the pioga press - august 2015
DESCRIPTION
The monthly journal of the Pennsylvania Independent Oil & Gas Association (PIOGA).TRANSCRIPT
August 2015 • Issue 64
The
PIOGA pressThe monthly newsletter of the Pennsylvania Independent Oil & Gas Association
(Continues on page 30)
Don’t let the gray background fool you—it turned out to be abeautiful day for golf and other festivities at PIOGA’s PigRoast, Equipment Show and Technical Seminar late lastmonth. For a recap, turn to page 8.
®
Water management facilities in Pennsylvania play anintegral role in allowing for the continued economicand environmentally sound operation of our local oil
and gas industry. In the last year, several water treatment compa-nies have closed or reduced services due to a combination of reg-ulatory changes and slowing industry activity. This articleexplores what will be required to maintain viable water manage-ment services for use by both the conventional and unconven-tional industries—predictable regulations, reasonable costs andbroad support of the innovations that will allow the industry to
Sustaining water management solutions for oil and gas in Pennsylvaniacontinue to thrive. Pennsylvania jobs are at stake, as well as thevery viability of water treatment facilities and the customers theyserve.
Regulatory predictabilityBusinesses expect to be regulated, but deserve clarity on what
the rules are and how they will be implemented; the water man-agement industry is no different. Over the last 10 years, a signifi-cant number of regulatory changes have been implemented inPennsylvania—including the well-publicized Chapter 95, cover-ing wastewater treatment requirements, and Chapter 78, regulat-ing oil and gas wells—that have created new obligations andassociated capital and operating costs for the industry.
However, there have also been more nuanced regulatorychanges that can present significant challenges, and they alsodeserve the attention of the broader industry, lawmakers andother stakeholders. One example: The federal water dischargepermitting program—the National Pollutant DischargeElimination System, or NPDES—has not included a categorythat directly applies to the type of fluids from oil and gas explo-ration and production operations. As a result, the state is left toassign a category. In Pennsylvania, the oil and gas water manage-ment industry is subject to requirements that otherwise apply toindustries that treat metals or other wastes instead of oil and gas,resulting in water testing and reporting requirements that are farmore extensive, and not necessarily applicable, to the oil and gasindustry.
Reasonable costsA successful water management company must make capital
equipment investments, secure land leases, incur operatingexpenses, and maintain a highly qualified staff to design andoperate its facilities. The growing number of regulations men-tioned above has imposed significant new reporting and record-
keeping requirements that are beingabsorbed into the operating costs of thewater management industry. One veryrecent requirement for landfills thathave long accepted solid residual wastefrom oil and gas water treatment opera-tions could prove to be one of the mostsignificant new costs for the industry ina decade—the TENORM (technologi-cally enhanced naturally radioactivematerials) disposal guidelines. Thesenew rules were announced on Dec em -
Saying no to Chapter 78 revisions . . . . . . . . . 5Mine water legislation advances. . . . . . . . . . . 5Pipeline task force holds first meeting . . . . . . 6Development slows on state lands . . . . . . . . . 6McGinty leaves for Senate run . . . . . . . . . . . . 6PIOGA Pig Roast recap . . . . . . . . . . . . . . . . . 8Thanks to our sponsors . . . . . . . . . . . . . . . . . 9Next on PIOGA’s calendar . . . . . . . . . . . . . . . 9Leases held by gas storage . . . . . . . . . . . . . 10Managing your PIOGA account . . . . . . . . . . 13Reserve your trade show exhibit space . . . . 14Evolving interpretation of the ERA . . . . . . . . 17
Technical rescue squads. . . . . . . . . . . . . . . . 20Leased interests in title disputes . . . . . . . . . 22JA’s Careers in Energy program. . . . . . . . . . 24Catching up with the outreach team. . . . . . . 26PIOGA Member News . . . . . . . . . . . . . . . . . 28Member Profile guidelines . . . . . . . . . . . . . . 28New members. . . . . . . . . . . . . . . . . . . . . . . . 29Oil & Gas Trends. . . . . . . . . . . . . . . . . . . . . . 32July Spud Report . . . . . . . . . . . . . . . . . . . . . 34Calendar of Events . . . . . . . . . . . . . . . . . . . . 35PIOGA contacts . . . . . . . . . . . . . . . . . . . . . . 35
Page 2 The PIOGA Press
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February 2014 Page 5August 2015 Page 5
DEP’s conventional advisory panel to reject Chapter 78 revisions
The voting members of the Department of EnvironmentalProtection’s Conventional Oil and Gas AdvisoryCommittee (COGAC) have told the department they do
not support the proposed final revisions to Chapter 78 regula-tions governing oil and gas surface operations.
In a letter sent last month to DEP Deputy Secretary ScottPerry, COGAC’s five voting members wrote that they will notsupport approval of the rules “regardless of revisions that DEPmay or may not make before that submission.” The committeemembers indicated they “are in full agreement that the vastmajority of the proposed changes are unnecessary and inappro-priate, and the process for promulgating the rule for conventionaloil and gas wells is fundamentally flawed and cannot be cured.”
The panel highlighted two major reasons for its opposition,both of which were among the flaws in the proposed regulationshighlighted in PIOGA’s formal comments (June PIOGA Press,page 1).
First, DEP did not comply with the Regulatory Review Act,including demonstrating whether the department considered lesscostly regulatory alternatives for small businesses or that there isa compelling need for the proposed revisions. Second, DEP didnot properly comply with a 2014 mandate by the GeneralAssembly to develop rules separately for the conventional indus-try, and the department should start the Chapter 78 rulemakingprocess from scratch.
The committee meets next on August 27. Any input the mem-bers provide is strictly advisory, and DEP Secretary JohnQuigley appeared to brush off the group’s opposition. In a state-ment reported by the Pittsburgh Post-Gazette, Quigley said,
“COGAC’s opposition will not hinder the progress of the finalrule, and I hope when they meet in August that they are preparedto engage with us as we finalize the rule.”
The letter can be found at www.irrc.state.pa.us/docs/3042/RELATED/3042%2007-07-15%20COGAC.pdf. ■
Acid mine water legislationcontinues to advance
ASenate-passed bill encouraging the oil and gas industryto use acid mine water for hydraulic fracturing is near tofinal approval in the House of Representatives too.
Senate Bill 875, which limits potential liabilities for producerswho would use mine water in the drilling process, receivedHouse committee approval in late June (July PIOGA Press, page21).
The bill went before the full House on July 22, where it wasamended on a 175-2 vote to clarify that treated mine water andmine drainage are not considered residual waste or solid wasteunder the legislation. The legislation was then re-referred to theAppropriations committee.
SB 875 does not change any environmental safeguardsdesigned to protect public health, and existing water treatmentstandards ensure that the water is safely treated before it is trans-ported or used in any drilling process, emphasizes the bill’ssponsor, Senator Camera Bartolotta (R-Greene). A similar billwas close to final General Assembly passage last year beforetime ran out on the session. ■
Page 6 The PIOGA Press
The governor’s Pipeline Infrastructure Task Force convenedin Harrisburg for its inaugural meeting on July 22 to getan overview of how Department of Environmental
Protection Secretary John Quigley anticipates the group willoperate over the next four months as the group drafts a paperdetailing a set of recommendations and best practices for thebuildout of as many as 30,000 miles of natural gas gathering,midstream and transmission lines over the next 20 years. Thecommittee includes 48 members and an additional 110 partici-pants in 12 working groups that will address topics such as envi-ronmental protection, public participating, siting and routing,workforce and economic development, and pipeline safety andintegrity.
“We are in the midst of a wave of energy development that isunlike any other in the state’s history,” Quigley said in hisremarks to the group. “The Marcellus Shale and shale gasresources generally—including the upcoming Utica play—pres-ents an immense economic opportunity for the Commonwealth.Governor Wolf wants this industry to succeed and recognizesthat the infrastructure challenge is a major one, and we need towork together to find the win-win opportunities to connect thesewells to markets.”
The DEP chief provided a timeline that has the group finish-ing a first draft in November, with the final product delivered tothe governor next February.
According to a presentation to the group, the purpose andgoals of the task force are to define a series of best practices andrecommendations to:
• Plan, site and route pipelines in ways that avoid or reduceenvironmental and community impacts.
• Amplify and engage in meaningful public participation.• Maximize opportunities for predictable and efficient permit-
ting.
DCNR reports less gas activityon leased state lands
Reflecting market conditions, natural gas drilling anddevelopment activities slowed significantly in 2014 onleased state forest lands. A report released last month by
the Department of Conservation and Natural Resources shows 47new wells were approved in state forests in 2014, down from 79in 2013. Eight new infrastructure well pads (encompassing 32acres) were built in 2014, compared with 19 (73 acres) the previ-ous year.
In a report presented to DCNR’s Natural Gas AdvisoryCommittee, the department indicated that through the end of2014, a total of 1,020 wells were approved on state forestland,with 608 of those drilled.
Overall, four miles of new road were constructed in 2013 inthe core gas districts. In 2014, less than one mile of new roadwas constructed, bringing the total miles of new road to 36 since2007. A total of 49 acres were converted for pipeline rights ofway in the core gas districts in 2013, compared against 66 acresin 2014. Since 2007, 661 acres have been converted to pipelineROW in these districts. Altogether, 1,674 acres of state forestlandhave been converted for all types of development activities.
