September 2016 • Issue 77The monthly newsletter of the Pennsylvania Independent Oil & Gas Association

(Continues on page 3)

(Continues on page 19)

Current public outreach director to leadorganization with retirement of Lou D’Amico

The Board of Directors of the Pennsylvania IndependentOil & Gas Association announces the selection of DanielJ. Weaver to the position of president & executive direc-

tor, effective September 1. Weaver replaces Louis D. D’Amico,who is retiring after 22 years in that position and following asuccessful 44-year career in the oil and gas field.

Weaver, 37, has served as PIOGA’s public outreach directorsince 2012 and previously held several leadership positions asso-ciated with the Drake Well Museum in Titusville.

“Dan Weaver has a genuine passion for Pennsylvania’s oil andnatural gas industry and the people who work to safely producethe energy we use every day,” said board Chairman Gary Slagel.“The board of directors is confident he will work hard to repre-sent the interests of all of the members of the association and

PIOGA board appoints Dan Weaver to president and executive director

Dan Weaver (left) with Lou D’Amico.

Commonwealth Court denies PIOGA Act 13 challenge

The Commonwealth Court on September 1 ruled in a 5-2decision that the Department of Environmental Protectioncould continue to use provisions of Act 13 that were

declared invalid and unenforceable by the Pennsylvania SupremeCourt in the December 2013 Robinson Township v.Commonwealth decision.

In Robinson Township, the Supreme Court majority deter-mined Section 3215(b)(4)—which granted waivers from statuto-ry setbacks from wetlands and U.S. Geological Survey “solidblue lined” streams, springs or bodies of water—to be unconsti-tutional because it, along with Sections 3215(d), 3303 and 3304,forced municipalities to enact zoning ordinances that violate thesubstantive due process rights of their citizens. The majoritythen determined that that the entirety of Section 3215(b), as well

as subsections (c) and (e), are “incapable of execution” in accor-dance with the legislative intent underlying the Section 3215decisional process and thus cannot be severed from unconstitu-tional Section 3215(b)(4)and are therefore invalid and unenforce-able, and enjoined their application and enforcement.Accordingly, the Supreme Court majority in Robinson Townshipinvalidated and enjoined nearly all provisions of Act 13’s Section3215, which includes Sections 3215(c) and (e) authorizing DEPto consider impacts of oil and natural gas wells on certain publicresources and impose conditions to mitigate harmful impacts.

PIOGA asked the Commonwealth Court to rule that DEPdoes not have any authority to require operators, as part of thewell permit process, to satisfy the requirements of DEP’sPennsylvania Natural Diversity Index (PNDI) Policy (being codi-

fied in the Chapter 78 and Chapter 78aregulations) concerning impacts to thepublic resources identified in Section3215(c), in part because DEP also hasno authority to impose conditions tomitigate impacts DEP deemed “harm-ful” because of the invalidity of Section3215(e).Without standards establishedin accordance with Section 3215(e),DEP would have unbridled discretion in

PIOGA’s new mission and vision . . . . . . . . . . 3Case airs Robinson Township issues . . . . . . . 4Board of directors election starts soon . . . . . . 7Scenes from Seven Springs . . . . . . . . . . . . . 10Happening this month: Divot Diggers . . . . . 10PIOGA discount to Platts conference . . . . . . 11Please take our safety survey. . . . . . . . . . . . 11Are they employees or not? . . . . . . . . . . . . . 12ANF legislation passes U.S. House . . . . . . . 13Good news from the emissions report . . . . . 14DEP Chapter 78a training. . . . . . . . . . . . . . . 14

Marginal wells remain important . . . . . . . . . . 15Support at the Mariner pipeline hearing . . . . 16New PIOGA members . . . . . . . . . . . . . . . . . 16Member news . . . . . . . . . . . . . . . . . . . . . . . . 17PIOGA Profile: Guttman Energy . . . . . . . . . . 17Oil & Gas Trends. . . . . . . . . . . . . . . . . . . . . . 20August Spud Report . . . . . . . . . . . . . . . . . . . 22Calendar of Events . . . . . . . . . . . . . . . . . . . . 23PIOGA contacts . . . . . . . . . . . . . . . . . . . . . . 23

Page 2 The PIOGA Press

February 2014 Page 3September 2016 Page 3

Dan Weaver: Continued from page 1

allow oil and natural gas production to continue to grow in theyears ahead.”

Slagel expressed the board’s appreciation to D’Amico for hisyears of service. “There has been no greater champion and fight-er for the energy industry in Pennsylvania than Lou D’Amico,”Slagel said. “He has been at the forefront of every issue faced byour members during his tenure with this organization and itspredecessor, and his many contributions will be greatly missed.We wish him the best of luck with his retirement.”

D’Amico will consult on a part-time basis with Weaver andthe PIOGA staff for four months to ensure a smooth transitionprocess.

“I have spent the last several years working with Dan Weaveron the range of challenges facing oil and gas producers, mid-stream companies, and end-users. He is well prepared to take onthis responsibility and serve the interests of the men and womenin the Commonwealth’s oil and gas industry,” D’Amico said.

Weaver has led PIOGA’s efforts to educate both school stu-dents and the public about energy issues in the past five years,including the development of a K-12 study course on oil and nat-

PIOGA’S new mission and vision – more direct and to the pointBy Gary SlagelChairman of the Board

Earlier this year the PIOGA Board of Directors met in aspecial session to plan the association’s future. This effortutilized a professional facilitator and resulted in a number

of ideas and clarifications on PIOGA’s role in servingPennsylvania’s oil and natural gas industry. The board, with theassistance of the facilitator, reviewed and discussed what PIOGAdoes best and what it can do better. We also focused on whatsteps need to be taken to address the immediate and future needsof our members.

The board discussed the value PIOGA brings to its membersand how this value, once quantified as a new “vision” statement,can set a future course for the association. The discussion madeit clear that PIOGA has unique qualities that set it apart fromother industry organizations, and a “vision” statement shouldhighlight those attributes as the values our association brings toits members.

The first step, however, turned to revising the existing missionstatement. This mission statement would be the stepping stone todeveloping a vision statement with the above goals in mind. Thenew mission statement approved by the board reads:

PIOGA advocates for the responsible growth ofPennsylvania’s oil and natural gas industry by promoting anenvironment favorable to the success of the exploration and pro-duction, the transportation and the downstream end uses of theseenergy resources.

As a mission statement, this is PIOGA in a broad, generalsense. The new vision statement, on the other hand, identifies theassociation’s qualities that bring value to its members. It reads:

PIOGA is the trusted voice for the industry in Pennsylvaniaand provides timely and affordable advocacy for its members.PIOGA’s member-based actions on legislative and regulatory

issues are swift and decisive. PIOGA’s committees are open andinteractive and provide concise information on a regular basisfor its members. PIOGA operates education and outreach pro-grams to promote and expand the products it represents.

Key words in the vision statement are “timely,” “affordable,”“swift,” “decisive,” “open” and “interactive.” These words reallyidentify PIOGA and show that our organization prides itself inbeing responsive to the needs of members and the industry. Theassociation doesn’t hesitate to take on a legal or regulatory chal-lenge, yet it is an established and respected voice in Harrisburg.Its committee meetings are concise and open to all members andserve as the pipeline for bringing issues to the board.Additionally, PIOGA’s board seats and meetings are open to allmembers and PIOGA’s annual membership meeting is an oppor-tunity for any member to be heard.

More than anything else, PIOGA is member driven. PIOGA isan Association of its Members. ■

ural gas that meets Pennsylvania’s standards in history, civicsand government, economics, and science and technology. He hasrepresented PIOGA to members of Congress and the state legis-lature, as well as to media sources around the state.

Weaver’s experience with the Drake Well Museum included11 years as museum educator and a term as the manager of theFriends of the Drake Well Museum. He managed a staff of eight,as well as numerous volunteers who provided tours of the DrakeWell and Museum to thousands of visitors each year. He alsoplanned and promoted more than 28 special events and devel-oped relationships with corporate donors to increase contribu-tions to the museum.

From 2008-2010 Weaver undertook a project at the museumto develop the concept and raise funding for the Mobile EnergyEducation Training Unit (MEET-U), a portable classroom thathas traveled over 200,000 miles to provide information aboutenergy to students and the public in Pennsylvania, Ohio, WestVirginia and New York. MEET-U has visited 157 schools sinceits completion in 2010.

