eting 2016 - Independent Oil and Gas Association of New York

Transcription

THE
PIPELINE
VOLUME 36, NO. 1
SPRING 2016
Hypocrisy 101
38 Lake Street
Hamburg, NY 14075
D
THE PIPELINE is published quarterly by the Independent
Oil & Gas Association of New York as a benefit of membership.
INSIDE
JOIN US!
Summer Meeting 2016
PEAK N’ PEEK RESORT & SPA
JULY 13 & 14, 2016
By Brad Gill
From the Executive Director cover
Beware of Well Plugging Liability 5
Upcoming Events 6
Election 2016 7
2016 IOGANY Meeting Info 10
2016 Membership Directory Info 11
IOGANY’s New Buyers’ Guide 11
Pipeline Rally Coverage 12
Industry Cycle: Lower for Longer 13
What Our Members Say 14
New Members 15
Understanding Energy Markets 17
Industry Prices 18
Natural Gas Now Support 19
e
THINK
Spring!
on’t even get me started…
I want to talk about hypocrisy for a minute. I don’t mean the
everyday, run-of-the-mill stuff that
we see all the time. I am talking
about the “height” of hypocrisy here.
We’ve all had to deal with those
folks who hate us… you know the
ones who say how bad fraced gas
is for the environment just before
they leave to drive home to their
warm house, gas stove and motorized lawn equipment. Actually, I do
want to share a
story about that
convictions
scenario…
as his wallet...
I was at a
professional
after-work function in Buffalo and
met an attorney who asked what I
did for a living. After telling him, he
said I probably shouldn’t talk with
his wife because she is a nurse and
they have both driven to Dimock,
PA to witness first-hand the destruction and injury to people caused by
our industry. He said they are both
staunchly opposed to fracing and
the use of fraced natural gas.
Upon hearing this, I asked him
why he supports our
industry every single day.
He looked bewildered,
and said he “has to” as
an attorney representing
certain clients. I quickly clarified my question
and said that I mean him
personally – why did HE
support us every day?
Now he was confused by
my question and had a
puzzled look on his face.
I explained that every
day he drives his car and
heats his home, mows
...
his lawn, snow-blows his driveway,
uses Tupperware, pops pills, and a
host of other activities, he is supporting the oil and gas industry. To
be specific, I asked how he heats
his home and he confirmed with
natural gas. I asked why he doesn’t
convert to solar, wind, or wood?
He responded by saying that he
couldn’t do that. Why? Because the
costs were exorbitant. Really?!!! I immediately said that he is an attorney
and doing very well for himself, and
if anyone could
run only as deep afford to partially
switch to renewables, he could! I
also pointed out
that his wish for everyone to be
off the grid would severely impact
most of society who couldn’t afford
to switch as easily as he could. I
ended our conversation by pointing
out that his convictions run only as
deep as his wallet and that is hypocritical. Needless to say, he never
circled back around to where I was
standing all evening and he never
brought his wife over to meet me.
Hypocrisy never fails to amaze
me. Take Walmart’s story. The elite
liberal left loved to hate Walmart
for its corporate greed, capitalistic
views, and indifference toward
its workers, screaming that they
weren’t paying enough and weren’t
taking care of the employees. Twice,
Walmart raised its wages and benefits in response to public pressure,
and despite their concessions,
Walmart was still the bad guy. In
April 2015 they raised wages for a
half million workers, then again for
this year they will raise their wages
Continued on page 2
Continued from page 1
for 1.2 million workers. But folks are
still not happy, so now that Walmart
is closing almost two-hundred
stores and laying off thousands of
workers, you would think the oppositionists would be happy to have
eliminated this greedy behemoth
from certain localities. They should
be dancing in the streets because
they got rid of the evil giant! But of
course, you know that they are now
painting Walmart as the bad guy
once again saying they are insensitive and terrible because they are
forced to lay off workers and close
stores. When someone is hypocritical,
they will always play both sides,
conveniently justifying their actions
no matter what – all while turning
away from the mirror.
I could also mention Sanders,
Hillary, Cuomo, and Obama stating
with conviction that the constitution
is clear and shouldn’t be conveniently
interpreted when it comes to the
president nominating a supreme
court justice during his last year in
office. I agree that the constitution
shouldn’t be conveniently interpreted
for this purpose… or for the second
amendment! But they conveniently
are not consistent on these two
issues. Yep – hypocrisy at its finest.
Or Hillary stating that large
campaign contributions don’t sway
policymaking, and pointing out that
Obama went after Wall Street after
the 2008 banking meltdown despite
having received large funding from
Wall Street. She also defended
her speaking fees (aka campaign
contributions) from Goldman Sachs
and others, saying that these large
political donors do not impact policy.
But, just listen to what she says
about the Koch Brothers, or about
the NRA on the Republican side –
again… terribly hypocritical.
But, I said I wanted to talk about
the “height of hypocrisy” so here it
is. IOGANY receives a magazine
called City and State. It is a largely
left-leaning political publication out
of Albany that highlights politicians
and influential people in New York,
legislation, social programs, etc.
We subscribe to it because I believe
The Pipeline
we should always be educated about
the mindset and activities of our
adversaries.
In the last issue there is a q&a
interview of the actor James Cromwell.
Cromwell played the farmer in the
movie “Babe”, starred in “American
Horror Story: Asylum” and has made
other movies. He is also an activist,
protested the Vietnam war, and most
recently got arrested for blocking
the entrance to a natural gas power
plant under construction in Orange
County, NY.
First question: “Why are you
opposing this power plant?”
Answer: “It affects not only my community and where I live in Warwick,
but it also affects the health and
well-being of the people of Orange
County and to some degree, the people of the State of New York and the
entire country and the entire world.”
(he forgot the solar system… and the
universe… and parallel universes)
He went on to talk about how the
power plant “is fraught with the possibility of disaster and endangerment
of local people.” He also said the
movement to ban fracking was “incredibly well-organized (can’t argue
that) and supported, but also because of some politics up in Albany.
But they left out the “use” of fracked
gas. It doesn’t make any sense to
me or to anybody in this community why you would ban fracking
and then turn around and use the
product of fracking to run a power
plant in New York.” He went on to
say that we don’t need fracked gas to
produce electricity “because we have
a surplus.” Ughhh! But wait, it gets
even better!
Second question: “So you’re
saying New York is being hypocritical by banning fracking but
allowing the use of fracked gas in
the state?”
Answer: “It is hypocritical, but
you have to look at the money.”
UGGGHHHHHHH!!!!!!! The height
of hypocrisy to me is when a person
points out hypocrisy without look2
ing in the mirror! He accuses New
York of being hypocritical because
they banned fracing and still use the
energy produced from fracing (I agree
- that is hypocritical), but he never
acknowledges that he and millions of
New Yorkers and people all over the
country and the world (and parallel
universes) are doing the same thing!
He drives, heats his home, mows his
lawn, uses Tupperware, enjoys the
warmth of shopping malls and uses
his eco-friendly products that have
been manufactured using natural gas
as a feedstock energy source, and
never points out his own hypocrisy!
IOGANY has spent countless
dollars and man-hours fighting our
regulatory and legislative battles over
the last seven years. We have lost
temporarily to the well-organized and
well-funded opposition groups. But
we now hope to do what we can to
expose the hypocrisy of actors like
Cromwell and others, but mostly the
hypocrisy of the every-day people
across the state who benefit daily
from the very product they disdain.
I am not sure how we’re going to do
it, but we are working on some ideas
that we’ll share with the members
when the time is right. We have no
delusions of victory or even making a
big dent in the situation here in New
York. But, if we can make even a
small impact and get people talking
about the reality of natural gas use
in New York, and how it makes no
sense to oppose something that you
use regularly and heavily rely upon
every day, then we can at least say
we tried.
I just wish more people, like that
attorney I enlightened, would at least
come to realize the positive impacts
on their lives that natural gas and
oil have made through the years. I
recently talked with Mark Mathis, a
film producer who I met years ago
and have grown to respect, both
personally, and for the quality of his
work. Mark just completed his latest
film project – a movie titled “Fractured; Language, Lies, and Energy”.
I watched the film and it brings up
some very good points about how
Continued on page 3
Spring 2016
ON THE
LIGHTER
SIDE!
Dan was a single guy living at home with his
father and working in the family business. When
he found out he was going to inherit a fortune
when his sickly father died, he decided he
needed a wife with which to share his fortune.
One evening at an investment meeting he spotted the most beautiful woman he had ever seen.
Her natural beauty took his breath away. “I may
look like just an ordinary man,” he said to her,
“but in just a few years, my father will die, and I’ll
inherit 20 million dollars.”
Impressed, the woman obtained his business
card and three days later,she became his stepmother.
Women are so much better at estate
planning than men!
Newsletter Advertiser Index
Bond, Schoeneck & King, PLLC...................................................................... 4
D.A. Collins Companies................................................................................. 13
Elexco Land Services....................................................................................... 6
EnergyMark, LLC............................................................................................ 17
Erdman Anthony............................................................................................. 16
Ernst Seeds...................................................................................................... 4
Gas Field Specialists, Inc................................................................................. 8
GZA GeoEnvironmental Inc.............................................................................. 5
John H. Heyer, Attorney at Law....................................................................... 9
Kessel Construction, Inc.................................................................................. 9
Moody & Associates, Inc.................................................................................. 9
National Fuel Resources.................................................................................. 8
New Prospect Company................................................................................ 15
Oakridge Engineering....................................................................................... 8
Tectonic Engineering & Surveying.................................................................. 15
Twin Tiers SPE.................................................................................................. 8
Fighting the battle for the economic future of Rural America, energy independence and the environment is what we do at NaturalGasNOW. Can you help? You’ll notice a new banner advertisement at the top of each post. It’s a very simple request to consider supporting this blog with a very modest contribution to help cover the costs. Yes, it takes time and money to do what we do and, while the time is not so much of an issue given my own passion for the cause, the out-‐of-‐pocket expenses for maintaining the blog, travel (essential to collecting stories and spreading the word), research costs and the like are more than you might imagine. So, I’m reaching out to those of you who often tell us how important what we do is to you and your family or industry and asking you to consider signing up to support NaturalGasNOW. It will take but 99¢ per month (that’s less than 25¢ per week and only $11.88 per year). Just click on the banner and use your PayPal account or credit card to help out. To support NaturalGasNOW visit: http://naturalgasnow.org/ The Pipeline
19
Spring 2016
Recent Penn Grade Crude Oil Postings in WNY
12/2..........................................................................35.94
12/9..........................................................................33.16
12/16........................................................................31.52
12/23........................................................................33.50
12/30........................................................................32.60
1/6............................................................................29.97
1/13..........................................................................26.48
1/20..........................................................................22.55
1/27..........................................................................28.30
2/3............................................................................28.28
2/10..........................................................................23.45
2/17..........................................................................26.66
2/24......................................................................... 28.15
3/2 .......................................................................... 30.66
Source: Ergon Oil Purchasing www.ergon.com/prices.php
naïve the general public is about energy and how their lives
wouldn’t be the same without it. We hope to host a showing
of this film at an upcoming meeting, and plan to have copies
of it available for purchase to support Mark’s efforts.
So, let’s all continue doing what we can individually in the
course of our everyday lives when we engage people who
don’t understand our industry. Let’s point out the hypocrisy
that each of them engage in when they bash fossil fuels in
favor of renewables. At least we stand proudly in support of
our industry and aren’t afraid to look in the mirror!!
INDEPENDENT OIL & GAS ASSOCIATION
OF NEW YORK
38 Lake Street • Hamburg, NY 14075
716-202-4688 • 716-202-4689 fax
www.iogany.org
EXECUTIVE COMMITTEE
Executive Director
Brad Gill, IOGANY/ Earth Energy Consultants
President
Ernie Rammelt, Chautauqua Energy Inc.
But, don’t get me started!
NYMEX Natural Gas Futures
12 Month Forward Strip Average Prices Through 02/17/16
Phone: 304.464.1176
Secretary
John Holko, Lenape Resources, Inc.
Brad Gill is the
Executive
Director of IOGA
of NY, a petroleum geologist
by trade and the
President of
Earth Energy
Consultants.
$5.00 $4.50 Treasurer
Mike Pedro, United States Gypsum Co.
DIRECTORS
Chuck DuBose, DLH Energy Service, LLC
James “Eddy” Grey, Triana Energy, LLC
Randy Hansen, Elexco Land Services, Inc.
John Heyer, Attorney at Law
Mike Hogan, Hogan Energy Consultants
Dennis Holbrook, Attorney
Tim Hull, Empire Energy E&P, LLC
Charlie Joyce, Otis Eastern Service Inc.
Gary Marchiori, EnergyMark, LLC
James Macfarlane, Minard Run Oil Co.
Jim Perkins, P&C Gas Measurement Services, Inc.
Steve Plants, Plants and Goodwin, Inc.
John Polka, National Fuel Gas Distribution Corp.
Jim Richert, GZA GeoEnvironmental, Inc.
Scott Sampson, Chautauqua Utilities, Inc.
Rod West, Gas Field Specialist, Inc.
Dave White, Independent Consultant
Roger Willis, Universal Well Services, Inc.
$4.00 $3.50 $3.00 THANK YOU!
