THE TIPRO TARGET VOLUME 18, NO. 4 Febuay 19, 2015 Texas Independent Poduces and Royalty Ownes Association STATE OF THE STATE ADDRESS UNDERSCORES GOVERNOR ABBOTT S VISION FOR TEXAS Speaking befoe a joint session of the Texas House and Senate, Texas Goveno Geg Abbott deliveed his fist State of the State addess on Tuesday, Febuay 17. In his emaks, Goveno Abbott detailed his legislative pioities, and announced five emegency items to be taken up this session, including: ealy education, highe education eseach initiatives, tanspotation funding, bode secuity funding and ethics efom. As you goveno, I m poud to epot that as the sun ises on 2015, the state of Texas is stong and togethe we e about to make it stonge, exclaimed Abbott. We ae at the pinnacle of Ameica s economy. Texas has been numbe one in the nation fo ceating jobs fo so many yeas, it s had to keep count. But in 2014 we liteally outdid ouselves. We ceated moe jobs than any yea in the histoy of Texas. Afte highlighting the economic success of the Lone Sta State in ecent yeas, Goveno Abbott poceeded with outlining his plans to ensue Texas will emain the pemie state in the nation. Road funding was ecognized by Goveno Abbott as one of the biggest issues affecting Texans today. Consequently, the newly-elected goveno called on the Legislatue to pioitize tanspotation this session, in effots to successfully keep the state moving fowad. Ou fellow Texans face so many challenges: the need fo bette schools, moe oads, bode secuity, bette healthcae, moe jobs. They want moe libety and less govenment, and they deseve ethics efom, concluded Goveno Abbott. We can t let thei futue be defined by these challenges. Instead it is ou esponsibility to wok togethe and esponse to these challenges. Texas needs us to succeed. Ameica needs us to succeed. Woking togethe, we will keep Texas the leading state in this nation. Coinciding with the State of the State addess, the Goveno s office also eleased the Goveno s Budget poposal fo the 2016-17 biennium. TIPRO APPLAUDS GOVERNOR ABBOTT FOR HIS COMMITMENT TO TRANSPORTATION FUNDING Duing his State of the State addess, on Tuesday, Febuay 17, Texas Goveno Geg Abbott announced a continued commitment to poviding funding fo oad epai, maintenance, and infastuctue investments in Texas. Unde the Goveno s new budget poposal, $4 billion pe yea will be dedicated to building and maintaining oads without aising taxes, fees, tolls o debt. This will be accomplished by utilizing additional funds made available fom the passage of Poposition 1, expected to geneate $1.2 to $1.3 billion a yea accoding to the Comptolle s Biannual Revenue Estimate (BRE), ending a significant amount of divesions fom the State Highway Fund, estimated to povide an additional $400 million a yea, and by Constitutionally dedicating 50 pecent of the moto vehicle sales tax to the State Highway Fund, a statutoy change pojected to make available an added $2.4 billion a yea, following the appoval of the Texas Legislatue and votes. The plan including the constitutional amendment is needed to ensue the Texas Depatment of Tanspotation (TxDOT) has the sustainable, ecuing and pedictable evenue needed to plan lage-scale, multi-yea constuction pojects, emaked Goveno Abbott. Regadless of the pioities that may exist in this capitol, the votes made unequivocally clea thei pioity they want oads funded, and I thank Senato Robet Nichols and Repesentatives Joe Pickett and Lay Phillips fo thei wok to make this happen. We commend Goveno Abbott fo his continued commitment to funding ou state tanspotation needs, potecting Texas citizens, and suppoting continued commece acoss all industies, including oil and natual gas development, said Ed Longanecke, pesident of the Texas Independent Poduce & Royalty Ownes Association (TIPRO). This issue is of paamount impotance, paticulaly in the aeas of the state that have expeienced an incease in oil and gas poduction in ecent yeas. TIPRO emains focused on suppoting measues that effectively addess these needs by utilizing ou existing tax evenue base.