Weaver graduated from the Pennsylvania State University in2001 with a B.A. in history. He lives in Polk. ■

Page 4 The PIOGA Press

Another significant SupremeCourt appeal involving theRobinson Township decision

Perhaps the most significant appeal to date involving thePennsylvania Supreme Court’s December 2013 RobinsonTownship v. Commonwealth decision is pending before the

high court. Unlike the other appeals, the challenge to theCommonwealth Court’s decision in Brian Gorsline, DawnGorsline, Paul Batkowski and Michele Batkowski v. Board ofSupervisors of Fairfield Township, Inflection Energy, LLC andDonald Shaheen and Eleanor Shaheen, his wife, 123 A.3d 1142(Pa.Cmwlth. 2015) involves primarily the majority holding inRobinson Township rather than the plurality opinion. As this arti-cle shows, this appeal has gathered a lot of attention.

The Robinson Township majority (Justices Baer, Castille,Todd and McCaffery) held that certain provisions in Act 13 of2012 forced municipalities to enact zoning ordinances that vio-late the substantive due process rights of their citizens by remov-ing the power, authority, discretion and duty of municipalitiesand their zoning hearing boards to make “inherently local” landuse decisions based upon individualized local concerns. On theother hand, the Robinson Township plurality (Justices Castille,Todd and McCaffery) were of the opinion that these same provi-sions violated Article I, Section 27 of the PennsylvaniaConstitution, commonly known as the Environmental RightsAmendment, or ERA.

In the Gorsline/ Batkowski appeal, docketed at 67 MAP2016, the appellants (the Gorslines and the Batkowskis, repre-sented by PennFuture attorneys) and their amici curiae (“friendsof the court” Peters Township, South Fayette Township, DavidM. Ball and Brian Coppola (“Robinson Twp. Parties”) andDelaware Riverkeeper Network, Clean Air Council andEnvironmental Integrity Project (“Environmental Amici”) arguethat the Pennsylvania Supreme Court already determined inRobinson Township that oil and natural gas development and pro-duction are “industrial” uses that are incompatible with uses innon-“industrial” zoning districts, such as residential, agricultureand mixed use residential-agriculture as in Fairfield Township.Accordingly, they are asking the court for a ruling—grounded inthe Pennsylvania Constitution—that oil and natural gas develop-ment and production only can be allowed throughout theCommonwealth of Pennsylvania in “industrial” zoning districts.

The appellees (the Board of Supervisors of FairfieldTownship, PIOGA member Inflection Energy and the landown-ers, the Shaheens) and their amici curiae (PIOGA, the MarcellusShale Coalition and the American Petroleum Institute ; RobinsonTownship, Washington County, and Mount Pleasant Township,Washington County; the Greater Pittsburgh Chamber ofCommerce, et al.; County of Beaver, and County of Alleghenyand Rich Fitzgerald; Laborers’ District Council of WesternPennsylvania; International Union of Operating Engineers, LocalNo. 66, et al.; and the Pennsylvania State Association ofTownship Supervisors) respond that the requested judicialstatewide declaration contradicts the Robinson Township majori-ty’s holding that zoning is an “inherently local” matter.

February 2014 Page 5September 2016 Page 5

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In response to the Environmental Amici’s argument that natu-ral gas production does not provide benefits to the general pub-lic, PIOGA’s amicus brief includes a U.S Department of Energyposter that lists the many common products used every day thatare made from oil and natural gas. API’s amicus brief also arguesthat: (1) although one citizen may have claims against a neighborfor the neighbor’s use of land in a lawful but undesirable manner,that citizen does not have a claim of deprivation of Article I con-stitutional rights by the municipality because the zoning ordi-nance fails to restrict the neighbor’s otherwise lawful use of theproperty; and (2) suggests the court should “step back” from and

reconsider its plurality holding that the ERA is an affirmativegrant or expansion of power, or directive, to municipalities toregulate.

As shown by the above list of amici, there are parties from theRobinson Township decision on both sides of this appeal—theGorslines/ Batkowskis have Peters Township, South FayetteTownship, David M. Ball and Brian Coppola, while the FairfieldTownship Supervisors, Inflection and the Shaheens haveRobinson Township and Mount Pleasant Township. This showshow the Robinson Township decision has affected real-worldlocal politics concerning zoning.

The history of Mount Pleasant’s zoning ordinance offersanother twist. The MSC’s amicus brief points out that the ordi-nance Mount Pleasant was defending its right to adopt inRobinson Township is now being challenged by PennFuture. TheRobinson Township plurality opinion specifically referencedMount Pleasant’s ordinance, “with no apparent criticism” accord-ing to the MSC by stating: “Subsequently, the Township revisedthe zoning ordinance, as proposed by a citizens’ committee, toallow oil and gas operations as conditional uses, and require thatthe Board of Supervisors undertake site-by-site reviews of pro-posed drilling.” 83 A.3d at 939, n.27. The MSC offers a furtherexample of the “entangled alliances” resulting from the RobinsonTownship decision by pointing out that one of the attorneys forthe Gorslines/ Batkowskis in this appeal had previously advisedMount Pleasant Township on the adoption of its now-challengedordinance.

Jim Willis at Marcellus Drilling News (marcellusdrilling.com)provided his take on the appeal:

If the PA Supreme Court decides that drilling canonly happen in zones designated industrial, with noability for local municipalities to grant a variance inother zoned districts (as is their right under the antis’own precious Act 13 decision)—it would be a DIS-ASTER for drilling in the state. A decision “for”Gorsline would essentially end the Marcellus miraclein PA.

Again, the hypocrisy, especially of PetersTownship, in this case is staggering. Peters was oneof the seven selfish towns that sued over the newlyenacted Act 13 law in 2012, ultimately winning the

right in Supreme Court for local municipali-ties to limit fracking—as long as there is ATLEAST one zone where it’s allowed…. Localmunicipalities have the right to limit, OR TOALLOW, fracking in whichever zones theywant under the Act 13 decision. Yet Peters isnow pushing for JUST LIMITS, NOALLOWANCE. They want their cake and toeat it too. Do you see the hypocrisy of thesearrogant people? When will the residents ofPeters toss their commissioners?

Briefing in the Gorsline appeal will be complet-ed by the end of September and it is expected thatoral argument will follow within a few months.PIOGA will provide updates on this appeal as theybecome available. ■

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PIOGA Board of Directors ballot coming soon

Twelve members are vying for 10 seats on the PIOGABoard of Directors. A ballot is being mailed this month tothe main representative of each PIOGA full member com-

pany (excludes Associate and Royalty members) and must bereturned to the PIOGA office by mail or hand-delivered no laterthan 5 p.m. on October 28.

Under PIOGA’s bylaws, board members are elected by simplemajority. The 10 candidates receiving the most votes will be cho-sen to serve three-year terms beginningwith the PIOGA Annual Meeting onNovember 3.

Biographies for the 12 candidates fol-low. Those marked with an asterisk (*)are current board members seekingreelection.

If you have questions about voting,please contact Danielle Boston at 724-933-7306 ext. 28 or danielle@pioga.org.

Thomas Bartos – ABARTA Energy*Tom Bartos is the Chief Financial

Officer of ABARTA Energy, an oil and gasexploration and development companyheadquartered in Pittsburgh,Pennsylvania. Tom’s 33 years of workexperience began in 1983 when he joined the Pittsburgh office ofArthur Andersen & Co., where he was an audit manager prior toleaving in 1989 for a position as Vice President of Finance andTreasurer with one of his oil and gas clients. Tom later joinedABARTA Oil & Gas Co., Inc. in 1995.

Tom actively served on both the IOGA-PA and PIOGA boards,helping the association through the merger and during the upsand downs of the industry. In the past, Tom has assisted PIOGA’slobbying efforts in Harrisburg and Washington, D.C., served onvarious committees and helped formulate policy favorable to theoil and gas industry.

Tom is a graduate of Duquesne University, a Certified PublicAccountant and his prior board memberships include the Inde -pendent Oil and Gas Association of West Virginia (IOGA-WV),Independent Petroleum Association of America (IPAA), and pastChairman of Treesdale Golf & Country Club.

Robert Beatty, Jr. – “O” Ring CNG Fuel Systems and RobertBeatty Oil & Gas

Robert “Bob” H. Beatty, Jr., is an award-winning speaker, avidcompressed natural gas (CNG) and liquefied natural gas (LNG)advocate, and CEO of “O” Ring CNG Fuel Systems, L.P. HisPennsylvania-based company is dedicated to both promoting andproviding a pathway for the use of natural gas as a vehicle fuel.His accomplishments in the CNG industry have been featured onIn View with Larry King, the Pennsylvania Senate Film Channel,in the Pittsburgh Business Times, NGT News, NGV Today, as wellas various other media outlets. He has helped clients recognizevast savings in fuel costs while utilizing cleaner, more efficientnatural gas for their fleets. Most notably, he has completed full-scale CNG projects for clients as well as building and operatingfour of his own public CNG stations.

