June 2019 Outcrop by The Rocky Mountain Association of Geologists

OUTCROP Newsletter of the Rocky Mountain Association of Geologists

Volume 68 • No. 6 • June 2019

Registration now open for June trips! June 15, 2019 Dinosaur Ridge/Morrison NH Museum Location: Morrison, CO

Trip Limit 25 - Family Trip! Members and their families welcome

June 22-23, 2019

June 21-23, 2019 Green River Basin Trip

Fish Fossil Collecting

Location: Rock Springs, WY Trip Limit 15 - Optional Fly Fishing 6/24!

Location: Kemmerer, WY Trip Limit 16 - 2 spots left!

July 13, 2019

August 17, 2019

RMNP Glacial Geology Hike

Pennsylvanian Fossil Trip

October 12, 2019

October 14-18, 2019

Hygiene Sandstone

Permian Basin Trip Location: El Paso,TX & Carlsbad, NM

Location: Estes Park, CO Trip Limit 12

Location: McCoy, CO Trip Limit 30 - Family Trip

Location: Boulder, CO Trip Limit 20

Trip Limit 20

Trip details, when available, pricing and registration information at:

www.rmag.org.

email: staï¬&#x20AC;@rmag.org

OUTCROP | June 2019

1999 Broadway, Ste. 730, Denver, CO, 80202

fax: 888.389.4090

web: www.rmag.org

Vol. 68, No. 6 | www.rmag.org

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OUTCROP The Rocky Mountain Association of Geologists

1999 Broadway • Suite 730 • Denver, CO 80202 • 303-573-8621 The Rocky Mountain Association of Geologists (RMAG) is a nonprofit organization whose purposes are to promote interest in geology and allied sciences and their practical application, to foster scientific research and to encourage fellowship and cooperation among its members. The Outcrop is a monthly publication of the RMAG.

2019 OFFICERS AND BOARD OF DIRECTORS PRESIDENT

2st VICE PRESIDENT-ELECT

Tom Sperr tsperr@bayless-cos.com

Dan Bassett dbassett@sm-energy.com

RMAG STAFF EXECUTIVE DIRECTOR

Barbara Kuzmic bkuzmic@rmag.org

PRESIDENT-ELECT

TREASURER

Jane Estes-Jackson janeestesjackson@gmail.com

Eryn Bergin eryn.bergin@aec-denver.com

1st VICE PRESIDENT

TREASURER-ELECT

Heather LaReau heatherthegeologist@gmail.com

Chris Eisinger chris.eisinger@state.co.us

Kira Timm kira.k.timm@gmail.com

1st VICE PRESIDENT-ELECT

SECRETARY

Ben Burke bburke@hpres.com

Anna Phelps aphelps@sm-energy.com

Courtney Beck Courtney.Beck@halliburton.com

2nd VICE PRESIDENT

COUNSELOR

Sophie Berglund sberglund@raisaenergy.com

Donna Anderson danderso@rmi.net

Kathy Mitchell-Garton kmitchellgarton@rmag.org CO-EDITORS

Jesse Melick jesse.melick@bpx.com MEMBERSHIP ENGAGEMENT SPECIALIST

Debby Watkins dwatkins@rmag.org

ADVERTISING INFORMATION

Rates and sizes can be found on page 3. Advertising rates apply to either black and white or color ads. Submit color ads in RGB color to be compatible with web format. Borders are recommended for advertisements that comprise less than one half page. Digital files must be PC compatible submitted in png, jpg, tif, pdf or eps formats at a minimum of 300 dpi. If you have any questions, please call the RMAG office at 303-573-8621. Ad copy, signed contract and payment must be received before advertising insertion. Contact the RMAG office for details. DEADLINES: Ad submissions are the 1st of every month for the following month’s publication. The Outcrop is a monthly publication of the Rocky Mountain Association of Geologists

Vol. 68, No. 6 | www.rmag.org

PROJECTS SPECIALIST

3 3

DESIGN/LAYOUT

Nate Silva nate@nate-silva.com

WEDNESDAY NOON LUNCHEON RESERVATIONS

RMAG Office: 303-573-8621 Fax: 888-389-4090 staff@rmag.org or www.rmag.org

Outcrop | June 2019 OUTCROP

RMAG July Short Course Unconventional Resource Assessment and Valuation (URAV) Bryce Kalynchuk, Rose & Associates Rose & Associates’ short course focuses on a staged investment approach for dealing with low permeability resource size and value characterization of candidate multi-well projects. URAV emphasizes the need to develop the participant’s competency in the use of probability, uncertainty, and aggregation to assess and develop unconventional resources. The premise for this short course is that sound estimation of key engineering, geotechnical, and economic parameters is essential for maximizing profitability. Type curves and sequential aggregation techniques are discussed. Composite mapping strengths and chance assessment guidelines for tight sands, carbonates and shales are provided. Due to uncertainty and the huge capital outlays at risk, unconventional resource characterization requires a staged, probabilistic approach conducive to more informed decision-making and portfolio management.

