December 2015 • Issue 68The monthly newsletter of the Pennsylvania Independent Oil & Gas Association

(Continues on page 22)

(Continues on page 3)

Draft pipeline task force report includes almost 200 recommendationspermitting; employing construction methods that reduce environ-mental and community impacts; and developing long-term opera-tions and maintenance plans to ensure pipeline safety and integri-ty. The task force is to provide a final report to Governor TomWolf by February 2016 (July PIOGA Press, page 27).

As part of the process, the task force broke into 12 work-groups, with more than 100 other individuals involved. Each ofthese workgroups issued a series of recommendations for thedraft report, ranging from just a handful from some of the groupsto 69 from the Environmental Protection workgroup.

What follows is a bullet list of the recommendations fromeach workgroup. We hope that by publishing the full list, yourinterest is piqued to look into the full draft report, which includesa detailed description and rationale for each of the recommenda-tions. Many of the recommendations are aimed at gathering

Turzai introduces legislationenhancing natural gas use

House Speaker Mike Turzai has introduced legislationintended to boost downstream natural gas use and spureconomic growth. Nearly a third of the members of the

House of the Representatives have signed on as cosponsors ofHouse Bill 1731.

Turzai mentioned his proposed Keystone EnergyEnhancement Act when addressing PIOGA’s Eastern Oil & GasConference and Trade Show in October, emphasizing that heprefers to see Pennsylvania’s abundant natural gas result in eco-nomic growth—and with it, increased tax revenue—rather thanimposing a punitive severance tax.

The proposal would provide 10 years of tax breaks in areasknown as Keystone EnergyEnhancement Zones (KEEZ) to attractlarge-volume natural gas users tobrownfield sites. The bill would create20 of these zones, including up to fivein Philadelphia County, three inAllegheny County and the remainder inother counties, with a total of fourzones reserved for counties with popu-lations under 145,000.

Natural-gas-dependent businessesoperating in the zones would be eligiblefor 10 years of exemptions, credits, and

PIOGA takes steps to cut costs . . . . . . . . . . . 4Resources for PIOGA committee members . . 6Wastewater management update . . . . . . . . . . 9Connecting the dots . . . . . . . . . . . . . . . . . . . 12Federal regulatory agenda . . . . . . . . . . . . . . 12Draft OSHA management guidelines . . . . . . 16Educating leaders about pipelines . . . . . . . . 17PIOGA’s tax and accounting seminar. . . . . . 18Stay tuned for the Winter Meeting . . . . . . . . 18SPE Distinguished Lecturer series . . . . . . . . 18Employer liability exclusions . . . . . . . . . . . . . 19

Independent contractors and the ACA . . . . . 20Project aims at converting towboats . . . . . . . 20Pipeline task force op-ed . . . . . . . . . . . . . . . 23New PIOGA members . . . . . . . . . . . . . . . . . 27PIOGA Member News . . . . . . . . . . . . . . . . . 27Oil & Gas Trends. . . . . . . . . . . . . . . . . . . . . . 28October Spud Report . . . . . . . . . . . . . . . . . . 30Calendar of Events . . . . . . . . . . . . . . . . . . . . 31PIOGA contacts . . . . . . . . . . . . . . . . . . . . . . 31

The number of additional gas pipelines projected forPennsylvania in coming years was always impressive, andnow the number of proposals for how to manage them is

equally striking. So begins one news report describing the 335-page draft report by thePennsylvania PipelineInfrastructure Task Force,a 48-member committeeled by Department ofEnvironmental ProtectionSecretary John Quigley.Charged with developinga set of “best practices” toguide the build-out ofpipeline infrastructure inPennsylvania over thenext decade, the commit-tee’s draft report issued inmid-November containsno fewer than 184 recom-mendations.

PIOGA has expressedconcern that “best prac-tices” could easily becomenew and unnecessary reg-ulations and policies (seethe accompanying op-ed by Joyce Turkaly on page 23).

The task force is made up of representatives from state agen-cies, the legislature, federal and local governments, the pipelineand natural gas industries, environmental groups and other stake-holders. They were given the job of defining a series of bestpractices and recommendations for planning, siting and routingpipelines; amplifying and engaging in meaningful public partici-pation; maximizing opportunities for predictable and efficient

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Energy enhancement legislation: Continued from page 1

other breaks from state and local taxes starting in 2017.Additionally, such businesses would qualify for a tax credit of upto $1,250 for each full-time job created within the zone.

Potential zones would have to include a deteriorated propertyand have the space and infrastructure to support manufacturing,petrochemical or other downstream natural gas businesses. Thezones would also be evaluated for other factors, such as theirpotential to create jobs and assist an economically strugglingarea.

The proposal is modeled after the state’s Keystone Oppor -tunity Zone program, which promotes economic development inunderused areas by offering state and local tax breaks for compa-nies that locate there.

HB 1731 creates a seven-member Keystone Energy Authorityto oversee the program. The authority also would be responsible

for: • Facilitating the proliferation of transmission and distribution

pipelines for natural gas and natural gas liquids.• Coordinating and expediting all necessary permit and regu-

latory reviews required by KEEZ business participants.• Working cooperatively with industrial development agen-

cies, local authorities, the Department of Commerce andEconomic Development, the Department of EnvironmentalProtection, the Department of Revenue, the Pennsylvania PublicUtility Commission, and other agencies of the Commonwealth.

• Identifying barriers to the expansion of natural gas transmis-sion and distribution infrastructure and providing the governorand General Assembly its legislative and regulatory policy rec-ommendations.

Along with Turzai, 61 Republicans and Democrats havecosponsored the bill, which isassigned to the House CommerceCommittee. PIOGA strongly supports the legislation. ■

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Tough times for industry – PIOGA takes steps to reduce costsBy Gary SlagelChairman, PIOGA Board of Directors

2015 has been an extremely tough year on the natural gasindustry and 2016 is shaping up to be even more difficultfor the industry. PIOGA’s

Board of Directors was made keen-ly aware that what affects theindustry affects its members, andwhat affects its members affectsPIOGA’s bottom line. The impacton PIOGA’s conventional produc-ers has been devastating and theoverall decline in natural gas priceshas forced a drop in the number ofPIOGA members.

This malaise also has resulted ina drop in the revenues from events like PIOGA’s Eastern Oil &Gas Conference and Trade Show, the Winter Meeting, and ourPig Roast and Technical Conference. At the same time expenseshave increased, particularly the costs associated with legal chal-lenges and regulatory reviews and comments. At the end ofSeptember, the projected budget deficit for 2015 was estimatedto be in excess of $450,000. Even worse, two different budgetscenarios projected deficits for 2016 of $580,000 and $695,000.The former was based on a 15-percent decline in revenues over2015, the latter on a 25-percent decline.

While PIOGA’s cash balance remains relatively healthy—it is

in excess of $1.5 million—the board felt these projected deficitlevels were unsustainable for the association and requested thatsome steps be taken immediately to bring expenses more intoline with revenues. PIOGA President Lou D’Amico was taskedwith making the first round of potential cutbacks, and this wasfollowed by a review and additional input from the ExecutiveCommittee. Essentially, all line item expenses were vulnerable.

I’d like to report that by the middle of November significantprogress was made to identify and reduce current and projectedexpense items. With the limited time remaining in 2015, theexpenses for the balance of 2015 were reduced by more than$150,000 and the projected deficits for 2016 by more than$500,000 for the 15-percent scenario and over $520,000 for the25-percent scenario. Unfortunately, these reductions come atcost. While the board specifically mandated that the mission andcore values of PIOGA had to be maintained to the extent possi-ble, the board also wants PIOGA to emerge stronger and evenbetter able to address the needs of all segments of the industry once the market improves. To that end an even greater effort willbe placed on attracting more midstream and downstream mem-bers and emphasizing opportunities to promote more end-usedevelopment for natural gas.

In spite of the budget cuts, PIOGA will continue to stayengaged in Harrisburg on all legislative and regulatory matterscritical to our industry. Also, and to the extent funds supportdoing so, we will continue our public outreach and energy edu-cation efforts, although at a reduced level. Our PennsylvaniaEnergy Education Program (PEEP) will become a 501(c)(3) in2016 and will, hopefully, find outside sources of funding to con-tinue its efforts.

Other changes include capping our legal expenses and someof our regulatory-related expenses. Sponsorships and contribu-tions have been eliminated and office rental costs will be reducedby consolidating the office space on VIP Drive. Healthcare costswill be significantly reduced via a higher level of copayments bystaff, and staff raises and end-of-year bonuses have been elimi-nated. Staff has also been reduced by one. These cost reductionsare approaching 27 percent compared to our 2015 budget.

While we have perhaps assumed the worst, we are hoping forsomething less than the worst and we will continue to monitorand adjust as our revenues dictate. One measure to help on therevenue side will be a modest increase in dues for 2016. Whilethis has the potential to further discourage some from staying onmembers, we hope most will see the value of membership inPIOGA and commit to engaging in our efforts by staying or get-ting involved in our committee activities as reported on otherpages of this publication.

It is clear that in spite of the difficult times facing our indus-try, legislative and regulatory challenges will remain at a highlevel. Meeting these challenges will be a daunting task for anyindividual company and are best met through the collectiveefforts of our industry via PIOGA. Please feel free to reach outto staff or me or any board member if you have any questions,concerns or want to know how to get more involved.

PIOGA is a transparent association—our board meetings areopen to all members, as are our committees. We pride ourselvesin being quick to respond to any issue important to our industryand we value the input of our members. ■

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PIOGA’s ‘Member Only’committee portal pages:Are you using this resource?

Are you a member of the Environmental,Pipeline and Gas Market Development,Legislative or Safety Committee? Did

you know that your committee has its own dedi-cated committee portal page that contains manyresources to help you stay informed of the workof the committee and upcoming meetings?

Highlights of the committee portal pages:• Committee chair(s) information. See who

the committee chairs are and obtain direct con-tact information for them if you want to reachout and inform them of an issue you would likecovered by the committee or inform them of thevolunteer services you could provide to thecommittee.

• Group directory. On the committee portalpage on the left side, you can now access agroup directory and see who is on the commit-tee and also get contact information for mem-bers.

• Calendar. A listing of upcoming monthly meetings and anyother committee events.

• Photo gallery. Allows for photo sharing of relevant picturesfor the committee.

• Document library. The committee pages now have the abil-ity for file sharing, allowing members to access all committee

meeting materials (evenpast meetings) and otherresource materials. Thisarea also allows subcom-mittee leaders to postworking documents andother informativeresources for their sub-committee work.

