COME SEE US AT THE OIL & GAS CONFERENCE May 9th & 10th
GAS COMPRESSION SERVICES
ENGINE & COMPRESSOR REPAIR SERVICES • Field Overhauls • Shop Overhauls • Laser Alignment • Skid Revamps • Valve Repair • Lapping Services • Grout Work • Machining Services • Packing Gland Repair • Starter Repair
OEM & Aftermarket Parts CNC and Manual Lathes CNC and Manual Mills
www.msifarmington.com
505-327-1132
1910 RUSTIC PLACE, FARMINGTON, NM 87401
“Energy production creates jobs.” “We need to protect the environment.”
Each wants the best for our country. So how can we satisfy both — right now? At ConocoPhillips, we’re helping to power America’s economy with cleaner, affordable natural gas. And the jobs, revenue and safer energy it provides. Which helps answer both their concerns. In real time. To find out why natural gas is the right answer, visit PowerInCooperation.com
4 BASIN RESOURCES
10
30
16
24
38
46
54
Bayless and Merrion
Harv Henry saw 10 an opportunity here
Two names that changed the face of the Basin
The Aztec Well family
16
Growing 25 to 650 employees through hard work, determination
PESCO Rhones’ family business founded on Christian principles
24
62
A birthday 30 celebration
54
Al Kendrick:
62
He went from an 83 cent an hour roustabout to successful business owner
A.B. turns 90, DJ Simmons Inc. is 60
Sharing information sources
He’s seen a lot of industry changes since 1955
38
Norvell’s determination got oil and gas conference up and running
Historian, pioneer Oil and gas industry keeps Tom Dugan 85 years young
46
From drilling, production to exploration
65
The Colemans a big part of our oil and gas history www.basinresourcesusa.com •May 2012
Antelope Sales & Service, Inc. 24 Hour Service
Phone: 505.327.0918 Fax: 1.866.905.5701
5637 US HWY 64 Farmington, NM 87401
Serving the San Juan Basin Since 1993
3 Wellhead Equipment Sales and Service 3 Pit & Miscellaneous Containment Barrier Systems 3 Coal Well Cavitation Diverter Systems 3 Drilling Equipment Rental 3 Fire Trailer Rental 3 Sound Abatement 3 Frac Equipment 3 Machining
Editor’s note
+,)( &$1 )+*)+ - ** + & )&! ** + & ( ,,)+$ , -, .", (, #)., ( , )! *+)')-$)( & $- ', ,%
).- ).+
. +- +&0 ,* $ &,
( *.- 0).+ &)") )( &'),- (0-#$("
As kids, all of us, at one time or another, questioned why it is important to study history in grade school and high school. At the time, it just seemed so pointless. Who cares what happen years ago? We’re told countless times in school – and few of us realize its importance until we get older – that to understand our future we really do need to understand at our past. This year is a great example of why we need to talk to and record the stories of the people in the area who helped make our way of life possible here in the San Juan Basin. In 2012, we mark 90 years of oil and gas production in the San Juan Basin, and New Mexico celebrates its centennial. While traces of oil and natural gas in New Mexico date back to the late 1800’s, the first successful gas well wasn’t completed until 1921, nine years after New Mexico gained its statehood. A year later, New Mexico’s first regular quantities of crude oil were produced in a well west of Farmington. For decades, New Mexico’s oil and gas producers have played a huge role in the state’s economy. The industry provides New Mexico schools, roads and public facilities with more than
$2.5 billion in funding each year. It is the state’s largest civilian employer. Each night 23,000 New Mexicans come home to their families from jobs related to the oil and gas industry. The photos on page 8 are from the Farmington Museum’s collection of historic photos. Bart Wilsey, director of the Farmington Museum, has put together an amazing exhibit at the library that chronicles the grit and determination it took to make Farmington the thriving city we have today. The museum is planning an expansion on the exhibit and we’ll follow their progress in future issues In every story in this issue the people who helped shape our community talk about how important family was to creating the oil and gas businesses they have today. Their children are now running a number of these companies, just as they took over the business from their parents or grandparents. Our future is embedded in these stories and we owe these people – and the countless others with whom they worked side by side – thanks for helping to shape our future. publisher Don Vaughan editor Cindy Cowan
.+ #)/+))'
designers Suzanne Thurman,
Jennifer Hargrove sales staff DeYan Valdez, Jeanene Valdes,
Teia Camacho, Shelly Acosta, Aimee Velasquez For advertising information
Call 505.516.1230
#)!$ & 23
+'$("-)(
Vol. 1, No. 3 ©2011 by Majestic Media. Basin Resources is a twice yearly publication. Our next issue will publish in July. Material herein may not be reprinted without expressed written consent of the publisher.
www.basinresourcesusa.com •May 2012
8 BASIN RESOURCES
(Left) Three men in Fruitland in 1952 pouring oil from a 55-gallon drum into a pail. They are identified as El Paso Gas Company workers.
(Left) Men working on a pipeline for El Paso Gas Company in 1952.
(Above) A view of the front of a gas station in 1935 with a car parked by the gas pump. The sign on the building says Camp Carson and it was located at the corner of Vine and Main streets in Farmington, New Mexico. It was also known as Camp Carson Tourist Court.
(Left) A group of men in 1926 with mules, pulling equipment to dig a ditch for a pipeline for Continental Oil Company.
A man pouring gas into a piece of machinery with another man watching. They are identified as El Paso Natural Gas Company workers.
A Black Diamond Coal Mine truck loaded with large chunks of coal in 1926. The two men standing on the truck were identified as Jimmy Williams, left, and Pete Koenhafer. The man on the running board is Dan Christensen, Jr. Dan Christensen, Sr. is standing in front of the truck.
Cover
A crane loads pipe onto a flatcar in 1952 at the Aztec railroad depot. The crane and trucks are identified as belonging to the El Paso Natural Gas Co.
Photos courtesy of the Farmington museum.
www.basinresourcesusa.com •May 2012
Performance is Key
Key Performance Indicator:
Safety
t
Developing technology to protect our employees Intensive company-wide employee training programs t Focus on creating a mature, continuously improving safety culture t
713-651-4300 performanceiskey.com
10 BASIN RESOURCES
www.basinresourcesusa.com •May 2012
BASIN RESOURCES 11
Two names that changed the face of the Basin Margaret Cheasebro Photos by Donna Cadena When Robert L. Bayless and his family arrived in the San Juan Basin in 1958, Bayless came armed with a college background that included business management and accounting. He had grown familiar with the San Juan Basin as a drill bit salesman while running a bit manufacturing business in Oklahoma. With a strong desire to succeed, he gained experience in the oil and gas field.
May 2012 • www.basinresourcesusa.com
12 BASIN RESOURCES “He didn’t have much more than the nickel it took to get him here from Ponca City, Oklahoma,” said Tucker Bayless, second child of Bayless and his wife, Bernie. In spite of that, he built an enduring company. Tucker is engineering manager of Robert L. Bayless, Producer LLC’s Farmington office. Located on the La Plata Highway, it is production headquarters. Company headquarters, including its management and exploration departments, is in Denver. Tucker’s younger brother, Rob, manages the company, which is owned by Bayless’ four children. Two brothers-in-law also have company connections. Tommy Roberts is an oil and gas attorney who does work for the company, and Kevin McCord is a petroleum engineer and operational manager for the Farmington headquarters. When Bayless arrived in Farmington, the industry had just entered a recession,
• • • •
For The Best Prices... Shop Us First
Gas Monitors Safety Toe Work Boots Gloves First Aid Kits
Edna No. 1 was Greg Merrion’s first well.
Walk in Drug Screening • • • •
Hearing Protection Safety Vests Respirators Cooling & Heating Products
• • • •
Fire Resistant Clothing Fire Extinguishers FRC Clothes Up To 5X! Thermic Boots
Full Line of Wrangler Products, FRC & Regular
Locally owned & operated
1901 E. 20th St. • Farmington • 505-325-4218
www.basinresourcesusa.com •May 2012
which lasted from the late 1950s into the 1970s due to foreign oil imports. In spite of that, Bayless forged ahead, drilling wells and finding some success. In the mid 1960s, he formed a co-operator partnership with J. Greg Merrion. Merrion and his wife, Rita, had moved their family to Farmington in the 1950s. With the help of investments from his four brothers, Merrion drilled a well in the Counselors area on a cattle ranch which his father had purchased in 1947. It came in at 300 barrels of oil a day, insuring the family a place in the industry. In those days, Merrion had modest headquarters in a low-rent office building that attracted struggling young independent producers. Merrion and Bayless, who were friends, formed the partnership in an attempt to help each other. “They were both independent producers trying to make ends meet,” said Tucker. “They needed office staff and field staff. Neither one had enough operations to justify that. Together they did.” The partnership, which lasted for 16 years, was successful in developing economic production, Tucker said. Though they’re now separate companies, Merrion and Bayless still do business together.
