Oilman Magazine May/June 2014 : simplebooklet.com

4Oilman Magazine — Your Voice In Energy May / June 2014In this issue, we introduced a new segment of the magazine call “Mainstream -vs- Midstream. This part of the magazine will be dedicated to challenging biased and misleading reporting. The subject in this edition is on hydraulic fracturing. I was energized by the ood of feedback we received as we developed this edition of Mainstream -vs- Midstream, which is on page 32. The mainstream media is relentless with its attempts to hinder oil and gas exploration and development. The pages of this magazine will always provide a voice to the industry. After all, who would know more about it than you! As we develop future issues, all OILMAN subscribers will have the opportunity to submit feedback and expert opinions as we set the record straight on reports, articles, websites, movies or even TV specials produced by obscure cable channels that will give your local weather forecast on the 8’s. (again, see page 32 for context..) We have also added several contributors, a special thank-you to David Blackmon, Mike Thomas, Mark Stansberry, Joseph DeWoody and Steve Burnett. We truly appreciate your insights and look forward to reading your columns. I also want to thank our newest advertisers. Sco-Jo Land and Environmental is the nation’s leading environmental compliance and land brokerage rm; Black Jack Energy Services has all kinds of services and crews in Texas (check out page 25 for a list of their services); Nitro Downhole is a complete thru-tubing service company in Texas; and Ed Jones with McKinley Ranch Services can literally nd your dream ranch anywhere in the world. I’m very impressed by these companies and it gives me great pleasure to advocate and promote all you have to offer the industry. Best,Luke McDonaldPublisher, OILMAN MagazineTo subscribe go to OilmanMagazine.com/Subscribe and ll out the quick online form.Letter from the Publisher

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FACEBOOK.COM/OILMANMAGAZINE @OILMANMAGAZINE OILMANMAGAZINE.COM5// In This IssueMAGAZINE MAY — JUNE 2014PUBLISHED BY Oilman Magazine, LLC116 W Main STNorman, OK 73069(800) 562-2340OilmanMagazine.comPUBLISHERLuke McDonaldpublisher@OilmanMagazine.com(800) 562-2340 Ex. 5CONTRIBUTERSDon Briggs— LOGA PresidentDavid BlackmonMike ThomasMark StansberryJoseph DeWoodySteve Burnett - CrudeOilCalendars.comStory Sloane III— (The Sloane Gallery....Houston, Texas (281) 496-2212)Jamie Rood — Photographic Artist(www.JamieRood.com - see page 31)LAYOUT & DESIGNEric PraterSUBSCRIPTIONSOilmanMagazine.com/subscribe(Controlled, free circulation tothe oil and gas industry in Louisiana, Oklahoma and Texas)ADVERTISING(800) 562-2340 Ex. 1advertising@OilmanMagazine.comOilmanMagazine.com/advertise(Rates from $100 per ad)© Copyright 2014 by Oilman Magazine, LLC. All rights reserved. Reproduction without permission is prohibited. All information in this publication is gathered from sources considered to be reliable, but the accuracy of the information cannot be guaranteed. Image credits — The Sloane Gallery, Houston, TX; Jamie Rood, Photographic Artist; 123rf.com.FeatureMAINSTREAM vs MIDSTREAMWith your help, we set the recordstraight on hydraulic fracturing.Page 32Editorial6 OILMAN Archives (Photos from Oil & Gas History)12 Innovative Product Spotlight (Pronto Software & IMBIBER Beads)14 Haynesville Shale Far From Over (By Don Briggs)16 Maintaining High Security and Pipeline Peace of Mind (By Mike Thomas)18 King Coal is Dying; Prince Oil & Gas is Next (David Blackmon)20 LIGHTS, CAMERA, ACTION! (By Mark Stansberry)22 Investing in Mineral Rights (By Joseph DeWoody)30 OILMAN Interview: John Brinkman, President of Imbibitive Technologies 31 Jamie Rood, Photographic Artist: A Day on the Rig - Viking34 OILMAN Marketplace (Business Listings)36 Oil and Gas Jobs 37 OILMAN Cartoon (By Steve Burnett - CrudeOilCalendars.com)News24 Louisiana Sabine Pass natural gas plant, the next ‘Keystone’?  MarathonproposesLa.reneryexpansion Halcon’s Wilson Says Tuscaloosa Shale Among Last Big Shale Finds25 Texas Smitherman: Texas could break oil record by 2020 U.S. CO2 Emissions at Lowest Level in 20 Years Texas crude production hits highest level since 1980 Company will pipe “treated wastewater” for oil and gas production28 National News Oil and gas industry generates thousands of jobs in California Fracking celebrates its 65th birthday Marcellus Shale Takes the Lead in Natural Gas News International Opportunities in Natural Gas29 Oklahoma Oklahoma’s not Alone in Denying Link of Quakes to Fracking Baker Hughes opens the door to “secret sauce” Oklahoma universities offer energy education RETWEETS OILMAN ARCHIVE: Roughneck holding a 1920’s era drill bit- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -@OilmanMagazine

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12Oilman Magazine — Your Voice In Energy May / June 2014Pronto Soware has a global, next generaon ERP soluon that provides a single source of informaon across the enterprise and automates processes that previously had to be performed manually or semi-manually. It makes businesses more ecient and helps prepare for future. Pronto’s agship enterprise system, Pronto Xi, is a fully integrated soluon that can be tailored to suit the unique needs of the oil and gas eld services industry. Pronto Xi oers exible, scalable performance and a strong base from which to achieve an accelerated return on investment. While it’s true that the oil and gas eld services industry is experiencing signicant expansion and challenges, nding ways to manage health, safety and environmental condions; intelligent forecasng and visibility; compliance and regulatory complexity and accounng and nancial issues requires the best available end-to-end ERP soluon. The reward of correctly selecng and using a best-in-class ERP will quickly manifest by avoiding just one day of downme. Pronto Soware’s Pronto Xi is just such a soluon—one which enables oil and gas eld service companies to have greater control, increased growth and protability and reduced costs and risks. Implemenng a new or replacement ERP system usually starts with a need to address mulple dicules: • Inventory is tough to determine • Downme due to improperly maintained equipment• Diculty in determining the protability of each job• Inability to spot trends in a mely fashion• Customer sasfacon is faltering • Invoices oen include incorrect or missing line items• Customers are slow to pay • A disconnect between the eld sta, warehouse and back oce sta• Lack of adherence to safety checklists• Forecasts are based more on guesswork than solid gures Our company, Imbibive Technologies is a specialty sorbent manufacturer. Our agship product is IMBIBER BEADS® which is the only “oil-sensive” super-absorbent polymer (SAP) currently available anywhere in the world. The performance of IMBIBER BEADS® products is superior and fundamentally dierent from all other hydrocarbon-sorbing technologies, in accordance with ASTM Performance Standard denions. IMBIBER BEADS® are “engineered” to absorb/imbibe a broad range of organic liquids including gasoline, engine oil, crude oil, diesel, BTEX type solvents and jet fuels to name a few. IMBIBER BEADS® has been selected as the best technology for spill recovery of the 162 highest volume Hazardous & Noxious Substances (HNS) imported into Japan resulng in a strategic, naonal deployment at 23 major seaports across the country. This was a 7 year study in which IMBIBER BEADS® we found to be the only truly eecve technology at recovering the chemicals from water spills.Performance facts: • IMBIBER BEADS® completely capture & contain the liquid phase of spill removing the risk of secondary contaminaon of personnel or environment. • Captured liquid cannot be re-released by any means once contained including gravity, compression/squeezing or cung product in half. • Each IMBIBER BEADS® is capable of absorbing up to 27x’s it’s own volume making it the industry leader in capture quanty. • IMBIBER BEADS® signicantly reduce concentraons of vapour in the air (up to 600%), to below Lower Explosive Limit (LEL) minimizing risk of re, explosion or inhalaon of toxic fumes. • Completely unaected by water (hydrophobic) such that water can actually be used as the propellant to dispense the product. • Compable with a wide range of hydrocarbons/organic chemicals. Link to YouTube video product demos at imbiberbeads.com.Superior performance.Unprecedented quality.Advanced composite technology.Learn more www.exelisinc.comAerospace grade composite materials, premium elements, patented segmenting-slip design and melt-kit technology, ensures the Bear Claw® millable bridge and frac plugs deliver superior performance every time.Bear Claw®. When performance counts.Exelis is a registered trademark and “The Power of Ingenuity” is a trademark, both of Exelis Inc.Copyright © 2014 Exelis Inc.Exelis_ad_12.indd 1 4/23/14 6:25 PM// Product Spotlight

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Oilman Magazine — Your Voice In Energy May / June 201414Common thought is that the Haynesville Shale natural gas play is over. Pack up your trucks and move to another shale play. False. What the media portrays, might not be the correct facts. Indeed, the Haynesville did see a mass exodus starting in early 2012 due to natural gas prices dropping to an historic low of $1.81. What caused this drop in price? What can help the prices rebound?As a reminder, the Haynesville Shale saw a rig count rise to 139 in 2010-2011. This was a direct result of having an abundant supply of dry natural gas in the ground, $12-$13 natural gas prices, and developing technologies to retrieve these resources. As the exploration and production companies moved into the Haynesville Shale region, the natural gas market became inundated with supply. As the demand was much lower at the time to utilize the supply, the market experienced a great drop in price with the rig count following suit.However, the Haynesville Shale play is far from over. Reports say that roughly 30% of the resources have been recovered from this particular play. While over 2,500 wells have been drilled with over 2,200 of those producing dry natural gas, the price must continue to tick upward in order to see rigs return to the Northwest Louisiana area. Since 2012, the market has now moved in a positive direction, as natural gas prices are now well over $4.00 and the Haynesville rig count is hovering in the 20’s.Three functions of the market will bring natural gas prices back up to a stable place. First, the current manufacturing renaissance in Louisiana will be a needle mover for the natural gas industry. The petro-chemical industry operates on natural gas as a baker does with our. Over the next ve years, the manufacturing industry will be demanding nearly four times the amount of natural gas a day that the largest producer in the Haynesville Shale was extracting a day in 2011.The second market driver of natural gas usage is power generation. In July of 2012, for the rst time in United States history, natural gas surpassed coal as the chief power generator. Over the next several years, many older coal and nuclear plants are being taken off line and replaced by natural gas. The third contributor to natural gas demand is the exporting of liqueed natural gas (LNG) around the globe by companies such as Cheniere Energy from their facility in Cameron Parish. Cheniere will have the capability to ship LNG by tanker to the Asian and European markets where natural gas trades at nearly four times the price of the United States market. It was just six short years ago that the United States had a shortage of natural gas. Nearly 50 import facilities were being constructed to bring in natural gas to the United States, whereas today, over a dozen facilities are in the federal approval process to construct additional LNG export locations.While weather might drive up the price of natural gas, this is merely a temporary climb. Sustainable natural gas prices higher than $5 will bring back that encouraging site of rigs towering across our rural and urban horizons in Northwest Louisiana.Haynesville Shale Far From Over By Don Briggs — President Louisiana Oil and Gas AssociationDON BRIGGS - LOGA PRESIDENT- - - - - - - - - - - - - - - - - - - - - - - - - -Don Briggs is the President of the Louisiana Oil and Gas Association. The Louisiana Oil & Gas Association (known before 2006 as LIOGA) was organized in 1992 to represent the Independent and service sectors of the oil and gas industry in Louisiana; this representation includesexploration,productionandoileldservices. Our primary goal is to provide our industry with a working environment that will enhance the industry. LOGA services its membership by creating incentives for Louisiana’s oil & gas industry, warding off tax increases, changing existing burdensome regulations, and educating the public and government of the importance of the oil and gas industry in the state of Louisiana. The Haynesville Shale play is far from over. Reports say that roughly 30% of the resources have been recovered from this particular play. While over 2,500 wells have been drilled with over 2,200 of those producing dry natural gas...