• Group feed. Have aquestion for the commit-tee? Put it out on thegroup feed on the on thecommittee’s main portalpage. Those memberswho subscribe to thegroup feed will receiveyour comment or ques-tion and can reply. Also,in this area you can see a

list of the new PIOGA members who joined the committee.• New committee members alerts. Want to know who has

joined the committee? In your preferences area (in the manageprofile area) you can select Email me when someone joins agroup of which I am a member and the system will send you anemail with their name and contact information. If you are cur-rently receiving those alerts and do not want to receive them anylonger, simply uncheck this preference.

Want to join a committee? Simply click on Request a mem-bership on the committee webpage and we will add you to thecommittee you want to join. Once you join, you will have accessto the portal pages and all the resources mentioned above, aswell as receive notices of upcoming meetings.

We hope you’re taking advantage of all the great resourcesthat are on our committee portal pages. Please let us know if youhave any ideas on how we can enhance it further by emailingDanielle Boston at danielle@pioga.org. ■

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2015 oil and natural gaswastewater managementupdate

Wastewater management remains a significant challengefor conventional and unconventional oil and naturalgas producers in the Commonwealth. The recent slow-

down in the pace of new drilling is reducing opportunities forbeneficial reuse of produced fluid from operating wells.According to the Pennsylvania Department of EnvironmentalProtection’s oil and gas reporting website, exploration and pro-duction companies reported producing 45 million barrels offlowback and produced fluid in 2014, an increase of nearly 5million barrels from the amount reported in 2013. The increasein wastewater created by extraction highlights the importance ofseveral state and federal regulatory efforts that could affect thehandling and disposal of such material in 2016.

EPA proposed amendment to 40 CFR Part 435The U.S. Environmental Protection Agency regulates the

treatment of oil and natural gas wastewater at treatment facilitiesunder 40 CFR Parts 435 and 437. Historically, operators havedelivered brine and other wastewaters for treatment either to pub-licly owned treatment works (POTW) or to privately owned cen-tralized wastewater treatment (CWT) facilities. In 2011, DEPrequested that all Marcellus well operators in the Commonwealthstop sending brine and other oil and natural gas wastewaters toPOTWs. In April 2015, EPA proposed a rulemaking that wouldamend 40 CFR Part 435 to formally prohibit the discharge ofunconventional oil and natural gas wastewater to POTWs.1 Part435 sets effluent limitations and guidelines for the oil and naturalgas extraction point source category under the Clean Water Act.

The proposed rulemaking applies to unconventional oil andnatural gas wastewater generated through production, fieldexploration, drilling, well completion and well treatment opera-tions. It would not affect oil and natural gas wastewater generat-ed by conventional operations. In the preamble to the proposedrule, EPA states that it has not identified any unconventional oiland natural gas operators that currently discharge wastewater toPOTWs—meaning that the proposed rulemaking reflects currentindustry practice and will not affect unconventional operators.

EPA CWT study forthcomingIn the Final 2014 Effluent Guidelines Program Plan of July

2015, EPA announced the agency will be undertaking a detailedstudy of oil and natural gas wastewater, including all CWT facili-ties accepting such wastewater. There are federal effluent limita-tions guidelines in 40 CFR Part 437 that apply to CWTs general-ly. CWT facilities that accept oil and natural gas wastewaters canbe regulated under different subparts of this regulation, includingSubparts B (Oils Treatment and Recovery) and D (MultipleWastestreams).

The proposed study might prove controversial because EPAhas indicated it may gather data from oil and natural gas wastestreams not currently regulated by Part 437—including bothoperators that do not utilize CWT facilities as well as CWT facil-ities that do not discharge treated effluent—to determine if Part

437 should be expanded to be more compre-hensive. For example, in the Response toComments document accompanying theFinal 2014 Effluent Guidelines ProgramPlan, EPA specified that the study mayencompass conventional and unconventionaloperators, zero-discharge facilities, CWTfacilities regulated by Part 437, and CWTfacilities not regulated by Part 437.

Underground injection control updatesIn late 2014, EPA announced it is col-

lecting information from both Class IIDUnderground Injection Control (UIC) welloperators and primacy states. EPA has indi-cated that it intends to use the collectedinformation in decisions regarding UIC wellregulations, compliance and enforcementactions, funding determinations for state,tribal, and regional UIC programs, andexamining strategic and policyissues.

Several state and federal agen-cies have begun or continuedefforts to respond to allegationsthat injection wells can induce seismic events under certain con-ditions. In February 2015, EPA released “Minimizing andManaging Potential Impacts of Injection-Induced Seismicityfrom Class II Disposal Wells: Practical Approaches.” EPA notesin the report that Class IID wells “have been used to dispose ofoil and gas related wastes for decades with very few associatedseismic events” and that disposal wells “are one of a number ofhistoric causes” of induced seismicity, along with the construc-tion of dams and water reservoirs, mining activities, oil and gasproduction, and geothermal energy production. The report statesthat injection well operators can reduce a risk of seismic eventsthrough injection site assessment, well testing and well pressuremonitoring.2

In April 2015, the U.S. Geological Survey released “NewInsight on Ground Shaking from Man-Made Earthquakes,”which identifies 17 “induced seismicity zones”—includingAshtabula and Youngstown, Ohio.3 The report also suggests pre-liminary models for forecasting the frequency and severity ofinduced seismic events up to one year in advance.

Most recently, in September 2015, the Induced SeismicityWork Group of States First released “Potential Injection-InducedSeismicity Associated with Oil & Gas Development: A Primeron Technical and Regulatory Considerations Informing RiskManagement and Mitigation.”4 The primer included contributingauthors from both the Ohio Department of Natural Resourcesand the West Virginia Department of Environmental Protectionand assessed how regulatory authorities might evaluate suspectedcausation, conduct risk management and risk mitigation, andmanage permit conditions to reduce a risk of induced seismicityfrom injection wells.

Chapter 78/78a draft final rulemakingDEP’s August 2015 draft final rulemaking containing pro-

posed amendments to Chapter 78 (regulating conventional wells)and the proposed creation of Chapter 78a (regulating unconven-

Kevin J. Garber

Michael K. Reer

Authors:

Page 10 The PIOGA Press

tional wells) as proposed would impose significant additionalregulatory burdens for managing produced fluids. TheEnvironmental Quality Board is expected to meet to vote on theproposed rulemaking on February 3, 2016. If promulgated, thefollowing proposed subsections will likely have a significantimpact on how operators manage and dispose of oil and naturalgas wastewater.

Proposed §§ 78.56 and 78a.56 would prohibit the use of pitsin unconventional operations. Conventional operators would be

required to seekDEP approvalbefore commenc-ing constructionof a pit with afootprint greaterthan 300 squarefeet if the pit is tobe used duringthe servicing,plugging orrecompleting of awell.

Proposed §§78.57 and 78a.57would requireoperators to reg-ister the locationof new under-ground storagetanks before

installation. A monthly inspection requirement would apply tounconventional facilities and a quarterly inspection requirementwould apply to conventional facilities.

Proposed §§ 78.58 and 78a.58 would require operators to con-duct mixing, aerating and filtering operations within secondarycontainment systems. Additionally, the proposed regulationswould require that operators processing fluids or drill cuttingsgenerated by the development, drilling, stimulation, alteration,operation or plugging of oil and natural gas wells develop actionplans specifying procedures for monitoring for and responding toradioactive material produced by the treatment process.

Proposed §§ 78.59(b) and 78a.59(b) would rename “freshwa-ter impoundments” as “well development impoundments.” DEPhas indicated that the amendment will more clearly apply theregulations to both freshwater and mine-influenced water used inoil and natural gas operations. The proposed amendments wouldrequire that operators either upgrade or close well developmentimpoundments that do not comply with the new regulations with-in one year of their effective date.

Finally, proposed §§ 78.59(c) and 78a.59(c) would prohibitthe construction of new centralized impoundments and requirethe closure of existing centralized impoundments within threeyears of the effective date of the rulemaking. Alternatively, oper-ators would be allowed to re-permit existing centralizedimpoundments as residual waste disposal impoundments(through 25 Pa. Code § 289) upon approval of a closure plan andcompletion of all of the regulatory requirements that apply tosuch facilities. Those requirements may include one year ofgroundwater data (necessitating a subsurface investigation, wellinstallation, and one year of monitoring, evaluation and report-ing), minimum setback requirements, leak detection mechanisms,a dual liner system, fugitive air containment control measures,and an evaluation of the soils to be used for intermediate andfinal disposal cover.

ConclusionThese regulatory developments will continue into 2016. The pro-posed amendments to Part 435 will not affect operators who uti-lize CWT facilities to treat waste streams in the Commonwealth.However, operators and CWT facilities should follow EPA’sstudy of the scope of Part 437 because it may spur additionalfederal regulations that could directly affect the conventional andunconventional industries. Likewise, state and federal efforts tostudy induced seismicity may have implications for both produc-ers and the disposal industry. Finally, DEP’s significant modifi-cations to the Commonwealth’s oil and natural gas well regula-tions will undoubtedly have a significant effect on how oil andnatural gas wastewater is stored and treated, particularly regard-ing the use of centralized impoundments. ■

1 80 Fed. Reg. 18557 (Apr. 7, 2015). 2 Minimizing and Managing Potential Impacts of Inject-Induced Seismicity fromClass II Disposal Wells: Practical Approaches, U.S. Envtl Prot. Agency (2015).3 New Insight on Ground Shaking from Man-Made Earthquakes, U.S. GeologicalSurvey (2015) available at www.usgs.gov/newsroom/article.asp?ID=4202&from=rss#.ViTQ936rRpg.4 Potential Injection-Induced Seismicity Associated with Oil & Gas Development:A Primer on Technical and Regulatory Considerations Informing RiskManagement and Mitigation, Groundwater Prot. Council (2015) available atwww.gwpc.org/sites/default/files/finalprimerweb.pdf. MEMBER

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By Law360

The semiannual regulatory agenda unveiledNovember 20by the Obama administration takesdead aim at the oil and gas sector, as federal agen-

cies look to finalize rules next year that reduce methaneemissions and gas venting and flaring from drilling oper-ations, as well as establish new drilling wastewater treat-ment requirements.