$2.50 $2.00 2/18/2011 2/18/2012 2/18/2013 2/18/2014 2/18/2015 IOGANY WOULD LIKE TO THANK ALL OUR
2016 RENEWING MEMBERS.
Bloomberg Finance L.P.; CME/NYMEX; For Informa<onal Purposes Only APPALACHIAN GAS MONTHLY SPOT PRICE
We would also like to thank specific companies for their
Courtesy: EnergyMark, LLC (716) 614-1800
financial support with an additional donation along
Jan-12
Indicative Monthly Price
$
3.37
Jan-13
$
$
3.62
Jan-14
3.94
Jan-15
$
2.59
Jan-16
The Pipeline
$
2.10
Feb-12
$
2.89
Feb-13
$
3.48
Feb-14
$
5.57
Feb-15
$
2.58
Feb-16
$
Mar-12
$
2.64
Mar-13
$
3.75
Mar-14
$
4.96
Mar-15
$
2.76
Mar-16
Apr-12
$
2.37
Apr-13
$
4.29
Apr-14
$
4.55
Apr-15
$
2.00
Apr-16
May-12
$
2.09
May-13
$
4.18
May-14
$
4.39
May-15
$
1.90
May-16
Jun-12
$
2.45
Jun-13
$
4.16
Jun-14
$
3.96
Jun-15
$
2.09
Jun-16
1.92
Jul-12
$
2.76
Jul-13
$
3.56
Jul-14
$
3.61
Jul-15
$
1.99
Jul-16
Aug-12
$
3.02
Aug-13
$
3.07
Aug-14
$
3.11
Aug-15
$
2.04
Aug-16
Sep-12
$
2.58
Sep-13
$
3.30
Sep-14
$
3.03
Sep-15
$
1.89
Sep-16
Oct-12
$
3.22
Oct-13
$
3.39
Oct-14
$
2.92
Oct-15
$
1.77
Oct-16
Nov-12
$
3.53
Nov-13
$
3.39
Nov-14
$
2.91
Nov-15
$
1.87
Nov-16
Dec-12
$
3.83
Dec-13
$
3.47
Dec-14
$
3.77
Dec-15
$
2.04
Dec-16
2.90
Average
$
3.64
Average
$
3.89
Average
$
STAFF
Brad Gill, Executive Director (brgill@iogany.org) ext. 105
Vickie Mellody, Office Administrator (info@iogany.org) ext. 100
Lorri Ball, Bookkeeper/Administrative Assistant
(lorrib@iogany.org) ext. 101
ERDMAN ANTHONY
OTIS EASTERN SERVICE LLC
PATTON FOREST PRODUCTS
UNITED STATES GYPSUM CO.
2.13
2016 PIPELINE NEWSLETTER SCHEDULE
Spring - Copy deadline: February 15 for March issue
Summer – copy deadline: May 15 for June issue
Fall – copy deadline: August 15 for September issue
Winter – copy deadline: Nov. 15 for December issue
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Average
$
18
with their membership renewal!
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COMMITTEE CHAIRS
Legal Committee - John Heyer
Marketing Committee - Gary Marchiori
Marcellus Shale Committee - Eddy Grey
Operations Committee - Roger Willis
PAC Committee - Scott Sampson
Producer Committee - Ernie Rammelt
Public Relations Committee - John Holko
2.01
Spring 2016
The Pipeline
3
Spring 2016
■
Thank You!
Gary Marchiori
is President of
EnergyMark, LLC
in Williamsville,
NY. Gary worked
for the National
Fuel System, and
Texaco Natural
Gas for 17 years
before forming his own energy
supply company in 2002. EnergyMark now serves more than 8,000
customers in Western New York and
Northwestern Pennsylvania.
■
To the following companys
for sponsoring IOGANY’s
Board of Directors Meetings
January 20, 2016
E
lectric generation using
natural gas has grown over
the last several years as clean air,
water, and fuel economics have
driven out coal fired electric generation. A bright spot for our current
natural gas oversupply situation is
power generation use.
Daily power burn in the Unites
States is currently averaging 25
Bcf per day, which is 3.5 Bcf,
or 17% higher than last winter,
season-to-date. This increase is
Empire Energy E&P, LLC / Tim Hull
March 16, 2016
■
GZA / Jim Richert
■
Responsible
Reclamation
Understanding Energy Markets
Can Producers Break-even
By Gary Marchiori, President, Energy Mark LLC
Coal plant retirements, and more
favorable economics of coal-to-gas
switching, are the two major reasons
power burn is up despite warmer temperatures.
According to a report from Bentek
Energy, “Assuming the retired coal
plants were previously running at a
60% capacity
factor, and that
the new replacement gas
operates at a
7.5 MMBtu/MWh
heat rate, about
1.63 Bcf/d of the
increased gas
demand is from
gas-fired power
plants filling in for
the lost baseload
coal capacity.”
This means that
just under half of
the increase can be
attributed to the 15
MW of coal capacity
retirements in 2016,
and the other half,
An opportunity to restore diversity
• Conservation seed mixes
particularly impressive considering
national temperatures have averaged 47 degrees Fahrenheit, or 5
degrees higher than last year.
Temperatures in the Northeast
have been 8 degrees warmer
than last year, yet power burn in
this region is still 15% higher than
last year at this time. The largest
percentage increase so far is in
the Pacific Northwest, which is
currently burning 71% more natural gas to generate power than
last year.
• Native seeds
• Bioengineering
materials
ernstseed.com
sales@ernstseed.com
800-873-3321
or about 2.1 Bcf/d
can be attributed to
coal-to-gas switching.
Despite higher
coal-to-gas switching
levels, fuel switching
accounts for less
of the overall
demand for natural
gas than it did last
year.
The increased
demand for natural
gas in the power sector has certainly has a tremendous economic
effect on the cost of electricity for
the end user. With coal and nuclear
facilities continuing to be shut down
across the country, natural gas’ role
in power generation will continue
to grow. With ample supply, and an
increasingly solidified infrastructure,
electricity will continue to be supplied
reliably, and at low cost, for years to
come.
Truly
Green
Energy
Local Production Supplied Reliably to Local Customers
Every day, we buy locally produced natural gas for thousands of
customers. Contact us today to learn how to bring your production
to market and maximize value.
Gary Marchiori
716.614.1800
Tim Wright
President
www.energymarkllc.com
Vice President
6653 Main St. • Williamsville, NY 14221
The Pipeline
4
Spring 2016
The Pipeline
17
Spring 2016
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The Pipeline
16
Spring 2016
Seth D. Pullen is a
Senior Associate
with Hodgson
Russ LLP. Seth
concentrates his
practice in the
area of oil and gas
law. He assists
exploration and
production companies in all aspects
of the oil and gas industry. His experience includes acquisitions of leases
and wells, commercial real estate
transactions, related litigation, and
advising closely held businesses.
R
ecent market conditions
and low energy prices have
created significant financial pressure
on many companies in the oil and
gas industry, both in New York and
nationally. As a result, some oil and
gas production companies have
filed for bankruptcy and others may
be forced to consider that option in
coming months. One factor that a
company considering bankruptcy
needs to be aware of is that well
plugging liability under the New York
State Environmental Conservation
Law (“ECL”) may survive a filing for
federal bankruptcy protection, and
can become the personal liability of
the principal owners or officers of a
bankrupt company.
Article 23 of the ECL and Title 6
of the NY Codes, Rules and Regulations states that it is “unlawful for
any owner or operator to abandon
any well, wells or lease without
having plugged and abandoned such
well…” (6 NYCRR §555.1). The cost
of properly plugging and abandoning an oil or gas well can be quite
significant, and may far exceed the
financial security bond or deposit
that well operators are required to
maintain with the New York State
Department of Environmental Conservation (“DEC”). If a struggling oil
and gas production company files
for bankruptcy, the cost of plugging
its uneconomic wells may exceed
the amount of both the financial
security and the available assets of
its bankruptcy estate. The federal
bankruptcy code will shield owners
The Pipeline
Beware of Well Plugging Liability
when Contemplating Banruptcy
By Seth Pullen, Hodgson Russ LLP
from most debts of a company that
files for protection, but does not address liabilities for compliance with
laws and regulations. Such liabilities
can potentially survive bankruptcy,
and may attach to individuals who
are responsible for the company’s
compliance.
The DEC has not issued regulations or clear policies addressing
whether it will pursue individual
owners or officers of a bankrupt
company for unfunded plugging
liability. However, the unofficial position that the DEC takes is that failure
... “responsible officers” can be
held liable.
to properly plug and abandon an oil
or gas well is a violation of the ECL,
for which both a business and its
“responsible officers” can be held liable. If a violation of the ECL requires
cleanup or remediation, the DEC
will first pursue the business, but
will also seek an enforcement action
against any potentially responsible
persons or parties with significant
assets. Several decisions of the
DEC commissioner illustrate this
approach (In the Matter of Carney’s
Restaurant, Inc., DEC Case No. R520070221-671; and In the Matter of
Supreme Energy Corporation, DEC
Case No. 7-1780), where individual
business owners were found liable
for penalties and remediation costs
for violations of the ECL by the business.
These cases did not involve oil and
gas production, but demonstrate a
willingness by the DEC to pursue
owners for environmental liabilities of their businesses. The DEC
has also commenced enforcement
actions against the individual owner
of a dissolved company that was
the last registered operator of an
unplugged well, asserting various
violations of the ECL relating to
reporting, financial security and well
operations.
The DEC’s argument is that the
“responsible officer doctrine,” also
sometimes known as the “responsible corporate officer doctrine,” applies to make individual officers with
significant control over the actions
of a corporate entity jointly liable for
strict liability offenses by the company. This doctrine is an established
feature of federal common law and
Continued on page 15
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Spring 2016
ElexcoIOGA Newsltr 3.5x9.5col.pdf
1
2016-03-10
1:30 PM
Upcoming Events
IOGANY EVENTS
www.iogany.org/events.php
July 13-14, 2016
IOGANY Summer Meeting
Technical Seminar, Golf & Clay
Shoot Tournaments,
Exhibits & Barbecue
Peek’n Peak Resort
Findley Lake, NY
• Mineral and Surface Leasing
A FULL SERVICE • Right-of-Way Acquisitions
LAND COMPANY • Mineral Ownership/Title Curative
SERVING
• Seismic Permitting
NORTH AMERICA • Mapping/GIS Services
• Abstracts of Title
October 19-20, 2016
IOGANY Annual Meeting
Networking Receptions,
Technical Seminar
Holiday Valley Resort
Ellicottville, NY
Michigan
New York
(800) 889-3574
(866) 999-5865
ELEXCO LTD.
London, Ontario, Canada
C
M
Ohio
(740) 788-8838
Pennsylvania (412) 788-2200
In light of the potential for personal
liability, individual owners of a struggling company operating oil and gas
wells in New York should carefully
evaluate the extent of the company’s
plugging liability when considering
filing for bankruptcy protection. If
facing this situation, it would be wise
to consult with attorneys who are
familiar with both the ECL and the
bankruptcy code.
NEW PROSPECT COMPANY
(800) 603-5263
120 MARGUERITE DRIVE, SUITE 201 • CRANBERRY TOWNSHIP, PA 16066
www.elexco.com
MARK A. WILLIAMS
mwilliams@newprospect.com
Cell: (814) 449-8822
Consultant Business Development Manager
Engineering, Completion and Drilling Consultants
www.newprospect.com
Y
New Members
MY
Membership investment in IOGA of NY connects you to professional colleagues in New York State and beyond. A strong
and active membership is essential to IOGA of NY’s advocacy and public education efforts. Thank you for helping IOGA
of NY grow. Encourage your colleagues to join you as an IOGA of NY member. New members as of March 1, 2016
CY
CMY
K
GENEVIEVE DISPENZA, Senior
Energy Trader
National Fuel Resources, Inc.
165 Lawrence Bell Dr,, Williamsville, NY 14221
716-630-6720 / 716-630-6751 fax
gdispenza@nfrinc.com
Marketer
RICHARD GARDNER, Sr. VP of
Business Development
Millennium Pipeline Co., Inc.
One Blue Hill Plaza, 7th Floor, #1565
Pearl River, NY 10965
845-620-1300 / 845-620-1320 fax
Allied Industry
RON HAPPACH, Chief Operating Officer
845-620-1300 / 845-620-1320 fax
Allied Industry
SAM MCLAUGHLIN, Director of Oil & Gas
Fisher Associates
400 Southpointe Blvd, Ste 105, Canonsburg, PA 15317
724-749-1208
smclaughlin@fisherassoc.com
Professional
July 21-22, 2016
PIOGA Pig Roast, Equipment Show
& Conference
Seven Springs Mountain Resort,
Champion, PA
July 19-21, 2016
KOGA 80th Annual Meeting
Northern Kentucky Convention Center
Covington, KY
This one before PIOGA Pig Roast
August 7-9, 2016
IOGAWV Summer Meeting
The Greenbrier
White Sulphur Springs, WV
September 9-10, 2016
IOGAWV Sport’s Weekend
Lakeview Golf Resort
Morgantown, WV
The Pipeline
to make principal equity owners
or officers of a bankrupt company
personally liable for well plugging
liability. However, even if such an
argument was ultimately successful,
it would probably require protracted
and expensive litigation through the
DEC’s administrative law process,
followed by additional appeals
through the court system. As a further obstacle, the expenses of such
litigation would have to be paid for
by the individual attempting to avoid
liability.
Office: (724) 742-1122
Fax: (724) 742-4703
CM
April 7, 2016
PIOGA Spring Meeting
Rivers Casino
Pittsburgh, PA
certain federal and state health and
safety laws (See United States v.