Today, the Bayless company’s focus is “to continue to find and replace existing production as we deplete hydrocarbon reserves,” Tucker said. Because natural gas is priced too low to justify drilling for it, the company commits more revenue to acreage in Colorado. “It is much more oil provenance than we have here,” said Tucker. “We’re producing natural gas right now, but we’re not drilling for it. We’re drilling for oil.” He has seen many changes in the industry. A major one is the ability to stimulate the release of hydrocarbons with better well
A Global Leader in Corrosion Engineering, Materials and Turnkey Cathodic Protection Services
Materials
• Galvanic & Impressed Current Anodes • Rectifiers & Junction Boxes
• CorrFlex® Flexible & Linear Anode • Extensive Selection of Corrosion Protection Materials
Installation
• Cathodic Protection
Installation Directional Drilling • Construction Management
Working with Industry for a better tomorrow protecting access to public land for multiple uses and funding wildlife habitat improvement projects. We are sportsman serving sportsman and are motivated by our passion for fishing and hunting.
www.sfwnm.com
May 2012 • www.basinresourcesusa.com
• Deep Anode Bed Installation
Engineering
• Cathodic Protection
System Designs & Surveys
• Corrosion Failure Analysis
• Pipeline Surveys & Direct Assessment
• Corrpro Tank Bottom GRID Installations
3900 Monroe Rd Farmington, NM
www.corrpro.com
505-325-1946
14 BASIN RESOURCES completion techniques. “We don’t drill too many dry wells anymore,” he said of the industry at large. Through the ups and downs of oil and gas, one thing remains constant at Bayless. “We’ve never laid anybody off from my dad’s day on,” Tucker said. “We run a nice, tight ship. We’re pretty conservative.” The company has about 25 employees. Merrion Oil and Gas Corporation also has found success. After the partnership ended, Merrion drilled as many as 30 wells a year and achieved production of 1,300 barrels of oil per day. In 1986, the company completed construction of a new headquarters building near Farmington’s municipal complex. By then, the price of oil had dropped from $27 to $10 per barrel, making drilling unattractive in the San Juan Basin. So Merrion focused on acquisitions and development. As a result, by the year 2000, its gas production leaped from 9 to 19 MMCF (million cubic feet) per day.
T. Greg Merrion
Maintenance • Repairs • Fieldwork • Parts & Service Full Wellsite Maintenance
• Pump jack servicing • Water transfer pumps and engines • Hydraulic pumps and engines • Compressor and engine maintenance
DEALER FOR • Cummins Natural Gas Engine Parts, Filters and Exhaust Components DISTRIBUTOR FOR • Gardner Denver - Compressors, Parts and Repair Center • LeRoi - Compressors, Parts and Repair Center • Crow Manufacturing - Oil Field Engine Parts • Boss Industries - Compressors and Parts PARTS AND SUPPLIES • Most parts in stock, including belts, hoses, governors, gaskets, and more • Ready for use 24-hours per day • Over the counter sales
www.twinstars.com 7169 Roswell Hwy 100 Iowa Ave 505-632-9202 • Bloomfield 575-746-6690 • Artesia FAX 505-632-2723 www.basinresourcesusa.com •May 2012
Its goal is to pursue targeted investments, maximize the value of its assets and resources, and work in a responsible, caring, productive manner. “Merrion prefers to buy cash-flowing properties with development potential,� according to the company’s website. “We buy both operated and non-operated working interests, and are especially fond of overrides and royalties. We buy non-producing minerals in developing shale plays.� J. Greg Merrion died in 2002. His son, T. Greg, took over the reins in 1992 and is president and chairman of the board, which operates the privately held, familyowned business with about 25 employees. Among its seven board members are T. Greg’s four siblings and his mother, Rita. In 2008, the company saw its headquarters transform under an extensive two-and-a-half year remodeling project. As T. Greg talked about the remodel, he said, “We plan to be around a long, long time. We want to enjoy the place where we work, and we want our kids to want to come back here and work.�
*UHDW VKRHV H[FHOOHQW VHUYLFH QR JDPHV : 0DLQ )DUPLQJWRQ 0 ) 6DW
May 2012 • www.basinresourcesusa.com
16 BASIN RESOURCES
www.basinresourcesusa.com •May 2012
BASIN RESOURCES 17
Aztec Well
May 2012 • www.basinresourcesusa.com
18 BASIN RESOURCES
Growing 25 to 650 employees through hard work, determination
Margaret Cheasebro Photos by Donna Cadena
When oil and gas service company operator J.P. Gibbons transferred
Wayne and Sally Sandel and their family from Midland, Texas, to Farmington in 1957, the Sandels didn’t know they would buy the company from Gibbons six years later and rename it Aztec Well Servicing Company.
www.basinresourcesusa.com •May 2012
May 2012 • www.basinresourcesusa.com
20 BASIN RESOURCES Though Wayne and Sally have died, their son, Jerry, is president of the company. Their grandson, Jason, is executive vice president. Jerry was in high school when the family moved to Farmington. He graduated from Farmington High School in 1960 and went Texas Tech to earn a management degree, which came in handy after his parents bought the company. That first year, they owned five pole-type well servicing rigs and employed 25 people. Today, there are about 650 employees. “We had just one office, and we didn’t have people to answer the phone, so we manned it ourselves day and night,” said Jerry. “Me and my dad would alternate. One of us would work in the daytime manning the Howard Jones photo.
ou ause Y c e B
“
Boom Trucks Roustabout
NM License #028411
Welding Trucking
#7 RD 5859 Farmington, NM
505-325-8771
Deserve the Very Best ”
40th ANNIVERSARY Faver’s Homes is family owned and the leading home provider in the Southwest Region. We’ve been making the dream of home ownership a reality for thousands of customers since 1972 and is the name you’ve known and trusted for 40 years.
505-327-9631 • 1-800-304-9860 1028 W. Main, Farmington, NM www.favers-homes.com
Easy Qualifying and Low Interest Rates (For Qualified Buyers)
Singlewides • Doublewide • Modular Homes Triplewides • Quadruples • Colorado Coded
DL#92
www.basinresourcesusa.com •May 2012
BASIN RESOURCES 21 phone. The other would stay in the ofSales, Aztec Drilling, and, finally, fice at night manning the phone and Roadrunner, a fuel company. Now the sleeping on the couch.” company is called The Aztec Well While in college, Jerry took a class Family. on integration management. What he One of the biggest changes Jerry has learned had an effect on the company’s seen is in communications. growth. Early on, “we didn’t have the com“I learned if you were fixing to exmunication system we have today,” he pand, you could expand horizontally or said. “If your pickup broke down out in vertically,” Jerry said. “I always felt the field or you had trouble out there, vertical integration was the best way.” there was no way for anybody to know In that strategy, if companies were about it. We had a lot of rainstorms, buying something they needed, they and all the washes would flood. If you would start a new company to supply got on the wrong side of the wash, you also might stay there two or three days themselves. In the process, they for would supply other businesses with the because there wasn’t anybody that product. could get to you if you broke down or Jerry put that principle to work at had trouble.” Aztec Well Servicing Company. He They took big lunches, food boxes added Triple S Trucking, Totah Rental and plenty of bottled water to tide them and Equipment, Double M Mud and over just in case.
They also learned survival strategies to get through the industry’s low cycles. “When the rigs would come down or things would shut down on the down cycles, we couldn’t provide a job for everybody, so we had to lay people off, but we kept our key people,” Jerry said. “That way we had something to build from when we started up again. I remember one year we didn’t do anything except build cattle guards to try to get something to sell and keep our key people in place.” Another year, they had only one rig working. All 20 managers worked on the rig, rough necking and doing whatever else was needed. “When things picked back up, that gave us 20 managers to put out on different rigs to get them started back up
100
MILLION
safe burner control hours of saf eb ur ner contr ol Take T ake the sparkless sparkless challenge. challenge.
Made in the U.S.A.
www.surefire-controls.com www .surefire-controls.com May 2012 • www.basinresourcesusa.com
22 BASIN RESOURCES again,” Jerry said. The industry’s ups and downs have made labor a major challenge. “When a rig’s off or energy
shuts down or slows down and we have to lay people off, they leave the industry, and I don’t blame them,” Jerry said. “When the energy
starts back up, we have to try to retool and retrain.” He’s proud of the company and of the employees who built it. “I have people who have worked here for 25, 30, 35 years,” he said. “There’s a lot of loyalty, and we have three or four people from the same family working for us – father, son, grandson, right down the line.” Jerry used to work about 10 hours a day, seven days a week. But he’s slowing down now. He doesn’t work on weekends anymore, and he spends the coldest part of the winters in Arizona, leaving more and more of the company’s management to Jason.