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Oilman Magazine — Your Voice In Energy May / June 201416Pipeline security requires a combination of assorted technology systems to maintain control during pipeline initiation, installation, and operation. Sociotechnical systems inuences organizational results through rst developing tacit knowledge on underlying factors assorted sociotechnical relationships offer an organization (Haavik, 2011). Technology systems (TS) divided by four sociotechnical organizational factors will lead management to control waggish colloquies and ll inspection gaps. The four factors are management, procedural, technical, and cultural. Each factor will coordinate management and work approaches synonymously to detect organizational reliability. A successfully controlled technostructure allows the pipeline organization an opportunity to focus on each organizational factor in organizational cooperation across a changing pipeline process (Haavik, 2011). Integrated operations or IO elaborates modern characteristics of management styles while addressing iterative organizational components. IO’s and TS’s intertwined begin to advance organizational models of innovation to increase operating functions throughout the pipeline spread. The steps to support and encourage sociotechnical approaches through a combination of a few methods are outlined next. One method is accident models to treat the pipeline contractor as one entity and not divide into parts. Management has the option to have a distributed pattern of interaction (Walker, Stanton, Salmon, & Jenkins, 2008). The pattern of interaction Walker et al. (2008) reviewed sociotechnical systems as a classic concept to explain various management styles and diffuse innovation through patterns of interaction. The classic pattern of interaction consists of allocation of decision rights and distribution of information to each section of the pipeline. The allocation of decision rights is innocuous to the organizations management style although contains peer to peer hierarchies and tight control of information. Innovation takes total control of organizational information and the allocation of management decisions to create a ducially pattern of sociotechnical support.Technology systems are the best choice to replace old pipeline habits and protect life and preserve property. Specializing in TS’s is the ideal option for pipeline organizations to monitor tanks, piping, compressor stations, pressure vessels, and natural gas facilities. A pure justice approach of the facts about how oil and natural gas pipelines are monitored is needed to prevent a pipeline contextual discrimination toward the pipeline infrastructure. Solving inspection challenges will provide pipeline integrity solutions through implementing the right TS. References1. Haavik, T. (2011). On Components and Relations in Sociotechnical Systems. Journal of Contingencies and Crisis Management, 19(2), 99-109. Doi: 10.1111/j.1468-5973.2011.00638. x.2. Walker, G., Stanton, N., Salmon, P., and Jenkins, D. (2008). A Review of Sociotechnical Systems Theory: A Classic Concept for new command and control paradigms. Theoretical Issues in Ergonomics Science, 9(6), 479-499. doi: 10.1080/1463920701635470.Maintaining High Security and Pipeline Peace of MindBy Mike Thomas MIKE THOMAS- - - - - - - - - - - - - - - - - - - - - - - - - -Mike Thomas is a Doctor of Management candidate at The University of Phoenix in Organizational Leadership with over 16 years of pipelining experience. He is currently a pipeline inspector in the northeast region of Oklahoma. His expertise encompasses pipeline safety, integrity, and inspection for assorted pipeline clients. One method is accident models to treat the pipeline contractor as one entity and not divide into parts. Management has the option to have a distributed pattern of interaction...

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Oilman Magazine — Your Voice In Energy May / June 201418Several years ago, during a period of time when some in the oil and natural gas industry were engaging various environmentalist organizations in discussions on how to promote and better regulate natural gas as a fuel for power generation, a very wise man took me aside and said, “Don’t kid yourself. These groups are focused on killing coal right now, but once they’re done with them, they’re coming after us.”Now that the environmentalist lobby, working in concert with the Environmental Protection Agency – which is largely populated by folks who came out of these same environmental organizations – has almost succeeded in killing the nation’s coal industry for all intents and purposes, it is obvious that truer words were never spoken. Anyone paying attention to what is happening today in the U.S. energy space can clearly see that the focus of the radical environmental movement is indeed turning very quickly to efforts to do the same with oil and gas. The nal two-plus years of the Obama Administration will be a very precarious time for this industry, as the EPA ramps up its efforts to overlay as many cumbersome new regulations as it possibly can before 2017. That’s what the Administration’s stepped-up effort to regulate methane emissions at various steps throughout the natural gas supply chain is all about, it’s what the EPA’s proposed “Waters WAT +1.21% of the United States” regulatory regime is all about, and it’s what efforts by the EPA and the Bureau of Land Management (BLM) related to regulation of hydraulic fracturing and well completions are all about. It’s what ballot initiatives to ban hydraulic fracturing in Colorado, Texas, California and Ohio are all about. It’s what fake documentaries like Gasland and Gasland Too are all about Add into all of that the fact that the U.S. Fish & Wildlife Service must make listing decisions on hundreds of additional plants and animals nominated for listing under the Endangered Species Act over the next next two years in response to the “Sue and Settle” racket engaged in by radical groups like the Center for Biological Diversity, and you clearly have a multiple-front assault on one of the nation’s few remaining great industries. The irony of this nal two-year push by the Administration against oil and natural gas is that this is the industry that has literally carried the Obama economy on its gargantuan back and kept it aoat throughout the entirety of the President’s time in ofce. Were it not for the Shale Revolution’s creation of millions of jobs and hundreds of billions of dollars in annual economic impact, the nation’s economy would almost have certainly been mired in an unending deep recession for the last six years.Whatever golden eggs this Administration can brag about have been laid by the oil and gas industry’s proverbial goose. And it has all taken place on private and state lands, since the Administration has done its best to strangle new oil and gas development on federal lands. Even more ironic is the fact that the use of more natural gas in the power generation sector has enabled the Administration to brag about the fact that U.S. carbon emissions have fallen to their lowest levels in more than 20 years under the President’s watch, a fact the environmentalist lobby tends to forget whenever the truth is inconvenient for them The efforts by the radical environmental community and the Administration continue to be predictably supported by the usual suspects King Coal is Dying; Prince Oil & Gas is Next By David BlackmonThe nal two-plus years of the Obama Administration will be a very precarious time for this industry, as the EPA ramps up its efforts to overlay as many cumbersome new regulations as it possibly can before 2017.

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19FACEBOOK.COM/OILMANMAGAZINE @OILMANMAGAZINE OILMANMAGAZINE.COMin academia and a compliant news media. Most recently we’ve seen yet another report assaulting natural gas from Anthony Ingraffea and Robert Howarth at Cornell University, at least the third such highly-suspect report these fellows have produced over the last few years. Like their previous reports, this one is easily debunked, funded by the same groups and foundations that fund the anti-fracking movement, and was completely dismantled here by Katie Brown at EnergyInDepth.But these fellows are quite clever: while they even admit some of the shortcomings of their “research” in the bowels of their own report, they know they can rely on sympathetic reporters and editors at many of the nation’s media outlets to publish uncritical stories on the report which contain only the things they want to highlight along with sensational headlines. They also know that the headlines are all most people ever read, and that even reports that contain balancing information will go largely unnoticed. The whole point is to create a sense of alarm among the populace, and to demonize natural gas as an energy source, a threat to the air, the water, and the public health. Exactly the strategy that has crippled the nation’s coal industry.It’s a very effective strategy, and one the oil and natural gas industry ignores at its own peril. A couple of years back, the industry put out a study that showed that oil and natural gas supports 9.2 million jobs in this country, a number that has only grown signicantly since then. Everyone reading this needs to understand that the radical environmentalist lobby and regulatory community will not be satised until each and every one one of those 9.2 million workers are unemployed.That’s the goal – the”King” is almost dead, and they’re coming for you next. Don’t kid yourself otherwise.David Blackmon is a managing director of the FTI Strategic Communications practice and is based in Houston. Throughout his 34 year career in the oil and gas industry, David has led industry-wide efforts to develop and implement strategies to address key issues at the local, state and federal level. David has more than 15 years experience working legislative and regulatory issues in Washington, DC, Texas and other states. He is a recognized subject matter expert on a variety of oil and natural gas issues, and regularly offers testimony at legislative hearings. David is currently a contributing columnist for Forbes.com, focusing on public policy issues affecting the oil and gas industry. He also writes regular commentary for World Oil Magazine.It’s a very effective strategy, and one the oil and natural gas industry ignores at its own peril. A couple of years back, the industry put out a study that showed that oil and natural gas supports 9.2 million jobs in this country, a number that has only grown signicantly since then.

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Oilman Magazine — Your Voice In Energy May / June 201420In 2001, I teamed up with Academy Award winning producer Gray Frederickson (Godfather II) to begin a lm production company. Since that time, I have heard from several in the movie industry who believe that the oil and gas industry should not be respected. Several in Hollywood believe that the oil and gas industry is only for the greedy and that it is not interested in the welfare of others and of the environment. Having been in the oil and gas industry for thirty-seven years, I have advocated that the message be clear. I continue to point out that the movie industry is a major user of energy and therefore, needs the oil and gas industry. Energy is needed from the beginning to the end of production as well as into the marketing and distribution of the lms. The movie industry needs transportation and the use of power generation. A lm project often needs: transportation to and from the sets, the use of autos, trucks and other vehicles including planes and helicopters, fuel for traveling and living for the crew, transportation of animals, air transportation, taxis/limos, phones, rail transportation, caterers, and products made from petroleum including wardrobes, lm, air conditioners, carpet, combs and brushes, cameras, and many other items that I show on pages 157 to 159 of my book “America Needs America’s Energy”. Electricity is needed for lighting, equipment, music, trailers for the actors and others, optical effects, sound, set construction, special effects, generators, computers, photography, set operations, sound stage, ac/heat, washing/drying of clothes, dishwashing, and other. There is even a Gaffer assigned to the specic movie project, (a gaffer heads up the electric department) and electricians are needed. The sound for the movie needs a mixer, boom operator and microphones, to mention a few of the items needed. Millions upon millions of dollars are expended for energy to make and distribute the lms for our enjoyment. Hollywood has been successful, in great part, due to the energy industry.We, as consumers, can view the lms on DVDs, at the theatre, at our home with the use of energy. The movie industry wants for everyone to strive for energy efciency and environmental preservation. The oil and gas industry wants the same. I tell those outside of the oil and gas industry: “think about the use of energy and the importance of the oil and gas industry next time you watch a movie. Know that there are those in the oil and gas industry who are working 24/7 in all kinds of weather supporting the movie industry and providing us all a wonderful lifestyle”. There would be no strong movie industry without a very strong oil and gas industry. There would be no strong movie industry without a strong consumer base. It is time we come together: The US has the immediate challenge of striving for energy independence. It is extremely important that the US be in a strong position of securing energy reserves within its own boundaries. Therefore, we need a plan. The US needs energy security. America Needs America’s Energy! Together we can create the People’s Energy Plan! Go to www.peoplesenergyplan.com to join the effort. Facebook: America Needs America’s Energy with over 10,000 supporters plus and growing. -- America Needs America’s Energy: Creating Together the People’s Energy Plan!LIGHTS, CAMERA, ACTION! By Mark StansberryMARK STANSBERRY- - - - - - - - - - - - - - - - - - - - - - - - - -Mark Stansberry is the Chairman of The GTD Group and award winning author, columnist and radio talk show host. He is the author of the book, “America Needs America’s Energy:Creating Together the People’s Energy Plan”www.peoplesenergyplan.comwww.thegtdgroup.comA lm project often needs: transportation to and from the sets, the use of autos, trucks and other vehicles including planes and helicopters, fuel for traveling and living for the crew, transportation of animals, air transportation, taxis/limos, phones...

