Diamond Bits

October 2014

Volume 63, Issue 9

President’s Letter “Building a Bridge to the Future” By the time you read this, Convention will have come and gone. I will be at least 5 pounds heavier from all that good food. Again I exhort you! If you have never been to an ADDC convention, you are missing out! The benefits are endless but here are cliff notes for a few: old friends, new friends, new city and of course some great opportunities for education. I encourage you to make plans to attend the 2015 convention in Lubbock, Texas! Everyone who attended the field trip to the George W. Bush Presidential Library and Museum had an outstanding time. The library and museum were very informative and it was especially poignant to see the coverage of the events of September 11, 2001 and its aftermath, especially so close to its anniversary. We also took a group photo in the oval office! Sometime during October, we will be dropping off the stuffed animals we collected to the Dallas Children’s Advocacy Center. There will be an email sent out as soon as the date and time are arranged. We will also be collecting canned and dry goods for the White Rock Center of Hope for the October and November meetings. It is especially during the upcoming holidays that we want to show our generosity and concern for the hungry in our own backyard. Please remember to bring something. At the October meeting, we will be voting on the slate of officers for next year. Thank you to all who have stepped up to the plate and submitted their names for consideration to serve on the board. As we have stated before, if serving on the board is not what you are ready for, then there are numerous committees that certainly need your help. At the October meeting, we will be reviewing all the committees and their duties as part of our new member orientation so please make plans to attend. I am renewing my challenge to you – if you have not submitted your name to be an officer, please find a committee to serve on. Again – your membership is what you make of it. Start by doing what’s necessary, then do what’s possible. Before you know it, you are doing the impossible. --- St. Francis of Assisi Don’t allow yesterday’s regrets to keep you from today’s possibilities. Press on. --- Patsy Clairmont, Christian author and speaker

Sharon Figueroa

INSIDE THIS ISSUE President’s Letter

1

Meeting Info

2

Dates to Remember

2

Birthdays

2

Sponsors

2

Speakers Info

3

Website & Social Media

3

Boom—San Juan Basin

4

Memory Blast

5

Sept. Meeting in Review

6

Abbreviations

6

Community Corner

7

Reg. IV Director’s Letter

8

ADDC President’s Letter

9

2014 Scholarship Recipients

11

Race for the Cure

12

Denton Votes on Fracking

13

Field Trip Recap

15

Executive Board

18

Committees & Members

18

October 2014

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Meeting Information When:

Our meetings are held the 1st Thursday of the month. Dinner is served at 6:00 p.m. Reservations must be made by 10:00 a.m. on the prior Tuesday. Reservation can be made by e-mailing Julie Hendon at [email protected] or at: http://dddallasrsvp.wufoo.com/forms/z7x3p9/

Where:

The Doubletree Campbell, 8250 N, Central Expressway, Dallas, TX 75206-1888. The cost of the meal will be $25.00 cash/check Or $26.00 credit card

Please check the hotel schedule for the day (near the front entrance) for the room location of our meeting.

Birthdays October 2

MEMBERSHIP MEETING ORIENTATION/ANNUAL MEETING October 13 COLUMBUS DAY October – TBD DALLAS CHILDREN’S ADVOCACY CENTER TOUR/STUFFED ANIMAL DROP OFF October 31 HALLOWEEN November 4 November 6 November 11 November 27

ELECTION DAY MEMBERSHIP MEETING VETERAN’S DAY THANKSGIVING DAY

December 6 December 25

INSTALLATION OF 2015 OFFICERS CHRISTMAS DAY

Oct. 9

Judy Reeves

Oct. 10

Star Hasse

Oct. 20

Kay Van De Rostyne

Oct. 23

Mary-Margaret Galante

Oct. 25

Julie Hendon

A Monthly Publication of the Desk and Derrick Club of Dallas

September 2014

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Donna C Taylor Topic: The Day of an Oil Scheduler Bio info: I’ve been a member of Desk and Derrick Club of Dallas since 1992. I have four amazing children Aaron -31, Jeremy – 28, Ashleigh – 16 and Caden – 4. After being a widow for 14 years, I’m dating a wonderful man that also works in the Oil & Gas Industry. I have a Bachelor of Business Administration Degree that I can graciously, in part, attribute to help from Desk and Derrick Scholarships. I am currently employed at EXCO Resources, Inc. as an Oil Scheduler in the Marketing Department.