Bob serves on several industry-related committees providing

direction on regulatory and safety concerns for CNG solutions,including the Pittsburgh Region Clean Cities Board of Directorsand the Carnegie Mellon University Fuel Freedom Foundation. Healso serves as Chairman of the PIOGA’s Alternative Fuels Sub -committee, Chairman of the Heartland Energy Foundation, andChairman of the Tri-State Alternative Fueling Expo & Convention.Bob received the 2013 Pittsburgh Business Times Energy Lead -er ship Award, the 2014 International Clean Tech Award, and “O”Ring CNG was named one of Pennsylvania’s Business Central’s

Top 100 Organizations of 2014 for work inrevolutionizing the U.S. transportationindustry. He holds certifications from theNatural Gas Vehicle Institute (NGVI) ofAmerica in both CNG Fuel Station Design& Construction and CNG Fuel StationMan agement and has over 30 years’ expe-rience in the natural gas and compressionindustries. A staunch patriot, Robert ispassionate about changing the landscapeof the transportation sector by increasingthe use of natural gas to provide a clean-er, more affordable, domestic fuel sourcefor Americans.

Bob is also the President/Owner ofRobert Beatty Oil & Gas

Sara Blascovich – HDR Inc.Sara has been involved with PIOGA since 2010 in various

capacities, including participating in the Environmental Commit -tee. Professionally, Sara’s experience is related to permit prepara-tion, regulatory analysis, and client advisement related to theFederal Clean Water Act, FERC Natural Gas Act applications, PAClean Streams Law, NEPA, National Historic Preservation Actand Endangered Species Act. She has over 12 years of experi-ence coordinating with state and federal agencies to provide per-mitting and regulatory services for a variety of market sectorsincluding transportation, oil and gas, private individuals, railroads,and land development. She has extensive experience with agencycoordination and development of working relationships withagency personnel in the federal, state and local regulatory com-munity as well as legislative community.

Sara is based in Harrisburg, which allows her to participate inPennsylvania Department of Environmental Protection meetingsas frequently as needed and to utilize long-standing relationshipswith Central Office and regional staff. Sara commented that herinvolvement with PIOGA has been extremely pleasant and benefi-cial to her career and, if elected to this position, she will be ableto contribute greatly to the PIOGA Board of Directors to provideother members with some of the same benefits that she hasgained through her involvement over the past six years.

Robert Esch – American Refining Group*Robert C. Esch is Vice President of External Affairs at Ameri -

can Refining Group, Inc. (ARG). ARG’s refinery in Bradford, Penn -sylvania, is the oldest continuously operating refinery in the worldand the only refinery in the world processing 100 percent Penn -syl vania Grade crude oil. Mr. Esch joined ARG in 1979 after serv-ing in the U.S. Navy from 1970-74 and graduating from St. Bona -

Page 8 The PIOGA Press

venture University in 1978. He has worked in all areas of therefinery, as project engineer, production supervisor, plant manag-er and currently as Vice President of External Affairs.

Active in workforce and economic development in North -western Pennsylvania, Mr. Esch is the Past Chairman of theBoard for Futures Rehabilitation Center and the ARG FederalCredit Union, vice-chair and past chair of the North CentralWorkforce Investment Board, Vice-Chair of the Bradford Land -mark Society Board, past Chair of the Pennsylvania WorkforceInvestment Board Association and past president of the BradfordArea Chamber of Commerce. He is also a founding SteeringTeam member for Leadership McKean and is part of the Exec -utive Board for the North Regional Planning and Develop mentCommission. He also serves on the board for the Upper AlleganyEducational Consortia, the Bradford Economic Develop mentCommission, the Bradford Sanitary Authority, the Dresser-RandChallenger Learning Center, and the Common wealth’s EarlyLearning Commission. Mr. Esch is currently on the Board ofDirectors of the Pennsylvania Independent Oil and Gas Asso -ciation.

Bob Garland – Silver Creek Services (SCS)Bob Garland currently serves as Senior Vice President of

Sales and Marketing for Silver Creek Services (SCS). SCS hasseveral services they provide including Logistics through Flow-back as well as Chemical Pumping. Bob has worked in the Appa -lachian Basin for 34 years and has been involved with many dif-ferent aspects of the oil and gas service industry from open holeto cased hole logging to hydraulic fracturing. Over all these years,Bob has seen the exciting changes that occurred, but also wit-

nessed the backlash against oil and gas production. Bob has par-ticipated in numerous public outreach events to educate the pub-lic about the industry, the process and safeguards that are inplace.

Bob has also served on the Board of Directors of the Societyof Petroleum Engineers International for the past three years andalso served as Audit Chairman, Liaison between the Educationand Information Committee, and as a member of the Commun -ications and Knowledge Sharing Committee. Bob looks forward toserving the industry as a member of the PIOGA Board of Direc -tors, if elected.

Michael Hillebrand – Huntley & Huntley Energy Exploration,LLC*

Mike is a petroleum and natural gas engineer from ThePennsylvania State University with 30 years’ experience directlyrelated to oil and gas development in the Anadarko, Permian andAppalachian Basins. He started in the well service industry, pro-gressed to oil and gas finance focusing on direct burn natural gasuse for generating electricity and then became a partner owner inHuntley & Huntley in 1997. He has directly sourced and negotiat-ed all legal and financial aspects of over $1.1 billion committedand focused upon the acquisition and/or drilling & completion, ofboth vertical and horizontal oil and gas wells though out hiscareer with a primary focus on Southwest Pennsylvania. He hasbeen instrumental in advancing Huntley’s 100-year oil and gashistory as a relevant developer in the new world of oil and gas,horizontal well completions. He is a current board member ofPIOGA, the Allegheny County Energy and EnvironmentCommittee, the MSC, and the IPAA and is a life member of theSociety of Petroleum Engineers.

Craig Mayer, Esq. – Pennsylvania General Energy Company,LLC

From 2004 to 2013 Mr. Mayer was a Vice President andGeneral Counsel with Pennsylvania General Energy Company,LLC and since 2013 has been Vice President for GovernmentAffairs. He is a 1974 graduate of Duquesne University School ofLaw and is a 1968 graduate of the Pennsylvania State University.A retired U.S. Marine Corps officer, he served on active duty from1968 to 1992 in various command and staff postings to includecombat service in Vietnam and subsequently as a JudgeAdvocate and Naval Attaché. In a civilian capacity from 2000 to2002 he worked in the Sinai Peninsula in association with theU.S. State Department as an International Observer and TeamLeader with the U.S. Observer Unit of the Multi-National Forceand Observers (MFO). The MFO monitors Egyptian and Israelicompliance with the Camp David Peace Treaty Accords. Mr.Mayer is also the owner-operator of Woy Bridge Campground andresides in Everett, Pennsylvania.

Bryan McConnell, P.G. – Tenaska, Inc.Bryan J. McConnell is a Registered Professional Geologist

with nearly 30 years of experience in professional environmental/regulatory management. His specialties include operations man-agement, project management, regulatory-driven environmentalcompliance audits, inspections, multi-media permitting and regu-latory policy management.

After earning a Bachelor of Science degree in Geology fromWest Virginia University, Mr. McConnell spent the following 16

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February 2014 Page 9September 2016 Page 9

years at the Pennsylvania Department of Environmental Pro -tection in progressively responsible positions until leaving theagency in 2003. During the next six years, he managed multi-media environmental programs as a government contractorthrough various consulting firms to the United States Army andDepartment of Defense.

Mr. McConnell is currently employed by Tenaska, Inc., wherehe is responsible for overseeing the environmental, regulatoryaffairs for the company, supporting exploration and production ofoil & natural gas in the Appalachian Basin, midstream activities,natural gas fueled power generation, and other energy develop-ment. In addition to his employment at Tenaska, Mr. McConnellhas been appointed by Governor Tom Wolf to serve on the Penn -sylvania Department of Environmental Protection Oil and GasTechnical Advisory Board. Bryan was unanimously elected as thefive-member Board Chairman.