Dotterweich, 320 U.S. 277 (1943)),
but neither the ECL, NYCRR or
any reported New York court case
explicitly applies this doctrine to well
plugging liability. The ECL specifically designates certain fees collected by the DEC to cover the costs of
plugging abandoned wells where no
solvent owner is available to do so.
A reasonable counterargument
can be made that the responsible officer doctrine should not be applied
ELEXCO LAND SERVICES, INC.
INDUSTRY EVENTS
March 16-18, 2016
OOGA Winter Meeting
Hilton Columbus at Easton
Columbus, OH
6
Spring 2016
The Pipeline
PAUL MCNALLY, P.M.P., Senior
Project Manager
Moody and Associates, Inc.
685 Broad Street Extension, Ste 1,
Waverly, NY 14892
607-565-8800 / 607-565-8805 fax
pmcnally@moody-s.com
Professional
JIM NICHOLS, Director of Operations
Blue Rock Energy Inc.
432 N Franklin St, Syracuse, NY 13204
315-432-4111
jnichols@bluerockenregy.com
Marketer
NICHOLAS PASQUARELLA, Gas
Accountant III
National Fuel Gas Distribution Corp.
6363 Main St, Buffalo, NY 14221
716-857-7010
pasquarellan@natfuel.com
Allied Industry
15
BILL STONER, President
Universal Well Services, Inc.
201 Arch St, 2nd Fl, Meadville, PA 16335
814-337-1983 / 814-333-8877 fax
bill.stoner@univwell.com
Allied Industry
WILLIAM TREMBATH, Natural Resources
Group Manager
AECOM
257 W. Genesee St., Suite 400, Buffalo, NY 14202
716-856-5636 / 716-856-2545 fax
william.trembath@aecom.com
Professional
MATT XANDER, Sales Manager
Axco Energy Inc.
36 E. South St., Corry, PA 16407
814-665-8268 / 814-663-0277 fax
axco@erie.net
Allied Industry
Spring 2016
activity. Local
natural gas
distribution has
been an economic
Godsend to the
northern tier of PA
and will expand
this year, e.g.,
a new industrial
plant is under
construction and
will create 150
jobs.
The Constitution
Pipeline, along with Leatherstocking
Gas Company, LLC will bring natural
gas to areas of upstate that can only
rely on fuel oils and propane for their
If we were allowed to convert to
natural gas, greenhouse gas emissions would be cut by 30%.
All of us that support natural gas
development and the use of natural
gas in New York State, need to support the construction of the Constitution
Pipeline.
This is vital infrastructure with tremendous economic, quality of life,
and environmental benefits.
energy needs. Only 8% of homes and
businesses have the availability to
use natural gas.
Sam McLaughlin, Director of Oil
and Gas
Fisher Associates
Q - What is your new position at
Fisher Associates?
A - My position is Director of Oil &
Gas Work where I will assist them
in further developing their growing
portfolio of regional and nationa
energy projects. They provide
consulting services to many of the
top oil and gas companies in the
country.
Q - What is your experience in the
energy industry?
A - Previously I spent over 30 years
at CONSOL Energy. I started in the
mines as a laborer while going
through WVU. After receiving my
degree in Mining Engineering, I
was hired full time in the mines
and acquired my Forman’s papers.
I have been a section boss, longwall boss, longwall coordinator,
shift foreman, mine foreman,
asst. superintendent, manager of
industrial engineering, manager
of special project engineering. In
2005, I moved to the gas side of
The Pipeline
Q - Why did you choose Fisher Associates after retiring from CONSOL?
A - When I decided to retire from
CONSOL Energy in September 2015,
I wanted to go to work for a company
that valued their people. After meeting
with Fisher, I knew that this was the
place for me. Fisher not only values
their clients but also value their employees and this was something that
was very evident when I was outside
looking in. The decision was an easy
one for me. I am excited to continue
building on to Fisher’s success in the
Oil and Gas industry. Fisher values
the client and the people that carry
the Fisher brand. This, I believe, is
a recipe for success that will extend
across any industry.
Q - Your LinkedIn profile says you’ve
worked with the Greene County, PA
Habitat for Humanity. What is the
most memorable project that you have
worked on?
14
Election 2016
By Misichael Michael
an as- McDonald By Michael McDonald
sistant
professor / Posted on Mon, 08 February 2016 Oilprice.com of finance and a
Oilprice.com / Posted on Mon, 08. February 2016
frequent
consulMichael is an assistant professor of finance and a frequent cconsiderably onsultant to cdompanies iminish the power of the EPA as
tant to comparegarding capital structure decisions and investments. He holds a
P
hD i
n f
inance states and local governments. This would likel
nies regarding
and his research has been quoted in the Wall Street Journal and by Bloomberg. He capital
structure
U.S.
economy.
Trump presidency
decisions
investments.
holds
teaches and
classes in the aHe
reas of corporate finance and iAnvestments. He has examined international would definitely help investors in
a PhD in finance and his research has
differences in financial markets, asset pricing anomalies, and the role of analysts in setting securities most conventional energy compabeen quoted in the Wall Street Journal
prices as well as He
acting as classes
a business consultant for several ifferent companies in the areas of finance and
by Bloomberg.
teaches
nies, especially
if thedRepublicans
inand the areas
of corporate finance and
economics. retain control of Congress as many
investments. He has examined internaare projecting.
tional
financial markets,
As tdifferences
he 2016 pin
residential race starts to heat up it is time to take a look at the remaining serious asset pricing anomalies, and the role of
candidates and what each one might mTed
ean Cruz
for energy policies and energy companies in the U.S. While a analysts in setting securities prices as
lot ascan happen in the nconsultant
ext couple of months, the current leaders for the Republican Party are Donald well
acting
as a business
being atRepublican,
forTrump, several T
different
companies
in the
ed Cruz, and Marco Rubio. For tDespite
he Democrats, he race will lCruz
ikely come down to a long brawl For instance,
Clinton has been cited
is perhaps not as favorably inclined
areas
of finance
and C
economics.
Clinton between Hillary linton and Bernie Sanders. As a bonus, it’s also worth looking aHillary t what M
ichael as being against offshore oil drilling,
against
Keystone
XL pipeline,
Hillary Cthe
linton as president would and
likely contin
s the 2016 presidential race
against drilling in the Arctic.
posing all energy subsidies including
For i
nstance, C
linton h
as b
een c
ited as being a
Donald Trump starts
to heat up it is time to
The current market turmoil has crethose for oil companies. While he
pipeline, and drilling in the Arctic. take a look at the remaining serious
ated
a once
inaagainst generation
opportunihas supported revoking offshore
Defying s
keptics a
nd c
onventional w
isdom D
onald T
rump a
ppears t
o b
e a
r
eal p
ossibility a
s t
he candidates and what each one might
ty for savvy energy investors.
drilling moratoriums in the past, it is
current market tburmoil has prints
created a once
Republican Presidential nominee. disappointed with a second lace finish The in Iowa’s ut media
mean
for energy
policies and
energy Trump Whilst
thecaucuses, mainstream
very
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if thatppoint
Whilst t
he m
ainstream m
edia p
rints scare stor
companies
in the
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he is doing well U.S.
in NWhile
ew Hampshire and would
nationally in the pfor
olls. Should Trump win scare
the nomination and be relevant
energy
comcanthen happen
the next
the ufloor
smart
investors
are setting p their next winning are
oil plays. panies
given
current price
ofgoil.
the einlection, it icouple
s likely of
that oil and natural gas the
companies would et a big bthrough
oost. Trump has actively months, the current leaders for the
setting
up
their
next
winning
oil
plays.
Cruz
is
a
supporter
of
the
Keystone
discussed his interest in confronting OPEC and making the U.S. energy independent. He is a firm Republican Party are Donald Trump,
In addition, Clinton supported the
XL pipeline, however, and has supIn a
ddition, linton supported the December 2
for oil and its importance he overall U.S. ethat
conomy. Trump presidency would 2015
dCefinitely Tedadvocate Cruz, and
Marco
Rubio.
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December
Paris Climate Accord.
the view
globalAwarming
likely be isuggests
nclined new regulations tha
help investors in mwill
ost likely
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f would
Democrats,
the race
come energy All
ofretain this
likely
is a natural
phenomenon
rather
than
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to a long
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Hillary
and automakers. As new
a staunch advocate of env
be
inclined
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manmade.
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any abetween
re projecting. Clinton and Bernie Sanders. As a
that
would
utilities,
actions to sharm
upport solar conventional
and wind power comp
bonus,
also worth looking at what
Ted Cit’s
ruz energy
companies,
automakers.
Marco Rubio
those industries, it and
is unclear what additional c
Michael Bloomberg might do for
As a staunch advocate of environenergy companies, Clinton Presidency mi
Despite a Rthe
epublican, Cruz is perhaps not as favorably towards energy companies as so awould
energy
if hebeing enters
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mental
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Clinton
likely
Rubio
appears
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ronounced n
egative i
mpact race
and wins.
actions
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Trump or Rubio. Cruz is cited as opposing energy subsidies ncluding oil cvarious
ompanies. While er ofall conventional
fossil ifuels
like those for take
and wind
power
companies.
Trump
Cruz. Inin particular,
he has supported revoking offshore drilling mand
oratoriums the past, Rubio
it is very unclear at this stage if that With the
Bernie passage
Sanders of continuing subsiDonald Trump
recent
is
in
favor
of
stopping
the
EPA’s
point would be relevant for energy companies given the current price of oil. Cruz is a supporter of the dies for those industries, it is unclear
clean Power Plan, which would
Sanders is arguably even measures
more progressive tha
Keystone XL pipeline, however, and has supported the view global warming what
is a nadditional
atural Defying
skeptics
and conventional
concrete
likely
help certain
utilitythat companies
the s
ame p
olicies a
s C
linton or Obama, and po
phenomenon rather appears
than manmade. wisdom
Donald Trump
to
Clinton could take to help renewtremendously and could provide a
be a real possibility as the Repubable
energy
companies,
soOabama’s Clintonproposed $
energy production. While small boost to coal miners. Rubio as
Macro Rubio nominee. Trump
lican
Presidential
Presidency
might
have
a
muted
President would also considerably
presidency, if Sanders were to beffect
ecome preside
disappointed with a second place
on those firms. It would likely have a
diminish the power of the EPA as a
allow h
im t
o i
mplement t
hat t
ax, Rubio appears to be a sbut
upporter fossil fuels like Trump and Cruz. In particular, Rubio is in on allwhich of cou
finish
in Iowa’s
caucuses,
he is of conventional pronounced
negative
impact
regulatory authority instead giving
Sanders is also in favor of a tax on carbon emi
favor of in
stopping the EPA’s and
clean Power Plan, likely companies doing
well
New Hampshire
conventional
energy
firms.
more
ofwahich role w
toould states
andhelp localcertain utility nationally
in the polls.
Trumpa small businesses across a variety of indus
tremendously and cShould
ould provide boost to coal miners. s President numerous would also governments.
This
wouldRubio likelyahelp
win the nomination and then the
Bernie
Sanders
many conventional energy compabe harmful for most major U.S. manufactures election, it is likely that oil and natnies.
ural gas companies would get a big
Sanders
is arguably even more
Michael Bloomberg boost. Trump has actively discussed
progressive than Hillary Clinton, so it
Hillary Clinton
his interest in confronting OPEC
If M
ichael loomberg does eallnd p entering th
is
likely
thatBhe
would adopt
ofuthe
and making the U.S. energy indesame
policies
as
Clinton
or
Obama,
Hillary Clinton as president would
both political parties into turmoil. Should Bloo
pendent. He is a firm advocate for
and
potentially
put even
greater
likely continue many of the policies
represent a middle ground between anti-‐rene
oil and its importance in the overall
advocated by President Obama.
Continued on page 9
towards energy companies as
What Our Members Say
CONSOL and was GM of Northern
Operations, VP of SWPA Operations
and the Corporate VP of Land Resources - Marcellus activity. I led the
development of CONSOL’s directional
drilling program for the Marcellus /
Utica shale region.
Bloomberg might do for energy if he enters residential and ins. Trumpthe or PRubio.
Cruz risace cited
aswop-
A - I really enjoyed the times when
many of my CONSOL co-workers
would volunteer with me. Sometimes
there would 20-25 of us working
together for an entire weekend to help
those in our community. It was wonderful when those two entities came
together for a common goal to help
those in need.
Q - Concerning your hobbies of golf
and boating – what is the most interesting golf course you’ve played and
what is your favorite lake to boat on?
A - I had a wonderful time playing
golf in the Pro-Am at The Greenbrier
with David Hearn. It was quite a
memorable event. I love to boat and
fish anywhere but my favorite spot
is Stonewall Jackson Lake in West
Virginia. It is a wonderful scenic lake
and so relaxing!
Q - Is there anything else you’d like
us to know about you?
A - I’ve been married for 33 years to
my high school sweetheart. We have
two grown children and two grandchildren who we adore. We are a very
close knit family.
Spring 2016
A
The Pipeline
7
energy policies of the Democrats. Bloomberg environmental concerns. The coal industry, ho
Spring
2016
money trying to kill off coal plants in the Unite
Industry Cycle: Lower for Longer
How much longer can you take?
Twin Tiers
Society of Petroleum Engineers
Would
help
us us
establish
a New
Twin Tiers SPE
WouldYOU
YOU
help
establish
a new
Student
Twin
Tiers Chapter???
SPE Student CHAPTER???
Did you know
students
a college
or university
offeringor
a four-year
degree
Did that
YOU
know at
that
students
at a college
university
offering
four-year
degree*
the oil
and gas
related
to theaoil
and gas industry
mayrelated
petition to
to form
an official
industry
may
petition
an official
SPE student
chapter?