Don’t forget to look at our website http://www.dallasdandd.com/ and our Facebook page – Desk and Derrick Club of Dallas. Your input for both sites are appreciated. Thanks Mary T Vaughan, Website & Social Media Chairman A Monthly Publication of the Desk and Derrick Club of Dallas

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The San Juan Basin is a geologic structural basin in the Four Corners region of the Southwestern United States. It Covers around 4,600 square miles, encompassing much of northwestern New Mexico, southwest Colorado, and parts of Arizona & Utah. Since the 1980’s, the Fruitland formation has been one of the major sources of coalbed methane. This area produced 1.32 trillion cubic feet of natural gas. The resources in this area were once thought to be fully developed. The Mancos Shale/ Gallup formation is providing new investment opportunity. Northwestern New Mexico is anticipating a new oil and gas boom similar to drilling in the Permian Basin in southeastern New Mexico and the Bakken Shale in North Dakota and Montana. Improved horizontal drilling technology and hydraulic fracturing provide drillers an economical way to reach oil and gas in tight shale formations. An estimated 30 billion barrels of oil are in the shale. Canada’s Encana Corp and Tulsa, Oklahoma-based WPX Energy both are developing oil wells in the San Juan Basin and are planning to invest millions to drill more in this area. The Mancos/Gallup shale formation starts at about 7,000 feet underground. (Drinkable ground water supplies end at about 2,500 fee below ground.) The minerals are managed primarily by the US Bureau of Land Management (BLM), the State of New Mexico, Jicarilla Apache Indian and the Navajo Indian tribes. The Bureau of Land Management (BLM) is preparing for the boom by analyzing potential drawbacks to air quality, water resources, and wildlife habitat. The increased exploration is primarily in the Mancos Shale/Gallup formation on BLM land. Other agencies involved are the State of New Mexico as well as the Jicarilla Apache and Navajo tribes. In May of 2014, WPX engaged UnitSource Incorporated to assist in the formation of a Communication Agreement (CA) with the working and royalty interest owners within the San Juan Basin. This agreement covers 9,237.30 acres and is to include only the Mancos formation which will be using horizontal drilling methods. A Monthly Publication of the Desk and Derrick Club of Dallas

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My company, Elm Ridge Exploration has been active in the area since the 1990’s and is one of several owners to participate in this agreement. The existing vertical wells will continue to produce in the shallow formations while WPX will use a new technique for horizontal wells in the Mancos Shale formation. To date the Mancos formation is rich in oil with some natural gas. The San Juan Basin of New Mexico and Colorado has produced 1.32 trillion cubic feet of natural gas, making it the largest source of natural gas in the United States. There is an estimated 30 billion barrels of oil in the shale, though all the oil is not recoverable, according to the industry information published during the San Juan Basin Energy Conference last year. By: Dorothy Lyle, 1997 President References: July 2014 San Juan Basin Energy Conference The Santa Fe New Mexican News The Durango Herald Navajo Times Wikipedia

A Monthly Publication of the Desk and Derrick Club of Dallas

October 2014

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September Meeting in review!

New Member, Marshall Davis & Donna C. Taylor

Tiffany Sellars

Mary Vaughan & Lisa David

Sharon Cook & Theresa Booker

Rita Harden & Dorothy Lyle

Cheryl Morris

Commonly used oil and gas abbreviations Have you ever tried to read a drilling report and didn’t understand what those abbreviations meant? Well here are 10 different abbreviations that you may have seen and their meaning. AFE:

Authority for Expenditure

IP:

Initial Production

BOE:

Barrels of Oil Equivalent

JOA: Joint Operating Agreement

BOPD:

Barrels of Oil Per Day

LOE: Lease Operating Expense

C&E:

Well Completion & Equipment Cost

MCF: One Thousand Cubic Feet (Gas)

IDC:

Intangible Drilling Cost

MMCF: Millions of Cubic Feet (Gas)