DCNR Secretary Cindy Dunn attributed the pullback in partto a migration of some producers to southwest Pennsylvaniafrom northern and central areas, as well as to the sharp decline inmarket prices.
“There has been less activity recently because we have seenthe gas companies direct their activities toward the southwesternpart of the state in search of the wet gas,” she told StateImpactduring the quarterly meeting of DCNR’s gas advisory panel.“However, the companies still have leases there and can stilldevelop them.” ■
Pipeline task force starts its work on report to governor• Employ construction methods that reduce environmental and
community impact.• Ensure pipeline safety and integrity during operation of the
pipeline.Concerns have been expressed that “best practices” and “rec-
ommendations” could easily become regulations, even thoughofficials insist that is not the intent. Several PIOGA members areparticipating in the working groups, and the association willwork to ensure that issues of concern to the membership areraised as part of the process.
Copies of presentations from the meeting and other informa-tion about the task force are available on DEP’s website(www.depweb.state.pa.us) by clicking the Pipeline InfrastructureTask Force icon. ■
McGinty leaves administration for U.S.Senate run, replaced by Mary Isenhour
Governor Tom Wolf’s chief of staff, former Department ofEnvironmental Protection Secretary Katie McGinty, has
resigned in a bid to challenge Pat Toomey for his U.S. Senateseat next year. Replacing McGinty is Mary Isenhour, who hasserved as Wolf’s director for legislative affairs, the governor’schief lobbyist.
McGinty served as DEP chief in the Rendell Administrationand was one of several Democratic candidates for governor in2014. She will attempt to unseat first-term senator Toomey inwhat is expected to be one of the most competitive Senateraces in 2016.
As state budget negotiations drag on between the adminis-tration and the General Assembly, Isenhour has been character-ized by legislative leaders as easier to work with than McGinty.Isenhour began her career as a staff member for the KansasHouse of Representative in the early 1990s. She held a varietyof positions nationally and in Pennsylvania for the DemocraticParty and as state director for Hillary Clinton’s presidential cam-paign prior to joining the Wolf administration.
February 2014 Page 7August 2015 Page 7
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Page 8 The PIOGA Press
The fifth edition of PIOGA’s popu-lar summertime event—the PigRoast, Equipment Show and
Technical Seminar—was held on July 28and 29 at beautiful Seven SpringsMountain Resort and was attended byover 300 oil and gas representativesdespite the current slowdown of theindustry. Many attendees commentedthat it was a great event to connect withcolleagues and discuss current marketconditions and future projects.
The Product & Services Showcaseprovided a platform for service compa-nies and supplier members to highlighttheir products and services, and theequipment show had approximately 15companies show off their latest andgreatest trucks and large equipmentpieces.
On day two of the event, the technicalseminar, themed “Hard Times – UniqueSolutions,” provided an opportunity forparticipants to hear from leading techni-cal experts on critical topics that areimpacting oil and gas operations.
PIOGA’s summer event was a greatcombination of networking and socialactivities with the opportunity for educa-tion and business development. PIOGAthanks all that supported and attendedthis year’s event. ■
PIOGA’s Pig Roast, Equipment Show and Technical Seminar recap
Above: Some final instructions before the morethan 80 participants set out on the SevenSprings sporting clays course. Right: Fun in thephoto booth.
Right: Setting up under blue skies forthe equipment show. Below left: Dr.Neeraj Gupta from Battelle discussesthe analysis of brine disposal in theAppalachian Basin during thetechnical seminar. Below right: A fewof the technical seminar attendees.
February 2014 Page 9August 2015 Page 9
Divor Diggers Golf OutingIt may not be too late to reserve a foursome for the 18th
Annual Divot Diggers Golf Outing. The event, an annual project ofPIOGA’s Environmental Committee, takes place Wednesday,August 26, at Tam O’Shanter Golf Course in Hermitage.
Typically, the event is quick to fill up. However, if you would liketo check whether there are still openings available, contactDebbie Oyler as soon as possible at 724-933-7306 ext. 22 [email protected].
A key to the event’s success in supporting PIOGA’s work inthe environmental arena is that all participating foursomes musteither sign on as an event sponsor or hole sponsor. Registrationincludes 18 holes of golf, a cart, lunch at the turn, steak fry aftergolf and lots of great prizes. We hope to see you there!
Pig Roast SponsorsBig BoarEnergy NationHuntington InsuranceHuntley & HuntleyKriebel GroupSwineAEREONARM GroupClean/Air EngineeringEMKEY Energy, LLCEnergy Corporation ofAmerica (ECA)Fluid Recovery Services, LLCGolder Associates, Inc.GZA Geoenvironmental, Inc.ITI Trailers and Truck BodiesNew Pig Energy CorpRNDT, Inc.ShaleDirectories.comSteptoe & Johnson, PLLCT&F ExplorationUniversal Well Services
Golf SponsorsHoleEmKey Energy, LLCErgon Oil Purchasing, Inc.Hunting TitanInsight Environmental Inc.Leech Tishman Fuscaldo & Lampl, LLCPatriot Exploration Corp.
Reed, Wertz and Roadman, Inc.WellkeeperTeeAlmetek IndustriesBillman Geologic Consultants, Inc.CyberGuard by MEIGeo-Com, LLCHunt, Guillot & Associates, LLCKeystone Containment ContractorsMurphy Tractor & EquipmentNavigator Wireline Service, Inc.RNDT, Inc.Universal Well Services, Inc.USA CompressionWoolpertZeeco, Inc.
Clay Shoot SponsorsEvent sponsorOil & Gas Safety SupplyTriggerHill International TrucksShotCardno, Inc.Equipment & Controls, Inc.Ergon Oil Purchasing, Inc.Fairway LaboratoriesGeo-Com, LLCNavigator Wireline Service, Inc.PetroChoiceToy Pipeline Contractors, Inc.Universal Well Services, Inc.
Technical Seminar SponsorsLunchKriebel Group, Inc.Energy NationBreakT&F Exploration, LP
Annual membership meetingPIOGA’s Annual Membership Meeting is scheduled for the
afternoon of September 29 at the Ramada Greensburg Hoteland Conference Center in Greensburg. The event will includereports from PIOGA staff and committees on activities from thepast year and the outlook for the coming year, as well as othervery important association business. A mixer will follow. There willbe no charge to participate. Watch for additional information andplease plan to attend.
Coming up:
Thanksto oursponsorsWe truly appreciate your support!
Page 10 The PIOGA Press
Recent developments inPennsylvania concerningleases held by gas storage
It is common for oil and gas leases in Pennsylvania to allowfor the storage of natural gas. Pennsylvania case law regard-ing dual-purpose oil and gas leases, which grant both produc-
tion rights and storage rights, is complex and provides very fact-specific holdings which may not be applicable to every dual-pur-pose lease. However, in this past year, two favorable decisionshave been issued providing a better understanding of the statusof such a lease that is held by storage operations alone.
Conflict can arise when the primary term of a lease ends andno production has taken place, but the oil and gas lease is main-tained as part of a gas storage field. Based on the terms of the oiland gas lease, a landowner may receive less compensation forgas storage rentals than for oil and gas production royalties,which has led to disputes between the landowner and the opera-tor. Depending on the terms of the lease, it may be possible tohold such a lease indefinitely through the storage of gas and thepayment of rentals. Since 2004, there has been some uncertaintyregarding the lease terms necessary for a producer to maintain allof its rights under a lease through storage operations once theprimary term for production terminates. At least one federalcourt applying Pennsylvania law has held that storage rentalswill not always preserve production rights into the secondaryterm of a lease.
Much of the controversy concerning gas storage leases is theresult of a 2004 federal court case that held that storage opera-tions do not automatically extend the production rights of an oiland gas lease. The case of Jacobs v. CNG TransmissionCorporation, 332 F. Supp. 759 (2004), before the U. S. DistrictCourt for the Western District of Pennsylvania, examined a dual-purpose lease that for many decades was used only for gas stor-age. The lease at issue was amended in 1956 and permitted theproducer to use the lease for both oil and gas production and thestorage of gas. The defendant began storing non-native gas onthe property during the primary term of the lease and continuedto do so for decades until the time of the lawsuit. However, nooil and gas wells were drilled on the property during or after theprimary term of the lease. The plaintiffs in the case asserted thatby failing to use the oil and gas lease for production, the defen-dant lost these rights and the lease converted to a storage-onlylease.
The plaintiffs’ first argument in Jacobs was that the obliga-tions and rights under the oil and gas lease were severable, oressentially contained two transactions that should be treatedindependently. The Jacobs court rejected this argument and heldthat the consideration to the lessor was not distinct between thetwo purposes of the lease, and the lease as whole revealed anintent for one complete contract. However, the court ultimatelyfound in favor of the plaintiffs on other grounds. The court heldthat the producer was under an implied duty to develop the leasefollowing the primary term, and its long-term failure to complywith such a duty to produce resulted in the surrender of its pro-duction rights. The court also evaluated the lease terms andfound that while the lease protected storage rights by paymentsduring a gap in production, there was no similar preservation of
production rights in the storage provisions.Additionally, the court examined the storagerental clause and found that it expresslyapplied to hold “the sands, strata and hori-zons where gas may be stored.” This wasnot indicative of a preservation of all strataunder the lease. Based on these terms, thecourt held that the production rights werenot compensated for in the gas storagerental fees, and therefore the lease wasabandoned as to oil and gas production.