The U.S. Environmental Protection Agency expects to final-ize its rule clamping down on methane emissions from new andmodified sources—including hydraulically fractured wells—byJune 2016. It’s the linchpin of the Obama administration’s planto reduce methane emissions from the oil and gas sector by 40to 45 percent from 2012 levels by 2025.

Under the rule proposed in August, oil and gas companieswill have to find and repair leaks, capture gas from the comple-tion of fracked wells, limit emissions from new and modifiedpneumatic pumps, and limit emissions from several types ofequipment used at gas transmission compressor stations,including compressors and pneumatic controllers.

The EPA’s proposal would also require that industry reducevolatile organic compounds and methane emissions fromhydraulically fracked and re-fracked oil wells, which theagency said can contain significant amounts of natural gasalong with oil. The proposed rule also means methane andVOC reductions downstream from wells and production sites,covering equipment in the natural gas transmission segment ofthe industry that was not previously regulated.

The agency will also in June 2016 clarify its Clean Air Actpermitting requirements for the oil and gas sector as to the defi-nition of “adjacent” sources of pollution, because the termcould be used to group pieces of oil and gas infrastructuretogether to qualify them as a source subject to the EPA’sPrevention of Significant Deterioration and Title V permittingprogram.

The EPA is proposing two definitions: a preferred one whereequipment or activities would be considered adjacent if they’relocated on the same site or sites within a quarter-mile of each

other, and another which would also take function into account,such as being connected by a pipeline.

Meanwhile, the U.S. Department of the Interior’s Bureau ofLand Management expects to finalize rules that would reduceventing and flaring from gas wells on public lands by August2016.

The looming oil and gas regulations aren’t limited to emis-sions control. The EPA expects to finalize pretreatment stan-dards under the Clean Water Act for wastewater dischargesfrom oil and gas drilling operations by August 2016. Offshore,the DOI’s Bureau of Safety and Environmental Enforcementexpects to finalize tighter standards for blowout prevention sys-tems and other well controls for offshore drillers in January2016, building on recommendations in the wake of the 2010Deepwater Horizon disaster, in which the offshore rig’sblowout preventer failed to stop an explosion that killed 11 rigworkers and spewed millions of barrels of oil into the Gulf ofMexico.

And the U.S. Department of Transportation’s Pipeline andHazardous Materials Safety Administration will propose rulesin 2016 requiring comprehensive spill response plans for oil-carrying trains, as well as automatic shutoff valves and otherrupture response mechanisms for gas and hazardous liquidstransmission pipelines.

While there’s no regulation that carries the scope of therecently released Clean Power Plan on the regulatory horizonnext year, the Obama administration will take further steps toclamp down on emissions from the power sector. In August2016, the EPA expects to finalize the incorporation of the 2008national ozone standards into its recently resurrected cross-stateair pollution rule, requiring several upwind U.S. states toreduce nitrogen oxide emissions from power plants that travelto downwind states that currently aren’t meeting those ozonestandards.

The agency will also reissue its rule limiting mercury andother toxic emissions from power plants nixed by the U.S.Supreme Court in June, complete with a cost-benefit analysisthat the high court said the agency had to perform.

Regulators have oil, gas sector in their sights in 2016

Connecting the dots onnatural gas marketdevelopmentBy Joyce TurkalyDirector, Natural Gas Market Development

You probably remember the definition of segment versusline from geometry class. The first is finite while the sec-ond is infinite. Just three short years ago, the promise of

downstream markets for natural gas and natural gas liquids slatedfor export, power generation, petrochemical and plastics manu-facturing, alternative-fueled vehicles—both heavy- and light-duty—and associated infrastructure was infinite. With time to

reflect on what factors have impeded market success and adop-tion, we now know that things like the state budget impasse, fed-eral government application review delays, declining oil prices,overreaching legislation combined with lack of a federal com-pass on energy policy and economic factors that we witnessed inthis year have not only stalled projects but have cost thousandsof jobs in the oil and gas industry.

The federal government never intended to get in the way: Ifyou look at the federal analysis of our energy supply and the out-come from the Quadrennial Energy Review (QER) all wouldindicate that our federal government is on board with next stepsas far as infrastructure needs. Compared to the initial numbers Itrack across all market segments, by way of initial interest,secured investment and permit approval, the number of bothlarge and small projects is now more finite. In areas where local,state and federal government has provided clear market signals,

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projects will continue tothrive. The decline in oilprices aside, alternative fuel-ing and fleet transportationmarket, although currentlythe lowest demand segmentby overall percentage of thedemand pie, is slowly butsurely gaining in marketshare. Larger companies suchas Wal-Mart, UPS, FedEx,Giant Eagle, UPMC andWaste Management, to name a few, have been and will continueto offset their carbon footprints by purchasing CNG and LNGtractors to assist with their companies “green” goals and initia-tives. Even at current fuel pricing, fleet operators are still savingthousands of dollars each month. In some cases, vendors areawarding transportation contracts based on having a “green”fleet—any competitive edge to market adoption now will be abenefit to producers in the long run.

Although the enthusiasm compared at the onset has curbed abit to date, the projects that remain have been elevated as themost viable and worthy of significant investment in the regionand surrounding Appalachian states, where natural gas and liq-uids from the Marcellus region will be the primary fuel or feed-stock.

Why is it important for producers to understand how the natu-ral gas and liquids they produce at the wellhead are utilizeddownstream?

For one, let’s talk about tangible products—you can argue that

you cannot see, feel or touchnatural gas, but you have tocontain it in order to measure, itso you know how much you areproducing and consequentlyhow to invoice the buyer.Hypothetically speaking, whosells a product, whether that’sthrough extraction, growing ormanufacturing, without know-ing where it’s being deliveredand who is using it? For purpos-

es of this piece, let’s take the midstream processing and gather-ing out of the discussion and jump right to the end-user of natu-ral gas and natural gas liquids. The past five years have toutedthe excitement of all the benefits of domestically produced ener-gy can support. The U.S. Energy Information Administrationreports Pennsylvania as a net exporting state and the MarcellusShale region a producing region. Did we all set our clocks to cel-ebrate this? Did anyone have a backyard BBQ to celebrate this?Looking back on it, we probably should have to a greater degree;if for no other reason than to help educate the public and ourneighbors on what this means for energy dependence. As anindustry, we tend to fly below the radar on significant mile-stones; this in my career, being one. As you are probably aware,the largest downstream sector of will be electric generation.

We talk to a great degree about “PJM interconnection” in ourPipeline and Gas Market Development committee meetings. Ifyou are not familiar by now, PJM is a regional transmissionorganization (RTO) that coordinates the movement of wholesale

Page 14 The PIOGA Press

electricity. They are not a corporation of any sort; rather an“overseer” of a centralized wholesale market maintaining highvoltage wires within a 13-state footprint including Washington,D.C. PJM Interconnection is responsible for three interdependentareas of focus: regional planning, capacity market auctions, andoverall reliability and security of the electric grid.

This type of centralized market design is thought to be a bet-ter way to manage in aggregate, by way of overall cost savingsfrom operational efficiencies coordinated at the RTO than if eachindividual electric utility operated on its own. PJM’s history canbe found on its website, www.pjm.com. While PJM was aggre-gating or growing its “footprint” in the 1990s, the natural gasindustry was doing the exact opposite. Federal EnergyRegulatory Commission (FERC) Order 636, as many of youknow, provided the impetus for the unbundling of the natural gasutility merchant function in order to promote competition. Oddlyenough, as the natural gas industry was deregulating and shed-ding what was viewed as stranded or bundled assets, FERCencouraged the electric industry to do quite the opposite—toform these RTOs from a multi-state approach. Generators ofelectricity (regardless of the fuel type) bid into markets and com-mit their load in the daily market or the day-ahead market; con-versely, unless you are a producer selling into a pool, you aremost likely selling at the meter and some third party is managingyour imbalances. Generators are told when to run and are toldwhen to back off because of the 60 seconds per hertz system—all this orchestrated by the RTO. There are units that run as base-load plants, typically year-round, and units that run only as need-ed, called peaking units.

The good news for producers going forward is that more natu-ral gas combined cycle plants have cleared the PJM capacitymarkets, mostly due to the retirement of some older coal-firedplants combined with the Supreme Court’s Mercury and AirToxic Standards (MATS) ruling. Combined cycle plants are usu-ally served by a transmission line capable of delivering largequantities of natural gas per day. Natural gas is currently thedominant fuel as recognized by the CEOs of both PJM and ISONew England; natural gas represents more than 50 percent, orthe majority portion, of electric generation needs for both ofthese RTOs and possibly NYISO, given the fuel switch from oil;satisfying a future energy reliability concern on the Northeastelectrical grid systems. What appears to be the longer termdownside for this type of market design is that the CEO of PJMstated that the historical trend was for one fuel to dominate themarket for a 10-year time frame. So given his remarks at a June2015 event I attended, will natural gas generation be sustainableafter year 10? PIOGA’s Pipeline and Natural Gas MarketingCommittee continues to monitor any market rules that wouldappear unfavorable toward natural gas in this sector as well asothers. Reliability of the electric grid is of great concern to allAmerican consumers. When used in power generation, naturalgas is a clear winner given that it produces far less carbon andsmog forming nitrogen oxides when compared with alternatives,emitting virtually no sulfur dioxide, particulate matter and mer-cury. As we see in the alternative vehicle market, any technologythat helps in cleaning the air is a big deal. I have witnessed theinterest in certain market segments ebb and flow throughout2015 alone. 2016 will undoubtedly arrive with many of the samechallenges—we have to remain diligent in our focus next yearmore than ever.

PIOGA participation is away for our members to stayeducated on downstreaminvestment opportunities—anyone in a business devel-opment role will refer tobeing an expert at “connect-ing the dots.” I’m going tojump outside of Pennsylvaniato say that West Virginia isdoing a great job by way ofpulling together variousstakeholder groups to providea business friendly environ-ment. This was evident fromthe Tri-State Shale Summit Iattended in Morgantown,West Virginia, in October. Onhand were coalitions, if youwill, who had tables along-side the meeting rooms, eachwith commonly themed mar-keting literature in support ofdownstream development.

There was a buzz of excitement at this event where you justknow the planning has been given serious attention. Given thecompetition to attract petrochemical facilities and plastic manu-facturers, the Appalachian states all agree that a more coordinat-ed effort between the three states is needed in order to re-shoreU.S. manufacturing.