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Oilman Magazine — Your Voice In Energy May / June 201422The old adage across the plains of West Texas is to “Never Sell Your Mineral Rights!” And for good reason, the ownership of mineral rights provides families with a generational wealth preservation tool that surpasses many investment opportunities in the current marketplace. Mineral ownership is a perpetual ownership of the real estate under the surface of the earth. Often severed from the surface, mineral rights are held like any other real estate investment. The major benet of mineral rights is there ability to produce royalties through oil and gas lease bonuses and production.A royalty is cost-free share of the production revenue from an oil and gas well or lease. Where the owner of the mineral rights receives a share of the production revenue without having to pay any of the exploration or operating costs of the project.Investing in mineral rights and royalties can provide wealthy families, trusts and family ofces valuable exposure to the oil and gas industry without the risks associated with exploration and production. The income from oil and gas royalties currently also enjoys a depletion allowance under the tax code. The combination of the tax structure and the “mailbox money” aspect of royalties makes them an attractive investment for many individuals.There are multiple approaches to investing in royalties, certain exchange traded funds (ETFs) and master limited partnership (MLPs) provide investors with some exposure to the royalty market. Another route, is direct investment in mineral rights and royalties through a private limited partnership. These can provide individuals direct “access” to the ownership of the royalties and the most potential to harness the upside and generational wealth protection and preservation provided by them. Among the many benets, royalty ownership can also provide a hedge against ination. With governments around the world printing money to feed their appetites of cheap cash, there are many that believe the inevitable result will be higher ination. Royalties, and oil and gas generally, have traditionally been a good hedge against ination.In fact, many consequences of governmental and federal bank decisions including higher taxes, monetary easing, and raising the interest rate, all provide avenues to increase the value of oil and gas and in turn, the cash ow to royalty owners.The United States is in the middle of an energy revolution. The vast amounts, of once un-producible, oil and gas are being discovered and produced at a rate and amount not seen in many decades. Thanks to technological advancements in horizontal drilling and hydraulic fracturing, American oil and gas producers are able to nd and develop oil and gas in parts of the United States that have had very little oil and natural gas production prior. There has been a vast amount of wealth created, and there will be much more created by the ownership of royalties in the areas that are a part of the shale drilling “bonanza”. There are 1.44 billion acres of privately owned mineral rights in the United States. According to Blackbeard Data Services, in Texas alone, the proved producing reserve value of royalties is approximately $35 billion. Nation-wide Blackbeard estimates the yearly transactional value of oil and gas royalties to total $500 million. These amounts are growing daily and present a valuable investment opportunity to individuals seeking asset diversication and wealth creation and preservation.Investing in Mineral Rights By Joseph P. DeWoodyJESEPH P. DeWOODY- - - - - - - - - - - - - - - - - - - - - - - - - -Joseph P. DeWoody (@jpdewoody) is the president of Clear Fork Royalty, an oil and gas royalty investment company located in Fort Worth, Texas. Clear Fork Royalty works with accredited investors, trusts and family ofcestoprovideportfolioaccesstooilandgas mineral rights and royalties to hold for long term investment through various direct investment vehicles. Joseph was selected by Oil and Gas Investor Magazine as a winner of the Top 20 under 40 Award, and by TIPRO and Texas Monthly Magazine as a Texas Top Producer. Joseph is a member of the Young Presidents’ Organization (YPO). He was appointed by Texas Governor Rick Perry to a six year term on the Texas Board of Professional Geoscientists. He serves on the Board of Directors for the National Stripper Well Association and the Texas Alliance of Energy Producers.Among the many benets, royalty ownership can also provide a hedge against ination. With governments around the world printing money to feed their appetites of cheap cash, there are many that believe the inevitable result will be higher ination.

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Oilman Magazine — Your Voice In Energy May / June 201424CNN Money - The Advocate - BloombergLouisiana News at a glance...Sabine Pass natural gas plant, the next ‘Keystone’ At the mouth of the Gulf of Mexico along the Texas-Louisiana border, Cheniere Energy could be just weeks away from breaking ground on the rst natural gas exporting facility ever built in the lower 48 states.It’s also where a new ght with echoes of the Keystone pipeline is building, pitting economic development against environmental protection.To Cheniere (LNG) and its supporters, the 500-plus acre, $10 billion plant represents a boon for the American economy. Known as Sabine Pass, they say the facility will support tens of thousands of jobs, raise billions in export revenue, and help put the nation on track to be an energy-exporting powerhouse. But to critics it will greatly expand the use of hydraulic fracturing. They also say that far from creating jobs, the plant may actually cost jobs and raise the price of natural gas in America. Opponents of the project want the government to take fracking into account when considering issuing permits -- both for the Sabine Pass facility and seven others like it that have applications in with federal authorities. If all eight plants were authorized, the nation could wind up exporting one-fth its current natural gas output. As the country ramps up its energy production ghts like these are bound to become more common. Thanks in part to new drilling technology and the expanded use of fracking, the United States produces 30% more natural gas and nearly that much more oil than it did in 2005. It’s also the main reason why companies like Cheniere want to export it. In Asia and Europe natural gas commands up to ve times the U.S. price. The gas can be liqueed, loaded onto a tanker here and sent anywhere around the world. Besides Cheniere, which is just the processing rm, any of the Big Oil companies like Exxon Mobil, BP, and Royal Dutch Shell that produce gas in the Untied States, plus a host of smaller companies like Chesapeake or Devon, would in all likelihood make a killing. Cheniere believes its facility at Sabine Pass, which would be built alongside an existing, little used natural gas import facility, would support 30,000 to 50,000 jobs a year. While a relatively small amount of people would work at the actual plant, Cheniere’s number also includes all the drillers, restaurant workers, hotel employees and equipment makers that would supply the gas industry. Plus, the value of the gas exported each year would total nearly $7 billion -- a small dent in the country’s trade decit, but a dent nonetheless. The Energy Department has already granted Sabine Pass a permit, although it has promised to consider other impacts on the economy and environment before approving any of the remaining seven proposals. The Federal Energy Regulatory Commission is expected to vote on the matter later this month, and approval seems likely.Frustrated, the environmental groups have taken their case all the way to the President, ling letters with the Environmental Protection Agency and the White House Council on Environmental Quality asking them to intervene. EPA said it is reviewing the request. The White House didn’t respond to a request for comment. For now, it appears Cheniere will get its way. “We don’t believe [the] opposition is loud enough yet to change the current course,” Whitney Stanco, an energy analyst at the Washington Research Group, wrote in a recent note. But she did note that environmentalists were successful in a last-minute drive to block the Keystone pipeline. “We’ll be watching the level of opposition closely,” she said.Marathon proposes La. renery expansion Marathon Petroleum Corp. said it is taking the next step toward a potential $2.2 billion to $2.5 billion upgrade to the company’s Garyville renery and expects to make a nal decision on the project by early 2015. The St. John the Baptist Parish project would create 65 new direct jobs, with an average annual salary of $115,000 per year, plus benets.The company plans to le permit applications for the potential project with Louisiana’s Department of Environmental Quality at the end of April, having completed feasibility studies on the project. “If the company decides to move forward, it is anticipated that the construction would begin mid-2015 and be completed in 2018,” said Rich Bedell, the company’s senior vice president for rening “In addition to the potential renery jobs, we would estimate that approximately 3,000 construction jobs will be created during the construction phase.” Marathon Petroleum operates a 522,000-barrel-per-day renery at the site, the largest in Louisiana and third-largest in the U.S. The renery employs 800 Marathon Petroleum employees and 650 contract workers. The proposed project would enable the company to convert a byproduct of the rening process into about 1.2 million gallons per day of ultra low-sulfur diesel at Garyville. The project would also include hydrotreating, hydrocracking and desulfurization equipment installations, along with buildings, tanks, cooling towers, and rail and electrical facilities. “Never before in our state’s history have we seen such extraordinary gains in petroleum rening technology complemented by favorable oil and gas economics and the most rapidly improving business climate in America,” Gov. Bobby Jindal said in a statement. The Louisiana economic development department estimates the project would result in an additional 304 indirect jobs. Among those would be 35 new contractor employees at the renery. Should Marathon Petroleum undertake the project, LED would offer the company a performance-based Modernization Tax Credit of $3 million, along with the job training services. Halcon’s Wilson Says Tuscaloosa Shale Among Last Big Shale Finds. Floyd Wilson, the wildcatter who helped discover the fastest-growing U.S. oil eld, says a prospect called the Tuscaloosa Marine Shale is among the last great elds that may emerge in the U.S. energy renaissance.The chairman and chief executive ofcer of Houston-based Halcon Resources Corp. said that his company in the last six months has acquired 250,000 acres in the eld that spans from Texas to Mississippi. The company expects wells there to produce between 500,000 to 1 million barrels of oil each. Wilson’s previous company, Petrohawk Energy Corp., helped discover and develop Texas’s Eagle Ford formation, where oil output rose to 1.2 million barrels a day last year from about 50,000 in 2007. The Tuscaloosa prospect is “maybe one of the last remaining large footprint oil shale plays in the U.S.,” Wilson said. “It’s an important oil resource play. The puzzle is how to get it out economically.” The company began drilling its rst well less than two weeks ago in the eld, where there may be as many as 2 million acres of drilling opportunities, Wilson said. The decision about whether to seek a partner in a potential joint venture will depend on how much risk the company sees in developing the eld, he said.Recent well results have made the Tuscaloosa’s prospects look better, he said. The lower the risk, the less likely Halcon will take on a partner, Wilson said.

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25FACEBOOK.COM/OILMANMAGAZINE @OILMANMAGAZINE OILMANMAGAZINE.COMSmitherman: Texas could break oil record by 2020. Texas Railroad Commission Chairman Barry Smitherman said Friday the shale revolution could drive the state’s oil production to record levels before the end of the decade. Oil production in Texas is now close to 2 million barrels a day. And Smitherman, speaking at the IHS CERAweek energy conference in Houston, said the state could be at 3 million barrels by 2017 and 4 million barrels by 2020. In 1972 Texas produced 3.5 million barrels a day, according to Railroad Commission data. “It could easily go to 5 million by 2023,” Smitherman said. “I don’t know where the end is because it’s a technological revolution.” Hydraulic fracturing and horizontal drilling technologies have allowed oil companies to open up huge deposits in the Eagle Ford formation south of San Antonio. Last year that eld accounted for close to 700,000 barrels of Texas’ daily production. And with the Wolfcamp, Spraberry and Cline elds in West Texas still developing, many within the industry think the Permian Basin formation there could soon surpass the Eagle Ford. But hanging over the oil boom’s future are analysts’ predictions that oil prices will be down close to $80 a barrel by the end of 2015. U.S. crude was trading for more than $102 a barrel mid-day Friday. And U.S. shale oil will only become more difcult to extract as drilling progresses, said Raoul LeBlanc, managing director for IHS. “The future’s not guaranteed. If you actually focus on the asset itself it’s important to realize what we as an industry have done. We’ve moved down from the cheap and easy resources,” he said. “Right now, we’re tending to focus on the best areas. These plays are not innite. They’re not magic.” As a railroad commissioner, Smitherman is tasked with both regulating and promoting the state’s oil and gas industry. And his point Friday was the Permian presents a special opportunity because of the long drilling history there, which brings abundant geological data and infrastructure. The scarcity of water in West Texas has many concerned that increased drilling would further strain aquifers. But Smitherman downplayed those concerns, saying the increased use of water recycling and brackish water for fracking was making a difference.Rather he pointed to Washington D.C., where pressure is growing on the Obama administration to begin regulating methane emissions from natural gas drilling. “I can’t manage what happens in Washington. And that’s what keeps me up at night,” Smitherman said.Texas news at a glance...CNN Money - The Advocate - BloombergDallas Morning News