Sam McLaughlin – Fisher AssociatesSam McLaughlin is the Director of Oil & Gas Work at Fisher

Associates. He is an oil and gas veteran and spent over 30 yearsat CONSOL Energy—one of the leading diversified energy com-panies in the United States. Sam led the development of CON -SOL’s directional Drilling program for the Marcellus/Utica shaleregion. Under his leadership, that program grew to make CON-SOL one of the major players in the industry. His energy careerbegan as a summer student at CONSOL Energy, and he washired full-time after graduating from West Virginia University in1983 with a degree in mining engineering. Sam worked his wayup from an entry level position to a Corporate Vice Presidentbefore his retirement in 2015. Sam is a Member of the Penn -sylvania Independent Oil and Gas Association, Society of Petro -leum Engineers, and Society of Mining Engineers.

Beth Powell – New Pig EnergyBeth Powell is the Vice-President and General Manager of

New Pig Energy. Beth has 22 years of experience in chemicalsand plastics manufacturing and has been granted nine patents.She has invented absorbents, hazardous material packaging,leak protection products and secondary containment systems.Beth holds a BS in Chemical Engineering and an MBA from thePennsylvania State University. She has served as Vice-Chair ofthe Marcellus Shale Coalition Supply Chain Committee and as aDirector-at-Large for the Appalachia Women’s Energy Network.She is currently a Director-at-Large for PA STEPS, which focuseson zero environmental and safety incidents at well sites.

Roy Scandrol, P.E. – Clean Air Engineering Inc.Roy Scandrol, is a Business Leader with Clean Air Engineer -

ing Inc. with over 38 years of experience in the energy sector.Roy’s industry experience spans across coal, natural gas, cokeand renewal energy projects. Roy worked for over 30 years atConsol Energy focusing on R&D, operations and project manage-ment. He also worked in business development for Kela Energyand currently for Clean Air Engineering, Inc. Roy is also thePresident of Pennsylvania Energy Consultants. Roy is a pastmember of the Board of Managers for IMACC, LLC. Roy receivedhis Bachelor of Science degree in Mechanical Engineering fromthe University of Pittsburgh and is a licensed professional engi-neer in Pennsylvania. Roy has been married for over 36 years,recently became a grandfather and is a resident of Canonsburg.

Jennifer Vieweg – Energy Corporation of AmericaJennifer Vieweg is Corporate Affairs Manager at Energy

Corporation of America, where she is responsible for developingand executing public and community relations strategies and out-reach efforts; managing internal and external messaging; ensur-ing the smooth operation of the office of the president; planningand directing administrative and operational activities for theoffice; serving as a key point-of-contact for various stakeholders;and tracking progress for strategic initiatives. Her career compris-es nearly 12 years with Charles Ryan Associates, a Charleston,West Virginia-based strategic communications firm, where sheserved as Vice President of Client Service. During her tenure,Vieweg headed account teams for a wide variety of clients inenergy, manufacturing, chemicals, insurance, banking, tourism,and many other industries. Ms. Vieweg holds a Bachelor ofScience degree in Communications: Advertising from FloridaState University and a Master of Arts degree in CommunicationStudies: Organizational Communication from Marshall University.She is a member of the Board of Directors and serves as com-munications committee chairperson for the YWCA Charleston andthe Education Elevators mentoring program. She also serves onthe American Heart Association’s Heart Walk Executive Leader -ship Team, IOGA-WV’s Communications & Education Committee,and the Charleston Area Alliance’s Community Relations Team. ■

Page 10 The PIOGA Press

This month: Divot Diggers Golf OutingThe annual Divot Diggers Golf Outing is organized by

PIOGA’s Environmental Committee and is always a popular wayto wind down the summer. The 19th annual edition takes placeThursday, September 22, at Tam O’Shanter of Pennsyl vania inHermitage.

A unique feature of the event is that everyone who partici-pates also must sponsor at one of two levels. This enables us tooffer lots of great prizes, along with 18 holes of golf, cart, lunchand a great steak fry afterward. Due to industry conditions, wehave lowered costs to ensure that everyone who would like toparticipate is able to do so.

More information and a registration form are at www.pioga.org/event/divot-diggers-golf-outing. The event tends to fill up quickly,so please contact Debbie Oyler at debbie@pioga.org or 724-933-7306 ext. 22 before submitting your registration.

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A selection of photos from theAugust 23-24 event at SevenSprings Mountain Resort.Clockwise from top left:Michael Marr talks aboutShell’s upcoming crackerplant in Beaver County; par-ticipants sit down for the PigRoast feast; taking aim at thesporting clays competition;and one of the technical con-ference presentations. Ourthanks to all who played apart in making this annualevent a succcess—attendees,speakers and sponsors.

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Platts Annual Appalachian Conferencetackles critical gas and NGL issues

Platts will hold its Annual Appalachian Oil & GasConference on October 25-26 at the Fairmont inPittsburgh. Speakers will tackle issues of critical interest to

the industry, including:• Commodity prices—future trajectories for gas and NGLs.• M&A, divestitures and JVs—drivers, trends and likely

impacts on markets of the activity in this area.• Gas demand—outlook for regional end-user growth and

LNG exports from the East Coast.• NGL demand—local petrochemical requirements and

exports to Europe and Asia.• Pipeline development—FERC vs. state jurisdictional issues,

public opposition and local utilities involvement.• Terminal development—prospects for a regional hub.Industry perspectives come from Steve Woodward of Antero

Resources, Joseph Oates of Con Edison Transmission, JohnRudiak of Connecticut Natural Gas, Joshua Eakle of DominionTransmission, Tony Chovanec of Enterprise Products Partners,Dirk Straussfeld of Quantum Utility Generation, Andrea Groverand Caitlin Tessin of Spectra Energy, Joe McGinn of SunocoLogistics Partners and Chris Shorts of Union Gas.

Financial, legal, and advisory perspectives are provided byTom Choi of Berkeley Research, Sean Moran of BuchananIngersoll & Rooney, Anthony Yuen of Citigroup, KristinaKazarian of Deutsche Bank, Cathy Kunkel of Institute forEnergy Economics and Financial Analysis, Jeffrey Logan ofPennsylvania Chemical Industry Council, Mike Reimers of Poten

& Partners, Eric Brooks and Jennifer Van Dinter of S&P GlobalPlatts Analytics/Bentek Products, Elizabeth Witmer of SaulEwing and Andrew Levine of Stradley Ronon Stevens & Young.

In addition, you’ll hear updates on development activity,including Con Edison Transmission’s Stagecoach Gas Servicesjoint venture for storage and pipeline projects; Sunoco Logistics’NGL pipelines and export terminal; Dominion’s Cove PointLNG export terminal and Atlantic Coast and Supply Headerpipelines; Spectra’s Access Northeast pipeline; Union Gas’Dawn-Parkway pipeline; and Quantum Utility Generation’sethane-fired power plant..

PIOGA members are entitled to a $350 discount off the stan-dard registration fee. To take advantage of this opportunity, call800-752-8878 (toll free) or 212-904-3070 (outside USA andCanada), or email registration@platts.com. Use priority codePD633PIOGA. ■

Please participate in PIOGA’s safety survey

If you haven’t already done so, PIOGA’s Safety Committeestrongly urges you to take a brief survey about safety issues,

training and related matters. The committee is “rebooting” andwants to make itself as relevant as possible to the association’smembers. Point your browser to http://members.pioga.org/sur-veys/?id=Safety_2016 to access the survey. It should take nomore than 5 minutes of your time to complete. ■

Safety Committee CornerSafety Committee Corner

Page 12 The PIOGA Press

How many employees are onyour field location (forpurposes of the FLSA)?

By now you have probably heard that on December 1 thesalary threshold required for employees to qualify for theexecutive, professional or administrative exemptions

allowed by the Fair Labor Standards Act (FLSA) will double.While certainly significant, this recent update to the overtimeregulations was not unexpected, as the salary threshold has notbeen increased since 2004.

This change is of course not the only recent wage and hourdevelopment of which oil and gas employers must be aware. Inaddition to the fact that Wage and Hour Division of the UnitedStates Department of Labor (DOL) has been specifically target-ing the oil and gas industry since 2012, there are other, far lessdistinct trends that have been taking shape over the past year.The DOL and the National Labor Relations Board (NLRB) haveannounced new rules and cases that could increase employeeheadcounts and expand the concept of joint employment. Inshort, for purposes of the FLSA, some oil and gas employersmay actually have more employees than their payrolls indicate.