Subsequent cases involvinggas storage have taken a differ-ent approach than the Jacobscourt. A similar issue wasaddressed in the case of Penneco Pipeline Corporation v.Dominion Transmission, Inc., 2007 U. S. Dist. LEXIS 46621(2007), also before the U. S. District Court for the WesternDistrict of Pennsylvania. This suit was brought by plaintiffsholding top leases over land in storage fields in Indiana,Armstrong and Westmoreland counties. In the Penneco case, thecourt looked first to severability of the production and the stor-age rights under the leases owned by the defendant and held thatthe rights were not divisible based on the terms of the leases,similar to the decision in Jacobs. However, the Penneco courtheld that the language of the defendant’s leases precluded anybreach of an implied covenant to produce oil and gas. Under theleases at issue, the parties “agreed that delay rentals would bepaid until a well yielding royalties was drilled on the leasedpremises or until storage rentals became due and payable, andthe consideration and rentals paid and to be paid constituted ade-quate consideration for the right to drill or not drill.” Further, theleases stated, “storage rental fees or well storage fees are to bemade in lieu of and not in addition to royalties, delay rentals orother sums otherwise due.” The court held that these provisionsallowed the defendant to make storage rental payments to main-tain not only storage rights, but the entire leasehold. Therefore,as long as the lessee paid the appropriate rentals under the leasefor gas storage, the production rights could be preserved. Finally,the plaintiffs argued that an abandonment of the productionrights occurred due to the absence of any oil and gas productionover the course of decades. Nonetheless, the Penneco court heldthat mere non-use was not sufficient to show an intentional aban-donment of the production rights.
More recently, the Superior Court of Pennsylvania issued anon-precedential decision involving gas storage in the case ofWarren v. Equitable Gas Company, Case No. 697 WDA 2014(2015). This case involved a dual-purpose lease in GreeneCounty, and the trial court found in favor of a defendant that washolding a lease for gas storage only. The court affirmed the hold-ing of the trial court, finding that the lease in question was notseverable between oil and gas production and storage rights, andthe terms of the lease provided for full compensation for storageand production operations. In Warren, the plaintiffs also broughta claim that the oil and gas lease was unconscionable and assert-ed that the landowner was not sophisticated in oil and gas leasesand did not intend for a lease to be held by storage only.However, the court concluded that there was insufficient evi-dence to support such claim and there was no proof that the com-pensation was inadequate or less than what the parties intended.
Joshua F. Hall,Esq.
Author:
February 2014 Page 11August 2015 Page 11
The issue of gas storage was addressed most recently in thefederal case of Mason v. Range Resources – Appalachia, LLC,2015 U.S. Dist. LEXIS 97471 (2015), which evaluated a tract inWashington County covered by a 1961 oil and gas lease that wasutilized as part of a protective zone for a storage field, which isan area that acts as a buffer zone around a storage field. Theowners of the property entered into a top lease that expired, andthen sought to re-lease the production rights to several potentiallessees, but were declined due to the existence of 1961 lease.The plaintiffs presented several arguments, including the adequa-cy of the consideration for the storage rentals and an ambiguityof the lease terms as to whether rentals were delay rentals orstorage rentals. However, the court held that the lease terms wereclear in that the lessee could hold the leasehold, including pro-duction rights, as part of a storage zone if rentals were paid tothe lessors. The lease expressly allowed the lessee to use theproperty for production, gas storage or as a protective zonearound a storage field.
While the holding of the Jacobs case has not been completelyreversed, the recent cases on gas storage show a trend thatPennsylvania courts will likely uphold a dual-purpose lease aslong as the lease terms indicate an intent that the two rights arealternative options for the lessee. This approach recognizes thatthe two rights are interconnected and a necessary part of oil andgas development, and are usually contemplated as part of an oiland gas lease. The Jacobs decision should be viewed as applica-ble only to a narrow set of facts, such as where a lease providesthat oil and gas royalties or rentals are the only compensation foroil and gas production and entirely separate from storage rentals.However, this is an issue that Pennsylvania courts may revisit inthe future, as the Penneco and Warren cases are non-preceden-tial. These cases also highlight the importance of drafting clearprovisions in an oil and gas lease that preserve all of an opera-tor’s rights to extend the lease. ■
If you are interested in more information regarding these cases,please contact Joshua F. Hall at 412-253-8821 or [email protected].
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PIOGA’s new membership management system
Managing the company account
Your membership account management is now in your hands! Did you know that with the launch of PIOGA’s new membershipmanagement system the company main contact (or Master Account Holder) now has the ability to add employees, suspend(delete) employees who are no longer with the company or create branch locations (if you indicated you have multiple loca‐
tions)? We encourage you to add the colleagues you believe would get value from receiving the PIOGA member benefits and usageof the members‐only website. Employees must have their own account under the company’s membership for the system to recognizethem.
Adding company employees to the PIOGA membership account
To get started you must either be the Master Account Holder (company main contact) or have access to the master account’s user‐name and password. If you do not have that information, contact PIOGA’s Danielle Boston ([email protected])for assistance.
On the front page of PIOGA’s website (www.pioga.org), on the top right of the page, click on the link that saysMembers Only. That will take you to the member sign‐in page. Input the Master Account Holder’s username andpassword. Your profile will populate in the center and you’ll be able to see all the profile information for thecompany Master Account Holder. At the right side of that page you will see many options for customizing yourprofile page. To add employees to the company account (so they can gain access to all PIOGA member benefits),click the Manage Profile link.
The next page will take you to more options under your profile. You will next click onEmployees to view and manage your employees.
You will see your company name and how many additional company seats are available.This allows you to add more employees to your account unless you have reached yourmaximum.
There are three ways of adding new employees:1. Click on Create Employee if the employee is with you and have you all of the person’s contact information.2. Send them the direct link to sign up.3. Invite them via email to sign‐up. This is the preferred option.
Once you or your employee has completed the member profile and submitted it to PIOGA, a PIOGA staff member will review andapprove the submission. Once approved, the employee will get a confirmation email with log‐in instructions. The employee will alsostart to receive email correspondence (such as the eWeekly, events information, etc.) and will receive member rates when signing up
Page 14 The PIOGA Press
to attend a meeting, training or events.
Note that Master Account Holders also have the ability to sign in to employee company accounts and update information or reviewwhat employees have listed for their profile information.
Adding a branch location and the employees located at the branch
If your company has indicated it has multiple Pennsylvania branch locations and you’d like to list those additional locations, you canalso add branch offices and the employees located at these branches. Note that you will need to identify a Primary Branch Contactbefore starting the process to add a branch. Your primary branch contact essentially becomes the branch Master Account Holder.
Step 1 Step 2
Step 3
Enter in the profile information for your Primary Branch Location Contact. Once the Primary Branch Contact has been submitted andapproved, they can then add their location contacts using the same instructions above as the Master Account Holder, but they willenter them under their own profile. ■
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For other articles discussing various aspects of PIOGA’s newmembers‐only website, see recent issues of The PIOGA Press atwww.pioga.org/resources/newsletter.
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Page 16 The PIOGA Press
Pre-Drilling Water Supply Inventory and Sampling
Post-Drilling Complaint Resolution and Investigations
Gas Well Permitting for Conventional and
Unconventional Plays
Development of High Capacity Groundwater Supply Wells
Soil & Groundwater Contamination Investigations
Assistance with Water Sourcing
Water Management Plan Preparation
SPCC/Control & Disposal Plans
Pre-Drilling Water Supply Inventory and Sampling
Post-Drilling Complaint Resolution and Investigations
Gas Well Permitting for Conventional and
Unconventional Plays
Development of High Capacity Groundwater Supply Wells
Soil & Groundwater Contamination Investigations
Assistance with Water Sourcing
Water Management Plan Preparation
SPCC/Control & Disposal Plans
Disposal Well Permitting
Erosion & Sedimentation Control Planning
Fresh Water Determination Studies
Soil and Groundwater Remediation
Stray Gas Migration Investigations
Hydrogeologic Studies
Expert Witness Testimony
Wetland Delineation and Aquatic Surveys
Disposal Well Permitting
Erosion & Sedimentation Control Planning
Fresh Water Determination Studies
Soil and Groundwater Remediation
Stray Gas Migration Investigations
Hydrogeologic Studies
Expert Witness Testimony
Wetland Delineation and Aquatic Surveys
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The Environmental Hearing Board’sevolving interpretation of theEnvironmental Rights Amendment
By David Overstreet and Christopher NestorOverstreet & Nestor, LLC
The Commonwealth’s Environmental Hearing Boardrecently issued an opinion addressing how it intends toaddress challenges to permitting decisions by the
Department of Environmental Protection alleging that the agencyhas failed to comply with the Article I, Section 27 of thePennsylvania Constitution, the so-called “Environmental RightsAmendment.”