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Oilman Magazine — Your Voice In Energy May / June 201426Wildcatters Rush Spindletop in Return to East Texas Oil. From the storied King Ranch near the Mexican border to the 1901 Spindletop well in East Texas-- the most famous gusher of all time--oil companies are returning to their old stomping grounds in search of the next big nd. All over East Texas, producers such as Anadarko Petroleum Corp. (APC) and EOG Resources Inc. are ocking back to areas that helped fuel America’s rise as a superpower after World War II. They’re applying new techniques to layers of rock stacked like playing cards underground that oil companies have drilled for decades. And, as elds from Louisiana to North Dakota are starting to show signs of fatigue, drillers are targeting areas that have long been overlooked or barely tapped. “I never thought I’d go back to East Texas,” said Mark Plummer, a third-generation oil man who grew up hearing stories about his grandfather’s days in the oil patch “living the roughneck dream.” Those elds were thought to be long-played out by the time Plummer arrived in 2000 with his own company, Chestnut Exploration & Production. The basin was “dead as a doornail,” he said. Now he’s betting his East Texas play will be his “Jed Clampett moment,” referring to the television character who struck it rich in the 1960s TV sitcom, The Beverly Hillbillies. East Texas’ oil and gas prospects are springing to life again. Plummer’s closely held production company just drilled a successful natural gas well in Rusk, Texas, and is preparing to drill horizontally for oil near the same formation that helped build H.L. Hunt’s energy empire in the 1930s. He plans to drill another three dozen wells over the more than 10,000 acres he’s leased 150 miles north of Houston. “Now, it’s a hot area,” he said. “East Texas is a great place to play.”Horizontal drilling and hydraulic fracturing, which cracks rocks to release oil and gas, are allowing the industry a fresh start in old hot spots, said Jordan Marye, a managing director for oil and gas at Denham Capital Management LP, which has invested in East Texas. “What we’ve been able to do is essentially have another full pass at these same resources.” Oil companies are racing to establish new elds capable of sustaining a drilling campaign that has upended world markets and pushed the U.S. past Saudi Arabia and Russia last year as the world’s top producer of oil and natural gas. Fueling the renewed search is a concern that shale wells are petering out too quickly, raising the stakes for a new nd to replace rapidly declining production in some areas. North Dakota, one of two states at the heart of the U.S. oil renaissance, saw the sharpest output decline in the state’s history in December. Link to this entire article and more at OilmanMagazine.com.CNS News - Fuel Fix - Bloomberg - Odessa American (right)Driller Jack Clark (white shirt) and Crew east Texas 1930’sU.S. CO2 Emissions at Lowest Level in 20 Years, Thanks to Fracking. Something to celebrate this Earth Day: carbon dioxide emissions in the United States are at their lowest level in twenty years, and the Intergovernmental Panel on Climate Change (IPCC) credits shale development and fracking technologies with this positive development. “[The] rapid deployment of hydraulic fracturing and horizontal drilling technologies, which has increased and diversied the gas supply... is an important reason for a reduction of GHG emissions in the United States,” the IPCC said in a report. “The decline in energy-related CO2 emissions in the United States in recent years has been one of the bright spots in the global picture,” the International Energy Agency says in a report. “One of the key reasons has been the increased availability of natural gas, linked to the shale gas revolution.” “We’ve been improving our emissions in this country without agreeing to the Kyoto accords, without Congressional action because of innovation from the natural gas areas,” says Senator Tim Kaine (D-Va.) “And that moves us down the carbon density scale. Not as fast as some would like, but it’s moving us down the carbon density scale.” “We’ve been growing much more rapidly than Europe, and yet our greenhouse gases are falling... and the reason is because of shale gas, which is natural gas recovered via what’s called fracking,” said Harvard Professor Jeffry Frankel.EPA Administrator Gina McCarthy has called natural gas a “game changer” and has said, “Responsible development of natural gas is an important part of our work to curb climate change and support a robust clean energy market at home.” Add to that the news (reported by AP) that unions are backing fracking because it’s good for employment: “The shale became a lifesaver and a lifeline for a lot of working families,” said Dennis Martire, the mid-Atlantic regional manager for the Laborers’ International Union. Looks like there’s lots of good news - for Americans and for the earth - today.Texas crude production hits highest level since 1980. An index that measures oil and gas activity in Texas has reached a record level, bolstered by rising production and wellhead prices, its creators announced this week. The Texas Petro Index hit the record in February, buoyed by daily crude production levels that soared to the state’s highest level since 1980, said Karr Ingham, the economist who created the index. February crude production in Texas reached an estimated 77.2 million barrels — up 22.4 percent from the same time period in 2013. Ingham said higher wellhead prices caused an even more dramatic increase in the value of oil and gas produced in February, which rose by more than $2.85 billion from the previous year to $10.63 billion.Texas news at a glance...Trending on OILMANMAGAZINE.com

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27FACEBOOK.COM/OILMANMAGAZINE @OILMANMAGAZINE OILMANMAGAZINE.COMCompany will pipe “treated wastewater” for oil and gas production. RDX Technologies Corporation ofcials plan to pipe treated wastewater from a facility in Odessa to oil leases, pursuing a water delivery method for oil and gas operations that the company’s CEO Dennis Danzik described as a rst-of-its kind approach. Danzik, in a Monday conference call, would not say where the water treatment and energy technology company’s Odessa properties are, because he said ofcials choose not to until they are up and running. And a review of state and local public records revealed little. But Danzik said about a mile of pipeline from where the company has an operating contract with the Gulf Coast Waste Disposal Authority, the privately owned water treatment facility at 2760 S. Grandview Ave. RDX Technologies has about a total 16 miles of right-of-way secured for pipeline. If that pipeline were utilized, Danzik said it could pump about 81,000 gallons of water per hour. Danzik also announced a multi-year contract with one company: COG Operating LLC, a subsidiary of Concho Resources in Midland. The companies entered the contract on March 1 for more than 45,000 barrels per day of treated water, Danzik said. It lasts for 13 years, divided into three terms. Gordon Pederson, the Gulf Coast Waste Disposal Authority Manager of Facility Services, said Monday he did not know of RDX Technologies but pointed to an October agreement with Kerr Energy to send up to 2 million gallons of treated afuent water a day to the company for oil and gas production. Kerr Energy, of Midland, is tied to RDX Technologies, according to previous announcements from the company. Kerr Energy entered an agreement in April 2013 that the company would be managed by Ridgeline Energy Services, which later became RDX Technologies. Transporting wastewater often means using trucks, contributing to the increase in trafc on strained West Texas roads and creating a cost for oil and gas companies that Danzik said RDX Technologies is competing against, although the company’s operations use trucks to a lesser extent. In the rst three-year term of the contract with COG, RDX Technologies reported an expected $14.6 million guarantee but up to $24 million in income from the project. Danzik said RDX Technologies in negotiations with other companies and expects to contract out the rest of its available water by June 15. “I believe that our pipeline network will extend and it will also multiply,” Danzik said. RDX Technologies, when it was still Ridgeline Energy Services, announced the installation of a waste water treatment facility in May of last year in south Odessa, which had an initial capacity of 5,000 barrels per day. The installation was near a permanent tank battery to allow for reuse of treated water. Danzik said the company would announce the locations of its Odessa operations “in due time.” RDX Technology ofcials want to develop pipelines to take produced and ow back water off leases, Danzik said. “We believe we can show the State of Texas how a lot of this water can be recycled,” Danzik said. “And we are working very, very hard on that process right now.” As it stands now, most waste water in the Permian Basin winds up in a disposal wells because the economics favors them, according to industry experts. But more and more companies are also experimenting with water recycling. “We are just seeing the start of that,” Danzik said. “And again, I don’t want to overplay this. There are a lot of people in the industry who say water is the new gold. Well, it’s not. It’s just water, and it has a value. That value is increasing.”Texas news at a glance...

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Oilman Magazine — Your Voice In Energy May / June 201428National news at a glance...Oil and gas industry generates thousands of jobs in CaliforniaThe oil and gas industry creates about 49,000 jobs in Los Angeles County and billions of tax revenue in California. That’s according to a new report conducted by the Los Angeles County Economic Development Corp. and commissioned by the trade group Western States Petroleum Assn., which takes a look at the role of oil and gas on the Golden State economy in 2012. In the county of Los Angeles, more than 17,000 people are employed in oil and gas extraction, while an additional 12,000 work at gas stations, the report said. The industry generates about $5.7 million in labor income. On a statewide level, California enjoyed $21.6 billion in state and local tax revenues from gas and black gold. These energy sectors also created a combined 468,000 direct and indirect jobs. The study comes at a time of intense debate in California over potential regulations for the controversial drilling technique called hydraulic fracturing, or more commonly known as fracking. Advances in drilling technology has helped unlock large amounts of previously inaccessible oil and gas from shale formations in places like North Dakota and Texas. Petroleum companies are hoping to hit a similar pile of black gold in California’s Monterey Shale. Fracking celebrates its 65th birthdayThe oil and natural gas well completion process that helped spark the country’s ongoing energy boom — and has drawn challenges and protests in parts of the country — this week celebrated its 65th birthday. While hydraulic fracturing, or fracking, has gained considerable attention over the past decade, the process itself is far from new. The technique was born March 17, 1949, when Halliburton rst used large amounts of water to shatter the rock in two test wells deep below Duncan and Archer County, Texas. More than half a century later, George Mitchell and his Texas-based Mitchell Energy discovered just the right mix of fracking uids and the right number and type of sections were needed to economically produce the natural gas-rich Barnett Shale near Fort Worth. Oklahoma City-based Devon Energy Corp. purchased Mitchell in 2002. Devon expanded on Mitchell’s research and combined the practice with horizontal drilling to spark the Shale Boom that rapidly allowed producers to recover oil and natural gas from dense rocks throughout the country. Among the most successful areas in recent years have been the Permian and Eagle Ford basins in Texas, the Bakken in North Dakota and the Marcellus in the Pennsylvania area. In Oklahoma, companies have used fracking and horizontal drilling most heavily in the Cana Woodford in the west, the Mississippian in the north and now the South Central Oklahoma Oil Province. The oil and natural gas industry expansion also has drawn its share of criticism and concern. A few wells and well casings have failed, allowing natural gas and oil the opportunity to escape and threaten drinking water.Marcellus Shale Takes the Lead in Natural Gas NewsInvestors looking for opportunities in the energy sector are watching a giant in the natural gas production industry, specically the Marcellus Shale. This 104,000 square mile expanse that reaches through New York, Pennsylvania, Ohio, and West Virginia is making headlines in natural gas news by taking the lead in production in the U.S. and Canada. According to analysts at Moody’s, surges in production by companies who are members or afliates of the Marcellus Shale Coalition are expected to continue for the foreseeable future. The report further states that these companies stand to prosper even if prices were to drop to levels seen in 2012. This is good news for investors, economists, and industries that rely on economical, plentiful energy sources.By making use of a relatively new drilling technique known as “horizontal drilling” or “fracking,” natural gas stores found within the shale deposits of the Marcellus can be harvested with minimal impact to the surrounding environment. This projected growth is based on more than conjecture. Technological advances and innovations have been utilized to boost production from 1.2 billion cubic feet per day (bcfd) in 2007 to current levels of 14 bcfd. Further estimates project levels to reach 20 bcfd by the year 2020. It is projected that within the next year, Marcellus will provide at least one-fourth of the nation’s supply of natural gas. Additionally, areas in and along the Marcellus Shale are reaping the benets that come from all the new jobs. But the recent Marcellus Shale natural gas news sounds ripe with opportunities for companies - and their investors - that go beyond U.S. borders.International Opportunities in Natural GasNews. The U.S. isn’t the only nation beneting from the economic growth of the Marcellus Shale. With an estimated 30 to 75 years’ worth of natural gas reserves contained within the region, the U.S. can prot from its bounty with other nations. In recent natural gas news reported by Bizjournals.com, an Energy Innovation Summit was held in Pittsburgh, Pa. in which Canadian Consulate General John F. Prato applauded the innovations of the Marcellus Shale. Prato noted that one-third of Ontario’s natural gas supply is provided by Marcellus. During a panel discussion held at the Summit, NOVA Chemicals Corp. vice president of corporate strategy John Hotz afrmed the importance of shale gas from the Marcellus in his company’s operations. Hotz noted that his company, which is based out of Alberta, began facing problems with crisis potential a few years ago. Natural gas supplies within the area began to drop, while prices of crude oil began to soar. As the aforementioned process called “horizontal drilling” and “fracking” became known to Nova management, the company decided to take a serious look at how this new energy source could benet their bottom line. The growth in production within Marcellus is taking the lead in natural gas news. With additional export opportunities opening overseas - especially as European countries look to help ease dependence on Russian natural gas supplies for Ukraine - demand is strong. The means used for transporting the natural gas overseas may pose a challenge. But, as one industry leader noted, “Challenge equals opportunity.”LATIMES - MoneyMorning - NewsOK