Page 2 Febuay 19, 2015 THE TIPRO TARGET CHAIRMAN S MESSAGE TIPRO Membes - In less than two weeks, membes of ou association will convene in Austin fo TIPRO s 69 th Annual Convention. The TIPRO meeting comes at an impotant time, paticulaly with the legislative session cuently undeway at the capitol. The Annual Convention will have a stong focus on legislative issues which could impact independent poduces opeating in Texas, as well as oyalty ownes living in the state. Attendees will have the oppotunity to hea the latest updates diectly fom state lawmakes egading pioity enegy legislation and bills up fo consideation in the House and Senate. TIPRO s Convention will coincide with Texas Independence Day, celebated on Monday, Mach 2. On this date in 1836, the Texas Declaation of Independence was signed, officially ceating the Republic of Texas. In ou geat state, we ae poud of ou ich heitage, and look fowad to making this notewothy state holiday togethe as an association at the Convention. In conjunction with the Annual Convention, TIPRO will also host seveal legislative functions, including ou legislative eception on the evening of Monday, Mach 2. Joined by state officials and thei Raymond James Welde III staff membes, the eception will povide an exclusive occasion to dive meaningful convesation amongst industy stakeholdes and policymakes. On the second day of the annual meeting, we look fowad to also welcoming state legislatos and capitol staff to TIPRO s legislative luncheon at one of Austin s most histoic venues, Saengeunde Hall. Located down the steet fom the state capitol, Saengeunde Hall is ecognized as a National Histoic Site. Taditional babeque will be seved at the luncheon, afte which TIPRO membes will be invited to paticipate in the association s call-up meetings with state epesentatives and senatos. Now moe than eve befoe, you paticipation in TIPRO s legislative call-up meetings is of paamount impotance, as we ve leaned that the envionmental activist oganization Eathwoks will also be hosting its own day of call-up meetings at the capitol the fist week of Mach. Please join TIPRO in speading the tuth on oil and gas development in the Lone Sta State, and help with educating ou legislatos on why thei suppot of the oil and gas industy is cucial to the futue pospeity of Texas. Following ou aftenoon at the state capitol, we will conclude the day by pesenting the Hats Off Awad to this yea s ecipient. We ae thilled to hono Texas Senato Kel Selige with the association s 2015 Hats Off Awad, duing a ceemony to be held at the Chaiman s Dinne on Tuesday, Mach 3. TIPRO s Hats Off Awad is the association s highest awad, which ecognizes those who make significant contibutions fo the oganization, as well as the entie oil and gas industy. Seving constituents fom his distict in West Texas, Senato Selige has poved to be a stong advocate fo domestic enegy development thoughout his time in the legislatue. He is a membe of the Senate Committee on Natual Resouces, and has continued to be a key leade at the capitol in the aea of goundwate policy. Senato Selige has also been ecognized in ecent yeas fo his steadfast suppot of policies that encouage and pomote a healthy business climate in Texas. Senato Selige has a long list of legislative accomplishments, to which we look fowad to paying tibute to duing the Chaiman s Dinne. If you have not aleady done so, I stongly encouage you to egiste to attend the association s 69 th Annual Convention. To do so, visit TIPRO s website at www.tipo.og, o call the TIPRO office at (512) 477-4452. Please be sue to also encouage you business associates and colleagues to paticipate in the meeting as well. I look fowad to seeing you all in Mach at the TIPRO Convention in Austin. Thank you. Raymond James Welde, III DRILLINGINFO LAUNCHES NEW DATA TOOL TO PROJECT U.S. PRODUCTION TRENDS This month, TIPRO Exploe Membe Dillinginfo unveiled a new tool, called Dillinginfo Index, which gauges ig activity in the United States and assesses industy opeations using actual dilling locations along with pemit and poduction data. Using popietay ig counts, pemits and poduction datasets, the Dillinginfo Index offes insight on oil and gas poduction tends, eleased seveal months befoe poduction data is made available though public souces. A citical tool fo tacking ig activity, uncoveing changes in dilling and poduction, and how the detemined tends could affect vaious U.S. makets, the Dillinginfo Index empowes investos, analysts, business ownes, opeatos, policy makes, state and county authoities with the most up-to-date insights about U.S. E&P new dilling opeations geatly enhancing shot-tem foecasting models, says the company. MARCH 2-3, 2015 AUSTIN TIPRO s 69 th Annual Convention, Sheaton Downtown Hotel. Fo info, call: (512) 477-4452. TIPRO Calenda of Events MARCH 11, 2015 HOUSTON IPAA/TIPRO Leades in Industy Luncheon, 11:30 a.m. Houston Petoleum Club. Fo info, call: (832) 233-5502. APRIL 8, 2015 HOUSTON IPAA/TIPRO Leades in Industy Luncheon, 11:30 a.m. Houston Petoleum Club. Fo info, call: (832) 233-5502. MAY 13, 2015 HOUSTON IPAA/TIPRO Leades in Industy Luncheon, 11:30 a.m. Houston Petoleum Club. Fo info, call: (832) 233-5502.