July 25, 2019 1999 Broadway

$250/members $275/non-members Register at www.rmag.org email: staﬀ@rmag.org

phone: 303.573.8621

OUTCROP | June 2019

1999 Broadway, Suite 730, Denver, CO 80202

fax: 888.389.4090

web: www.rmag.org

Vol. 68, No. 6 | www.rmag.org

follow: @rmagdenver

OUTCROP Newsletter of the Rocky Mountain Association of Geologists

CONTENTS FEATURES

DEPARTMENTS

22 Lead Story: Evaluations Geology, A Growing Sub-Discipline

6 2019 RMAG Summit Sponsorship

ASSOCIATION NEWS

16 Presidentâ&#x20AC;&#x2122;s Letter

2 RMAG On the Rocks Field Trips

21 In The Pipeline

4 RMAG July Short Course

27 RMAG Luncheon programs: Jeffrey Aldrich

11 RMAG Summit Sponsors

12 RMAG May 2019 Board of Directors Meeting

13 RMAG August Short Course

30 RMAG Luncheon programs: Ken Kittleson

15 New RMAG Publication: Subsurface Cross sections

32 Welcome New RMAG Members!

31 Volunteer for Dinosaur Ridge!

32 Outcrop Advertising Rates

33 2019 Outcrop Cover Photo Competition

34 Advertiser Index

Vol. 68, No. 6 | www.rmag.org

COVER PHOTO Bear Lake, Rocky Mountain National Park Photo Credit to Courtney Beck

34 Calendar

OUTCROP | June 2019

Vol. 68, No. 6 | www.rmag.org

The Rocky Mountain Association of Geologists 1999 Broadway, Suite 730, Denver, CO, 80202 phone: 303.573.8621 | fax: 888.389.4090| email: staff@rmag.org

November 6, 2018 Dear Partners, 2018 was a very successful year at Rocky Mountain Association of Geologists. Our 2018 Summit Sponsors made it possible for us to host 37 separate educational and technical events, and 4 social events, in addition to assisting with overall operations. We simply cannot thank you enough! All of us here at RMAG are very excited for the 2019 Summit Sponsorship program, and we think you will be too. Program levels, benefits and pricing are remaining the same as 2018, but with one attractive addition, website advertising. RMAG has purchased new association management software (AMS) and a custom designed website. The new website will have a “click to open” advertiser’s page. 2019 Summit Sponsors, at all levels, will have ads placed on the advertiser’s page in addition to their monthly ads in The Outcrop. Platinum and Gold level Summit Sponsors will have the added benefit of publishing articles on the advertiser’s page. The advertiser’s page was modeled in part by the AAPG Explorer website, where companies can present their work to the public. Another Summit Sponsor website benefit will be company logos continually scrolling on the home page. Summit Sponsorship also includes no-cost training and social activities. These benefits are to use as you wish, for staff, vendors or guests. RMAG provides some of the highest quality, and industry relevant trainings in the country. We also like to have fun while networking with our annual golf tournament, and various other social activities throughout the year. If you company hasn’t previously been an RMAG Summit Sponsor, or it has been awhile since you were, please consider becoming a Summit Sponsor! RMAG maintains a membership base of 1800 throughout the year, the largest membership base of any geological-based association in the Rocky Mountain region, assuring your company broad exposure. Again, a sincere thank you to everyone who has supported RMAG throughout 2018! We are looking forward to our continued partnership and making new partners in 2019. Please contact me directly at bkuzmic@rmag.org , or 303-573-8621 x 2, if your or your company have any questions. Best Regards,

Barbara Kuzmic Executive Director Rocky Mountain Association of Geologists

Vol. 68, No. 6 | www.rmag.org

OUTCROP | June 2019

2019 RMAG Summit Sponsorship Platinum, Gold, Silver Sponsorship Level Contribution Level

Platinum

Gold

Silver

$10,000

$5,000

$2,500

$9,500 for returning 2018 sponsors

$4,500 for returning 2018 sponsors

RMAG Website Benefits

üMedium Logo

Large Logo & Link 4 Articles & 4 Large Ads

Medium Logo 2 Articles & 2 Medium Ads

The Outcrop (receive benefits for 12 issues, monthly online publication)*

ü Full page ad

ü 2/3 page ad

ü 1/2 page ad

Company logo listed as a 2019 annual sponsor in the Outcrop

üLarge Logo

üMedium Logo

Company logo looping in PowerPoint presentation

Company logo placed on 2019 Summit Sponsor signage at all monthly luncheons

üLarge Logo

üMedium Logo

Opportunity to offer RMAG approved promotional items at luncheons

Company logo on 2019 Summit Sponsorship Website Page Articles & Ads on Special Advertiser's Website Page

4 Small Ads

Publications

Monthly Luncheons

2019 Continuing Education Event Tickets - Choice of 2 Events Platinum

Gold

Silver

Please choose two events and indicate your selections below. Each box counts as one event.

4 Core Workshop Tickets

2 Core Workshop Tickets

2 Short Course Tickets

1 Short Course Ticket

2 Fall Symposium Tickets (without Hot Plays Core Workshop)

1 Fall Symposium Ticket (without Hot Plays Core Workshop)

2 Fall Symposium Tickets - including Hot Plays Core Workshop (counts as two selections)

1 Fall Symposium Ticket - including Hot Plays Core Workshop (counts as two selections)

2 half price Tickets to the Fall Symposium and Hot Plays Core Workshop

* 12 months of Outcrop Advertising: Company logos and advertising information must be received no later than the 20th of the month in which you register to receive 12 total months. If received after the 20th of the month, advertising will start in the month following the month after you register, and you will receive 11 total months (e.g., ads received March 25th will appear in the May issue). All logos and advertising information must be received no later than March 31, 2019 to be included on Summit Sponsor signage. Previous Summit Sponsors only need to submit advertising information.