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29FACEBOOK.COM/OILMANMAGAZINE @OILMANMAGAZINE OILMANMAGAZINE.COMOklahoma’s not Alone in Denying Link of Quakes to FrackingThe Texas Railroad Commission apparently isn’t shaken up by Ohio regulators’ decision to limit hydraulic fracturing after nding the process may have touched off minor earthquakes in the Buckeye State. The Ohio Department of Natural Resources last week announced it’s tightening permit rules on fracking in direct response to tremors in Mahoning County, citing “a probable connection” to fracking near a small, previously unknown fault. The quakes included one that shook homes near a Hilcorp Energy Co. drilling site. But Ofcials with the Texas Railroad Commission, which has regulatory oversight of oil-and-gas drilling in Texas, say they have not found a link between fracking and tremblers, adding that geology differs between states. Environmental activists have long argued that hydraulic fracturing, or fracking — the process used to release oil from dense shale formations — may cause earthquakes. They also maintain that injection wells used for disposal of wastewater used in the process could trigger seismic shifts. A recent peer-reviewed study from the journal Earth and Planetary Science Letters posits that extraction of oil and water from the Eagle Ford may have prompted recent small earthquakes. But the paper stopped short of directly linking fracking to that instability. Other states, including Kansas, have launched similar investigations. Thomas Tunstall, research director of the University of Texas at San Antonio’s Institute for Economic Development, says the Railroad Commission is aware of residents’ concern over a possible link between fracking and quakes. However, based on the evidence so far available, the commission is more likely to impose limits on injection wells than it is to restrict fracking in the state. “If stricter regulation is just being applied to injection wells, I don’t think that would be a big issue,” says Tunstall, who tracks economic data related to the Eagle Ford. “It may raise the cost of injection wells, and you may have to drive a longer distance to get rid of some of this waste. But that’s just a part of doing business.”San Antonio Business Journal - NewsOK - PlattsBaker Hughes opens the door to fracking’s “secret sauce”Baker Hughes’ decision to release all of the components of its frack uids begs the question: Why wait until now? Keeping secret some of the ingredients in hydraulic fracturing uids, while identifying most of them, as has been the case in the industry, just gives ammunition to critics of shale oil and gas drilling. And the Baker Hughes’ decision comes as a consensus appears to be forming in industry and government that full disclosure wouldn’t dull the competitive edge of any of the oil and gas service companies. Baker Hughes acknowledged as much, saying it could identify 100% of its chemical ingredients “without compromising our formulations.” So why now? Well, as my colleague Bill Holland reported, Baker Hughes isn’t specifying why the company is changing the policy. But Bill notes that Baker Hughes made the decision on March 28, the same day that a government task force recommended full disclosure to FracFocus.org, the industry database. Coincidence or not, Baker Hughes’ move now puts pressure on the other industry kingpins, Halliburton and Schlumberger, to follow suit. Baker Hughes’ move would be accomplished immediately, either. A company spokesman said it will take “several months” to complete negotiations with suppliers and customers, and ensure compatibility in reporting procedures. But it’s a big step, and one that’s perhaps a harbinger of a larger movement by the industry. Oklahoma universities offer energy education programsThe growing oil and natural gas industry has spawned a unique challenge, and the state’s universities have created programs to address the need. Oklahoma City University’s Meinders School of Business about two years ago began its Master of Business Administration in Energy program. In January, the University of Oklahoma’s Price College of Business began its rst Master of Business Administration in Energy program. OU’s program focuses on top-level executives or those on track to reach such positions. And the University of Tulsa’s Collins College of Business is in its third year of offering a Master of Energy Business. Oklahoma news at a glance...

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30Oilman Magazine — Your Voice In Energy May / June 2014John BrinkmanPresident of Imbibitive Technologies on their revolutionary product, IMBIBER BEADSInterviewed by Oilman Magazine Publisher, Luke McDonaldSee the entire video interview at OilmanMagazine.comOILMAN: I was very intrigued when I rst read about IMBIBER Beads, and watched your demonstration videos online. It’s very innovative and I feel it could revolutionize spill clean up and prevention within our industry. So tell us about IMBIBER Beads? John Brinkman: Imbembitive Technologies is a specialty absorbent manufacturer, our agship product is knows by the brand name Imbiber Beads. The word ‘Imbibe’ and ‘Absorb’ are synonyms, there’s a lot of confusion in the marketplace as to what an absorbent actually does. Most of the products on the market that are commercially available are surface coating materials and are by ASTM International Performance Standard denitions ‘aDsorbent’ that’s ‘D’ as in dangerous especially if you’re dealing with things like fuels and solvents. The IMBIBER Beads were originally invented by The Dow Chemical Company and specically by my former partner Dr. Richard Hall. Unfortunately Dr. Hall passed away a couple years ago, but part of his legacy was the invention of the only oil sensitive, super absorbent polymer currently available anywhere in the world today. Dick Hall invented IMBIBER Beads roughly in 1968, which was a little bit after the time that a fellow by the name of Victor Mills invented the rst water sensitive, super absorbent polymer, which later went on to become the brand name “Pampers” and revolutionized the personal hygiene industry with disposable baby diapers. OILMAN: How do Imbiber Beads work and how can they be applied to the oil and gas industry?John Brinkman: We happen to think that IMBIBER Beads should have the same impact on the oil industry in revolutionizing the way that oil spills are dealt with the way that oil releases are prevented from entering the environment and have endeavored to incorporate the properties of the IMBIBER Beads into a number of spill response and pollution prevention applications. How the beads differ from the surface coating materials is that the liquid physically diffuses into the polymer structure. If you can visualize a salt or a sugar granule it’s approximately the size of the IMBIBER Beads and the liquid diffuses into the beads by swelling two the three times their original size. What this really implies is a tremendous thirst. If you’ve seen any of the commercials on television for personal hygiene products they’ll say that the water sensitive products will pick up a tremendous volume of water, the beads do the same thing, but are unaffected by the water, they’ll only react with a wide range of organic liquids such as crude oil, gasoline, benzene, ethylene styrene, PCB’s. Once the liquid goes into the IMBIBER Beads, it becomes part of the structure of the IMBIBER Beads and can’t be re-released through compression or even if you were to grind them up and try to get them to release their contents - the polymer and the liquid have integrated and become one material. OILMAN: Aside from IMBIBER Beads’ application during an accident clean up, it sounds like their is also an application to reduce the risk of hazardous vapors at an incident site?John Brinkman: Good question, if you use the example again of the disposable baby diaper, those polymers are engineered to absorb water and within a short period of time the fabric is dry to the touch and hopefully that keeps your baby’s bottom dry and free from rashes and infections. With the Imbiber products they work the same way they illuminate the liquid faze, in other words the liquid is no longer available for re-release so in doing so you’re illuminating secondary contamination. If you’ve ever tried to pick up a polypropylene pad for example that’s been saturated with diesel fuel or gasoline simple gravitational pull causes it to re-release the amount of its contents. With the IMBIBER Beads that can’t happen, so that makes it safer for response personnel to clean up spills. And the other issue is very important, by illuminating the liquid faze; we reduce the rate at which vapors are released. Through independent third party testing, the IMBIBER Beads have demonstrated their ability to reduce the concentration in the air to below the lower explosive limit in many, many instances. So that’s a huge occupational and safety consideration for utilizing IMBIBER Beads’ unique performance properties. OILMAN: Environmental and safety issues is very important to everyone in the oil and gas industry. How can a company implement IMBIBER Beads as part of their safety strategy? John Brinkman: The easiest step is to just Google IMBIBER Beads, visit our website or call our toll free number 888-THE-BEAD. And whether someone has a particular issue like spill response, pollution prevention or specialty application we’re available to address those. I think we can demonstrate a level of expertise; we take great pride in our technical accuracy. Our scientists are all former Dow Chemical scientists and engineers so once we know what the chemical properties of the liquid in question are we can go back to the science team and explain what the properties are and what the issue might be and then customize solutions based on that. In many instances, we’ll know within a relatively short period of time. We also have another generation of products we’re working on as well that will increase our surface area by as much as 30 million times the size the beads are today.// Interview

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FACEBOOK.COM/OILMANMAGAZINE @OILMANMAGAZINE OILMANMAGAZINE.COM31Part II: A Day on the Rig - Viking(By Jamie Rood, Photographic Arst)On the morning of the last day of August 2010, returning from my Colorado tour, I left my parents place to head over to the ghost town of Barstow to shoot (at mom’s suggestion). There was a rig up at the end of of the road (half a mile away) - visible from their place. It was on the way, so I decided to stop by and take some shots from across the street. The site was on a lot where there used to be a couple of caliche pits known as the “Turtle Ponds”. Perhaps it was most infamously known as the place my brother Jody broke both legs and an arm jumping his dirt bike. The past time of riding in the various caliche pits had also sent me to the hospital many years years before, but I digress...I saw a young man on the phone and explained what I was doing so no one would get concerned. He was getting his wife to bring the family out and told me I should stick around as they were about to case the well. Before you know it, I was onsite with a borrowed hard hat, then up on the rig oor. The driller told me just to stay out of the guys’ way. No problem - I didn’t want to cause any problems and appreciated the access. You see, there was what I gathered as a ‘PR problem’ between the oileld companies and community at the time. When I was growing up, there was activity around, but the communities were pretty much just places where people lived. This go around however, the companies were drilling not just ‘in’ the community, but literally in peoples’ backyards! Now anyone growing up watching the “Beverly Hillbillies” will remember the intro with Jed shooting after some food one moment, then a Beverly Hills millionaire the next. So everyone is getting big royalty checks, right? What’s the problem? Well, when my parents bought their place, I remember the discussion about mineral rights not being included with the property. Practically no one in the area had mineral rights. So now the majority of homeowners were getting, at most, surface rental fees, loss of use of some of their land, and perceived lowered property values. (In reality, it appears to me that the current boom has raised property values so much in the area, this is more than compensated for). It was explained to me that with the current boom, oil companies had to either drill on their leases or lose them, and many of the untapped land was populated. Even a portion of my parents’ land was staked. To me though, oil & gas for the most part, was what that area was built on. Even though you might not work directly in the eld, you were likely there because of it, and that should be appreciated.The people I met could see that instead of documenting the bad deeds of “Big Oil” we’ve seen so much of in the past, I was showing the hard work, and even romanticizing the oileld again. I wanted to show it in a positive light. As one client wrote on my blog:“It puts to life how hard these guys work. I am from Midland so I grew up around men who worked and work in the business and I now work in the business. Thanks for nding beauty in the hard working men of West Texas!”So, I spent the rest of the afternoon getting to know the crew, learning about casing and just having a great shoot on and around the rig. The guys shared their water and lunch with me and talked a little about experiences they’d had. They worked very hard and seemed to really have a great time! I kept in touch with a couple, like Erin - my superstar in the “Dragon Arm” piece with the Eckel tool. Sometimes I tease that while other photographers shoot swimsuit models, I shoot roughnecks. ;) I was invited back the next day to see the breakdown and moving of the rig down the road, past Mom and Dad’s place to a new site in the Eastern end of Gardendale, south of the new water tower (everyone was on well water til now). I never made it to Barstow that trip. ;)The move of the rig was like an orchestrated circus - lots of heavy equipment, and lots going on! The rig was down, loaded onto trucks and on it’s way. I stopped by the house for a quick lunch and got down to the new site where the rigs were waiting in line to unload at the previously prepared pad. I watched the rig raise up and captured “Rig & Dust”. While shooting the trucks coming in with the big pumps, one of the guys asked, “Want to see something really cool?”. Of course I did, so I got into position and watched a huge red pump slide off the back of the truck, raising the front end into the air. (“Letting Off the Pump - Wheelie”) followed by lots of dust (“... - Dust”). A dust devil passed through the site, whipping up more of the white caliche dust. As the Sun started going down, I sat my worn Oakley sunglasses on the hood of my truck, positioned where the rig and landscape showed in one lens, giving a solarizing effect. I stared and reected on the last two days and on what I had captured. I had just a few days to get some of the images ready for my new “Day on a Rig” series to debut at Septemberfest at the Museum of the Southwest in Midland, Texas. The rush effort paid off as the series was really well received (including people like Mrs. Eckel giving me a hard time), encouraging me to continue delving into this niche.Jamie Rood, Photographic Artistwww.JamieRood.comEmail: art@JamieRood.comStudio: 512.345.3468Cell: 512.785.5830

