’t Get Left Behind – Identifying the Needs, Challenges and Requirements for

Future Oil and Gas Drilling

87

May 10, 2006

Bobbie Jo Kull, Drlg. Engr., Rock Mechanics Team Christine Guerrero, Drlg. Engr., Rock Mech. Team.

Chevron ROP Predictor Tool for Real-Time Bit Optimization

68

7

1.1.7 Reservoir Study Group (Chuck Wagner, Chair):

Date Name of Speaker/Job title (Note if Distinguished Lecturer)



Aug. 24, 2005

Jim Crompton, I - Fields Architect& Exhibitors (8)

ChevronTechnology providers

Reservoir & Digital Oil FieldTechnology Showcase

104

Sept. 20, 2005

Aubrey McClendonChairman and Chief Executive Officer

Chesapeake Energy Chesapeake Energy and Engineering Challenges in the Mid-Continent

Postponed – Hurricane

Oct. 27, 2005

Joseph GladbachManaging Director

Randall & Dewey Reservoir – Reserves Issues in a High Price Environment

58

Nov. 17, 2005

Ray MentzerUS LNG Regulatory Manager

ExxonMobil LNG in the US Natural Gas Market 49

Jan. 26, 2006

Aubrey McClendonChairman and Chief Executive Officer

Chesapeake Energy Chesapeake Energy and Engineering Challenges in the Mid-Continent

95

Feb. 23, 2006

Richard JonesSenior Staff Reservoir Engineer

Apache Corp. Quantifying By-Passed Oil Reserves in the Forties Field

54

Mar. 23, 2006

Mark WilliamsReservoir Management Consultant

Chevron Assessing Dynamic Reservoir Uncertainty: Integrating Experimental Design with Field

Development Planning

129

Apr. 27, 2006

Bill HaskettPrincipal, Exploration & Production

Decision Strategies Evaluation of Unconventional Resource Plays

41

May 25, 2006

Randy TolmanOperations Superintendent

ExxonMobil Advanced Multizoned Stimulation Technology

93

8

1.1.8 Completions and Production Study Group (David Flores, Chair):

Date Name of Speaker (Note if Distinguished Lecturer)



Sept. 15,2005

Richard Spears, Managing DirectorDistinguished Lecturer

Spears and Assc. Investing in Oilfield Technologies – Why Rig Count Doesn’t Matter Anymore

44

Oct. 18, 2005

Jackie LaFontaineWell Performance Manager

Shell E&P

How Do We Make the First Completion on a Deepwater Project As Good As the Last

One?

86

Nov. 17,2005

Joel JohnsSales & Marketing Manager

TecWel Applied Ultrasonic Technology in Well Bore Leak Detection

17

Dec. 15,2005

David MasonSr. Production Technologist

Shell International Exploration &

Production

A Comparison of the Performance of Recent Sand Control Completions in the

Mokoko Abana Field Offshore Cameroon

48

Jan. 19,2006

Craig L. CipollaVP Engineering


Pinnacle Technologies Services

The Truth About Hydraulic Fracturing – It’s More Complicated Than We Would

Like to Admit

87

Mar. 16, 2006

Kevin RenfroProject Advisor

Anadarko Petroleum A Follow Up to the Deepest Completions in the GOM

98

Apr. 20, 2006

Mike VincentConsultant

Carbo Ceramics Completion and Production: Field Results: Effect of Proppant Strength and Sieve Distribution Upon Well Productivity

72

May 18, 2006

Karen OlsonCompletion Team Leader Deepwater GOM

Shell E&P Multiphase Non-Darcy Pressure Drop In Hydraulic Fracturing

26

9

1.1.9 International Study Group ( Skip Koshak, Chair):Date Name of Speaker/Job title

(Note if Distinguished Lecturer)Company/Affiliation

of SpeakerTitle/Topic of Speech Attendance

Sep. 15, 2005

Matt SimmonsChairman and Chief Executive Officer

Simmons & Co. International

Twilight in the Desert? 178

Oct. 11, 2005

Michael L. Verm, VPKerr-McGee China Petroleum Limited

Kerr-McGee Developing Bohai Bay 46

Nov. 8, 2005

Mike GreccoStrategic Planning and Business Manager

Chevron Southeast Asia 22

Jan. 9, 2006

Iskander R. Diyashev,Chief Engineer Distinguished Lecturer

Sibneft The Oil Industry in Russia (Jt. Mtg. w/ General Mtg. Study Group)

198

Mar. 24, 2006

Kurt Hillman, Production VP Distinguished Lecturer

Amerada Hess International Joint Ventures, How to Keep Yours on Track

50

May 5, 2006

John J. WeustManager, Corporate Emergency Response Team

Marathon Oil Company

Major Issues in Platform and Facility Recovery: The People Factor.

50(est.)

Jun.13, 2006

R. M. Shivers IIIVice-President Projects

ATP Oil and Gas Gulf of Mexico vs. North Sea 50(est.)

1.1.10 Safety and Environment Study Group (Carole Fleming, Chair):Date Name of Speaker/Job title

(Note if Distinguished Lecturer)Company/Affiliation

of SpeakerTitle/Topic of Speech Attendance

Nov. 9, 2005

Jay E. RussellPresident

R.A.I.D Corps Inc.Substance Abuse Vulnerability

Assessments6

Jan. 11, 2006

Jason RoseAssociate of Maritime Security

Michael Stapleton Associates

Facility Security and Recent Trends in Both Domestic and International Bombings

10

Mar. 8, 2006

Marilyn BullmanS.H.A.R.P Facilitator

HalliburtonHow Do You Know Your Behavior Based

Process Is Working?11

Jun. 14, 2006

Sanjeev SarafPartner

ioMosaicCorporation

Managing LNG Risks 15(est.)

10

1.1.11 Permian Basin Study Group ( James Rodgerson, Chair)Date Name of Speaker

(Note if Distinguished Lecturer) Company/Affiliation of Speaker


Sept. 12, 2005

Steve CheungProject Leader, Conformance Control


ChevronThe Latest in Ways to Improve Asset

Value Through Better Water Management

48

Oct. 19, 2005

Doug WalserPermian Region Engineer

BJ Services Taking Advantage of the Low Density Differential Between Proppant and Carrier

Fluid in the Permian Basin

24

Nov. 15, 2005

Chris PetersonSenior Reservoir Engineer

Kinder Morgan Enhanced Gravity Drainage Through Immiscible CO2 Injection in the Yates

Field

36

Jan. 13, 2006

Jeff SimmonsManager, Integrated Reservoir Management

OccidentalPetroleum

An Integral Cog of a Successful Company 85

Feb. 21, 2006

Adrian GoodismanManaging Director

Scotia Waterous Permian A&D Activity 26

Mar. 21, 2006

Jeff HarrisRegion Engineer

BJ ServicesSuccessful Stimulation of Open Hole

Carbonate Formations using Coiled Tubing

39

Apr. 19, 2006

Daniel M. Jarvie, President

Bill Grieser, Technical Specialist

Kent A. Bowker, Manager

Gary Schein, Region Technical Manager

Lee Matthews, President

Steve Sadoskas, Bus. Dev. Mgr.Dick Leonard, Bus. Dev. Mgr.John MacKay, Bus. Dev. Mgr.Dick Zinno, Chief Geophysicist

Humble Geological Services

Halliburton Energy Services

Bowker Petroleum LLC

BJ Services

Cornerstone N.G. Engineering

Pinnacle Tech.ProTechnics

WelltecWeatherford

Symposium:West Texas – Barnett ShaleVarious Topics Including:

Exploring for & Producing Shale GasManaging Development

Fracture TechnologyOthers.

112

11

1.1.12 Digital Energy Study Group (Mike Strathman, Chair):Date Name of Speaker

(Note if Distinguished Lecturer)Co. Affiliation of

SpeakerTitle/Topic of Speech Attendance

Aug. 24, 2005

Jim Crompton, I - Fields Architect& Exhibitors (8)

ChevronTechnology providers

Reservoir & Digital Oil FieldTechnology Showcase

104

Oct. 18, 2005

Robert AydelotteStaff Engineer

ExxonMobil Data Management - A Big Challenge Getting Bigger

24

Nov. 29, 2005

Reid G SmithManaging Director

RG Smith & Assoc. Darcy’s Law applied to Knowledge Flow 20

Dec. 29, 2005

Kurt McCaslinDirector of Technology

& Exhibitors (8)

Kerr McGee and Technology providers

Business Process Management Software 110

Feb. 21-22, 2006

More than 40 speakers Operating, Service and Software

companies

Digital Energy 2006 Conference 584

1.1.13 Petro-Tech Study Group (Kimberly B. Dollens, Chair):

Date Name of Speaker/Job Title(Note if Distinguished Lecturer)

Co. Affiliation of Speaker


Nov. 8, 2005

Charles J. HagerVP, Acquisitions

Yuma E&P Company, Inc.

Future Direction of Skill Sets for Reservoir Engineer Technologists

55

Jan. 10, 2006

K. C. WhittemoreVP, Business Development

Yuma E&PCompany, Inc.

Skill Sets for Geological Technologists 61

Mar. 14, 2006

Dr. David PeltonDirector, Instructional Competencies

Petroskills The Time Has Come, the Walrus Said, to Talk of Many Things – Resume Writing

53

May 9, 2006

Alan BrownPhD Technical Consultant

Schlumberger Seismic to Simulation 28

June 13, 2006

Charles RimerDirector of Operations Services

Noble Energy, Inc Drilling 101 50(est.)

12

1.1.14 Emerging Leaders Program (John McLaughlin, Chair): ELP Developmental Programs:




Sept. 13, 2005

Arjun N. MurtiManaging Director and Business Unit Leader

Goldman, Sachs & Co.

A Wall Street Analyst’s View - $105 Oil Forecast

50

Oct. 19, 2005

Brad BowmanUS Reservoir Operations Technical Manager

ExxonMobil Building Leadership Qualities 12

Nov. 16, 2005

Robert PalmerChief Prod./Opns. Engineer, Worldwide

Occidental Leadership & Experiences to Overcome 14

Dec. 1, 2005

Michael EconomidesProfessor

University of Houston

Energy Geopolitics 90

Jan. 11, 2006

Don P. RoesleCEO

Ryder Scott Company

Leadership Lessons 13

Feb. 15, 2006

Charles ChristopherCO2 Program Manager

BP America CO2 & Climate Change–How Big of a Problem is it? What is Industry Doing

About it?

61

Feb. 22, 2006

Alana C. SmithBowl for Kids’ Sake Administrator

Big Brothers Big Sisters

Big Brothers Big Sisters Volunteering Opportunities

35

13

Mar. 30-31, 2006

Mark Pease, Sr. VPEugene Kim, Sr. Analyst,Nigel Hopkinson, Sr. VP,John Hodgin, President

David Anderson, Technical Advisor,Adam Farris, VP of Technology,

Kris Nygaard, Supervisor Upstream Research,Bridget Mueller, Consultant

Michelle Pflueger, Prod. Engr.Jay Graham, Sr. Staff Engr.Kelda McFee, Prod. Engr.

Lee Dillenbeck, Product Line Research LeaderDavid Curry, former SPE Tech Editor,

Tom Blasingame, Professor,Rich Kruger, VP

Anadarko Petroleum,Woods McKenzie, Occidental Dev.,

Ryder Scott, Fekete,

Object Reservoir, ExxonMobil,Consultant Chevron, Anadarko,

Shell, BJ Services,

Hughes ChristiansenTAMU,

ExxonMobil

Emerging Engineers ConferenceOpening Keynote

“The Impacts of the Record 2005 Hurricane Season”,

“Negotiating International Contracts – Oxy’s Middle East Perspective”,

“The Boom Continues – Unconventional Gas Plays: Barnett & Fayetteville Shales”,

“Building the Business Case for Tech: Case Study for the Oil and Gas Industry”,

“Tight Gas Completions”,“Can you hear me now? Action through

Effective Messaging”“International Opportunities Panel” “Technical Paper Writing Panel”,

Closing Keynote

110

Apr. 19, 2006

Alan StubblefieldSenior Vice President

SouthwesternEnergy

The Components of Leadership 9

May 31, 2006

Ellen M. CoopersmithFounder

DecisionFrameworks

Use of Decision Analysis in the Oil Industry

40(est.)

ELP Outreach/Networking Programs:Date Purpose of Activity Activity Type Location Attendance

Sept. 15, 2005

ELP Monthly Networking Social Industry Networking,SPE Membership

Sherlock’s 20

Sept. 29, 2005

ELP Monthly Networking Social(Broomball & Mixer)

Industry Networking,SPE Membership

Bennigan’s @ Galleria & Polar Ice Galleria

88

Oct. 10, 2005

ELP ATCE Young Professionals Networking Social

Industry Networking SPE & Student

Members at ATCE

Metropolitan Downtown Tavern 15

Oct. 20, 2005


Red Lion Pub 15

Oct. 22, 2005

Houston Grand Opera Event Industry Networking Wortham Theater Center 7

14

Jan. 20, 2006

ELP Hockey Night (Aeros) Industry Networking, ELP name-recognition

Toyota Center 25

Feb. 22, 2006


Flying Saucer 30

Mar. 30, 2006

EEC Networking Social Industry Networking EEC Attendees & SPE Student Mbrs.

Fox and Hound 81

Apr. 20, 2006


Front Porch 15

Apr. 26, 2006

ELP Community Outreach: Big Brothers Big Sisters ‘Bowl for Kids Sake”

Charity/Community Outreach Event

Palace Lanes (New Initiative that raised ~$5,000 for charity)

40

TBD ELP Field Day Industry Networking,SPE Membership

Spotts Park 50(est.)

1.1.15 Career Management Study Group ( Claude Thorp, Chair): In a new initiative, the January meeting was filmed in order to share the topic with colleges and SPE Student Chapters.