In Sludge Free UMBT v. Commonwealth, EHB Docket No.2014-015-L, the board denied a motion for partial summaryjudgment by the permittee on claims by third-party appellantsthat the department’s action was inconsistent with Article I,Section 27 of the Pennsylvania Constitution. The board conclud-ed that the matter would “benefit greatly from a consideration ofthe factual and legal issues following a hearing on the merits.”1
In reaching that conclusion, the board, citing CommonwealthCourt’s recent decision in Pennsylvania Environmental DefenseFoundation v. Commonwealth (PEDF), 108 A.3d 140 (Pa.Cmwlth. 2015), explained that it intends to strictly apply thethree-part Payne test in analyzing whether the department’saction comports with Article I, Section 27. The board expresslyrejected the permittee’s contention that the Environmental RightsAmendment is satisfied so long as the department’s action com-plies with the statutes and regulations that were adopted pursuantto that provision.
In UMBT, Sludge Free Upper Mount Bethel Township, acommunity organization, along with a number of individuals,appealed from department determinations that certain farms weresuitable for the land application of biosolids by Synagro Mid-Atlantic, Inc., a biosolids management company. The DelawareRiverkeeper Network and Maya Van Rossum, the Delawareriverkeeper, subsequently intervened in the appeal on behalf ofSludge Free UMBT. Sludge Free UMBT’s appeal from thedepartment’s determinations asserts, among numerous otherobjections, that the department failed to consider and account forthe long-term and cumulative impacts of land application ofbiosolids on the farms, in alleged violation of appellants’ rightsunder Article I, Section 27. Article I, Section 27 reads as follows:
The people have a right to clean air, pure water, andto the preservation of the natural, scenic, historic andesthetic values of the environment. Pennsylvania’spublic natural resources are the common property ofall the people, including generations yet to come. Astrustee of these resources, the Commonwealth shallconserve and maintain them for the benefit of all thepeople.PA. CONST. art. I, § 27.
Synagro (but not the department) moved the board for partialsummary judgment on appellants’ Article I, Section 27 claimsand others. Synagro argued that Article I, Section 27 is satisfiedso long as the department’s action complies with the statutes andregulations that were adopted pursuant to that constitutional pro-vision.2 Sludge Free UMBT, joined by the Riverkeeper, argued
that the board should disregard the three-part test announced inPayne v. Kassab, 312 A.2d 86 (Pa. Cmwlth. 1973), aff’d, 361A.2d 263 (Pa. 1976), in analyzing whether the department’saction is consistent with Article I, Section 27, as contrary to theconstitutional text and the Supreme Court’s plurality opinion inRobinson Twp., Washington Cnty. v. Com. (“Robinson II”), 83A.3d 901, 966-67 (Pa. 2013).3 The three-part Payne test asks:
1. Was there compliance with all applicable statutes and regu-lations relevant to the protection of the Commonwealth’s publicnatural resources?
2. Does the record demonstrate a reasonable effort to reducethe environmental incursion to a minimum?
3. Does the environmental harm which will result from thechallenged decision or action so clearly outweigh the benefits tobe derived therefrom that to proceed further would be an abuseof discretion?4
The board rejected both parties’ approaches, noting thatSynagro and Sludge Free UMBT “construct[ed] very differentanalytical approaches to how we should evaluate compliancewith Article I, Section 27, both of which are wrong.”5
The board rejected Sludge Free UMBT’s approach, conclud-ing that Commonwealth Court, in PEDF, “unequivocally” heldthat the Payne test is still good law absent majority opinion fromthe Supreme Court, or a decision of the Commonwealth Court,overruling Payne.6
With respect to Synagro’s position, the board reasoned thatbecause “all environmental statutes and regulations since 1971,as far as we know, were at least in part adopted pursuant toArticle I, Section 27,” Synagro’s position only addressed the firstquestion under the Payne test.7 The board explained:
Strict compliance with all regulatory requirements isnot necessarily coextensive with a reasonable effortto reduce the environmental incursion to a minimum,and notwithstanding compliance with all regulatoryrequirements and the application of a reasonableeffort to reduce the environmental incursion to aminimum, the environmental harms remaining mightnevertheless clearly outweigh the benefits of theproject.* * *If compliance with regulatory requirements wereenough by itself, we would not have been instructedto answer the second two questions.[Commonwealth] Court in PEDF repeatedly referredto its “multifactorial test,” and it cited with evidentapproval the parts of the plurality opinion of theSupreme Court in Robinson Township v. Common -wealth, 83 A.3d 901 (Pa. 2013), that discussed theneed to avoid unreasonable degradation of the envi-ronmental and balance environmental protection withbenefits of development.* * *To be sure, environmental regulations are themselvesdesigned to reduce environmental incursions to aminimum and balance harms and benefits.…Nevertheless, the constitutional inquiry may informthe department’s and our application of these broadlyworded regulations, and we cannot, as Synagrowould have us do, rule out as a matter of law thepossibility that the constitutional inquiry may com-
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Page 18 The PIOGA Press
pliment the regulatory inquiry in some cases.* * *Thus, despite Synagro’s and the Appellants’ efforts totruncate or disregard the Payne v. Kassab test, wewill apply it as written. We will address all threequestions set forth in Payne, not just the first one. Inapplying the second and third prongs of the test, wewill keep in mind the Commonwealth Court’s admo-nition that Article I, Section 27 is a “thumb on thescale,” which compels us to give greater weight tothe environmental concerns in the decision-makingprocess. PEDF, 108 A.3d at 170.8
The board then concluded that application of the full Paynetest and determining whether the department acted reasonably“will involve numerous disputed issues of material fact andmixed fact and law that make summary judgment impossible.”9
The board reasoned that not only were there disputed issuesrelating to whether there had been compliance with applicablestatues and regulations relevant to protection of the environment(the first prong of the Payne test), Sludge Free UMBT had “ref-erenced numerous facts that could support its position that thedepartment’s determinations did not evince a reasonable effort toreduce the environmental incursion to a minimum, the secondprong of the test, and that the unavoidable harms of the projectsclearly outweigh their benefits, the third prong of the test.”10
The board’s decision seems to invite increased use by third-party appellants of Article I, Section 27 challenges to departmentactions, which can result in protracted litigation before the board.Even if the permittee and department can establish that thedepartment’s challenged action complies, in all respects, with
applicable statutes and regulations designed, as the board’s opin-ion acknowledges, to implement Article I, Section 27, the boardhas indicated that it will strictly apply the second and thirdprongs of the Payne test. Because the second and third prongs ofthe Payne test are, as construed by the board, fact intensiveinquiries, the board has effectively telegraphed to permittees andto the department that the prospect of a successful summaryjudgment motion on, and early disposition of, a third-partyappeal raising Article I, Section 27 challenges to the depart-ment’s action is slim.
The decision is, moreover, reflective of the board’s ever-increasing reluctance, in recent years, to grant summary judg-ment motions, either full or partial, in cases involving complexlegal issues (even when the movant demonstrates an absence ofdisputed issues of material fact). The board’s reluctance to grantsummary judgment motions means that third-party appeals aremuch more likely to proceed, absent settlement or other resolu-tion, to a full hearing before the board. Also notable, and perhaps reflecting its own evolving interpreta-tion of Article I, Section 27, is the department’s failure (or refusal)to seek summary judgment, or to at least join in Synagro’s motionseeking summary judgment, on Sludge Free UMBT’s objectionsbased on the constitutional provision. By failing to seek summaryjudgment, or to join in Synagro’s motion, the department failed toprovide the board with the agency’s view of how Article I, Section27 objections to its actions should be analyzed, or worse, impliedto the board that it agreed with Sludge Free UMBT’s extremeposition. At the very least, the department’s failure to join theargument presented a divided front to the board, all but assuringdenial of summary judgment to Synagro on those claims. ■
1 UMBT, EHB Docket No. 2014-15-L, Opinion and Order on Motions for PartialSummary Judgment (July 1, 2015) (“Board’s Opinion”) at 3. 2 See Board’s Opinion at 4; Synagro’s Memorandum of Law in Support of Motionfor Partial Summary Judgment (April 14, 2015) at 9. 3 See Board’s Opinion at 3-4; Sludge Free UMBT/Riverkeeper Memorandum ofLaw in Opposition to Motions for Partial Summary Judgment (May 27, 2015) at44.4 See Board’s Opinion, citing Payne, 312 A.2d at 94.5 Board’s Opinion at 3 (emphasis added). 6 Board’s Opinion at 4, citing PEDF, 108 A.3d at 159 and its recent adjudicationin Brockway Borough Mun. Auth. v. DEP, EHB Docket No. 2013-080-L(Adjudication, April 24, 2015) (concluding, based on PEDF, that the Payne testis the standard for reviewing Article I, Section 27 challenges to the department’sdecisions). The Board’s Brockway decision is on appeal to Commonwealth Court.See Brockway Borough Mun. Auth. v. DEP, Docket No. 789 CD 2015.7 Board’s Opinion at 5. 8 Board’s Opinion at 5-7.9 Board’s Opinion at 7.10 Board’s Opinion at 7-8.