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32Oilman Magazine — Your Voice In Energy May / June 2014From NBCNews.comFracking wastewater contaminated — and likely radioactiveCONTAMINATED WATERSThe concentrations of radium Vengosh and his team detected are higher than those found in some radioactive waste dumps, and exceed the minimum threshold the federal government uses to qualify a disposal site as a radioactive dump site, Vengosh told LiveScience. While the Josephine Brine Treatment Facility removes some of the radium from the wastewater, the metal accumulates in the sediment, at dangerously high levels, he added. Radium can make its way into the food chain by rst accumulating in insects and small animals, and then moving on to larger animals, like sh, when they consume the insects and smaller animals, Vengosh added. But it’s not known to what extent this is happening, since this study didn’t address that question, he said.‘ALARMING’“The occurrence of radium is alarming — this is a radioactive constituent that is likely to increase rates of genetic mutation” and poses “a signicant radioactive health hazard for humans,” said William Schlesinger, a researcher and president of the Cary Institute of Ecosystem Studies, in Millbrook, N.Y., who wasn’t involved in the study. Researchers say they are sure the contaminants are coming from frackingbecause the Josephine facility treats this oil and gas wastewater, and the water contains the same chemical signature as rocks in the Marcellus Shale Formation, Vengosh said. This wastewater is often called “owback,” as it’s the water that ows back to the surface from underground after being injected into rocks in the fracking process. In Pennsylvania, some of this water is transported by oil and gas companies to treatment locations such as the Josephine facility, where it is processed and released into streams and rivers. However, much of the water used in fracking is treated by oil and gas companies and reused, or injected into deep wells, said Lisa Kasianowitz, an information specialist at the Pennsylvania Department of Environmental Protection (DEP). The treatment facility did remove some contaminants, including some of the radium, though enough made it through to accumulate in high levels in sediments, Vengosh said. It also “did nothing” to remove certain salts, like bromide, he said. Traditional wastewater plants are not built to remove these contaminants, he added. From InsideClimateNews.comState-funded study projects dramatic increase in emissions from oil and gas development by 2018.What might the oil- and gas-rich Eagle Ford Shale region of South Texas look like in 2018? A newly released but largely unnoticed study commissioned by the state of Texas makes some striking projections. These projections are included in a study prepared by scientists with the Alamo Area Council of Governments (AACOG) in San Antonio and paid for by the Texas Commission on Environmental Quality (TCEQ). The study was designed to determine the extent to which oil and gas development in the Eagle Ford region is contributing to rising ozone levels in the San Antonio metropolitan area, which lies north of much of the drilling. San Antonio’s ozone readings have violated federal air quality standards since August 2012, making the city vulnerable to sanctions under the Clean Air Act.The study’s ndings also have implications beyond San Antonio. In February, the Center for Public Integrity, InsideClimate News and The Weather Channel produced a series of reports about air quality in the Eagle Ford and found that the Texas regulatory system does more to protect the gas and oil industry than the public. The TCEQ has installed only ve permanent air monitors in the region, which is nearly twice the size of Massachusetts, and all of them are on the fringes of the shale play, far from the heavy drilling areas where emissions are highest. INSTANT FACT CHECK: Energy in Depth’s Katie Brown has posted a response to the water analysis study— pointing out, among other things, that members of the Marcellus Shale Coalition stopped using the Josephine Brine Treatment Facility in May 2011, that some samples were taken close to the discharge source, and that the levels of radioactivity were well below industrial discharge limits.INSTANT FACT CHECK: Texas Railroad Commissioner David Porter criticized the InsideClimate/CPI report on the Eagle Ford during a panel discussion this week in Dallas, defending the work that state regulators do to protect the public while also dismissing the authors of the report for being opposed to oil and gas development.Noise from the mainstream...MAINSTREAM VS MIDSTREAMWith your help, we’ve set the record straight on all the misleading reporng surrounding hydraulic fracturing.The number of wells drilled in the 20,000-square-mile region could quadruple, from about 8,000 today to 32,000.Oil production could leap from 363 million barrels per year to as much as 761 million.Airborne releases of volatile organic compounds (VOCs) could increase 281 percent during the peak ozone season compared to 2012 emissions. VOCs, commonly found at oil and gas production sites, can cause respiratory and neurological problems. Some, like benzene, can cause cancer.Nitrogen oxides—which react with VOCs in sunlight to create ground-level ozone, the main component of smog—could increase 69 percent during the peak ozone season.Oilman Magazine — Your Voice In Energy May / June 201432

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FACEBOOK.COM/OILMANMAGAZINE @OILMANMAGAZINE OILMANMAGAZINE.COM33Studies, facts & expert feedback from the industry...“Fracking has helped this naon by unlocking vast resources of oil and gas, to make our country more secure and have a stronger economy by providing thousands of jobs.” “Our economy job base is held up by our recent surge in oil & gas exploraon, mostly due to hydraulic fracturing.” Russ Didlake –  “Hydraulic fracturing has been used for decades. It is only unl now that the successful combinaon of it with direconal drilling that has exponenally grown the ability to exploit our bounful hydrocarbon resources that the pseudo-environmental crowd has deemed it “dangerous.” The plight of hydraulic fracturing is eerily similar to what happened with the gasoline addive methyl terary butyl ether (MTBE), which the government regulated reners to produce an oxygenate to replace lead (tetra-ethyl) and therefore clean the air. Then it was banned when faulty underground gasoline tanks leaked and polluted the water. It wasn’t really the MTBE that did the damage; it was the old and leaky gasoline tanks. And don’t get me started on the replacement for MTBE: ethanol!! At the end of the day, like any industrial operaon, there are risks involved. But if the contractor performing the hydraulic fracturing ensures proper techniques, it is a proven safe operaon.” “From a Pipeliner’s point of view, the only noceable eect from hydraulic fracturing operaons I observed was an occasional leak in an aboveground spoil water tank, where earthen levees we unsecured or not compacted. Minor leaks from a single tank out of hundreds. This Naon needs the oil & gas captured by whatever modern means we can devise. There’s an older eld just south of Houston, Texas, where CO2 gas is piped from an exnct volcano in Mississippi then pumped into this eld to extract surprisingly huge amounts of crude & gas...will CO2 be the next media villain? Hydraulic fracturing creates jobs, drives technology, bolsters crude reserves and contributes to naonal strength.” Engineering LLC“Because of Hydraulic Fracturing, natural gas is abundant and inexpensive. Ulizing the technology of hydraulic fracturing has produced a direct, unquesoned, eect of lowering green house gases in the United States. My vision is lowering green house gases around the world; with more US natural gas exported to make a benecial change on the world’s environment. In addion, the transportaon sector is the second largest producer of green house gases. Converng more cars, trucks and busses to natural gas will greatly improve our environment.”  “Most people don’t realize that the oil and gas industry has been fracking since World War II. The rst applicaons of hydraulic fracturing were used 65 years ago in Stephens County, Oklahoma. We’ve been employing this technique ever since, a fact conveniently omied by an-development alarmists who want to make fracking seem unproven and unsafe. As an industry, we need to do a beer job communicang the long history of safe, proven success that we’ve had with hydraulic fracturing so that the general public understands that this isn’t an untested process.” Shane “Mainstream media is concerned with narrowed knowledge of oil and natural gas structure and operaons because of assorted paerns of interacon formed by insucient condions of jused oil and natural gas knowledge. The problem is what makes jused beliefs jused and how can mainstream media become jused in the oil and natural gas industry...only to provide a solid foundaon of knowledge jused as true belief through incorporang various organizaonal structures and social reinforcement to support oil and natural gas knowledge claims.” Mike Thomas - Pipeline InspectorBackground images: 123rf.comMAINSTREAM VS MIDSTREAMWith your help, we’ve set the record straight on all the misleading reporng surrounding hydraulic fracturing.JOSEPH DeWOODYThe argument that Hydraulic Fracturing contaminates drinking water is completely unmerited and without any scienticevidence.Thetypicalrock formation that requires hydraulic fracturing to achieve commercial oil and gas production is thousands of feet below the average depths of fresh water rock or aquifers. Between the fresh water and the potential productive zones are multiple strata of solid rock that are often times very low in permeability and porosity. The oil and gas industry is a highly regulated industry. Operators are required by state regulatory agencies to set adequate casing and cement to protect the annulus of the wellbore and prevent any communication of the fracs and the fresh water zones. Each frac is extensively monitored throughout the process to make sure that the frac is completed properly to produce the most hydrocarbon and provide an economic return for the operator. Even if it was possible for a frac to break through thousands of feet of rock under the pressure of massive amounts of gravity and weight and reach fresh water, the economic interest of the operator would be to ensure that it did not. Joseph P. DeWoody (@jpdewoody) is the president of Clear Fork Royalty, an oil and gas royalty investment company located in Fort Worth, Texas.““33OILMAN Magazine at . From the U.S. Department of EnergyPreliminary data nds no link to water supply contaminationWashington Post: The leading federal research effort into the controversial drilling method known as fracking has turned up no evidence so far linking the process to water contamination — a connection continually drawn by many environmentalist critics along with some Democrats in Congress. Department of Energy research, being conducted at a Marcellus Shale natural gas well in western Pennsylvania, thus far has shown that chemicals used in the hydraulic fracturing practice have stayed thousands of feet below drinking-water supplies. The fracking boom has led to a massive surge in U.S. natural gas supplies and is helping to rewrite the global balance of power among energy suppliers. But there are many detractors, who say fracking is dangerous for the environment. Specically, they argue that the practice is inherently harmful to water supplies. Such claims formed the basis of the recent documentary “Gasland 2,” a highly critical look at fracking and its impacts in Pennsylvania and elsewhere. Recent research from the federal government and state ofcials, however, indicates that fracking — when done correctly and in line with proper rules and environmental regulations — is safe. In addition to these initial results from the Energy Department, there was a determination in April of 2013 by Pennsylvania investigators that fracking isn’t to blame for high methane levels in three families’ drinking water in a northern Pennsylvania town.From Energy in DepthActivism and Deception Underlie Weather Channel’s Eagle Ford Shale ReportA new investigative report by InsideClimate News and the Center for Public Integrity – promoted and produced by the Weather Channel – concludes that shale development in south Texas is “releasing a toxic soup of chemicals into the air.” But shaky research underlying the report raises serious questions about the validity of those claims, including the use of widely discredited literature promoted by activist groups. The InsideClimate/CPI report claims that, despite complaints from residents in the Eagle Ford Shale region, regulators have done little to nothing to protect them. The facts, as they say, tell a much different story. With great reporting from Energy in Depth’s Steve Everley, we have a compiles a list of ten claims made in the InsideClimate/CPI report and in excerpts from the Weather Channel video, each followed by an explanation of reality. Link to this post at OilmanMagazine.com. It’s pretty entertaining.