We to
askform
your help!!
SPE student chapter?
The process is NOT complicated
and the
rewards are fantastic!
We ask your
help!!
❶ There must be 15
(Yes only 15) students at the college or university
Thewant
process
is NOT
complicated
who
to be SPE
members.
And
are fantastic
❷ A faculty member must be found to act
asthe
the rewards
new Student
Chapter's
FIRST: ADVISOR
There must be 15… [yes only 15] … students at the
❸ There
mustor
beuniversity
15 (Yes only
15) WANT
students
the
college
or university
college
who
toatbe
SPE
members.
who want to be SPE members.
SECOND:
faculty of
member
muststudents
be found
toelect
act as
the
❹ Students
call aAmeeting
INTERESTED
and
officers
new
Student
Chapter’s
ADVISOR.
➎ The DEPARTMENT Head “OK” is a BIG must!
❻ the
usual paperwork
then [ie.
a new
SPETiers]
student
Chapter is to
onthe
THIRD:
The SPE and
Section
Twin
CLOSEST
their
way or university must request a letter of support.
college
If YOU
would Students
like to help
establish
a new
SPE Student CHAPTER
FOURTH:
call
a meeting
of INTERESTED
students
Please
contact
me:
and elect officers.
Nat Hendricks Chairperson, Twin Tiers SPE gnathendricks@verizon.net
FIFTH: The DEPARTMENT head “OK” is a BIG must…!
ADVERTISE IN
THE PIPELINE
AND REACH LIKE
MINDED BUSINESSES
VISIT
WWW.IOGANY.ORG
FOR DETAILS.

P.S. we have a new Twin Teirs SPE Student Chapter at Lackawanna College
SIXTH: ………the
paperwork…….
and on inusual
the works
at Cornell University!
andthen a new SPE student CHAPTER is on their way.
[*] Two year schools need approval from HQ…
PURCHASING
Michē Needham
C. Needham, CPA Michéē
is a Tax Principal
mneedham@lumsdencpa.com atEmail: Lumsden
& McCormick, LLP and
By Miché C. Needham, CPA
isMichē Needham is a Tax Principal at Lumsden & McCormick, LLP and is responsible responsible for
development
and and implementation for development tax esupply
ngagement strategies. She works with may appear likely. These
• Evaluateof your
chain
bankruptcy
implementation
of
business and individual tax clients in order to assure conformity with federal management, not by demandsolutionsand bear many implications and
tax
engagement
state tax standards and to minimize t
axes a
nd r
elated c
osts. ing price concessions, but
companies should plan for the best
strategies. She
working differently with your
but expect the worst. Understanding
works
with
business
and individual
suppliers
and
reaching
fair
pricyour options and preparation are key
tax
clients in order to assure coning
models.
elements to any successful restructurformity with federal and state tax
Climate Change is Focus as Independent Producers Struggle ing or reorganization. But in the end,
standards and to minimize taxes and
• The same can be said for your
you must still have a business and
related costs.
base
maintaining
This year's proposed Federal Government budget customer
is aimed to take and
action on climate change cash
by repealing flow plan which are feasible to
ordinary business deductions for the Oil and Gas Industry. Many independent producers continue
and oil field your
customer
relationships,
and survive. You are strongservices companies are feeling the pressure on returns, cutting capital expenditures and ly
limiting cash to seek the advice of
work differently
to reach
a fair
encouraged
he energy
sector
has always
flow gbeen
rowth. Some independents will not survive pricing
and be model
forced tduring
o sell othe
ff or current
consolidate as athey cannot trusted
professional to guide you
impacted
by ever-presgenerate t
he c
ash f
low n
eeded t
o m
aintain c
apital p
rograms a
nd i
nvestments. economic
landscape.
through your options, implications and
ent industry cycles but at the close
outcomes.
of 2015 the bust has not seen its
The focus on climate change would boost funding for alternative energy sources such as wind and solar While much of this may seem
As the bust continues to make
end. Massive cost cutting has
and permanently extend breathing
tax credits specific to this sector. funding these renewable energy easier
said
than The done,
usingfor these
its impact,
the industry will hardly
offered
some short-term
sources would come from increasing tax revenues from the Oil and Gas Industry and trimmed spending strategies
to
emerge
from
this
disappear. Every company will be
space. Could this panicky response
on the Department of Energy's fossil energy downturn
research. Twill
herefore, the result would the Oil in a different way. You will
help prepare
you
to be to disallow challenged
leave
your business unequipped for
and Gas Industry from using targeted deductions, which are not unique to this industry, to fund the tax cope
more
effectively
with
the
shorthave to rise to the occasion, reposithe next turn of the business cycle?
credits that are specific to the renewable energy sector. ening
boom and bust cycle.
tion yourself accordingly and seek
As the entirety of the energy sector
For those much farther in distress,
strategic long-term opportunities for
continues to struggle with depressed
Higher taxes are not the answer needed to bracing
help independent producers stay afloat for financial
restructuring
or in this the sector future.as commodity prices and reduced
prices plummet. The tax proposal would discourage future investment in an industry that is providing liquidity, it is time to reassess the
abundant, affordable domestic energy, supporting growth and job creation while moving our nation purpose and strategic direction of
toward energy independence. your company.
We need policies that will encourage investments and allow America to maintain its competitive edge in • Your business strategy should
the market place. If not, the future status of our independent producers as we know it may cease to be focused on what you do best
Retirement congratulations go out
exist. The Big Oil Companies will be quick to merge or acquire our struggling producers and field service and where you already have
to the following
gentlemen who
companies to gain an edge into regions they largely missed out on. Will you be able to survive the massive strength, instead of
have been long-time members of
shakeout? broadening your business to
IOGANY. We wish you the very
pursue every opportunity you
™ Call-‐Up session to The Independent Petroleum Association of America will be holding a Congressional best in the next season of your life!
see.
educate officials on the impact this proposal will have on independent producers. I strongly encourage you to visit, www.iogany.org/links and select Independent Petroleum Association of America for more MIKE BIELAWSKI
• Despite tighter cash flows, avoid
BROWZ
details. Your cost
participation is critical our independent producers. arbitrary
cutting and
seekto the future of NETWORK
National Fuel Resources
longer-term solutions. The need
MEMBER
to build capability with a sustainMIKE SENDOR
•DrillingPadConstruction
able people strategy remains
Nussbaumer & Clarke
•SWPPPImplementation
essential to stay afloat and
•RoadConstruction
be prepared for the uncertain
GREG SOVAS
future.
•PublicRoadRestoration
XRM, LLC
T
In the News
If YOU would like to help establish
a new SPE Student CHAPTER please contact me:
LOCAL PRODUCTION
FOR 25 YEARS.
Nat Hendricks, Chairperson, Twin Tiers SPE
GNATHENDRICKS@VERIZON.NET
p.s. we have a newTwin Tiers SPE Student Chapter
at Lackawanna College
and one in the works at Cornell University….
Since 1991, National Fuel Resources, Inc.’s
(NFR) origins as a deregulated natural gas
supplier have been rooted in local Appalachian
production.
TM
We take pride in our business reputation and
NFR is proud to support and be a member of
the Independent Oil & Gas Association of NY.
• Seek efficiencies by capturing
the value of technology to help
facilitate more work while reducing overhead.
•WetlandRestoration
•TemporaryBridges
•CraneRentalandErection
•EnvironmentalRemediation
WWW.DACOLLINS.COM
DAN CZECHOWICZ • (716) 630-6717 • DCZECHOWICZ@NFRINC.COM
The Pipeline
8
Spring 2016
The Pipeline
13
Spring 2016
Rob is a board member of the Joint
Landowners Coalition of New York and
the JLC United. He also works as the
Videographer for the JLCNY. Rob is a
NYS Licensed Massage Therapist in
Binghamton, NY. As a lifelong resident
of Vestal, NY he became involved in the
landowners efforts to bring natural gas
development to NYS after learning that
it truly can be done safely and responsibly with sensible regulation.
S
ome very important information was presented at the Rally
in Afton for the Constitution Pipeline.
The Rally, sponsored by the
Joint Landowners Coalition of NY
(JLCNY), took place on Saturday,
January 23rd, at The River Club of
Afton, Afton, New York.
The turnout was terrific with nearly
400 attending from Labor,
Landowners, the Business Community, and
Local and State Leadership. Eleven spoke representing the attendees.
The complete rally video
can be seen on the jlcny.
org website. Video link:
http://www.jlcny.org/site/
recent-videos
The Afton rally followed
a vigorous ‘Postcard to
Cuomo’ campaign which
saw almost 13,000 postcards signed
and sent to the governor in support
of the Constitution Pipeline.
This project means jobs for idle labor union members, some of which
are running out of their unemployment insurance. In fact, 2400 jobs
and $130 million in labor income
would be generated from the Constitution Pipeline project.
It will also generate $13 million in
annual property tax revenue. Approximately 60% will be paid directly
to benefit local school districts along
the Constitution Pipeline route, lowering the tax burden for residents.
There are 2.5 million miles of
pipeline in the US. The NYS Energy
Plan states that NY needs additional
pipelines, and the 125-mile Constitution Pipeline is part of that plan.
The Pipeline
Pipeline Rally in Afton
By Rob Rano, JLCNY Board Member
It will serve approximately 3 million
homes. Natural gas would be made
available through 4 delivery taps
along the Constitution Pipeline route
by Leatherstocking Gas Company,
LLC. This will benefit homes, businesses, and schools in New York’s
Southern Tier as increased natural
gas use has in Northern PA.
The Constitution Pipeline received
Federal Energy Regulatory Commission (FERC) approval for the project
on 12-02-14. The project is currently
awaiting the Section 401 Water Quality Certification from the NYS DEC
and the Clean Water Act Section 404
permit from the US Army Corps of
Engineers.
On 02-03-16, FERC authorized the
limited tree felling activities along the
pipeline right-of-way in PA. FERC
has not yet authorized tree felling for
the NY portion of the project. This
construction work space to fell trees
is between November 1st and March
31st. Missing this window is more
needless delay.
Dave Marsh, Business Manager
for Laborers Local 785 (LiUNA), read
a letter recently submitted to Governor Cuomo by Armand Sabitoni,
LiUNA’s General Secretary Treasurer
and New England Regional Manager. In his letter, Sabitoni states: “I
truly believe that the years of study,
public comment, expert analysis and
voluminous reports clearly justify
the issuance of the appropriate NYS
DEC permits for this project.”
12
Dave Marsh, asked the question,
“Can you imagine a company coming to a state wanting to invest $1
Billion, with NO tax incentives, to
build important infrastructure that
will benefit the towns and counties,
and the state puts them through this
BS? What’s going on?”
Mike Zagata, Former NY DEC
Commissioner, stated he hoped the
governor would let the DEC do their
job. He said, “The Mission of the DEC
is to protect the environment AND
maintain a vital healthy economy. They
are not mutually exclusive, they are
intertwined.”
Dick Downey, Unatego Central
School District Board Member / Unatego Area Landowners Association
President, stated, families in the
area now pay $3000/year to heat
and cook with propane. Natural gas
would cut that cost by 30% saving
families $900/year. The Unatego
School District last year spent
$280,000 on propane to heat the
schools; with natural gas the cost
would be only $8,000.
Michael German, President &
CEO Leatherstocking Gas Company,LLC, explained, Without the
Constitution Pipeline, there is no
gas supply, and no local gas distribution. Leatherstocking will continue to
spend 10’s of millions of dollars in PA.
PA will continue to get the economic
benefit, the jobs, and the economic
restrictions on conventional energy production. While
Obama’s proposed $10-per-barrel tax on oil is not going to
happen during his presidency, if Sanders were to become
president, it is possible circumstances could arise that would
allow him to implement that tax, which of course would be
extremely damaging to oil companies. Sanders is also in
favor of a tax on carbon emissions which would have wide
ranging impacts for numerous businesses across a variety of industries. By and large then, a Sanders presidency
would likely be harmful for most major U.S. manufactures
and energy companies.
Michael Bloomberg
If Michael Bloomberg does end up entering the race and
running for President it could certainly throw both political
parties into turmoil. Should Bloomberg become President,
it’s likely that he would represent a middle ground between
anti-renewables policies of the Republicans and anti-conventional energy policies of the Democrats. Bloomberg has
certainly shown support for climate initiatives and environmental concerns. The coal industry, however, would not be
spared. Bloomberg has spent a lot of money trying to kill off
coal plants in the United States.
However, Bloomberg has also shown a steak of non-ideological pragmatism that includes being willing to approve
the Keystone XL pipeline under certain conditions. Given
that pragmatism and his reputation as a centrist, Bloomberg
would likely have a positive impact on both conventional
energy companies and renewables firms alike.
716-372-0395
716-372-0446 (F)
also admitted in:
pennsylvania and colorado
John H. Heyer
attorney at law
P.O. Box 588
Olean, new york 14760
exchange national
bank bldg.
ContinContinued on page 14
Spring 2016
The Pipeline
9
Spring 2016
O C
ur he
N ck
ew O
Lo ut
ok
!
COMING SOON!
2016
Membership
Directory
July 13-14, 2016
1405 Olde Road, Findley Lake, NY
2016
Member Directory
IOGANY is excited to introduce our New 2016
Directory which will be a 3 ring binder design.
We ask that you keep the binder each year and
we’ll send you the updated inside pages each
new year.