OUTCROP | June 2019

Vol. 68, No. 6 | www.rmag.org

2019 RMAG Summit Sponsorship Platinum, Gold, Silver RMAG 2019 Events

Platinum

Gold

Silver

Additional Tickets

Purchase additional 1/2 Price Continuing Education Event Tickets

ü3 total tickets for any

event; excludes Fall Symposium and Hot Plays Core Workshop

ü2 total tickets for any

event; excludes Fall Symposium and Hot Plays Core Workshop

No half price tickets at this level

RMAG Luncheons

ü 4 Total Tickets through

ü 2 Total Tickets through

ü 1 Total Tickets through

Player tickets

ü 2 Teams of Four Players

ü 1 Team of Four Players

ü 2 Individual Players

Company logo placed in Golf Tournament PowerPoint

üLarge Logo

üMedium Logo

Company logo placed on 2019 Summit Sponsor signage

üLarge Logo

üMedium Logo

Player tickets

ü 2 Teams of Five Players

ü 1 Team of 5 Players

ü 2 individual players

Company logo placed in Sporting Clay Tournament PowerPoint

üLarge Logo

üMedium Logo

Company logo placed on 2019 Summit Sponsor signage

üLarge Logo

üMedium Logo

Event tickets

ü 4 Tickets

ü 2 Tickets

Company logo placed on 2019 Summit Sponsor signage

üLarge Logo

üMedium Logo

Company logo looping in PowerPoint presentation

üLarge Logo

üMedium Logo

Event Tickets

2019

Golf Tournament

Sporting Clay Tournament

Rockbusters Bash

Vol. 68, No. 6 | www.rmag.org

OUTCROP | June 2019

2019 RMAG Summit Sponsorship All sponsor benefit event tickets must meet RMAG event registration deadlines. All benefits end 12 months after registration. Discount to returning 2018 Summit Sponsors for 2019 Summit Sponsors only.

RMAG 2019 Summit Sponsorship Opportunities Platinum Sponsor Gold Sponsor Silver Sponsor

Specify type of payment on signed form, and send form and logo to staff@rmag.org. No benefits will be provided without payment. Company: Company Representative: Address: City/State/Zip: Phone:

Email:

Payment by Credit Card Select a card: Amex M/C VISA Discover Name as it appears on Credit Card:____________________________________________________ Credit Card #: Exp. Date: _________________ Security #: Signature: Payment by Check Mail checks payable to RMAG: Rocky Mountain Association of Geologists (RMAG) 1999 Broadway, Suite 730 Denver, CO, 80202

RMAG events are subject to change. Cancellation or rescheduling of events does not give sponsor right to refund. Summit Sponsors will receive benefits at any new events added into the RMAG schedule for 2019.

Thank you for your generous support!

email: staff@rmag.org

phone: 303.573.8621

OUTCROP | June 2019 1999 Broadway, Ste. 730, Denver, CO, 80202

fax: 888.389.4090 web: www.rmag.org Vol. 68, No. 6 | www.rmag.org follow: @rmagdenver

The Rocky Mountain Association of Geologists

2019 Summit Sponsors PLATINUM SPONSOR

GOLD SPONSORS

SILVER SPONSORS

Vol. 68, No. 6 | www.rmag.org

OUTCROP | June 2019

RMAG MAY 2019 BOARD OF DIRECTORS MEETING By Anna Phelps, Secretary aphelps@sm-energy.com

OUTCROP | June 2019

was held on May 15, 2019 at 4:00 PM. All board members expect Dan Bassett and Heather LaReau were present. Director Barbara Kuzmic reported that the new website is up and running. And it’s a beauty! Make sure to check it out. Membership is up 23 members from last month to 1,593 members. Publication sales were relatively flat in April. Golfers are eagerly signing up for the Golf Tournament on May 29. Treasurer Eryn Bergin reported that April revenue was as expected and that expenses remain slightly high due to continued cost from the office move. The Continuing Education Committee has been

Happy outcrop season fellow outcrop lovers! I think it’s safe to say it is officially time to hit the outcrop. Field trips have commenced, field camp will be starting soon, and the snow is (finally) melting. If you find yourself on a new or unfamiliar outcrop this summer, there are several geologic map phone apps out there that will tell you the name and age of the formation you’re standing on. Thanks to Laura Wray for introducing me to this and I must say it’s my latest technological obsession! I am currently writing from Quaternary gravel on the Edwards Plateau (as I sit in my hotel room at AAPG ACE in San Antonio). Enjoy those outcrops friends! The May meeting of the RMAG Board of Directors

»»CONTINUED ON PAGE 14

Vol. 68, No. 6 | www.rmag.org

RMAG August Short Course 8/27/2019 Location TBD Register at www.rmag.org Price: $250/members $275/non-members

Dr. John Curtis & Catherine Donohue, GeoMark Research

Practical Aspects of Petroleum Geochemistry for Conventional and Resource Plays This one-day applied geochemistry course will cover source rock evaluation, crude oil geochemistry and correlation, natural gas geochemistry, and the application and integration of reservoir geochemistry.

email: staďŹ&#x20AC;@rmag.org

phone: 303.573.8621

1999 730, Denver, CO, 80202 Vol. Broadway, 68, No. 6 Suite | www.rmag.org

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follow: @rmagdenver OUTCROP | June 2019

BOARD OF DIRECTORS MEETING The Educational Outreach Committee has a new Outreach Coordinator, Kristine Mize-Spansky, and a new Volunteer Coordinator, Jaime Kostelnik. The committee has been busy recruiting new members, making contacts, and planning new school events. For the May geologic news, we’re going extraterrestrial. Nature Geoscience published an article last week reporting shallow seismic activity on the Moon. Apollo-era seismometers recorded “moonquakes” from 1969 and 1977 that suggest that the Moon may be tectonically active. How’s that for some far-out news!