Howard Jones photo.
www.basinresourcesusa.com •May 2012
#, ,#!' (+ -"(, 0"( $'(0 "(0 -( %#/ 0"#% -" 24+ (' -" +( -4, )% 2(. ' % ' 0(+$ ' %# , 2(. %#/ 0#-" -" (& (+- % 1# #%#-2 ' (+ #%#-2 2(. + *.#+
4%% - $ 0#-"
+ ( -" - #%, %% ' ,) $ & & + ( (.+ , % , - & -( 2
1- -( ,"())#'! ' + ,- .+ '-, + #+)(+- ".--% 3 + (- + $ ,+ '- +' - 3 + ( % %%, ' ((+ ((% ' ) 3 (% $ ! , / #% % # ++ +&#'!-('
#,-
+
000 & ++#(-- (& &'-,
24 BASIN RESOURCES
Rhondes’ family business founded on Christian principles Margaret Cheasebro Photo by Donna Cadena Ed and Mary Lou Rhodes founded Process Equipment and Service Company in 1970. It has grown into one of the more successful production equipment manufacturers in the Rocky Mountains, with both national and international sales.
www.basinresourcesusa.com •May 2012
BASIN RESOURCES 25
May 2012 • www.basinresourcesusa.com
26 BASIN RESOURCES Located on U.S. 64 between Farmington and Bloomfield, PESCO has expanded there as far as available land will allow, so the company opened another office in an industrial park off La Plata Highway. Ed died in 2000, and Mary Lou has retired from the business. It’s now operated by their sons, Kyle and Jim, and their sons-in-law, Charley Tyler and Blake Wallace. Before she retired, Mary Lou kept the books until the computer age, answered the phone, and typed delivery tickets, invoices and letters. The family is close knit. Ed and Mary Lou both grew up in Spencer, Oklahoma, and their parents were friends. “Ed saw me when I was a squalling baby,” Mary Lou said. “His mother came to see my mother, and I was in the cradle. He was six years old.” Ed served in the Army Corps of Engineers during World War II. In Europe, he built platoon bridges, sometimes under fire. After the war he served a year in the Philippines. When he left the Army, he earned his engineering degree and took a job with Black, Sivalls, and Bryson, Inc. in Oklahoma City. “He discovered that I’d grown up while he was gone,” Mary Lou said. They were married in the Methodist Church in Spencer in 1947. BS&B
Howard Jones photo.
www.basinresourcesusa.com •May 2012
Daily Flights from Farmington
Denver
•
Book early for best rates
Phoenix
•
Las Vegas
www.flygreatlakes.com • 1-800-554-5111
28 BASIN RESOURCES frequently transferred them. In 1951, when Mary Lou was pregnant with their first child, they were transferred to Powell, Wyoming. Two months after they arrived, Jana was born. “I didn’t know much about children,” she said. “I told Jana, ‘Honey, I just sort of learned on you. I hope I didn’t ruin your life.’” By the time Ed was transferred to Farmington in 1958 as branch manager for BS&B, he and Mary Lou had five children. In 1969, BS&B was floundering. The company offered to transfer the Rhodes family to Casper, Odessa or Oklahoma City. By then, Jana was in college and the other children were in elementary and high school. It would have cost thousands of dollars to move, so when BS&B offered to let them go out on their own as repre-
sentatives, selling new equipment, parts and service, they agreed. “I never did want to go in business,”
$
.+ 0 .5$0$# '$,(" + -)$"2(.- 3,/1
"
!
!
/$0 2(.- + - &$01 ("' 0# 0 ,$ 06 .6$1
7 7 7 7 7 7
!
Mary Lou said. “My folks had a dirt construction business in Oklahoma, and to me it was nothing but a bunch of headaches. Eddie knew nothing about business, but we had to go into business. We couldn’t afford to move. We figured if we go under, we’re known here.” BS&B gave them a good price on parts, and for a year they made a living selling them. Then Ed designed two Picture Cliff units for use on shallow wells in the area. A demand grew for the units and opened the door for expansion. Now their son Jim designs the units, which are made to fit specific circumstances of individual wells. They do such things as separate water from oil or gas and provide heating to keep fluids from freezing. Ed and Mary Lou started their business in a small office on Maple Street
! " ! %
$04("$1 -"+3#$ 0!(1.- (1"'$0 3,/1 .00(1 3"*$0 .#1 3!(-& -"'.01 .# 3,/ $1(&-1 $++'$ # 3!3+ 0 3//+($1 %.0 .# 3,/ $++1 (. -"$ /(++ (21 ! !
78
#
!
#
!
0.6
(-& # 7
0,(-&2.-
www.basinresourcesusa.com •May 2012
two blocks east of Behrend Avenue. They hired three welders, who worked Monday through Thursday at El Paso Natural Gas Company and Friday and Saturday for PESCO. In 1973, they hired their first full-time employee. They incorporated in 1975. After buying two-and-a-half acres on the Bloomfield Highway in 1977, they constructed their first building. They’ve been expanding ever since. Their philosophy is that they can’t do business without employees or customers, so they treat them as they would want to be treated. They’re a strong Christian family and run their business on Christian principles. “We always prayed about the major decisions,� Mary Lou said. “We needed the Lord’s help.� During boom cycles, they’ve had as many as 325 employees. When times were lean, they downsized to as low as 125. Now they’re back up to about 200. Through feast and famine, they made it a policy never to borrow money. Mary Lou is proud of the way her family’s younger generation runs the business. “They’ve done real well,� she said. “The business has gotten much better since they took over.
!
&! ! &" # ! $ & && ! !
School of Energy
$" '$ % "! $ ! &"! "'$ %& &&$ & "!% ! #%
%BZUJNF FW WF FOJJOH weekend classes Commercial Drive Drivers Liccen ense n Industtrial Pro r cess Operator Industtrial Maintenance Mecchanic Lease Operator r Natura r l Gas Compressio on Occupational Safe fet etty y Onlliine in Renew wa able Energy Safe fety et certificates Well Well ell Control
!! ! & "!
$
SA SAN AN JJUAN UAN COLLEGE COLLEGE
Keep your skills current r
&! &
'%&" % ' "$
%& "'$% ' %&% ! % %&$ & "! $( % " %
Lear ea arn m mor ore re at www. w ssanjuancollege anj a juancolle ege.edu/en energy ergy 4DIPPM PG &OFSHZ t 4 )VUUPO t 'BSNJOHUPO /.
Imagine Your Possibilities!
'PS NPSF JOGPSNBUJPO BCPVU BMM SAN JUAN COLLEGE programs HP UP XXX TBOKVBODPMMFHF FEV PS DBMM
May 2012 • www.basinresourcesusa.com
"$ ( % & )))
$
! &"!!
"$
30 BASIN RESOURCES
saw an opportunity here
He went from an 83-cent-an-hour roustabout to successful business owner Margaret Chesebro Photo by Donna Cadena
A defining moment occurred in Harvey Henry’s life in 1962. After working for Continental Oil Company for 16 years, he started his own business, Henry Production Company, Inc. He made the decision when Conoco planned to transfer him to North Dakota. At that time, he and his late wife, Virginia, lived in Craig, Colorado, and had four children, ages 11 to 5. Instead of going to North Dakota, Harvey moved his family back to
www.basinresourcesusa.com •May 2012
BASIN RESOURCES 31
May 2012 • www.basinresourcesusa.com
32 BASIN RESOURCES
Farmington, where Conoco had transferred him in 1959 for two years and where they owned a house. “I could see there was opportunity here,” he said. “There were a bunch of contract pumpers at the time, and I thought I could do better than they did.”
He purchased a small production business from Jim Gould. “I only bought blue sky,” Harvey said. “I gave him $2,300 to get him out of the way. Then I found out he was about to lose everything. It was tough to hold onto it. In 1962 the
boom was over and the money was spent. Natural gas was eight cents per mcf (thousand cubic feet) for low pressure gas and 13 cents for high pressure gas.” But the family persevered. Virginia typed invoices on the kitchen table.
www.basinresourcesusa.com •May 2012
6/ -#$# (- #$11
7 $ 0+7 5$ 5(++ ' 4$ -#3120( + "33, 03"*1 (- .30 %+$$2 +.-& 5(2' 7#0. -(21 2. 1$04("$ 2'$ .30 .0-$01 -# 1300.3-#(-& 0$ 1
(#+ -#
6/ -#$# (- ' -#+$0
$ $12 !+(1'$# 2'$ (+$7 -#3120( + $-81 $ +2' 3-# /0.)$"2 2'0.3&' 2'$ - 3 $#(" + .3-# 2(.$ '.+# - --3 + &.+% 2.30- ,$-2 1 .30 !(&&$12 %3-#0 (1$0 %.0 2'(1 %3-#
/$-$# ,(++(.#.++ 0 20 (-(-& % "(+(27 !$" 31$ 5$ 0$ ".,,(22$# 2. 1 %$27
6/ -#$# 2. 3!!."*
30"' 1$# .30 %(012 7#0. 203"*
6/ -#$# 2. '.5 .5
30"' 1$# 2'$ + -# -# !3(+#(-& .- 3 - +4# '$0$ 5$ 0$1(#$ 2.# 7 2 02$# /0.4(#(-& %(!$0&+ 11 0$/ (01 .- /(/(-& -# 2 -*1
'$ %(012 4 "33, 203"* 5 1 /30"' 1$# 5'("' (1 12(++ (- ./$0 2(.- 2.# 7
'$ - ,$ 5 1 "' -&$# 2. (+$7 -#3120( + $04("$1 -" $ 2'$$6/ -#$# (-2. 2'$ 30 -(3, (-#31207 .(+ -# & 1 (-#31207 1 5$++ 1 1.,$ /.5$0 &$-$0 2(-& 12 2(.-1
.--7 !$& - #$1(&-(-& -# !3(+#(-& '7#0.!+ 12 3-(21 %0., 2'$ &0.3-# 3/
.--7 (+$7 %.3-#$# 5' 2 2 2'$ 2(,$ 5 1 (+$7 .0/ '$ .& '.31$ 5 1 +." 2$# .- -(, 1 20$$2 .--7 5.0*$# .32 .% (2 5(2' -. $+$"20("(27 -. 5 2$0 -# #(# '(1 / /$0 5.0* 5(2' %+ 1' +(&'2 %.0 .-$ 5'.+$ 7$ 0 3-2(+ '$ !3(+2 2'$ !3(+#(-& .- -(, 1 20$$2 2. 0$/+ "$ 2'$ .&'.31$
$04("$1 5$0$ 1 -#!+ 12(-& .-+7
(*&(%*$ /2#)(,' 7
-2/ %/3(#% 7 (.% 1-/"'%
-2,16 -"$ -5 "/+(,'1-, 7
&"5
"1%/ %."/1+%,1 2#)%/ "/+(,'1-, 7
&"5
%3%, (3%/0 46 /1%0(" &"5 *+ 1/%%1 -)%$"*% 7
&"5
%"36 "2*(,' # "
% %
"
%
!