It is most evident that the governors of each state must leadwith the help of local and county economic development plan-ners and township supervisors, all who wish to bring manufac-turing and jobs to their communities. Excerpted from a two-minute audio speech, here is what Governor Wolf said regardingthis collaborative effort to work with the governors of Ohio andWest Virginia: “Working as one region we can maximize oppor-tunities to develop shale gas and liquids that increases the valueof the resources for our states and all of our constituents.“ On thepoint of workforce training, he said, “Here in Pennsylvania I pro-pose to expand investments in education across the board andespecially increase money for trusted and proven job training andworkforce development initiatives.” Governor Wolf went on tostress, “We must support new and expanded infrastructure tomove natural gas and natural gas liquids in a safe and environ-mentally sound manner from the source of their extraction to endusers and new markets; this is critical to the long-term prosperityof the region. In Pennsylvania I have established a PipelineInfrastructure Task Force to ensure we are maximizing the trans-portation of natural gas while minimizing the environmentalimpact.”

Let’s face it, all the pomp and circumstance to say “let’s worktogether” boils down to putting words into action. Politics aside,we must take up our pencils or keypads to connect the dots thatothers fail to see by holding our state and federal officialsaccountable when obstacles are created instead of markets. Wecan only hope that our mission as PIOGA influences others atthe FERC, Department of Energy and state government to cometo realize that we all have to be accountable to each other for oursuccesses locally and nationally. ■

December 2015 Page 15

Energy andNatural Resources

Page 16 The PIOGA Press

Safety Committee CornerSafety Committee CornerOSHA releases draft Safetyand Health ProgramManagement GuidelinesBy Daniel W. WolffCrowell & Moring LLP

On November 16, the Occupational Health and SafetyAdministration (OSHA) released in draft the first revi-sion to its Safety and Health Program Management

Guidelines in over 25 years. The draft revised guidelines, origi-nally published in 1989, incorporate lessons learned and bestpractices from existing OSHA programs and similar industry andinternational initiatives and also reflect modern technology andpractices. According to OSHA’s website on the draft revisedguidelines, they incorporate, among other things, a more proac-tive approach to “finding and fixing hazards before they causeinjury, illness or death,” “improved safety and health in all typesof workplaces,” “increased worker involvement,” and “bettercommunication and coordination on multi-employer worksites.”

Although OSHA considers its guidelines applicable in anyworkplace, the agency’s primary focus with them is on small andmedium-sized businesses. Of note, OSHA has invited publiccomment on its draft guidelines; the deadline is February 15,2016.

Key provisionsThe revised guidelines include seven “core elements:”• Management leadership• Worker participation• Hazard identification and assessment• Hazard prevention and control• Education and training• Program evaluation and improvement• Coordination and communication on multiemployer work-

sitesEach core element is then subdivided into concrete “action

items” and guidance on how to accomplish them, includingcross-references to OSHA-developed compliance tools and rele-vant OSHA requirements. Set out below is a non-exhaustive listof central provisions of these core elements.

Management leadership. Key provisions of this core elementinclude (1) establishing a written policy describing the organiza-tion’s commitment to safety and health and communicating thepolicy broadly to all workers and relevant stakeholders, (2) man-

agement allocation of the resources required to plan and budgetfor safety and health program implementation, and (3) enhancedcommunication with respect to specific goals and objectives ofthe program as well as the roles and responsibilities of account-able individuals.

Worker participation. Key provisions include (1) establish-ing a process for the prompt reporting of safety and health issuesand concerns, (2) incentivizing participation in the safety andhealth program, (3) involving workers at every step of the pro-gram from soup to nuts (and removing barriers to participation),and (4) providing access to safety and health information. Therevised guidelines broadly define a “worker” to include “allworkers, including contractors, subcontractors, and temporarystaffing agency workers.”

Hazard identification and assessment. Key provisionsinclude (1) collecting existing information about workplace haz-ards (many of which involve culling documents required by oravailable under other OSHA regulations), (2) comprehensivelyinspecting the workplace, (3) conducting robust incident investi-gations, (4) anticipating and preparing for emergency scenarios,and (5) evaluating and prioritizing identified hazards.

Hazard Prevention and control. Key provisions include (1)identifying options for controlling identified hazards, (2) select-ing controls with an eye to eliminating the hazards they address(including the use of interim controls and a combination of con-trols as appropriate), (3) developing and updating a hazard con-trol plan, (4) selecting hazard controls to protect workers duringnon-routine operations and emergencies, (5) implementing haz-ard control measures (including using a “worst-first” approach toallocating limited resources), and (6) confirming the effective-ness of those controls.

Education and training. Key provisions include (1) provid-ing program awareness training to all workers (broadly definedto include all managers, supervisors, workers, contractors, sub-contractors and temporary agency workers), (2) conducting role-specific training for all workers, and (3) conducting training onhazard identification and controls.

Program evaluation and improvement. Key provisionsinclude (1) monitoring performance and progress (includingtracking a variety of different kinds of indicators and sharingresults with workers), (2) verifying the program is implementedand is operating in accordance with OSHA’s recommended coreelements, and (3) promptly correcting program deficiencies andidentifying opportunities for improvement.

Coordination and communication on multiemployer work-sites. Key provisions include each of the above core elementswith an emphasis on addressing the unique challenges that mayarise in multiemployer environments, including (1) clarifyingeach employer’s roles and responsibilities with respect to safetyand health, (2) providing the same information relating to safetyand health to all workers on a particular site, regardless ofemployer, (3) providing for additional measures to ensure haz-ards are identified and assessed, (4) ensuring the host employerand contractor, subcontractor or temporary staffing agency arefamiliar with each other’s hazard control plan and understandtheir respective responsibilities, (5) providing comparable educa-

February 2014 Page 17December 2015 Page 17

tion and training to temporary and contract workers as to perma-nent workers, and (6) ensuring sufficient program evaluation andimprovement, including participation by all employers and theirworkers.

ToolsThe draft revised guidelines have substantial breadth and

depth. Employers should review them and consider submittingcomments to inform the agency of differing perspectives andexperiences relevant to any aspect of the core elements. OSHAand the Department of Labor have provided a number of tools toassist regulated entities in assessing the draft revised guidelinesand providing informed feedback:

• Appendix A (Implementation Tools and Resources) to thedraft revised guidelines includes references to existing tools forregulated entities as well as a list of future tools, including achecklist that employers may use to track implementation of thevarious action items in the guidelines, a self-evaluation question-

naire, an audit tool, model programs, model training programsand case studies.

• Appendix B (Relationship of Guidelines to Existing OSHAStandards) to the revised guidelines describes (1) how regulatedentities may already be implementing the core elements of therevised guidelines (incidental to efforts to comply with relevantOSHA standards) and (2) ways in which the guidelines can helpregulated entities comply with existing standards.

•The draft guidelines and additional information are availableat www.osha.gov/shpmguidelines.

Comment periodOSHA has invited public comments for 90 days through

February 15, 2016 on the revised guidelines. Public commentsmay be submitted at www.regulations.gov on Docket #: OSHA-2015-0018. ■

By Daniel GarciaLeech Tishman

The Public Relations Subcommitteeof PIOGA’s Pipeline and GasMarket Development Committee on

November 13 held its first program, enti-tled “So There’s a Pipeline Coming toYour Community.” The event took place atDrake Well Museum in Titusville with anaudience made up of community leaders,economic development councils, two statesenators, one state representative and sev-eral individuals from National Fuel Gas.This was a well-received program and wewere presented with some great questionsfrom the audience.

One question posed by SenatorMichele Brooks was regarding shipment ofour natural gas overseas or to otherregions. She stated that a common objec-tion her office receives is that much of theresource is harvested in Pennsylvania, butthe benefit is realized elsewhere. Shewould like to respond to these objectionsbut will need some help doing so. We pro-vided her with some information andpledged to follow up with more data.

Another concern brought up was regarding workforce devel-opment in the area. There is an interest in creating a trainingschool for pipeline and facilities inspectors, welders, and otherlaborers, and the economic development council is looking fordirection from the industry on what kind of jobs will becomeavailable in the next three to five years. This could be anothergreat area of common interest between PIOGA and these eco-nomic development councils.

Don Sprouse of Superior Appalachian Pipeline also presentedand did a great job addressing the industry perspective on devel-opment and our approach to safety and environmental protection.

We were pleased with this inaugural effort and likely will betaking the program on the road in areas of the state wherepipeline expansion projects are occurring or will be in the nearfuture. ■

‘So There’s a Pipeline Coming to Your Community’

Dan Garcia, leader of PIOGA’s Public Relations Subcommittee, addresses the groupabout pipeline issues at Drake Well Museum.

Page 18 The PIOGA Press

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On November 17, more than 25 people attended the annualoil and gas tax and accounting seminar sponsored byPIOGA’s Tax Committee and member company Arnett

Carbis Toothman, PLLC.This year’s seminar covered all the federal, state and local

taxes that impact the Pennsylvania oil and gas industry.Participants were able to interact with each other and the ArnettCarbis Toothman associates about specific tax topics and relateto current happenings in the industry and the impacts to theirbusinesses. Planning was definitely emphasized this year, asmany companies are struggling with the depressed commoditymarket and tight budgets. Additionally this year, cybersecurityand Department of Labor compliance were discussed.

PIOGA’s 2015 oil and gas tax and accounting seminarTax Committee Chairman Don Nestor from Arnett Carbis

Toothman was the lead presenter of the seminar and was joinedby Charlene Tenney, Ryan Nestor, Kevin Highlander and MarlinWitt.

Participants left equipped with resources that included easyaccess to data including general industry information such as adetailed glossary of industry terms and a listing of geologicalformations where gas and oil are produced and other usefulindustry material.

PIOGA extends a sincere thank-you to the team from ArnettCarbis Toothman, PLLC for all their efforts to hold this annualprogram and to provide this valuable educational information toPIOGA members and guests. ■

SPE Distinguished Lecturer series

Penn College in Williamsport is hosting the next Twin Tiers -Society of Petroleum Engineers Distinguished Lecturer series

on Tuesday, January 19, at its Professional Development Center.The guest lecturer is Jason Pitcher, who will be presenting on“Increasing Production with Better Well Placement inUnconventional Shale Reservoirs—Challenges and Solutions.”