»»CONTINUED FROM PAGE 12

working hard on planning the May, July, and August short courses and has a great line-up of luncheon talks planned for the rest of the year. The committee is looking for new members, so you want to be part of this busy and dynamic committee, and have ideas for short courses or luncheon speakers, consider joining. The Membership Committee Mentorship Program had a recent event at the new RMAG office to get a preview of the upcoming fieldtrip to Roxborough State Park and had a productive discussion about the Mentorship Program as a whole. The Publications Committee is excited to announce that there is a new Special Publication out. Check out the new website to read “Subsurface Cross Sections of the Southern Rocky Mountain Basins,” edited by Larry Rassmussen, Jon Payne and Stephen Cumella . On the Rocks has already had two successful fieldtrips and has many more lined up for the summer, including a new trip planned to the San Juan Basin this fall.

SOURCE:

Watters, T.R., Weber, R.C., Collins, G.C., Howley, I.J., Schmerr, N.C., Johnson, C.L. (2019) Shallow seismic activity and young thrust faults on the Moon. Nature Geoscience, https://doi.org/10.1038/s41561019-0362-2DO.

Providing geoscience expertise and technology to the field and office since 1981

Well Site Geology Geosteering - On site & Remote Rock Analytics Geologic Prognosis/Mapping Oil Field Safety Training - PEC Regulatory Representation

sunburstconsulting.com

406.259.4124 OUTCROP | June 2019

Vol. 68, No. 6 | www.rmag.org

New RMAG Publication! Subsurface Cross Sections of the Southern Rocky Mountain Basins In 1977 RMAG published Subsurface Cross Sections of Colorado, a compilation of stratigraphic cross sections from all Colorado basins. This publication has been a valuable resource for geologists wanting to establish a basis for stratigraphic correlations. Well logs were presented on all cross sections, which was very helpful in understanding the log response for the different stratigraphic picks. During the 41 years since this publication, numerous wells have been drilled and digital logs now allow cross sections to be easily enhanced with color. In this update of the 1977 publication, we have expanded this volume to the southern Rocky Mountain basins. Some of the cross sections in this volume are timely in that there are emerging plays associated with the basin and stratigraphic interval represented in the cross sections.

Member price: $60 Non-member: $75 Purchase and download at www.rmag.org

email: staďŹ&#x20AC;@rmag.org Vol. 68, No. 6 | www.rmag.org

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OUTCROP | June 2019

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PRESIDENT’S LETTER By Tom Sperr

Prophets of Doom or “Predictions are hard to make, especially about the future.” Paul Ehrlich wrote his best seller, The Population Bomb, in 1968, describing how unchecked, Malthusian population growth would soon bring extreme shortages of basic materials and food. Hundreds of millions could starve to death in the 1970’s and England would cease to exist by 2000 (did Ehrlich foresee Brexit?) The Limits of Growth (1972) echoed many of the same scary scenarios as the Bomb. Limits was based upon a computer simulation of the earth’s support system in which resources grew at a linear rate while the population grew exponentially. Limits projected date for the collapse of society was around 2072. Both Bomb and Limits were common required reading for college students and their philosophy permeated the young. Doom and gloom; we were all to soon starve to death in the dark.

The late 1960’s were traumatic across the country. The war in Vietnam and the associated protests, riots, drugs, sex and rock and roll were all in the headlines and could be seen live in places close to my home (well not Vietnam.) My uncle’s hardware store burned to the ground in a Detroit riot. I remember driving thorough burnt out parts of Cleveland, too. My high school class went to the first Earth Day April 27, 1970, at nearby Kent State. Kent State was the local liberal arts college known for its art, English and music majors. It had a beautiful campus and I remember well that day the blossoming trees and blossoming coeds. It was hard to believe that by May 4th four students would be dead, shot by the national guard after mass war protests and the burning of the ROTC building. The late 1960’s really seemed to be the end of times.

»»CONTINUED ON PAGE 18

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OUTCROP | June 2019

Vol. 68, No. 6 | www.rmag.org

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OUTCROP | June 2019

PRESIDENT’S LETTER This practice of intense use of fertilizers, pesticides and hybrid crops was introduced in the 1940’s, but really took off in the 1960’s. Estimated world-wide famine deaths per decade from 1920 through 1960 had averaged around 15 million people. It was no wonder that Bomb’s and Limits’ doomsday scenarios were thought to be possible. Since the 1960’s famine deaths dropped to 2 million per decade. Today’s food shortages are the result of wars, political decisions and transportation problems. We now produce enough food to feed the earth’s 7.5 billion humans while it had been difficult to feed the 3 billion in 1960. The second game-changing factor is the mineral pyramid. For those of you geologists who weren’t paying attention in class, the concept is simple. The easiest to find minerals are at the top of the pyramid and their quantity is quite small. As we descend the pyramid it spreads out, representing increasing quantities with increasing difficulty (cost) to harvest the minerals. Just imagine wandering into desert Nevada in the 1870’s and picking load silver off the ground versus

»»CONTINUED FROM PAGE 16

Looking back from 2019, it certainly appears that The Population Bomb’s timetable for the end of society was a little off. I would be happy to wager that the Limits to Growth timetable and outcomes are wrong, also. Two factors that were hard to model coincided to foil this prophesized apocalypse: technology and the mineral pyramid. Technology, the Green Revolution, doubled crop yields in many areas of the world.