Technical Sessions · Fabulous Cocktail
Reception · Golf Tournament · Clay
Shoot Tournament · Barbecue ·
Outdoor Equipment Show
Thanks again go out to Dave Perazone with Danzer
Forestland, Inc for his graphic design services for the
inside cover page. THANK YOU DAVE FOR YOUR
SUPPORT!
Reinventing American Energy.
Reinvigorating the American Economy.
Creating American Jobs.
Support YOUR Independent Oil & Gas Association
38 Lake St. Hamburg, NY 14075 • Tel: 716-202-4688 • Fax: 716-202-4689 • www.iogany.org • info@iogany.org
PRESS RELEASE
Annual Meeting
October 19-20, 2016
The Independent Oil and Gas Association of New York (“IOGANY”) has announced its designation of the
exclusive publisher and advertising sales agent for the IOGANY Buyers’ Guide (the “Guide”) — Overland
Park, Kan.-based Strategic Value Media, a leading nationwide provider of print and digital media solutions to
national, state and local trade and membership associations. IOGANY is proud to provide its members with
this exclusive, easily accessible, year-round, valuable resource that is expected to be first available this coming Spring.
“This comprehensive Guide offers access to a vast network of industry suppliers,” said Brad Gill, Executive
Director of IOGANY. “We’re pleased to offer such a needed resource, which will greatly assist industry professionals in making educated purchasing decisions throughout the year.”
The Guide will feature updated and expanded company and product listings, in addition to other valuable
information relating to the law enforcement industry. The Guide provides users with an efficient way to browse
for goods and services and offers IOGANY suppliers and companies exceptional visibility by showcasing their
products and services to a targeted, industry-specific buyer group.
NYS Route 219, Ellicottville, NY
~ New location this year! ~
Networking Receptions, Technical Presentations
and Keynote Speakers
The Guide will be accessible through the IOGANY website at www.iogany.org. We encourage you to take advantage of this exceptional opportunity to highlight your products and services. To learn more about advertising
your product or services in the Guide, please email iogany-advertise@svmmedia.com
The Pipeline
10
Spring 2016
The Pipeline
11
Spring 2016
O C
ur he
N ck
ew O
Lo ut
ok
!
COMING SOON!
2016
Membership
Directory
July 13-14, 2016
1405 Olde Road, Findley Lake, NY
2016
Member Directory
IOGANY is excited to introduce our New 2016
Directory which will be a 3 ring binder design.
We ask that you keep the binder each year and
we’ll send you the updated inside pages each
new year.
Technical Sessions · Fabulous Cocktail
Reception · Golf Tournament · Clay
Shoot Tournament · Barbecue ·
Outdoor Equipment Show
Thanks again go out to Dave Perazone with Danzer
Forestland, Inc for his graphic design services for the
inside cover page. THANK YOU DAVE FOR YOUR
SUPPORT!
Reinventing American Energy.
Reinvigorating the American Economy.
Creating American Jobs.
Support YOUR Independent Oil & Gas Association
38 Lake St. Hamburg, NY 14075 • Tel: 716-202-4688 • Fax: 716-202-4689 • www.iogany.org • info@iogany.org
PRESS RELEASE
Annual Meeting
October 19-20, 2016
The Independent Oil and Gas Association of New York (“IOGANY”) has announced its designation of the
exclusive publisher and advertising sales agent for the IOGANY Buyers’ Guide (the “Guide”) — Overland
Park, Kan.-based Strategic Value Media, a leading nationwide provider of print and digital media solutions to
national, state and local trade and membership associations. IOGANY is proud to provide its members with
this exclusive, easily accessible, year-round, valuable resource that is expected to be first available this coming Spring.
“This comprehensive Guide offers access to a vast network of industry suppliers,” said Brad Gill, Executive
Director of IOGANY. “We’re pleased to offer such a needed resource, which will greatly assist industry professionals in making educated purchasing decisions throughout the year.”
The Guide will feature updated and expanded company and product listings, in addition to other valuable
information relating to the law enforcement industry. The Guide provides users with an efficient way to browse
for goods and services and offers IOGANY suppliers and companies exceptional visibility by showcasing their
products and services to a targeted, industry-specific buyer group.
NYS Route 219, Ellicottville, NY
~ New location this year! ~
Networking Receptions, Technical Presentations
and Keynote Speakers
The Guide will be accessible through the IOGANY website at www.iogany.org. We encourage you to take advantage of this exceptional opportunity to highlight your products and services. To learn more about advertising
your product or services in the Guide, please email iogany-advertise@svmmedia.com
The Pipeline
10
Spring 2016
The Pipeline
11
Spring 2016
Rob is a board member of the Joint
Landowners Coalition of New York and
the JLC United. He also works as the
Videographer for the JLCNY. Rob is a
NYS Licensed Massage Therapist in
Binghamton, NY. As a lifelong resident
of Vestal, NY he became involved in the
landowners efforts to bring natural gas
development to NYS after learning that
it truly can be done safely and responsibly with sensible regulation.
S
ome very important information was presented at the Rally
in Afton for the Constitution Pipeline.
The Rally, sponsored by the
Joint Landowners Coalition of NY
(JLCNY), took place on Saturday,
January 23rd, at The River Club of
Afton, Afton, New York.
The turnout was terrific with nearly
400 attending from Labor,
Landowners, the Business Community, and
Local and State Leadership. Eleven spoke representing the attendees.
The complete rally video
can be seen on the jlcny.
org website. Video link:
http://www.jlcny.org/site/
recent-videos
The Afton rally followed
a vigorous ‘Postcard to
Cuomo’ campaign which
saw almost 13,000 postcards signed
and sent to the governor in support
of the Constitution Pipeline.
This project means jobs for idle labor union members, some of which
are running out of their unemployment insurance. In fact, 2400 jobs
and $130 million in labor income
would be generated from the Constitution Pipeline project.
It will also generate $13 million in
annual property tax revenue. Approximately 60% will be paid directly
to benefit local school districts along
the Constitution Pipeline route, lowering the tax burden for residents.
There are 2.5 million miles of
pipeline in the US. The NYS Energy
Plan states that NY needs additional
pipelines, and the 125-mile Constitution Pipeline is part of that plan.
The Pipeline
Pipeline Rally in Afton
By Rob Rano, JLCNY Board Member
It will serve approximately 3 million
homes. Natural gas would be made
available through 4 delivery taps
along the Constitution Pipeline route
by Leatherstocking Gas Company,
LLC. This will benefit homes, businesses, and schools in New York’s
Southern Tier as increased natural
gas use has in Northern PA.
The Constitution Pipeline received
Federal Energy Regulatory Commission (FERC) approval for the project
on 12-02-14. The project is currently
awaiting the Section 401 Water Quality Certification from the NYS DEC
and the Clean Water Act Section 404
permit from the US Army Corps of
Engineers.
On 02-03-16, FERC authorized the
limited tree felling activities along the
pipeline right-of-way in PA. FERC
has not yet authorized tree felling for
the NY portion of the project. This
construction work space to fell trees
is between November 1st and March
31st. Missing this window is more
needless delay.
Dave Marsh, Business Manager
for Laborers Local 785 (LiUNA), read
a letter recently submitted to Governor Cuomo by Armand Sabitoni,
LiUNA’s General Secretary Treasurer
and New England Regional Manager. In his letter, Sabitoni states: “I
truly believe that the years of study,
public comment, expert analysis and
voluminous reports clearly justify
the issuance of the appropriate NYS
DEC permits for this project.”
12
Dave Marsh, asked the question,
“Can you imagine a company coming to a state wanting to invest $1
Billion, with NO tax incentives, to
build important infrastructure that
will benefit the towns and counties,
and the state puts them through this
BS? What’s going on?”
Mike Zagata, Former NY DEC
Commissioner, stated he hoped the
governor would let the DEC do their
job. He said, “The Mission of the DEC
is to protect the environment AND
maintain a vital healthy economy. They
are not mutually exclusive, they are
intertwined.”
Dick Downey, Unatego Central
School District Board Member / Unatego Area Landowners Association
President, stated, families in the
area now pay $3000/year to heat
and cook with propane. Natural gas
would cut that cost by 30% saving
families $900/year. The Unatego
School District last year spent
$280,000 on propane to heat the
schools; with natural gas the cost
would be only $8,000.
Michael German, President &
CEO Leatherstocking Gas Company,LLC, explained, Without the
Constitution Pipeline, there is no
gas supply, and no local gas distribution. Leatherstocking will continue to
spend 10’s of millions of dollars in PA.
PA will continue to get the economic
benefit, the jobs, and the economic
restrictions on conventional energy production. While
Obama’s proposed $10-per-barrel tax on oil is not going to
happen during his presidency, if Sanders were to become
president, it is possible circumstances could arise that would
allow him to implement that tax, which of course would be
extremely damaging to oil companies. Sanders is also in
favor of a tax on carbon emissions which would have wide
ranging impacts for numerous businesses across a variety of industries. By and large then, a Sanders presidency
would likely be harmful for most major U.S. manufactures
and energy companies.
Michael Bloomberg
If Michael Bloomberg does end up entering the race and
running for President it could certainly throw both political
parties into turmoil. Should Bloomberg become President,
it’s likely that he would represent a middle ground between
anti-renewables policies of the Republicans and anti-conventional energy policies of the Democrats. Bloomberg has
certainly shown support for climate initiatives and environmental concerns. The coal industry, however, would not be
spared. Bloomberg has spent a lot of money trying to kill off
coal plants in the United States.
However, Bloomberg has also shown a steak of non-ideological pragmatism that includes being willing to approve
the Keystone XL pipeline under certain conditions. Given
that pragmatism and his reputation as a centrist, Bloomberg
would likely have a positive impact on both conventional
energy companies and renewables firms alike.
716-372-0395
716-372-0446 (F)
also admitted in:
pennsylvania and colorado
John H. Heyer
attorney at law
P.O. Box 588
Olean, new york 14760
exchange national
bank bldg.
ContinContinued on page 14
Spring 2016
The Pipeline
9
Spring 2016
Industry Cycle: Lower for Longer
How much longer can you take?
Twin Tiers
Society of Petroleum Engineers
Would
help
us us
establish
a New
Twin Tiers SPE
WouldYOU
YOU
help
establish
a new
Student
Twin
Tiers Chapter???
SPE Student CHAPTER???
Did you know
students
a college
or university
offeringor
a four-year
degree
Did that
YOU
know at
that
students
at a college
university
offering
four-year
degree*
the oil
and gas
related
to theaoil
and gas industry
mayrelated
petition to
to form
an official
industry
may
petition
an official
SPE student
chapter?
We to
askform
your help!!
SPE student chapter?
The process is NOT complicated
and the
rewards are fantastic!
We ask your
help!!
❶ There must be 15
(Yes only 15) students at the college or university
Thewant
process
is NOT
complicated
who
to be SPE
members.
And
are fantastic
❷ A faculty member must be found to act
asthe
the rewards
new Student
Chapter's
FIRST: ADVISOR
There must be 15… [yes only 15] … students at the
❸ There
mustor
beuniversity
15 (Yes only
15) WANT
students
the
college
or university
college
who
toatbe
SPE
members.
who want to be SPE members.
SECOND:
faculty of
member
muststudents
be found
toelect
act as
the
❹ Students
call aAmeeting
INTERESTED
and
officers
new
Student
Chapter’s
ADVISOR.
➎ The DEPARTMENT Head “OK” is a BIG must!
❻ the
usual paperwork
then [ie.
a new
SPETiers]
student
Chapter is to
onthe
THIRD:
The SPE and
Section
Twin
CLOSEST
their
way or university must request a letter of support.
college
If YOU
would Students
like to help
establish
a new
SPE Student CHAPTER
FOURTH:
call
a meeting
of INTERESTED
students
Please
contact
me:
and elect officers.
Nat Hendricks Chairperson, Twin Tiers SPE gnathendricks@verizon.net
FIFTH: The DEPARTMENT head “OK” is a BIG must…!
ADVERTISE IN
THE PIPELINE
AND REACH LIKE
MINDED BUSINESSES
VISIT
WWW.IOGANY.ORG
FOR DETAILS.

P.S. we have a new Twin Teirs SPE Student Chapter at Lackawanna College
SIXTH: ………the
paperwork…….
and on inusual
the works
at Cornell University!
andthen a new SPE student CHAPTER is on their way.
