DPA Correlator When my two sons were asked if the Zebra was a white ISSUE SEPTEMBER DPA PRESIDENT. Michael Canich Spread the Word About DPA

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1 SEPTEMBER A P R I L I S S U E DPA PRESIDENT Michael Canich Spread the Word About DPA IN THIS PG 1 DPA President s Column PG 2 DPA Continuing Education Committee Update PG 3 Events Around the Capitol: New U.S. Regulations Abount PG 4 Regions and Sections: Southwest Section DPA Update PG 5 DPA Vice President s Column PG 7 DPA Officers When my two sons were asked if the Zebra was a white animal with black stripes or a black animal with white stripes, one said the former, the other the latter. Each had his own perspective of the Zebra, and that is what I have found when I ask DPA members why they joined DPA. Some say for the professionalism, others say for certification, and there are many other answers. We need you to share whatever reasons spurred you to join DPA with your fellow AAPG members who do not yet belong to DPA. For the year as president of DPA, my theme will be Spread the Word About DPA. We will use all possible resources available to us to be successful in this endeavor. First, we will use the media available to DPA. The DPA has a column in the AAPG EXPLORER magazine once a quarter. The first such article was published in July. Additionally, the DPA publishes the Correlator newsletter quarterly. Each DPA member is encouraged to submit an article to our new Editor, Michael Raines of Whiting Petroleum in Midland, Texas. Also, from the media perspective, the DPA has a page on the AAPG website where an online application for membership, videos of past Discovery Thinking and Playmaker forums and other educational programs can be accessed. We will engage everyone in DPA currently in an executive, council or committee position to actively recruit new members, as well as to educate current DPA members of the benefits their membership provides. During our executive conference calls in July, Dave Entzminger, DPA vice president, discussed our goal of reaching out to as many members and non-members as possible with our Region and Section councilors and alternates. Bimonthly conference calls are scheduled to keep the councilors and alternates apprised of executive activities, as well as to provide them with an opportunity to keep the Executive Committee apprised of activities and concerns from the local societies. I have a monthly Executive Committee conference call scheduled, which can be used to discuss any current issues at hand. Each month we discuss a special topic and invite the appropriate committee chairs to join the call and provide additional information on the selected topic. We will be active at as many international, domestic, national, regional, sectional and local meetings as possible. Chandler Wilhelm, DPA president elect, has done a wonderful job ensuring that DPA has a presence at many of these meetings. The form of our presence can vary, but includes: DPA luncheons. Discovery Thinking forums and short courses at the ACE and ICE meetings. Playmaker forums in domestic and international venues. Pass the Baton events (mentoring forums) sponsored by Regions, Sections or local AAPG-affiliated societies (see Regions and Sections p. 4). The Continuing Education committee, co-chaired by Mark Gallagher and Bob Shoup, is working with Chandler Wilhelm and the general chairs of the various domestic and international meetings to assure DPA sponsored programs are offered. In addition, the Continuing Education Committee is developing new programs, which will be presented live at meetings and made accessible for online viewing. Continued on next page. 1