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OUTCROP | June 2019

Vol. 68, No. 6 | www.rmag.org

President’s Letter

»»CONTINUED FROM PAGE 18 today’s mining low grade, highly-disseminated silver deposits in which tons of rock are excavated to produce ounces of silver. Humans have not run out of basic materials as projected. In many cases we have greater identified supply today than we ever did. Remember the discussions just ten to fifteen years ago of the Hubbert Curve and Peak Oil. The United State’s oil production rate had peaked at nearly 10 million barrels per day in the early 1970’s. And despite an increasing world oil price, U.S. daily production fell to a low point of 5 million barrels per day in 2006. Reuters now estimates that the US will produce in excess of 12 million barrels per day by the end of this 2019. Imagine the potential production from other countries where horizontal drilling and fracture stimulation are not yet common. Technology has let us reach farther down the mineral pyramid for lower grade reservoirs at a reasonable cost. Thank you, engineers. We no longer worry about widespread famines, although we certainly should do more to reduce world hunger. We no longer worry about the lack of basic materials and energy to keep our modern society running and increasing the wealth of the entire world. The world’s population continues to grow, but at a gradually slowing rate. We are estimated to add another 4 billion people by 2100 and hopefully level off short of 20 billion. Perhaps we

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»»CONTINUED ON PAGE 20

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OUTCROP | June 2019

PRESIDENT’S LETTER Mass. :Rivercity Press, 19751971. Donella H. Meadows [and others]. The Limits To Growth; a Report for the Club of Rome’s Project on the Predicament of Mankind. New York :Universe Books, 1972. https://ourworldindata.org/famines accessed 5-21-19. https://www.infoplease.com/world/population-statistics/total-population-world-decade-1950-2050 accessed 5-21-19. https://energyeducation.ca/encyclopedia/Hubbert%27s_peak accessed 5-21-19. https://www.reuters.com/article/us-usa-oil-eia-outlook/u-s-crude-output-to-surpass-12-million-barrels-per-day-by-mid-2019-eia-idUSKCN1NB2F5 accessed 5-21-19. https://www.washingtonpost.com/news/wonk/ wp/2015/08/17/5-ways-the-world-will-lookdramatically-different-in-2100/?utm_term=.8eb363fa438f accessed 5-21-19.

»»CONTINUED FROM PAGE 19

don’t have to worry about over-population. Today’s greatest worry seems to be climate change. I hope today’s prophets of climate doom are as far off base as those prophets of the 1960’s and 1970’s. That doesn’t mean we should sit on our hands and not try to alleviate some of our climatic problems. But we might spend more time considering the true cost and efficacy of some proposed solutions and keep in mind we will soon need to care and feed for another 4 billion people. We may not be able to give up on the hydrocarbon habit and may also need alternative energies to maintain, and hopefully, increase the world’s standard of living into the next century. Technology and the mineral pyramid will likely sustain us for a while longer on this planet. https://quoteinvestigator.com/2013/10/20/no-predict/ accessed 5-21-19. Ehrlich, Paul R. The Population Bomb. Rivercity,

OUTCROP | June 2019

Vol. 68, No. 6 | www.rmag.org

IN THE PIPELINE JUNE 4, 2019

JUNE 7, 2019

JUNE 15, 2019

RMS-SEPM Luncheon. Speaker: Lisa Stright. “Template-Based Modeling: Bridging the Gap Subsurface Reservoir Characterization.” Wynkoop Brewing Co. 11:30 AM-1:30 PM.

GPA Midstream Rocky Mountain Chapter Golf Tournament. Riverdale Golf Club. Brighton, CO.

RMAG On the Rocks Field Trip Dinosaur Ridge/Morrison Natural History Museum.

JUNE 12, 2019

RMAG On the Rocks Field Trip. Green River Basin.

SPE Summer Social. Denver Athletic Club Rooftop. 5PM.

WEN Leadership Series. RSVP Link: http://bit.ly/ WENCOEvents

JUNE 22-23, 2019

JUNE 5, 2019

JUNE 13, 2019

RMAG Luncheon. Speaker Jeff Aldrich. “‘Sweet Spot’ Identification and Optimization in Unconventional Reservoirs.” Maggiano’s Downtown Denver.

DPC Speaker Series. Email: info@ denverpetroleumclub.com

JUNE 27, 2019

JUNE 14, 2019

JUNE 27, 2019

DIPS Luncheon. Members $20 and Nonmembers $25. For more information or to RSVP via email to kurt.reisser@ gmail.com.

RMS-SEPM June Geology Brewery Rendezvous. Visit Breweries in Denver. 5:007:00 PM. www.rmssepm.org

JUNE 6, 2019 GPA Midstream Rocky Mountain Chapter Luncheon. Denver Athletic Club Ballroom. 10:30 AM.

JUNE 21-23, 2019

RMAG On the Rocks Field Trip. Eocene Fish Fossil Collecting.

GPA Rockies Game.

Are you following us on Twitter?

Vol. 68, No. 6 | www.rmag.org

OUTCROP | June 2019

LEAD STORY

EVALUATIONS GEOLOGY A Growing Sub-Discipline By Nicholas Kernan

OUTCROP | June 2019

to quickly and effectively gauge the value of an oil and gas property. In this rapidly changing labor market, most petroleum geologists could benefit from adding some tools from the evaluations geology role to their own tool box. Like the geochemist, the evaluations geologist arises from the intersection of geology with other disciplines. In this case, those disciplines are reservoir engineering and mineral economics. An evaluations geologist must be able to not only understand the rocks, but also understand production forecasting, discounted cash flows, and to an extent, oil and gas contract law. Work products include traditional maps that describe a reservoir (such as an original-oil-in-place map), but also products that describe the recoverable reserves or economics behind oil and gas acreage position (such as tier-one versus tier-two well locations and their net-present-value or internal-rate-of-return). Evaluations geologists also quantify risk and uncertainty, often helping define reserve categories (proven-developed-producing, proven-undeveloped, etc.) and using probabilistic approaches that yield P10, P50,