Nov. 16, 2005

Elbert W. Link Consultant

Consultant TSPE – Engineering Leadership Forum - Ethics

100

Jan. 25, 2006

Susan HowesEngineering Recruiting and Training Manager

Jeff LelekHouston Subsurface SDDN Leader

Jeff CoreyRecruiting Manager

Anadarko Petroleum Corporation

BP

ConocoPhillips

Career Development – Take Charge of Your Career

97

Feb. 22, 2006

Dr. David PeltonProfessional Communicator

PetroSkills Don’t Let the Workplace Get You Down 16

Mar. 22, 2006

Robin KesslerPresident

The Interview Coach Prove Your Competence: How to Thrive in Today’s Competency-Based Companies

19

15

1.2 Did an SPE officer (SPE President, Past President, President-Elect, or Treasurer) visit during the section year?

Date of Visit Name SPE Office Held AttendanceAug. 26,

2005Stephen Graham

SPE-GCS Kickoff meetingSPEI Director, Operations Americas 100

Oct. 13,2005

Giovanni PaccaloniSpeaker for General Meeting

SPE Past President 59

Oct. 13,2005

Eve SpruntAttendee at 70th Anniversary Celebration

SPE President 335

Oct. 20,2005

Mark RubinSPE-GCS Board Meeting

SPEI Executive Director 12

May 11, 2006

Steve HolditchSpeaker for General Meeting

SPE Past President 34

1.3 List all study-group meetings, with attendance numbers, of the section. All study group meetings were reported in detail individually in this report (pp. 2-15). All study groups with the exception of Business Development, Completions & Production, Petro-Tech, International, Safety and Environment, Digital Energy and Emerging Leaders Program schedule their meetings on a monthly basis from September or October through May or June. Some may take off during December, depending on the difficulty of arrangements and major scheduling conflicts with other meetings, whether local or international. Most study groups conduct luncheon meetings. On special occasions, evening meetings are held but they are rare.

List all short courses, seminars, and workshops, with attendance numbers, sponsored by the section.

Date Title/Short Description of Activity Funds Raised

Attendance

Sept. 21, 2005

“Ethics for the Practicing Engineer” covers the common morality, personal ethics, and professional ethics issues that the engineer faces as a professional. The class discusses the role of professional and technical engineering society codes of ethics, and the Engineering Practices Act. (Continuing Ed.)

+$1465 133

Oct. 10, 2005

ELP 4th Annual Petrobowl (Dallas Convention Center, Dallas, TX). Outreach to SPE Student Chapters through an annual quiz-bowl competition at the ATCE.(PetroSkills sponsorship). Thirteen (13) teams competed.

+$212 150(est.)

Oct. 10, 2005

ELP ATCE Young Professionals Networking Social (Metropolitan Downtown Tavern, Dallas, TX): Industry networking among ATCE attendees & SPE student members

-$318 15(est.)

Nov. 8, 2005


+$287 46

16

Feb. 22, 2006

“Unconventional Reservoirs – Barnett Shale formation from Outcrop to Surface” covers the evaluation of Barnett Shale outcrops to better understand the vertical and lateral distribution of the various lithofacies that are common throughout the Barnett Shale. (Continuing Education)

+$851 114

Mar. 30-31, 2006

Emerging Engineers Conference/Golf Tournament (Anadarko Petroleum Corporation/The Oaks Course - The Woodlands). Two-day conference focused on career development & networking (Anadarko Petroleum, ExxonMobil Production, Occidental Development, Chevron sponsorship)

+$16,114 110 (Conference)

76 (Golf) 18 (Others)

Apr. 4, 2006

“Oil Patch Orientation” exposes non-technical personnel to an audio-visual guided tour through the oil patch, from discovery through depletion of fields. (Continuing Education)

+$3546 98

May 18, 2006


+$3000(est.)

19

June 29,2006

2006 ELP Roughneck Camp. Introduction of SPE-GCS to Houston-area summer interns and new-hires involving ice-breakers, keynote speakers, and a networking social.

n/a 125(est.)

July ??, 2006

“Oil Patch Orientation” exposes non-technical personnel to an audio-visual guided tour through the oil patch, from discovery through depletion of fields. (Continuing Education)

+$3500 (est.)

100(est.)

1.5 List all technical conferences, exhibitions and symposia, with attendance numbers, sponsored by the section.Emerging Leaders Program (ELP): 4 th Annual PetroBowl (@ SPE ATCE), Oct. 10, 2005, Dallas, Texas. Sixteen (or 13 as stated above?) student chapter teams registered to compete from 10 a.m. to 5 p.m., and the attendance in the room during any hour varied from 100 to 300 persons as active students and alumni came in to support their alma maters during the competition.

Business Process Management Software Technology Showcase: On December 9, 2005, the Digital Energy Study Group hosted the second in a series of technology showcases, aimed at business process management software. The purpose was to expose SPE members to an exciting and powerful genre of software, which is underutilized in the energy industry. Eight vendors made presentations about their capabilities (IBM, K2.Net, Documentum, File Net, Microsoft, SAP, Open Text and Fuego ). This format is a new initiative and has the advantage of maximizing exposure to technologies in a short period of time. This saves time for operators and the software sellers. The keynote speaker was Kurt McCaslin, Director of Technology, Kerr-McGee, who described application of Business Process Management software within Kerr McGee. Attendance was approximately 110.

Sixth Annual Digital Energy Conference: This event is becoming the industry event for oil and gas, focused on the application of digital technologies and associated processes in the energy business. This year there were 584 in attendance at the two-day event on February 21 & 22, 2006. The survey responses indicated more than 80 percent of the attendees felt it was valuable content and worth their time. Keynote speakers on the first day included Steve Hinchman, Senior Vice President of World Wide Production for Marathon Oil Company, who spoke on the need for new ways to work to be competitive in the future, and how those new work methods will be enabled by technology. Dr. Carla O’Dell, President of

17

the American Productivity and Quality Center (APQC) provided an entertaining luncheon speech on the value of knowledge and how it can be measured. She leveraged APQC’s experiences in other industries. The second day was packed with two C-level panels. One presented the challenges the industry faces and the second responded to those with technology solutions. This was an innovation for this year’s event to drive attendance into the second day and by the response it succeeded. These panels included: Ron Mobed, CEO of IHS Energy; Don Paul, SVP and CTO of Chevron; John Gibson, CEO of Paradigm Geo; Bertrand DuCastel, Schlumberger Fellow; Alan Huffman, CEO of FusionGEO; and Jerome Beaudoin, CIO of Devon Energy. One of the indicators of success is the number of conferences spawning recently that address the same kind of issues, notably SPE Intelligent Energy and a number of for-profit seminars presented by AQPC and others. This proves that the vision that the SPE GCS has for digital energy is both correct and timely, and interest is anticipated to accelerate in the coming years. In a new initiative this year, SPE-GCS partnered with the SPEI conference organizational staff from Richardson. It was a success and helped keep conference costs under control. The conference also met its financial targets and contributed more than $50,000 to the SPE-GCS scholarship funds.

Emerging Leaders Program (ELP): 2 nd Annual Emerging Engineers Conference (EEC), March 30–31, 2006, Anadarko Petroleum, Houston, Texas – The conference was attended by 110 young engineering professionals representing 25 companies, increasing attendance by 160 percent over last year. The conference boasted upper management speakers from four larger employers, as well as presentations on technical skills, interpersonal skills, current events, and new technology. The networking social was also well-attended by 81 of the registrants. The golf networking event held in conjunction with the conference drew 76 golfers including 18 non-conference attendees. Net profit from the event was just under $15,000. This profit was directly due to higher attendance and more sponsorships, thus offsetting higher expenses and establishing a premier event. The intangible benefits of highlighting the ELP, reaching a broad audience for SPE, and establishing the EEC as a premier event are, at this time, immeasurable.

Awards and Scholarship Banquet: An inspirational evening on May 11, 2006, where the multi-faceted technical and leadership achievements of several generations of superstars in the energy industry were celebrated by more than 330 attendees. The keynote speaker was Bill White, Mayor of Houston. The audience included: 1) SPE-GCS scholarship winners (high school seniors who will be engineering majors) and their parents; 2) SPE Scholarship renewals (petroleum engineering majors who are current college students) and their parents; 3) SPE award winners from the Science Engineering Fair of Houston in the Chemistry, Physics, Engineering, Earth & Space Science and Environmental Science (who are middle school and high school students) and their parents; 4)SPE-GCS Emerging Leaders Program (ELP) members (SPE members with less than 10 years industry experience); 5) SPE Legion of Honor members (50 continuous years of SPE membership); 6) SPE Auxiliary members (SPE-GCS spouses’ organization); 7) Various winners of SPE section and regional awards who were recognized for volunteerism; and, 8) SPE members and their spouses. The ELP was designed to identify and develop future leaders for SPE, to recognize and affirm the leadership potential of young members and to strengthen SPE through ELP initiatives. Awards Banquet Sponsors included $500 table sponsors: AMEC Paragon, Anadarko, Baker Hughes Inc, BJ Services (2 tables for total of $1000), BP, Chevron, Deep Gulf Energy LP, ExxonMobil, Grant Prideco, Hexion Oilfield Technology Group, Houston Exploration, Schlumberger Information Systems, and Weatherford.

18

Electric Submersible Pump (ESP) Workshop: April 23 - 27th, 2007, The Waterway Marriott, The Woodlands, Texas.The 24th ESP Workshop will be conducted in April of 2007. The ESP Workshop committee has decided to run the workshop every other year so that it would not be competing with the SPE European Artificial Lift Forum which runs every even numbered year in Aberdeen. This is a new initiative since 2006 is the first year that the ESP workshop has not been held. The goal of the alternating years is to enhance participation and quality of presentations while furthering the technology of Electrical Submersible Pumping Systems and the application of the system.

Additional technical conferences, exhibitions and symposia:

Reservoir & Digital Energy Oil Field Technology Showcase: August 24, 2005, co-hosted by the Digital Energy and Reservoir Study Groups focused on reservoir software (Eight vendors made presentations about their capabilities and the keynote speaker was Jim Crompton, Chevron I - fields Architect), 104 attended.

GCS Kickoff Meeting: Section Goals and Study Group Workshop, August 26, 2004, AMEC Paragon - 10777 Clay Road, Houston, TX 77041, USA, 100 attended.

5th Annual Drilling Study Group Symposium, “Don’t Get Left Behind – Identifying the Needs, Challenges and Requirements for Future Oil and Gas Drilling”, April 12, 2006, 87 attended.

“West Texas – Barnett Shale Symposium”, Westside and Permian Basin Study Groups First Joint symposium, April 19, 2006, 112 attended. (New Initiative)

Facilities and Construction Study Group Workshop: “LNG Train: Driven by Technology and Innovation Workshop”, April 20, 2006, 53 attended.

1.6 List ways your section shares technology with other sections, the Society and other industry groups.GCS Technology Transfer Committee (TTC): The TTC is charged with improving the dissemination process of technological information. In a new initiative begun during this section year, the TTC explored ways to implement technology transfer recommendations in the Long Range Plan. The committee remains composed of the three main segments of industry to address dissemination issues: a broad base of operators, service companies and independent consultants working to determine methods to efficiently capture and share technical content as it emerges from the committee events. The group met as small teams throughout the year and during open conference calls. Based upon input from the Programs and Communications groups – two sectors that interlace with technology transfer, the focus items address potential means to further disseminate the results of high interest topics accomplished by the section.

This year has proven to be an active year but last minute email alerts were required for many first class events. Recognizing busy volunteer workloads, the TTC identified a test case to capture on audio/video feed and present on the website. The committee realizes packaging and ease of use are paramount to getting information to the membership. One area of growing interest is IPOD technology which the committee will explore and test during the coming year. The group continues to identify new technology as it becomes available and will point it toward the appropriate

19

study groups. They have been working with the GCS Webmaster to investigate options for improving ways to make this information accessible to the general membership effectively. The TTC feels this is a good opportunity to implement advances in video and audio streaming technology to support the excellent work accomplished by the study group committees. The focus will be on reaching members who are unable to attend a monthly study group meeting. This is not intended to replace the effectiveness of meeting face to face and networking which the TTC feels remains the best means of technology transfer, but to address the feedback received from members who simply have scheduling conflicts or heavy workloads. The TTC plans to work closely with all committees to implement this strategy. A June, 2006 breakfast meeting is scheduled to plan and implement the above strategy. Pricing structure will be discussed in detail with a market plan taking into consideration advancement of video and audio streaming technology.

In a new initiative, the January meeting of the Career Management Study Group was filmed in order to share the topic with colleges and SPE Student Chapters. The title of the panel discussion was “Career Development – Take Charge of Your Career.”

20

2. Section Operations

2.1 Officers – List current officers.

SPE Office Held Name Beginning-Term End-Term

Section Chair Bryant Mueller, Schlumberger August 1, 2005 July 31, 2006

Vice-Chair Roger Hite, Business Fundamentals -ditto- -ditto-

Secretary Allen Shook, BlackRock Energy Capital -ditto- -ditto-

Treasurer Art Schroeder, Energy Valley -ditto- -ditto-

Vice-Treasurer Bill Bowers, Hanover Company -ditto- -ditto-

Career Management Claude Thorp, Collarini and Assoc. -ditto- -ditto-

Communications Pat Lawrence, ConocoPhillips. -ditto- -ditto-

Community Services Ricky Pena Jr., Anadarko Petroleum Corp. -ditto- -ditto-

Membership Randy Woods, ExxonMobil Corp. -ditto- -ditto-

Programs Open -ditto- -ditto-

Social Activities Bruce Davis, TransAtlantic Energy -ditto- -ditto-

Technology Transfer Don Duttlinger, PTTC -ditto- -ditto-

Director Ken Arnold, AMEC Paragon Engrg. Services -ditto- July 31, 2007

Director Mark Peavy, Kerr-McGee Corporation -ditto- -ditto-

Director Kermitt Walrond, Consultant -ditto- -ditto-

Director Nick Piskurich, BP -ditto- July 31, 2006

Director Russ Neuschaefer, Schlumberger -ditto- -ditto-

Director Hiep Vu, Shell International E&P -ditto- -ditto-

Director/Past Chairman Susan Howes, Anadarko Petroleum Corp. -ditto- July 31, 2006

Gulf Coast Region Director Janeen Judah, Chevron -ditto- October, 2006

21

2.2 Section Committee Chairpersons:


Auxiliary Paulette Williams August 1, 2005 July 31, 2006

Business Development Rich Munn, Noble Royalties Inc. -ditto- -ditto-

Web Technology Regina Eco, Miller and Lents Ltd. -ditto- -ditto-

Completions & Production David Flores, TAM International -ditto- -ditto-

Continuing Education Janice Menke, Matador Resources -ditto- -ditto-

Drilling Anjali Prasad, Hydril -ditto- -ditto-

Digital Energy Mike Strathman, Aspen Technology -ditto- -ditto-

Emerging Leader Program John McLaughlin, Ryder Scott Co. -ditto- -ditto-

ESP Workshop Noel Putscher, El Paso Corp. -ditto- -ditto-

Facilities & Construction Melissa Blanscet, BHP Billiton -ditto- -ditto-

General Meeting Holly Camilli, Exxon Mobil -ditto- -ditto-

Golf Dwight Turner, Halliburton Energy Services -ditto- -ditto-

International Skip Koshak, Shell Global Solutions -ditto- -ditto-

Magic Suitcase Shawna Hartman, Chevron -ditto- -ditto-

Northside Larry Foster, Schlumberger -ditto- -ditto-

Permian Basin James Rodgerson, BJ Services -ditto- -ditto-

(2.2 Section Committee Chairpersons Continued):

22


Petro-Tech Kim Dollens, Cymraec Resources Inc. August 1, 2004 July 31, 2005

Publicity Open -ditto- -ditto-

Racquetball Alan James, Houston Exploration Co. -ditto- -ditto-

Reservoir Chuck Wagner, Apache Corp. -ditto- -ditto-

Safety & Environmental Carole Fleming, Chevron -ditto- -ditto-

Scholarship Rey Saludares, Anadarko Petroleum Corp. -ditto- -ditto-

Sporting Clays Tim Riggs, Ryan Energy Services -ditto- -ditto-

Tennis Suzanne d.Rosario-Davis, O&G Asset Clearinghouse

-ditto- -ditto-

Webmaster Jason McElweenie, Schipul -ditto- -ditto-

Westside Steve Baumgartner, BJ Services -ditto- -ditto-

Newsletter Editor Keith Rappold, Consultant -ditto- -ditto-

Newsletter Committee Chair: Mike Wysatta, Ryder ScottFeatures: Buddy Woodruff, ProTechnics

Asst. Editors: Jim Honefenger, Veritas DGC,Jack Courtney, Shawna Hartman, Chevron

Treasurer: Jan Sattler, ConocoPhillips.