Page 3 Febuay 19, 2015 THE TIPRO TARGET TIPRO S 69 TH A NNUAL C ONVENTION A GENDA MONDAY, MARCH 2 10:00 A.M. REGISTRATION OPENS GENERAL SESSION 1:00 P.M. WELCOME ADDRESS RAYMOND JAMES WELDER, III, CHAIRMAN, TIPRO 1:10 OPENING REMARKS GEORGE P. BUSH, COMMISSIONER, GENERAL LAND OFFICE 1:30 FEDERAL ISSUES UPDATE U.S. CONGRESSMAN BILL FLORES, U.S. HOUSE OF REPRESENTATIVES 2:00 REGULATORY UPDATE CARLOS RUBINSTEIN, CHAIR, TEXAS WATER DEVELOPMENT BOARD 3:00 BREAK 3:15 POLITICAL OUTLOOK PANEL ROSS RAMSEY, TEXAS TRIBUNE HARVEY KRONBERG, QUORUM REPORT 4:15 THE GLOBAL CRUDE MARKET: U.S. CHALLENGES & SOLUTIONS EDWARD HIRS, HILLHOUSE RESOURCES 5:30-9:00 WELCOME TO AUSTIN/LEGISLATIVE RECEPTION DON T FORGET TO BOOK YOUR HOTEL RESERVATIONS! Call (512) 478-1111 to book you oom at the Sheaton Hotel Downtown. You may also eseve you hotel oom online by visiting: http://bit.ly/1zwcm54 TUESDAY, MARCH 3 7:30 A.M. REGISTRATION OPENS GENERAL SESSION 8:00 MEMBERSHIP BREAKFAST MEET & GREET WITH LORI WROTENBERY, DIRECTOR OF RRC S OIL & GAS DIVISION 9:00 STATE ISSUES PANEL SENATOR CRAIG ESTES REPRESENTATIVE CHRIS PADDIE REPRESENTATIVE DREW DARBY 10:00 MARK TRUAX, SENIOR MANAGER, PAC/WEST COMMUNICATIONS 10:45 BREAK 11:00 CAPITOL CALL-UP INFORMATION 11:45 BUS DEPARTS FOR SAENGERRUNDE HALL 12:00 P.M. BBQ LUNCHEON WITH CAPITOL STAFF SAENGERRUNDE HALL 2:00 CAPITOL CALL-UP MEETINGS 4:00 BUS DEPARTS FOR HOTEL 6:00 CHAIRMAN S RECEPTION 7:00 CHAIRMAN S DINNER HATS OFF AWARD PRESENTATION HONORING SENATOR KEL SELIGER WEDNESDAY, MARCH 4 8:30 A.M. TIPRO AUDIT COMMITTEE MEETING 10:00 TIPRO BOARD MEMBER MEETING FOR ADDITIONAL INFORMATION, PLEASE VISIT WWW.TIPRO.ORG OR CALL (512) 477-4452.
Page 4 Febuay 19, 2015 THE TIPRO TARGET C ONVENTION R EGISTRATION FORM MEMBER REGISTRATION FEES: INCLUDES ALL AGENDA EVENTS & MEALS MEMBER - FULL REGISTRATION: $495 SPOUSE - FULL REGISTRATION: $325 EVENT-SPECIFIC TICKETS: TUESDAY-ONLY BADGE: $395 NON-MEMBER REGISTRATION FEES: INCLUDES ALL AGENDA EVENTS & MEALS NON-MEMBER - FULL REGISTRATION: $695 (REGISTRATION INCLUDES 1 YEAR REGULAR TIPRO MEMBERSHIP) NON-MEMBER SPOUSE - FULL REGISTRATION: $475 EVENT-SPECIFIC, NON-MEMBER TICKETS: TUESDAY-ONLY BADGE: $595 Have special dietay needs o othe consideations? Please contact TIPRO staff at (512) 477-4452. O NLINE REGISTRATION IS ALSO AVAILABLE AT WWW. TIPRO. ORG! ATTENDEE INFORMATION Name of Attendee: Company: Addess: City/State/Zip Code: Phone: Fax: E-mail: Registeed Spouse: PAYMENT INFORMATION Total: Payment Method: VISA MASTERCARD AMEX CHECK NO: Pint Name: Company: Billing Addess: Cedit Cad No.: Exp. Date: Signatue: CID: CANCELLATION POLICY In ode to eceive a efund, TIPRO must be notified of you cancellation no late than Fiday, Febuay 20, 2015. Retun egistation fom to TIPRO at: 919 Congess Avenue, Suite 1000, Austin, Texas 78701, o fax to (512) 476-8070. Registation foms must be accompanied by payment.