Determining whether independent contractors are actuallyemployees

In response to the trend of increasing employee misclassifica-tion investigations and private wage and hour lawsuits, last sum-mer the DOL issued a 15-page interpretative memorandum withan aim to provide “additional guidance” for determining who isan employee and who is an independent contractor under theFLSA. Although classification as an independent contractor canbe advantageous (or even preferable) for workers and businessesalike, improperly classified workers do not receive certain work-place protections such as the minimum wage, overtime compen-sation, unemployment insurance and workers’ compensation.Improper classification also frequently results in lower tax rev-enues for the government and an unfair advantage against thoseemployers that do properly classify their workers.

The FLSA broadly defines the word “employ” as “to suffer orpermit to work.” According to the United States Supreme Courtin U.S. v. Rosenwasser, 323 U.S. 360 (1945), and as acknowl-edged in the DOL’s interpretive memorandum, the “suffer or per-mit” standard is the broadest definition that has ever been includ-ed in any one act and it was designed to ensure as broad a scopeof statutory coverage as possible.

The economic realities test determines whether an individualis an employee or an independent contractor. It involves a bal-ancing of several factors, including whether the potential jointemployer controls the supposed independent contractor and theemployment conditions; the permanency of the relationship; therepetitiveness of the work being performed; whether the work isintegral to the potential joint employer’s business; whether thework is performed on the potential joint employer’s premises;and whether the work qualifies as routine administrative work.According to the DOL, these factors should not be analyzed “ina vacuum, and no single factor, including control, should beover-emphasized.” The ultimate determination to be made iswhether the individual at issue is in business for him or herself

or is instead economically dependent on theemployer. According to the DOL, manycompanies misapply this “broader concept”of the economic realities test and as a result“most workers are employees under the[FLSA].”

NLRB’s expanded joint employer testJust over one year ago, in August 2015,

the NLRB applied an expanded jointemployer test in Browning Ferris Industries,et al., 362 NLRB No. 186(2015), a case in which it heldthat, for the purpose of a unionrepresentation election,Browning Ferris Industries was a joint employer with Leadpoint,a staffing agency. The decision was based upon the concept thatit is the “existence, extent and object” of the putative jointemployer’s control that matters, not whether that control is actu-ally exercised. Though the Browning Ferris decision is limited tounion representation elections, regulatory agencies and the plain-tiffs’ bar may attempt to apply a similarly expansive jointemployer concept for purposes beyond collective bargaining,such as wage and hour matters. Moreover, many temporaryemployee and contractor arrangements have been structured inreliance of the NLRB’s pre-Browning Ferris emphasis on theactual exercise of control as the determinative factor rather thanthe potential for such control. Those arrangements may now besusceptible to attack under the more expansive Browning Ferristest.

DOL’s joint employment guidance Earlier this year, the DOL issued enforcement guidance on the

topic of joint employment. Many employers have decreased thesize of their workforce in recent years by relying upon staffingfirms to provide temporary employees or by outsourcing certainjob functions entirely through contracts with independent busi-nesses. Despite this, employers may still face potential liabilitiesunder the joint employment doctrine. As the traditional directemployment model has changed, these so-called “fissured work-places” have been targeted as alleged joint employers. As aresult, traditional labor and employment laws and regulationsmight be applied to businesses that do not view themselves asthe “employer” of temporary or contracted employees.

Many oil and gas employers may be surprised to know thatthey may be jointly responsible for paying workers overtimealong with the entity that actually issues the workers a Form W-2. Regardless of whether the potential joint employment involvesa horizontal or vertical arrangement, joint employers are jointlyresponsible for adhering to wage and hour laws. Horizontal jointemployment involves workers who are employed by two techni-cally separate yet related or intermingled entities. Vertical jointemployment, on the other hand, is the classic staffing agencymodel.

Very recently, oil and gas workers have begun to file com-plaints against only one (but not all) of the alleged joint employ-ers. For instance, one plaintiff recently alleged that an operator“or its client” violated a wage and hour law. Another alleged thatan operator “or its contractor” misclassified the plaintiff. Perhapsthis strategy is the result of genuine confusion as to which entity

Stephen A.Antonelli Esq.

Author:

September 2016 Page 13

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was the plaintiff’s actual employer. A more likely conclusionmay be that plaintiffs are targeting the entity they presume tohave deeper pockets. Regardless of plaintiffs’ intentions, oil andgas employers should be aware of the possibility that, for purpos-es of the FLSA, they may be responsible for workers who do notappear on their payrolls. ■

Stephen A. Antonelli is a shareholder in the Employment andLabor Practice Group of law firm Babst Calland. For moreinformation about employment and labor challenges in the oiland gas industry, contact Stephen A. Antonelli at 412-394-5668or santonelli@babstcalland.com.

House Passes Thompson’s ANF mineral rights legislation

The U.S. House of Representatives on September 6 passedPennsylvania Congressman Glenn “GT” Thompson’s H.R.3881, the “Cooperative Management of Mineral Rights

Act of 2015,” which reaffirms the rights of mineral owners in theAllegheny National Forest (ANF). The measure was approved bya vote of 395 to 3.

H.R. 3881 will codify federal court rulings related to the regu-lation of privately held mineral rights in the ANF. Since 2009,federal courts have determined that the U.S. Forest Service lackslegal authority to restrict access to private mineral rights in theANF and therefore is prohibited from creating new rules.

PIOGA and one of its predecessor organizations, thePennsylvania Oil & Gas Association (POGAM), spearheaded thecourt cases that led to the rulings upholding the rights of privatemineral owners in the ANF.

“I am thankful to the overwhelming bipartisan support for thisbill, which reaffirms the importance of private property rightsand nearly a century of cooperation between private mineralowners and the federal government,” said Thompson, a member

of the House Natural Resources Committee.“It was not easy to get to this point. We have worked this bill

through the committee process and made a compelling argumentto both Democrats and Republicans in Congress on the impor-tance of this legislation. Despite repeated attempts by extremeenvironmental groups to shut down energy production in theAllegheny National Forest, the Cooperative Management ofMineral Rights Act will once and for all, provide assurances tothe future of jobs and the communities that rely upon our abun-dant natural resources,” Thompson added.

The legislation moves to the U.S. Senate for approval.The Allegheny National Forest covers more than 500,000

acres in northwestern Pennsylvania and is located in Elk, Forest,McKean and Warren counties. More than 90 percent of theANF’s subsurface is privately owned. ■

Page 14 The PIOGA Press

What the media ignored inDEP’s emissions report

When the Department of Environmental Protectionreleased its latest report last month on air emissionsfrom the natural gas industry, the media responded

with headlines such as, “Air pollutants from Pennsylvania oil andgas sites continue to rise.”

Headlines like that, however, miss the key point: Methaneemissions from Pennsylvania natural gas operations rose by just1.5 percent in 2014 despite a 32-percent increase in production.

Natural gas production jumped from 3.1 Tcf to 4.1 Tcf during2014. As the accompanying table shows, methane increased dur-ing the same period from 107.9 tons per year to 109.5 tons.

While there were larger increases in emissions of nitrogenoxides (NOX), fine particulate matter, sulfur dioxide (SO2),volatile organic compounds and carbon monoxide, the highernumbers correspond to the 12-percent growth in midstream facil-ities in 2014. Midstream facilities—all of which must meet strin-gent permitting and operating requirements—increased from 447to 508 from 2013 to 2014.

More significant is the fact that since DEP began the uncon-ventional gas emissions inventory in 2011, the number of report-ing midstream facilities has increased by 239 percent.

DEP began collecting emissions data from operators ofunconventional natural gas sources in 2011. In 2012, the depart-ment expanded the data reporting requirement to include mid-stream compressor stations that support the conventional naturalgas industry. In addition to compressor stations, other sourcesand activities of natural gas operations that DEP identified aspart of the inventory include dehydration units; drill rigs; fugitiveemission sources, such as connectors, flanges, pump lines, pumpseals and valves; heaters; pneumatic controllers and pumps; sta-tionary engines; tanks, pressurized vessels and impoundments;venting and blow down systems; well heads; and well comple-tions.