-ditto- -ditto-

23

2.2

Attach list of incoming officers:


Section Chair Roger Hite, Business Fundamentals August 1, 2006 July 31, 2007

Vice-Chair Allen Shook, BlackRock Energy Capital -ditto- -ditto-

Secretary Russ Neuschaefer, Schlumberger -ditto- -ditto-

Treasurer Bill Bowers, Hanover Company -ditto- -ditto-

Vice-Treasurer Hiep Vu, Shell International E&P -ditto- -ditto-

Career Management Claude Thorp, Collarini and Assoc. -ditto- -ditto-

Communications Pat Lawrence, ConocoPhillips -ditto- -ditto-

Community Services Ricky Pena Jr., Anadarko Petroleum Corp. -ditto- -ditto-

Membership Randy Woods, ExxonMobil -ditto- -ditto-

Programs TBA -ditto- -ditto-

Social Activities Bruce Davis, TransAtlantic Energy -ditto- -ditto-

Technology Transfer Don Duttlinger, PTTC -ditto- -ditto-

Director Ken Arnold, AMEC Paragon Engrg. Services -ditto- -ditto-Director Mark Peavy, Kerr-McGee Corporation -ditto- -ditto-

Director Kermitt Walrond, Consultant -ditto- -ditto-

Director Jim Montagna, BakerHughes -ditto- July 31, 2008

Director Larry Foster, Schlumberger -ditto- -ditto-

Director Sally Thomas, ConocoPhillips -ditto- -ditto-

Gulf Coast Region Director Susan Howes, Anadarko Petroleum Corp. -ditto- October, 2009

24

2.2 List all board meetings of the section.Date Mbrs.

Pres.Items Discussed

Aug. 26, 2005

16 Reviewed and approved July minutes and financials (fiscal year end). Revised Financial Guidelines and Authorities were discussed and approved. A new Business Process Management software with Livelink Solution to automate the Event Reporting and Payment Authorization process was discussed and approved for $30,000 and included in the 2005-2006 Budget . + (NEW INITIATIVE)

Sept. 15, 2005

15 August minutes and financials were presented and approved. Budgets for the Digital Energy Study Group, Permian Basin Study Group and GCS Board were presented and approved. The Board-level budget included $21,000 for an independent accounting review of GCS financial statements and treasury/business processes. + (NEW INITIATIVE). Approved email broadcasts to GCS members for a survey of topics for the Digital Energy Study Group) and a reminder of the GCS 70 th

Anniversary Celebration on October 13th. A recommendation by the Community Services Committee was approved to add a link on the GCS website to the Red Cross Hurricane Katrina relief program. Approved Community Services Committee recommendation to sponsor Earth Sciences Week with a $500 contribution. Discussed possible ways to assist the SPE Delta Section with hurricane relief. Liaison assignments for Board members were made.

Oct. 20, 2005

12 September minutes and financial report were presented and approved. Plans and estimates for the Golf Tournament were presented and approved. The 2005 GCS Strategic Plan was presented, discussed and approved. +(NEW INITIATIVE) Digital Energy Study Group presented plans for a Technology Showcase highlighting business process management software. The event was approved. Completions and Production Study Group discussed their activities and requested an email broadcast to GCS membership to highlight their activities. The Board approved an email blast to members with a designated interest in “Production Operations” or “Drilling and Completion”. Mark Rubin, SPEI Executive Director, presented a summary of the status and activities of SPEI including a review of potential Sarbanes Oxley impact on non-profit organizations and the SPE Foundation. By email vote, the board approved a $500 co-sponsorship by the GCS Emerging Leaders Program of a social/networking event for young engineers and students at the Dallas ATCE. +(NEW INITIATIVE)

Nov. 20, 2005

15 October minutes and financials reviewed and approved. The contingent budgeting process for social and special events was discussed. The Emerging Leaders Program presented plans for a March 2006 golf tournament to be held in conjunction with the upcoming ELP conference. The Board approved the event with contingencies for increasing prizes with increased sponsorships. +(NEW INITIATIVE) The vacant Publicity Chair position and use of an outside public relations firm were discussed. Email broadcasts, succession planning and nominating committee activities were also discussed.

Dec. 15, 2005

12 Reviewed and approved November minutes and financials. Discussion continued on the contingent budgeting process for certain events. Approved the 2006—2007 GCS officer slate proposed by nominating committee. Discussed the GCS policy on contracts.

25

List all board meetings of the section (Continued).

Date Mbrs.Pres.

Items Discussed

Jan. 19, 2006

12 Reviewed and approved December minutes and financials. Approved nominating committee’s recommendations for replacement of two departing board members and associated revisions to 2006-2007 officer slate. The Drilling Study Group presented plans for the 5th Annual Drilling Symposium and the event was approved. Facilities and Construction Study Group described their LNG Workshop plans and this event was approved. The Westside and Permian Basin Study Groups provided their plans for a joint West Texas Barnett Shale Symposium and this event was approved. +(NEW INITIATIVE) Plans for the Emerging Leader Program’s Emerging Engineer’s Conference and Golf Tournament were presented and the event was approved. The updating of the Magic Suitcase was described.

Feb. 16, 2006

14 January minutes and financials were presented and approved. Discussed the GCS cash reserves/working capital balance and the current recommendations of the financial advisory board on suitable investment vehicles. The Digital Energy Study Group provided final plans and estimates for their upcoming conference. A final email broadcast promoting this conference to GCS membership was approved. A written report from the GCS SPE Auxiliary was presented discussing their mission and activities. Registration issues, Newsletter advertising, award nominations, funding for Science Fair, and the Awards Banquet were also discussed. Liaison reports were received for Career Management, Petrotech, Westside, and ELP meetings.

Mar. 23, 2006

14 Reviewed and accepted February minutes and financials. The Scholarship Committee presented 5 budget scenarios for scholarship awards for 2006-2007. The board approved an increase in awards to $110,000 from $77,000 in 2005-2006 with the award amounts remaining the same. + (NEW INITIATIVE) Discussion continued on scholarships, internships, and mentoring programs for retaining top-level talent in petroleum engineering. A formal mentoring program will be established by the Scholarship committee to establish and maintain industry-scholarship award winner relationships. + (NEW INITIATIVE) Updates were received from Digital Energy Study Group and Golf committees. Executive Committee met via conference call to discuss Conflict of Interest documentation, resolution, and filing + (NEW INITIATIVE)

April 20, 2006

16 Reviewed and accepted March minutes and financials. Committee recommended the open Publicity board position not be filled but rather have Community Services Committee consider the role under their umbrella. Golf tournament update was presented and the prize policies for this event and others discussed. Scholarship Committee reported that interviews were complete and award selections stand at 35 new freshman scholarships and 29 renewals for 2006-2007. McDonald, Fox, and Lund’s (MFL) draft report of their independent review of the GCS’ 2004-2005 Financial Statements was summarized for the board. MFL found no material issues or exceptions with the financial statements. MFL’s 15 observations/recommendations on accounting procedures and internal controls were also summarized. Updates of the upcoming June 9 th Sporting Clays event, ELP Board selections, and the March 30-31st ELP Emerging Engineering Conference were presented. A representative for Texas Alliance for Minorities in Engineering provided information about their programs for possible GCS involvement.

26

May 18, 2006

14 Reviewed and accepted April minutes and financials. Discussed GCS cash balance and possible need for adjusting financial guidelines for events, need for new member service/volunteer recognition activities, and new strategic uses of funds. Input will be requested from study group and committee leadership during the 2006-2007 budget process. Committee including Audit Committee and past treasurers provided results of first meeting to discuss the MFL reports. Financial Statement Review report can be finalized with minor wording changes. Final ELP Board selections were presented. The Facilities and Construction Study Group provided a review of their year as well as requested a name change to “Projects, Facilities, and Construction Study Group” to more closely align with SPEI and their constituency. The board approved this name change. Resignation of Bill Jentsch from board was addressed.

+ New initiatives begun this section year include implementation of business process management software for automation of the Event Reporting and Payment Authorization process, an independent accounting review of GCS financial statements and treasury/business processes, approval of the 2005 Strategic Plan , co-sponsorship of the young engineer’s social event at ATCE and an ELP golf tournament to be held with the ELP-EEC, the joint West Texas Barnett Shale symposium, increase in scholarship awards from $77,000 to $110,000, establishment of a formal mentoring program between GCS membership and scholarship award winners, formal procedures for Conflict of Interest documentation, resolution, and filing.

27

3. Financial3.1 Include copy of section financial statement at end of the section year.

Please see Attachment A: Gulf Coast Section Balance Sheet, March 31, 2006.

3.2 List the section’s sources of income and list of sponsors (if any).Tennis TournamentGolf TournamentContinuing Education ProgramsCorporate Donations to ScholarshipsCorporate and Individual Sponsorships of Recruiting Fairs Corporate Sponsorships for Social Events, Golf, Tennis, Racquetball, Sporting ClaysCorporate Sponsorships for Digital Energy Workshop Membership Rebates and Stipends from SPE InternationalMinimum Profit from Study Group and other regular MeetingsNewsletter ProfitsRacquetball TournamentSporting Clays TournamentStudy Group Workshops and SymposiaWebsite Advertising Gains from Investing Reserve Funds

Gulf Coast Section 70 th Anniversary Celebration Sponsors included seven Platinum ($2000) Sponsors: Anadarko Petroleum Corporation, BJ Services, BP, Halliburton, Hexion Oilfield Technology Group, Santos USA Corp. and Schlumberger Information Systems. There were nine Gold ($500) Sponsors: Chevron Energy Technology Company, Collarini Energy Staffing Inc., Grant Prideco, Mullen Energy Corp, Oxy, Precision Energy Services, Randall & Dewey, Signa and Total. There were eight Silver ($100) Sponsors: Beyond Compliance, EnRisk, Enventure Global Technology, Fairways Offshore Exploration Inc., Microsoft, Newpark Drilling Fluids Laboratory Inc., Upstream CIO Newsletter, and Wild Well Control Inc. These sponsorships exceeded SPE-GCS budgeted projections by 16 percent for this event.

Digital Energy 2006 Sponsors and Exhibitors included Aclaro Softworks, Advantek International Corp., Aspen Technology, Inc., BEA Systems, Bearing Point and Google, Clarity Visual Systems, CyrusOne, DataHorizon Limited, Earth Decision, EMC Corporation, Geologix Services Ltd, Hummingbird, IHS Inc, Infosys Technologies Ltd, Intervera Data Solutions, K2.net - SourceCode North America, Knightsbridge Solutions, L&T , Infotech, LiquidFrameworks, Merrick Systems, Inc., MetaCarta, Inc., Microsoft, Microwave Data Systems, NSI Upstream, OGRE Systems Inc., Open Text Corporation, Oracle USA, Inc., P2 Energy Solutions, PartnerMetrics, Petris, Real-Time Innovations,

28

Scandpower, Petroleum Technology, Schlumberger Information Solutions, Serafim Ltd, Software Architects, Stone Bond Technologies LP, Stonebridge, Sungard Availability Services, SWORD, Inc., Welcom, Wellogix, Inc., and Xvand Technology

Emerging Leaders Program – Emerging Engineers Conference Sponsors included Anadarko Petroleum –$3000, ExxonMobil Production –$3000, Occidental Development –$1000, Chevron–$1000, Anadarko Petroleum – venue for event, Anadarko Petroleum - roundtrip tickets for two to Hawaii ($1,500 voucher), STS Rentals – Door Prizes, Derrick Equipment – Door Prizes, Object Reservoir – Door Prizes, Halliburton – Door Prizes, and Petroskills – Door Prizes.

Business Development Study Group Sponsors included Challenger Minerals - $250, Wells Fargo Energy Advisors a division of Wells Fargo Securities, LLC - $250, Randall & Dewey a division of Jefferies & Company, Inc. - $250, and EnergyNet - $250.00.

PetroTech Study Group Sponsors included Collarini Energy Staffing - $600.

Westside Study Group Sponsors included Baker Oil Tools – gift certificates - $50, BJ Services - speaker gifts - $500 for “West Texas – Barnett Shale Symposium”, BJ Services - gift certificates - $200), ProTechnics – gift certificates - $100, Schlumberger – gift certificates - $100 and Schubarth Consulting – gift certificates - $100.