# !
% %
!
%
!! $
"1%/ "2*(,' "
%
! ! "
% %
%,1"*0 %
$
% % %
" !
!
"/+(,'1-,
(.% !"/$ 1-/"'% ",$ ",$*(,' %
"
#
36 BASIN RESOURCES Three months later, after picking up several leases to operate, Harvey hired his first employee. For the first seven years, he worked every day of the week. “I’d get out of a morning before the kids got up and come in after they went to bed,” he said. Harvey wasn’t new to tough times. Born in southern Iowa in 1924, he saw his family struggle through the depression in Iowa, Illinois and Wyoming. After graduating from high school, he served three-and-a-half years with the Marines in the South Pacific and saw action on the islands of Guadalcanal, Okinawa, and Guam. He and Virginia met at a Farm Bureau dance in Deaver, Wyoming, when they were both 13. Romance blossomed after the war, and the couple settled in Frannie, Wyoming.
“In Frannie, there was a railroad track about two blocks from our house,” he recalled with a laugh.
“Every morning at 4 a.m. the freight train would come rumbling through. It would wake us up. Four o’clock was
www.basinresourcesusa.com •May 2012
BASIN RESOURCES 37 too early to go to work and too late to go back to sleep, so we had four kids in five years.” Harvey went to work for Conoco in 1946, starting at 83 cents an hour. He went from roustabout third class to senior production foreman of the Rocky Mountains in 11 years. But when Conoco decided to transfer him to North Dakota, he’d had enough. Jane, who was 11 at the time, recalled, “I understood that we got to come back to Farmington and that Dad was going to have his own business. That didn’t mean much to us kids. What meant a lot was that we got to go back to the same neighborhood, back to all our friends.” In those early years, Harvey and his wife decided to survive on the bare minimum for wages. Everything else they plowed back into the business.
May 2012 • www.basinresourcesusa.com
“Mama would say, ‘I need so much for groceries this week. One of the kids needs a new pair of shoes, and that will be this much.’” Jane recalled. “She knew exactly what she’d need for the family that week.” Eventually, a company in Navajo, Arizona, with a helium plant contacted Harvey, and he helped them for two years. Though the company didn’t produce enough gas to support the plant, the experience launched him into the compressor business. “I had to rent a gas compressor there,” he said. “It was junky, and it vibrated. So I built a compressor for $11,000.” He built two more compressors, and Henry Production began renting them out. Over time, they developed a large fleet of compressor rentals in the San Juan Basin. They also sell, repair, and fabricate
pumps. Last year they were the largest distributor of Capstone Microturbine generators in the Americas. They opened an Albuquerque branch and have employees in Houston, Denver, San Antonio, and Canada. Located at 603 S. Carlton Street, the company now has 95 employees. Harvey retired in 1986 when the oil and gas industry was experiencing another slump, and turned the business over to his two sons. Sam is president and Tony is vice president. Harvey stayed on, working as a consultant without a paycheck so the company could keep some young people with families on the payroll. “Mom and Dad always tried to take care of their employees,” Jane said. Harvey is proud of the way his sons handle the business. “They made the company,” he said.
38 BASIN RESOURCES
www.basinresourcesusa.com •May 2012
BASIN RESOURCES 39
May 2012 • www.basinresourcesusa.com
Norvelle’s determination got oil and gas conference up and running
40 BASIN RESOURCES Dorothy Nobis Photo by Donna Cadena Norman Norvelle’s heart and soul belongs to the oil field. A longtime member of the National Association of Engineers, Norvelle attended a conference of the organization in Albuquerque in 1991. The conference was sponsored by the Sandia Section of NACE, which had moved from Albuquerque to Farmington, which meant Farmington members did most of the work. “I was secretary for the local section, so I was asked to be the secretary for the regional conference,” Norvelle remembered. “They kept almost all of the money, but gave us around $1,000 for our efforts. After about two years of recovery, I thought, ‘Why don’t we have a conference in Farmington?’”
could have an annual Christmas dinner for the local members and their spouses,” Norvelle said. Norvelle took his idea to the local section and requested its help in forming an oil and gas conference in San Juan County. With their approval, Norvelle created a proposal and visited the local chapters of the American Petroleum Institute, the American Society of Safety Engineers and the Society of Petroleum Engineers, asking for their help. “I passed out copies of the proposal to each group,” Norvelle said. “John Roe (a colleague) went with me for moral support. They all agreed to enter into the conference as equal partners. At the first meeting, T. Greg Merrion (Merrion Oil and Gas) suggested we also bring the Farmington Chamber of Commerce Energy Committee in as a
3625>,,8 *,790-0,+ 04
0,2+ #,7;0*,8
(4+-(73 #,7;0*,8 @ 08658(2 5- 54 (?(7+5:8 " " 02-0,2+ '(89, 04*2:+04. @ 702204. 2:0+8 3:+ *:9904.8 @ >+75*(7)54 89(04,+ 8502 @ !09 9(41 )599538 @ '(8/5:9 8,+03,49 @ $(41 $7:*1 '(8/5:9
# (4+
In 1993, the local oil and gas industry was overloaded with various regulatory compliance issues it had to deal with. “I worked in the compliance engineering group with El Paso Natural Gas Company,” Norvelle said. “We had numerous phone calls and discussions, answering questions about how we handled the various issues. Most of the smaller oil and gas producers and service companies faced the same regulations we (El Paso) did, but did not have our resources. Again, I felt a local oil and gas conference on regulatory compliance would help.” It wasn’t just his determination to help other companies deal with the increasing compliance demands that spurred Norvelle on to start a local conference, however. “I wanted to raise enough money so that we (the Sandia Section of NACE)
#
=,369
7:.
@ ',9 7> 04. &(*::3 $7:*18 @ >+75 =*(;(9054 @ '(9,7 $7:*18 @ :36 $7:*18 >(7+ @ 5)02, ,4970-:.,8 258,+ 556 702204. 2:0+ (4(.,3,49 @ %297( 0297(9054 %4098 @ 2(70-0,78 @ 029,7 !598
@ @ @ @ @ @
!" 0789 0+ (?3(9 # 54-04,+ #6(*, 75:4+ 089:7)(4*, # /5:78
08 ( #(-,9> 0789 536(4> ,3),7 (4+ 04 .55+ 89(4+04. <09/ 2*5/52 53620(4*, @ # ,9<572+ (4+ ! !7,30,7 #(-,9> 53620(4*, 5485790:3
(4+-(73
!,73099,+ #:7-(*, '(89, (4(.,3,49 (*0209>
!/54,
"
75:*/ ,8( ?9,* @ (= 57 <<< 04+:8970(2,*58>89,38 *53 www.basinresourcesusa.com •May 2012
Power Innovations
Largest Parts Selection in the 4 Corners
Pumping Units & Engines Sales • Parts
1110 West Sategna Ln. • Bloomfield, NM 87413 • 505-632-8041 • www.powerinnovations.com Over 35 Years Experience
Cranework • Pumping Unit Setting & Repair
1110 West Sategna Ln. • Bloomfield, NM 87413 • 505-632-8041 • www.MSTI.us
42 BASIN RESOURCES partner, and they accepted.” Norvelle proposed a two-day conference (the Four Corners Oil and Gas Conference) which would provide awareness and assistance to the local oil and gas industry on environmental, health and safety compliance issues. He suggested the conference be held March 24-25, 1994, at the Farmington Civic Center. Each sponsoring organization would be required to rent an exhibitors booth, which was $100, and each sponsoring organization would appoint three people to serve on the committees and another person to serve on the audit committee following the conference. Any profit or loss generated from the conference would be split equally between the sponsors. John Roe was working for a major oil company that had strong support groups for regulatory compliance, plus
health, safety and environmental issues. He was accustomed to having access to a fully equipped research lab and a corporate legal staff to help keep him in compliance with day-to-day operations. When Roe joined Dugan Production, he became the regulatory, health, safety and environmental compliance department and knew the frustrations and need for help to remain in compliance with regulations. That led Roe to Norvelle. “Norman was dealing with these issues for El Paso Natural Gas Company and he provided an invaluable source of information. In addition, Norman was very involved in the local section of corrosion engineers (NACE) and was always willing to share his thoughts and ideas with others, which led to the idea of having a local conference on regulatory compliance,” Roe said.