The noontime lecture is open to members of SPE and the pub-lic, with a fee of $20 for SPE members and $25 for nonmem-bers. For registration information and other details, visit theEvents page at www.pioga.org. ■

PIOGA’s 2016Winter Meeting

New venueFebruary date to be announced

Watch for details soon

February 2014 Page 19December 2015 Page 19

Pennsylvania Supreme Courtrules against insurers onemployer liability exclusions

The Pennsylvania Supreme Court recently ruled againstinsurers on an insurance coverage issue that frequentlyarises in the oil and gas sector. In Mutual Benefit

Insurance Company v. Politsopoulos,1 the Supreme Court heldthat an employer’s liability exclusion, which precludes coveragefor liability for bodily injury to an employee of “the insured,” didnot bar coverage for claims brought by an employee of thenamed insured (i.e., the company that purchased the policy)against an additional insured. Before this ruling, insurers wouldoften point to a decades-old Pennsylvania Supreme Court deci-sion (PMA v. AETNA2) to deny coverage under these circum-stances. The Politsopoulos decision is good news for any oil andgas company that relies on additional insured provisions as partof its risk management strategy.

Many oil and gas companies use master service agreementsthat include reciprocal indemnity provisions under which eachparty agrees to indemnify the other for liability arising out ofbodily injury to it own employees. These indemnity provisionsare often supported by insurance provisions that require eachparty to obtain liability insurance and name the other party as anadditional insured under those policies. Together, these provi-sions allocate risk between the parties and provide insurance forthat allocation of risk. If an employee of either party is injuredon the job and sues the other party, his or her employer’s insur-ance policy should provide coverage to the other party as anadditional insured (provided the insurance policy at issueincludes an appropriate additional insured endorsement).

In Pennsylvania, however, insurers often denied coverageunder these circumstances by relying on the employer’s liabilityexclusion found in most commercial general liability insurancepolicies. The employer’s liability exclusion precludes coveragefor liability for bodily injury to an employee of “the insured.”This exclusion makes sense if it is interpreted to preclude cover-age for claims made by employees against their employers, butinsurers argued that it also applied to claims made by employeesof the named insured against an additional insured (or viceversa).

In making this argument, insurers typically relied on adecades-old Pennsylvania Supreme Court decision that arguablyapplied under these circumstances. In PMA, the PennsylvaniaSupreme Court held that an employer’s liability exclusion barred

coverage for a claim brought by an employ-ee of the named insured against a companythat was insured under an “omnibus” clausein the policy. The Supreme Court reachedthis decision despite the existence of a “sev-erability of interests” provision that wassimilar (though not identical) to the “separa-tion of insureds” provision found in manypolicies today, which generally provides thatthe policy should be applied separately toeach insured. At least two lowerPennsylvania court decisions distin-guished PMA, but some federal courtscontinued to rely on PMA to rule infavor of insurers on this issue.

The Pennsylvania Supreme Court decided to revisit the issuewhen it agreed to hear Politsopoulos. In Politsopoulos, a restau-rant employee filed a negligence action against two propertyowners who were additional insureds under the restaurant’s lia-bility policy. The property owners sought defense and indemnifi-cation from the restaurant’s insurer, but the insurer denied cover-age, citing the policy’s employer’s liability exclusion. The trialcourt judge reluctantly concluded that PMA controlled. TheSuperior Court reversed the trial court’s decision and theSupreme Court agreed to hear the appeal. The Supreme Courtconcluded that the standard employer’s liability exclusion wasambiguous and, applying the rule of contract interpretation thatambiguities are construed against the drafter, ruled against theinsurer. In reaching this decision, the Supreme Court focused onthe fact that the exclusion referred to liability for bodily injury toan employee of “the insured” as opposed to “any insured.” Inshort, the Supreme Court ruled that “the insured” may be reason-ably interpreted to mean the particular insured against whom theclaim is asserted. In reaching this decision, the Supreme Court broughtPennsylvania in line with most other jurisdictions that have inter-preted the employer’s liability exclusion in this context. ThePolitsopoulos decision should mean that insurers can no longerrely on PMA to deny coverage, but policyholders (and additionalinsureds) should carefully review the employer’s liability exclu-sion in any future policies because insurers may try to draft newpolicy language to get around the decision. ■

1 No. 60 MAP 2014 (Pa. May 26, 2015).2 Pa. Manufacturers’ Assoc. Ins. Co. v. AETNA Cas. & Sur. Ins. Co., 426 Pa. 453,233 A.2d 548 (1967).

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Independent contractorsand the Affordable Care Act:Can you stand the penalty?By Adrianne ViguerasECBM Insurance Brokers

Independent contractors in the transportation industry helpkeep many product lifelines flowing across the country. Thereare hundreds of thousands of independent contractors (ICs) in

the transportation industry, including those serving the oil andgas industry. In their roles as ICs they provide their own medicalcoverage.

Voluntary benefits for ICs are nothing new. Many benefitssuch as medical indemnity, life, disability, dental, vision, etc.,have been available for quite some time. Major medical was acoverage that was never available at an affordable price.Therefore, enrollment rates for these programs have been mini-mal. ICs either enrolled under a spouse’s work-related programor simply did not purchase any of those particular coverages.

The Affordable Care Act (ACA) has now become a gamechanger. As you may or may not know, under the law, qualifiedmedical coverage must be purchased or penalties will beassessed. 29 million people do not have health insurance. Thepenalties they are subject to in 2015 are $665 or 2.5 percent ofhousehold income. For a driver making $50,000 that penaltyworks out to be $1,250. It will continue to grow in the future.

The Environmental Protection Agency (EPA) instituted newair emissions requirements for marine vessels operating inthe United States. Owners of our nation’s aging inland

waterway fleets must now make the financial decision to retrofit,convert or retire their diesel-powered vessels to meet the newEPA guidelines.

In response, the Pittsburgh Region Clean Cities (PRCC)developed Clean Fuels/Clean Rivers, a non-profit consortiumfocused on building an innovative natural gas marine corridorthat extends from the Morgantown, West Virginia, area, throughPennsylvania, and down the Ohio River.

The consortium’s ultimate goal is to expand the use of naturalgas as a replacement for diesel fuel for the inland waterway sys-tem, a river network that encompasses nearly 12,000 miles ofnavigable waters. Natural gas offers marine operators a cleaner-burning alternative with significant reductions in particulate mat-ter and greenhouse gas emissions, while also eliminating dieseldischarges into the water. This expansion of natural gas usagenot only benefits the environment, it also spurs on economicdevelopment in the Appalachia region by increasing the use ofgas produced in the Marcellus/Utica region.

The PRCC team is capitalizing on the opportunity presentedby the low-cost, readily available supply of natural gas bylaunching a demonstration project to retrofit a marine vessel tonatural gas. Bolstering the project is a $730,000 grant from U.S.Maritime Administration. The project’s focus is to educate and

encourage marine operators to be innovative and convert/retrofitvessels, which in turn allows them to meet the new EPA emis-sion requirements while also reducing environmental impact toour inland waterways.

There is already a global movement toward conversion of fer-ries and similar vessels to compressed natural gas (CNG) andliquefied natural gas (LNG), particularly for vessels operating inenvironmentally sensitive areas. The PRCC initiative in theAppalachia region may be the first such inland waterway effortin the United States.

The demonstration project could not have come at a bettertime. For the last year, the PRCC and Port of Pittsburgh havebeen studying the feasibility of a regional natural gas marinehighway. One of the study results reveal there are more than 500inland towing vessels operating in the region; these include bothregional and non-regional towboat operators. There are 261regional towboats operating in the Pittsburgh area, almost two-thirds of which are in the harbor vessels category with less than1,200 horsepower.

While there are larger mid-range and long-range line haultowboats also operating on the waterways, it is obvious that tomake a significant difference, the key is to develop a cost-effec-tive method of converting the smaller harbor towboats to naturalgas.

There are design challenges associated with converting thesmaller harbor towboats that abound in the Appalachia region.

The past tax season has jolted ICs into realty. ICs realized thatthey are definitely being assessed a penalty if they fail to procurecoverage. It is important for companies to keep their drivers inorder to respond to the burgeoning amount of product that movesevery day. ICs are asking for help to avoid this tax and to findout if they qualify for a subsidy. Interest in obtaining ACA-com-pliant coverage has skyrocketed. In fact, interest in the full arrayof voluntary benefits has peaked.

There are specialized programs that will reach out to guidethe independent contractor through the ACA maze. Services pro-vided include:

• Meet with the IC in person or on the phone to guide them. • Answer any questions regarding tax avoidance.• Determine if the IC qualifies for a premium subsidy.• Assist the IC in enrollment in an ACA-compliant program,

either from the public sector or government private exchange.• Educate the IC on other voluntary benefits offerings such as

the ones mentioned above.• A specialist will do all administration, enrollment, claims

advocacy and program changes• The IC is responsible for all premiums for coverages pur-

chased.This is a solution to a problem that will compound in the

future. The faster this is addressed the less painful it will be. ■

For more information on this topic, contact Adrianne Vigueras at610-668-7100.

Project aims to reduce emissions by converting towboats to LNG

February 2014 Page 21December 2015 Page 21

This demonstration will help innovate and develop scaled tech-nology solutions for smaller vessel operations to benefit regionaloperators, all within regulatory requirements. It will also help toanswer key operational questions essential for natural gas con-version, especially for small-scale development.

The actual project will consist of converting a dual-engineharbor towboat to LNG. All necessary fueling infrastructures willbe in place and applicable regulations followed. Throughout theproject, conversion performance and evaluation points will bepublicized, and educational outreach to vessel operators andother key stakeholders will take place. Finally, at the end of thedemonstration, the team will publish a detailed report that willassist marine operators with making decisions necessary to meetthe EPA emissions mandates. The entire demonstration projectfrom acquisition of permits, to physical retrofit and vessel opera-tion, will be approximately 24 months.

In addition to meeting EPA emissions standards and providinga cost-effective fuel alternative to marine operators, the demon-stration project is anticipated to create economic developmentopportunities in the region. The siting of LNG production andrefueling infrastructure along the riverfronts opens new marketsfor the growing supply of shale gas. Along with job creation,potential economic benefits include such things as conversions ofadjacent diesel-powered dray equipment (cranes, conveyors, etc.)and over-the-road vehicles; expansion of rail lines that serve thedocks and multimodal systems; power generation along thewaterways, including dual fuel at existing coal-fired plants andutilization of LNG for peak shaving periods; LNG reinjectionand revaporization into rural distribution systems by utilities forheat/power at 100 percent pure methane versus 95 percentmethane on most pipeline quality gas; conversions of natural gasto clean diesel (otherwise known as gas to liquids, or GTL) thatdoes not require retrofit of existing engines and new refuelinginfrastructure; cracker plants that make ethylene pellets fromethane in wet gas production for numerous chemicals, plasticsand downstream applications that are half the cost and muchcleaner than conventional refineries processing crude oil as thefeedstock; and conversion of drilling rigs, earthmoving equip-ment, mobile water treatment and “yellow iron” equipment.