[*] Two year schools need approval from HQ…
PURCHASING
Michē Needham
C. Needham, CPA Michéē
is a Tax Principal
mneedham@lumsdencpa.com atEmail: Lumsden
& McCormick, LLP and
By Miché C. Needham, CPA
isMichē Needham is a Tax Principal at Lumsden & McCormick, LLP and is responsible responsible for
development
and and implementation for development tax esupply
ngagement strategies. She works with may appear likely. These
• Evaluateof your
chain
bankruptcy
implementation
of
business and individual tax clients in order to assure conformity with federal management, not by demandsolutionsand bear many implications and
tax
engagement
state tax standards and to minimize t
axes a
nd r
elated c
osts. ing price concessions, but
companies should plan for the best
strategies. She
working differently with your
but expect the worst. Understanding
works
with
business
and individual
suppliers
and
reaching
fair
pricyour options and preparation are key
tax
clients in order to assure coning
models.
elements to any successful restructurformity with federal and state tax
Climate Change is Focus as Independent Producers Struggle ing or reorganization. But in the end,
standards and to minimize taxes and
• The same can be said for your
you must still have a business and
related costs.
base
maintaining
This year's proposed Federal Government budget customer
is aimed to take and
action on climate change cash
by repealing flow plan which are feasible to
ordinary business deductions for the Oil and Gas Industry. Many independent producers continue
and oil field your
customer
relationships,
and survive. You are strongservices companies are feeling the pressure on returns, cutting capital expenditures and ly
limiting cash to seek the advice of
work differently
to reach
a fair
encouraged
he energy
sector
has always
flow gbeen
rowth. Some independents will not survive pricing
and be model
forced tduring
o sell othe
ff or current
consolidate as athey cannot trusted
professional to guide you
impacted
by ever-presgenerate t
he c
ash f
low n
eeded t
o m
aintain c
apital p
rograms a
nd i
nvestments. economic
landscape.
through your options, implications and
ent industry cycles but at the close
outcomes.
of 2015 the bust has not seen its
The focus on climate change would boost funding for alternative energy sources such as wind and solar While much of this may seem
As the bust continues to make
end. Massive cost cutting has
and permanently extend breathing
tax credits specific to this sector. funding these renewable energy easier
said
than The done,
usingfor these
its impact,
the industry will hardly
offered
some short-term
sources would come from increasing tax revenues from the Oil and Gas Industry and trimmed spending strategies
to
emerge
from
this
disappear. Every company will be
space. Could this panicky response
on the Department of Energy's fossil energy downturn
research. Twill
herefore, the result would the Oil in a different way. You will
help prepare
you
to be to disallow challenged
leave
your business unequipped for
and Gas Industry from using targeted deductions, which are not unique to this industry, to fund the tax cope
more
effectively
with
the
shorthave to rise to the occasion, reposithe next turn of the business cycle?
credits that are specific to the renewable energy sector. ening
boom and bust cycle.
tion yourself accordingly and seek
As the entirety of the energy sector
For those much farther in distress,
strategic long-term opportunities for
continues to struggle with depressed
Higher taxes are not the answer needed to bracing
help independent producers stay afloat for financial
restructuring
or in this the sector future.as commodity prices and reduced
prices plummet. The tax proposal would discourage future investment in an industry that is providing liquidity, it is time to reassess the
abundant, affordable domestic energy, supporting growth and job creation while moving our nation purpose and strategic direction of
toward energy independence. your company.
We need policies that will encourage investments and allow America to maintain its competitive edge in • Your business strategy should
the market place. If not, the future status of our independent producers as we know it may cease to be focused on what you do best
Retirement congratulations go out
exist. The Big Oil Companies will be quick to merge or acquire our struggling producers and field service and where you already have
to the following
gentlemen who
companies to gain an edge into regions they largely missed out on. Will you be able to survive the massive strength, instead of
have been long-time members of
shakeout? broadening your business to
IOGANY. We wish you the very
pursue every opportunity you
™ Call-‐Up session to The Independent Petroleum Association of America will be holding a Congressional best in the next season of your life!
see.
educate officials on the impact this proposal will have on independent producers. I strongly encourage you to visit, www.iogany.org/links and select Independent Petroleum Association of America for more MIKE BIELAWSKI
• Despite tighter cash flows, avoid
BROWZ
details. Your cost
participation is critical our independent producers. arbitrary
cutting and
seekto the future of NETWORK
National Fuel Resources
longer-term solutions. The need
MEMBER
to build capability with a sustainMIKE SENDOR
•DrillingPadConstruction
able people strategy remains
Nussbaumer & Clarke
•SWPPPImplementation
essential to stay afloat and
•RoadConstruction
be prepared for the uncertain
GREG SOVAS
future.
•PublicRoadRestoration
XRM, LLC
T
In the News
If YOU would like to help establish
a new SPE Student CHAPTER please contact me:
LOCAL PRODUCTION
FOR 25 YEARS.
Nat Hendricks, Chairperson, Twin Tiers SPE
GNATHENDRICKS@VERIZON.NET
p.s. we have a newTwin Tiers SPE Student Chapter
at Lackawanna College
and one in the works at Cornell University….
Since 1991, National Fuel Resources, Inc.’s
(NFR) origins as a deregulated natural gas
supplier have been rooted in local Appalachian
production.
TM
We take pride in our business reputation and
NFR is proud to support and be a member of
the Independent Oil & Gas Association of NY.
• Seek efficiencies by capturing
the value of technology to help
facilitate more work while reducing overhead.
•WetlandRestoration
•TemporaryBridges
•CraneRentalandErection
•EnvironmentalRemediation
WWW.DACOLLINS.COM
DAN CZECHOWICZ • (716) 630-6717 • DCZECHOWICZ@NFRINC.COM
The Pipeline
8
Spring 2016
The Pipeline
13
Spring 2016
activity. Local
natural gas
distribution has
been an economic
Godsend to the
northern tier of PA
and will expand
this year, e.g.,
a new industrial
plant is under
construction and
will create 150
jobs.
The Constitution
Pipeline, along with Leatherstocking
Gas Company, LLC will bring natural
gas to areas of upstate that can only
rely on fuel oils and propane for their
If we were allowed to convert to
natural gas, greenhouse gas emissions would be cut by 30%.
All of us that support natural gas
development and the use of natural
gas in New York State, need to support the construction of the Constitution
Pipeline.
This is vital infrastructure with tremendous economic, quality of life,
and environmental benefits.
energy needs. Only 8% of homes and
businesses have the availability to
use natural gas.
Sam McLaughlin, Director of Oil
and Gas
Fisher Associates
Q - What is your new position at
Fisher Associates?
A - My position is Director of Oil &
Gas Work where I will assist them
in further developing their growing
portfolio of regional and nationa
energy projects. They provide
consulting services to many of the
top oil and gas companies in the
country.
Q - What is your experience in the
energy industry?
A - Previously I spent over 30 years
at CONSOL Energy. I started in the
mines as a laborer while going
through WVU. After receiving my
degree in Mining Engineering, I
was hired full time in the mines
and acquired my Forman’s papers.
I have been a section boss, longwall boss, longwall coordinator,
shift foreman, mine foreman,
asst. superintendent, manager of
industrial engineering, manager
of special project engineering. In
2005, I moved to the gas side of
The Pipeline
Q - Why did you choose Fisher Associates after retiring from CONSOL?
A - When I decided to retire from
CONSOL Energy in September 2015,
I wanted to go to work for a company
that valued their people. After meeting
with Fisher, I knew that this was the
place for me. Fisher not only values
their clients but also value their employees and this was something that
was very evident when I was outside
looking in. The decision was an easy
one for me. I am excited to continue
building on to Fisher’s success in the
Oil and Gas industry. Fisher values
the client and the people that carry
the Fisher brand. This, I believe, is
a recipe for success that will extend
across any industry.
Q - Your LinkedIn profile says you’ve
worked with the Greene County, PA
Habitat for Humanity. What is the
most memorable project that you have
worked on?
14
Election 2016
By Misichael Michael
an as- McDonald By Michael McDonald
sistant
professor / Posted on Mon, 08 February 2016 Oilprice.com of finance and a
Oilprice.com / Posted on Mon, 08. February 2016
frequent
consulMichael is an assistant professor of finance and a frequent cconsiderably onsultant to cdompanies iminish the power of the EPA as
tant to comparegarding capital structure decisions and investments. He holds a
P
hD i
n f
inance states and local governments. This would likel
nies regarding
and his research has been quoted in the Wall Street Journal and by Bloomberg. He capital
structure
U.S.
economy.
Trump presidency
decisions
investments.
holds
teaches and
classes in the aHe
reas of corporate finance and iAnvestments. He has examined international would definitely help investors in
a PhD in finance and his research has
differences in financial markets, asset pricing anomalies, and the role of analysts in setting securities most conventional energy compabeen quoted in the Wall Street Journal
prices as well as He
acting as classes
a business consultant for several ifferent companies in the areas of finance and
by Bloomberg.
teaches
nies, especially
if thedRepublicans
inand the areas
of corporate finance and
economics. retain control of Congress as many
investments. He has examined internaare projecting.
tional
financial markets,
As tdifferences
he 2016 pin
residential race starts to heat up it is time to take a look at the remaining serious asset pricing anomalies, and the role of
candidates and what each one might mTed
ean Cruz
for energy policies and energy companies in the U.S. While a analysts in setting securities prices as
lot ascan happen in the nconsultant
ext couple of months, the current leaders for the Republican Party are Donald well
acting
as a business
being atRepublican,
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ronounced n
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Bernie passage
Sanders of continuing subsiDonald Trump
recent
is
in
favor
of
stopping
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EPA’s
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more progressive tha
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mplement t
hat t
ax, Rubio appears to be a sbut
upporter fossil fuels like Trump and Cruz. In particular, Rubio is in on allwhich of cou
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favor of in
stopping the EPA’s and
clean Power Plan, likely companies doing
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more
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toould states
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tremendously and cShould
ould provide boost to coal miners. s President numerous would also governments.
This
wouldRubio likelyahelp
win the nomination and then the
Bernie
Sanders
many conventional energy compabe harmful for most major U.S. manufactures election, it is likely that oil and natnies.
ural gas companies would get a big
Sanders
is arguably even more
Michael Bloomberg boost. Trump has actively discussed
progressive than Hillary Clinton, so it
Hillary Clinton
his interest in confronting OPEC
If M
ichael loomberg does eallnd p entering th
is
likely
thatBhe
would adopt
ofuthe
and making the U.S. energy indesame
policies
as
Clinton
or
Obama,
Hillary Clinton as president would
both political parties into turmoil. Should Bloo
pendent. He is a firm advocate for
and
potentially
put even
greater
likely continue many of the policies
represent a middle ground between anti-‐rene
oil and its importance in the overall
advocated by President Obama.
Continued on page 9
towards energy companies as
What Our Members Say
CONSOL and was GM of Northern
Operations, VP of SWPA Operations
and the Corporate VP of Land Resources - Marcellus activity. I led the
development of CONSOL’s directional
drilling program for the Marcellus /
Utica shale region.
Bloomberg might do for energy if he enters residential and ins. Trumpthe or PRubio.
Cruz risace cited
aswop-
A - I really enjoyed the times when
many of my CONSOL co-workers
would volunteer with me. Sometimes
there would 20-25 of us working
together for an entire weekend to help
those in our community. It was wonderful when those two entities came
together for a common goal to help
those in need.
Q - Concerning your hobbies of golf
and boating – what is the most interesting golf course you’ve played and
what is your favorite lake to boat on?
A - I had a wonderful time playing
golf in the Pro-Am at The Greenbrier
with David Hearn. It was quite a
memorable event. I love to boat and
fish anywhere but my favorite spot
is Stonewall Jackson Lake in West
Virginia. It is a wonderful scenic lake
and so relaxing!
Q - Is there anything else you’d like
us to know about you?
A - I’ve been married for 33 years to
my high school sweetheart. We have
two grown children and two grandchildren who we adore. We are a very
close knit family.
Spring 2016
A
The Pipeline
7
energy policies of the Democrats. Bloomberg environmental concerns. The coal industry, ho
Spring
2016
money trying to kill off coal plants in the Unite
ElexcoIOGA Newsltr 3.5x9.5col.pdf
1
2016-03-10
1:30 PM
Upcoming Events
IOGANY EVENTS
www.iogany.org/events.php
July 13-14, 2016
IOGANY Summer Meeting
Technical Seminar, Golf & Clay
Shoot Tournaments,
Exhibits & Barbecue
Peek’n Peak Resort
Findley Lake, NY
• Mineral and Surface Leasing
A FULL SERVICE • Right-of-Way Acquisitions
LAND COMPANY • Mineral Ownership/Title Curative
SERVING
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October 19-20, 2016
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Ellicottville, NY
Michigan
New York
(800) 889-3574
(866) 999-5865
ELEXCO LTD.
London, Ontario, Canada
C
M
Ohio
(740) 788-8838
Pennsylvania (412) 788-2200
In light of the potential for personal
liability, individual owners of a struggling company operating oil and gas
wells in New York should carefully
evaluate the extent of the company’s
plugging liability when considering
filing for bankruptcy protection. If
facing this situation, it would be wise
to consult with attorneys who are
familiar with both the ECL and the
bankruptcy code.
(800) 603-5263
120 MARGUERITE DRIVE, SUITE 201 • CRANBERRY TOWNSHIP, PA 16066
www.elexco.com
MARK A. WILLIAMS
mwilliams@newprospect.com
Cell: (814) 449-8822
Consultant Business Development Manager
Engineering, Completion and Drilling Consultants
www.newprospect.com
Y
New Members
MY
Membership investment in IOGA of NY connects you to professional colleagues in New York State and beyond. A strong
and active membership is essential to IOGA of NY’s advocacy and public education efforts. Thank you for helping IOGA
of NY grow. Encourage your colleagues to join you as an IOGA of NY member. New members as of March 1, 2016
CY
CMY
K
GENEVIEVE DISPENZA, Senior
Energy Trader
National Fuel Resources, Inc.