2 Continued from previous page. There is a lot of activity occurring at the leadership level, but we need the involvement of the entire DPA membership. Please consider to: Join a committee. Write an article for the Correlator. Work with your Region or Section DPA councilor or alternate to set up a meeting to mentor early career geoscientists. Perform some other service to your DPA. I am available to discuss volunteer opportunities, as are any of the Executive Committee members (see Executive Committee officers p. 6). Please help me Spread the Word. Education Planning DPA Continuing Education Committee Update COMMITTEE CO-CHAIR Mark J. Gallagher Who We Are and What We Do: The Continuing Education Committee is one of the 11 standing committees of the DPA. The chair of the committee is appointed annually by the president, and is charged with the development and supervision of all continuing education courses sponsored by the Division. These tasks include coordinating our activities with the AAPG Education Department. Robert Bob Shoup and I are committee co-chairs. This is a great arrangement because Shoup is based in Kuala Lumpur, and continues to develop new DPA programs in the Regions, while I will work on the short courses that we will offer at Section and annual convention meetings. Shoup is also our AAPG HoD chair. In the past, we have offered ethics courses for members, but in the last few years we have ventured into other topics. Our goal is to help geologists succeed by enhancing existing skills and providing opportunities to learn new ones Denver Convention and Exhibition: The DPA sponsored three courses at the 2015 Denver convention: Black Belt of Ethics; Three Ps of Geosteering; and Cross Discipline Communication for High Performance Teams. Due to the downturn in our industry, the numbers were down from Attendance was 19 in the geosteering course, 13 in the ethics course and five in the cross discipline communications class. Six weeks before the convention, because of low numbers, we needed to make a decision on whether or not to cancel the cross discipline communication course. I am happy to say we went ahead with the course. This was the first time it was offered, and we needed the feedback. We will make a decision on the future of this offering based on course evaluations and a review of the curriculum Eastern Section Meeting: Sept. 20, the DPA will offer a geosteering short course Practical Geosteering: Realistic Considerations for Optimal Well Placement at the Eastern Section meeting in Indianapolis. This course will be similar to the Three P s course, but with only one instructor: DPA member Raymond Woodward. This course presents the basic information needed to understand the process from pre-drill planning, to kick-off, to TD. The course includes terminology, concepts, drilling processes, data acquisition and delivery, and appropriate LWD tool selection. It includes realworld examples from various basins Calgary Annual Convention and Exhibition: Four classes have been proposed to the Calgary ACE Committee. They are: 1. Assessment, Forecasting and Decision-Making in Unconventional Resource Plays by Bill Haskett. 2. Practical Geosteering: Realistic Considerations for Optimal Well Placement by Raymond Woodward. 3. The Ethics of Prospect Marketing by Bob Shoup. 4. Becoming an Independent workshop Houston Annual Convention and Exhibition: We are still in the early planning stages for this meeting. Since it is the 100th Anniversary of the AAPG, this should be a big meeting and an excellent opportunity to showcase DPA and its mission. Some potential short courses we are considering are: Building and Managing Effective Multi-Disciplinary Teams by Chris Gordon. Auditing Maps and Interpretations to Avoid Dry Holes by Bob Shoup. Becoming an Independent workshop. What can we do for your Society, Section or Region? We have a goal to offer more courses at Region, Section and individual society meetings. Our goal is to help members in their professional careers, make your meeting a success and increase the awareness of DPA among the membership. Please contact me by if we can help, at ru4salt@gmail.com. 2

3 Events Around the Capitol New U.S. Regulations Abound DIRECTOR, AAPG GEOSCIENCE AND ENERGY POLICY OFFICE Edith Allison Congressional Activity Comprehensive Energy Legislation: Separate bills passed the House Energy and Power subcommittee and the Senate Energy and Natural Resources (ENR) Committee. The House bill focuses on electricity reliability, improving cyber security and expanding workforce training. It is non-controversial and has bipartisan support, but more substantive and controversial topics will probably be added to the bill when it goes before the full Energy and Commerce Committee in September. The Senate bill, which is more comprehensive but still bipartisan, passed the Energy and Natural Resources committee that is chaired by Lisa Murkowski; Maria Cantwell is the committee s ranking member. At the end of the comprehensive bill markup, the Senate committee passed the Offshore Production and Energizing National Security Act (OPENS) that ends the ban on crude oil exports, in addition to reforming offshore oil and gas procedures and increasing access to federal lands. Only Republicans voted for OPENS. Appropriations Bills: Congress has left town, avoiding action on many must-pass bills. This is not unusual August behavior, it is only noteworthy because in January the congressional leadership expressed confidence in the ability of the Republican Party to get things done. None of the 12 appropriation bills is close to completion. Most of the bills have passed their respective House or Senate appropriations committees, but House and Senate versions have little in common and neither chamber wants to abide by the limits they set for themselves in the 2011 budget agreement. A continuing resolution (CR) is promised for the start of the new fiscal year on Oct. 1. The only problem with a CR is that it generally requires executive branch agencies to continue doing exactly what they were instructed to do last year. That means no new research projects, or worse it may require continued funding of projects that should be stopped. The transportation bill a three-month extension was passed in July and an extension of the debt ceiling will reappear to cause problems later this fall. A Flood of New Regulations The first half of 2015 has brought many regulations that will affect the oil and natural gas industry, but more are coming. This report will tally some of the major regulations expected in the next few months. First, a brief look at the Environmental Protection Agency (EPA) hydraulic fracturing report, this summer s hot vacation read. EPA Hydraulic Fracturing Report As you have probably heard, the EPA recently released the draft assessment from its four-year study of hydraulic fracturing. The report covers the full life cycle of water used in hydraulic fracturing, from water acquisition through wastewater treatment and disposal, well beyond what many in industry define as hydraulic fracturing. On the other hand, many in the environmental community complain that the study does not include acquisition and transport of chemicals and sand used in hydraulic fracturing, human health risks or induced seismicity. Many in the oil and gas industry are cheering what they see as a vindication of the safety of hydraulic fracturing. However, hydraulic fracturing opponents see the clear definition of risks that need to be regulated. A longer quote from the report than most media has given suggests both views are right: From our assessment, we conclude there are above and below ground mechanisms by which hydraulic fracturing activities have the potential to impact drinking water resources We did not find evidence that these mechanisms have led to widespread, systemic impacts on drinking water resources in the United States we found specific instances where one or more mechanisms led to impacts on drinking water resources, including contamination of drinking water wells. The number of identified cases, however, was small compared to the number of hydraulically fractured wells. In September and October the SAB will be meeting to peer review the report, and will consider public comments that were submitted in July and August. It is unclear when the final version of the report will be published. Upcoming Federal Regulations These are just some of the regulations listed in the White House Unified Agenda, and planned for 2015 that may impact the oil and gas sector. EPA Emission Standards for New and Modified Sources in the Oil and Natural Gas Sector. This rule is intended to reduce emissions of methane and volatile organic compounds from completions of hydraulically fractured oil wells, leaks, pneumatic devices, compressors and liquids unloading operations. As a basis for the regulation, EPA is considering emission sources highlighted in five white papers released in EPA Proposed Rule Making: Venting and Flaring: Waste Prevention and Use of Produced Oil and Gas for Beneficial Purposes from onshore wells located on Federal and Indian oil and gas leases. The rule would establish requirements and incentives to reduce waste of gas and clarify when royalties apply to lost gas. Continued on next page. 3