However, conversion from diesel to natural gas is not astraightforward process and requires the collaboration of multi-

ple entities such as natural gas producers,fuel distributors and retailers, engine man-ufacturers, fuel storage vessels, motor-gen-erator sets, and vessel owners and opera-tors. Conversions also require close coor-dination with and adherence to local, state,and federal regulatory requirements andsignificant investment on the part of all ofthe participants. However, the return oninvestment could be swift, especially witha projected fuel cost savings of 50 percentor greater for vessel operators.

PIOGA’s Pipeline and Gas MarketDevelopment Committee and itsCNG/LNG Alternative Fueling andInfrastructure Subcommittee are activelysupporting the project. One subcommitteemember, Lutitia Clipper of ClipperEnterprises LLC, is the demonstration

project team manager.“This is a tremendous opportunity for the Pittsburgh Region

and the entire Ohio River community, the heart of the Marcellusand Utica Shale plays, to demonstrate this innovative applicationfor natural gas,” said Dr. Clipper.

Additionally, PIOGA member UGI Energy Services will beresponsible for providing the LNG used to fuel the newly con-verted vessel and provide technical advice on the design of theconversion system and development of the bunkering operationand procedure.

For more, visit www.cleanfuelscleanrivers.com. ■

Page 22 The PIOGA Press

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Northeast Oil & Gas AwardsEngineering Company of the Year

pipelines as well as transmission lines. Go to www.dep.pa.gov, then choose the Pipeline Infra -

structure Task Force link under the Top Pages list on the home-page. Information about offering comments to the draft reportcan be found at the end of this article.

Agriculture• Educate Landowners on Pipeline Development Issues• Build a GIS Database of Pennsylvania’s Farms• Develop a Best Practices Manual for Pipeline Development on

Agricultural Operations

Conservation and Natural Resources• Communicate Pipeline Development Conservation Practices to

the Public• Develop Public Access to Pipeline GIS Information• Use a Landscape Approach for Planning and Siting Right-of-

Way Corridors• Give Special Consideration to Protected/Designated Lands in

Pipeline Siting• Mitigate the Loss of Public Use of Public Lands Resulting

from Pipeline Development• Avoid Geological Hazards During Planning• Implement Full-Time Environmental Inspections During

Pipeline Construction• Monitor Water Quality During Construction• Require Post-Construction Monitoring for Five Years• Tie Permitting Standards to the Duration of Impact

• Implement a Mitigation Bank to Improve Water Quality• Reduce Forest Fragmentation in Pipeline Development• Promote Biodiversity in Pipeline Development• Develop Rare Species Work Windows to Avoid Impacts• Minimize Impacts to Riparian Areas at Stream Crossings• Promote Wildlife Habitat Opportunities Along Pipeline

Corridors• Restore and Maintain a Border Zone in Forested Areas• Minimize Aesthetic Impacts in Pipeline Development• Minimize Recreational Impacts in Pipeline Development• Provide Recreational Opportunities in Pipeline Development• Reseed Rights-of-Way Using Native Plants• Use Pennsylvania-Sourced Plant and Seed Vendors and

Landscape Services• Require Performance-Based Metrics for Long Term

Maintenance of Rights-of-Way• Prevent Invasive Plant Species Establishment• Finalize Functional Protocols for Impacts and Offsets• DEP Should Follow the 2008 Final Mitigation Rule for all

Mitigation Sites

County Government• Counties Should Partner in Implementation of Task Force

Recommendations• Counties Should Include Pipelines Development in County

Comprehensive Plans• Counties Should Make GIS Mapping Available to Operators

and Require Them to Provide Their Mapping to Counties andMunicipalities

• Develop Training Opportunities for County Officials

Pipeline task force: Continued from page 1

February 2014 Page 23December 2015 Page 23

The following op-ed by Joyce Turkaly, PIOGA director of natu-ral gas market development, was published December 2 bythe Harrisburg Patriot-News/PennLive.com.

Most of the leaves across Pennsylvania have fallen ascolder winds blow across the terrain. As temperaturesdrop, we rely even more on the energy many don’t think

about in our daily lives. Natural gas is the heating source for 51 percent of

Pennsylvania’s households, followed by electricity at 21 percentand fuel oil at 18 percent. Fewer residents use propane, woodand coal for heat.

Maybe now is the time to give energy, particularly the safedelivery of energy, some additional thought.

Thanks to Pennsylvania’s natural gas, energy is costing usless and, simultaneously, improving the region’s environment.This resource is replacing coal-fired power plants, lowering car-bon emissions by as much as60 percent region-wide.

What’s holding back addition-al benefits, however, is a lack ofnew infrastructure to get this gasto consumers, along with a mis-understanding of existingpipeline regulations that pro-mote safe development.

To address these challenges,Governor Tom Wolf created the Pipeline Infrastructure TaskForce, composed of 48 stakeholders including representativesof local, state and federal governments; engineers; landowners;industry representatives, environmental advocates; and others.The task force includes 12 working groups focusing on everyaspect of pipeline and infrastructure development.

Wolf and Department of Environmental Protection SecretaryJohn Quigley claim this initiative is an opportunity to establish acomprehensive “smart planning” approach to pipeline develop-ment. While admirable in theory, the fact is that many of these“challenges” are currently addressed by multiple agencies andindustry initiatives.

The task force recently issued a draft report defining a seriesof best practices and recommendations from the 12 workinggroups and with input from the 48 stakeholders. This report,however, seems to support presumptions by the administrationthat developers are irresponsibly siting, routing and installingpipelines, taking advantage of landowners, failing to minimizeenvironmental impacts, and not coordinating their efforts.

These presumptions are far from the truth. Much of the gap between reality and this draft report can be

attributed to simple unawareness of existing federal regulationsand industry best practices. Regulations enforced by the FederalEnergy Regulatory Commission, Pipeline and HazardousMaterials Safety Administration, the Pennsylvania Public UtilityCommission, Environmental Protection, and the Department ofConservation and Natural Resources address these concerns.The gap is widened further by numerous presentations fromnatural gas opponents to the group on Quigley’s behalf.

Unless corrected in the final report, this apparent bias is like-ly to lead to more delays in an already flawed permittingprocess.

It also contradicts Wolf’s statements about the recent three-year agreement among Pennsylvania, Ohio and West Virginiathat “we must support new and expanded infrastructure to movenatural gas and natural gas liquids in a safe and environmental-

ly sound manner from the source of their extraction to end usersand new markets. This is critical to the long term prosperity ofthe region.”

Despite its good intentions, the idea that a state task forcecan accomplish more in seven months to address safety andenvironmentally sound practices than the industry has imple-mented in its own self-interest and in response to governmentregulation is questionable.

The pipeline industry has developed progressive and com-prehensive best practices that ensure stronger communicationwith landowners, enforce safety regulations, and develop newtechnologies for reduced environmental impacts during con-struction and operations. Many of them are part of the Pipelineand Hazardous Materials Safety Administration’s safety regula-tions and incorporated into the Federal Energy RegulatoryCommission’s application process.

Additional practices in thedraft report regarding emer-gency response, and public andlocal government outreach, areaddressed in the Pipeline andInformed Planning Alliance man-ual published by the Pipelineand Hazardous Materials SafetyAdministration. This manual out-lines the responsibilities of

landowners, elected officials, emergency responders andpipeline operators. These responsibilities also ensure pipelineoperators are effectively communicating with all stakeholdersalong the rights-of-way.

The industry has also been at the forefront of environmentalprotection along pipeline rights-of-way. Survey crews and scien-tists study plants and wildlife in advance of construction toensure minimal disruption. Pipeline operators design and routeprojects based on their findings. The effort to prevent environ-mental impacts continues throughout the phases of design, con-struction, restoration and operations.

On matters of pipeline safety and integrity, the industry isheavily regulated by the U.S. Department of Transportation andthe Pipeline and Hazardous Materials Safety Administration.Operators must comply with multiple regulations, includingpipeline integrity management and public awareness programs,along with operations and maintenance programs. All are sub-ject to periodic audits and, under the Pipeline Safety, RegulatoryCertainty and Job Creation Act of 2011, fines for violations havedoubled.

The Pipeline and Hazardous Materials Safety Administrationrequires operators to incorporate a number of safety mecha-nisms into pipeline design. These include wall thickness, hoopstrength, anti-corrosion coatings, cathodic protection and otherintegrity tools. In rural areas, pipeline operators design projectsto meet safety specifications in anticipation of future regulationdue to population growth and development.

The draft task force report ignores these regulations andindustry standards and demonstrates an overly aggressive pos-ture toward the industry.

This failure to acknowledge existing regulations irresponsiblyfeeds the fears of the uniformed and will further delay the devel-opment of much-needed infrastructure. Pipelines remain thesafest, cleanest and most reliable mode of transporting naturalgas—and it is industry’s goal to keep it that way.

Wolf pipeline task force is government overreach at its worst

“This failure to acknowledge existingregulations irresponsibly feeds the fears of

the uniformed and will further delay thedevelopment of much-needed

infrastructure.”