“It was with Norman’s leadership that the first Four Corners Oil and Gas Conference was held in 1994 and has since grown to be a biennial event, with 2012 our eleventh conference.” In 1996, the conference celebrated the 75th anniversary of the Four Corners oil and gas industry. By that time, the conference had outgrown the Farmington Civic Center and was moved to San Juan College. The success of the conference was appreciated, but because of the time and effort involved in putting the conference together, the conference committee decided to hold the event every other year and to move it to McGee Park, which had more room. Norvelle stepped down as chairman of the conference in 1998, but remained active on the committee until 2010. “A lot of people with a lot of energy
&:-- .&&4 02 #&"4 7052 #&34 12*$& 0/ ."+02 #2"/% 4*2&3 6& 3&--
&:-- &"4 052 &34 2*$&
/ "--
/".& #2"/% 4*2&3 6& 3&--
*'& *3 #&44&2 */ 4)& 5*$, "/&9 0$"4&% "4 !*&.3 02% 02/&23 8
"34
"*/ 42&&4 8 "2.*/(40/ www.basinresourcesusa.com •May 2012
'HVLJQHG IRU 0LQLQJ , 0(7
'HVLJQHG IRU )U :DWHUSURRI
0DGH LQ 86$
'HVLJQHG IRU 0LQLQJ , 0
LOGGING & PERFORATING
Bridge Plugs
Pressure Control Cased Hole Logging & Perforating
helped the conference grow and get better,” Norvelle said. “I was a team leader, but the team was able to go out on its own.” Karen Ortega has served as the chairman of the Four Corners Oil and Gas Conference for the last two conferences. Ortega has worked on the conference since 2002. Ortega worked with Norvelle on the conference committee and said she has always appreciated his dedication and commitment, not just to the conference, but to the oil and gas industry. “I always remember Norman’s diligence in attending meetings and making sure the committee stayed true to the conference,” Ortega said. “He never let us stray far!” “I am very thankful for Norman’s masterminding of the oil and gas conference and contacting me to see if Desk and Derrick Club of Farmington would like to be one of the six organizations to sponsor the event and help with registration,” said Linda Dean, who remains a member of the conference committee. “I have been involved since its inception and have seen it outgrow itself from the Civic Center to San Juan College, and now McGee Park.” “Norman is easy going, but has remained firm on the
Safety First
Drug Free Equal Opportunity Employer 24 Hour Service
505-327-5244
2345 E. MAIN FARMINGTON, NM
www.basinresourcesusa.com • May 2012
BASIN RESOURCES 45 purpose of the conference, being to exchange technical expertise between disciplines,” Dean continued. “The conference has definitely accomplished that with the exhibition part being a fringe benefit to the sponsoring organizations.” “Norman is respected in his field and I applaud him for the success the Four Corners Oil and Gas Conference has accomplished and wish him the best in pursuing new adventures in retirement,” Dean added. Norvelle retired from The New Mexico Environmental Health Bureau on March 30, and is looking forward to a life with less pressure and more time. His retirement, however, will include support and participation in the oil and gas industry. Norvelle’s professional life has focused on the oil and gas industry and
May 2012 • www.basinresourcesusa.com
his love of the business has never faltered and has never wavered. “My family moved here from Okla-
homa and I remember the boom and bust,” Norvelle said. “My dad was a small contractor in Oklahoma and my entire family worked in the oilfield. I’ve been in it all my life.” Norvelle’s focus will remain on the oil and gas industry, but in a new area. “I’m going to write patents for water treatment areas that I’ve been working on for 30 years,” he said. “I’m excited about that. I’ll keep active in energy work because I’ve gained a lot of knowledge in 30 to 40 years.” Norvelle’s work won’t be confined to patents, however. “I’m going to visit my daughter in Portland, (Ore.) and do some work on her condo,” he said with a laugh. Norvelle’s contributions to the Four Corners Oil and Gas Conference will be recognized during opening ceremonies of the conference on May 9.
46 BASIN RESOURCES
www.basinresourcesusa.com • May 2012
BASIN RESOURCES 47
Oil and gas industry keeps Tom Dugan 85 years young Dorothy Nobis
No discussion about the history of oil and gas in San Juan County would be complete without the addition of Tom Dugan. And no history of the oil and gas industry in the San Juan Basin would be complete without the leadership and vision of Dugan. There is no one more interested in the history of oil and gas in San Juan County than Dugan. His passion for the history of his chosen vocation is legendary in San Juan County. Dugan has not been just a pioneer in the oil fields of the Basin, he has been a cheerleader for all that the industry has given to the area. May 2012 • www.basinresourcesusa.com
Ask friends and business associates of Tom Dugan what they think of the man, they’ll offer up words of praise and admiration. Ask those same people to name something the public might not know about Dugan and they’ll offer up memories and humorous incidents. T. Greg Merrion of Merrion Oil and Gas Corp. remembers Dugan as a friend and “friendly competitor” of his father, J. Greg Merrion, and George Coleman, Al Greer, L.O. Spears and Virgil Stokes. “They were all of similar age and they were really tough businessmen,” Merrion said. “But on the other side, they were friends. I still use (the term) ‘friendly competitors’ because that’s what they really needed to be. There were an awful lot of laws and regulations and they needed to work together to support and defend each other.” As a second-generation oil producer, Merrion said Dugan serves the industry as its historian and its cheerleader. “I have a lot of respect for Tom,” Merrion said. “He’s a world of information (on
the industry) and he wrote the book on it. He’s not just a historian – he’s the driving force behind the celebration of our oil and gas industry.” It was Dugan, Merrion said, who gathered the leaders in the industry to celebrate the 75th anniversary of the discovery of natural gas in the San Juan Basin. That celebration, held in 1996, prompted Dugan to organize two more – in 2001 for the 80th anniversary and again in 2006 for the 85th anniversary of that discovery. “He is absolutely the local oil and gas historian,” Merrion said. “He wrote a book about the San Juan Basin, called Gas, and he included all the key players who made their mark in developing the basin.” “Tom more than just makes a living from oil and gas,” Merrion added, “he lives it and he loves it.” Natalie Koehn is the director of the Sycamore Park Community Center, where Dugan goes three times a week to attend a senior fitness program. “Tom is such a joy to have in senior
48 BASIN RESOURCES fitness,” Koehn said. “We cover a wide array of topics in class conversations and any time we discuss relationships or connections with people, Tom is always the first to give a bit of advice on how to treat a lady with respect and kindness.” “Another favorite topic of Tom’s to cover almost daily in class is food,” Koehn added with a laugh. “He knows the best restaurants all across the country and rarely misses a meal at church because he says they have the best desserts!” Dugan is a historian, a “foodie” and a great employer. Dorothy Winer was the sixth employee at Dugan Productions and worked for Dugan for 24 years. “I was the office manager and VP (vice president),” Winer said. “It was an easy job because we never had any turnover (of employees). It was easy to hire people because they knew it (Dugan Productions) was a good place to work.” “I loved working for him,” Winer added. “He treats his people well. I enjoyed going to work every day because from the minute you hit the door, something exciting was happening.” The smart business practices of Dugan have sustained Dugan Production through the sometimes roller coaster ride of the oil and gas economy.
There was little doubt Dugan would be involved in the oil and gas industry. Born in a leased house between Eldorado and Oil Hill, Kansas, Dugan’s father was a pumper in the oil field, where he worked most of his life. In 1936, the Dugans moved to Potwin, Kansas, where they lived next to the family of Carl Matthews. “I grew up with Carl and Jim Jacobs and our families got together for Christmas and Thanksgiving,” Dugan said, adding the three families continue to share those holidays and have since 1938. Life was simple as a young boy, Dugan said. “We didn’t have any money, but we didn’t know we were poor. Everybody was poor.” Dugan graduated – along with eight others – from Potwin High School in 1943. “The thing to do (after graduation) was to join the Army,” Dugan said. A 17-year-old could join the Army with their parents’ permission, but that permission was not something Dugan’s parents would give. “I went to college,” Dugan said with a smile, “My mother wouldn’t let me do anything else.” After one semester at the University of Kansas, Dugan celebrated his 18th birthday by joining the Army Reserves. He was moved into the Regular Army, however, and went to Fort Knox, Ken-
tucky, for basic training. Dugan served three years in the Army, where he was part of a special unit that mounted flame throwers in tanks. In March of 1945 Dugan was sent to the Philippines and to Japan. He was discharged in March 1946. The letters home and newspaper articles about his military service fill a large scrapbook, which Dugan is proud to share with visitors. The letters are touching and full of pride of being a soldier. He earned a Bronze Star and a Purple Heart for his service. After his discharge, Dugan returned to school and graduated from the University of Oklahoma in 1950. He went to work for an oil company in Oklahoma, which was bought out by Phillips Petroleum, which sent him to Rangely, Colorado, for a year. The company then moved him to the Gobernador Camp in November 1952. In 1955, Phillips wanted to obtain a permit and build a pipeline from the San Juan Basin to Washington state, which would then connect to the Canadian border. Dugan eventually quit the company to go into business with Val Reece in Albuquerque, where he stayed until he started his own business on February 1, 1959. Dugan began by doing consulting work, working out of a bedroom of the home he shared with his wife,
www.basinresourcesusa.com •May 2012
Enviro Vaults are revolutionizing the storage tank industry. Visit www.4cornersvault.com to find out how and register for your free gift at the Four Corners Oil and Gas Conference.