Awards Banquet Sponsors included table sponsors ($500 each except as noted): AMEC Paragon, Anadarko, Baker Hughes Inc, BJ Services (2 tables for total of $1000), BP, Chevron, Deep Gulf Energy LP, ExxonMobil, Grant Prideco, Hexion Oilfield Technology Group, Houston Exploration, Schlumberger Information Systems, and Weatherford.

Scholarship Sponsors ($2000 each except as noted) included Anadarko Petroleum, Baker Hughes, BP, Challenger Minerals ($250), Chevron, Devon Energy, Grant Prideco, Hilcorp, Marathon, and Schlumberger Information Solutions.

3.3 Does the section require payment at the time a reservation is made for section meeting?No, it is encouraged but not required. Payment is made at the time of the meeting via cash or check. Payments made at the time a reservation is made are those made by credit card either by fax or on the Website.

3.4 Does the section bill persons who make reservations for a meeting but do not attend? Yes. The meeting committee reports no-shows and the Study Group Treasurers are encouraged to bill them.

3.5 Does the section have section dues? (Do not include charges for section luncheon/dinner meetings.) No. The section makes a nominal profit on its meetings and newsletter and the section has not elected to assess section dues.

29

4. Communication Within the Section

4.1 Enclose a copy of one monthly section newsletter or meeting notice with an average preparation and distribution per unit cost and total cost.

Included with the hard copy of this report is the May 2006 issue of the GCS Monthly Newsletter. During this program year, the GCS published ten (10) 32-page newsletter issues. Beginning this year the summer issue is being included in the following publishing year. Advertising revenues were $240,714 and total expenses were approximately $167,290 (final accounting not completed). Monthly circulation is approximately 11,762. Printing and distribution cost per issue is $1.42 and revenue per issue is $2.05, leaving a positive cash flow of $0.62 per issue less incidental expenses, which vary slightly from year to year.

4.2 In what way does the section distribute its newsletter (circle all that apply):postal hardcopy X email X fax website download other

4.3 Does the section have a website?__Yes. If so, please list the website’s address___www.spegcs.org____________

4.4 List other methods your section uses to communicate with its membership (e.g., email, the internet, broadcast faxing, etc.) and describe how they are used.

Email is used extensively for SPE-GCS communications with Richardson, the SPE-GCS board and the membership. SPE-GCS Board meeting minutes are distributed electronically to all board members and other members in attendance. Minutes focus on action items, questions, motions, public relations opportunities and associated handouts. This serves to enhance communication between board members who were in attendance with those who were unable to attend. The newsletter editor often creates articles out of “news” items outlined in the minutes for the next newsletter. Similarly, the Webmaster often picks up “news” items of immediate interest from the minutes to showcase on the home page of the SPE-GCS Web site. Electronic communication is also used by the SPE-GCS Secretary to make announcements and calls for volunteers to a general distribution list of active section members grouped by study group committee on a “blind carbon copy” basis. Minutes are archived on the Web site. The BOD meeting minutes for April 2006 are posted here: http://www.spegcs.org/en/cms/?104. An e-newsletter is distributed to all registered users of the website during the first week of the month, with summaries of events linked to the calendar page where one can register for the event.Press releases are sent to the Houston Chronicle, Houston Business Journal and college newspapers at both Rice University and the University of Houston, asking editors to post SPE-GCS Career Management events on their calendars of upcoming events. In addition, the Community Services Scholarship Committee sends notices to the Houston Chronicle to be published in the community editions of the paper concerning scholarship winners and the annual awards banquet.

Communications Leadership The SPE-GCS continues to make communications a priority. The Web site and newsletter continue to provide members with valuable information on study groups and special events. The Communications Director, Pat Lawrence, coordinates the efforts of the newsletter, Web site and publicity committees to ensure efficiency and maximum coverage and reach. She has three committee chairs,

30

each one assigned to a specific communications vehicle. With this communications structure, the SPE-GCS is able to maximize visibility of its valuable resources for current and potential members, as well as other interested parties in the community. The publicity chairman’s position is open this year as the function and scope are being reevaluated.Publicity chair: openWeb site chair: Regina Eco

Newsletter chair: Mike Wysatta

SPE-GCS Website: The primary objective of the Web Technology Committee is to provide an easy access communications vehicle to facilitate not only meeting registration but also technology transfer. A secondary objective is for the Web site to become self sustaining with revenue generated by Web site advertising and sponsorships, job placement listings, business directory listings, and e-newsletter sponsorships. In continuing the efforts to ensure that website content is accurate and up to date, a new Content Manager feature was added to the site this year to allow quick and easy editing of pages online. Pat Stone continues to sell site sponsorships, banner ads, e-newsletter sponsorships and business directory ads for the Web site. For the first time this year, job postings and web ads are generating sufficient revenue to cover the costs of maintaining the website.

During the 2005/2006 year, the SPE- GCS website added several new features as new initiatives to better serve the Membership. Additional efforts were made to enhance the capabilities of the site at a minimal cost. Below are a few highlights:

Job Board Financial Highlights. Job postings and total revenue for SPEGCS.org Job Board Postings RSS Upgrade. RSS was upgraded from 1.0 to 2.0. RSS (Really Simple Syndication) is a way for a user to subscribe to various content

on SPEGCS.org Site Totals. The Hits/Visits/Page Views are continuing an upward trend Newsletter Generator/Template - The newsletter generator was updated with increased functionality. A template was added to the

newsletter process to further SPE-GCS marketing efforts. WYSIWYG Editor – What is WYSIWYG? What You See Is What You Get. An integrated editor was added to SPEGCS.org to further

ease online editing. Podcasting. SPE-GCS can host podcasts to which members can subscribe. In a new initiative, study groups and committees can now

post audio and video files from luncheons and seminars.

31

RSS Upgrade: RSS was upgraded from 1.0 to 2.0. This enables a richer feed for the end user. A user can now separate which syndicated information they can subscribe to including; Press Releases, Articles, Calendar Events, Job Listings, Resume Listings, Directory Listings and the Site OPML list along with all Syndicated Content including Podcasts.

32

Site Totals: The SPEGCS Web site continues to show an increasing trend in site traffic and has been an invaluable tool for communications both within and beyond the section’s membership.

Date Hits Visits Page Views2003 11,441,537 409,612 1,353,0692004 10,795,506 431,931 1,817,6932005 11,749,268 571,212 2,064,6282006 (est. based on Jan.-Apr.) 14,000,000 965,000 3,300,000

33

Newsletter Generator/Template: The Newsletter Generator has been updated. Easier navigation and newsletter submission has been added to SPEGCS.org. A newsletter template has been added to the process enabling a more streamlined marketing approach for the site.

The Newsletter Generator and Template gives the user a choice of content to include in a newsletter. Users can choose from a specific date range and which particular content will be shown. Jump links were also added to the newsletter template. These links give the viewer an aid in navigating the SPEGCS newsletter. The screen shot above to the right notes these links in the color blue.

34

WYSIWYG: WYSIWYG is an acronym for “What You See Is What You Get”. This translates to an easy way to edit Events, Articles, Job Postings, Resumes or any other area of the site that can be edited. Users who have limited or no HTML experience can navigate through the WYSIWYG editor to change the formatting of any particular document they are working on. Users can post pictures, paste content from a Word document, create hyper links, format text and preview before posting.

A User can also choose from a number of templates that further ease the page building process. This has been configured to keep in mind that many SPE-GCS users might be HTML illiterate.

Podcasting: Podcasting has been added to the SPE-GCS website. Now Study Groups and Committees can post audio and video files to the SPE-GCS site. Users who subscribe to these podcasts can listen to audio or video postings of special luncheons and seminars.

35

5. Communication and Participation Outside the Section

5.1 Describe your relationships with other professional societies (national or international) which are active in petroleum engineering or related areas. Describe any joint activities and initiatives (ongoing and new).

The SPE-GCS enjoys a healthy relationship with many other professional societies in the Gulf Coast Region. The Section continuously supports the Houston Energy Council (HEC) which it helped form in 1999. HEC is an organization designed to promote communication between professional energy organizations in Houston. Its mission is to share information, promote cross-disciplinary education and networking, encourage participation in each other’s programs, and facilitate development of cooperative programs. Member organizations include the American Petroleum Institute, Houston Bar Association, Houston Geological Society, Society of Independent Professional Earth Scientists, Society of Petroleum Engineers, Society of Petroleum Evaluation Engineers, Society of Petrophysicists and Well Log Analysts, and the Houston Association of Professional Landmen. Currently, one Board member of the SPE-GCS serves on the Board of the HEC. The SPE-GCS website provides access to a consolidated calendar of all HEC organization events to ensure that SPE Members are aware of and have access to other professional society organized events. http://www.spegcs.org/en/cev/lists/

SPE-GCS is an active member in the Texas Society of Professional Engineers (TSPE), helping to promote the benefits of being a certified professional engineer to its members. As part of this activity, SPE-GCS participates in the annual selection of the TSPE Engineer of the Year, as well as the selection of a young SPE Member to be named one of several TSPE Young Engineers of the Year. Several SPE-GCS members serve currently and in the past as members of organizing committees for the TSPE.

Every year, the SPE-GCS hosts a joint monthly meeting with the API. This section year’s meeting was held December 8, 2005, and the topic of discussion was “2006 Energy Investing Dynamics.” A board member also serves on the API Workforce Initiative.

The 8th annual Houston Cup golf tournament, jointly organized by the SPE GCS, API, IADC, and AADE, is designed to promote some friendly competition between the four respective groups. The officers of each organization are grouped together during the tournament to promote the sharing of ideas and innovative concepts for non-profit organizations in the energy industry. The next Houston Cup will be held during the Fall of 2006.

The SPE-GCS Website contains a feature on “Career Management”, which is an extensive job search program pioneered within SPE by the SPE-GCS during the last several years. The service is provided for the petroleum engineering community, worldwide. It provides career search aids and continuing education sites. The current Career Management features include: search job listings, post a job listing, search resources, post a resume, my resume, career transition primer, salary surveys, online resources, and professional development coursework. As of May 21, 2006, there are 48 job listings and 20 resumes posted.

Greater Houston Energy Education Collaborative (GHEEC): A SPE-GCS board member attends these meetings designed to leverage existing educational outreach programs to encourage students in the Houston area to consider careers in energy. See section 7.3 for details.

36

5.2 Do you see ways to change your relationships with other societies to improve the benefits to members? Can SPE assist in any way?

The SPE-GCS has seen tremendous success with its annual joint meeting with API, held this section year on December 8, 2005. The members of both societies have shown their interest by their attendance, which reaches over 100 attendees each year. Both societies would like to pursue further opportunities to host joint meetings. One of the SPE-GCS board members is serving as a committee member on the API Workforce Initiative.

The HEC is a solid organization for promoting the sharing of ideas between multiple professional organizations. The challenge for the SPE-GCS is to encourage more members to get involved with outside organizations without sacrificing their commitment to SPE. The SPE-GCS will encourage its members to get involved with at least one event per year that involves another organization. Volunteers who participate in one event per year with other societies seem to gain from the interaction with the other societies without facing over-exertion that may lead to a decline in SPE volunteerism. SPEI should encourage all sections to seek out organizations like the HEC, or to be a catalyst for the formation of such organizations. The SPE-GCS has seen tremendous benefit from participation in such an organization and feels that other sections could also benefit from similar groups.

SPEI sets a positive example through its participation in large conferences like the Offshore Technology Conference that are organized and run by multiple professional societies. In the future, SPEI can assist by investing in more internal promotion of its involvement with other organizations to its members. If members realize that SPEI encourages interaction with other societies, SPE members would be more willing to interact with other organizations, and hence benefit from knowledge sharing.

Finally, SPEI can assist by investigating a better method of publicizing other organizations’ events. Similar to the joint calendar on the HEC website at http://www.houstonenergycouncil.org/, worldwide members of SPE should be able to easily see other events being hosted by fellow energy organizations. In addition, the creation of this joint calendar could boost SPE.org traffic, by being a central location for members and non-members alike to search for industry events.

5.3 List ways the section encourages its members to participate in SPE committees and subcommittees at the Society level and the SPE activities such as the Membership Workshop and the Section Officers Workshop.

At a macro level, the SPE-GCS constantly encourages its members to volunteer. Whether it is one hour per year, or one hour per week, the Section encourages its members to find a place to volunteer. The Section’s monthly newsletter column “Chair’s Corner”, regularly requests members to get involved. It is the belief of this section that any form of volunteerism will benefit the Section, the Society, and the industry. Each year, the SPE-GCS Chair sends individual letters of gratitude to each volunteer’s employer, specifying the committees on which the volunteer has served for the year.

Beyond general volunteerism, the SPE-GCS ensures that it is not only promoting local events, but also promoting SPEI events such as ATW’s. Many SPE-GCS members serve on organizing committees for ATW’s and large events like the SPE ATCE and the OTC. Active volunteers regularly announce volunteer opportunities in these organizing committees at luncheons and section meetings. The SPE-GCS also promotes active participation in TIGs via e-mail and word of mouth among Section committees.

37

Through the years, several SPE-GCS workshops have become SPEI workshops and section volunteerism typically leads to volunteerism at the SPEI level. This year, the SPE-GCS Digital Energy Conference was organized jointly with SPEI staff. This joint effort exposed local volunteers to the operations of SPEI staff and introduced future volunteer opportunities.

The SPE-GCS breadth of programs involving meetings and study groups in all areas of technical expertise provides an excellent forum to showcase and encourage experts to participate in SPE programs. Many of these experts also make technical presentations worldwide and are recognized on a Society level. Given this exposure, they are requested to serve the Society on committees and other places of leadership. The SPE-GCS volunteer base for leadership is vast due to the wide range of programs it offers and its large membership base of more than 12,500. The committee leaders, officers and directors of the section number an average of about 200 each year. The section leadership is responsible for a section operating budget of about $1,500,000 annually. Many of its past section leadership have held key positions at all levels and technical areas within the Society and present-day section leadership expects to serve the Society in the future.

Nearly all of the section chairs in the last 15 years have served on the Society BOD. A large number of SPE Presidents and SPEI Board of Directors members have come from the SPE-GCS, including several who still reside in the Greater Houston area. The fact that the OTC is held in Houston annually and the SPE ATCE is held in Houston every four (4) years recognizes that the SPE-GCS membership volunteer base is utilized to serve on conduct committees regularly. The Legion of Honor awardees, numbering over 70 this year in the SPE-GCS, included an SPE Past President, as well as numerous award winners, technical authors and champions of industry.