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Safety Committee CornerSafety Committee Corner
Technical rescue squad for theoil and gas drilling industryBy Tom Baughman, Industrial Safety SpecialistButler County Community College
Accident: 202470357 – Employee is Killed During Disassembly ofDrilling Rig“Emergency medical services were called, but due to the remote location, ittook medical personnel approximately 45 minutes to reach the accidentsite.” (OSHA Report ID: 0950643)
Evaluate a prospective rescuer’s ability to respond to a rescue summonsin a timely manner (OSHA 29 CFR 1910.146(k)(1)(i))“It is therefore important for employers to select rescue services or teams,either on-site or off-site that are equipped and capable.”“For all rescue teams or services, the employer’s evaluation should consistof two components: an initial evaluation, in which employers decidewhether a potential rescue service or team is adequately trained andequipped to perform permit space rescues of the kind needed at the facilityand whether such rescuers can respond in a timely manner, and a perform-ance evaluation, in which employers measure the performance of the teamor service during an actual or practice rescue. “ (1910.146 App F)
What are the challenges the oil and gas industry faces when evalu-ating rescue needs for rural job sites? Here are some examples:
• An emergency situation that requires a timely response in a rural settingcan be affected by how rural EMS/VFD responders are staffed.
• Many rural departments have smaller crews that are staffed by volun-teers that have other jobs and likely delay the response time.
• Some areas have limited or no basic 911 service, which adds to lengthyresponse times.
• The number of trained responders or lack of trained responders.• The effectiveness of rescue teams or rescue services. (Pennsylvania
does not mandate that volunteer firefighters have training before becoming amember of a VFD. In the 1970s, Pennsylvania had approximately 300,000volunteer fire fighters and at present has only 50,000. How many of themare trained to respond to rescue operations at a well site or pipeline inci-dent?)
• Activation to an emergency response can be affected by bad weather.• Location and accessibility increase response time.
The “golden hour”Dr. Cowley at the University of Maryland Medical Center in Baltimore
first described the “golden hour,” recognizing that the sooner a traumapatient received care within the first 60 minutes, the better the chance ofsurvival. In evaluating the need for rescue services and teams, the goldenhour should be a considering factor.
In the accident described at the beginning of this article, the responsetime took approximately 45 minutes, leaving 15 minutes to transport to atrauma center or hospital. Industrial fire brigades and rescue teams are thefirst line of defense in the event of an incident at their facilities.
February 2014 Page 21August 2015 Page 21
Situational awareness: Knowing what is going on around usWhat role does situational awareness play when we talk we
talk about rescue teams for the gas and oil industry? How can weensure situational awareness with municipal responders?Municipal first responders may respond to a well site incidentusing the same techniques as when responding to a fire or a caraccident, and that may not be appropriate for a well site. Theymay also not be aware of what can harm them or help them.Who responds can change depending on who is available at anygiven time. What is the makeup of the responding team? Havethey worked together before? What is the skill level of eachresponding member? We may now need to rescue the rescuers.
Companies that are training their own workers who are famil-iar with the daily workings and hazards of a well site or pipelineexcavation will have a heightened situational awareness and aremuch less likely to put themselves or others in a hazardous orunsafe situation. They are more likely to be proactive than reac-tive in their everyday work by being alert and knowing what cango wrong.
Technical rescue squads possess the skills and knowledge thatprovide a layer of protection that can be an asset to any well site,pipeline excavation or facilities that would provide a safer workenvironment.
Industrial fire brigades are usually comprised of workers whohave volunteered to be a member and sometimes additional com-pensation is included or sometimes it is just a part of their duties.Being a member of an IFB is often considered to be prestigiousopportunity, and many companies I work with have waiting listsfor recruitment.
The technical rescue squad can save lives and money. ■
Page 22 The PIOGA Press
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Superior Court restricts lessees’right to protect leased interestsinvolved in title disputes
In Bastian v. Sullivan, ___ A.3d ___, 2015 Pa. Super 123 (Pa.Super. 2015), the Pennsylvania Superior Court recently heldthat the lessees of two competing oil and gas leases covering
the same properties were not indispensible parties and thereforedid not need to be joined as parties to litigation seeking clarifica-tion as to the title to the oil and gas estate underlying the proper-ties. The Bastian decision is a major blow to a lessee’s legal rightto participate in litigation concerning the lessor’s ownership ofthe minerals which have been previously leased to a lessee inorder to protect its investment in the property that is the subjectof the title dispute.
In Bastian, the main issue to be decided was who owned theoil and gas underlying three parcels, the resolution of whichdepended on whether a joint tenancy was severed. The plaintifffiled an action for declaratory judgment, quiet title and specialinjunctive relief against the defendants, who claimed they ownedhalf of the minerals underlying the property as tenants in com-mon, seeking a determination that (1) the plaintiff, as heir to themost recently deceased joint tenant, was the sole owner of the oiland gas rights underlying the parcels and had the sole right tolease the oil and gas underlying the parcels; and (2) any oil andgas lease entered into by the defendants was void.
The trial court granted summary judgment in favor of plain-tiff, finding that the various transfers of the surface of the proper-
ties at issue by joint tenants did not sever ajoint tenancy with the right of survivorshipas to the subsurface estate excepted andreserved from those transfers. The defen-dants appealed. The Superior Court upheldthe trial court’s decision on this issue, whichvested the ownership of the mineral estateand the right to lease the oil and gas in theplaintiff.
Prior to deciding the merits of theBastian case, the Superior Court consideredwhether Anadarko E&P Company, LP, the
lessee of a lease signed by the defendants, and Victory EnergyCorporation, the lessee of a lease signed by the plaintiff, wereindispensible parties to the litigation. The Superior Court consid-ered the issue for the first time on appeal, finding that despite thetrial court’s assertion to the contrary, the issue of failure to joinan indispensible party can never be waived.
Citing Mechanicsburg Area School District v. Kline, 494 Pa.476, 431 A.2d 953, 956 (1981), the Superior Court laid out thefollowing four questions pertinent to the determination ofwhether a party is indispensible to the litigation:
1. Do absent parties have a right or interest related to theclaim?
2. If so, what is the nature of that right or interest?3. Is that right or interest essential to the merits of the issue? 4. Can justice be afforded without violating the due process
rights of absent parties?The defendants argued that both lessees were indispensible
parties because their leases would necessarily be affected by any
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decision of the court. The plaintiff argued that Anadarko andVictory were not indispensible parties because the lessees’ inter-ests were not direct or essential enough to prevent justice frombeing served in the case.
The Superior Court agreed with the plaintiff and held thatAnadarko and Victory were not indispensable parties. The courtstated there was no doubt both lessees had a “right or interestrelated to the claim.” Although the court found that both lesseeshad rights related to the claim, the key was whether Anadarko’sand Victory’s rights were “essential to the merits of the case.” Inholding that neither lessee’s right was “essential,” the courtfound that neither lessee had positions different from those of theplaintiff and defendant. In its analysis, the court stated that “[i]f[defendants] did not own half of the subsurface estate, then theycould not lease it to Anadarko. Similarly, if [plaintiff] did notown the whole subsurface estate, but only owned half, she couldonly lease half to Victory.”
Bastian is an important case for lessees, operators, and work-ing interest owners in oil and gas leases. According to theSuperior Court, these parties may not be indispensable parties tolitigation between persons or entities regarding title to oil, gasand other mineral estates which have been leased to explorationand development companies. As in Bastian, this is true even ifthe litigants have executed multiple leases with different lesseescovering the property at issue. Although a lessee might be con-tent not to be joined in such litigation, it could be detrimental tothe lessee if, due to lack of expertise or resources, the lessor liti-gant is not adequately representing the lessor’s and, therefore,the lessee’s, interests. This could be particularly troubling if thelessee does not receive notice of the litigation during its penden-
cy and has no opportunity to participate or even monitor the liti-gation.
Because of the holding in Bastian, a lessee’s only way toensure its right to participate in litigation involving the lessor’stitle, thereby protecting its interest and investment in a property,is contractually. Lessees should consider (i) adding a lease provi-sion requiring the lessor to notify the lessee in the event anyaction is filed contesting the lessor’s title to oil and gas interestssubject to the lease; and (ii) granting the lessee with the right toparticipate, in its sole discretion, in conjunction with or on behalfof the lessor in the litigation. Certainly, a lessee’s election to par-ticipate with or on behalf of any lessor in any title litigation rais-es additional issues such as who controls the litigation in aninstance where the lessor and lessee’s interests diverge. A broad-er discussion of these issues is beyond the scope of this article.Of course, such issues would not arise if the Superior Court inBastian held lessees to be indispensible parties and gave themthe right to participate in litigation involving its lessor’s title tothe leased interests. ■
Alison Andronic is an associate with the law firm Barnes DulacWatkins, a boutique firm located in Pittsburgh concentrating inoil and gas law. The views expressed in this article do not neces-sarily reflect those of Barnes Dulac Watkins or its clients.
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Page 24 The PIOGA Press
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JA’s Careers in Energy program looking for participation
As the workplace has changed, so have the delivery mod-els and program offerings of Junior Achievement (JA).With the need to better educate and inspire our young
people about careers in STEM (science, technology, engineeringand math) fields, Junior Achievement is working with schoolsand companies to provide programming that will open our stu-dents’ eyes to potential careers in these high growth, highdemand fields. Through JA’s Careers in Energy program, thou-sands of students in our region are learningabout the important role they can play in theworkforce of the future. As important to theSTEM education occurring in our schools is theSTEM inspiration that needs to take place sothat our students pursue careers in these fields.