DEP itself took a broad view of the findings as part of theoverall improvement in Pennsylvania’s air quality. “Although thereported emissions from the natural gas sector increased in 2014,overall our air quality continues to improve due to emissionsreductions from other point sources such as electric generatingunits,” DEP Acting Secretary Patrick McDonnell said. “Between2011 and 2014, NOX and S02 emissions from electric generatingunits have decreased by 18 percent (27,246 tons per year) and 17percent (54,973 tons per year), respectively.” ■

DEP Chapter 78a training

The Department of Environmental Protection has beenholding training to familiarize unconventional operatorsand consultants with changes to Chapter 78a regulations

that will soon go into effect.From late August to the beginning of September, the depart-

ment held 10 webinars on particular aspects of the regulations.The webinars are to be archived so that they are available forviewing at any time. Although they had yet to be posted as ofthis writing, the recorded webinars eventually will be availableat www.dep.pa.gov/DataandTools/Webinars/Pages/Oil-and-Gas.aspx.

Additionally, DEP scheduled in-person training for thismonth at two locations. The September 13-14 training in StateCollege will have passed by the time you read this. The othersessions take place September 27-28 at the Ramada Inn inWashington (1170 West Chestnut Street).

The first day of training runs 9 a.m.-4:15 p.m. and coversthese topics:

• Emergency Response, Secondary Containment,Reporting/Remediating Spills and Releases (§§ 78a.55, 78a.64,78a.64a, 78a.66).

• Erosion Control, Site Restoration, and Borrow Pits (§§78a.53, 78a.65, 78a.67)

• Waste Management 1 (§§ 78a.56–78a.59c)• Pipelines and Horizontal Directional Drilling (§§ 78a.68,

78a.68a, 78a.68b)• Well Permits and Reporting (§§ 78a.11–78a.19,

78a.121–78a.123)The second day lasts from 8:30 a.m. to 4 p.m. and includes:• Area of Review (§§ 78a.52a, 78a.73)• Waste Management 2 (§§ 78a.60–78a.63)• Protection of Water Supplies (§§ 78a.51, 78a.52)• Water Management Plans (§ 78a.69)• Application Requirements and Public Resources (§ 78a.15)There is no charge for the training, but space is limited and

registration for the Washington sessions is due by Friday,September 23. Email RA-epOilandGas@pa.gov with thedate(s) you want to attend, along with your name, title, organi-zation, address and email address.

If you have questions about the training or webinars, contactKurt Klapkowski, director of the Bureau of Oil and GasPlanning and Program Manag ement, at kklapkowsk@pa.gov or717-783-9893.

Unconventional Natural Gas EmissionsTons per year

February 2014 Page 15September 2016 Page 15

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IOGCC report: Production from marginal wells remains substantial

The Interstate Oil and Gas Compact Commission (IOGCC)has released the 2015 Marginal Well Report that docu-ments marginal well activity and the economic contribu-

tion of marginal production in the United States.Despite current industry challenges, marginal wells remain in

widespread operation across the country and continue to reliablyproduce a meaningful share of total domestic oil and natural gasoutput. According to the report, 72.2 percent of all operatingwells in the U.S. in 2015 are marginal.

“The time period provided in this particular report is during adramatic shift in production with extreme price swings for the oiland natural gas industry,” stated IOGCC Executive Director CarlMichael Smith. “This report will show the vital role marginalwells play for our nation’s energy security and independence.”

The IOGCC defines a marginal well as a well that produces10 barrels of oil or 60 Mcf of natural gas per day or less. Thecurrent report, which includes 29 states, is based on data collect-ed from the IOGCC marginal well survey that covers productionactivity for the calendars years of 2013, 2014 and 2015.

The report states that marginal wells have contributed morethan $300 billion of production in the form of 2.85 billion barrelsof oil and 19.9 billion Mcf of natural gas over the last 10 years.

The total number of producing marginal wells increased bynearly 24,000 since the prior survey in 2012. Though that is onlya 3-percent increase, marginal production remains a substantialshare of U.S. oil and gas.

According to the report, Pennsylvania is the top-ranked statefor marginal gas wells, with 65,755 wells that produced a total of

102,196 MMcf last year. Sixth-ranked Pennsylvania has 21,284oil wells that produced 1.4 million barrels of crude in 2015. Thestate’s average gas well produces 4.3 Mcf daily, while the aver-age oil well yields 0.2 barrels per day.

“Stripper (marginal) wells are the small business sector of thenation’s oil and gas industry. They are frequently family-owned,predominantly in rural areas, and passed down through genera-tions,” stated Darlene Wallace, National Stripper WellAssociation chairman, and owner/operator of Columbus OilCompany, Seminole, Oklahoma. “Stripper well producers knowthere are tremendous economic benefits from extending the oper-ations of oil and gas production as long as possible from existingwells.”

The elimination of both marginal oil and natural gas wells in2015 would trigger an estimated direct loss of 57,560 jobs in theoil and gas sector and $4.4 billion in direct earnings within thesurvey states, according to the report.

Generally, marginal wells start their productive life producingmuch greater volumes using natural pressure. Over time, thepressure decreases and production drops. It has been estimatedthat in many cases these wells may be accessing a reservoir that

Page 16 The PIOGA Press

New PIOGA members — welcome!

Clarion Inn Belle Vernon827 Finley Road, Belle Vernon, PA 15012724-268-0714Associate Member

Endless Mountains Geosciences, LLC1638 Dutch Mountain Road, Dushore, PA 18614570-899-7313 • endlessmountainsgeo.comProfessional Firm—professional geology and environmental serv-ices

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On Thursday,August 18, thePennsylvania

Department of Environ -mental Protection con-ducted a public hearingon the proposed MarinerEast 2 Pipeline at West -moreland County Com -munity College inYoung wood. This Sun -oco Logistics pipelinewill run from easternOhio to the refineries inMarcus Hook near Phila -delphia. Members ofPIOGA’s Pipeline andGas Market Develop -ment Committee attend-ed, including Dan Garciaand Tim Wetzel. Garciaprovided public testimo-ny and was one of nearly30 speakers, the majorityin favor of the project.

A crowd of nearly140 citizens were inattendance. Supporters outnumbered the opposition in the audi-ence as well. Pipeline supporters included members of theOperating Engineers Local 66 and contractors. This was the lastof a series of public hearings conducted by the Department ofEnvironmental Protection on the Mariner East 2 Pipeline.

There are estimates this project could create as many as30,000 direct and indirect jobs resulting in $4 billion of econom-ic activity. DEP will be reviewing all public comments fromthese hearings before it reaches a decision on permit applica-tions.

—Robert Johnson, ADKL LLC

stills holds two-thirds of its potential value.In addition to supplying much-needed energy, marginal wells

are important to communities across the country, providing jobsand driving economic activity. Today, as the nation ponders thesolution to its energy challenges, the IOGCC will continue to tellthe story of how low-volume producing wells can collectivelycontribute to a sound energy and economic future.

The 2015 Marginal Well Report can be found at iogcc.ok.gov/Websites/iogcc/images/MarginalWell/MarginalWell-2015.pdf.

The IOGCC is a multi-state quasi-government agency thatpromotes the conservation and efficient recovery of our nation’soil and natural gas resources while protecting health, safety andthe environment. The IOGCC consists of the governors of 38states (30 members and eight associate states) that producealmost all of the oil and natural gas in the United States.Chartered by Congress in 1935, the organization is the oldest andlargest interstate compact in the nation. ■

DEP Mariner East 2 Pipeline public meeting at WCCC

Supporters of Sunoco Logistics L.P.’s Mariner East 2 project, a 350 mile liquids pipeline originating ineastern Ohio to extend to the Marcus Hook refinery, actually outnumbered the opposition by two to one atthe DEP public meeting in Westmoreland County in mid-August. Pictured at the podium is Dan Garcia, ofPipeline Compliance Group, LLC and PIOGA’s Public Relations Subcommittee leader. Studies haveshown that the Mariner East 2 pipeline project would create 30,000 indirect and direct jobs during itsconstruction phase and generate about $4.2 billion in economic activity.

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February 2014 Page 17September 2016 Page 17

Guttman Energy (www.guttmanenergy.com) is a regional,integrated fuel distributor based in Belle Vernon that hasprovided energy solutions for commercial, wholesale and

industrial customers for more than 85 years. What started as agas station in 1931 has grown into a sophisticated provider offuel solutions.

Our customers’ needs are as varied as our market solutions.In markets such as oil and gas, transportation, and construc-tion, Guttman has a proven reliability to deliver on time and onbudget. This reliability has been a key contributor to our abilityto grow our business in step with the growth of the oil and gasindustry in Pennsylvania and Ohio. We have grown annual gal-lon volumes considerably through bulk delivery of fuel to drillersand completion companies, and many water haulers use ourFuelman fleet card program to handle their high-volume, over-the-road fueling requirements.