The field of geology has always been chock full of sub-disciplines. Specialists abound. Consider petrophysicists, geomodelers, micro-paleontologists, detrital petrologists, and so forth. Some of these sub-disciplines are the result of greater specialization within the field of geology itself, for example, the structural geologist. Others are the product of a marriage between geology and another discipline, for example, the geochemist. The shale revolution has brought new sub-disciplines to the forefront. For example, operations geologists (individuals capable of planning, monitoring, and geosteering horizontal wells) are in high demand. The large quantities of digital data has produced geology-focused bigdata scientists and there is an ever greater need for people at the intersection of geology and computer science. No formal title for this role exists yet, but I have heard geoprogramology proposed. Another sub-discipline that is gaining traction is evaluations geology. An evaluations geologist is specifically tasked with evaluating acquisition and divestiture opportunities, so the role works hand-in-hand with reservoir engineers and business development staff

ÂťÂťCONTINUED ON PAGE 24

Vol. 68, No. 6 | www.rmag.org

Sk Re i s Q ll: P erv ua ro o nt du ir E ifie c s tion ngi R e F ne se or er rv ec ing oi as r R ti isk ng

s s ic Flow om h sk on as Ri Ec d C et al te rk er un Ma in o s M isc tifie D n ill: ua Sk Q

Reservoir + Economics

Ev E c al ua on tio om ns ist

ns o i at eer u al gin v E n E

Mineral Evaluation

Reservoir + Economics + Geology

Geology + Reservoir

Evaluations Geologist

Geology + Economics

Geology Skill: Estimates Original Oil/Gas In-Place Quantifies Geologic Risk

Arizona Wave, a famous rock formation in Pariah Canyon. Photo by Mikhail Kolesnikov, shutterstock.com Vol. 68, No. 6 | www.rmag.org

OUTCROP | June 2019

LEAD STORY

»»CONTINUED FROM PAGE 22

subject. To learn the basics of mineral economics, there probably is no better class than the one week and P90 outcomes. Nevertheless, the goal is to ultishort course taught at the Colorado School of Mines mately get to a dollar-per-acre value for a given acretitled, Economic Evaluation and Investment Decision age position, or a total-value for a company or asset. Methods (often referred to as Stermole and StermoTo gain these skills requires a willingness to le, after the father and son duo that originally taught stretch beyond one’s comfort zone. Geologists genthe class together). Courses on oil and gas contract erally want to stick to doing geology. After all, we law are regularly offered by the Rocky Mountain got into this field because we like rocks, not spreadMineral Law Foundation, a well-established organisheets. But if the opportunity arises to learn decline zation dedicated to understanding the laws and iscurve analysis, or other more complex forms of prosues affecting the development of energy resources. duction forecasting, jump on that opportunity. This A subscription to the Oil and Gas Investor magazine can be as simple as sitting down with a reservoir can help one keep tabs on industry activity and the engineer or as extensive as taking a course on the market forces driving the oil and gas sector. But probably the best way to pick up tools for an evaluations geologist toolbox is to not stay siloed within a rigid geology department. Find opportunities to engage co-workers in the reservoir, land, legal, and business deSolid Performance. Fluid Thinking. velopment departments. Ask them if you can take on a side project that exposes you to what they do. After all, learning-by-doing will always be more beneficial than formal instruction. Often times, there is confusion between the title of evaluations geologist and mineral appraiser. Traditionally, a person valuing oil and gas properties would have probably been referred to as a mineral appraiser. However, the title “Appraiser” in the United States tends to require some form of certification and the word “Mineral” does not directly describe the geologic skill set an evaluations geologist brings to the table. Thus, the title of mineral appraiser has never really gained traction within the petroleum geology community 303-398-0302 | info@gwogco.com | www.gwogco.com while that of evaluations geologists is growing. The rise in demand for

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Vol. 68, No. 6 | www.rmag.org

LEAD STORY free-cash-flow, leaves many large banks with limited investment opportunities in an industry that has to front-load the majority of its costs. Less traditional private equity firms are rapidly filling this investment gap, and they are sharp enough to hire a few technical staff of their own to carry out their due diligence. The multi-disciplinary skill set evaluations geologists offer is also attractive to oil and gas startups. Whether they follow an E&P, DrillCo, or non-operating strategy, start-ups tend to have lean staffs, and as such like to hire geologists that can also do decline-curve analysis, build a discounted cash flow, and are familiar with lease/deed agreements. Furthermore, many start-ups are in the business of acquiring assets through direct purchases (rather than ground-up leasing) and thus benefit from individuals with some amount of M&A experience. You will even find evaluations geologists in the

»»CONTINUED FROM PAGE 24

evaluations geologists is mostly the result of merger and acquisition (M&A) activity. One can find evaluations geologists in many banks and financial consulting firms, both of which are not necessarily the traditional workplace for a professional geologist, but both of which are heavily engaged in M&A deals. It only takes a cursory look through the Oil and Gas Investor magazine to see the numerous advertisements of firms offering M&A services. M&A is big business, and as the shale revolution continuous to mature, it is likely that there will be more consolidation of assets and increased demand for people in the M&A sector. Private equity firms are also particularly keen to hire evaluation geologists as well. The recent commodity downturn scared many traditional Wall Street investors from putting money into E&P companies. The somewhat reductionist theory that a company must, at any expense, have ample