Through the JA Careers in Energy program,students receive a better insight into the energyindustry from those who have already pursuedcareers in the field. A unique aspect of this pro-gram, as with all JA programs, is the nature inwhich the program is delivered. Trained JA vol-unteers from the industry and the communityenter classrooms across the state to instruct stu-dents using materials and lesson plans providedby JA. Through the formation of an advisorycommittee, Junior Achievement has worked withkey government, community and industry stake-holders, educators, and school officials to selectlesson content that has created age-appropriate
lessons that open students’ eyes to the opportunities both insideand outside of the industry that they might one day take advan-tage of.
Junior Achievement is seeking volunteers and funding part-ners to help deliver this in-classroom program. If you are inter-ested in partnering with JA to educate our future workforce,please contact Dani Stump, manager of STEM initiatives, [email protected]. ■
A volunteer from CONSOL Energy teaches Careers in Energy to students at WestGreene High School in Greene County.
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Where in the World is the PIOGA Outreach Team?
By Joyce Turkaly,Director of Natural Gas Market Development
The Titusville Redevelopment Authority is framing a long-termvision when it comes to keeping economic development alive inthe Oil Creek region. The history of the area is apparent in therenovated buildings along Main Street that serve as a reminder ofthe growth and prosperity of this former oil boom town. DebEckleberger, director of business development, was on hand toprovide a driving tour of the area that included a number of ware-housing and mixed-use properties in a commercial and industrialsite called Opportunity Park. Steel and plastics manufacturers areneighbors to smaller startup or incubator companies that needspace to test light manufacturing technologies or simply serve asgoods distribution centers. Instead of trying to attract one busi-ness and land one recognizable name, Titusville CommunityDevelopment is focusing on providing space for a more diversifiedbusiness park. That way, as businesses grow, they may be able tobenefit from being within close proximity to each other and itlessens the risk on any city or county development organizationto bet on just one winning outcome. In September, 2014 TitusvilleCommunity Development Agencies completed a comprehensivestudy on shale exploration and production and its impact on thecommunity at large. To access this report, visit www.tcda.org/shared/Titusville%20PA%20Shale%20Strategic%20Plan%20Sept%202014.pdf.
With support from its sponsors (KEF, API, PIOGA), theAppalachian chapter of the Women’s Energy Network hosted aforum at the Hyatt Place in Washington County on July 23, enti-tled “Opportunities for Women in Energy: The Voice ofExperience.” Panelists included Renee Jones, manager state gov-ernment affairs, Chevron; Erin McDowell, counsel, RangeResources; Becky Matthews, sales director, Contract Land Staff;and David Kanesvsky, VP, American Viewpoint. The late afternoonforum included frank and honest career launch and path storiesby the panelists as well as a Q&A session where young womenwho were interested in in the oil and gas industry asked ques-tions about seeking employment. A crucial theme of the meetingand networking event was to discuss shaking off the image orperception that all industry jobs were field jobs. Tips and sugges-tions were given on how to best utilize transferrable skills wheninterviewing for positions. On Friday, August 21, 2015 theWomen’s Energy Network is hosting its “Boots and Ball Gowns”gala. See www.womensenergynetwork.org for more information.
The National Energy Technology Laboratory (NETL) is aDepartment of Energy laboratory located on the fringe of SouthPark that conducts research of fossil fuel resources. Curiousabout the research touching PIOGA’s oil and gas companies, Iinquired about a tour. On July 24, I was hosted by NETL’s OtisMills, public affairs and outreach manager, who arranged a half-day itinerary to introduce me to various NETL research scientists.
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Using some examples to start the meeting, Jared Ciferno, directorof the Strategic Center for Natural Gas and Oil, discussed howNETL meets with the Pipeline and Hazardous Materials SafetyAdministration (PHMSA) to address methane emission sensorcontrols, noting that quantifying methane leak is the first step toestablishing a baseline and further under-standing whether a technology can serveas the solution as opposed to regulation.Jared spoke of roughly 100 ongoingadvanced technology projects in oil andgas that in areas of shale, enhanced oilrecovery, deep-water oil and gas produc-tion and methane hydrates. Approximately$540 million is allocated to NETL byCongress, of that total currently $500 mil-lion is directed to coal research.
Three years ago, the federal governmenttapped NETL to improve the safety of off-shore development. During my visit, I metDr. Barbara Kutchko (picctured here atright with Joyce Turkaly and NETL’s JaredCiferno), a senior research scientist whospecializes in well bore isolation and oilwell cementing as well as other areas ofenergy production research. Dr. Kutchkorepresents NETL on the AmericanPetroleum Institute’s CementSubcommittee 10C and is actively involvedin the foamed cement work group. Prior to
her research, she told me, many studies were conducted atatmospheric pressure. She evaluates how subsurface changes inpressure affect the strength of the cement chemistry (in situreservoir/downhole conditions) and ensure that the foamedcement is where it needs to be. The entire staff at NETL works
Page 28 The PIOGA Press
Member Profile guidelines
Introduce your company and tell other members what youoffer to Pennsylvania’s oil and gas industry. The guidelinesfor making a PIOGA Member Profile submission are:• Include a brief history of your company. When and where
was it founded, and by whom? Is the company new to the oiland gas industry in general or to Pennsylvania?
• Describe the products and services you offer specificallyfor the oil and gas industry. Do you have a product in particu-lar that sets your company apart from the competition?
• If applicable, tell how the business been positively impact-ed by Pennsylvania’s oil and gas industry. Have you expand-ed, added employees or opened new locations?
• Include a website address and/or phone number.• Your submission may be a maximum of 400-450 words
and should be provided as a Word document. Use minimal for-matting—bold and italic fonts are OK, as are bulleted or num-bered lists. Your submission is subject to editing for length,clarity and appropriateness.
• Include your company logo or a photo. Images must behigh-resolution (300 dots/pixels per inch or higher) and in anycommon graphics format. Please include identifications for anypeople or products in a photo. Send image files separately, notembedded in your document.
Email material to Matt Benson at [email protected]. This is afree service to our member companies and publishing datesare at the discretion of PIOGA. If you have questions or wantto follow up on a submission, email Matt or call 814-778-2291.
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with oil and gas companies, government agencies, and universi-ties to evaluate practices of offshore drilling, shale production andcarbon storage.
The Pittsburgh office of LeechTishman offered a CLE programentitled “So There’s a pipeline coming to your Community.” DanielGarcia (pictured below), who serves as a PIOGA Pipeline andGas Market Development subcommittee leader, explains the dif-ferences of the transmission, distribution and gathering pipelinenetwork as well as federal and state oversight and regulations.The purpose of this meeting was to educate the audience on theoil and gas industry’s safe construction and development prac-tices and to provide resources for local governments on how tomake best informed planning decisions regarding land use plan-ning and development. ■
PIOGA Member News
Vintage Land Holdings focuses on aggregatingacreage with conventional operators
Stanley Berdell is trying a new idea with a new company—aggregating acreage to attract investment on future explo-ration and production potential. Vintage Land Holdings,
LLC, a company spearheaded by Berdell, a PIOGA board mem-ber and owner-operator of BLX, Inc. from Kittanning, believesin acting proactively during these hard economic times for con-ventional drillers.
Offering the analogy of a barrel with a slow leak that dripsand drips until dry, Berdell contends that the idea behind aggre-gating what is now 20,000 acres with hope in the coming monthsto double that goal is better than doing nothing at all.
Participants in this aggregation company will be proportionateshare operators. The geographic footprint of the acreage is com-prised of northern Westmoreland County, central Armstrong intoIndiana County and up into Jefferson County.
“I was shocked at the number of shale wells in that area thathave been pretty successful,” he related. Noting that infrastruc-ture is lacking, he is also talking with midstream companies tolay pipe. “There’s private equity money out there—we are givingpeople an opportunity to look,” he adds. ■
August 2015 Page 29
New PIOGA members — welcome!
Alert Plus, LLCP.O. Box 268, Pinedale, WY 82941307-749-0615www.alert-plus.comService Provider—service directory category: multi-gas detectionplatform
Brasfond USA Corp.1785 N. Geyers Chapel Rd., Wooster, OH 44691330-262-0015www.brasfondusa.comService Provider—service directory category: pipelineconstruction services
Brickstreet Mutual Insurance Company400 Quarrier Street, Charleston, WV 25301304-941-1000www.brickstreet.comProfessional Firm
Clipper Enterprises, LLCP.O. Box 10668, Pittsburgh, PA 15235-9998412-721-4743Associate
Custom Compression Systems5823 Lake Road , Atlantic, PA 16111724-681-4414customcompressionsystems.comService Provider—service directory category: compressionpackager
Holiday Inn Express250 Bessemer Road, Mount Pleasant, PA 15666724-547-2095Service Provider
Overstreet & Nestor, LLC461 Cochran Road, Box 237, Pittsburgh, PA 15228717-645-1861www.palawgroup.comProfessional Firm—service directory category: legal services
Pepper Hamilton, LLP500 Grant Street, Suite 5000, Pittsburgh, PA 15219-2507412-454-5823www.pepperlaw.comProfessional Firm—service directory category: legal services
Silver Creek Services4 Grandview Circle, Suite 201, Canonsburg, PA 15317724-485-2451www.scsfirst.comService Provider—service directory categories: trucking/hauling,well service
Stonebridge Oilfield Services406 Colegate Drive, Marietta, OH 45750740-525-1159sbofs.comService Provider—service directory categories: BOP testing,containment, excavating, hot shot, trucking, injection wellservices, pipeline construction, pressure testing, more
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Page 30 The PIOGA Press
Water management solutions: Continued from page 1
ber 29, 2014, and applicable January 1, 2015, changing eachlandfill’s TENORM limits from annual to monthly, reducing thecapacity for disposal at Pennsylvania landfills, with associatedprice increases of three to four times the 2014 rates. Costsincreases such as these are not sustainable for water managementcompanies or their customers and will eventually drive up energycosts for every Pennsylvanian. Therefore, all Pennsylvaniansshould expect new regulations to be fully vetted, a reasonabletime period for notification, address a real environmental threatand be subject to a thorough cost-benefit analysis.