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34Oilman Magazine — Your Voice In Energy May / June 2014ENVIRONMENTAL 3190 Highway 30 W, Box # 8758Huntsville, TX 77340Ph: 936-439-4319Website: www.cleanenergychemicals.comEmail: info@cleanenergychemicals.comTwier: @CleanEnergyChemCEC is an environmentally conscience global supplier of hydraulic fracturing and Biodegradable oil remediaon products. We service the Oil, Gas and Marime Industries by delivering our opmal green, nontoxic, biodegradable and low- toxicity products. We aim to contribuon to the preservaon of our environment, as protecng people, wildlife and the environment is our top priority here at CEC! Our focus is to connually improve industry processes and products, making performance in the eld more eecve, ecient and safe. Our Chemists develop innovave proprietary technology that improves the health and safety for workers, service organizaons, wildlife and the environment. Our products are used worldwide in many dierent scenarios. You will be amazed at the results of our Glut Free Biocide, NASA Award winning PRP for hydrocarbon spills on water/land and our Biodegradable Rig Wash, BLAST IT just to name a few.We look forward to reducing your risk and operang costs while increasing your protability! Please contact Jessica N. Byrd if you would like a tesng sample or informaon on any of our products. Let’s work together in the eld to make a dierence for many future generaons to come!Safety Management Systems2916 N. University Ave.Lafayee, LA 70507 Ph. (337) 521-3400 (800) 252-5522 (24/7)Website: www.SafetyMS.comfacebook.com/SafetyMStwier.com/SafetyMSAt Safety Management Systems, our main goal is protecng lives and changing cultures. We provide companies in the oil & gas industry with safety management and consulng services to promote and maintain an ethical workplace atmosphere that equally values health, safety, and environmental responsibility. A safe work environment is not only ethical, but essenal for a company’s success. Our Health, Safety, and Environmental (HSE) consultants and specialists are equipped and available to address your company’s relevant challenges and concerns, while also providing educaon and awareness to achieve an accident-free environment on the job.AMPOLNew Iberia Oce401 West Admiral DoyleNew Iberia, LA 70560Ph: 337-365-7847Oil StopHarvey Oce1208 Peters RoadHarvey, LA 70058Ph: 504-361-4321Ampol Norm RemediaonBayou Vista Oce575 Highway 182 Bayou Vista, LA 70380Ph: 985-395-2020www.ampol.netAmerican Polluon Control Corp. (AMPOL) is a full-service environmental remediaon company and contractor that specializes in inland, near-shore, and oshore emergency response and hazardous waste remediaon. Serving oil and gas companies, industrial companies and government agencies, AMPOL provides emergency and non-emergency toxic and hazardous materials containment, collecon and assistance with transport and disposal. Safety is top priority with AMPOL. Safety is planned into all of our acvies and is equal to the expectaons of our clients for quality and eciency. AMPOL has been recognized by the US Department of Labor and the Louisiana Workmen’s Compensaon Corporaon for its excellent safety record.ENVIRONMENTAL COMPLIANCE AND LEASE BROKERAGEEdmond, OK Oce: 3027 Willowood Rd.Edmond, OK 73034Phone: 405-340-5499Midland, TX Oce:4305 N. Gareld St. – Suite 229Midland, TX 79705Phone: 432-695-6020Web address: sco-jooilandgas.comSco-Jo Land and Environmental is the naon’s leading environmental compliance and land brokerage rm, with 35 years of combined experience in the oil and gas industry. Our environmental team specializes in EPA audits, SPCC Plans, Annual Inspecons, Tier II reports, air emissions, containment systems, and all environmental needs. Our brokerage rm specializes in lease and ROW Acquision, mineral and HBP ownership reports, BLM, BIA, State leasing, pooling applicaons, full curave measures, and due diligence with a CPL Accreditaon.7701 Johnston StreetPO Box 60639Lafayee LA 70596Phone: 337.993.9377Fax: 337.216.9721Email: customerservice@TeamFSS.comwww.TeamFSS.comFire & Safety Specialists Inc. (FSS) is commied to providing re suppression systems and other safety measures to beer protect your company. Our industry experts’ experience is unmatched in the re and safety industry. Unprecedented service, an honest approach to business, superior distributor relaonships and a commitment to geng the job done right sets our company apart from the compeon. Safety and training are key components to the success of FSS. We take immense pride in our ability to professionally protect our customers’ assets and lives. Training for all personnel is an ongoing and integral part of our organizaon, and allows us to connue doing what we do best – which is to save lives. 4598 Woodlawn RoadMaurice, LA 70555Ph: (337) 893-9992www.WetTechEnergy.comfacebook.com/WetTechEnergyWet Tech Energy is a family owned and operated company that has evolved into a diverse and unique blend of service and supply. As one of the leading buoy manufacturers in the country, what sets Wet Tech Energy apart are our service capabilies; being able to provide oshore installaon services with an Anchor Handling Vessel and specialty crews.EQUIPMENTHouston, TX281-330-6016Website: www.haggard-muddog.comEmail: muddogid@airmail.netOperators world-wide have saved rig me, drilling mud, improved rig eciency and safety with the Haggard MUD DOG ID WIPER - the only patented ID wiper tool. The MUD DOG wiper will do your dirty work for you while tripping drill pipe, keeping the mud in the well bore instead of the rig oor and racking area. (Messy stu to work in!) Time spent cleaning the rig oor and racking area equals BIG BUCKS. Let the MUD DOG wiper do it for you.// Marketplace

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FACEBOOK.COM/OILMANMAGAZINE @OILMANMAGAZINE OILMANMAGAZINE.COM35TRANSPORTATION 201 Energy ParkwayLafayee, LA 70508Sales/Markeng: 855-686-5478Corporate Informaon: 855-686-5478Website: www.DupreLogiscs.comEmail: forwardthinking@duprelogiscs.comyoutube.com/dupremediaOver the past 10 years, we have seen huge changes in the Logiscs outsourcing business model. Third Party Logiscs (3PLs) have long led the way in logiscs outsourcing using their core business-forwarding, trucking and warehousing. However, today this oering has become a commodity service and does not provide any compeve advantage. Customers, anxious to increase their compeveness, need improved and more integrated value proposions. This has led to an altogether new partner-based business model wherein the outsourcing company brings to table its own perspecve, knowledge, experience and technology to undertake a full-spectrum of acvies from planning, controlling, execung and organizing the whole logisc process.COMPLIANCE Walter C. Couch III, Managing MemberHouston, Texas USATelephone: (832) 421-7004e-mail: Walter@couchmorgangg.comWebsite: www.couchmorgangg.comQTECAberdeen, Houston, LouisianaToll Free: 855-364-5650Email: info@qtec-global.comWebsite: www.qtec-global.comEstablished in 1992, QTEC is headquartered in Aberdeen, at the heart of the UK energy industry, and has gained a strong track-record by providing objecve, unbiased technical recommendaons to oil and gas operators and drilling contractors worldwide.The services we oer aim to ensure operators achieve ongoing environmental compliance – something which has been heightened post-Macondo – and a reducon in their overall operang costs.1530 St. Eenne Rd.Broussard, LA 70518(337) 856-7000(800) PELSTARWebsite: www.pelstarusa.comEmail: dirk@pelstarusa.comParish Truck SalesNew Orleans Lafayee10459 Airline 1101 Doyle Melacon ExtSt. Rose, LA70087 Breaux Bridge, LA 70517(I-130 Exit 2-Kenner) (I-10 East Exit 109 South)MAIN: 504-467-9630 MAIN: 337-442-1600WATTS: 800-969-6225 WATTS: 877-237-0448SERVICESPort of IberiaFor leasing informaon contact Roy Pon: Ph. 337-364-1065Email: royp@portoberia.comWebsite: www.portoberia.com4611 South Lewis St.New Iberia, Louisiana 70560Markeng: markeng@portoberia.comAdministraon: administraon@portoberia.comGeneral Inquiries: info@portoberia.comGeneral Phone: (337) 364-1065Fax: (337) 364-3136Located near the Louisiana coast in Iberia Parish, the Port of Iberia is a 2,000 acre industrial and manufacturing site surrounding a man-made port complex. The port has access to the Gulf Intracoastal Waterway and the Gulf of Mexico through its own Commercial Canal and has access to the Mississippi River through major ports in Baton Rouge and New Orleans.24 Waterway Avenue, Suite 1100The Woodlands TX 77380 Ph. 281-719-6100Website: www.thewoodlands-commercial.com1800 Hughes Landing Blvd.The Woodlands, Texas 77380Featured Property:Bring your company home to The Woodlands’ newest desnaon – Two Hughes Landing. This new Class A, 8-story, 197,000-square-foot oce building is located in Hughes Landing on Lake Woodlands, a 66-acre mixed use development planned to include up to 11 oce buildings complemented by retail shops, restaurants, bouque hotels and urban residences. Situated at the upper end of 200-acre Lake Woodlands, Hughes Landing will be a naturally beauful, walkable environment to be enjoyed by employees, residents and visitors. Louisiana and Texas(337)237-8343 in Lafayee(800)213-BANK (2265) outside of LafayeeWebsite: www.MidSouthBank.comfacebook.com/MidSouthBanktwier.com/MidSouthBankParadigm Partners1500 S. Dairy Ashford, Suite 240Houston, Texas 77077Website: www.ParadigmLP.comCraig LaGrappe, Sales DirectorPh. (281) 558-7100 x102Email: CLaGrappe@ParadigmLP.comMike McCorkle, Account ManagerPh. (281) 558-7100 x120Email: MMcCorkle@ParadigmLP.comParadigm Partners is an internaonal consulng rm specializing in complex federal and state tax and funding incenves, for both public and private enes, across a host of industries. Paradigm Partners has disnguished itself amongst its peers by adopng a low cost, high return service model that employs a tailored two-phase approach; the Company’s business development and professional teams work hand in hand to provide accurate analyses, establish eecve client dialogues, and guarantee rapid turnaround mes.The Company’s core consulng porolio includes Global R&D Tax Credits Analyses, Hiring and Locaon- Based Incenves, Unemployment Claims Management, IC-DISC, Domesc Producon Acvies Deducon, Grant and Non-diluve Funding Advisory, Cost Segregaon Studies, Tax Controversy, Patent and Audit Defense Services.ADD YOUR LISTING!- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - To add your business lisng to the OILMAN Marketplace, or for more informaon about all of our aordable adversing opons, contact us at:Email: adversing@OilmanMagazine.com-orOnline: OilmanMagazine.com/adverse-orPhone: 800-562-2340 Ex. 1

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36Oilman Magazine — Your Voice In Energy May / June 2014    Health & Safety ManagerHire Resolve HOUSTON, TEXAS, UNITED STATES FULL TIME $160-195K- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Manager of SEC ReporngJMAR & Associates DALLAS, TEXAS, UNITED STATES FULL TIME Dallas based independent midstream energy company is seeking a Manager of SEC Reporng. This person will be responsible for the public ling compliance on all public enes, as well as focus on connuously improving producvity, compliance and ensuring internal controls are being met. Responsibilies:Responsible for ling quarterly and annual SEC lings.Coordinate quarterly reviews quarterly and annual audit.Establish processes to meet compliance for quarterly and annual lings with SEC.Conduct technical research and compliance for GAAP.Special projects as assigned. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -Reservoir Engineering TechRichard, Wayne & Roberts HOUSTON, TEXAS, UNITED STATES FULL TIME- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -GeophysicistRichard, Wayne & Roberts MIDLAND, TEXAS, UNITED STATES FULL TIME- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -Compleons ManagerRichard, Wayne & Roberts HOUSTON, TEXAS, UNITED STATES FULL TIME- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -Operaons EngineerHire Resolve HOUSTON, TEXAS, UNITED STATES FULL TIME - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -Chief Informaon OcerRichard, Wayne & Roberts HOUSTON, TEXAS, UNITED STATES FULL TIME Geoscience TechnicianRichard, Wayne & Roberts HOUSTON, TEXAS, UNITED STATES FULL TIME - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -Lead ExploraonistEarthStream Global Limited HOUSTON, TEXAS, UNITED STATES FULL TIME - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -Chief Operang OcerDalton Boggs & Associates MIDLAND, TEXAS, UNITED STATES FULL TIME - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -Geoscience TechnicianStellar Recruitment HOUSTON, TEXAS, UNITED STATES FULL TIME - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -Senior GeologistEarthStream Global Limited HOUSTON, TEXAS, UNITED STATES FULL TIME - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -Drilling TechnicianEarthStream Global Limited HOUSTON, TEXAS, UNITED STATES FULL TIME - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -Oil and Gas AccountantJMAR & Associates FORT WORTH, TEXAS, UNITED STATES FULL TIME - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -Sta Geologist - Exploraon - GOMRichard, Wayne & Roberts HOUSTON, TEXAS, UNITED STATES FULL TIME - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -Drilling SupervisorsRichard, Wayne & Roberts HOUSTON, TEXAS, UNITED STATES CONTRACT - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -Technical Safety Engineers – Process, Oil and GasRisktec Soluons Inc HOUSTON, TEXAS, UNITED STATES FULL TIME - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -Drilling TechnicianEarthStream Global Limited HOUSTON, TEXAS, UNITED STATES FULL TIME    Accounng Supervisor - Oil & GasHLP Soluons OKLAHOMA CITY, OK, UNITED STATES FULL TIMEThe Accounng Supervisor will plan, coordinate and direct the acvies for an assigned area of responsibility, as well as provide administrave direcon and support for the daily operaonal acvies of a team of employees. Minimum Requirements:Demonstrate ability to foster teamwork and facilitate teams through the encouragement and building of mutual trust, respect, and cooperaon among team members.Possess administrave knowledge in order to prepare and maintain reports, budgets, and administrave records as required.- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -Senior Renery ConsultantGlobal Recruiters Network, Inc ODESSA / MIDLAND, OKLAHOMA, FULL TIME - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -GeologistEarthStream Global Limited OKLAHOMA CITY, OKLAHOMA - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -Operaons EngineerDalton Boggs & Associates TULSA, OKLAHOMA, UNITED STATES FULL TIME - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -Director of Engineering OperaonsDalton Boggs & Associates OKLAHOMA CITY, OKLAHOMA FULL TIME- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -Reservoir EngineerEarthStream Global Limited OKLAHOMA CITY, OKLAHOMA FULL TIME- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -Compleons EngineerJMAR & Associates OKLAHOMA CITY, OKLAHOMA FULL TIME- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -Operaons EngineerDalton Boggs & Associates TULSA, OKLAHOMA, UNITED STATES // Job ListingsPOWERED BY: FindanOilGasJob.com