At the SPE-GCS annual kickoff meeting in August, all members are notified of the annual Membership Workshop held at the SPE ATCE and encouraged to attend. Board Members and Study Group and Committee members are notified and expected to attend both the Membership Workshop and the annual Section Officers Workshop. The SPE-GCS has actively led a number of programs in Section Officers Workshops at nearly all ATCE’s throughout the years. Many of the programs that the section originated later became Society-wide programs. The SPE-GCS has led the way in using the Internet for section functions for meeting registration, career assistance programs, calendars of events, email communication, etc. The worldwide ESP Workshop originated within an SPE-GCS (Northside) study group and still continues as a SPE-GCS function. The SPE/ICoTA Coiled Tubing Roundtable originated within the SPE-GCS and is now a Society sponsored function. Members of the first four SPE-GCS ELP boards have assisted SPE sections in other cities around the world with guidance on formulating their own young member focus groups.

38

Membership Development

6.1 Which, if any, major industry employers (include approximate number of SPE members if known) moved in or out of the section during each of the last 3 years?

There has been no significant change to the Gulf Coast Section’s overall membership base during the last three years that was the direct result of any major industry employer moving in or out of the area. Due to the Gulf Coast Section’s size, monthly changes are primarily driven by a continuous flow of new, transferring and reinstating members moving in and out of the section.

Major employers for the SPE-GCS are outlined in the following three charts:2006 SPE GCS Membership

Top 10 Employers

811 780

649595 591 582

357324

217 207

6% 6%

5%5% 5% 5%

3% 3%

2% 2%

0

200

400

600

800

1000

Exxon

Mob

il

Schlu

mberge

r

Chevro

n

Baker H

ughe

s

Hallibur

ton

BPShe

ll

Conoco

Phillip

s

Weath

erfo

rd

Anada

rko

0%

2%

4%

6%

8%

10%SPE-GCS Members

% SPE Membership

2006 SPE GCS MembershipTop 10 Operating Companies

811

649582

357324

207 184 178129

91

6%

5%5%

3% 3%

2% 1% 1%1%

1%

0

200

400

600

800

1000

Exxon

Mob

il

Chevr

on BPShe

ll

Conoc

oPhi

llips

Anada

rko

Mar

atho

nO

xy

Devon

Kerr-M

cGee

0%

2%

4%

6%

8%

10%

SPE-GCS Members

% SPE Membership

2006 SPE GCS MembershipTop 10 Service/Consultant Companies

780

595 591

217 179109 89 72 49 45

6%

5% 5%

2% 1%1% 1% 1% 0% 0%0

200

400

600

800

1000

Schlu

mbe

rger

Baker

Hug

hes

Hallib

urto

n

Weat

herfo

rd

BJ Ser

vices

M-I

SWACO

Smith

Inte

rnatio

nal,

Inc.

Gra

nt Prid

eco

Noble

Ryder

Sco

tt0%

2%

4%

6%

8%

10%SPE-GCS Members

% SPE Membership

39

6.2 List methods the section uses to encourage member participation in the section and its activities.

The SPE-GCS employs a number of initiatives to encourage member participation in the section and its activities. Most of these efforts are taken on by the individual study groups and committees, however, outlined below are some of the more general, more strategic steps that have been employed by the section to engage membership:

1] DIVERSE PROGRAMMING - The section offers a diverse program of technical and social activities, as well as special events that market to the varying needs and interests of its membership:

Technical Program - To accommodate the size, technical diversity and geographical expanse of the section, the section leverages 13 study groups. The study groups target different market segments as follows:

o Technical Interest - Business Development, Reservoir, Completions and Production, Drilling, Digital Energy, Facilities and Construction, Safety and Environment, and Petro-tech

o Geographical Interest - International and Permian Basino Location in Houston - General (Downtown), Northside, Westside

Social Activities - The section holds a number of social activities to engage its membership includingo Annual Golf Tournament o Annual Sporting Clays Tournamento Annual Tennis Tournamento Annual Racketball Tournament

Recognition Events - The section holds a number of general recognition events throughout the yearo 70th Anniversity Partyo Gulf Coast Section Kick-off Meetingo Annual Awards Banquet

Demographic Groupso Emerging Leaders Program - program focused at engaging young membershipo Auxillary - spouses programs

2] EFFECTIVE COMMUNICATIONS - The section leverages multiple communication mediums to remind the membership of opportunities to participate

o Monthly Newsletter by mailo Monthly Electronic Newslettero Website updates and highlights

40

o E-mails from individual study groups

3] SERVICE/VOLUNTEER OPPORTUNITIES - The section offers numerous opportunities for its membership to serve in volunteer rolls in the section including:

o Board level positions - see succession planningo Study group level positions - Chair, vice chair, program chair, treasurer, secretary, etc.o Community service activities - scholarship, internships, science fair judging, Magic Suitcase, etc.o Facilitate service through volunteer coordination committee

Volunteer Coordination – In a new initiative this year, a Volunteer Coordinator position was established on the Membership Committee to specifically spearhead and support volunteers. This position was filled by Claude Thorpe, who subsequently established a Volunteer Coordination Committee. Placement of Volunteers within the section has improved since the establishment of this sub-committee within the membership committee

6.3 List activities related to recruitment, retention, and/or reinstatement of members.

The SPE-GCS Membership Committee is responsible for developing programs and supporting efforts targeted at the recruiting, retaining and reinstating members. As of March 30, 2006, the SPE-GCS had 12,481 members (Full List).

As outlined in the Section Strategic Plan, the Membership Committee has three long-term objectives: 1. Recruit New Members - especially young engineers and those interested in the oil and gas industry.2. Retain Existing Membership - SPE Membership is essential to individuals in the Oil and Gas Industry3. Elicit More Volunteerism - from Membership and Study Groups

The 2005-2006 Membership Committee focused its efforts on three goals:1. Support Base Membership Growth

New Graduates Existing Workforce (Petrotechs, Emerging Leaders Program) Industry Transfers

2. Continue Pacesetting Efforts to Develop “Young” Membership Emerging Leaders Program Inclusion of Young Members in Study Groups/Committees Succession Planning

3. Encourage and Support Volunteerism Engage SPE-GCS Members to Volunteer Find a place for everyone!

41

The 2005/2006 Membership Committee was:

Name Position/Focus AreaRandy Woods Membership Chair – Serving on the SPE-GCS Board of DirectorsSusan Howes Past Chair – SPE-GCSClaude Thorp Volunteer Coordinator - Director SPE-GCS Rebecca Smith New Member Welcome Support

Job type demographics for the SPE-GCS:

Membership Demographics

Operators40%

Service37%

Unknown14%

Universities<1%

Consultants9%

6.4 Describe how the section recognizes membership recruitment efforts.

At this time, the SPE-GCS is currently not implementing any initiatives to recognize recruitment efforts outside of those offered by SPEI. The following ideas are currently being considered for next year:

Recognition breakfast at end of yearNewsletter Recognition

42

6.5 List and describe efforts by the section to engage and organize young professionals and emerging leaders. Emerging Leaders Program (ELP) – The Membership Committee mentors and supports the ELP for the SPE-GCS. The ELP develops and

coordinates section activities directed at SPE members with less than 10 years of industry experience. Achievements of the ELP have been documented as a separate committee.

Activities for the 2005/2006 ELP Program were directed by the ELP Board elected in the Spring of 2005. The 2006/2007 ELP Board was selected on April 20, 2006. As in previous years, the ELP Board was selected to represent the diversity of the section, with varying experience and a balance between operations and service personnel. The 14 members of the 2006/2007 Board are:

Name Company Name CompanyBasil Allam Chevron Anuarbek Imanbaev Kerr-McGeeJason Baihly Schlumberger Henry Nwabuzor ConocoPhillipsAshish Chitale Collarini Shawn Rimassa SchlumbergerTony Delmoe Anadarko Anna Scanlan ExxonMobilBrian Glater Kerr-McGee David Seeburger ExxonMobilGabriella Guerre ExxonMobil Luis Tapia AmecParagonChad Henderson Subsea 7 Sean Willis Amerada Hess

6.6 List and describe efforts by the section to liaise with industry employers. Event Sponsorship - Due to the size of the SPE-GCS and number of employers represented by its membership, no direct efforts are

currently being employed to directly liaise the section with specific industry employers. Primarily, various employers are engaged in the section through opportunities to sponsor specific events/functions and community service activities (scholarships, etc.). These efforts are primarily undertaken by the individual study groups. In return, the employers are often recognized at the events or in the newsletter.

Ambassador Program – The SPE-GCS Ambassador Program is a road show presentation put together by the Membership Committee and presented by SPE-GCS Leadership at various companies that is targeted at informing industry participants of the many opportunities provided by the SPE-GCS and SPEI. During the 2005/2006 year, an Ambassador Program presentation was made at Kerr-McGee for an audience of about 35 SPE members and potential SPE members.

Succession Planning - To ensure effective liaison with the various employers of the SPE-GCS, careful consideration is made through succession planning processes to ensure the various employers in the section are represented through its leadership.

43

7. Student Activities

7.1 List all activities sponsored by the section that were attended by members of a student chapter. Include section meetings, study-group meetings, field trips, regional meetings, short courses, SPE Annual Technical Conference and Exhibition, Offshore Technology Conference, etc., with attendance numbers.

The SPE-GCS Student Chapter Support Program includes the chapter at Texas A&M (TAMU), and the joint chapter of Rice University and the University of Houston. SPE-GCS supports the Texas A&M Student Chapter in College Station, Texas, about 80 miles away from Houston. Because most SPE-GCS meetings are luncheon meetings, it’s not very practical for A&M petroleum engineering students to attend study group meetings when school is in session. Deborah Holden from the Emerging Leaders Program agreed to work as a special liaison for both the Rice/UH and TAMU student chapters. A majority of Student Chapter events have active participation by SPE-GCS members either through attendance or financial assistance. Student chapter meeting notices are posted on the SPE-GCS Website. The Rice/UH Chapter continued to grow and excel as an SPE student chapter, attending and participating in section activities such as the Fall 2005 recruiting fairs. Students from both chapters attended the 2006 Offshore Technology Conference (OTC) in Houston.

7.2 Discuss participation of the section in student paper contest and other student chapter activities.

SPE-GCS Student Chapter Support liaisons assisted with planning and funding monthly student chapter programs whenever possible, including arranging for topical speakers at chapter meetings and making arrangements for section volunteers to participate in other functions. SPE-GCS has placed a link to the student chapter sites on the SPE-GCS Website under Community Services. The student members volunteered in varying capacities at recruiting fairs, Earth Science Week and other SPE-GCS community services events.

Texas A&M Chapter: The SPE-GCS budgeted $5,000 in 2005/2006 for support of the Texas A&M Student Chapter. $1,000 was budgeted for the annual Bar-B-Q, $1000 for general chapter support, $2000 for support of the chapter student paper contest, and $1000 for prizes at the annual Douglas Van Gonten golf tournament at Texas A&M.

Rice/UH Chapter: The SPE-GCS budgeted $1,000 in 2005/2006 for support of the Rice/UH Student Chapter for general chapter support and participation in the regional student paper contest at Texas A&M.

7.3 List all activities sponsored by the section to educate students/instructors/counselors on the profession/industry. (Indicate at what level activities are directed; i.e., elementary, secondary, or senior high school; teachers; or counselors.)

SPE Magic Suitcase: The SPE-GCS Magic Suitcase Committee's deliverables included expanding availability of the Magic Suitcases, creating a more informative website, updating presentation material within the Magic Suitcase, and also recommended updates to the SPEI Magic Suitcase presentation material. This year's distribution grew from three complete Magic Suitcases in three locations to seven magic suitcases in seven locations and reached over 1300 students and professionals. The updated website provides answers to commonly asked questions and directs possible interested presenters to the most convenient suitcase pick-up/drop-off locations. Presentation material revisions nears completion with all new pictures and updated information. Continued energy will be focused on finishing the SPE

44

presentation material and receiving approval of this new presentation material by August 2006. Shawna Hartman served as the chair of the Magic Suitcase committee for 2005/2006, and Robert Bruant, Jr. will serve as chair for 2006/2007.

9/29/2005 Clearlake High School 50 10/12/2005 Kingwood Middle School 150 11/29/2005 Science Admission program 150 2/22/2005 Memorial Middle School 250 3/1/2006 Kingwood Career Fair 250 2/27/2006 Spring Branch ISD 25

2/19/2006 Children's Museum 50 3/15/2006 Several High School - Facilities group 300-400 4/24/2006 Pearland Elementary 30 4/18/2006 Spring Branch ISD 200 4/19/2006 Poe Elementary/Science Class 50

Recruiting Fairs: Attracting bright students to apply for SPE-GCS Scholarships is one of the main purposes of the section recruiting fair program. Several of the speakers during the recruiting fairs related their first-hand experience in benefiting from scholarships in college. The SPE-GCS, trying to induce a larger turnout and a better opportunity for participating universities to persuade potential students to enter into an academic career of petroleum engineering, held the ninth annual SPE-GCS Petroleum Engineering Recruiting Fairs during the week of November 15-19, 2005. The GCS conducted 5 fairs encouraging students to consider petroleum engineering as a career opportunity. These fairs were conducted at strategic points around the city of Houston: Washington Magnet High School, Cypress Springs High School, Spring High School, Dulles High School and George Washington Carver High School. Universities recruiting in the fairs included Colorado School of Mines, Louisiana State University, Montana Tech University, Rice University, Texas A&M University, Texas Tech University, University of Houston, University of Missouri-Rolla, University of Texas, the University of Oklahoma, the University of Tulsa, and Pennsylvania State University.

Presenters included university recruiters, industry leaders, recent graduates, and the SPE-GCS Internship Chair. Information packets included scholarship applications, the SPE Salary Survey, biographies of past scholarship winners and careers information. Targeted groups were high school students, mostly juniors and seniors. Several sponsors provided in-kind donations and cash at the fairs to cover fair expenses. Following is an exhibit, which summarizes the degrees of involvement by the area high schools, identifies the speakers for the program and the SPE-GCS personnel involved in this year’s recruiting fairs.