InnovationFrom Colonel Drake’s illustrious accomplishment of drilling
the first commercial oil well here to the more recent innovationsin the Marcellus, Pennsylvania has earned a significant reputa-tion for industry innovation. But we can’t rest on our laurels, andshould support new innovations in water management that willallow the broader industry to continuously improve operationaland environmental performance. Two opportunities are at hand.
First, we should fast-track ending waste classification for saltfrom crystallizer operations. One of the greatest current chal-lenges for the oil and gas industry is the management of produc-tion water. Since the conventional industry cannot reuse itswater, and the unconventional drilling activity has dramatically
declined, there is a need for disposal of production water. Thereare very few underground injection wells in Pennsylvania avail-able for water disposal.
One of the potential solutions to this challenge would bedevelopment of crystallizers to treat this water. Crystallizersremove dissolved solids from oil and gas water, resulting in veryclean water and salt. This is a proven technology and commonpractice in other industries and around the world. However,because the Department of Environmental Protection considersany byproducts from processing of unconventional water to bewastes, and crystallizers produce salt, crystallizers have been dis-couraged from developing in the Commonwealth. It is commonpractice in other industries to allow a byproduct of a process tobe marketed and used as a product, if its quality is comparable toan existing product on the market. DEP has the discretion todeclassify salts produced from crystallizers treating oil and gaswastewaters as waste products and should make this happen toencourage yet another means for oil and gas water to be man-aged.
Second, we should facilitate innovation in the logistics ofwater management, including water transfer by rail. DEP’s pastpractice was to allow oil and gas industry water to be moved byrail between the source of generation and the destination of treat-ment and/or reuse. Rail was viewed as a means of transportation,no different than trucking. The agency has changed its policy andnow is requiring a lengthy transfer facility permitting process forthis activity. While it is allowed to transfer industry water fromtruck to truck, similar transfer between rail and truck nowrequires a permit. The result is that business arrangements aredelayed, creating the need for more trucks, at higher costs toboth water management companies and their oil and gas industrycustomers. Individual communities may want to continue torequire local permits to load and unload railcars, but other barri-ers to this alternative for water transport should come down.
In conclusion, the water management industry is a critical partof the overall success of oil and gas production in our state, aswell as a key component of our economy in its own right.Through predictable regulations, manageable costs and innova-tion, Pennsylvania can be proud of fostering a keystone of bothour economy and our environment. ■
This article was developed with input from PIOGA’sEnvironmental Committee. If you have questions or would likeadditional information on the issues addressed here, please con-tact committee Co-chairman Paul Hart at 724-349-8600 [email protected].
August 2015 Page 31
Page 32 The PIOGA Press
$40.00
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Natural Gas Futures Closing PricesAs of August 10
Month PriceSeptember 2015 $2.835October 2.861November 2.963December 3.128January 2016 3.214February 3.219March 3.172April 2.990May 2.970June 2.995July 3.049August 3.049
Oil & Gas TrendsPenn Grade Crude Prices
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Office: (724) 742-1122Fax: (724) 742-4703
NEW PROSPECT COMPANY120 MARGUERITE DRIVE, SUITE 201 • CRANBERRY TOWNSHIP, PA 16066
MARK A. WILLIAMSConsultant Business Development ManagerEngineering, Completion and Drilling Consultants
February 2014 Page 33August 2015 Page 33
SourcesAmerican Refining Group: www.amref.com/Crude-Prices-New.aspxErgon Oil Purchasing: www.ergon.com/prices.phpGas futures: http://quotes.ino.com/exchanges/?r=NYMEX_NGBaker Hughes rig count: http://gis.bakerhughesdirect.com/ReportsNYMEX strip chart: Emkey Energy LLC, emkeyenergy.com
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Previous Year Currrent Year
Pennsylvania Rig Count
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Page 34 The PIOGA Press
Apex Energy (PA) LLC 1 7/18/15 129-28892* Westmoreland Penn TwpBarnes Resources 1 7/2/15 123-47717 Warren Sheffield TwpBranch John D 2 7/10/15 123-47800 Warren Warren City
7/23/15 123-47799 Warren Warren CityCabot Oil & Gas Corp 13 7/21/15 115-22003* Susquehanna Bridgewater Twp
7/21/15 115-21999* Susquehanna Bridgewater Twp7/21/15 115-22001* Susquehanna Bridgewater Twp7/21/15 115-22000* Susquehanna Bridgewater Twp7/21/15 115-22002* Susquehanna Bridgewater Twp7/23/15 115-22010* Susquehanna Bridgewater Twp7/23/15 115-22011* Susquehanna Bridgewater Twp7/23/15 115-22012* Susquehanna Bridgewater Twp7/23/15 115-22013* Susquehanna Bridgewater Twp7/2/15 115-22006* Susquehanna Gibson Twp7/7/15 115-22016* Susquehanna Gibson Twp7/7/15 115-22004* Susquehanna Gibson Twp7/7/15 115-22005* Susquehanna Gibson Twp
Cameron Energy Co 9 7/3/15 053-30718 Forest Howe Twp7/9/15 053-30719 Forest Howe Twp7/14/15 053-30731 Forest Howe Twp7/20/15 053-30732 Forest Howe Twp7/27/15 053-30730 Forest Howe Twp7/6/15 123-47832 Warren Sheffield Twp7/10/15 123-47840 Warren Sheffield Twp7/17/15 123-47839 Warren Sheffield Twp7/24/15 123-47815 Warren Sheffield Twp
Catalyst Energy Inc 10 7/27/15 083-56657 McKean Lafayette Twp7/30/15 083-56656 McKean Lafayette Twp7/8/15 121-45788 Venango Cranberry Twp7/13/15 121-45928 Venango Cranberry Twp7/15/15 121-45927 Venango Cranberry Twp7/20/15 121-45930 Venango Cranberry Twp7/22/15 121-45933 Venango Cranberry Twp7/24/15 121-45929 Venango Cranberry Twp7/27/15 121-45931 Venango Cranberry Twp7/30/15 121-45932 Venango Cranberry Twp
Chesapeake Appalachia LLC 3 7/10/15 015-23190* Bradford Monroe Twp7/10/15 015-23191* Bradford Monroe Twp7/24/15 131-20497* Wyoming Mehoopany Twp
Chevron Appalachia LLC 4 7/1/15 059-26896* Greene Dunkard Twp7/2/15 059-26897* Greene Dunkard Twp7/3/15 059-26898* Greene Dunkard Twp7/4/15 059-26899* Greene Dunkard Twp
EM Energy PA LLC 8 7/11/15 019-22431* Butler Oakland Twp7/11/15 019-22427* Butler Oakland Twp7/12/15 019-22432* Butler Oakland Twp7/13/15 019-22437* Butler Oakland Twp7/13/15 019-22433* Butler Oakland Twp7/14/15 019-22436* Butler Oakland Twp7/15/15 019-22435* Butler Oakland Twp7/15/15 019-22434* Butler Oakland Twp
EQT Production Co 28 7/7/15 059-26906* Greene Morgan Twp7/7/15 059-26901* Greene Morgan Twp7/7/15 059-26902* Greene Morgan Twp7/7/15 059-26903* Greene Morgan Twp7/7/15 059-26904* Greene Morgan Twp7/7/15 059-26905* Greene Morgan Twp7/6/15 059-26697* Greene Morris Twp7/6/15 059-26708* Greene Morris Twp7/6/15 059-26709* Greene Morris Twp7/6/15 059-26710* Greene Morris Twp7/6/15 059-26718* Greene Morris Twp7/6/15 059-26717* Greene Morris Twp7/6/15 059-26716* Greene Morris Twp7/6/15 059-26715* Greene Morris Twp7/6/15 059-26720* Greene Morris Twp7/6/15 059-26721* Greene Morris Twp7/6/15 059-26722* Greene Morris Twp7/6/15 059-26723* Greene Morris Twp7/7/15 059-26698* Greene Morris Twp7/7/15 059-26699* Greene Morris Twp7/7/15 059-26700* Greene Morris Twp7/7/15 059-26701* Greene Morris Twp7/7/15 059-26702* Greene Morris Twp