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FACEBOOK.COM/OILMANMAGAZINE @OILMANMAGAZINE OILMANMAGAZINE.COM37The power of SPAM, and I am not talking about emails. In the time before electronic devices conquered the world, the word SPAM had a different meaning. It was canned pork, consisting of an assorted mixture of pork pieces, and that is about all I wanted to know about it. It really is not too bad, in my opinion, is if it is fried, covered in mayo and put on a sandwich. I watched my dad for many years carry the same thing in his lunch box. A SPAM sandwich, a bag of potato chips, a honey bun, a thermos of coffee, and an apple. Even as a young child I was intrigued by the can of meat my dad fried up for his work sandwiches. Intrigued because it was not something that my mom would have ever serve the family. So the only time I saw the strange looking mixture was when dad would fry it the night before. As a kid I would watch him unzip the can and plop the meat puzzle on a plate before he sliced if for frying. I also found it amusing that the preservative gel in the can had the consistency of clay. I should also add that not only would my mother not serve it to the family she would not even fry it up for my dad’s lunches. If he insisted on going the SPAM route he was on his own. It was not until I was a young teen that I ever tasted the stuff. I worked two summers with my dad in the Sundown Slaughter Field in West Texas, and every day he had the same thing. Do not misunderstand me, I have a ton of love and respect for my dad and how he worked in the oilelds, the addiction to SPAM was just an intriguing part of who he was. I tried it a few times when I started working in the oilelds. At the age of 16 I wanted to be an oileld man, and apparently oileld workers carried SPAM sandwiches. Like I mentioned it was not bad, but every day, geez it seemed like an unusual form of self-torture. I nally got the nerve one day to inquire from my father about the daily SPAM sandwich. His reply was, “son if by noon that is not the best thing you have ever ate, then you’re just not working hard enough”. I remember at the time thinking I had two choices, to review my work ethic, or nd a different lunch meat. I came to love pickle loaf and turkey sandwiches. Using my experience with SPAM I was able to lower the maintenance cost of one platform in the Gulf of Mexico by 30%. I had to tell the rst part to give you a background on my experiences with SPAM. I also discovered that SPAM was not real popular with most people. In the Gulf of Mexico during the boom years of the 70’s and early 80’s most of Pennzoil’s platforms had a cook. Contract crews and the production crews were always treated with a good meal and a clean room. When the prots started falling Pennzoil cut out the cooks, however the contract crews still expected to be cooked for and treated like guest. During this time I took over as part of my duties a smaller platform WC 563 that we had reduced to being manned by a single person for 3-4 days of the 7 day hitch. No longer having the luxury of a cook I keep a small food supply on the platform, and always kept a few cans of SPAM. I loved telling the story of my dad’s SPAM tendencies and would occasionally fry some up out of respect for him, especially when I had worked hard enough to test and see if I ever reached the plateau of work efciency of my dad’s standards. While on WC 563 I would have contract crews come onboard for a few days to do various maintenance projects. Of course they expected to be treated like guest, and since I was the only person on the platform they assumed it was my duty to cook for them. One day I served fried SPAM sandwiches, and I was amused at the negative affect it had on the contract crew. That is when I hit on an idea to reduce the amount of time any contract crew would want to stay on my platform with me cooking for them. I started keeping a case of SPAM on in the pantry in the Galley and served SPAM sandwiches. I was amazed at how quickly the contract crew would arrive on board, complete the project and move onto their next project. Most of the time they were on and off before the rst plop of the SPAM puzzle hit the skillet. My reputation for SPAM spread through the Gulf very quickly. Even when I would have one of own eld technicians come on board they always brought their own food. The work efciency on WC 563 took a drastic turn for the better. The wireline parafn cutting crew became so efcient that the job went from a two day chore to a quick turn around from rig up to rig down in a mere 4 hours. They were off before the SPAM was done. Unfortunately for me because I had actually thought I had witness a half days work that would have met my dad’s standards and they left before I could test his theory. May your boots be dry, your coffee fresh, and your gloves new. Amen.Stevewww.crudeoilcalendars.comGOM Cutting Platform Maintenance Cost with SPAM

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A Louisiana Legacy Expands Through Management BuyoutAMI walking Founders and KLH through the processAtchafalaya Measurement, Inc. “AMI” is a multi-basin oileld service company based in Scott, Louisiana. A “one stop shop” for customized measurement systems providing SCADA (Supervisory Control And Data Acquisition) systems, installation of measurement equipment and the maintenance of these systems and equipment to onshore and offshore drilling operations. AMI has a rich history in the oileld that dates back to 1982 when the company was founded by Craig Ortego and Randy Fontenot. After 31 years of successfully running the business, Craig and Randy began considering retirement and monetizing the business they worked so hard to build. They contemplated an outright sale to a strategic buyer but were concerned that might negatively impact the culture they had built at AMI and the employees who had helped them build the business. Craig and Randy decided to offer their younger management team the opportunity to buy the company for a fair market value if they sourced the capital. They approached Nick Trahan and Shane Daigle, loyal employees and key managers of AMI’s sales and operations, and offered the opportunity to purchase AMI and continue its legacy. Given that Nick and Shane did not have the personal nancial wherewithal to fund the transaction, capital was the only issue standing in the way of what they wanted, and what Craig and Randy wanted.Nick recalled a conversation he had with Duane Donner, managing partner of Founders Investment Banking, several years earlier when they were introduced to one another in South Louisiana. Donner, born and raised in Lafayette, was on a hunting trip “back home”, hosting friends at their family duck hunting lodge. Nick, who was a friend and guest of Duane’s brother, recalls, “I rst met Duane while catching redsh and shooting my limit of pintails and gadwalls. Duane’s family lodge at Cameron Meadows is one of the nest properties in South Louisiana for duck hunting and catching redsh”.Nick had recently been promoted to general manger of AMI, and the company was experiencing signicant growth under his leadership. Duane inquired about the future of the company. Nick responded that he and fellow manager Shane Daigle had been instrumental in the company’s recent growth and that they were very optimistic about the future. Together, they foresaw an opportunity to purchase the company as Craig and Randy were getting closer to retirement. Nick knew they lacked the capital to pursue such a transaction, but Duane advised they stay in touch and have a discussion if the opportunity presented itself. Fast forward three years to June 2013 the company had grown substantially and Craig and Randy were looking to pursue a transition and cash in their chips. Nick remembered the conversation with Duane and made the phone call to discuss how they could get the appropriate capital to purchase the business and garner meaningful equity ownership.Not unlike most business owners and operators, Nick and Shane were not well versed on the ins and outs of buying a company. However, that did not slow their entrepreneurial spirit and desire to move forward with the opportunity. After spending some time consulting with Duane, they learned the idea of purchasing the company from Craig and Randy was more of a reality than either had previously thought. Six months later in December of 2013, Nick and Shane became meaningful equity owners and partners of Atchafalaya Measurement, Inc. Nick is acting President, while Shane took on the responsibility of Vice President.Principals of Founders Investment Banking worked as exclusive advisers for Nick and Shane and guided them through a process to nd the capital, and the right partnership and terms with KLH Capital, a private equity rm based in Tampa, Florida. “The Founders team provided us with an opportunity to take our business to the next level by teaming us up with a great partner while gaining ownership in the process,” said Trahan. The KLH partnership provided Craig and Randy with liquidity, allowing them to diversify their wealth and exit the business, and giving Nick and Shane a meaningful stake in the company. Based in Birmingham, Alabama and with a geographical focus on the Deep South and Texas and an industry focus on Oileld Services in particular, Duane Donner and his team pride themselves in taking a more personal, customized approach to the transaction process, and are committed to cultivating long-term relationships with their clients. “This is what we do for a living. It’s our job to understand how these markets work and how to structure deals to allow young management teams like Nick and Shane to realize their goals of owning a business. Most people don’t realize their options and what’s available to them. We see people pass on great opportunities because they aren’t reaching out and asking questions. Our job is to advise and educate our clients to help them make the best decisions and ultimately help them realize their aspirations,” says Donner.www.foundersib.com - 2204 Lakeshore Drive, Suite 425 • Birmingham, Alabama • 35209 • 205.949.2043Oilman Magazine — Your Voice In Energy May / June 201438

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Our current economic climate is very scary at best. Today 70% of physicians’ main concern is future compensation. Concerns include Obamacare, Medicare, Medicaid, reduced insurance reimbursements, malpractice insurance, compliance, practice management, overhead, kids, family, college, aging parents, retirement and oh, taxes. How do you make a living safely and insure the long term value of your retirement without risking a dime? e safest and most secure move you can make is to build a portfolio of Antique Guns that is buried in your safe. In my humble opinion, in 20 to 25 years when you retire, a portfolio of Antique Guns will be worth more than the same money in stocks, bonds, an IRA or 401K. Some stocks and bonds have gone to zero, right? You think Antique Guns will ever go to zero? John Williams from Shadow Stats, for 30 years, has been exposing the hidden truth in government economic data, minus Wall Street & political hype, simply the bitter U.S. economic reality. Williams thinks the U.S. systemic solvency crisis of the last 5 years is accelerating unabated. Resulting in an inevitable economic meltdown, and hyperinationary great depression. Creating a complete loss in the purchasing power of the U.S. and a collapse in the U.S. nancial system. Mr. William’s timing on hyperination is 2015. All instigated by Ben Bernanke’s plan to debase the dollar since 2010, QE 1, 2, 3. We can’t print money to spend our way out of debt. World condence in the U.S. dollar is gone, because of U.S. political failure, to x the continued systemic insolvency of the U.S. economy. Call Now for you FREE 75 page Hyperination Report. Portfolios are $5,000, $10,000 or $25,000 to get started. Call Now for FREE IRA Approved Information Pack & 3 FREE Special Reports.vThe U.S. is at a rst ever 2+ years of a lower AA+ credit rating, from a perfect AAA, of U.S. Treasury debt rated by Standard & Poor’s. e uncertainty is multiplied by a $16 trillion dollar national debt. e budget decit hit a record $6.6 trillion in 2012, or 42% of GDP, highest in history, forcing the U.S. into a certain mortal long term solvency crisis. Williams warns “Hyperination remains a virtual certainty.” What should you do? You must secure nancial catastrophe insurance on the value of your money. You can’t buy ood insurance aer the ood, can you? You insure every part of your life; why not insure the value of your money? You are safer to err on the side of caution than to weather this nancial hurricane uninsured. You wouldn’t drive your car without insurance, or not have home owners insurance, or not renew your malpractice insurance, would you? en doesn’t it make sense to insure the value of your money with a portfolio of Antique Guns? Call now, you will be glad you did! e nest Gun Portfolios of all time are the result of integrity, intelligent direction, and skillful execution. We apply the same concepts that made you a great physician. We have over 100 years of combined experience with a PhD in what not to do, with our trade and business references posted below. We are Board Certied like you are. You have worked hard all your life, protect yourself, let us build you the portfolio of safety and security that you have earned and your family deserves. e only thing worse than failure is regret! Call Now for 3 FREE Special Reports, 1)The Danger of Hyperination, 2)The Art of Gun Making, 3)The Failure of The 401K, a complete information pack and our new Gun Catalog. Call Now.6640 Eastex Freeway, Suite 154 Beaumont, TX 77708Texas Gun Collectors AssociationATF Federally Licensed Gun DealerThe Mighty Prot Power of Antique GunsAntique Guns Are Safe Secure Hard AssetsLearn How To Build A Safe Secure RetirementAvoid Common Life Crushing MistakesColts Winchesters Springeld’s Henry’s Parker Brothers Scarce Rare Antique Guns Keep Setting Record PricesAll Guns Before 1899 No Licensing No Registration No Reporting Private & Condential Licensed Bonded Insured By Lloyds of LondonEarn Up To 25%+ Annually Investing In Antique GunsUnited States Gun Exchange1-800-859-BUY-GUNS (24/7) LIVEWe Support Border SheriffsAntique Gun Investing Is A Solid Retirement PlanLearn The Big Money Secrets of Antique GunsTexas Family Owned 35 Yrs ExperienceLicensed Bonded Insured Safer Than Stocks & BondsTHE UNITED STATES GUN JOURNAL Americas Foremost Authority on Antique GunsCall Now To Order Your Gun Catalog