Guttman supply and risk management expertise helps cus-tomers navigate price and supply volatility, giving them greatercertainty and control. Our experienced sales professionals takethe time to understand our customers’ business, and then rec-ommend a tailored solution unique to their needs. Pricing pro-grams, inventory management, fuel operability programs andfleet card solutions allow them to gain greater certainty and

control.

Fuel pricing programs alleviate the risk of lack of supply andunpredictable prices. With a variety of programs and a consulta-tive sales team and experienced traders, there is a pricing solu-tion that fits every company.

To ensure fuel quality and operability, Guttman offers a num-ber of fuel operability programs, from fuel sampling to remedia-tion consulting. Experts work with customers and take theproactive steps to ensure uninterrupted operations. Guttmanalso helps businesses avoid fuel run-outs with inventory man-agement solutions that help manage supply.

Fleet card solutions help control over-the-road fuelingexpenses. These programs are tailored to a company’s needs toallow them to more efficiently manage their fleet and savemoney.

Eight decades in the fuel business have allowed Guttman tofine tune its market intelligence, a critical differentiator in anindustry where prices can swing wildly from day to day. A teamof commodity traders bring a diverse range of industry experi-ence, from working with major refiners to global trading compa-nies. The knowledge and skill of these professionals togetherwith Guttman’s relationships with multiple supply partners andits ability to purchase in the New York, Chicago and Gulf Coastcash markets help give Guttman customers a competitive edge.

Guttman is a growing and dynamic company. In the past 15years, the company has expanded significantly, creating SourceOne Transportation, LLC and Bulk Terminal Storage to providegreater control and flexibility across the fuel supply chain.

PIOGA Member Profile

Member News

Zuzik joins ARG as senior vice president of sales,marketing and business development

Neal Zuzik has joined American Refining Group Inc.(ARG) as senior vice president of sales, marketing andbusiness development. He comes to ARG from

Valvoline where he most recently served as its vice president ofglobal supply chain, leading its global purchasing, indirect pro-curement, logistics and customer service teams. He joinedAshland in early 2001 as a transportation analyst with Valvoline.Since then he has held various positions of increasing responsi-bility from OEM account manager, sales manager, area manager,project manager, business development manager, global purchas-ing manager and director of global procurement.

Guttman’s Harper elected to Ohio petroleummarketers’ board

Guttman Energy, Inc. announces that Mark Harper has beenelected to the board of directors of the Ohio Petroleum Marketersand Convenience Store Association. Mark is Guttman’s executivevice president of sales & marketing. As a board member, Markwill represent the interests of Guttman customers conductingbusiness in Ohio, including producers and oilfield services com-

panies operating in the Utica Shale play. Mark has 28 years ofexperience in the energy business, serving in a variety of strate-gic sales and marketing roles.

SilverSmith owner passes away

David Silvers, 44, the owner of SilverSmith, Inc., passed awayunexpectedly on August 27 while riding his bicycle, one of hisfavorite pastimes. He leaves behind a wife and two daughters.Services took place August 31 in Gaylord, Michigan.

McFarland joins Steptoe & Johnson

Steptoe & Johnson PLLC announces that Ben M. McFarlandhas joined the firm’s litigation team. McFarland’s practice willfocus on professional liability as well as energy litigation in thefirm’s Wheeling, West Virginia, office. McFarland has focusedhis practice almost exclusively on litigation, having handledcases involving professional liability, construction disputes,workplace accidents, premises liability, and other matters relatingto workplace safety. He has also represented mining, construc-tion, and general industry companies challenging enforcementactions taken by both state and federal government agencies. Heearned his law degree from the University of Toledo College ofLaw, where he graduated magna cum laude and also receivedOrder of the Coif honors. ■

Page 18 The PIOGA Press

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September 2016 Page 19

PIOGA appeal: Continued from page 1

imposing conditions (January PIOGA Press, page 1, and July,page 8).

PIOGA argued that the Supreme Court majority found theprovisions of Section 3215—except subsection (a) —to comprisean inextricably linked decisional process. DEP, on the other handand for the first time, argued that Section 3215(c) stood aloneand could be applied apart from the other invalidated provisionsof Section 3215.

Despite PIOGA’s showing (which the court did not mention)that the public resources identified in Section 3215(c) are ade-quately protected by other statutes operators must satisfy, theCommonwealth Court majority found that “DEP’s authorityunder Section 3215(c) to consider the impact that a proposedwell will have on public resources, those listed and unlisted, isextant, limited only by the portion of the Supreme Court’s man-date … that enjoins its application and enforcement with respectto the water source setback and waiver provisions set forth inSection 3215(b).” The court’s use of the precise term “extant”—which means “in existence; still existing; not destroyed orlost”—shows that the majority accepted DEP’s new argumentthat Section 3215(c) stands alone from the other provisions ofSection 3215.

Reacting to the ruling, PIOGA Vice President and GeneralCounsel Kevin Moody stated: “We believe the court erred in (i)misconstruing the consequence of the Supreme Court’s severabil-ity conclusions in view of the changes made by Act 13 to thepublic resource provisions and permit decisional process now inSection 3215; (ii) interpreting specific words the Supreme Courtused concerning the severability of Section 3215 in a mannerthat ignores the unambiguous use of these same words elsewherein the Robinson Township opinion; (iii) viewing the Section3215 permit decisional process as more limited than it actually isby failing to acknowledge, as DEP admitted, that nearly all oiland natural gas well permit applications involve setbacks fromwater bodies or features described in Section 3215(b); (iv) failingto acknowledge, as DEP also admitted, that there are no stan-dards for DEP’s imposing conditions in permits based on its con-sideration of impacts to water bodies or features described inSection 3215(b) and other public resources; and (v) failing tounderstand the significance of DEP’s request that the SupremeCourt reconsider its severability conclusions concerning Section3215.”

A dissenting opinion authored by Judge Anne E. Covey,joined by Judge Renee Cohn Jubelirer, said that“[t]o rely onspecific words in the Supreme Court’s conclusion misrepresents

the court’s ruling, especially in light of the fact that the SupremeCourt included a specific discussion on Section 3215’s severabil-ity. Parsing certain words, as the majority has done to support itsdecision, becomes unnecessary when the statute, and theSupreme Court’s rationale and ruling, are read in context.”

Covey pointed specifically to a portion of the RobinsonTownship opinion which said that Section 3215(c) was “incom-plete and incapable of execution in accordance with legislativeintent” given its decision.

DEP Acting Secretary Patrick McDonnell said the ruling“unconditionally confirms that the department has legal authorityunder Act 13 to consider the impact that a proposed well site willhave on public and natural resources. This decision will assist thedepartment in its work to ensure responsible development of nat-ural resources in Pennsylvania.”

PIOGA’s Moody observed that “Acting SecretaryMcDonnell’s use of the word ‘unconditionally’ shows that DEPunderstands that this decision essentially ‘undoes’ the SupremeCourt’s injunction of Section 3215(c) by transforming it from aprohibition to a grant of additional authority. That is the oppo-site of what an injunction does.”

PIOGA intends to appeal the decision. ■

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Page 20 The PIOGA Press

Natural Gas Futures Closing PricesAs of September 9

Month PriceOctober 2016 $2.797November 2.890December 3.119January 2017 3.243February 3.246March 3.205April 2.986May 2.963June 2.992July 3.022August 3.032September 3.018

SourcesAmerican Refining Group: www.amref.com/Crude-Prices-New.aspxErgon Oil Purchasing: www.ergon.com/prices.phpGas futures: quotes.ino.com/exchanges/?r=NYMEX_NGBaker Hughes rig count: phx.corporate-ir.net/phoenix.zhtml?c=79687&p=irol-

reportsotherNYMEX strip chart: Emkey Energy LLC, emkeyenergy.com

Oil & Gas Trends

Pennsylvania Rig Count

Penn Grade Crude Oil Prices

1-800-353-3747 • www.leesupply.com

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avigueras@ecbm.com

888-313-3226 ext. 1335

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Insurance Brokers & Consultants

724.830.3061 westmorelandcountyidc.org

WCIDC Board of Directors: Gina Cerilli, Ted Kopas,

Charles W. Anderson

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Page 22 The PIOGA Press

Bald Hill Oil 2 8/29/16 053-30828 Forest Howe Twp8/31/16 053-30826 Forest Howe Twp