Submitted by: Tiffany Sellars, Director of Education

A Monthly Publication of the Desk and Derrick Club of Dallas

September 2014

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COMMUNITY CORNER Dallas Center––Collection CollectionCompleted: Completed: DallasChildren’s Children’s Advocacy Advocacy Center The DCACgives giveshope hopeand andhealing healingtotothe themost most severely severely abused abused children children in Dallas County. County. They Theygive giveaastuffed stuffedaniThe DCAC in Dallas animal to every child they assist – over 2,000 a year. have finished collection stuffed animals mal to every child they assist – over 2,000 a year. WeWe have finished ourour collection of of stuffed animals forfor thethe year. year. The results of our efforts went way beyond past years! We managed to collect 165 stuffed animals! The results of our efforts went way beyond past years! We managed to collect 165 stuffed animals! Please send an email to Sharon Figueroa at [email protected] if you want to tag along for the drop Please send an email to Sharon Figueroa at [email protected] if you want to tag along for the drop off. We will try to arrange a quick tour of the facility when we go. It will most likely be on a weekday around off. will try to arrange a quick tour of the facility when we go. It will most likely be on a weekday around lunchWe time. lunch time.

Food Drive – Canned and Dry Goods – Collection Resuming in August: We will resume collecting canned and dry goods to benefit the White Rock Center of Hope starting with our August meeting and continuing through our November meeting. Please remember those struggling families when you head to the grocery store.

Association of Desk and Derrick Clubs Energy Activity Books: “The Association of Desk and Derrick Clubs is proud to present its “Bit of Fun” Energy Activity Book. PetroMolly and PetroMack were created to explain how hydrocarbons and their byproducts are used to make modern products we use every day. They also perform chemical experiments that further reveal how important petroleum is to our lives.” (from the ADDC website) If you know of a school or school district that you think would benefit from this, or you would be willing to be the Dallas Club contact for getting this program up and running, please contact Tiffany Sellars at: [email protected].

A Monthly Publication of the Desk and Derrick Club of Dallas

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A Monthly Publication of the Desk and Derrick Club of Dallas

September 2014

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A Monthly Publication of the Desk and Derrick Club of Dallas

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A Monthly Publication of the Desk and Derrick Club of Dallas

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Marshall Davis Marshall has many qualities and qualifications that make him the ideal candidate to receive the Desk and Derrick Scholarship from the Georgia C. Midgley Scholarship fund. Marshall graduated from Sam Houston State University with a degree in Geology. Marshall is currently a graduate student attending UT Arlington pursuing a MS in Petroleum Geoscience. He is currently researching the subsurface geology and reservoir potential of tight sandstone formations in the Delaware Basin, in southeast New Mexico. More specifically, he is mapping and characterizing a potentially new petroleum target in the Bone Spring formation. Also, Marshall is an intern for Bass Operating and Production Company, L.P. For Bass, he assists the geologists in depicting the subsurface geology and generating prospects in multiple formations (ranging from Morrowan to Ochoan) in the southeast New Mexico portion of the Deleware Basin. On a personal level, Marshall will be getting married in October and moving to Coppell. He is a member of the AAPG, West Texas Geological Society, Fort Worth Geological Society, Dallas Geological Society, and Dallas Geophysical Society.

Justin Moore Justin is a hard-working and determined student and that makes him a great candidate to receive the Desk and Derrick Scholarship from the Georgia C. Midgley Scholarship fund. Justin started out his college career at Texas A&M University. He moved back to the Dallas area and continued his studies at Richland College. While at Richland, he discovered he enjoyed taking the few geology classes that were offered. He then transferred into the geology program at UT Dallas. He is currently a senior and this summer he is going on his first field study. He holds a cumulative GPA of 3.66 and expects to graduate in May 2015. On a personal level, Justin is a member of the Running Club, Alpha Phi Omega, and the Phi Theta Kappa Honor Society. He is also an Eagle Scout and has received the Vigil Honor. On top of his educational, personal, and financial qualifications, Justin is the grandson of Marie Sommerfelt who is a 26 year member of Desk and Derrick Club of Dallas. A Monthly Publication of the Desk and Derrick Club of Dallas

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The Desk & Derrick Club of Dallas

Invites you to join us in fighting breast cancer by joining our team for the Dallas race on Saturday, October 18, 2014, at North Park Center. You don’t even have to show up – unless you really need that exercise! We’ve opted for the “Sleep in for the Cure”. To participate : go to www.komen-dallas.org. Select the tab at the top “Race for the Cure”. Then select the tab on the right side “join an existing team”. Our team name is Desk & Derrick Club of Dallas. Click on it and then “join the team”. The cost to register online is a minimum of $35. If you elect to have them mail your registration packet, it will automatically add $5 to your total. Go to www.komen-dallas.org to learn more. Team Captain – Sharon Figueroa A Monthly Publication of the Desk and Derrick Club of Dallas