45

OTC Student Tours: SPE-GCS volunteers conduct high school student tours annually at the Offshore Technology Conference (OTC) in Houston. Responsibility for recruiting volunteers alternates annually between SPE-GCS and ASCE. SPE-GCS member James Carpenter handled the arrangements for the 2006 OTC. Seventeen SPE-GCS and industry volunteers guided approximately 170 students through the exhibit hall on Thursday morning, May 4, 2006, followed by a luncheon.

DESP Teacher Training: The Denver Earth Science Project (DESP) was developed and is offered through the Colorado School of Mines Extension Service. It couples the exploration and petroleum engineering disciplines and presents a very positive image of the petroleum industry to the participants. It prepares teachers to present a 13-week course for students on the subject. This teacher-training program is one of the best ways to leverage section funds as the teachers routinely reach about 100 students per year with the oil and gas story. This program suffers from lack of committee volunteers, and it is hoped that it will be organized for the 2006/2007 year as a renewed program.

Greater Houston Energy Education Collaborative (GHEEC): Bi-monthly meetings for this newly formed organization have been attended by at least one member of the SPE-GCS Board. This new initiative is designed to leverage existing educational outreach programs to encourage students in the Houston area to consider careers in Energy. Task forces have been formed to address content, policy and marketing. Member organizations include the Global Energy Management Institute at University of Houston, Off Shore Energy Center, SPE, HGS, Watson Wyatt, Junior Achievement, IPAA, EFHC, HUNSTEM, API, Environmental Institute of Houston, HCCS, UH-College of Engineering, Texas Oil & Gas Association, Rice University, Engineering Council of Houston, State of Texas Industry Cluster/Energy, INROADS, Texas A&M, San Jacinto College, and WEN.

7.4 List all activities sponsored by the section that were attended by elementary, secondary, or senior high school students, with attendance numbers.

See details on specific programs above.

8. Scholarship

List all scholarship activities of the section and the percent of the section’s budget distributed as scholarships.Scholarships: Marking the forty-third anniversary of their Engineers for Tomorrow Scholarship Program, the SPE-GCS and the Houston SPE Auxiliary combined to commit $70,000 in new scholarships for 35 Houston-area high school graduating senior students for the 2006/2007 school year. Scholarship funds are awarded annually to outstanding local high school seniors who plan to pursue a career in the petroleum industry and/or will major in engineering or science. The SPE-GCS will renew $58,000 in scholarships to 29 of the program’s prior recipients, all of whom are majoring in petroleum engineering and have met the requirements for renewal. The 2006 total scholarship commitment by the SPE-GCS and SPE Auxiliary totals $128,000.

46

Funds for the SPE-GCS Scholarship Program are raised through technical workshops, seminars, symposia and study groups, continuing education programs, golf, racquetball, sporting clays and tennis tournaments and numerous company sponsorships. Anadarko Petroleum, Baker Hughes, BP, Challenger Minerals ($250), Chevron, Devon Energy, Grant Prideco, Hilcorp, Marathon, and Schlumberger Information Solutions were scholarship sponsors ($2000 each) during this program year. The Houston SPE Auxiliary raises money for its scholarship program from fundraising events, activities of special interest groups of the organization, memorial contributions, and by Auxiliary members working as volunteers in the OTC Nomad International Room, and as support staff in the SPE Houston office.

In comparing trends for the new initiative this year of SPE-GCS increased support of scholarships, for the 2004/2005 year, the actual Scholarship spend = $65,214, 23.5% of available income ($277,709), 6.8% of total spend ($1,260,473), 5.8% of total revenue ($1,472,968). For the 2005/2006 Budget year, the planned Scholarship spend = $91,100, 70.3% of available income ($129,563), 7.9% of total spend ($1,146,956), 7.7% of total revenue ($1,185,419)

Recipient/Major/University High School Section Contribution How Funded?Trevor Aston, PE Oakridge High School $2,000 Budget, Designated

Operating FundsTexas A&M UniversityBanks Beasley, PE Memorial High School $2,000 Budget, Designated

Operating FundsColorado School of MinesEric Beckham, PE Stratford High School $2,000 Budget, Designated

Operating FundsTexas A&M UniversityNikki Buddrus, PE Saint Agnes Academy $2,000 Budget, Designated

Operating FundsTulsa UniversitySteven Cottle, PE Cy-Springs High School $2,000 Budget, Designated

Operating FundsMontana Tech UniversityGregory Dykes, ChemE Cinco Ranch High

School$2,000 Budget, Designated

Operating FundsTexas A&M UniversityRobert Glenn, PE The Woodlands High


Operating FundsTexas A&M UniversityKirsten Gustafson, PE Cinco Ranch High


Operating FundsUniversity of TexasJordan Hamilton, PE The Woodlands High


Operating FundsUniversity of Texas

Recipient/Major/University High School Section Contribution How Funded?

47

Tyler Hansen, PE Stephen F Austin High School

$2,000 Budget, Designated Operating FundsTexas A&M University

Lauren Hendrix, PE The Woodlands High School

$2,000 Budget, Designated Operating FundsUniversity of Texas

Richard Hopper, PE Klein High School $2,000 Budget, Designated Operating FundsUniversity of Oklahoma

Austin Johnson, PE Lamar High School $2,000 Budget, Designated Operating FundsTexas A&M University

Bernadette Jurica, PE Rice High School $2,000 Budget, Designated Operating FundsTexas A&M University

Cody Karasek, PE Lamar High School $2,000 Budget, Designated Operating FundsTexas A&M University

Jessica Kolesar, PE Cinco Ranch High School


Aditya Kunjapur, ChemE Stratford High School $2,000 Budget, Designated Operating FundsUniversity of Texas

Janice Mathew, ChemE Booker T Washington High School

$2,000 Budget, Designated Operating FundsMass. Institute of Technology

Mikhail Mayzenberg, PE Elkins High School $2,000 Budget, Designated Operating FundsUniversity of Texas

Matthew Metzger, PE Memorial High School $2,000 Budget, Designated Operating FundsColorado School of Mines

Travis Phillippi, PE Magnolia High School $2,000 Budget, Designated Operating FundsColorado School of Mines

Cody Robinson, PE Concordia Lutheran High School


Sydney Slimm, PE Oakridge High School $2,000 Budget, Designated Operating FundsColorado School of Mines

Christine Sliva, PE Cy-Fair High School $2,000 Budget, Designated Operating FundsTexas A&M University

Michael Sollee, PE Kingwood High School $2,000 Budget, Designated

48

Operating FundsTexas A&M UniversityForrest Whittington, PE Foster High School $2,000 Budget, Designated

Operating FundsTexas A&M UniversityCarl Williford III, PE Humble High School $2,000 Budget, Designated

Operating FundsTexas A&M UniversityVanessa Trevino, PE Klein Oak High School $2,000 Budget, Designated

Operating FundsTexas A&M UniversityBrent Vangolen, PE The Woodlands High


Operating FundsColorado School of MinesCaleb Jones, PE Magnolia High School $2,000 Budget, Designated

Operating FundsUniversity of TexasKyle Goodson, PE Magnolia High School Auxiliary, $2,000 Budget, Designated

Operating FundsTexas A&M University

Ryan O'neal, PE Mayde Creek High School

Auxiliary, $2,000 Budget, Designated Operating FundsUniversity of Texas

Kyle Pulliam, PE A&M Consolidated High School

Auxiliary, $2,000 Budget, Designated Operating FundsTexas A&M University

Joel Rasco, ChemE Oakridge High School Auxiliary, $2,000 Budget, Designated Operating FundsTexas A&M University

Jesus Miguel Salazar, PE Mayde Creek High School

Auxiliary, $2,000 Budget, Designated Operating FundsTexas A&M University

49

Scholarship Renewals for Petroleum Engineering Students:Recipient/Classification University Section Contribution How Funded?

Jeffrey Allen Texas A&M University $2,000 Budget, Designated Operating FundsSophomore

Gabriel Barragan Texas A&M University $2,000 Budget, Designated Operating FundsSophomore

Eric Calderon Texas A&M University $2,000 GCS Budget or Donated FundsSophomore

Brian Hicks Texas A&M University $2,000 GCS Budget or Donated FundsSophomore

Taylor Higgins University of Texas $2,000 GCS Budget or Donated FundsSophomore

Kory Izard Texas A&M University $2,000 Budget, Designated Operating FundsSophomore

Nathalie Johnson Texas A&M University $2,000 GCS Budget or Donated FundsSophomore

Derek Lebsack Texas A&M University $2,000 GCS Budget or Donated FundsSophomore

Kevin McClelland Texas A&M University $2,000 GCS Budget or Donated FundsSophomore

Brawner McDonald Texas A&M University $2,000 GCS Budget or Donated FundsSophomore

F. Luke McDougal Texas A&M University $2,000 GCS Budget or Donated FundsSophomore

Gerard Pechal III University of Texas $2,000 GCS Budget or Donated FundsSophomore

Terry Renfrow Texas Tech University $2,000 Budget, Designated Operating FundsSophomore

Nicholas Schilling Texas A&M University $2,000 GCS Budget or Donated FundsSophomore

Renewal Scholarships ContinuedRecipient/Classification University Section Contribution How Funded?

Ryan Shook III University of Texas $2,000 GCS Budget or Donated FundsSophomore

Jonathan Wells Texas A&M University $2,000 GCS Budget or Donated FundsSophomore

Kevin Brienen University of Texas $2,000 GCS Budget or Donated FundsJunior

Stephanie Currie Texas A&M $2,000 GCS Budget or Donated FundsJunior

Christopher Gornet University of Texas $2,000 GCS Budget or Donated FundsJunior

Joshua Mallery University of Texas $2,000 GCS Budget or Donated FundsJunior

Aprill Nelson Colorado School of Mines

$2,000 GCS Budget or Donated FundsJunior

Leigh Whittington Texas A&M $2,000 GCS Budget or Donated FundsJunior

Sara Coulthard Texas A&M $2,000 GCS Budget or Donated FundsSenior

Stefan Lattimer University of Texas $2,000 GCS Budget or Donated FundsSenior

Kimberly Sliva Texas A&M $2,000 GCS Budget or Donated FundsSenior

Andrea Songy Louisiana State University

$2,000 GCS Budget or Donated FundsSenior

Brandon Sullens Texas A&M $2,000 GCS Budget or Donated FundsSenior

Tyler Turner University of Texas $2,000 GCS Budget or Donated FundsSenior

Scholarships Renewal for Petroleum Engineering Students (continued)Recipient/Classification University Section Contribution How Funded?

Jenny Vorpahl Texas A&M $2,000 GCS Budget or Donated FundsSenior

51

Internships: The SPE-GCS offers an internship program to SPE-GCS scholarship winners, whether petroleum engineering students or not, in the petroleum industry each summer. The objective is to foster an understanding of the petroleum industry through on-the-job training. Kelly Barber, Rey Saludares, and Claude Thorp contacted numerous operating and service companies to provide them with dossiers on this year’s scholarship winners in case the companies needed summer interns.

Recipient/Major/University High School Pre-College InternshipTrevor Aston, PE, Texas A&M Oakridge High School Anadarko Petroleum

Banks Beasley, PE, Colorado School of Mines Memorial High School Eric Beckham, PE, Texas A&M Stratford High School

Nikki Buddrus, PE, Tulsa Saint Agnes Academy Chevron Steven Cottle, PE, Montana Tech Cy-Springs High School Gulf Energy Mgmt

Gregory Dykes, ChemE, Texas A&M Cinco Ranch High School Robert Glenn, PE, Texas A&M The Woodlands High School Anadarko Petroleum

Kirsten Gustafson, PE, University of Texas Cinco Ranch High School Chevron Kyle Goodson, PE, Texas A&M Magnolia High School Anadarko Petroleum

Jordan Hamilton, PE, University of Texas The Woodlands High School Anadarko PetroleumTyler Hansen, PE, Texas A&M Stephen F Austin High School Chevron

Lauren Hendrix, PE, University of Texas The Woodlands High School Anadarko PetroleumRichard Hopper, PE, University of Oklahoma Klein High School

Austin Johnson, PE, Texas A&M Lamar High School Caleb Jones, PE, University of Texas Magnolia High School Anadarko PetroleumBernadette Jurica, PE, Texas A&M Rice High School

Cody Karasek, PE, Texas A&M Lamar High School Jessica Kolesar, PE, Texas A&M Cinco Ranch High School ExxonMobil

Aditya Kunjapur, ChemE, University of Texas Stratford High School Janice Mathew, ChemE, MIT Booker T Washington High

School

Mikhail Mayzenberg, PE, University of Texas Elkins High School Matthew Metzger, PE, Colorado School of

MinesMemorial High School

52

Ryan O'neal, PE, University of Texas Mayde Creek High School Travis Phillippi, PE, Colorado School of Mines Magnolia High School Anadarko Petroleum

Kyle Pulliam, PE, Texas A&M University A&M Consolidated High School

Joel Rasco, ChemE, Texas A&M Oakridge High School Cody Robinson, PE, Texas A&M Concordia Lutheran High

School

Jesus Miguel Salazar, PE, Texas A&M Mayde Creek High School BPSydney Slimm, PE, Colorado School of Mines Oakridge High School Anadarko Petroleum

Christine Sliva, PE, Texas A&M Cy-Fair High School Anadarko PetroleumMichael Sollee, PE, Texas A&M Kingwood High School Anadarko Petroleum

Vanessa Trevino, PE, Texas A&M Klein Oak High School Anadarko PetroleumBrent Vangolen, PE, Colorado School of

MinesThe Woodlands High School Anadarko Petroleum

Forrest Whittington, PE, Texas A&M Foster High School ChevronCarl Williford III, PE, Texas A&M Humble High School

Mentorships: The SPE-GCS has a new initiative in 2006 to offer a mentorship program to its scholarship winners, whether petroleum engineering students or not. The objective is to foster communication between the scholarship winners and industry professionals. Karla Guajardo provided fliers and contacted numerous companies soliciting individuals willing to mentor the scholarship recipients.