7/7/15 059-26703* Greene Morris Twp7/7/15 059-26704* Greene Morris Twp7/7/15 059-26706* Greene Morris Twp7/7/15 059-26707* Greene Morris Twp7/7/15 125-27684* Washington Fallowfield Twp
Lendrum Energy LLC 3 7/9/15 121-45225 Venango Cranberry Twp7/18/15 121-45228 Venango Cranberry Twp7/24/15 121-45227 Venango Cranberry Twp
Mead Oil LLC 3 7/8/15 123-47702 Warren Mead Twp7/14/15 123-47700 Warren Mead Twp7/17/15 123-47701 Warren Mead Twp
Range Resources Appalachia 6 7/17/15 003-22327* Allegheny Frazer Twp7/17/15 003-22328* Allegheny Frazer Twp7/17/15 003-22329* Allegheny Frazer Twp7/17/15 003-22332* Allegheny Frazer Twp7/17/15 003-22333* Allegheny Frazer Twp7/10/15 125-27687* Washington Somerset Twp
RE Gas Dev LLC 4 7/3/15 019-22426* Butler Clay Twp7/3/15 019-22428* Butler Clay Twp7/3/15 019-22429* Butler Clay Twp7/3/15 019-22430* Butler Clay Twp
Rice Drilling B LLC 2 7/7/15 125-27678* Washington Amwell Twp7/7/15 125-27679* Washington Amwell Twp
Seneca Resources Corp 14 7/16/15 047-24943* Elk Jones Twp7/16/15 047-24947* Elk Jones Twp7/17/15 047-24946* Elk Jones Twp7/17/15 047-24939* Elk Jones Twp7/18/15 047-24941* Elk Jones Twp7/18/15 047-24944* Elk Jones Twp7/18/15 047-24938* Elk Jones Twp7/19/15 047-24945* Elk Jones Twp7/26/15 047-24928* Elk Jones Twp7/26/15 047-24931* Elk Jones Twp7/29/15 047-24929* Elk Jones Twp7/29/15 047-24932* Elk Jones Twp7/31/15 047-24948* Elk Jones Twp7/31/15 047-24930* Elk Jones Twp
Snyder Bros Inc 2 7/8/15 123-47640 Warren Sheffield Twp7/15/15 123-47693 Warren Sheffield Twp
Southwestern Energy Prod Co 4 7/1/15 115-21956* Susquehanna Clifford Twp7/13/15 115-21953* Susquehanna Jackson Twp7/13/15 115-21954* Susquehanna Jackson Twp7/14/15 115-21965* Susquehanna Jackson Twp
SV ABS Interest Wetmore Proj 4 7/1/15 083-56729 McKean Wetmore Twp7/8/15 083-56731 McKean Wetmore Twp7/14/15 083-5-6730 McKean Wetmore Twp7/24/15 083-56732 McKean Wetmore Twp
SWN Production Co LLC 2 7/30/15 015-23204* Bradford Herrick Twp7/13/15 115-21512* Susquehanna Jackson Twp
Talisman Energy USA Inc 4 7/20/15 015-23162* Bradford Orwell Twp7/20/15 015-23161* Bradford Orwell Twp7/21/15 015-23160* Bradford Orwell Twp7/21/15 015-23163* Bradford Orwell Twp
Titusville Oil & Gas Assoc Inc 1 7/1/15 053-30663 Forest Harmony TwpUniversal Resources Holdings 2 7/7/15 123-47810 Warren Youngsville Boro
7/7/15 123-47811 Warren Youngsville BoroVantage Energy Appalachia II 2 7/29/15 059-26925* Greene Jackson Twp
7/29/15 059-26926* Greene Jackson TwpWeldbank Energy Corp 3 7/22/15 123-47838 Warren Mead Twp
7/27/15 123-47837 Warren Mead Twp7/30/15 123-47836 Warren Mead Twp
XTO Energy Inc 3 7/27/15 019-22445* Butler Clearfield Twp7/27/15 019-22446* Butler Clearfield Twp7/28/15 019-22454* Butler Clearfield Twp
Spud Report:July
The data show below comes from the Department ofEnvironmental Protection. A variety of interactive reports are
OPERATOR WELLS SPUD API # COUNTY MUNICIPALITY OPERATOR WELLS SPUD API # COUNTY MUNICIPALITY
available at www.portal.state.pa.us/portal/server.pt/community/oil_and_gas_reports/20297.
The table is sorted by operator and lists the total wells report-ed as drilled last month. Spud is the date drilling began at a wellsite. The API number is the drilling permit number issued to thewell operator. An asterisk (*) after the API number indicates anunconventional well.
July totalsTotal wells 138Unconventional 98Conventional 40Gas 98Oil 40Combination oil/gas 0
PIOGA Board of DirectorsGary Slagel (Chairman), Steptoe & Johnson PLLC (representing
CONSOL Energy)Sam Fragale (Vice Chairman), Freedom Energy Resources LLCFrank J. Ross (2nd Vice Chairman), T&F Exploration, LPJames Kriebel (Treasurer), Kriebel CompaniesCraig Mayer (Secretary), Pennsylvania General Energy Co., LLCTerrence S. Jacobs (Past President), Penneco Oil Company, Inc.L. Richard Adams, Chief Oil and GasThomas M. Bartos, ABARTA EnergyStanley J. Berdell, BLX, Inc.Rob Boulware, Seneca Resources CorporationCarl Carlson, Range Resources - Appalachia, LLCMike Cochran, Energy Corporation of AmericaDon A. Connor, Open Flow EnergyTed Cranmer, TBC ConsultingJack Crook, Atlas Resource Partners, LPRobert Esch, American Refining Group, Inc.Michael Hillebrand, Huntley & Huntley, Inc.Jim Hoover, Phoenix Energy Productions, Inc. Ron McGlade, Tenaska Resources, LLCJim McKinney, EnerVest Operating, LLCSteve Millis, Vineyard Oil & Gas CompanyGregory Muse, PennEnergy Resources, LLCJoy Ruff, Dawood Engineering, Inc.Stephen Rupert, Texas Keystone, Inc.Jake Stilley, Patriot Exploration CorporationWilliam Stoner, Universal Well Services, Inc.Burt A. Waite, Moody and Associates, Inc.Thomas Yarnick, XTO Energy
Committee ChairsEnvironmental Committee
Paul Hart, Fluid Recovery Services, LLCKen Fleeman, ABARTA Energy
Legislative CommitteeBen Wallace, Penneco Oil Company
Pipeline & Gas Market Development CommitteeBob Eckle, Appalachian Producer Services, LLCRon McGlade, Tenaska Resources, LLC
Health & Safety CommitteePat Carfagna, CONSOL Energy
Meetings CommitteeLou D’Amico, PIOGA
Tax CommitteeDonald B. Nestor, Arnett Foster Toothman, PLLC
Communications CommitteeTerry Jacobs, Penneco Oil Company, Inc.
StaffLou D'Amico ([email protected]), President & Executive DirectorKevin Moody ([email protected]), Vice President & General Counsel Debbie Oyler ([email protected]), Director of Member ServicesMatt Benson ([email protected]), Director of Internal Communications
(also newsletter advertising & editorial contact)Joyce Turkaly ([email protected]), Director of Natural Gas Market
DevelopmentDan Weaver ([email protected]), Public Outreach DirectorDanielle Boston ([email protected]), Director of AdministrationChris Lisle ([email protected]), Manager of Finance Tracy Zink ([email protected]), Administrative Assistant
Pennsylvania Independent Oil & Gas Association115 VIP Drive, Suite 210 • Wexford, PA 15090-7906724-933-7306 • fax 724-933-7310 • www.pioga.org
Northern Tier Office (Matt Benson)167 Wolf Farm Road, Kane, PA 16735
Phone/fax 814-778-2291© 2015, Pennsylvania Independent Oil & Gas Association
February 2014 Page 35August 2015 Page 35
PIOGA Events18th Annual Divot Diggers Golf Outing
August 26, Tam O’Shanter of Pennsylvania, Hermitage Info: www.pioga.org/events/category/pioga-events
Annual Membership MeetingSeptember 29, Greensburg Hotel and Conference CenterInfo: www.pioga.org/events/category/pioga-events
Eastern Oil & Gas Conference and Trade ShowOctober 27-28, Monroeville Convention Center, MonroevilleInfo: www.pioga.org/events/category/pioga-meetings
Industry EventsIOGAWV Sports Weekend
September 25-26, Lakeview Resort, Morgantown, WVhttps://iogawv.com/2015-sports-weekend-registration
WVONGA Fall Meeting & Centennial CelebrationSeptember 29-October 2, Oglebay Resort, Wheeling, WVInfo: www.wvonga.com/Attend/Fall2015
IOGANY 35th Annual MeetingOctober 21-22, Buffalo Marriott Niagara, Amherst, NYInfo: www.iogany.org/events.php
OOGA Technical Conference and Oilfield ExpoNovember 4-5, Pritchard Laughlin Center, Cambridge, OHInfo: www.ooga.org/events
IPAA Annual MeetingNovember 9-10, The Ritz-Carlton, New Orleans, LAInfo: hwww.ipaa.org/meetings-events
Calendar of Events
➤ More events: www.pioga.org