4 Continued from previous page. SEPTEMBER The comment period recently closed on a proposed rule from BSEE for blowout prevention systems and well control. Usually the federal government will revise a proposed rule, based on the public comments, and issue the revision as the final rule; occasionally, another round of revisions and comments is required. Future actions on this rule are unknown at this time. The U.S. Fish and Wildlife Service determination on listing Sage Grouse as endangered or threatened under the Endangered Species Act is required by court order by September Congress added a rider to the Fiscal Year 2015 omnibus appropriations to ban the Sage Grouse listing. A similar rider is being considered for both the House and Senate Interior and Environment appropriation bills for the fiscal year starting this October. Regions and Sections Southwest Section DPA Update COUNCILORS, SOUTHWEST SECTION Margo Liss and Steve Zody Midland hosted a DPA Playmaker forum spearheaded by Mike Party and Charles Sternbach on Jan. 14. There were 13 speakers who emphasized active plays in the Midland Basin portion of the Permian Basin, which is one of the hottest areas for unconventional oil in the United States. In February, the AAPG/DPA Reserves Forum titled, Reserve and Resource Assessment Challenges, was held in Houston in conjunction with the JCORET-certified evaluator training class, Petroleum Resources Management System (PRMS) by John Etherington. Both days had good participation, even with the industry downturn. The SWS AAPG meeting was held in April in Wichita Falls, Texas. The North Texas Geological Society did a fantastic job organizing and executing the convention. DPA hosted a luncheon with CEO Michael Oestmann, who presented his story on the rise of Tall City Exploration for an audience of about 100 attendees. DPA also hosted a breakfast meeting for current and prospective DPA members. DPA President Rick Fritz presented his view of our energy industry to a group of about 20 people, and explained how DPA is playing a role to help its members. Southwest Section DPA volunteers are in the process of planning between one and three luncheons and/or dinners that will preview select AAPG 100th Anniversary interviews of several distinguished Permian Basin geologists. The intent is to potentially raise funds for SWS scholarships. David Entzminger, Will Green and Ed Dolly have coordinated the initial logistics. The organizing committee of the 2016 SWS AAPG meeting in Abilene has been receptive to coordinating another DPA lunch and/or breakfast during that meeting. Margo Liss has contacted potential speakers for this April event. Also, we are exploring a Pass the Baton event in the DFW area for spring This event is intended to engage young professionals by bringing them together with a panel of three to four seasoned professionals, who essentially start out by relating their history in the business, then answer questions in a discussion forum format. This would probably take place in a bar or restaurant to keep the environment light and conversational, instead of formal. 4