Last Name First Name # mentees Company1 Guajardo Karla 2 OXY USA Inc.2 Henderson Chad 2 Subsea 73 Saludares Rey 2 Anadarko4 Richey Heather 2 ExxonMobil5 Rovira Amanda 2 ExxonMobil6 Gammage John 2 BP7 Nevels Heath 2 Shell8 Hansen Randy 2 Schlumberger9 Campana Jennifer 2 Devon10 Heider Mike 2 Devon11 McLaughlin John 2 Ryder Scott12 Dellosso David 2 Southwestern Energy13 Davis Aaron 2 OXY USA Inc.

53

14 Villatoro Jaime 2 Weatherford

9. Awards

List any SPE national, regional, or section awards, nominations and similar, distinguished recognition from other organizations received by section members.

Title of Award Nominee Recipient (yes or no)Anthony Lucas Gold Medal Bill McCain nominatedPublic Service Award Sidney S. Smith Sr. Yes, 10/05Public Service Award Ken Arnold nominatedDistinguished Service Award Tom Blasingame Yes, 10/05Distinguished Service Award C. Susan Howes Yes, 10/05Distinguished Service Award W. Burt Nelson Yes, 10/05Distinguished Service Award Ron Hinn nominatedDistinguished Member Joseph A. Ayoub Yes, 10/05Distinguished Member William D. McCain Yes, 10/05Distinguished Member Gene M. Narahara Yes, 10/05Distinguished Member Sidney S. Smith, Jr. Yes, 10/05Distinguished Member James Pappas nominatedDistinguished Member Robbin Jones nominatedDistinguished Member Bryant Mueller nominatedDistinguished Member Roger Hite nominatedDistinguished Member Steve McCants nominatedDistinguished Member Bill Kemp nominatedDistinguished Achievement for Petroleum Engineering Faculty Larry Piper nominatedProduction and Operations Technical Award Ahmed Abou-Sayed Yes, 10/05Management and Information Technical Award Michael Strathman nominatedFacility and Construction Technical Award Paul Jones Yes, 10/05Facility and Construction Technical Award Peter Marshall nominatedReservoir Description and Dynamics Technical Award Ganesh Thakur Yes, 10/05Reservoir Description and Dynamics Technical Award Ron Harrell nominatedHealth Safety and Environment Technical Award Terry L. Thoem Yes, 10/05Drilling Engineering Award Robert F. Mitchell Yes, 10/05

54

Young Member Outstanding Service Award Shawna Hartman nominatedYoung Member Outstanding Service Award Anjali Prasad nominatedYoung Member Outstanding Service Award Holly Camilli nominatedYoung Member Outstanding Service Award Rey Saludares nominatedYoung Member Outstanding Service Award Nadia Chalton nominatedRegional Service Award Larry Foster Yes 5/06Regional Corporate Support Award Anadarko Yes 5/06Regional Outstanding Young Member Award Holly Camilli Yes 5/06Regional Drilling and Completions Award George Medley Yes 5/06Regional Reservoir Description and Dynamics Award PK Pande Yes 5/06Regional Production and Operations Award Kevin Renfro Yes 5/06Regional Facilities and Construction Award Ken Arnold Yes 5/06Regional Management and Information Award Roger Hite Yes 5/06Section Service Award Neil Decker Yes, 5/06Section Service Award Hari Hariharan Yes, 5/06Section Service Award Hugh Kirkpatrick Yes, 5/06Section Service Award Jeanne Perdue Yes, 5/06Section Outstanding Study Group Award Permian Basin Study Group Yes, 5/06Section Outstanding Committee Award Emerging Leaders Program Yes, 5/06Engineers Week-Engineer of the Year Award James Pappas nominatedEngineers Week-Young Engineer of the Year Award -Petroleum Neil Decker Yes, 2/06

55

10. Community Outreach

List all activities sponsored by the section in which members participated that enhanced the image of the petroleum industry or the petroleum engineering profession. Include local community activities. Activities include, but are not limited to, presentations concerning the petroleum industry, energy education, charitable causes, and community action projects.

Community Services Coordinating Committee (CSCC): The SPE-GCS CSCC 2005/2006 approved expense budget was $17,950. The CSCC educational projects need more volunteerism and active participation. Some of the CSCC programs have been discussed in more detail in other sections of this report. To summarize, following is a list of programs that are currently coordinated by this committee:

- Scholarship Program (including the SPE-GCS, Houston SPE Auxiliary, SPEI Gus Archie Scholarship Budget). - Student Internship Program for Scholarship Winners - High School Petroleum Engineering Recruiting Fairs- SPE Foundation Contributions- Magic Suitcase Coordination- Science and Engineering Fair Houston (SEFH)- Communities in Schools Houston (CISH) donation and job workshop- ATCE Student tours- OTC Student Tours- SPE Student Chapter Support (with Texas A&M and Rice/University of Houston Student Chapters)- Earth Science Week and Engineering Week festivities- Adopt-a-Family Holiday Gift Program

Science and Engineering Fair, Houston (SEFH): SPE-GCS again contributed $2,500 to the SEFH to defray expenses for the fair. SPE-GCS volunteers judged entries in the Engineering, Earth & Space Sciences, and Environmental categories. SPE-GCS is a special awarding agency at the SEFH. SPE-GCS gives cash awards of $200 for oil-related exhibits. Those exhibits are recognized during the SPE-GCS Annual Scholarship and Awards Banquet. Three winners were selected this year:1st Place: (Senior Division): Sophia Mo, Bellaire Senior High School, Houston"Health Monitoring of Concrete Structures"2nd Place: (Senior Division): Elizabeth Kubota, Academy of Science & Technology, Conroe"Mining in the Deep Ocean: Phase II"3rd Place: (Senior Division): Abhik Mallick, Hightower High School, Fort Bend"Earth’s Natural Electrical Resistance and Delineation of Subsurface Objects"

56

Communities in Schools Houston (CISH): CISH is a non-profit organization dedicated to reducing the number of school dropouts (mainly in “inner-city” schools) in the Houston area. The program targets “at-risk” students who volunteer to be included in the program and pass CISH entry standards of commitment. This year’s level of SPE-GCS support included: 1) Direct financial contribution of $7,000 to CISH to defray operating expense; 2) Presentation of a jobs orientation seminar, with SPE-GCS volunteers, to over 100 students from five (5) high schools

11. Other Activities

Complete the table for any other activities sponsored by the section, such as social events or activities not mentioned elsewhere in this report.

Date Brief Description of Activity Income Expenses Profit Participants

August 26, 2005

Section Kickoff Meeting/Volunteer Leadership Meeting, Training for Study Group & Committee Leaders

$0 $200 -$200 100

Oct. 13, 2006

SPE 70th Anniversary Celebration, held at the Weiss Energy Hall at the Houston Museum of Natural Science.

Chare

$19,800 $25,700 -$5,900 335

Oct. 28-29, 2006

22st Annual Tennis Tournament $19,300 $15,550 $3750 100

April 24, 2006

GCS Annual Golf Tournament $234,000 $178,000 $56,000 890

June 9, 2006

Sporting Clays Shoot $156,650 $110,000 $46,650 700

June 24, 2006

Section Wrap-up Social $0 $0 $0 40 (est.)

12. Goals

Outline goals established at beginning of year and report progress in meeting both long- and short-term goals.The 2005/2006 Section year began with the Section kickoff meeting August 26, 2005. The incoming board of directors reviewed the outstanding success of the 2004/2005 Section year and challenged the incoming committee leadership teams to surpass last year’s success. This kickoff meeting announced the increasingly stronger financial health of the section as well as the status of membership recruiting efforts. All section leaders were given the charge of continuing to carry out the mission of the SPE while maintaining the section’s return to financial health. The Board of Directors

57

delivered another President’s Award for Section Excellence to the volunteers, as well as several individual awards to members. The volunteers were reminded of the 2004-2007 Three Year Plan that was set in motion in the previous section year and it was impressed upon everyone how important it would be to complete the objectives that were outlined in that plan. The Board also delivered a new 2005 Strategic plan that would shape all future Section objectives. This was a key deliverable identified in the 2004-2007 Three Year Plan, and the Board emphasized its importance to the Section leaders. In addition to announcing the overarching 2005 Strategic Plan, and the 2004-2007 Three Year Plan, the volunteers were also given some short-term goals to specifically strive toward during the next 12 months.

Short-Term Goals Have Fun! Disseminate Technology Increase Volunteerism

o Membership Growth Maintain and Continue to Improve Section Financial Health

o Grow Scholarship Donationso Balance Internal vs. External Spending

Embrace Technology Achieve Section Excellence Award

Long-Term Goals Improve relationship with SPEI Improve section governance Improve publicity Strategic Plan implementation

2004-07 Three-Year Plan - issues are divided into the following 15 areas:1. Strategic Planning2. Awards and Recognition3. Business Process Improvement4. Career Management5. Communications6. Continuing Education7. External Relations8. Finances and Treasury

9. Intersociety Relations10. Inter-Societal Relations11. Membership12. Programming13. Scholarships14. Social Activities15. Technology Transfer

58

The total anticipated net cost for the provisions above and beyond this year’s annual budget is approximately $50,000 per year. The added human resources required to fulfill these obligations should be in the range of 6,000 man-hours. Please see the 2004-2007 Three-Year Plan posted here for reference: http://www.spegcs.org/en/cms/?409.

Short Term Goals

As this report demonstrates, SPE-GCS delivered on each of these objectives, particularly in the area of continuing financial health. The Section finished the section year by exceeding its annual operating plan targets, ensuring future success of the section for many years to come.

Have Fun A theme throughout this Section year was to ensure that volunteers are having fun. The SPE-GCS believes that volunteers who are actually having fun, will contribute more, and will recruit more with infectious enthusiasm. This will lead to greater financial returns as well as ensure long term health of the section through the recruitment of volunteers to fill succession planning roles. The promotion of this positive atmosphere and attitude is evident in the financial results, as well as the membership recruiting results. An example of the commitment of having fun that the Board made to the membership was the 70 th Anniversary Celebration that was held at no charge to SPE members. Corporate sponsors paid for about 75 percent of the cost of the venue, the food and the band. The venue was the outstanding, recently-renovated Wiess Energy Hall – a permanent exhibit of the Houston Museum of Natural Science and a must-see for members of the energy community. The theme was “70 Years, a Legacy of Success Through: Community, Leadership, and Education,” and over 300 members and their spouses registered to attend.

Disseminate Technology The short term goal of disseminating technology falls directly in line with the mission statement of SPE. The Section was reminded at the beginning of the year, that despite the fun and camaraderie that comes with hosting events, the section must ensure that the goal of disseminating technology is accomplished. This report demonstrates every month how the SPE-GCS has accomplished its goal of technology dissemination through a diversified schedule of luncheon and dinner meetings, and symposiums.

Increase Volunteerism Increasing volunteerism is a difficult challenge, but the SPE-GCS has made significant progress in this area, while also increasing its membership. Many section study groups and committees looked outside their normal circle of colleagues when recruiting assistance for their events. This led to a new collection of volunteers participating in section events, as well as encouraged new membership. The section’s strict adherence to keeping a live succession plan for every group and committee has also forced volunteers to find previously inactive members to become involved. The succession plan has proved to be worth the effort to maintain as the section’s leaders have been transferred out of the section mid-term, leading to a need to fill roles quickly.

Continued Financial Health The financial health of the section continues to improve. The implementation of an internal audit committee composed of selected board members and securing the services of a professional audit firm to review section finances and operating procedures has helped identify several areas for section improvement. One key area concerned the SPEI conflict of interest

http://www.spegcs.org/en/cms/?409

policy. The SPE-GCS embraced the conflict of interest policy used by SPEI and requested that all section officers from the Board, Study Groups, and Committees comply. In addition, the formal report from the third party audit firm has given the Section a variety of topics to discuss for possible improvements of Section governance for years to come.

A secondary goal under the subject of financial health was to increase scholarship funding, which the section did successfully this year, increasing its number of $2000 scholarships to 64, including the 5 funded by the Auxiliary. Also, visible in the section financials is the emphasis that has been placed on ensuring that the section is investing in its own events, while also increasing its outward spend towards scholarships. Several ELP and Continuing Education events are near break-even events, but these provide significant value to the membership. This is offset by the other events that make profits that are funneled into scholarship donations.

Embrace Technology The SPE GCS endeavors to embrace technology in all of its operations. This year, the Board of Directors approved a decision to invest in business process improvement software. The Section will automate its accounting processes using software which will improve audit ability as well as expedite the process of paying bills. The embrace of technology reduces some of the menial burdens placed on section volunteers. By alleviating some of the mundane tasks such as tracking payments, volunteers will have more free time and more energy to devote to the larger objectives of the SPE. In addition to this business process improvement software, the section continues to embrace the use of digital projection systems to reduce the use of paper in all meetings. The SPE-GCS continues to innovate through its use of the Internet as a medium for running a non-profit organization in the energy industry. The website www.spegcs.org continues to grow in its use as content is actively updated on a daily basis. Finally, the technology transfer committee continues to grow with a voting member of the Board of Directors leading the team. This team is continuously looking into ways to better further the causes of SPE through the use of technology.

Long term goals:

Improve relationship with SPEI The SPE-GCS jointly operated its Digital Energy Conference this year with SPEI conference management staff from Richardson. This collaboration worked to strengthen the relationship between the Section and Headquarters. The Section has learned more about the benefits of working with SPEI and intends to pursue future opportunities to collaborate. In addition, Section officers hosted meetings with both Mark Rubin and Stephen Graham. SPEI President Eve Sprunt visited the section for a joint meeting and celebration of the section’s 70th birthday. Improve section governance The SPE-GCS has embraced a new Financial Guidelines document, installed a formal internal audit committee, and acquired the services of an outside professional audit firm to review section practices. In addition, the Section has implemented a formal conflict of interest policy, and continues to be stringent in its use of a formal succession planning process. The succession planning process has been tested several times already this year, particularly when the Board’s Vice Chair was transferred out of the section with his job. Proper succession planning ensured that replacements for that role, as well as the others affected by the departure were quickly filled. Finally, the Section has successfully compiled its 2005 Strategic plan, and posted it along with the 2004-2007 Three-year Plan for all members to access through its website under a new heading entitled Governance.

http://www.spegcs.org/

Improve publicity The SPE-GCS continues to define how best to publicize section activities. The Section newsletter, both hard and electronic copy, and the section website, www.spegcs.org continue to be the main mediums for publicity. Currently the Section is debating the implementation of a specific Publicity Chair, or to continue with the publicity effort split among the Communications Chair and Programs Chair. The section continues to innovate with the judicious use of e-mail communication. The Board keeps close tabs on this medium of publicity and regularly debates its use at Board meetings. SPE-GCS is leading the way in developing best practices for communication of non-profit energy society events via electronic methods.