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Denton voters to consider state's first ban on fracking By MARISSA BARNETT Austin Bureau [email protected] Published: 23 September 2014 10:28 PM Updated: 23 September 2014 10:53 PM AUSTIN — Denton residents, concerned about air quality, noise and potential water contamination, may be the first in Texas to ban hydraulic fracturing — but if they do, state lawmakers will probably push back. Residents leading the effort call the proposed ban on the November ballot a last resort after years of negotiating for restrictions they say were ultimately trumped by state law. Those opposed to the measure, including royalty owners and industry groups, contend the ban infringes on mineral rights and goes further than necessary to keep residents safe. And some say the battle got out of hand because the city allowed housing developments so close to existing well permits. State law protects those permits, which has hurt previous attempts to regulate fracking in Denton. “There are conflicts set up about how far a city can go with its home rule, and they’ll be solved at the state level,” said Ed Ireland, executive director at Barnett Shale Energy Education Council. It’s not unusual for cities to outlaw certain activities. In the absence of state action on texting while driving and payday lending, for instance, several Texas cities have passed ordinances banning such practices. But fracking — a huge driver of the state’s recent oil and gas boom — could prove more difficult. Industry representatives have vowed to sue the city if the ban passes, arguing that under current law, mineral owners would have a strong case that their property was illegally taken by the government. And unlike other states that are limiting the practice and winning concessions from the industry, key Texas lawmakers have already expressed a hesitancy to tighten statewide regulation. At least one leader on the issue says the backlash could lead the Legislature to prevent city bans. “Texans are reluctant to move against the oil and gas industry. They don’t want to kill the goose that laid the golden egg,” said Matthew Wilson, a political science professor at Southern Methodist University.

(Continued on page 14)

A Monthly Publication of the Desk and Derrick Club of Dallas

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(Continued from page 13)

A divisive issue Fracking is the process of blasting water and chemicals deep into the earth to break up rock rich in oil and gas. It has freed up vast new energy resources but has brought drilling closer to residential areas. Nearly four years ago, a handful of Denton residents began expressing concerns about the health effects of an industry operating increasingly close to people’s homes. “We went to the neighborhoods and could hardly believe our eyes that these processes were happening right where children lived,” said Rhonda Love, a member of the Denton Drilling Awareness Group and a former professor of public health. The city commissioned a task force in 2011 to consider potential regulations, and in January 2013, the City Council passed an ordinance that more than doubled the previous setback requirement — the space between a well and a home, school or other building — to 1,200 feet. Shortly after, Dallas-based EagleRidge Energy began drilling at two well sites within 200 feet of a Denton subdivision, claiming its rights preceded the new setback. Company representatives declined to comment for this report. State law doesn’t set requirements for how far wells must be built from homes. In many drilling areas around the state, different people may own the surface land and rights to the minerals beneath it. But mineral rights have priority. And existing well permits are grandfathered in state law. “The city gave a driller a permit for a pad, and then the city gave a permit for a developer to build [a subdivision] up to 250 feet from the pad site; both sides were legally operating but that set us up for a conflict,” said Ireland, who served on the city’s task force. Tom Phillips, a former chief justice of the Texas Supreme Court who is now an attorney for the Texas Oil and Gas Association, said that the city’s ordinance, if passed, would violate state law and could lead to lawsuits in which Denton could have to compensate mineral owners for lost income. “If they want Texas law to ban hydraulic fracturing, they should take their cause to the Texas Legislature,” Phillips said in a July City Council meeting. “That is the only governing body in the state with the authority to grant the relief they seek.” Politics a factor? Proponents of the ban collected nearly 2,000 signatures to get the issue on the fall ballot. But it’s unclear how the measure will fare on the November ballot, when Denton County is expected to see heavy Republican turnout for statewide races, such as for governor. The Denton County Republican Party recently urged voters to reject the ban. At the state level, representatives said they are not considering any laws now that would establish a minimum buffer zone between drilling operations and homes. Rep. Jim Keffer, chairman of the House Energy Resources Committee and author of a 2011 bill requiring the disclosure of chemicals used in fracking, said imposing statewide regulations that required a certain distance between homes and wells would not be feasible. (Continued on page 15)

A Monthly Publication of the Desk and Derrick Club of Dallas

September 2014

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(Continued from page 14)