»»CONTINUED ON PAGE 26

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Vol. 68, No. 6 | www.rmag.org

www.lmkr.com OUTCROP |www.lmkr.com June 2019

LEAD STORY acquire lands held by private mineral owners first, federal and tribal lands tend to remain islands of undeveloped acreage. As shale plays mature, these undeveloped public and tribal lands are now receiving increasingly more interest, particularly in New Mexico, Colorado, Oklahoma, and North Dakota. M&A consulting firms, private equity investors, start-ups, and the federal government are likely to continue to play a large role in the U.S. onshore, oil and gas industry. Since geologists have abundantly characterized some of the largest unconventional reservoirs in this country, they increasingly need to find a way to provide value beyond the traditional role of an exploration staff geologist. Given this new reality, I encourage oil and gas industry professionals to expand their skill set into some tasks traditionally reserved for reservoir engineers and mineral economists, so that they may be able to take advantage of the opportunities that are appearing in the growing sub-discipline of evaluations geology.

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federal government. The Division of Minerals Evaluation is a relatively young agency within the Appraisal and Valuation Services Office of the Department of Interior composed mostly of evaluations geologists tasked with establishing the fair market value of oil and gas (and other minerals) on Federal and Native American lands. Because energy companies tend to

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Vol. 68, No. 6 | www.rmag.org

RMAG LUNCHEON PROGRAMS Speaker: Jeffrey Aldrich | June 5, 2019

‘Sweet Spot’ Identification And Optimization In Unconventional Reservoirs By Jeffrey Aldrich seamlessly together in oil and gas fields. We define the optimum area for field development in unconventional fields as the intersection of three clear quality factors, Organic Quality (OQ), Rock Quality (RQ) and Mechanical Quality (MQ) that each are composed of several key characteristics.

The term “Sweet Spot” is often used to describe the area of a play, or a license, that will produce the highest rate of return under the currently employed technology. This definition, itself, combines the disciplines of economics, completion technology and reservoir description; disciplines that traditionally have not worked

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Steer & Study Horizontals, with Confidence!

SES is for geologists who are dissatisfied with drafting or gridding-tool methods of geosteering horizontal wellbores. SES is 3D technical geosteering software that makes wellbore stratigraphic tracking quick-n-easy, accurate, and easily shared. Unlike any other geosteering software,SES provides a complete suite of software features to handle your horizontal drilling needs. To learn more and get a free trial, please contact us at:

Vol. 68, No. 6 | www.rmag.org

Phone 720-279-0182 support@makinhole.com

OUTCROP | June 2019

RMAG LUNCHEON PROGRAMS environment which must be proactively maintained. A large part of all unconventional plays, and staying in the “Sweet Spot” is correctly managing and aligning the surface issues of regulation, HSE, and fiscal environment with fit for purpose operations aligned with sub-surface heterogeneities. The model presented here is designed to keep all disciplines aligned on both a longterm commercial goal and have the ability to rapidly adapt to changes, either in the sub-surface reservoir or in various surface conditions, all which influence the size of the “Sweet Spot”.

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As the reservoir changes and decreases in the quality of any one factor the “Sweet Spot” will shrink and changes must be made to what we identify as the “Fit for Purpose Operations”. This alignment of the Operations with the Reservoir can enlarge the “Sweet Spot” thus increasing the area available for development or the profitability. There are two additional considerations that are made to the baseline equation, that of the fiscal environment, of which the price of the product is usually not within the operator’s control, and the regulatory and HSE JEFFREY ALDRICH is a Vice President and Senior Geoscientist with MHA Petroleum Consultants Inc. in Denver. He has over 40 years of global oil and gas experience working from frontier exploration through appraisal to large development projects. His expertise is in unconventional reservoirs, prospect evaluation, reserve determinations and multidiscipline and multi-culture team dynamics. Jeff is the primary

OUTCROP | June 2019

Petroskills instructor for “Evaluating and Developing Shale Reservoirs (SRE)” “Unconventional Reserve and Resource Evaluation (URRE)” and “Prospect and Play Analysis (PPA)”. Prior to joining MHA he held various management and technical positions with Dart Energy, a Australian global unconventional gas company, Greenpark Energy, a UK CBM company, PetroSA, the South African national oil company, and American companies, Forest Oil, Maxus Energy

and Pennzoil Oil and Gas Company. He has a B.S. Degree in Geology from Vanderbilt University and a M.S. Degree in Geology from Texas A&M University. He is an active member in the AAPG (the current VPSections), SPE, RMAG, DWLS, DIPS, HGS and is a Certified Petroleum Geologist (#3791) and Licensed Professional Geologist. He is author or co-author of over 30 papers and/ or technical presentations.

Vol. 68, No. 6 | www.rmag.org

LEADERS IN PETROLEUM GEOCHEMISTRY Wolfcamp Study Oklahoma

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Vol. 68, No. 6 | www.rmag.org

OUTCROP | June 2019

RMAG LUNCHEON PROGRAMS Speaker: Ken Kittleson | July 10, 2019

‘The Longmont Detachment Mega-Landslide, Fact or Fiction’ By Ken Kittleson

KEN KITTLESON: I have been a geologist for 47 years, obtaining my B.S. and M.S. degrees from the University of Iowa. The first 13 years were spent working in the oil and gas business for such companies as Exxon, Placid Oil, American Petrofina and Stauffer Oil and Gas before the OUTCROP | June 2019

downdip up to 1.6 km. (1 mi.) above other well-cemented, unfaulted volcanic ash detachment surfaces. Secondly, a two-stage post-Laramide Longmont Detachment was discovered following the identification of a resistivity geophysical well log on the boundary between a 187 sq. km. (72 sq. mi) eastern area (ELD) and a 345 sq. km. (133 sq. mi.) western area (WLD). This discovery precipitated a post-Laramide Longmont Detachment age with the ELD developing from transverse movement on the updip Longmont Fault, located just south of Longmont, Colorado, followed by a later WLD detachment as a classical landslide. This talk will also explain the development of such well-known geological features southeast of Boulder, Colorado as Marshall Mesa, Davidson Mesa (the overlook onto Boulder from the Boulder Turnpike) and the “White Rocks” outcrop next to Boulder Creek.