Page 5 Febuay 19, 2015 THE TIPRO TARGET GOVERNOR ABBOTT PRESSES PRESIDENT OBAMA TO APPROVE KEYSTONE XL PIPELINE Uging suppot fo the Keystone XL Pipeline, on Thusday, Febuay 12, Texas Goveno Geg Abbott joined a coalition of 24 othe govenos in sending a lette to Pesident Baack Obama encouaging the Pesident to econside his theat to veto legislation appoving the constuction of the Keystone XL pipeline. The lette stesses significant economic and enegy secuity benefits the Keystone Pipeline poject would povide fo those states along the oute of the pipeline, and fo the entie nation. The lette states, With one stoke of a pen, you have the powe to give thousands of Ameicans the shot at a good-paying job that will help them povide fo thei families and get ahead in a tight economy. Appoval would also demonstate a sincee inteest fom you Administation in building bipatisan suppot fo a tuly all-of-the-above enegy policy, and stengthen ou economic elationship with Canada. The move by the coalition of 25 state govenos comes afte Congess ecently passed legislation which would authoize development of the Keystone XL pipeline. Howeve, at the stat of this yea, the Pess Secetay of the White House confimed if a bill wee to be sent to the Pesident s desk egading Keystone, he would veto the legislation. SUPPORT CONTINUES TO GROW FOR THE ELIMINATION OF U.S. CRUDE EXPORT BAN Ealie this month, Texas officials expessed thei suppot fo the epeal of the nation s cude expot ban. House Concuent Resolution 57, which uges the U.S. Congess to end the ban on cude oil expots, was filed on Tuesday, Febuay 10. The bill is authoed by fou state epesentatives, and co-authoed by an additional 31 epesentatives fom the Texas House. Citing numeous studies which have found pemitting cude oil expots would benefit Ameica's national economic and secuity inteests, the legislation esolves that Congess and the Pesident of the United States should take all necessay steps to eliminate the cuent ban on cude oil expots. Likewise, a new poll eleased the same day by the oganization Poduces fo Ameican Cude Oil Expots (PACE) also eveals gowing public suppot fo allowing an open maket fo cude oil. Suvey esults indicate that moe than 65 pecent of U.S. votes agee Ameican oil poduces should be allowed to sell cude to foeign tading patnes oveseas. Thee is a gowing consensus of eseach fom think tanks, univesities and govenment agencies that have studied this issue. Each has detemined that cude oil expots will gow the economy and povide boad-based consume benefits, said Geoge Bake, executive diecto of PACE. This suvey demonstates that a significant majoity of votes also believe the economy and consumes would benefit and Ameica s stategic position in the wold would be stengthened if U.S. oil poduces wee pemitted to sell cude oil to customes in counties who ae tading patnes.