165 Lawrence Bell Dr,, Williamsville, NY 14221
716-630-6720 / 716-630-6751 fax
gdispenza@nfrinc.com
Marketer
RICHARD GARDNER, Sr. VP of
Business Development
845-620-1300 / 845-620-1320 fax
Allied Industry
RON HAPPACH, Chief Operating Officer
845-620-1300 / 845-620-1320 fax
Allied Industry
SAM MCLAUGHLIN, Director of Oil & Gas
Fisher Associates
400 Southpointe Blvd, Ste 105, Canonsburg, PA 15317
724-749-1208
smclaughlin@fisherassoc.com
Professional
July 21-22, 2016
PIOGA Pig Roast, Equipment Show
& Conference
Seven Springs Mountain Resort,
Champion, PA
July 19-21, 2016
KOGA 80th Annual Meeting
Northern Kentucky Convention Center
Covington, KY
This one before PIOGA Pig Roast
August 7-9, 2016
IOGAWV Summer Meeting
The Greenbrier
White Sulphur Springs, WV
September 9-10, 2016
IOGAWV Sport’s Weekend
Lakeview Golf Resort
Morgantown, WV
The Pipeline
to make principal equity owners
or officers of a bankrupt company
personally liable for well plugging
liability. However, even if such an
argument was ultimately successful,
it would probably require protracted
and expensive litigation through the
DEC’s administrative law process,
followed by additional appeals
through the court system. As a further obstacle, the expenses of such
litigation would have to be paid for
by the individual attempting to avoid
liability.
Office: (724) 742-1122
Fax: (724) 742-4703
CM
April 7, 2016
PIOGA Spring Meeting
Rivers Casino
Pittsburgh, PA
certain federal and state health and
safety laws (See United States v.
Dotterweich, 320 U.S. 277 (1943)),
but neither the ECL, NYCRR or
any reported New York court case
explicitly applies this doctrine to well
plugging liability. The ECL specifically designates certain fees collected by the DEC to cover the costs of
plugging abandoned wells where no
solvent owner is available to do so.
A reasonable counterargument
can be made that the responsible officer doctrine should not be applied
ELEXCO LAND SERVICES, INC.
INDUSTRY EVENTS
March 16-18, 2016
OOGA Winter Meeting
Hilton Columbus at Easton
Columbus, OH
6
Spring 2016
The Pipeline
PAUL MCNALLY, P.M.P., Senior
Project Manager
Moody and Associates, Inc.
685 Broad Street Extension, Ste 1,
Waverly, NY 14892
607-565-8800 / 607-565-8805 fax
pmcnally@moody-s.com
Professional
JIM NICHOLS, Director of Operations
Blue Rock Energy Inc.
432 N Franklin St, Syracuse, NY 13204
315-432-4111
jnichols@bluerockenregy.com
Marketer
NICHOLAS PASQUARELLA, Gas
Accountant III
National Fuel Gas Distribution Corp.
6363 Main St, Buffalo, NY 14221
716-857-7010
pasquarellan@natfuel.com
Allied Industry
15
BILL STONER, President
Universal Well Services, Inc.
201 Arch St, 2nd Fl, Meadville, PA 16335
814-337-1983 / 814-333-8877 fax
bill.stoner@univwell.com
Allied Industry
WILLIAM TREMBATH, Natural Resources
Group Manager
AECOM
257 W. Genesee St., Suite 400, Buffalo, NY 14202
716-856-5636 / 716-856-2545 fax
william.trembath@aecom.com
Professional
MATT XANDER, Sales Manager
Axco Energy Inc.
36 E. South St., Corry, PA 16407
814-665-8268 / 814-663-0277 fax
axco@erie.net
Allied Industry
Spring 2016
&
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SUPPORT SERVICES
ENGINEERING
|
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At Erdman Anthony, we combine critical, multidisciplinary support
services with more than six decades of high-level, award-winning industry
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confidence from day one.
Benefit from our expertise in a range of key areas:
• Broad-based services, from surveys to site development and road repair
• Valuable expertise as an experienced Marcellus Shale service provider
• Efficient permit processing and approvals
• Seamless transitions from project to project
• A strong regional presence and familiarity with the area, people, and
policies to keep things running smoothly
Support at every phase of your project
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Or learn more at
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The Pipeline
16
Spring 2016
Seth D. Pullen is a
Senior Associate
with Hodgson
Russ LLP. Seth
concentrates his
practice in the
area of oil and gas
law. He assists
exploration and
production companies in all aspects
of the oil and gas industry. His experience includes acquisitions of leases
and wells, commercial real estate
transactions, related litigation, and
advising closely held businesses.
R
ecent market conditions
and low energy prices have
created significant financial pressure
on many companies in the oil and
gas industry, both in New York and
nationally. As a result, some oil and
gas production companies have
filed for bankruptcy and others may
be forced to consider that option in
coming months. One factor that a
company considering bankruptcy
needs to be aware of is that well
plugging liability under the New York
State Environmental Conservation
Law (“ECL”) may survive a filing for
federal bankruptcy protection, and
can become the personal liability of
the principal owners or officers of a
bankrupt company.
Article 23 of the ECL and Title 6
of the NY Codes, Rules and Regulations states that it is “unlawful for
any owner or operator to abandon
any well, wells or lease without
having plugged and abandoned such
well…” (6 NYCRR §555.1). The cost
of properly plugging and abandoning an oil or gas well can be quite
significant, and may far exceed the
financial security bond or deposit
that well operators are required to
maintain with the New York State
Department of Environmental Conservation (“DEC”). If a struggling oil
and gas production company files
for bankruptcy, the cost of plugging
its uneconomic wells may exceed
the amount of both the financial
security and the available assets of
its bankruptcy estate. The federal
bankruptcy code will shield owners
The Pipeline
Beware of Well Plugging Liability
when Contemplating Banruptcy
By Seth Pullen, Hodgson Russ LLP
from most debts of a company that
files for protection, but does not address liabilities for compliance with
laws and regulations. Such liabilities
can potentially survive bankruptcy,
and may attach to individuals who
are responsible for the company’s
compliance.
The DEC has not issued regulations or clear policies addressing
whether it will pursue individual
owners or officers of a bankrupt
company for unfunded plugging
liability. However, the unofficial position that the DEC takes is that failure
... “responsible officers” can be
held liable.
to properly plug and abandon an oil
or gas well is a violation of the ECL,
for which both a business and its
“responsible officers” can be held liable. If a violation of the ECL requires
cleanup or remediation, the DEC
will first pursue the business, but
will also seek an enforcement action
against any potentially responsible
persons or parties with significant
assets. Several decisions of the
DEC commissioner illustrate this
approach (In the Matter of Carney’s
Restaurant, Inc., DEC Case No. R520070221-671; and In the Matter of
Supreme Energy Corporation, DEC
Case No. 7-1780), where individual
business owners were found liable
for penalties and remediation costs
for violations of the ECL by the business.
These cases did not involve oil and
gas production, but demonstrate a
willingness by the DEC to pursue
owners for environmental liabilities of their businesses. The DEC
has also commenced enforcement
actions against the individual owner
of a dissolved company that was
the last registered operator of an
unplugged well, asserting various
violations of the ECL relating to
reporting, financial security and well
operations.
The DEC’s argument is that the
“responsible officer doctrine,” also
sometimes known as the “responsible corporate officer doctrine,” applies to make individual officers with
significant control over the actions
of a corporate entity jointly liable for
strict liability offenses by the company. This doctrine is an established
feature of federal common law and
Continued on page 15
Geotechnical
Environmental
Ecology
Water
Construction Management
• Certied AST Inspection
• Spill Planning
• Upstream & Midstream
Environmental Permitting
• Construction Management
• Water Resourcing
• Air Permitting & Monitoring
• Geotechnical Engineering
www.gza.com | 27 Oﬃces Nationwide
David Palmerton
Principal
Wexford, PA o: 724-935-0018 | c: 315-243-2702
A Division of GZA GeoEnvironmental, Inc.
Warren Schoenfelt
Bridgeport, WV 724-766-5150
5
• Conventional & Unconventional
Drilling & Completion Programs
• Operations & Production Services
• Workovers & Recompletions
• Well Plugging Management
• Storage Field Operations
• Re-Entry/Sidetracks
www.gza.com
Spring 2016
■
Thank You!
Gary Marchiori
is President of
EnergyMark, LLC
in Williamsville,
NY. Gary worked
for the National
Fuel System, and
Texaco Natural
Gas for 17 years
before forming his own energy
supply company in 2002. EnergyMark now serves more than 8,000
customers in Western New York and
Northwestern Pennsylvania.
■
To the following companys
for sponsoring IOGANY’s
Board of Directors Meetings
January 20, 2016
E
lectric generation using
natural gas has grown over
the last several years as clean air,
water, and fuel economics have
driven out coal fired electric generation. A bright spot for our current
natural gas oversupply situation is
power generation use.
Daily power burn in the Unites
States is currently averaging 25
Bcf per day, which is 3.5 Bcf,
or 17% higher than last winter,
season-to-date. This increase is
Empire Energy E&P, LLC / Tim Hull
March 16, 2016
■
GZA / Jim Richert
■
Responsible
Reclamation
Understanding Energy Markets
Can Producers Break-even
By Gary Marchiori, President, Energy Mark LLC
Coal plant retirements, and more
favorable economics of coal-to-gas
switching, are the two major reasons
power burn is up despite warmer temperatures.
According to a report from Bentek
Energy, “Assuming the retired coal
plants were previously running at a
60% capacity
factor, and that
the new replacement gas
operates at a
7.5 MMBtu/MWh
heat rate, about
1.63 Bcf/d of the
increased gas
demand is from
gas-fired power
plants filling in for
the lost baseload
coal capacity.”
This means that
just under half of
the increase can be
attributed to the 15
MW of coal capacity
retirements in 2016,
and the other half,
An opportunity to restore diversity
• Conservation seed mixes
particularly impressive considering
national temperatures have averaged 47 degrees Fahrenheit, or 5
degrees higher than last year.
Temperatures in the Northeast
have been 8 degrees warmer
than last year, yet power burn in
this region is still 15% higher than
last year at this time. The largest
percentage increase so far is in
the Pacific Northwest, which is
currently burning 71% more natural gas to generate power than
last year.
• Native seeds
• Bioengineering
materials
ernstseed.com
sales@ernstseed.com
800-873-3321
or about 2.1 Bcf/d
can be attributed to
coal-to-gas switching.
Despite higher
coal-to-gas switching
levels, fuel switching
accounts for less
of the overall
demand for natural
gas than it did last
year.
The increased
demand for natural
gas in the power sector has certainly has a tremendous economic
effect on the cost of electricity for
the end user. With coal and nuclear
facilities continuing to be shut down
across the country, natural gas’ role
in power generation will continue
to grow. With ample supply, and an
increasingly solidified infrastructure,
electricity will continue to be supplied
reliably, and at low cost, for years to
come.
Truly
Green
Energy
Local Production Supplied Reliably to Local Customers
Every day, we buy locally produced natural gas for thousands of
customers. Contact us today to learn how to bring your production
to market and maximize value.
Gary Marchiori
716.614.1800
Tim Wright
President
www.energymarkllc.com
Vice President
6653 Main St. • Williamsville, NY 14221
The Pipeline
4
Spring 2016
The Pipeline
17
Spring 2016
Recent Penn Grade Crude Oil Postings in WNY
12/2..........................................................................35.94
12/9..........................................................................33.16
12/16........................................................................31.52
12/23........................................................................33.50
12/30........................................................................32.60
1/6............................................................................29.97
1/13..........................................................................26.48
1/20..........................................................................22.55
1/27..........................................................................28.30
2/3............................................................................28.28
2/10..........................................................................23.45
2/17..........................................................................26.66
2/24......................................................................... 28.15
3/2 .......................................................................... 30.66
Source: Ergon Oil Purchasing www.ergon.com/prices.php
naïve the general public is about energy and how their lives
wouldn’t be the same without it. We hope to host a showing
of this film at an upcoming meeting, and plan to have copies
of it available for purchase to support Mark’s efforts.
So, let’s all continue doing what we can individually in the
course of our everyday lives when we engage people who
don’t understand our industry. Let’s point out the hypocrisy
that each of them engage in when they bash fossil fuels in
favor of renewables. At least we stand proudly in support of
our industry and aren’t afraid to look in the mirror!!
INDEPENDENT OIL & GAS ASSOCIATION
OF NEW YORK
38 Lake Street • Hamburg, NY 14075
716-202-4688 • 716-202-4689 fax
www.iogany.org
EXECUTIVE COMMITTEE
Executive Director
Brad Gill, IOGANY/ Earth Energy Consultants
President
Ernie Rammelt, Chautauqua Energy Inc.
But, don’t get me started!
NYMEX Natural Gas Futures
12 Month Forward Strip Average Prices Through 02/17/16
Phone: 304.464.1176
Secretary
John Holko, Lenape Resources, Inc.
Brad Gill is the
Executive
Director of IOGA
of NY, a petroleum geologist
by trade and the
President of
Earth Energy
Consultants.
$5.00 $4.50 Treasurer
Mike Pedro, United States Gypsum Co.
DIRECTORS
Chuck DuBose, DLH Energy Service, LLC
James “Eddy” Grey, Triana Energy, LLC
Randy Hansen, Elexco Land Services, Inc.
John Heyer, Attorney at Law
Mike Hogan, Hogan Energy Consultants
Dennis Holbrook, Attorney
Tim Hull, Empire Energy E&P, LLC
Charlie Joyce, Otis Eastern Service Inc.
Gary Marchiori, EnergyMark, LLC
James Macfarlane, Minard Run Oil Co.
Jim Perkins, P&C Gas Measurement Services, Inc.
Steve Plants, Plants and Goodwin, Inc.
John Polka, National Fuel Gas Distribution Corp.
Jim Richert, GZA GeoEnvironmental, Inc.
Scott Sampson, Chautauqua Utilities, Inc.
Rod West, Gas Field Specialist, Inc.
Dave White, Independent Consultant
Roger Willis, Universal Well Services, Inc.
$4.00 $3.50 $3.00 THANK YOU!