Strategic Plan implementation An action item delineated in the 2004-2007 Three-year plan is to implement a strategic plan. This year, the Board adopted the 2005 Strategic Plan on October 10, 2005 and presented its official 2005 Strategic Plan to the membership. The 2005 Strategic Plan is posted here: http://www.spegcs.org/en/cms/?409 , and it is divided into the following sections:

A. Forums for professional competenceB. Social InteractionC. K-12 OutreachD. University ProgramsE. ScholarshipsF. Enhancement of Public ImageG. Volunteerism:

H. MembershipI. AttendanceJ. Technology DisseminationK. Preparation for the Big Crew ChangeL. Financial HealthM. GovernanceN. Program Diversity

This 2005 Strategic Plan will drive all Section activities and will directly impact each Section year’s short term plans and the development of the next Three-year plan for 2008-2010. Please see attached 2005 Strategic Plan for more information.

13. Constraints

List unusual constraints of the section in (1) membership development, (2) technical/educational activities, (3) scholarship activities, and/or (4) financial activities.

1) Membership Development continued as an area of focus in 2005/2006. This constraint was primarily addressed by the development and active use of the 2004 SPE-GCS Succession Planning Process to ensure the viability of each SPE-GCS Committee and Study Group by identifying and developing candidates for leadership positions. The scope is to develop succession plans for each SPE-GCS key position including members of the Board of Directors and study group/committee positions. The SPE-GCS is happy to share these lessons learned with any section and designed the system with this in mind. It is hoped the Society will find an effective use for the program and look forward to hearing of future successful deployments within SPEI.(posted here: http://www.spegcs.org/en/committees/display.asp?committeeid=2)


2) There were no unusual constraints in technical/education activities during this section year. The section continued to be innovative in developing new programming for the study groups with the oversight of the Program Coordination Council, and the Continuing Education Committee enjoyed strong attendance at its courses throughout the year. The only constraint in technical/education activities during this section year noted was the challenge that the Technology Transfer Committee faced in committee organizational activities. With the current environment of robust product prices, the committee has noted that across the industry workloads have increased dramatically this past year. Companies are accomplishing much more with less people and individually carrying higher workloads while traveling extensively. As a committee, they worked and met in smaller groups while maintaining a good number of interested committee members. A growth in reliance on digital and remote communications was seen for interaction during work processes. The need to capture the quality educational topics and deliver them to desktops is growing.

3) There were no unusual constraints in scholarship activities during this section year. Approximately 89 percent of the scholarship winners who are entering freshmen have chosen to major in petroleum engineering. Scholarship renewal requires that a student be majoring in petroleum engineering and maintain a 3.0 GPA. It is expected that most of the students will continue to receive section scholarships in the program for their entire four years of eligibility. There were 10 corporate sponsors of SPE-GCS scholarships ($2000 each except for Challenger Minerals at $250), 5 corporate employers of scholarship winners in pre-college internships impacting a total of 16 graduating high school students of the 34 eligible with summer jobs, and 14 corporate sponsors of the Awards Banquet ($500 each except for BJ Services at $1000).

4) With regard to financial activities, the financial responsibility plan for 2005/2006 included encouraging events to return a 15 percent net income contribution to the Section. Additionally, a standardization of meeting fees and charges that was implemented in 2004/2005 was relaxed to allow for exceptions on a case by case basis. Lastly, the Board evaluated each event, approving committees to proceed with planning and execution of an event only after meeting the minimum financial criteria. All of these actions were taken to help reach the Section target of having liquid cash reserves equal to 40 percent of the annual operating expenses. The results of this aggressive campaign reflect a steady strengthening of the financial health of the Section.

METRIC 2003-2004 Actual

2004-2005 Actual

2005-2006 Budget

2005 – 2006 Actual (to April 06)

NET INCOME $274,011 $123,269 $38,463 $254,530

TOTAL YEAREND LIQUID ASSETS

$357,590 $ 718,372 $756,835 $991,479

While liquid assets vary considerably month to month as revenue and expenses get booked, the Section’s average over the August through July fiscal year has grown considerably. The average for the 2002/2003 year was $218,803. This increased to $358,548 in 2003/2004, and to $611,079 for 2004/2005. This year, 2005/2006, the budgeted average should be $737,603. Currently, the average is running ahead of forecast.

The section has continued to deliver a significant number of engineering scholarships each year. The total amount since the inception of this program exceeds one million dollars. For the 2005/2006 section year, the planned Scholarship spend is $91,100, 70.3 percent of available income.

While improving its financial reserves, the Section has also been moving to clarify and document its procedures in compliance with the spirit of the Sarbanes-Oxley Act. The Board has approved two important documents – Financial Guidelines and Authorities covering the budgeting, financial operations and investment processes, and an Investment Policy Statement providing specific guidelines for investing Section funds. Detailed procedures of the financial operations process were also covered at the Section’s Annual Kick-off Meeting in August 2005. Each of these documents is available on line at www.spegcs.org . In a new initiative, the SPE-GCS Board formed an audit committee which is charged with overseeing a review of Section financial performance. The committee was given the following objectives by the Board of Directors: (1) create and implement a Conflict of Interest (COI) Policy, (2) review potential COI with recommendations for solutions, (3) draft a Whistle Blower Policy (posted on the SPE-GCS web site), (4) tender and evaluate bids from accounting firms to review the SPE-GCS books and accounting procedures, (5) make recommendations to the Board of Directors based on the results of the review, and (6) propose changes to the internal controls and accounting procedures in order to provide adequate segregation of accounting duties. There were three potential COI's reviewed by the committee with reconciling actions put into place to avoid the COI. Formal guidelines dealing with potential COI's have been drafted and reviewed by the SPE-GCS Executive Committee. These guidelines will be implemented in Year 2006/2007. Year 2005/2006 was the first review of the SPE-GCS books in over 10 years. The firm of McDonald, Fox & Lund, based on their review, "are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with accounting principles generally accepted in the United States of America." Members of the audit committee are Directors Russ Neuschaefer (Schlumberger), Nick Piskurich (BP), and Hiep Vu (Shell).

The Board has also formed a Financial Board of Advisors to provide advice on finance and audit questions. These volunteers are practicing experts in the fields of finance, investments and audits. In summary, the Section’s financial health is currently sound.


14. The President’s Award for Section Excellence is given to up to six outstanding sections each year based on the activities of the sections identified in the Annual Report. Why should your section be considered for the President’s Award for Section Excellence? (If this question is answered, this annual report will serve as an application for the award.) See award rules, attached. If a qualification category does not apply to your section, you may attach an additional page that provides details about why that category should not be used in considering your section for the award. When detailing the reasons why your section should be selected for this award, emphasize those programs, events or circumstances that were new or changed during this past year.

The Gulf Coast Section proudly displays its previous years’ President’s Awards for Section Excellence to remind the leadership of prior excellent section performance and to challenge the section to exceed previous years’ successes. Again this year, the SPE-GCS is proud to present the section annual report to be considered for recognition and to provide the lessons learned to other Sections who may face similar challenges. This past year, significant milestones were achieved which demonstrate the SPE-GCS commitment to SPE excellence.

The 2005/2006 section year marks the 70th anniversary of The Gulf Coast Section of SPE. This milestone was celebrated with the community and SPE leaders at the city of Houston’s Museum of Natural Science. It was a fitting event to celebrate past successes and fuel the passion for continued volunteerism and activism in the years to come. This year, the Section successfully implemented a Strategic Plan that will shape its long term direction. The Strategic Plan successfully furthers the broader Mission of SPEI and steers the direction of the shorter-term objectives of the Three-Year Plan, formerly known as the Section’s “Long Range Plan.” In addition to the adoption of our Section’s Strategic Plan, the section successfully laid out its objectives and intentions for the immediate directives of the 2005/2006 section year. The Section leadership is pleased to report that we have met our short term objectives, while continuing to improve the section with the direction of the Strategic Plan. In addition, these planning initiatives have better positioned the Gulf Coast Section to accomplish the Mission of SPEI for many years to come.

The Gulf Coast Section is particularly pleased to report improvements in section volunteerism. Through a combination of encouragement, recruiting and succession planning, the Gulf Coast Section is getting more members involved, and improving the quality of its section leadership. We continue to successfully engage volunteers from all demographics, and are pleased to see an overall increase in volunteerism and activism. Succession planning at every level of volunteerism ensures steady leadership despite the volatility that comes with this industry. In addition, future leaders are regularly cultivated and promoted into opportunities to share their talents in helping SPEI achieve its Mission.

Continuing a responsible tradition, the Gulf Coast Section has further improved its Section governance and financial health. The section has implemented an internal audit committee formed by select members of the Board of Directors to improve the processes of the Section. One remit of this committee was to engage an outside financial auditing firm to review section financial processes. This has given the section valuable insight into ways in which we may improve the handling of section funds, as well as recommendations on how to deliver higher returns and ultimately invest more into the Society, the industry, and the community. The Section has also taken a bold

step towards digitizing all section financial operations through the implementation of business process improvement software. The activity level in this section produces a continuous stream of financial transactions that often depend heavily on volunteer time. The Board of Directors voted to implement this technology in an attempt to free volunteer time, improve reporting accuracy, as well as audit ability and transparency. This is expected to further improve the Section’s financial health as well as free volunteers to spend more time on Section programming and outreach.

The Gulf Coast Section believes that it sets a positive example for other Sections around the world. The Section positively balances its donations of time and money to both internal and external causes. The Section’s programs disseminate technology with an unrivaled array of topics and events while membership initiatives successfully drive membership growth, ensuring engagement with all demographics while also increasing volunteerism. The future of our industry is bolstered by the Section’s commitment to funding college scholarships and student internships. And, finally, the Gulf Coast Section of SPE is a continuous friend to the community through donation of volunteer time and funding of community initiatives.

In summary, please consider the Gulf Coast Section for the President’s Award for Section Excellence. Contained within this submittal, you will find outstanding progress delivered in 2005/2006, but also the farsighted thinking of the GCS Board as it looks for new ways to ensure the continued success of the Society. In this section year, the SPE-GCS has excelled in meeting its short term goals and making progress on its long term goals. The Section continued to innovate in creating new initiatives, and has strengthened its ability to deliver a wide variety of offerings to its members. The leadership looks forward to continued section success. It is hoped that these important and exciting contributions made during 2005/2006 will enhance the success of the Society as a whole.

Date May 31, 2006 ______________________________________

J. Bryant MuellerSection ChairpersonEmail: [email protected]

ATTACHMENTS: Gulf Coast Section Balance Sheet, March 31, 2006Gulf Coast Section Newsletter, May 2006

REFERENCES:Board meeting minutes: http://www.spegcs.org/en/cms/?104Budget Detail: http://www.spegcs.org/en/committees/display.asp?committeeid=26Financial Guidelines and Authorities Gulf Coast Section, Society of Petroleum Engineers 2005-2006 Budget Year: http://www.spegcs.org/attachments/committees/2/Financial%20Guidelines%20and%20Authorities%20final_26aug05.docCharter of Financial Board of Advisors: http://www.spegcs.org/en/cms/?409Investment Policy Statement: http://www.spegcs.org/attachments/committees/26/Investment%20Policy%20Statement%20Final%204-21-05.docPolicy Summary by Subject: http://www.spegcs.org/attachments/committees/2/SPEGCS_Policy_Summary_By_Subject_Mar_05.pdfSPE-GCS 2004 – 2007 Three Year Plan: Http://www.spegcs.org/en/cms/?4092005 Strategic Plan: http://www.spegcs.org/attachments/contentmanagers/409/SPE%202005%2006%2027%20Strat%20Plan%20draft%20v9.pdfSuccession Planning Program: http://www.spegcs.org/attachments/committees/2/2004_SPE-GCS_Succession_Planning.pdf2006 Emerging Leaders Program Application: http://www.spegcs.org/attachments/committees/25/2006%20ELP%20Application.doc2006 Scholarship application: http://www.spegcs.org/en/cms/?82Awards Banquet Program: http://www.spegcs.org/attachments/calendarevents/953/2006%20Scholarship%20and%20Awards%20Banquet%20Program%20Booklet.docSlide Show from Awards Banquet: http://www.spegcs.org/en/art/?426Monthly e-newsletters: http://www.spegcs.org/index.asp

Submit report to:SPE SectionsSociety of Petroleum Engineers, Inc.Mailing address: P.O. Box 833836, Richardson, TX 75083-3836, U.S.A.Delivery address: 222 Palisades Creek Drive, Richardson, TX 75080, U.S.A.Facsimile: +1.972.952.9435 Email: [email protected]

mailto:[email protected]

http://www.spegcs.org/en/art/?426

http://www.spegcs.org/attachments/committees/26/Investment%20Policy%20Statement%20Final%204-21-05.doc

http://www.spegcs.org/attachments/committees/26/Investment%20Policy%20Statement%20Final%204-21-05.doc

Attachment A: Gulf Coast Section Balance Sheet, March 31, 2006

ASSETSCurrent Assets Checking/Savings Paine Webber Money Mkt Account 391,478.71 Total Checking/Savings 391,478.71 Other Current Assets Eaton Vance Ltd Duration Income Fund 600,000.00Total Current Assets 991,478.71TOTAL ASSETS 991,478.71

LIABILITIES & EQUITYLiabilitiesOther Current Liabilities Income Rec'd Newsletter 2006-07 160,825.00 Total Other Current Liabilities 160,825.00Total Current Liabilities 160,825.00Total Liabilities 160,825.00Equity Retained Earnings 576,123.67 Net Income 254,530.04Total Equity 830,653.71TOTAL LIABILITIES & EQUITY 991,478.71

INCOME & EXPENSES - August 1, 2005 to April 30, 2006Income 890,592.09Expenses 636,062.05NET INCOME YTD 254,530.04

PROJECTED NET INCOME THROUGH July 31, 2006 * 109,660.00* (Reflects large expenditure in May for Golf, income andexpense for Sporting Clays Tournament in May/June)

SPE Gulf Coast Section Balance Sheet April 30, 2006

society of petroleum engineers (spe), inc

Documents