Page 6 Febuay 19, 2015 THE TIPRO TARGET RRC CHAIR CHRISTI CRADDICK VOICES OPTIMISM FOR FUTURE OF TEXAS OIL INDUSTRY Addessing a cowd of enegy pofessionals at the Univesity of Texas Enegy Week in Austin, Raiload Commission Chai Chisti Caddick pedicted oil pices will soon ebound, allowing the Texas oil industy to get back on tack and gow following the ecent dip in the maket. I know we e in a downtun, but I don t expect this to be a long-tem downtun, said Chaiman Caddick. The long-tem gowth of this industy is impotant to undestand. Oil is an intenational commodity. Fo the fist time in my lifetime, we e competing with OPEC because of the eseves in this county and the fact we now know how to get at them. With domestic oil output obustly inceasing in ecent yeas, the United States now is positioned to have an influence on the global maket, noted Caddick, paticulaly if the 30-yea-old ban on expoting unefined cude out of the county wee to be lifted. Chaiman Caddick emphasized the oveall ise of domestic oil and gas poduction, a tend which is expected to continue even in spite of falling oil pices. With highe levels of enegy poduction in Texas, Caddick explained, thee ae healthie collections of oil and gas seveance tax evenue -- meaning lawmakes have moe funds available to pay fo citical state pojects, such as wate and tanspotation infastuctue development. It s a fact she says she hopes legislatos will keep in mind as they wok to eview poposed policy this legislative session. TOP 10 COUNTIES FOR OIL AND GAS TAX REVENUE IN TEXAS In a ecent aticle published by the San Antonio Expess-News newspape, the following counties wee highlighted fo geneating the most tax evenue fo the state duing Fiscal Yea 2014 fom oil and gas development: 1. Kanes County [Eagle Fod Shale]; ~$479,255,130 was paid in oil and gas seveance taxes 2. La Salle County [Eagle Fod Shale]; ~$348,155,440 was paid in oil and gas seveance taxes 3. DeWitt County [Eagle Fod Shale]; ~$337,865,920 was paid in oil and gas seveance taxes 4. Dimmit County [Eagle Fod Shale]; ~$294,239,010 was paid in oil and gas seveance taxes 5. Gonzales County [Eagle Fod Shale]; ~$229,585,300 was paid in oil and gas seveance taxes 6. McMullen County [Eagle Fod Shale]; ~$225,793,630 was paid in oil and gas seveance taxes 7. Webb County [Eagle Fod Shale]; ~$187,665,420 was paid in oil and gas seveance taxes 8. Midland County [Pemian Basin]; ~ $179,146,790 was paid in oil and gas seveance taxes 9. Upton County [Pemian Basin]; ~ $177,297,020 was paid in oil and gas seveance taxes 10. Andews County [Pemian Basin]; ~ $160,985,680 was paid in oil and gas seveance taxes Accoding to the Texas Comptolle s office, seveance tax collections ae the poduct of two factos: poduction and pice. In fiscal 2014, ising poduction and highe pices saw oil poduction and egulation tax evenues inceasing to $3,874 million, a new all-time ecod supassing the pevious ecod of $2,991 million set in the pevious yea by 29.5 pecent, epoted the state comptolle in the Biennial Revenue Estimate eleased last month. Looking ahead, oil poduction and egulation taxes ae expected to geneate $5,689 million in the 2016-17 biennium, compaed to $6,637 million in 2014-15. USGS COMPILES ANALYSIS ON HISTORICAL HYDRAULIC FRACTURING TRENDS Reviewing moe than 60 yeas of data, fedeal scientists with the U.S. Geological Suvey (USGS) have published two new epots focusing on hydaulic factuing. The USGS analyzed data collected fom nealy 1 million hydaulically factued wells and 1.8 million factuing teatment ecods fom 1947 though 2010, in effots to identify hydaulic factuing tends in dilling methods and use of poppants, teatment fluids, additives, and wate in the United States. The USGS also examined how newe technology has affected the amount of wate needed fo the pocess and whee hydaulic factuing has occued at diffeent points in time. These national-scale data and analyses will povide a basis fo making compaisons of cuent-day hydaulic factuing to histoical applications, said USGS scientist Tanya Gallegos, who is also lead autho of the epots. We now have an impoved undestanding of whee the pactice is occuing and how hydaulic factuing chaacteistics have changed ove time. The epots did note an expansion of wate-intensive hoizontal/diectional dilling between the yeas 2000 and 2010, coesponding with the shale evolution as it swept acoss the nation s geologic fomations. Even with a ise in industy s wate usage [which nationwide accounted fo only 0.3 pecent of total U.S. feshwate consumption in 2011], datasets suggest such tends have allowed poduces to unlock peviously inaccessible unconventional oil and gas poduction taget aeas, namely in shale and tight-sand esevois. The agency acknowledges such advancements in dilling have contibuted to the development of majo shale basins, including those situated in the Pemian Basin and Eagle Fod. The epot states, Thee have been significant advancements in both dilling and teatment fluids since thei initial applications, most stikingly since 2000. The most ecent hydaulic factuing poduction methods have esulted in a damatic incease in oil and gas development, paticulaly in shale esevoi ocks peviously consideed too impemeable o uneconomic fo exploitation. Between 2000 and 2010, the geatest numbe of hydaulic factuing teatments wee applied to wells dilled within the Appalachian, Gulf Coast, and Pemian Basins, but hydaulic factuing is in widespead use fo the development of unconventional, continuous oil, natual gas, and natual gas liquid accumulations in most of the majo oil and gas basins within the United States. Development of these esouces, made newly accessible by diectional/hoizontal dilling and hydaulic factuing technologies, ae contibuting to enegy eseves in the United States.