$2.50 $2.00 2/18/2011 2/18/2012 2/18/2013 2/18/2014 2/18/2015 IOGANY WOULD LIKE TO THANK ALL OUR
2016 RENEWING MEMBERS.
Bloomberg Finance L.P.; CME/NYMEX; For Informa<onal Purposes Only APPALACHIAN GAS MONTHLY SPOT PRICE
We would also like to thank specific companies for their
Courtesy: EnergyMark, LLC (716) 614-1800
financial support with an additional donation along
Jan-12
$
3.37
Jan-13
$
$
3.62
Jan-14
3.94
Jan-15
$
2.59
Jan-16
The Pipeline
$
2.10
Feb-12
$
2.89
Feb-13
$
3.48
Feb-14
$
5.57
Feb-15
$
2.58
Feb-16
$
Mar-12
$
2.64
Mar-13
$
3.75
Mar-14
$
4.96
Mar-15
$
2.76
Mar-16
Apr-12
$
2.37
Apr-13
$
4.29
Apr-14
$
4.55
Apr-15
$
2.00
Apr-16
May-12
$
2.09
May-13
$
4.18
May-14
$
4.39
May-15
$
1.90
May-16
Jun-12
$
2.45
Jun-13
$
4.16
Jun-14
$
3.96
Jun-15
$
2.09
Jun-16
1.92
Jul-12
$
2.76
Jul-13
$
3.56
Jul-14
$
3.61
Jul-15
$
1.99
Jul-16
Aug-12
$
3.02
Aug-13
$
3.07
Aug-14
$
3.11
Aug-15
$
2.04
Aug-16
Sep-12
$
2.58
Sep-13
$
3.30
Sep-14
$
3.03
Sep-15
$
1.89
Sep-16
Oct-12
$
3.22
Oct-13
$
3.39
Oct-14
$
2.92
Oct-15
$
1.77
Oct-16
Nov-12
$
3.53
Nov-13
$
3.39
Nov-14
$
2.91
Nov-15
$
1.87
Nov-16
Dec-12
$
3.83
Dec-13
$
3.47
Dec-14
$
3.77
Dec-15
$
2.04
Dec-16
2.90
Average
$
3.64
Average
$
3.89
Average
$
STAFF
Brad Gill, Executive Director (brgill@iogany.org) ext. 105
Vickie Mellody, Office Administrator (info@iogany.org) ext. 100
Lorri Ball, Bookkeeper/Administrative Assistant
(lorrib@iogany.org) ext. 101
ERDMAN ANTHONY
OTIS EASTERN SERVICE LLC
PATTON FOREST PRODUCTS
UNITED STATES GYPSUM CO.
2.13
2016 PIPELINE NEWSLETTER SCHEDULE
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Summer – copy deadline: May 15 for June issue
Fall – copy deadline: August 15 for September issue
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$
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with their membership renewal!
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COMMITTEE CHAIRS
Legal Committee - John Heyer
Marketing Committee - Gary Marchiori
Marcellus Shale Committee - Eddy Grey
Operations Committee - Roger Willis
PAC Committee - Scott Sampson
Producer Committee - Ernie Rammelt
Public Relations Committee - John Holko
2.01
Spring 2016
The Pipeline
3
Spring 2016
for 1.2 million workers. But folks are
still not happy, so now that Walmart
is closing almost two-hundred
stores and laying off thousands of
workers, you would think the oppositionists would be happy to have
eliminated this greedy behemoth
from certain localities. They should
be dancing in the streets because
they got rid of the evil giant! But of
course, you know that they are now
painting Walmart as the bad guy
once again saying they are insensitive and terrible because they are
forced to lay off workers and close
stores. When someone is hypocritical,
they will always play both sides,
conveniently justifying their actions
no matter what – all while turning
away from the mirror.
I could also mention Sanders,
Hillary, Cuomo, and Obama stating
with conviction that the constitution
is clear and shouldn’t be conveniently
interpreted when it comes to the
president nominating a supreme
court justice during his last year in
office. I agree that the constitution
shouldn’t be conveniently interpreted
for this purpose… or for the second
amendment! But they conveniently
are not consistent on these two
issues. Yep – hypocrisy at its finest.
Or Hillary stating that large
campaign contributions don’t sway
policymaking, and pointing out that
Obama went after Wall Street after
the 2008 banking meltdown despite
having received large funding from
Wall Street. She also defended
her speaking fees (aka campaign
contributions) from Goldman Sachs
and others, saying that these large
political donors do not impact policy.
But, just listen to what she says
about the Koch Brothers, or about
the NRA on the Republican side –
again… terribly hypocritical.
But, I said I wanted to talk about
the “height of hypocrisy” so here it
is. IOGANY receives a magazine
called City and State. It is a largely
left-leaning political publication out
of Albany that highlights politicians
and influential people in New York,
legislation, social programs, etc.
We subscribe to it because I believe
The Pipeline
we should always be educated about
the mindset and activities of our
adversaries.
In the last issue there is a q&a
interview of the actor James Cromwell.
Cromwell played the farmer in the
movie “Babe”, starred in “American
Horror Story: Asylum” and has made
other movies. He is also an activist,
protested the Vietnam war, and most
recently got arrested for blocking
the entrance to a natural gas power
plant under construction in Orange
County, NY.
First question: “Why are you
opposing this power plant?”
Answer: “It affects not only my community and where I live in Warwick,
but it also affects the health and
well-being of the people of Orange
County and to some degree, the people of the State of New York and the
entire country and the entire world.”
(he forgot the solar system… and the
universe… and parallel universes)
He went on to talk about how the
power plant “is fraught with the possibility of disaster and endangerment
of local people.” He also said the
movement to ban fracking was “incredibly well-organized (can’t argue
that) and supported, but also because of some politics up in Albany.
But they left out the “use” of fracked
gas. It doesn’t make any sense to
me or to anybody in this community why you would ban fracking
and then turn around and use the
product of fracking to run a power
plant in New York.” He went on to
say that we don’t need fracked gas to
produce electricity “because we have
a surplus.” Ughhh! But wait, it gets
even better!
Second question: “So you’re
saying New York is being hypocritical by banning fracking but
allowing the use of fracked gas in
the state?”
Answer: “It is hypocritical, but
you have to look at the money.”
UGGGHHHHHHH!!!!!!! The height
of hypocrisy to me is when a person
points out hypocrisy without look2
ing in the mirror! He accuses New
York of being hypocritical because
they banned fracing and still use the
energy produced from fracing (I agree
- that is hypocritical), but he never
acknowledges that he and millions of
New Yorkers and people all over the
country and the world (and parallel
universes) are doing the same thing!
He drives, heats his home, mows his
lawn, uses Tupperware, enjoys the
warmth of shopping malls and uses
his eco-friendly products that have
been manufactured using natural gas
as a feedstock energy source, and
never points out his own hypocrisy!
IOGANY has spent countless
dollars and man-hours fighting our
regulatory and legislative battles over
the last seven years. We have lost
temporarily to the well-organized and
well-funded opposition groups. But
we now hope to do what we can to
expose the hypocrisy of actors like
Cromwell and others, but mostly the
hypocrisy of the every-day people
across the state who benefit daily
from the very product they disdain.
I am not sure how we’re going to do
it, but we are working on some ideas
that we’ll share with the members
when the time is right. We have no
delusions of victory or even making a
big dent in the situation here in New
York. But, if we can make even a
small impact and get people talking
about the reality of natural gas use
in New York, and how it makes no
sense to oppose something that you
use regularly and heavily rely upon
every day, then we can at least say
we tried.
I just wish more people, like that
attorney I enlightened, would at least
come to realize the positive impacts
on their lives that natural gas and
oil have made through the years. I
recently talked with Mark Mathis, a
film producer who I met years ago
and have grown to respect, both
personally, and for the quality of his
work. Mark just completed his latest
film project – a movie titled “Fractured; Language, Lies, and Energy”.
I watched the film and it brings up
some very good points about how
Continued on page 3
Spring 2016
ON THE
LIGHTER
SIDE!
Dan was a single guy living at home with his
father and working in the family business. When
he found out he was going to inherit a fortune
when his sickly father died, he decided he
needed a wife with which to share his fortune.
One evening at an investment meeting he spotted the most beautiful woman he had ever seen.
Her natural beauty took his breath away. “I may
look like just an ordinary man,” he said to her,
“but in just a few years, my father will die, and I’ll
inherit 20 million dollars.”
Impressed, the woman obtained his business
card and three days later,she became his stepmother.
Women are so much better at estate
planning than men!
Newsletter Advertiser Index
Bond, Schoeneck & King, PLLC...................................................................... 4
D.A. Collins Companies................................................................................. 13
Elexco Land Services....................................................................................... 6
EnergyMark, LLC............................................................................................ 17
Erdman Anthony............................................................................................. 16
Ernst Seeds...................................................................................................... 4
Gas Field Specialists, Inc................................................................................. 8
GZA GeoEnvironmental Inc.............................................................................. 5
John H. Heyer, Attorney at Law....................................................................... 9
Kessel Construction, Inc.................................................................................. 9
Moody & Associates, Inc.................................................................................. 9
National Fuel Resources.................................................................................. 8
New Prospect Company................................................................................ 15
Oakridge Engineering....................................................................................... 8
Tectonic Engineering & Surveying.................................................................. 15
Twin Tiers SPE.................................................................................................. 8
Fighting the battle for the economic future of Rural America, energy independence and the environment is what we do at NaturalGasNOW. Can you help? You’ll notice a new banner advertisement at the top of each post. It’s a very simple request to consider supporting this blog with a very modest contribution to help cover the costs. Yes, it takes time and money to do what we do and, while the time is not so much of an issue given my own passion for the cause, the out-‐of-‐pocket expenses for maintaining the blog, travel (essential to collecting stories and spreading the word), research costs and the like are more than you might imagine. So, I’m reaching out to those of you who often tell us how important what we do is to you and your family or industry and asking you to consider signing up to support NaturalGasNOW. It will take but 99¢ per month (that’s less than 25¢ per week and only $11.88 per year). Just click on the banner and use your PayPal account or credit card to help out. To support NaturalGasNOW visit: http://naturalgasnow.org/ The Pipeline
19
Spring 2016
THE
PIPELINE
VOLUME 36, NO. 1
SPRING 2016
Hypocrisy 101
38 Lake Street
Hamburg, NY 14075
D
THE PIPELINE is published quarterly by the Independent
Oil & Gas Association of New York as a benefit of membership.
INSIDE
JOIN US!
Summer Meeting 2016
PEAK N’ PEEK RESORT & SPA
JULY 13 & 14, 2016
By Brad Gill
From the Executive Director cover
Beware of Well Plugging Liability 5
Upcoming Events 6
Election 2016 7
2016 IOGANY Meeting Info 10
2016 Membership Directory Info 11
IOGANY’s New Buyers’ Guide 11
Pipeline Rally Coverage 12
Industry Cycle: Lower for Longer 13
What Our Members Say 14
New Members 15
Understanding Energy Markets 17
Industry Prices 18
Natural Gas Now Support 19
e
THINK
Spring!
on’t even get me started…
I want to talk about hypocrisy for a minute. I don’t mean the
everyday, run-of-the-mill stuff that
we see all the time. I am talking
about the “height” of hypocrisy here.
We’ve all had to deal with those
folks who hate us… you know the
ones who say how bad fraced gas
is for the environment just before
they leave to drive home to their
warm house, gas stove and motorized lawn equipment. Actually, I do
want to share a
story about that
convictions
scenario…
as his wallet...
I was at a
professional
after-work function in Buffalo and
met an attorney who asked what I
did for a living. After telling him, he
said I probably shouldn’t talk with
his wife because she is a nurse and
they have both driven to Dimock,
PA to witness first-hand the destruction and injury to people caused by
our industry. He said they are both
staunchly opposed to fracing and
the use of fraced natural gas.
Upon hearing this, I asked him
why he supports our
industry every single day.
He looked bewildered,
and said he “has to” as
an attorney representing
certain clients. I quickly clarified my question
and said that I mean him
personally – why did HE
support us every day?
Now he was confused by
my question and had a
puzzled look on his face.
I explained that every
day he drives his car and
heats his home, mows
...
his lawn, snow-blows his driveway,
uses Tupperware, pops pills, and a
host of other activities, he is supporting the oil and gas industry. To
be specific, I asked how he heats
his home and he confirmed with
natural gas. I asked why he doesn’t
convert to solar, wind, or wood?
He responded by saying that he
couldn’t do that. Why? Because the
costs were exorbitant. Really?!!! I immediately said that he is an attorney
and doing very well for himself, and
if anyone could
run only as deep afford to partially
switch to renewables, he could! I
also pointed out
that his wish for everyone to be
off the grid would severely impact
most of society who couldn’t afford
to switch as easily as he could. I
ended our conversation by pointing
out that his convictions run only as
deep as his wallet and that is hypocritical. Needless to say, he never
circled back around to where I was
standing all evening and he never
brought his wife over to meet me.
Hypocrisy never fails to amaze
me. Take Walmart’s story. The elite
liberal left loved to hate Walmart
for its corporate greed, capitalistic
views, and indifference toward
its workers, screaming that they
weren’t paying enough and weren’t
taking care of the employees. Twice,
Walmart raised its wages and benefits in response to public pressure,
and despite their concessions,
Walmart was still the bad guy. In
April 2015 they raised wages for a
half million workers, then again for
this year they will raise their wages
Continued on page 2

eting 2016 - Independent Oil and Gas Association of New York

Transcription

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