Page 24 The PIOGA Press

• Develop Tools to Educate the Public on Pipeline Development• Operators Should Engage in Timely Communications• Develop Advisory Standards for Pipeline Setback and Buffers• Amend Municipalities Planning Code to Empower County

Comprehensive Plan• Require Shared Rights-of-Way• Empower GIS Mapping• Create a Commonwealth Library of Pipeline Information• Require Pipeline Abandonment Plans

Emergency Preparedness• Standardize Emergency Response Plans• Train Emergency Responders• Require Infrastructure Mapping• Coordinate Pipeline Mapping Plans• PUC Should Develop a Comprehensive List of Pipeline

Classifications• Enhance Emergency Response Training for Responder

Agencies• Create County/Regional Safety Task Forces• Provide Training to Local Emergency Responders• Assess Need for Additional Training for Local Responders• Establish Protocol for Emergency Movement of Heavy

Equipment During Off-Hours• Assigning a 9-1-1 Address to Pipeline-Related Facilities• Authorize a Fee for Emergency Response to Pipeline Incidents

Environmental Protection• Establish Early of Partnerships and Coordination in

Relationships with Regulatory Agencies

• Establish Early Coordination with Local Non-GovernmentalGroups

• Establish Early Coordination with Local Landowners andLessors

• Project Sponsors Should Review Pennsylvania StormwaterBMP Manual

• Sponsors Should Review the Pennsylvania Erosion andSediment Pollution Control Program Manual

• Sponsors Should Request Pre-Application Meetings withRegulatory Agencies

• Sponsors Should Perform Alternative Analysis toAvoid/Minimize Impacts

• Develop Standard Water Quality Monitoring Practices• Develop an Advanced High-Quality Environmental Resources

Planning Tool• Sponsors Should Use Landscape Level Planning• Minimize Water Withdrawals for Testing• Do Not Locate Pipelines Parallel to Streams Within its 100-

Year Floodway• Employ Smart Timing of Construction• Assess Potential Subsurface Hazards in Planning• Route Pipelines to Minimize Disturbance to Forest Interiors• Avoid Steep Slopes and High Erodible Soils• Share Rights-of-Way• Identify Barriers to Sharing Rights-of-Way• Establish Setbacks from Wetlands and Watercourses• Use Dry Seals for Centrifugal Compressors• Minimize Methane Emissions During Compressor Station

Shutdown Periods• Use Pump-Down Techniques Before Maintenance and Repair• Develop Plans for Construction, Operation and Maintenance• Implement Directed Inspection and Maintenance Program for

Compressor Stations• Implement Wetland Banking/Mitigation Measures• Use Antidegradation Best Available Combination of

Technologies to Protect EV and HQ Waters• Avoid Dams and Reservoirs• Avoid Water and/or Wastewater Discharge• Develop Plans for No Net Loss of Forests in Headwater

Watersheds• Develop Plans for No Net Loss of Forested Riparian Buffers• Develop Plans for No Net Loss of Wetlands• Study Long-Term Impacts of Pipeline Infrastructure on Water

Resources and Sensitive Landscape• Minimize Methane Emissions• Minimize Impacts of Stream Crossings• Conduct Research to Improve Revegetation BMPs• Require Shutoff Valves for Liquid Product Pipelines• Use Dust Suppression Controls Near Water Resources• Test Efficacy of Silt Fencing• Test Soils in Acid Deposition Impaired Watersheds to Identify

Need for Additional Liming• Sponsors Should Review the Pennsylvania Natural Diversity

Inventory (PNDI) Environmental Review Tool• Develop Construction Sequencing Plan• Stockpile Topsoil During Construction for Use in Restoration• Soften Forest/Rights-of-Way Edges and Promote Canopy

Closure• Create Onsite Habitat• Prevent Invasive Species from Entering Sites

December 2015 Page 25

• Ensure Ecologically Sensitive Revegetation of Rights-of-Way• Conduct Quantitatively Site Monitoring• Conduct Regular Site Maintenance• Properly Use and Maintain Pipeline Components• Implement Leak Detection and Repair for all Above-Ground

Components of Pipeline Infrastructure• Clarify Remediation of Spills Under Shale Regulation• Establish Forest Mitigation Program• Implement Electronic Permit Submissions for Chapters 102 and

105• Establish Electronic Payment for Chapters 102 and 105 Permit

Fees• Evaluate Need for Hard Copies of Chapter 102 and 105 Permit

Submissions• Evaluate Erosion and Sediment Control General Permit

(ESCGP-2) Expedited Review• Ensure Adequate Agency Staffing for Reviewing Pipeline

Infrastructure Projects• Evaluate DEP Retention and Attrition of Staff and Succession

Planning• Evaluate the Effectiveness of the Permit Decision Guarantee

Policy• Evaluate the Permit Decision Guarantee Priority Status

Hierarchy• Increase DEP Staff Training• Eliminate Duplicate Questions in Erosion and Sediment

Control General Permit (ESCGP-2) Notice of Intent (NOI)• Create Pipeline Erosion and Sediment Control Manual• Consider Limited Permit Review Assistance Using Qualified

Contractors• Convene Annual Regulatory Agency Meetings• Reassess and Update Standing Memoranda of Understanding

(MOUs) between State and Federal Agencies• Incorporate Cumulative Impacts into Applications and Review

Process• Conduct Joint Agency Coordination Meetings During Pre-

Application and Planning• Assess Oil and Gas Programs Chapter 102 Training

Historical/Cultural/Tribal• Improve Communications with Landowners• Consult with Federally Recognized Tribes on Section 106-

Related Projects• Consult with Citizens’ Groups, Including Heritage and

Historical Organizations and Non-Federally Recognized (NFR)Tribes for Oil and Gas Development

• Implement Best Practices for Upstream and Midstream Oil andGas Development that Fall Outside of USACE Permit Areas

• Conduct Early Outreach with Affected Communities• Conduct County-Based Siting and Mitigation Research

Local Government• Communicate Early and Often with Local Government

Officials• Minimize Impact on Local Roads• Allow Local Regulation for Surface Facilities

Natural Gas End Use• Create a State Level Permit Coordinator• Create Regional Energy Corridors and Energy Action Teams

• Create Energy Opportunity Zones• Expand Distribution System Improvement Charge (DSIC), Act

11 of 2012• Develop Municipal Guidelines for Natural Gas Distribution

Lines

Pipeline Safety and Integrity• Require Leak Detection Survey Schedules• Require Leak Repair Schedules• Establish Publicly Available Pipeline Inspection Information• Require a Cathodic Protection Program• Require an Integrity Management Program (IMP) for Gathering

Pipelines• Authorize PA Public Utility Commission (PUC) Regulation of

Non-Jurisdictional Pipelines• Require Best Practices and Standards for Production Lines

Located Beyond the Well Pad and Gas Gathering Lines in Class1 Locations

• Establish Mapping/GIS for Emergency Response• Designate PA1Call as Enforcement Agency for Underground

Utility Line Protection Law• Enhance Public Awareness via Mapping/GIS• Create a Public Education Program on Gathering Systems• Enhance Public Awareness of Pipeline Location• Develop Public Education Program for Emergencies

Public Participation• Establish Statewide Pipeline Information Resource Center• Adopt Guidelines for Public Participation• Amend General Information Form to Require Information on

Page 26 The PIOGA Press

Public Participation• Form Pipeline Advisory Committee• Require Publication of Intent to Apply for DEP Permits

Associated with Pipeline Development• Issue Annual Report Implementations on the PITF

Recommendations

Siting and Routing• Utilize Planning Process Appropriate for the Scale of the

Pipeline Project• Create an Inter-Agency Coordinating Committee to Resolve

Conflicting Construction Requirements• Create Statewide Technical Review Committee Within DEP for

Multi-Region Pipeline Applications• Create a Taskforce of Affected Stakeholders to Study the

Creation of New Regulatory Entity, or Empower ExistingRegulatory Entity to Review and Approve the Siting andRouting of Intrastate Gas Transmission Lines

• Create DEP Plans and Procedures Design Manual for PipelineConstruction

• Create Third Party Consultant Staffing at DEP• Expand PA1Call for All Classes of Pipelines• Pipeline Developers Should Engage with Private and

Governmental Stakeholders and Educate Landowners• Invest in Digital Infrastructure to Improve Data Availability

Workforce and Economic Development• Commission Workforce Assessment and Economic

Development Impact Study• Enhance STEM Education

• Promote Apprenticeship and On-the-Job Training• Attract Military Veterans to the Energy Workforce• Conduct a State Employee Workforce Audit to Identify

Training and Other Needs of Pertinent State Agencies• Enhance Workforce Training• Develop a Pipeline Map• Coordinate Project Management for Projects Using Natural Gas

in PA• Create Last Mile Funding• Expand Distribution System Improvement Charge (DSIC) to

Cover Pipeline Payback Period Extension, Advertising Cost• Encourage Natural Gas Use in Ports• Develop Targeted Investment, Business Attraction Effects and

Regional Energy Hubs• Collaborate to Promote Downstream Shale Manufacturing

Opportunity• Encourage Virtual Pipeline (Trucking) Delivery Systems• Allow Creation of Natural Gas Municipal Authorities• Compile Funding and Resource Guidebook• Support Natural Gas for Compliance with Pennsylvania’s Clean

Power Plan (CPP)• Assess Requirement of Consulting Services for Permitting• Ensure Pipeline Permit Consistency• Reform Application of the Pennsylvania Natural Diversity

Index (PNDI)

Comment periodDEP recently extended the public comment period on the

draft report to December 29. A link to the department’seComments service can be found on the pipeline task force pageof the DEP website. PIOGA intends to submit comments. ■

GeotechnicalEnvironmentalEcologyWaterConstruction Management

Laurel Oil & Gas Corp. A Division of GZA GeoEnvironmental, Inc.

www.laureloilandgascorp.com

Warren ShoenfeltBridgeport, WV 724-766-5150

GZA GeoEnvironmental, Inc.

Laurel Oil & Gas Corp.

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David Palmerton Principal 724-759-2871

“PA Independent Oil and Gas Association”

December 2015 Page 27

New PIOGA members — welcome!

Mark A. Acree Sr.148 Bittersweet Circle, Venetia, PA 15367330-418-4211Royalty Owner

Arthur W. Bush120 Tartan Drive, Kittanning, PA 16201724-543-0211Associate

John G. Cochran II203 Edgevale Road, Baltimore, MD 21210410-323-2310Royalty Owner

Cultural Resource Analysts, Inc.3556 Teays Valley Road, Suite 3, Hurricane, WV 25526304-562-7233 • www.crai-ky.comProfessional Firm – environmental/regulatory consultants, culturalresources services, archaeological and historic architecturalinvestigations

JD Injection Specialists, LLCP.O. Box 369, Racine, OH 45771304-208-7559 • www.jdinjectionspecialists.comService Provider – salt water disposal using injection wells forproduced, flowback and frac water

Markosky Engineering3689 Route 711, Ligonier, PA 15658724-238-4138 • www.markosky.comProfessional Firm – engineering and environmental consulting

Rain For Rent385 Technology Drive, Triadelphia, WV 26059304-547-0479 • www.rainforrent.comService Provider – water transfer, pumping systems, temporarystorage and filtration

PIOGA Member News

Timothy Brown named chief executive officerat American Refining Group

The American Refining Group Inc. (ARG) Board ofDirectors announced Timothy Brown has been namedHarry Halloran’s successor as the company’s chief execu-

tive officer. Prior to the board’s announce-ment, Brown had been serving as ARG’sexecutive vice president and chief strategyofficer. As CEO, he will be responsible forforging a business plan that fosters growthand ensures the long-term success of ARGand the Bradford refinery.