50 BASIN RESOURCES Mary, on North Dustin Avenue. Dugan met Mary during a vacation he went on with Carl Matthews and other friends to Branson, Missouri, which was just a “little wide spot in the road then,” Dugan said. There were three pretty girls in a cabin near where the guys were staying, and when they looked out the window and saw the girls, “I said ‘I’ll take that one in the middle,’” Dugan said with a laugh. The “one in the middle” was Mary. The couple spent several days enjoying each other’s company before Mary left for home in St. Louis. She left a sweater behind, and Dugan mailed it to her. That began a correspondence. Still in college, Dugan called Mary frequently and saw her once or twice. A year later, the couple married. “We hardly knew each other,” Dugan
said. “We had spent a total of 14 days together over a year.” Pausing briefly, Dugan added, “She could have gotten a better one (husband).” The marriage was a strong one. “Mary was a very nice person,” Dugan said. “She was a hard worker and a great cook and she volunteered for everything. She worked hard at church and she worked hard at the hospital. She was very nice to live with.” Mary passed away on October 30, 1998, after 48 years of marriage. Since then, Dugan has filled his days with work, which he said, “helped me get through” losing his beloved Mary. If Dugan takes his friendships, his marriage, and his business seriously, he is equally serious about football – specifically, Denver Bronco football. A large Denver Bronco emblem greets visitors to Dugan’s office and his office
chair is emblazoned with a Bronco logo. Dugan has had season tickets to Bronco games for more than 40 years and while he only attends one or two each year now, his friends and family are the recipients of those coveted tickets when he doesn’t go. “John Elway (retired Denver Bronco quarterback) is one of the greats (of the game),” Dugan said. “I have a shrine to him at the house. I’m a big fan.” A recent trip took Dugan to another state with football fever – Texas. “I went to a Cowboys game and they have a wonderful stadium,” he said. “The people I was with are involved with a group, Wish for a Hero. A soldier’s wish was to meet Tony Romo. He had a Tony Romo card and when he dropped it and bent down to pick it up, someone shot at him, but missed. He said Romo saved his life.”
First to Strike Oil? COMPRESSOR SERVICE
Specializing in Compressor Parts & Repair
Compressor Valves
Packing & Wiper Glands
Pistons & Rods
Piston Rings & Wear Bands
Welding & Fabrication
Feels Good to be a FIRST.
Connecting Rods
Cooler plugs
Entering Sleeves
We stand behind our products & work 900 Sandstone Ave. • Farmington 505-325-0398
ϯϬϮϰ DĂŝŶ ^ƚ ͻ ϱϬϱͲϯϮϳͲϰϰϳϴ ͻ ǁǁǁ͘īŶŵ͘ŽƌŐ ϯϬϮϰ DĂŝŶ ^ƚ ͻ ϱϬϱͲϯϮϳͲϰϰϳϴ ͻ ǁǁǁ͘īŶŵ͘ŽƌŐ OVERSIZED OVERSIZED DRIVE UP ĐŽŵŝŶŐ ƚŚŝƐ ĨĂůů Ăƚ ϰϵϭϵ ĂƐƚ DĂŝŶ ^ƚ͘ UP ĐŽŵŝŶŐ ƚŚŝƐ ĨĂůů Ăƚ ϰϵϭϵ ĂƐƚ DĂŝŶ ^ƚ͘
www.basinresourcesusa.com •May 2012
CLEAN INNOVATION
Tony Romo met with the soldier and impressed Dugan. “Tony Romo is an outstanding young man.” At the age of 85 Dugan stays busy and active. He took a trip to Las Vegas, Nevada, where he looked at apartments. Lest anyone think he is considering retirement and moving, Dugan said, “I think about moving there when I pay my state income taxes,” he said with a laugh. “Las Vegas isn’t a fun city at 85.” Dugan enjoys traveling and would like to go to Egypt someday. “I’m kind of a history buff and I have a friend there,” he said. “I go to New York and go to shows, but I don’t do that very often. I like Washington, D.C., because of the history there.” Life is good, Dugan said. Sitting back in his Denver Bronco chair, Dugan looked around his office, which is lined with family photos on the walls, scrapbooks full of memories on shelves and stacks of professional magazines, which are mingled with copies of Sports Illustrated and Smithsonian magazines. “I have a hard time finding things in here,” he admitted. While he enjoys “making a living,” Dugan is also a charitable man. He is a financial contributor to San Juan Regional
Helping our customer customers s do more by using less. For For more info info about these game-changing game-changing clean initiatives, initiatives, visit hallibur halliburton.com/hydraulicfracturing rton.com/h ton com/ ydraulicfracturing ton.com/
Solving challenges. challenges.™ © 2012 Halliburton. All rights reserved.
May 2012 • www.basinresourcesusa.com
52 BASIN RESOURCES Medical Center and Bethany Christian Church, among other academic and nonprofit organizations. The contributions to San Juan Regional and Bethany are special to Dugan, however. “Mary told me to,” he said softly of his financial support. With a son, Sherman, and two grandchildren, Dugan hopes his legacy in the oil field will continue. “A lot of people come in and want to buy (the business),” Dugan said. “I tell them ‘Hell, I don’t want to sell when prices are so low,’” Dugan said with a laugh. With that, Dugan sifted through a stack of file folders and papers. His work day not yet ended, the 85-year-old no longer works as much as he used to. “Now I just put in eight hours a day five days a week, and not all day on Saturday,” he said, almost with regret. With retirement not in Dugan’s future,
Tom Dugan is a member of the Farmington History Makers Hall of Fame, Rocky Mountain Oil and Gas Hall of Fame and San Juan College Hall of Fame. In March Dugan was “roasted” at Navajo Ministries annual fundraiser to raise funds for The Four Corners Home for Children.
his friends and employees know that he’ll still be at the office for years to come,
eight hours a day and a half day on Saturday.
www.basinresourcesusa.com • May 2012
!
!
$
!
"
# !
#
#
!
!
(
"
%
!
!
%
! !
!
#
)
%
!
)
) $ % % '
) %
"!#'$
&
&
(
54 BASIN RESOURCES
www.basinresourcesusa.com •May 2012
BASIN RESOURCES 55
birthday A
celebration
A.B. turns 90, D.J. Simmons Inc. is 60
(Left) Ashton “A.B.” Geren stands by a portrait of his Uncle D.J. Simmons, who founded the oil and gas company D.J. Simmons some 60 years ago in Farmington.
May 2012 • www.basinresourcesusa.com
(Above) Old pic – A.B. Geren when he served in World War II as a navigator on B-17 Bomber.
56 BASIN RESOURCES Debra Mayeux
It was 1949 when Ashton “A.B.” Geren graduated with a bachelor of science degree in geology from Texas A & M. The Army Air Force veteran of World War II had put his education on hold to navigate B-17 bombers in the 457th bomb group of the 8th Air Force. This year, he celebrated his 90th birthday and nearly 60 years of working in the oil and gas business. Geren graduated from high school in 1939. He attended one year of junior college and transferred to Texas A & M, with plans to graduate and work in the oil patch. Then, Pearl Harbor was bombed.
“I left immediately to join the service,” he said. “I flew 30 missions out of England.” On his fifth mission, Geren didn’t know if he would make it back alive. Flying well into Germany, on a mission to bomb a large oil refining complex, the plane hit bad weather. “It was getting so bad that we couldn’t feel safe,” he recalled. Well into enemy territory, the plane was being shot at, when its nose came up and hit another plane. “Up we went and started in a spin at 20,000 feet.” The plane was spinning and falling at 350 miles per hour. Geren was ready to bail out, when the pilot turned on auto pilot stabilizing the airplane and flying it over the English Channel for a landing on allied soil. He went on These are the readings from the first well drilled by A.B. Geren in 1952.
& % , $' %+ ,
$
%
' #! && '
!,
#
% #
! && ,
%+!
%
!
$'$ # % ) #
! %
% !
"$# ,
%
, ! &'
%
'! & # % ) #
% % "
,
%
% $
%
$$ ,
%
%
'
%, (
!
%,
!(" #("
%
# ' , %" # '$# * !+## '! & $" &' # ' , # ! '! & $" &' # ' www.basinresourcesusa.com •May 2012
• Industrial/Commercial Surveillance • Security & Monitoring
505.327.NEXT May 2012 • www.basinresourcesusa.com
• Audio & Video • Conference Rooms
SALES@327NEXT.COM WWW.327NEXT.COM
58 BASIN RESOURCES to fly 25 more missions before returning stateside and going back to college. After his return, Geren also met his future wife, Judy, who was teaching in Marshall, Texas. “I saw her. The next week I proposed and she said, ‘Yes,’” said Geren, who has been married to his lovely wife ever since. The two stuck it out working and growing in the oil patch, while many couples didn’t. It was because of their commitment to each other and a strong sense of family. The first stop for the Gerens – in a long list of oil field communities – was Fort Worth, Texas. “Judy had $600, and I had none,” A.B. said. They went to see Sid Richardson, who was one of the Big Four back in the early days of the industry. “They were turning geologists loose. There were no
jobs.” Their next stop was Stanolind Oil and Gas, which became Amoco, in Littlefield, Texas. “Here I am with a brand new wife, and a brand new job. I would leave early in the morning and be in the field all day long,” A.B. said. Judy got a teaching certificate, and worked outside of cotton season, because when it was time to pick cotton, school let out. They had a small home, decorated with furniture A.B. made from dynamite powder boxes used in the fields. A.B. was not happy moving around a lot, so he quit working for Stanolind. Ready to address his field of study in geology and engineering, he began working for independent oil and gas companies in Beaumont, Texas. There he learned the ins and outs of the business. “They wanted you to do every-
thing,” he said. He negotiated and put together the deals, he bought equipment and would see contracts through to fruition. “I was working on these rigs and wells, learning the oil business. I was working with promoters and it was really a dashing thing,” A.B. said. “I drilled all of these wells up and down on the salt dome, which was the beginning of several companies including Texaco and Amoco.” During this exciting time in the industry, the Gerens' first child, Dana, was born. Not long after that, they moved to Oklahoma, where A.B. was making $500 a month. The family finally arrived in Farmington in 1952 to go to work for A.B.’s uncle, David Jackson Simmons. Everybody called him Jack, and he owned D.J. Simmons, an oil and gas
M a x i m i z e Yo u r W o r k V e h i c l e . . . We ca n h el p. . . a nd i n s ta l l i t! Tints and Trailers too 2401 San Juan Blvd Farmington • 326-6644
Like Us!