Page 8 Febuay 19, 2015 THE TIPRO TARGET RRC OFFERS NEW EMAIL SERVICE FOR OIL AND GAS UPDATES Membes of the oil and gas community can now subscibe to an oil and gas news sevice, offeed by the Raiload Commission of Texas (RRC), to stay infomed of the latest egulatoy changes fo the industy. Accoding to the commission, this fee sevice will povide news and infomation to assist industy in undestanding and complying with Texas oil and gas egulations and equiements, including: l New, amended and epealed ules; l Legislation; l New foms and foms evisions; l Pemitting and application equiements; l Seminas, confeences and othe events; and l Online filing capabilities and othe technology impovements. To subscibe to the commission s Oil & Gas News email sevice, visit the RRC s website at www.c.texas.gov/about-us/esoucecente/subsciption-sevices/.this webpage also featues othe email subsciption sevices offeed by the Raiload Commission of Texas. DENTON LAWSUIT UPDATE: NO RULING YET ON CHANGE OF VENUE REQUEST This week, Tim Sulak, distict judge fo the 353 d Distict Cout in Tavis County, head aguments on whethe the state s case against Denton s ban on hydaulic factuing should be moved to Denton County. Afte votes passed a ban on facing in the city of Denton this past Novembe, the Texas Geneal Land Office (GLO) filed suit, aguing such a ban is unconstitutional. Afte listening to aguments fom both sides of the case on Wednesday, Febuay 18, Judge Sulak made no uling on whethe to change the venue of the case. At the time, he also povided no announcement as to when to expect a uling. EIA PROJECTS DOMESTIC PRODUCTION WILL CONTINUE TO INCREASE As pat of the agency s shot-tem outlook, the U.S. Enegy Infomation Administation (EIA) says it expects U.S. cude oil poduction will continue to ise this yea and next, appoaching ecod levels by the end of 2016. Total U.S. cude oil poduction aveaged an estimated 9.2 million baels pe day (bbl/d) in Januay. Foecast total cude oil poduction aveages 9.3 million bbl/d in 2015. Given EIA s pice foecast, pojected cude oil poduction aveages 9.5 million bbl/d in 2016, close to the highest annual aveage level of poduction in U.S. histoy of 9.6 million bbl/d in 1970. Even with a decline in cude oil pices, global oil inventoies continue to ise. In the enegy outlook, published monthly, the EIA contends this yea oil pices will stuggle to each levels seen a yea ago, in ealy 2014. EIA foecasts that Bent cude oil pices will aveage $58/bbl in 2015 and $75/bbl in 2016, with 2015 and 2016 annual aveage West Texas Intemediate (WTI) pices expected to be $3/bbl and $4/bbl, espectively, below Bent. Howeve, the agency cautions maket volatility continues to cause high levels of uncetainty with egads to futue oil pices. Likewise, U.S. natual gas poduction also continues to outpace cuent demand. The EIA epots natual gas inventoies on Januay 30, 2015, totaled 2,428 billion cubic feet (Bcf), appoximately 468 Bcf (24 pecent) above the level at the same time in 2014 and 29 Bcf (1 pecent) below the pevious five-yea (2010-2014) aveage. Consequently, in the next two yeas, the EIA anticipates the Heny Hub natual gas spot pice, which aveaged $4.39/MMBtu (one million Bitish Themal Units) in 2014, to aveage $3.05/MMBtu in 2015 and $3.47/MMBtu in 2016.
THE TIPRO TARGET THE TIPRO TARGET Texas Independent Poduces & Royalty Ownes Association With moe than 2,800 membes, TIPRO is the nation s lagest statewide association epesenting both independent poduces and oyalty ownes. Ou membes include small family-owned companies, the lagest publicly taded independents and lage and small mineal estates and tusts. 919 Congess Avenue, Suite 1000 Austin, Texas 78701 Phone: (512) 477-4452 Fax: (512) 476-8070 www.tipo.og