Cabot Oil & Gas Corp 6 8/12/16 115-22183* Susquehanna Springville Twp8/12/16 115-22185* Susquehanna Springville Twp8/12/16 115-22187* Susquehanna Springville Twp8/17/16 115-22184* Susquehanna Springville Twp8/19/16 115-22188* Susquehanna Springville Twp8/19/16 115-22186* Susquehanna Springville Twp

Cameron Energy Co 2 8/8/16 123-47899 Warren Sheffield Twp8/15/16 123-47898 Warren Sheffield Twp

Catalyst Energy Inc 8 8/11/16 121-46041 Venango Cranberry Twp8/15/16 121-46042 Venango Cranberry Twp8/17/16 121-46043 Venango Cranberry Twp8/19/16 121-45937 Venango Cranberry Twp8/24/16 121-45938 Venango Cranberry Twp8/25/16 121-45939 Venango Cranberry Twp8/29/16 121-46121 Venango Cranberry Twp8/31/16 121-45940 Venango Cranberry Twp

Chief Oil & Gas LLC 2 8/23/16 113-20352* Sullivan Fox Twp8/23/16 113-20354* Sullivan Fox Twp

EQT Production Co 11 8/16/16 003-22358* Allegheny Forward Twp8/16/16 003-22360* Allegheny Forward Twp8/16/16 003-22361* Allegheny Forward Twp8/16/16 003-22362* Allegheny Forward Twp8/16/16 003-22365* Allegheny Forward Twp8/16/16 003-22359* Allegheny Forward Twp8/9/16 125-28021* Washington Carroll Twp8/9/16 125-28011* Washington Carroll Twp8/29/16 125-28025* Washington Carroll Twp8/29/16 125-28026* Washington Carroll Twp8/29/16 125-28027* Washington Carroll Twp

KCS Energy Inc 4 8/3/16 123-47687 Warren Watson Twp8/9/16 123-47690 Warren Watson Twp

8/16/16 123-47692 Warren Watson Twp8/23/16 123-47689 Warren Watson Twp

MSL Oil & Gas Corp 2 8/16/16 083-56653 McKean Hamilton Twp8/24/16 083-56649 McKean Hamilton Twp

Range Resources Appalachia 1 8/24/16 125-28038* Washington East Finley TwpRE Gas Dev LLC 5 8/6/16 019-22551* Butler Donegal Twp

8/6/16 019-22552* Butler Donegal Twp8/10/16 019-22558* Butler Donegal Twp8/10/16 019-22559* Butler Donegal Twp8/1/16 019-22543* Butler Oakland Twp

Seneca Resources Corp 1 8/26/16 047-24973* Elk Jones TwpSWEPI LP 8 8/2/16 117-21857* Tioga Liberty Twp

8/3/16 117-21858* Tioga Middlebury Twp8/5/16 117-21860* Tioga Middlebury Twp8/6/16 117-21861* Tioga Middlebury Twp8/8/16 117-21859* Tioga Middlebury Twp8/11/16 117-21817* Tioga Sullivan Twp8/12/16 117-21818* Tioga Sullivan Twp8/13/16 117-21819* Tioga Sullivan Twp

Vantage Energy Appalachia II 14 8/23/16 059-27039* Greene Center Twp8/23/16 059-27040* Greene Center Twp8/23/16 059-27046* Greene Center Twp8/23/16 059-27047* Greene Center Twp8/23/16 059-27049* Greene Center Twp8/24/16 059-27048* Greene Center Twp8/24/16 059-27050* Greene Center Twp8/30/16 059-27025* Greene Gilmore Twp8/30/16 059-27026* Greene Gilmore Twp8/30/16 059-27028* Greene Gilmore Twp8/30/16 059-27029* Greene Gilmore Twp8/1/16 059-27133* Greene Washington Twp8/1/16 059-27134* Greene Washington Twp8/1/16 059-27135* Greene Washington Twp

Spud Report:August

The data show below comes from the Department ofEnvironmental Protection. A variety of interactive reports are

OPERATOR WELLS SPUD API # COUNTY MUNICIPALITY OPERATOR WELLS SPUD API # COUNTY MUNICIPALITY

available at www.dep.pa.gov/DataandTools/Reports/Pages/Oil-and-Gas.aspx.

The table is sorted by operator and lists the total wells report-ed as drilled last month. Spud is the date drilling began at a wellsite. The API number is the drilling permit number issued to thewell operator. An asterisk (*) after the API number indicates anunconventional well.

August July June May April MarchTotal wells 66 57 34 37 18 58Unconventional 48 49 27 32 14 55Conventional 18 9 7 5 4 3Gas 48 49 27 32 14 55Oil 18 9 7 5 3 3Combination oil/gas 0 0 0 0 1 0

PIOGA Board of DirectorsGary Slagel (Chairman), Steptoe & Johnson PLLCSam Fragale (Vice Chairman), Freedom Energy Resources LLCFrank J. Ross (2nd Vice Chairman), T&F Exploration, LPJames Kriebel (Treasurer), Kriebel CompaniesCraig Mayer (Secretary), Pennsylvania General Energy Co., LLCTerrence S. Jacobs (Past President), Penneco Oil Company, Inc.Thomas M. Bartos, ABARTA EnergyStanley J. Berdell, BLX, Inc.Carl Carlson, Range Resources - Appalachia, LLCMike Cochran, Energy Corporation of AmericaMike Colpoys, National Fuel MidstreamDon A. Connor, Open Flow EnergyTed Cranmer, TBC ConsultingJack Crook, Atlas Energy Group, LLCRobert Esch, American Refining Group, Inc.Michael Hillebrand, Huntley & Huntley, Inc.Jim Hoover, Phoenix Energy Productions, Inc. Gregory Muse, PennEnergy Resources, LLCBill Polacek, Environmental Tank & Container Stephen Rupert, Texas Keystone, Inc.Jake Stilley, Patriot Exploration CorporationWilliam Stoner, Universal Well Services, Inc.Todd Tetrick, EnerVest Operating, LLCMatt Tripoli, IMG MidstreamBurt A. Waite, Moody and Associates, Inc.Thomas Yarnick, XTO Energy

Committee ChairsEnvironmental Committee

Paul Hart, Fluid Recovery Services, LLCKen Fleeman, ABARTA Energy

Legislative CommitteeBen Wallace, Penneco Oil CompanyKevin Gormly, Vorys, Sater, Seymour and Pease LLP (ViceChairman)

Pipeline & Gas Market Development CommitteeBob Eckle, Producer Direct NGL’s, LLCRon McGlade, Monaloh Basin Engineers

Health & Safety CommitteeWayne Vanderhoof, RJR Safety, Inc.

Meetings CommitteeLou D’Amico, PIOGA

Tax CommitteeDonald B. Nestor, Arnett Carbis Toothman, LLP

Communications CommitteeTerry Jacobs, Penneco Oil Company, Inc.

StaffDan Weaver (dan@pioga.org), President & Executive DirectorKevin Moody (kevin@pioga.org), Vice President & General Counsel Debbie Oyler (debbie@pioga.org), Director of Member Services and

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

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

DevelopmentDanielle Boston (danielle@pioga.org), Director of AdministrationLou D'Amico (lou@pioga.org), Government Relations AdvisorTracy Zink (tracy@pioga.org), Administrative Assistant

Pennsylvania Independent Oil & Gas Association115 VIP Drive, Suite 210 • Wexford, PA 15090-7906724-933-7306 • fax 724-933-7310 • www.pioga.org

Northern Tier Office (Matt Benson)167 Wolf Farm Road, Kane, PA 16735

Phone/fax 814-778-2291© 2015, Pennsylvania Independent Oil & Gas Association

February 2014 Page 23September 2016 Page 23

PIOGA EventsInfo: www.pioga.org/events

Divot Diggers Golf OutingSeptember 22, Tam O’Shanter Golf Club, Hermitage

Industry EventsEastern Section, American Association of Petroleum

Geologists

September 25-27, Lexington (KY) Convention Center

Info: www.esaapgmtg.org

Platts 9th Annual Appalachian Oil & Gas Conference

October 25-26, Fairmont Pittsburgh

Info: www.platts.com/events/americas/appalachian/index

OOGA 2016 Technical Conference and Oilfield Expo

November 2, Pritchard Laughlin Civic Center Cambridge, OH

Info: oogatechexpo.com

IPAA Annual Meeting

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

Info: www.ipaa.org/meetings-events

Calendar of Events

➤ More events: www.pioga.org

IOGANY annual meeting cancellationThe Independent Oil & Gas Association of New York has

announced it is cancelling its annual meeting due to industryconditions. The event had been scheduled for October 20.

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

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