Brown has been employed withAmerican Refining Group since 1999 holding a variety of sales-and marketing-related positions and in 2008 was appointed vicepresident of sales. He has more than 20 years of experience inthe lubricant and petroleum industries. Brown holds a bachelor's

degree from the University of Connecticut and an MBA fromDuke University.

Halloran will continue to work with the company in his roleas executive chairman of the board, providing guidance and over-sight as he transitions the business to the next generation of theHalloran family.

Mazzella Companies acquires Rouster Wire Rope& Rigging

Mazzella Companies has acquired Rouster Wire Rope &Rigging. Rouster is a leading supplier of synthetic rope, wirerope, chain slings, nylon and polyester web slings. This acquisi-tion will expand Mazzella Companies' footprint and enhance thecompany’s expertise in high performance synthetics.

“Chuck Farmer and Rouster Wire Rope & Rigging are wellknown as experts in the lifting business. Chuck's vision andknowledge in the application of high strength synthetic ropeswill be invaluable to Mazzella. Their focus on safety has beenthe foundation of their outstanding reputation and fits right inwith our culture,” said Tony Mazzella, CEO of MazzellaCompanies.

Based in Mabscott, West Virginia, Rouster has been in busi-ness since 1993 and has established a reputation as one of theindustry's most innovative, reliable and knowledgeable compa-nies in the rigging and lifting industry. Mazzella is one of thelargest independently-owned companies in the overhead liftingand rigging industries. ■

Page 28 The PIOGA Press

$35

$45

$55

$65

$75

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

Oil & Gas Trends

25

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55

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65

Mon

thDe

cJa

nJa

nJa

nFe

bFe

bM

arM

ar Apr

Apr

May

May Jun

Jun Jul

Jul

Jul

Aug

Aug

Sep

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Previous Year Currrent Year

Pennsylvania Rig Count

Penn Grade Crude Prices

1973 ROUTE 66GREENSBURG, PA 15601

(724) 837-4500

20400 ROUTE 19CRANBERRY TOWNSHIP, PA 16066

(724) 776-3636

February 2014 Page 29December 2015 Page 29

Natural Gas Futures Closing PricesAs of December 8

Month PriceJanuary 2016 $2.083February 2.136March 2.185April 2.245May 2.294June 2.345July 2.396August 2.426September 2.437October 2.451November 2.534December 2.694

mwilliams@newprospect.comCell: (814) 449-8822

www.newprospect.com

NEW PROSPECT COMPANY

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

Page 30 The PIOGA Press

Branch John D 1 11/8/15 123-47725 Warren Warren CityCabot Oil & Gas Corp 2 11/16/15 115-22094* Susquehanna Gibson Twp

11/16/15 115-22093* Susquehanna Gibson TwpCameron Energy Co 2 11/3/15 123-47886 Warren Sheffield Twp

11/25/15 123-47890 Warren Sheffield TwpChesapeake Appalachia LLC 1 11/30/15 131-20525* Wyoming Mehoopany TwpChief Oil & Gas LLC 3 11/28/15 113-20349* Sullivan Elkland Twp

11/28/15 113-20350* Sullivan Elkland Twp11/13/15 113-20348* Sullivan Forks Twp

Coastal Petro Corp 2 11/16/15 083-56716 McKean Corydon Twp11/23/15 083-56715 McKean Corydon Twp

EM Energy PA LLC 1 11/22/15 019-22461* Butler Washington TwpEQT Production Co 11 11/4/15 059-26698* Greene Morris Twp

11/4/15 059-26699* Greene Morris Twp11/18/15 059-26930* Greene Washington Twp11/12/15 125-27753* Washington Amwell Twp11/20/15 125-27434* Washington Amwell Twp11/25/15 125-27765* Washington W Bethlehem Twp11/25/15 125-27766* Washington W Bethlehem Twp11/25/15 125-27767* Washington W Bethlehem Twp11/25/15 125-27768* Washington Wt Bethlehem Twp11/25/15 125-27769* Washington W Bethlehem Twp11/25/15 125-27770* Washington W Bethlehem Twp

Gas & Oil Mgmt Assoc Inc 1 11/20/15 123-47870 Warren Mead TwpLaurel Mountain Production 1 11/30/15 031-25664* Clarion Perry TwpR&N Resources LLC 2 11/19/15 123-47862 Warren Sheffield Twp

11/25/15 123-47861 Warren Sheffield TwpRange Resources Appalachia 9 11/9/15 125-27448* Washington Buffalo Twp

11/9/15 125-27449* Washington Buffalo Twp11/9/15 125-27725* Washington Buffalo Twp11/9/15 125-27711* Washington Buffalo Twp11/21/15 125-27690* Washington Buffalo Twp11/21/15 125-27692* Washington Buffalo Twp

11/22/15 125-27689* Washington Buffalo Twp11/22/15 125-27691* Washington Buffalo Twp11/28/15 125-27482* Washington N Strabane Twp

Rice Drilling B LLC 2 11/24/15 059-26943* Greene Richhill Twp11/24/15 059-26944* Greene Richhill Twp

SWN Production Co LLC 8 11/22/15 115-22108* Susquehanna Jackson Twp11/23/15 115-22106* Susquehanna Jackson Twp11/26/15 115-22107* Susquehanna Jackson Twp11/16/15 115-22088* Susquehanna Oakland Twp11/30/15 115-22079* Susquehanna Oakland Twp11/19/15 117-21769* Tioga Liberty Twp11/20/15 117-21816* Tioga Liberty Twp11/22/15 117-21800* Tioga Liberty Twp

TLC Oil Operations Inc 1 11/17/15 083-56648 McKean Foster TwpVantage Energy Appalachia II 9 11/16/15 059-26992* Greene Gray Twp

11/17/15 059-26985* Greene Gray Twp11/17/15 059-26987* Greene Gray Twp11/17/15 059-26988* Greene Gray Twp11/17/15 059-26989* Greene Gray Twp11/18/15 059-26986* Greene Gray Twp11/19/15 059-26990* Greene Gray Twp11/19/15 059-26991* Greene Gray Twp11/4/15 059-26952* Greene Washington Twp

XTO Energy Inc 2 11/23/15 019-22484* Butler Forward Twp11/24/15 019-22497* Butler Jefferson Twp

Spud Report:November

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.

November totalsTotal wells 58Unconventional 49Conventional 9Gas 49Oil 7Combination oil/gas 2

1500 Sycamore Rd., Suite 320Montoursville, PA 17754570-368-3040www.mctish.com

Additional OfficesAllentown, PAPittsburgh, PA

WINNERNortheast

2013

Digging Out Potential SavingsDigging Out Potential SavingsDigging Out Potential Savings

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Into the FutureInto the FutureInto the Future

Adrianne Vigueras

Vice President Energy Division

avigueras@ecbm.com

888-313-3226 ext. 1335

WWW.ECBM.COM

Insurance Brokers & Consultants

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.Thomas M. Bartos, ABARTA EnergyStanley J. Berdell, BLX, Inc.Carl Carlson, Range Resources - Appalachia, LLCMike Cochran, Energy Corporation of AmericaDon A. Connor, Open Flow EnergyTed Cranmer, TBC ConsultingJack Crook, Atlas Resource Partners, LPMichael Donovan, Seneca Resources CorporationRobert 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, LLC 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 CompanyKevin Gormly, Vorys, Sater, Seymour and Pease LLP (ViceChairman)

Pipeline & Gas Market Development CommitteeBob Eckle, Appalachian Producer Services, LLCRon McGlade, Tenaska Resources, LLC (Assistant Chairman)

Health & Safety CommitteePat Carfagna, CONSOL Energy

Meetings CommitteeLou D’Amico, PIOGA

Tax CommitteeDonald B. Nestor, Arnett Carbis Toothman, LLP

Communications CommitteeTerry Jacobs, Penneco Oil Company, Inc.

StaffLou D'Amico (lou@pioga.org), President & Executive DirectorKevin Moody (kevin@pioga.org), Vice President & General Counsel Debbie Oyler (debbie@pioga.org), Director of Member Services and

Finance Matt Benson (matt@pioga.org), Director of Internal Communications

(also newsletter advertising & editorial contact)Joyce Turkaly (joyce@pioga.org), Director of Natural Gas Market

DevelopmentDan Weaver (dan@pioga.org), Public Outreach DirectorDanielle Boston (danielle@pioga.org), Director of AdministrationTracy Zink (tracy@pioga.org), 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 31December 2015 Page 31

PIOGA EventsInfo: www.pioga.org/events

PIOGA Winter Meeting February date and location to be announced

Summer Golf Outing & PicnicJune 5 (tentative date), Wanango Golf Club, Reno

Pig Roast, Equipment Show and Technical ConferenceJuly 21-22, Seven Springs Mountain Resort Champion

Divot Diggers Golf OutingAugust 25, Tam O’Shanter Golf Club, Hermitage

Industry EventsIOGAWV Winter Meeting

February 2-3, Charleston, WVInfo: iogawv.com/2016-winter-meeting-registration

IPAA Congressional Call-UpFebruary 29-March 2, Washington, DCInfo: www.ipaa.org/meetings-events

OOGA Winter MeetingMarch 16-18, Columbus, OHInfo: www.ooga.org/events

IPAA Midyear MeetingJune 27-29, Colorado Springs, COInfo: www.ipaa.org/meetings-events

IOGANY Summer MeetingJuly 13-14, Peek’n Peak Resort, Findley Lake, NYInfo: www.iogany.org/events.php

KOGA 80th Annual MeetingJuly 19-21, Northern Kentucky Convention Center, Covington

Info: koga.memberclicks.net/upcoming-events

IPAA Annual Meeting

November 9-11, The Cloister, Sea Island, GA

Info: www.ipaa.org/meetings-events

Calendar of Events

➤ More events: www.pioga.org

Dan Palmer - Crude Relationship Manager PA / NY

814-368-1263dpalmer@amref.com

Purchasers of Light Sweet Paraffinic Crude Oil

www.amref.com814-368-1200

mmSpecialty Refining Solutions ®

Founded 1881 in Bradford, Pennsylvania. We are committed to supporting the local community,

creating sound jobs and a sustainable future.

115 VIP Drive, Suite 210Wexford, PA 15090-7906

Address Service Requested