“Dallas, Fort Worth, Denton, Arlington — they all have different setback rules because they all have different topography, different issues with their own cities. You could set a standard and then you would have to waive it all the time, you’d have to amend it,” he said. Rep. Phil King, R-Weatherford, said the most likely action the legislature would take on the issue would be to outlaw cities from passing bans. “If it passes in Denton, I feel very confident that there will be legislation — in fact, I’ll probably file it myself — to prohibit cities from total bans on fracking,” he said. In addition to the economic benefits of fracking, lawmakers have benefited from oil and gas largesse. Research compiled by Texans for Public Justice found that lawmakers received nearly $12.2 million in contributions from oil and gas interests between January 2011 and June 2014. The figure made up about 7.5 percent of total political contributions. “The influence of the industry is pervasive,” said Andrew Wheat of Texans for Public Justice. “To the extent that there is any effort to regulate these activities, it’s coming from the grassroots local government, it’s not coming from Austin.” http://www.dallasnews.com/news/metro/20140923-denton-voters-will-consider-ban-on-fracking-a-first-intexas.ece Submitted by: Tiffany Sellars, Director of Education

George W. Bush Presidential Library and Museum Field Trip What a fun and educational field trip! On September 6th, Desk and Derrick Club of Dallas members and guests, including our very own ADDC VP Connie Harrison and 2013 Region IV Director, Terry Ligon met at 11:00 am at Café 43, which is located inside the George W. Bush Presidential Library and Museum and enjoyed an amazing brunch. Afterwards, we toured the highly educational Presidential Library and Museum. This library is truly remarkable; it walks us through the life and career of President George W. Bush from his own perspective. We also viewed the Oscar de la Renta exhibit which features some amazing pieces including daywear and evening dresses worn by Laura Bush, Hillary Clinton and Nancy Reagan as well as some dresses worn on the redcarpet. Overall it was a great field trip shared with some amazing people. A Monthly Publication of the Desk and Derrick Club of Dallas

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2014 Executive Board President

Sharon Figueroa

Vice President

Donna C. Taylor

Secretary

Cheryl Morris

Treasurer

Lisa David

Director of Education

Tiffany Sellars

Director of Publications

Julie Hendon

Director of Rules

Victoria Ashley

Immediate Past President

Susan Wrobbel

Parliamentarian

Denise Adams

Club Purpose and Motto The purpose of the club shall be to promote the education and professional development of individuals employed in or affiliated with the petroleum, energy and allied industries and to educate the general public about these industries.

Greater Knowledge, Greater Service Desk & Derrick Club of Dallas P.O. Box 603071 Dallas, TX 75360

Barbara Chapman 2014 Diamond Bits Editor [email protected]

2014 Committees & Members AUDIT AWARDS

Carolyn Sczepanski Victoria Ashley, Chairman Julie Hendon & Barbara Chapman Mary Vaughan & Susan Wrobbel BULLETIN Barbara Chapman, Editor BYLAWS Victoria Ashley, Chairman Denise Adams Susan Wrobbel Sharon Figueroa COMMUNICATION/LEADERSHIP TRAINING & LEGISLATIVE INFORMATION Tiffany Sellars COMMUNITY SERVICE Tiffany Sellars, Chairman Madonna Nuckolls CONTACT Kay Marrs EMPLOYMENT Kay Marrs FIELD TRIPS/SEMINARS Tiffany Sellars, Chairman Sharon Figueroa GOLF TOURNAMENT Beverly Murrey, Chairman Julie Hendon, Co-Chairman HOUSE ARRANGEMENTS Julie Hendon INDUSTRY LIAISON Barbara Chapman INSTALLATION Donna C. Taylor JULY FUNCTION Madonna Nuckolls Sharon Figueroa MEMBERSHIP Donna C. Taylor, Chairman Rita Harden, Julie Hendon, Mary Vaughan NOMINATING Barbara Chapman, Chairman Denise Adams Mary Vaughan ORIENTATION Sharon Figueroa Donna C. Taylor PHOTOGRAPHY Mary Vaughan PROGRAMS Donna C. Taylor RESERVATIONS Julie Hendon ROSTER Barbara Chapman SCHOLARSHIP Victoria Ashley, Chairman Julie Hendon, Barbara Chapman Mary Vaughan, Susan Wrobbel TALLY Judy Reeves Molly Delgado Darlyne Martinez WEBSITE Mary Vaughan

A Monthly Publication of the Desk and Derrick Club of Dallas