www.basinresourcesusa.com •May 2012
BASIN RESOURCES 59 company that is still going strong 60 years later. “We had a little office on Walnut Street in downtown Farmington. Jack rented it,” A.B. said. He went to work in that office with Colonel Wilson. He drilled his first well that year. He and Colonel got some property from El Paso, which had over-leased the land. “We had all of these wells drilled,” A.B. said, but then the market dropped out. “It got to where these wells we were drilling were costing $100,000, so it shut down for a while.” It was time again for the Gerens to move and they ended up in Oklahoma. “Moving was nothing for us back in those days. We didn’t have a house,” he explained. “You’ve got to go where the work is,” said John Byrom, president of D.J. Simmons.
Oil men have a sense of humor as is obvious in the old picture and saying on the wall of A.B.’s office.
“If you’ve got a good reputation, people want you,” A.B. added, saying he was hired to drill hundreds of wells
.#!2).-1 8
.30
in Louisiana. “I was a versatile character. … I sat on the wells, ran samples – I really loved that.” In the late 1960s the Gerens were once again in Farmington. In 1969, A.B.’s Uncle Jack Simmons died of a heart attack. The business went to his wife, Thelma Ford Simmons, but A.B. ran the company for her. “I’ve got promotion in my blood,” A.B. said. He did his best to keep the company running and making a profit. He drilled all of the Fruitland Coal Wells in the 1990s, and in 1991 he started Twin Stars, a well-head compression and equipment maintenance company. By 1994, he convinced another Texas A & M graduate, John Byrom, to join the business. “My first day was July 1, 1994,” Byrom said. A.B. described the move as a “A big
%+& +"
%04)#%
!'1 8 30)&)%$
+" 3+* !2%0
2( 57
)4%0
+..,&)%+$
32+%0 .32(1)$%
)'(5!7
$
.02(
!)-
.02(
)'(5!7
57
.32(
555 )#%#3"%%-2%0/0)1%1 #., May 2012 • www.basinresourcesusa.com
%62 2.
# .-!+$1
if,” but Byrom said he wanted to be here. “When A.B. hired me we started building and growing the company,” Byrom said. Today they have close to 60 employees. In 1999 they hired Jeff Parkes and the business has been on the rise since then. “We decided we were going to make a good sound company with John and Jeff,” A.B. said. “We’re expanding into Southeast New Mexico, following the money,” Byrom explained. “Here is slow, so we’ve got to go other places.” D.J. Simmons has a vision – to be the best. “Dealing with the cycles in the industry – our vision is to be the premier oil and gas company in the Rocky Mountains,” Byrom said. “It’s a lofty vision – not to grow for growth’s sake, but to grow smart and be a company that really cares for is employees and has an edge in the Four Corners and the Rockies. We think that’s where our focus is and where it will be.” And the company still has A.B. to keep things in check. “A.B. comes in every single day,” Byrom said. “I like what I do and they do. It's very gratifying to have people this good and everybody relates and they all care about each other,” A.B. said. “It's just outstanding – we're kind of like a big family.”
“THE PLACE TO BUY FOR THAT HARD TO FIT GUY”
Wrangler FRC - sizes up to 56!
Rasco Coveralls FRC - 5x to 7x in stock! 2 weight of cotton available 7.5 oz. cotton, 10 oz. cotton
Dickies Workwear Riggs Workwear by Wrangler Everything casual for the Big & Tall Man.
Hillside Plaza 30th & Main St. • Farmington
505-326-4772
Hours: 10am-6pm Mon-Fri • 10am-5pm Sat www.basinresourcesusa.com •May 2012
505-860-2284
Closed Loop Mud System
Complete Electrical Industrial Systems 505-327-6565
2405 Southside River Road, Suite A • Farmington, NM NM Lic. #356901 • www.nightlightelectric.com
62 BASIN RESOURCES
Al Kendrick:
Heâ&#x20AC;&#x2122;s seen a lot of industry changes since 1955 Margaret Cheasebro
When Al Kendrick went to work as a district engineer at the Oil Conservation Commissionâ&#x20AC;&#x2122;s Aztec office in 1955, there were almost 2,000 gas wells and a smattering of oil wells in the San Juan Basin. He was promoted to district superintendent in 1975, and when he retired in 1980, there were close to 20,000 gas wells. Many other changes occurred during his tenure. Among them was the office name. When Jerry Apodaca was governor, he established a cabinet type of government and renamed the OCC the
Al Kendrick started working for the Oil Conservation Commission in Aztec in 1955. Today the OCC is located at 1000 Rio Brazos Road. Heâ&#x20AC;&#x2122;s seen the number of gas wells go from 2,000 in 1955 to more than 20,000 when he retired in 1980.
0DG &RSLHU 6\QGURPH
'S F F %F M J W F S Z /P .J OJ NVN XXX 1B S LF S T * OD D PN
www.basinresourcesusa.com â&#x20AC;˘May 2012
BASIN RESOURCES 63 Oil Conservation Division, which became part of the state Energy, Minerals and Natural Resources Department After Kendrick retired, he remained in the oil and gas business by working for 24 ½ years as a consultant to independent oil and gas companies. He finally retired at the end of 2004. Now 87, Kendrick remembers his experiences in clear detail. After graduating from Lubbock High School and serving stateside in the Air Force during World War II, he earned a degree in petroleum engineering at Texas Tech. He worked as an onsite geologist for a mud logging company in Texas before moving to Aztec in 1955. “When I went to work at the Oil Conservation Commission, a kind of boom had just started,” he said. The OCC staff met with company
##
representatives and well operators to design a proposed set of rules for individual fields, which contained a group of wells. “In the office, we were kind of like a police department, processing the paperwork to make sure that everybody abided by the rules we all had set up,” he said. Sometime after he became district supervisor, a federal natural gas act required that every gas well be classified “based on a set of specific circumstances for offshore or onshore and type formations and different conditions,” Kendrick said. “To get everything on record, all of the existing wells had to be classified into this new system. This pleased the operators no end.” To help transition into that new classification system, Kendrick alternated
&+( .
spending one week in Santa Fe and one in Aztec. “The first winter I would go down in six or eight inches of snow and 20 below zero temperature and come back in six or eight inches of new snow and 20 below,” he said. He remembers the few oil wells that were active when he arrived in 1955. “There were four or five oil wells in a field over west of Farmington,” he said. “There were four or five oil wells in a field out in Largo Canyon area and a few oil wells down in an area at Hospah.” The oil wells west of Farmington were southwest of the town of Shiprock. They had long been magnets for people who liked to use the oil as gasoline. “They’d drive out to the field and
* Kendrick
&% (!*! .
,,, )&+*",!)* &% (!*!)+''#- &$ May 2012 • www.basinresourcesusa.com
65
!! )
#-9=15/ ;0- 6<9 695-9: #15+-
"
$
A '-330-),:
A 36> )+2 #-9=1+-:
A &)3=-:
A 36> )+2
A 091:;4): $9--:
A 9-):- $9<+2
A 5 :1;- '-330-), #-9=1+&)3=- "-7)19
A 9)+ &)3=-:
A #)3-:
Visual history
)51.63,
A 6>5 63- -4-5;15/ 36); 8<174-5;
#-9=1+- )+131;@
%" # "& ..1+)? !
( " #$ $
A A #)5 <)5 3=, )9415/;65 2@3- *1/9-,;66315+ +64
6?
Howard Jones opened his photography business in Farmington in 1957 at 1016 N. Butler Ave. in the Mesa Shopping Center. He opened a second store in July of 1972 at 110 W Main St. Over the years his photographs have told the visual history of the growth of the San Juan Basin. He worked with the Chamber of Commerce in 1980 to organize the first airshow in town and was involved in many committees and organizations over the years. A number of photos in this issue of Basin Resources are Howardâ&#x20AC;&#x2122;s pictures. We want to thank his family for helping us look back on progress the oil and gas industry has made over the years.