5 What Can We Do? DPA VICE PRESIDENT David Entzminger Our president, Mike Canich, has set this year s course for DPA with his vision, Spread the Word About DPA. So, what does that mean, and what can we do? While discussing our past experiences on the DPA board, both Mike and I realized that some of our councilors and alternates might not understand what is expected of them and how important they are to DPA. So we asked ourselves how we can get the councilors and alternates more engaged in DPA. Our councilors are the ones working in the trenches in our Regions and Sections. Unfortunately, we may not have clearly defined the expectations for the councilors, and then provided them with the resources to carry out those expectations. Yes, we have had meaningful goals, but the implementing of these goals is not always that easy to achieve with such a vast diversity of Regions and Sections. Last year, as president of Southwest Section, I was involved in monthly conference calls with the other Section presidents led by the Section committee chair and vice president of Sections. It was a great venue for sharing issues, opportunities and best practices. Mike and I realized that a regularly scheduled conference call with our councilors and alternates could provide a venue to set our year s vision into action and start providing or developing the resources our councilors may need to implement that vision. Our first conference calls were Aug. 15 with the Regions, and Aug. 24 for the Sections. We did not have the participation we had hoped, but it was a beginning. It confirmed that in some cases the councilors are not equipped with the resources they need, nor was it clear the councilors understood what is expected of them. It is especially true we have not involved the alternates as much as we should have. This year we will have bimonthly conference calls with our councilors and look forward to their feedback and working with them to Spread the Word About DPA. Simply stated, we want all our councilors and alternates to be involved in the following ways: Attend meetings (or make sure a representative is present). Be active in local societies, plan local events. Recruit members for DPA. Write an article for the Correlator. Serve on a DPA Committee. Provide member and non-member feedback. We all volunteer as well as have real jobs, so how do we make DPA more visible with the limited time we have? We could incorporate DPA into some of our daily practices and activities. We already have started sharing the DPA benefits slide presentation. We can thank our predecessors for the materials in this presentation. The benefit slide presentation is something we hope to keep current and continue to add slides that our councilors share and find helpful. We will be providing all the councilors with a list of AAPG leaders from their Region or Section who are not DPA members so they can encourage these leaders to join DPA. Our membership committee, under the direction of Greg Hebertson and Don Burdick, is introducing the Pass the Baton events, of which we hope to have three to five this year. Charles Sternbach is actively promoting several more Playmaker forums for this coming year. There are many opportunities for you to become active in DPA, and we ask that you select something you are interested in supporting and make it happen. We want to turn ideas into actions. DPA is about professionalism and ethical practice in the energy resource geosciences. We are certified geologists and geophysicists committed to standards with DPA being the Gold standard of our profession that transcends local, state, national and international borders. Join us to Spread the Word About DPA. Make it your Division within AAPG. 5

6 Upcoming Ethics Presentations Date: Oct. 8, 2015 West Texas Geological Society Host City: Midland, Texas Time: 11:50 a.m. Meeting Venue: Fall Symposium Power to the People! The Permian Basin: Past, Present, and Future Author(s): Vincent Cronin, Baylor University Talk Title: How and What Should We Teach Novice Geoscientists About Geoethics? Contact: or US$ 35 (luncheon only, separate fee for symposium) Restrictions: Must Register for Fall Symposium Date: Nov. 1-4, 2015 Geological Society of America Host City: Baltimore, Maryland Meeting Venue: The Geological Society of American Annual Meeting 2015 Author(s): Ethics Panel Session Title: Ethics of Geoscience in Practice and Application Contact: See Website Restrictions: Must Register for Fall Meeting Date: Dec , 2015 American Geophysical Union Host City: San Francisco, California Meeting Venue: The American Geophysical Union Fall Meeting 2015 Author(s): Ethics Panel Session Title: Geoethics and Critical Thinking in Undergraduate Geoscience Classes Contact: See Website Restrictions: Must Register for Fall Meeting Date: Feb. 24, 2016 Houston Geological Society Host City: Houston, Texas Time: 11:30 a.m. Meeting Venue: HGS General Lunch Meeting Author(s): John Jordan, Anadarko Petroleum Contact: US$ 45 pre-registered members; $ 50 for non-members/walk-ups; $ 40 for Emeritus/Life/Honorary; $ 10 for students if pre-registered and pre-paid Restrictions: Room capacity 100 6

7 Meet Your Executive Committee Officers Michael Canich Jr. President Trimont Energy Pittsburgh David Entzminger Vice President Whiting Petroleum Corporation Midland, Texas Chandler T. Wilhelm President-Elect Shell Exploration and Production Co. Houston Debra Osborne Secretary COG Operating Co. Midland, Texas Connie Mongold Treasurer Consultant Katy, Texas Richard Rick Fritz Past President Council Oak Resources, LLC Tulsa, Okla. 7