Ten years ago, I proposed the discovery of a 531 sq. km. (205 sq. mi.) landslide detachment east of Boulder, Colorado termed the Longmont Detachment. This theory was met with skepticism and difficult to comprehend and ultimately accept within a normal geologist’s perspective, where a superficial landslide of 26 sq. km. (1 sq. mi.) maybe considered incredible. This detachment theory was added to the list of mechanisms, including strike-slip faulting by the USGS to explain the area’s complex faulting. The results of a 5-year geophysical well log investigation detail several significant new discoveries that characterize how the area’s unique stratigraphic and structural geology have allowed such a massive structure to develop. The two major ones include a single-event volcanic origin for the study area’s upper Cretaceous section, explaining how uniform plates up to 160 m. (525 ft.) thick and 12.4 sq. km. (4.8 sq. mi.) could detach and then move

collapse of the business in 1986. Following the acquisition of a M.S. degree from Colorado State, I worked as a geologist in the environmental business for 22 years until my retirement in 2011. Since then, I have devoted my time to geological and structural research as well as 30

volunteering in the Denver Public School’s Balarat Outreach Program where I teach 3rd grade students about nature and geology. I was the recipient of RMAG’s “Distinguished Public Service to Earth Science” 2013 award for this work.

Vol. 68, No. 6 | www.rmag.org

Volunteer for Dinosaur Ridge! 4-hour shift on any day of the week that works for your schedule. Â Training is provided.

INTERPRETIVE SCHOOL PROGRAM AND SCHEDULED TOUR GUIDE Do you enjoy being outdoors with children ages 3-18, or teaching adult groups? Bring fossils and geology to life as a volunteer guide! Scheduled tours and programs usually take place on weekdays between 9am-2pm. Schedules are flexible and training is provided.

OUTREACH & SPECIAL EVENTS VOLUNTEERS

Volunteers are needed in a variety of capacities from geology/paleontology interpretation, event preparation, hands-on kids activities, to booth set-up and tear-down. No experience is necessary for most of these roles.

EXHIBIT HALL DOCENT

Docents assist visitors exploring the Trek Through Time exhibit hall at the Main Visitor Center. Greet and orient visitors, answer questions, guide them through the exhibit, and collect tickets/payments. Choose a

Vol. 68, No. 6 | www.rmag.org

Next Introductory Training is on June 8th! To learn more, visit http://dinoridge.org/support-dino-ridge/volunteer/ or call Barbara Farley at 303697-3466 x107.

OUTCROP | June 2019

WELCOME NEW RMAG MEMBERS!

Elijah Adeniyi

is a student at Montana State University.

Katelyn Barton

is a student at Brigham Young University.

Anam Bibi

is a Recruiter at AimHire in Denver, Colorado.

Lacee Broeder

Jeremy Greene

is an Exploration Manager at Noble Energy in Houston, Texas.

Adam Harris

is an Operations Manager at Columbine Logging in Colorado Springs, Colorado.

Zoe Havelena

is a student at New Mexico Institute of Mining and Technology.

Robin Hilderman

is a Student Intern at USGS and lives in Lafayette, Colorado.

is a student at Colorado College.

is a student in Fort Collins, Colorado.

lives in Arvada, Colorado.

is a student at University of Colorado, Boulder.

is a Geologist at Bison Oil and Gas and lives in Parker, Colorado.

Jacob Deyoung

Michael Frothingham

Aaron Payne

is a Senior Hydrogeologist at Petrotek Engineering Corporation in Littleton, Colorado.

Elisabeth Rau

is a student at Baylor University.

Stephen Tabor

works for Olsson in Denver, Colorado.

Trevor Van Dyke

is a student at Iowa State University.

Michael Hilmes Michael Olson

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OUTCROP | June 2019

ADVERTISER INDEX

• Impac Labs ��29

• AvoAvaz.com ��28 • Borehole Image Specialists ��26

• LMKR ��25

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• RMS-AAPG Conference ��33

• Daub & Associates, Inc. ��28

• Schlumberger ��17

• Denver Earth Resources Library ��12

• Sinclair Petroleum Engineering, Inc. ��26

• Discovery Group Inc. (The) ��20

• SM Energy ��19

• Donovan Brothers Inc. ��18

• Spancers & Associates ��16

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CALENDAR SUNDAY

MONDAY

TUESDAY

WEDNESDAY

THURSDAY

FRIDAY

SATURDAY

1 2

4 RMS-SEPM Luncheon. SPE Summer Social.

5 RMAG Luncheon. Speaker Jeff Aldrich.

12 WEN Leadership Series.

6 GPA Midstream Rocky Mountain Chapter Luncheon.

13 DPC Speaker Series.

GPA Midstream Rocky Mountain Chapter Golf Tournament.

14 DIPS Luncheon.

15 RMAG On the Rocks Field Trip, Dinosaur Ridge/Morrison Museum.

RMAG On the Rocks: Green River Basin.

23 Green River

GPA Rockies Game. RMS-SEPM June Geology Brewery Rendezvous.

Eocene

RMAG On the Rocks: Eocene Fish Fossil Collecting.