!" ##%" $ #$
(& ,0$&.(05 7 ,(%-*#/ 7 ""1+1* 0-. 1,"0(-, 1!.(" 0-./ 7 . " 0 ") 7 %$05 *2$/ /(,& 1!(,& $**'$ #
-4
7
.+(,&0-, %%("$ 6 4 $+ (* +()$ 3$**"'$")(," "-+
#-9=1+- =)13)*3)@: ) (-)9
www.basinresourcesusa.com â&#x20AC;˘May 2012
BASIN RESOURCES 65
From drilling, production to exploration
Coleman family a big part of oil and gas history George Coleman moved to Farmington in 1957 while working for Homco Fish & Rental Tool Co. In 1963, George started his own rental tool business named Texas Equipment Company. In 1970, George sold the company, took about six months off and then bought his first drilling rig. That was the beginning of Coleman Drilling. In 1976, he bought Big A Well Service, merged Coleman Drilling into Big A and also started Sunco Trucking.
After 20 very successful years in the drilling, workover rig and water hauling business, George sold the companies to Key Energy. In 1980, George had also formed Coleman Oil & Gas that served as the parent company for the service businesses and “dabbled” in oil and gas production. In 1996, once the rigs and trucks were sold, George turned his attention to the oil and gas exploration and production business. Today, G. Chris Coleman is in charge of Coleman Oil & Gas. Howard Jones photo.
Kendrick get a bucket of oil and put it in their gas tanks and drive back to town,” Kendrick recalled. “The company was selling oil at the well at 10 cents a gallon. The company sold gasoline (at a service station in Farmington) at 10 cents a gallon. If there wasn’t anybody out at the well, you got it for free.” It was called oil, Kendrick said, because it was primarily produced for oil, not gas. He remembers reading an anecdote in a publication about the oil wells
southwest of Shiprock. A man from Farmington wore a suit to a well to get oil for his car. “Something happened with the spray, and he got soaked with gasoline,” Kendrick said. “Somebody told him it ruined his suit. The man replied, ‘No, I got a cleaning job free.’” Among other changes Kendrick encountered was the development of horizontal drilling. A professor at New Mexico Tech called him one day at the
OCD, asking if there was a place he could drill a horizontal well. “On your desk is the only place I know of that you can drill a horizontal well,” Kendrick quipped. The professor had invented a new tool that drilled horizontally. The technique is now commonplace. Kendrick and his wife, Ruth, raised two sons, Randal and Neil. Randal died two years ago, and Neil recently retired from a long career in the oil and gas business with ConocoPhillips.
WE CARRY
PRODUCTS
Grille Guards • Headache Racks Bumper Replacements Tire Chains & more!
Parts and Service
5700 East Main • Farmington • 505-325-8826
OPEN TILL MIDNIGHT MONDAY - FRIDAY May 2012 • www.basinresourcesusa.com
INSTALLATION AVAILABLE
66 BasiN resoUrces
advertisers directory Advertising Specialties ..........................................6 1013 Schofield Farmington, NM 505-326-1710 Animas Valley Insurance........................................7 2890 Pinon Frontage Rd. Farmington, NM 505-327-4441 www.aviagency.com Antelope Sales & Service Inc. ................................5 5637 US Hwy 64 Farmington, NM 505-327-0918 www.NMASSI.com Armstrong Coury Insurance .................................37 424 E. Main Farmington, NM 505-327-5077 www.armstrongcouryinsurance.com Atlas Engraving...................................................56 211 W. Main St. Farmington, NM 505-325-2925 Aztec Machine.....................................................68 1715 N. 1st St. Bloomfield, NM 505-632-3113 • 800-699-3392 www.aztecmachinenm.com Bank of the Southwest ........................................52 320 W. Main Farmington, NM 505-325-1917 6570 E. Main Farmington, NM 505-326-6204 2 CR 6500 Kirtland, NM 505-598-5823 920 N. First Bloomfield, NM 505-632-0450 Basin Well Logging..............................................44 2345 E. Main Farmington, NM 505-327-5244 Big Red Tool, Inc. ................................................64 2010 San Juan Blvd. Farmington, NM 505-325-5045 Browns Shoe.......................................................15 124 W. Main St. Farmington, NM Calder Services ...................................................20 #7 RD 5859 Farmington, NM 505-325-8771 Cascade Bottled Water & Coffee Service ...............51 214 S. Fairview Farmington, NM 505-325-1859 • 800-416-1859 City of Farmington ..............................................27 www.flygreatlakes.com 1-800-554-5111 ConocoPhillips ......................................................3 PowerinCooperation.com
Corrpro...............................................................13 3900 Monrow Rd. Farmington, NM 505-325-1946 www.corrpro.com D&M’s Big & Tall..................................................60 30th & Main St. Farmington, NM 505-326-4772
Key Energy Services..............................................9 713-651-4300 performanceiskey.com LT Environmental, Inc. .........................................45 www.lterv.com
Ecosphere Environmental Services.......................15 www.ecosphere-services.com
M&R Trucking .............................................34 & 35 www.mrtruckinc.com •281 County Road 350 P.O. Box 600 Farmington NM 87499 (505) 334-5541 • (505) 334-3128 (fax) •Water Department 708 S. Tucker Farmington, NM 87401 (505) 326-5541 • (505) 326-6002 (fax) 5834 •Seven Rivers Hwy. Artesia, NM 88210 (575) 457-2070 (575) 457-2074 (fax) • 1 Elm Street Cokedale, CO 81082 (719) 845-0851 • (719) 845-0710 (fax)
Energy Pump & Supply........................................28 2010 Troy King Rd. Farmington, NM 505-564-2874
Mechanical Solutions, Inc. .....................................2 1910 Rustic Place Farmington, NM 505-327-1132
Envirovault .........................................................49
Millennium Insurance Agency...............................18 2700 Farmington Ave., Building A Farmington, NM 505-325-1849 • 800-452-9703 www.millnm.com
Defined Fitness...................................................67 1700 E. 20th St. Farmington, NM 505-325-3565 Dirt Bandits ........................................................53 101 E. Pion Farmington, NM 505-326-0111 www.dirt-bandit.com
Farmington CVB ..................................................29 505-326-7602 www.farmingtonnm.org Faver’s Homes ....................................................20 1028 W. Main Farmington, NM 505-327-9631 1-800-304-9850 www.favers-homes.com
Miller & Sons Trucking.........................................41 1110 W. Sategna Ln. Bloomfield NM 87413 505-632-8041 www.powerinnovations.com
First Financial Credit Union..................................50 3024 E. Main St. Farmington, NM 505-327-4478 www.ffnm.org
MTC Transport.....................................................64 505-215-1932 505-947-5351
Four Corners Community Bank .............................22 505-327-3222 New Mexico 970-565-2779 Colorado www.TheBankForMe.com Foutz-Hanon.......................................................58 2401 San Juan Blvd. Farmington NM 505-326-6644 Hands on Safety Service......................................12 1901 E. 20th St. Farmington, NM 505-325-4218 Halliburton .........................................................51 Henry Production, Inc..........................................60 601 S. Carlton Avenue Farmington, NM 505-327-0422 Ice Cube Enterprises ...........................................59 505-320-1671 IEI Industrial Ecosystems, Inc...............................40 49 CR 3150 Aztec, NM 505-632-1782 www.industrialecosystems.com
Next Level Home & Audio ....................................57 505-327-NEXT www.327NEXT.com Nightlight Electric................................................61 2405 Southside River Rd. Suite A Farmington NM 87401 505-327-6565 www.nightlightelectric.com Oil and Gas Equipment Corp.................................19 8 Road 350 Flora Vista, NM 505-333-2300 www.ogequip.com OKC Products, Inc................................................44 800-783-3234 • 970-532-1773 www.okcproducts.com O’Neal ...............................................................36 1000 Malta Ave. Farmington, NM 505-327-0462 www.onealsteel.com Outlaw Compressor Service..................................50 900 Sandstone Ave. Farmington, NM 505-325-0398
Parkers Office Products.......................................62 Farmington NM 505-325-8852 www.ParkersInc.com Quick Lane..........................................................42 5700 E. Main St. Farmington, NM 505-566-4729 Riley Industrial....................................................33 505-327-4947 San Juan College School of Energy ......................29 800 S. Hutton Farmington, NM 505-327-5705 www.sanjuancollege.edu San Juan Signs ....................................................26 736 E. Main St. Farmington, NM 505-326-5511 www.sanjuansigns.com San Juan United Way............................................21 505-326-1195 www.sjunitedway.org Serious Texas BBQ...............................................48 3475 E. Main St. Farmington, NM 505-327-9889 The Shoe Shoppe................................................43 Corner of Main & Butler Farmington, NM 505-325-5050 Souder, Miller & Associates..................................32 505-325-7535 • 505-325-5667 www.soudermiller.com South West Concrete Supply ................................63 2420 E. Main Farmington, NM 505-325-2333 www.southwestconcretesupply.com Sportsman for Fish and Wildlife ...........................13 www.sfwnm.com SureFire Burner Management ..............................21 www.surefire-controls.com Towne Place Suites..............................................23 4200 Sierra Vista Dr. Farmington, NM 505-327-2442 www.marriott.com/fmnts Twin Stars, LTD....................................................14 100 Iowa Ave. Bloomfield, NM 505-632-9202 7169 Roswell Hwy. Artesia, NM 575-746-6690 www.twinstars.com Wellcheck of Farmington .....................................64 Farmington, NM 505-327-9266 Ziems Ford Corners.............................................65 5700 East Main Farmington, NM 505-325-8826
www.basinresourcesusa.com • May 2012